OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

ANNUAL REPORT & ACCOUNTS 2020 2021

Company Number 03356526

| Chair’s Statement | 01

----- Start of picture text -----
CONTENTS
Chair’s statement 01
About the DEC 02
Strategic report 04
Goal 1: Launch the right appeals at the right time 04
Goal 2: Maximise the money we make for each appeal 05
Goal 3: Increase the impact of the funds we raise
for the people and communities affected by crises 06
Goal 4: Preserve and strengthen the public’s willingness
to donate to humanitarian crises overseas 11
Structure, governance and manangement 12
Independent auditor’s report 16
Accounts 18
Cover image: Nur and her daughter Ismat in a tent in the Rohingya refugee camps in Cox’s Bazar, Bangladesh
in May 2020. Nur said the restrictions related to the virus meant she could not go out to work or buy essential
items. (Names changed to protect identities). © Fabeha Monir/Oxfam
© Fabeha Monir/Age International
----- End of picture text -----*

CHAIR’S STATEMENT

This financial year has been like no other in living memory. As the year started the UK had just been put into lockdown and the first wave of coronavirus was gaining pace here and elsewhere in the world. Like many other organisations the DEC’s staff moved immediately to remote working and began to assess the likely humanitarian impact of the pandemic around the world.

It was clear that a DEC appeal would be required to help mitigate the impact of the virus on the health of people in countries without a functioning health service, as well as addressing the broader economic effects of the pandemic on countries where many people were only just getting by beforehand. But the question of when to launch an appeal and for which countries was extremely complex.

In July, Huda, a mother displaced by the war in Yemen and living in a camp in an abandoned school, told us that the pandemic had caused many people to lose work. “Sometimes our food supplies run out and we have to sell some of our household items, or go to the markets to beg,” she said. In South Sudan, Akech told aid workers she was desperate for schools to reopen so that her children could get their free school meal – their main source of sustenance.

have responded with typical generosity. By the end of March 2021, the appeal had raised £39m, £31m of which had come directly to the DEC, including £10 million matched by the UK Government.

And our member charities started putting funds to work right away. Despite the work taking place in some of the most challenging contexts in the world, in the first six months DEC charities provided 10,000 frontline workers with PPE, distributed handwashing items to 160,000 households, supported 97 health facilities and much more. For more information on how funds were spent, see page 6.

The data on numbers of cases and deaths around the world was hard to interpret with huge variations in the number of tests taking place and the accuracy of government statistics. In most countries that the DEC was monitoring, the total number of deaths is not recorded. It may be many years until we can estimate the true toll of the pandemic on these places.

The Coronavirus Appeal was unique in our 57-year history. Never had the DEC launched an appeal for a disaster happening both overseas and here in the UK simultaneously, asking people who were suffering loss and sacrifice at home to donate money to others facing similar challenges in some of the toughest parts of the world.

That the appeal has been successful amid such challenging circumstances underlines the strength of the DEC - bringing 14 charities together with national media and corporate partners in times of crisis overseas to raise as much money as possible to help those in dire need. At the end of a year like no other, I’d like to extend my thanks to everyone who has helped to save lives in some of the world’s most fragile places – from donors to partners, fundraisers to aid workers.

But in July, after footage emerged of graveyards rapidly filling in Yemen, the DEC’s board, together with our broadcast partners, agreed that the time had come to launch the Coronavirus Appeal to help people in six of the world’s most fragile states - Afghanistan, Democratic Republic of Congo (DRC), Somalia, South Sudan, Syria and Yemen - as well as the Rohingya refugee camps in Bangladesh.

This was also the first appeal the DEC had run remotely. Aided by the various technology and systems we had adopted through our Digital Transformation programme, this went remarkably smoothly, even in the intensity of our appeal launch. This forced change has brought new insights into ways of working that will no doubt stay with us for future appeals.

The global humanitarian outlook, sadly, is grim, with gains seen in recent decades being reversed as a result of the pandemic. But whatever this year holds in store, the DEC’s powerful coalition will be ready to respond once again when the need arises.

For our member charities working on the ground, and their local partners, there were other challenges. Social distancing and other procedures to keep everyone safe slowed down aid distributions and brought new ways of working. Protecting staff has been a priority, both for their own safety and to ensure they’re not spreading the virus among vulnerable populations.

In all these places, large numbers of displaced people were facing the virus in crowded camps with little access to soap, clean water or healthcare - all factors that made them extremely vulnerable to Covid-19. Many also faced a struggle to feed their families, as the pandemic caused incomes to fall and food prices to rise. These secondary economic effects of the pandemic on people who had already lost so much were devastating – particularly for children.

Sue Inglish Chair of Trustees 14 July 2021

Despite the many challenges, our appeal has nonetheless been a success. Even at such an uncertain time, the British public

Disasters Emergency Committee – Year to 31 March 2021

02 | Trustees’ Annual Report | About the DEC |

| About the DEC | Trustees’ Annual Report | 03

----- Start of picture text -----
TRUSTEES’ ANNUAL REPORT
ABOUT THE DEC
When large-scale disasters hit countries without the capacity to respond, the DEC brings
together 14 leading UK aid charities to raise funds quickly and efficiently. In these times
of crisis, people in life-and-death situations need our help and our mission is to save,
protect and rebuild lives through effective humanitarian response.
The Disasters Emergency Committee THE DEC’S WORK FOCUSES ON FOUR GOALS:
(DEC) has 14 members, all leading
UK-based international aid
charities, as follows: Goal 1 : Launch the right appeals, at the right time using agreed criteria and working
closely with our Rapid Response Network partners
Action Against Hunger
ActionAid Goal 2 : Maximise the money we raise for each appeal through constant improvement
across our existing income streams, and continuing to develop insights about current and
Age International
prospective donors
British Red Cross
CAFOD Goal 3 : Increase the impact of the funds we raise for the people and communities
affected by crises by ensuring funds are used efficiently and effectively, supporting
CARE International UK
adaptive programmes that best meet the needs of affected people, and evaluating
Christian Aid DEC-funded work
Concern Worldwide
Goal 4 : Preserve and strengthen the public’s willingness to donate to
Islamic Relief Worldwide
humanitarian crises overseas positioning the DEC as the ‘central coordinator’ of
Oxfam GB the UK’s fundraising appeals for humanitarian crises and applying learnings from
Plan International UK audience research
Save the Children
Tearfund
World Vision UK
RAPID RESPONSE NETWORK (RRN)
The DEC would like to thank its
RRN partners, who help us reach
a wide cross-section of the UK
public during appeals.
BBC | ITV | Channel 4 | Channel 5 |
Sky | Radiocentre | PayPal |
Natwest Group | UK Finance | HSBC |
Barclays | British Airways |
The City of London | The Big Give |
Liverpool FC | Siemens | Morrisons |
The Co-Op | Greggs | NewsNow
Disasters Emergency Committee – Year to 31 March 2021
© Islamic Relief
----- End of picture text -----

CHARITABLE OBJECTIVES OF THE ORGANISATION

OUR VISION

A world where the impact of disasters on affected communities is minimised by working together through effective humanitarian response and growing resilience.

OUR MISSION

Together we will raise funds to save, protect and rebuild lives in vulnerable countries that are impacted by emergencies and major disasters. We will:

WHEN WE LAUNCH AN APPEAL

The DEC responds to disasters in the world’s poorest countries, using a set of criteria to help us decide when we launch an appeal and how we can be most effective.

  1. The disaster must be on such a scale and of such urgency as to call for swift international humanitarian assistance

  2. The DEC member agencies, or some of them, must be in a position to provide effective and swift humanitarian assistance at a scale to justify a national appeal 3. There must be reasonable grounds for concluding that a public appeal would be successful, either because of evidence of existing public sympathy for the humanitarian situation or because there is a compelling case indicating the likelihood of significant public support should an appeal be launched

----- Start of picture text -----
© Scovia Faida Charles/World Vision
----- End of picture text -----

----- Start of picture text -----
© Ismail Taxta/DEC
----- End of picture text -----

HOW WE SPEND AND ALLOCATE YOUR MONEY

Our priority is delivering aid and support to those that need it, as quickly and efficiently as possible. Decisions about how we allocate your money to each of our members when a disaster strikes are taken in advance, based on a calculation of the indicator of capacity (IoC) assessing each member’s ability to deliver aid where it is needed. We make certain that how we spend your money ensures that communities receive the urgent humanitarian aid required, as well as long term support to rebuild their lives after a disaster.

HOW WE ENSURE QUALITY AND ACCOUNTABILITY

The DEC’s work is governed by a commitment to best practice and being accountable to both our donors and those affected by disasters.

Our high standards begin with our membership, for which we have a strict set of criteria to make sure that the DEC is made up of the UK’s leading aid agencies.

We conduct and publish regular independent appeal evaluations to check our members’ disaster responses are really helping the communities that need them most.

Disasters Emergency Committee – Year to 31 March 2021

04 | Strategic Report | Goal 1 |

| Goal 2 | Strategic Report | 05

STRATEGIC REPORT GOAL 1: LAUNCH THE RIGHT APPEALS AT THE RIGHT TIME

The DEC Coronavirus Appeal was launched on 14 July 2020, asking for donations to help seven of the most fragile places in the world - Afghanistan, Democratic Republic of Congo (DRC), Somalia, South Sudan, Syria and Yemen - as well as the Rohingya refugee camps in Bangladesh.

Although the pandemic was rarely out of the news, how it was affecting fragile states and refugees was less visible. However, after a surge of cases in Yemen and news reports showing large numbers of graves being dug, the DEC and its broadcast partners concluded that the time was right to launch the appeal. The generous response of the UK public, raising £17.7 million by the end of the initial two-week campaign despite the difficulties faced at home, indicates that it was the right decision.

As we watched coronavirus spread around the world and become a global pandemic, it was clear that a DEC appeal would be needed at some stage, but the decision on when to launch and which places should be prioritised for funding was very challenging. DEC member charities were responding in a wide range of countries around the world and it was impossible to predict where would be hit the hardest and when, particularly given the lack of testing in many countries.

deaths (which in some places was partly due to a severe lack of testing), the lack of medical facilities and large proportion of displaced and vulnerable people meant these places were assessed as being at high risk from outbreaks of the virus. Not only that, but the severe economic effects of the pandemic were beginning to show themselves with food prices increasing rapidly in some places.

As the pandemic continued to worsen crises in fragile states, and Syria felt the winter bite, we prepared a secondary fundraising campaign for the appeal raising further awareness, including new digital content and an in-depth report on the seven places DEC funds were being spent. Originally planned for January, the campaign was pushed back to March by the wave of Covid-19 infections in the UK in early 2021 and succeeded in raising the profile of the appeal and spurring more donations from the public and corporate partners. As part of this campaign, a call between His Royal Highness The Duke of Cambridge and three Syrian aid workers was hosted by the DEC. A recording of the call was sent to media and shared on the Kensington Palace social media accounts.

The seven places where funds were to be spent were arrived at following extensive discussions with the DEC’s member charities. At the time, they represented the world’s five most fragile states (Yemen, Somalia, South Sudan, Syria, DRC), Asia’s most fragile state (Afghanistan) and the Rohingya camps in Bangladesh, the world’s largest refugee camp. Although they had not yet seen high numbers of cases or

This is the first time the DEC has launched an appeal for a disaster simultaneously affecting the UK, and the timing of the launch needed to be sensitive to how people were being affected here, both medically and economically. By July 2020, the first wave of infections in the UK had been brought under control and lockdown measures had been lifted.

