CONCILIATION RESOURCES DIRECTORS, AND TRUSTEES, REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 CONCILIATION RESOURCES CONTENTS YEAR ENDED 31 DECEMBER 2022 Page Reference and Admlnlstratlve Datalls Report of the Dlrectors and Truste•$ 4-15 Rèport of the Independent Audttor 16-18 Statornont of FlnanGlal Actjvltles (Includlng tho Income and Expondlture Account) 19 Balance Sheet 20 Siatgment of C￿h Flows 21 Note8 to tho Flnanclal Statements 2249 CONCILIATION RESOURCES REFERENCE AND ADMINISTRATfrfE DETAILS YEAR ENDED 31 DECEMBER 2022 Directors arKI TNstees Ms D I)￿d- Chair Mr A Peck- Treasurer Ms T Bajwa (resigned 21 Nov 20221 Ms C Cheng Mr G Graham Ms N Hatendi Ms D Hutter Mr J Jinnah Ms J Kemp Ms L Muir MsL￿re Company Secretary Mr T Hansen Exocutlve Manag•ment Toam Mr J Cohen - Executive Director Mr T Hansen- Chief Operallng Officer Dr T Dumasy- Research. Advisory and Poliw Department Director Ms L Aumeer- Europe-Asla Department Oireclor Mr C O'Tode - South E8St Asia and Pacific Department Director Mr A Abdi - Africa Department Director Mr M Baah - Finan¢% Di￿¢tOr UK Company Numbgr 03196482 UK Charlty Number 1055436 UK VAT Number 24￿02623 Roglslered Offlce Burghley Yard 106 Burghley Road London NW5 1AL Audltor Haysrnacintyre LLP 10 Queen Street Place. London EC4R 1AG Bankgrs Royal Bank of Seodand 40 Islinglon High Street London Nl 8XJ COIF Chanty Oeposrt Funds 80 Cheapside London EC2V 6DZ CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 The Dlreetors, who are the Trustees of the charitable company. present their report and audited accounts of the charity for the year ended 31 December 2022. The finan¢ial slateThnts comply wth the Charities A¢t 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by char￿es.. Statement of Recommended Praelice applicable to tharilies preparing their acwunts in ac(xJrdance with the Finanaal Reporting standard applicable In the UK and Republic of Ireland (FRS 102} (Second Edib"on effective 1 January 20191. Structure, Governance and Managemant Governlng Document Conciliation Resources Is a Company limited by guarantee wthout shar8 capital. The Company was Inco￿Orated on 9 May 1996 and is a reg15tered charity constituted as a limited company under the Articles of Association. The charity registration number is 1055436 and the company registration number is 03196482. Organisatlon Conciliation Resources1$ governed by8 Board of Trustees that meets fourto six times a year. During 2022. all meeungs Ware held in hybrid formal, in person and onlin8. The o)n$equent reduction in staff and Board Intera￿lon was mitigal@d by both 'breakout' rooms online for trustees lo speak to staff before each Board mèeting and an increase in Board Commlllee activlty. In-person Board and staff contact has increased in 2023. Financial and management reports are provided quart8rly to the Board of Trustees, including informallon on programme and pollcy progress, restricted and unrestricted funds. dsk management and stsff wellbeing. Risk management and Keeping People Safe were central loplcs durlng all meetlngs In 2022. Al¢)ng5ide 'day to day, govemance, during the year the Board oversaw.. A rev￿￿ of Board effocuveness A complete Risk Reglster and inddent review as well as quart&rly'top risks, papers Internal leamlng and development following the ongoing Implementsuon of an Anti-R8dsm Plan Ouarterly reporbng from a Board and staff Diversity and Indusion Committse. a Risk and Audit Committee, and a Safeguarding Commlttee and annual reporting from the Board Ramuneration Committee {whlch reviews EMT salari851 Applicat'on for r89istratlon of an entity in Kenya 2nd further growth of the team In that region. A reV￿W of the work ofour Gender team A review of the impact of Ihe war in Ukrainè and subsequent sanctions A review of our organisational govomance and structu Tre Board were also direcuy involved in a day organisalional 'strateglc retreat, with all available staff In Sept8mb8r and discussi￿S with staff on: The strategic direction of the organisation New programme developrngnt Partn&r selection Safety of staff across all lo¢ations Climate and peacebLJilding Our Outcome Harvesting Results 2021- 2022 CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 Organlsauon (contlnued) Executive Mana ement Te The Executive Management Team IEMTI indud8s the Executive Director. the Chief Operating Officer, the Research, Advisory and Policy Department Director, the thre8 Progfamme Department Directors {Eurw-Asia, Africa, South East Asia and Pacific) and the Finance Director. The EMT m88ts fortnighly to discuss crossoganisational issu8s. The EW is responslble for supporting the Executlv• Dir8clor in managing and ov8rseeing Ihe organisalion. Th8 EW is the princip81 management deusion-making body on strategic issues or mallers of significant operational imFX)rtance or risk. EMT members hav8 delegated responsibility and accountability for deo$ion-making as defined by parameters given lo them by the Executive Director in their job descriptions or on an ad ho¢ basis. Further details of EMT workings are dafinod In EMT Terms of Reference. D8ci8ions and decision making are guided by our organisational values of Collaborath?n. Creativity. Challenge, Commitment. We strive lo keep in mind these principles In both our 8Xtemal work and in how we operate inlemally, with an awareness that all decision making must consider what Is achievable, r8alistic. timely and for the benefit of the organisalion as a whole over the short. medium and long term. amLe The EMT 1$ supported by a Team Leaderfs Forum (fLF) madè up of senior staff from across Conclliatton Resources. This group meets every quarter and functions as a fornm for consultation, input and faedback lo the EMT and to all staff. This is a tm way lundion as TLF members bring Id8as and challeryes from their r8spo¢tiv$ team$ and a130 communicate decisions and information from the EMT to th&ir teams. Further details of TLF workn'ngs are defined in TLF TORS. With around 90 staff globally, a small Inttease on 2021, around h81f of our staff are based in London. with. stsff also in Australia, Central African FlepubliG, the Philippines and Ethiopia. These offices are set up In (thr to ensure awareness of, and compliance with, local laws and regulabons as well as appropii*6 inlegTalion and c￿rdIna￿On with our partnars and the broader sector within the relevant area. We also have a close connectlon wilh Conciliation Resources EU, an organisation reglslered In Germany with staff I Belgium. Conciliation Resources EU is the face of Conciliation Resourres in Brussels to the European institution5 and EU Member States. Our Brussels team focuses on providing mediation support expertl$e ané policy advice on specific thematic and geographlc pea¢gbuilding priorities. Wllhin the three Programme Departments, each Programme Director 1$ r8$ponsible for the management of their area of work and tho organisalion actively provides opportunities lor mutual support and learning. Each Programme Director is asslsled by project staff and very occasionally volunteers. In addition to its in-house staff. Con¢iliation Resources works closely wlth extemal consultants. Pay and remuneration for key management personnel is $81 by reference to the grading and salary structure whiGh is revlewed and benchmarked regulady and is transpaTrnt wrthin the organisats'on. The Board of Twstee5 sets Ihe pay of the Executive Management Team each year through a Remuneration Committee. wilhir) the parameters oflhe grading, salary structUTe and sector benchmarking applied to all Conciltalion Resource$ Staff. Recruitment and Appolntment ol Trustees As set out in the Articles of Association, the Board of TNgtees of Conryliation Resources nominates the Chair of the Trustees. A vice.chair is also Infomially appointed on a rotating basis. The Trustees are also the Directors and members of the Company. The Board of Trustees has powerto appoint additional Trustees as it o)nsiders necessary and regularfy reviews the required skills and the organisalional policy underlyTng the role of the board of Conclliation Resources. After a skills audit and following the departure of several long -serving hjstees, six were apwinted in 2021 with one resigning in late 2022 due lo an unexpected work opportunity- The Trustee5 in office and up to the date of this report are *t out on page 2. Ir) 2022, The Risk and Audit Committee. which consists of four Tfustees, the