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2020-12-31-accounts

LEPROSY DEFEATED, LIVES TRANSFORMED

2020 20 21 ANNUAL REPORT

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 CHARITY REGISTRATION NO. 1050327 COMPANY REGISTRATION NO. 3140347 (ENGLAND AND WALES)

THE LEPROSY MISSION ENGLAND AND WALES

BOARD OF TRUSTEES

Mr Andy Lancaster (Chair of Board and Personnel and Bursaries Committee)

Mr Peter Watson (Treasurer and Chair of Finance and Planning Committee)

Mr Henry Anstey

Miss Catherine Benbow (retired 30 November 2020)

HON PRESIDENT

The Lord McColl of Dulwich CBE

VICE PRESIDENTS

The Right Reverend Donald Allister The Baroness Caroline Cox

Ram Gidoomal CBE

Pam Rhodes

The Rt Hon Ann Widdecombe

Mr Timothy Brooks

NATIONAL DIRECTOR

Mr Paul Craig (Chair of Programmes Committee) Mrs Anne Fendick (Vice Chair of Board and Chair of Fundraising Committee) Mr Paul Halliday

Mrs Marieke Jellema

Mr Peter Waddup

The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man

AUDITORS

J W Hinks LLP, 19 Highfield Road, Edgbaston, Birmingham B15 3BH

Mr Ralph Turner

Mr Jean Le Maistre MBE (retired June 2020)

Dr Vanessa Taylor

Mr Edward Walker (from October 2020)

Mrs Diana White

BANKERS

Barclays Bank Plc, Peterborough Business Centre PO Box 294 – 1 Church Street, Peterborough PE1 1EX

CCLA Investment, Management Ltd, 80 Cheapside, London EC2V 6DZ

Cafcash Ltd, Kings Hill, West Malling, Kent ME19 4TA

Santander, Bootle, Merseyside L30 4GB

SECRETARY AND REGISTERED OFFICE

Mr Peter Waddup

The Leprosy Mission, Goldhay Way, Orton Goldhay, Peterborough PE2 5GZ

Registered charity no. 1050327 A company limited by guarantee registered in England and Wales no. 3140347

The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man

THE LEPROSY MISSION ISLE OF MAN

DIRECTORS

Mr Paul Halliday Mr Graeme Easton Mrs Eleanor Duchars Mr Ralph Turner Mr Peter Waddup

REGISTERED OFFICE

2 Fuchsia Close, Glen Vine, Isle of Man IM4 4DZ

A Private Company Limited by Guarantee and not having a Share Capital Registered in the Isle of Man 132285C Isle of Man Charity number 1251

CONTENTS

CONTENTS
Who We Are
Message from the Chair of the Board of Trustees
Our Vision, Our Mission, Our Values		 6
7
8 — 9
Our Purpose 10 – 11
Signifcant Activities in 2020 12 – 23
Grant Making Policy 24 – 25
Future Plans 26 – 29
Fundraising 29
Structure, Governance, Management and Safeguarding 30 – 35
Reserves Policy 36 – 37
Financial Summary 38 – 41
Independent Auditor’s Report
Financial Statements		 42 – 46
47 – 69

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees, who are also directors of the charity for the purposes of the Companies Act, have pleasure in presenting their annual report and audited financial statements for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with:

GLOSSARY OF TERMS

ADT Alliance Development Trust

WHAT IS LEPROSY?

Leprosy is a mildly infectious disease caused by the bacterium Mycobacterium leprae. It is believed to be transmitted by droplet infection, following prolonged exposure and close proximity to infected individuals.

Leprosy can affect anyone regardless of age, gender, nationality, class or religion but its severest impact is on people who are marginalised or living in poverty; where overcrowding, poor nutrition and poor housing increase the risk of infection.

Due to ignorance, stigma and the fear of being ostracised from families and community, many people affected by leprosy ignore any early signs of the disease. There is not yet a point of care diagnostic test for leprosy and it is often misdiagnosed or diagnosed late, only when symptoms become visible.

Leprosy is one of the oldest and most stigmatised diseases. However, unfortunately it is not confined to the past. Latest statistics from the World Health Organization reported 202,185 new cases of leprosy diagnosed in 2019 from 160 countries worldwide. More than half of those new cases (114,451) were found in India and almost 15,000 globally were children.

Despite treatment with multidrug therapy (a course of 6 to 12 months of antibiotics), today over four million people live with irreversible impairments caused by leprosy. Not surprisingly, the comorbidity of leprosy and mental health is high.

It is estimated that over 40 million people worldwide are at risk of contracting leprosy. It is a 21st century disease but, with your support, one we hope will end in our lifetime.

If left untreated, leprosy causes immense physical suffering and disability. Nerve damage causes loss of sensation which may lead to injury and the formation of chronic ulcers. Ulcers can lead to the amputation of limbs and, in turn, disability. It also damages nerves in the face, causing problems with blinking, eventually leading to blindness.

WHO WE ARE

The Leprosy Mission England and Wales is a global Christian organisation leading the fight against leprosy. Leprosy can affect anyone, but the biggest impact is on people living in poverty or marginalised from society. We therefore prioritise work with the most marginalised, in communities affected by leprosy.

Our focus is on ten countries in Africa and Asia: Bangladesh, Ethiopia, India, Mozambique, Myanmar, Nepal, Niger, Nigeria, Sri Lanka and Sudan. These countries have high rates of leprosy or lack the services or opportunities needed by people affected.

Our work is striving towards the Triple Zeros: Zero Leprosy Transmission, Zero Leprosy Disability and Zero Leprosy Discrimination.

ZERO LEPROSY TRANSMISSION

Ending the transmission of leprosy is our greatest priority. To do this, we share our expertise with health services to diagnose the disease early and treat it through medical care. We increase awareness of leprosy and challenge cultural misconceptions with evidence, so people affected seek the support they need.

ZERO LEPROSY DISABILITY

We aim to reduce the likelihood of people with leprosy being disabled after diagnosis. We work with hospitals, health centres and people affected to improve treatment, self-care and inner wellbeing. We help communities support people physically, mentally and spiritually.

ZERO LEPROSY DISCRIMINATION

We partner with human rights organisations and people with lived experience of leprosy to end the stigma associated with the disease. We tackle discriminatory laws and practices. We support local champions, and we help improve people’s living and working conditions so they can be understood, respected and included.

We cannot end leprosy alone. Working in partnership is vital to our success. We work with people of all faiths and none to defeat leprosy and transform the lives of people affected. We partner with governments at all levels, health services, WHO, NGOs, professional bodies, businesses, trusts and foundations, churches and other faith groups, research institutions and universities.

We are keen to develop our research partnerships to generate new knowledge and share expertise, as we strive to ensure our work is based on robust evidence and reflects good practice.

People affected by leprosy are our most important partners. We work with leprosy people’s organisations in the majority world to design, implement and evaluate projects, based on the local context. Any support we provide, whether healthcare, job training or advocacy, is in response to people’s needs. As well as working with people with lived experience of leprosy locally, we amplify their voices on the international stage.

MESSAGE FROM THE CHAIR OF THE BOARD OF TRUSTEES

What a year 2020 was; a year unlike any other! COVID-19 brought significant challenges. Our partners on the frontline risked their own health as they diligently stepped out to support vulnerable communities to stay safe and stay alive. Tragically, six Leprosy Mission staff globally lost their lives to COVID-19. I would like to take this opportunity to honour them for their dedicated service. They will be sorely missed, and our thoughts and prayers are with their families and friends.

It was a year when we had to think creatively, re-envisioning many of our programmes to work in new ways to meet the urgent needs of those affected by leprosy. Innovative approaches were developed to ensure as many people as possible were reached. This included virtual medical consultations, SMS and WhatsApp messaging for leprosy and COVID-19 awareness, and telephone counselling. Over 30,000 people in Sri Lanka were reached, per week, through WhatsApp health messaging. And through the generous support of people like you, thousands of those most in need received emergency food and hygiene supplies.

Anandaban Hospital, our flagship facility in Nepal, became a COVID-19 testing and treatment centre. Thanks to support from UK Aid, it was able to treat 230 COVID-19 patients, 81 of whom were affected by leprosy. In 2021, it will be actively engaged in administrating the COVID-19 vaccine.

Back at home, our staff in England and Wales adapted superbly to the challenges of home working. New approaches were pioneered to engage with our supporters, increasing opportunities for online giving, holding virtual meetings and providing churches with digital resources.

I have been overwhelmed by the response from our faithful, warmhearted supporters. Even though many were facing difficult times themselves, they responded with increased generosity, often giving sacrificially to help those they knew were in even greater need.

Their kindness enabled:

These are just a few of the year’s highlights.

So, to all of you who have given so generously in 2020, this is a heartfelt thank you for touching so many lives. I pray that you will be blessed. Stay safe and keep well.

Andy Lancaster Chair of the Board of Trustees

OUR VISION

LEPROSY DEFEATED, LIVES TRANSFORMED.

OUR MISSION

FOLLOWING JESUS CHRIST, THE LEPROSY MISSION SEEKS TO BRING ABOUT TRANSFORMATION; BREAKING THE CHAINS OF LEPROSY AND EMPOWERING PEOPLE TO ATTAIN HEALING, DIGNITY AND LIFE IN ALL ITS FULLNESS.

OUR VALUES

COMPASSION

As Jesus did, we care deeply for others particularly those adversely affected by leprosy and those most in need. We feel their pain and are motivated to walk alongside them in Christ-like love, doing all we can to support their physical, spiritual and emotional wellbeing.

INTEGRITY

We work with honesty and transparency with a seamless correlation between our message and our actions. We foster open communication, where there is no fear of sharing challenges and successes. We respect our partners and work together to find solutions to problems and achieve common goals.

INCLUSION

We value all individuals, believing they were made in the image of God. We promote equal access and opportunity to all, and are committed to removing discrimination and other barriers, enabling people to live life in all its fullness.

JUSTICE

We promote dignity, respecting and fostering human rights. We champion the implementation of the UN Convention on the Rights of Persons with Disabilities (CRPD) treaty and the Principles and Guidelines for the Elimination of Discrimination Against People Affected by Leprosy and their Family Members. We have appropriate mechanisms in place to actively protect children and vulnerable adults from harm and abuse.

HUMILITY

We treat everyone as equals and do not see ourselves as superior to others. We seek to serve the most marginalised, who often live in difficult environments. We are willing to get our hands dirty as we serve others, just as Jesus was willing to wash the feet of his disciples. We value the opinions of others and are open to listen and learn. We solicit and respond to feedback from partners and those we serve.

OUR PURPOSE

THE LEPROSY MISSION EXISTS TO SEE LEPROSY DEFEATED AND LIVES TRANSFORMED. WE AIM TO DO THIS BY IMPLEMENTING OUR CORPORATE STRATEGY, WORKING TOWARDS THE AMBITIOUS TARGETS OF ZERO LEPROSY TRANSMISSION, ZERO LEPROSY DISABILITY AND ZERO LEPROSY DISCRIMINATION. THIS INCLUDES THE FOLLOWING FOCUS AREAS AND DESIRED OUTCOMES OVER THE NEXT FIVE YEARS:

TOWARDS ZERO LEPROSY TRANSMISSION

TOWARDS ZERO LEPROSY DISABILITY

TOWARDS ZERO LEPROSY DISCRIMINATION

RESEARCH AND INNOVATION

FUNDING AND POLICY ENVIRONMENT

FUNDRAISING

PEOPLE

SIGNIFICANT ACTIVITIES IN 2020

TLMEW SUPPORTED 52 PROJECTS IN 10 IMPLEMENTING COUNTRIES, SPENDING OVER £5.65 MILLION ON CHARITABLE ACTIVITIES IN 2020.

TLMEW supported 52 projects in 10 implementing countries, spe activities in 2020.

LIVES TRANS

DEFEATED,

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NIGER
SUDAN
NIGERIA
ETHIOPIA
MOZAMBIQUE
KEY
Each box
represents
one of our
projects
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2020 STRATEGIC SPLIT BY COUNTRY

The colour coding indicates our strategic and research focus

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ZERO TRANSMISSION
7%
ZERO DISABILITY
36%
ETHIOPIA ZERO DISCRIMINATION
41%
OTHER PROGRAMMES
16%
COVID-19 RESPONSE
2%
2% 1%
32%
38%
40%
39% MOZAMBIQUE NIGER
19% 27%
3%
15% 16%
17%
42%
NIGERIA SUDAN
17%
49% 42%
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2020 STRATEGIC SPLIT BY COUNTRY

The colour coding indicates our strategic and research focus

ZERO TRANSMISSION ZERO DISABILITY

24% ZERO DISABILITY 39% BANGLADESH ZERO DISCRIMINATION OTHER PROGRAMMES

INDIA

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37%
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COVID-19 RESPONSE

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1%
10%
12%
22%
7% 26%
20% INDIA 24% MYANMAR
38% 40%
1%
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12% 11%
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15%
NEPAL
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49%
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SRI LANKA
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45%
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14% 48%
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5%
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NEPAL
BANGLADESH
MYANMAR
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SRI LANKA
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KEY
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Each box represents one of our projects

COVID-19 PANDEMIC

The COVID-19 pandemic and the consequent lockdowns and restrictions prevented TLMEW’s implementing partners from carrying out all the activities planned for 2020. Numerous partner staff were ill with COVID-19 and six tragically lost their lives. TLM hospitals witnessed a drop in locally generated income, as paying non-leprosy patients refrained from attending hospitals for fear of contracting the virus. TLMEW worked with partners throughout the year to adapt their programmes to meet the immediate challenges of supporting and caring for people affected by leprosy in a pandemic.

Responses included COVID-19 awareness and prevention campaigns targeting people affected by leprosy and disabilities, emergency food rations, personal hygiene supplies and livelihood support. We also supplied personal protective equipment for health staff, enabled COVID-19 testing services and treatment of COVID-19 cases in some TLM hospitals, and provided telephone counselling services.

In Sri Lanka, TLMEW’s partner, Alliance Development Trust (ADT), used their interfaith network of religious leaders to raise awareness about COVID-19 and transmitted prevention messages through religious services. ADT also supported the government’s effort to spread accurate information about the pandemic by sharing World Health Organizationapproved messages, via WhatsApp, to 30,000 people per week. In Bangladesh, staff and volunteers on TLM’s Activating and Engaging Partnerships project delivered COVID-19 prevention messages to hundreds of members of leprosy self-help groups in north-east and western Bangladesh. TLM Nigeria produced COVID-19 radio messages in three local languages which were aired over a two-month period on two radio stations, with a combined listenership of over three million people. TLM Trust India developed a national COVID-19 awareness and prevention campaign titled ‘VirusPeVijay’ which disseminated messages, via traditional and digital media, about how to stay safe from COVID-19. This included a microsite hosted on India’s leading daily and media group, The Economic Times.

The COVID-19 awareness and prevention initiatives across all countries included practical demonstrations of effective handwashing, maskwearing and social distancing. These were delivered in self-care and self-help groups, hospitals and clinics, schools, care homes, vocational training centres and through community sensitisation events. Partners produced and distributed multiple leaflets and posters bearing COVID-19 prevention messages in local languages.

Lockdowns in the various countries led to reduced income for many people with lived experience of leprosy. Some lost their entire livelihoods as they were unable to farm or trade for several months. Partners rose to the challenge of providing emergency food packages and hygiene supplies to those most affected. A generous trust donation enabled ADT in Sri Lanka to procure emergency food supplies for 150 families affected by leprosy, and food supplies for 60 elderly people affected by leprosy at Hendala Leprosy Hospital. Also, in Sri Lanka, TLMEW’s partner KKM delivered food relief packages to 200 people affected by leprosy and provided five new wells to supply households with clean water for drinking and handwashing. The Ethiopian National Association of Persons affected by Leprosy (ENAPAL) distributed food packages and personal hygiene materials to 409 leprosyaffected households in South Wollo, and TLM Nigeria distributed food packages, soap and hand sanitiser to 100 leprosy-affected households in Niger and Sokoto states. In Myanmar, 14,414 people affected by leprosy were included as beneficiaries of government COVID-19 relief funds following an advocacy campaign mounted by TLM Myanmar in collaboration with the Myanmar Association of People affected by Leprosy (MAPAL).

The challenges of the pandemic led to new livelihoods interventions. In Sri Lanka, our partner, KKM, delivered training in home gardening and distributed vegetable seeds to 150 households affected by leprosy to enable them to start small vegetable gardens. This improved their nutrition and immunity, and helped them make a little extra income from selling the surplus produce within their communities. In India, self-help groups took to stitching and distributing masks for a small fee. The Inclusive Empowerment Project took this initiative a step further. It set up a new business venture run by people affected by leprosy which is engaged in bulk-order mask production, and sales of low-cost face-shields and protective coveralls for hospital staff and sanitation workers.

In response to an invitation from the UK government, TLMEW and TLM Nepal together made a successful grant application to equip a COVID-19 testing unit, and isolation and treatment ward, at Anandaban Hospital. Through this grant, 58 health workers at Anandaban Hospital were trained in the diagnosis and treatment of COVID-19, and the hospital admitted and treated 230 COVID-19 patients, 81 of whom were affected by leprosy. The grant also enabled TLM Nepal to reach 10,000 households with COVID-19 awareness messaging and provide 1,700

households with food relief packages and hygiene supplies.

Funding was also provided to TLM hospitals in India to procure medical grade personal protective equipment and screening thermometers. Making these supplies available helped allay the fears of health workers, and enabled them to keep providing safe patient care.

Mental health challenges came into sharp focus during the pandemic. TLM Myanmar instituted a telephonebased outreach and counselling service for people affected by leprosy who were unable to attend self-care groups and hospital appointments. Other partners, such as KKM, provided advice and COVID-19 prevention education by telephone, on demand. These interventions helped to diffuse the intense anxiety many people affected by leprosy were feeling due to the upheaval and uncertainty of the pandemic.

Despite the challenges of the pandemic, we are pleased to report just some of the many highlights achieved in 2020:

TOWARDS ZERO TRANSMISSION

... is central to our strategy. These projects helped us to get closer to our goal.

families affected by COVID-19 and Cyclone Amphan, which hit West Bengal in May 2020.

TOWARDS ZERO DISABILITY

... is not just about preventing physical disability. These projects supported the management of leprosy complications to help prevent impairments, and also helped to improve mental health and promote social inclusion.

TOWARDS ZERO DISCRIMINATION

... is essential to protect the human rights and dignity of those affected by leprosy, as well as ensuring stigma is broken down and people affected can access treatment.

RESEARCH AND INNOVATION

... is a key priority. If we are to end leprosy in our lifetime, we need new tools to do so.

THE FUNDING AND POLICY ENVIRONMENT

... needs people to be more aware about leprosy for us to secure the resources and political will to end this disease.

FUNDRAISING

... is core to TLMEW’s work as without it none of our programmes would be possible.

PEOPLE

...at TLMEW, our staff, volunteers and partners are our principal asset. The following are just some of the ways we have recognised this in 2020:

2020 PROGRAMMES EXPENDITURE BY COUNTRY

2020 PROGRAMMES EXPENDITURE BY STRATEGIC AREA

GRANT MAKING POLICY

TLMEW IS COMMITTED TO ENSURING IT USES ITS FUNDS AS EFFICIENTLY AS POSSIBLE TO SUPPORT PEOPLE AFFECTED BY LEPROSY.

In 2020, £4,383,055 (2019: £4,722,922) was paid in overseas grants. Our programmes are implemented by partners who share our values; many of these are members of TLM Global Fellowship. In 2020, we worked with 58 partners across our 10 implementing countries, as well as UK universities.

These partner programmes are managed by national members of staff who deliver services and projects to people affected by leprosy. Occasionally we partner with organisations outside of TLM Global Fellowship who are in a region or community where they can deliver specific services to people affected by leprosy who would otherwise be neglected. Working with non-TLM partners is particularly important in Sri Lanka where there is no TLM office.

As well as working with people affected by leprosy, TLMEW also supports disabled people, and other marginalised groups (including those with other NTDs) to promote social inclusion.

These charts indicate the programmes budget spent in each of TLMEW’s 10 countries and the proportion of funds spent on each major strategic area in 2020.

FUTURE PLANS

IN 2021, TLMEW WILL PRIORITISE THE FOLLOWING AREAS:

DEFEATED,

ZERO LEPROSY TRANSMISSION

ZERO LEPROSY DISABILITY

ZERO DISCRIMINATION

RESEARCH AND INNOVATION

FUNDING AND POLICY ENVIRONMENT

FUNDRAISING

PEOPLE

STRUCTURE, GOVERNANCE, MANAGEMENT AND SAFEGUARDING

DEFEATED,

STRUCTURE

The Leprosy Mission was founded in 1874. The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man (The Leprosy Mission England and Wales) is a charitable company limited by guarantee. A revised Memorandum and Articles of Association was signed on 9 October 2005 to replace the previous document, and it has not been amended since signing. The charity number is 1050327; the company number is 3140347, registered in England and Wales.

TLMEW is autonomous yet operates under a charter as part of The Leprosy Mission’s Global Fellowship which was signed in 2011 by more than 30 international members. Proposed overseas projects requiring funding are validated and approved by a working group of the Global Fellowship, supported by TLM International (TLMI).

CONNECTED CHARITIES

The charity is a chartered member of The Leprosy Mission Global Fellowship of which TLMI is its secretariat, a connected charity with common values. In furtherance of the charity’s objectives, grants were made to overseas partners through TLM International Office totalling £3,251,422 (2019: £4,021,893). Grants paid directly to overseas partners totalled £1,131,633 (2019: £701,029).

On 3 July 2018, The Leprosy Mission Isle of Man was incorporated as a company limited by guarantee, under the Companies Acts 1931 to 2004 by the Department for Enterprise Isle of Man. Since formation the charitable company has been a subsidiary of The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man.

The Leprosy Mission Trading Limited (TLMT) is a subsidiary of TLM International. During the year, the charity received donations from TLMT activity totalling £464,106 (2019: £379,553).

GOVERNANCE

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of TLMEW for the purposes of company law) are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The trustees who served TLMEW during 2020 are detailed on page 1 of this report.

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the affairs of the charity and of the incoming resources and application of resources

of the charity for that year. In preparing these accounts, the trustees have:

In so far as the trustees are aware:

The Board of Trustees met five times during 2020, for four meetings plus one extraordinary meeting. Trustees are also encouraged to serve on one, or more, of the four board subcommittees: Finance and Planning, Personnel and Bursaries, Programmes, and Fundraising. These subcommittees meet on average three times a year; they have no delegated authority, so they bring recommendations to the full Board.

New trustees are appointed by the existing trustees and serve for a term of three years after which they may put themselves forward for reappointment. The trust deed provides for a minimum of five trustees, to a maximum of 15 trustees. Induction training of new trustees is undertaken by existing trustees, supported by senior staff, and includes a visit to the national office and safeguarding training.

INTERESTS OF THE TRUSTEES

The charity does not have share capital and is limited by guarantee.

RISK REVIEW

The trustees have a formal risk management strategy to assess business risks annually. The major risks for the charity have been identified and assessed, in particular those related to TLMEW’s operations and finances. The trustees are satisfied that systems are in place to mitigate the charity’s exposure to these risks.

MANAGEMENT

The Board-appointed National Director is responsible for strategy, planning and the daily management of operations. The National Director is supported by the Senior Management Team which has delegated authority for key aspects of TLMEW’s operations.

The National Director reports to the trustees on progress against the indicators and targets in the corporate strategy. The National Director and appropriate members of the Senior Management Team attend and report at meetings of sub-committees.

In 2019, a new five-year TLMEW strategy was implemented to ensure that TLMEW is working towards achieving Zero Leprosy Transmission, Zero Leprosy Disability, and Zero Leprosy Discrimination.

There is a policy for the setting of the remuneration of the National Director. The Chair of the Board of Trustees and Chair of the Personnel Committee appraise the National Director’s performance annually and establish any increase in line with the pay scheme which applies to all staff.

The charity’s trustees have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission.

The systems of internal control are designed to provide reasonable, but not absolute, assurance against misstatement or loss. These include:

accounts, variance from budgets and non-financial performance indicators.

FUNDRAISING GOVERNANCE

TLMEW’s fundraising activities in 2020 were undertaken and managed by TLMEW staff. Due to the pandemic, volunteer speakers remained inactive for safety reasons. We value the opinions of our supporters, so engaged focus groups in discussion around language and design of communications. We also solicited feedback on appeals and communications to ensure supporter needs were met.

We believe that our supporters are important members of The Leprosy Mission family, and regularly speak to many of them on the telephone. Over 2,000 calls were made to individual supporters last year by TLMEW staff. This was especially welcomed by many during the COVID-19 pandemic.

TLMEW is registered with the Fundraising Regulator and has complied fully with the Fundraising Code of Practice and requirements of the Regulator. All TLMEW staff are trained in areas of the code relating to their specific fundraising area.

TLMEW regularly reviews its practices to ensure that we are compliant with The General Data Protection Regulation (GDPR) which gives people rights in law regarding their personal data. All staff have undertaken GDPR training, and two members of staff have responsibility for ensuring that compliance is maintained. We never share personal information outside of The Leprosy Mission.

We also comply with the Mailing Preference Service and Telephone Preference Service, contacting only those registered with whom we have an existing relationship.

TLMEW works with external commercial partners such as will-writers and printers. We have contracts in place ensuring that all partners meet data protection law requirements.

In 2020, TLMEW received a total of seven fundraising-related complaints which were addressed in accordance with our Complaints Procedure. None were escalated to the Chair of the Board of Trustees.

TLMEW has a Trustee Fundraising Committee that met with senior staff on three occasions in 2020. This committee reports to the board and enables the trustees to remain engaged with fundraising activities and monitor adherence to the Code of Fundraising Practice.

TLMEW believes that safeguarding its supporters is paramount. To do this, a Fundraising and Vulnerable People Policy has been established and all TLMEW staff and volunteers are required to adhere to this policy. This policy protects vulnerable donors from making donations when they are not fully aware of the implications, and from perceived pressure to donate. As required by the Code of Fundraising Practice, all fundraising materials list a contact telephone number or email address for TLMEW so that supporters can inform us should they no longer wish to receive fundraising communications.

HONORARY PRESIDENT AND VICE PRESIDENTS

EMPLOYMENT OF PEOPLE AFFECTED BY LEPROSY AND DISABILITY

Globally, TLM employs numerous staff who have lived experience of leprosy. This is estimated at between five and 10% of the total staff. In 2020, TLMEW employed no staff affected by leprosy but actively encouraged people with disabilities, with the appropriate skills and experience, to apply for vacant positions. Two members of TLMEW staff are disabled.

STAFF DEVELOPMENT

Training and developing our staff remain key activities as TLMEW strives to serve those affected by leprosy. The skills framework, known as the Learning Pathway, is embedded in the organisation as a development tool, helping staff members to further their professional development. Opportunities for learning and development are provided through a wide curriculum of in-house courses, as well as external courses and networking events. During 2020, staff accessed an increased amount of training and learning as some providers gave free online seminars and online conferences enabled attendees to view the content of all seminars after the live event had closed.

TLMEW’s staff regularly engage in one-to-one meetings with their managers where personal development goals are discussed. TLMEW is a learning organisation; our aim is always to increase the efficiency and effectiveness of our work to maximise our impact for people affected by leprosy.

TLMEW partners with local universities and provides short term project-based intern opportunities for students from time to time. Due to COVID-19 restrictions, just one graduate undertook an internship, remotely, in 2020.

TLMEW’s Honorary President and Vice Presidents give freely of their time and are committed to raising awareness of leprosy and supporting those who are affected by it. Their support is invaluable.

SAFEGUARDING

TLMEW has a zero-tolerance approach to all forms of abuse and takes safeguarding very seriously. It has clear policies and procedures in place, based on The Leprosy Mission global policies, which are regularly reviewed. These policies include:

The TLM Global Safeguarding Children and Vulnerable Adults Policy and Procedures and the Code of Conduct were reviewed in 2020 to make them more survivor centred. These will be contextualised and rolled out by all TLM Global Fellowship Members, including TLMEW, during 2021.

The Leprosy Mission contracts an independent whistleblowing service (Safecall) which covers all TLM Global Fellowship members, including TLMEW, should anyone not want to use the internal reporting system.

DURING 2020:

During 2020, there was one safeguarding incident reported involving a partner supported by TLMEW. This incident was reported to the Charity Commission by TLM International. The incident was responded to in a timely and appropriate manner, coordinated by TLMI, which was reflected in the Charity Commission’s positive feedback on TLM’s response.

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RESERVES
POLICY
LEPROSY
DEFEATED,
LIVES
TRANSFORMED
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The trustees’ policy regarding reserves is to seek to maintain unrestricted funds, other than those designated from time to time for specific purposes, at a level that provides TLMEW with enough working capital to carry on its existing activities successfully and to develop new areas of endeavour.

The trustees have reviewed the activities and commitments of the charity and determined that to ensure continuity of activities and honour contractual liabilities, a level of free reserves should be maintained at around three months’ expenditure. As 2020 was an unusual year, and not a good guide for 2021, we will retain the level of free reserves calculation for last year meaning the appropriate level of free reserves should remain at £2,038,060. As of 31 December 2020, the total free reserves stood at £3,441,546 (2019: £1,615,632). This is £1,403,486 in excess of the policy level.

The level of reserves increased dramatically in the final quarter of 2020. This will provide a buffer in what is a turbulent time for all charities. It will be particularly helpful as a significant proportion of the first four months’ income in 2021 will be restricted to Mozambique and so the first few months’ overseas remittance will need to be funded from these free reserves. We have also committed to a record overseas remittance in 2021 totalling £5.7 million, whilst also recognising that there may be some unforeseen needs in the 10 countries where we work during the year.

As of 31 December 2020, the total reserves were made up as follows:

RESERVES
Restricted funds
Designated funds
Unrestricted funds
TOTAL RESERVES*		 2020 (£)
2019 (£)
1,379,122
1,053,080
2,312,289
2,155,369
3,441,546
1,615,632
7,132,957
4,824,081

* £1,403,486 (2019: £422,428) in excess of free reserves policy.

The charity is confident that it will meet the required pension contributions from its projected income without significantly impacting on its planned level of charitable activity. It continues to calculate its free reserves without setting aside designated reserves to cover the pension liability.

FINANCIAL SUMMARY

DEFEATED,

The full statement of financial activities follows the Auditors' Report. The highlights are:

OFF BALANCE SHEET INCOME GENERATED WITH SUPPORT FROM TLMEW FOR OTHER MEMBERS OF THE TLM GLOBAL FELLOWSHIP

J W Hinks LLP acted as auditors for The Leprosy Mission England and Wales.

Signed on behalf of the Trustees

………………………………………………..

Andy Lancaster (Chair)

Approved by the Trustees on 4 June 2021

INDEPENDENT AUDITOR’S REPORT & FINANCIAL STATEMENT

DEFEATED,

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

Opinion

We have audited the financial statements of The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

PAGE 44 — INDEPENDENT AUDITOR’S REPORT- 31 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the trustees' r eport.

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

In preparing the accounts, the Trustees are responsible for assessing the charity’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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

PAGE 45 — INDEPENDENT AUDITOR’S REPORT- 32 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN INDEPENDENT AUDrroR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN Extsnt to whlch th• 8udft was ¢onsld•r•d u￿bI• of d•t•ctlng Irr•gul•rltl•s. Includlng fraud Irrogularit19s. Including fraud. are instances of nonllcompliance wlh laws and r8gulations. We design proc8dur•$ in line wlh our responsibilities. outlined above and on the Finanual Reporting Counul's website. to detect m8terlal mlggtslements In respect of irregulo1i¢les. induding fraud. We obtain and update our underslandlng of the entty. its activibes, its control environment, And likely future developments. including in r•lation lo the legal and regul810ry fr8mowot* appl￿b￿ and hcw4 th8 8nUty 1$ complying wth that framework. Based on this understanding, we identify and assess th8 dsks of material ml$slalemenl of the finan¢4al stslements, whether due to fraud or error. design and porfom audit procedures resp)nstve to those risks. and obtsin audit widonce thal is sufficient aThl appropriatg lo provhle a basis for our opinion. This includes C(￿IderatIon of the risk ol ￿ by the enbty that were contrary to app1kab￿ law6 and regulallon8, including fraud. In response lo the rtsk of Irregularities and nortr<omplian¢o with 18WS and regulalion8, Indudlng fraud. we designed procedu￿6 whlch in¢luded'. Enqulry ol managomenl and those chwg•d whh govamance around acbjal and Fotenllal litigation and claims a$ well a$ actual, $usp8cted and alloged fraud; Reviewing minutes of meetings of those Charged wtth govemonce; Assessing the èxtent of ￿Mpli8ftCe wth Ihe laws and regulatitins considored lo havo a dir8cI mal6rt81 gffecl on Ihe flnandal slatem9nts ¢y Ihg operalKJns of the enb.ty through enqulry and inspection; Reviewing finanual sialemenl di5ck)sures and tgsting to supporb'ng documentslion lo 8$$•8s compliance with applitsU• laws and f8gulab'on¥', Perfomiing gudil work over the ft5k ol managément blas arwj o¥errld8 ol controls, indudlng lesllng of journal entries ar￿ Ot￿r adjustments lor appropriat8ness, evalualing tht business rationale of signifi¢anl Irans8¢tions outside the nO￿oI0)urSe of businèss and reviewing ￿untIng eslimales for indicalofs of potential tmas. Because of th8 Inherent limitations of an audlt, thère is a fisk thal we wll not d•t•ct all irregul8rllle$, Includlng those leading lo a material misstatement in the financi81 $tat•ments or nonacLJmplianco with rggulation. This risk Incrgases the more Ihal complian￿ o law or regulation is removed from thg W9nls and transactions reflected in Ihg financial statements, as we wll be less likely lo bg¢om8 aware of instan￿$ of non- compliance. The risk ol not delecling a mèteri¥l misstatement re5ulling from fraud is hkjher than for one rfj$ultin9 from error, as fraud may invofve collusion, forgery. inlenlional omlssk•ns, mlsrepr&sentalions, or the override of intemal control. U¥• of our r•port Thls report Is made solety to the charitable ¢ompanls members, as a body. in accordan￿ with Chapter 3 of Part 16 01 the Companies Act 2006. OUT audrt work has been undertaken so that we mwJhl st8te lo thg Charilable compan￿$ members those matters we 8re required to state lo ihem in an auditors, report and for no olhor purpose. To tho ful￿$1 exiont porni￿ed by law. we do r￿t accept or assumo msponsibility to anyone other than the charilable company and ihe Charitab￿ c4)mpany'$ mèmbars as a body, lor OUT audit work. for this report. or for th we have fomed. P•t•r Smlth ACA FCCA IS•nlor Statutory Auditorl For ond on b•holf of JW Hlnk$ LLP 4M2DII Chartered A¢¢ountants Statutory Audltor 19 Highfield Road Edgbaston Bim)ingham B15 3BH PAGE 46 INDEPENDENT AUDITOR'S REPORT

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

, ,
AND THE ISLE OF MAN
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
Current financial year
Unrestricted
funds
2020
Notes
£
Income and endowments from:
Restricted
funds
2020
£
Total
2020
£		 PAGE 47 — NO MATTER HOW FAR

Total
2019
£
Donations and legacies
3
6,924,555		 2,933,138 9,857,693 8,044,430
Income from investments
4
15,037		 - 15,037 18,179
Other income
5
116,704		 - 116,704 -
Total income
7,056,296		 2,933,138 9,989,434 8,062,609
Expenditure on:
Expenditure on r aising funds
6
2,024,136
Expenditure on c haritable activities
7
3,049,398
Total resources expended
5,073,534
Net gains/(losses) on investments
12
72
Net incoming/(outgoing) resources
1,982,834		 -
2,607,096
2,607,096
-
326,042		 2,024,136
5,656,494
7,680,630
72
2,308,876		 TLM – ANNUAL REPORT 2020
2,028,435
6,123,803
8,152,238
212
(89,417)
Other recognised gains and losses
Actuarial (loss)/gain on defined benefit pension
schemes
-		 - - 287,000
Net movement in funds
1,982,834
326,042
Fund balances at 1 January 2020
3,771,001
1,053,080
Fund balances at 31 December 2020
5,753,835
1,379,122
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income
under the Companies Act 2006.		 LEPROSY DEFEATED, LIVES TRANSFORMED
2,308,876
197,583
4,824,081
4,626,498
7,132,957
4,824,081

and expenditure account

PAGE 47 — FINANCIAL STATEMENT- 34 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Prior financial year
Unrestricted
Restricted
funds
funds
2019
2019
Notes
£
£
Income and endowments from:
Donations and legacies
3
5,322,146
2,722,284
Income from investments
4
18,179
-
Total income
5,340,325
2,722,284
Expenditure on:
Expenditure on r aising funds
6
2,028,435
-
Expenditure on c haritable activities
7
4,239,553
1,884,250
Total resources expended
6,267,988
1,884,250
Net gains/(losses) on investments
12
212
-
Net incoming/(outgoing) resources
(927,451)
838,034
Other recognised gains and losses
Actuarial (loss)/gain on defined benefit pension schemes
287,000
-
Net movement in funds
(640,451)
838,034
Fund balances at 1 January 2019
4,411,452
215,046
Fund balances at 31 December 2019
3,771,001
1,053,080		 Total
2019
£
8,044,430
18,179
8,062,609
2,028,435
6,123,803
8,152,238
212
(89,417)
287,000
197,583
4,626,498
4,824,081

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

PAGE 48 — FINANCIAL STATEMENT- 35 -

THE LEPROSY MISSION ENGLAND, WALES. THE CHANNEL ISLANDS AND THE ISLE OF MAN BALANCE SHEEr ASAT 31 DECEMBER 2020 2020 2019 Nots* Flx•d a$￿ts Tangible assets 5nveslmenls 14 15 456.179 485.847 504.288 485,775 942.026 990,063 Current M••ts Debiors Cash at bank and In hand 17 1.405.562 5.064,475 792.931 3,315.593 6,470.037 4,108,524 Cr•dltorn: amounts falllng du• wlthSn on• y04r 18 (279,1(k%l 1274,506 Nel current 4ss91s 6.190,931 3,834.018 Tot•1 ••••t¥ l••• curr•nt Il•bllltl•¥ 7,132,957 4.824,081 In¢om• fvnd• Restricted funds Unreslri¢led fund oe8ignaled funds General unrestrictod funds 21 1,379.122 1.053,080 20 2.312.289 3.441.546 2.155.369 1.615,632 5,753.835 3.771,001 7.132.957 4,824,081 4 2•U The financial slalements were approved by IM Trustees on......................... Mr A Lancaster Trust•• Mr P Watson Trustee Company R•glstratlon No. 03140347 PAGE 49 FINANCIAL STATEMENT

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from operations
28
Investing activities
Purchase of tangible fixed assets
Investment income
Net cash used in investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
£
1,775,872
(42,027)
15,037
(26,990)
-
1,748,882
3,315,593
5,064,475		 2019
£
£
64,542
(99,871)
18,179
(81,692)
-
(17,150)
3,332,743
3,315,593

PAGE 50 — FINANCIAL STATEMENT- 37 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man is a private company limited by guarantee incorporated in England and Wales. The registered office is The Leprosy Mission, Goldhay Way, Orton Goldhay, Peterborough, PE2 5GZ, United Kingdom.

