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2021-12-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS Action Against Hunger (UK) Company 03069468 Year ended 31 December 2021

ABOUT ACTION AGAINST HUNGER

Action Against Hunger is building a world where no one dies from hunger. Life-threatening hunger is predictable, preventable and treatable, so a world without it is possible. We tackle it where it hits and lead research to stop it. We work relentlessly to save lives and create a world free from hunger.

OUR MISSION

No one needs to die from hunger. We predict and prevent it. Where it exists, we treat it.

We stop life-threatening hunger in its tracks. By training parents and healthcare workers to spot the signs, we get life-saving care to people who need it. Our research drives forward understanding of how to predict, prevent and treat life-threatening hunger. With unbeatable knowledge and unstoppable determination, we’re taking action against hunger.

A GLOBAL NETWORK

Action Against Hunger UK is part of an international network that operates under the name of Action Against Hunger, with head offices in Canada, France, Germany, India, Spain, the UK and the USA. It also has a fundraising office in Italy. Each Action Against Hunger member is legally independent but shares a common mandate, values, operating principles, quality standards and strategy.

The narrative sections of this report refer to those activities for which Action Against Hunger UK has management responsibility, unless otherwise stated.

The company is a registered charity No. 1047501 (England and Wales) and SC048317 (Scotland). The company is registered in England No. 03069468 and was incorporated on 16 June 1995.

CONTENTS

CONTENTS
WELCOME 5
A SUMMARY OF OUR ACHIEVEMENTS IN 2021 7
OUR WORK AROUND THE WORLD 8
DIRECTOR’S REPORT 10
STRATEGIC REPORT 11
OUR OBJECTIVES IN 2021 13
Raising funds to treat malnourished children and
vulnerable people 14
Sharing our expertise in addressing malnutrition and in monitoring,
evaluation and learning		 16
Responding to the food poverty crisis in the UK 18
Bringing the voices of affected communities to our supporters
and activists		 20
OUR INCOME AND EXPENDITURE IN 2021 22
OUR OBJECTIVES FOR 2022 25
THANK YOU 26
STRUCTURE, GOVERNANCE AND MANAGEMENT 28
FINANCIAL PERFORMANCE 32
RISK STATEMENT 33
STAKEHOLDER ENGAGEMENT 35
STATEMENT OF TRUSTEES’ RESPONSIBILITIES 37
INDEPENDENT AUDITOR’S REPORT 38
FINANCIAL STATEMENTS 42

Cover image: © Peter Caton for Action Against Hunger

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021 I 3

4[|] ANNUAL REPORT 2021

WHY WE DO WHAT WE DO

828 million

1 in 10

Around the world, we produce more than enough food to feed the global population – but 828 million people still go to bed hungry every night

Globally, one in ten people are hungry or undernourished

30 million

2 million

In 2021, 30 million more people were affected by hunger as a result of the Covid-19 pandemic

More than 2 million children die from malnutrition every year

3/4

43 million

Three-quarters of malnourished children under five years do not get the treatment they need

Over 43 million people in 38 countries are now at risk of famine or a food crisis

WELCOME

At the time of writing, Europe is witnessing its first state vs state conflict since World War II, and the continent’s fastest-growing refugee crisis in history as millions of Ukrainians flee their country. Action Against Hunger is responding to the crisis, alongside the many other ongoing crises where populations are on the brink of starvation, such as in Afghanistan, Madagascar, Mali, Somalia, and Yemen. Action Against Hunger has been supporting Afghan populations since 1979, and we continued our work in 2021 – a year in which the Taliban came to power.

We took part in the DEC’s Afghanistan appeal, which was launched in December 2021, and raised over £400,000 in just three weeks. This amount is included in the 2021 Accounts. Our work in Afghanistan reached over 78,000 people with life-saving health and nutrition services, targeting children under the age of five years, and meeting the needs of pregnant or breastfeeding women.

In sharp contrast to the generosity of the UK public for our life-saving work in crisis-hit countries, we sadly experienced a massive reduction in funding from the Foreign, Commonwealth & Development Office (FCDO), whose support for our work fell 90 per cent compared to 2020 levels. This is a direct consequence of the cut in the UK aid budget in the year from 0.7 per cent to 0.5 per cent of GDP. In addition to a lack of new agreements signed in 2021, FCDO also reduced the funding for two grants (in Somalia and Nigeria) that we had signed in prior years and, in 2022, stopped funding a third grant that we were in the process of implementing in Nigeria. The cuts to these grants totalled over £5.7 million and we have accounted for this as a one-off reduction in our total income in 2021. More importantly, this reduced funding meant that we were not able to treat as many malnourished children as we had expected to in the relevant programmes.

Our technical expertise, especially on the treatment and prevention of undernutrition, continued to strengthen. We developed our nutrition strategy, signing long-term agreements with UNICEF and the World Food Programme to help them tackle undernutrition at national level. As Co-chair of the International Coalition for Advocacy on Nutrition (ICAN UK) we played a leading role in advocacy efforts to promote UK aid for nutrition. We briefed MPs and engaged our supporters, including a number of high-profile chefs, in writing to the Prime Minister, Foreign Secretary and MPs on the topic. As a result we convinced the FCDO to commit £1.5 billion to nutrition programmes until 2030.

We also benefited from extraordinary support from the food and hospitality industry. Despite a very difficult year for the hospitality industry because of the Covid-19 pandemic, our annual restaurant fundraising campaign, Love Food Give Food (LFGF), raised £404,000 – a huge £211,000 of which was raised by YO! Sushi, a new partner for 2021 and our biggest LFGF partner ever. In 2020, for the first time in our history, we took the decision to address food poverty in the UK. This was the result of food insecurity rates in the UK rising to become among the highest in Europe. This was a regrettable but necessary step, as we remain a charity driven by needs wherever they are. Given the ongoing food crisis here in the UK, we continued to address food poverty at home in 2021. We are proud to present this report, which gives a snapshot of just some of the successes and challenges of our year.

Jean-Michel Grand Executive Director and Company Secretary

Paul Wilson Chair of Trustees

ACTION AGAINST HUNGER UK I 5

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A SUMMARY OF OUR ACHIEVEMENTS IN 2021

As a network, we worked in 51 countries

Together, we Collectively, assisted 26.3 we ran 686 million people projects

We helped persuade the UK Government to commit to spending £1.5 billion on nutrition, despite deep aid cuts

We carried out nutrition surveys in Bangladesh, Madagascar, Mali, Myanmar, Niger, Pakistan, Somalia and South Sudan

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021 I 7

OUR WORK AROUND THE WORLD

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CANADA UK
BELGIUM
GERMANY
FRANCE
SOUTH CAUCASUS
ITALY
SPAIN AFGHANISTAN
USA
SYRIA
LEBANON
IRAQ NEPAL
OCCUPIED
JORDAN
PALESTINIAN
TERRITORY
MAURITANIA
MALI
HAITI PAKISTAN MYANMAR
GUATEMALA CHAD
HONDURAS SENEGAL YEMEN
NICARAGUA GAMBIA SUDAN BANGLADESH PHILIPPINES
SIERRA LEONE ETHIOPIA
LIBERIA SOUTH SUDAN
IVORY COAST SOMALIA
INDIA
UGANDA
VENEZUELA KENYA
COLOMBIA TANZANIA
PERU BURKINA DEMOCRATIC REPUBLIC
FASO OF THE CONGO
NIGERIA
NIGER MADAGASCAR
CAMEROON ZIMBABWE
CENTRAL AFRICAN
REPUBLIC
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10[|] ANNUAL REPORT 2021

DIRECTOR’S REPORT

its governing document. The Trustees’ Annual Report provides a detailed account of the significant activities undertaken by the charity to carry out its purposes for the public benefit. These activities have been carried out in line with the charity’s objects, these being to relieve poverty, deprivation and distress throughout the world, and to relieve hunger, whether chronic or temporary, by way of emergency intervention and/or establishing rehabilitation programmes.

For more than 40 years, across 51 countries, Action Against Hunger has led the global fight against hunger. We save the lives of malnourished children. We ensure people in need can access clean water, food, healthcare and training. And we enable entire communities to be free from hunger.

The directors of Action Against Hunger UK – hereafter referred to as Action Against Hunger – present their annual report and audited accounts for the year ended 31 December 2021, and confirm they comply with the Companies Act 2006 and the Charities Statement of Recommended Practice (FRS 102) 2019.

The trustees have reviewed the charity’s strategies to ensure these are consistent with its objects and to consider how its activities contribute to these. The trustees have referred to the Charity Commission’s guidance on public benefit, when reviewing its aims, objectives and activities and are confident that they have complied with their duty to have due regard to the guidance when exercising their powers and duties.

PUBLIC BENEFIT

The trustees of Action Against Hunger have a duty to ensure that the charity provides public benefit and achieves its objectives as set out in

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STRATEGIC REPORT

Action Against Hunger is a humanitarian and development network that has been at the forefront of the fight against hunger for over 40 years. We are a needs-driven and rightsbased organisation with a primary focus on assisting the most at-risk populations.

Our technical expertise, based on research, mass data analysis and collaboration with scientists and government ministries is internationally recognised and respected.

We create innovative responses to treat life-threatening malnutrition. We protect livelihoods and improve long-term food security. We do this by constantly investing in research and innovative nutrition products and field-testing treatment protocols. These have become international best practices in treating and preventing undernutrition of adolescents, pregnant and breastfeeding women, new-borns and young children.

We are focused on reducing and eliminating hunger and malnutrition. Each year, our international network provides treatment to over 600,000 acutely malnourished children, making us the leading international non-governmental organisation (NGO) in treating acute malnutrition.

OUR PRIORITIES

At our core, we respond to hunger crises.

Our increasing evidence-based knowledge and expertise gives us a powerful voice to engage the public and influence government to deliver more action on hunger.

~~This is our starting point and where our~~ expertise is grounded. Our strategy is to build from this core strength, continually broadening our technical capabilities on issues central to our mission.

~~A strong voice and a high profile w~~ ill drive more support from individuals and partners as we seek to grow more diverse and sustainable income streams.

~~We will use the growing recogni~~ tion of our reliable and expert technical services to expand our offer to partner with more civil society organisations, scientists, funders and decision-makers in the fight against hunger.

ACTION AGAINST HUNGER UK I 11

OUR OBJECTIVES IN 2021

In 2021, our objectives were to:

OBJECTIVE 1

OBJECTIVE 2

Raise over £44 million to provide treatment to at least 40,000 acutely malnourished children and help a further 760,000 vulnerable people

Share our expertise in addressing malnutrition and in monitoring, evaluation and learning

OBJECTIVE 3

OBJECTIVE 4

Respond to the

food poverty crisis in the UK

Bring the voices of affected communities to our supporters and activists

© Lys Arango

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021 I 13

2021 OBJECTIVES

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OBJECTIVE 1

RAISING FUNDS TO TREAT MALNOURISHED CHILDREN AND VULNERABLE PEOPLE

Several factors made it a hugely challenging year for raising funds, including: the cutting of the international aid budget from 0.7 per cent to 0.5 per cent of GDP by the UK government; the Covid-19 pandemic that meant many of our fundraising events were cancelled; and a squeeze on the public’s personal donations due to the economic crisis in the UK.

Drastic cuts to the UK aid budget – impacting both ongoing and new projects – and the decision to channel what remained through organisations such as the UN resulted in a loss of contracts for almost all charities in the humanitarian sector, including Action Against Hunger.

While we had 24 ongoing grants with a total value of £45.3 million in 2021 from UK Aid grants, only 15 new contracts totalling £2.2 million were signed in 2021. This was a huge blow to our ability to support programmes around the world.

Players of People’s Postcode Lottery continued to support our work, with two separate grants totalling £850,000. This strategic funding allowed us to continue to build a strong, sustainable charity, able to do more in the fight against hunger.

The innocent foundation approved a grant to treat malnutrition through community health workers in Mali; and the ALBORADA Trust provided over £300,000 to help us respond to humanitarian crises in Afghanistan, Haiti and Uganda.

Despite a very difficult year for the hospitality industry due to the Covid pandemic, our annual restaurant fundraising campaign, Love Food Give Food (LFGF), raised £404,000. A huge £211,000 of that total was raised by YO! Sushi, a new partner for 2021 and our biggest LFGF partner ever.

This year’s Fine Wine and Art Dinner was our most successful gala yet, raising over £400,000 for our life-saving work. Over the past 15 years this event has raised over £4 million. It simply would not be possible without the support of our dedicated organising committee, chaired by Robin Hutson, Chairman and CEO of Lime Wood Group Limited and Home Grown Hotels Limited, ensuring a spectacular and seamless event year after year.

Recognising the need to diversify how we raise funds, and in order to reduce reliance on grants from the UK government, at the end of 2021 we committed to growing our bank of regular givers. This is also useful because it provides an invaluable method of growing unrestricted income.

By the end of 2021 we had built a five-year regular giving recruitment strategy and secured long-term investment to recruit 10,000 regular givers by the end of 2025.

Despite these challenges, we still managed to raise £12.4 million. And, working with our partners in the international network, we ran 686 projects in 51 countries, assisting over 26.3 million people.

We provided medical kits and supplies to government healthcare facilities and provided training for health workers. We also distributed hygiene kits; supported counselling projects; ran a Covid prevention ad campaign; and distributed food baskets to those in need. By the end of 2021, we had reached 21,410 people.

‒ CASE STUDY THE DISASTERS EMERGENCY COMMITTEE

As a member of the Disasters Emergency Committee (DEC), we participated in two appeals in 2021 – one to address the Covid crisis around the world, and the other to address the hunger crisis in Afghanistan.

In Afghanistan, 3.1m children and 720,000 pregnant or breastfeeding women were suffering acute malnutrition in 2021. The situation worsened when the Taliban took power and some governments and international financial institutions withdrew funding and support.

In July 2020, the DEC had launched a Covid appeal to raise funds for work in Afghanistan, Bangladesh, the Democratic Republic of Congo, India, Somalia, South Sudan, Syria and Yemen.

Following a huge spike in cases in India in spring 2021, they took the unusual step of relaunching the appeal. Due to India’s population volume and density, it has been particularly challenging to limit the spread of Covid in affected states and cities.

As the situation deteriorated, the DEC launched an appeal for Afghanistan in December 2021. We provided life-saving health and nutrition services to children under the age of five years and to pregnant or breastfeeding women; and provided counselling to those experiencing trauma, reaching 78,500 people.

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2021 OBJECTIVES

OBJECTIVE 2

SHARING OUR EXPERTISE IN ADDRESSING MALNUTRITION AND IN MONITORING, EVALUATION AND LEARNING

Action Against Hunger UK houses technical expertise on both nutrition and monitoring, evaluation and learning (MEAL), not just for our international Action Against Hunger network, but for the wider sector as well. In 2021 we challenged ourselves on how to best review and leverage our credibility and knowledge.

We developed our nutrition strategy, focusing on improving equitable and sustainable access to effective nutrition services; identifying the causes of malnutrition and the effectiveness of prevention activities; and improving early warning systems, preparedness and response to nutrition emergencies through more effective data collection and analysis.

Our Nutrition team signed two long-term agreements with UNICEF, allowing us to influence how it tackles under nutrition. And our MEAL team signed a long-term agreement with the World Food Programme, thus consolidating and improving our experience and knowledge as an expert on nutrition and MEAL.

We carried out a range of studies and surveys in 2021, including two Link Nutrition Causal Analysis (Link NCA) surveys in Madagascar and Myanmar. A Link NCA survey is a research method at community level which allows us to identify the main causes of malnutrition in children in a specific area through rigorous quantitative and qualitative research methods.

We strengthened our nutrition analysis tools and expertise by starting to develop a new, simplified methodology for nutrition assessments that can allow scale-up and ownership by Ministries of Health around the world. We co-chaired the European NGO Forum; organised webinars and training sessions at a range of universities in the UK and around the world; and participated in the Strategy Advisory Group of the Global Nutrition Cluster.

We worked with our colleagues in the international network to develop the “SAM Photo App”, which helps to identify secure acute malnutrition through photography and could also help to increase diagnostic coverage of the condition. It could also strengthen communitybased management of acute malnutrition, and presents a great opportunity for governments and local health systems to revolutionise nutrition assessments and surveillance, and improve the impact and coverage of nutrition programmes.

Collating data for the international network is key to work of the MEAL team, but what this data tells us needs to be in the hands of those taking decisions in our operations every day. So in 2021 we explored ways of collating, analysing and packaging data and insights to make them accessible, understandable and – importantly – used.

‒ CASE STUDY MITIGATING HUNGER IN MADAGASCAR

In the midst of famine in Madagascar – the f|irst famine in the world to be attributed to climate change – we carried out three widereaching nutrition assessments in order to reformulate new programme approaches to tackling malnutrition. This work was highlighted by ITV News.

Lenka Blanárová, a Senior Nutrition Assessment Coordinator at Action Against Hunger UK, spent four months in the country. She reports:

“Madagascar is in the grip of the worst drought in 40 years, with as many as 500,000 people marching towards starvation. I spent four months in Madagascar visiting communities, where families were surviving solely on leaves.

Droughts and sandstorms have destroyed crops and turned land to desert. When you add to this Covid-19 you have a perfect storm of humanitarian needs. Families have little choice but to consume whatever water they can find, leading to a spike in waterborne diseases. These increase the likelihood of a child becoming malnourished, which remains the biggest killer of children under five.

Between October and March, our teams handled 8,727 child severe acute malnutrition cases, 8,582 moderate acute malnutrition cases, and 9,611 with other diseases.

The situation has since got worse. Madagascar is teetering on the brink of a famine it has played no part in creating. If governments genuinely care about reversing the impact of climate change, then they must stop looking to the future.”

We also carried out Community-based Management of Acute Malnutrition Coverage (CMAM Coverage) surveys in Bangladesh, Mali and Pakistan. CMAM Coverage surveys are surveys conducted in communities which help us to understand what percentage of malnourished children are accessing life-saving treatment and for those that are not, what challenges they face in reaching treatment.

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ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021 I 17
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2021 OBJECTIVES

18[|] ANNUAL REPORT 2021

OBJECTIVE 3

RESPONDING TO THE FOOD POVERTY CRISIS IN THE UK

In recent years, food insecurity rates in the UK have been among the highest in Europe. The Covid pandemic exacerbated the situation, and as result we decided (for the first time in our history) to address the food poverty crisis in the UK in 2020. We continued this work in 2021.

We are experts in emergency response. When a crisis happens, our rapid response teams evaluate immediate needs in order to launch the appropriate response. We do this by teaming up with local government agencies, partners and community leaders.

By integrating our programmes with local and national systems, we aim to ensure that shortterm interventions become long-term solutions. We assessed the situation in the UK and felt we could have greater impact by supporting partners to go beyond providing immediate emergency needs.

We supported our partners to rapidly adapt and expand their programmes at a time of crisis to meet the growing food poverty needs in areas of the country with some of the highest rates of child poverty.

Many food banks, community kitchens, food pantries and social supermarkets are seeing record levels of demand for their help. Some are being overwhelmed – unable to keep up with increasing demand.

Two years since the onset of the pandemic, nearly one in 10 UK households are now having problems getting hold of enough, nutritious food. Many are skipping meals, going hungry or not eating for a whole day – because they can’t afford food.

We are supporting food projects including community kitchens, food pantries and social supermarkets.

A social supermarket is a shop that sells food to people on a lower income at a huge discount. It’s like a normal supermarket with a lot of choice but goods are available at a fraction of the price of high street stores.

Food pantries are similar, but members pay a small fee to join and in return they get to choose their own discounted food at a fraction of the high street cost. They both buy up high-quality, surplus food. So it’s cheaper and so nothing goes to waste.

Community kitchens are different. They provide hot meals to hungry guests – including the homeless, families living with food poverty and people who are isolated and lonely. Guests can simply come along without booking and enjoy great food and company in a welcoming community setting.

So far, we’ve partnered with groups in Manchester, south east London, and the West Midlands in order to help support social supermarkets, food pantries and community kitchens in areas of high deprivation and where hunger levels are rising.

We also provided training to our UK partners on nutrition and healthy living and conducted an impact evaluation of the food pantry model (see “Lewisham Homes” case study).

While the evidence needed to decide if this will be a long-term strategy in the UK is not yet available, we nevertheless employed the existing principles underpinning our ways of work to ensure we: supported pantries as opposed to food banks, to allow for a sustainable future, plus agency and choice for the consumer; worked in areas of highest need, as we would in all our work; and used our added value of Monitoring, Evaluation and Learning (MEAL) and Nutrition teams to build the capacity of our partner organisations.

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‒ CASE STUDY LEWISHAM HOMES

Our partner, Lewisham Homes Limited, operates four community food stores in the south London borough of Lewisham, which enable low-income families to buy food for a weekly voluntary membership fee of £3.50.

Each community food store acts as its own “local community hub”, offering a range of services and initiatives to tackle food poverty and its underlying causes. These include community gardens, debt advice, employment support, digital training, financial education, and counselling during the pandemic.

Working with Lewisham Homes, we implemented the “Healthy Meals, Healthy Lives” project, in addition to providing financial support for its work. We also supported them to carry out an impact evaluation of their community food store concept. This evaluation found improvements in people’s sense of dignity, financial stability, nutrition and health.

Members said paying a membership fee gave them a sense of “fairness” and lessened the feeling of receiving “charity”. They also said they saved money when visiting the store, which allowed them to avoid falling into debt and to release money for other needs such as transport or clothing. Members also said they now eat healthier and more varied diets, as the stores offer healthy food at a lower cost.

The evaluation shows how each store also helps tackle social exclusion and loneliness, and enables members’ needs and struggles to be identified and linked to the wider support network available in the borough.

ACTION AGAINST HUNGER UK I 19

20[|] ANNUAL REPORT 2021

2021 OBJECTIVES

OBJECTIVE 4

BRINGING THE VOICES OF AFFECTED COMMUNITIES TO OUR SUPPORTERS AND ACTIVISTS

We believe it is important for our supporters and stakeholders to hear from the people we are helping in the countries in which we work. But we think it is also important to give the people we assist the space to share their own voice, rather than speaking for them.

To bring the voices of affected communities to our supporters, we recruited, trained and supported an in-country communications officer in Yemen, who delivered photos, videos and case studies from our local projects.

We also gathered interviews, photos and video footage of our work from a range of countries, including Ethiopia, Guatemala and the UK. And we ensured the voices of communities were brought to our audiences in the UK by promoting their stories on the website and social media, in emails and newsletters, and by promoting their stories in the press.

As well as sharing stories from the countries where we work in the field with our supporters, we continued to advocate for political action on the underlying causes of hunger and malnutrition, as well as effective responses. In 2021 our UK advocacy focused on the leading drivers of malnutrition: conflict and climate change, prevention of malnutrition through aid for nutrition, and effective humanitarian response to crises. To this end, we organised meetings, produced numerous reports and briefings for decision makers, media outputs, and engaged our activist supporters in public campaign actions.

We focused on promoting effective implementation of UN Security Council Resolution 2417 on conflict and hunger, briefing UN member states on setting up a new UN Group of Friends to champion the agenda within the UN system.

With the UK Government hosting the G7 Summit, we also led an advocacy campaign on the development of a new G7 Humanitarian Crises and Famine Prevention Compact, that was endorsed by World Leaders at the Summit. We invited 120 NGOs globally to sign a public letter calling for action on emerging hunger crises.

The UK Government also hosted the UN Climate Change Conference in Glasgow, for which we produced a report examining the relationship between climate change and hunger. The report contained data on how climate change is having an inequitable impact on those who are already the most food insecure in the world. This report was presented at several official side events and at a stand at the Conference in Glasgow.

As Co-chair of the international coalition for advocacy on Nutrition (ICAN UK) we played a leading role in advocacy efforts to promote UK Aid for nutrition. We briefed MPs and engaged our supporters in writing to the Prime Minister, Foreign Secretary and MPs. We met with Ministers and held online briefings for MPs.

Several of our chef supporters, including Tom Kerridge and Angela Hartnett, wrote a public letter to The Times calling for nutrition to be a UK Aid priority. Recently the Foreign, Commonwealth & Development Office (FCDO) announced a £1.5 billion commitment to aid for nutrition by 2030, despite deep aid cuts. The FCDO informed us that our advocacy played an instrumental role in achieving this.

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‒ CASE STUDY MOTHERS ON THE FRONTLINE APPEAL

In autumn and winter 2021 we ran a direct marketing campaign focusing on the incredible lengths to which mothers will go to protect their children from hunger. When Medina’s 18-month-old daughter Munira became sick, Medina did everything she could to get her the treatment she needed.

Munira had started losing weight and rejecting her food. Medina tried to treat Munira with traditional remedies, but they didn’t help. She went to neighbours and hospitals seeking help.

“Everybody was worried, my whole family was worried. I stopped eating because I was so worried she would die,” says Medina.

One day, Action Against Hunger’s health and nutrition staff visited Medina’s community to spread awareness about malnutrition.

Medina immediately took Munira to one of our mobile clinics. Our nurses checked her symptoms, her weight and evidence of any other complications such as swelling or peeling of the skin. Munira was admitted to a lifesaving programme where she was treated with medicine and given ready-to-use therapeutic food – a peanut-based paste used to treat children suffering from malnutrition.

After receiving treatment, our teams discharged Munira and then visited Medina at home to check on Munira’s progress and make sure she was eating her therapeutic food.

“They come and check Munira,” says Medina, “They make sure that we are following the instructions and eating the therapeutic food properly by checking her weight.” Medina has made a full recovery.

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021 I 21

22[|] ANNUAL REPORT 2021

OUR INCOME AND EXPENDITURE IN 2021

HOW WE RAISED OUR MONEY

Action Against Hunger receives grants and donations from UK individuals, institutional donors, trusts and foundations, and corporate partners. See the details of all donors page 57. But in 2021 our principal grant funder, the FCDO, amended three grant agreements for work in Afghanistan and Nigeria. We also recalculated some income recognised in prior years . This resulted in a total reduction of income and expenditure by £10.4 million. In order to comply with UK accounting rules, we recorded these grant adjustments in 2021 even if the grants were recognised in prior years as noted in the Financial Statements, note 2(b) on page 49. The diagrams below represent income and expenditure before the reduction in FCDO grants.

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Trusts and Other:
foundations £107,618
£1,384,468
Institutional
(eg FCDO):
Corporate: £5,603,081
£1,270,265
Total
income:
Individuals:
£1,285,343 £12,384,932
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Action Against Hunger
Network: £2,734,157
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HOW WE SPENT OUR MONEY

Most of our income is spent on emergency relief, disaster risk-reduction work and long-term development projects.

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Fundraising:
£1,258,935
Support costs:
£732,865
Consultancy
services:
£230,558
Total
Advocacy:
£145,580 expenditure:
£11,554,600
Overseas
projects:
£9,186,662
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ACTION AGAINST HUNGER UK I 23

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© Credit to comeXXXXXXX
© Fabeha Monir
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OUR OBJECTIVES FOR 2022

In 2022, we aim to build on our achievements in 2021 and to:

OBJECTIVE 3

OBJECTIVE 2

OBJECTIVE 1

Continue to expand our technical expertise

Continue to respond to the poverty food crisis in the UK

Raise over £32.5m to provide treatment to at least 60,000 acutely malnourished children and help a further 1.1 million vulnerable people

OBJECTIVE 4

OBJECTIVE 5

OBJECTIVE 6

Continue to digitalise expertise and drive innovative approaches

Continue to use evidence uptake and data to inform and influence positions and policies

Continue to bring the voices of affected communities to our audiences

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021 I 25

THANK YOU

Action Against Hunger could not fulfil its mission without the support of our donors and stakeholders. Thank you to all our fantastic supporters and partners for your generosity in 2021. We would like to thank the following donors and partners for supporting us in 2021.

The ALBORADA Trust
Bakkavor Limited
D&D Limited
Disasters Emergency Committee (DEC)
ELRHA
Foreign, Commonwealth & Development
Office (FCDO)
Hakkasan- Limited
Hawksmoor Limited
Kelly Deli Company Limited
Mowgli		 North Brewing Company Limited
People’s Postcode Lottery Limited
Schroders
Soneva Foundation
Starbucks
Start Network
The Innocent Foundation
The Pig
The Waterloo Foundation
unearthed®
WOLF

We thank all our Love Food Give Food partners and all those who supported our emergency appeals and our long-term development programmes. And we thank our chef, celebrity and committee supporters.

Adam Gahlin
Angela Hartnett
Asma Khan
Bill Knott
Calum Franklin
Candice Brown
Carl Clarke
Chris Whitney
Cyrus Todiwala
David Gleave
Ed Wilson
Elly Curshen
Hugh Bonneville
Huw Gott
Isaac McHale
James Chase
James Holden
James Knappett
Kar-Shing Tong
Ken Hom
Lee Tiernan
Mariella Frostrup		 Mark Hix
Michel Roux Jr
Mitch Tonks
Neil Rankin
Nick Garston
Nick Gibson
Nieves Barragán Mohacho
Nokx Majozi
Peter Nagle
Raymond Blanc
Richard Hodsden
Rick Stein
Robin Hutson
Sam Buckley
Sam Hainsworth
Shaun Searley
Soren Jessen
Tom Best
Tom Hunt
Tom Kerridge
Vivek Singh
Will Beckett

You have all helped us to achieve our mission of tackling hunger and malnutrition around the world: thank you!

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© Peter Caton
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28[|] ANNUAL REPORT 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Action Against Hunger UK is a registered charity (number 1047501 in England and Wales and SC048317 in Scotland) and is constituted as a private company limited by guarantee (registered in England number 03069468). Its objectives and powers are set out in its Memorandum and Articles of Association.

EXECUTIVE COMMITTEE

DIRECTORS

Jean-Michel Grand Executive Director

Paul Wilson

Chair of Board and Chair of the Governance and Remuneration Committee

Maria Franklin

Frances Pasteur

Director of Human Resources

Safeguarding Trustee

Steve Notman

Tim Wright

Director of Finance and Administration

Chair of the Audit, Risk and Compliance Committee (resigned on 12 December 2022)

Matthew White

Director of Fundraising and Communications, resigned June 2021

Nicolas Sarkis

Charlotte Matier

Chair of the Fundraising, Engagement & Ethics Committee

Director of Fundraising and Communications, from October 2021 to November 2022

Sanjay Dhiri

Alison McNulty Director of Operations

Eleanor White

Jordan Winokur

SOLICITORS

AUDITORS

Reed Smith Corporate Services Ltd Third Floor, The Broadgate Tower 20 Primrose Street London EC2A 2RS

BDO LLP

2 City Place Beehive Ring Road Gatwick RH6 0PA

TRUSTEES

The Directors of Action Against Hunger UK are the Trustees. The Memorandum and Articles of the Association of the Company set out the way in which trustees may be appointed.

Trustees are elected for a three-year term and can serve a maximum of three successive terms. The Code of Conduct and conflict of interest forms are signed by the Trustees every year. Trustees’ self-assessments are carried out annually. The assessment also includes some questions on the performance of the Chair. The outcomes of the assessments are discussed at the subsequent Board meeting.

Action Against Hunger’s Board of Trustees meet on a quarterly basis. The Board delegates the use of certain powers related to the management and administration of the Charity to Mr Jean-Michel Grand, the Executive Director.

The Executive Director is responsible for the day-to-day management of the Charity’s affairs, and for implementing the Charity’s strategy, annual plans and policies agreed by the Board. The Executive Director also ensures full accountability and transparency of the organisation’s accounts and reports to the Board on a regular basis.

He leads the Executive Committee. The Executive Committee defines and proposes the following to the Board for approval:

Board sub-committees meet quarterly to oversee the following areas:

managed through financial and non-financial internal controls. This committee also provides oversight to the development of Action Against Hunger UK’s safeguarding culture and handles and reviews all reported safeguarding incidents across Action Against Hunger UK and its partners.

The Board has delegated approval for day-today operational decisions up to certain financial thresholds to the Executive Director and other Executive team members under a Scheme of Delegation to enable them to coordinate and direct Action Against Hunger UK’s work worldwide. All decisions above this financial threshold must be approved by the Board. The Board has also reserved to itself certain important decisions, such as major initiatives, appointment of the Executive Director and approval of the long-term objectives and strategy.

In order for informed decisions to be made, members of the Executive Committee and the Executive Director respond to the Board’s questions at meetings. The Board takes a majority vote on decisions (simple majority), communicating them through minutes. A quorum of three is necessary. Any change in strategy, action plan, policy or procedure proposed by the Executive Director is examined and ratified by the Board. The Board approves the delegation of financial authority through the Executive Director to the Charity, within specific limits.

The Trustee Governance and Remuneration Committee supervises implementation of the Charity Governance Code.

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ARRANGEMENTS FOR SETTING THE PAY AND REMUNERATION OF THE CHARITY’S KEY MANAGEMENT PERSONNEL

Action Against Hunger operates an incremental pay structure for all roles, including senior management. Grades are established by assessing the job description against the organisation’s job evaluation tool. Where appropriate, roles are also periodically benchmarked against the annual Croner Charity Rewards Survey and comparable roles in similar organisations. Incremental increases are service related and awarded annually to the top of the designated grade.

The Trustee Governance and Remuneration Committee meets in December, to review financial and non-financial remuneration, including pension arrangements and annual cost of living awards, which are applied to uplift the salary scales. The Governance and Remuneration Committee recommendations are ratified by the full Board of Trustees.

INTERNAL CONTROL AND RISK MANAGEMENT

“The Trustee Directors have overall responsibility for Action Against Hunger’s system of internal control. Such a system can provide only reasonable, and not absolute, assurance against errors or fraud. They are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006.

The systems of internal control are designed to provide assurance against material misstatement or loss. They include:

Trustees continue to review the adequacy of the Charity’s internal control systems with the Senior Management Team. This is carried out quarterly as part of the Risk and Ethics committee meetings (see below).

Action Against Hunger operates an annual planning and budgeting process with reference to the five-year Strategic Plan, and with startof-year and mid-year revised budgets approved by the Board of Trustee Directors. Significant changes during the year are subject to specific approval.

The financial reporting systems provide monthly comparison of actual results with budget. Forecasts of the expected results for the year are undertaken regularly. Action Against Hunger maintains a comprehensive register of risks, the most significant of which are stated on page 34. The register identifies the major strategic and operational risks faced and how they are being managed.

As part of the annual three-year planning process, the key risks are considered by the Trustee Directors and the risks Action Against Hunger faces are reviewed quarterly by the Executive team. The Trustee Directors are satisfied that systems are in place to monitor, manage and mitigate Action Against Hunger’s exposure to major risks. They consider that maintaining Action Against Hunger’s general reserves at the levels stated on page 57, and reviewing internal controls and risks through an

internal audit programme, will provide Action Against Hunger with adequate risk assurance and sufficient resources in the event of adverse conditions. They also recognise that the nature of some of Action Against Hunger’s work requires active acceptance and management of some risks when undertaking activities to achieve the objectives of the Charity.

THE ACTION AGAINST HUNGER INTERNATIONAL NETWORK

International Action Against Hunger is a global humanitarian organisation committed to saving the lives of malnourished children and

supporting their families to beat hunger. In 2021, the Action Against Hunger International network was made up of seven separate legal entities (and their branches and subsidiaries) which were active in 51 countries around the world. The entities that make up the Action Against Hunger international network share the same objectives and operate under common International Co-Operation Protocols, including an International Charter of Principles and a number of common policies agreed by the International Committee of Chairs and the International Executive Committee.

In 2021 the entities that made up the Action Against Hunger International network were:

Expenses are recharged between the connected charities where staff and other resources are used on projects run by the other charity. This gives rise to the balances at the year end referred to in Notes 11 and 12.

RELATED PARTIES/SUBSIDIARIES

Action Against Hunger UK has a subsidiary trading company called Action Against Hunger Enterprises Limited (company no: 06569439). This Company’s principal activity is to raise funds for Action Against Hunger through various trading avenues.

Action Against Hunger UK is one of the seven members of the trading company ACFIN Licensing Ltd, a company incorporated in England and Wales (Company No. 06672034). The company’s main objective is to license the Action Against Hunger trademarks to the entities that make up the Action Against Hunger International network. The Action Against Hunger UK Executive Director is a Director of the company.

APPROVAL

This Annual Report is signed by the Chair on behalf of the Board of Trustees. The trustees also approve the Strategic Report, which is contained within this report, in their capacity as company directors.

Approved on 22 December 2022

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32[|] ANNUAL REPORT 2021

FINANCIAL PERFORMANCE

Action Against Hunger’s income for the year ended 31 December 2021 decreased sharply, from £50.8 million in 2020 to just £2 million in 2021. This was mainly the result of significantly fewer new grants being signed with the Foreign, Commonwealth & Development Office (FCDO) – the principal donor to our humanitarian programmes, also because we had to make an exceptional accounting adjustment to reduce FCDO grant income by a total of £10.4 million, in respect of two grants where FCDO cut funding in 2021, one ongoing grant where FCDO terminated their funding in 2022 and recalculation of some income recognised in prior years. In these cases we had previously recorded the total amount of income stated in the original grant agreement when it was signed, in prior years, in anticipation that the full amount of the grant would be paid. Such cuts are highly unusual and relate directly to the pressure on FCDO to find budget savings.

As in prior years, total income includes the full amount of multi-year grants, accounted for in accordance with the Charities SORP and Accounting Standards, which require us to recognise the full amount of income on most such grants when agreements are signed.

We ended the year with a net unrestricted funds surplus of £288,542, which has been added to accumulated general reserves. The Board of Directors has reviewed the reserves policy of the Charity and considers it appropriate to seek to maintain unrestricted free reserves equivalent to six months of general expenditure, to cover eventual risks including property liabilities and staff redundancies, as well as the closure of the Charity; to provide a security against seasonal variations in income and expenditure; to costs; and to fund strategic research, investment and innovations.

In 2021, the UK government cut UK aid spending from 0.7 per cent to 0.5 per cent of GDP, despite this being a legal commitment. This meant that the FCDO’s UK Aid budget decreased from £15 billion to £10 billion with most of that lower amount ringfenced for legally or contractually binding spending commitments to institutions such as the World Bank, the UN and the Climate Investment Funds. Discretionary spend by themes like Water, Sanitation and Hygiene (WASH) and Nutrition fell from around £7 billion to £2 billion. Existing programme budgets were cut and the FCDO was instructed not to produce new business cases for bilateral programmes. This had a major impact on our ability to raise new funds from the FCDO in 2021.

Unrestricted reserves as of 31 December 2021 were £2.02 million (which represents around eight months of general expenditure). The Charity’s Memorandum of Association provides the Trustees with the authority to invest in such assets as they see fit, in order to benefit the Charity and its continued financial wellbeing.

The Charity is committed to utilising any surplus cash funds in the most effective way possible. However, the Charity is occasionally required to react quickly to particular emergencies and has a policy of investing any surplus funds in relatively short-term deposits, ranging from one month to immediate access.

Action Against Hunger’s Board reviews the investment policy annually. The objective of the current policy is to maintain high liquidity while ensuring maximum security. To achieve this, the Charity invests with institutions with a high security rating in instant access, fixed-term or call cash deposits.

The UK government has stated that the reduction from 0.7 per cent to 0.5 per cent of GDP will be a temporary measure to release funds to address the Covid-19 pandemic. As the impact of the pandemic reduces, we would anticipate that the FCDO will review its position on bilateral collaboration and British charities will be able to bid for a much higher number of grants with the FCDO in 2022 and 2023.

RISK STATEMENT

evaluation of risks against the Charity’s risk appetite; and, where appropriate, the development of mitigation plans. Action Against Hunger regularly monitors its key risks with a view to embedding a strong risk management culture across the Charity.

Action Against Hunger UK considers effective risk management to be fundamental to good management practice and to provide an essential contribution towards the achievement of the Charity’s strategic and operational objectives. The Trustees are satisfied that appropriate internal control systems are in place to identify and mitigate the Charity’s key strategic and operational risks.

The Board is responsible for appointing members of the Charity’s Audit, Risk and Compliance Committee, of which four trustees were members in 2021. The main functions of the Committee are to:

Whilst the Charity operates necessarily in high-risk contexts to save the lives of children and provide them and their families with opportunities for a better life, at Action Against Hunger we remain prudent on how we mitigate these risks.

Action Against Hunger is a forward-looking organisation driven by impact and costeffectiveness, therefore it embraces higher risk approaches on innovation, complex programming, leading consortiums, creative fundraising, new ways of working, embracing digital technologies, exploring new technical approaches that challenge existing ones and any other activities that support the achievement of our objectives and the strategic priorities of the International Action Against Hunger network.

The Charity’s risk appetite reflects the need to take risks in order to achieve our objectives, provided always that these risks do not breach our principles, values, policies, legal obligations or our duty of care to staff, donors and the populations we support.

Action Against Hunger UK’s Risk Management Policy sets out the Charity’s approach to risk management, and uses a risk management framework to support the identification, assessment and management of key risks, including the implementation of comprehensive mitigation plans and risk management strategies. This includes a thorough risk identification process; prioritisation of key risks based on an assessment of impact and likelihood; regular review of mitigation measures and controls;

During 2020 and 2021, the Covid pandemic and consequential economic impacts presented significant challenges for international humanitarian organisations all over the world, including Action Against Hunger. This required a rapid and dynamic response and the Charity acted quickly to manage the situation and mitigate the risks arising from the crisis.

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KEY RISKS

A risk assessment exercise is undertaken and the Risk Register is reviewed annually. Most recently, the Trustees have identified the following major risks to which the Charity is exposed:

Measures in place to manage the risk

Risks

Field security incidents

Detailed security plans and guidelines are updated on a frequent basis in every country where work is carried out, to take account of changing conditions on the ground.

Staff receive comprehensive security training before their assignment. High security consciousness among staff.

Critical incident management procedures and training are in place and are continually updated. Safeguarding incidents at field level Safeguarding policy that ensures zero tolerance of safeguarding transgressions. Safeguarding policies and measures are communicated to all employees, partners and suppliers and are implemented and monitored in all countries in which we work.

Undertaking of awareness raising and related trainings. Complaints and whistleblowing mechanisms are in place and tested to ensure they are effective. Fraud, corruption and bribery Zero tolerance policy for fraud, corruption and bribery. Implementation of Action Against Hunger Risk Management Policies (anti-bribery, fraud, corruption, abuse of power, anti-terrorism and money laundering). Senior Management and Trustees sign Conflict of Interest forms annually. Whistleblowing and complaints mechanisms are in place. Significant decrease in revenues Diversify private fundraising activities. Investment in individual giving. Diversification of income streams and reduction in dependence on UK Aid funding. Cyber security breach and/or Conducted full assessment of risks relating to security breach / significant data loss through IT failure cybercrime / data breach in the context of all staff working from home. IT measures implemented to mitigate risks. Awareness and training of staff on risk identification and mitigation. Increasing requirements on compliance Network Due Diligence review and policy harmonisation project. with legal, regulatory or donor obligations in programme delivery Further strengthen / standardise UK compliance and due diligence processes and reviews. Strengthen serious and reportable incident processes.

SERIOUS INCIDENTS

ENERGY USE AND GREENHOUSE GAS EMISSIONS

In 2021 there were 15 allegations related to fraud, abuse of power, sexual exploitation, harassment, terrorism or bribery, mostly in four countries where we work. All cases were thoroughly investigated and decisive/ appropriate actions were taken. All cases meeting the Charity Commission’s criteria for serious incidents were duly reported to the Charity Commission and all cases were reported to the Foreign, Commonwealth & Development Office (FCDO).

In the year ended 31 December 2021, Action Against Hunger UK consumed less than 40,000 kWh of energy and therefore is exempt from the requirements to publish information regarding its annual emissions and energy consumption.

STAKEHOLDER ENGAGEMENT

The Trustee Directors are required to explain how they consider the interests of key stakeholders and the broader matters set out in Section 172 of the Companies Act 2006 in promoting the success of the company for the achievement of its charitable purposes. This statement focuses on matters of strategic importance and the level of information disclosed in this statement is consistent with the size and complexity of the business.

In order to meet this, the Board of Trustees has to pay due regard to the long-term consequences of all its decisions. Throughout the life of the strategy its implementation is regularly monitored through annual progress reports, which help inform the long-term decision-making that is required to achieve the objectives set out in our strategy.

S172(1) (B) ‘THE INTERESTS OF THE COMPANY’S EMPLOYEES’

GENERAL CONFIRMATION OF TRUSTEE DIRECTORS’ DUTIES

The Trustees recognise that Action Against Hunger UK employees are our most important asset and are fundamental to the delivery of our strategic plan. Our success depends on attracting, retaining, motivating and developing them, wherever they are located. The annual staff survey is one of the Board’s principal tools to measure employee engagement, motivation and commitment to Action Against Hunger. It enables the Board to understand how we are learning from survey findings to strengthen Action Against Hunger’s culture and values, and informs decision-making from pay and benefits to health, safety and wellbeing. The Staff Forum operates throughout the year as a mechanism for bringing an issues or suggestions for improvements to the Senior Management Team, as well as being an important vehicle for staff consultation on any significant changes or restructuring.

Action Against Hunger UK’s Board has a clear framework for determining the matters within its remit and has approved Terms of Reference for the matters delegated to its Committees. Page 29 explains the roles and responsibilities of the Board Sub Committees. When making decisions, each Trustee Director ensures that they act in good faith to best promote the company’s success for the achievement of its charitable purposes, and in doing so will have regard (among other matters) to:

S172(1) (A) ‘THE LIKELY CONSEQUENCES OF ANY DECISION IN THE LONG-TERM'

The Charity is guided by a five-year strategic plan, at both UK and international level through the Action Against Hunger network.

Arrange regular scheduled compliance workshops and training for staff.

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STAKEHOLDER ENGAGEMENT (continud)

S172(1) (C) ‘THE NEED TO FOSTER THE COMPANY’S BUSINESS RELATIONSHIPS WITH SUPPLIERS, CUSTOMERS AND OTHERS’

Action Against Hunger UK’s key business relationships are with other members of the Action Against Hunger international network; the communities with whom we work; our suppliers; and our donors and supporters. Our engagement with these stakeholders is referenced within this report. In order to deliver our mission and strategy, and to create impact at scale, we need to work with others. We will continue to work primarily through the implementing members within the Action Against Hunger network and also build our capacity to work through other partnerships, alliances, and networks.

S172(1) (D) ‘THE IMPACT OF THE COMPANY’S OPERATIONS ON THE COMMUNITY AND THE ENVIRONMENT’

The Board of Trustees has fully committed the organisation to the Core Humanitarian Standards. These standards “put communities and people affected by crisis at the centre of humanitarian action”. The charity fully subscribes to this ethos, which we enact in all of our programme delivery. Recognising that climate change is currently one of the main drivers of food insecurity and hunger, we advocate on this and ensure that within our programme work and in the UK, due attention is paid to the environmental impact of everything we do.

S172(1) (E) ‘THE DESIRABILITY OF THE COMPANY MAINTAINING A REPUTATION FOR HIGH STANDARDS OF BUSINESS CONDUCT’

It is important that Action Against Hunger UK continues to maintain its reputation for high standards of conduct in all its work. As part of the Action Against Hunger network, all employees and trustees are required to sign and abide by a Global Code of Conduct. We also ensure compliance at all times with the high standards of business conduct attached to receiving funding from many important in institutional and private donors, including the FCDO/UK Aid. Reputational risk is addressed within our Corporate Risk Register and informs all key decision-making. Currently, the Trustee Governance and Remuneration Committee is supervising the implementation of the Code of Good Governance to ensure that recommended practices set out in the Code are in place.

S172(1) (F) ‘THE NEED TO ACT FAIRLY AS BETWEEN MEMBERS OF THE COMPANY’

This is not relevant to Action Against Hunger’s organisational structure, as the charity is run in the interests of its charitable objects rather than in the interests of its members.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Strategic Report, the Annual Report and the financial statements in accordance with applicable law and regulations.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period.

Mr Paul Wilson Chair of Trustees

In preparing the financial statements the trustees are required to:

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INDEPENDENT AUDITOR’S REPORT (CONTINUED)

INDEPENDENT AUDITOR’S REPORT

To the members of Action Against Hunger UK

BASIS FOR OPINION

OPINION ON THE FINANCIAL STATEMENTS

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

In our opinion, the financial statements:

INDEPENDENCE

We remain independent of the Group and the Parent Charitable Company in accordance with the ethical requirements 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.

CONCLUSIONS RELATING TO GOING CONCERN

We have audited the financial statements of Action Against Hunger UK (“the Parent Charitable Company”) and its subsidiary (“the Group”) for the year ended 31 December 2021 which comprise the Consolidated statement of financial activities, the Consolidated and Charity Statement of financial position, 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 auditing the financial statements, we have concluded that the Directors’ (who are 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 and the Parent Charitable Company'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.

Conclusion relating to going concern (continued)

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

OTH.ER INFORMATION

The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises the Directors’ report, the Strategic report, the Structure, Governance, and Management, and the Directors’ responsibility statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

OTHER COMPANIES ACT 2006 REPORTING

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

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 Directors' report or Strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006requires us to report to you if, in our opinion:

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INDEPENDENT AUDITOR’S REPORT (CONTINUED)

RESPONSIBILITIES OF THE TRUSTEES

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the directors of the charitable company for the purposes of company 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 determines 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 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

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

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.

EXTENT TO WHICH THE AUDIT WAS CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

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 charity and the sector in which it operates, we identified that the principal laws and regulations that directly affect the financial statements to be relevant charities acts in the UK and Ireland. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

In addition, the group and charity are subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence if any.

Audit procedures performed by the engagement team included:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not

detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

USE OF OUR REPORT

Fiona Condron (Senior Statutory Auditor)

For and on behalf of BDO LLP, Statutory Auditor London, UK

Date: 23 December 2022

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

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FINANCIAL STATEMENTS (continued)

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2021 2021 2020
Note Unrestricted Restricted Total Total
£ £ £ £
Income from:
Donations and legacies 2a 2,653,186 1,328,134 3,981,320 3,573,871
Charitable activities 2b 2,609,760 (4,656,131) (2,046,371) 46,945,504
Investment and other income 2c 66,374 66,374 271,226
Total income 5,329,320 (3,327,997) 2,001,323 50,790,601
Expenditure on:
Raising funds 3 1,242,939 193,918 1,436,857 1,644,428
Charitable activities 4 3,797,839 (4,063,705) (265,866) 49,624,298
Total expenditure 5,040,778 (3,869,787) 1,170,991 51,268,726
Net income/(expenditure) 7 288,542 541,790 830,332 (478,125)
Net movement in funds 288,542 541,790 830,332 (478,125)
Reconciliation of funds:
Total funds brought forward 13 1,739,387 224,679 1,964,066 2,442,191
Total funds carried forward 13 2,027,929 766,469 2,794,398 1,964,066

The results for the year shown above all derive from continuing operations. There are no recognised gains or losses for the year other than those shown above. There are no material differences between the results for the year as stated above and those calculated on a historical cost basis.

(COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL) STATEMENTS OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2021

~~COMPANY NUMBER: 03069468~~ ~~COMPANY NUMBER: 03069468~~
Group Group Charity Charity
2021 2020 2021 2020
Notes £ £ £ £
Fixed assets
Tangible assets 9 65,356 68,236 65,356 68,236
Investment in subsidiary 10 - - 1 1
Current assets
Debtors 11 11,693,631 37,094,959 11,693,631 37,094,959
Cash at bank and in hand 4,031,115 6,990,839 4,031,115 6,990,839
15,724,746 44,085,798 15,724,746 44,085,798
Creditors
Amounts falling due
within one year		 12 (12,995,704) (42,189,968) (12,995,705) (42,189,969)
Net current assets 2,729,042 1,895,830 2,729,041 1,895,829
NET ASSETS 2,794,398 1,964,066 2,794,398 1,964,066
FUNDS
Unrestricted funds 13 2,027,929 1,739,387 2,027,929 1,739,387
Restricted funds 13 766,469 224,679 766,469 224,679
2,794,398 1,964,066 2,794,398 1,964,066

The surplus for the financial year dealt with in the financial statements of the parent Company was £655,857 (2020: surplus of £141,062).

Approved and authorised for issue by the Board on 7 December 2022, and signed on their behalf by:

The accompanying notes on pages 45 to 59 form an integral part of these Financial Statements.

Mr Paul Wilson (Chair of Trustees)

Date: 22 December 2022

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NOTES TO THE FINANCIAL STATEMENTS

(COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Note 2021 2020
£ £
Net cash used in operating activities 1 (2,940,210) (1,625,106)

Cash flows from investing activities

Investment income received 684 5,025
Purchase of fixed assets (20,199) (718)
Net cash (used in)/provided by investing activities (19,515) 4,307
Change in cash and cash equivalents in the year (2,959,724) (1,620,799)
Cash and cash equivalents at 1 January 6,990,839 8,611,638
Cash and cash equivalents carried forward 4,031,115 6,990,839
1. Reconciliation of net income/(expenditure)
to net cash flow from operating activities
Net income/(expenditure) 830,332 (478,125)
Depreciation of tangible fixed assets 23,077 20,428
Decrease/(Increase) in debtors 25,401,329 (12,180,929)
(Decrease)/Increase in creditors (29,194,264) 11,018,545
Investment income receivable (684) (5,025)
Net cash used in activities (2,940,210) (1,625,106)

ACTION AGAINST HUNGER UK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES

(a) Basis of accounting

The financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with the Companies Act 2006, Charities Act 2011, Charities Accounts (Scotland) Regulations 2006, Charities and Trustee Investment (Scotland) Act 2005, Statement of Recommended Practice (SORP) on Accounting and Reporting by Charities effective from 1 January 2019, FRS102, and applicable United Kingdom accounting standards. The Charity has adapted the Companies Act formats to reflect the Charities SORP and the special nature of the Charity’s activities.

Implications of the Covid 19 pandemic have had a significant impact on the income of the Charity in 2021. Over the last few years FCDO and UK Aid have been the major institutional donor funding Action Against Hunger UK’s overseas programme work. UK Aid budgets awarded to many INGO’s such as the Charity were suspended or cut in 2021 as a consequence of the decision by the UK government to reduce the aid budget from 0.7 per cent to 0.5 per cent of GDP. For us, this meant that no new agreements were signed in 2021 and budgets relating to three agreements that have been signed in previous years were reduced. The fall in our income in 2021 as a consequence has been extreme, but in 2022 we expect to see our programmatic funding levels bounce back considerably due to new multi million pound grants having been signed with FCDO and other funders in the first half of the year.

In assessing whether it is appropriate to prepare the accounts on a going concern basis, the Trustee Directors (who are the Directors of Action Against Hunger UK for the purposes of company law and the trustees of Action Against Hunger UK for the purposes of charity law) have taken account of the current levels of unrestricted reserves and cash and the current and future expected funding environment.

The Trustee Directors continue to review the Charity’s financial performance, business plans and budgets on a quarterly basis and are content that the 2021 accounts should be prepared on a going concern basis. As explained in last year’s accounts, during 2020 and the early part of 2021 the impact of the Covid-19 pandemic and its financial effects on the Charity was significant, primarily due to the impact that the pandemic had on the food and hospitality industry in the UK upon which Action Against Hunger has a close relationship in respect of its private fundraising. In response to this, the executive team and trustees prepared revised budgets in 2020 and 2021 to ensure that Action Against Hunger would be able to continue its core activities and remain a going concern. In 2020 a range of cost reductions to mitigate the impact of reduced income levels were carried out including a reduction in our UK office staffing by about 20%. The 2021 unrestricted budget was held at the same level as the prior year revised budget and only modest affordable growth built in the 2022 budget. Poor economic conditions and the impact of Covid on fundraising have continued into 2022 and are now being compounded by steep rises in inflation, a fall in the value of Sterling.

ACTION AGAINST HUNGER UK I 45

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

ACTION AGAINST HUNGER UK NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

Our overseas operations, which are funded largely by FCDO and trusts and foundations through restricted grants are being impacted, although the UK financial position, centred around our unrestricted reserves and funding, remains stable.

Having considered all these matters, the Trustee Directors do not believe there is a material uncertainty and so have prepared the accounts on a going concern basis.

(b) Basis of consolidation

The consolidated accounts include the accounts of the charitable company, Action Against Hunger UK Limited and its trading subsidiary Action Against Hunger Enterprises Limited, which is consolidated on a line-by-line basis. No separate Statement of Financial Activities (SoFA) has been presented for the charity as permitted by Section 408 of the Companies Act 2006.

(e) Basis of allocation or apportionment of expenditure

Expenditure during the year is analysed into raising funds and charitable activities. Notes 3 and 4 provide an analysis of these categories. All costs are directly charged against the appropriate category. The basis of apportionment of support costs is stated in Note 5.

Tangible fixed assets

Tangible fixed assets costing more than £500 are capitalised. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: Fixtures, fittings and equipment – 25% on cost Leasehold property improvements – over the term of the lease

Rentals under operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against income as incurred.

(c) Income

(d) Expenditure recognition

Expenditure is included in the financial statements on an accruals basis.

Sub contracted grants

Subcontracted grants to other members of the Action Against Hunger network or third parties are charged to the Statement of Financial Activities when they have been approved and where a binding commitment has been made to the other organisation. Subcontracted grants that have been approved but not yet disbursed at the balance sheet date are carried forward as creditors in the balance sheet. In situations where grants from public funders are reduced subsequent to the signing of the initial grant agreement (see note 1(c) above), the liability to the subcontracted partner will be

Foreign currency transactions are recorded at the average exchange rate for the month in which the transaction arose. Year end balances held in foreign currencies are converted at the closing rate. All differences on conversion are charged to the SoFA.

Restricted funds are monies provided by grant or donation for specific projects. Unrestricted funds consist of funds or gifts in kind provided for general charitable activities or monies raised from appeals for specific emergency responses.

(j)

Pension

The Charity operates a defined contribution scheme. The assets of the scheme are held separately from those of the Charity in an independently administered scheme. The pension cost charge payable by the Charity in the year amounted to £76,719 (2020: £82,874). At the end of the financial year there were no contributions (employee and employer) still to be paid over to the scheme (2020: £Nil).

reduced by the same amount under the terms of the subcontract agreement.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

ACTION AGAINST HUNGER UK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

(k) Gifts in kind

Action Against Hunger accepts gifts in kind (goods and services) that are in line with the charities mandate from individuals, corporates, foundations and government agencies. Gifts in kind are defined by Action Against Hunger UK as goods and services received for the purpose of carrying out the activities of the charity and also for fundraising and awareness of the organisation. These are non-monetary items that are valued at fair market price.

(l) 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 value of assets and liabilities that are not readily apparent from other sources. These 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.

The estimates and 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 revision and future periods if the revision affects the current and future periods.

