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2021-09-30-accounts

Charity No. 1001420

Money for Madagascar Report and Unaudited Financial Statements

30 September 2021

Money for Madagascar

Reference and administrative details

For the year ended 30 September 2021

Status The organisation is a registered charity, registered on 7 January 1991.
Governing document The charity is constituted under a trust deed dated 10 November
1990.
Charity number 1001420
Registered office Langthwaite House
Langthwaite Road
Quernmore
Lancaster
LA2 9EB
Trustees Clare Brown (resigned March 2022)
Vao Brown (appointed July 2021)
Eifion Griffiths - Treasurer
Theresa Haine
Felicity Jones - Chair (appointed November 2021)
Bernadette King
Timothy King
Jan Kirby
Simon Kirby
Jerry Langford (appointed July 2021)
David Pottinger
Miara Rabearisoa (resigned March 2021)
Micheline Ravolonarisoa
Thelma Stenning (retired November 2020)
Stephen Wilkinson
Principle staff Irenee Rajaona-Horne
Bankers National Westminster Bank Plc
23 Uplands Crescent
Swansea
SA2 0NY
Virgin Money plc
Jubilee House
Gosforth
Newcastle upon Tyne
NE3 4PL
Independent examiner Alison Godfrey FCA
Godfrey Wilson Ltd
Chartered accountants and statutory auditors
5th Floor Mariner House
62 Prince Street
Bristol
BS1 4QD

1

Money for Madagascar

Report of the trustees

For the year ended 30 September 2021

The trustees present their report and the unaudited financial statements for the year ended 30 September 2021.

Structure, governance and management

Money for Madagascar (MfM) was founded in 1986 and registered with the Charity Commission, no.1001420, on 7 January 1991. It is governed by a trust deed dated 10 November 1990 and amended in February 2009.

The charity is run by 13 trustees all of whom are volunteers, and by two full-time staff and two parttime staff who are the director, the administrator, the fundraiser and the bookkeeper. Additional volunteers contribute about 500 hours a year to the charity. The UK registered charity also has a country office in Madagascar, which is staffed by a small team who are responsible for monitoring, programme development, training and capacity building for MfM’s partners. MfM currently works with 16 Malagasy partner organisations, who are legally registered in Madagascar as NGOs or Associations.

Decisions taken at trustees' meetings are implemented by the staff and by trustees who serve as officers or who have designated roles on working groups. The officers' positions are one Chair and one Honorary Treasurer. The Board is supported by 2 standing committees, which are the Finance and General Purposes Committee (FGP) and the Programme Development Group (PDG), who meet between board meetings. Ad hoc groups are also used to work on particular tasks.

Trustees are recruited either through personal recommendation or by open recruitment, taking into account relevant skills and knowledge of Madagascar. Details of MfM’s policies as well as the roles and responsibilities of Staff, Officers, Trustees and Committees can be found in the organisation’s Staff Handbook and Governance Handbook. Likewise the organisation’s risk analysis and skills analysis can be found in the Handbook.

The trustees review possible risks on a regular basis and have put in place systems to mitigate these.

Objectives

Money for Madagascar's mission is to enable Malagasy people to reduce poverty and protect the environment through sustainable, community-led initiatives.

MfM works with trusted Malagasy partner NGOs to deliver sustainable development. We believe in the important role of local NGOs and work to strengthen them so they can deliver appropriate community-based development.

With our Malagasy partners we facilitate the training of young people and their families in urban settings, environmental hotspots and isolated rural communities, to increase their resilience and to reduce their vulnerability.

In setting up our programmes we have regard to the Charity Commissioners' general advice on public benefit, and the trustees always ensure that the programmes which they fund are in line with the charity's aims and objectives stated in the trust deed and outlined above.

2

Money for Madagascar

Report of the trustees

For the year ended 30 September 2021

Approach

As was the case in 2020, 2021 was a profoundly challenging time in Madagascar for our partners and the communities where we work together.

Coming on top of existing extreme poverty, food insecurity, land insecurity, and threats to biodiversity, 2021 saw the ‘first climate emergency triggered famine’ (declared by the UN in August 2021), with Madagascar’s southern region suffering repeated droughts and crop failures. This situation had been persistent since 2020 but worsened throughout 2021, along with the impact of the global COVID-19 pandemic (by December 2021, only 2.1% of the population had received any vaccination).

For Money For Madagascar, this resulted in a number of challenges, particularly related to:

However, it also led to increased visibility for Madagascar in the UK and globally and a surge of generosity from existing and new donors witnessing the impact on Madagascar. Money for Madagascar was identified as a trusted and transparent transmitter of that funding directly to the impacted communities.

The year has also seen the acceleration of strong bonds of partnership and collaboration between the AMI team in Madagascar and the MfM team in the UK, including joint planning and review meetings, collaborative work on fundraising, and the increased engagement of the additional Francophone members of the UK team alongside the Executive Director.

It has also reinforced the commitment to clarifying the need for strategic commitment to Malagasy-led solutions and the role of MfM as global advocates for the need for systemic thinking, advocacy and partnership building, and resource mobilisation to build resilience in the face of extreme climate driven crises.

In this context, our trustees’ report looks back over the strategic and programmatic developments achieved by MfM in 2021 in collaboration with our AMI-In Country Team.

Context and visibility of Madagascar

Throughout 2021, the droughts and related famine in Madagascar had already become more visible in global media coverage. This culminated in the August 2021 declaration by the UN of the Malagasy humanitarian crisis as the ‘first climate emergency triggered famine’.

As a result, the famine was featured more strongly in international news and became the focus of significant appeals by the World Health Organisation, UNICEF and Amnesty International, among others.

As noted and outlined in more detail in the finance report, this also resulted in increased donor approaches to Money For Madagascar wishing to donate directly to Malagasy communities. We will address the impact of that for our emergency response and programming pillars below.

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Money for Madagascar

Report of the trustees

For the year ended 30 September 2021

The visibility of Madagascar increased further through the country’s strategic approach to the COP 26 held in Glasgow in November 2021. Madagascar sent a delegation committed both to raising awareness of Madagascar’s acute vulnerability to the climate and biodiversity crises, as well as positioning itself as a country that (with international funding) could significantly contribute to the conservation/restoration of biodiversity and the reduction/absorption of carbon.

The COP 26 summit included several powerful speeches and communications from the leaders of countries already most impacted by climate change, and Madagascar was a crucial part of this group. Madagascar’s Minister for the Environment and Sustainable Development, Ms Baomiavotse Vahinala Raharinirina, received extensive media coverage in the UK for her clear stance on the direct link between the lifestyles and choices of individuals and governments around the world on her country.

We expect and hope that this increased awareness of Madagascar’s needs and Madagascar’s offer should trigger increased funds available for conservation and development agencies, like MfM, who are ready to be part of the solution.

Money For Madagascar strategy, programming and response to crises

As the Chair noted in her report for 2020, MfM takes an integrated approach to protecting the environment, tackling poverty and raising dignity amongst the poorest communities in Madagascar. We have done this since our beginnings over 35 years ago.

This approach has remained at our core throughout 2021 despite the challenges of our operating environments and it remains the foundation for our strategic refresh in 2022.

Our W.H.E.E.L.S. approach addresses the interconnected needs of our beneficiaries through integrated activities: W ater, H ealth, E ducation, E nvironment, L ivelihoods and S anitation.

Our work focuses on four programme areas:

The work of MfM is clustered into three geographic areas where we have strong community support: the East, West and Central regions of Madagascar.

As the Chair also noted in 2020, “in particular circumstances, such as times of emergency, we may fund one off projects that lie outside of our core geographic area. For example, providing famine relief in the South of the Island.”

Throughout 2021, the frequency and severity of those emergency times have increased. While MfM does not wish to position itself as a humanitarian crisis response organisation, our work in 2021 resulted in a greater concentration of this funding and activity.

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Money for Madagascar

Report of the trustees

For the year ended 30 September 2021

Money for Madagascar (MfM) occupies a distinctive position in the landscape of international NGO's - working in Madagascar while small, we are trusted by both Malagasy partners and communities and by global donors. As a result, we were compelled to assist communities with emergency aid and recovery packages by new and existing donors who wanted to direct their crisis and programmatic funding through MfM.

This underpins the growth of MfM throughout 2021, which is also the result of increased investment in strengthening MfM in both the UK and Madagascar and prioritising collaboration across the two entities.

Growth of MfM in 2021

MfM has grown over 2021 to take a more significant role in the current call to action. This year, in particular, we have made tangible progress in strengthening the following:

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Money for Madagascar

Report of the trustees

For the year ended 30 September 2021

Fundraising summary

Programme development snapshot

Each of our four programme areas has developed enormously over 2021. The teams are also working to ensure progress is being made to build our work into more integrated programme pillars.

Details of specific fieldwork carried out by our partners can be found in the individual partner reports available on our website or from our office.

Education for Life – We have now increased the resource in Madagascar allocated to managing and developing this programme. Phase two of the programme is almost complete. Phase three is still underway. Phase four will start in October 2021. Phases two, three and four have all secured funding for their four year programme. We are now applying for funds for phase five, for at least fourteen more schools to start in October 2022. We hope that the new 30 minute film about E4L will help us with fundraising and raising awareness about this significant piece of MfM’s programme. The film is available in English (from the original Malagasy) here:

https://www.youtube.com/watch?v=LcUVCLvSUNg. Parental literacy and business have now been built into the new programme design, and a key focus for 2022 will be to raise additional funds to provide this service to schools which have not yet had this provision.

Forest and livelihoods – Progress continues with the in-depth process to co-design the new MfM F&L Programme. The anticipated grant from the Waterloo Foundation towards the programme design process will enable us to do this in a deeper and fully participatory way. We are exploring potential new connections and partnerships which could greatly enrich our new programme. Covid has had a huge impact on livelihoods in Madagascar, especially in environmental hotspots where up to 80% of the population can depend on eco-tourism for their income. The resulting unemployment and poverty puts further pressure on natural resources, for example increasing the incidence of bush fires. MfM has tried to reduce pressure on forests and forest people through additional emergency grants to these communities. Despite impediments from Covid, we are excited to launch our new ‘Youth for Lemurs’ programme, in coalition with Madagasikara Voakajy (and others) which is funded by DEFRA’s ‘Darwin Initiative’. This sets a strong pattern for partnership working in coalition, building on MfM’s experience and reputation in the sector and giving us the chance to share our experience and skills. The funds raised for this project do not appear in the MfM UK accounts as they will be paid directly to our Madagascar office and to our Malagasy partners NGOs.

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Money for Madagascar

Report of the trustees

For the year ended 30 September 2021

Vulnerable children – We have now secured annual funding for all our seven vulnerable children’s centres. In addition, the children at most of these centres now receive daily lunches from our new Mary’s Meals canteens. A true blessing in times of soaring cost of living, increased hunger and food insecurity. Next steps to strengthening this programme include training and sharing of best practice, and the development of a new mentoring and youth leadership programme headed up by Ankizy Gasy.

Disaster resilience and relief – In addition to providing additional grants to help our partners to survive the strains of Covid, we have also stepped up our famine response - feeding daily meals at four schools in Amboasary, one of the worst hit areas of the South. Our AMI team is working with our Southern partner ALT to develop a proposal to expand our famine response, with a strategic focus on building resilience as well as emergency feeding. We are conscious of the need to act quickly on this, given donor support to the emergency.

Strengthening our Madagascar team

This goal has been a key strategic focus for 2021. At the end of 2021, we had eight core members of our Madagascar AMI team, plus a further 12 recruited to deliver our Mary’s Meals canteens. Programme management, programme development and leadership are increasingly being undertaken by our highly competent Malagasy team, including two Chevening Fellows and staff experienced in international and national NGOs and community based organisations. They are increasing our capacity to deliver high quality work at a larger scale. We are proud to have such a committed and high calibre team, who are boosting our efficacy and reputation in Madagascar and globally.

Strengthening our UK team

MfM’s UK team is staffed very leanly, with primarily part time and voluntary positions. The team is committed and professional, covering accounting, fundraising, IT, media and communications and leadership and advocacy in the UK and more broadly.

Throughout 2021, the team has responded to increased donations, while also managing the twin demands of emergency and programmatic fundraising, management and messaging. The team has been incredibly committed to working in solidarity with their Malagasy colleagues and building solid connections digitally. Their approach to this has resulted in continued donor and partner confidence in MfM.

Over 2021, the team’s capacity though has been stretched and, as we look to 2022, we will seek to build some key capacity in the UK team to ensure that their health and wellbeing are prioritised for their personal sakes and to ensure the delivery of their professional remits for MfM.

Looking forward: growing Malagasy leadership and voice in the conservation and

development of Madagascar

As we reflect on 2021, it is clear that Madagascar’s people, flora and fauna urgently need help. As an international spotlight is now shone on Madagascar’s hunger, fragility and its potential to contribute to climate solutions, MfM’s goal is to continue to strengthen our skills, capacity and visibility so that we can fulfil our mission to help Malagasy communities fulfil their potential to drive conservation and development in Madagascar.

As we look into 2022, unfortunately Madagascar continues to be on the receiving end of humanitarian crises driven by the climate emergency. It also remains at the bottom of the Human Development Index (2020 - 164th).

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Money for Madagascar

Report of the trustees

For the year ended 30 September 2021

2021 has been both challenging and helpful in reinforcing our values driven mission. In 2022, we will be finalising our new ten year strategy. This will take Money for Madagascar beyond Agenda 2030 and leverage the trusted role of MfM in Madagascar and the UK. We are conscious of our responsibility to keep Malagasy needs and solutions at the forefront of global funding and development agendas.

Financial review

Despite the continued impact of COVID 19 both in the UK and in Madagascar we have been successful in maintaining our support for our partners and beneficiaries. Thanks to the generosity of our donors, we have also been able to provide additional financial support for alleviating suffering caused by Covid and by unprecedented weather conditions on the island.

Because of Covid challenges, we saw a reduction of 5% in our total income compared to last year at £443,857 (2020 £469,176) but by keeping tight control of our costs and judicial use of our unrestricted reserves we increased our expenditure on charitable activities from 88% to 91% of annual spend, sending £340,531 to Madagascar.

Our increased profile as a charity during the period has opened new avenues of income and our budgets for 2021/22 indicate plans for a substantial increase in activity in 2021/22.

We have seen a significant expansion in our donor base with an additional 700 new donors this year in addition to our existing faithful donors, as well as five new voluntary fundraisers and three new trusts. An additional £69,000 has been raised from individual donors and an additional £48,000 from trusts and foundations compared to last year. We have also built new strategic partnerships with academics, local and International NGO's, which are strengthening the quality and reach of our programmes.

Thanks to a thousand hours donated by volunteers, as well as the hard work of staff and trustees, we have kept UK admin costs to a lean 8.6% of our spend in 2020-21.

Services provided by staff in the UK and Madagascar are also helping to secure other services ‘inkind’ such as enabling our Malagasy partners to secure grant funding from other donors. Our support with programme development, bid writing and pledges of match funding have enabled partners to secure grants, e.g. a pledge of £2,000 from MfM helped leverage a grant of £30,000 from the Codegaz Foundation to install rainwater collection systems in centres for vulnerable children.