1.1 Accounting convention

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) effective 1 January 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

1.2 Going concern

The financial statements have been prepared on a going concern basis as the T rustees believe that no material uncertainties exist. The Tr ustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements , including the anticipated impact of COVID-19 . The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

1.3 Income

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity. However it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

The charity receives government grants in respect of its activities. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

PAGE 51 — FINANCIAL STATEMENT- 38 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

1.4 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Costs of raising funds; Expenditure on charitable activities; and

Other expenditure represents those items not falling into the categories above.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and other administrative costs.

The allocation of support costs includes an element of judgement and the charity has had to consider the cost benefit of detailed calculations and record keeping. The allocations shown are therefore the best estimate of the costs incurred in providing IT, payroll, finance and other central services for the charity. Cost allocation has been attributed on the basis of estimated time spent on each activity or if this is not appropriate then on a basis consistent with the use of resources.

1.5 Tangible fixed assets

Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold buildings 2 per cent of cost per annum
Improvements to property 10 per cent and 20 per cent of cost per annum
Fixtures, fittings & equipment 33 1/3 per cent of cost per annum
Motor vehicles 25 per cent of cost per annum

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

PAGE 52 — FINANCIAL STATEMENT- 39 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies (Continued)

1.6 Fixed asset investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in 'net gains / (losses) on investments' in the SoFA.

1.7 Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising frm impairment are recognised in expenditure.

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

PAGE 53 — FINANCIAL STATEMENT- 40 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.10 Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company participates in a non-contributory multi-employer pension scheme, that has been closed to new members, providing benefits based upon career averaged revalued earnings. The company’s pension contributions are determined by a qualified actuary on the basis of triennial valuations. The actuary has identified the proportion of the group scheme liability which is owed by The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man. A provision has been included in the accounts and the contributions to reduce the deficit are accounted for when paid.

For defined contribution schemes the amount charged to the Statement of Financial Activities in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

1.11 Leases

Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.

1.12 Foreign exchange

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All differences are included in net outgoing resources.

1.13 Fund accounting

Funds held by the charity are either:

i) Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the T rustees.

ii) Designated funds – these are funds set aside by the T rustees out of unrestricted general funds for specific purposes or projects.

iii) Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charity.

2 Critical accounting estimates and judgements

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

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

PAGE 54 — FINANCIAL STATEMENT- 41 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3
Donations and legacies
Unrestricted
Restricted
funds
funds
£
£
Individual supporters
2,728,173
192,859
Donations through Isle of Man
31,668
-
TLM Trading income
207,009
257,097
Legacies receivable
2,824,898
1,051,828
Government and institutions
-
1,279,357
Community fundraising
554,018
32,142
Trusts and foundations
83,151
119,855
Gift Aid
435,907
-
Stamps and collectables
34,378
-
Other donations
25,353
-
For the year ended 31 December 2020
6,924,555
2,933,138
For the year ended 31 December 2019
5,322,146
2,722,284
Grants receivable for core activities included in the above
Jersey Overseas Aid
-
224,716
Guernsey Overseas Aid & Development Commission
-
44,932
Isle Of Man Government
-
49,500
FCDO Aid Match Heal Nepal
-
372,813
FCDO Rapid Response C-19
-
115,129
Tearfund
-
50,000
FCDO FOUND
-
293,698
FCDO Aid Match Mozambique Livelihoods and Food
Security
-
-
Comic Relief
-
101,205
European Commission CREATE 136-652/DD/ACT/IN
-
-
RIGHT1
-
21,464
Advocacy of Empowerment
-
5,900
Grants from Governments and Institutions
-
1,279,357
Haverstock Charitable Trust
-
2,500
Jersey Side by Side
-
-
St Lazarus Charitable Foundation
-
30,402
Candap Trust
-
-
The Bridgewater Charitable Trust
-
56,000
The James Tudor Foundation
-
17,689
Other grants
-
106,591
-
1,385,948
3
Donations and legacies
Unrestricted
Restricted
funds
funds
£
£
Individual supporters
2,728,173
192,859
Donations through Isle of Man
31,668
-
TLM Trading income
207,009
257,097
Legacies receivable
2,824,898
1,051,828
Government and institutions
-
1,279,357
Community fundraising
554,018
32,142
Trusts and foundations
83,151
119,855
Gift Aid
435,907
-
Stamps and collectables
34,378
-
Other donations
25,353
-
For the year ended 31 December 2020
6,924,555
2,933,138
For the year ended 31 December 2019
5,322,146
2,722,284
Grants receivable for core activities included in the above
Jersey Overseas Aid
-
224,716
Guernsey Overseas Aid & Development Commission
-
44,932
Isle Of Man Government
-
49,500
FCDO Aid Match Heal Nepal
-
372,813
FCDO Rapid Response C-19
-
115,129
Tearfund
-
50,000
FCDO FOUND
-
293,698
FCDO Aid Match Mozambique Livelihoods and Food
Security
-
-
Comic Relief
-
101,205
European Commission CREATE 136-652/DD/ACT/IN
-
-
RIGHT1
-
21,464
Advocacy of Empowerment
-
5,900
Grants from Governments and Institutions
-
1,279,357
Haverstock Charitable Trust
-
2,500
Jersey Side by Side
-
-
St Lazarus Charitable Foundation
-
30,402
Candap Trust
-
-
The Bridgewater Charitable Trust
-
56,000
The James Tudor Foundation
-
17,689
Other grants
-
106,591
-
1,385,948		 Total
2020
£
2,921,032
31,668
464,106
3,876,726
1,279,357
586,160
203,006
435,907
34,378
25,353
9,857,693
224,716
44,932
49,500
372,813
115,129
50,000
293,698
-
101,205
-
21,464
5,900
1,279,357
2,500
-
30,402
-
56,000
17,689
106,591
1,385,948
Total
2020
£
2,921,032
31,668
464,106
3,876,726
1,279,357
586,160
203,006
435,907
34,378
25,353
9,857,693
224,716
44,932
49,500
372,813
115,129
50,000
293,698
-
101,205
-
21,464
5,900
1,279,357
2,500
-
30,402
-
56,000
17,689
106,591
1,385,948

PAGE 55 — FINANCIAL STATEMENT- 42 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Donations and legacies (Continued)

Co-funding for FCDO and EC funded projects was provided from other donors. The corresponding expenditure is included within grants payable (see note 8).

4 Income from investments

Rental income
Income from listed investments
Interest receivable		 2020
£
10,418
101
4,518
15,037		 2019
£
10,314
115
7,750
18,179

Income from investments is attributable to unrestricted funds.

