## **MISSION AVIATION FELLOWSHIP INTERNATIONAL** 

(Company limited by guarantee and not having a share capital) 

Company Number 3144199 

Registered Charity Number 1058226 

**Financial Statements for the year ended 31 December 2023** 



**MISSION AVIATION FELLOWSHIP INTERNATIONAL CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

|REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT|2|
|---|---|
|ADMINSTRATIVE INFORMATION|16|
|INDEPENDENT AUDITOR’S REPORT|17|
|CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES|20|
|CONSOLIDATED AND CHARITY BALANCE SHEETS|21|
|CONSOLIDATED STATEMENT OF CASH FLOWS|22|
|NOTES TO THE FINANCIAL STATEMENTS|23|



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**MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

The trustees, who are also the directors, of Mission Aviation Fellowship International (“MAF International”) and its subsidiaries, have pleasure in presenting their Annual Report, Strategic Report and Financial Statements for the year ended 31 December 2023. 

## **MESSAGE FROM OUR CHAIR** 

During the year, we celebrated the 50th anniversary of our operations in Arnhem Land. The anniversary reflected our enduring commitment to serve communities in this remote region in Northern Australia. It was very pleasing that during the year we introduced a second caravan, enhancing our ability to reach more remote communities and provide essential services. 

In Papua New Guinea we commenced construction of the Kagamuga Compound at Mount Hagan. This USD 2.9 million project will significantly enhance our operational capabilities and improve housing for our dedicated staff. In Liberia, we completed three new houses, improving the living conditions for our staff and their families who are bringing help, hope and healing to remote communities in this country. 

This year the organisation took a very significant step and ordered four new Caravans from Cessna. These aircraft will be delivered in 2024 and 2025 and enable us to expand our reach and deliver services more efficiently. We continue to be blessed with member groups and donors that have stepped forward to fund these critical aircraft. 

The delivery of our mission to reach isolated people would not have been possible without the dedication and hard work of our staff. I continue to be humbled by the unwavering commitment of our staff and I extend my heartfelt thanks to each member of the MAF International team. 

As we reflect on the many achievements of the year, we are inspired to continue our work with renewed vigour and commitment. We look forward to strengthening our partnership with the communities we serve and the member groups and donors that support us. 

Thank you for being a part of our journey. 

**Peter Curtis** 

Chair of the Board of Trustees, MAF International 

## **REFLECTION BY THE CEO** 

The heart of any organisation is its people. I am so thankful for our staff who work around the globe to accomplish our mission and fulfil our vision. Because of their willingness to faithfully serve in often difficult settings, our aviation services brought help, hope and healing to remote and isolated communities providing a lifeline to the outside world. 

In Papua New Guinea, the village of Dimanbil had worked for almost forty years to change the dense jungle into an airstrip so that MAF could serve their community. The fact that a community would value our air service so highly that they would work for that many years speaks of the impact that we have. 

The work we undertake to reach isolated communities only happens because of numerous people who give financially, pray faithfully and work tirelessly to provide the resources we need to accomplish our mission. 

As Christians, motivated by God’s great love for us, we take great joy in serving those who face daily hardship and struggle. Whether carrying critical supplies into a remote community or flying passengers who need medical attention, often fighting for their lives, we cherish the ability to touch lives in a profound way. In these pages, you will see some of the impact that together we have had in 2023. 

## **Dave Fyock** 

CEO, MAF International 

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**MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **WHO WE ARE** 

We are a Christian charity who provides subsidised aviation services in parts of the world where surface travel is impossible or very difficult. We reach the unreached in some of the world’s most remote and isolated areas, where people are cut off due to geographical barriers, conflict or the dangers of overland travel. Our flights continued to enable hundreds of organisations to overcome these challenges and bring help, hope and healing to people in spiritual and physical need. Ancillary services of flight training, aircraft maintenance, logistics services and other communication services are also provided. 

Our **VISIO** N is to see isolated people changed by the love of Christ. 

Our **MISSION** is to bring help, hope and healing through aviation. 

Our **VALUES** are Witness, Impact, Partnership, Excellence, Stewardship and Care. 

Our mission mandate starts with God’s heart for mission - God’s unconditional love for mankind, the church, society and all of creation. In 1984, the Anglican Consultative Council produced what is now known as the ‘ **Five Marks of Mission** ’: 

- To proclaim the good news of the Kingdom; 

- To teach, baptise and nurture new believers; 

- To respond to human needs by loving service; 

- To seek to transform unjust structures of society, to challenge violence of every kind and to pursue peace and reconciliation; and 

- To strive to safeguard the integrity of creation and to sustain the life of the earth. 

MAF International’s mission mandate is to bring help, hope and healing by proclaiming the gospel, teaching and discipling, showing compassion, seeking justice, and by caring for creation. To do this, all five elements of mission must be demonstrated in an integrated way. 

We are privileged to have dedicated staff who use their skills in aviation and other fields to work with national churches, relief and development agencies, missions, hospitals and governments to meet the most pressing of human needs. 

## **The MAF International Family** 

The MAF International Family is made up of MAF International operations, its 13 members and two provisional members, based in 15 countries around the world. We could not operate without the funding raised, and staff seconded, by MAF members (also known as resourcing groups). We also work closely with Mission Aviation Fellowship in the USA and MAF Canada, who are associate members. The MAF International members are detailed on page 16 under administrative information. 

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**MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **OUR IMPACT** 

## **ACHIEVEMENTS AND PERFORMANCE** 

During 2023 we operated programmes in 11 countries, Northern Australia (Arnhem Land), Chad, Guinea, Kenya, Liberia, Madagascar, Papua New Guinea, South Sudan, Tanzania, Timor-Leste and Uganda. Additionally, we operated a Maintenance and Flight Training Centre in Queensland, Australia, and provided technology services in Papua New Guinea (under the statutory name of Christian Radio Missionary Fellowship) and a restricted access nation, where we hope to develop operations in country when the time is right. We continued to support the work of the Mission Aviation Training Centre (MATC) in the Netherlands. 

Our operations and ministry vary within each programme and reflect the needs of the country, churches, missions, and nongovernment organisations (NGOs) that we serve. Our operational activities are summarised in the table below: 

||**2023**|**2022**|
|---|---|---|
|**Total hours flown**|18,616|17,362|
|**Number of flight legs **|26,720|24,935|
|**Unique(1) passengers**|77,841|73,516|
|**Distance(km)**|3,739,677|3,410,511|
|**Unique(1) cargo (kg)**|1,902,138|2,283,033|
|**Fleet size(including leased aircraft)**|59|59|
|**Staff**|589|577|
|**Destinations**<br>|533<br>|536<br>|



(1) 

## **ENABLING HEALTH SERVICES** 

## 

Isolated communities often do not have reliable access to medical care. MAF flies medical professionals, supplies, and equipment to the people who need it most. 

In May, a medical team from CURE International flew with MAF to remote communities in northern **Kenya** . The group of 10 flew to Lodwar, Kargi, and Namarei for a three-day medical camp to treat vulnerable children living with disabilities. Ebohle needed surgery for a swollen right ankle after she stepped on a thorn. “Two months later, she could not wear a shoe on her right foot.” said Acadius Akungwi, the Programs Officer at CURE. “The thorn caused Ebohle great discomfort, and she found it increasingly difficult to walk or engage in her usual activities.” Thankfully, a simple procedure by the CURE medical team was the solution. “The surgery was a success, and the thorn was finally extracted.” In total, 51 patients benefited from the three-day medical camp, with nine of those needing a surgical procedure. 

General Supervisor of Hope Clinic, Luc Colaco Guilavogui, knows what isolation does to his community in **Guinea** . When Luc’s brother needed specialist care, he was grateful a MAF flight could help. “The presence of MAF is helping us a lot here. My younger brother was found to have a neurological problem that was giving him a lot of lower back pain, so he couldn’t sit in a car, that’s how we turned to MAF.” The flight took just two hours, but a painful journey by road would take two days. MAF continues to support Hope Clinic by transporting patients, medical staff, and equipment. 

Communication is vital in remote communities. In 2023, MAF Technologies successfully installed a new crosspatch system for the Eastern Highlands Provincial Hospital in **Papua New Guinea** . This was phase one of three phases that will assist all the remote aid posts and health centres within the province who already have either High Frequency (HF) and Very High Frequency (VHF) radio. Cross patching the two different radio frequencies will make communication easy and efficient for patients to reach doctors from the Provincial Hospital from their remote aid posts cutting down travel and medical expenses. 

## **DELIVERING EDUCATION** 

## 

For many, education provides a route out of poverty. But if you live somewhere so isolated that teachers can’t travel to you and schools can’t receive equipment, then the obstacles are that much greater. MAF provides a way to deliver education to remote communities. 

SIL has been working with Christian NGO, ZOA, to transform the education sector among the Pokot people of northern **Uganda** by providing materials in their local language. “Children were not motivated to learn when I had just started 

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**MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

teaching because parents were not sending them to school,” said teacher, Juliet Aperetum. “But since we started teaching them in Pokot, the number of children who are attending school has grown significantly. I have three parents in their early 40s who are learning with the children in my class!” 

Senior students at Laynhapuy Homelands School in **Arnhem Land** , Australia, are making inspirational progress in class thanks to an innovative approach to education. Laynhapuy Homelands School students have had remarkable academic success because the school is built according to the wishes of the Indigenous people it serves. This innovative model involves teachers being flown by MAF to the homelands, and students being flown for short spells, learning together in educational camps. MAF is essential to Laynhapuy’s vision of helping young people remain close to their land, their culture and family. 

The **Liberian** Children’s Ministry (LCM) used MAF flights to reach remote parts of the country as the organisation supports thousands to get an education. Joe Boway, the Superintendent for LCM travelled to Harper in December. “I do enjoy working with the kids, especially seeing kids who are eager to learn academic education,” said Joe. “The school not only runs academic education and Biblical teaching but also vocational skills in tailoring. For years we drove on rough roads, and it was the most difficult moment on the bad roads. MAF flights have made a big difference in reaching people in the interior of Liberia.” 

## **SUPPORTING THE LOCAL CHURCH** 

## 

In 2023, MAF flights enabled access into and out of remote communities for missionaries, local pastors, evangelists and churches. MAF is privileged to play a part in building God’s kingdom across the world. 

A partnership between MAF and Equipping Servants International (ESI) strengthened the local church in **Liberia** by building up skills and bringing support to pastors in remote parts of the country. William Tarpeh flew with MAF in December to Harper to train pastors in hermeneutics (interpreting the Bible). 

With the help of the ministry, pastors have become more effective, using the skills they have learned. “ESI’s major worries in the past were the road condition and spending days and nights [on the road], causing a delay within the ministry,” William said. “MAF flights are just an hour and a few minutes, it is the best reward we have received. MAF’s impact has done so much for the church to be able to carry out its work throughout the country. MAF is indescribable; words are inadequate to express my gratitude to the team.” 

Communities in **Papua New Guinea** received the Bible in their heart language for the first time, thanks to innovations that are speeding up the work of Bible translators. In November, Partnership Officer Caine Ruruk reported that, so far, **MAF Technologies** has supplied over four hundred translation kits to Wycliffe translation teams across the country, allowing them to translate various local language Bibles. “We are helping in fast tracking the process of Bible Translations by lending hands to the Bible translators through supplying appropriate Technology for National Translators (TNTs) for efficient and accurate Bible translations,” he said. 

## **EMERGENCY MEDICAL SUPPORT** 

## 

A medevac or patient transfer can be the difference between life and death in tragic circumstances. MAF provides access for patients in remote locations in need of urgent medical care. 

option. MAF was called to a remote town in the north of the island to medevac the patient to Antananarivo, **Madagascar** a drive that would have taken 12 hours. He arrived at the airstrip unconscious and in a serious condition. The accompanying doctor emphasised the importance of oxygen supply throughout the flight, but thankfully the MAF aircraft had the necessary equipment. “We sometimes check the pilot’s oxygen pressure during flights. In this case we can use it for the patient,” said pilot Wouter Nagel. 

For more than 50 years, MAF has been helping the community of Sengapi, **Papua New Guinea** , by transporting injured people. In January, MAF was called for three patients with broken legs. One was a child of about five years carried by his father. The second one, a young teenager, was carried on a make-shift stretcher and obviously in a lot of pain. The third patient, a middle-aged man, was carried to the plane in a wheelbarrow.  The 25-minute flight to Mt. Hagen, where an ambulance was waiting, was the only option as access to this community requires several days of hiking. 

**Chad** had to be diverted when a medevac call was received for a woman who had been stabbed in the chest and had suffered multiple other injuries. Given her condition, any form of ground transportation would have been excruciating 

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**MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

with no guarantee of making it to a hospital in time. Pilot Becki Dillingham had to make some quick calculations for the unplanned diversion, and she was unsure they would have enough fuel. Thankfully, they were able to refuel at the pickup point and a life was saved thanks to the MAF flight. 

## **BRINGING DEVELOPMENT** 

## 

For many communities, MAF provides vital access that facilitates community development and the delivery of aid programmes. 

The partnership between MAF and RedTribe provided access to Enairebuk, **Kenya** , to bring help, hope and healing to the Maasai community. There are now three functional waterpoints in the area using gravity-fed water systems to bring clean water from the hills closer to the people. Previously relying on rivers, women walked more than a sixteen-kilometre roundtrip to fetch, often contaminated, water for their households The access that MAF provides to this community means the RedTribe organisation can run various projects including education, clinics and now water points. 

In January, Pilot Tobias flew a delegation from Christian NGOs to Pibor to celebrate the launch of an innovative women’s livelihood project that turns surplus food into income. “This project is a turning point for the women involved and the community of Pibor at large,” said Angelo Paterno, Country Director for Help a Child **South Sudan** . Front and centre at the ceremony were the ladies of the Elaweth (Save Us) Women’s Group and the carefully packaged jars of dried fish and okra they’d produced. Pilot Tobias commented "It was interesting to see a livelihood initiative which helps the community preserve two things they have in abundance, fish and okra. Fish has a very short shelf life, barely a day in the heat of South Sudan, unless you smoke and dry it. The initiative teaches the women how to turn something they would have to throw away into a product they can sell in the market to generate income. The project helps them make the most of the resources they have to hand.” 

ACROSS Chief Executive, Elisama Wani Daniel, reflected on the value of a holistic mission approach to address some of the community’s physical and spiritual needs. “We are so grateful to God for the unceasing financial and logistical support and prayers from our partners, Red een Kind and MAF that has made it possible for us to keep on with this ministry!” 

In May, isolated communities on Atauro Island were able to take part in **Timor-Leste** ’s parliamentary elections after MAF flew voting papers, ballot boxes and staff to the island. Voters in the young democracy went to the polls to choose the lawmakers who will sit in the national parliament for the next five years. MAF helped the Technical Secretariat for Electoral Administration of Timor-Leste (STAE) by flying a team to Atauro Island to carry essential items for the election. 

Eliapa da Costa, the Director of STAE in Atauro Municipality, explained what the flight meant for voters across the island. “We thank MAF for their availability in assisting us in this urgent situation and helping us transport the sensitive material for the election safely and securely in a very short time.” Flying with MAF’s planes from Dili to Atauro Island takes only 15 minutes, but the alternative option would have been one to three hours travelling by boats. 

## **60 YEARS IN TANZANIA** 

We give praise to the Lord for the 60 years of service in Tanzania. The Tanzania programme facilitates medical care and evangelism to Tanzania’s remotest regions through regular ‘safaris’. Clementina Dakay Burra has worked for Haydom Lutheran Hospital for over 23 years, and described the partnership with MAF, “We are truly grateful for the work of MAF connecting us to the people in need of medical services. The years we have partnered with MAF shows me the faithfulness of God working with us.” 

## **DISASTER RESPONSE IN SOUTH SUDAN** 

Fighting erupted in Sudan in April, resulting in many people fleeing to surrounding nations. The MAF Disaster Response team found ways to support this significant humanitarian event as thousands of people were fleeing across the border into South Sudan every day. 

In June, MAF launched relief flights from its base in Juba to the remote, northern destination of Renk where the refugee crisis was escalating. Many were South Sudanese nationals who needed to be repatriated to their place of origin. 

In partnership with several organisations such as Cordaid, Citizen’s Call and Every Home for Christ, over the eleven-week response, MAF completed 33 flights delivering 11.8 tonnes of aid and relief supplies and transporting 10 different agencies and organisations. The three-hour flight replaced a dangerous 600-mile road trip. Return legs allowed some refugees to travel onwards to Juba as part of their journey home, or to access medical care. 

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**MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

Cordaid Country Director, Tom Otieno, said, “We just want to appreciate MAF. We saw first-hand your mission of flying for life, we really appreciate it. You are contributing to this response and that cannot be underestimated. You are doing so much. And we are proud to be associated with MAF.” 

The refugee crisis is ongoing and, through its normal operations, the South Sudan programme continues to support NGOs and churches as they seek to meet the needs of the people in Renk through weekly flights. 

## **OUR STRATEGIC PRIORITIES** 

During 2023, we continued to focus our work based on our three strategic pathways of our 2021-25 strategic plan: 

**Expanding our Horizons** – to create opportunity for growth through strategic partnerships, institutional and corporate funding, new programmes, worldwide recruitment, capacity-building in our programme countries and new technology that stewards the environment and provides more economical transportation. 

**Investing in People** – to retain staff longer as well as increase the numbers joining our work through a wellbeing strategy, an engineering apprentice and intern scheme, an increase in the number of instructor pilots, and a standardised management training plan to identify and grow management throughout the organisation. 

**Maximising Impact** - to better evaluate and improve the way we perform our work, through the creation and implementation of a ministry impact tool, modernisation of our software tools, standardisation of our project management, and establish an innovation hub that invites creative thought to better serve our customers. 

## **PROGRESS IN 2023 AND FUTURE DEVELOPMENTS** 

**Looking outwards** – In 2023, we finalised the planning for amphibious operations in the tributaries of the Western Region and the Gulf of Papua New Guinea, in collaboration with the Sustainable Development Program (SDP) and Gulf Christian Services Hospitals (GCS). This area is largely inaccessible and 48% of children experience stunted growth because of malnutrition which is largely permanent and irreversible as it occurs under the age of 2 years old. Both SDP and GCS work towards solutions which will bring long term transformation to the regions, through increasing local health care capacity and training in nutrition. We anticipate commencement of services in mid-2024. 

**Fundraising sources** - We have not been as effective as planned raising funds from institutional donors. This is mainly due to the shift in government priorities, addressing their local communities and servicing government debt post COVID-19. We are grateful for our member groups and their diligent work to continue to raise funds for us. We continue to seek other opportunities as they arise. 

**Worldwide recruitment and capacity building** – In 2023, we celebrated our global staff group with over 26 nationalities serving across our 13 programmes. This included staff members who have grown within their home country moving to other operational programmes to take up more senior roles. We will continue these initiatives in 2024, with our South Africa member group recruiting staff from across Southern Africa and the exploration of a resourcing hub being set up in East Africa. 

**Cultivating care -** In 2023, MAF’s ‘People Care’ function was established with the goal of encouraging and equipping all people in MAF (international, national and support office staff and their families) with the wellbeing resources needed for effective and sustainable service. 

The People Care team was formed, made up of pastoral and HR specialists from across the MAF family. The People Care team provides a vital service in supporting staff, both in programmes and support offices, through in-person visits and remotely. People Care offers all staff the opportunity to receive a mental health check-in and to develop Personal Care and Personal Growth Plans. 

**Moving towards a digital future** – In 2023, we appointed a Chief Information Officer to bring leadership to our technological and digital business to continue to enhance our IT capabilities and maximise efficiencies across the organisation. With a comprehensive five-year technology plan built, we intend to secure our IT foundations with reliable infrastructure and internet capabilities across our operations, review and upgrade our proprietary software, and consider how to use the latest technology, such as Artificial Intelligence, to support our operations. 

**Unlocking the skies -** Instrument Flight Rules (IFR). For something that is standard in commercial flight operations, the authorisation of IFR means pilots can fly exclusively using cockpit instruments. In the past, as soon as the clouds were too low, dense or visibility is reduced by fog, flying was no longer possible. 

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## **MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

In mountainous Papua New Guinea, weather can be unpredictable and change fast, with clouds rolling in at a moment’s notice, so the ability to fly IFR is crucial for delivery of service. In the past, passengers were regularly returned to their boarding destination due to weather conditions. MAF became the first operator in PNG to be granted IFR permissions, a culmination of four years of hard work, internally and with the aviation regulators. Within the first four months of permissions being granted, 60 flights were able to be completed that otherwise would have been delayed or cancelled due to weather restrictions. 

**Enhancing our aviation training** – In 2023, we commenced a project to bring cutting-edge technology to our pilot training capability using advanced C208 simulators, complemented by low-cost virtual reality platforms. The simulators will prepare pilots for service using challenging scenarios in a way that is efficient, cost effective and demonstrates our care for creation through an expected 70% of in-aircraft training being transferred to the simulators. The simulators will also be able to enable internships and inexperienced pilots to do additional training at minimal cost. The first of the simulators, to be located at MATC in the Netherlands, was ordered in Q2 2024. It is expected it will take up to two-years for it to be fully operational. 

lower the average age of our fleet. Reducing the average age of the fleet lowers operating cost and aircraft downtime, maximising our impact in the places where we are needed most. The first phase of the plan was activated in 2023, with four new C208s ordered from Cessna and due to be delivered in 2024 and 2025. We are grateful for all our supporters, both large and small, who have generously donated towards this project. Phase 2 will commence in 2024. 

## **PRINCIPAL RISKS AND UNCERTAINTIES** 

We believe that an effective risk management strategy is key to carrying out our mission. MAF International has a formal risk management process to assess risks and implement risk management strategies.  The risk management process is supported with a range of risk management policies including Safety Management, Financial Crime, Code of Conduct, Safeguarding, and Whistleblowing policies.  These policies are available on our intranet and available for all staff in every location with review and training scheduled via our learning management system. 

The trustees review identified risks and uncertainties regularly to ensure risks are well managed through mitigation activities. The risks are classified into the following groups: Strategic & Enterprise; Governance & Management; Operational; Finance; Environmental & External; and Legal & Compliance. At the end of the financial year, the principal risks, together with the mitigation strategies, being taken to manage these risks were: 

|**Risks**|**Mitgaton strategies**|
|---|---|
|**Safeguarding**<br>**children and**<br>**adults**|We consider safeguarding to be of critcal importance in all areas of operatons and life. Our HR<br>team is responsible for awareness, training, monitoring and care and all managers have<br>safeguarding as part of their key responsibilites. We require biennial training as well as review and<br>signing of our safeguarding policy for all staf.  This is hosted on the learning management system,<br>to ensure compliance.|
|**Technology and**<br>**digital**<br>|Our IT team reduces security and system risks through monitoring and increased controls. The<br>appointment of our CIO will help as we strengthen our IT systems through standardised equipment<br>and processes to provide optmal and cost-efectve solutons. Our strategic development team<br>monitors the development of drones, electric and hydrogen aircraf as well as sustainable aviaton<br>fuel (SAF).<br>|
|**Mission drif**|Our Board of Trustees, CEO and Executve Leadership Team (ELT) own our mission and are tasked<br>with protectng the organisaton from experiencing mission drif. Our strong vision and mission<br>statements allow signifcant discussion across the organisaton afrming many of the core elements<br>of our organisaton, alongside our Mission Mandate which supports how we express that mission.<br>The impact measurement tools we have developed allow us new ways to monitor and evaluate our<br>work.|
|**Long-term**<br>**funding**|Our CEO and ELT engage regularly with senior management and trustee boards across the MAF<br>family to focus on the medium and long-term funding needs for the organisaton.<br>During 2023, the MAF family agreed to appoint a Chief Marketng and Development Ofcer<br>(CMDO) to coordinate fundraising more closely across the family. The CMDO will be appointed in<br>2024 and work with a Steering team and with individuals across the family to enhance our<br>fundraising capabilites and build strength through a more unifed approach.|



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**MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

|**Staf safety**<br>|We seek to balance the protecton of our staf with our calling to work in places that are unsafe and<br>even hostle. All internatonal staf require hostle environment awareness training prior to service,<br>excluding those serving in Arnhem Land. Our Quality, Safety and Security team train our host<br>country staf in more challenging places and review contngency plans and advise on security<br>awareness in our countries of operaton.<br>|
|---|---|
|**Aviaton safety**|Our safety and quality management systems provide a sound foundaton for safe operatons. Our<br>Operatons Leadership Team has safety as one of their top responsibilites. We focus on contnuous<br>improvement, with visible actons taken; as well as the growth and deepening of our safety culture.<br>In 2023, we implemented a new Quality and Safety System, INSIGHT, an integrated reportng<br>system to manage all safety, quality, and security issues, provides business intelligence through<br>concise and confgurable dashboards for management and leadership.<br>|
|**Brand**<br>**reputaton**|We are a family of organisatons, each with their own board and cultural viewpoints, and therefore<br>we must work diligently to maintain our brand. The CEO, ELT and Head of Communicatons engage<br>regularly across the MAF family to ensure there is a one consistent view of MAF around the globe.<br>The CMDO will bring further strength in this area through a coordinated marketng and fundraising<br>strategy.<br>|
|**Infrastructure**<br>|We regularly review, assess and invest in our facilites across all our locatons to ensure they are ft<br>for purpose. This includes upgrading facilites in some locatons to bring added efciencies and<br>greater security and investng in new infrastructure to improve and grow our operatons. We also<br>improve our facilites, where appropriate, with sustainable measures such as solar power. Our feet<br>lifecycle plan ensures sufcient ongoing investment in the renewal and replacement of our aircraf.<br>|
|**Atract talented**<br>**and commited**<br>**people**<br>|We have implemented an engineering apprentce scheme, a management intern scheme, and are<br>coordinatng recruitment eforts across the MAF family using our Career Portal. We contnue to<br>encourage growth and movement of our current staf, as well as increasing the global reach of our<br>recruitment actvites.<br>Our_Growing Leaders_programme is helping us teach and train those in management or leadership<br>roles. We have revamped our performance management process, to include growth and succession<br>planning as part of each review.<br>Our People Care functon is now in place to provide wellbeing, spiritual life, and personal care plans<br>for all staf.<br>|
|**Christan**<br>**distnctveness**|The Board of Trustees, CEO and ELT are responsible for ensuring the organisaton stays true to our<br>vision. We have a statement of faith and encourage daily prayer and worship practces across the<br>organisaton. Challenges to our Christan distnctveness are discussed regularly by the Board and<br>ELT and guidance is given across the organisaton, and wider MAF family, as needed.|



## **OUR ENVIRONMENTAL IMPACT** 

MAF is committed to care for creation to ensure long-term sustainability for the generations to come. Our ultimate beneficiaries are some of the people most affected by the impacts of climate change. Many live from the land, reliant on natural elements to provide reliable food and water. Their environment is being impacted by rising temperatures, increasing fires, floods and extreme weather. 

