## **PENHA REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2022** 

**Registered Charity no: 1038957 Registered Company no: 02658932** 

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## **PENHA CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] DECEMBER 2022** 

|**Page**||
|---|---|
|**No.**|**Content**|
|3|Charity information|
|4 to 8|Trustees Report|
|9|Independent examiner’s report|
||Statement of financial activities (including the income and|
|10|expenditure account)|
|11|Balance sheet|
|13||
|to18|Notes to the accounts|



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## **PENHA CHARITY INFORMATION 31 DECEMBER 2022** 

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). 

## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** 

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. 

## **TRUSTEES** 

**The trustees in office in the year were as follows: - Dr. Lulsegged Abebe - Chairperson Dr. Zeremariam fre - Treasurer Ms Nicole Kenton Ms Roda Ibrahim Ms Sophie Walsh** 

**Secretary Dr. Bereket Tsegay** 

## **Registered Office** 

1 Laney Building, Bourne Estate, Portpool Lane, London EC1N 7UL www.penhanetwork.org **00442072420202** 

## **Independent examiner** 

Md Iqbal Hossain MBA, ACCA Chartered Certified Accountant B K Community Accountancy Ltd. 124 City Road, London. EC1V 2NX. 

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## **PENHA REPORT OF TRUSTEES 31 DECEMBER 2022** 

## **Objectives** 

The principal activities of the charity in the period under review have been to promote sustainable development among pastoral and agro-pastoral communities through gender equality, resilience, enterprise and innovation, and regional cooperation across the Horn of Africa. PENHA works at the grassroots and policy levels to empower pastoralist communities to play a full role in their own development. On the UK side, it has focused on youth and diaspora programmes. 

## **ACHIEVEMENT AND PERFORMANCE 2022** 

## **PENHA HQ** 

PENHA HQ carried out programme, management, fundraising and communication activities, including providing expert advice to PENHA country offices, locally based organisations, and individuals in the Horn region and in the UK. This report covering the period January-December 2022 has brought unprecedented challenges related to the conflicts, political violence and social unrests in the Horn of Africa and ongoing environmental concerns. PENHA has finalised its switch from registration from a charitable company to a charitable incorporated organisation (CIO). This has been conducted with the support of Latham & Watkins, a legal firm which provided a pro-bono service to PENHA. PENHA, with financial support from the Community Fund UK, continued to implement a project focusing on issues of sexual consent among young migrants from the Horn of Africa who are now based in reception centres in Kent and attend local colleges. With half of the project activities delivered, the young asylum seekers and refugees expressed their appreciation for creating such an open platform to discuss issues related to sexual education in understanding how the law work in hosting communities. 

Meanwhile, PENHA continued its partnership with academic institutions in the UK including University College London (UCL). As part of PENHA’s public engagement strategy, regular updates have been published on its digital media, and an e-newsletter has been distributed. A Memorandum of Understanding has been agreed with the Somali Advice and Forum for Information. An exploratory meeting was held with the Leeds Refugee Forum with opportunities to follow-up on future co-operation. PENHA continued developing its partnerships with academic institutions in Ethiopia and the Horn region. Strengthening its work on the animal welfare and livelihoods improvements of the pastoralist and agropastoralist communities and a research associate initiated and worked on a veterinary project with the Elnet Foundation in Ethiopia. 

Funded by the Netherlands Organisation for Scientific Research (NWO), the Social Protection for Inclusive Development in Afar Region of Ethiopia (SPIDA) project with its consortium member of PENHA, the Development Planning Unit of University College London and Adigrat University of Ethiopia has published a book with Routledge – ‘ _Social Protection, Pastoralism and Resilience in Ethiopia: Lessons for Sub-Saharan Africa’_ . It serves as a useful tool for academics and practitioners concerned with social protection in subSaharan Africa. 

PENHA was severely hit by the passing of Kees Maxey, one of our longest-serving supporters and a former Secretary. Another Trustee Nicole Kenton was unfortunately taken seriously ill towards the end of the year which affected her ability to support PENHA’s work to the same extent as before. 

PENHA’s Patron Joanna Lumley continues to support the work of the charity. 