5 Other income

Unrestricted
funds
2020
£
Job retention scheme income
116,704
Expenditure on r aising funds
2020
£
Costs of generating voluntary income
Fundraising appeals
695,829
Marketing and communications
146,313
Community fundraising and volunteering
55,968
Staff costs
1,124,671
Costs of generating voluntary income
2,022,781
Investment management
1,355
2,024,136		 Total
2019
£
-
2019
£
618,731
143,010
158,833
1,106,601
2,027,175
1,260
2,028,435

6 Expenditure on r aising funds

PAGE 56 — FINANCIAL STATEMENT- 43 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Expenditure on c haritable activities

Staff costs
Advocacy
FCDO Aid Match - Livelihoods & Food Security, Mozambique - UK costs
JOA - CLRS Ethiopia - UK costs
RIGHT 1 - UK costs
EC- CREATE, India - UK costs
FCDO FOUND - UK costs
Mozambique LCP - UK costs
FCDO Heal Nepal - UK costs
Grant funding of activities (see note 8)
Share of support costs (see note 9)
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds
Restricted funds
8
Grants payable
Grants to institutions:
The Leprosy Mission International, Brentford, UK
TLM Trust India
Stepping Stones
Brighter Future India
TLM Mozambique
TLM Nepal
ENAPAL
TLM Nigeria		 2020
£
207,339
5,012
-
24,931
1,645
-
6,010
15,453
-
260,390
4,383,055
934,813
78,236
5,656,494
3,049,398
2,607,096
5,656,494
2020
£
3,251,422
-
19,197
74,462
103,838
722,205
46,854
165,077
4,383,055		 2019
£
181,758
6,492
2,056
4,534
671
3,228
-
16,888
1,923
217,550
4,722,922
1,106,299
77,032
6,123,803
4,239,553
1,884,250
6,123,803
2019
£
4,021,893
15,395
24,040
63,026
182,686
289,531
40,351
86,000
4,722,922

PAGE 57 — FINANCIAL STATEMENT- 44 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

9
Support costs
Staff costs
Depreciation and loss on disposal of fixed assets
Management, finance and administration
Audit fees
Legal and professional
Board and committee expenses		 Support
costs
Governance
costs
£
£
527,010
27,727
90,136
-
317,667
-
-
7,800
-
42,204
-
505
934,813
78,236		 2020
£
554,737
90,136
317,667
7,800
42,204
505
1,013,049		 2019
£
685,081
99,575
352,067
7,800
30,629
8,179
1,183,331

10 Trustees' and key management personnel remuneration and expenses

None of the Trustees (or any persons connected with them) received or waived any remuneration during the year. The National Director of The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man is the company secretary and a non-voting ex-officio member of the Board of Trustees.

The total amount of employee benefits received by key management personnel is £78,805 (2019 - £84,681). The charity considers its key management personnel comprises of the National Director.

During the year one of the members was reimbursed a total of £266 travelling expenses (2019 - eleven members were reimbursed £4,633).

PAGE 58 — FINANCIAL STATEMENT- 45 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

11 Employees

Number of employees

The average monthly number of employees and full time equivalent (FTE) during the year was:

Management and administration
Fundraising and publicity
Project support and development
Employment costs
Wages and salaries
Social security costs
Other pension costs
Other staffing costs		 2020
Number
13
21
13
47		 2020
FTE
12
20
13
45		 2019
Number
14
21
11
46
2020
£
1,500,861
152,712
166,255
1,819,828
66,919
1,886,747		 2019
FTE
13
20
11
44
2019
£
1,535,816
151,703
191,864
1,879,383
94,057
1,973,440

Included in the above are redundancy costs of £31,039 (2019 - £39,169 relating to four employees), which relate to three employees.

Staff costs include seven (2019 - four) posts that are full or partly funded by institutional donors, totalling £157,475 (2019 - £13,184).

The number of employees whose annual remuneration was £60,000 or more were:

2020 2019
Number Number
£70,001 - £80,000 1 1

Pension contributions of £7,543 (2019 - £7,502) were made to Friends Life on behalf of one higher paid employee.

PAGE 59 — FINANCIAL STATEMENT- 46 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Net gains/(losses) on investments

Net gains/(losses) on investments
Unrestricted Unrestricted
funds funds
2020 2019
£ £
Revaluation of investments 72 212

13 Taxation

The company is a registered charity and as such, for taxation purposes, is entitled to exemption from United Kingdom taxation under section 505 of the Income and Corporation Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992.

14 Tangible fixed assets

Cost
At 1 January 2020
Additions
At 31 December 2020
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Land and
buildings
£
427,519
-
427,519
132,208
5,700
137,908
289,611
295,311		 Improve-
ments to
property
Fixtures,
fittings &
equipment
£
£
197,956
389,990
-
42,027
197,956
432,017
186,570
192,399
5,940
78,496
192,510
270,895
5,446
161,122
11,386
197,591		 Motor
vehicles
£
29,013
-
29,013
29,013
-
29,013
-
-		 Total
£
1,044,478
42,027
1,086,505
540,190
90,136
630,326
456,179
504,288

PAGE 60 — FINANCIAL STATEMENT- 47 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

15 Fixed asset investments

Listed
investments
Investment
properties
£
£
Cost or valuation
At 1 January 2020
3,294
482,481
Valuation changes
72
-
At 31 December 2020
3,366
482,481
Carrying amount
At 31 December 2020
3,366
482,481
At 31 December 2019
3,294
482,481		 Total
£
485,775
72
485,847
485,847
485,775

The fair value of the investment property has been arrived at by a formal valuation on an open market value basis.

The fair value of listed investments is determined by reference to the quoted price for identical assets in an active market at the balance sheet date.

16
Financial instruments
Carrying amount of financial assets
Listed investments
Legacies receivable
Income tax recoverable
Other debtors
Bank and cash
Measured at cost
Carrying amount of financial liabilities
Other taxation and social security
Trade creditors
Measured at cost		 2020
£
3,366
924,299
39,088
377,561
5,064,475
6,408,789
38,353
77,489
115,842		 2019
£
3,294
558,655
29,973
134,828
3,315,593
4,042,343
38,528
96,521
135,049

PAGE 61 — FINANCIAL STATEMENT- 48 -

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

17
Debtors
Amounts falling due within one year:
Legacies recoverable
Income tax recoverable
Other debtors
Prepayments and accrued income		 2020
£
924,299
39,088
377,561
64,614
1,405,562		 2019
£
558,655
29,973
134,828
69,475
792,931

18 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals		 2020
£
38,353
77,489
28,427
134,837
279,106		 2019
£
38,528
96,521
39,963
99,494
274,506

19 Pension and other post-retirement benefit commitments

The company participates in a non-contributory multi-employer pension scheme providing benefits based upon career averaged revalued earnings. The company’s pension contributions are determined by a qualified actuary on the basis of triennial valuations. The company’s share of the underlying assets and liabilities of the scheme is estimated to be £nil (2019 - £nil).

After taking into account the results of the triennial valuation carried out as at 31 December 2018, it has been agreed to continue to make contributions of £90,000 per annum of which The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man will contribute £22,000 per annum. These payments will increase each year in line with the Retail Prices Index. The contributions will be reviewed at the next triennial valuation.

The career averaged revalued earnings scheme has been closed to new members effective from 12 November 2007 and has been closed to future accrual from 1 April 2013.

A Group Personal Pension Scheme (GPP) has been set up with Friends Life. Employers make a contribution of 10% of the monthly pensionable salary to Friends Life.

The company's total pension cost for the year amounted to £166,255 (2019 - £191,864).

PAGE 62 — FINANCIAL STATEMENT

PAGE 63 FINANCIAL STATEMENT

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the T rustees for specific purposes:

Balance at
1 January 2019
Expenditure
£
£
Tangible assets fund
986,473
(75,761)
Pension reserve
(287,000)
-
Legacy reserve
700,000
-
Property reserve
468,600
-
Hardship fund
-
-
1,868,073
(75,761)		 Transfers
Investments
gains/losses
Balance at
1 January 2020
Expenditure
£
£
£
£
76,057
-
986,769
(90,136)
-
287,000
-
-
-
-
700,000
-
-
-
468,600
-
-
-
-
-
76,057
287,000
2,155,369
(90,136)		 Transfers
Balance at
31 December
2020
£
£
42,027
938,660
-
-
200,000
900,000
-
468,600
5,029
5,029
247,056
2,312,289

The Trustees have created a designated reserve in respect of the value of the tangible fixed assets and the fixed asset investment property as they are not freely available to spend as grants.

The pension reserve reflects the total deficit payable on the defined benefit pension scheme.

The legacy reserve has been created to help protect against the unpredictable future flows of legacy income.

The property reserve has been created from proceeds received from the sale of a property in the year to fund any future property purchases.

