MESSAGE FROM OUR CO-FOUNDER AND CHIEF EXECUTIVE
Humanitas has accomplished so much since we started, but our greatest achievement over the past year is the unprecedented growth of our primary school in Ghana, where more children are attending than ever before - 252 pupils who, without the school, would not be benefitting from an education.
When we first set out to build the school I could not conceive that four years on I would be reporting such a high figure! It is testament to the hard work and dedication of our remarkable teaching staff and the people of Ayensuako who have embraced the school so wholeheartedly.
Given the success of our school, and the need to further our pupils’ education, next year we plan to open a new secondary school in Ayensuako. This is an ambitious project and I hope you will follow our journey with interest – from digging the foundations to opening our doors. You can read more about our plans on page 3.
The Humanitas team in the UK has been working hard to put into practice our plan to become a paperless charity, in a concerted effort to reduce administration costs and our impact on the environment. This report will no longer be printed and will instead feature on our web site for funders and supporters to read. We have also set up personal You Tube sites for our Sponsor a Child supporters, giving them the opportunity to watch lively, unedited video updates on the beneficiaries of their donations.
Plans are afoot to move our UK office in Hitchin upstairs to make space for our partners Cantina Carnitas to open a Mexican restaurant on the ground floor. We are really excited by what we can achieve together over the year ahead, and look forward to working with the Cantina team to raise funds for our work.
The year 2020 will be busy and will no doubt come with its challenges, but I am incredibly grateful to our supporters for enabling us to continue to work in some of the world’s most disadvantaged communities; to offer healthcare, an education and a family to those who need it most.
Thank you.
Sarah Wade
LEGAL AND ADMINISTRATIVE INFORMATION
The trustees present their report, which also incorporates a company directors' report, and accounts for the year ended 28 September 2019.
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 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)” (as amended for accounting periods commencing from 1 January 2016)
Public benefit
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
MISSION STATEMENT
We believe everyone is entitled to health care, an education and a family. We strive to provide these three key rights across the globe.
OBJECTIVES
Humanitas is a creative and ambitious grass roots charity that has worked for more than a decade to protect and care for some of the world’s most vulnerable people. We exist to transform the quality of life and empower disadvantaged children and young people who do not have access to an education, healthcare or a home. By tackling these three essentials we can change lives for good.
HOW WE DO IT
We run projects in the UK, Ghana, Romania and in refugee camps around the world.
We work alongside deprived, rural communities in Ghana to ensure that children don’t miss out on an education and are given the chance to go to school.
Our medical professionals and volunteer nurses offer life saving treatment to families who have fled violence and persecution and are living in temporary refugee camps.
Our professional staff in Romania cares for orphaned and abandoned children with disabilities and place them into loving foster homes.
We are working in collaboration with local organisations in the UK to help young Roma and marginalised groups integrate into their community.
THE IMPACT OF OUR WORK IN 2018-19
Educating more children
Another year sees another increase in the intake for our primary school in the remote village of Ayensuako in rural Ghana, which has grown from 210 to 252 pupils. This is attributable to the great work of our teachers and the excellent reputation we have established in the community.
With support from a number of individuals in the UK, this year we were able to build a library on the side of the school. Thanks to our partnership with Book Aid International , the library now houses over 2,000 books and is used by our pupils and the whole community. It is our hope that we can improve the literacy rate in the village, leading to a greater breadth of work options for a community heavily reliant on subsistence farming on arid land that is under the relentless threat of drought.
‘These books have completely changed my life. As the librarian I have learnt many new skills. I also greatly enjoy teaching both the students and community members to read, so that they can really appreciate the books and learn from them. It is my pleasure every day to see the joy on the children’s faces when they pick up the books.
My own daughter is a student and being able to read with her at home after school with the books she borrows means she is constantly learning. The books are really a gift of education which will stay with the community of Ayensuako forever.’
Hayford Ahrin, Librarian.
We are in the process of planning the build and fit out of a new secondary school in Ayensuako – to support the need for our pupils to further their education. We are working alongside local people to ensure our plans meet the needs of children and the broader community. The school will house six large classrooms, a library building, a sports ground and a water-well. It will be registered with the Ghanaian government and will follow the state curriculum. We have a considerable amount of work to do in the lead up to opening the school in 2020 and are actively seeking donations to support this new development. Thanks to the generosity of Chatsworth Schools, we have already secured the funding to cover the cost of the build.
Offering hope to orphaned and abandoned children in Romania
Our work in Romania remains focused on the rehabilitation of children who have been orphaned or abandoned, many of whom have special needs. We run two residential homes for up to 12 children who are cared for by foster parents, with support from the Humanitas physiotherapist, doctor and social worker.