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## **Ethiopia** 

In 2022, PENHA-Ethiopia continued the knowledge management and policy development work under the TBI program. PENHA worked closely with partners CIFOR-ICRAF and in collaboration with Ethiopian Forestry Development (EFD) under the Ministry of Agriculture (MoA). The livelihoods of smallholders and pastoralist depend on the natural resource base. Our approach to drylands restoration puts people and livelihoods at the centre, with a set of actions that integrate livelihoods and conservation - combining trees, Farmer Managed Natural Regeneration (FMNR), agro-forestry, livestock, and water. 

_National Drylands Restoration Strategy – a great success and a basis for further work:_ PENHA led a participatory process that culminated in the endorsement of the National Drylands Restoration Strategy by the Ministry of Agriculture. This is a major landmark, reflecting the Government of Ethiopia’s increased commitment to the drylands and their importance in climate change mitigation. After securing official approval of the final document from department heads, the Minister of Agriculture and the Director-General of Ethiopian Forestry Development (EFD), the Strategy was jointly published with MoA. Drylands restoration plays a major role in achieving Ethiopia’s Nationally Determined Contribution (NDC) under the Paris Agreement. After the 27th Conference of the Parties of the UNFCCC (COP 27), greatly increased international funding will be made available for CC mitigation actions, and it is to be hoped that this Strategy will provide a basis for the direction of such funding to Ethiopia’s drylands. PENHA is grateful to Ato Kebede Yilma, Director-General of EFD and his deputy Dr Motuma Tolera, as well as to H.E. Prof. Eyasu Elias, State Minister of Agriculture, for their support and guidance. 

_Developing regional strategies for Afar, Oromia and Somali regions_ **:** Dr Motuma Tolera of EFD also assisted PENHA and CIFOR-ICRAF in developing a framework for the cascading of the Strategy to the regions. Regional task teams have developed strategies for Afar, Oromia and Somali regions. These have been officially endorsed by Awol Arba, President of Afar Region, Mustafa Mohammed Omar Agjar, President of the Somali regional government, and by the regional government of Oromia. These regional strategies establish multi-stakeholder platforms for the implementation and coordination of actions on the ground. The regions are now able to access federal government funds allocated to restoration. 

_Risk Assessment and Landscape Selection_ **:** War in Tigray made it impossible to work on the ground in the Tigray and Afar regions. We continued to assess the situation in both regions, while completing analysis for a new potential landscape. A new ‘engagement landscape’ was identified in Oromoia, bordering the pastoral Afar Region, with Wondo Genet College as a knowledge centre. The return to peace at the end of 2022 means that it should be possible to resume planned landscape-level activities in 2023. 

**Policy-oriented studies:** PENHA conducted a set of studies on key drylands issues, with these studies being conducted in ways that support on-going policy processes, bringing together policymakers and practitioners in workshops conducted for each study. 

_Community Rights (land and forest tenure)_ **:** A National Stakeholder Workshop was conducted that enabled us to gather a wide range of views from different regions, NGOs, development agencies and governmental institutions. The study was reviewed by task team members and partners CIFOR-ICRAF. The process of conducting the study enabled us to feed insights into the on-going revision of forest regulations by EDF, influencing policy in ways that strengthen community rights. Ethiopian Forestry Development participated and have requested a policy brief based on the study, to assist them in further policy development. 

5 



_Charcoal Production and Trade_ **:** A comprehensive review was conducted by a leading national expert, in collaboration with PENHA and CIFOR-ICRAF (Center for International Forestry Research & World Agroforestry) staff members. 

_Frankincense Value Chain Development_ **:** National and Regional workshops were conducted with relevant value chain actors. This generated new and useful insights and information. The study produced a strong set of recommendations for specific actions that support value chain development. 

_Invasive Tree Management and Control_ **:** A national-level workshop was conducted, with the participation of EFD. The study was completed and submitted for expert review by Nick Pasiecznik. EFD have highlighted the need to address the spread of Lantana Camara as well as Prosopis Juliflora. 

