At the East Africa Character Development Trust (EACDT), we take our responsibility to donors seriously. We are committed to ensuring that funds entrusted to us are properly safeguarded, carefully managed and used for their intended charitable purposes.
The Trustees of EACDT have established a Management Accounting system to ensure that every penny donated is properly accounted for and directed towards helping children and young people in East Africa.
Our financial management systems provide appropriate oversight at every stage — from receiving donations and transferring funds for programme delivery in Kenya, to authorising expenditure, recording transactions and reporting on how funds have been used.
How Donations Are Received
At present, donations are raised outside East Africa. All donated funds are paid into, or transferred directly by donors to, bank accounts maintained by EACDT with Barclays Bank in the UK in the name of the Foundation.
EACDT maintains Barclays UK bank accounts in Pounds Sterling and US Dollars.
Payments from the Barclays UK accounts are made on the basis of two signatures on each cheque or on the authority of a volunteer administrator. Before authorising any transfers, the volunteer administrator seeks the approval of either the Executive Trustee or another EACDT Trustee. This approval process particularly applies to transfers to the Pound Sterling bank account maintained in Nairobi, Kenya.
Management of Funds in Kenya
EACDT’s charitable activities are carried out in Kenya through the Foundation for Youth Cricket and Education in Kenya (FYCEK), a Kenyan charitable trust established by EACDT to provide it with a legal presence in Kenya.
FYCEK enables EACDT to enter into contracts of employment with its coaches and administrators, procure goods and services locally, and comply with applicable Kenyan employment laws.
FYCEK maintains two bank accounts with I&M Bank — one in Pounds Sterling and one in Kenyan Shillings. Both accounts are held in the name of FYCEK.
FYCEK has its own Board of Trustees. Mr Julian Ince, an EACDT Trustee, monitors transactions undertaken by FYCEK through regular reviews of expenditure. Mr Ince is a retired former partner of PricewaterhouseCoopers and a UK Chartered Accountant resident in Kenya.
When FYCEK requires funds, its Kenya-based Programme Director, Mr Collins Odhiambo, submits a request to the volunteer administrator, usually for an amount of £7,500.
The volunteer administrator then seeks approval from an EACDT Trustee and authorises the transfer. Funds are transferred from FYCEK’s Sterling account to its Kenya Shilling account at an exchange rate negotiated by Mr Collins with the I&M Bank Treasury Department.
No other payments are made from the Sterling account.
Authorisation of Expenditure
Payments from the FYCEK Kenya Shilling account require two authorised signatories on each cheque. No direct transfers are made from this account. The signatories are FYCEK’s Trustees and Mr Collins.
Before a cheque can be drawn, FYCEK’s Kenyan Administrator prepares a cheque requisition using a prescribed form. The requisition states the name of the payee and the reason for the payment and includes the relevant supporting third-party documentation.
The requisition is then authorised by Mr Collins. Where a payment relates to the reimbursement of bona fide expenses incurred by Mr Collins, the requisition is authorised by Mr Ince.
Once authorised, the Administrator prepares the cheque, which is then signed and issued to the payee.
This process ensures that expenditure is supported by appropriate documentation, properly authorised and independently subject to the required signatory controls.
Petty Cash
A petty cash float, maintained at the equivalent of £176, is operated on an imprest system to meet incidental expenditure.
All petty cash expenditure is recorded on petty cash vouchers, with supporting third-party documentation attached and the payment approved by Mr Collins.
When the petty cash float requires reimbursement, the Administrator prepares a list of payments that have been approved and made and presents it to Mr Collins for approval in accordance with the same control process used for cheque requisitions.
Monthly Financial Reporting and Monitoring
The Administrator prepares a monthly summary, in a prescribed format, of all receipts and payments into and out of FYCEK’s bank accounts and petty cash float. This is reviewed by Mr Ince and Mr Collins.
The FYCEK financial information is then combined with receipts and payments recorded in EACDT’s UK bank accounts to produce a consolidated summary of EACDT/FYCEK receipts and payments, together with comparative budgeted amounts.
These financial reports are reviewed at EACDT’s quarterly Trustee meetings, providing the Trustees with regular oversight of the organisation’s financial performance and use of charitable funds.
Annual Accounts and Independent Audit
The financial year end for both EACDT and FYCEK is 31 March.
FYCEK’s receipts and payments for the financial year, together with explanatory notes, are independently audited in Kenya.
The audited FYCEK accounts are then aggregated with EACDT’s receipts and payments. A combined receipts and payments account, together with supporting explanatory notes, is prepared and submitted to EACDT’s independent examiner, along with any supporting records requested.
Following the independent examination and any appropriate adjustments, EACDT’s annual receipts and payments account and explanatory notes are filed with the UK Charity Commission.
This process provides our donors and supporters with independent assurance that charitable funds are properly recorded, monitored and reported.
Our Commitment to Donors
We believe that transparency and accountability are fundamental to responsible charitable work. Every donation represents a contribution towards improving the lives and future opportunities of children and young people in East Africa.
Our financial controls, regular monitoring, independent audit and statutory reporting are designed to ensure that donated funds are handled responsibly and used for their intended charitable purposes.
To view our latest Accounts, please visit click here