THE_SANATA_CHARITABLE_TRU - Accounts

The trustees present their annual report and financial statements for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2019)

The objective of the charity is to provide financial and other support to the young and vulnerable people who benefit from the services that Restart Africa provides in Gilgil, Kenya. The operations of Restart are overseen by the Kenyan Board of Trustees, which liaise with the Sanata Charitable Trust UK, and both adhere to a common agreed strategy document, which is reviewed annually.

In planning the charity’s activities, the trustees have had regard to the guidance issued by the Charity commission on Public Benefit.

The main activities in relation to these objects are the raising of funds to support the health, education, and general wellbeing of young and vulnerable people in Kenya, overseeing the operation of the Sanata Children’s Home, and ensuring proper and accountable use of the funds raised.

Charity Policies

During the year the trustees have once again reviewed all the main policies of the charity which included well-being and safeguarding of the Restart children, and current employment policies in line with Kenyan law and practice.

The new Restart building has now been occupied for over 7 years. The building remains structurally sound, and additional buildings which were planned for 2019 and beyond have again been postponed until plans for development are finalised and promised funding is guaranteed. Work continues to develop and improve the site, and so, a sports field, children’s play area and a large vegetable garden including greenhouses are now in full use and drainage and waste water processing able to meet demand.

The website (www.restartafrica.org) is well-established, properly monitored, and particularly in these COVID hit times, has played an increasingly important part in raising awareness and through that, funds.

The UK Charity’s main concern has always been the Restart but its original Memorandum and Articles also emphasised a commitment to self-sufficiency and general uplift in the deprived community of Gilgil. Small business enterprises such as craft and design, and the manufacture of briquettes (from waste) have been in existence for some time but have required financial support. It is pleasing that the improved accounting, financial practice and management structure now sees them breaking even. Their ability to make profits have been hit by the effect of COVID, but in the long term it remains the aim that these community enterprises will contribute to the financing of the Restart.

The charity’s football team, which plays an important part in raising the profile of the charity in Gilgil and contributes to the uplift of the community has gone from strength to strength in the last year.

In terms of income, in the unusual pandemic circumstances, the Charity has had another satisfactory year but remains very conscious of the perennial challenge of the level of core funding required as education costs increase with the children’s transition from primary to secondary school, and then on to university or college. Individuals have continued to raise money through innovative schemes, but we have been bolstered by the fundraising resulting from the demise of a young committed volunteer after returning to the UK, and also by Shrewsbury School making Restart the main overseas charity they are supporting.

Last year’s decision to move all our primary school pupils into local private schools is already beginning to show very positive results in terms of their learning and the standards they are achieving. Even at this stage it is clear that the increased costs are proving to be worthwhile.

New initiatives have been to develop links with schools ostensibly to advertise and build on volunteer links. We now have strong links with several schools, we are beginning to benefit from Shrewsbury School making Restart Africa its official overseas charity. Apart from the fundraising aspect, the education links between the school and the charity are proving to be valuable.

The links with the British Army in Kenya continue and they have visited Restart again this year, helping with routine maintenance.

The Trust continues to commit to raise half the annual cost of running the charity, with the remainder coming from support in Kenya and other countries, notably Australia and the USA. The grants paid by the charity to the Kenyan charity are transferred via Barclays Bank to a dedicated sterling account in Barclays Bank, Kenya.

The financial accounts for the twelve months ended 31 December 2022 have been prepared and approved by the Trustees.

Sources of funds include fundraising events, standing orders, single donations, either on-line or by post, and donations from family charities.

The financial position at the year end remained stable with an increase in reserves to £556,225 from £544,796. Total income was £126,600 (2021: £79,048). Final net surplus for the year was £11,429 (2021: £81,548). There was a negative impact in the end of year investment valuation showing a reduction in value of £35,875. The overall investment valuation fell from £369,945 to £333,104

The charity is able to cover all its liabilities as they fall due. The financial position for the year ending 31 December 2023 to date is showing a further increase in the charity’s reserves.

Reserves Policy

The charity continues to apply its net income for the benefit of the Restart in Kenya, in accordance with its objectives. The reserves policy is to continue to build funds for this purpose, and it aims to hold funds amounting to at least six months operating costs of Restart, which are calculated to be £220,000 in total for the year ended 31 December 2022.

Investment Policy

The Trustees are authorised to invest the assets of the Charity in whatever way they believe to be in the best interests of the Charity and its objectives.

Risk Management

The Trustees have examined the major strategic, business and operational risks which the Charity faces and confirm that systems have been established to ensure the minimisation of those risks. The financial position of the Charity is robust, resources are sufficient to meet any eventualities that may arise for the foreseeable future.

The charity is constituted as a company limited by guarantee and is governed by its Memorandum and articles of Association.

There have been no changes in trustees during the year 2022. The trustees, who are also the directors for the purpose of company law, and who served during the year were:

New Trustees may be nominated by any trustee but must be elected by all trustees.

The focus of attention continued to be the strengthening of the controls over the charity's work and finances in Kenya, which is overseen by the UK Trustees.

All the Board meetings (March, AGM in July and October) were held on Zoom. As noted previously the lack of face to face meetings is not ideal, the use of Zoom as the medium has meant that live input from Kenya at all trustee meetings is now the norm. The plan for 2023 is to have the AGM as a face to face meeting.

During the year the usual visits to Restart by the Chairman and some trustees has resumed following the hiatus caused by COVID. Chris Conway, James Plastow, Julia Head and Giles Bell all visited during the latter part of the year.

The Trustees' report has been approved by the Board of Trustees and is signed on their behalf by:

I report to the trustees on my examination of the financial statements of The Sanata Charitable Trust (the charity) for the year ended 31 December 2022 which are set out on pages 5 to 15.

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

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

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 that in any material respect:

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

the financial statements do not accord with those records; or

the financial statements 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

the financial statements 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 financial statements to be reached.

Donations

Other income

Fundraising costs

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

Donations

Other income

Fundraising costs

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2022.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The Sanata Charitable Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is 58 Trinity Street, Belle Vue, Shrewsbury, Shropshire, SY3 7PQ. The charity is a registered charity with Charity Commission for England and Wales, number 1132766.

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed as incurred. Changes in fair value are recognised in other recognised gains and losses except to the extent that a gain reverses a loss previously recognised in net income expenditure, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in net income/(expenditure) for the year.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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

Donations

Other income

Restart Africa

Administration costs

Governance costs includes payments to the accountants of £1,100 (2021- £1,000) for independent examination fees.

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year (2021: £nil).

The average monthly number of employees during the year was:

The directors/trustees were unpaid for the year (2021: £Nil).

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

The funds are sent in Sterling to Kenya which are then converted at the prevailing rate into Kenyan shillings.

The Charity received donations of £2,000 (2021: £1,500) from The Plastow Family Charitable Trust, of which James Plastow is a trustee and £nil (2021: £50) from The Miles Clark Travel Scholarship Trust, of which Chris Conway is a trustee.

Additionally the Charity received donations without conditions from four Trustees totaling £3,360 (2021: £2,700 from three Trustees).

There were no trustees' expenses paid for the year ended 31 December 2022 (2021: nil).