Thanks to investment in our Madagascar in-country team (AMI) we have significantly increased the programme support and programme development we are providing in Madagascar. This has enabled us, for example, to help secure a ‘Darwin Initiative’ grant from DEFRA for a three year ‘Youth for Lemurs’ conservation programme. This grant for £285,000 will not come through our UK accounts. Instead it will be paid directly to our Malagasy partners. This is an example of MfM’s role as a facilitator to support Malagasy NGOs in securing grants. Whilst this new grant income does not show in MfM’s UK accounts it is an important outcome of MfM’s investment in programme development, fundraising and capacity building, helping us to achieve our goal of enabling Malagasy people to drive their own development and conservation.

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Money for Madagascar

Report of the trustees

For the year ended 30 September 2021

Our unrestricted reserves are at a level somewhat above our policy requirements (see reserves policy). This gives us the flexibility to underwrite vital projects which don’t receive direct third-party funding and to respond to urgent humanitarian need. Unrestricted funds also enable us to invest in: programme development, training and capacity building for Malagasy NGO partners, community consultations, building collaborations and networks, research, monitoring, evaluation, and learning, and raising additional funds. The importance of retaining such reserves has been amply demonstrated this year whilst dealing with the impact of Covid and we have taken the opportunity to assist our partners in Madagascar to take on a greater role both in the management of projects and incountry fundraising. Our strong reserves position will enable us to continue to build resilience in Madagascar.

Having taken a cautious view in budgeting for the year, the performance of the charity during very uncertain times shows that Money for Madagascar has secured a strong financial position without being over reliant on limited or single sources of income. Our strategy for the medium and long term is to continue with this policy not only by sector but also geographically as we look for additional fundraising opportunities on the island of Madagascar and in a wider international context.

Reserves policy

During the year the board took the opportunity to review the reserves policy to ensure that our reserves are retained at a sufficient level to meet our obligations and underpin our future plans.

The trustees wish to ensure that the policy provides a reasonable balance between income and spending commitments and provide a buffer against unexpected events including changes in economic, environmental, and social conditions. Reflecting these objectives, the following policy was agreed:

The charity requires its unrestricted reserves to be maintained at a level of £200k, to be reviewed annually to ensure that it remains within the greater of:

Statement of responsibilities of the trustees

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing those financial statements the trustees are required to:

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Money for Madagascar

Report of the trustees

For the year ended 30 September 2021

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The trustees

The trustees who served during the year and up to the date of this report are listed on page 1.

Independent examiner

Godfrey Wilson Limited were re-appointed as independent examiners to the charity during the year and have expressed their willingness to continue in that capacity.

Approved by the trustees on 8 June 2022 and signed on their behalf by:

Felicity Jones

Felicity Jones - Chair

10

Independent examiner's report

To the trustees of

Money for Madagascar

I report to the trustees on my examination of the accounts of Money for Madagascar (the Trust) for the year ended 30 September 2021, which are set out on pages 12 to 32.

Responsibilities and basis of report

As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Godfrey Wilson Limited also provide payroll and ad hoc consultancy services to the charity. I confirm that as a member of the ICAEW I am subject to the FRC’s Revised Ethical Standard 2016, which I have applied with respect to this engagement.

Independent examiner’s statement

Since the Trust’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Alison Godfrey

Date: 13 June 2022

Alison Godfrey FCA (member of ICAEW)

For and on behalf of: Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

11

Money for Madagascar

Statement of financial activities

For the year ended 30 September 2021

Note
Income from:
Donations
3
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Education for life
Forests and livelihoods
Vulnerable children
Emergency response
Total expenditure
4
Net gains on investments
10
Net income / (expenditure)
Transfers between funds
Net movement in funds
6
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Restricted Unrestricted
£
£
260,335
176,559
182
4,031
-
2,750
260,517
183,340
-
42,392
75,396
16,142
81,285
31,559
119,185
11,063
57,751
15,455
333,617
116,611
-
25,486
(73,100)
92,215
35,696
(35,696)
(37,404)
56,519
115,050
266,921
77,646
323,440		 2021
Total
£
436,894
4,213
2,750
443,857
42,392
91,538
112,844
130,248
73,206
450,228
25,486
19,115
-
19,115
381,971
401,086		 Restated
2020
Total
£
459,880
5,852
3,444
469,176
55,478
69,643
95,193
175,591
63,735
459,640
10,750
20,286
-
20,286
361,685
381,971

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 14 to the financial statements.

The prior period comparatives have been restated to reclassify expenditure between SoFA headings. There is no impact on total expenditure or net income.

12

Money for Madagascar

Balance sheet

As at 30 September 2021

Note
Fixed assets
Tangible assets
9
Investments
10
Current assets
Debtors
11
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due within 1 year
12
Net current assets
Net assets
13
Funds
14
Restricted funds
Unrestricted funds:
General funds
Total funds		 £
26,613
192,144
218,757
42,958		 2021
£
-
225,287
225,287
175,799
401,086
77,646
323,440
401,086		 2020
£
151
202,613
202,764
20,981
165,497
186,478
7,271
179,207
381,971
115,050
266,921
381,971

Approved by the trustees on 8 June 2022 and signed on their behalf by:

Felicity Jones

Felicity Jones - Chair

13

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)).

Money for Madagascar meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Going concern basis of accounting

The COVID-19 pandemic has had a profound impact on the global economy, and whilst in the short term it has not had a significant impact on our financial position the future looks more uncertain. Like most charities, MfM relies on support from a wide range of donors including Trusts and Government Agencies. Competition for these funds is likely to increase due to the combined impact of COVID 19 and the proposal by the UK Government to reduce the percentage spent on Overseas Aid from 7% to 5% of GDP. In addition we have made increased donations to our partners in Madagascar to alleviate some of the impact of the drought and flooding on the island. The trustees have considered the impact of these issues on the charity’s current and future financial position. The charity holds unrestricted, general reserves of £323,440, including a cash balance of £192,144. The trustees consider that the charity has sufficient unrestricted reserves and cash flow to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved. For this reason, the accounts have been prepared on the going concern basis.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income from trading activities is recognised when merchandise is sold and sent to the donor.

d) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

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Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

1. Accounting policies (continued)

e) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity. A contribution to overheads and programme support are allocated to restricted funds as follows:

Akany Avoko Ambohidratrimo Based on 15% of grants paid. Education for Life Based on 16% of income received.

All other projects that receive restricted income make a contribution of 10% of this income towards MfM core where funds are available. One exception is the 2020/21 famine appeal whereby no contribution to overheads was made and all funds were sent directly to country.

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g) Allocation of support and governance costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These support and governance costs have been allocated between the cost of raising funds and expenditure on charitable activities as set out below, which is an estimate of UK staff time spent on activities.

The majority of the activities of MfM are conducted by our Malagasy Partners and their staff teams in Madagascar. These Malagasy teams spend the majority of their time delivering the charitable activities of our programmes. These charitable activities are not represented in the percentages below, which refer only to UK support costs.

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Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

1. Accounting policies (continued) g) Allocation of support and governance costs (continued)

2021 2021 2020 2020
£ % £ %
Total expenditure 450,228 459,640
Total expenditure on support and 38,652 42,370
governance costs
Proportion of total expenditure 8.6% 9.2%
spent on support and governance:
Allocation of support and governance costs:
Raising funds 12,267 31.7% 17,555 41.4%
Charitable activities
Education for life 7,196 18.6% 6,416 15.1%
Forests and livelihoods 9,985 25.8% 7,384 17.5%
Vulnerable children 4,352 11.3% 4,600 10.9%
Emergency response 4,852 12.6% 6,415 15.1%

h) Grants payable

Money For Madagascar sometimes receives money that has been raised directly for its partners in Madagascar. In these instances the money received is credited to donations income in the statement of financial activities, and the subsequent transfer to the partner is shown as a grant payable. These are not considered to be conduit funds as the trustees of Money for Madagascar retain discretion over the funds that are sent and the projects are subject to the same monitoring as other MfM grants.

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. Depreciation is charged on a straight line basis. The depreciation rate is as follows:

Furniture and equipment

25% per annum straight line

Items of equipment are capitalised where the purchase price exceeds £500.

j) Listed investments

Investments in quoted shares, traded bonds and similar investments are measured initially at cost and subsequently at fair value (their market value). The statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the year.

Investment income from dividends is included in income when receivable.

k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

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Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

1. Accounting policies (continued) l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

m) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

o) Pension costs

Contributions in respect of the charity's defined contribution pension scheme are charged to the statement of financial activities in the year in which they are payable to the scheme. Differences between the contributions payable and contributions actually paid during the year are shown as either accruals or prepayments at the year end.

p) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end.

q) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

17

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

2. Prior period comparatives: statement of financial activities

Income from:
Donations
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Education for life
Forests and livelihoods
Vulnerable children
Emergency response
Total expenditure
Net gains on investments
Net income / (expenditure)
Transfers between funds
Net movement in funds
3.
Income from donations
Individuals
Trusts and foundations
Schools and small groups
Churches and Quakers
Companies
Other donations
Gift aid income
Coronavirus Job Retention Scheme grant
Total donations		 Restricted
£
£
324,784
135,096
-
5,852
-
3,444
324,784
144,392
-
55,478
63,940
5,703
70,600
24,593
167,377
8,214
45,439
18,296
347,356
112,284
-
10,750
(22,572)
42,858
84,308
(84,308)
61,736
(41,450)
Restricted
£
£
90,263
106,472
135,483
48,257
1,300
30
4,038
-
16,961
818
-
5,560
12,290
11,419
-
4,003
260,335
176,559
Unrestricted
Unrestricted		 2020
Total
£
459,880
5,852
3,444
Restated
469,176
55,478
69,643
95,193
175,591
63,735
459,640
10,750
20,286
-
20,286
2021
Total
£
196,735
183,740
1,330
4,038
17,779
5,560
23,709
4,003
436,894

18

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

3.
Income from donations (continued)
Prior period comparative:
Individuals
Trusts and foundations
Schools and small groups
Churches and Quakers
Companies
Other donations
Gift aid income
Total donations		 Restricted
£
£
67,259
60,315
104,329
31,664
1,035
698
136,715
27,023
5,305
1,408
-
5,555
10,141
8,433
324,784
135,096
Unrestricted		 2020
Total
£
127,574
135,993
1,733
163,738
6,713
5,555
18,574
459,880

Government grants

The charity received government support under the Coronavirus Job Retention Scheme to fund charitable activities. The total value of such grants in the period ending 30 September 2021 was £4,003 (2020: £Nil). There are no unfulfilled conditions or contingencies attaching to this grant.

