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2022-03-31-accounts

Report and accounts

For the year ended 31 March 2022

SAFERWORLD

Report and accounts for year ended 31 March 2022

Contents

Directors’ report .................................................................................................................................................. 3 Financial review of the year .......................................................................................................................... 7 Risk management .......................................................................................................................................... 8 Future plans ............................................................................................................................................... 9 Reserves policy ...................................................................................................................................... 10 Structure, governance and management ..................................................................................................... 11 Organisation .............................................................................................................................................. 11 Policy and regulations ........................................................................................................................... 12 Governance .............................................................................................................................................. 13 Fundraising .............................................................................................................................................. 13 Public benefit ........................................................................................................................................... 13 Statement of trustees’ responsibilities ............................................................................................. 14 Staff ............................................................................................................................................................ 15 Independent auditor’s report to the members of Saferworld ............................................................... 16 Consolidated Statement of financial activities for year ended 31 March 2022 .............................. 20 Balance sheet as at 31 March 2022 ........................................................................................................... 22 Consolidated Statement of cash flows for year ended 31 March 2022 ............................................ 23 Notes to the accounts for the year ended 31 March 2022 ................................................................... 24

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Directors’ report

Our vision

A just and peaceful world, in which everyone enjoys the rights and freedom to live and thrive with dignity, free from fear and insecurity

Our mission

We work in solidarity with communities, civil society and partners to prevent and transform violent conflict, advocate for peace and social justice, and build safer lives. We work to create environments where the following three ‘peace conditions’ are in place for peace to become the norm:

Our culture and values

As people and as an institution we are committed to creativity, learning and reflection guided by the following culture and values:

Diversity : we listen to and learn from the perspectives of the diverse cultures and communities represented among our staff, our partners and others who we work with around the world. We embrace everyone’s unique background and identity without prejudice or bias.

Inclusion : Saferworld strives to be a place where everyone feels comfortable, included and valued, where difference is respected and where every person has an equal and full opportunity to make a difference through their work.

Solidarity: We act in solidarity with others working collaboratively for positive change. We commit to playing our part in confronting discriminatory attitudes, biases and ‘colonial’ mindsets where they exist in the systems and processes we engage with.

Transparency: we believe that our actions must be transparent and consistent with our principles and mission both inside and outside of the workplace.

Respect : We are aware of the responsibility that comes with holding positions of power in relation to people we work or engage with, including colleagues and those we work with.

Safety : Providing a safe and trusted environment that safeguards our staff, partners and programme participants is a priority for Saferworld.

Long-term strategic objectives

The actions we take are guided by five strategic objectives. Together these contribute to creating necessary conditions for social and political change. They allow us to work flexibly to ensure we remain relevant to specific conflict dynamics:

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We work across countries and territories in Africa, Asia and the Middle East with our partners and a wide network of other associates, using evidence and experience from our programmes to influence decision makers – leading to real changes for those affected by conflict and violence.

Executive Director’s introduction

2021/22 was another tumultuous year where the global challenges we face remain as poignant as ever. It was characterised by the struggle between democracy, authoritarianism and rising repression resulting in mass migration and forced displacement. Few conflicts ended, and those that continued got markedly worse. Regrettably, the year will be defined by how it ended, with the Russian invasion of Ukraine which has seized our attention and brought into stark relief two things. First, the fragility of the rules-based international order which exacerbated conflict and instability; and secondly, how rapidly peacebuilding is under significant pressure by militarisation and humanitarian responses at a time when increased funding gaps are widening and the scale of the response continues to fall far short of the need.

During the year we formally launched our new ten-year organisational strategy – a collective undertaking that makes a bold statement about Saferworld’s future vision and sets out our offer to those working to prevent and transform conflict, and build lasting just peace. We are working hard to live this strategy, in solidarity with those who are at the forefront of protests demanding justice and the right to live more peaceful lives.

Performance highlights of progress achievements

In the period to 31 March 2022, Saferworld:

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training and capacity-building workshops, mentoring, roundtables, policy discussions and other activities

Highlights of outcomes from 2021–2 to which Saferworld and its partners have contributed include:

Details of our work including regional and policy programme highlights can be found on our website https://www.saferworld.org.uk/.

