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Canon Collins Document
Canon Collins Document
Canon Collins Document
CHARITY COMMISSKM
Canon
Collins
Educational
Trust for
Southern
Africa
Ni n 1
R t.
3 0 SEP 2005
:~iVIV
i
CO JVIt'Lil-~IVVI- ~~V ~
Accounts
Balance sheet 17
Auditors Buzzacott
12 New Fetter Lane
London
EC4A lAG
The members of the Board of Trustees present their first statutory report with the accounts
of the Canon Collins Educational Trust for Southern Africa (CCETSA) for the period 17
November 2003 to 31 December 2004 .
The accounts have been prepared in accordance with the accounting policies set out on
pages 18 and 19 of the attached accounts and comply with the charitable company's
memorandum and articles of association, applicable laws and requirements of the Statement
of Recommended Practice on "Accounting and Reporting by Charities" issued in October
2000 .
On 29 February 2004, the activities, assets and liabilities of the unincorporated The Canon
Collins Educational Trust for Southern Africa were transferred by means of a resolution of
the Board of Trustees.
Members' liability
In event of the charitable company being wound up each member undertakes to contribute
an amount not exceeding C10.
Organisation
The charitable company is administered by a Board of Trustees, members of which
constitute directors for the purpose of company legislation and trustees for the purposes of
charity legislation . New trustees can only be appointed by the Board of Trustees at a general
meeting. The desired profile of members is reviewed periodically by the trustees and
appropriate appointments made to ensure a balanced board. No external bodies have the
power to appoint trustees . The Board of Trustees, which meets approximately quarterly, is
ultimately responsible for the charitable company. Day to day activities are delegated to the
chief executive but approval of annual budgets and objectives, strategic decisions, employee
terms and conditions and all decisions relating to governance are retained by the trustees .
The Board of Trustees has established three sub committees namely a management sub
committee, a project grant sub committee and a finance sub committee . These committees
are responsible for providing advice and guidance to the staff team and making
recommendations to the Board of Trustees . Each sub committee has at least two trustees as
members and no one trustee can sit on more than two sub committees . Reports from the
sub committees are tabled at each trustees meeting.
Risk management
The trustees are responsible for assessing the major risks to which the charitable company is
exposed and have compiled a risk register that is reviewed and updated at least annually. The
risk register identifies the types of risk and identifies the actions to be taken to mitigate those
risks . The trustees believe that by monitoring reserve levels, reviewing the risk register, and
ensuring controls over key financial systems they have established effective systems to
mitigate those risks .
" prepare the accounts on the going concern basis unless it is inappropriate to presume
that the charitable company will continue in operation
The members of the Board of Trustees are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time the financial position of the
charitable company and which enable them to ensure that the accounts comply with the
Companies Act 1985 . They are also responsible for safeguarding the assets of the charitable
company and hence taking reasonable steps for the prevention and detection of fraud and
other irregularities
The Chief Executive administers CCETSA and is responsible to the Board of Trustees .
There are nine members of staff, six in the UK and three in South Africa (two part-time) as
well as volunteers and outside experts who are called upon when required . The UK office
coordinates the activities of CCETSA including fundraising, management and administration
of the grant funding programme, and the management of the scholarship programme for
students studying in the UK . The South Africa office manages the scholarship programme
for students studying in Southern Africa, providing regular financial and progress reports to
the London office .