19

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

4. Expenditure

Raising
funds
£
Grants to partners (note 5)
-
Programme support in Madagascar (note 5)
-
UK staff costs (note 7)
Monitoring and evaluation
-
Programme development
-
Education and awareness raising
-
Donor support and fundraising
19,024
Support and governance
-
Fundraising costs:
Donation platform fees
8,222
Investment manager costs
2,879
Other support costs:
Office costs
-
Accountancy
-
Professional fees
-
Depreciation
-
Sub-total
30,125
Allocation of support and governance costs
12,267
Total expenditure
42,392
Total governance costs are £3,780 (2020: £3,120).		 Charitable
activities -
education for
life
£
63,944
9,238
6,083
2,515
1,103
-
1,459
-
-
-
-
-
-
84,342
7,196
91,538		 £
78,136
9,238
7,149
3,971
1,984
-
2,381
-
-
-
-
-
-
102,859
9,985
112,844
Charitable
activities -
forests and
livelihoods		 £
109,908
9,238
2,556
1,763
882
-
1,549
-
-
-
-
-
-
125,896
4,352
130,248
Charitable
activities -
vulnerable
children		 Charitable
activities -
emergency
response
£
57,751
3,078
3,314
1,763
970
-
1,478
-
-
-
-
-
-
68,354
4,852
73,206		 Support and
governance
costs
£
-
-
-
-
-
-
27,793
-
-
6,304
3,780
624
151
38,652
(38,652)
-		 2021 Total
£
309,739
30,792
19,102
10,012
4,939
19,024
34,660
8,222
2,879
6,304
3,780
624
151
450,228
-
450,228

20

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

4.
Expenditure (continued)
Prior year comparative
Grants to partners (note 5)
Programme support in Madagascar (note 5)
UK staff costs (note 7)
Monitoring and evaluation
Programme development
Education and awareness raising
Donor support and fundraising
Support and governance
Fundraising costs:
Donation platform fees
Investment manager costs
Other support costs:
Office costs
Travel and subsistence
Accountancy
Professional fees
Depreciation
Sub-total
Allocation of support and governance costs
Total expenditure		 Raising
funds
£
-
-
-
-
-
24,836
-
10,455
2,632
-
-
-
-
37,923
17,555
55,478		 Charitable
activities -
education for
life
£
45,741
8,410
3,356
1,884
668
-
3,168
-
-
-
-
-
-
63,227
6,416
69,643		 £
68,952
8,410
1,747
2,055
1,165
-
5,480
-
-
-
-
-
-
87,809
7,384
95,193
Charitable
activities -
forests and
livelihoods		 £
156,073
8,410
959
1,028
497
-
4,024
-
-
-
-
-
-
170,991
4,600
175,591
Charitable
activities -
vulnerable
children		 Charitable
activities -
emergency
response
£
45,439
2,805
2,243
1,884
925
-
4,024
-
-
-
-
-
-
57,320
6,415
63,735		 Support and
governance
costs
£
-
-
-
-
-
-
29,375
-
-
7,473
1,692
3,120
559
151
42,370
(42,370)
-		 Restated
2020 Total
£
316,205
28,035
8,305
6,851
3,255
24,836
46,071
10,455
2,632
7,473
1,692
3,120
559
151
459,640
-
459,640

21

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

5. Grants payable

Grants payable
Grants to institutions:
Akany Avoko Ambohidratimo
Akany Avoko Faravohitra
Akany Avoko Bevalala
Akany Hasina
Ankizy Gasy
Andry-Lalana-Tohana
Association AVM
Association Miarintsoa
Association Mitsinjo
College Sewell
Ivato Theological College
SAF - Betampona
SAF - Maintirano
SAF - Medical Centres
SAF - Toamasina
Saffifa Helivao - Gilpin Centre
The Sisters of the Good Shepherd
Topaza FJKM Children's Centre
WTDM - Resilient Sustainable Livelihoods
Sub-total
Grants to individuals:
Total grants payable		 Restricted Unrestricted
£
£
33,240
-
28,612
-
2,181
-
3,257
-
15,230
-
50,612
-
48,580
-
4,408
-
23,846
-
384
-
20,148
-
13,271
-
13,900
-
16,124
-
6,971
-
5,902
-
6,987
-
7,358
-
8,128
-
309,139
-
600
-
309,739
-		 2021
Total
£
33,240
28,612
2,181
3,257
15,230
50,612
48,580
4,408
23,846
384
20,148
13,271
13,900
16,124
6,971
5,902
6,987
7,358
8,128
309,139
600
309,739

Grants payable are to institutions in Madagascar. All grants are paid to fund charitable activities, including funding to run children's homes, centres and schools, and promotion of forest regeneration and disaster resilience. The grants shown above do not include any contribution to core costs.

