Edinburgh Direct Aid. Report and Financial Statements. For the Year Ended. 30 th June 2015
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1 Report and Financial Statements For the Year Ended 30 th June 2015 Scottish Charity Reference SC
2 Report and Financial Statements For the Year ended 30 th June 2015 Contents Page Reference & Administrative Information 2 Report of the Trustees 3-6 Report of the Independent Examiner 7 Statement of Financial Activities 8 (including Income & Expenditure Account) Balance Sheet 9 Notes to the Accounts
3 Reference & Administrative Information Principal Address: 29 Starbank Road Edinburgh EH5 3BY Scottish Charity Number: SC Registered Trustees: The following were trustees throughout the year: Denis Rutovitz Alan Witcutt Andrew R. C. McLellan John A. D. Innes Management Committee: The following were members during the year: Denis Rutovitz (Chair) David Reeks (Convoys) Jeanne Bell (Deputy Chair) James Harkins (Convoys) Lisa Anderson (Hon. Secretary) Colin Cooper (Medical advisor) Jean Horsburgh (Treasurer) Ian McHaffie (Christine Witcutt Fund) George McNeill (Contracts) Maggie Tookey (International Aid) Independent Examiner: John G. Norman, C.A. Accountants: John G. Norman Ltd The Courtyard 38 Coatfield Lane Edinburgh EH6 6BE Bankers: Bank of Scotland The Co-operative Bank 43 Comely Bank PO Box 101 Edinburgh 1 Balloon Street EH4 1AF Manchester M60 4EP - 2 -
4 Report of the Trustees For the Year ended 30 th June 2015 The trustees are pleased to present their report and the financial statements for the year ended 30th June Governance & Organisational Structure Edinburgh Direct Aid is constituted as a Trust registered in Scotland. The Trustees are ultimately responsible for its actions, but day-to-day running is delegated to a Management Committee which is elected at an annual meeting of all those who are signed up members of the organisation. EDA reports to, and is in compliance with, the requirements of the Office of the Scottish Charity Regulator (OSCR). EDA is an all-volunteer organisation: Trustees, officials, committee members and other helpers are all unpaid volunteers, excepting 1. Locally employed helpers in beneficiary countries; 2. Staff appointed to carry out externally funded contracts. EDA does not use expensive advertising campaigns or percentage fund-raising. Management structure and organisation The Officers of the association execute the decisions of the Management Committee - these officials are elected at the Annual General meeting. In addition, individual managers may be appointed for particular projects. Objectives & Review of Activities Mission Our mission was initially defined as provision of assistance to people suffering as a result of war and ethnic cleansing in the Balkans. This was later extended to include assistance to those in need as a result of war or natural disaster in any theatre in which we could mount an effective operation. Our aims are to deliver material aid directly to those in need; to bring to them also the comfort of the friendship of our volunteers; to raise the awareness of our members, donors and supporters at home through communication of the experiences of our volunteers working abroad. Chairman s report Work was carried out mainly in support of Syrian refugees in the Lebanon. Projects were also continued in Pakistan, Gaza, Kenya and Bosnia. Help for Syrian refugees. Arsal is a village in the hills above Lebanon s Bekaa valley, its hinterland extending to the Syrian border. Its population comprised some 35,000 mostly poor Lebanese inhabitants until in the last three years some 100,000 Syrian refugees crossed over the indistinct border. Some have managed to make their way further into Lebanon, but around 75,000 are still crowded into tents and makeshift dwellings. At 1500 metres altitude Arsal is always cold in winter: the 2014/15 winter was one of the coldest
5 Report of the Trustees (continued) Objectives & Review of Activities (continued) Help for Syrian refugees (continued) In May 2014 EDA appealed for donations of food for the Arsal refugees, or money to buy it. The response was such that in addition to the direct donations of items requested we were able to buy 5 tons of rice and 5 tons of flour which were repackaged into 5 litre plastic containers for individual distribution. The food and a 4-wheel drive ambulance and medical supplies, acquired in partnership with Bootle Refugee Aid Cumbria UK, were loaded into a 40 high-cube shipping container and sent on its way on May 23 rd. It arrived in Lebanon a month later, as scheduled. Colin Cooper and Denis Rutovitz went out with the intention of seeing to its reception and distribution, but Customs insisted on a full analysis of the food, and although other things were accomplished on the visit, the container languished. Lebanese Customs released the container at the beginning of August, just