REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Strategic Report, Report of the Trustees and |
Financial Statements |
for the Year Ended 31st January 2023 |
for |
Orphans in Need |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Strategic Report, Report of the Trustees and |
Financial Statements |
for the Year Ended 31st January 2023 |
for |
Orphans in Need |
Orphans in Need |
Contents of the Financial Statements |
for the year ended 31st January 2023 |
Page |
Strategic Report | 1 |
Report of the Trustees | 2 | to | 6 |
Report of the Independent Auditors | 7 | to | 10 |
Statement of Financial Activities | 11 |
Balance Sheet | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 | to | 25 |
Orphans in Need |
Strategic Report |
for the year ended 31st January 2023 |
The trustees present their strategic report for the year ended 31st January 2023. |
REVIEW OF BUSINESS |
The charity continued its charitable activities during the year. |
Total income dropped slightly from £16m in the previous year to £15.7m. |
However net income increased from £1.4m to £3.4m and net assets increased from £8.8m to £12.2m. |
The trustees are therefore pleased with the performance and will seek to continue this good work. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Credit Risk |
Orphans in Need recognises the critical importance of effective credit risk management in ensuring the sustainability of our mission to support vulnerable orphaned children and widows globally. We are committed to implementing our robust credit risk assessment processes to evaluate the financial stability of our partners and our donors, minimising the potential for defaults or financial setbacks that could impact our programs. Orphans in Need does not rely on credit loans to undertake our work, and we have upheld an appropriate cash reserve of £11.8m, to ensure our stability. |
Liquidity Risk |
Based on our financial records, the charity has upheld an appropriate cash reserve of £11.8m, ensuring our stability and enabling us to sustain our ongoing to support to our beneficiaries. |
Foreign Exchange Risk |
Foreign exchange implications have the potential to hinder business operations involving overseas offices. To manage this risk, Orphans in Need consistently maintain strong relationships with financial service providers and collaborates with the wider sector to seek out effective strategies to explore ways in which to mitigate FX challenges. |
Interest Rates and Cash Flow Risk |
As per our accounts, the charity maintained a favourable cash balance throughout the year, and, as a result, does not perceive interest rates or cash flow as posing substantial risks. |
Orphans in Need employs a robust Assurance Framework to ensure effective governance, risk management, and internal controls. Our organisation is fortified by a dedicated Internal Audit Team, complemented by external experts who share our commitment to continuous improvement. |
In our ongoing efforts to manage organisational risks, we have identified risks at the organisational level. These risks are closely monitored by our Senior Leadership Team (SLT) and Board of Trustees, who track specific actions and performance indicators associated with each risk. This proactive approach ensures that we remain vigilant and respond to potential challenges, thereby safeguarding the interests of our beneficiaries and supporters. |
Approved by order of the board of trustees on 24th October 2023 and signed on its behalf by: |
A Musa - Trustee |
Orphans in Need (Registered number: 07797095) |
Report of the Trustees |
for the year ended 31st January 2023 |
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 31st January 2023. 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, aims and public benefit |
The objectives of Orphans in Need are wholly for the public benefit. The principal aims of the charity and objective of the charitable company are: |
The relief of poverty and sickness anywhere in the world, and in particular, those affected by natural causes or by wars and conflicts either foreign or domestic by the provision of financial or other assistance including but not limited to medicines, shelter, furniture, stationery, food, clothing, sanitation and clean drinking water and also the construction of schools, hospitals and medical centers. |
To advance the education of persons in need, including orphans, anywhere in the world by the provision of financial aid and materials including but not limited to books, furniture, stationery, clothing and electronic hardware/software and also through the construction of schools, colleges, training centres, orphanages and universities. |
The trustees have had regard to the Charity Commission's guidance on public benefit. |
Grantmaking |