Amounts paid to Association Miarintsoa (AMI) who represent MfM in Madagascar:

In addition to making grants to the Malagasy NGOs listed above, MfM also has a direct contract with Association Miarintsoa (AMI) to represent MfM in Madagascar. AMI is contracted by MfM to provide services which fulfil our mission of ‘strengthening Malagasy NGOs’. To do this AMI provides a package of training, capacity building, programme development and monitoring and evaluation services. This year MfM spent £30,792 (2020: £28,035) on these services. The details can be found in note 4 of the accounts, under the heading Programme support in Madagascar.

22

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

5. Grants payable (continued) Prior year comparative:

5.
Grants payable (continued)
Prior year comparative:
Restricted Unrestricted
£
£
Akany Avoko Ambohidratimo
35,700
-
Akany Avoko Faravohitra
48,867
-
Akany Avoko Bevalala
7,325
-
Akany Hasina
4,131
-
Ankizy Gasy
27,686
-
Association AVM
36,377
-
Association Miarintsoa
3,500
-
Association Mitsinjo
25,960
-
College Sewell
1,000
-
SAF - Betampona
13,812
-
SAF - Maintirano
19,732
-
SAF - Medical Centres
13,381
-
SAF - Toamasina
14,294
-
Saffifa Helivao - Gilpin Centre
8,504
-
The Sisters of the Good Shepherd
7,243
-
Topaza FJKM Children's Centre
19,665
-
WTDM - Resilient Sustainable Livelihoods
28,296
-
Sub-total
315,473
-
Grants payable to individuals
732
-
Total grants payable
316,205
-
6.
Net movement in funds
This is stated after charging:
2021
£
Depreciation
151
Nil
Nil
Nil
Independent examiner's remuneration:
Accounts preparation and independent examination
3,780
Other services (payroll)
264
Trustees' remuneration
Trustees' indemnity insurance
Trustees' reimbursed expenses		 2020
Total
£
35,700
48,867
7,325
4,131
27,686
36,377
3,500
25,960
1,000
13,812
19,732
13,381
14,294
8,504
7,243
19,665
28,296
315,473
732
316,205
2020
£
151
Nil
792
Nil
3,120
288

In the prior year trustees' reimbursed expenses represent payments to 9 trustees for travel and subsistence costs and other incidental costs relating directly to the charity. There were no reimbursed trustee expenses in the current year as travel was restricted and meetings were held online.

23

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

7. Staff costs

Staff costs were as follows:

Salaries and wages
Social security costs
Pension contributions		 2021
£
82,954
3,536
1,247
87,737		 2020
£
84,258
3,747
1,313
89,318

No employee earned more than £60,000 during the year.

The key management personnel of the charity comprise the trustees and the director. The total employee benefits (salary and pension contributions) received by the charity's key management personnel in the period were £37,811 (2020: £40,667).

Average staff head count 2021
No.
4.00		 2020
No.
4.00

8. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9. Tangible fixed assets

Tangible fixed assets
Furniture and
computer equipment
£
Cost
At 1 October 2020 and 30 September 2021 4,650
Depreciation
At 1 October 2020 4,499
Charge for the year 151
At 30 September 2021 4,650
Net book value
At 30 September 2021 -
At 30 September 2020 151

24

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

10. Investments

Market value at 1 October 2020
Disposal proceeds
Unrealised gains
Realised gains
Movement in cash balance
Market value at 30 September 2021
Historical cost at 30 September 2021
11. Debtors
Gift aid recoverable
Prepayments
Other debtors
12. Creditors : amounts due within 1 year
Trade creditors
Accruals
Other creditors		 2021
£
202,613
(2,879)
25,325
161
67
225,287
162,400
2021
£
23,584
2,237
792
26,613
2021
£
35,679
5,700
1,579
42,958		 2020
£
194,831
(2,630)
10,683
67
(338)
202,613
164,398
2020
£
18,575
2,126
280
20,981
2020
£
72
5,454
1,745
7,271

25

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

13. Analysis of net assets between funds

Analysis of net assets between funds
Investments
Net current assets
Net assets at 30 September 2021
Prior period comparatives
Tangible fixed assets
Investments
Net current assets
Net assets at 30 September 2020		 £
£
-
225,287
77,646
98,153
77,646
323,440
£
£
-
151
-
202,613
115,050
64,157
115,050
266,921
Restricted
funds
Unrestricted
funds
Unrestricted
funds
Restricted
funds		 Total
funds
£
225,287
175,799
401,086
Total
funds
£
151
202,613
179,207
381,971

26

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

14. Movements in funds

Movements in funds
Restricted funds
Education for life
Forests and livelihoods
Vulnerable children
Emergency response
Total restricted funds
Unrestricted funds
General funds
Total unrestricted funds
Total funds		 At 1 October
2020
£
-
32,000
83,050
-
115,050
266,921
266,921
381,971		 Income
£
75,396
38,646
83,286
63,189
260,517
183,340
183,340
443,857		 £
(75,396)
(81,285)
(119,185)
(57,751)
(333,617)
(116,611)
(116,611)
(450,228)
Expenditure		 £
-
-
-
-
-
25,486
25,486
25,486
Gains on
investments		 Transfers
between
funds
£
-
27,477
8,219
-
35,696
(35,696)
(35,696)
-		 £
-
16,838
55,370
5,438
At 30
September
2021
77,646
323,440
323,440
401,086

