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2020-12-31-accounts

FUNDAÇ Ã O FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA

(FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

FUNDAÇ Ã O FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

CONTENTS

Page
Legal and administrative information 1
Report of the Trustees 2 - 7
Report of the Auditors 8 – 11
Statement of financial activities 12
Balance sheet 13
Cash flow statement 14
Notes to the financial statements 15 – 23

FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees and Directors Asif Adatia (Chairman) (Appointed 13 January 2020)
Salimah Bhaloo Dharssi (Vice Chair) (Appointed 13 January 2020)
Imran Amir Ali (Appointed 13 January 2020)
Ali Eqbal Rupani (Appointed 13 January 2020)
Farzin Mirshahi (Appointed 13 January 2020)
Inaete Jamal Merali (Appointed 13 January 2020)
M. Azzim Gulamhussen (Appointed 13 January 2020)
Naushad Jivraj (Chairman) (Resigned 13 January 2020)
Sahinaz Nasser (Vice Chair) (Resigned 13 January 2020)
Sherali Lakhani (Resigned 13 January 2020)
Raisa Hemani (Resigned 13 January 2020)
Faiz Mitha (Resigned 13 January 2020)
Shahin Boghani (Resigned 13 January 2020)
Munir Karmali Ahmad (Resigned 13 January 2020)
Martin Hermann Bartels (Resigned 13 January 2020)
Mounir Nourmamode (Resigned 13 January 2020)
Founders Shamir Samdjee
Rahim Firozali Samji
Naushad Jivraj
Company Secretary Salimah Bhaloo Dharssi (Appointed 13 January 2020)
Sherali Lakhani (Resigned 13 January 2020)
Registered office and principal The Ismaili Centre
operating office 1 Cromwell Gardens
London SW7 2SL
Telephone: 020 7590 5499
Company number FC019123
Charity number 1054174
Auditors UHY Hacker Young LLP
Quadrant House
4 Thomas More Street
London
E1W 1YW
Bankers Lloyds Bank Plc
39 Piccadilly
London
W1V 0AA
Solicitors Fieldfisher LLP
Riverbank House
2 Swan Lane
London
EC4R 3TT

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FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their report together with the financial statements of Fundação Focus Assistência Humanitária Europa (FOCUS Europe) for the year ended 31 December 2020. The financial statements have been prepared in accordance with the requirements of the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ (SORP) in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102) issued in October 2019 and the Charities Act 2011 and the UK Generally Accepted Practice as it applies from 1 January 2015. The report and the financial statements also comply with the Companies Act 2006 and the Civil Code of the Republic of Portugal as well as FOCUS Europe’s governing document.

LEGAL STATUS

FOCUS Europe is an entity incorporated in Portugal (register number 503904090). The governing document of FOCUS Europe is its Statutes, which incorporate all relevant provisions of the Civil Code of the Republic of Portugal. Subject to paragraphs 1 and 2 of Article 33 of the Civil Code of Portugal, the proper law applicable to FOCUS Europe is English Law and FOCUS Europe sits under the jurisdiction of the High Court of England and Wales.

FOCUS Europe was registered as a charity under the UK Charities Act 1960 on 2 April 1996 (charity number 1054174). On 16 April 1996, it was registered as an overseas company having a place of business in the UK for the purposes of section 691 of the Companies Act 1985 with company number FC019123 and as a UK establishment of an overseas company on 1 February 2011 with establishment number BR011601.

The principal operating office of FOCUS Europe is in London, UK from where the operational and financial administration activities are carried out.

BACKGROUND

FOCUS Europe is part of an international group of organisations known as Focus Humanitarian Assistance (FOCUS). Founded in 1994 by the Shia Imami Ismaili Muslim community, FOCUS currently has offices in Europe, North America and Middle East. As an emergency response agency, FOCUS provides humanitarian assistance and disaster risk management to vulnerable communities located primarily in the developing world. FOCUS seeks to enable communities that are prone to natural or man-made hazards to reduce risks, vulnerabilities and build resilience.

TRUSTEES AND ORGANISATIONAL STRUCTURE

FOCUS Europe is organised as follows:

----- Start of picture text -----
Board of Trustees
National National National FOCUS
Committee Committee Committee Europe
France Portugal UK Staff
----- End of picture text -----

A Board of Trustees, appointed by the Founders of the charity, governs FOCUS Europe. The Founders appoint Trustees, who are chosen for their relevant skills and experience and are required to govern FOCUS Europe in accordance with the provision of the Statutes. Trustees are provided with an induction programme on their expected roles and responsibilities upon appointment and continually thereafter through a series of formal and informal discussions and presentations by the Founders, senior professional staff, past Trustees and other external functional experts/consultants. The induction also includes information on the role of charity law.

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FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees in office during the year 2020 and the Trustees in place at the date of this report are set out on page 1. The Founders at the date of this report are also noted on page 1. The Trustees are also registered as directors of the overseas company at Companies House in England and Wales.

The Board of Trustees is responsible for the overall strategy and direction of FOCUS Europe. Trustees give their time on a voluntary, unpaid basis. The Board of Trustees meet in accordance with the provision of the Statutes. During these meetings, the Trustees also deal with administration, finance, operational, legal and compliance matters.

The Board of Trustees have appointed National Committees in France, Portugal and the United Kingdom whose primary tasks are keeping the public aware of FOCUS’ activities and implementing fund raising activities. National Committees are chaired by Trustees.

The Trustees and National Committees co-opt from time to time additional volunteers to assist with projects, ranging from organising awareness and fund-raising events to specialist help in areas like information technology.

FOCUS Europe is operated on a day-to-day basis by a small number of professional staff. The staff are employed in the United Kingdom and continental Europe. The National Committees and staff report to the Board of Trustees on a regular basis.

PARTNER ORGANISATIONS

FOCUS Europe’s sister organisations (based in USA and Canada) collaborate to fund and deliver programmes. In addition, FOCUS Europe utilises specialist skills, local presence and knowledge to remain efficient and effective.

FOCUS is an affiliate of the Aga Khan Development Network (AKDN), a group of development agencies working in health, education, cultural, rural and economic development. It is dedicated to improving living conditions and opportunities for the people of the developing world, without regard to faith, origin or gender. FOCUS works closely with the AKDN to provide more comprehensive and long-term solutions.

FOCUS routinely partners with national and international governments. This ensures a cohesive and coordinated response aimed at providing long lasting and sustainable outcomes to communities affected by humanitarian crises.

RISK MANAGEMENT

A significant role of the Trustees is to assess risks that FOCUS Europe is likely to encounter and to put policies and procedures in place to mitigate these risks.

All significant programmatic activities are subject to a risk review at the initial project assessment and engagement stage and then monitored during the programme. Major risks are identified and ranked in terms of their potential impact and likelihood of occurring.

Major risks, for this purpose, are those that may have a significant effect on:

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FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees review these risks on a continuous basis and satisfy themselves that the systems and procedures in place are adequate to manage the risks identified. Where appropriate, risks are covered by insurance policy. The Trustees have examined the principal areas of FOCUS Europe’s operations and have considered the major risks that may arise in these areas.

The Trustees also assess risks relating to internal governance and legal compliance on an ongoing basis.

In the opinion of the Trustees, FOCUS Europe has appropriate review procedures in place, which under normal circumstances should allow for the risks identified to be mitigated to an acceptable level.

OBJECTIVES, AIMS AND PRINCIPAL ACTIVITIES

FOCUS Europe's objectives as set out in its Statutes are:

FOCUS Europe’s humanitarian response to disasters is cyclical in nature. FOCUS Europe supports communities to prepare for disasters thus significantly reducing their impact; assists local communities in responding to disasters so that lives are saved; provides essential emergency relief (food, water, medicine, shelter) and finally facilitates communities to rebuild their lives after a disaster.

The above objectives, aims and activities are achieved by mobilising resources including cash, grants, contributions and donations in kind as well as human resources and expertise through collaboration with partner organisations, professionals and volunteers.

FOCUS Europe’s work with partner organisations is especially useful where it has no established infrastructure for managing staff and operations or where it is more economical to use partners. Using partner organisations and local human resources provides an effective and rapid response to a disaster and an efficient means of transferring technical knowledge to the local population.

Whatever the methodology for programmatic delivery, priorities are first dictated by the objectives of FOCUS Europe. Equally important in establishing choice and priorities is a needs assessment and where possible a full field assessment is usually carried out. The ongoing monitoring of operational performance, change and final impact completes the programmatic cycle as well as ensures that FOCUS Europe remains on track in meeting its aims and objectives as well as expectations of our beneficiaries and supporters.

The Trustees have complied with the duty in section 17(5) of the 2011 Charities Act to have due regard to guidance published by the Charity Commission regarding public benefit.

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FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

PROGRAMMATIC ACTIVITIES DURING 2020

AKAH

FOCUS Europe provides a grant to The Aga Khan Agency for Habitat (AKAH) to part fund their programmatic work in Afghanistan, India, Pakistan and Tajikistan.

AKAH works to ensure that poor people live in physical settings that are as safe as possible from the effects of natural disasters; that residents who do live in high-risk areas are able to cope with disasters in terms of preparedness and response; and that these settings provide access to social and financial services that lead to greater opportunity and a better quality of life.

AKAH, from FOCUS Europe funding, is continuing to deliver programmes in the aforementioned countries through various programme including strengthening community resilience at both community and national level, community based risk disaster management to enable communities and local authorities to prepare for, respond to and recover from shocks that are caused by natural disasters.

The change in Government in Afghanistan in 2021 has not affected FOCUS Europe’s control and ownership of its stock and fixed assets held in Afghanistan.

Newly Arrived Migrants / European Settlement Programme

During 2020, FOCUS Europe continued to support the resettlement and integration of Newly Arrived Migrants in European countries. Most of the Migrants are from Syria and Central Asia. The Settlement Programme aims to ensure that all migrants under the programme in Europe will become recognised legal residents, attain proficiency in their national language, live in a permanent home, achieve economic selfsufficiency, integrate within their local community while attaining sound mental and physical health.

Assistance is provided to the Migrants using a comprehensive case management approach that engages beneficiaries on an individual and household level. This allows for an individual programme of support that supplements Governmental and NGO support and provisions that are available in the Migrants host county.

The five key priorities for the Settlement Programme are:

FINANCIAL RESULTS AND FUND RAISING ACTIVITIES

During the year, FOCUS Europe raised, net of fund raising costs, £823,283 (2019 - £1,169,431) from fund raising activities and unsolicited donations. Total incoming resources from fund raising and external grants was £1,825,205 for the year ended 31 December 2020 (2019 - £2,118,443). Costs of activities in furtherance of the objectives of FOCUS Europe (charitable expenditure) for the year totalled £2,055,784 (2019 - £2,116,456).

The Statement of Financial Activities for the year is set out on page 12 of the financial statements.

RESERVES POLICY

FOCUS Europe maintains unrestricted funds, which are the free reserves of the charity. The total amount of unrestricted reserves held at 31 December, which together with expected donations and grants should provide sufficient funds to cover management, administration and support costs and to respond to emergencies, which arise from time to time during financial year cycle.

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FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

The restricted funds held by FOCUS Europe are only kept for as long as is necessary to organise the use of the funds.

INVESTMENT POLICY

The Trustees have the power to invest in such assets as they see fit. FOCUS Europe sometimes needs to react very quickly to particular emergencies and has a policy of keeping any surplus liquid funds in a combination of short and medium term deposits.

FOCUS Europe’s investment policy is appropriate to the nature of the funds for which the investment is held. The primary investment aim is to provide a high degree of security and liquidity and to maximise returns whilst adopting a conservative approach.

GRANT-MAKING POLICY

The Trustees consider making grants an effective means of delivering aid and continue to use sister and partner organisations. These organisations have access to facilities, expertise, staff and other resources in the field and they may be better placed to deliver speedily and effectively. Our grant making policy is reviewed each year to align our grants with our priorities and areas of activity for the year.

PLANS FOR THE FUTURE

Going forward FOCUS Europe will primarily provide grants to sister and partner organisations to implement programmes that fall within FOCUS’ mandate.

FOCUS Europe will continue to support the resettlement and integration of Newly Arrived Migrants in European countries.

CORONAVIRUS COVID-19 PANDEMIC

COVID-19 has severely impacted society and the economy in an unprecedented manner. To reduce or irradicate the virus, Governments across the world implemented lockdowns that resulted in business closures or limited operations, travel restrictions, limiting non-essential services and enacted social distancing measures. This caused significant disruptions to businesses and individuals across the globe, resulting in an economic downturn.

The economic impact has affected the fund raising capabilities of many charities around the world and FOCUS Europe postponed the 2020 fund raising campaign accordingly. During the pandemic in 2020, the activities of FOCUS Europe continued and there were no disruptions in operations and the support provided to the beneficiaries we serve. FOCUS Europe prioritised support to beneficiaries and the safety and well-being of our staff, volunteers and beneficiaries and we sincerely thank the staff and volunteers for their service during these unique times. Due to no fund raising activities, FOCUS was not able to raise the funds planned and has affected the reserves level.

