Zamcog - Charities report - 21.1

REGISTERED COMPANY NUMBER: 07184854 (England and Wales)

REGISTERED CHARITY NUMBER: 1136086

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2020

for

Zamcog

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Statement of Financial Position

8

to

9

Notes to the Financial Statements

10

to

14

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Charity's objectives are:

(1) the prevention and relief of poverty in Zambia and

(2) the advancement of education of persons under twenty-five years of age in Zambia, in particular but without limitation by the provision of educational facilities and activities.

ZAMCOG's objectives are set in accord with our charitable objects. Each year the trustees evaluate our objectives and activities to ensure that they reflect our charitable object. In setting the charity's objectives and planning its activities the trustees have complied with the duty in section 4 of the Charities Act 2006 to have due regard for the Charity Commission's general guidance for the public benefit.

As part of the charity's objectives, the main activity has been to raise funds for the Lubuto Child Care Centre (LCCC) which has the same aims and objectives as ourselves.

During the year the core programmes have been funding children at primary and secondary schools, provide shelter and living for those most in need, give food for those not in our homes, support some students in their gap year with accommodation and provide sponsored funds for those in tertiary education .

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Income received in the year was £239,514 (£312,216 in 2019) being £143,222 for Unrestricted Funds and £96,292 for Restricted Funds (£184,336 and £127,880 respectively in 2019).

The trustees are very grateful to all donors, both individual and organizational, without whom ZAMCOG's continued support of orphaned and vulnerable children in Kabwe, Zambia would not be possible. We wish to thank the Leif Wåhlin Foundation. from Sweden for their very generous support in the year and an anonymous donor to help those who have left our education programme to start business and have sustainable living.

In 2020, a total of £199,180 (£254,466 in 2019) was disbursed in support of Lubuto Child Care Centre and corporate governance costs utilising in total £111,630 of Unrestricted Funds and £87,550 of Restricted Funds.

Our work in the Kabwe area continued successfully in 2020 although like the rest of the world the covid 19 pandemic had some restrictions.

Education - pupils financially supported at schools rose from 259 to 301 with 157 boys and 144 girls in the programme. Schools were suspended at the end of the first term in March. Those students sitting exams in grades 7,9 and 12 returned to school in July and sat their exams in December. Students not in exam years returned to schools in September for the second term only and finished in early December. The next school year starts on 18 January.

Care homes - 16 boys and 16 girls were in the homes during the year. Some students returned to their homes from April through August. Graduates previously sponsored through Zamcog assisted in providing education to those in the homes through out the year.

In the food program a further 25 pupils and their families were added to the program. This was due to the kind donation from the Souter Family Trust. The number of pupils and their families in the programs at 31 December was 90.

In the two Transition houses students in their gap year moved in there in April - 4 boys and 4 girls. Those students in the houses were permitted to provide Saturday schooling to local children in the Makalulu area..

In the Further Education and Training programs there were 21 new starts taking the number in the programs to 50. We are extremely grateful for all our sponsors in these two programs. Thirteen students completed their courses in 2020 and we will assist them in finding employment where applicable.

Due to universal travel travel restrictions no Trustee visited Zambia in 2020 to review the work being carried out by our

associate NGO Lubuto Child Care Centre.

Our major donation in the year was from the Leif Wahlen Foundation who provided the majority of our operational costs in Kabwe and further contributions for the new site and Transition house 3.

Construction on these two sites has been seriously delayed in 2020 but it is hoped to commence site construction in the first quarter of 2021.

Similarly pandemic restrictions limited our fundraising programme for live events but our fundraising team was successful in being awarded grants from Souter Family Trust , Gwynneth Forrester Trust , Didymus and the Pignatelli Foundation. Donations were also received from our regular donors and Mr Armins Rusis. We thank all our donors for their kindness and generosity.

Lastly, in February 2019 we advanced funds to LCCC from a sponsor's entrepreneurship fund. This was to enable previously sponsored students to set up their own businesses. Of the several who applied for grants fifteen were selected. As this scheme started at the start of the Cv19 pandemic there have been successes and one or two failures. Assistance has been given to those in difficulty, and at present further grants are still being made.