----- Start of picture text -----
© Peter Caton/Action Against Hunger © Peter Caton/DEC
----- End of picture text -----

In November 2020 we asked our member charities to report to us on the conflict in Tigray, Ethiopia, but by the end of the year we had not concluded that our criteria for launching an appeal had yet been met. As the year drew to a close, we were also monitoring the threat of famine in multiple countries, particularly Afghanistan, DRC, Somalia, South Sudan and Yemen, in case the situation there deteriorates and warrants a new DEC appeal related to hunger.

GOAL 2: MAXIMISE THE MONEY WE RAISE FOR EACH APPEAL

This year we sought to maximise the funds we raised for the Coronavirus Appeal in the unprecedented context of a global pandemic. This meant adapting our usual fundraising techniques and embracing new ways of working to ensure that we took opportunities to present people with a way to help as the pandemic unfolded. Work on an overhaul of the DEC website also continued, with the launch just after year-end.

the appeal total stood at £39 million, of which £31 million came directly to the DEC, including £10 million matched by the UK Government.

standard ways of working following strategic investments in digital infrastructure over recent years. Communications staff were seconded from DEC member charities as usual, joining a digital press office, while fundraising teams worked collaboratively and in new, dynamic ways to maximise funds raised and reduce costs.The appeal raised over £5 million in the first day and £17.7 million by the end of the two-week period of joint action where all DEC member charities work together on our fundraising and marketing campaign. However, with seven places and the pandemic far from over, we kept looking for opportunities to promote the appeal and raise money, monitoring news reports and asking supporters for donations when appropriate, keeping the appeal total rising steadily.

Raising funds for the Coronavirus Appeal

The Coronavirus Appeal was launched on 14 July with appeals presented by Anita Rani on the BBC and Riz Ahmed on ITV, Channel 4, Channel 5 and Sky. Anita Rani also presented BBC radio broadcasts while Annie Lennox presented the appeal on commercial radio stations. For the first time, the BBC also shared a social media version of the appeal film on many of its stations’ social media accounts, giving the appeal extended digital reach. Channel 4 News made a version of the appeal for their Facebook page for the first time, including an appearance by Sir Mo Farah. After a special report on Syria, ITV aired the appeal film for a second time – another first. The appeal was supported by a wide range of public figures, including The Duke and Duchess of Cambridge, Martin Clunes, Jason Isaacs, Thandiwe Newton and Emma Watson. A full fundraising and marketing campaign was launched, with channels chosen and adjusted to maximise the funds raised in an unprecedented media consumption environment. For example, with use of public transport being limited by the pandemic, the DEC didn’t advertise at stations or on the TfL network as usual, but instead used roadside outdoor advertising instead. The first £10 million donated by the UK public was matched by the UK Government, dramatically increasing the impact of the appeal.

Reimagining the DEC website

and in new, dynamic ways to maximise funds Throughout the year, DEC staff worked raised and reduce costs.The appeal raised with an external agency to redevelop the over £5 million in the first day and £17.7 DEC’s website to better communicate million by the end of the two-week period of our emergency appeals and improve the joint action where all DEC member charities experience of donors, including by improving work together on our fundraising and its accessibility. Modules were developed to marketing campaign. However, with seven place relevant calls to action on pages and places and the pandemic far from over, we better feature the voices of people affected kept looking for opportunities to promote the by disasters and aid workers on the ground. appeal and raise money, monitoring news Despite a delay due to the launch of the reports and asking supporters for donations Coronavirus Appeal, the discovery phase when appropriate, keeping the appeal total of the project was completed in October, rising steadily. and the build began in January. The new website went live just after the end of the As the needs caused by the pandemic in financial year without causing any noticeable fragile states kept growing at the same reduction in traffic in the short-term. Early time as the amount of aid funding available results from Google Analytics seem positive, internationally was decreasing, we planned with the average time on page increasing a secondary campaign for the appeal, by 34 seconds between the month before including a fundraising video highlighting and month after launch, and the bounce how Covid-19 combined with other factors rate reducing by more than 10% - both in fragile states, and an in-depth report indications that the new layout is more into what 2021 held for our seven appeal engaging. Particular attention was paid locations. The campaign, originally planned to ensuring that the experience on mobile for January but delayed due to the wave was as good as desktop, as during the of coronavirus infections in the UK, was last appeal the website received more launched in March 2021. In total, the traffic from people using mobile phones campaign raised over £4 million. than computers. In March 2021, the DEC hosted a video call with His Royal Highness The Duke of Cambridge and three Syrian aid workers to highlight the dire humanitarian situation facing displaced people in the country’s northwest. By the end of March 2021,

This was the first ever DEC appeal to be run remotely, with staff, secondees, freelancers and agencies all working from home. Although there were challenges, the DEC’s digital infrastructure came into its own, with Zoom conference calls already familiar and online systems and workflows the

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

06 | Strategic Report | Goal 3 |

| Goal 3 | Strategic Report | 07

GOAL 3: INCREASE THE IMPACT OF THE FUNDS WE RAISE FOR THE PEOPLE AND COMMUNITIES AFFECTED BY CRISES

CORONAVIRUS APPEAL

Since late 2019, coronavirus has affected the lives of millions of people around the world. Fragile states that have already experienced decades of conflict, violence, drought and flooding have been impacted the worst. In these places, millions of displaced and otherwise vulnerable people already had little access to adequate healthcare, water, food and ways to earn a living. Not only did this leave people there extremely vulnerable to Covid-19 itself, but the secondary effects of the pandemic – successive lockdowns and global recession that have crippled economies, inflated food prices and increased unemployment – have pushed vulnerable people closer to the edge.

coming directly to the DEC, including £10 million matched by the UK Government. All 14 member charities are taking part in the response.