_Wildfire Management Programme_ : Under this Tropenbos International (TBI) / Dutch Ministry of Foreign Affairs-led program, PENHA has partnered with CIFOR-ICRAF to develop an integrated fire management system that provides for coordinated action to control wildfires, while accommodating the use of fire by smallholders and pastoralists as a resource management tool. In the first analytical phase of the program, a national workshop was conducted and two studies were produced. A comprehensive review has been produced, with updated MODIS data on the pattern of wildfire incidence. PENHA also contributed an article on ‘Fire Management in Ethiopia: past, present and future’ for Tropical Forest Issues. 

PENHA’s partnership with CIFOR-ICRAF has proved vital and has enabled us to engage actively with Ethiopian Forestry Development and the Ministry of Agriculture at the highest levels. Dr Habtemariam Kassa of CIFOR and Niguse Hagazi have provided valuable guidance and analytical inputs throughout. The program has also benefited greatly from the participation of veteran drylands expert Dr Kidane Giorgis. In developing the drylands restoration strategy, we have had the privilege of working closely with dedicated professionals from six regions over a two-year period. In a time of war and multiple crises, it is inspiring that we were able to come together with a shared purpose and sense of solidarity. 

_Visit to Wondo Genet College of Forestry (Sidama Region/Oromia Region):_ A PENHA team held discussions with senior staff members and the Dean. A Memorandum of Understanding was developed, and a range of issues was discussed, including drylands development, wildfire management and the wildfires that occur frequently in the vicinity of the college. 

_Green Legacy Initiative (GLI) Tree Planting event at Wondo Genet College:_ PENHA participated in an event organised by Wondo Genet College (WGC) under the Prime Minister’s Green Legacy Initiative (GLI). In an interview for local radio, PENHA and partners emphasised the need to plant “the right trees, in the right places, with the right management”. Community groups from several regions participated, planting seedlings in selected locations. 

_GIZ “DREAM” workshop - Communication, Capacitating and Coordination (Adama, March 16 2022):_ PENHA participated in this important workshop alongside key stakeholders in major drylands programs across three regions, and helped to draft a declaration emphasizing the importance of coordination and participation. The central issue here is the need to enhance the effectiveness and impact of drylands programs. A recent report described how billions have been spent in the Somali Region with little or no impact, beyond deepening dependency and reliance on humanitarian aid and safety net programmes. 

_Engagement with Jigjiga University - Somali Region_ **:** PENHA’s Sadia Ahmed participated in a conference on drylands development and signed a Memorandum of Understanding with the 

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university, committing both parties to share information and seek to develop joint initiatives. PENHA also held meetings with local civil society organisations, with agreement in principle to collaborate. 

## **Somaliland** 

_Collaboration with Jigjiga University (Ethiopia):_ The PENHA-Somaliland Country Representative gave a very well received presentation at the Drylands Development Conference held by Jigjiga University in Ethiopia’s Somali Region. She described PENHA’s research and policy work, as well as project implementation in Somaliland, centred on livelihoods, water supply and natural resource management. She noted that as Ethiopia’s Somali Region and Somaliland are closely connected socially, economically and in terms of resource use that there is great scope for collaboration on research, programs and policy under the Intergovernmental Authority for Development (IGAD) framework. In addition to collaboration in Ethiopia, PENHA-Somaliland hopes to partner with Jigjiga University on research and policy work in Somaliland. 

PENHA-Somaliland continues to implement projects on the ground at the same time as contributing to policy development. 

_UNDP livelihoods project with women’s groups – fodder and milk production_ **:** Entitled ‘Support for Integrated Water Resources Management to Ensure Water Access and Disaster Reduction for Somaliland’s Agro-Pastoralists Project’, the project focuses on women entrepreneurs and supports local economic development in Beer, Habariheshay, and Ceelbilcile of the Togdheer and Sool regions. It aims to help women’s groups strengthen a sustainable business based on the production and sale of livestock value chain products. PENHA will provide training and equipment for fodder and milk production. 

_Gender and Social Inclusion (GESI):_ PENHA-Somaliland continues to work with the British government’s Department for International Development (DFID)–supported Somaliland Development Fund (SDF) on GESI analysis. PENHA is conducting studies that will shape programs related to water, natural resource and agricultural production. Social inclusion aims to ensure that the needs and priorities of women, different social groups including minorities and the disabled, as well as young men and women are addressed in program design and service delivery. 

_Seawater Greenhouse Project_ **:** Rehabilitation work on site is progressing, with a substantial re-design. Collaboration with the Berbera Electricity Company is ongoing. PENHA is collaborating with the Norwegian Institute for Water Research (NIVA) and Consortium members on new funding proposals. 

## **Sudan** 

PENHA has continued to collaborate with the Pastoralist Environment Association in Kassala State (PEAKS), the Animal Production and Resource Centre (APRC) and the Khartoum and Kassala based universities. The partnerships have been focusing on developing joint areas of intervention that address the critical livelihood challenges of pastoral communities in Sudan. PENHA has supported the communities through capacity building, natural resources management, innovation and evidencebased researches including increased livestock productivity through utilisation of the invasive Prosopis Juliflora. Furthermore, PENHA HQ staff and trustees held meetings with the Sudan-based Regional Centre for Development and Training of Civil Society (RCDCS) with a view to establishing a joint project in Sudan. 

## **Uganda** 

PENHA has continued its activities in national, regional and international policy forums through our Focal Point Person (FPP) in Uganda. 

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_Participation in the Coalition of Pastoralists Civil Society Organizations (COPACSO) Strategic Plan for 2022 – 2027_ **:** As a member of the COPACSO, our FPP participated in this strategic planning meeting discussing the strategy for the period 2022-2027. COPACSO aims to be a leading coalition for advancing pastoralism in Uganda and thus looked at pastoralism through a Normative Lens and laid out the strategy drivers and direction. After identifying the core constituency and geographic scope, the following thematic areas were focused on: Pastoralism and land use; Pastoralism and Investment; Pastoralism and Emerging Technologies; Pastoralism and Climate Change. 

_East Africa Indigenous Peoples’ Land Summit, Nanyuki, Kenya, 21–25 November, 2022_ **:** PENHA’s FPP joined four other COPACSO members at the East Africa Indigenous People’s Land Summit which was co-convened by the Indigenous Movement for Peace Advancement and Conflict Transformation (IMPACT) Kenya and Pastoralists Alliance for Resilience and Adaptation in Northern Rangelands (PARAN) Alliance in collaboration with other partners. The Summit was held under the theme: _‘Amplifying Collective Voices of Indigenous Peoples through Inclusive Dialogues and Learning to Enhance Land Rights for Livelihoods and Conservation in East Africa’._ About 200 IPS Community delegates from East Africa, high level representatives from the African Union, Regional Economic Communities, National and County Governments, development Actors, Civil Society Organisations, Private Sector, Researchers and the Academia participated. 

_Advocacy for Indigenous Breeds (i.e. Ankole Long Horn Cattle):_ PENHA Uganda’s Focal Point Person continued work on the reviving of the Ankole Long Horn Cattle by having one-on-one talks with several stakeholders. Due to our continued advocacy for the promotion of the indigenous breeds, in December we received a donation of an Ankole Long Horn Bull from one of the cattle breeders in Western Uganda. 

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## **PENHA Charitable Incorporated Organisation (CIO) Year ended 31 December 2022** 

## **INDEPENDENT EXAMINER’S REPORT** 

I report on the accounts of the company for the year ended 31st December 2022, which are set out on pages 10 to 18. 

## **Respective responsibilities of Board of Directors and examiner:** 

The Board of Directors (who are the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. The Board of Directors consider that an audit is not required for this year under the 2011 Act and that an independent examination is needed. 

Having satisfied myself that the Company is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: 

- examine the accounts under section 145 of the 2011 Act; 

- to follow the procedures laid down in the general Directions given by the Company Law of the 2011 Act; and 

- to state whether matters have come to my attention. 

## **Basis of independent examiner's report** 

My examination was carried out in accordance with the general Directions given by the Company Law. An examination includes a review of the accounting records kept by the Company and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as Directors concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below. 

## **Independent examiner's statement** 

In connection with my examination, no matter has come to my attention: 

- which gives me reasonable cause to believe that in any material respect the requirements: 

- to keep accounting records in accordance with section 386 of the Companies Act 2006; and 

- to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met; or 

- to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. 

Date.27/10/2023 

Md Iqbal Hossain MBA, ACCA B K Community Accountancy Ltd. 124 City Road, London. EC1V 2NX. 