We are thrilled to have had the opportunity to celebrate several significant birthdays at our Safe Homes this year. Many of the children in our care were not expected to live into their teens, so to celebrate Nicoleta’s 18 th birthday was a huge occasion for everyone that has been involved in her care. Nicoleta has always wanted to visit England and we made her wish come true earlier this year when she came over for a week. She loved travelling on the train to London and seeing the sights, and she hasn’t stopped talking about it since.
Our Therapy Centre in Romania continues to be used by up to 25 children each week. When at the Therapy Centre, the children are treated by fully qualified staff using a variety of techniques including tailored physiotherapy, psychotherapy, speech, play and sensory therapies to assist with their individual development.
Working with Roma in the UK
This year we used our expertise of working with the Roma community in Romania to support projects here in the UK. We have been working in partnership with local organisations, starting in Luton, to improve outcomes for young Roma in education, health and social integration. Ofsted has consistently reported that Gypsy/Roma pupils have the poorest outcomes of any ethnic group in England in terms of attainment, attendance and exclusions and we are doing our bit to change this trajectory.
Repeated experiences of institutionalised racism in their country of origin has led to Roma being fearful of revealing their origins when they reach the UK. Although there are estimated to be 2,000 Roma living in Luton, the exact figure is unknown due to reluctance in the community to identify as Roma. Subsequently, education, healthcare and family support services in Luton have all reported a lack of engagement from members of the local Roma community, which risks increased problems around integration and cohesion for this vulnerable and hard to reach group.
To try and overcome this issue, we launched Luton’s first targeted youth provision for Roma young people in collaboration with Tokko Youth Space, a youth charity based in Luton. The project sought to promote community cohesion in one of Luton's emerging Roma communities where access to local services such as schools and community groups was not possible due to language and cultural barriers.
We provided a range of professionals, including a Romanian-speaking doctor and a qualified youth worker to facilitate sessions with groups of young Roma teenagers. A direct result of the project has been increased access to local services for Roma young people across both the third sector and local authorities. The Roma that took part in the sessions also had the opportunity to access Tokko’s wider youth services, which has resulted in Roma boys and girls joining in sport, art and dance workshops with peers from outside of the Roma community, something that would not have happened without our involvement.
To underpin this work, we also established Luton’s first Roma Interagency Forum aimed at improving access to local services for the Roma community. The Forum provides an opportunity for professionals across Luton to share best practice approaches to working with the local Roma community. The Forum meets once a month and is attended by representatives from local non-government organisations and the local authority.
Raising funds and our profile
This year we received support from a number of existing and new trusts and foundations, corporates and individual major donors including the Souter Charitable Trust, Chatsworth Schools and the Brian Murtagh Charitable Trust.
Our schools partnership programme continues to go from strength to strength, with more UK schools choosing to take part in the opportunity to develop meaningful cultural exchanges with our school in Ghana. The live video project featuring dances and songs by pupils in the UK and Ghana are a joy to watch and help children to understand and appreciate what it is like to live and learn in (and from) another country. Our programme aims to breakdown commonly-held preconceptions of what it is like to live in a rural African community, to focus on commonality and humanity and move away from the rich/poor and us/them relationship. We embrace what it is to be a child and allow them to share experiences with children they would not usually interact with.
Over the past year we have taken two groups of volunteers from the UK to our school in Ghana. The groups have helped us to paint and set-up our new library, supported our teachers to help develop the school curriculum, run dancing and acting workshops for our pupils and made friends for life. As well as the sponsorship raised by our volunteers, their personal video updates, blogs and fundraising efforts have helped us to share our work more widely on social media and, ultimately, secure more support.
Our focus for the year ahead
The main focus for the year ahead will be on building and fitting out our new secondary school in Ayensuako so that we can open our doors in 2020.
Building on the success of this year’s volunteer trips, we will be offering more dates over the coming year and will utilise the videos, blogs created by volunteers to build our supporter base.
We plan to expand our schools partnership programme, offering more schools in the UK the opportunity to embark on a cultural exchange with our schools in Ghana and, at the same time, raise funds.
Our work has a strong appeal to individual and Trust funders who are committed to seeing the direct impact of their giving and the positive changes they can make to individual lives. As an ambitious, grassroots charity we have an unshakable sense of responsibility for the funds that we secure and an obligation to ensure that any donations made to the charity are used to benefit as many beneficiaries as possible.
During the year ended 28 September 2019 we received a total of £399,778 in grants and donations (including associated gift aid).
Overall, t here was a surplus on the General F und for the year after transfers of £29,640 (2018: deficit of £46,905) leaving a balance carried forward at 28 September 2019 of £30,143 . Fund balances of £193,617 are carried forward at 28 September 2019 on r estricted funds which reflects a substantial grant accrued of £200,000 received on 1 October 2019.
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 three months expenditure, although this has not been possible in the year under review.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The charity is a company limited by guarantee and is registered with the Charity Commission (Charity number 1114639) . On 11 October 2012, the charity changed its name to Humanitas Charity from Foundation for Relief of Disabled Orphans.
