The Trustees present their annual report and financial statements for the year ended 31 August 2024.
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 Memorandum and Articles of Association, 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)" (effective 1 January 2019).
The purposes of the charity as set out in its governing document.
The objectives of the Company shall be to provide development and support to the communities in Zambia for the furtherance of the relief of poverty, the advancement of education and other charitable purposes by engaging in community development programmes to provide improved educational and other facilities so as to enhance future opportunities and development for people in Zambia
The main activities undertaken in relation to those purposes in the year
During the year the charity undertook to build a new secondary school for the community in Lusaka. Donations were received. Various building materials were purchased and shipped to the region to enable the work to commence. A team of individuals travelled to Lusaka to oversee the progress.
The following is a summary of the different strands of work we are currently involved in.
1 Build a secondary school for 400 children in Chainda.
2 Establish a Pre and Post-natal children nutritional clinic for expectant mothers from Chainda compound and local district.
3 Link QUB Belfast to UNZA, the Teaching Hospital of Lusaka.
4 Expand our Primary school in the parish to accommodate 250 children.
5 Install a water pump, stand and tank system for both of our feeder Primary schools and our Secondary school.
6 Construct a metalwork, woodwork and construction centre for practical learning and education on our secondary school site.
The charity raises funds in Northern Ireland but the charitable works are carried out in Zambia.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.
The Co-ordinators have secured 7 acres of land from a private family, close to the Community centre and St Teresa's Primary School in Chainda. The land registry deeds for this land are lodged with the SMA Tyrone School.
Our intention is to build a non-denominational, all abilities, secondary school for up to 1,000 children, boys and girls. Currently, in the compound, there are places available for 15% - 20% of the children that are eligible to go to secondary school.
In many cases the families of these children cannot afford to pay fees or travelling costs to the few secondary schools in the city. This situation compounds the already significant problems and lack of options available to these children and young adults in regards to basic post primary education, personal health, life skills, career skills and availability of post 16year education choices.
We have a successful primary school in St Teresa’s and there are other primary schools within 1.5km that teach the children from the nearby Compounds.
Per student place, secondary schools are expensive to start up but can make money as a business within 5 years, the profits are then used to improve the school resources and offer bursaries to the kids from less well-off families and the compounds.
Currently Sr Clare are drawing up 3 and 5 year plans for both schools. Queens Uni Belfast, medical school are coming on board with medical support for our Chainda children.
The basic school structure is similar to Jim Brady's school on the T2 at MOOMBA .
A single story building built around a central courtyard with a high wide veranda and strict access in and out past the Principals office. The initial phase will cater for 400 students in 13 classrooms and construction skills rooms. We will teach basic languages, maths, sciences, computers, home economics, personal development and health, sport, music and drama.
The site requires the following construction projects completed, whether we have 100 children or 1,000,
*400 metres of safety perimeter wall and safety gates.
*Safe car drop off areas and traffic management,
*Upgrading of adjacent foot paths,
*Staff car and bike parking.
*Teacher accommodation block.
We intend catering for 1st year children this January with numbers growing in every term as facilities grow. We will have a cash shortfall until student numbers are over 150. So the sooner we get facilities in place the sooner the charity will run the way we foresee it, and be able to offer real meaningful bursaries to the poorest children in the compound to set them on a life course that they can only dream off, up to now.
The Spirit of Paul McGirr do not work anywhere else in Africa; we are dedicated to this community, we know the community leaders the rascals and rogues, we have employed most of them, we have a settled team of builders and electricians there for the last 18 months. We are in control of all the finances in the secondary school project and we get constant information and feedback from the Principals and our fulltime Accountant.
During the year the donations received enabled us to continue to undertake the current secondary school building project, to add to the successful build of the Tyrone school. The services and activities provided in previous years by the new primary school have benefited local children, and their parents. These services have offered educational opportunities for children in the area, and also enable their parents to go out and work. The secondary school will provide much needed additional education support to the older children in the area.
This has a double impact of helping to develop the literacy of the community, and the economic circumstances of families. Both of these are key foundations to raising the standard of living for the community, and the region as a whole. During the year the kevy wing and third side of the rectangle of the school construction was completed. The construction of three classrooms in the school triangle have been started in autumn 2024.
The charity relies on the donations from the donors identified as required in the accounts, whose support is valued.
