UK Charity Commission Registration Number 1120536
 

Mrs. Connie Tindale

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NB: This report and accompanying accounts were accepted and approved by the Trustees at the Annual General Meeting held in Hethersett Norfolk, on 30th June 2011.

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

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Trustees' Report:

2010 – 2011 was Little Stars’ fourth year of operation and, as in previous years, work concentrated on Health, Education and the Relief of Poverty. 

General:  The worldwide economic problems affected the funding of many charities and while contributions from Sponsors rose considerably, general contributions unfortunately fell.  This meant that we had to use some of our savings to cover planned projects and, despite a £5,000 grant from a European based charity, we had to defer the purchase of the vehicle that we desperately need,.  The purchase of the vehicle will be a priority of the coming year.  Problems were compounded in Luxor from January onwards with the Revolution and the Arab Spring, which saw thousands of people in Luxor thrown out of work at the same time as prices rose alarmingly.  The consequent lack of policing in Luxor meant that we had to bear the cost of installing steel gates with strong locks over all external doors.

In the United Kingdom, expenses were increased by the general rate of inflation and the increased level of VAT.  Charities are not exempt from VAT.  However, we can report that total expenses amounted to approximately 12.5% of our contributions which is under our self-imposed maximum level of 15%.  This means that the expenses are lower than any other comparable charity.  This has only been possible due to the charity having no exclusive accommodation and no European employees.  All fund-raising and administration work in the UK is done without payment on an entirely volunteer basis.

As much as possible of Little Stars’ spending is done locally which gives a boost to the local economy and we employ approximately seventeen people in Luxor most of whom are women with children. 

A change in accounting procedures was introduced in January 2011 to enable us to return to a full income and expenditure accounting.  All assets bought after that date have been ‘written off’ as expenditure in the year bought regardless of the cost.  As one physiotherapy machine alone cost in excess of £1,000 sterling, this appears to have artificially increased our expenditure for the year. 

Education:  - We are pleased to report that during the year we finished the building work on the new Training Centre and equipped it with a full suite of IT equipment.  There is also a literacy area and we have created a sewing ‘school’ with industry standard sewing machines.  This has enabled us to offer a wide range of training to underprivileged women hopefully leading them into self-sufficiency.  The Training Centre will be officially opened by the Governor of Luxor during the summer of 2011.

The new Hadana was officially opened by Lady Carnarvon in October 2010 and saw the completion of its first full school year.  The school has been a great success and a waiting list is being prepared for the start of the new school year in September 2011.  Apart from desks, chairs and toys etc., the nursery school now has a 32” HD Television with DVD player and a computer system to assist in teaching.   Although we have four teachers, we have restricted the number of children attending to 30 as it was a learning experience for Little Stars as well as the children.  Now that the venture has proven successful we may consider extending the number of children we can take.  Little Stars bought uniforms, underwear, shoes, bags and books for every child that came to the school. 

Health - New equipment was bought for the physiotherapy surgery in the clinic and it is now as well equipped as any hospital based physiotherapy unit in Upper Egypt.  Stocks of wheelchairs were bought in Cairo and brought down to Luxor for distribution to needy children in the villages.  The distribution of wheelchairs is monitored by our Needs Assessor and as the work of Little Stars becomes well known, the demand is increasing.  Free medicines are prescribed for sick children by our Doctor and dental care is available to all children regardless of circumstance. In addition to new medical equipment, there is now a 32” HD Television and a satellite system in the clinic to entertain children while they are undergoing treatment. 

Relief of Poverty:  The main thrust of our work in the relief of poverty was through our sponsorship scheme, but it was not entirely restricted to it.  There are now approximately 60 families in the scheme with around 300 - 350 children between them.  During the year we provided all families with monthly food parcels and poultry and issued clothing at Eid and at the start of the winter when blankets were also distributed.  Housing in the villages is very rudimentary with little plumbing and virtually no internal sanitation.  Houses are of mud brick with packed mud floors and split palm trunk rafters thatched with straw.  During the year several houses collapsed and were completely rebuilt, others had roofs replaced, concrete floors laid, toilets installed and doors added.  The work was usually done on a shoe string by a local workman, which enabled us to undertake far more repairs than anticipated.  Our first priority with all families is to buy beds to get the children off the floor while sleeping and to provide refrigerators to prolong the life of food items.  Other items which could be considered as a luxury were bought for families by their own sponsors.