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Safeguarding

Saferworld has a zero-tolerance policy for any type of abuse, exploitation or harassment of staff members, associates (interns, trustees, consultants and sub-contractors), partners and programme participants. Our duty of care translates into preventing all sexual abuse, exploitation or harassment, other forms of harassment and bullying, with special preventative measures for harm against children and vulnerable adults. We are also committed to responding to all cases of abuse in a confidential, sensitive, survivor-centred and effective manner.

In line with this, we have developed a set of tools to support project-level and organisational safeguarding systems. These include:

All teams at Saferworld use these tools systematically with our partners to enhance safeguarding in our work. We also continue to provide regular training and awareness raising to teams and partners. All staff members take part in a safeguarding induction and a similar session takes place during a project’s inception phase with partners. Teams are asked to be part of an in-depth safeguarding training every two years and partners are also invited. These trainings cover prevention, reporting and response, and contribute to building an organisational culture that mitigates any harm driven by structural power relations, in line with our IDEAS (Inclusion, Diversity, Equality, Anti-Racism, Solidarity) strategy.

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Financial review of the year

Income in the year was £14.1m, a decrease from the £18.8m of the prior year that mainly stems from a reduction in restricted income due to the challenging funding environment brought on by the Covid-19 pandemic.

Our main sources of funding come from a range of government and institutional donors, the largest being the European Commission, the Netherlands, UK, Swedish and US governments. We offer special thanks to Sida for their unrestricted funding support.

Expenditure in the year was £14.8m (2021: £18.3m). Restricted income was £11.4m and restricted expenditure £12.5m, a deficit of £1.1m (2021: £0.5m).

At the year-end, restricted reserves were £1.8m (2021: £3.2m). This is a matter of the timing of receipts and payments of restricted funds accounts.

Unrestricted income in the year was £2.7m (2021: £2.3m) against unrestricted expenditure of £2.3m (2021: £2.2m). Saferworld was able to generate an unrestricted surplus in the year of £0.3M. Unrestricted reserves were adjusted to £1.6M (2021: £1.1M) which was a result of the surplus and transfers from closed restricted grants to unrestricted.

Support costs as a percentage of total expenditure remained flat at around 15% of expenditure.

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Risk management

The trustees have identified the main risks facing the charity as follows:

The trustees update the risk register yearly. Mitigation work undertaken to address the risks cannot alleviate risk altogether and by nature of the work undertaken, the charity does operate in areas of exceptional risk.

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Future plans

There is a continuing need for us to adapt to changes in the external political and economic environment. We remain deeply concerned about the funding environment and will seek to pursue greater resilience through:

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Reserves policy

Reserves are held to ensure Saferworld can sustain long-term commitment to our communities, partners and other stakeholders. Total reserves at 31 March 2022 were £3.5m of which £1.6m were unrestricted and ££1.8m restricted reserves. Our reserves policy:

The current free reserves of £1.6m (2021:£1m). This is higher than the stated reserves policy of £1m. In the next financial year the reserves policy will be reviewed. Due to the potential impact of investments required to upgrade the finance system and some level of financial uncertainty the trustees have elected to maintain a higher level of unrestricted reserves at the current time.

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Structure, governance and management

The Charity is constituted as a company limited by guarantee governed by a Memorandum and Articles of Association.

Organisation

The trustees govern Saferworld by working through the Executive Director and Executive Management Team (EMT) who report on performance against the strategic and operational plans approved by the trustees.

EMT meets regularly to review performance against plan. The organisation structure is reviewed periodically to ensure it is appropriate to deliver on its programmes.

We have staff based in Austria, Belgium, Kenya, Myanmar, Nepal, Kyrgyzstan, Tajikistan, Somalia, Somaliland, South Sudan, Sudan, Uganda, the UK, the US and Yemen.

Subsidiary entities:

Trustees

Godfrey Allen (retired October 2022) Stephanie Blair (Chair) Owen Greene Georg Frerks (retired October 2021) Theresa Hanley (retired October 2022) Lars-Erik Lundin (retired July 2021) Golam Morshed (Treasurer) Ismayil Tahmazov Melanie Ward Monique van Es Anna Henry (appointed November 2022) Christian Leffler (appointed November 2022 Ola Selah (appointed November 2022) Dr Yvonne Jazz Rowa (appointed November 2022)

Secretary

Mathew Van Lierop (from November 2022) Gbenga Coker (resigned 2022)

Executive Director

Paul Murphy

Registered office

Brick Yard 28 Charles Square London, N1 6HT

Company Number

03015948

Partner entities:

Charity number 1043843

Bankers

Barclays Plc

Solicitors

Bates Wells

Auditors

Haysmacintyre LLP

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Policy and regulations

Continuing our response to changing policies and regulations around reporting, data protection, safeguarding and terrorism:

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Governance

The Board meets at least four times a year. Trustees provide ongoing expertise on their particular skill areas, which include finance, policy research, advocacy and communications, charitable law and governance.