The charity is managed by a Board of eight Trustees with a breadth of skills and experience. The trustees, who are also the directors for the purpose of company law, and who served during the year were:
All of whom are eligible for re-election and will be proposed for re-election at the next Annual General Meeting.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of a winding up.
The Trustees agree that the CEO is given the authority to represent the Charity on its behalf on all matters of day to day management.
Our operational and fundraising activities are managed from the Hitchin office; this is also the base from which we raise awareness of our cause. Our programmes are directly managed on the ground by our senior management team under the leadership of our Chief Executive who is accountable to the Board of Trustees.
We employ professional staff in Ghana and Romania to help deliver our projects on the ground. We also recruit professional volunteers from the UK to provide support in all of our project areas to keep our operational costs to a minimum.
The trustees would like to thank the staff of Humanitas for their commitment, dedication and hard work, which has enabled us to operate effectively, efficiently and with care and respect for all our beneficiaries and partners.
More information about the charity can be found at www.humanitascharity.org
The Trustees' r eport was approved by the Board of Trustees.
The trustees, who are also the directors of Humanitas Charity for the purpose of company law, are responsible for preparing the Trustees' Report 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.
I report to the trustees on my examination of the financial statements of Humanitas Charity (the charity) for the year ended 28 September 2019.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable d irections given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Association of Chartered Certified Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Caladine Ltd
Chartered Certified Accountants
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Humanitas Charity is a private company limited by guarantee incorporated in England and Wales. The registered office is 31 Bucklersbury, Hitchin, Hertfordshire, SG5 1BG.
The accounts have been prepared in accordance with the charity's Memorandum 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)” (as amended for accounting periods commencing from 1 January 2016). 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 applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
The Charity operates a general fund which encompasses the core work.
The charity sets aside monies given generally for its partner charity Romanian Relief, which it has decided to use for children being looked after by Romanian Relief in their Safe Homes Project and therapy centres. Monies are also given to fund an operational educational project in Ghana.
Restricted funds are used for the specific purposes as laid down by the donor . Expenditure which meets this criteria is charged to the fund together with a fair allocation of management and support costs.
The following restricted funds are in operation:
Safe Homes
Providing safe homes for orphaned and abandoned children with disabilities and special needs, which the charity gives grants for.
Ghana
This is a project called Education Matters, relating to a school and a library for children in a remote village in Ghana.
Humanitas Community Garden
This project will include the creation of a vibrant community meeting space in the heart of Hitchin, Hertfordshire. A publicly accessible community garden where people from across Hitchin and surrounding area can come together for leisure, recreation, volunteering, networking and creative activities.
Refugee Project
This is a Crisis Fund to enable us to respond efficiently to existing refugee crisis and future humanitarian emergencies. Our ambition is to deliver quality front line medical assistance to refugees through our mobile clinic.
Resources expended are recognised in the period in which they are incurred and allocated to the particular cost centre to which they relate. Resources include irrecoverable VAT.
Charitable activities expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries.
Governance represents the strategic and legal costs of the Charity.
Property and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bas i s:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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 trade and other receivables 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 trade and other payables 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 p aymen ts 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 payables 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 payables 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.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Grants
Rental income
Printing, Newsletters, Marketing, Social Media and Website
Consultancy
Rent
Consultancy
Medical Equipment and Medicines
Mission Costs
Computer Supplies and Services
Miscellaneous
Telephone
Office Supplies
Community Garden
Training
Travel
Insurance
Office Supplies
Printing, Postage and Stationery
Rent - Admin
Computer Supplies and Services
Telephone
Independent examination fees
Trustee Sarah Wade received remuneration of £45,000 (2018:£7,500) during the year . Trustee Sarah Wade w as reimbursed a total of £0 (2018: £ 973) for travelling and other out of pocket expenses .
Donations from trustees and related parties during the year amounted to £18,067 (2018:£5,777).
The average monthly number of employees during the year was:
The income funds of the charity include restricted funds - see note 1.3 for a full explanation of each fund. T he following are details of unexpended balances of donations and grants held on trust for specific purposes:
Safe Homes
A grant of £200,000 was received on 1st October 2019 which has been accrued in these accounts and added to the fund.
Refugee Project
This is a Crisis Fund to enable us to respond efficiently to existing refugee crisis and future humanitarian emergencies. Our ambition is to deliver quality front line medical assistance to refugees through our mobile clinic.
Included in debtors at the year end date is £7,978 (2018:£8,695) owed to the charity by its subsidiary, Humanitas Boutique Ltd. This loan is interest free and no security has been provided.
During the year the charity paid rent of £2,085 (2018:£2,400) to its subsidiary, Humanitas Boutique Ltd, for the use of office space.
Details of the charity's subsidiaries at 28 September 2019 are as follows: