NB: This report and accompanying accounts were accepted and approved by the Trustees at the Annual General Meeting held in Hethersett Norfolk, on 24th June 2010.
Signatures are in place on the Trustees’ Report and the signed Examiner’s Report Form is on file. All signatures have been withheld from publication at the request of the Trustees for Internet Security reasons.
Trustees' Report:
2009 – 2010 was Little Stars’ third year of operation and saw great expansion of both the scope and number of its projects; concentrating as before on Health, Education and the Relief of Poverty. During the year we were able to complete both a new dental surgery and a new general health surgery in the clinic and to complete the Hadana (Nursery School). In addition, we were able to start building the Training Centre for village women and girls above the clinic. Through the sponsorship scheme, we distributed thousands of chickens and food parcels and provided clothing for more than 250 children. As part of the aim to relieve poverty we provided cookers, fridges, beds and bedding, and repaired and upgraded houses. We piped water, mended roofs and installed basic sanitation in remote villages where there is extreme poverty. In one village we completely rebuilt a house that had collapsed and left a widow and her three small children homeless. The positive effects of these projects on peoples’ lives cannot be overstated and they could not have been done without your support.
The widely publicised fall in the value of the pound meant we had greatly increased costs, which caused concern throughout year. The pound started the year with a small rally in its value and then continued to plummet. Fortunately, despite a world-wide recession, support for Little Stars work grew and donations increased considerably so that all expenditure was within our income and we were still able to add a small amount to the basic Trust Fund.
Little Stars still has no European staff or expensive offices in the UK or in Luxor and keeps expenses to the minimum. The Chairman visited Luxor monthly throughout the year to check on progress of projects and to ensure that the administration ran smoothly. The Honorary Treasurer visited Luxor in October and February and took the videos which were uploaded onto YouTube. Our two main fundraisers visited the Luxor projects in October. Thanks are offered to all concerned who either covered their own expenses or claimed the expenses and then donated them back to Little Stars so that Gift Aid could be claimed. Expenses were kept to a minimum and accounted for only 10% of total expenditure which means that 90% of donations went directly where they were meant to go.
Our plans for the coming year are not fixed but we aim to continue support for the Good Samaritan Home, to consolidate our sponsorship programme, to provide an outdoor play area for the nursery school, to complete the Training Centre and to purchase a vehicle so that we can get to the villages easily and bring children and students to the Centre for health checks and education.
We would like to formally thank our UK fund raisers and supporters without whom the charity would not be able to function and we would like to offer our thanks to Lord and Lady Carnarvon who gave up their time to visit the clinic during October. Lady Carnarvon has now agreed to join Lord Carnarvon as a joint patron of Little Stars. Thanks are offered to Mrs. Alison Shaw for voluntarily inspecting and approving our accounts for us. This is not a simple task as it will have taken Mrs. Shaw many hours to complete and we are very grateful to her.
Thanks are given to Nagar Khalifa in Luxor for his tireless efforts in dealing with the vital paperwork for the Egyptian authorities and organising the staff. In March, the necessary licenses which allow us to operate in Egypt were received and Little Stars is now fully registered with the Egyptian Authorities including Egyptian Social Services. As advised by the Charity Commission, the cost of the registration has been split evenly over the three areas of operation: Health, Education and the Relief of Poverty. Progress in achieving the aims for each area is reported below. :-
Notes to accompany accounts for 20009-2010:
1. INCOME
Little Stars total income during the year increased by approximately 22%. The main source of income was through general donations and the efforts of our fundraisers but a significant sum was received through the sponsorship scheme. Funds were also received through items being sold on Ebay by Lynne Weyman and also through the ‘Easy Fundraising’ Search Engine. Gift Aid claims increased considerably due to the sponsorship scheme and re-donated expenses claims. For the first time funds were donated by Egyptian businessmen who purchased fridges and ceiling fans to the value of £1,200 for distribution to our sponsored families. New sources of income are being sought constantly. During the year we registered with Just Giving as a way of increasing donations. However, due to the 5% that they take from all donations and the additional monthly fee, this has so far proven not to be cost effective. Virgin’s non-profit making scheme is now being investigated as an alternative.