The situation is continuously unfolding, with new variants of the virus and with many countries experiencing a resurgence, the social and economic impact of the pandemic although clearer than in 2020 is still uncertain. It is therefore difficult for FOCUS Europe to determine the full impact in terms of providing support to beneficiaries. The fund raising initiatives would resume in 2021 and would continue in 2022 and beyond, however, the success of these fund raising campaigns would largely depend on the economic recovery in the UK and other parts of the world.

The Trustees have considered with reasonableness the impact of the pandemic as a going concern in the notes to the financial statements 1b, and have determined FOCUS Europe to be able to continue as a going concern.

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FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020

VOLUNTEERS

Volunteers are central to FOCUS Europe’s ability to deliver programmes. Volunteers donate their time and knowledge to implement programmes especially at the time of a crisis, to raise funds, in organising public awareness events and to provide trustee services. The Board of Trustees and the National Committees (in France, Portugal and UK) are all resourced entirely by volunteers.

FOCUS Europe is very grateful for the continued generosity of its volunteers. The financial value of this generosity has not been calculated or included in the financial statements as the financial cost of the resources supplied and benefits received can be subjective. However the voluntary effort has a significant impact on the work of FOCUS Europe.

STAFF

FOCUS Europe maintains a number of staff relative to its level of activity. During the year staff discharged programmatic and administrative duties in Europe. The Board of Trustees wish to recognise the considerable effort of the staff during the year in achieving the aims of FOCUS Europe.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity at the year end and of its incoming resources and resources expended during that year. In preparing those financial statements, the Trustees are required to:

The Trustees 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. 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.

AUDITORS

The auditors, UHY Hacker Young LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

STATEMENT OF DISCLOSURE TO AUDITOR

So far as the Trustees are aware, there is no relevant audit information of which the company’s auditors are unaware. Additionally, the Trustees have taken all the necessary steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

This report has been prepared in accordance with the small company regime (section 419(2) of the Companies Act 2006).

APPROVAL

The Trustees' Report was approved on 19 October 2021 and signed on behalf of the Board of Trustees by:

Asif Adatia Chairman

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

Opinion

We have audited the financial statements of Fundação Focus Assistência Humanitária Europa (the ‘charity’) for the year ended 31 December 2020, which comprise the Statement of Financial Activities, the Balance Sheet, the Cash flow Statement and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 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 Financial Reporting Council’s (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 statement 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 entity’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.

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

Other information

The other information comprises the information included in the annual report, including the Trustees’ report other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In 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 Trustees’ report.

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

Responsibilities of Trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 7, the Trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

Auditor’s responsibilities for the audit of the financial statements

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

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

Based on our understanding of the charity and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to employment and health and safety regulation, antibribery, corruption and fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and carried out appropriate substantive procedures to address these.

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with legal advisors, enquiries of management and in so far as they related to the financial statements, and testing of journals and evaluating whether there was evidence of bias by the Trustees that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, 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 or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

Use of our report

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

Mital Shah (Senior Statutory Auditor) For and on behalf of UHY Hacker Young LLP

Chartered Accountants Statutory Auditor

19 October 2021

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FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

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

Unrestricted
Restricted
Funds
Funds
Notes
£
£
Income and endowments
Donations and legacies
2
829,420
-
Grants and contributions
3
995,258
-
Other interest
527
-
Total income and endowments
1,825,205
-
Expenditure
Fund raising costs
4
6,137
-
Costs of charitable activities in
furtherance of the objects of the
Charity:
Contributions to sister organisations
5
154,496
-
Programme and grant costs
6
1,901,288
-

Total resources expended
2,061,921
-

Net outgoing resources
(236,716)
-
Other recognised gains and losses
Exchange losses
(47,991)
-
Net movements in funds
(284,707)
-
Fund balances at 1 January
16
718,906
-
Fund balances at 31 December
18
434,199
-		 2020
Total
£
829,420
995,258
527
1,825,205
6,137
154,496
1,901,288
2,061,921

(236,716)
(47,991)
(284,707)
718,906
434,199		 2019
Total
£
1,182,397
934,892
1,154
2,118,443
12,966
284,839
1,831,617
2,129,422
(10,979)
(42,144)
(53,123)
772,029
718,906


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

All incoming resources and resources expended derive from continuing activities.