Financo Director and the Chief Operating Officer I Company Secretsry, oversaw the annual statutory audit process and supported the monitoring and updating of the organisational Risk Register. including an increased fL￿5 on cybersecurity. CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 Rocrultm8nt and Appointment of Trustees {¢ontlnuedJ Two trustees acted as designated Safeguarding Truste8s as part ofthe Safeguarding Committee. meeting with the Chief Op8rating Officer I Company SecTetsry and Intemational Safety and Compliance Manager at least every two months with additional communicatioTrs as required. The Chair also attends these meetings. The 8oard and Staff Diversity and Inclusion Committee consists of four Tnjslees and four stsff. includiro the Chair and Ex8CUtive Director. The Remuneration Committee consists of the Chair, the chairs of the sub committees and th8 treasurer. We 8re very fortunate to have on our Board Injstees wth a depth of experience and undetEtanding of charity and financial management, and of peacebuilding. with the dedication and commitment to support this Work. Thorough evaluations ol the Chair and Executive DI￿tor. as well as internal t#)ard effectiveness analysls was undertaken in 2022. Trustse InduGtlon and Trnlnlng The TNsteas maintsin a good working kno¥￿edge of charity and company law and best practi￿ through tralning sessions provided inlemally and by 8Xtemal consultants. New Trustees are given copies of the Artides of Association, supporting information on Conciliation Resources. and relevant organisalK*nal policies. and hold a sorles af meetings with key staff from across the rxganisalion in a structured iThJuction led by the Executive Dlr8clor. These meetings provide aeLess to staff for all Trustees in order to find out more about Conciliation Resour￿5. ongoing work. Al the sam8 lime, il provides a chance for staff lo understand some of the experiences and $trength$ that are available lo them. and more broadly across Conciliat￿n Resources. al Board level. As part of the on4oing development ol each Trustee's understanding of Conciliation Rgsour¢es and its work, when training is not scheduled, on the morning or afternoon of each Board meeting sessions are arr8nged between Trusle8S 8nd slafl at which key topics or areas of work are explored and Insights shared. During 2022. this was supplemonted by a Iwo day Slaff and trustee 'strategic retrear. Related Partles and Collaborath?ns Conciliation Resources has closo workirvj relalionshlps with other chariti8S and organigation$ (local and Intemal￿najl wllh which il c4)oper8les in pursuit ol its charitable objectives. This Indudes collaljorative proJg¢1 p8rtnershlp8, consortium inrtialives and cooperative nefv40rks. We CUTrentiy work with OV¢T 60 partners globally. Management olrl$ks Major risks to which the charlty is exposed Igovemance. reputational, legal, ￿lItical, financial, programmatic). as Identified by the Trustees after consolidation of information from all teams, are compi5ed in a Risk Register and reviewed at least bl-annually or more frequently as needed. An initial revlew is conducted by Ihe Risk and Audit Corllmittee before the Rlsk Register Is presented to the entire Board. The Risk Management Policy details the proieGt and departmental approa¢h to rl3k identification and management and the mothc•J for feeding that analysis into the org3nisalional register. nvlronm As the nature of Conciliats'on Resources. WO￿ involves countries affected by ¢onfli¢L the security Situation irs these countries is more frequenuy reviewed via a slnjctured 'Programme Secuiity Plan, involving in depth safety and security due diligence whith incorpoiates 52feguarding, complemented with external monitoring Serv￿5. We seek lo lake all appropriate slops to avoid ulldue risk to staff and project partners, in line with laws and regulations as well as our organisational and aTr individual's risk appetite. Systems develo￿ to mitigate those risks include staff safety and security policies and guidelinos, Safety and Security Due Diligence and spot check pmcesses, 28 well as hostile environment awareness training IHE4TI. In 2022 we estatAished a comprehensive relationship wth International SOS for information sharing, trip pre-briefing. contingency planning and emergency response. In addition. Conciliation Resources has different insurance policies in place to support slaff travelling to, or in, conllicl zone5. Financial Risk The external funding environrnenl continues to be challenging. We (xintinue to See a general reduction in available peacebuilding funding, increasing amounts of funding which are short term. increasing ￿mmer￿allsation of grant making, increasing regulatory and comp1kar￿ requirements. CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 Financial Risk continued These trends are now ¢ompounded by pandemi¢dmpacted eC0￿MieS and the diversion of government and private fundlng to Immediate humanitarian and other needs related to the war in Ukraine. The risk that insufficient fvnds will be generated for some of our programmes has been classrfied as high. The Executive Management Team has undertaken financial ￿ntingencY planning. Department Dlrectors are resF)onsible for sufficient fundraising in line wylh the Financial Mcmjel and are supwrted lo pursue their fundraising plans by the rest of the organisatlon. To mitigate financial risk and insècurity, as well as d8pendency on a small number of significant thnors. in 2022 we tria118d projects towards a broader donor base. both for the organisation as a whole and for each programme. We continue to seek long.term funding both institutionally and for individual programmes due to the criticality of continuous rather than ad.hoc support lo peace processes. During 2022, outreach was undertaken to 811 European stste donors, leadlrng to several new funding relationship$. We also undertook targeted outreach lo Trusts and Foundations. In addlllon, inveslrnenl in Individual giving has led to some success Ihal continues lo be bulll on In 2023. There were m significant finanaal CLrts In 2022 however. following the e￿ctIon of a new gov8rnmenl in Sweden In early 2023 we were notified by our cor8 unre5triGted donor Swedish Inlemational Development Cooperation Agency {Sidal that the new national govemment had reduced its availa1￿e lundirrfJ and as a result our funding would be reduced at short notice by around £350,0001230A of Sida's funding for the yearl. These have been respondod to without closurg of poa¢ebuilding work bul wth some impac* on our organi5ational d8velopm8nt and support teams as well as the programme teams. NO￿lthStandIng th8 cuts and Challenges, we continu8 to inc¥ease our rostricted funding grants and also drew down on our deferred income pol to maintain appropriate levels of funding for our pèacebuilding work. W8 manage the impact of unsuccessful bids. contract delivery challenges and cuts as described above through the quarterly re-forecast pro¢es5. 2022 has shown that we have an abilily to attract significant and divers8 funding, offsetting tha r8du¢tion$. Fundrnlslng Actlvltles Conciliatlon Resources, approach to fundralsing is increasingly centred on Institulioftal gov8mment fijnding. In 2022 we set target5 for a small Increase across a range of new Income streams. ensuring that expectstions are mod&sl in line with the minimal investment and the challenging and compeblive external environment. In 2022, we increased our reach and engagement across social media platfomis. lyJilding on our bolder n*$saging and visual identity. We held three hybrid information events at the Swiss Embassy and al Linklaters LLP global law firm topics such as the intersectio between climate change, gender and confllct, as part of our #SeeTheHuman Campaign which helped us reach new audiences. Recognisiw the increased complexity and scale of limited funding opportunities, in 2022 we decided to apply for the UK'S ConfTict, Stability and Security Fund Framework. requiring significant organisational improvement work around commercial pricing and tendering, cyberseujrity. data proteGtion, Staff training. due diligence. contracting and other areas. 