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Nuevas Esperanzas UK Trustees’ Report and Accounts for the period ended 30 th June 2007 Charity Number: 1116109

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Page 1: Nuevas Esperanzas 2007 Annual Reports/Nuevas... · 1 Contents Page Legal and Administrative Details 2 Report of the Trustees 3 – 8 Report of the Independent Examiner 9 Statement

Nuevas Esperanzas UK

Trustees’ Report and Accounts

for the period ended 30th June 2007

Charity Number: 1116109

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Contents Page Legal and Administrative Details 2

Report of the Trustees 3 – 8

Report of the Independent Examiner 9

Statement of Financial Activities 10

Balance Sheet ` 11

Notes to the Accounts 12 – 16

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Legal and Administrative Details

Charity name and number

Nuevas Esperanzas UK Registered charity number 1116109

Correspondence address

18 Noel Road, London N1 8HA

Telephone: 0207 7042082 E-mail: [email protected] Website: www.nuevasesperanzas.org

Trustees

Dr Emma Higham (Chair) Miss Allie Schwaar Mr Peter Dockree

Mr Alan Reed Dr Andrew Rowe (resigned December 2006)

Mrs Liz Buchanan (elected June 2007) Mr Simon Pitkin (elected June 2007)

Director

Dr Andrew Longley

Bankers

Lloyds TSB 8 Ock Street, Abingdon, Oxon OX14 5AP

Independent Examiner

Bruce F Jones, Ramon Lee & Partners Kemp House, 152/160 City Road, London EC1V 2DW

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Trustees’ Report The Trustees present their report and financial statements for the period to 30

th June 2007.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity’s governing document, applicable law and the requirements of the Statement of Recommended Practice, “Accounting and Reporting by Charities” issued in March 2005.

Organisational structure, governance and management Governing document The trustees met for the first time on 8

th April 2006 to form “Nuevas Esperanzas UK”, an amended Declaration of Trust

was signed on 11th August 2006 and charitable status was granted on 12

th September 2006. The organisation is

governed by the Trust deed which gives the trustees the power to apply the funds for the relief of poverty in Nicaragua. Recruitment and appointment of Trustees The Trust deed states that there must be a minimum of three trustees. There are no fixed terms for trustees to serve and new trustees are appointed by a resolution at a special meeting, having regard to the skills, knowledge and experience needed for the effective administration of the charity. New trustees are given a copy of the Trust deed and any subsequent amendments, and a copy of the charity’s latest report and statement of accounts. The trustees who held office during the financial period and at the date of this report are set out on page 2. They have no beneficial interest in the organisation other than as trustees, and have absolute discretion with regards to investment decisions. No Trustee received remuneration during the period for services to the Trust. Organisational structure The trustees take responsibility for the overall governance of the charity, making or ratifying strategic and policy decisions. During the period, a considerable number of important decisions have been made concerning the establishment of the charity and the creation of its operational office in Nicaragua. The charity’s director is responsible for the day to day operation of the charity and manages the staff based in a small office in León, Nicaragua. He provides input to all meetings of the trustees and attends one meeting each year during his annual visit to the UK. The director approves grants made to local partners and co-ordinates training and other support provided in accordance with strategies and policies approved by the trustees. As the legal representative of Nuevas Esperanzas UK in Nicaragua, the director is also responsible for co-ordination with the Government of Nicaragua and all operations of the charity in country. Running the UK charity from its office in Nicaragua has a number of advantages. It facilitates communication between Nuevas Esperanzas UK and its local partner, Programa Nuevas Esperanzas, it allows the charity to be closely involved in the verification of needs assessments and in monitoring and evaluation of its projects, and support costs are significantly lower running an office in Nicaragua as opposed to the UK. It also allows the charity to provide ongoing training and consultancy support to its local partner. As an overseas charity operating in Nicaragua, Nuevas Esperanzas UK is entitled to tax exemption to which the local partner is not entitled. The Nicaragua office has a cable internet connection and communication is rarely a problem with trustees, professional advisers and donors in the UK. The main challenge of running a UK charity from overseas is ensuring the efficient administration of the UK part of the charity in areas such as banking, processing of donations and fundraising. To address these challenges, the trustees assist with some of the day to day tasks which necessarily require a presence in the UK and from March 2007, the processing of UK donations was contracted out to the Charities Aid Foundation. Fundraising is managed from the office in Nicaragua with trustees and other supporters assisting where a UK presence is necessary. The Nicaragua office manages donor communication, financial management and accounting, reporting, publicity (including website design and maintenance), proposal writing, project monitoring and evaluation, delivery of training courses and provision of technical advice to its local partner. The Nicaragua operations of Nuevas Esperanzas UK are required to comply with Nicaraguan legal requirements including retention of taxes, payment of social security and compliance with specific regulations applied to non-governmental organisations. Nuevas Esperanzas UK was