Orphans in Need are always actively seeking out partner organisations that can further their objectives in an efficient and effective manner. As a result, the charity will make grants to other organisations where the trustees feel this is deserving and in line with the Orphans in Need policies. |
Orphans in Need (Registered number: 07797095) |
Report of the Trustees |
for the year ended 31st January 2023 |
Achievement and performance |
In 2022, Orphans in Need pushed on with its delivery of its one-to-one orphan sponsorship programme, food parcel distributions to widows, and increased support for the needs of orphans through its Global Orphan Care campaign. |
Orphans in Need USA was established in December 2021 after nearly a year of efforts to facilitate its registration, and OIN USA is now a key driver in securing income for the purpose of our objectives. |
Orphans in Need forged ahead with their plans for the school project, and have now procured land in Haryana, Bihar and Nepal. The architectural plans for the initial school construction (in Haryana, New Delhi) are underway. |
Orphans sponsorship |
Through our orphan sponsorship programme, we continue to support over 13,000 children across 14 countries. Each of these children continue to receive a fixed monthly stipend contributing towards their education, food, clothing and other necessities. The progress of these children is measured by our partners on the ground, who maintain that each child on the programme has access to education as a minimum. |
We strive to ensure that our children stay with extended family, where possible. The support we provide them allows them to send the child to school where in other circumstances they may be forced onto the streets to beg or into manual labour. The success of our orphan sponsorship programme is down to our generous donors, who undertake to provide these children with hope through their regular donations. |
Our Global Orphan Care campaign has allowed us to raise extra funds with which we can supplement the care provided to these children when they need extra support. |
Global Orphan Care |
The Global Orphan Care programme funds have allowed us to support individual requests for the care of orphans and widows, as well supporting other orphan care institutions to maintain and improve their services. This allows us to support thousands more orphans in addition to those on our sponsorship programme. |
The extra support ranges from extensive medical care such as for cancer and serious illnesses to the provision of accommodation assistance for institutions who are unable to improve housing conditions because of a lack of funding and guidance. We were also able to use this for emergency aid distribution during the pandemic. |
Orphan village and orphanages |
Our Orphans' Village in Delhi has progressed over the past years by providing care to 100s of orphans and widows. Our other orphanages in Jammu and Kashmir including, Bait ul Altaf and Bait ul Salaam, are carefully monitored. Regular contact with our partners and visits are carried out to ensure the welfare of our orphans is maintained. Children in our care are given food, clothing, medical support, counselling where needed, and education. |
Ramadan and Qurbani |
During April 2022, 18,219 food parcels were delivered to our beneficiaries for the month of Ramadan. These months are a crucial time for us during the year as most of our charitable donations come during then. |
Governance, administration and monitoring |
Monitoring of our work ensuring delivery in line with our charitable objects is carried out through an extensive paper trail for all projects along with monitoring visits carried out by staff to the areas of need. These trips include an assessment of the quality of delivery to our beneficiaries along with an examination of the financial and administration records. |
Orphans in Need is entrusted by donors to deliver to orphans and widows and we maintain strict controls on expenditure, striving to keep associated costs to a minimum. Although we work to keep our administration costs to a minimum, we also value our commitment to ensuring that we are monitoring, assessing and improving our work with beneficiaries and this does require us to invest in thorough due diligence, staff and appropriate policies and procedures. |
Orphans in Need (Registered number: 07797095) |
Report of the Trustees |
for the year ended 31st January 2023 |
Orphans in Need has signed up to the Code of Fundraising Practice for the UK, working with the Fundraising Regulator to ensure that our fundraising is respectful, open, honest and accountable to the public. |
FINANCIAL REVIEW |
Reserves policy |
The trustees regularly review the risks to the charity and are actively monitoring the reserves available to the charity. As there are no significant ongoing commitments and the work continues only when funds are available, the trustees have decided to maintain a minimal reserve amount of £100,000 to cover any contingencies. |