at the time when ISIS made an incursion into Arsal. Some Lebanese army soldiers were killed and some were taken prisoner and later executed. A shootout ensued. Many tents caught fire, and there were many resulting injuries and deaths. Meanwhile Maggie Tookey had replaced Denis and Colin and notwithstanding the obvious dangers and security restrictions she ensured that the entire container load was delivered. The ambulance and medical supplies, including a large quantity of surgical scrubs and drapes donated by Lojima International, were received with delight by the Syrian refugee hospital. EDA was the only relief agency to enter Arsal at this time and witness the destruction on the camps inflicted by days of shelling by the Lebanese army and reportedly, Hezbolah. Working with the Homs Commission, an able and efficient refugee group, the sorely-needed 12 tons of food from the container was soon delivered. EDA also provided emergency bread and water truck deliveries to refugees from these burnt out camps, including some in the unstable buffer zone closer to the Syria. On this same visit in August, arrangements were made for the provision of all core curriculum text books necessary for an entire Syrian primary school of 230 pupils in Baalbek. In November more Lebanese soldiers were killed, captured and again there were more executions. The local Lebanese were extremely angry, as well they might be, making access to the refugees difficult and sometimes dangerous. Nevertheless, with the help of Dar Al Fatwa Relief, EDA volunteers Denis Rutovitz and Maggie Tookey were able to buy 500 warm winter jackets and winter boots in Lebanon at very good rates and, having obtained a go-ahead from the army at an opportune moment between security closures, they were able to deliver these in person and oversee the start of their distribution. In Edinburgh at the same time we asked for donations of warm clothes and winter boots. There was again a huge response and many also volunteered to help pack and sort. On 23rd December there was a great turn-out to stuff a 40ft shipping container absolutely full of over 1,000 boxes of winter things and much else. This was then sent on its way to Grangemouth and arrived in Beirut on January 25th 2015; and then, as so often happens, it took a further three weeks to clear the container through Customs. Meanwhile, in order to provide immediate help in the worst of the winter, we arranged for the distribution of 20 litres of fuel oil to each of 150 families. For some this meant the difference between hypothermia and survival; for all it provided an at least temporary respite from the cold. Maggie arrived in Arsal again on Feb 17th 2015 to assess the position. She returned two days later with 3 truck-loads of aid from the container, overcoming obstruction by weather and checkpoints alike, with her usual steely determination and apparent composure. She spent the following 10 days in Arsal in freezing temperatures and ever-present danger, overseeing the distribution of the aid. In response to local requests, she added to the aid sent from Edinburgh local purchases of items ranging from fuel oil for two hospitals to underwear for hundreds of women
6 Report of the Trustees (continued) Objectives & Review of Activities (continued) Pakistan. In July 2014, EDA completed the new Health Unit building at Machiara, high above the Neelum Valley in Pakistan controlled Kashmir. This was an initiative of Yousaf Kureshi, EDA s representative in AJK (independent Jammu and Kashmir ie Pakistan controlled Kashmir). Maggie Tookey joined Yousaf for the major part of the work, and was amazingly successfully in drumming up support from the AJK government, and PK business. In 2014 floods hit the Bagh/Haveli area of Pakistan controlled Kashmir. Yousaf Qureshi travelled with great difficulty to the affected area to make an assessment. Following Yousaf s recommendations we supplied money for food, clothing and cooking equipment for all those who had lost homes and possessions. We also funded three medical camps for people in need of urgent medical help in the worst-affected areas. To reach them, Yousaf and the medical teams had to walk along damaged and dangerous mountain tracks for many kilometres but the camp-sessions were all conducted successfully. In addition, with the residue of EDA funding, a badly damaged primary school was repaired by the local community so that children could return to their lessons. Arise and Shine Orphanage and Community Centre, Kisumu, Kenya. EDA has continued to fund the AIDS affected widows feeding programme which takes place twice a week at the Centre and also the on-site tailoring training programme for the younger AIDS affected widows and men. Gaza. Colin Cooper continued his work of building bridges between the Edinburgh Dept of Palliative Care and medical and academic institutions in Gaza. Special needs in Bosnia. This work is primarily the responsibility of our sister charity, the Christine Witcutt Memorial Fund (CWMF), and is discussed in the report of its chairman, Ian McHaffie in the trustees report accompanying the CWMF accounts. But EDA retains its commitment to work in Bosnia and assists directly in administration, warehousing and delivery. (report continued on next page) - 5 -