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FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

BALANCE SHEET AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
10
Current assets
Stocks
11
Debtors
12
Cash at bank and in hand
17
Creditors: amounts falling due
within one year
13
Net current assets
Net assets
Funds
Unrestricted funds
Restricted funds
Total funds		 2020
£
432,852
378,949
743,552
1,555,353
(1,132,682)
 £
11,528
422,671
434,199
434,199
-
434,199		 2019
£
480,551
677,147
355,598
1,513,296
(863,156)		 £
68,766
650,140
718,906
718,906
-
718,906

The notes on pages 15 to 23 form part of these financial statements.

The financial statements were approved by the Board of Trustees on 19 October 2021 and were signed on its behalf by:

Asif Adatia - Trustee

Imran Amir Ali - Trustee

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FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Net cash inflow/(outflow) from operating activities
15
Returns on investment and servicing of finance
Other interest
Increase/(decrease) in cash in the year
17
Net cash resources at 1 January
Net cash resources at 31 December
17		 2020
£
387,427
527
387,954
355,598
743,552		 2019
£
(781,895)
1,154
(780,741)
1,136,339
355,598

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FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies

a) Accounting convention

The financial statements are prepared under the historical cost convention and in accordance with applicable accounting standards. In preparing the financial statements the Charity follows best practice as set out in the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ (SORP) in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102) issued in October 2019 and the Charities Act 2011 and the UK Generally Accepted Practice as it applies from 1 January 2015.

b)

Going concern

At the time of approving the financial statements, the Trustees have considered the impact of the COVID-19 pandemic and have determined that FOCUS Europe has adequate resources to continue in operational existence for the foreseeable future.

With new variants of the COVID-19 virus and with many countries experiencing a resurgence, the impact of the pandemic although clearer than in 2020 is still uncertain. It is therefore difficult for FOCUS Europe to determine the full impact in terms of providing support to beneficiaries. The fund raising initiatives would resume in 2021 and would continue in 2022 and beyond however the success of these fund raising campaigns would largely depend on the economic recovery in the UK and other parts of the world. The Trustees after due deliberation and consideration of the expected programmes and income for the 12 months from authorising these financial statements, have reasonable expectation that FOCUS Europe has adequate resources and support to continue in operational existence. The Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

c) Incoming resources

Income is recognised in the period in which the Charity is entitled to receive and the amount can be measured with reasonable certainty. Income is deferred only when the Charity has to fulfil conditions before becoming entitled to it, or where the donor has specified that the income is to be expended in a future period.

Donations and other income are allocated to individual restricted funds if specified on receipt; if not specified, they are allocated to the unrestricted fund.

Contributions include amounts receivable from FOCUS sister organisations in respect of their share of the agreed programme related direct charitable expenditure incurred by the Foundation as follows:

Focus Humanitarian Assistance Canada (FOCUS Canada) 42.50% Focus Humanitarian Assistance USA (FOCUS USA) 42.50%

These allocations are based upon agreements reached by the above organisations.

d) Resources expended

Expenditure is recognised on an accruals basis. Where applicable, expenditure is charged against the funds for which it is incurred. In other cases, it is charged against unrestricted funds.

15

FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1. Accounting policies (continued)

Contributions payable are amounts payable to fellow Focus Humanitarian Assistance sister organisations in respect of the Foundation’s share of the agreed programme related direct charitable expenditure incurred by them. FOCUS sister organisations have agreed that in the current year FOCUS Europe will make contributions of 15% (2019: 15%) of that expenditure.

Management and Administration and Support costs represent the costs of field offices and the costs incurred by Europe-based staff, who are providing support for FOCUS’ international programmes. It includes management, technical support for emergency programmes and the running costs of logistics and procurement. These costs are allocated across the categories of charitable expenditure and governance costs. Allocation to charitable categories has been based on the value of individual charitable activities.

Governance costs are those associated with the legal and statutory compliance by the charity.

e)

Donations in kind

The Statement of Financial Activities includes donations in kind such as food, clothes, etc. as resources arising and expended only when they are distributed. These are included at a reasonable estimate of their gross value to FOCUS Europe.

f) Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on a straight-line basis at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Plant, machinery and office equipment 25% on cost Motor vehicles 25% on cost

g) Stocks

Stocks represent items purchased by the Foundation but not distributed at the year-end. Stocks are shown at lower of cost or net realisable value after making due allowance for any obsolete or slow moving items.

h)

Cash

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and other short-term liquid investments with original maturities of three months or less.

i) Fund accounting

Funds held by FOCUS Europe are:

Unrestricted general funds – these are funds that can be used in accordance with the charitable objectives at the discretion of the Trustees.