80.850A of our income is prolect based. In 2022. our Income was mainly derived from instituUonal donors, vlth small additional amounts from trusts and foundations and individuals. We did not work with professlonal fundralsers and donations from members of the public totalled less than 1Yo of income. We do not anticipate thls in¢reasiro in the next few years. Management and the fundraising team stay abreast of recx)gnised publ1¢ fundraisiro standards and we are registered with the Fundraising Regulator, 5howiw our commitrnent to abide by the Code of Fundraising Practi and the Fundraising Promise. In 2022. no complaints were received in relation to our fundraising acltvitios. Keeping Pooplo Sar Safeguardirbg is a responslbility of the entire Board, with the Board's Safeguarding (Keeping People Safe) Committee leading on this area of work. The Committee is made up of the Chair of the Board and 2-3 Safeguarding Trustees, one of whrjm chairs the Committee. The Committee. which meets on a quarterfy basis is supported by the Chief Operati Officer and the Intemalional Safety and Compliance Manager. All cOn￿mS raised have been investigated and responded to. Travd increased gradually at the end of 2021 and al the start of 2022, allowing partners and partiapanls to raise concems in person. During the year. we completed multi-day 'Keeping People Safe, sessions with over 30 partner organisations. The team responded to a total of 10 Keeping People Safe (xincerns during the year. Ther8 were a further 21 general incidents I ￿ncernS which were also responded to. CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 Keeplng Peoplé Safe (contlnu8dJ We continuè lo develop Dur systems. processes and tx)Iici8s in this area induding our Risk Management Policy. Keeping People Safe Policy, Safety and Securtiy Pdicy and Program￿ Security Plans. Among other policies, our Complaints Policy and Dats Protection Policy are available on our website. Staff Wellbelng During 2022, initial planning for 8 Peopl8 and Culture Team of four staff was paused for financial reasons. Th8 intention is for Ihis team lo facilitate a renewed fDCUS on wellbeing and additional fO￿S on diversty, inclusion and anti-racism as well as shift of human resources practica to dearer globavlocal setup in line with staff locats"ons. There 1$ a Wellbelng Coordination Group of senior staff and staff are provided with an Employee Assistsnc8 Programme, Mentsl Health First Alders and free anonymous counselling al their own dIs￿eb.0n. Line managers are provided with Ilne management Irainlng and tools, PubllG Benent Statsm8nt The Trustees consider that they have complied wth Section 17 of the Charities Act 2011 with regard to the guidance on public benefit published by the Charity Commission. Tho paragraphs below demonslrale the public benefit aiising through the Ch8rlty's a¢tivities. ObJ¢¢tlves and actlvitles Conciliation Resources Is an independent intemalional orpanisation working with peopl8 In conflict to prevent vlolence, resolve conflicts and promote peaceful soci8lies. We commit to providing our assistance. expertise and practical resources for the long-term. In addition, we share what we leam from our work wlth partners to govemment decision- makers and others workSng lo end conflict. lo improve poliaes and praclice worfdwide. Sinc& 1996, Conciliation Resources has worked partnership with bcal and intemational civil society actors, helping peoplo work together lo find their own $olulion5 to the conflicts affocting them. Our vlslon is a wodd where people work tC¥3ether to ￿$01ve confticts and promote peacefijl and Inclusive sodelles. Our ml$slon is lo provide practical support lo help people affected by vlolent confliGI achieve lasting peace. Wo draw on our shared eX￿rienGeS to improve ￿a¢ebuIlding policies and practice worfdwide. The Trustges h8ve paid due regard lo the Chanty Commi55ion's Guidance on Public Benefit when determining the activities of Conciliation Resources whlch has the purposes of.. Ihe advancement of human rights, eonflict resolullon or reconciliation or the promotion of rellgiou5 or racial harmony or equality and diversity.. Our ambltion limpacll Is that we will make significant and dcumented c￿ntributionS to preventing and Iransforming violent Conflicts and promoting peaceful and indusive societies. Conciliation Resources. 2025 Strategi¢ Plan, 'Building Better Peace., sels out four goals with corresponding strategic outcomes.. Goal 1: Adaptlve and alt•matlve paths to peace Peacebuilding overcomes barriers to ueating peaceful swetles Goal 2: Connectlng pgople and peace efforts More coherent inilialives help prevent and reduce viol8nt confl￿1 Goal 3- Incluslon. gender and inffluen¢• Excluded groups influence approaches to building peace Goal 4.. People centred policy International peacebuilding support puts people first CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 Our organisational values both Support and unde￿In everything we do and seek to achieve: Collaboration.. We believe that everybody afferted by conflid h&5 a slake in pea￿. We work to creat8 peac8frJl and inclusive change within s(xieties in partnership th lo￿1 people, to respond to vio18nc8, Ir￿uality, injustice and excluslon. Challenge." We believe that peace can only Come about rf people have a Chan￿ to tretter understand their conflict and if difficLJIt conversations are held betsveen allies arKJ adversaries. We stand ak)ngside those who, with courage and integrity, reach out acmss conflict dwides. Cre8tAvlty.' We believe that peacebuilding needs to b& fiaxible and adaptive lo the 5peufic and evolving Tealilies of eaGh nfllcl Gontext. We support innovative ways lo influenoe change. and we share insights from people's INed experience globally to build collective knovAedge and expertise. Commltmenl.. W8 believe that building sustainable peace tskes lime. That's why w8 mak8 k)ng-lemi commitments to support just and resili&nl transitions from protracted conflict to lasting p8ac8. To hglp delivar the 2025 Strategic Plan, we have dev8lop8d and costed 8 fiv&year Operational Plan under the followlng headings. with goal leads alk)cated lo senior staff.. Operational Goal 1. Invest in staff Operational Goal 2. Invest in partnerships Operational Goal 3. Locale and equip staff to provkje effectiv& paa¢8buildlng support Operational Goal 4. Keep peo￿6 safa Operational Goal 5. Develop 6vKfjence. leaming and creativity Op•ratlon81 Goal 6. Ensure impactful exlemal communicatpjns Operational Goal 7. Secure sufficient. fl&xibb income Operallon81 Goal 8. Ensure efficient financial systems and pn>cesse$ S•loct•d achl•v•m8nt8 In 2022 In 2022 we conllnued worklng towards our four strat8glc g)als. to improve how peace is buill. GOAL 1. ADAPTIVE AND ALTERNATIVE PATHS TO PEACE PEACEBUILDING OVERCOMES BARRIERS TO CREATING PEACEFUL SOCIETIES In 2022, we've seen new bathors to peaco emerging, and old challeng&s deepeniThg. The war in Ukraine has had far- reaching impllcallons, tha dimate crisis continues lo Impact many of the communibes we work with, and we're seeing a regression in women's rlghts around the world. In response. we have worked alongside our partners lo find innovative ways to adapt to thes8 challenges and overcome barrters lo building peace. In regions of protracted conillct, we see these innovations supporting incTemeDtal 518PS towards peace. In South Asia, we18unch8d an award-winning new joint venture. Whe￿ tackling the shared challenge of the climate crisis is helping to build confidance between divided communilies in Punjab. In the South Caucasus. where Russia's Invaslon of Ukraine has led to serious operational challenges, we've found creats.ve logistical solutions to help our partners continue their vltal work. And amidst war in other parts ol EthKJpia, in the Somali Regional State ISRS) we supwrted the fomiation of a regional Truth and Re¢on¢ilialion Commission to address the legacies of conflict. Dialogue and mediation are central lo what we do, SuppO￿ng those in conflict lo find comnKJn ground and tackle the legacies of violence. In the Central African Republic, we helped break down barriers be￿8e￿ young peoplg from different ethno-roligous backgrouThJs and in the Philippines, building on many years of work, we created guTrdance for how lo estaljish local pea￿bUilding groups. We also began working in Hela Province, in Papua New Guinea. supporting community leaders who are transfoming conflict resoluts.on prath.ces in a region facing high levels of interpersonal and inter-group violen￿. Women peacetmjilders arg facing addib'onal barriers in their wotk. from a18th of funding and a broader regression in women's rights arDund the