Trustees
The members of the Board of Trustees constitute directors of the charitable company for the
purposes of the Companies Act 1985 and trustees for the purposes of charity legislation
Trustees (continued)
The following members were in office at the 31 December 2004 and served throughout the
period, except where shown :
Ben M Birnberg
Jonathan Bloch (Chair)
Peter Bottomley MP Resigned August 2004
Professor Colin Bundy Appointed December 2003
Rt Hon Richard Caborn MP
Patricia Choiral (Honorary Treasurer)
Sir Andrew Collins Appointed December 2003
Roger Diski
William Frankel OBE
Professor Sir Bob Hepple
Lord Robert Hughes
Lord Joel Joffe CBE
Glenys Kinnock MEP Appointed December 2003
Professor Shula Marks OBE Appointed February 2004
Shirley Mashiane-Talbot
Kees Maxey
Dr Elaine Potter
John Prevett
Paddy Ross
Professor David Simon
Gillian Slovo Resigned January 2004
One trustee received a total of f309 in expenses . Paddy Ross received £4,068 as
remuneration for acting as interim director from July 2004 to end October 2004 .
Management Committee
Related parties
John H Prevett OBE and Roger Diski who are trustees of the charitable company are also
Council Members of Defence and Aid Limited
*
Senior management
The founding director of CCETSA, Ethel De Keyser died in July 2004 after 24 years of
dedicated and committed service to the organisation . Following a period of interim
management by Paddy Ross, she was replaced in November by Sarah Nancollas. Louise
Asmal continues as regional director in South Africa with consultancy assistance provided by
Professor Norman Levy .
Postgraduate scholarships
Many international organisations have identified that the key constraining factor on
development in Southern Africa is the lack of human capacity and in particular the lack of
highly skilled middle and senior managers capable of implementing activities required to
meet the Millennium Development Goals. One key area of work for CCETSA is to provide
access to further education opportunities for individuals to assist in the development of an
appropriately skilled cadre of trained professionals capable of providing future leadership .
Scholarships are offered for study in South Africa and the UK (and occasionally in other
Southern African countries dependent on subject) . Given the cost differentials between UK
and South Africa, the majority of scholarships offered are in South Africa . Scholarships to
study in the UK focus on subjects not available in Southern Africa or where a UK institution
has a particular international reputation .
Many CCETSA scholarships are offered in partnership with other organisations namely the
Foreign and Commonwealth Office Chevening scheme, Leeds University, the Unilever and
Deloittes Nelson Mandela scholarships, Atlantic Philanthropy funded Mamphela Ramphele
scheme, Alan and Babette Sainsbury Trust, and Leigh Day & Co . In addition CCETSA
administers a number of memorial scholarships including the Ros Moger, Terry Furlong,
Rick Turner, Freda Katz, Rouse, James Learmonth and Ethel de Keyser awards offering
scholarships in specific areas of study.
In 2004 - 2005, 93 students are being funded in the UK (43% from Zimbabwe, 32%, South
African, remainder from 7 southern African countries) including 25 that have been
previously funded . They are studying a wide range of subjects, 20% at PhD level, 3% Post
graduate diploma and the remainder at Masters level .
A total of 256 students were funded to study in South Africa in 2004 . Of these 5 failed and 4
dropped out . 144 are continuing (with CCETSA funding) with their studies. In South
Africa most funding is for postgraduate courses although there are some specific
undergraduate schemes. It can take two to three years to complete a Masters course in South
Africa . CCETSA results are close to the South African `benchmark for graduation rates'
despite the fact that we fund previously disadvantaged students . Three students funded in
South Africa last year have now joined the academic staff of their institutions .
All CCETSA scholarships are given on the understanding that scholars return to their home
countries upon completion of their studies .
Education projects
CCETSA worked with some 19 educational projects in southern Africa during the year .
These projects focused on community and schools education projects in key areas such as
health education, HIV/ AIDS, the teaching of mathematics and science, improving educator
skills, and providing access to education for the most disadvantaged. The charitable company
continues to support the work of the Phelophepa health train through funding health
education activities and an innovative community based HIV/ AIDS programme . Through
its project grant programme the charitable company seeks to fund local organisations that do
not otherwise have access to international funding or are involved in innovative activities
that may be capable of expansion in the future . Examples of activities funded include work
to provide 15,000 secondary students in Limpopo with access to computer based science and
maths resources, and 10,000 school students participated in school health clubs . Additionally
we supported training for nearly 1,000 community health volunteers, schooling for 140
orphans in Zimbabwe and the foundation of a number of community based libraries.