The charity currently holds more than this as they have raised funds for projects that have yet to go ahead. See note 6 for more details. |
Going concern |
There are no material uncertainties relating to events or conditions that cast significant doubt on the Charity's ability to continue as a going concern. |
The charity relies fully on income which was £15.7m during 2022/23. At the year end the charity had unrestricted funds of £12.2m. |
The trustees are satisfied that all the funds received have been applied in a wholly effective manner. |
FUTURE PLANS |
In 2022, there continues to be the challenge of steep global price rises in food, fuel, and many other commodities. These provide a greater need within our beneficiaries but also make fundraising more challenging as our UK-based individual donors also feel the effects of the rising cost of living. |
We will continue the development of our orphan sponsorship programme, working closely with in-country teams to provide the best possible care for our children. We will arrange workshops with our teams for the provision of training and knowledge sharing, and for the Global Orphan Care programme, we will push forward raising funds but also be distributing these for needy orphan and widow support causes around the world. |
To enhance educational opportunities for disadvantaged orphaned and underprivileged children, we are progressing with our initiative to construct schools in strategic areas. Our first endeavour will be the establishment of a school situated near our Orphans' Village in Haryana, New Delhi, followed by expansions into Bihar and Nepal. By implementing our school model, Orphans in Need can deliver a high standard of education to the children enrolled, who might otherwise lack access or resources for their schooling. |
Through our school project, our primary goal is to equip the enrolled children with the necessary knowledge and tools they require, enabling them to pursue higher education and secure positions in their chosen profession. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
Orphans in Need is incorporated as a company limited by guarantee and is registered as a charity number 1144812. |
The trustees, who are also the directors of the company, are responsible for the overall management and control of the company working with other persons on an entirely voluntary basis. |
Recruitment and appointment of new trustees |
Trustees are appointed in accordance with Orphans In Need constitution. Once appointed, Trustees are given introduction of the charity and information about its objects; Trustees are also given the copy of the constitution and the aims and objective. Role descriptions are issued to each Trustee and full induction is given setting out the obligations of a trustee. All trustees are issued with a copy of the Charity Commission's guide "The Essential Trustee". |
The trustees meet every 6 weeks. |
Orphans in Need (Registered number: 07797095) |
Report of the Trustees |
for the year ended 31st January 2023 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
Auditors |
Statutory Auditors |
Princes House |
Wright Street |
Hull |
East Yorkshire |
HU2 8HX |
Bankers |
PO Box 111 |
1 Victoria Place |
Leeds |
LS11 4AN |
STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of Orphans in Need 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 give 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. |
Orphans in Need (Registered number: 07797095) |
Report of the Trustees |
for the year ended 31st January 2023 |
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued |
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. |
In so far as the trustees are aware: |
- | there is no relevant audit information of which the charitable company's auditors are unaware; and |
- | the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. |
AUDITORS |
The auditors, Sadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
Approved by order of the board of trustees on |
Report of the Independent Auditors to the Members of |
Orphans in Need |
Opinion |
We have audited the financial statements of Orphans in Need (the 'charitable company') for the year ended 31st January 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the charitable company's affairs as at 31st January 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. |
Other information |
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Trustees has been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Orphans in Need |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Report of the Trustees. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of trustees' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of trustees |