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registered as an international non-governmental organisation in Nicaragua on 27th October 2006 (Numero Perpetuo

3537) and has a co-operation agreement with Government of Nicaragua (signed on 27th November 2006).

Risk management Possible risks to the charity are identified and investigated, and measures put in place to manage risks as appropriate. In the last period, risks specifically identified included liabilities associated with contracting personnel overseas, the extent to which the charity depends on the co-operation of its local partner, and the risk of fraud. Risk management measures introduced included the introduction of a policy on reserves and systems of accountability which encourage greater transparency.

History and objectives of the Trust “Nuevas Esperanzas” (Spanish for “New Hope”) was established in November 2005 in Nicaragua as a programme to assist poor communities through projects which provide practical and technical assistance in support of long-term sustainable development. Nuevas Esperanzas works in a number of sectors including agriculture, water, the environment, health and housing and aims to integrate innovation and technical excellence with good practice in development, always mindful of the complex web of economic, environmental, social and spiritual issues which conspire against those living in poverty. The programme was originally set up to continue projects previously initiated by Mercy Ships, an international aid organisation, which closed its operations in Nicaragua in October 2005 after eight years working in the country. To ensure the continuity of ongoing projects, Mercy Ships Nicaragua donated its assets and funds to FUNDAPADELE (Fundación para el Desarrollo de León), a local non-governmental organisation, forming an autonomous programme “Programa Nuevas Esperanzas” run by the former staff of Mercy Ships Nicaragua under the director of FUNDAPADELE and accountable to its Board of Directors. As the work of Programa Nuevas Esperanzas continued to develop and grow, the decision was taken to form an independent charitable trust in the UK to support the work. The Trust is run from an office in León, Nicaragua, which has three staff who manage the funds of the charity on behalf of the trustees. Nuevas Esperanzas UK currently supports the work of Programa Nuevas Esperanzas in relieving poverty through the donation of funds (both restricted and unrestricted) and materials. The Trust also provides other forms of support to Programa Nuevas Esperanzas, such as training and consultancy with the intention of building the capacity of the local partner organisation to implement effective development programmes. Other non-governmental organisations in Nicaragua may also apply to the Trust. Whilst Nuevas Esperanzas UK seeks to work as far as possible through local partners, it may, where appropriate, provide assistance directly to rural communities for the relief of poverty. The names used in this report for the Trust and its local partner are defined as follows:

• “Nuevas Esperanzas UK” is the UK-registered charitable trust, including its office in Nicaragua • “Programa Nuevas Esperanzas” is the local partner organisation which works under the direction of

FUNDAPADELE

• “Nuevas Esperanzas” is used on its own to refer to both of the aforementioned entities.

Vision, mission, expected outcomes and activities

“Our vision is a just and free society in which we are all able to fulfil our God-given potential, looking to the interests of others as well as ourselves.”

The mission of Nuevas Esperanzas is to provide practical and technical assistance to communities in Nicaragua as they seek to establish sustainable livelihoods which lift them out of poverty and to encourage transformational development, both material and spiritual, at all levels of society. Nuevas Esperanzas UK supports this mission by providing funding, training and advice to its local partner which works directly with communities, facilitating projects in a wide range of sectors including water and sanitation, housing, environmental management and education. Nuevas Esperanzas also encourages churches, both Catholic and Protestant, to work together to serve the poor of their communities. The charity expects to see changes in beneficiary communities which go beyond the immediate project outputs such as houses built, rainwater harvesting systems installed and training courses delivered. Lasting outcomes can only be achieved when the beneficiaries themselves commit to work together, look to the interests of others and invest in the future of their own communities. Nuevas