world. Through our partnership with the Women's Peace and Humanitarian Fund'5 (WPHFI Rapid Resp￿Se Window, we have been able lo address urgent funding gaps with targeted support for w(Mnen-led cwil society organisalions in Liberia, and throLtgh the Women, Peace and Security Helpdesk, we're working lo ensure UK . policy responds lo the specific barriers prevenbng women's participation. CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 GOAL 2. CONNECTING PEOPLE AND PEACE EFFORTS MORE COHERENT INITIATIVES HELP PREVENT AND REDUCE VIOLENT CONFLICT For peace to be sustainable, we need to connect those working for peace at different levels, from community networks and initiatives, to F)olitical proc8sses. We build connections. support leaming and kno￿edge sharing, and h8lp to strengthen I(￿81 peac8building ne￿Orks. In the Somali Regional Stat8 of Ethiopia. we helped conneia over 300 victims aThJ survivors of conflid with th8 regional Truth and Reconciliation Commission. ensuring the reconaliation process is victinFcenlred. In the Philippines, we ve seen leaders from our long-lerm partner organisalions gaining positions in the BangSaMC￿ governmen( allowing the to connect marginalised groups to the ongoiro political transiti.on in the region. Our work has a150 built connections betrfftn k)cal security offi￿alS arKI communities. In the Central AfrKan Republic, OLtr Innovative n8w Decerblralised Dia1￿Ue process enabled previously marginalised comffmjnities lo discuss concerns with the police and provincial aulhorilies. Elsewhere our work has improved Injst be￿een secJJrily agencies and local communities in the cross-border reg￿nS of Burkina Faso. Cole d'lvoire and Ghana. Through Women's Dialogue Spa¢es in Ethlopla's SRS. we're helpiryJ build strong ¢ross-politl¢al ￿lationships, brlnglng togetherasplring and seasoned womèn In politics to leam from each other and jointly adv¢xate for women's parti¢lpatiorb In polltic8. Across all reglons In which we work. we've eontlnued to ac￿MPanY local peac8bullding networks, supportlng new na￿OrkS the Phillpplnes and the Pacific and maintslning spacès for indusiv8 dialogue in Kashmlr. GOAL 3. INCLUSION. GENDER AND INFLUENCE EXCLUDED GROUPS INFLUENCE APPROACHES TO BUILDING PEACE Underslandiro how gender Impacts conflict dynamics is vital for sustainable peace and in 2022 wg d8veloped a new strategy to ensure genéer Is central to all of our work. Taking an intersectional approach, wè consider the way thal gender, age, athnblty and other identty fadots impact how people experience conflict and the OPPOrtunllies they have to shape peace. This goes beyond our own work we conb'nue to influence inlemational thinking and pra¢li¢e on gender and peacebuilding. This year, we helped eslabllsh the Women. Peace and Security Helpdesk, prowding analysis and expertise on gender and Women. Peace and Security IWPS) lo UK government teams, as well as inputting inlo the UK'S new National Action Plan on WPS. We ran trainiThJ on gender and conflict sensitivity with various teams in European Union IEUI in51ilutions and our Pacific team has engaged with the EU on the topic of masculinilies and peacebuildlrvJ in the region. Inclusion is central lo our work across all geographies and we aim to ensure that marginalised groups have opportunities to shape peace. In Nigeria, we've worked with our partners to ensure women and young people are represented in peace netwot*s and coalitions. and in the Philippines we've supported Indlgenous communilies'to share their experlences on issues such as cllmale change and cor)flict. wlth regional leaders. The impacts of dlmate change have also been at the forefront of our work in Fiji, and a conference we held wrth our partners allowed r￿MmunitieS affected by climate change relocation to voice their cortcems lo the govemment. Clvll society c)rganlsalk)ns play a key role In Champlonlng and onabliro an induslve peaca. In the SRS our wot1( wllh partners has helped transfom tho way cNil society engages wilh the govemmenl. with the regional parfi8m8nt adopting a new law to protect civic space in the region. We're also bringing p90ple from diverse professions into the peacebuilding sphere. combining our knowledg8 and experienc8 for a common goal. For example in the South C8ucasus and the Central African Republic, we've worked with psycho-social health specialists and youth platfornis. whilst in Kashmir we're working with environmenlalisls and agriGullural leaders. In the Central African Republic, we also worked with a team of gender consultsnts to contexlualise our approach lo gender and develop a joint training and analysis package on this. We hosted two events with the Swiss Embassy in London. The first brought together mental health and peace practitioners lo explore how psychology can impact and enhance peace mediation practice, whilst the second was a discussion wrth digital sector experts on the role of digital plalforms in conflict, and Iheir potential for peacebuilding. 10 CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 GOAL 4. PEOPLE CENTRED POLICY INTERNATIONAL PEACEBUILDING SUPPORT PUTS PEOPLE FIRST We encourage national and irstemational policies to be peopl¢red. putting the Deeds and agency of people al the heart of peacebuilding and corfflici prevenlion. We advocate for wlicies. regulations and funding which enable long- tem, adaptive and ueab've approathes to peace. Our In-depth res&arch and analysis allows us to uThJerstand and share what works in peacebuilding. This year, we produced a n8w Accord Spolighl on implementing peace accords sustainably. and as part of 8 global research programme, we're analysing th& impact of dimate change on conflict in the border region5 IA central and wesl Africa lo Illfomi pea￿bUilding responses. Understanding the links behveen the dimale ¢X$iS and 0)nfl￿t has been a priority in many of the Gontsxts in which we work, and we piloted exciting new research on the role gender plays in this complex System, looking spacifically al Uganda, Kashmir and th8 Philippines. We shared what we're learning with UK policymakers through training courses, and events including a public discussion hosted by BBC Climate Editor. Justin Ro￿art. and a roundtable with HRH The Countess of Wessex. Our conlext-SP8clf c expertlse has also enabled us to advise on national policy In the places In which we work. In the Central African Republic, we were approached by a govamment Minister to provide support to a national-level dialogue programme, and in Fiji we'v8 baen engaged with the govemment Ministry working on climate change reloGalion. Our analysls of the ImpaGt ol Russia'$ invasion ol Ukraine on th8 Souih Caucasus region Is helping infomi thinking on the wider impllcalions of the ronflict. We continued to influence high-level UK. EU and inlemalional F(Jlicy on paaco and security. In th8 wake of Russia's invasion of Ukraine and the imposition of wide-ranging sanctions on Russia, our wod( through the Tri-sector Group hglped to ensure that humanilarian and pea¢8building support to Ukraine could continua. Our c£)ordinalion of adv(xacy on UK counler-terroTism laws and sandions has also ￿ to th8 issuing of guidan¢8 and yole¢tKJns for humanitarian, P8acebuilding and developrnent work. Publlcatlons and Other Rosou￿?3 Produced In 2022 We produced 22 multimedia products and publications, whth were viewed or download8d 14.598 times. Multlmedla Climate clian limal confli The Climate Cri Slideshow.. Disabilit Slideshow.. Inle ralin NAof Pea e Forum ro n￿ment #SeeTheHuman Even nve ati h Yalda Hakim and Emma Leslie #SeeTheHum1t n Event 2.. In conversalion with Bell Bi ombe and anift Slide5how'. ix lesson onen in diverse outh In e8￿bUIldIn Slideshow., Sle ste eace challen e.. Hikin the Line ol Control What does 'fulures thinkin ' tnean for bu,'Idin nd I ndPea confliel ender inl ecl vent an he uildin nno vanni Publl¢atlons nual Review 2021 Conftict challen esando ortunities for buildin in Hela o¥ince Pa ua New Guinea lemenlin eace accords sustainab - alternab.ve avenue tob ass blocka es and mili ale rosistan Lookin forward.. connectin futures thinkin reconciliation and mediation Make ossibl Peacebuildin roaches to Climate Ch8n in Fi ian Communittes Pros ects for Dialo ue.. Comfflunil Pers ectives from Annenia Sco in for diale ue. Ma in Anr*enion consbtuenryes and is Towards eaceful and lural olitics in Af hanislan Under the Pall of War ac eace ues 11 CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 Financlal Review 2022 was the first of ￿ planned inv8Stm8nt years. r8duryThJ reserves and building organi5ational cap8aty. Three Prograrnme Departments and the Research. Polty a￿1 Advi5w Department were delryated increased financial autonomy, passing more fl8xibl8 funding and more decision making to our peacebuilding departtnents. We have also cautiously 8xpanded or shifted small amounts of programm8s support work to our global offices. 