REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
THE KISOMO FOUNDATION |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
Report of the Trustees and |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
THE KISOMO FOUNDATION |
THE KISOMO FOUNDATION |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Report of the Trustees | 1 | to | 4 |
Statement of Financial Activities | 5 |
Balance Sheet | 6 | to | 7 |
Notes to the Financial Statements | 8 | to | 12 |
THE KISOMO FOUNDATION (Registered number: 05147284) |
Report of the Trustees |
for the Year Ended 31 December 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 31 December 2022. 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 Kisomo Foundation (formerly known as Nyumbani UK and The Hotcourses Foundation) is constituted as a company limited by guarantee (incorporated on 7 June 2004) and is therefore governed by its memorandum and articles of association. The objectives of the Charity, as set out in the memorandum and articles of association are: |
To advance the education and training (including the social and physical education and training) of persons resident anywhere in the world; |
To relieve persons resident anywhere in the world who are in need, hardship or distress (including any need, hardship or distress as a result of any illness, disease or disability); |
That special facilities may be provided for persons who by reasons of their youth, age, infirmity or disability, poverty or social or economic circumstances may have need of special facilities and services; |
To promote and preserve good health and well-being through community participation in healthy recreation; |
Such other charitable purposes beneficial to the community consistent with the objectives above as the trustees shall in their absolute discretion determine. |
The trustees currently have a policy of supporting projects with a primary focus on education and support for children that can be carefully monitored to ensure the funds are properly applied. |
Our objective is to make a measurable, tangible difference to the lives of children in some of the poorest parts of the world. We have focused on orphans suffering due to AIDS and HIV living in East Africa. Until March 2022 we were working in partnership with a Kenyan organization called COGRI/Nyumbani, a well-established local organization where there had previously been a track record of effective and corruption-free administration. We funded a primary school and a high school for orphaned children living in the Nyumbani Village until March 2022. We continue to fund a scholarship programme for HIV-positive children in the informal settlements of Nairobi, which is independently managed by our own consultants and therefore separate from COGRI/Nyumbani. |
A full-time Director of Schools remained in the Nyumbani Village, Kenya throughout 2023 to help monitor the situation in the village schools. Two part-time independent contractors in Kenya monitor the children who are supported by the Hotcourses Scholarship Fund. A part time consultant in the UK works as an independent contractor to assist with administration, donor communication, and website maintenance for the Charity. |
All other work is by the volunteer board members, trustees and other volunteers. |
Significant activities |
During the course of 2023, Nyumbani UK and The Hotcourses Foundation sent funds to support the following: |
Hotcourses Scholarship Fund for the benefit of HIV-positive children in Nairobi. |
The Foundation continues to support the education of around 50 HIV-positive children living in the informal settlements of Nairobi. This support includes paying school fees, buying uniforms and shoes, paying for books, exam fees, providing school meals and regularly monitoring their progress |
THE KISOMO FOUNDATION (Registered number: 05147284) |
Report of the Trustees |
for the Year Ended 31 December 2023 |
OBJECTIVES AND ACTIVITIES |
Public benefit |
The trustees confirm that they have referred to the Charity Commission's public benefit guidance when carrying out past and planningfuture activities. |
Through the programmes supported by our Charity, many underprivileged children in Kenya receive access to education, comprehensive medicine and healthcare support, housing and community. A solid education provides a pathway for the vulnerable to pull themselves out of poverty. Children who are HIV positive with the right medicines, healthy diet and well managed lifestyle can expect to have normal life expectancies, but our programme is vital to ensure successful outcomes. A self-sustainable village provides a family-like setting for orphaned children under the stewardship of elderly adults and seeks to ensure that the children receive love, sustenance, healthcare, holistic education and culture transfer, aiming at their physical and psychological development. The Nyumbani village also provides holistic care and support for the grandparents in their later years. |