Teaching skills were improved through a number of partnerships including those with SAILI
and PROTEC . The Comic Relief funded project to provide educational opportunities for
youth awaiting trial in KwaZulu Natal drew to a close.
Project applications are reviewed by the project sub committee comprising trustees, staff, and
volunteers, against their ability to further the charitable object of the charitable company .
External advice is sought from knowledgeable individuals where appropriate . During the
year the application process has been rationalised to include an agreed application format,
reporting requirements and identification of project outcomes. Monitoring and evaluation
procedures have been tightened .
Volunteers
The charitable company is grateful to the volunteers that assist the organisation to achieve its
charitable object . During 2004 an average of 6 volunteers worked at least one half day per
week with a number of others assisting with specific fundraising activities or by providing
specialist advice . The charitable company is aware that the commitment of these volunteers
allows a greater percentage of money raised to be spent on direct charitable expenditure .
Fundraising
Although this report spans 17 November 2003 to 31 December 2004, the actual period of
activity is from 1 March 2004 to 31 December 2004 following the transfer of assets from
The Canon Collins Educational Trust for Southern Africa . The period of active fundraising
is therefore 10 months as opposed to 14 months in the last set of accounts for the previous
organisation . Given the dependence of the organisation on regular donations and appeals,
income is reduced when compared against the final 14 months of activity of the previous
organisation
Fundraising (continued)
Two major fundraising events were held during the year, a gala performance of Sir Anthony
Sher's (a sponsor o£ the charity) Primo and a dinner at the Dorchester . Together the events
raised C107,000 for the Phelophepa health train .
Three mailings were sent out during the year, two to support the general work of the
charitable company and one to establish the Ethel De Keyser scholarship fund, to
commemorate the life and work of the £ounding director of CCETSA who died in July
2004.
Trust and foundation income comes from a wide variety of sources . The major contributors
in this area include the David and Elaine Potter charitable foundation, Alan and Babette
Sainsbury Charitable Trust, Comic Relief, and the Sol Plaatje Education project . Income
from these sources is restricted to support specific project and scholarship activities .
Just under 50% of CCETSA income comes from partnerships . Many of these have been
running for a number of years and form a foundation for the continued impact of the
organisation . In particular the charitable company receives support from Unilever and
Deloittes in South Africa to administer their Nelson Mandela scholarships and from the
Foreign and Commonwealth Chevening scheme to support a range of scholarship
programmes .
Legacy income is becoming increasingly siganificant for the continuing work of the charitable
company. As income in this category is difficult to budget, receipt of legacies allows for the
organisation to implement innovative work that otherwise might not have been funded .
Reserves policy
As illustrated above the charitable company carries out a diverse range of activities . Some are
short term externally funded projects in Southern Africa whilst others, projects and funding
for students' post graduate education require a significant ongoing financial commitment and
investment . Trustees have examined the requirement for reserves i .e . unrestricted funds not
invested in tangible fixed assets or designated for specific purposes . Trustees are aiming at
free reserves to cover operational activity from unrestricted income for at least three months .
This represents a free reserve of approximately C200,000 . The reserve provides sufficient
flexibility to cover temporary shortfalls in incoming funds due to timing differences in
income flows, and will allow the charitable company time to cope and respond to
unforeseen emergencies whilst specific action plans are implemented . The nature of the
scholarship part of the work of the charitable company results in uneven income flows and
expenditures throughout the year .
Unrestricted funds of the charity 31 December 2004 total _f 147,020 . The trustees recognise
that this amount is below the preferred amount to maintain free reserves and have taken the
need to increase unrestricted reserves into account for the 2005 financial year .