The same donor has also provided funds for purchasing land for sustainable living again for those who have benefitted from our educational support in the past . LCCC has presented plans for purchasing land and erecting buildings for occupancy as well as initial stock. To date the Trustees have not yet agreed on the way forward to ensure protection for proper use of the funds. This delay is primarily due to the Trustees being unable to visit Zambia in 2020. It is hoped that this scheme will proceed in 2021.

FINANCIAL REVIEW

Financial position

In the financial year 1 January 2020 to 31 December 2020, the charity received income of £239,514 (2019:

£312,216) and total expenditure was £199,180 (2019: £254,466). For the year ended 31 December 2020 the charity had received net income on Unrestricted Funds of £31,594, which increase the carried forward sum to £63,082

(2019:£31,488) to contribute to next year's operating expenditure. Restricted Funds are £98,775 at 31 December 2020 (2019: £90,033) and will be utilised for the restricted purposes for which they were given.

Reserve policy

The trustees' policy in regard to reserves is to hold specific reserves to meet obligations imposed by donors and general reserves equivalent to three months' operational expenses to support and fund the Lubuto Child Care Centre. This policy has been reviewed in light of our agreement for funding from the Leif Wåhlin Foundation.

FUTURE PLANS

Following discussions with Lubuto Child Care Centre and as supported by our Trustees and the Leif Wahlen foundation our financial assistance to children in need of support is expected to increase from 300 children in 2020 to 375 in 2021.

Our care homes will remain with the same number in the homes in 2021.

In the food programme a further 20 children and their families will benefit from the monthly food package provided to them, increasing from the 90 supported families in 2020.

Through the generosity of IHSMarkit a further 24 students are due to commence tertiary education and training in 2021 taking the number in the programmes to 62.

As noted above the pandemic restrictions stopped construction of the new site and transition house 3 , but both should be completed in the year.

Our fundraising team continues to make applications for costs of an early learning centre , an in-house training centre and for operational costs.

At the beginning of 2021 funds have been granted to LCCC in their budget for period products to all girls in the education programme.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The company is controlled by its articles of association and constitutes a private limited company, limited by guarantee, as defined by the Companies Act 2006.

Recruitment and appointment of new trustees

New trustees are appointed by the company's members assembled in the Annual General Meeting. Co-opted trustees may also be appointed by serving trustees for a term of office ending at the next A.G.M.

Information is cascaded to a full trusteeship body in its regular meetings by the Company Secretary.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The trustees have in place a risk register, which is reviewed at most Board of Trustees' meetings. The principal risks relate to the need always to maintain effective financial management of the charity's assets and resources for its charitable purposes. To this end, the charity ensures at least one, appropriately qualified trustee, who fulfils on a voluntary basis the role of Treasurer.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

07184854 (England and Wales)

Registered Charity number

1136086

Registered office

20 Jasmine Way

Locking Castle

Weston-Super-Mare

Somerset

BS24 7JW

Trustees

J A Uggla

Ms T Farquhar-Beck

Mr L Healy

H Rana

Ms C Watz (resigned 31.1.2021)

C D Kaberry

C Westholm-Schroder (appointed 31.1.2021)

Company Secretary

Ms T Farquhar-Beck

Independent Examiner

Grunberg & Co Limited

Chartered Accountants

5 Technology Park

Colindeep Lane

Colindale

London

NW9 6BX

Bankers

HSBC

31 Chequer St

St Albans

Hertfordshire

AL1 3YN

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of Zamcog for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which gave a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to:

- select suitable accounting policies and then apply them consistently;

- observe the methods and principles in the Charity SORP;

- make judgements and estimates that are reasonable and prudent;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 10 May 2021 and signed on its behalf by:

J A Uggla - Trustee

Independent examiner's report to the trustees of Zamcog ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Robert Bean BA ACA