In 2023, we reviewed our carbon footprint in 2022 in comparison to our baseline year in 2019. 

|**Category**|**2019**<br>**tCO2e **|**2019**<br>**%**|**2022**<br>**tCO2e **|**2022**<br>**%**|**% change**<br>**from 2019**|
|---|---|---|---|---|---|
|**MAF’s own fying**<br>|8,307|76.9|7,984|80.3|-3.9|
|<br>**Internatonal travel**|1,336|12.3|1,061|10.7|-20.5|
|<br>**Energy**|440|4.1|348|3.5|-21.0|
|**Local travel**|372|3.4|312|3.1|-16.1|
|**Freight**|361|3.3|168|2.4|-53.3|
|**Total**|**10,816**|**100**|**9,873**|**100**|**-8.7**|



Carbon emissions reduced between 2019 and 2022, although some of the change was due to the medium-term recovery of travel disruption arising from COVID-19. 

9 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

As an organisation bringing help, hope and healing to the world’s most remote communities, we seek to ensure that the benefits of our life-changing work is accomplished with the least possible impact on the environment.  Our environmental strategy includes: 

- Minimising waste, reducing consumption and increasing the use of sustainable goods.  This will include carbonefficient methodologies such as solar panels, evaluating our supply chain, monitoring the development of sustainable aviation fuels (SAF) and carefully managing travel; 

- Advocacy through engagement across all stakeholder groups, including staff and donors, and intentional work with customers focussed on creation care; 

- Research and investment in new and future technologies including drones, electric aircraft and other carbonfriendly tools; and 

- Meeting or exceeding regulatory compliance in every location. 

During 2023, our associated training base in the Netherlands, MATC, successfully trialled SAF in their training aircraft. SAF production is currently limited, and it would be challenging to obtain SAF in many of the jurisdictions where MAF operates. However we are closely following the development of SAF and associated fleet certification processes. 

Under The Companies (Director’s Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, MAF International is required to report our UK energy use, associated greenhouse gas emissions and information relating to energy efficient action. 

The requirements for carbon and energy reporting have not been completed for the year ended 31 December 2023 because, as a global aviation organisation, only providing this information on UK non-aviation activities would seriously prejudice the readers’ understanding of the actual energy used and greenhouse emissions produced by the organisation. We are working towards producing this information for the whole organisation on an annual basis to meet our internal commitment and Companies Act requirements. 

## **STAKEHOLDER ENGAGEMENT** 

The trustees have taken due notice of the requirements laid out in section 172(1) of the Companies Act 2006. The trustees confirm their compliance with section 172(1) through appropriate delegation of authority to the Finance & Audit, Governance & Risk, and Safety & Security Committees, and also to the CEO, as laid out in the Board Governance Manual. 

The six areas of section 172(1) are addressed as follows: 

## _(a) the likely consequences of any decision in the long term,_ 

issues facing the organisation, the opportunities presented to further our mission and the consequences of not fulfilling the plan. The trustees listened carefully to stakeholders, both internally and externally, in preparation of the plan. 2023 marked the half-way point for the plan, and a deep dive was conducted by the trustees to consider the progress made and the need to change approach where necessary. 

## _(b) the interests of the company's employees,_ 

challenges given to management to care for our staff. A comprehensive staff engagement survey is carried out every five years, the latest being in 2023. Since 2018, results improved in all ten areas of the survey with notable improvement in the areas of manager-employee relationship and people care. Trends are monitored for each operational programme/office and actions taken to improve staff well-being and engagement. In 2024, it is intended that the comprehensive five-year survey will be supported by more regular pulse-surveys in specific areas. 

## _(c) the need to foster the company's business relationships with suppliers, customers, and others,_ 

Our key business relationships are with our member groups (see more detail under f) donors, customers whom we fly, suppliers and our ultimate beneficiaries in the most isolated communities. We regularly carry out surveys with customers as well as ministry effectiveness reviews to ensure we understand the needs of our customers and the isolated communities we serve. By the end of 2024, we intend to have completed impact surveys in all our operational locations to strengthen key programme relationships and ensure we are meeting our customers’ needs, and therefore the needs of the remote communities. 

10 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

_(d) the impact of the company's operations on the community and the environment,_ As an aviation organisation, we are deeply aware of the impact on the environment of our work and services. We actively monitor developments in sustainable aviation and the environmental impact of the support services needed for our operations, see section on environmental impact. We intentionally work closely with the communities where we work to ensure engagement and understanding of MAF, listen to their needs and foster strong relationships. 

_(e) the desirability of the company maintaining a reputation for high standards of business conduct, and_ We always engage with the highest level of integrity with all parties. All staff are trained on, and required to sign, our Code of Conduct and Safeguarding Agreement, which establish the requirement for integrity in all our operations. We also have a Whistleblowing Policy, including an independent hotline, to ensure staff and other external parties such as beneficiaries and suppliers can raise any concerns and that they are properly addressed. 

_(f) the need to act fairly, as between members of the company._ We continue to be grateful for our relationship with the members of MAF International, whose main function is to resource the operations in the provision of staff, funds and underpinning all our activities with prayer. We are aware of our interdependence on one another and seek to work for the mutual benefit and partnership of all parties within the MAF family. The Board of Trustees engages directly with the boards of the MAF member groups. The ELT engages with members of the senior leadership teams in each MAF member group. 

## **FINANCIAL REVIEW** 

Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities, preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

The Consolidated Statement of Financial Activities for MAF International for the year is set out on page 20. Total income for the year was USD 46,639,000 (2022 - USD 44,957,000), 33% (2022 - 32%) was generated by services provided, 64% (2022 - 67%) was voluntary income including restricted gifts and intangible income (the value attributed to international staff seconded from members) and the remaining 3% (2022 – 1%) from other sources. 

The net movement in resources for the year before other gains and losses was a surplus of USD 3,425,000 (2022 – a surplus of USD 8,044,000). The net surplus in revaluation reserve was USD 3,095,000 (2022 - surplus of USD 2,111,000), and, as with 2022, there was no movement on the defined benefits pension scheme. These movements together with other gains and losses, predominantly on foreign exchange transactions, resulted in a net movement in funds for the year of a surplus of USD 5,764,000 (2022 - surplus of USD 8,233,000). This comprises a deficit of USD 732,000 on unrestricted general funds, a surplus on designated funds of USD 3,201,000 and a surplus on restricted funds of USD 3,295,000. This includes a transfer of USD 1,403,000 from restricted funds to designated funds following a review of previously restricted assets in accordance with the accounting policy 1p on page 25. Details of the designated funds are set out in the Notes to the Financial Statements (note 24), which includes a note of how the funds are expected to be used. 

MAF International keeps its financial records in, and reports in, US dollars. As a result, there are unrealised gains and losses on currency translation which arise on the translation of the Papua New Guinea financial statements, as well as on our GBP, AUD and EUR deposits and other short-term assets and liabilities. 

## **Reporting of pension provision** 

From 1999 to 2008, MAF International provided pensions for UK-based employees through "The MAF Europe UK Pension Scheme". The trustees have included pension information on this scheme in the format required by the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2016). 

The scheme was closed to future service accrual at 29 February 2008. The scheme has 17 “deferred” members who will receive their pension, based on service up until that date, at their normal retirement date, together with 13 pensioner members.  The actuarial review as at 1 January 2022 disclosed a funding surplus of GBP 125,000 (USD 151,000 at the December 2022 exchange rate) on assets of GBP 5,241,000 at that date _**.**_ In June 2022, the trustees agreed to pursue a buyout of the scheme. A buy-in was purchased on 31 May 2023 and the buy-out is expected to be completed in 2024. 

Note 27 shows that, as at 31 December 2023, comparing the present value of the scheme’s future liabilities with the current value of the investments, there was a net asset of USD 391,000 (2022 – USD 2,032,000). This has not been recognised in the financial statements because the directors believe it is unlikely this asset will be fully recovered.  The scheme’s assets and liabilities are recorded in GBP and have been translated into USD for these statements. The net pensions asset before translation is GBP 308,000 (2022 – GBP 1,678,000). 

11 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

In addition to the defined benefit scheme, MAF International makes contributions to defined contributions schemes or government schemes on behalf of its employees in accordance with normal practice or legal requirements in each country. 

## **Financial position and reserves policy** 

The assets and liabilities of MAF International are set out in the balance sheet. All the assets were used to further the objects of the charity. The balance carried forward on unrestricted funds totals USD 65,542,000 (2022 – USD 63,073,000); being USD 1,618,000 of general funds (2022- USD 2,350,000) and USD 63,924,000 of designated funds (2022 – USD 60,723,000). The general funds form the charity’s base reserve. 

It is the Board’s policy to reserve sufficient funds to ensure our ongoing operations. These include a base reserve of 45 to 90 days overhead expenditure to withstand peaks and troughs in cash flows. Designated funds are set aside to pay for necessary overhaul and replacement of assets in the event of accidental damage, as well as invest in future growth of the organisation. As a regular part of the Board’s work, all risks and reserves were reviewed, and any recommended changes have been implemented. Details of all the designated funds are set out in note 24. 

At 31 December 2023 the base reserve balance was less than the range of 45 to 90 days of overhead expenditure, however USD 13,902,000 are held in non-capital designated funds that can be utilised if needed. 

## **Fundraising** 

MAF International does not raise funds directly from the public. We receive most donations from the MAF members that diligently work to support our activities. During the year USD 22,115,000 (2022 – USD 23,550,000) was received from MAF groups and in addition USD 1,481,000 (2022 – USD 238,000) was received from Institutional and corporate funders. A breakdown of the source of all the donations received is shown in note 3. 

## **Grants** 

central Asia and staff, USD 283,000 (2022 – USD 251,000) to MAF Norway to support their development and USD 204,000 (2022 – USD 208,000) to MAF Sweden to support their development and staff.  Other grants made are shown in note 6. 

## **Related parties** 

In December 2021, MAF International entered into an unsecured loan agreement with MAF Netherlands, for EUR 1,000,000 to assist in the building of hangar facilities in Mareeba, Queensland, Australia, followed by a further EUR 1,000,000 in January 2022 to purchase a C208 for Arnhem land, Australia. 

EUR 260,000 was repaid against the second loan in 2023 (EUR 443,800 in 2022), leaving EUR 1,296,200 outstanding in aggregate at 31 December 2023. 

## **GOVERNANCE AND STRUCTURE** 

## **Articles of Association** 

MAF International’s initial memorandum and articles of association were dated 23 December 1995. In September 2011, the memorandum and articles of association were replaced, and at a General Meeting of members revised, combined articles of association were adopted. These articles were further revised by some amendments at subsequent meetings. 

Details of MAF International’s subsidiaries are set out in note 29 to the Financial Statements. 

## **Trustees** 

The trustees are appointed by the members. In 2023 the Board met four times. Details of the trustees, committee members, principal officers and advisors are set out at the end of this report. 

The Board is assisted by three subcommittees: a Safety & Security Committee, a Finance & Audit Committee, and a Governance & Risk Committee. The members of these subcommittees comprise board members and outside experts, where appropriate. The nominated safeguarding trustee reports direct to the Board. 

The trustees govern the organisation and delegate the day-to-day running of the charity to the Chief Executive Officer and the ELT, who are responsible for specific areas of the charity and are listed on page 15. The Board maintains a Governance Manual which, sets financial and operational parameters within which the CEO and ELT must manage the operations of MAF. 

12 



**MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **Trustee Induction and Training** 

In the trustee induction programme, new trustees are provided with a copy of the Board Governance Manual as well as a copy of CC3 _The Essential Trustee_ . They are required to attend a series of training sessions with the CEO and other executives to learn more about the work and how MAF International operates. 

The trustees invest in ongoing training, through the invitation of specialists to train the Board on matters of interest, such as good governance, to ensure that the trustees invest in their own development and are kept abreast of best practice. 

## 

The trustees confirm that they have complied with their duty laid out in the Charities Act 2022 to have due regard to the public benefit guidance published by the UK Charity Commission.  MAF International aims to benefit those living in some of the most isolated parts of the world. Our fleet of light aircraft can take emergency teams, healthcare professionals, Christian workers and supplies into these remote areas more quickly and efficiently than by any other means.  As a result, our activities benefit two major groups: firstly, the charities, churches, and other organisations whose mission it is to reach these isolated communities, and secondly the communities themselves. 

## **OUR PEOPLE** 

The CEO, together with the ELT, is responsible for the day–to-day management of MAF International’s affairs and for implementing the policies and strategies set by the Board. 

## **Remuneration of Executive Leadership** 

The trustees set the CEO’s salary having considered his role and responsibilities, the size and nature of the charity, and comparisons with the salaries of others in the same sector in the UK. The salaries of the other members of the ELT are set by the CEO considering the country of residence of each. All ELT members receive the same cost of living rises as the organisation’s other staff in their respective countries of service. 

## **Volunteers** 

We have a small number of volunteers who assist in charitable activities overseas. The trustees and ELT are grateful for the time and effort these individuals contribute to MAF International’s ministry. The time spent by such volunteers is not considered to be material in comparison to the total staff time and therefore no additional disclosure has been made. 

## **Safeguarding** 

We are committed to providing a safe and trusted environment for our staff, volunteers and beneficiaries. We require the highest ethical and moral standards from all our staff and take misconduct seriously. We have written policies with which all staff must comply, including a code of conduct, non-harassment, anti-bullying, data protection and privacy, equal opportunity and just culture policies. 

We have a robust safeguarding policy in place, together with safeguarding standards for the protection of children and vulnerable adults, which require agreement from each member of staff every two years along with refresher training. Safeguarding risks are regularly reviewed by management and the trustees. Recruitment processes include questions for applicants and referees related to safeguarding, along with enhanced training for recruiters. Safeguarding officers have been appointed and trained for each MAF International location and all new staff for overseas roles must undergo a police check before acceptance is confirmed. 

During 2023, there were one minor safeguarding issues reported to and investigated by MAF International. Neither of these required reporting to the Charity Commission. 

## **Employment of Disabled People** 

Our policy and practice is to ensure equal opportunities in the recruitment, training and career development of disabled people on the basis of their aptitude and abilities required in their job role. We also work toward the retention and retraining of employees who have become disabled. 

13 



**MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **OUR SYSTEMS** 

## **Internal Control** 

The trustees have overall responsibility for ensuring that the charity has an appropriate system of internal controls. 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 financial crime, and to provide reasonable assurance that: 

- the charity is operating efficiently and effectively; 

- its assets are safeguarded against unauthorised use or disposition; 

- proper records are maintained and financial information used within the charity or for publication is reliable; and 

- the charity complies with relevant laws and regulations. 

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

- a strategic plan and an annual budget approved by the trustees; 

- regular consideration by the trustees of financial results, variances from budgets and non-financial performance indicators; 

- delegation of authority and segregation of duties; 

- identification and management of risks; and 

- minimum financial internal controls required are documented in a finance manual. 

In addition, there is a financial internal audit function. It includes a schedule of audit visits to programmes on a rotational basis. 

## **Standards, Quality and Flight Safety** 

We operate an aviation safety programme and a quality assurance programme. The aviation standards in the aviation manuals, for all our operations are International Civil Aviation Organisation (ICAO) and/or local national aviation authority (NAA) compliant. 

The purpose of the quality assurance programme in relation to aviation is to monitor achievement and continued compliance with the requirements of the local aviation authority and of MAF International and to ensure adequate procedures for the safe operation of aircraft. In addition to local quality managers, we also operate a central audit system where each programme’s operations and maintenance compliance is monitored annually. Further, we use the ‘Just Culture’ methodology to ensure the right levels of accountability in the organisation. 

The trustees have a sub-committee to regularly review safety standards throughout the organisation and to give oversight to the aviation safety programme. 

14 



**MISSION AVIATION FELLOWSHIP INTERNATIONAL REPORT OF THE TRUSTEES, INCLUDING THE STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** 

elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the group and charity for that period. 

- select suitable accounting policies and then apply them consistently; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards, including FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; 

- state whether a Statement of Recommended Practice (SORP) applies and has been followed, subject to any material departures which are explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and ensuring that the assets are properly applied in accordance with charity law hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and vary from legislation in other jurisdictions. The maintenance and integrity of the group's website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein. 

## **Statements as to Disclosure of Information to Auditors** 

So far as the trustees are aware at the time the report is approved: 

there is no relevant audit information of which the charity’s auditors are unaware; and 

the trustees have taken all steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

## **Co-operation with Other Groups** 

MAF International works closely with other organisations involved with aviation support for church, mission and relief and development groups. MAF International has a close relationship with the independent MAF member groups in various countries. 

Approved by the Board on 9 July 2024. 

Peter Curtis 

Chairman 

15 



**MISSION AVIATION FELLOWSHIP INTERNATIONAL ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **TRUSTEES** 

Peter Curtis (Chair) Søren Filbert Rachel Gardner-Poole (from 1 Jan 2024) Alastair Ralph Gunn Ndabaethethwa Mazabani Stephen Osei-Mensah Dennis van der Sar Carey Vanlalmuana 

## **COMMITTEE MEMBERS** 

## **Finance and Audit Committee:** 

Alastair Ralph Gunn (Chair) Carey Vanlalmuana William Watson 

**Governance and Risk Committee** : Stephen Osei-Mensah (Chair) Peter Curtis Søren Filbert Ndabaethethwa Mazabani 

## **Safety and Security Committee:** 

## **MEMBERS** 

MAF Australia MAF Denmark MAF Finland MAF France MAF Germany MAF Italy MAF Netherlands MAF New Zealand MAF Norway MAF South Africa MAF Sweden MAF Switzerland MAF UK 

## **PROVISIONAL MEMBERS** 

MAF Philippines MAF Singapore 

## **ASSOCIATE MEMBERS** 

MAF Canada MAF USA 

Dennis van der Sar (Chair) Stephen Osei-Mensah Leighton Pittendrigh-Smith 

## **EXECUTIVE LEADERSHIP TEAM** 

David Fyock **Chief Executive** 

Norman Baker III **Chief Operating Officer** 

## **Registered Office, and principal place of business in UK** 

Operations Centre, Henwood, Ashford, Kent, TN24 8DH 

## **Independent Auditor** 

Forvis Mazars LLP, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS 

## **Principal Bankers** 

Anna Beck **Chief Finance Officer and Company Secretary** 

Abraham Carel Bothma **Chief HR Officer** 

National Westminster Bank plc, Europa House, 49 Sandgate Road, Folkestone, Kent CT20 1RU 

## **Solicitors** 

Stone King LLP, 16 St John’s Lane, London EC1M 4BS 

Douglas Ring – from 1 September 2023 **Chief Information Officer** 

William Harding **International Development Director** 

## **ACCOUNTABILITY, ACCREDITATION AND MEMBERSHIPS** 

MAF International is a member of a number of organisations including EU-CORD, ACCORD, Global Connections, the UN Global Logistics Cluster, the DFID Rapid Response Facility, the Common Humanitarian Standards (CHS) Alliance and the Global Network of Civil Society Organisations for Disaster Reduction (GNDR). 

In addition, MAF International is an observer member of Active Learning Network for Accountability Performance in humanitarian action (ALNAP) and recognises and upholds the Sphere standards. 

16 



**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MISSION AVIATION FELLOWSHIP INTERNATIONAL FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **OPINION** 

We have audited the financial statements of Mission Aviation Fellowship International (‘the parent charity’) and its subsidiaries (‘the group’) for the year ended 31 December 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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: 

   - give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 December 2023 and of the group’s income and expenditure for the year then ended; 

   - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

   - have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

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

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

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

## **Other information** 

The other information comprises the information included in the Report of the Trustees, 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Report of the Trustees which includes the Strategic Report and the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Strategic Report and the Directors’ Report included within the Report of the Trustees has been prepared in accordance with applicable legal requirements. 

## **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 Strategic Report or the Directors’ Report included within the Report of the Trustees. 

17 



**INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MISSION AVIATION FELLOWSHIP INTERNATIONAL (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

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

- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of Trustees** 

As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the parent charity for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent 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. 

## **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 the financial statements. 

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 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. 

Based on our understanding of the charity and its sector, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: the Charities Act 2011, tax legislation, safeguarding, pensions legislation, employment regulation, health and safety regulation, anti-bribery, corruption and fraud and antimoney laundering regulation. 

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to: 

- Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations; 

- Inspecting correspondence, if any, with relevant licensing or regulatory authorities; 

- Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and 

- Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud. 

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as The Charities Statement of Recommended Practice and the Companies Act 2006. 

In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, income recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions. 

Our audit procedures in relation to fraud included but were not limited to: 

- Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud; 

- Gaining an understanding of the internal controls established to mitigate risks related to fraud; 

- Discussing amongst the engagement team the risks of fraud; and 

- Addressing the risks of fraud through management override of controls by performing journal entry testing. 

18 



## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MISSION AVIATION FELLOWSHIP INTERNATIONAL (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of nondetection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. 

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. 

## **Use of the audit report** 

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

Signed: 

## Nicola Wakefield 

(Senior Statutory Auditor) for and on behalf of Forvis Mazars LLP Chartered Accountants and Statutory Auditor 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey SM1 4FS 

## Date:     31 July 2024 

19 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023** 

|Note<br>**Income**<br>Donations<br>3<br>Charitable activities<br>4<br>Other<br>**Total income**<br>**Expenditure**<br>Raising funds<br>5<br>Grants made<br>6<br>Charitable activities<br>7<br>**Total expenditure**<br>**Net income/(expenditure) before transfers**<br>9<br>Transfers between funds<br>24,25<br>**Net income/(expenditure) before other**<br>**recognised gains and losses**<br>Net movement in revaluation reserves<br>24,25<br>Other losses<br>**Net movement in funds**<br>Balances brought forward<br>**Balances carried forward**|2023|
|---|---|



There were no recognised gains or losses in either year other than those included in the Statement of Financial Activities. 

All income and expenditure derive from continuing activities in both years. 

The notes on pages 23 to 42 form an integral part of these financial statements. 

20 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31 DECEMBER 2023** 

||||Consolidated|Consolidated|Charity|Charity|
|---|---|---|---|---|---|---|
||||2023|2022|2023|2022|
|||||||As restated *|
|||Note|USD’000|USD’000|USD’000|USD’000|
|**Intangible fixed assets**||11|142|156|142|156|
|**Tangible fixed assets**||12|75,129|72,603|32,939|35,222|
|**Current assets**|||||||
|Stocks||13|3,071|2,792|735|782|
|Debtors||14|7,015|5,251|4,819|2,347|
|Short-term deposits||15|3,402|3,066|-|-|
|Cash and cash equivalents||16|20,502|20,450|17,281|17,327|
||||33,990|31,559|22,835|20,456|
|**Current liabilities**|||||||
|Creditors||17|(7,692)|(8,269)|(4,974)|(5,067)|
|**Net current assets**|||26,298|23,290|17,861|15,389|
|Debtors due after more than one year||14|539|82|539|82|
|**Total assets less current liabilities**|||102,108|96,131|51,481|50,849|
|Creditors due after more than one year||18|(1,425)|(1,516)|(1,425)|(1,516)|
|**Net assets excluding pension and deferred tax**|||||||
|**liabilities**|||100,683|94,615|50,056|49,333|
|Deferred tax liability||20|(1,559)|(1,255)|-|-|
|**Net Assets including pension liability**|||99,124|93,360|50,056|49,333|
|**Accumulated funds**|||||||
|**Unrestricted funds**|||||||
|General|||1,618|2,350|1,151|723|
|Designated revaluations reserves|||5,635|3,456|2,152|1,328|
|Other designated funds|||58,289|57,267|28,278|28,657|
|||24|63,924|60,723|30,430|29,985|
|**Total unrestricted funds**|||65,542|63,073|31,581|30,708|
|**Restricted funds**|||||||
|Restricted revaluations reserves|||1,773|985|558|438|
|Other restricted funds|||31,809|29,302|17,917|18,187|
|**Total restricted funds**||25|33,582|30,287|18,475|18,625|
|**Total funds**||26|99,124|93,360|50,056|49,333|



Approved by the directors on  9 July 2024 and signed on their behalf by 

Peter Curtis, Chairman 

The notes on pages 23 to 42 form an integral part of these financial statements. 

*See note 31. 

21 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023** 

|Note<br>**Net cash from operating activities**<br>30<br>**Cash flow from investing activities**<br>Purchase of tangible assets<br>Purchase of intangible assets<br>Proceeds from disposals of tangible assets<br>Interest received<br>**Net cash used in investing activities**<br>Effect of exchange rates on cash and cash equivalents<br>**Net increase in cash and cash equivalents**<br>Cash and cash equivalents at start of year<br>**Cash and cash equivalents at the end of the year**|2023<br>USD’000<br>2,306<br>(2,152)<br>(25)<br>427<br>283<br>(1,467)<br>(451)<br>388<br>23,516<br>23,904|2022<br>USD’000<br>10,364<br>(6,197)<br>(140)<br>320<br>20|
|---|---|---|
|||(5,997)<br>(1,418)|
|||2,949<br>20,567|
|||23,516|



The notes on pages 23 to 42 form an integral part of these financial statements. 

22 



**MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **1. ACCOUNTING POLICIES** 

Mission Aviation Fellowship International is a charitable company limited by guarantee and registered in England and Wales, registration number 3144199, and a registered charity number 1058226. The registered office is Operations Centre, Henwood, Ashford, Kent TN24 8DH. 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2020), Charities SORP (FRS 102) and the Companies Act 2006. 

MAF International meets the definition of a public benefit entity under FRS102. 

The principal accounting policies adopted in the preparation of the financial statements are set out below. 

## **a Basis of accounting** 

The financial statements have been prepared on a going concern basis, under the historical cost convention, as modified by the recognition of aircraft which are measured at fair value in accordance with the policy k below. 

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 2. 

## **b Going concern** 

MAF International has USD 23,904,000 (2022 - USD 23,516,000) held in immediately accessible cash or short-term investments at 31 December 2023.  Of this USD 8,333,000 (2022 - USD 5,751,000) is held for restricted purposes and the remaining cash is for use at the directors’ discretion which is sufficient to cover the group’s liabilities as they fall due for the foreseeable future. In light of this, these financial statements have been prepared on the basis that the charity is a going concern. 

- **c Consolidation** 

The Consolidated Statement of Financial Activities and the Consolidated Balance Sheet have been prepared by combining the data of MAF International, all of its subsidiary undertakings, see note 29. The charity has taken exemption from presenting its unconsolidated profit and loss account under Section 408 of the Companies Act 2006. The result for the charity only for the year was a surplus of USD 723,000 (2022 – surplus of USD 5,187,000). 

- **d Foreign currencies** 

The functional and presentation currency of MAF International is US dollars as the primary currency used in the aircraft industry. However, income and costs also arise in other currencies due to operating jurisdictions. Other currencies have been translated to US dollars as follows: 

Current assets and liabilities – closing rate at 31 December 2023 

Other amounts - rate at date of transaction 

The key exchange rates used to translate to USD  were: 

||31 December|2023|31 December|2022|
|---|---|---|---|---|
||2023|Average|2022|Average|
|GBP Sterling|1.2732|1.2421|1.2105|1.2400|
|Australian Dollar|0.6805|0.6631|0.6813|0.6965|
|Papua New Guinean Kina|0.2683|0.2791|0.2841|0.2838|



23 



**MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

**e Income** 

- (i) Donations are recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received, and the amount can be measured reliably. 

- (ii) Donated services income comprises the estimated value to MAF International of the staff seconded for international service. The costs are borne by the seconding groups. An equal and opposite charge is recognised in charitable expenditure. In accordance with the Charities SORP (FRS 102), the time donated to MAF International by volunteers is not recognised. 

- (iii) Income arising from charitable activities is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of credits and discounts allowed and value added taxes. 

- (iv) Interest on funds held on deposit is included when receivable and can be measured reliably. 

**f Expenditure** 

(i) Raising funds comprises a proportion of central overhead costs arising from staff and other costs attributable to this activity. 

- (ii) Grants made comprises payments made to other MAF groups and similar organisations either in accordance with donor restrictions placed on the funds, or to support their development, or to enable them to fully finance the seconding of individual staff to our operations. 

- (iii) Charitable activities comprise actual costs relating to the aircraft and other services together with local (overseas) overheads. 

(v) Support costs include functions that directly support the operations such as flight training, engineering, operations support and quality, safety and security. Support costs also include back office costs, finance, personnel, payroll and governance costs which support the charitable activities. These costs have been allocated between cost of raising funds, grants made and charitable expenditure. The basis on which support costs have been allocated is set out in note 8. 

## **g Employee benefits** 

(i) Leave benefits, including holiday pay are recognised as an expense in the period in which the service is rendered. 

- (ii) Pension payments to defined contribution pension schemes are recognised as an expense when they fall due. 

- (iii) MAF international holds a defined benefit pension scheme which is closed to new members and further accrual since 2008. The amount recognised in the balance sheet at 31 December 2023 is USD Nil (2022 – USD Nil). 

- (iv) Annually, an independent actuary is engaged to calculate the obligation arising under the scheme. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating the estimated period of the future payments (‘discount rate’). 

The fair value of plan assets is measured in accordance with the FRS 102 fair value. This includes the use of appropriate valuation techniques. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. 

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss. 

## **h Operating leases** 

Operating lease rentals are charged to the Statement of Financial Activities in accordance with the term of the lease. 

## **i Deferred tax** 

Local legislation requires MAF to be registered as a commercial company in Papua New Guinea, which potentially gives rise to taxation on operating activities. Any taxation liabilities arising from these activities are provided at rates ruling in the relevant accounting period and deferred taxation is provided where it is predicted that a liability may arise in the foreseeable future. 

## **j Intangible fixed assets** 

Purchased and internally developed computer software which costs USD 3,000 or more is capitalised at cost and amortised over its estimated useful life, 5 to 10 years. 

24 



**MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **1. ACCOUNTING POLICIES (CONTINUED)** 

## **k Tangible fixed assets** 

Individual fixed assets costing USD 3,000 or more are capitalised at cost. 

## Depreciation is calculated as follows: 

_(i) Aircraft_ 

Aircraft, where externally insured, are included at their insurance values. Other aircraft are valued at directors’ valuation. Depreciation is charged to write off expenditure over an estimated useful life of 40 years. 

Any increases in the net value are credited to expenditure to the extent that the aircraft has been previously impaired; the remaining gain is credited to the revaluation reserve within other comprehensive income. Any decreases are debited to the portion of the revaluation reserve associated to that aircraft until it is fully depleted and the remaining decrease is charged to expenditure. 

When an aircraft has been purchased, and until it is brought into operational use, it is valued at the costs incurred to date. When it is planned that an aircraft will be sold, the net value of that aircraft is reduced to the expected sale proceeds. 

_(ii) Property_ 

Depreciation is charged to write off expenditure on leasehold property equally over the length of the lease. Depreciation on other buildings is charged to write off the cost to their residual values over their expected economic lives. This is assessed country by country and ranges from 3 to 50 years. Depreciation on leasehold land is charged to write off the expenditure over the life of the lease. For assets in the course of construction depreciation is charged from the date which that facility becomes operational. 

_(iii) Equipment and vehicles_ 

Depreciation is charged to write off the expenditure over an estimated useful life of 5 to 10 years. 

## **l Stocks** 

Stocks and work in progress are valued at the lower of cost and net realisable value. 

## **m Cash** 

Cash at bank and cash in hand includes cash and short term highly liquid investments. 

**n Creditors and provisions** 

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount value. 

## **o Financial instruments** 

Financial assets and liabilities are initially measured at transaction value, except for specific financial instruments which are initially measured at fair value. 

Trade and other debtors are subsequently measured at the settlement amount due. Prepayments are valued at the amount prepaid. Cash at bank and cash in hand includes cash and short-term highly liquid investments. 

Creditors and provisions are subsequently measured at the amount due to settle the obligation where it can be measured or estimated reliably. 

The organisation uses non-speculative foreign exchange contracts to reduce its exposure to foreign exchange risk, in line with the organisation’s investment policy. Foreign exchange contracts are initially recognised at fair value at the date the contract is entered into and are subsequently re-measured to their fair value at each reporting date. The resulting gain or loss is recognised in the Statement of Financial Activities. 

## **p Funds** 

_Unrestricted Funds – General_ comprise net accumulated surpluses. They are available for use to further the charitable objectives of the charity. 

_Unrestricted Funds – Designated_ are amounts that have been set aside by the trustees for specific objectives. 

_Restricted Funds_ are funds and assets subject to specific conditions imposed by donors. When assets are purchased with restricted funds the restriction is deemed to be satisfied after reporting to the donor on the use of those assets ceases. Such assets are then transferred to unrestricted designated funds. 

## **q Related parties** 

In the opinion of the trustees the group has no related parties. 

25 



**MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **2. CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATION UNCERTAINTY** 

The directors evaluate estimates and judgements incorporated into the financial statements. Estimates are based on historical information, assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group: 

## **a Donated services** 

The value of donated services is determined by applying the average cost of a member of seconded staff to all those staff whose services have been donated to the group during the year. The average cost is calculated from the actual staff cost data of three member groups who supplied the highest number of seconded staff during the year. 

## **b Overhaul** 

Funds are set aside in a designated fund for each hour flown for future overhaul of aircraft engines, propellers and the aircraft themselves. Actual expenditure is charged to the designated fund. For aircraft leased from third parties, these funds are included as a liability on the balance sheet. 

## **c Aircraft valuations** 

The group values aircraft by reference to the “Blue Book value” (the aviation industry’s standard indication of the expected recoverable amount on the open market). Adjustments are made for enhancements to the aircraft not accounted for in the Blue Book value, approved by the directors. Annually, every aircraft is revalued and reviewed for impairment. 

## **d Estimation of useful lives of assets** 

The group determines the estimated useful lives and related amortisation and depreciation charges for intangible and tangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The amortisation or depreciation charge will increase where the useful lives are less than previously estimated lives. Technically obsolete assets that have been abandoned or sold are written off or written down. 

## **e Impairment** 

MAF International assesses impairment of intangible and tangible assets at the end of each reporting period by evaluating conditions and events specific to the organisation that may be indicative of impairment trigger. 

## **f Tax accruals** 

The group has a number of outstanding tax issues at the end of the financial year. The expected liabilities are accrued in the financial statements. Each accrual is calculated in accordance with communication from the tax authorities, local legislation and other external factors such as exchange rates. These accruals are reviewed annually and recalculated as necessary. 

26 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **3. INCOME FROM DONATIONS** 

Voluntary income comprises the amounts transferred mainly from the MAF members, together with other gift income. Restricted gifts may have been transferred directly to MAF International by a donor agency, under the direction of the national group. 

|Donated services<br>Income for housing<br>Institutional donors<br>MAF Australia<br>MAF Canada<br>MAF Denmark<br>MAF Finland<br>MAF France<br>MAF Germany<br>MAF India<br>MAF Italy<br>MAF Netherlands<br>MAF New Zealand<br>MAF Norway<br>MAF South Africa<br>MAF Sweden<br>MAF Switzerland<br>MAF UK<br>MAF USA<br>Other donors|2023<br>Unrestricted<br>Restricted<br>Total<br>USD’000<br>USD’000<br>USD’000<br>-<br>5,477<br>5,477<br>726<br>-<br>726<br>-<br>1,481<br>1,481<br>923<br>1,704<br>2,627<br>-<br>11<br>11<br>225<br>203<br>428<br>19<br>35<br>54<br>-<br>60<br>60<br>21<br>67<br>88<br>-<br>6<br>6<br>-<br>4<br>4<br>-<br>4,937<br>4,937<br>-<br>543<br>543<br>-<br>866<br>866<br>-<br>4<br>4<br>83<br>96<br>179<br>-<br>523<br>523<br>7,716<br>3,847<br>11,563<br>21<br>201<br>222<br>85<br>67<br>152<br>9,819<br>20,132<br>29,951|2022<br>Unrestricted<br>Restricted<br>Total<br>USD’000<br>USD’000<br>USD’000<br>-<br>4,518<br>4,518<br>852<br>-<br>852<br>-<br>238<br>238<br>5<br>1,623<br>1,628<br>-<br>15<br>15<br>159<br>197<br>356<br>18<br>34<br>52<br>-<br>40<br>40<br>-<br>72<br>72<br>-<br>-<br>-<br>-<br>5<br>5<br>-<br>4,453<br>4,453<br>-<br>541<br>541<br>536<br>369<br>905<br>-<br>-<br>-<br>-<br>225<br>225<br>-<br>648<br>648<br>7,488<br>6,964<br>14,452<br>29<br>129<br>158<br>18<br>725<br>743|
|---|---|---|
|||9,105<br>20,796<br>29,901|



Many International Staff are paid by the MAF member or another mission agency which then seconds them to the charity. The costs of these staff are therefore borne by those groups and as a result the staff support received is generally not passed to the charity. Other International Staff are paid by the charity. As a partial contribution towards this cost, restricted income is received by the charity from their relevant sending MAF groups. The total of such amounts received by the charity and included in restricted income above was as follows: 

|MAF Australia<br>MAF Canada<br>MAF Germany<br>MAF India<br>MAF Netherlands<br>MAF Norway<br>MAF South Africa<br>MAF Sweden<br>MAF Switzerland<br>MAF UK<br>MAF USA<br>Other donors|2023<br>USD’000<br>1,121<br>11<br>25<br>6<br>180<br>-<br>2<br>-<br>179<br>499<br>108<br>73<br>2,204|2022<br>USD’000<br>1,100<br>10<br>18<br>-<br>214<br>2<br>-<br>31<br>128<br>558<br>105<br>36|
|---|---|---|
|||2,202|



MAF International additionally collected USD 464,000 (2022 – USD 423,000) donations income on behalf of other MAF member groups or associated members. In these situations, MAF International forwards the income onto the relevant group directly and consequently the income has not been recognised in the financial statements. 

27 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **4. INCOME FROM CHARITABLE ACTIVITIES** 

The users of MAF International aircraft contribute to the costs of MAF. Similarly, MAF International seeks contributions towards its costs when providing other services, such as logistics. In Australia, we additionally have an aircraft engineering base which serves both our programmes in the regions as well as third-party customers. MAF Technologies in PNG provides radio and other communication technology services. Some programmes are also able to help third-party organisations with aircraft or vehicle maintenance. 

|Contributions for<br>Aviation services<br>Maintenance services<br>Other technologies<br>Other services|2023<br>General<br>Designated<br>Total<br>USD’000<br>USD’000<br>USD’000<br>14,132<br>-<br>14,132<br>198<br>-<br>198<br>-<br>854<br>854<br>335<br>6<br>341<br>14,665<br>860<br>15,525|2022<br>General<br>Designated<br>Total<br>USD’000<br>USD’000<br>USD’000<br>13,030<br>-<br>13,030<br>188<br>-<br>188<br>-<br>876<br>876<br>262<br>-<br>262|
|---|---|---|
|||13,480<br>876<br>14,356|



MAF International acts as an agent for flights operated by MAF Canada and MAF US. During the year, the group collected and passed on USD 5,000 (2022- USD 10,000) which has not been recognised in these financial statements. 

## **5. EXPENDITURE ON RAISING FUNDS** 

|Allocation of support staff and other costs|2023<br>USD’000<br>547|2022<br>USD’000<br>449|
|---|---|---|



All amounts relate to unrestricted funds in both the current and prior year. 

## **6. EXPENDITURE ON GRANTS MADE** 

Grants were made from restricted and unrestricted funds in 2023 as follows: 

|MAF Canada<br>MAF France<br>MAF Italy<br>MAF Netherlands<br>MAF Norway<br>MAF Philippines<br>MAF Singapore<br>MAF South Africa<br>MAF Sweden<br>MAF Switzerland<br>MAF USA<br>MATC<br>Mission Eine Welt|For<br>international<br>staff support<br>For ongoing operations and development<br>of their activities<br>Sub-total<br>Allocation<br>of support<br>costs<br>Total<br>General<br>General<br>Designated<br>Restricted<br>General<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>132<br>-<br>-<br>-<br>132<br>14<br>146<br>-<br>-<br>-<br>32<br>32<br>1<br>33<br>-<br>-<br>-<br>57<br>57<br>1<br>58<br>4<br>-<br>-<br>-<br>4<br>1<br>5<br>-<br>236<br>-<br>47<br>283<br>26<br>309<br>-<br>-<br>-<br>20<br>20<br>1<br>21<br>-<br>-<br>-<br>30<br>30<br>1<br>31<br>29<br>-<br>-<br>25<br>54<br>4<br>58<br>19<br>185<br>-<br>-<br>204<br>21<br>225<br>95<br>-<br>-<br>-<br>95<br>10<br>105<br>159<br>-<br>-<br>1,359<br>1,518<br>58<br>1,576<br>-<br>-<br>28<br>26<br>54<br>5<br>59<br>-<br>-<br>-<br>9<br>9<br>-<br>9|
|---|---|
||438<br>421<br>28<br>1,605<br>2,492<br>143<br>2,635|



28 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **6. EXPENDITURE ON GRANTS MADE (CONTINUED)** 

Grants were made from restricted and unrestricted funds in 2022 as follows: 

|MAF Canada<br>MAF France<br>MAF Italy<br>MAF Netherlands<br>MAF Norway<br>MAF Philippines<br>MAF Singapore<br>MAF South Africa<br>MAF Sweden<br>MAF Switzerland<br>MAF USA<br>MATC|For<br>international<br>staff support<br>For ongoing operations and development<br>of their activities<br>Sub-total<br>Allocation<br>of support<br>costs<br>Total<br>General<br>General<br>Designated<br>Restricted<br>General<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>139<br>-<br>-<br>-<br>139<br>11<br>150<br>40<br>-<br>-<br>39<br>79<br>14<br>93<br>-<br>-<br>-<br>57<br>57<br>16<br>73<br>8<br>-<br>-<br>-<br>8<br>1<br>9<br>-<br>251<br>-<br>-<br>251<br>20<br>271<br>-<br>-<br>-<br>15<br>15<br>4<br>19<br>-<br>-<br>-<br>15<br>15<br>4<br>19<br>21<br>-<br>32<br>7<br>60<br>6<br>66<br>8<br>200<br>-<br>-<br>208<br>17<br>225<br>31<br>-<br>-<br>-<br>31<br>3<br>34<br>71<br>-<br>-<br>-<br>71<br>6<br>77<br>-<br>-<br>44<br>28<br>72<br>12<br>84|
|---|---|
||318<br>451<br>76<br>161<br>1,006<br>114<br>1,120|



## **7. EXPENDITURE ON CHARITABLE ACTIVITIES** 

Direct costs of services comprise the direct costs of aviation (such as fuel, maintenance and insurance) as well as those of other technologies and of running the aviation operations and maintenance departments, excluding staff costs. The direct costs of providing other services are within other local overhead expenditure and are not material. The method of allocation of support costs is shown in note 8. 

Charitable activities for 2023 were as follows: 

|Direct costs of services<br>Cost of donated services<br>Staff costs<br>Other local overhead expenditure<br>Depreciation, amortisation and<br>impairment<br>(Profit) on sale of assets|Programme costs<br>Sub-total<br>Allocation of<br>support costs<br>Total<br>General<br>Designated<br>Restricted<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>5,761<br>887<br>3,170<br>9,818<br>5<br>9,823<br>-<br>-<br>5,397<br>5,397<br>80<br>5,477<br>6,973<br>7<br>2,756<br>9,736<br>6,274<br>16,010<br>2,886<br>279<br>1,870<br>5,035<br>1,355<br>6,390<br>-<br>1,949<br>87<br>2,036<br>59<br>2,095<br>-<br>237<br>-<br>237<br>-<br>237|
|---|---|
||15,620<br>3,359<br>13,280<br>32,259<br>7,773<br>40,032|



Charitable activities for 2022 were as follows: 

|Direct costs of services<br>Cost of donated services<br>Staff costs<br>Other local overhead expenditure<br>Depreciation, amortisation and<br>impairment<br>(Profit) on sale of assets|Programme costs<br>Sub-total<br>Allocation of<br>support costs<br>Total<br>General<br>Designated<br>Restricted<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>2,188<br>1,396<br>6,060<br>9,644<br>2,563<br>12,207<br>-<br>4,518<br>4,518<br>650<br>5,168<br>6,353<br>197<br>2,224<br>8,774<br>817<br>9,591<br>3,120<br>793<br>207<br>4,120<br>2,279<br>6,399<br>-<br>1,176<br>572<br>1,748<br>387<br>2,135<br>(155)<br>(1)<br>-<br>(156)<br>-<br>(156)|
|---|---|
||11,506<br>3,561<br>13,581<br>28,648<br>6,696<br>35,344|



29 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **8. SUPPORT COSTS** 

Support costs have been collated according to function, which includes all staff directly attributed to that department and other associated costs. These functions are allocated to the main expenditure functions in accordance with time spent supporting that aspect of MAF International’s operations. 

Support costs for 2023 were as follows: 

|Chief Executive and Regional Directors offices<br>Aviation Services including quality and safety<br>Finance<br>Human Resources<br>Information technology and communications<br>Support office costs<br>Depreciation of fixed assets used for support<br>Strategic development|Raising funds<br>Grants<br>Direct costs<br>of operations<br>USD’000<br>USD’000<br>USD’000<br>139<br>18<br>1,022<br>-<br>-<br>2,468<br>143<br>72<br>1,215<br>-<br>53<br>1,009<br>169<br>-<br>1,401<br>-<br>-<br>309<br>-<br>-<br>59<br>96<br>-<br>290<br>547<br>143<br>7,773|Total<br>USD’000<br>1,179<br>2,468<br>1,430<br>1,062<br>1,570<br>309<br>59<br>386|
|---|---|---|
|||8,463|



Unrestricted general support costs for 2022 were as follows: 

|Chief Executive and Regional Directors Offices<br>Aviation Services including quality and safety<br>Finance<br>Human Resources<br>Information technology and communications<br>Support office costs<br>Depreciation of fixed assets used for support<br>Strategic development|Raising funds<br>Grants<br>Direct costs<br>of operations<br>USD’000<br>USD’000<br>USD’000<br>203<br>26<br>957<br>-<br>-<br>1,974<br>100<br>50<br>852<br>-<br>38<br>713<br>146<br>-<br>1,438<br>-<br>-<br>353<br>-<br>-<br>387<br>-<br>-<br>22<br>449<br>114<br>6,696|Total<br>USD’000<br>1,186<br>1,974<br>1,002<br>751<br>1,584<br>353<br>387<br>22|
|---|---|---|
|||7,259|



## **9. NET INCOME BEFORE TRANSFERS** 

The net income before transfers between funds is stated after charging: 

|Auditors’ remuneration<br>Audit fees<br>Realised net loss/(gain) on currency exchange<br>Amortisation of intangible assets (note 11)<br>Depreciation of tangible assets (note 12)<br>Reversal of impairment of tangible assets (note 12)<br>Net (gain)/loss on disposal of fixed assets<br>Charges under operating leases<br>Inventory expensed in the year|2023<br>2022<br>USD’000<br>USD’000<br>142<br>167|
|---|---|
||278<br>(187)|
||39<br>19<br>2,602<br>2,420<br>(546)<br>(304)<br>237<br>(157)|
||1,019<br>1,015|
||1,542<br>1,520|



30 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **10. STAFF EXPENDITURE AND STAFF NUMBERS** 

|Staff Costs<br>Wages and salaries, including intangible expenditure<br>Social security costs<br>Retirement and death-in-service benefits costs<br>Total salaries and benefits paid to Executive Leadership Team during the year<br>Employees that received remuneration of:<br>£60,000 to £69,999<br>£70,000 to £79,999<br>£80,000 to £89,999<br>£90,000 to £99,999<br>Average number of employees - support offices<br>Average number of employees - field<br>Average number of seconded staff|2023<br>2022<br>USD’000<br>USD’000<br>17,355<br>15,484<br>397<br>411<br>1,004<br>1,094|
|---|---|
||18,756<br>16,989|
||498<br>494|
||2023<br>2022<br>Number<br>Number<br>5<br>2|
||-<br>-|
||-<br>-|
||1<br>1|
||105<br>89<br>407<br>386<br>64<br>62|
||576<br>537|



|No remuneration is paid to the directors for their services as trustees of the Group, although expenses incurred personally in the course of<br>their duties are reimbursed.  Expenses waived by the directors for their services as trustees are negligible.<br>2023<br>2022<br>USD’000<br>USD’000<br>Travel expenses reimbursed to 7 directors (2022- 6).<br>28<br>20<br>**11.**<br>**INTANGIBLE ASSETS**<br>Analysis for the group and charity:<br>USD’000<br>**COST**<br>At 1 January 2023<br>309<br>Additions<br>25<br>Disposals<br>(103)<br>At 31 December 2023<br>231<br>**AMORTISATION**<br>At 1 January 2023<br>153<br>Charge in the year<br>39<br>On Disposal<br>(103)<br>At 31 December 2023<br>89<br>**NET BOOK VALUE**<br>At 31 December 2022<br>156<br>At 31 December 2023<br>142|No remuneration is paid to the directors for their services as trustees of the Group, although expenses incurred personally in the course of<br>their duties are reimbursed.  Expenses waived by the directors for their services as trustees are negligible.<br>2023<br>2022<br>USD’000<br>USD’000<br>Travel expenses reimbursed to 7 directors (2022- 6).<br>28<br>20<br>**11.**<br>**INTANGIBLE ASSETS**<br>Analysis for the group and charity:<br>USD’000<br>**COST**<br>At 1 January 2023<br>309<br>Additions<br>25<br>Disposals<br>(103)<br>At 31 December 2023<br>231<br>**AMORTISATION**<br>At 1 January 2023<br>153<br>Charge in the year<br>39<br>On Disposal<br>(103)<br>At 31 December 2023<br>89<br>**NET BOOK VALUE**<br>At 31 December 2022<br>156<br>At 31 December 2023<br>142|No remuneration is paid to the directors for their services as trustees of the Group, although expenses incurred personally in the course of<br>their duties are reimbursed.  Expenses waived by the directors for their services as trustees are negligible.<br>2023<br>2022<br>USD’000<br>USD’000<br>Travel expenses reimbursed to 7 directors (2022- 6).<br>28<br>20<br>**11.**<br>**INTANGIBLE ASSETS**<br>Analysis for the group and charity:<br>USD’000<br>**COST**<br>At 1 January 2023<br>309<br>Additions<br>25<br>Disposals<br>(103)<br>At 31 December 2023<br>231<br>**AMORTISATION**<br>At 1 January 2023<br>153<br>Charge in the year<br>39<br>On Disposal<br>(103)<br>At 31 December 2023<br>89<br>**NET BOOK VALUE**<br>At 31 December 2022<br>156<br>At 31 December 2023<br>142|
|---|---|---|
|||USD’000<br>309<br>25<br>(103)|
|||231|
|||153<br>39<br>(103)|
|||89|
|||156|
|||142|



31 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **12. TANGIBLE FIXED ASSETS** 

Analysis for the Group: 

|Land &<br>Equipment<br>Aircraft<br>Property<br>& Vehicles<br>USD’000<br>USD’000<br>USD’000<br>**COST OR VALUATION**<br>At 1 January 2023<br>49,248<br>30,616<br>6,126<br>Additions<br>389<br>1,241<br>522<br>Disposals<br>(410)<br>(1,363)<br>(315)<br>Revaluation reserve<br>2,421<br>-<br>-<br>At 31 December 2023<br>51,648<br>30,494<br>6,333<br>**DEPRECIATION**<br>At 1 January 2023<br>-<br>8,736<br>4,651<br>Charge in year<br>1,222<br>919<br>461<br>Net Impairment<br>(546)<br>-<br>-<br>Depreciation on disposals<br>(2)<br>(1,126)<br>(295)<br>Revaluation Reserve write back<br>(674)<br>-<br>-<br>At 31 December 2023<br>-<br>8,529<br>4,817<br>**NET BOOK VALUE**<br>At 31 December 2022<br>49,248<br>21,880<br>1,475<br>At 31 December 2023<br>51,648<br>21,965<br>1,516<br>Analysis of value between:<br>Used for direct charitable purposes<br>51,648<br>15,695<br>1,355<br>Used for support of field programmes, management and administration<br>6,270<br>161|Total<br>USD’000<br>85,990<br>2,152<br>(2,088)<br>2,421|
|---|---|
||88,475|
||13,387<br>2,602<br>(546)<br>(1,423)<br>(674)|
||13,346|
||72,603|
||75,129|
||68,698|
||6,431|



The titles of land and buildings in Kenya are held by a corporate body, Missionary Aviation Fellowship (Kenya) Registered Trustees, on behalf of MAF International. 

Included within the cost of ‘Land & Property’ is USD 301,000 relating to a hangar in Madagascar and USD 427,000 relating to the building of housing in PNG. 

Of the net value of ‘Land & Property’ USD 6,651,000 (2022 - USD 5,981,000) relates to freehold or the local equivalent and USD 3,088,000 (2022 - USD 3,344,000) relates to leases in excess of 50 years. 

The land and building at Ashford, UK are secured by a first legal charge with National Westminster Bank plc and with a second legal charge in favour of the trustees of “The MAF Europe UK Pension Scheme”. 

The land and building at Cairns, Australia are secured by a first legal charge with Commonwealth Bank of Australia. 

The historical cost of purchasing the aircraft was USD 58,131,000 (2022 - USD 58,285,000). 