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## **PENHA Statement of Financial Activities (Including income and expenditure account) Year ended 31 December 2022** 

|**PENHA**<br>**Statement of Financial Activities**<br>**(Including income and expenditure account)**<br>**Year ended 31 December 2022**|**PENHA**<br>**Statement of Financial Activities**<br>**(Including income and expenditure account)**<br>**Year ended 31 December 2022**|**PENHA**<br>**Statement of Financial Activities**<br>**(Including income and expenditure account)**<br>**Year ended 31 December 2022**|**PENHA**<br>**Statement of Financial Activities**<br>**(Including income and expenditure account)**<br>**Year ended 31 December 2022**|**PENHA**<br>**Statement of Financial Activities**<br>**(Including income and expenditure account)**<br>**Year ended 31 December 2022**|**PENHA**<br>**Statement of Financial Activities**<br>**(Including income and expenditure account)**<br>**Year ended 31 December 2022**|**PENHA**<br>**Statement of Financial Activities**<br>**(Including income and expenditure account)**<br>**Year ended 31 December 2022**|**PENHA**<br>**Statement of Financial Activities**<br>**(Including income and expenditure account)**<br>**Year ended 31 December 2022**|**PENHA**<br>**Statement of Financial Activities**<br>**(Including income and expenditure account)**<br>**Year ended 31 December 2022**|
|---|---|---|---|---|---|---|---|---|
||**Incoming and**<br>**expenditure Resources**|**Note**|**Unrestricted**<br>**Funds**|**Restricted**|**TOTAL**<br>**Funds 2022**|**Unrestricted**<br>**Funds**|**Restricted**<br>**Funds**|**TOTAL**<br>**Funds 2021**|
||**Grant & Donations**|**2**|**7,561**|**421,429**|**428,990**|**7,963**|**250,842**|**258,805**|
||**Total Income**||**7,561**<br>**----------**|**421,429**<br>**----------**|**428,990**<br>**-----------**|**7,963**<br>**----------**|**250,842**<br>**----------**|**258,805**<br>**---------**|
||**Expenditure:**||||||||
||**Direct Charitable**<br>**expenditure**|**4**|**-**|**384,300**|**384,300**|**-**|**172,995**|**172,955**|
||**Project support**<br>**and**<br>**administration**|**5**|**3,570**|**8,335**|**11,905**|**6,534**|**4,724**|**11,258**|
||**Total expenditure**||**3,570**<br>**----------**|**392,635**<br>**-----------**|**396,205**<br>**-----------**|**6,534**<br>**----------**|**177,679**<br>**-----------**|**184,213**<br>**-----------**|
||**Net movement in**<br>**funds**||**3,991**|**28,794**|**32,785**|**1,429**|**73,163**|**74,592**|
||**Reconciliation of**<br>**fund:**||||||||
||**Total funds**<br>**brought forward**||**3,154**|**122,112**|**125,266**|**1,725**|**48,949**|**50,674**|
||**Total funds**<br>**carried forward**||**7,145**<br>**=======**|**150,906**<br>**======**|**158,051**<br>**======**|**3,154**<br>**=======**|**122,112**<br>**======**|**125,266**<br>**======**|



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|**PENHA**<br>**BALANCE SHEET**|**PENHA**<br>**BALANCE SHEET**|**PENHA**<br>**BALANCE SHEET**|**PENHA**<br>**BALANCE SHEET**|||
|---|---|---|---|---|---|
|||||||
|**As at 31 December 2022**||||||
|**Fixed Assets**|**Note**||**2022**||**2021**|
|||**£**|**£**|**£**|**£**|
|Tangible Assets|**9**|**-**|**-**|**24,078**|32,104|
|**Current Assets**||||||
|**Debtors**|**10**||**153,230**|-|27,149<br>--------|
|**Cash at Bank and in hand:**|**13**|**-**||-||
|**London Office**||**7,145**|||13,446|
|**Somaliland Office**||**84,689**|||61,636|
|**Ethiopia Office**||**20,185**|||35,649|
|**Total Cash at Bank and in hand**|||**112,019**|-|**110,731**<br>**----------**|
|**Total Current Assets**|||**265,249**||**137,880**|
|Current Liabilities:**Amount falling due within oneyear**||||||
|**London Office**|**11**||||10,292|
|**Somaliland Office**||**(60)**|||2,322|
|**Ethiopia Office**||**(131,216)**|||**-**|
|**Total Current Liabilities**|||**(131,276)**||12,614<br>**---------**|
|**Net Current Assets**||||**133,973**|**125,266**|
|**Total Assets/Net Assets**||||158,051|157,370|
|**Funds:**||||||
|**Restricted Funds:**||||||
|**London Office**|||||**-**|
|**Somaliland Office**|||**81,514**||**61,636**|
|**Ethiopia Office**|||**69,392**||**60,476**|
|**Unrestricted Funds:**||||||
|**London Office**|||**7,145**||**3,154**|
|**Somaliland Office**|||**-**||**-**|
|**Ethiopia Office**|||**-**||-|
|**Total Funds**|12|||**158,051**<br>**=======**|**125,266**<br>**=======**|