The significant judgements and estimates that could impact the carrying amounts of assets and liabilities are as follows:

Revenue Recognition

Revenue Recognition requires judgement to appropriately apply the income accounting policies across the different funding streams the Charity has. Note 1(c) above details the accounting principle adopted and its application in particular to restricted grants received from institutional funders, such as FCDO (UK Aid).- the judgements made in recording such income are continually reassessed including in cases where the grant agreement wording and conditions are changed from year to year, and where appropriate provision is made for contingencies or deferrals to account for conditions yet to be fulfilled.

ACTION AGAINST HUNGER UK

(COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

2 INCOMING RESOURCES

2 (a) Donations and legacies

2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
Donations and legacies
Individuals (including
legacies and events)		 1,212,589 72,754 1,285,343 1,013,415 54,513 1,067,928
Corporate donors 861,255 409,010 1,270,265 648,438 42,883 691,321
Trusts & Foundations 538,098 846,370 1,384,468 842,892 898,329 1,741,221
International partners - - - 34,864 - 34,864
Gifts in kind 41,244 - 41,244 38,537 - 38,537
Total 2,653,186 1,328,134 3,981,320 2,578,146 995,725 3,573,871
2 (b) Charitable activities
2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
Grant-based activities
UK Government
– Start fund		 - 1,011,894 1,011,894 - 600,633 600,633
UK Government
– FCDO		 - 1259,174 1,259,174 - 33,960,028 33,960,028
Al-Thani
Humanitarian fund		 - - - - 5,373,317 5,373,317
Disasters Emergency
Committee		 - 250,317 250,317 - 570,000 570,000
Others - 699,423 699,423 - 362,956 362,956
FCDO grant
reductions (note i)		 - (10,383,609) (10,383,609) - - -
Total - (7,162,801) (7,162,801) - 40,866,934 40,866,934

Note (i) – During 2021, we agreed with FCDO reductions to 2 grants that had been signed in prior year, – ‘Nigeria SUNNY’ and ‘Afghanistan R3’. In addition, in 2022 a FCDO funded programme of which Action Against Hunger was a consortium member ‘LAFIYA – HeRON’, was terminated early by FCDO. These reductions were an exceptional occurrence and made as a consequence of FCDO seeking budget savings related to the reduction in the UK aid budget from 0.7 per cent to 0.5 per cent of GDP. As noted above at note 1(c) the decrease to the grant and income that has been recorded in prior periods is adjusted in 2021.

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50[|] ANNUAL REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

ACTION AGAINST HUNGER UK

(COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

~~2 (b) Charitable activities (continued)~~

2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
Monitoring and
evaluation services
UK Government – FCDO - 1,760,568 1,760,568 - 2,776,775 2,776,775
UN agencies - 276,402 276,402 - 259,115 259,115
Others (121,147) 466,450 345,303 - 222,056 222,056
(121,147) 2,503,420 2,382,273 - 3,257,946 3,257,946
2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
Provision of employees
to Acton Against		 2,573,344 - 2,573,344 2,496,129 - 2,496,129
Hunger programme
Other services for
Acton Against Hunger 157,563 3,250 160,813 - 324,495 324,495
network partners
2,730,907 3,250 2,734,157 2,496,129 324,495 2,820,624
Total charitable
activities		 2,609,760 (4,656,131) (2,046,371) 2,496,129 44,449,375 46,945,504

2 (c) Investment and other income

2021 2021 2021 2020 2020 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
UN agencies 684 - 684 - 5,025 5,025
Others 65,690 - 65,690 - 266,201 266,201
Investment and other
income		 66,374 - 66,374 - 271,226 271,226

2 (c) Investment and other income (continued)

Other income in 2021 and 2020 is related to payments from HMRC as part of the Coronavirus Job Retention Scheme, in which organisations were able to claim for 80% of employees’ wages plus any employer National Insurance and pension contributions for staff put on furlough or flexible furlough because of coronavirus.

3 EXPENDITURE ON RAISING FUNDS

Support Total Total
Direct Costs 2021 2020
£ £ £ £
Fundraising events 263,133 - 263,133 163,126
Other fundraising
actvites		 995,802 177,922 1,173,724 1,481,302
1,258,935 177,922 1,436,857 1,644,428
All fundraising events expenditure in 2021 and 2020 relates to unrestricted expenditure. Within
other fundraising actvity costs, £193,918 relates to restricted expenditure (2020: £139,687).
4
CHARITABLE ACTIVITIES
Support Total Total
Direct Costs 2021 2020
£ £ £ £
Overseas projects (3,072,289) 332,967 (2,739,322) 46,927,476
Supply of aid workers 2,407,073 55,494 2,462,567 2,229,893
Advocacy/
awareness raising		 145,580 27,747 173,327 253,308
MEAL and Nutriton
services		 230,558 138,736 369,294 213,621
(289,078) 554,942 265,866 49,624,298

Of total charitable activities, £3,797,839 relates to unrestricted expenditure (2020: £3,688,986) and £4,063,705 relates to restricted expenditure (2020: £45,935,312).

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52[|] ANNUAL REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

ACTION AGAINST HUNGER UK

(COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

5 SUPPORT COSTS

5
SUPPORT		 COSTS
Executive Office Admin Finance and IT Total Total
2021 2020
£ £ £ £
Allocated to
Project costs
Overseas projects 54,945 162,220 115,802 332,967 273,003
Recruitment of
aid workers		 9,157 27,037 19,300 55,494 45,501
Advocacy/
awareness raising		 4,579 13,518 9,650 27,747 22,750
MEAL and
Nutrition services		 22,894 67,592 48,250 138,736 113,751
91,575 270,367 193,002 554,943 455,005
Allocated to
Fundraising		 23,458 102,882 51,582 177,922 217,746
115,033 373,249 244,584 732,866 672,751

Basis for support cost allocation

Staff costs have been allocated on a basis consistent with the time spent on each activity. Office and administration costs are allocated based on number of staff. Direct support costs are allocated directly to project costs.

6 STAFF COSTS

6
STAFF COSTS
2021 2020
£ £
Staff costs for employees on UK contracts
Wages and salaries 4,992,144 4,920,661
Employer pension contributions 76,719 82,874
Social security costs 306,540 287,543
5,375,403 5,291,078

The above amounts represent costs for the parent charity and the group (the parent charity’s subsidiary does not employ any staff). The total emoluments earned and paid to the Executive Director, Jean-Michel Grand, for the year, including pension contributions, was £112,432 (2020: £102,072). The number of other employees whose remuneration amounted to over £60,000 in the year was as follows:

2021 2020
£80,001 to £90,000 1 -
£70,001 to £80,000 3 2
£60,001 to £70,000 - 4

Remuneration includes salaries and benefits in kind but excludes employer pension scheme contributions. No contributions were made to defined benefit schemes for employees whose remuneration was greater than £60,000.

Excluding the Executive Director, total emoluments paid to other members of the Senior Management Team totalled £309,561 (2020: £284,721) in the year.

The average number of staff working overseas employed by Action Against Hunger under UK contracts during the year was 74 (2020: 68). At the year-end, staff numbers overseas were 79 (2020: 64). These amounts include staff that worked overseas on projects run by both Action Against Hunger and other members of the Action Against Hunger International network. The average number of staff employed by Action Against Hunger and working in the UK in 2021 was 62 (2020: 70). At the year-end, UK staff numbers were 62 (2020: 59).

Trustees’ expenses and remuneration and related party transactions

Trustees are not remunerated and no expenses were claimed in 2021 (2020: £Nil).

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

ACTION AGAINST HUNGER UK

(COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

7 NET INCOME / (EXPENDITURE)

7
NET INCOME / (EXPENDITURE)
2021 2020
Net Income/(Expenditure) is stated after charging: £ £
Depreciaton of tangible fxed assets 23,077 20,428
Operatng lease payments – property 192,512 192,512
Auditor’s remuneration: Charity 35,000 33,000
Trading subsidiary 2,500 2,500

8 TAXATION

The charitable company meets the definition of a charity in Schedule 6 Finance Act 2010 and accordingly is entitled to exemptions set out in Part II Corporation Tax Act 2010 and section 256 Taxation of Chargeable Gains Act 1992 to the extent that its income and gains are applied for charitable purposes.

9 TANGIBLE FIXED ASSETS

Group and Charity Leasehold property
improvements		 Fixtures fittings
& equipment		 Total
£ £ £
Cost
At 1 January 2021 248,626 79,769 328,395
Additons - 20,199 20,199
At 31 December 2021 248,626 99,970 348,594
Depreciation
At 1 January 2021 196,565 63,596 260,161
Charge for the year 11,825 11,252 23,077
At 31 December 2021 208,390 74,851 283,238
Net book value
At 31 December 2021 40,236 25,120 65,356
At 31 December 2020 52,061 16,175 68,236

10 INVESTMENT IN SUBSIDIARY UNDERTAKINGS

Action Against Hunger Enterprises Limited (Company number 6569439) is a wholly owned subsidiary and is a company incorporated in England & Wales. The principal activity is conducting trading fundraising activities for the charity.

2021 2020
£ £
Share capital
Authorised 100 100
Called up 1 1

A summary of the company’s trading results and statement of financial position is shown below.

2021 2020
£ £
Statement of income and retained earnings
Turnover 12,775 10,795
Cost of sales (177) (64)
Net proft before taxaton 12,598 10,731
Taxaton - -
Retained proft for the year 12,598 10,731
Statement of fnancial positon
Current assets 15,402 10,732
Current liabilites (3,027) -
Net current assets 12,375 10,732
Total assets less current liabilites 12,375 10,732
Capital and Reserves
Called up share capital 1 1
Retained proft 12,374 10,731
Equity shareholders’ funds 12,375 10,732

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021 I 55

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

ACTION AGAINST HUNGER UK

(COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

11 DEBTORS

11
DEBTORS
Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Insttutonal donors 9,525,186 36,597,285 9,525,186 36,597,285
Acton Against Hunger – Canada 25,688 20,458 25,688 20,458
Acton Against Hunger – Spain 1,570,079 - 1,570,079 -
Acton Against Hunger – India 67,682 168,603 67,682 168,603
Accrued income 400,878 191,041 400,878 191,041
Sundry debtors 70,091 29,716 70,091 29,716
Prepayments 34,027 87,856 34,027 87,856
11,693,631 37,094,959 11,693,631 37,094,959

Institutional debtors are related to grant agreements signed with FCDO, directly or via a consortium lead or managing agent. As noted above, our accounting policy recognises the full amount of the grant at the time the agreement is signed and therefore the full grant amount is treated as a current debtor rather than as a debtor due after more than one year. Included in the amounts due from Institutional donors are amounts due after more than one year of £1,653,117 (2020: £4,294,303).