32 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **12. TANGIBLE FIXED ASSETS (CONTINUED)** 

Analysis of the charity only: 

|**COST OR VALUATION**<br>At 1 January 2023<br>Additions and transfers<br>Disposals<br>Revaluation<br>At 31 December 2023<br>**DEPRECIATION**<br>At 1 January 2023<br>Charge in year and transfers<br>Impairment<br>Disposals<br>Revaluation write back<br>At 31 December 2023<br>**NET BOOK VALUE**<br>At 31 December 2022<br>At 31 December 2023<br>**13.**<br>**STOCKS**<br>Aircraft spare parts<br>Fuel and other stocks<br>Work in progress<br>**14.**<br>**DEBTORS**<br>Debtors due after more than one year<br>MAF Suriname<br>Current Debtors<br>Trade and sundry debtors<br>Other debtors<br>Prepayments|Land &<br>Aircraft<br>Property<br>USD’000<br>USD’000<br>21,855<br>17,148<br>-<br>795<br>(3,440)<br>(1,363)<br>1,115<br>-|Equipment<br>& Vehicles<br>Total<br>USD’000<br>USD’000<br>3,712<br>42,715<br>302<br>1,097<br>(278)<br>(5,081)<br>-<br>1,115<br>3,736<br>39,846<br>2,933<br>7,493<br>242<br>1,303<br>-<br>(475)<br>(258)<br>(1,429)<br>-<br>15<br>2,917<br>6,907<br>779<br>35,222<br>819<br>32,939<br>Charity<br>2023<br>2022<br>USD’000<br>USD’000<br>682<br>716<br>53<br>66<br>-<br>-|Total<br>USD’000<br>42,715<br>1,097<br>(5,081)<br>1,115|
|---|---|---|---|
||19,530<br>16,580||39,846|
||-<br>4,560<br>505<br>556<br>(475)<br>-<br>(45)<br>(1,126)<br>15<br>-||7,493<br>1,303<br>(475)<br>(1,429)<br>15|
||-<br>3,990||6,907|
||21,855<br>12,588||35,222|
||19,530<br>12,590||32,939|
||Group<br>2023<br>2022<br>USD’000<br>USD’000<br>1,706<br>1,630<br>1,232<br>1,119<br>133<br>43<br>3,071<br>2,792<br>539<br>82<br>Group<br>2023<br>2022<br>USD '000<br>USD '000<br>4,688<br>3,362<br>869<br>1,151<br>1,458<br>738<br>7,015<br>5,251|||
|||735<br>782||
|||Charity<br>2023<br>2022<br>USD '000<br>USD '000<br>As restated<br>(See Note 31)<br>3,342<br>1,626<br>380<br>239<br>1,097<br>482||
|||4,819<br>2,347||
|||539<br>82||



33 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **15. SHORT TERM DEPOSITS** 

|Bank deposits<br>**16.**<br>**CASH AND CASH EQUIVALENTS**<br>Cash and cash equivalents – Support offices<br>Cash and cash equivalents - Programmes<br>**17.**<br>**CREDITORS**|Group<br>2023<br>2022<br>USD '000<br>USD '000<br>3,402<br>3,066<br>Group<br>2023<br>2022<br>USD '000<br>USD '000<br>17,326<br>17,422<br>3,176<br>3,028<br>20,502<br>20,450|Charity<br>2023<br>2022<br>USD '000<br>USD '000<br>-<br>-|
|---|---|---|
|||Charity<br>2023<br>2022<br>USD '000<br>USD '000<br>16,635<br>16,297<br>646<br>1,030|
|||17,281<br>17,327|
||||



|Trade and other creditors<br>Taxation and social security<br>Amounts due to subsidiary undertakings<br>Loans<br>Accrued expenses|Group<br>2023<br>2022<br>USD’000<br>USD’000<br>4,761<br>5,170<br>281<br>272<br>-<br>-<br>327<br>279<br>2,323<br>2,548<br>7,692<br>8,269|Charity<br>2023<br>2022<br>As restated<br>(See Note 31)<br>USD’000<br>USD’000<br>2,888<br>2,864<br>164<br>135<br>801<br>695<br>326<br>279<br>795<br>1,094|
|---|---|---|
|||4,974<br>5,067|



## **18. CREDITORS DUE AFTER MORE THAN ONE YEAR** 

|Loans<br>Staff resettlement allowances|Group<br>2023<br>2022<br>USD’000<br>USD’000<br>1,104<br>1,391<br>321<br>125<br>1,425<br>1,516|Charity<br>2023<br>2022<br>USD’000<br>USD’000<br>1,104<br>1,391<br>321<br>125|
|---|---|---|
|||1,425<br>1,516|



The loans above were received from MAF Netherlands in December 2021 and January 2022. They are unsecured loans to be repaid in 2027 with annual interest payable at a rate of 2% in arrears. 

34 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **19. PROVISIONS** 

Included in creditors are the following provisions: 

|For overhaul of aircraft owned by 3rdparties<br>For taxation issues in overseas programmes|Charity and Group<br>Balances 1<br>January 2023<br>Provided in<br>the year<br>Utilised in the<br>year<br>Written off in<br>year<br>Balances 31<br>December<br>2023<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>628<br>156<br>(38)<br>-<br>746<br>301<br>61<br>-<br>(84)<br>278|
|---|---|
||929<br>217<br>(38)<br>(84)<br>1,024|



## **20. DEFERRED TAX LIABILITY** 

|Group<br>2023<br>2022<br>USD’000<br>USD’000<br>Provision at 1 January<br>1,255<br>755<br>Movement in the year<br>304<br>500<br>Provision at 31 December<br>1,559<br>1,255<br>**.**<br>**FINANCIAL COMMITMENTS**<br>31 December 2023 the group was committed to making the following payments under non-cancellable<br>Property<br>Other<br>2023<br>2023<br>USD’000<br>USD’000<br>Payable in 1 year<br>316<br>123<br>Payable in 2-5 years<br>73<br>28<br>Payable in over 5 years<br>107<br>-<br>496<br>151|Charity<br>2023<br>2022<br>USD’000<br>USD’000<br>-<br>-<br>-<br>-|
|---|---|
||-<br>-|
||operating leases:<br>Property<br>Other<br>2022<br>2022<br>USD’000<br>USD’000<br>255<br>11<br>60<br>2<br>116<br>-|
||431<br>13|



## **21. FINANCIAL COMMITMENTS** 

At 31 December 2023 the group was committed to making the following payments under non-cancellable operating leases: 

At 31 December 2023, the organisation was also committed to pay USD 3,980,000 in non-cancellable foreign exchange contracts to purchase USD and AUD using GBP and EUR. These commitments are stated at fair value and the USD 5,000 loss arising from the difference between the fair value and notional value has been recognised in the Statement of Financial Activities. 

## **22. CAPITAL COMMITMENTS** 

At 31 December 2023, the organisation was committed to pay a total of USD 11,100,000 under three contracts with Textron Aviation to purchase four caravans in 2024 and 2025.  In addition, the organisation has committed to pay USD 593,000 for the building of staff accommodation at the Kagamuga compound in PNG and USD 28,000 for the completion of the hangar in Madagascar. 

## **23. POST BALANCE SHEET EVENTS** 

On 11 April 2024, the organisation entered into a contract with Textron Aviation to purchase a Grand Caravan EX for a total of USD 3,389,000. 

35 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **24. UNRESTRICTED DESIGNATED FUNDS** 

|Aircraft overhauls fund<br>Assets fund<br>Revaluation reserves<br>Strategic Development fund<br>Future assets fund<br>MAF Technologies (PNG)<br>Self-insurance fund<br>Tactical investment fund<br>Designated funds – Charity only|Balances 1<br>January<br>2023<br>USD’000<br>3,932<br>44,768<br>3,456<br>3,233<br>1,102<br>352<br>3,679<br>201<br>60,723<br>29,985|Income<br>Expenditure<br>USD’000<br>USD’000<br>-<br>(1,134)<br>-<br>(458)<br>-<br>-<br>-<br>(986)<br>66<br>(166)<br>867<br>(986)<br>72<br>(59)<br>-<br>(6)<br>1,005<br>(3,795)<br>72<br>(2,540)|Transfers<br>USD’000<br>(2,798)<br>1,507<br>(17)<br>5,424<br>(1,002)<br>76<br>809<br>(195)<br>3,804<br>2,043|Net tangible<br>asset<br>Revaluation<br>Unrealised<br>exchange<br>(loss)<br>USD’000<br>USD’000<br>USD’000<br>-<br>-<br>-<br>(1,430)<br>-<br>-<br>-<br>2,196<br>-<br>1,430<br>-<br>(9)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>2,196<br>(9)<br>-<br>870<br>-|Balances 31<br>December<br>2023<br>USD’000<br>-<br>44,387<br>5,635<br>9,092<br>-<br>309<br>4,501<br>-|
|---|---|---|---|---|---|
||||||63,924|
||||||30,430|



The aircraft overhauls fund is used to overhaul the engines, propellers and airframes of the aircraft. Engines and propellers must be overhauled after set numbers of hours – most commonly 1,700 hours for a piston engine and up to 5,000 hours for a turbine engine. Funds are transferred from general funds to this designated fund for each hour flown by every aircraft. 

The assets fund represents amounts set aside equivalent to the value of the aircraft, properties, equipment and vehicles used by MAF International (less relevant loans) and provision for the future replacement of some assets, both of which have been financed with transfers from unrestricted general funds. 

The revaluation reserves represent the increase in value of aircraft over their original cost to carrying values where appropriate. 

The development fund is used for the development of MAF Groups to enhance their fund raising and recruitment activities as well as to cover the cost of agreed new ventures, such as setting up operations or organisations to assist in resourcing the charity in new countries. 

The future assets fund was created to cover the cost of specific capital assets, including aircraft, that are essential to the operations and for which no other funding has been received, or is expected. 

MAF Technologies (PNG) represents the net assets of that entity (formerly “CRMF”), which will be used solely for the activities of that ministry in Papua New Guinea. 

The self-insurance fund is available for the repair or replacement of damaged or stolen vehicles and aircraft, other than those which are externally insured. It is also used to cover other items that have not been able to be insured in some countries or where the premiums have been prohibitive. 

The tactical investment fund is used to cover the cost of essential capital or revenue expenditure, for which project funding is unlikely to be available within operational time limits. 

During the 2023 year the board amalgamated the designated funds of the aircraft overhaul fund, future assets fund, tactic investment fund and development fund into one strategic development fund. 

36 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **25. RESTRICTED FUNDS** 

Restricted funds comprise the following unexpended balances of gifts and grants made for specific purposes and the net value of tangible assets bought from restricted funds. Movement and unexpended balances for projects are shown below. 

|Additional and replacement aircraft<br>Arnhem Land, Northern Territories<br>Bangladesh<br>Central Asia<br>Chad<br>Disaster relief<br>Fuel<br>Guinea<br>Kenya<br>Liberia<br>Madagascar<br>MAF Technologies (PNG)<br>Papua New Guinea<br>South East Asia<br>South Sudan<br>Staff costs<br>Tanzania<br>Timor-Leste<br>Uganda<br>Other aviation projects<br>Other locations and sundry projects|Balances 1<br>January<br>2023<br>USD’000<br>320<br>30<br>19<br>-<br>14<br>208<br>-<br>-<br>20<br>437<br>45<br>15<br>1,413<br>12<br>1,266<br>1,319<br>3<br>102<br>72<br>322<br>134<br>5,751|Income<br>Expenditure<br>USD’000<br>USD’000<br>3,628<br>-<br>1,409<br>(1,027)<br>64<br>(70)<br>1,382<br>(1,382)<br>75<br>(74)<br>118<br>(32)<br>1,047<br>(1,047)<br>219<br>(113)<br>275<br>(272)<br>192<br>(176)<br>718<br>(229)<br>82<br>(36)<br>1,600<br>(1,099)<br>2<br>(1)<br>1,051<br>(1,248)<br>5,603<br>(5,940)<br>167<br>(169)<br>337<br>(294)<br>780<br>(663)<br>525<br>(612)<br>930<br>(931)<br>20,204<br>(15,415)|Transfers<br>USD’000<br>(231)<br>(273)<br>-<br>-<br>-<br>-<br>-<br>(47)<br>3<br>79<br>8<br>-<br>(28)<br>-<br>86<br>-<br>-<br>(58)<br>(23)<br>(187)<br>(85)<br>(756)|Net tangible<br>asset<br>Revaluation<br>Unrealised<br>exchange<br>(loss)<br>USD’000<br>USD’000<br>USD’000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(438)<br>-<br>-<br>(354)<br>-<br>-<br>-<br>-<br>-<br>(516)<br>-<br>(35)<br>-<br>-<br>-<br>(23)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(3)<br>-<br>-<br>(82)<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>(1,416)<br>-<br>(35)|Balances 31<br>December<br>2023<br>USD’000<br>3,717<br>139<br>13<br>-<br>15<br>294<br>-<br>59<br>26<br>94<br>188<br>61<br>1,335<br>13<br>1,132<br>982<br>1<br>84<br>84<br>48<br>48|
|---|---|---|---|---|---|
||||||8,333|



37 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **25. RESTRICTED FUNDS (CONTINUED)** 

|Brought forward (page 37)<br>Net value of tangible assets:<br>Aircraft<br>Land and buildings<br>Equipment and vehicles<br>Net value of intangible assets<br>Total Restricted Funds<br>Restricted Funds - Charity only|Balances 1<br>January<br>2023<br>USD’000<br>5,751<br>21,352<br>2,645<br>427<br>24,424<br>112<br>30,287<br>18,625|Income<br>Expenditure<br>USD’000<br>USD’000<br>20,204<br>(15,415)<br>-<br>143<br>-<br>(124)<br>-<br>(106)<br>-<br>(87)<br>-<br>(23)<br>20,204<br>(15,525)<br>15,644<br>(14,331)|Transfers<br>USD’000<br>(756)<br>-<br>(1,150)<br>(253)<br>(1,403)<br>(89)<br>(2,248)<br>(1,694)|Net tangible<br>assets<br>Revaluation<br>Unrealised<br>exchange<br>(loss)<br>USD’000<br>USD’000<br>USD’000<br>(1,416)<br>-<br>(35)<br>-<br>899<br>-<br>1,167<br>-<br>-<br>249<br>-<br>-<br>1,416<br>899<br>-<br>-<br>-<br>-<br>-<br>899<br>(35)<br>-<br>231<br>-|Balances 31<br>December<br>2023<br>USD’000<br>8,333|
|---|---|---|---|---|---|
||||||22,394<br>2,538<br>317|
||||||25,249|
|||||||
||||||-|
|||||||
||||||33,582|
||||||18,475|



Following a review of previously restricted assets and in accordance with the accounting policy 1p on page 25, assets with a net book value of USD 1,403,000 (2022: USD 1,605,000) have been transferred from restricted funds to unrestricted designated funds. 