The hardship fund has been set up for staff to apply to in case of financial difficulties. This has been funded by the Chief Executive.

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21 Restricted funds

The income funds of the charity include restricted funds comprising the following balances of donations and grants held on trust for specific purposes:

Balance at
1 January 2019
£
Jersey - Ethiopia - CLRS
13,931
Feet First (Individuals)
84,359
FCDO Aid Match Mozambique Livelihoods and Food Security
-
European Commission CREATE 136-652/DD/ACT/IN
5,690
LCP Project - Mozambique
11,066
Customise Footwear Orthotics - India
100,000
Myanmar - SLICE
-
Myanmar - Integrated Rehabilitation & Improved Access (Project
Grace)
-
Isle of Man - Overseas Funds ( Wheels that Heal)
-
Classrooms Danja Niger
-
Biogas Anandaban Hospital Reconstruction
-
FCDO Aid Match Heal Nepal
-
Nepal (supporters funds)
-
RIGHT 1
-
Guernsey Orthopaedic Care Nigeria
-
FCDO FOUND
-
FCDO Rapid Response C-19
-
Comic Relief - Open Mind
-
Bihar - India
-
Other income
-
215,046		 Movement in funds
Income
Expenditure
Balance at
1 January 2020
£
£
£
108,541
(46,184)
76,288
-
(84,359)
-
5,000
(5,000)
-
74,123
(79,813)
-
197,083
(193,894)
14,255
-
(17,239)
82,761
20,000
(20,000)
-
30,000
(30,000)
-
49,500
(49,500)
-
19,970
(19,970)
-
20,000
(20,000)
-
49,480
(304,116)
(254,636)
2,025,762
(884,983)
1,140,779
-
(6,367)
(6,367)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
122,825
(122,825)
-
2,722,284
(1,884,250)
1,053,080		 Movement in funds
Income
Expenditure
Balance at
31 December
2020
£
£
£
105,794
(70,229)
111,853
-
-
-
-
-
-
-
-
-
118,922
(131,354)
1,823
-
(44,848)
37,913
20,000
(20,000)
-
30,000
(30,000)
-
49,500
(46,306)
3,194
19,970
(19,970)
-
-
-
-
372,813
(316,295)
(198,118)
-
(628,402)
512,377
21,464
(9,838)
5,259
24,963
(24,963)
-
293,698
(370,968)
(77,270)
115,129
(147,523)
(32,394)
101,205
(96,720)
4,485
1,000,000
-
1,000,000
659,680
(649,680)
10,000
2,933,138
(2,607,096)
1,379,122

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21 Restricted funds

(Continued)

The Feet First Campaign from individual donors, in partnership with the UK Aid Match Campaign, is to be used from TLM project in Africa.

FCDO Aid Match - Mozambique Livelihoods and Food Security funds livelihood support for people affected by leprosy in Mozambique in partnership with TLM Mozambique and Food for the Hungry.

European Commission – CREATE (CSOs for Resource mobilization, Empowerment, Advocacy, Training and Employment) was the final payment for an advocacy and empowerment project in India implemented in partnership with TLM Trust India and Brighter Future.

Jersey Overseas Aid funded 2 projects: 1) Comprehensive Leprosy and Rehabilitation Services, Ethiopia; 2) Leprosy Control and POD, Mozambique.

The funding from a major donor was given to develop the customized footwear project initially trialled in India.

Tearfund Asia Team funded 2 projects implemented by TLMI Myanmar: 1) Strengthening Local Initiatives and Community Empowerment (SLICE) and 2) Project Grace, part of the Integration Rehabilitation and Improved Access Programme.

Guernsey Overseas Aid and Development Commission funded 2 projects: 1) Classrooms, Maradi, Niger and 2) Biogas, Anandaban Hospital Reconstruction, Nepal.

Isle of Man Government International Development funded the ‘Wheels that Heal’ project in Nigeria.

FCDO Aid Match Heal Nepal is for a project targeted towards zero leprosy transmission and zero leprosy disability in Nepal and is paid in arrears by FCDO, pre financing was taken from TLMEW general funds and this has resulted in a negative restricted fund balance at the year end.

Nepal (supporters funds) is funding from individual donors, in partnership with the UK Aid Match HEAL Nepal Campaign, and is to be used for projects in Nepal.

RIGHT 1 is a research project funded by NIHR and implemented in partnership with the University of Birmingham. TLMEW is paid in arrears for its part in this research which is focused on wound care in India, Nepal and Nigeria.

Guernsey Orthopaedic Care Nigeria provides materials and equipment to enable the provision or orthotics and prosthetics for people affected by leprosy and disability.

FCDO FOUND is to support people with disabilities into employment in Nepal. This is paid in arrears by FCDO, pre financing was taken from TLMEW general funds and this has resulted in a negative restricted fund balance at the year end.

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

21 Restricted funds

(Continued)

FCDO Rapid Response Covid-19 is to fund COVID related activities at Anandaban Hospital in Nepal. This is paid in arrears by FCDO, pre financing was taken from TLMEW general funds and this has resulted in a negative restricted fund balance at the year end.

Comic Relief – Open Minds project is focused on improving the mental health of young people in Nigeria.

Bihar India – This funding is for leprosy work that benefits people affected by leprosy in the State of Bihar, India.

Other represents donations and grants given for specific purposes of The Leprosy Mission. All such income has either been remitted directly to overseas implementing partners or via TLM International in accordance with the restrictions of the donor.

22 Analysis of net assets between funds

Unrestricted
funds
Designated
funds
Restricted
funds
2020
2020
2020
£
£
£
Fund balances at 31 December 2020 are
represented by:
Tangible assets
-
456,179
-
Investments
3,366
482,481
-
Current assets/(liabilities)
3,438,180
1,373,629
1,379,122
3,441,546
2,312,289
1,379,122		 TotalUnrestricted
funds
Designated
funds
2020
2019
2019
£
£
£
456,179
-
504,288
485,847
3,294
482,481
6,190,931
1,612,338
1,168,600
7,132,957
1,615,632
2,155,369		 Restricted
funds
2019
£
-
-
1,053,080
1,053,080		 Total
2019
£
504,288
485,775
3,834,018
4,824,081

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

23 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2020
£
1,970
13,902
15,872		 2019
£
2,704
15,872
18,576

24 Contingent assets

The charity has been notified of legacies with an estimated value of £953,000 which have not been recognised as income at 31 December 2020 because no notification of impending distribution or approval of estate accounts has been received.

25 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).

26 Subsidiaries

On 3 July 2018, The Leprosy Mission Isle of Man was incorporated as a company limited by guarantee, under the Companies Acts 1931 to 2004 by the Department for Enterprise Isle of Man. Since formation the charitable company has been a subsidiary of The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man .

The charitable company started to collect donations during the course of the year, totalling £31,668, which have all been paid to The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man . 217 27 Analysis of changes in net funds

Analysis of changes in net funds
At 1 January Cash flows At 31 December
2020 2020
£ £ £
Cash at bank and in hand 3,315,593 1,748,882 5,064,475
3,315,593 1,748,882 5,064,475

PAGE 68 — FINANCIAL STATEMENT

THE LEPROSY MISSION ENGLAND, WALES, THE CHANNEL ISLANDS AND THE ISLE OF MAN

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

28
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase in creditors
Cash generated from operations		 2020
£
2,308,876
(15,037)
(72)
90,136
(612,631)
4,600
1,775,872		 2019
£
(89,417)
(18,179)
(212)
99,575
12,928
59,847
64,542

PAGE 69 — FINANCIAL STATEMENT- 55 -

 The Leprosy Mission England, Wales, the Channel Islands and the Isle of Man, Goldhay Way, Orton Goldhay Peterborough, PE2 5GZ

 01733 370505 Facebook The Leprosy Mission England & Wales  post@tlmew.org.uk twitter @leprosytalk globe leprosymission.org.uk INSTAGRAM leprosymission

Registered Charity No. 1050327 | A Company Limited by Guarantee Registered in England and Wales No. 3140347