8 process that we anticipat8 will continue gradually in the coming years as we continue to develop our strategies related to decolonisalion and localisation. We initiatad registration of a regionavbranch office in Kenya to assist and oversee our slightly expanded operations in Jigjiga, Ethiopia and Bangui. C8nlral Afn'ca Republic. The Africa Department will continue to require signffi¢anl investment. The Statement of Financlal Activities shows a net deficit of £633,986 (2021 surplus of £54,197) for the ye8r 8nd total fvnds available stand al £1.195,00912021 - £1,836.7631. We undertook a planned 'sp8nding down, of reserves in 2022 lo move towards our reserves ceiling. fund the contsnued embedding of our Departmental structure as well as the conlinualion of several critical peace processes and other pea¢*building programmes. With thls planned investment and necessary reserves redu¢tlon In 2022 and 2023. we believe the organisatlon Is.In a reasonable posltion lo pursue sustainable finances and a retum to a Small surplus In 2024. Incomg recognlsed in 2022 was £9.863,817 compared to total Incomo of £10,786,525 in 2021. The level of.deferred income balances as al tho end of 2022 reduced to £2.793.298. {2022 - £2,896.6501'. see note 15. A contract by contract level review Informs the deasion as to whelher income should be recognised in the current year or whether11 Is recognised as deferred incnme {further infom)alion is Included in Note 1- Incom8 Recognition), The ¢volvlng and welcome focus on safeguardlrrfJ. keeping staff and people we Interact safe, alongside evolving regulatory requirements such as the development of the UK'S sanctions regime and Ukraine related sanctlons and fvnding re-alignment, ￿11 all requi￿ conb'nued attentson and intreased financial resour¢es in the years ahead due to the nature and location of our work. Conciliation Resources Gonllnues to plan, adapt and adlust to changing and emerglng trends through our Fundraising Strategy which now Incorporales an increased focus on ¢ommerGial contracting and attention to cost recovery. Despite redudons, we are fortunate to have the supwrt ofthe Swedish Intemattonal Development Cooperation Agency (Sidal for the perlod 2020 - 2023. This continues thè k)ngstanding and much valued relationship betsveen our organlsatlons. 12 CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 Prlnclpal Financlal Management Pollcles Conciliation Resources has finanaal regulations and ¢ontrc4 policies set up and r8v(ewed r8gularly. Thes8 S8t out the allocation of financial management re5ponsibililies, identifying lir￿ of reportlng for all aspects of operations, induding controls. with the delegation of authority and responsibilities clearfy defined. Conalialion Resource5 uses a nominal 18dger coding system for all financial transactions. In 2022, the financ8 team. under the direction of the Financ8 Director. continued lo embed a new financial accounting system introduced in 2021. Regardless of project simplicity or complexity. all proigct expenditure is checked against budget and authorised by the appropriate budget-holder, who is responsitAe lor ensuring that experKlitur8 remains wf(hin budget. 11 is then doubl checked by aulhorised signatories b8fore any payment is made. An annual planning process is carried out by all budgel-holders coverlng their proposed work for the upcoming period along with a fundraising plan, financial budget and cashflow. This infomiation i5 reviewed bythe Executlve Managemgnl Team and cros*organisational functions, such as Safety complian¢e, monitoring and evaluation and finan08. A consolidated report is presented to the Board of Trustees for their endorsement at the ffinal Board m8ekn'ng of the year. Every quarter, as part of the budget reforecasting prO￿ss, the Finance Team m8ets with all teams to discuss the respectlve changes in planned acllvities ihat may impact the annual Ilnances or cashflow. In 2022, these moetings included cautious estimate5 regarding the impact of potential funding ￿dUct￿)nS due to changing donor priorllles. These team forecasts are con￿Iddled Into a refore¢asl of exp8Cted ino)n* and expenditure eath quarter and ara presented to th? Board of TnJ5tees their awareness and consideration. Conciliation Resources holds accounts in six m8in currencies.. Australian dollar. Euro. US dollar, Ethioplan Blrr, Central Afrlcan Francs and Pound Sterfing. In 2022. we also held accounts in Swedish Krona. Exchange rale rfsk is t>Jnsldered al a wojecl and organisational lovel on a rolling basis. Currency exchange rates are monitored by the Flnance Director. who works with Ihe Finance Team to ensure that incomir¥J fvnds are deposited into the appropriate a¢wunt, and transfers ara made In a timely Man￿r. Projects that are planngd based on Income In foreign currency ¢arry an demenl of risk that is idenlified and responded lo at the project planning phas8. Funding to partners is made in a currency that 1$ agre8d with the partner. to reduce exchange rate risk to the partner wlthoul creating unreasonabla rlsk to Concllialion Resources. Overseas expenditure is predominantly In USD and Australian Dollar8. PrlnGlpal Fundlng Sourc•s ' The principal fundlng sources lor the chaty are currenuy grant income and donatlons mainly from governments and charitable organisation5. Further detsils of fvndiro are provided in notes 2 and 3 to the Financial Statements. Investment Pow•rs and Pollcy Conclllallon Resources received Sncome through donations, grants, prolecl Incorne and other sources. Conclllatlon Resources plans ils activities over ono, three and five•year time hoiizons and budgets to use all anticipated income. The only funds that Conciliation Resources holds that are not expendable within 12 months of receipt are reseNes and any grants or contracts for aCtI￿tleS over a longer period. The policy for investment is outlined in our Ethical FundraisirwJ and Investment Policy. We currently retain funds as 17sh and ￿a¢e them on bank deposit, or on deposit with the COIF Charities Deposit Fund. 13 CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 Res9r¥￿ Policy Conciliation Resources aims to keep a prudent working balance of unrestricted reserves to cover fvrtur8 contractual liabilities, mainty staff salaries and rent, to ensure that the organisation has sufficient fvnds ts th8 orderly winding down of activities in the event that the organisation had to close. This amount was set at £756,0(X) in 2022 in accordance with the ReseNes Policy. In addition lo the reserves. the organisation also relain5 an operatiork71 Gonts'ngency. The amount of this contingency was £220.687 as at the and of 2022, after adjusting for Ihe nel bjok value of our f￿ed assets. The totsl unraslricted funds ba18nce al the end of th& year under review was £1.195,009. Of th8 total rès8N6s held at the end of the year, £218,322 was in fixed a&sets. Consequendy. th8 charity had free reserves of £976,687 at the year end. We will undertake a second year of 'spending down. of reserves in 2023 to reach our reserves ceiling, lund the continued gmbedding of this new structure as well as the continuatlon of sev&ral criU¢al peace Prt*esses and other peacebuilding programme$. The Board of Trustees keeps the reserves policy under regular review and parbcular attention will be given to the increasingly global spread offinancial risk and liability as and when the Board and EMT decide to provide office locations with in¢reased direct financial management responsibilty. Plan$ for thg Futuro In early 2023, the peacebuilding sector is needed more than ever yel faces significant challeng88. D8spit8 changing political and donor dynamic5. particularly as a result of the war in Ukraine, the Trustees ar8 pleased with the thlrd year of the 202D-2025 Strategic Plan and the 2020-2025 Operational Plan. W8 are having a positlV8 impact and we sae continued need lor our work and ft)r p8acebuilding approach. We believe that our message is Continuing lo galn traction. Conllnulty and long temi partnershlp are necessary elements of gocmy peacebullding. As seen from 202110 2022. we wlll not be seeking significant grtswth of the overall operats.onal budget or staff body in the next few years. Instead we wlll be seeklng lo maintain our ongoing high quality work, improve our systems and processes and to develop our internal workflows, financial rrndel and inlemats.onal office slnjcture across Africa and SoulhEast Asia and the Paclfic In particular. We were aware that a reductton In diroct unrestricled fvnding, al0ThJ￿d8 continued donor hesitancy to cover support ¢o$t$, would challenge the premise$ of our financial model. With the reduction in funding from S￿a and uncertainty regardlng levels of unreslri¢led funding in the coming years, we are shifting away from low relum efforts at diversification and towards a full cost recovery model and the ability to tender or subcontract for nK)ro commercial and restricted funding to provide risk SPTeading through multiple Instituknonal support for programmes. 