Trustees undertake a skills audit with the aim of attracting members with relevant experience and skills to the Board. In appointing new trustees, consideration is given to gender balance as well as the international nature of our work. Nominees meet with the Chair and Executive Director, who recommend appointments to the Board.

On appointment, trustees agree to adhere by our code of conduct and sign a declaration of eligibility form. Each trustee receives a handbook, which includes the Memorandum and Articles of Association, policies and procedures, including conflict of interest, and other guidance. Trustees are required to complete a declaration of interests each year. Trustees are eligible for reappointment every three years at the Annual General Meeting.

One trustee is charged with the responsibility of ensuring any potential conflict of interest is dealt with according to the policy. In the event of any collaborative work between a trustee and Saferworld, this has to be approved by the Board of Trustees prior to the project, with the interested trustee not present for the discussion and decision.

Fundraising

Saferworld does not employ third-party fundraisers and suitable measures are in place to protect vulnerable people. The organisation has a process in place for complaints to be made and this is publicised on the organisation’s website. Saferworld did not receive any complaints in relation to fundraising in the current or prior year.

Public benefit

In reference to Charity Commissions Guidance on Public Benefit, the trustees are confident that our activities, working with individuals, communities and states to reduce and prevent violent conflict meet the public benefit requirement.

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Statement of trustees’ responsibilities

The trustees (who are also directors of Saferworld for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as we are aware:

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Staff

We thank our staff, on whom our success depends for their on-going work and commitment.

We are committed to equality in recruitment, training, promotion and career development. Staff are consulted on a range of issues and each office is encouraged to bring staff together on a regular basis, to discuss current work and future plans.

Our remuneration policy for Key Management Personnel is consistent with our general pay policy, in which we aspire to pay the median market rate for all grades of employee. Pay scales and grade are benchmarked against a range of similar-sized and type of organisation.

In approving this report of the Directors, the Directors are also approving the Strategic Report included here in their capacity as Company Directors.

This report was approved by the Board of Trustees on 21 December 2022 and signed on its behalf by:

Stephanie Blair Chair

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Independent auditor’s report to the members of Saferworld

Opinion

We have audited the financial statements of Saferworld for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is 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).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

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explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 14 the trustees (who are the directors of the charitable company for the purposes of company law and the trustees for the purposes of charity law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent

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Report and accounts for year ended 31 March 2022 charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity and company law applicable in England and Wales and compliance with legislation in the relevant overseas jurisdictions the group operates in, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Charities Act 2011 and consider other factors such as payroll tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the improper recognition of revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at:

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www.frc.org.uk/auditorsresponsibilities.

This description forms

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's member, as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Harper (Senior Statutory Auditor) Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place London EC4R 1AG

2022

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Consolidated Statement of financial activities for year ended 31 March 2022

Notes
Income from:
Donations & Legacies
2
Charitable activities
2
Total
Expenditure on
Raising funds
3
Charitable activities
4
Total
Net income/(expenditure)
Transfer between funds
Net movement in funds
Fund balances brought forward at 1 April 2021
Fund balances at 31 March 2022
11		 Unrestricted
Restricted
Total
Total
funds
funds
2022
2021
£ ‘000
£ ‘000
£ ‘000
£ ‘000
14
-
14
9393
2,643
11,409
14,052
18,728
2,657
11,409
14,066
18,821
138
-
138
336
2,207
12,493
14,700
17,964
2,345
12,493
14,838
18,300
312
(1,084)
(772)
521
244
(244)
-
-
556
(1328)
(772)
-
1,083
3,161
4,244
3,723
1,639
1,833
3,472
4,244

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Consolidated Statement of financial activities for year ended 31 March 2021