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Orphans in Need |
Our responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the charitable sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK tax legislation, and data protection, anti-bribery, employment, environmental, health and safety legislation along with industry specific regulations and requirements. |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud and irregularities relating to revenue recognition we: |
- performed checks on the bespoke CRM system which records and monitors donations; |
- traced records to bank receipts and Gift Aid claims, there is no cash income. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Report of the Independent Auditors to the Members of |
Orphans in Need |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. |
Use of our report |
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Wright Street |
Hull |
East Yorkshire |
HU2 8HX |
Orphans in Need |
Statement of Financial Activities |
(Incorporating an Income and Expenditure Account) |
for the year ended 31st January 2023 |
2023 | 2022 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 |
Charitable activities | 4 |
Investment income | 3 |
Other income |
Total |
EXPENDITURE ON |
Raising funds | 5 |
Charitable activities | 6 |
Other | 9 | ( | ) | ( | ) |
Total |
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 8,860,685 |
Orphans in Need (Registered number: 07797095) |
Balance Sheet |
31st January 2023 |
2023 | 2022 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 14 |
Tangible assets | 15 |
Investment property | 16 |
CURRENT ASSETS |
Debtors | 17 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 18 | ( | ) | ( | ) | ( | ) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 20 |
Unrestricted funds | 8,860,685 |
TOTAL FUNDS | 8,860,685 |
The financial statements were approved by the Board of Trustees and authorised for issue on |
Orphans in Need |
Cash Flow Statement |
for the year ended 31st January 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,515,635 | 1,944,178 |
Net cash provided by operating activities | 3,515,635 | 1,944,178 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (11,589 | ) | (11,520 | ) |
Purchase of tangible fixed assets | (18,739 | ) | (4,085 | ) |
Sale of tangible fixed assets | - | 654 |
Interest received | 45,083 | 5,080 |
Net cash provided by/(used in) investing activities | 14,755 | (9,871 | ) |
Change in cash and cash equivalents in the reporting period | 3,530,390 | 1,934,307 |
Cash and cash equivalents at the beginning of the reporting period | 8,298,510 | 6,364,203 |
Cash and cash equivalents at the end of the reporting period | 11,828,900 | 8,298,510 |
Orphans in Need |
Notes to the Cash Flow Statement |
for the year ended 31st January 2023 |
1. | RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES |
2023 | 2022 |
£ | £ |
Net income for the reporting period (as per the Statement of Financial Activities) | 3,415,501 | 1,429,985 |
Adjustments for: |
Depreciation charges | 32,317 | 28,061 |
Profit on disposal of fixed assets | - | (18 | ) |
Interest received | (45,083 | ) | (5,080 | ) |
Increase in debtors | (167,518 | ) | (4,439 | ) |
Increase in creditors | 280,418 | 495,669 |
Net cash provided by operations | 3,515,635 | 1,944,178 |
2. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/2/22 | Cash flow | At 31/1/23 |
£ | £ | £ |
Net cash |
Cash at bank | 8,298,510 | 3,530,390 | 11,828,900 |
8,298,510 | 3,530,390 | 11,828,900 |
Total | 8,298,510 | 3,530,390 | 11,828,900 |
Orphans in Need |
Notes to the Financial Statements |
for the year ended 31st January 2023 |
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, as modified by the revaluation of certain assets. |
Orphans in Need is a company, limited by guarantee, registered in England and Wales. The company's registered numbers and registered office can be found on the Report of the Trustees on page 3. |
The presentation currency of the financial statements is the Pound Sterling (£). |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the Charity's accounting policies, Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period to which they relate. |
Key judgements concerned the inclusion of a provision for payments to OIN Pakistan of £752k post year which had been delayed due to registration issues only. |
Key estimates are the carrying value of freehold properties under the revaluation model. |
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.There are three main types of income |
Donations - for these to be recognised the charity will have been notified of the amounts and the settlement date in writing. if there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable they will be fulfilled. |
Gift Aid - this is recognised as claimed and receivable from HMRC. |