Restricted funds – these are funds that can only be used for particular restricted purposes within the objectives of the Charity. Restriction arises when specified by the donor or when funds are raised for particular restricted purposes.

16

FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

j) Foreign currencies

k) Pensions

The pension costs charged in the accounts represent the contributions payable to the personal pension plans of employees during the year.

2. Income and endowments

Unrestricted
Restricted
Funds
Funds

£
£
Gift aid and donations
829,420
-
 2020
Total
£
829,420		 2019
Total
£
1,182,397

3. Income, grants and contributions from charitable activities

Unrestricted
Restricted
Funds
Funds
£
£
FOCUS Canada
497,629
-
FOCUS USA
497,629
-
995,258
-
4.
Fund raising costs
Unrestricted
Restricted
Funds
Funds
£
£
Communication costs
-
-
Computer costs
3,904
-
Professional fees
252
-
Marketing
-
-
Bank charges
1,981
-
Sundries
Fund raising events
-
-
-
-
6,137
-
5.
Contributions to sister organisations
Unrestricted
Restricted
Funds
Funds
£
£
FOCUS Canada
154,496
-
FOCUS India
-
-
154,496
-		 2020
Total
£
497,629
497,629
995,258
2020
Total
£
-
3,904
252
-
1,981
-
-
6,137
2020
Total
£
154,496
-
154,496
2019
Total
£
467,446
467,446


934,892

2019
Total
£
2,014
720
575
1,078
6,229
1,150
1,200
12,966
2019
Total
£
199,121
85,718

284,839

17

FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Programme and grant costs
Direct Support 2020 2019
Costs Costs Total Total
£ £ £ £
Relief and community support 1,198,827 702,461 1,901,288 1,831,617
1,198,827 702,461 1,901,288 1,831,617
Analysis of general support and governance costs
General Governance 2020 Total 2019 Total
costs costs
£ £
Wages and salaries 380,857 16,254 397,111 435,668
Other staff costs 137,165 - 137,165 206,375
Travel and subsistence 551 - 551 3,147
Transport and vehicle running costs - - - -
Communication costs 5,544 - 5,544 4,521
Office costs 6,099 2,676 8,775 14,772
Office rent & utilities 35,926 - 35,926 35,612
Field supplies, repairs and maintenance 7,797 - 7,797 2,589
Legal and professional 3,017 - 3,017 2,414
Audit and accountancy - 23,483 23,483 22,744
Depreciation 57,238 - 57,238 64,407
Bank charges 2,008 - 2,008 2,669
Stock impairment 23,846 - 23,846 -
660,048 42,413 702,461 794,918
All support costs are directly allocated to activities.
7. Net incoming resources
2020 2019
This stated after charging: £ £
Auditors’ remuneration inclusive of VAT (fees paid to auditors in the
United Kingdom) 19,500 19,200
Depreciation of tangible fixed assets 57,238 64,408

18

FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

8. Employees

Average number of employees calculated on a full-time basis, was:
UK contracted employees
Non-UK contracted employees
The costs of employing those staff was:
Salaries and wages
National insurance
Pension costs		 2020
No.
3
6
9
2020
£
377,403
16,129
13,630
407,162		 2019
No.
5
6
11
2019
£
428,904
23,052
15,326
467,282

In addition to salaried employees and contribution of time by Trustees (see note 19), other volunteers contributed a significant amount of time to the Charity by providing professional and other services during the year. The financial value of volunteers’ time has not been calculated or included in the financial statements as the financial cost of the resources supplied and benefits received is not quantifiable.

The number of employees whose emoluments, as defined for taxation purposes, amounted to over £80,000 in the year were as follows:

£80,000 in the year were as follows:
2020 2019
No. No.
£80,000 to £89,999 1 1

The number of higher paid employees with pension contributions paid directly into pension funds of their choice through the Stakeholder Pension Scheme was 1 (2019: 1) for which the contributions amounted to £7,075 (2019: £6,716).

9. Trustees

None of the Trustees received remuneration or benefits from the charity or related parties during the year and no Trustee expenses have been incurred or paid.

No Trustee received payment from the charity or related parties for professional or other services supplied to the charity (2019: £Nil).