7 Report of the Trustees (continued) Financial Review Total income for the year was 46,297, virtually all from donations and fundraising (including gift aid). Of this 29,511 was raised for specific areas of operation and 16,785 was unrestricted (see note 2). Expenditure amounted to 57,093, as detailed in note 3 to the accounts, resulting in a reduction of 10,796 in funds held. Of this expenditure, 53,817 (94%) was spent directly on aid projects overseas and a grant of 5,000 to the Christine Witcutt Fund with the balance spent on support costs for this work and awareness raising to attract funding. A balance of 21,924 is carried forward to 2015/16, including 21,874 in unrestricted funds. Generally all funds are expended on projects at the earliest opportunity and overheads are minimal. Hence a longer-term reserves policy is not relevant though a small balance is retained to cover immediate needs. At present there is also the residue of the legacy received in 2013, but this is likely to be spent soon. Signed on behalf of the Trustees, D. Rutovitz Trustee Date: 21/1/
8 Report of the Independent Examiner To the Trustees of Edinburgh Direct Aid I report on the financial statements of Edinburgh Direct Aid for the year ended 30 June 2015 set out on pages 8 to 13. Respective responsibilities of the Trustees and Examiner The trustees of the charity are responsible for the preparation of the accounts in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations The charity trustees consider that the audit requirement of Regulation l0(1) (a) to (c) of the Accounts Regulations does not apply. It is my responsibility to examine the accounts as required under section 44(1) (c) of the Act and to state whether particular matters have come to my attention. Basis of independent examiner's statement My examination is carried out in accordance with Regulation 11 of the Charities Accounts (Scotland) Regulations An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeks explanations from the 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 In the course of my examination, no matter has come to my attention 1. which gives me reasonable cause to believe that in any material respect the requirements: to keep accounting records in accordance with Section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations, and to prepare accounts which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations have not been met, or 2. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. John G Norman CA Date: 21 Jan 2016 John G Norman Ltd Chartered Accountants The Courtyard 38 Coatfield Lane, Leith Edinburgh EH6 6BE - 7 -
9 Statement of Financial Activities For the year ended 30 June 2015 Unrestricted Restricted Total Total Incoming Resources: Note Funds Funds Incoming resources from generated funds: Voluntary income: Donations and fund-raising 2 16,785 29,511 46,296 49,602 Investment income: Bank interest Total Incoming Resources 16,786 29,511 46,297 49,602 Resources Expended Charitable activities: Aid supplies & delivery costs 3 2,016 46,801 48,817 67,632 Grant to Christine Witcutt Fund 5,000-5,000 - Cost of generating funds: Fundraising & publicity ,412 Governance & administrative costs 3 2, ,029 2,509 Other resources expended: Net loss on exchange rates Total Resources Expended 3 9,610 47,483 57,093 72,451 Net Incoming / (Outgoing) Resources 7,176 (17,972) (10,796) (22,849) Transfers between funds (18,022) 18, Net movement in funds (10,846) 50 (10,796) (22,849) Balances brought forward 32,720-32,720 55,569 Balances carried forward 21, ,924 32,720 The notes on pages 10 to 13 form part of these financial statements
10 Balance Sheet at 30 June 2015 Note Tangible Fixed Assets 4 3, Current Assets Debtors Cash at bank and in hand 22,137 32,484 22,234 33,097 Current Liabilities Creditors: Amounts due within one year 6 3, Net Current Assets 18,850 32,571 Net Assets 21,924 32,720 Funds Unrestricted funds 7 21,874 32,720 Restricted funds Total funds 21,924 32,720 The financial statements on pages 8 to 13 were approved by the Trustees on 21/1/2016 and are signed on their behalf by: D. Rutovitz Date: 21/1/2016 Trustee The notes on pages 10 to 13 form part of these financial statements