ICAEW

Grunberg & Co Limited

Chartered Accountants

5 Technology Park

Colindeep Lane

Colindale

London

NW9 6BX

11 May 2021

2020

2019

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

143,222

96,292

239,514

312,216

Investment income

2

2

-

2

11

Total

143,224

96,292

239,516

312,227

EXPENDITURE ON

Raising funds

966

-

966

-

Charitable activities

Education, homes and feeding programmes

99,644

87,550

187,194

254,466

Other

11,020

-

11,020

-

Total

111,630

87,550

199,180

254,466

NET INCOME

31,594

8,742

40,336

57,761

RECONCILIATION OF FUNDS

Total funds brought forward

31,488

90,033

121,521

63,760

TOTAL FUNDS CARRIED FORWARD

63,082

98,775

161,857

121,521

2020

2019

Notes

£

£

CURRENT ASSETS

Debtors

4

5,625

12,155

Cash at bank

159,232

112,366

164,857

124,521

CREDITORS

Amounts falling due within one year

5

(3,000

)

(3,000

)

NET CURRENT ASSETS

161,857

121,521

TOTAL ASSETS LESS CURRENT LIABILITIES

161,857

121,521

NET ASSETS

161,857

121,521

FUNDS

7

Unrestricted funds

63,082

31,488

Restricted funds

98,775

90,033

TOTAL FUNDS

161,857

121,521

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 10 May 2021 and were signed on its behalf by:

J A Uggla - Trustee

H Rana - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

There are no material uncertainties regarding the going concern of the charity.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

•

the requirements of Section 7 Statement of Cash Flows.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Financial instruments

The charity only enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and other loans to related parties..

Financial assets that are measured at cost are assessed at the end of each financial period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss.

Cash and cash equivalents

Cash and cash equivalents represented by cash in hand and deposits held at call with financial institutions, are measured at amortised cost.

Debtors

Basic financial assets including trade and other debtors are measured at transaction price, less any impairment.

Creditors

Basic financial liabilities, including trade and other creditors, are recognised at transaction price.

2.	INVESTMENT INCOME

2020

2019

£

£

Deposit account interest

2

11

3.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.

4.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Other debtors

5,625

12,155

During the year, no impairment provisions have been made against any class of debtors.

5.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Accrued expenses

3,000

3,000

6.	ANALYSIS OF NET ASSETS BETWEEN FUNDS

2020

2019

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

£

£

£

£

Current assets

66,082

98,775

164,857

124,521

Current liabilities

(3,000

)

-

(3,000

)

(3,000

)

63,082

98,775

161,857

121,521

7.	MOVEMENT IN FUNDS

Net

movement

At

At 1.1.20

in funds

31.12.20

£

£

£

Unrestricted funds

General fund

31,488

31,594

63,082

Restricted funds

Other restricted funds

90,033

8,742

98,775

TOTAL FUNDS

121,521

40,336

161,857

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

143,224

(111,630

)

31,594

Restricted funds

Other restricted funds

96,292

(87,550

)

8,742

TOTAL FUNDS

239,516

(199,180

)

40,336

Comparatives for movement in funds

Net

movement

At

At 1.1.19

in funds

31.12.19

£

£

£

Unrestricted funds

General fund

15,998

15,490

31,488

Restricted funds

Other restricted funds

47,762

42,271

90,033

TOTAL FUNDS

63,760

57,761

121,521

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

184,347

(168,857

)

15,490

Restricted funds

Other restricted funds

127,880

(85,609

)

42,271

TOTAL FUNDS

312,227

(254,466

)

57,761

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.1.19

in funds

31.12.20

£

£

£

Unrestricted funds

General fund

15,998

47,084

63,082

Restricted funds

Other restricted funds

47,762

51,013

98,775

TOTAL FUNDS

63,760

98,097

161,857

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

327,571

(280,487

)

47,084

Restricted funds

Other restricted funds

224,172

(173,159

)

51,013

TOTAL FUNDS

551,743

(453,646

)

98,097

8.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year under review..

9.	LIMITED LIABILITY

The company is limited by guarantee, every member promises that if the Charity is dissolved while he or she remains a member, or within twelve months afterwards to contribute up to £1 towards the cost of dissolution of the liabilities incurred by the Charity.

10.	FINANCIAL ASSETS & LIABILITIES

2020

2019

£

£

Financial assets measured at amortised cost

164,857

124,520

Financial liabilities measured at amortised cost

3,000

3,000

All financial assets and liabilities are held at amortised cost.