The trustees present their annual report and financial statements for the year ended 31 December 2023.
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 2016)
The charity is established for the public benefit to advance education and preserve and protect good health in South Sudan by:
- supporting the creation of self-sufficient education, healthcare, agricultural and other infrastructure projects
- the provision of training, instruction or pastoral care to those who are poor in order to develop their physical, mental, emotional and spiritual capacities
- providing or assisting in the provision or education and healthcare of any child or person in keeping with the precepts of the Christian faith and Christian ideals
- providing assistance for the training of teachers, parents, youth leaders or other persons engaged, or to be engaged, in the provision of education, leadership or instruction of individuals
- providing where needed, assistance for the furtherance or development of education and healthcare including youth leadership, religious and moral development especially the young and socially and economically disadvantaged
- providing any further assistance as the trustees may from time to time think fit for the provision of educational and healthcare facilities
- to cooperate with other charitable organisations whether local, national or international for any of the foregoing.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
During the year the charity had incoming resources of £102,203 (2022: £105,739) and outgoing resources of £273,521 (2022: £146,071).
Investment assets gains amounted to £422,607 (2022: £774,496 losses), which comprised of £3,714 in relation to net gains on disposals of investments assets (2022: £143,296 net losses on disposals) and £418,893 that refers to a net increase (2022: £631,200 net decrease) in market value of investments assets
Accumulated unrestricted funds carried forward amount to £3,954,535 (2022: £3,684,820) and accumulated restricted funds carried forward amount to £nil (2022: £48,426).
The trustees have no concerns about the company continuing to operate as a going concern and consider it will be able to meet its liabilities as they fall due.
The charity has an investment portfolio managed by Quilter Cheviot on their behalf. The intention is to hold the portfolio for at least five years with the income generated being available to meet the core objectives of the charity.
The trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks. The trustees have also paid attention to the ongoing consequences of the political instability in South Sudan and retain all funds in the UK until the time of need and then only for specific projects.
The charity’s main investments are held in order to help transition the management of activities to local South Sudanese management. Unrest in recent years has significantly delayed this process and trustees are considering what other interim uses could be made of these investments.
The charity is registered as a charitable company limited by guarantee and was set up on 29 April 2013 and registered as a charity with the Charity Commission for England and Wales on 4 December 2013. Its company number is 08508569 and its charity number is 1154872.
The charity is constituted under a Memorandum of Association dated 24 April 2013 as amended by Special Resolutions of 5 November 2013 and 19 February 2015. The liability of the members is limited. Every member of the charity undertakes to contribute to the assets of the charity, if it is wound up whilst he/she is a member or within one year after he/she ceases to be a member, such amounts as may be required not exceeding one pound.
The charity adheres to the principles of solidarity and to the charitable purposes of the 'Solidarity with Southern Sudan Project', a collaborative international project undertaken by members of the USG (Union of Superiors General), UISG (International Union of Superiors General), and South Sudan Catholic Bishop Conference. The charity was established to facilitate the project's administration and in particular its ability to raise funds internationally, through grant applications and donations, to support the work being undertaken in South Sudan.
The trustees have considered the impact of Covid-19 on the charity and are aware that income and asset values may fall in the future. As the charity does not have any regular commitments and is prepared to take a long term view of investments, the trustees do not consider any immediate actions are needed but will monitor events and act accordingly.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
The management of the charity is the responsibility of the trustees who are elected and co-opted under the terms of the Memorandum of Association dated 24 April 2013 as amended by Special Resolutions of 5 November 2013 and 19 February 2015. The names of the trustees are set out on the attached schedule of legal and administrative information as well as above. The trustees are chosen on the basis of their willingness to serve, ability, governance, experience and support of the ethos, mission and philosophy of the charity.
None of the trustees has any beneficial interest in the charity. All of the trustees are members of the charity and guarantee to contribute £1 in the event of a winding up.
The trustees are ultimately responsible for the policies, activities and assets of the charity. The trustees meet on a regular basis to make decisions on behalf of the charity.
The trustees report was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Solidarity Projects Limited (the charity) for the year ended 31 December 2023.
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).
Investments
Governance costs
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Solidarity Projects Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Suite 501, The Nexus Building, Broadway, Letchworth Garden City, Herts, SG6 9BL.
The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). 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 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.
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 or grantors 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.
Turnover is measured at the fair value of the consideration received or receivable and represent amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Charitable activities are grants payable to charitable institutions and individuals.
Governance costs are costs incurred relating to the governance of the Charity and are not apportioned to charitable activities.
All expenditure is inclusive of irrecoverable VAT.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be 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 in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Investments
Governance costs
Bank fees
Office costs
Travel
Legal and professional
The average monthly number of employees during the year was:
The charity is exempt from tax on profits and gains to the extent that these are applied to its charitable objectives. No tax charges have arisen in this period.
Prepayments and accrued income relates to accrued dividend income from the charity's investment portfolio.
Included within accruals and deferred income is an accrual for the preparation and independent examination of the charity's financial statements and an accrual for management charges relating to the charity's investment portfolio managed by Quilter Cheviot.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Unrestricted funds
Restricted funds
Unrestricted funds
Restricted funds
The trustees were reimbursed expenses of £1,466 (2022: £203) during the year.