Expenditure 2004
O Direct charitable
® Fundraising
® Support
O Management
and admin
There were two key contributory factors to the deficit in this financial reporting period . The
first of these is directly attributable to the changes in financial reporting period covered in
this report . Although this report covers a calendar period of 14 months, it represents an
activity period of 10 months given the timing of transfer of assets to the new charitable
company. Therefore two months of standing order income was lost and only three appeals
(instead of the normal four) were mailed .
The second key component was the death of the director Ethel De Keyser in July after a
period of illness . The charitable company took effective steps to manage the interim period
before the appointment of a replacement but this inevitably concentrated on maintenance of
activities rather than the generation of new income .
Investment policy
The charitable company has a portfolio of listed investments with a market value as at
31 December 2004 of C84,479 .
The Board of Trustees reviews the performance of the portfolio and the charitable
company's investment strategy on a regular basis.
The Board of Trustees intends to review the investment policy in 2005 to take into account
the changing investment environment .
Future Plans
CCETSA intends to review and revise the organisational strategic plan during 2005 to
ensure that charitable activity optimises the impact of expenditure . This strategic plan will be
used as the basis for subsequent budgeting and work planning. The development of the
strategy will include consultation with key stakeholders in Southern Africa and the UK
including partner organisations, government representatives, policy makers, current and
potential beneficiaries, and funding agencies .
The opportunity will be taken to conduct a review of the impact of existing work and to use
this information to inform future plans . Evaluations will be carried out on a range of funded
projects and the impact of the scholarship programme will be reviewed . There is an
intention to form further strategic partnerships both within Southern Africa and in the UK .
Zimbabwe is likely to have an increased organisational focus .
2006 will be the 25`h anniversary of the start of the work of CCETSA (initially within the
auspices of the British Defence and Aid Fund) . The trustees intend to use this anniversary to
celebrate achievement to date but more importantly to increase the profile of CCETSA and
build a foundation to increase levels of funding for the future .
Activities to build employee and volunteer skills will continue and administrative systems
will be strengthened . A system of staff appraisals and salary scales will be formalised .
CCETSA trustees are committed to continue the work of the charitable company to
facilitate transformation through education . They wish to build on the firm foundations that
exist to ensure that Southern Africa can develop the human resource capability required to
support development and growth .
Employment policy
Canon Collins Educational Trust for Southern Africa is an equal opportunities employer .
Auditors
The auditors, Buzzacott, will be proposed for re-appointment .
Report of the independent auditors to the Trustees of Canon Collins Educational Trust
for Southern Africa
We have audited the accounts on pages 15 to 29 which have been prepared in accordance
with the accounting policies set out on pages 18 and 19 .
This report is made solely to the charitable company's members, as a body, in accordance
with Section 235 of the Companies Act 1985 . Our audit work has been undertaken so that
we might state to the charitable company's members those matters we are required to state to
them in an auditor's report and for no other purpose . To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone other than the charitable company and
the charitable company's members as a body, for our audit work, for this report, or for the
opinions we have formed .
Our responsibility is to audit the accounts in accordance with relevant legal and regulatory
requirements and United Kingdom Auditing Standards.
We report to you our opinion as to whether the accounts give a true and fair view and are
properly prepared in accordance with the Companies Act 1985 . We also report to you if, in
our opinion, the report of the Board of Trustees is not consistent with the accounts, if the
charity has not kept proper accounting records or if we have not received all the information
and explanations we require for our audit.
We read all information in the report of the Board of Trustees and consider whether it is
consistent with the audited accounts . We consider the implications for our report if we
become aware of any apparent misstatements or material inconsistencies with the accounts .
Our responsibilities do not extend to any other information .
Basis of opinion
We conducted our audit in accordance with United Kingdom Auditing Standards issued by
the Auditing Practices Board . An audit includes examination, on a test basis, of evidence
relevant to the amounts and disclosures in the accounts . It also includes an assessment of the
significant estimates and judgements made by the trustees in the preparation of the accounts,
and of whether the accounting policies are appropriate to the charitable company's
circumstances, consistently applied and adequately disclosed .