ACHIEVEMENT AND PERFORMANCE |
Fundraising activities |
Fundraising activities have been suspended since March 2022 due to our concerns regarding COGRI/Nyumbani's child safeguarding, management and governance. |
FINANCIAL REVIEW |
Financial position |
The financial position of the Charity is healthy. The charity's investment portfolio showed a total balance of £6,153,827.63 as of December 29th 2023, providing a income of 143705.71 over the course of 2023. |
Investment policy and objectives |
The Charity received a material legacy donation in 2019. After evaluating alternatives, the trustees concluded the funds would be most efficiently managed internally by forming an investment committee with relevant experience who would recommend an investment strategy for the Charity and monitor and report of ongoing investment performance. A long term investment strategy was developed by the investment committee and adopted by the trustees with the goal of generating returns over the long term exceeding inflation and implemented by holding a portfolio of low cost passive ETFs held in a UK investment account with a leading broker. The legacy funds received were fully invested in the agreed portfolio by late 2020. |
Reserves policy |
It is the policy of the Charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to at least six months expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity's current activities while consideration is given to ways in which additional funds may be raised. |
FUTURE PLANS |
We continue to fund the Hotcourses Scholarship Programme, which currently funds the education of 50 HIV-positive students living in the informal settlements around Nairobi, Kenya and we are currently reviewing a shortlist of educational organisations in Kenya that are interested in receiving funding and the trustees aim to make a decision by Spring 2024. We remain convinced that the best way to improve the life chances of the children we support is to provide them with an excellent education, leading to career outcomes that will allow them to live independently economic lives. |
We will resume fundraising events and look for new sponsorships once our trustees have selected a new educational project to be funded and we have completed our due diligence of the organisation. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. |
Recruitment and appointment of new trustees |
New trustees are appointed due to their interest in the work of the Charity and their recognised experience in |
specific fields which will further support the work of the Charity. New trustees can be appointed by a majority |
vote of the existing trustees. New trustees are given a full induction by the other trustees of the Charity. |
THE KISOMO FOUNDATION (Registered number: 05147284) |
Report of the Trustees |
for the Year Ended 31 December 2023 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Risk management |
The trustees have considered the major risks to which the Charity is exposed. The first main risk is the lack of incoming funds. To mitigate this risk, trustees have implemented the policy on reserves and always look for new opportunities to diversity the sources of income. The other risk is unauthorized expenditure of the funds. The trustees regularly review the risk management system and financial controls and procedures to prevent fraudulent activities. We have a secure donor database and follow the guidelines of GDPR to ensure compliance with data protection legislation. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
Company Secretary |
STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of THE KISOMO FOUNDATION 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. |
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. |
THE KISOMO FOUNDATION (Registered number: 05147284) |
Report of the Trustees |
for the Year Ended 31 December 2023 |
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued |
The trustees (who are also the directors of The Kisomo Foundation 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 SOAP; |
- 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 the 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. |
Approved by order of the board of trustees on |
THE KISOMO FOUNDATION |
Statement of Financial Activities |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Investment income | 2 |
Total |
EXPENDITURE ON |
Raising funds |
Charitable activities |
Grant to Institutions | 28,691 | - | 28,691 | 99,081 |
Charitable Activities |
61,854 | 10,000 | 71,854 | 37,610 |