14 CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES YEAR ENDED 31 DECEMBER 2022 Trustees. Responsibil[￿e5 In Relation to the Financial Stat•m•nts The Trust8es are responsible for preparing the Annual Report and the financial statements in acccffdanc8 With applicable law and regulation. Company law requires the Trustees to prepare financial ststements for each financial year. Under that law the Trustees have eleded lo prepare the financial ststements in accordance with the Ur)ited Kingdom Generally A￿pted Accounting Practice (United Kiroéom Accounting Standards and applicable lawl. Under company the Tnjstees must not approve the financial statements unless they are satisfied that they give a true and fair view of the slate of affairs of the Company and of ils income and expenditure for that periLyJ. In p￿parirwJ these financial statements, the TNsl88s are required to.. select suitable accounting pdiues and then apply them consistenlly: observe the methods and pnnciples in the charities. SORP: make judgements and eslimates that are reasonabfe and prudent slate whether applicable UK AC￿Unting Standards have been fdlowed. subject lo any materfal departur8$ dlsclosed and explained in the financial statements- prepare the financial slalements on the going ￿nCern basls unless It Is inappropriate lo presumo that the charitable company will continue in business. Th8 Trustees are responsible for keeping adequate accounts'ng rècc*ds thal are suffic6ent to show arKI exFdaln the Company's IransaGlions and dis¢lose with reasonable accuracy al any time th& financial position of the Company and enable them lo ensure that the finan¢ial statements comply wlh the Compani8s Act 2006. They are also responsible for saf8guarding the assets ol the Company and hence for taking reasonabl8 st8ps for the prevention and detectlon of fraud and other irregularitigs. Stat•ment of Dlsclosuro to Audltor In accordance with wmpany law, the Company's Directi)rs certify Ihal.. so far as they are aware, thera Is no relevant audlt Infom)abon of which the Company's aud6tor Is unawarè,, 'and as the Directors ol the Company they have taken all the steps that they ought lo have tsken in order lo make themselves aware of any relevant audit information and to establish that the Charity's auditor is aware of that information. Audltor In November 2020. Ihe Board agreeé to aptK)int Haysmauntyre LLP for the audit of CR'S Financlal Statements for 2020 and three further years. subject to an annLJal ￿V*W and approval by the CR Risk & Audit Committee and the Trustee Eoard.. The trustees have agreed lo re-apEx)int the auditors lo undertake the 2022 Year End audit and Haysmacintyre LLP has Indicated ils willingness to continue in office. Approval This report was approved by the Board of Directors and Trustees on 30 May 2022 and signed on its behalf. Diana Dlrèctor and Chalr of Trustees 15 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONCILIATION RESOURCES Oplnlon We have audited the financial statements of conulith.on Resour(￿ for the year ended 31 December 2022 which comprlse the Statement of Fin8nc181 Activities. the Balance Sheet, the Statement of Cash Flows and notes to the rinanGlal statements, Including a summary of signific8nt accounting policles. The financial reporting framework thal has b6en applied in their prep8ralion Is applicable law and United Kingdom Accounting Standards, induding Financial Reporting Stsndard 102 The Financial Reporting St8nd8rt144pplicable in the UKandRepublic of Ir8land (United Kingdom G8nerally Accepted Accounting Practice). In our oplnlon, the financlal ststements: give a true and lair view of the state of the charilable (x)mpany's affairs as at 31 December 2022 and of the charitabl8 company's nel movem8nl in furKls, induding the incom8 and expendrfture, for the year then ended,. have been properly prepared in accordanGg with United Kingdom Generally Accepted Aco)unting Practice. and have been prepared in accordan¢e the requiremonls of the Companies Act 2006. Basls for oplnlon We Gonducted our audit in accordance with Inlerrkitional Standard5 on Auditing (UK) (ISAS {UKII and apFAicable law. Our responsibililies under those standards are further described in the Auditorfs responsibilities for the audit of the rinancial statements section of our report. We are indeperKlentof the charity in accordance with the othical requirements that are relevant to our audit of lh8 financial stalemenls in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance wrth these requirements. We believe that the audit eviden¢e we have obtalned Is sufflcient and appropriat8 to provide a basls lor our opinion. ConcluslonJ relatlng to golng concern In auditing the financial statements, we have concluded that the tNstee's use of the going concern basls of accounting In the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identif￿d any material uncertainties relallng to events or condltions that, Individually or collectively, may cast significant doubt on the charitable cnmp8ny's 's ability lo ¢onllnue as a going concern for a period of atlgast hvelve months from when the finan￿al statements ar8 aLrthoris8d for Iss￿. Our responslbililles and the responsibiliti8s of lh8 directors wth resp8(a to going C￿nCEM are descdbed In the relevant Sectlons of thls report. Othor Inforrnatlon The trustees are responsible f(￿ the other information. The other information wmprises the infomallon included In the Trustees, Annual Report. Our opinion on the financial statements does not cover th8 oth8r informalK)n and, ex￿pt to the extent otherwise eXplic￿Y slated in report. we thi not express any fC￿rn of assurance ￿ndUS1On thereon. In Connectlon wlth our audit of the financlal statements. our responsibllty is to read the other infrffmatitsn and, In doing so, consider whether the other infomialion is materially inconsislenl wllh the financial statements or our kn￿edge oblained in the audfc or otherwise appears lo bo materially misstated. If we identify such material ￿n￿nSiSten￿eS or apparent material misstslements. we are required to dete￿Ine whether there is a material mlsstatement in the financial slalemenls or a material misslatement of the olher informab'on. If. based on Ihe work we have pgrformed. we conclud8 that there is a material misslalement of this other infomiation, we are required to report that fact. We have nothing to report in thi5 regard. Oplnlons on other matters prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees. Annual Report (which includes the strategic rewrt and the directors, report prepared for the purposes of w￿panY law} for the financial year for whith the ffinancial statements are prepared is consistent with the financial statements- and the strategi¢ report arKI the directors, report Induded within the TnAstees' Annual Rewrt have been prepared in accordance with applicable legal requirements. Matters on whlch we are requlred to report by exception In the light of the kr￿wledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material mi5Statements in the Trustees. Annual R8PCrt (which incorporates the strategic report and the direGtors' report)- We have nothing to report in respect of the followng matters in relation to which the Companies Act 2006 requires u8 to report lo you rf, in wr opinion.. adequate accounting records have not ken kept by the charitable company., or 