We planned and performed our audit so as to obtain all information and explanations which
we considered necessary in order to provide us with sufficient evidence to give reasonable
assurance as to whether the accounts are free from material misstatement, whether caused by
fraud or other irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the accounts .
Opinion
In our opinion the accounts give a true and fair view of the charitable company's state of
affairs as at 31 December 2004 and of its incoming resources and application of resources,
including its income and expenditure in the period then ended and have been properly
prepared in accordance with the Companies Act 1985 .
Buzzacott
Chartered Accountants and Registered Auditors
12 New Fetter Lane
London
EC4A 1AG ,
Period
from 17
November
2003 to 31
December
Unrestricted Restricted Endowment 2004
fund funds fund Total
Notes L f f
Charitable expenditure
Activities in furtherance of the charity's
objects
Grants payable to students 4 351,296 804,289 - 1,155,585
Project grants 5 81,862 192,779 - 274,641
Support costs 6 182,614 5,356 - 187,970
Management and administration of the
charity 7 24,038 442 - 24,480
Total charitable expenditure 639,810 1,002,866 - 1,642,676
Net(outgoing)incoming resources
for the period 8 (127,760) 48,320 - (79,440)
Period
from 17
November
2003 to 31
December
2004
Total
Historical cost net movement in funds
The charitable company was incorporated on 17 November 2003 and commenced its activities on 1
March 2004 . None of its activities were discontinued during the above financial period .
31 December
2004 2004
Notes f f
Fixed assets
Tangible assets 11 7,474
Investments 12 84,479
91,953
Current assets
Debtors 13 409,287
Short term deposits 679,759
Cash at bank and in hand 44,815
1,133,861
Creditors: amounts falling due
within one year 14 564,250
Net current assets 569,611
Represented by :
Funds and reserves
Income funds:
Unrestricted funds
. General fund 147,020
Restricted funds 16 428,390
Capital funds:
Endowment fund 16 61,904
637,314
Basis of accounting
The accounts have been prepared under the historical cost convention as modified by the
revaluation of investments and in accordance with the requirements of the Companies Act
1985 . Applicable accounting standards and the Statement of Recommended Practice
"Accounting and Reporting by Charities" (SORP 2000) have been followed in these
accounts .
Incoming resources
Incoming resources are recognised in the period in which the charity is entitled to receipt
and the amount can be measured with reasonable certainty. Income is deferred only when
the charity has to fulfil conditions before becoming entitled to it or where the donor or
funder has specified that the income is to be expended in a future accounting period .
Legacies are included in the statement of financial activities when the charity is advised by
the personal representative of an estate that payment will be made or property transferred
and the amount involved can be quantified.
Resources expended
Expenditure is included in the statement of financial activities when incurred and includes
attributable VAT which cannot be recovered .
a. The costs of generating funds include the salaries, direct costs and overheads associated
with generating donated income .
b. The full cost of grants to students (scholarship commitments) and projects is included
in the statement of financial activities in the year in which they are approved and on
notification of the grant to the recipient. Future grants commitments are included as
creditors in the balance sheet.
Cash flow
The accounts do not include a cash flow statement because the charity, as a small reporting
entity, is exempt from the requirement to prepare such a statement under Financial
Reporting Standard 1 `Cash flow statements' .
Tangible fixed assets are included in the accounts at their original cost.
Depreciation is provided at the following annual rates in order to write off each asset over
its estimated useful life :
Investments
Investments are included in the balance sheet at their market value at the end of the
financial period . Realised and unrealised gains and losses are credited, or debited, to the
statement of financial activities in the period in which they arise .
Fund accounting
The general fund comprises those monies which may be used towards meeting the
charitable objectives of the charity at the discretion of the Trustees .
The designated fund consists of monies set aside by the Trustees for a particular purpose .