19

FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

10.
Tangible fixed assets
Plant and office
equipment

£
Cost
At 1 January 2020
338,257
Disposal
-

At 31 December 2020
338,257
Depreciation
At 1 January 2020
269,491
Charge for the year
57,238
Disposal
-

At 31 December 2020
326,729
Net book value
At 31 December 2020
11,528
At 31 December 2019
68,766
11.
Stocks
Stocks – emergency relief items (non-food)
12.
Debtors
Amount receivable from sister organisations
Income tax recoverable
Other debtors
Prepayments and accrued income


Amounts receivable from sister organisations are as follows:

FOCUS Canada
FOCUS USA		 Motor
vehicles
£
434,622
(434,622)
-
434,622
-
(434,622)
-
-
-
2020
£
432,852
2020
£
184,229
81,687
106,243
6,790
378,949
2020
£
184,229
-
184,229		 Total
£
772,879
(434,622)
338,257
704,113
57,238
(434,622)
326,729
11,528
68,766
2019
£
480,551
2019
£
369,540
105,271
163,053
39,283
677,147
2019
£
-
369,540
369,540

20

FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

13. Creditors: amounts falling due within one year

Trade creditors
Other creditors
Amounts payable to sister organisations
Accruals
Amounts payable to sister organisations are as follows:
FOCUS Canada
FOCUS USA		 2020
£
16,998
357,018
237,631
521,035
1,132,682
2020

£
-
237,631
237,631		 2019
£
4,590
278,433
161,052
419,081
863,156
2019
£
161,052
-
161,052

14 . Commitments

The charity had no capital or leasing commitments as at 31 December 2020 (2019: £Nil).

15. Reconciliation of changes in resources to net cash inflow from operating activities

Net movement in funds for the year
Other Interest
Depreciation charges
Loss on disposal of tangible assets
Decrease in stock
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash inflow/(outflow) from operating activities		 2020
£
(284,707)
(527)
57,238
-
47,699
298,198
269,526
387,427		 2019
£
(53,123)
(1,154)
64,408
-
24,147
(382,227)
(433,946)
(781,895)

21

FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

16.
Comparative Statement of Financial
Activities
Unrestricted
Funds
Restricted
Funds
£
£
Income and endowments
Donations and legacies
1,182,397
-
Charitable activities
934,892
-
Other interest
1,154
-
2,118,443
-
Expenditure
Fund raising
12,966
Charitable activities:
Contribution to sister organisation
284,839
-
Programme costs
1,831,617
-
2,129,422
-
Net income
(10,979)
-
Other recognised gains and losses:
Exchange gain
(42,144)
-
Net movement in funds
(53,123)
-
Fund balance at 1 January
772,029
-
Fund balance at 31 December
718,906
-
17.
Analysis of net cash resources
2019
Cash flow
£
£
Cash at bank and in hand
355,598
387,954
18.
Analysis of net assets between funds
Unrestricted
Restricted
Funds
Funds
Fund balances are represented by:
£
£
Tangible fixed assets
11,528
-
Current assets
1,555,353
-
Current liabilities
(1,132,682)
-
Net assets as at 31 December 2020
434,199
-		 2019
£
1,182,397
934,892
1,154

2,118,443
12,966
284,839
1,831,617

2,129,422
(10,979)
(42,144)
(53,123)

772,029

718,906
2020
£
743,552
2020
Total
£
11,528
1,555,353
(1,132,682)
434,199

22

FUNDAÇÃO FOCUS ASSISTÊNCIA HUMANITÁRIA EUROPA (FOCUS HUMANITARIAN ASSISTANCE EUROPE FOUNDATION)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Related parties and co-operation with other organisation

Key management personnel:

The Trustees consider the Board of Trustees as comprising the key management personnel in charge of directing the Charity’s activities.

None of the Trustees received remuneration, other benefits or Trustee expenses for their voluntary work.

Co-operation with sister organisations :

FOCUS Europe’s sister organisations (based in USA, Canada, South and Central Asia) collaborate to fund and deliver humanitarian programmes. In 2020 such funding amounted to:

Funding made by the charity to:-
FOCUS Canada
FOCUS India
Funding received by the charity from:-
FOCUS Canada
FOCUS USA		 2020
£
154,496
-
154,496
2020
£
497,629
497,629
995,258		 2019
£
199,121
85,718
284,839
2019
£
467,446
467,446
934,892

20. Control

The charity is not controlled by any other party.

23