During the first six months of the response (July 2020 - January 2021), DEC member charities and their partners provided assistance to thousands of affected families with £11 million of DEC funds. DEC funds were used to run 43 projects across the seven places, involving all 14 member charities and 27 local partners. Projects included improving water and sanitation infrastructure so that vulnerable displaced families could protect themselves from the virus, protecting frontline workers with PPE and enabling affected people to buy food.

Some of the projects had overlapping goals. charities and 27 local partners. Projects For example, in DRC, 101 people were included improving water and sanitation trained to produce reusable face masks. infrastructure so that vulnerable displaced The first 30,000 were distributed free to families could protect themselves from the local families to help them stay safe, while virus, protecting frontline workers with subsequent batches were sold by the PPE and enabling affected people to buy food. mask-makers, providing them with much In the first six months of the response, needed additional income. “Before the DEC funds were used to: project I was in crisis without money,” said Kathindo Mathe, 47. “This project has • provide personal protective equipment greatly assisted me.” For a full overview to 10,000 frontline workers of the first six-months of the response, • provide 165,000 households with see the 2020 Coronavirus Appeal handwashing items Six-Month Report.

On 14 July 2020, the DEC launched its Coronavirus Appeal to protect vulnerable people living in the world’s most fragile places; DRC, Somalia, South Sudan, Yemen, Syria and Afghanistan, and the Rohingya refugee camps in Bangladesh.

In the first six months, the appeal raised more than £34 million, with £26 million

----- Start of picture text -----
© Fabeha Monir/Oxfam
----- End of picture text -----

Review of the response

Phase 1 final expenditure by country

Last year, the DEC commissioned an independent real-time review of the DEC-funded response across all seven of the fragile places that DEC funds were being spent. The review acknowledged the extremely challenging context presented to aid agencies by the pandemic, but found that by providing additional funding to activities that member charities had already begun at the outset of the pandemic, DEC funding was effective and delays were kept to a minimum. Restrictions on meeting and travel disrupted standard processes around complaints and feedback mechanisms but alternative systems and procedures were set up where possible. The review also praised the DEC’s response for staying relevant despite the uncertainty of dealing with a global pandemic and its secondary effects by maintaining strong monitoring systems and a high level of flexibility with its funding. For the full findings and recommendations, see the 2020 Coronavirus Appeal Real-Time Response Review.

----- Start of picture text -----
8% DRC
15% Somalia
14% South Sudan
14% Afghanistan
20% Rohinga response
14% Syria
15% Yemen
----- End of picture text -----

Phase 1 final expenditure by sector

----- Start of picture text -----
30% Water, sanitation & hygiene
23% Health
14% Food
12% Cash support
9% Livelihoods
6% Protection
3% Nutrition
3% Other
----- End of picture text -----

Adaptive programming

The flexibility of DEC funds was even more important than usual in this appeal, and allowed our member charities to make their programmes responsive to the changing situation and meet the emerging needs of affected populations and address the needs that communities said were most relevant.

For example, when DEC member charities discovered that a damaged septic tank at a rural hospital in Yemen was likely to cause disease transmission to nearby communities, DEC funds were redirected to rehabilitate it. Several member charities reported cost savings, for example because procurement of items such as hygiene kits was lower than originally budgeted. In Syria, such savings were used to buy additional hygiene kits and also allocated to health programming for awarenessraising billboards and psychosocial support.

----- Start of picture text -----
charities reported cost savings, for example because
procurement of items such as hygiene kits was
lower than originally budgeted. In Syria, such savings
AID DISTRIBUTION
were used to buy additional hygiene kits and also
allocated to health programming for awareness-
raising billboards and psychosocial support.
© Lewis Inman/DEC
© World Vision © Fabeha Monir/ Age International
----- End of picture text -----

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

| Goal 3 | | Closed Appeals | Strategic Report | 0908

08 | Strategic Report | Goal 3 |

CYCLONE IDAI APPEAL

----- Start of picture text -----
© Peter Caton/DEC
----- End of picture text -----

----- Start of picture text -----
© Peter Caton/DEC
----- End of picture text -----

On 21 March 2019, we launched an emergency appeal for people affected by Cyclone Idai, which had swept through Mozambique, Malawi and Zimbabwe less than a week earlier. Strong winds and widespread flooding ripped apart roads, bridges, houses, schools and health facilities and submerged vast swathes of agricultural land. Another major cyclone, Kenneth, followed Idai a few weeks later, the first time in recorded history that two strong tropical cyclones had made landfall in Mozambique in the same season. Across the three countries affected, at least 900 people were killed and around three million were left in desperate need of humanitarian assistance.

Adaptive programming: Covid-19

£1.2 million in DEC funds was repurposed to respond to the pandemic, reaching more than 75,000 people with some form of assistance. Full details of the second phase of this response, and how member charities adapted to meet people’s needs during the pandemic, will be available in the final report later this year.

A total of £43 million was raised, £30.5 million of which was donated directly to the DEC, including £4 million matched by the UK Government. The appeal is now closed, but member charities will continue to spend DEC funds up to March 2021. Thirteen member charities are taking part in the response.

In April 2020, member charities were entering the final year of the response as the coronavirus pandemic was affecting countries around the world, and pivoted their activities to help the vulnerable communities they were working with to protect themselves from the virus.

----- Start of picture text -----
© Peter Caton/DEC
----- End of picture text -----

INDONESIA TSUNAMI APPEAL

----- Start of picture text -----
© Kathleen Prior/DEC
----- End of picture text -----

On 28 September 2018, a series of powerful earthquakes struck the Indonesian island of Sulawesi. This triggered a tsunami reaching up to 18 feet in height, which struck the regional capital, Palu, and the nearby coastal settlements of Donggala and Mamuju, leaving a trail of destruction in its wake. The results were devastating: in some places, the ground turned to liquid mud, submerging whole villages. At least 4,340 people are now known to have been killed in the disaster. Tens of thousands of homes were destroyed and entire communities devastated. The disaster left 200,000 survivors in need of humanitarian assistance, around a quarter of whom were children.