Unrestricted Restricted Total Total
funds funds 2021 2020
Notes £ ‘000 £ ‘000 £ ‘000 £ ‘000
Income from:
Donations and legacies 2 93 - 93 118
Charitable activities 2 2,224 16,504 18,728 19,984
------------------ ----------------------- --------------------- ---------------------
Total 2,317 16,504 18,821 20,101
------------------ ----------------------- --------------------- ---------------------
Expenditure on:
Raising funds 3 336 - 336 364
Charitable activities 4 1,905 16,059 17,964 19,707
----------------- ---------------------- ------------------------ ------------------------
Total 2,241 16,059 18,300 20,071
------------------ ------------------------ ------------------------ ------------------------
Net income and net movement in 76 445 521 31
funds
Reconciliation of funds:
Fund balances brought forward at 1 April
2019 1,007 2,716 3,723 3,692
--------------------- ------------------------ ------------------------ ------------------------
Fund balances at 31 March 2020 12 1,083 3,161 4,244 3,723
========== ========== =========== ===========

The financial statements were approved by the Trustees and authorised for issue on 21 December2022 and signed on their behalf by:

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Balance sheet as at 31 March 2022

Notes
CURRENT ASSETS
Debtors
(incl.
intercompany
balances) and prepayments
8
Cash at bank and in hand
CREDITORS: Amounts falling due
within one year
9
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
FUNDS
Restricted funds
11
Unrestricted funds
other funds
11		 2022
Consolidated
3,162
3,610
6,772
(3,300)
3,472
3,472
1,833
1,639
3,472		 2021
Consolidated
2,242
3,523
5,765
(1,521)
4,244
4,244
3,161
1,083
4,244		 2022
Charity
3,944
2,615
6,559
(3,087)
3,472
3,472
1,833
1,639
3,472		 2021
Charity
1,982
3,078
5,060
(816)
4,244
4,244
3,161
1,083
4,244

The financial statements were approved by the Trustees and authorised for issue on 21 December2022 and signed on their behalf by:

Golam Morshed Director and Trustee (Treasurer)

Stephanie Blair Director and Trustee (Chair)

The notes on pages 24 to 35 form part of these accounts.

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Consolidated Statement of cash flows for year ended 31 March 2022

Consolidated Statement of cash
flows for year ended 31 March 2022
Net (expenditure)/ income for the year (as per the statement of financial
activities)
Adjustments to exclude non-cash items:
(Increase) / Dncreasein debtors
Increase / (Decrease) in creditors
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Total cash and cash equivalents at the end of the year		 2022
£'000
(772)
(919)
1,778
87
3,523
3,610		 2021
£'000
521
342
(1,171)
(308)
3,831
3,523

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Notes to the accounts for the year ended 31 March 2022

1 ACCOUNTING POLICIES

a. Basis of Accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the UK and Republic of Ireland (FRS 102) (Second Edition, effective 1 January 2019 – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Saferworld 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(s).

b. Basis of consolidation

The group financial statements consolidate those of the charity and its entities (see Note 13) to 31 March 2022.

c. Preparation of the accounts on a going concern basis

The trustees have considered future budgets and cash flows in the context of the overall organisation’s business plan. This, combined with a strong reserves position and a solid income pipeline combined to result to mean that the trustees have no material uncertainties about the entity’s ability to continue as a going concern for the foreseeable future.

d. Funds

Restricted funds are funds used in accordance with specific instructions imposed by the donor or trust deed.

Unrestricted funds are funds available to the charity for its general purposes. These include funds designated by the trustees for particular purposes where their use remains at the discretion of the trustees

It is the policy of the trustees to retain in unrestricted funds amounts which in their judgement can help to mitigate the short-term effects of income volatility and retain funds to generate sufficient income to meet current and future operational activities of the charity.

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e. Income recognition

This comprises fees receivable from the various activities and investment income. All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income can be measured reliably.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

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

f. Expenditure

Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably.

Expenditure is recognised on an accruals basis as a liability is incurred, inclusive of VAT, which cannot be recovered.

Charitable activities comprise the costs of running the charity’s activities in line with the charity’s objectives.

Support costs have been allocated to charitable activities. Governance activities comprise organisational administration and compliance with constitutional and statutory requirements. Costs include direct costs of external audit, legal fees and other professional advice.

g. 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.

h. Cash at bank and in hand

Cash at bank and in hand includes bank accounts, 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.

i. Creditors and provisions

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.