The trustees consider the financial performance by the charity during the year to have been satisfactory. Donations and income of £88,081 were received, with expenditure of £84,487 resulting in a surplus of £2,994. The main expenditure was on the new secondary school which continued its construction during the year, as well as travel costs to area.
The reserves policy outlines the rationale for holding a specific level of reserves, aimed at instilling confidence in stakeholders regarding financial management and indicating future funding needs and resilience.
In the next year plans are set to finish the three classrooms and close the courtyard with kerbing and flowerbeds to complete the courtyard and other plans include kerbing the carpark, flowerbeds, entrance gates and get the storage compound roofed. There is plans to secure the entire site with either high walls, fencing and safety gates with security guards. In addition there will be a fenced urban garden with laying hens, plots of vegetables and fruit which will be managed as part of the H.E. teaching module.
The Charity is a company limited by guarantee, not having a share capital.
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:
New trustees are identified through word of mouth. They come from the local community so very often are well known to existing members of the trustees of the charity. Potential trustees are screened and appointed by a panel comprising of existing trustees including the Chairperson. An active recruitment process is not undertaken as the charity is completely community-driven with its members and trustees all being from the local area.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The Spirit of Paul McGirr is governed by its Memorandum and Articles of Association dated 18th June 2008. It is registered with the Charity Commission for Northern Ireland on 30th July 2015.
The Trustees report was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of The Spirit of Paul McGirr (the Charity) for the year ended 31 August 2024.
Having satisfied myself that the charity is not subject to audit under company law, and is eligible for independent examination, it is my responsibility to:
(i) examine the accounts under section 65 of the Charities Act
(ii) follow the procedures laid down in the general Directions given by the Charity Commission for Northern Ireland under section 65(9)(b) of the Charities Act
(iii) state whether particular matters have come to my attention.
I have examined your charity accounts as required under section 65 of the Charities Act and my examination was carried out in accordance with the general directions given by the Charity Commission for Northern Ireland under section 65(9)(b) of the Charities Act. The examination included a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also included consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as charity trustees concerning any such matters.
My role is to state whether any material matters have come to my attention giving us cause to believe:
That accounting records were not kept in accordance with section 386 of the Companies Act 2006
That the accounts do not accord with those accounting records
That the accounts do not comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the 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
That there is further information needed for a proper understanding of the accounts to be reached.
I can confirm that I am qualified to undertake the examination because I am a registered member of Chartered Accountants Ireland which is one of the listed bodies.
I have completed my examination and I believe that attention should be drawn to the following matters.
I have identified matters of concern that give me reasonable cause to believe that the accounts prepared for the company are not fully compliant with the accounting requirements of section 396 of Companies Act 2006 and have not been prepared fully in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities.
The Trustees have prepared a Statement of Financial Activities incorporating an income and expenditure account. However sufficient records have not been maintained. It has been difficult to allocate funds with certainty between restricted and unrestricted funds and this also impacted the financial statements for the year ended 31 August 2024. Accordingly, all funds have been treated as unrestricted.
Records of income and expenditure have been maintained for examination but these are incomplete. The charity has recorded income from donors totalling £88,081 but limited documentation has been retained to confirm origin.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The Spirit of Paul McGirr is a private company limited by guarantee incorporated in Northern Ireland. The registered office is .
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" 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)". 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.
These financial statements are prepared on the going concern basis. Therefore Trustees have a reasonable expectation that the Charity will continue in operational existence for the foreseeable future.
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.
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.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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.
The average monthly number of employees during the year was:
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
The balance of loans owed to former trustee Fionnuala Colton at the year end was £11,771. It has been agreed that this will be repaid when the charity has available funds.
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.
At the start of the year the opening balance of the interest free loan provided by a former trustee to the charity was £11,771. This balance of loan owed was from Fionnuala Colton who resigned on 15th January 2022. It has been agreed that this will be repaid when the charity has the available funds. This amount is included in the creditors section in the balance sheet.
During the year the charity transferred £75,960 to trustee Michael McGirr. Michael, subsequently transferred £75,960 to SMA Fathers in Zambia.
During the year £2,567 was transferred to trustee Frankie Donnelly to reimburse credit card expenses for the construction of Tyrone School Zambia, which is located in Lusaka, Zambia. The bank will not permit the charity to transfer funds abroad.