Adaptive programming: Covid-19

In April 2020, member charities were entering the final six months of the second phase of the response as the coronavirus pandemic was affecting countries around the world, and pivoted their activities to help the vulnerable communities they were working with to protect themselves from the virus. £1.3 million was repurposed to adapt existing programmes in order to respond to Covid-19, with DEC member charities among the first to support the response to the pandemic. For example, when restrictions meant that older people were not able to leave their homes to get food and medicine, activities to help restart their livelihoods were paused and £24,000 ~~was reallocated~~ to directly providing food and outreach homecare for them. In addition, more than 65,000 people were reached with information on maintaining hygiene, 1,100 handwashing stations were installed, 7,800 health workers were provided with PPE such as masks, gowns, gloves and aprons, and 1,000 families received food assistance.

Covid-19 presented additional challenges

to delivering humanitarian assistance in a timely and effective manner while also keeping DEC member charities’ staff, partners and volunteers safe from infection. Staff and volunteers had to quickly adapt their workplans as well as their ways of working. Face-to-face meetings, for example for cash distributions, were kept to a minimum and conducted in the open air as

The DEC launched the Indonesia Tsunami Appeal on 4 October 2018. It raised £29.9 million, £20.3 million of which was donated directly to the DEC, including £2 million in Aid Match from the UK Government. The appeal is now closed, but our member charities will continue their DEC-funded activities up to September 2020. Thirteen member charities took part in the response.

----- Start of picture text -----
© Hariandi Hafid/British Red Cross
----- End of picture text -----

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

| Goal 4 | Closed Appeals | | Strategic Report | 1110

10 | Strategic Report | Goal 3 |

much as possible, while wearing masks and observing social distancing measures. Registration to receive cash grants switched to mobile phone rather than in person, and ATM cards were distributed according to a strict timetable so that there were never queues of people waiting. Staff sometimes brought portable handwashing stations with them, as well as hand sanitisers and masks. Some activities had to be cancelled or postponed, for example where face-to-face training was needed. Unavoidable delays to DEC-funded activities meant that some member charities were allowed to extend their programmes by three months.

Phase 2 expenditure by sector

April 2019 to September 2020

12% Water, sanitation & hygiene 33% Cash support 17% Shelter 22% Livelihoods 6% Other 5% Education 5% Protection

For a full overview of the entire DECfunded response to this disaster, see thee 2018 Indonesia Tsunami Appeal Final Report.

----- Start of picture text -----
© Fabeha Monir/Age International
----- End of picture text -----

IMPROVING OUR WAYS OF WORKING

Core Humanitarian Standard

In 2015, the DEC adopted the Core Humanitarian Standard on Quality and Accountability as the key quality standard for DEC member charities and how they deliver their programmes.

The CHS Alliance Verification Scheme has three categories – self assessment, independent verification, and certification. As of February 2021, DEC members fall into the three categories as shown in the diagram.

CHS CERTIFICATION

VALIDATED CHS SELF-ASSESSMENT

CHS INDEPENDENT VERIFICATION

Provides organisations with an independent, external quality assurance assessment of capacity and performance against the CHS.

A learning exercise. It is completely internally, incorporating the views of crisis-affected people, staff and partners, and helps an organisation gain an understanding of their capacity and performance against the CHS.

Provides organisations with an independent, external quality assurance assessment and, depending on the results of this assessment, certification of compliance against the CHS.

CAFOD, Christian Aid, Concern Worldwide, Islamic Relief Worldwide, Oxfam and Tearfund are certified

ActionAid Group, British Red Cross, HelpAge International, Care International Confederation, Plan International and Save the Children are verified

Action Against Hunger UK and World Vision have undertaken self-assessments only

GOAL 4: PRESERVE AND STRENGTHEN THE PUBLIC’S WILLINGNESS TO DONATE TO HUMANITARIAN CRISES OVERSEAS

This year, the DEC moved forward with several projects and new initiatives to ensure our messaging supports this goal and that information about our humanitarian appeals and the difference donations have made is more readily available to the public. For the first time, the DEC launched an appeal for a disaster that was also affecting people here in the UK, simultaneously crowding out room to think about what was happening overseas and helping people to empathise with people facing the same problems but without the safety net of the NHS or furlough scheme.

was designed to inform people about the problems compounded by the pandemic in fragile states, but also to inspire people with the message that DEC member charities acting together have the expertise needed to tackle these problems.

During the launch of the Coronavirus Appeal, we held focus group sessions to compliment the audience insight project carried out in the previous year and test various messaging and content in real-time to ensure it landed well with audiences. These sessions played a key role in shaping marketing materials and messaging for the appeal.

featuring previous appeals to give topline achievements and highlight case studies of people who have been helped using DEC funds.

In lieu of in-person events, the DEC set up a number of webinars for corporate and high-value donors featuring panels of aid workers and experts giving insights into the impact the pandemic and its secondary effects were having on fragile states. These virtual events were well-attended and received good feedback from guests.

Arranging a call between Syrian aid workers and His Royal Highness The Duke of Cambridge allowed us not only to have local aid workers themselves explain the problems they faced and how DEC funds were helping them, but also to reach new audiences with this message, as the call was reported in outlets that the DEC might otherwise find difficult to reach.