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j. Vat

The charity is registered for VAT. Irrecoverable VAT is charged to the expenditure heading for which it was incurred.

k. Pension scheme

All permanent UK staff employed by the charity are eligible to join the UK-based defined contribution pension scheme operated by Aviva. The employer contributes 9% of salary provided the employee member 3%.

l. Critical accounting estimates and assumptions

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing

a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

m. Foreign currency

Assets and liabilities of overseas entities are included in the group balance sheet after converting to sterling at the year-end exchange rate. Income and expenditure transactions are included in the Statement of Financial Activities after converting to sterling at the average exchange rate for the year. Any foreign exchange gain/loss shown in the Statement of Financial Activities represents the gain/loss arising on converting the opening balance sheets of overseas branches at the year-end exchange rate.

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2 INCOME
Restricted Funds
2022
£'000
The State of the Netherlands (Netherlands
Embassy, Juba)
1,535
FCDO, UK
3,494
European Commission
1,725
UNPBF
186
US Department of State
413
UK Foreign and Commonwealth Office
279
USAID
408
Other European governments
454
United States Institute for Peace
173
Open Society Institute
179
RTHINKING
223
Ministry of Foreign Affairs of Sweden
1,650
Joseph Rowntree Charitable Trust
212
Other smaller grants < £100,000
478
11,409
Unrestricted Funds
Swedish International Development Agency
2,381
Other income (consultancy)
262
Donations
14
2,657
Total Income
14,066		 2021
£'000
2,568
5,741
2,327
166
1,753
8
235
-
162
-
-
3,189
140
215
16,504
2,185
39
93
2,317
18,821

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Report and accounts for year ended 31 March and accounts for year ended 31 March 2022
3 FUNDRAISING COSTS 2022 2021
£ ‘000 £ ‘000
Staff costs 114 273
Direct costs 1 22
Support and governance costs 23 41
138 336
4 COSTS OF CHARITABLE
ACTIVITIES
2022 2021
£ ‘000 £ ‘000
Staff costs 4,976 6,230
Direct costs 7,503 9,571
Support costs 2,221 2,163
14,700 17,964
5 SUPPORT COSTS
Note 2022 2021
£ ‘000 £ ‘000
Support and Governance costs
allocated to:
Charitable activities 4 2,221 2,163
Cost of generating funds 3 23 41
2,244 2,204
2022 2021
£ ‘000 £ ‘000
Support costs consist of:
Staff costs 1,709 1,492
Office costs 176 408
Other charitable expenses 273 202
2,158 2,102

28

SAFERWORLD

Report and accounts for year ended 31 March 2022

GOVERNANCE COSTS

GOVERNANCE COSTS
2022 2021
£ ‘000 £ ‘000
Staff costs 45 43
Audit 41 30
Other expenditure - 29
86 102
Net income for the year is stated after charging :
Auditors' remuneration - statutory audit 29 24
Auditors' remuneration - other fees - 12
6 STAFF COSTS
2022 2021
£ ‘000 £ ‘000
Wages and salaries 5,451 6,772
Social security 469 515
Pension costs 418 452
Other staff costs including partner costs 504 298
6,842 8,037
The average number of employees employed by the group and charity was:
2022 2021
Number Number
Programmes 127 180
Fundraising 9 7
Governance and support 10 10
146 197

The number of the employees during the year, whose gross pay and benefits (excluding employer’s national insurance and pension contributions) fell within the following bands, was:

2022 2021
Number Number
£60,000 - £69,999 6 3
£80,000 - £89,999 1 1

29

SAFERWORLD

Report and accounts for year ended 31 March 2022

Amounts paid to the Executive Management team (including pension and benefits) amounted to £316k (2021: £303k)

7 TRUSTEES REMUNERATION AND EXPENSES

No trustee received remuneration or expenses during the year (2021: Nil)

8. DEBTORS

Prepayments
Amounts due from donors
Inter-charity balances
Other debtors		 GROUP
2022
2021
£’000
£’000
161
120
1,602
992
-
-
1,399
1,130
3,162
2,242		 CHARITY
2022
2021
£’000
£’000
101
35
1,186
992
895
384
1,762
180
3,944
1,591		 CHARITY
2022
2021
£’000
£’000
101
35
1,186
992
895
384
1,762
180
3,944
1,591
1,591