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## **PENHA NOTES TO THE FINANCIAL STATEMENTS 31 December 2022** 

The charitable company is entitled to exemption from audit under Section 477 of the Company Act 2006 for the year ended 31 December 2022. 

The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Company Act 2006. 

The trustees acknowledge their responsibilities for 

- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and 

- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. 

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies. 

The financial statements were approved by the Board of Directors on 27 October 2023 and were signed on its behalf by: 

Dr. Lulsegged Abebe,     Chair - 


Dr. Zeremariam Fre,         Treasurer - 


**The notes on pages 13 to 18 from part of these accounts.** 

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## **PENHA NOTES TO THE FINANCIAL STATEMENTS 31 December 2022** 

## **1. Charity Status** 

**The Charity is a company limited by guarantee, the liability of the members being limited to £1 each. The company is registered as a charity with the charity commission and is exempt from direct taxation.** 

## **2. Accounting Policies** 

## **Basis of the preparing the financial statements** 

The financial statements of the charitable company, which is public benefit entity under 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1January 2015); The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. 

The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. 

## **Incoming resource** 

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. 

## **Grants** 

All grants are from donors for specific projects or for the purpose of defraying staff Costs and for the provision of office facilities and functions. 

## **Resources expended.** 

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. 

## **Overseas Projects** 

Expenditure in respect of overseas projects is changed to the relevant project at the time of liability arise for payment. 

## **Foreign Currencies** 

Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the dates of transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the balance sheet date. 

## **Companies Act** 

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The company has permission under Section60(1a) of the Company’s Act 2006 to omit the word ‘Limited’. 

## **Pension costs** 

The Company operates a defined contribution pension scheme for employees. Pension costs charges in the Statement of Financial Activities represent the contributions payable by the Company in the year. 

## **Depreciation** 

Depreciation is calculated to write down the cost or valuation, less estimated residual value, of all tangible fixed assets with a cost exceeding £500 over their expected useful lives on a strait line basis. 

The rates applicable are: Equipment 25% Furniture, fittings & equipment 20% 

## **Taxation** 

The charity is exempt from corporation tax on its charitable activities. 

## **Fund accounting** 

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. 

## 2. Income from Grants & donations 

|**Grants, donations and**<br>**legacies:**|**Restricted**|**Unrestric**<br>**ted**|**2022**||<br>**Unrestricte**|**2021**|
|---|---|---|---|---|---|---|
|||||**Restricted**|||
||||||<br>**d**||
||||||||
||**£**|**£**|**£**|||**£**|
|**London Office:**|||||||
|**Community Fund -**<br>**Donation**|**9,970**|**7,561**|**17,531**|**-**|**7,963**|**7,963**|
|**Somaliland Office:**|||||||
|**GIZ - Germany**|**-**|**-**|**-**|24,576|-|24,576|
|**Somaliland Development**<br>**Fund(UNDEF)**|**-**|**-**|**-**|16,523|-|16,523|
|**NRF/Salt Mine**|**97,571**|**-**|**97,571**|**136,301**|**-**|**136,301**|
|**Ethiopia Office:**|||||||
|**Tropenbos International**|**313,888**|**-**|**313,888**|**73,442**|**-**|**73,442**|
|**TOTALS**|**421,429**<br>**======**|**7,561**<br>**=======**|**428,990**<br>**=======**|**250,842**<br>**=======**|**7,963**<br>**=======**|**258,805**<br>**=======**|