The DEC also completed a major overhaul of our website. While the main aim was to better communicate information during an appeal launch, we also gave careful consideration to effectively demonstrating the impact our appeals have, both at scale and on an individual level. Modules were developed to allow pages

As part of our second push of the Coronavirus Appeal in March, we commissioned a one-minute film for TV and social media advertising. The brief

----- Start of picture text -----
© World Vision
© Lewis Inman/DEC
----- End of picture text -----

----- Start of picture text -----
© Concern Worldwide
----- End of picture text -----

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

| Structure, Governance and Management | Closed Appeals | | Strategic Report | 1310

12 | Strategic Report | Structure, Governance and Management |

STRUCTURE, GOVERNANCE AND MANAGEMENT

The DEC has been operating since 1963 and was registered as an independent charity on 4 June 1997. It is incorporated as a company limited by guarantee: we have no share capital and the guarantee is limited to £1 for each of our 14 members. Our governing document is the Memorandum and Articles of Association of the company.

registered with the Fundraising Regulator, and adhering to its Code of Fundraising Practice and Fundraising Promise. We have a donations acceptance policy that deals with ethical concerns, particularly for contributions from the private sector. We are careful to monitor our fundraising activities and provide supporters with help and information via our website, including Live Chat, by email, phone or post. We have a complaints policy available on our website, and record and respond to all complaints.

Financial review

Total income received directly by the DEC including gift aid and bank interest for the year amounted to £33.1 million (2020: £9.9 million). Of this, the DEC Coronavirus Appeal (launched July 2020) raised £31.1 million and the DEC Emergency Fund raised £0.2 million. All values include gift aid.

The DEC Secretariat has core staff of 21 people (as at 31 March 2021) who run DEC appeals and oversee the use of DEC funds. The DEC plays a large role in fundraising and communications but also in oversight and accountability in how money raised is spent, and in promoting standards of good practice among members.

Additional income in the year of £1.6 million (2020: £0.7 million) relates to legacy income, other DEC appeals launched in previous years, donations from member charities and general unrestricted income. .

In the 2020-21 financial year, the DEC received 2,500 queries from the public, including 52 complaints. Feedback shows that 91% of those who contacted us were satisfied with our response and follow-up, including 90% in relation to dealing with complaints.

Total expenditure for the year amounted to £24.7 million (2020: £29.6 million) including £20.3 million (2020: £26.6 million) of appeal funds committed to DEC members for use towards humanitarian programmes, £4.0 million (2020: £2.3 million) in costs of raising funds, and £0.4 million (2020: £0.7 million) of other costs. The DEC’s core costs are covered mainly by contributions from our members, with appeal-specific costs charged to the related appeal.

Fundraising

The DEC undertakes active fundraising only in the context of DEC appeals – usually only for a period of six months from the date of the public launch of an appeal.

The Board has adopted the Charity Governance Code and engages independent consultants to carry out a tri-annual review of performance against the code. The last review was carried out in 2019, and actions arising from the review are discussed at Board level, actions agreed and progress reported to the Board periodically. The Charity Governance Code was updated in 2020 to strengthen the existing diversity and integrity principles to reflect evolving best practice. The DEC will assess compliance against the revised Code at the next tri-annual review in 2022.

Following the decision to launch an appeal for a particular crisis, we engage energetically with the public and our supporters to draw attention to the humanitarian need and raise money, using a wide range of fundraising approaches to maximise donations to the appeal.

Net unrestricted income for the year totaled £3.6 million (2020: £2.0 million). After transfers to restricted appeal funds of gift aid income totaling £2.0 million and a transfer from historic appeal funds of £0.6 million, an overall net movement in unrestricted funds of £1.0 million is

This includes broadcast, print and online advertising, direct marketing activities, engaging with local community and faith groups, and working with corporate partners and philanthropists. Our fundraising activity is carried out by our core staff team and the DEC does not employ professional telephone or street fundraisers or commercial participators to carry out our fundraising activities.

----- Start of picture text -----
© Peter Caton/Action Against Hunger
----- End of picture text -----

The DEC complies with all relevant statutory regulations, including the Charities Act 2011, the Data Protection Act 2018 and the Privacy and Electronic Communications Regulations 2003. We always seek to act in ways that are legal, open, honest and respectful – striving for best practice in fundraising by complying with a range of codes of practice, including being

reported (2020: £0.3 million). This net result brings carried forward unrestricted reserves to £2.0m, which reflected 10.5 months of operating expenditure, in light of building our reserves to 12 months projected operating expenditure by 31 March 2022.

The core running costs of the charity are funded partly through contributions by the membership, and partly from recharges of overheads to appeal funds. Recharges are governed by a cost recovery policy, which ensures that recharges are kept within boundaries to protect appeal funds. Average cost recovery over the last 3 appeals is 3.4% of total appeal funds raised.

Residual funds held against appeals where activity (fundraising and programmatic) has ended are transferred to the latest appeal. Details of these transfers can be found in Note 13 to the accounts on page 30.

Board of Trustees

The Board of Trustees are directors of the company and, as shown on page 34, comprise six independent trustees (including the Chair of Trustees, Vice Chair and Honorary Treasurer) alongside the chief executives of each of the DEC’s member charities. Trustees have no financial beneficial interest in the charity but do have voting rights. Trustees receive no remuneration or any other emoluments from the DEC. Biographies of trustees are shown on the DEC’s website.

The Board meets three times each year, in addition trustees attend an annual awayday to review the DEC’s strategy, performance and plans. The Board has established committees – Membership and Accountability; Audit, Finance and Risk; and Remuneration – that operate under agreed terms of reference, oversee key aspects of DEC activity and report back to the full Board. These committees are chaired by independent trustees and include member trustees also, as shown on page 34.

Independent trustees, including the Chair and Honorary Treasurer, hold office for a term of three years; they may then be reappointed for a second term, with provision to extend this second term by up

to 12 months, and then retire from office. Member trustees hold office for a term that is related to their roles as chief executive of a DEC member charity.

The appointment of new independent trustees is overseen by the Board with support from the Membership and Accountability Committee, following an analysis of skills, targeted advertising and an interview process. We also take account of diversity. The Chair is nominated by the independent trustees and appointed by majority agreement of the member trustees.