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Esperanzas facilitates this process by seeking to live as an example, by ‘conscientisation’ and by the application of participatory methodologies. Values, not just activities, are necessary if transformational development of poor communities is to become a reality. Nuevas Esperanzas challenges the prevailing attitudes of the local culture where they hinder development, promoting the following alternative values which encourage the development of a just and free society:

• Commitment and vision

• Honesty and transparency • Professionalism and innovation

• Ecumenism and inclusiveness

• Empowerment and stewardship The main areas of activity during the year can be broadly categorised into the following groups of projects: Rainwater harvesting projects Since 2004, Nuevas Esperanzas and its predecessor have been promoting rainwater harvesting projects amongst communities located within the range of volcanoes in western Nicaragua known as Los Maribios. Rainwater harvesting from roofs is a simple, cost effective and highly appropriate technology in areas such as this where other options such as hand-dug wells or boreholes are not possible because of poor groundwater quality due to volcanic activity. Four specific projects were supported during the year which aimed to increase the availability of good quality drinking water for poor communities in Los Maribios. In the first, “Churches unite to catch the rain”, four churches of different denominations in San Jacinto were encouraged to put aside their differences and work together to build rainwater catchment systems which used the roofs of their own buildings to harvest water for the community. In the second project at El Ojochal, a rainwater harvesting system was built at a village school in a remote community high on the slopes of Volcán Telica. Another project which started during the year aimed to build 10 household rainwater harvesting systems at Gracias a Dios, whilst “Mountain Rain”, a large project to build around 120 systems in Los Maribios was at the design stage. Resettlement projects The most significant project undertaken by Nuevas Esperanzas during the year was the first phase of the housing project at La Palmerita. This is a community of former coffee workers, displaced from their homes in the north of Nicaragua, who were given an area of land near Malpaisillo. Nuevas Esperanzas and its predecessor have been working with this group of marginalised farm labourers since 2001 to develop a new self-sustaining community. Although the grants made by Nuevas Esperanzas UK during the year were relatively small, the technical assistance provided by the trust helped to secure funding of over £150k for FUNDAPADELE/Programa Nuevas Esperanzas from the Government of Nicaragua and the American Nicaraguan Foundation to build 112 low cost prefabricated houses. Additional work was undertaken on the construction of latrines and the drilling of a borehole for a new water supply. Technical assistance was also provided in support of another resettlement project, this time for displaced islanders in Lake Nicaragua. As the numerous small islands near Granada, known as Las Isletas, are sold off to make way for tourist developments, the inhabitants are steadily losing their homes and their livelihoods. This project, which is at the early stages of design and Environmental Impact Assessment, aims to build a new settlement on the Asese Peninsula with easy access to the lake to protect the livelihood of the fishing community. Nuevas Esperanzas provided technical input to this project which is being managed by a partner organisation. Library project During the year a small library project, “Libro Amigo”, was initiated aimed at promoting reading at a school in an impoverished rural community. Local partner capacity building A significant investment was made during the year in building the capacity of the local partner, Programa Nuevas Esperanzas. The establishment of Nuevas Esperanzas UK in effect represented a separation of the expatriate part of Nuevas Esperanzas from the Nicaraguan-run programme. This separation aimed to empower national staff, handing over responsibility for the implementation of projects to the local team. Such a transition requires great care and significant investment in training and support and the staff of Nuevas Esperanzas UK were closely involved in coaching, advising and supporting their Nicaraguan colleagues in Programa Nuevas Esperanzas as well as providing formal training courses. Spiritual retreats including all staff from both Nuevas Esperanzas UK and Programa Nuevas Esperanzas helped to build understanding, teamwork and commitment. Grants of unrestricted funds were made to enable Programa Nuevas Esperanzas to recruit new staff, receive training and fund support costs not covered through restricted funds.