16 the charitsble company financial statements are not in ag￿rnent with the accounting records and r9￿M$., or certain disclosures of trustees, remuneration specified by law are not made., or we have not re￿iVed all the information and explanations we require for our audit., or th8 Iruste8s were not entitled to piepare the finanual statements in accordan￿ with tho small companies, regime and take advantage of the small companies, exemptions in pr&paring the twstees. report and from the requirement lo prepare a strategic report. Re5ponslbllltle5 of truste¢s for the financlal statements As explained more fully in the trustses, responsibilities statement s&t out on page 15. the trustees (who are also the directors of the charitable company forthe purposes of company law} are r8Stxsnsible for the preparation of the financial statements and for beir¥J satisfied that they give a true and fair view, and for such internal control as the tnjstees determine is necessary to enable the preparation of finan￿al ststements that are f￿6 from material misstalemenl. whether due to fraud ￿ error. In preparing the financial slatements, Ihe trustees are responsible for assesslng the charitable cornpany's abilty lo continue as a going concern. disclosing, as applicable. matters related to going ¢oncem and Ltsing the going concem. basis of accounb'ng unless the trustees either Intend to liquidale fhe charitable company or to cease operations. or have no realistic allemalive but to do so. Audltof s responslbllltl95 for the audtt of tho Ilnan¢lal statements Our objectives are to obtsin reasonable assurance about whether the finanaal statements as a WE￿1e are fre• from material misstalemenl, whether due lo fraud or error. and lo issue an auditor's report that includes our opinion. Reasonabl8 assurance is a high level of assurance, but is not a guarantee that an audit conduGted in accordance with ISAS (UK) will always delect a material misstalemenl when it exists. Misslatements can arise from fraud or error and are considered material rf. individu811y or in the aggregate, they could reaSona￿Y be expe￿$d to influence the aeonomic declsions of users taken on the basis of these financial statem8nts. Irr8gularilies, Including fraud, are instances of non•¢ompliance with laws and regulalSon$. We design procedures in line with Dur responsibllities, oullingd above, to delect material misstslemeNts in respe¢l of irregularities, including fraud. The extent to whl¢h our procedures are capable of det8cting irregularities, including fraud 15 detailed below: Based on our understanding of the Gharitsble company aTrJ the sector in which itoperales, we identlfied that the prlncipal rlsks of non-compliance ￿th laws and regulations related to regulatory requirements of the Charity Commission, and we considered the extènt to which non-compliance might have a material effecl on the financlal slalements. We also considered thos8 laws and regulations that have a direct impact on the preparation of the fln8n¢ial statements such as the Charities Act 2011, Companies Act 2C(k% and payToII taxes. We evaluated managemgnl's opportunities for fraudulent manipulation of the financial statements {including the dsk of override of controls), arKI determined that the principal risks were rdated to posting inappropriate joum81 entries and management bias in certain accounting eslimales and judgements Such as the income recognition policy applied to grant income. Audll procedures performed by the engagement team indudod: InspeGting correspondence with appropriate regulators and tax 8Uthorities.' . DisGU5sions with management induding consideration of known (Y suspected instsnces of non-compliance with laws and r8gulation and fraud., Evaluating rnanagement's controls designed to prevent and delect irregularities.. Review of minutes of meetings lo identify expected material amounts of voluntary Income,. Identifying and testing journals. using data analyh'cs lo focu5 testing on higher risk entries., and - Challenging assumptlon$ and judgement5 made by management in their iyrti•n￿7jcAIrnÉC)> JJ rn>niJTu)irn*C) Jo 04*L4)tD )00￿(0 )￿¢0￿￿)(￿Cn0>ti) C￿￿￿¢￿￿￿)￿*￿)0C?J JLnb}thsa)￿ry3a c¢Lno) 4%0)*th inc¢ ) aPa￿￿o)￿)crj oh)owts)cDqo oocc I¢D￿cDc￿a) G)AoJts) rn>f)TJTcoIrnEn>n ¥3￿￿00 m>niJTo)imEn>n J¢Dts>trt Ln rJ&CuLn¢Doo￿uojo Qh)N) ￿¢￿0} )LnCo)Ln￿Q 4ui ts) h) C¢DNJQQJ 4¥K) coo ts)ts> in*NJryj￿¢xQD4 O)6)G)￿u￿)￿￿0)cD )thI￿￿)￿)U) ¢5) U) CD Ln NJ (J)¥& ts*ts) CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 8. Governanc8 costs 2022 2021 Board costs Auditors, remuneration {UKI Auditors, remuneration {Elhiopia) Auditors, remuneration (Australia) Legal, professional fees and other suP￿rt costs 5,691 15,750 5.000 7.421 77.092 12,500 5,000 13,408 110.954 31.755 9. Not Incomo lorth• year The nèt Income Is staled after ch8rgiryJ'. 2022 2021 Depreciation of langlble fixed assets Amortisalion of intangible fixed assets 38.001 31.956 43,544 31.956 Operating lease rentals Audll's remuneration- Stalulory audit (current auditor) Statutory audit {Ethiopial Statutory audit {Australial Grant audits Foreign Exchange Translation Gainsl{Losses) 155,￿0 15.750 155.C()o 12,500 5,CQO 7.421 40.136 (7.8581 54,600 {210,3801 10. Trusleas, and k8y manag•mènt p8r3onno1 remun•ratlon and exp8n$o$ Expenses reimbursed for airfares. travel, tdephone, hospitslity and accommodation totalling £5.691 {2021-£847) were paid on behalf of six {2021-threel trusle8S. The number of key management personnel in ihe year was seven120214&venl. The total amunl of employee benefits received by key managemenl personnel during the year was £637,286 (2021-£600,668). The Charity considers its key management Personnel to be the ExeGubve Management Team. 31 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 11 , Staff costs and omployee beneffts The total staff costs and employee benefits were as follows: 2022 2021 Employee salarfes Social security Defined contribution pension c¥)sls 2,589.399 300,186 237,840 2,620,644 281,538 235,013 3.127,425 3,137,195 Tarminatlon payment 17,496 3,127.425 3,154.691 Thè number of employees who received total employe8 beneffts Iexd￿dlng employer national insurance, penslon costs and 18rmination paym8nlsl of more than £60,000 15 as follows.. 2022 2021 £80,00110 £90,000 £70,00110 £80,000 £60,000 10 £70,OCWJ During the year the charity paid £98,20612021-£51.469) under a defined contributlon pènsh)n scheme on behalf of the staff membersldlrector earning over £60.OCH). The averag8 monthly number of employees and full tim& equivalent {FfE) during the year was as follows: 2022 Number 2022 FTE 2021 Number 2021 FTE Executlve Management Team A¢cord, Policy, Practice Africa Department Caucasus Wesl Africa E281 and Central Africa Europe Asia Department Horn of Africa South Asia Pacific Philippines and Columbia South East Asia Department Cross Regional Project Admlnistratve, financial management aTh fundraising support 20.3 19.1 20.2 18.9 Total 82.2 79.8 75.9 73.5 32 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 12. Intanglblg flxed ass8ts Computer Software Cost Balance as 811 January 2022 Additions in the year 297,196 Al 31 Dacembor 2022 297,196 Amortlsatlon Balan¢e as al 1 January 2022 Charge for the year 105.771 31.956 At 31 t)e¢ember 2022 137.727 Net book value As al 31 December 2022 159,469 AS al 31 December2021 191,425 13. Tanglbleflx¢d a¥s•ts Leasehold Improvoments Computer equlpment Flxtures &fitting8 Totsl Co$1 Balance as al 1 January 2022 Additions Disposals 316,564 186,263 29,100 (23,0251 54.287 557,114 29,100 {23,0251 At 31 December 2022 316,564 192,338 54.287 563,189 Depreclatlon Balance as al 1 January 2022 Charge for the year Depreclations on Oisposals 297.478 8,702 140,248 27,(K)2 123.025) 51.634 2.297 489,360 38,001 {23,025) At 31 December 2022 306.180 144,225 53.931 504,336 Net book valu• As at 31 D￿rnber 2022 10.384 48.113 356 58.853 As at31 December2021 19,086 46.015 2.653 67,754 14. Debtors 2022 2021 Grants receivable Other debtors Prepayments and accrued income Grants accrued 1,364.925 35,046 401,788 477,970 546,434 241,532 223.013 529.957 2,279.729 1,540.936 Other debtors Includes a rent depostl of £32.500 {2021- £32,500) which is re(*ivable in more than one year. 33 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 15. Credltors: Amounts Falllng Dug Withln One Year 2022 2021 Trade creditors Social security and other tsxes Other creditors Accruals Deferred income {Nole 161 301.694 