27

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

14. Movements in funds (continued)

Prior year comparative
Restricted funds
Education for life
Forests and livelihoods
Vulnerable children
Emergency response
Total restricted funds
Unrestricted funds
General funds
Total unrestricted funds
Total funds		 At 1 October
2019
£
-
10,654
42,660
-
53,314
308,371
308,371
361,685		 Income
£
42,471
48,403
189,355
44,555
324,784
144,392
144,392
469,176		 £
(63,940)
(70,600)
(167,377)
(45,439)
(347,356)
(112,284)
(112,284)
(459,640)
Expenditure		 £
-
-
-
-
-
10,750
10,750
10,750
Gains on
investments		 Transfers
between
funds
£
21,469
43,543
18,412
884
84,308
(84,308)
(84,308)
-		 £
-
32,000
83,050
-
At 30
September
2020
115,050
266,921
266,921
381,971

28

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

14. Movements in funds (continued) Purposes of restricted funds

Education for life

This programme is working to improve education in Madagascar’s remote rural primary schools through an integrated programme that provides: water, sanitation, books, teacher-training, environmental education, kitchen gardens, school canteens, solar power and parental literacy and livelihoods courses.

Forests and livelihoods

Through education, training and practical support, we enable farmers and forest dwellers to provide for their families, whilst protecting and restoring their fragile environment. Urgent attention is now focussed on reforestation, sustainable food security and resilience to climate change. The programme supports the following partners and projects:

Ivato Theological College An Environmental Education Programme for theological students at the College. Mitsinjo Forest Working with Association Mitsinjo to restore indigenous forest and strengthen livelihoods in the Andasibe-Mantadia area.

SAF - Betampona A team of agricultural and development officers work with vulnerable farmers to develop sustainable livelihoods. SAF – Melaky (Maintirano) Working with women’s cooperatives in the far west to restore forests and set up income generating activities for low-income families. SAF – Toamasina Tackling food insecurity and poverty through sustainable agricultural techniques, in the East of Madagascar. Projects target the most vulnerable, including: juvenile prisoners, school children, and women’s cooperatives.

Tree Planting & Maintenance Reforestation project aimed at planting one million trees.

Madagasikara Voakajy (Youth Madagasikara Voakajy is a Malagasy NGO that leads a project for Lemurs project) enabling youths to lead lemur conservation in eastern Madagascar. This project is mainly funded by a Darwin Initiative grant that MfM helped to secure but we also receive restricted donations from individuals for this project. The project aims to equip 200 youths to be conservation leaders.

29

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

14. Movements in funds (continued) Purposes of restricted funds (continued)

Vulnerable children

This programme transforms the lives of vulnerable children in and around the capital. Orphaned, abandoned, abused, sick and homeless children receive shelter, food, healthcare, education, water, sanitation and loving care. The programme supports the following partners and projects:

Akany Avoko Ambohidratrimo A home providing care for 117 vulnerable children aged 0 – 21.

Akany Avoko Bevalala

A home for 33 destitute boys and a subsidiary of Akany Avoko Ambohidratrimo.

Akany Hasina A non-residential after-school club providing homework support, environmental and cultural education.

Ankizy Gasy

College Sewell

SAF Medical Centres A network of pharmacies across the country providing accessible and affordable medical treatment.

30

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

14. Movements in funds (continued) Purposes of restricted funds (continued)

Safety Net Fund

Makes small grants to help people in need. Mainly aimed at helping graduates from Akany Avoko Ambohidratrimo and Akany Avoko Faravohitra but may also be used for individual children at the children’s centres in a case of particular need. These needs will typically be medical emergencies as well as training and employment opportunities.

Saffifa Helivao - Gilpin Centre

Provides assistance to vulnerable children via children’s centres.

Sisters of the Good Shepherd A day centre providing education, food and medical care to young street children and vocational training to vulnerable teenage girls.

Topaza FJKM Children’s Centre for orphans and vulnerable children run by the protestant Centre church. This grant from the Union of Welsh Independents bicentenary appeal will improve food security through the launch of a sustainable farm project.

Vulnerable Children and Various small projects supporting children and families and Families – Other Projects schools.

Emergency response

This programme is for specific responses to major appeals. In 2020/21 this was the Covid-19 pandemic and the famine in the south of Madagascar. In previous years appeals have been necessary to respond to other relief needs e.g. cyclone.

Transfers between funds

Transfers between funds represent contributions to grants payable made by the charity's unrestricted general reserves.

31

Money for Madagascar

Notes to the financial statements

For the year ended 30 September 2021

15. Related party transactions

Irenee Rajaona-Horne, Director of MfM, who is the daughter-in-law of Stephen Wilkinson, Trustee, received a salary in the year of £37,811 (2020: £40,667).

Money for Madagascar uses office space in the home of Irenee Rajaona-Horne and as such makes a contribution to services of this space. During the year ended 30 September 2021, the contribution to office services cost was £1,800 (2020: £2,239). No amounts were outstanding at the year end.

16. Financial instruments

Financial assets measured at fair value 2021
£
225,287		 2020
£
202,613

Financial assets measured at fair value comprise listed investments.

32