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Fundraising To raise support for these projects, Nuevas Esperanzas UK invested in activities to promote the new charity, such as the design and maintenance of its website, as well as writing funding proposals. The majority of the emphasis on fundraising was on individuals and churches, although grants were also received from two UK trusts and other organisations and businesses. Nuevas Esperanzas UK also raised awareness and funds in Nicaragua by organising a classical concert in León by visiting British pianist, John Longley, and Nicaragua’s top orchestra, the Camerata Bach. Though not reflected in the statement of financial activities, the role of volunteers was particularly important in the work of the charity. The full-time Director and part-time Communications Officer worked for the whole reporting period without remuneration and the technical work in Nicaragua was supported by three visiting volunteers from the UK, all of whom are experienced professionals in fields related to water and environmental management.

Achievements and performance The most significant achievement of the year was the construction of the first 112 houses at La Palmerita for displaced former coffee workers. Nuevas Esperanzas UK played a key part in the negotiations to secure funding, and although these funds are not shown in the attached accounts as they were passed directly from the donors to the local partner, this was nonetheless a significant achievement for the charity. The houses were completed in February 2007. This was a time of great celebration for the beneficiaries at La Palmerita who had been living for six years under plastic sheeting waiting for progress on the legalisation of the land and funding of the houses. The housing project represented a significant step towards building a stable, self-sufficient community, not just materially, but symbolically, as many had been in doubt that their dream would ever be realised. The housing project provided a much-needed symbol of hope in a community more accustomed to despair. There is still a long way to go at La Palmerita before this community is able to realise its full potential and Nuevas Esperanzas UK is fully committed to support this project, as far as its resources permit, until it is sustainable, thriving and at peace. Another significant achievement was the completion of the “Churches unite to catch the rain” project in San Jacinto. This project went significantly beyond the development of new water sources to improve access to potable supplies in this water stressed community, bringing together Catholic, Pentecostal and Baptist churches for the first time in a community, and culture, where denominational differences run deep and are often the cause of social division. Workshops and ecumenical events encouraged understanding between the churches and, at the end of the construction part of the project, an inauguration ceremony saw the church leaders involved in blessing the rainwater harvesting systems at each others’ churches according to their own customs and traditions. Such an event would have been impossible at the outset of the project and many prejudices and misunderstandings have been challenged. This project reflected the desire of Nuevas Esperanzas to see material and spiritual development transform a community. The establishment of Programa Nuevas Esperanzas as a Nicaraguan-run development programme was also a significant achievement of the year. Although there are some areas which will require ongoing training and assistance, the Nicaraguan team has shown itself to be capable of implementing projects effectively, managing funds appropriately, providing financial statements and progress reports in a timely and transparent manner and developing its staff, both professionally and personally. Since this was the first reporting year for the charity and the availability of funds was very uncertain at the outset, no specific performance indicators were set. As the charity begins to grow and baseline information is collected, performance indicators will be set for future years.

Plans for the future After a good start, Nuevas Esperanzas UK aims to build its level of regular support through appeals to individuals and churches. A promotional DVD will be used to raise awareness of the work of Nuevas Esperanzas, providing donors with an insight into the activities and outcomes of two specific projects, “Churches unite to catch the rain” and the resettlement project at La Palmerita. Nuevas Esperanzas UK will also submit proposals for at least three large projects to major donors over the coming year, to continue the work at La Palmerita and to expand the rainwater harvesting programme. Nuevas Esperanzas will also seek to diversify its projects, developing new proposals to improve environmental management in disaster-vulnerable communities on the slopes of Nicaragua’s volcanoes, and improving agricultural production and agri-business development by small producers.

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Greater responsibility will be given to the local partner for the development of new proposals over the coming year, and training will be provided by Nuevas Esperanzas UK in project management and participatory appraisal techniques. The embedding of values in development projects will be developed and Nuevas Esperanzas UK will continue to support capacity-building of its local partner through formal and informal training, as well as spiritual retreats.