9 CREDITORS: amounts falling due within one year

CREDITORS: amounts falling due within one year
GROUP
2022
2021
£’000
£’000
Creditors
526
666
Other taxes and social security
29
22
Accruals
319
584
Deferred income
2,426
249
3,300
1,521
Deferred Income
Balance as at 1 April
Amount released to income in the year
Amount deferred in the year
Balance as at 31 March		 CHARITY
2022
2021
£’000
£’000
310
74
-
-
133
434
2,644
249
3,087
757
2022
2021
£’000
£’000
249
1,748
(249)
(1,748)
2,426
249
2,426
249
_ ___
3,087
2022
£’000
249
(249)
2,426
2,426
_____

30

SAFERWORLD

Report and accounts for year ended 31 March 2022

10 - FUNDS
Restricted funds
US INL Tajikistan CP 16-17
Aid direct S. Sudan Comm. Security
2018-21
DFID - Better Aid in Conflict 19-23
CSSF Myanmar - Strengthening
Comm.Security 19-22
EC YEMEN REBUILDING GOV. IN
YEMEN 2018-2020
EU-Africa-China Dialogue
EC Stabilization and Peace South
Sudan 20-21
Sida Core Support (Sudan) -2019-20
SIDA SOM Building Foundation to
Progress Peace 19-20
SIDA Addressing Drivers of Conflict
Uganda 2020-2024
ARC Sudan 16-21
ARC Somalia 16-21
Irish Aid: Strengthening Inclusive
Develop. 18-19
USAID Kenya Building Bridges 19-21
JRCT Peace & Right Based
Response2018-20
JRCT-Charting UK/EU arms control
19-2021
JRCT-Programme for Security Policy
Change 20-21
Other smaller projects
Total restricted funds
Total unrestricted funds(Note 11)
Total reserves		 1 April
2021
Transfers
Income
Expenditure
31
March
2022
£'000
£'000
£'000
£'000
£’000
(73)
286
39
(252)
-
3
-
477
(480)
-
64
-
1,006
(1,074)
(4)
25
-
(25)
0
-
(23)
8
478
(464)
(1)
0
(1)
322
(262)
59
95
-
403
(498)
-
100
-
0
(12)
88
(136)
-
441
(172)
133
1,839
-
4
(1,224)
619
708
(162)
1,069
(1,403)
212
677
(258)
804
(1,223)
-
(10)
-
-
10
-
(92)
-
408
(331)
(15)
29
(29)
55
(55)
-
14
(14)
64
(64)
-
14
(14)
93
(73)
20
(73)
(60)
5,771
(4,916)
722
3,161
(244)
11,409
(12,493)
1,833
1,083
244
2,657
(2,345)
1,639
4,244
-
14,066
(14,838)
3,472

31

SAFERWORLD

Report and accounts for year ended 31 March 2022

EC Stabilization and Peace – South
Sudan
Dutch – Yemen
Canada – Illicit trade China
UK Aid Direct- South Sudan
Community Security
DFID- Better Aid in Conflict
US INL Tajikistan CP
CSSF- Nepal Peacebuilding project
Women’s Empowerment Cox’s
Bazar
DFID Chase research grant
JRCT Peace and Rights based
responses
JRCT- Arms control
JRCT- Security policy change
Sida – Uganda: addressing Drivers
of Conflict
Myanmar CSSF- Strengthening
Community Security
DFID- Promoting Sustainable
Peace Kenya
USAID Kenya Building bridges
Irish Aid
Sida- Sudan
Netherlands government:
Addressing Root Causes Somalia
Netherlands government:
Addressing Root Causes Sudan
EU–Africa-China dialogue
US State Dept. Kyrgyzstan,
Community Security Effectiveness
EC Kyrgyzstan
UNPBF – Kyrgyzstan
Sida – Somalia Building foundation
for peace
EC Rebuilding Governance in
Yemen
Other smaller projects
Total restricted funds
Total unrestricted funds (Note 11)
Total reserves		 1 April
2020
Income
Expenditure
31 March
2021
£'000
£'000
£'000
£'000
(28)
878
(755)
95
(49)
59
(10)
-
(63)
71
(8)
-
(77)
1,398
(1,319)
2
-
1,486
(1,422)
64
(280)
1,520
(1,313)
(73)
(62)
74
(12)
-
87
(86)
(1)
-
(2)
1,155
(1,153)
-
25
26
(23)
28
16
38
(39)
15
-
46
(33)
13
-
1,889
(50)
1,839
24
891
(891)
24
24
139
(164)
(1)
(23)
235
(303)
(91)
115
-
(125)
(10)
534
699
(1,133)
100
(247)
2,417
(1,494)
676
1,612
-
(904)
708
181
-
(181)
-
302
202
(387)
117
(130)
142
(12)
-
(18)
120
(102)
-
(22)
249
(363)
(136)
648
1,309
(1,980)
(23)
149
1,547
(1,882)
(186)
2,716
16,504
-16,059
3,161
1,007
2,317
-2,241
1,083
3,723
18,821
-18,300
4,244