The restricted funds are monies raised for, and their use restricted to, a specific purpose, or
donations subject to donor imposed conditions.
The endowment fund represents permanent capital funds where there is no power to
convert the capital into income and which must be held indefinitely by the charitable
company .
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange
ruling at the balance sheet date . Transactions in foreign currencies are translated into
sterling at the rate of exchange ruling at the date of the transaction . Exchange differences
are taken into account in arriving at the net movement in funds .
Leased assets
Rentals applicable to operating leases where substantially all of the benefits and risks of
ownership remain with the lessor are charged on a straight-line basis over the lease term .
Pension costs
Contributions in respect of the charity's stakeholder pension scheme are charged to the
statement of financial activities in the period in which they are payable to the scheme .
1 Donations
Period from
17 November
2003 to 31
December
General Restricted Endowment 2004
fund funds fund Total
f f f
2 Interest receivable
Period from
17 November
2003 to 31
December
General Restricted Endowment 2004
fund funds fund Total
f f f
During the period grants were made to a total of 349 students, of whom 256 were
studying in South Africa and 93 were studying in the UK .
5 Project grants
Period from
17 November
2003 to 31
December
General Restricted Endowment 2004
fund funds fund Total
f f f
The above payments are made to provide support to various educational projects in
Southern Africa .
6 Support costs
Period from
17 November
2003 to 31
December
General Restricted Endowment 2004
fund funds fund Total
f f f f
None of the employees earned over 650,000 per annum or more (including benefits)
during the period .
The average number of employees during the period, calculated on a full time equivalent
basis and analysed by function, was :
Period from
17 November
2003 to 31
December
2004
Total
Generating of funds 1
Direct Charitable 3
Management and administration of the charity 1
5
One trustee was reimbursed (309 for expenses during the period .
Paddy Ross received C4,068 as remuneration for acting as interim director from July 2004
to end of October 2004 .
10 Taxation
Canon Collins Educational Trust for Southern Africa is a registered charity and therefore is
not liable to income tax or capital gains tax on income or gains derived from its charitable
activities, as they fall within the various exemptions available to registered charities .
Cost
Transfer from The Canon Collins Educational Trust for
Southern Africa (note 18) 18,261 3,541 21,802
Additions 3,760 - 3,760
Disposal (10,443) (1,863) (12,306)
At 31 December 2004 11,578 1,678 13,256
Depreciation
Transfer from The Canon Collins Educational Trust for
Southern Africa (note 18) 13,313 2,520 15,833
Charge for period 1,836 419 2,255
Disposal (10,443) (1,863) (12,306)
At 31 December 2004 4,706 1,076 5,782
12 Investments
Charishare
Long term accumulation
deposits units Total
f f f
13 Debtors
31
December
2004
f
16 Restricted funds
Transfer from
The Canon Collins
Educational Trust At 31
for Southern Incoming Resources December
Africa resources expended 2004
Notes f f f £
The restricted funds are specifically applied for the following purposes :
(c) Giyani Science Centre (Giyani Multipurpose Education Centre - neu) name)
Science education centre in Limpopo Province of South Africa that the CCETSA has
been supporting since 1996 for a variety of projects .
Rouse Scholarships
Mr Rouse funds postgraduate scholarships in South Africa . This was set up in 1999 .
(7c) Singakwenza
Comic Relief has funded Singakwenza in South Africa to work with juveniles
awaiting trial in Westville Prison.
Endowment fund
Rouse Fund
f
This fund represents ,f60,000 received during 1999 . Income earned on the amounts
invested is restricted for the purpose of funding students in Africa .
17 Financial commitments
At 31 December 2004 the charity had annual commitments under non-cancellable
operating leases for land and buildings as follows :
31
December
2004
f
During the period the charitable company received a deed of covenant from Defence and
Aid Fund Limited of C292 (2003 - C85) .