THE KISOMO FOUNDATION - Charities report

REGISTERED COMPANY NUMBER: 05147284 (England and Wales)

REGISTERED CHARITY NUMBER: 1104396

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 December 2024

for

THE KISOMO FOUNDATION

Page

Report of the Trustees

1

to

3

Statement of Financial Activities

4

Balance Sheet

5

to

6

Notes to the Financial Statements

7

to

11

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

The Kisomo Foundation was registered on 10 June 2024 and has replaced Nyumbani UK and The Hotcourses Foundation. The Kisomo Foundation is constituted as a company limited by guarantee 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. Previously, we have focused on orphans suffering due to AIDS and HIV living in East Africa. As The Kisomo Foundation, we fund a community school called MCEDO in the Mathare district of Nairobi providing education for over 500 children across both primary and secondary schools. We also fund a scholarship programme for HIV-positive children in the informal settlements of Nairobi and provide scholarships for approximately 50 children in college and University throughout Kenya.

The Kisomo Foundation funds a full-time Director of Schools based in Nairobi, working in MCEDO as well as a consultant to support the scholarship program.

All other work is by the volunteer board members, trustees and other volunteers.

Application of the Charity's funds

During the course of 2024 The Kisomo Foundation sent funds to support the following:

MCEDO Community School

This is a school established over twenty years ago that provides education, food and support to approximately 500 children based in the Mathare informal community in Nairobi, Kenya. Kisomo funds the vast majority of the costs of running the school which aims to change the lives of the children it supports through education.

Scholarship Fund for the benefit of HIV-positive children in Kenya

The Foundation continues to support the education of around 50 HIV-positive children living primarily 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 also funds the tertiary education of a number of children educated in the Lawson Secondary School in Kenya's Kitui province.

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.

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

05147284 (England and Wales)

Registered Charity number

1104396

Registered office

25 Leeming Road

Borehamwood

Hertfordshire

WD6 4EB

Trustees

S J Cleaver

Ms L Digrandi

M G Elms

D Grunberg

J M Southgate (resigned 12.3.24)

P D Wilson

S F PATTERSON (appointed 20.6.24)

Company Secretary

D Grunberg

Approved by order of the board of trustees on 29 September 2025 and signed on its behalf by:

M G Elms - Trustee

31.12.24

31.12.23

Unrestricted

Restricted

Total

fund

funds

Notes

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

10,695

-

10,695

17,047

Investment income

2

156,311

-

156,311

143,706

Total

167,006

-

167,006

160,753

EXPENDITURE ON

Charitable activities

Grant to Institutions

186,220

-

186,220

28,691

Charitable Activities

47,532

-

47,532

71,854

Other

628

-

628

419

Total

234,380

-

234,380

100,964

Net gains/(losses) on investments

603,261

-

603,261

(35,049

)

NET INCOME

535,887

-

535,887

24,740

RECONCILIATION OF FUNDS

Total funds brought forward

6,233,321

8,905

6,242,226

6,217,486

TOTAL FUNDS CARRIED FORWARD

6,769,208

8,905

6,778,113

6,242,226

31.12.24

31.12.23

Unrestricted

Restricted

Total

fund

funds

Notes

£

FIXED ASSETS

Investments

5

6,669,103

-

6,669,103

5,725,853

CURRENT ASSETS

Cash at bank

102,105

8,905

111,010

518,173

CREDITORS

Amounts falling due within one year

6

(2,000

)

-

(2,000

)

(1,800

)

NET CURRENT ASSETS

100,105

8,905

109,010

516,373

TOTAL ASSETS LESS CURRENT
LIABILITIES

6,769,208

8,905

6,778,113

6,242,226

NET ASSETS

6,769,208

8,905

6,778,113

6,242,226

FUNDS

7

Unrestricted funds:

General fund

6,769,208

6,233,321

Restricted funds:

Restricted Fund

8,905

TOTAL FUNDS

6,778,113

6,242,226

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

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

(b)

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

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

The financial statements were approved by the Board of Trustees and authorised for issue on 29 September 2025 and were signed on its behalf by:

M G Elms - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

31.12.24

31.12.23

£

Investment Income

156,311

143,706

3.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2024 nor for the year ended 31 December 2023.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2024 nor for the year ended 31 December 2023.

4.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

16,047

1,000

17,047

Investment income

143,706

-

143,706

Total

159,753

1,000

160,753

EXPENDITURE ON

Charitable activities

Grant to Institutions

28,691

-

28,691

Charitable Activities

61,854

10,000

71,854

Other

419

-

419

Total

90,964

10,000

100,964

Net gains/(losses) on investments

(35,049

)

-

(35,049

)

NET INCOME/(EXPENDITURE)

33,740

(9,000

)

24,740

RECONCILIATION OF FUNDS

Total funds brought forward

6,199,581

17,905

6,217,486

TOTAL FUNDS CARRIED FORWARD

6,233,321

8,905

6,242,226

5.	FIXED ASSET INVESTMENTS

Listed

investments

£

MARKET VALUE

At 1 January 2024

5,725,853

Additions

339,989

Revaluations

603,261

At 31 December 2024

6,669,103

NET BOOK VALUE

At 31 December 2024

6,669,103

At 31 December 2023

5,725,853

There were no investment assets outside the UK.

Cost or valuation at 31 December 2024 is represented by:

Listed

investments

£

Valuation in 0

6,669,103

6.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

Accruals and deferred income

2,000

1,800

7.	MOVEMENT IN FUNDS

Net

movement

At

At 1.1.24

in funds

31.12.24

£

Unrestricted funds

General fund

6,233,321

535,887

6,769,208

Restricted funds

Restricted Fund

8,905

-

8,905

TOTAL FUNDS

6,242,226

535,887

6,778,113

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

167,006

(234,380

)

603,261

535,887

TOTAL FUNDS

167,006

(234,380

)

603,261

535,887

Comparatives for 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

6,217,486

24,740

6,242,226

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

159,753

(90,964

)

(35,049

)

33,740

Restricted funds

Restricted Fund

1,000

(10,000

)

-

(9,000

)

TOTAL FUNDS

160,753

(100,964

)

(35,049

)

24,740

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

Net

movement

At

At 1.1.23

in funds

31.12.24

£

Unrestricted funds

General fund

6,199,581

569,627

6,769,208

Restricted funds

Restricted Fund

17,905

(9,000

)

8,905

TOTAL FUNDS

6,217,486

560,627

6,778,113

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

326,759

(325,344

)

568,212

569,627

Restricted funds

Restricted Fund

1,000

(10,000

)

-

(9,000

)

TOTAL FUNDS

327,759

(335,344

)

568,212

560,627

8.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 December 2024.