Other | 419 | - | 419 | - |
Total |
Net gains/(losses) on investments | ( |
) | ( |
) | ( |
) |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 6,217,486 |
THE KISOMO FOUNDATION (Registered number: 05147284) |
Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Unrestricted | Restricted | Total | Total |
fund | fund | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investments | 5 |
CURRENT ASSETS |
Prepayments and accrued income |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 6 | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 7 |
Unrestricted funds: |
General fund | 6,233,321 | 6,199,581 |
Restricted funds: |
Restricted Fund |
8,905 | 17,905 |
TOTAL FUNDS | 6,217,486 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023. |
The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 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. |
THE KISOMO FOUNDATION (Registered number: 05147284) |
Balance Sheet - continued |
31 December 2023 |
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 |
THE KISOMO FOUNDATION |
Notes to the Financial Statements |
for the Year Ended 31 December 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, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. |
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. |
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. |
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. |
2. | INVESTMENT INCOME |
31.12.23 | 31.12.22 |
£ | £ |
Investment Income | 143,706 | 130,911 |
3. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022. |
THE KISOMO FOUNDATION |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
fund | fund | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 75,781 | - |
Investment income |
Total |
EXPENDITURE ON |
Raising funds |
Charitable activities |
Grant to Institutions | 24,216 | 74,865 | 99,081 |
Charitable Activities |
37,610 | - | 37,610 |
Total | 81,416 | 74,865 |
Net gains/(losses) on investments | ( |
) | ( |
) |
NET INCOME/(EXPENDITURE) | ( |
) | (74,865 | ) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward | 6,543,573 | 92,770 |
TOTAL FUNDS CARRIED FORWARD | 6,199,581 | 17,905 | 6,217,486 |
5. | FIXED ASSET INVESTMENTS |
Listed |
investments |
£ |
MARKET VALUE |
At 1 January 2023 |
Revaluations | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 | 5,725,853 |
At 31 December 2022 | 5,760,902 |
There were no investment assets outside the UK. |
THE KISOMO FOUNDATION |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | FIXED ASSET INVESTMENTS - continued |
Cost or valuation at 31 December 2023 is represented by: |
Listed |
investments |
£ |
Valuation in 0 | 5,725,853 |
6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Other creditors |
Accruals and deferred income |
7. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.1.23 | in funds | 31.12.23 |
£ | £ | £ |
Unrestricted funds |
General fund | 6,199,581 | 33,740 | 6,233,321 |
Restricted funds |
Restricted Fund |
17,905 | (9,000 | ) | 8,905 |
TOTAL FUNDS | 24,740 | 6,242,226 |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 159,753 | (90,964 | ) | (35,049 | ) | 33,740 |
Restricted funds |
Restricted Fund |
1,000 | (10,000 | ) | - | (9,000 | ) |
TOTAL FUNDS | ( |
) | ( |
) | 24,740 |
THE KISOMO FOUNDATION |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | MOVEMENT IN FUNDS - continued |
Comparatives for movement in funds |
Net |
movement | At |
At 1.1.22 | in funds | 31.12.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 6,543,573 | (343,992 | ) | 6,199,581 |
Restricted funds |
Restricted Fund |
92,770 | (74,865 | ) | 17,905 |
TOTAL FUNDS | 6,636,343 | (418,857 | ) | 6,217,486 |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 206,692 | (81,416 | ) | (469,268 | ) | (343,992 | ) |
Restricted funds |
Restricted Fund |
- | (74,865 | ) | - | (74,865 | ) |
TOTAL FUNDS | 206,692 | (156,281 | ) | (469,268 | ) | (418,857 | ) |
A current year 12 months and prior year 12 months combined position is as follows: |
Net |
movement | At |
At 1.1.22 | in funds | 31.12.23 |
£ | £ | £ |
Unrestricted funds |
General fund | 6,543,573 | (310,252 | ) | 6,233,321 |
Restricted funds |
Restricted Fund |
92,770 | (83,865 | ) | 8,905 |
TOTAL FUNDS | 6,636,343 | (394,117 | ) | 6,242,226 |
THE KISOMO FOUNDATION |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | MOVEMENT IN FUNDS - continued |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
Incoming | Resources | Gains and | Movement |
resources | expended | losses | in funds |
£ | £ | £ | £ |
Unrestricted funds |
General fund | 366,445 | (172,380 | ) | (504,317 | ) | (310,252 | ) |
Restricted funds |
Restricted Fund |
1,000 | (84,865 | ) | - | (83,865 | ) |
TOTAL FUNDS | 367,445 | (257,245 | ) | (504,317 | ) | (394,117 | ) |
8. | RELATED PARTY DISCLOSURES |