Donated Facilities and Professional Services - these are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to charity. For example, the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. |
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. |
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. |
Orphans in Need |
Notes to the Financial Statements - continued |
for the year ended 31st January 2023 |
1. | ACCOUNTING POLICIES - continued |
Website costs |
Website costs are amortised over 5 years. |
TV Commercials are amortised over 5 years. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Freehold Property is held under the revaluation model. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities. |
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. |
Pension costs and other post-retirement benefits |
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. |
Government grants |
Government grants are recognised using the accruals model. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate. |
Grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the assets to which they relate. |
A grant that becomes receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the company with no future related costs, is credited to income in the period in which it becomes receivable. |
Orphans in Need |
Notes to the Financial Statements - continued |
for the year ended 31st January 2023 |
2. | DONATIONS AND LEGACIES |
2023 | 2023 | 2023 | 2022 |
Restricted | Unrestricted | Total | Total |
£ | £ | £ | £ |
Donations | 7,556,464 | 3,841,765 | 11,398,229 | 12,009,578 |
Gift Aid | - | 1,265,083 | 1,265,083 | 1,234,646 |
Donated Services and Facilities | 3,056,067 | - | 3,056,067 | 2,714,350 |
10,612,531 | 5,106,848 | 15,719,379 | 15,958,574 |
Restricted income is based on the donors specified cause. A breakdown is provided below. |
2023 | 2022 |
£ | £ |
Water | 1,040 | 14,790 |
Orphans | 4,939,188 | 5,187,119 |
Places of Worship | 120 | 935 |
Food | 2,615,141 | 2,634,150 |
Emergency | 950 | 439,665 |
Medical Supplies | 3,056,067 | 2,714,350 |
10,612,531 | 10,991,009 |
Cause details: |
Water - Project to provide access to clean water. |
Orphans - Sponsorship of orphans helps house orphans throughout the world in order to help ensure that they receive an education, food, healthcare and medical support that children need. |
Places of Worship - Providing the community with a place to congregate for Worship and community activities. |
Food - Providing monthly food parcels to widows and orphans. |
Emergency - Providing emergency aid to conflict areas. |
Medical Supplies - Medical supplies donated and supplied by a partner. |
3. | INVESTMENT INCOME |
2023 | 2022 |
£ | £ |
Rents received |
Deposit account interest |
Orphans in Need |
Notes to the Financial Statements - continued |
for the year ended 31st January 2023 |
4. | INCOME FROM CHARITABLE ACTIVITIES |
2023 | 2022 |
Total |
General | activities |
£ | £ |
Grants | 1,408 | 33,376 |
5. | RAISING FUNDS |
Raising donations and legacies |
2023 | 2022 |
£ | £ |
Staff costs |
Postage and stationery |
Digital exposure |
Marketing | 355,397 | 362,373 |
Fund raising expenses | 365,329 | 294,563 |
Telephone | 10,964 | 9,209 |
Motor and travel | 71,819 | 24,602 |
Accomodation | 25,517 | 2,096 |
Bank charges | 41,858 | 53,980 |
1,573,438 | 1,727,032 |
6. | CHARITABLE ACTIVITIES COSTS |
Grant |
funding of |
activities | Support |
Direct | (see note | costs (see |
Costs | 7) | note 8) | Totals |
£ | £ | £ | £ |
General | 974,928 | 9,790,520 | 49,270 | 10,814,718 |
7. | GRANTS PAYABLE |
2023 | 2022 |
£ | £ |
General | 9,790,520 | 11,867,987 |
The total donations paid to institutions during the year was as follows: |
2023 | 2022 |
£ | £ |
Orphans in Need - India | 1,343,054 | 4,558,146 |
Orphans in Need - Jammu & Kashmir | 1,571,778 | 1,400,000 |
Alsabil Welfare House | 1,141,791 | 1,296,643 |
Orphans in Need - Pakistan | 300,400 | 300,400 |
Novo Jibon | 268,673 | 320,129 |
OIN Nepal | 647,489 | 263,240 |
OIN USA | 532,434 | 156,426 |
African Development Trust | 194,662 | 211,283 |
Orphans in Need |
Notes to the Financial Statements - continued |
for the year ended 31st January 2023 |
7. | GRANTS PAYABLE - continued |
Donated Pharmaceuticals | 3,056,067 | 2,714,350 |
Other grants of less than £150,000 in the period | 734,171 | 647,370 |
9,790,519 | 11,867,987 |
A full list of individual grants and projects is available from our principal office. |
8. | SUPPORT COSTS |
Governance |
Management | costs | Totals |
£ | £ | £ |
General | 10,103 | 39,167 | 49,270 |
9. | OTHER |
2023 | 2022 |
£ | £ |
Foreign exchange | 2,078 | - |
Loans written off | (33,565 | ) | 14,549 |
( | ) |
The loan written off relates to the recovery of the Cafe Blu loan. |
10. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Auditors' remuneration | 6,200 | 5,700 |
Depreciation - owned assets |