Trustee attendance

Trustees attending all Board meetings in 2020: 17 (out of 21 trustees)

Trustees attending 2 out of 3 Board meetings: 3

Trustees attending 0-1 Board meetings: 1

Trustees attending all MAC meetings in 2020: 8 (out of 12 trustees)

Trustees attending 2-3 out of 4 MAC meetings: 4

Trustees attending 0-1 MAC meetings: 0 Trustees attending all AFR meetings in 2020: 5 (out of 7 trustees)

Trustees attending 2-3 out of 4 AFR meetings: 2

Trustees attending 0-1 AFR meetings: 0

Trustee induction and conduct

Trustees sign consent and eligibility forms and complete a declaration of interests that is reviewed annually. New trustees are given a detailed induction by the Chair of Trustees, the DEC’s Chief Executive and staff. A trustee handbook is also provided to new trustees, including relevant policies, procedures, governance information and role descriptions. This is revisited after one year to support each trustee’s ongoing learning and development with the DEC.

Management

Day-to-day management of the charity is delegated to the Chief Executive, Saleh Saeed, who leads the staff team. Performance and risk are monitored against strategic objectives. The staff head count is currently 19 full-time

positions and 2 part-time position. Alongside the staff team, the DEC benefits from the help of regular volunteers and employs temporary staff or uses contractors where these are required to help with specific projects or the increased workload linked to a DEC appeal.

Remuneration

The Remuneration Committee subcommittee of the Board of Trustees is responsible for reviewing DEC Secretariat remuneration policy and practice on an annual basis for recommendation to the full Board. The Committee specifically sets the remuneration of the Chief Executive and the DEC’s reward policy that provides for an annual cost of living increase in line with reported inflation rates, with a pay benchmarking exercise carried out every three years to ensure that remuneration levels remain competitive in line with averages for the wider charity sector.

Risk management

The DEC has a robust framework for identifying, reporting and managing risks and is accountable for the effective use of the charitable funds raised in our name. The DEC is not operational in aid delivery, and therefore delegates the management of risks associated with delivering humanitarian programmes to member charities while maintaining oversight through an assurance system that includes independent reviews and evaluations, regular member reporting and external verification against the Core Humanitarian Standard.

----- Start of picture text -----
© Kiana Hayeri/Oxfam
----- End of picture text -----

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

14 | Strategic Report | Structure, Governance and Management |

| Structure, Governance and Management | Strategic Report | 15

The DEC has plans to develop partnerships with major digital platforms, including social media and search engines, to engage with digital influencers and to work with public broadcasters to increase their digital offering.

The DEC has adopted an approach that assesses the charity’s risk appetite in specific areas and maintains a risk register which is regularly reviewed in relation to those risks associated with our responsibilities for fundraising, stewardship and oversight, including what controls and safeguards operate to manage or mitigate risks.

programmes on the ground. To manage these risks, the DEC has an established framework of accountability and due diligence to ensure member charities have in place effective systems, processes and controls.

Key risks identified in the risk register include:

Reserves policy

The trustees have set a target of free reserves, which are those general funds which are freely available to spend on any of the charity’s purposes and exclude restricted and designated funds and fixed assets held for the charity’s own use. The target for free reserves has been set at 12 months’ core overhead costs which is currently budgeted at £2.3m for 2021/22.

The target of 12 months reflects working capital requirements and the need to fund operations between appeals, given the uncertainty of when the next appeal will occur and the reliance of cost recovery from appeals to fund ongoing activities. A range +/- 3 months on the 12-month target has been set, and any surplus funds will be transferred into the latest appeal.

----- Start of picture text -----
© Fabeha Monir/Oxfam © Ismail Taxta/DEC
----- End of picture text -----

Total free reserves are currently close to the target level as set out next:

target level as set out next:
2021
£m
Total funds
12.7
Restricted funds
(10.6)
General reserves
2.1
Fixed assets
(0.4)
Free reserves
1.7		 2020
£m
4.3
(3.2)
1.1
(0.2)
0.9

£1.7m free reserves as at March 2021 represents just under 9 months core operational costs, just below the target range of 12 months +/- 3 months. The trustees consider this level of reserves appropriate for the continuing operation of the charity.

Investment policy

Under its memorandum and articles of association, the charity has the power to make investments. The DEC needs to be in a position to enable its members to act very quickly in emergencies and therefore has a policy to balance keeping a proportion of funds in instant access and short-term deposits that can be accessed readily with considerations of high security and investment return.

Statement of trustees’ responsibilities

The trustees (who are also the directors of the DEC for the purposes of company law) are responsible for preparing the trustees’ report, including the strategic report and the financial statements in accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

● State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements

The trustees are responsible for that adequate accounting records are kept that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The strategic report includes a review of financial performance and of the charity’s reserves position. We have adequate financial resources and are well placed to manage the business risks. Our planning process, including financial projections, has taken into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure. We have a reasonable expectation that we have adequate resources to continue in operational existence for the foreseeable future.

We believe that there are no material uncertainties that call into doubt the charity’s ability to continue. The accounts have therefore been prepared on

the basis that the charity is a going concern.

Each of the persons who is a trustee at the date of approval of this report confirms that

insofar as the trustees are aware, there is no relevant audit information of which the company’s auditors are unaware, and that they have taken all the steps that 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.

Meeting and reporting on public benefit

The trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’.

The structure of the trustees’ annual report includes reporting on our strategic aims, the DEC’s activities and achievements during the year and our plans for 2021–2022. We have highlighted how our work furthers our charitable purpose and the significant benefits it brings to:

This trustees’ report, including the strategic report, was approved by the Board of Trustees on 14 July 2021 and signed on its behalf by

Sue Inglish Chair

Jane Hanson Honorary Treasurer

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

16 | Independent Auditor’s Report |

| Independent Auditor’s Report | 17

INDEPENDENT AUDITOR’S REPORT To the members of the Disasters Emergency Committee

misstatement of this other information, we are required to report that fact.