In total £74,351 was received
2. GRANTS
Throughout the year Little Stars continued its financial support of The Good Samaritan Home. In addition to the financial support of £2,820, aids for the visually impaired were taken to the home for distribution. These were donated to Little Stars by the Welsh charity Vision Support.
Total grant given = £2,820
3. HEALTH
The physiotherapy surgery set up last year continued to grow under the guidance of Dr. Yara and the policy of buying wheelchairs and providing walking aids for children to use in the clinic and in their own homes was continued. A new dental surgery was created partly with the assistance of a grant from The British Embassy and was opened by the British Ambassador in March. The cost of the dental chair and major items of equipment have been treated as fixed assets. The dental surgery is run by Dr. Billal who also visits the villages to examine the teeth of the children in our sponsorship scheme. A third surgery has been completed within the complex for use as a mother and baby clinic. In addition to the clinic, children from poor families in the outlying villages were collected and taken to the local hospital when necessary.
Total cost of health provision = £10,485
4. EDUCATION
The educational focus during the year was on the completion of the nursery school and the start of the Training Centre for women and girls. The nursery school (Hadana) was severely delayed due to the fourteen months that it took to obtain the licenses. The nursery school is now complete and work will continue with the Training Centre during the coming year.
Total expenditure on Education = £19,641
5. RELIEF OF POVERTY
Relief of poverty was a major aspect of Little Stars work during 2009 – 2010. The main focus was the distribution of food parcels and the upgrading of living conditions. This was achieved through a building programme to buy beds, mattresses and blankets, to install basic sanitation, repair faulty roofs, rebuild collapsed walls, buy cookers and fridges and improve the diets of families in the outer villages by adding poultry to their monthly food parcels. In addition, clothing and shoes were provided for families with new clothing being bought for the two Eid festivals. The cost includes the running of the East Bank Distribution Centre where all the food and clothing is stored.
Total cost of relief of poverty = £27,508
6. UK FUND RAISING EXPENSES
The cost of raising funds was higher than last year as attracting donations became harder due to the recession. The cost includes all the expenses of our Fund Raisers, such as travel, postage and telephone and of Public Liability Insurance. New tabards and sashes were also bought.
Cost of Raising Funds = £3,181
7. UK GENERAL EXPENSES
Other UK expenses include the cost of running the website, stationery and printing, bank charges for transferring funds to Egypt and travel. The combined cost of raising funds and of general expenses was approximately 10% of total donations which is well below Little Stars’ self-imposed 15% limit.
Total General Expenses = £4,277
8. FIXED ASSETS AND DEPRECIATION
Fixed Assets: Fixed Assets consist of 5 large air conditioning units, office furniture, surgery furniture, fridges, freezers, storage units, signs, steel security doors, large toys, dental chair and equipment, television and computer equipment to the total at cost value of £12,206.
Depreciation: Depreciation was charged on the IT equipment at the rate of 33.33% per annum on a straight line basis as items are not expected to last more than three years. Depreciation on the office furniture and surgery furnishings was charged at the rate of 20% as the items are not expected to last more than five years. Total depreciation to date: £3,654
Present Fixed Asset value = £8,552
9. STOCK AND PREPAYMENTS
Stock consists of £1,230 of food (dried goods and frozen chickens), £500 of stationery and £600 of blankets all held in the East Bank Distribution Centre. ........................................................................... Totals stock value = £2,430
Prepayments relate to rents that have been paid in advance on the nursery school and the East Bank Distribution Centre. Paying a year’s rent in advance reduces the annual cost of the rent considerably as it is an excellent bargaining tool. There are no accruals
Total prepayments: £1,125 + £500 = £1,625
10. BANK ACCOUNTS AND CASH IN THE UK AND LUXOR.
Little Stars has a current account (£8,850) and two Deposit accounts (£15,213 and £5,118 respectively) with the HSBC Bank in the UK. The interest on these funds was minimal.
Total UK Funds: £29,181
In Luxor there is also a bank account in Luxor with the Bank Misr which is holding £6,000 and there is £3,050 held in cash.
Total Luxor funds: £9.050
The Little Stars Paypal account accepts credit card payments as it used mainly for Internet donations from the UK and from overseas.
Total Paypal Funds: £818
11. THE TRUST FUND
The Trust Fund has grown by £51,000 over the past three years. It is our intention to increase the Trust Fund over the next year in anticipation of a future increase in interest rates.
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