12 CREDITORS

12
CREDITORS
Group Group Charity Charity
2021 2020 2021 2020
Amounts falling due within one year: £ £ £ £
Acton Against Hunger – France 11,579,964 34,345,632 11,579,964 34,345,633
Acton Against Hunger – Spain 101,149 3,839,093 101,149 3,839,093
Acton Against Hunger – USA 189,963 2,218,658 189,963 2,218,658
Deferred income 254,790 629,411 254,790 629,411
Other creditors 672,672 906,773 672,672 906,774
Accruals 197,166 250,401 197,167 250,401
12,995,704 42,189,968 12,995,705 42,189,969

13 STATEMENT OF FUNDS

13
STATEMENT OF FUNDS
As at 01
Jan 21		 Income Expenditure 31 Dec 21
£ £ £ £
FCDO Shine Somalia - 1,441,352 (1,441,352) -
Start Fund alerts - 579,110 (579,110) -
Start Fund Bangladesh hosting - 399,576 (355,000) 44,576
FCDO Integrated Reponse Rohingya
Crisis in Cox’s Bazaar Bangladesh		 - 378,500 (378,500) -
People’s Postcode Lottery - 425,000 (412,823) 12,177
FCDO MERIAM - 319,216 (319,216) -
Power of Nutrition Gujarat - 325,328 (19,194) 306,134
DEC Afghanistan appeal - 380,716 (380,716) -
DEC Covid-19 appeal - 250,317 (250,317) -
CIFF SAM 2.0 Project 103,628 - - 103,628
UN projects - 276,402 (276,402) -
Alborada Trust - 317,800 (227,800) 90,000
Soneva Foundation - 19,800 (19,800) -
Barclay’s UK project 100,000 - (100,000) -
Bloom Foundation - 20,000 (20,000) -
Action Against Hunger Network - 3,250 (3,250) -
FCDO prior year grant reduction - (10,383,609) 10,383,609 -
FCDOSHARPSomalia - 880,674 (880,674) -
Others 21,051 1,038,571 (849,668) 209,954
Total restricted funds 224,679 (3,327,997) 3,869,787 766,469
Unrestricted funds 1,739,387 5,329,320 (5,040,778) 2,027,929
TOTAL FUNDS 1,964,066 2,001,323 (1,170,991) 2,794,398

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58[|] ANNUAL REPORT 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

ACTION AGAINST HUNGER UK

(COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

As at 31 December 2020

As at 31 December 2020
01 Jan 20 Income Expenditure 31 Dec 20
£ £ £ £
FCDO DRC Punch - 10,914,876 (10,914,876) -
Health Resilience in North East (HeRoN) Nigeria - 6,104,709 (6,104,709) -
Al-Thani foundation - 5,373,317 (5,373,317) -
Recovery Reintegration Resilience Consortium
Afghanistan		 - 4,904,962 (4,904,962) -
FCDO DRC PUNCH III - 4,000,000 (4,000,000) -
FCDO Rapid Response Fund Yemen - 3,000,000 (3,000,000) -
FCDO SHINE Somalia - 2,746,775 (2,746,775) -
FCDO Multisector Humanitarian Response Yemen - 1,894,079 (1,894,079) -
FCDO Strengthening National Response Plan for
COV19 in DRC		 - 1,500,000 (1,500,000) -
FCDO Rapid Response Fund Activation Somalia - 891,402 (891,402) -
FCDO Ebola Emergency in DRC - 750,000 (750,000) -
CIFF SAM 2.0 Project 447,459 (343,831) 103,628
Start Fund alerts - 596,001 (596,001 -
DEC Covid-19 appeal - 570,000 (570,000) -
People’s Postcode Lottery - 450,000 (450,000) -
UN projects 102,046 259,115 (361,161) -
Alborada Trust - 200,000 (200,000 ) -
Soneva foundation - 138,600 (138,600) -
Power of Nutrition Gujurat - 118,481 (118,481) -
Barclays UK project - 100,000 - 100,000
ELRHA R2HC: Research to support Covid-19 - 101,834 (101,834) -
Action Against Hunger Network - 613,088 (613,088) -
Others 305,072 217,860 (501,881) 21,051
Total restricted funds 854,577 45,445,100 (46,074,998) 224,679
Unrestricted funds 1,587,614 5,345,501 (5,193,728) 1,739,387
TOTAL FUNDS 2,442,191 50,790,601 (51,268,726) 1,964,066

14 ACCOUNTING ESTIMATES AND KEY JUDGEMENTS

Included in the income and expenditure for the year is an amount of £4.3 million relating to a FCDO grant funded programme: Recovery Reintegration Resilience Consortium Afghanistan (R3). Action Against Hunger is working on this project as part of a consortium led by the Norwegian Refugee Council (NRC). FCDO has an Accountable Grant Agreement with NRC for this project with the reference number: 300420-103. The Action Against Hunger component of the programme is subcontracted by Action Against Hunger UK to Action Against Hunger France. Immediately following the change of government in Afghanistan in August 2021, Action Against Hunger suspended its R3 programme activities, repatriated all expatriate staff from the country and withdrew all local staff from local field offices. Subsequently, following consultation with the R3 consortium members, the donor, and in-country stakeholders some activities resumed and our expectation is that the programme will be able to proceed, with some adjustments, in the coming months. If the programme were required to be terminated, there would be no material impact of the net funds or cash flows of the Charity.

15 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Fund balances at 31 December
2021 are represented by:		 Unrestricted funds Restricted funds Total funds
£ £ £
Tangible fixed assets 65,356 - 65,356
Net current assets 1,962,573 766,469 2,729,042
Total net assets 2,027,929 766,469 2,794,398
Fund balances at 31December 2020
wererepresented by:		 Unrestricted funds Restricted funds Total funds
£ £ £
Tangible fixed assets 68,236 - 68,236
Net current assets 1,671,151 224,679 1,895,830
Total net assets 1,739,387 224,679 1,964,066

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ACTION AGAINST HUNGER UK

(COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL) NOTES TO THE FINANCIAL STATEMENTS

“

FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)

16 OPERATING LEASE COMMITMENTS

The company and the group have total outstanding operating lease commitments relating to the lease of its London office of £786,160 (2020: £1,003,883).

17 CONNECTED CHARITIES

The directors consider Action Contre la Faim (‘Action Against Hunger’), a charity registered in France, to be a connected charity. Action Against Hunger has the same objectives to that of the Company and works closely with it. Its business address is 14/16 Boulevard Douaumont – CS 80060, 75017 Paris CEDEX, France, from which accounts can be obtained. Other connected charities are Action Against Hunger USA, a charity registered in the US, and Action Contra el Hambre, a charity registered in Spain, Action Against Hunger Canada, a charity registered in Canada and Fight Hunger Foundation, a charity registered in India. Expenses are recharged between the connected charities where staff and other resources are used on projects run by the other charity. This gives rise to the balances at the year-end referred to in Notes 11 and 12.

18 RELATED PARTIES

Action Against Hunger is one of the five members of the trading company ACFIN Licensing Ltd, a company based in the UK (Company No. 06672034). One of its main roles is to license its Action Against Hunger members the right to use trademarks. The Action Against Hunger UK Executive Director is a Director of that company. During the year UK license expenses totalling £536 were charged to Action Against Hunger UK by Action Against Hunger Licensing Ltd. At the year end an amount of £16,256 was due from Action Against Hunger Licensing Ltd to Action Against Hunger UK.

Action Against Hunger UK is also a member of Action Against Hunger Development, a foundation registered in France and an organisation that pools resources and expertise to support the development of Action Against Hunger International Network. One of Action Against Hunger’s Trustees is a Executive Director of that organisation.

“We are proud to support the excellent work Action Against Hunger does in Bangladesh to teach families business skills and to set up climate resilient home gardens. This allows the families in a sustainable way to access more nutritious food and improves disposable income. It is heartening to hear how Sabuda Begum and her family’s situation is now transformed. They now eat healthy food and are able to send their children to school.”

The Soneva Foundation

“Such a small act on my part. You’re the hero.”

KS (Kar-Shing Tong, A Foodie Influencer) after we thanked him for supporting the DEC Appeal

“Thank you for having us at this wonderful event. It was such an amazing night and for such a good cause. Both Hawksmoor staff and those there from Action Against Hunger were amazing. I cannot commend all the people involved putting this event together; it was absolutely seamless.”

Hawksmoor Dinner Guest

“I chose to support Action Against Hunger because it doesn’t just provide aid and disaster relief but makes lasting change by addressing the causes of hunger. It does this by sharing knowledge among communities, empowering the voices of individuals and advocating for policy change.”

Marianne

“You guys are doing an amazing job. I would definitely chip in if there were any further fundraising events.”

Jyothi

“I was proud to complete the London Marathon wearing my Action Against Hunger shirt − thanks for having me along for the ride.”

Dan

“At YO! we believe in the power of good food, which is why we wanted to partner with Action Against Hunger to help more communities access the food they need to survive and thrive.”

Victoria, YO! Director of Marketing

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Action Against Hunger

Address:

6 Mitre Passage London SE10 0ER

Telephone:

+44 (0)20 8293 6190

Email:

contact@actionagainsthunger.org.uk

Website:

www.actionagainsthunger.org.uk

AAH_UK

actionagainsthungeruk

Action Against Hunger UK

Action Against Hunger UK

The company is a registered charity No. 1047501 (England and Wales) and Sc048317 (Scotland). The company is registered in England No. 3069468 and was incorporated on 16 June 1995.