Surplus on disposal of fixed assets | ( | ) |
TV Commercial amortisation |
Website Costs amortisation |
Orphans in Need |
Notes to the Financial Statements - continued |
for the year ended 31st January 2023 |
11. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31st January 2023 nor for the year ended 31st January 2022. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31st January 2023 nor for the year ended 31st January 2022. |
12. | STAFF COSTS |
2023 | 2022 |
£ | £ |
Wages and salaries | 628,993 | 655,088 |
Social security costs | 51,206 | 52,660 |
Pension | 9,667 | 11,071 |
689,866 | 718,819 |
The average monthly number of employees during the year was as follows: |
2023 | 2022 |
28 | 29 |
13. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
fund | fund | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
Investment income |
Other income |
Total |
EXPENDITURE ON |
Raising funds |
Charitable activities |
Other |
Total |
Orphans in Need |
Notes to the Financial Statements - continued |
for the year ended 31st January 2023 |
13. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
Unrestricted | Restricted | Total |
fund | fund | funds |
£ | £ | £ |
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward | 7,430,700 | - |
TOTAL FUNDS CARRIED FORWARD | 8,860,685 | - | 8,860,685 |
14. | INTANGIBLE FIXED ASSETS |
TV | Website |
Commercial | Costs | Totals |
£ | £ | £ |
COST |
At 1st February 2022 |
Additions |
At 31st January 2023 |
AMORTISATION |
At 1st February 2022 |
Charge for year |
At 31st January 2023 |
NET BOOK VALUE |
At 31st January 2023 |
At 31st January 2022 |
Orphans in Need |
Notes to the Financial Statements - continued |
for the year ended 31st January 2023 |
15. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st February 2022 |
Additions |
At 31st January 2023 |
DEPRECIATION |
At 1st February 2022 |
Charge for year |
At 31st January 2023 |
NET BOOK VALUE |
At 31st January 2023 |
At 31st January 2022 |
The Freehold Property was professionally valued by Hayfield Robinson in October 2021. Original cost was £644,091. |
16. | INVESTMENT PROPERTY |
£ |
FAIR VALUE |
At 1st February 2022 |
and 31st January 2023 |
NET BOOK VALUE |
At 31st January 2023 |
At 31st January 2022 |
The investment property was professionally valued by Hayfield Robinson in October 2021. |
Orphans in Need |
Notes to the Financial Statements - continued |
for the year ended 31st January 2023 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Other debtors |
Prepayments |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Social security and other taxes |
Other creditors |
Accrued expenses |
19. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
20. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1/2/22 | in funds | 31/1/23 |
£ | £ | £ |
Unrestricted funds |
General fund | 8,860,685 | 3,415,501 | 12,276,186 |
TOTAL FUNDS | 3,415,501 | 12,276,186 |
Orphans in Need |
Notes to the Financial Statements - continued |
for the year ended 31st January 2023 |
20. | MOVEMENT IN FUNDS - continued |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 5,159,639 | (1,744,138 | ) | 3,415,501 |
Restricted funds |
Restricted Fund |
10,612,531 | - |
TOTAL FUNDS | ( | ) | 3,415,501 |
Comparatives for movement in funds |
Net |
movement | At |
At 1/2/21 | in funds | 31/1/22 |
£ | £ | £ |
Unrestricted funds |
General fund | 7,430,700 | 1,429,985 | 8,860,685 |
TOTAL FUNDS | 7,430,700 | 1,429,985 | 8,860,685 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 5,011,789 | (3,581,804 | ) | 1,429,985 |
Restricted funds |
Restricted Fund |
10,991,009 | (10,991,009 | ) | - |
TOTAL FUNDS | 16,002,798 | (14,572,813 | ) | 1,429,985 |
Orphans in Need |
Notes to the Financial Statements - continued |
for the year ended 31st January 2023 |
20. | MOVEMENT IN FUNDS - continued |
A current year 12 months and prior year 12 months combined position is as follows: |
Net |
movement | At |
At 1/2/21 | in funds | 31/1/23 |
£ | £ | £ |
Unrestricted funds |
General fund | 7,430,700 | 4,845,486 | 12,276,186 |
TOTAL FUNDS | 7,430,700 | 4,845,486 | 12,276,186 |
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 | 10,171,428 | (5,325,942 | ) | 4,845,486 |
Restricted funds |
Restricted Fund |
21,603,540 | (21,603,540 | ) | - |
TOTAL FUNDS | 31,774,968 | (26,929,482 | ) | 4,845,486 |
Restricted funds relate to donations made by individuals to one of the charities specific projects/areas as per note 2. |
21. | RELATED PARTY DISCLOSURES |
Trustees Val Scarll and Anis Musa are directors in Cafe Blu Limited, which was originally set up by the charity to promote itself and attract donations. |
Cafe Blu Limited in the year repaid loans previously written off to the value of £33,565 after sale of final assets (2022: £14,549 written off). There is no balance due to Orphans in Need as at 31st January 2023. |