14 



## **PENHA NOTES TO THE FINANCIAL STATEMENTS 31 December 2022** 

## **3. Management and Administration:** 

||||||**2021**|
|---|---|---|---|---|---|
||**Un-**<br>**titd**|**Restricted**||**2022**||
||**resrce**|||||
||**£**||**£**|**£**|**£**|
|**Depreciation**|**-**||**8,075**|**8,075**|**10,701**|
|**Examination and accountancy**|**-**||**300**|**300**|**300**|
|**Total**|**-**||**8,375**<br>**=========**|**8,375**<br>**=======**|**11,001**<br>**=======**|



## **4. Charitable Activities:** 

|**.**|**Un-**<br>**restricted**|**Restricted**|**Restricted**|**2022**|**2021**|
|---|---|---|---|---|---|
||**£**||**£**|**£**|**£**|
|**Direct Project Cost**|**-**||**382,665**|**382,665**|**171,155**|
|**Professional and Consultancy fees**|**-**||**1,467**|**1,467**|**1,668**|
|**Travel**|||**168**|**168**|**172**|
|**Total**|**-**||**384,300**<br>**========**|**384,300**<br>**========**|**172,995**<br>**=======**|



## **5. Project Support and Administration:** 

||**Costs of**|**Direct**|**Govern**|**Support**|<br>**Total**|**Total**<br>**2021**|
|---|---|---|---|---|---|---|
||**raising**|**Charitable**|**ance**|**costs**|**2022**||
||**funds**|**expenditure**|**costs**||||
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Salary and Volunteer costs**|**-**|**604**|**-**|**-**|**604**|**1,938**|
|**Premises & insurance**|**-**|**8,787**|**-**|**-**|**8,787**|**8,520**|
|**Exchange Loss**|**-**|**-**|**-**|**-**|**-**|**-**|
|**Travel & Fuel cost**|**-**|**-**|**-**|**84**|**84**|**253**|
|**Fundraising and Publicity**||**-**|**-**|**-**|**-**|**-**|
|**Printing, post & Stationary**|**-**|**75**|**-**|**-**|**75**|**399**|
|**Accountancy fees**|**-**|**-**|**900**|**-**|**900**|**300**|
|**Bank Charge **|**-**|**810**|**-**|**-**|**810**|**909**|
|**Telephone & internet**|**-**|**287**|**-**|**-**|**287**|**282**|
|**General Expenses**|**-**|**-**|**-**|**358**|**358**|**345**|
|**Total**|**-**<br>**========**|**10,563**<br>**=========**|**900**<br>**=======**|**442**<br>**=====**|**11,905**<br>**=======**|**11,258**<br>**======**|



15 



## **PENHA NOTES TO THE FINANCIAL STATEMENTS 31 December 2022** 

## **6. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel Staff costs as follows:** 

|**management personnel Staff costs as follows:**|||
|---|---|---|
||**2022**|**2021**|
||**£**|**£**|
|**Salaries and wages**|**1,467**|1,688|
|**Social security costs**|**-**|**-**|
|**Employers contribution to defined pension schemes**|**-**|**-**|
||**1,467**<br>**========**|**1,688**<br>**========**|
|**The Average (full time equivalent) number of persons**<br>**employed during the year was**|**9**|**10**|



## **7. Related party transactions** 

There are no related party transactions to disclose for 2022 (2021: none) There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties. 

## **8. Taxation** 

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

## **9. Fixed Assets** 

|**9. Fixed Assets**|**9. Fixed Assets**||||
|---|---|---|---|---|
|||**Equipment**|**Addition**|**Total**|
|||**£**||**£**|
||**Cost**||||
|**At 1st January 2022:**||-|-|-|
|London Office||-|-|-|
|Somaliland Office||57,074|195|57,269|
|Ethiopia Office||-|-|-|
|**At 31st December 2022**||57,074|195|57,269|
|||**Depreciation**|||
|**At 1st January 2022**||24,970|-|24,970|
|**Charge thisperiod:**|||||
|London Office||-|-|-|
|Somaliland Office||8,026|49|8,075|
|Ethiopia Office||-|-|-|
|**At 31st December 2022**||32,996|49|33,045|
|||**Net book value**|||
|**At 31 December 2022**||24,078|146|24,224|
|**At 31 December 2021**||32,104|-|32,104|