32

SAFERWORLD

Report and accounts for year ended 31 March 2022

11 MOVEMENT OF FUNDS – GROUP AND CHARITY

At 1
April
2021
£ '000
RESTRICTED
All restricted funds
3,161
Total restricted funds
3,161
UNRESTRICTED
Swedish International
Development Agency
-
Other unrestricted income
1,083
Total unrestricted funds
1,083
TOTAL FUNDS
4,244
MOVEMENT OF FUNDS – GROUP
AND CHARITY 2021
At 1
April
2020
£ '000
RESTRICTED
All restricted funds
2,716
Total restricted funds
2,716
UNRESTRICTED
Swedish International
Development Agency
-
Other unrestricted income
1,007
1,007
TOTAL FUNDS
3,723		 Income
£ '000
11,409
11,409
2,381
276
2,657
14,066
Income
£ '000
16,504
16,504
2,185
132
2,317
18,821		 Expenditure
£ '000
(12,493)
(12,493)
(2,207)
(138)
(2,345)
(14,838)
Expenditure
£ '000
(16,059)
(16,059)
(2,185)
(56)
(2,241)
(18,300)		 Transfer
s
£ '000
(244)
(244)
-
244
244
-
Funds
transfer
£ '000
-
-
-
-
-
-		 At 31
March
2022
£ '000
1,833
1,833
174
1,465
1,639
3,472
At 31
March
2021
£ '000
3,161
3,161
-
1,083
1,083
4,244

The Swedish International Development Agency (Sida) provided £2,381k (2021: £2,185k) to address small arms and light weapons, security sector reform, international transfer controls and impact assessment.

Other unrestricted income is donations from individuals and small grants from foundations and governments.

33

SAFERWORLD

Report and accounts for year ended 31 March 2022

Transfers made in the year relate to book keeping adjustments made as a result of updating our database for various old/closed projects. The net effect of this is as shown and resulted in the transfer for £244k (2021:£nil) from Restricted to Unrestricted funds

12 ENTITIES INCLUDED IN GROUP CONSOLIDATED RESULT

Saferworld presents the results of all group entities

All grants / contracts are held by the UK charity, which provides funds to overseas group entities. These entities have limited reserves in their own right with income largely equal to expenditure, subject to timing differences. The entities are listed below, together with their expenditure for the year. Saferworld US is an independent entity registered as a 501(c)3, shares the objectives of Saferworld and has an independent board with some overlapping trustees. As Saferworld UK does not meet all the criteria for exercising control over Saferworld US these numbers are not included in the Saferworld consolidated accounts.

Where appropriate, a number of entities are subject to independent local examination by external auditors in country.

Saferworld entity 2022 2021
£'000 £'000
Saferworld Kenya 422 637
Saferworld Somalia 1,643 1,835
Saferworld Uganda 1,515 1,425
Saferworld South Sudan 3,051 3,221
Saferworld Sudan 1,329 238
Saferworld Europe 204 200
Saferworld Tajikistan (closed May 21) 349 1,267
Saferworld Kyrgyzstan 495 419
Saferworld Nepal 14 82
Saferworld Myanmar 157 705
Saferworld Yemen 764 2,055

13 OPERATING LEASE COMMITMENTS

At the end of the year, the charity had commitments under an operating lease on buildings as follows:

Expiry date :
Under one year		 2022
2021
£'000
£'000
60
33

34

SAFERWORLD

Report and accounts for year ended 31 March 2022 14 SHARE CAPITAL

Saferworld is a company limited by guarantee and has no share capital. Each member is liable to contribute a sum not exceeding £1 in the event of the charity being wound up.

35