Transactions and financial position During its first period, Nuevas Esperanzas UK raised just over £50,000 in grants and donations from individuals, churches, trusts and other organisations, of which over £35,500 was used during the period. Since this was the first period, no reserves were brought forward. Over half the funds received were unrestricted donations which allowed the charity to build up £8,431 of unrestricted reserves. However, £3,860 of these unrestricted funds is designated, principally to pay for the production of a promotional DVD which will be completed during the next reporting period. Of the £35,500 spent during the period, nearly £30,000 was used for charitable activities of which nearly £24,000 was donated to Programa Nuevas Esperanzas as both restricted and unrestricted grants. As stated above, the impact of the charitable activities of Nuevas Esperanzas UK cannot be measured simply by the amount of money which has passed through the charity’s own accounts, as funding received by the local partner was, in some cases, the direct result of proposals prepared by, or with significant input from, the staff of Nuevas Esperanzas UK. In addition to the grant of over £150,000 for housing, Nuevas Esperanzas UK also facilitated a number of other donations and contributed services during the period which were given directly to Programa Nuevas Esperanzas. These included a donation of £9,000 from the UK, other donations of over £3,000, and the drilling of a borehole at La Palmerita, worth around £2,000. The investment made in fundraising over the period is small for the amount raised, but will be increased in the following year as Nuevas Esperanzas UK seeks to grow and increase its support for its local partner. Reserves policy A provisional policy, that at least £2,000 or enough to cover six months of core costs should be held in reserves, was agreed by the trustees in December 2006. The overall financial situation is considered to be satisfactory for the first period.

Statement of Trustees’ responsibilities Charity law requires the Trustees to prepare financial statements for each financial period which give a true and fair view of the charity’s financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

a) select suitable accounting policies and apply them consistently; b) make judgements and estimates that are reasonable and prudent; c) state whether applicable accounting standards and statements of recommended practice have been followed,

subject to any material departures disclosed and explained in the financial statements; d) prepare the financial statements on a going concern basis unless it is inappropriate to assume that the Trust

will continue in operation. The Trustees are responsible for maintaining proper accounting records, which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 1993. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Approval This report was approved by the Trustees on 19

th April 2008 and signed on its behalf.

Signed on behalf of the trustees, Dr Emma Higham Chair 25

th April 2008

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REPORT OF THE INDEPENDENT EXAMINER TO THE TRUSTEES OF

NUEVAS ESPERANZAS UK

I report on the accounts of Nuevas Esperanzas UK for the period ended 30

th June 2007, which are set out on pages

10 to 16.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS

As the charity’s Trustees you are responsible for the preparation of the accounts; you consider that the audit requirement of Section 43(2) of the Charities Act 1993 (the Act) does not apply. It is my responsibility to state, on the basis of procedures specified in the General Directions given by the Charity Commissioners under Section 43(7)(b) of the Act, whether particular matters have come to my attention.

BASIS OF INDEPENDENT EXAMINER’S REPORT

My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you, as Trustees, concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.

INDEPENDENT EXAMINER’S STATEMENT

RAMON LEE & PARTNERS KEMP HOUSE 152 – 150 CITY ROAD LONDON EC1V 2DW 25

th April 2008

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STATEMENT OF FINANCIAL ACTIVITIES

FOR THE PERIOD ENDED 30TH JUNE 2007

Unrestricted RestrictedNotes Funds Funds 2007

£ £ £Incoming resources

Incoming resources from generated funds:Voluntary income:

Grants and donations 2 28,266 - 28,266 Activities for generating funds: Investment income 30 - 30 Incoming resources from charitable activities:

Grants and donations 4 - 21,890 21,890

Total incoming resources 28,296 21,890 50,186

Resources expended

Costs of generating voluntary income 5 3,139 - 3,139

Charitable activities 5 15,224 15,724 30,948

Governance costs 5 1,501 - 1,501

TOTAL RESOURCES EXPENDED 19,865 15,724 35,589

NET MOVEMENT IN FUNDS 8,431 6,166 14,597

Total funds, carried forward 8,431 6,166 14,597

CONTINUING OPERATIONS All of the charity’s activities commenced during the period ended 30th June 2007. None of the charity's activities were discontinued during the above financial period. TOTAL RECOGNISED GAINS AND LOSSES The charity has no recognised gains or losses other than the above movements in funds during the above financial period. The notes on pages 12 to 16 form part of these accounts.