16 



## **PENHA NOTES TO THE FINANCIAL STATEMENTS 31 December 2022** 

## **10. Debtors** 

||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Grants Receivable:|||
|London Office|-|-|
|Somaliland Office|415|27,149|
|Ethiopia Office|119,947|-|
|Total|120,362<br>=========|**27,149**<br>**========**|



## **11. Creditors: Amounts falling due within one year** 

||**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Project costs Accrued (London Office)|**-**|10,292|
|Project costs Accrued (Somaliland Office)|**60**|**2,322**|
|Project costs Accrued (Ethiopia Office)|**120,453**|-|
||**120,513**<br>**=======**|**12,614**<br>**=======**|



## **12. Fund Flow Statements:** 

||**Balance 1**||**Resources**|<br>**Transfers**|**Balance 31**<br>**December**<br>**2022**|
|---|---|---|---|---|---|
||**January**|**Incoming**<br>**R**|**Used**|**Between**||
||**2022**|**esources**||**Funds**||
||**£**|**£**|**£**|**£**|**£**|
|**Restricted Funds:**||||||
|**London Office**|**-**|**9,970**|**(9,970)**|**-**|**-**|
|**Sub - Total**|**-**<br>**-----------**|**9,970**<br>**------------**|**(9,970)**<br>**----------**|**-**<br>**-------------**|**-**<br>**--------------**|
|**Somaliland Office:**||||||
|**NRF/Salt Mine**|**61,636**|**-**|**-**|**-**|**61,636**|
|**NRF**|**-**|**97,571**|**(77,692)**|**-**|**19,879**|
|**Sub - Total**|**61,636**<br>**---------------**|**97,571**<br>**------------**|**(77,692)**<br>**-----------**|**-**<br>**--------------**|**81,515**<br>**------------**|
|**Ethiopia Office:**||||||
|**Tropenbos International**|**60,476**|**-**|**-**|**-**|**60,476**|
|**TBI**||**313,888**|**(304,973)**|**-**|**8,915**|
|**Sub - Total**|**60,476**<br>**-----------**|**313,888**<br>**--------------**|**(304,973)**<br>**------------**|**-**|**69,391**<br>**-----------**|
|**Total Restricted Fund**|**122,112**<br>**========**|**421,429**<br>**========**|**(392,635)**<br>**========**|**-**<br>**=======**|**150,906**<br>**=======**|
|**Unrestricted Funds:**||||||



17 



|**London Office- Donation**|**3,154**|**7,561**|**(3,570)**|**-**|**7,145**|
|---|---|---|---|---|---|
|**Sub Total**|**3,154**<br>**-------------**|**7,561**<br>**-----------**|**(3,570)**<br>**------------**|**-**<br>**----------------**|<br>**7,145**<br>**---------**|
|**Total Fund**|**125,266**<br>**========**|**428,990**<br>**=========**|**(396,205)**<br>**========**|**-**<br>**========**|**158,051**<br>**========**|



## **13. Exchange Rates:** 

||USD|EURO|ETB||
|---|---|---|---|---|
|**30/12/2022**|1.2039|1.1277|64.906||
|Income|**117,465.36**|353,972|||
||**£97,571**|£313,888|||
|Expenses|**93,533.50**|**343,918**|||
||**£77,692**|**£304,973**|||
||||||



- **Benefits in kind** 

There were no benefits in kind in the period. 

- **Independent examination and accountancy services** 

We are so delighted to appoint our new Independent Examiner “BK Community Accountant Ltd”. During the period, the cost of the examination and accountancy services was £900. 

- **Glossary of terms** 

**Restricted funds:** These are funds given to the charity, subject to specific restrictions set by the donor, but still within the general objects of the charity. **Creditors** These are amounts owed by the Company, but not paid during the accounting period. 

- **Debtors:** These are amounts owed to the Company, but not received in the accounting period. 

- **Prepayments:** These are services that the Company has paid for in advance, but not used during the accounting period. 

18