144,499 225,312 122,978 2,793.298 99,121 141,050 196,982 119,620 2,896,650 3,587,781 3,453,423 16. D8ferrnd Incom• 2022 2021 Balan￿ as at 1 January Amount released to income in the year Amount def8rr8d In the year 2,896,650 {2,896,650) 2,793,298 3,848,330 (3.848.330) 2,896,6SO 2.793,298 2,896,650 2022 2021 UK Foreign & Commonwealth Office Swedlsh International Oevelopment Coaoperatlon Agency ISIDAI Irish Ald Conflict, Stability and Securty Fund European Union Department of Foreign Affairs & Trade {Au$lralia} Misereor National Endowmenl lor Darn¢￿a¢y, USA Federal Department of Foreign Affairs. Switzerland Joseph Rowntrea Charitable Trust Ploughshares Minister for Foreign Trade and Development, Netherlands Sasakawa Foundation Federal Ministsr for Foreign Affairs Germany Alan & Nesta Ferguson Charitable Trust UN (Women & DP) Sigrid Rausing Zivik Saferworld Chemonics International Idea Danchurch Aid PeaceNexus United Slaes Instltute of Peace Robert Bosch Sliftung 72.456 103,091 561.039 27,825 112.208 772.643 51,943 684.783 143,635 7.127 18,809 83,111 29,806 40,386 531,644 5,055 44,466 9,913 168,537 150,522 1,387 1,469 9,234 2,147 1.092.233 82.384 6.030 48,884 12.248 272,352 50,499 79.624 143,637 159.529 40,808 8,501 1.965 58,018 2.793.298 2,896,650 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 17. Operatlng leases Total future minimum lease payments under norF¢ancellable operating leases are as follows: 2022 2021 Not later Ihan one year Later than one and r￿t tster than fve years 156,947 38,750 165,543 193.750 195.697 359,293 18. Provlslons for liabllltles 2022 2021 Balance as at 1 January Additions during the year 95,914 1,343 94,590 1,324 Balance as at 31 December 97,257 95.914 The provi81on relates to the dI￿p{dationS expense expected for the London office lease. Charges lo the Statement of Financlal A¢livilies resurtiry from provIs￿nS during the year amounl to £1,343 (2021- £1,324) of which all (2027 - all) was attributable to unrestricted fvnds. 35 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 19. Fund raconclllatlon 2022 Balancè as at 01.01.22 Transfers and Balance as Expondlture galnslllossesl at 31.12.22 Income Restrlct8d Funds: Charltabla Actfvitles: Accord, Policy, Practice Caucasus Wesl Africs East and Central Africa Hom ofAlrica South Asia Pacifi¢ Philippines and Columbia Cross R8gional Project 756,606 1.516.391 341,027 626,181 2.230,560 411.723 1,834,148 105.790 259,382 1728,085) (1,462,240} 1309,368) 1574,808) {2,110,071} {411.7171 (1,725.7391 196.4711 {227,5051 128,521) 154,151} 131,659) 151,373) 1120,489) 16} 1108,409) 19,319} 131,877} Total Restrlcted Funds 8.081.808 (7.646.004) (435.804) Total Un￿StrICted Funds 1.836,763 1.782,010 {2,851,7101 427,946 1.195.009 Totsl Funds 1,836,763 9,863,818 {10,497,7141 (7.858} 1,195.009 Fund roconclllatlon 2021 8alanco 88 at 01.01.21 Transfers and Balan￿ a• Expondlturn galnslllossesl at 31.12.21 Incom• Restr1rt0d Funds: Charltablg Actlvltles: Accord, Policy, Practice Caucasus West Afri¢a East and Central Afnca Horn of Africa South Asia Pacific Philippines and Columbia Cross Regional Project 416,013 1.554.322 150.348 24.511 1.393.774 644.512 1.644,725 (392.2911 (1.507.667) (122,6781 (22,2241 (1.238,9551 (609,1921 {1,492,0381 123,722} 146,655} 127.670) 12,287} {154,819) 135.320} 1152,687) 3,144,413 {2,904,7921 (239,621) Total R6Strict8d Funds 8,972,618 {8,289,8371 (682,781) Dèslgnat•d Funds.. Staff contingency fund 53.368 153,368) Gonèral Funds 1.939.578 1.813,907 (2.442,4911 525,769 1,836.763 rotsl Unrestrlcted Funds 1.992.946 1,813,907 {2,442,4911 472.401 1,836,763 Total Funds 1,992,946 10,786.525 {10.732.3281 (210,3801 1,836.763 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 19. Fund recon¢lliatlon 2022 (continued) Purposes of Re$trictsd Funds.. R8Stricled funds are fvnds which are subject to restrictions on use imp)sed by éonors and are not 8V8ilable for use generally by Conciliation Resources. Restricted funds hdd by the Charity are used to fvlfil its objects and goals, in accordance with the lemis and condib'ons specified by th8 sources of the relevant fijnds. Restricted fvnds are currently held for the Accord, Policy and Practice team to deliver infomied, improved support for indusive peace and transition processes and forthe Programm8S teams to support national and regional stskeholder dialogues, promote r6con¢ilialion in communlli•s, to enhan￿ prospects for lasting peace. ensure inclusive policy making and to support innovative paths to peac&. During the year, most fiJnd$ recewed were performance rdaled. In accord8nc8 with the accounting Frt)Ilcy Is80 note 11, funds recelvod and r￿t wognised as income have been carried forward as deferred incom8 (see note 16). Dur6ng the year a number of grants came to an end and a final submission prepar8d to the donor. Any previously unr8cognised overhead contributions were transferred to unrestricted reserves at th8 y8ar end. Transfers be￿¢¢n funds: In 2022. 8 transler was made from restJicted to unrestricted fijnds in respect of Indirect Cosl R6covery IICRJ for funded projects durins the financial year. 20. Analysls of net a$sets belwo8n funds General D&slgnat•d Funds Funds Restrl¢t•d Funds Total 2022 Fixed assets Cash Other currant assetsAiabilities Provlsions 218,322 2,381,996 (1,308,052) 197,257) 218.322 2,381.996 11,308,052} 197.2571 1,195,CK19 1,195,009 Analysls of rn•t a8$els belwegn funds-2021 compaTrtlve General Deslgnated Funds Funds Rostrlcted Funds Total 2021 Fixed assets Cash Olher Current assets1liabi1￿es Provisions 259,179 3,585.985 11,912.487) 195,914) 259.179 3,585.985 (1,912,487) (95.914) 1,836.763 1,836,763 37 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 21. Analysls of Changes In net funds At start of year Cash- Flows Forèlgn exchange mov•m•nts Other non- cash ¢hangos At end of year Cash 3.585,985 11,196,131) 17,8581 2,381.996 As al 31 December 2022. Conciliation Resources had Th) net debt. 22. Re¢onclllatlon of not expendlture to net cash flow from op8rating actlvttlos 2022 '. 2021 Net incom81{expenditur81 for the year Interest receivab18 Depreciation of langlble fixed assets Amortisalior¢ of intsngible fixed assets Ilncr&85eNdecrease in debtors Increasel(decreas61 in credltors and provisions Unrealiseé exchange rate gainsl{loss) on cash and cash equlval8nts {641.7541 {7.644) 38,￿1 31,956 {738.793) 135,701 7,858 1156,183) {2651 43,544 31,956 (370.2441 I1,418,￿oI 210.380 Nel cash flow from operallng adivilies 11,174.675 11,659,712) 23. Pgnslon8 and othèr post-rotlroment beneflts Deflned contrlbutlon pon3lon plan8 The Charity operates a defined contribution penslon plan lor its employees. The amount ofrAJntributlon8 recognised as an expense during the year was £237.840 {2021- £235,013). The pension expense has been charged to specific prcgrammes where staff are engaged in particular activities. The pension expense included with support costs has been allocated across the activits'es betsveen unrestricted and restricted funds in accordance with the accounlir¥J ￿lIcY on page 24. 24. Ralated party transactlon$ For the whole of the year. the Charity was under the control of the Directors and Trustees as shown on page 2. There were no related party transactions during 2022 (2021.. None). 25. Flnanclal Instruments The charity holds a number of financial assets (for example debtor5 and cashl and financial liabilities (for exampl8 creditor5 and provisions for grants payable) which meet the definition of basic financial instruments under the FRS 102 SORP. Details ol the fneasur8menl bases. accounting pcAicies and carrying valuas for these financial assets and liabilities are disdosed in the notes above. CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022 26. Cornparatlve Ststsment of Flnancial Actlvltl•s120211 Unrestrfctod funds Restrfcted funds Totsl 2021 Income from: Donations 8nd legaci8S 1.792.043 1,792,043 Cbaritsble actlwlies 21.599 8.972.618 8,994,217 Inveslments 265 265 Total Income 1.813,90T 8,972.618 10.786,525 expgndlture on: Raising funds 214,928 214,928 Charitable actlvllbs 2,227.563 8,289.837 10.517.400 Total expendltur• 2,442,491 8,289,837 1 D,732,328 Net Sncomoll•xp¢ndlturg1 1628,5841 682,781 54,197 Transfers be￿een funds 682,781 1682.781) Foreign exchange g81ng1110s5esl (210,380) {210,3801 Not movement In fund8 (156,183) 1156,1831 Reconclllatlon cfiund$.' Total funds brought forward 1.992.946 1,992,946 Total funds carrled lorward 1.836,763 1,836.783 39