11 Notes to Accounts For the year ended 30 June Accounting Policies Basis of Accounting The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), the Charities and Trustee Investment (Scotland) Act 2005 and the Statement of Recommended Practice, Accounting and Reporting by Charities, issued in March Incoming Resources Income from donations and grants is recognised when received provided there are no unfulfilled preconditions for use of the funds. Any income given for a particular purpose or resulting from a specific appeal is included in an appropriate restricted fund to be applied for that purpose. Income arising from gift aid is recognised when a claim has been made. No valuation is placed on gifts in kind collected for direct distribution as aid. Any donated goods sold for cash are included as fund raising income at the time of sale. Resources Expended Resources expended are accounted for on the accruals basis. Governance costs are those associated with the general running of the charity, rather than the charitable activity, and include such items as examination of the annual accounts. Foreign Currencies Assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the date of the transaction or an average rate which approximates to the actual. Tangible Fixed Assets and Depreciation Tangible fixed assets are stated at cost less depreciation. Deprecation is charged by the straight line method over the estimated useful life of each asset at the following rate per annum: Plant & equipment Motor vehicles 25% 25% (monthly in year of purchase) Taxation Edinburgh Direct Aid is a Scottish Charity (SC ) and is exempt from corporation tax on its charitable activities. It is registered for VAT. Funds Unrestricted funds can be used in accordance with any of the charitable objects 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
12 Notes to Accounts (continued) Donations & fund-raising: Aid to Syrian refugees 23,034 36,320 Projects in Pakistan 1,063 2,865 AIDS orphans Kenya 1,605 1,712 Fundraising - Knitathon (for Syrian project) 3,759 - Aid to Palestine / Gaza 50 - Subtotal - restricted donations 29,511 40,897 Unrestricted donations & fund-raising 16,785 8,705 46,296 49, Details of Resources Expended Aid supplies & delivery costs: Aid to Syrian refugees 36,940 40,284 AIDS orphans, Kenya 3,378 3,983 Aid to Pakistan 6,483 14,933 Aid to Palestine - 8,132 Total restricted 46,801 67,332 Other aid delivery costs 2, Total aid supplies & delivery costs 48,817 67,632 Grant to Christine Witcutt Fund 5,000 - Cost of generating funds: Fundraising & publicity 144 1,412 Governance / Administrative costs: Office & administrative costs 2,954 2,434 Depreciation ,029 2,509 Other resources expended: Net loss on exchange rates Total resources expended 57,093 72,451 No remuneration was paid to any Trustee or member of the Management Committee during the year. A net amount of 3,972 was reimbursed to 2 members of the management committee for travel and subsistence costs incurred in the course of aid delivery, monitoring and assessment
13 Notes to Accounts (continued) 4. Tangible Fixed Assets Motor Plant & vehicles equipment Total Cost or Valuation At 1 July ,005 3,005 Additions 3,000-3,000 At 30 June ,000 3,005 6,005 Depreciation At 1 July ,856 2,856 Charge for year At 30 June ,931 2,931 Net Book Value At 30 June , ,074 At 30 June Debtors Amount due from Christine Witcutt Memorial Fund (see note) Other debtors The Christine Witcutt Memorial Fund (CWMF) is a Scottish charity (ref SC ), which has 2 trustees in common with Edinburgh Direct Aid (EDA). During the year EDA collected donations and fund-raising income of 4,888 and paid expenditure of 14,296 on behalf of CWMF, and funds of 9,493 were transferred from CWMF to EDA, resulting in a balance of 97 due from CWMF at the year-end. 6. Creditors Amounts due within one year: Trustee's loan (see note below) 1,911 - Accruals 1, , The trustee's loan from D. Rutovitz was unsecured and interest free
14 Notes to Accounts (continued) 7. Movement on Funds Restricted funds: At Movement in Resources Transfers At 1/7/14 Incoming Outgoing note (b) 30/6/15 Aid to Syrian refugees - 26,793 (37,489) 10,696 - Aid to Palestine Projects in Pakistan - 1,063 (6,570) 5,507 - AIDS orphans Kenya - 1,605 (3,424) 1,819 - Total restricted - 29,511 (47,483) 18, Unrestricted funds: Fixed assets - note (a) (75) 3,000 3,074 General fund 32,571 16,786 (9,535) (21,022) 18,800 32,720 16,786 (9,610) (18,022) 21,874 Total funds 32,720 46,297 (57,093) - 21,924 Notes: (a) The fixed asset fund represents the net book value of fixed assets. Depreciation is charged to the fund each year and the cost of assets purchased is transferred in. The transfer of 3,000 represents assets purchased during the year out of general funds. (b) Other transfers represent amounts allocated from unrestricted funds to cover project expenditure. A total of 18,022 was allocated in the year. 8. Analysis of net assets between funds Restricted Unrestricted Total Funds Funds Funds Fixed assets - 3,074 3,074 Debtors Cash at bank & in hand 50 22,087 22,137 Creditors - (3,384) (3,384) Total net assets 50 21,874 21,
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