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BALANCE SHEET AS AT 30TH JUNE 2007

Notes 2007

£ £

FIXED ASSETS

Tangible assets 9 452

CURRENT ASSETS

Debtors 10 2,746

Cash at bank and in hand 15,301

18,047

CREDITORS: amounts falling due

within one year 11 (3,902)

NET CURRENT ASSETS 14,145

NET ASSETS 14,597

INCOME FUNDS

Unrestricted funds

General funds 4,571

Designated funds 3,860 8,431

Restricted funds 6,166

TOTAL FUNDS 12 14,597

These accounts were approved by the Board of Trustees on 25

th April 2008 and were signed on its behalf by:

…………………………………………………. Chair …………………………………………………. Treasurer

The notes on pages 12 to 16 form part of these accounts.

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NOTES TO THE ACCOUNTS

FOR THE PERIOD ENDED 30TH JUNE 2007

1. ACCOUNTING POLICIES

1.1 Basis of accounting The financial statements have been prepared in accordance with applicable accounting standards and the Statement of Recommended Practice “Accounting and Reporting by Charities”, SORP 2005.

1.2 Fund accounting

Unrestricted funds are general funds which are available for use at the trustees’ discretion in furtherance of the objectives of the charity. Designated funds are unrestricted funds set aside at the discretion of the trustees for specific purposes. Restricted funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

1.3 Incoming resources All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to categories of income: � Voluntary income, including donations, gifts and legacies and grants which provide core funding or are of a

general nature, are recognised where there is an entitlement, certainty of receipt and the amount can be measured with sufficient reliability. Gift aid reclaimable on donations to the charity is included with the amount received and is allocated to the income category to which the income relates.

� Investment income is included when receivable.

� Income from charitable activities includes income where entitlement to grant or donated funding is subject to specific performance conditions. Income included in this category provides funding to support performance activities and is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

1.4 Resources expended

Expenditure is recognised when a liability is incurred. In the case of contractual arrangements for the supply of goods or services, expenditure is recognised once the supplier of the goods or services has performed their part of the contract.

� Grants payable

Grant payments are recognised when a constructive obligation arises which results in the payment being unavoidable.

� Costs of generating funds Costs of generating funds are those costs incurred in attracting voluntary income.

� Charitable activities Charitable activities include expenditure associated with the main objectives of the charity and include both the direct costs and support costs relating to these activities.

� Governance costs Governance costs are primarily associated with constitutional and statutory requirements.

� Support costs Support costs include central functions and have been allocated to activity cost categories on a basis consistent with time recorded by staff. Salaries and other employment costs are allocated to activity cost categories according to the time spent on those activities by salaried staff (as recorded on weekly time sheets). All other support costs are allocated to activity cost categories according to the time spent by all staff including volunteers.

1.5 Donated services The value of services provided by volunteers is not incorporated into these financial statements. Further details of the contribution made by volunteers can be found in the trustee’s annual report.

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NOTES TO THE ACCOUNTS (Cont/d)

FOR THE PERIOD ENDED 30TH JUNE 2007

1.6 Foreign currencies Transactions in foreign currencies are recognised at the rate of exchange at the date of transaction. Monetary assets and liabilities are translated into sterling at the exchange rate on the balance sheet date. All exchange differences are recognised through the Statement of Financial Activities.

1.7 Tangible Fixed Assets And Depreciation

All assets costing more than £500 are capitalised. Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives. Computer equipment - 50% on cost

2. VOLUNTARY INCOME

Voluntary income for the period falls into the following categories:

Unrestricted 2007

£ £

Donations Committed giving 5,374 5,374

Appeals and donations 6,753 6,753

Grants Trusts and foundations 9,635 9,635

Churches 6,196 6,196

Corporate donors 308 308

28,266 28,266

Although the value of services provided by volunteers is not incorporated into these financial statements, it should be noted that the full-time Director and part-time Communications Officer (0.2 FTE) worked as volunteers for the whole of the reporting period, contributing 1,821 and 555 hours respectively (excluding leave).