38 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **26. NET ASSETS** 

|**Consolidated Group**<br>Intangible fixed assets<br>Tangible fixed assets<br>Current assets<br>Long-term assets<br>Current liabilities<br>Long-term liabilities<br>Deferred tax liability|Unrestricted funds<br>Restricted<br>Total<br>General<br>Designated<br>Funds<br>2023<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>-<br>142<br>-<br>142<br>-<br>49,880<br>25,249<br>75,129<br>11,755<br>13,902<br>8,333<br>33,990<br>539<br>-<br>-<br>539<br>(7,692)<br>-<br>-<br>(7,692)<br>(1,425)<br>-<br>-<br>(1,425)<br>(1,559)<br>-<br>-<br>(1,559)<br>1,618<br>63,924<br>33,582<br>99,124|Total<br>2022<br>USD’000<br>156<br>72,603<br>31,559<br>82<br>(8,269)<br>(1,516)<br>(1,255)|
|---|---|---|
|||93,360|



|**Charity only**<br>Intangible fixed assets<br>Tangible fixed assets<br>Current assets<br>Long-term assets<br>Current liabilities<br>Long-term liabilities|Unrestricted funds<br>Restricted<br>Total<br>General<br>Designated<br>Funds<br>2023<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>-<br>142<br>-<br>142<br>-<br>21,181<br>11,758<br>32,939<br>7,011<br>9,107<br>6,717<br>22,835<br>539<br>-<br>-<br>539<br>(4,974)<br>-<br>-<br>(4,974)<br>(1,425)<br>-<br>-<br>(1,425)<br>1,151<br>30,430<br>18,475<br>50,056|Total<br>2022<br>As restated<br>(See Note 31)<br>USD’000<br>156<br>35,222<br>20,456<br>82<br>(5,067)<br>(1,516)|
|---|---|---|
|||49,333|



## **27. DEATH-IN-SERVICE AND RETIREMENT BENEFITS** 

## **Defined benefit pension scheme** 

MAF International provided for pensions for UK based employees through "The MAF Europe UK Pension Scheme". This is an insured scheme, which is invested with Legal and General Investment Management. It is a defined benefit scheme based on 1/60 of final salary for each year of service and was open to all employees. The scheme commenced on 1 January 2000. The scheme was closed to new members in December 2007 and closed for future accrual with effect from 29 February 2008. 

The last (triennial) actuarial report was prepared as at 1 January 2022. It indicated that the scheme was fully funded and so in June 2022, the scheme trustees agreed to pursue a buy-out. 

A comprehensive actuarial valuation of the scheme was carried out at 31 December 2022 by the scheme's actuary. Adjustments to the valuation have been made based on the following assumptions: 

|Discount rate<br>Retail price inflation before 2030<br>Retail price inflation after 2030<br>Limited price indexation<br>Deferred pension revaluation<br>The mortality assumptions used were:<br>For a male aged 65 now<br>At 65 for a male member aged 45 now<br>For a female aged 65 now<br>At 65 for a female member aged 45 now|2023<br>4.5%<br>3.1%<br>3.1%<br>3.0%<br>3.1%<br>2023<br>21.4<br>22.6<br>23.9<br>25.3|2022<br>4.7%<br>3.2%<br>3.2%<br>3.1%<br>3.2%|
|---|---|---|
|||2022<br>22.0<br>23.3<br>24.4<br>25.8|



39 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **27. DEATH-IN-SERVICE AND RETIREMENT BENEFITS (CONTINUED)** 

Reconciliation of scheme assets and liabilities: 

|At 1 January<br>Interest income/(expense)<br>Assets gains<br>Actuarial gains/ (losses)<br>Contributions/(expenses)<br>Benefits paid<br>At 31 December|2023<br>2023<br>2023<br>Assets<br>Liabilities<br>Total<br>USD’000<br>USD’000<br>USD’000<br>5,256<br>(3,224)<br>2,032<br>246<br>(154)<br>92<br>(1,343)<br>-<br>(1,343)<br>236<br>(375)<br>(139)<br>(251)<br>-<br>(251)<br>(84)<br>84<br>-<br>4,060<br>(3,669)<br>391|2022<br>2022<br>2022<br>Assets<br>Liabilities<br>Total<br>USD’000<br>USD’000<br>USD’000<br>7,092<br>(5,442)<br>1,650<br>89<br>(89)<br>-<br>(1,115)<br>-<br>(1,115)<br>(721)<br>2,225<br>1,504<br>(7)<br>-<br>(7)<br>(82)<br>82<br>-|
|---|---|---|
|||5,256<br>(3,224)<br>2,032|



The scheme net asset of USD 391,000 (£308,000) was not recognised in the financial statements in accordance with FRS102, as the directors believe it unlikely that the asset will be fully recovered. 

The fair value of the plan assets is as follows: 

|Gilts<br>Sterling liquid fund<br>Insured pensions<br>Cash<br>Total|2023<br>USD’000<br>-<br>167<br>3,613<br>280<br>4,060|2022<br>USD’000<br>3,058<br>1,597<br>568<br>33|
|---|---|---|
|||5,256|



Under advice, the scheme trustees disinvested the scheme from equities and bonds into a sterling liquid fund in preparation for the buyout. 

## **Non-contributory money purchase arrangements** 

MAF International makes contributions of 10% of annual salary to pension providers of choice for all UK-based employees. During the year these pension contributions to individual non-contributory pension arrangements totalled USD 230,000 (2022 - USD 231,000). 

MAF International in Asia Pacific made contributions of 10% of annual salary for superannuation for all Australia-based employees totalling USD 554,000 (2022 - USD 485,000). 

Pension and superannuation contributions for staff in other fields overseas totalled USD 219,000 (2022 - USD 201,000). 

## **28. TRUSTEES LIABILITY INSURANCE** 

MAF International has arranged liability insurance for its trustees and staff at a cost for the year of USD 13,600 (2022 - USD 7,400) excluding responsibilities regarding Asia Pacific region. 

MAF International Asia Pacific has arranged liability insurance for its directors and staff at a cost for the year of USD 2,300 (2022 - USD 2,200). Both are authorised in the respective Memorandum and Articles of Association. 

40 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **29. SUBSIDIARY UNDERTAKINGS** 

The charity has a number of subsidiaries as follows: 

Stichting MAF International is a foundation registered in the Netherlands, Chamber of Commerce number 74256157. The following programmes operated under this subsidiary Kenya, South Sudan, Tanzania, Uganda until 30 June 2022, when the trade and assets for these programmes were transferred back to the charity. 

Blue Sky Aviation Company Limited (BSA), is a company registered in Mongolia, number 9019010030.  95% of the shares are held by MAF International and the remainder by Exodus Way Company Limited. It was liquidated in July 2022. 

Aviation Communication and Logistics Services Limited is a company registered in Uganda, whose shares are owned by the charity and two nominees. It holds the titles to parcels of land in Uganda which it has leased to MAF International for 99 years. These parcels of land constitute the airfield at Kajjansi, near Kampala. The cost of the leases is included within land & property in tangible fixed assets (note 12). 

Although Mission Aviation Fellowship International is referred to as MAF International in these accounts, there is an Australian charitable company, MAF International, with registration number A.B.N. 32 004 260 860, referred to below as MAF International (in Australia). This company is 100% controlled by virtue that Mission Aviation Fellowship International is the sole member of MAF International. Its principal activity is the provision of air services to the Church and remote communities. This company has two subsidiaries, MAF Aviation Services Pty Ltd and MAF PNG Holding Ltd. MAF PNG Holding Ltd also has one subsidiary, MAF Papua New Guinea Ltd. 

- MAF Aviation Services Pty Ltd is an Australian company, A.C.N. 004 545 108. The company’s shares are wholly owned by MAF International. MAF Aviation Services Pty Ltd has made a long-term loan to MAF PNG Holding Ltd, secured on the latter's assets. It has no other activities. 

- MAF PNG Holding Ltd is a company registered in Papua New Guinea (PNG), registration number 1-22887. The company is wholly owned by MAF International. MAF PNG Holding Ltd acts as the holding company for MAF Papua New Guinea Ltd, a wholly owned subsidiary, and as such it owns and manages all the aircraft, land and buildings and other fixed assets for operations in PNG. 

- MAF Papua New Guinea Ltd is also a company registered in PNG, registration number 1-17085, and is wholly owned by MAF PNG Holding Ltd. This entity carries out the charity’s objectives in that country through aviation. 

Christian Radio Missionary Fellowship Inc (known as MAF Technologies) is a not-for-profit association incorporated in Papua New Guinea, association number 5-903. It is controlled by virtue of a Memorandum of Understanding that grants responsibility for control and governance to Mission Aviation Fellowship International. Its ministry focus is in communications technology and services. 

The following is a summary of the results and of the net assets of the main entities within the group. 

|Income<br>Expenditure<br>Other<br>Net movement<br>in funds<br>Net assets/<br>(liabilities)|MAF<br>International<br>MAF<br>International<br>(in the<br>Netherlands)<br>MAF<br>International<br>(in Australia) *<br>MAF PNG<br>Holding Ltd<br>and MAF<br>Papua New<br>Guinea Ltd<br>MAF<br>Technologies<br>MAF India<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>32,593<br>555<br>5,422<br>7,120<br>943<br>6<br>(23,084)<br>(674)<br>(11,214)<br>(7,256)<br>(982)<br>(4)<br>718<br>(1)<br>426<br>1,200<br>(4)<br>-<br>10,227<br>(120)<br>(5,366)<br>1,064<br>(43)<br>2<br>50,208<br>377<br>44,262<br>3,617<br>658<br>2|2022<br>Total<br>USD’000<br>46,639<br>(43,214)<br>2,339|
|---|---|---|
|||5,764|
|||99,124|



*MAF International (in Australia) includes MAF Aviation Services Pty Ltd. 

41 



## **MISSION AVIATION FELLOWSHIP INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023** 

## **29. SUBSIDIARY UNDERTAKINGS (CONTINUED)** 

The comparative results for 2022 are: 

|Income<br>Expenditure<br>Other<br>Net movement<br>in funds<br>Net Assets|MAF International<br>MAF International<br>(in the<br>Netherlands)<br>MAF International (in<br>Australia)*<br>MAF PNG Holding<br>Ltd and MAF Papua<br>New Guinea Ltd<br>MAF<br>Technologies<br>As restated<br>(See Note 31)<br>As restated<br>(See Note 31)<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>USD’000<br>27,276<br>3,015<br>5,447<br>8,310<br>909<br>(16,074)<br>(3,764)<br>(8,892)<br>(7,211)<br>(972)<br>24<br>(1)<br>(1,590)<br>1,758<br>(2) <br>11,226<br>(750)<br>(5,035)<br>2,857<br>(65)<br>49,333<br>1,443<br>39,133<br>2,726<br>725|2023<br>Total<br>USD’000<br>44,957<br>(36,913)<br>189|
|---|---|---|
|||8,233|
|||93,360|



*MAF International (in Australia) includes MAF Aviation Services Pty Ltd. 

## **30. NOTES TO THE CASH FLOW STATEMENT** 

|Net income before other recognised gains and losses<br>Net interest income<br>Operating surplus<br>Amortisation of intangible assets<br>Depreciation of tangible assets<br>Impairment of tangible assets<br>(Profit)/loss on disposal of tangible assets<br>Working capital movements<br>(Increase) in stocks<br>(increase)/ Decrease in current and long-term debtors<br>(Decrease) in current and long-term creditors<br>Cash flow from operating activities|2023<br>USD’000<br>3,425<br>(283)<br>3,142<br>39<br>2,602<br>(546)<br>237<br>(279)<br>(2,221)<br>(668)<br>2,306|2022<br>USD’000<br>8,044<br>(20)|
|---|---|---|
|||8,024<br>19<br>2,420<br>(304)<br>(157)<br>(379)<br>830<br>(89)|
|||10,364|



## **31. PRIOR YEAR RESTATEMENT** 

The company balance sheet for 2022 has been restated by USD 1,066,000 due to an error in the intergroup transfer of trade and assets from MAF International in the Netherlands to the charity.This has no impact on the group results or group balance sheet for 2022 or 2023. 

42