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Notes to accompany accounts for 2010-2011:

1.         INCOME

The main source of income was through general donations and the efforts of our fundraisers (£55,262) but a significant sum was received through the sponsorship scheme (£8,073).  Funds were also received through items being sold on Ebay.   Gift Aid added £2,696 to our funds and we request all donors to allow us to claim tax on their donations if they can.  Fund Raising through Just Giving was enhanced by Peter Allingham at Ancient Tours whose clients donated almost £2,000 to Little Stars. 

2.         GRANTS

Throughout the year Little Stars continued its financial support of The Good Samaritan Home.  In addition to the financial support of £2,676, aids for the visually impaired are waiting to be taken to the home for distribution.  These were donated to Little Stars by the Welsh charity Vision Support.

3.         HEALTH

The physiotherapy surgery 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.  Computerised physiotherapy equipment was purchased and an entertainment system (32” TV and Satellite) was bought for the children’s entertainment.  A computer system was purchased for the clinic’s office.

4.         EDUCATION

The nursery school successfully completed its first year of operation and the Training Centre was finished and fully equipped.  

5.         RELIEF OF POVERTY

Relief of poverty was a major aspect of Little Stars work during 2010-2011.  The main focus was the distribution of food parcels and the upgrading of living conditions for our sponsored families.  There are now approximately 60 families in the scheme.  The expenditure covers:- buying beds, mattresses and blankets, installing basic sanitation, repairing faulty roofs, rebuilding houses, repairing collapsed walls, buying cookers and fridges and improving 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.  School uniforms were also bought so that children could attend primary and secondary schools.  The cost includes the running of the East Bank Distribution Centre where all the food and clothing is stored. 

6.         UK FUND RAISING EXPENSES

The direct costs of raising funds fell slightly from last year but this was reflected in decreased donations.  All fund raising is done by volunteers.  The cost includes all the expenses of our Fund Raisers, such as travel, postage and telephone and of Public Liability Insurance.

7.         UK GENERAL EXPENSES

Other UK expenses include the cost of running the websites, stationery and printing, administration costs such as postage and telephone, bank charges for transferring funds to Egypt and travel.   Public Liability Insurance cost £463.  The combined cost of raising funds and of general expenses was approximately 12.5% of total donations which is well below Little Stars’ self-imposed 15% limit.

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 £14,616.  All assets bought since January 2011, except those in fixed positions have been treated as expenses regardless of the cost.  It is hoped that all fixed assets can soon be written off so that a full income and expenditure accounting system can be used.

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:  £6,314

9.         STOCK AND PREPAYMENTS

Stock consists £400 of stationery.
Prepayments relate to rents that have been paid in advance on the nursery school, the Training Centre and the East Bank Distribution Centre.  Paying rent in advance reduces the annual cost of the rent considerably as it is an excellent bargaining tool. There are no accruals.

10.       BANK ACCOUNTS AND CASH IN THE UK AND LUXOR.

Little Stars has a current account (£12,710) and two Deposit accounts (£10,225 and £5,122 respectively) with the HSBC Bank in the UK.    The interest on these funds was minimal.                                                                       

The Little Stars Paypal account accepts credit card payments as it used mainly for Internet donations from the UK and from overseas.  This sum has since been transferred to the current account.

12.       THE TRUST FUND

The Trust Fund fell by £8,308 over the year.  This was caused by maintaining support for families despite the fall in donations and through the change in accounting policy where all assets bought after in 2011 were written off as expenses.   £5,000 of the Trust Fund comes from a specific donation and can only be used for the purchase of a min-bus.