3. INVESTMENT INCOME All investment income for the period arose from interest earned on funds in Nicaragua.

4. INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Restricted 2007

Rainwater harvesting projects £ £

Churches 8,002 8,002

Trusts and foundations 3,000 3,000

Fundraising events (held by individuals) 5,810 5,810

Resettlement projects Churches 3,260 3,260

Individuals 295 295

Library project Churches 151 151

Trusts and foundations 1,250 1,250

Individuals 122 122

21,890 21,890

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NOTES TO THE ACCOUNTS (Cont/d)

FOR THE PERIOD ENDED 30TH JUNE 2007

5. RESOURCES EXPENDED

Rainwater Local partner

Basis of Voluntary Harvesting Resettlement Library Capacity

allocation Income projects projects project Building Governance 2007

£ £ £ £ £ £ £

Costs directly allocated to activities

Grants payable Direct - 11,510 - 1,341 11,020 - 23,871

Staff costs Direct 241 185 333 74 598 - 1,431

Direct project costs Direct - - 1,541 - - - 1,541

Publicity costs Direct 786 - - - - - 786

Travelling costs Direct 632 51 86 8 174 - 952

Other costs Direct - - - - - 73 73

Professional expenses Direct - - - - - 102 102

Independent Accountants fee Direct - - - - - 1,175 1,175

Support costs allocated to activities

Staff costs Staff time 480 368 664 147 1,193 - 2,852

Office costs Staff time 311 151 255 25 445 - 1,186

Communication costs Staff time 59 29 49 5 85 - 226

Depreciation Staff time 59 29 49 5 85 - 226

Other Staff time 570 104 101 12 228 152 1,167

3,139 12,427 3,077 1,616 13,827 1,501 35,589

Grants payable represents restricted and unrestricted grants made to local partner FUNDAPADELE, a non-governmental organisation in Nicaragua, to support their projects as classified above.

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Nuevas Esperanzas UK: Annual Report and Accounts 2007

15

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE PERIOD ENDED 30TH JUNE 2007

6. NET MOVEMENT IN FUNDS

Net movement in funds is shown after charging: 2007

£

Depreciation on tangible fixed assets 226

7. TRUSTEES AND EMPLOYEES

No Trustee received any remuneration whilst in the position of a trustee during the period. All the staff members are employed in Nicaragua.

8. TAXATION

Nuevas Esperanzas UK is a registered charity and therefore is not liable to Income Tax or Corporation Tax on income derived from its charitable activities.

9. TANGIBLE FIXED ASSETS

2007

Net book value: £

Office equipment 452

452

Movements in the period:

Cost: Opening Closing

Balances Additions Disposals Balances

£ £ £ £

Office equipment - 678 - 678

- 678 - 678

Depreciation: Opening Charge Closing

Balances For Period Disposals Balances

£ £ £ £

Office equipment - 226 - 226

- 226 - 226

10. DEBTORS

2007

£

Gift aid recoverable 282

Prepayments 2,464

2,746

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Nuevas Esperanzas UK: Annual Report and Accounts 2007

16

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE PERIOD ENDED 30TH JUNE 2007

11. CREDITORS: Amounts falling due within one period

2007

£

Reimbursement outstanding to local partner 2,001

Accruals and other creditors 1,901

3,902

12. MOVEMENT IN FUNDS

Incoming Outgoing Balance

Resources Resources at 30/06/07Restricted funds: £ £ £ Rainwater harvesting projects 16,812 11,482 5,330 Resettlement projects 3,555 2,719 836 Library project 1,523 1,523 -

21,890 15,724 6,166

Unrestricted funds: General funds 24,436 19,865 4,571 Designated funds 3,860 - 3,860

28,296 19,865 8,431

Total funds 50,186 35,589 14,597

Purpose of restricted funds: Rainwater harvesting projects Funding towards the Churches unite to catch the rain project, Gracias a Dios project and El Ojochal rainwater harvesting project. Refer to page 5 of the trustees’ report for further details of the project activities. Resettlement projects Funding towards the La Palmerita and Asese projects. Refer to page 5 of the trustees’ report for further details of the project activities. Library projects Funding towards the Libro Amigo project. Refer to page 5 of the trustees’ report for further details of the project activities.

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

General Designated Restricted

Funds Funds Funds Total

£ £ £ £

Tangible fixed assets 452 - - 452

Current liabilities 4,299 3680 6,166 14,145

Total net assets 4,751 3,680 6,166 14,597