OPINION

CONCLUSIONS RELATING TO GOING CONCERN

We have audited the financial statements of Disasters Emergency Committee (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In auditing the financial statements, we We have nothing to report in this regard. have concluded that the trustees’ use of OPINION ON OTHER MATTERS the going concern basis of accounting in the preparation of the financial statements PRESCRIBED BY THE COMPANIES ACT 2006 is appropriate.

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

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 Disasters Emergency Committee’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.

In our opinion, the financial statements::

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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

OTHER INFORMATION

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If,

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report including the strategic report. 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:

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 charitable company 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.

based on the work we have performed, we conclude that there is a material

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

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

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

CAPABILITY OF THE AUDIT IN DETECTING IRREGULARITIES

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

USE OF OUR REPORT

This report is made solely to the charitable company’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 charitable company’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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Noelia Serrano (Senior statutory auditor) 20 July 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

18 | Accounts |

| Accounts | 19

Statement of Financial Activities for the year ended 31 March 2021

Balance Sheet at 31 March 2021

(incorporating an income and expenditure account)

Income from:
Donations and legacies
Charitable activities
DEC Coronavirus Appeal
DEC Emergency Fund
DEC Cyclone Idai Appeal
DEC Indonesian Tsunami Appeal
Previous DEC Appeals
Humanitarian Emergency Fund (Scotland)
Humanitarian Emergency Fund (Wales)
Cash investments
Total income
Expenditure on:
Raising funds
Charitable activities
Coronavirus response programmes
Cyclone Idai response programmes
Previous DEC programmes
Humanitarian Emergency Fund (Scotland)
Humanitarian Emergency Fund (Wales)
Lesson learning and accountability
Total expenditure
Net income for the year
Transfers between funds		 Note Unrestricted
funds
£000		 Restricted
funds
£000		 2021
Total
£000		 2020
Total
£000
1,565 551 2,116 1,056
2,000 28,567 30,567 -
8 222 230 172
6 13 19 8,742
16 - 16 (209)
- - - (39)
- 32 32 37
- 108 108 20
15 - 15 109
3,610 29,493 33,103 9,888
2 449 3,581 4,030 2,446
3 93 18,924 19,017 -
3 - 1,484 1,484 26,184
3 - (97) (97) 567
2 - 37 37 38
2 - 108 108 27
2 87 - 87 284
629 24,037 24,666 29,546
2,981 5,456 8,437 (19,658)
13 (2,031) 2,031 - -
Net movement in fund 950 7,487 8,437 (19,658)
Reconciliation of funds
Total funds brought forward
Total funds carried forward
13 1,124 3,176 4,300 23,958
13 2,074 10,663 12,737 4,300
her recognised
5 to the fnancia		 gains or losses other than those stated above.
l statements.
Note £000 2021
£000		 £000 2020
£000
Fixed assets
Tangible fxed assets 7 369 248
369 248
Current assets
Debtors 8 4,095 158
Cash at bank and in hand 9 15,285 14,805
19,380 14,963
Liabilities
Creditors: amounts due within one year 10 (7,012) (10,911)
Net current assets 12,368 4,052
Total assets less current liabilities 12,737 4,300
Net assets 12 12,737 4,300
Funds
Unrestricted funds
General reserves 13 2,074 1,124
Restricted funds 13 10,663 3,176
Total funds
Approved by the trustees on 14 July 2021 and signed on t		 heir behalf by 12,737 4,300

Sue Inglish Jane Hanson Chair Honorary Treasurer Disasters Emergency Committee Company Number 03356526

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Comparable information for the year ended 31 March 2020 is shown in note 15 to the financial statements. Movements in funds are disclosed in note 13 to the financial statements.

Disasters Emergency Committee – Year to 31 March 2021

20 | Accounts |

| Accounts | 21

Statement of Cash Flows for the year ended 31 March 2021

Note 2021
£000		 2020
£000
Cash fows from operating activities
Net cash provided by / (used in) operating activities 14 662 (16,655)
Cash fows from investing activities
Interest from investments 15 109
Purchase of fxed assets (197) (187)
Net sale of current asset investments - 264
Net cash (used in) / provided by investing activities (182) 186
Change in cash and cash equivalents in the year 480 (16,469)
Cash and cash equivalents at the beginning of the year 14,805 31,274
Cash and cash equivalents at the end of the year 15,285 14,805
At 1 April
2020
£000		 Cash
fows
£000		 Other non-cash
changes
£000		 At 31 March
2021
£000
Analysis of cash and cash equivalents and of net debt
Cash at bank and in hand 14,805 480 - 15,285
Total cash and cash equivalents 14,805
480		 480 - 15,285

Notes to the financial statements for the year ended 31 March 2021

for each DEC appeal. Contributions from member agencies towards DEC’s appeal preparedness is included as donations and accounted for when received.

1. ACCOUNTING POLICIES

a) Basis of accounting

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) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Income from legacies is included when received from the estate or when the charity is notified by the executor that a distribution will be made. 50% of legacy income is allocated to restricted income and used to fund disaster response programmes, 50% is allocated to unrestricted income.

Interest on funds held on cash deposit is included when receivable.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

f) Donations of services

During the year the DEC has benefited from broadcasting, promotion and donations processing services received free or at discounted rates from various providers. The value of these services is not reasonably quantifiable and measurable and the cost of identifying them and assessing their value to the DEC would outweigh the benefit to users of the accounts. Therefore no value has been attributed to these services in the accounts.

b) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

c) Going concern

The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern.

In accordance with the Charities SORP (FRS 102), volunteer time is not recognised. The trustees’ annual report provides more information about their contribution.

d) Estimates

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

g) Fund accounting

Restricted funds are used for specific purposes as laid down by the donor or related to a specific DEC appeal. Expenditure which meets these criteria is charged to the fund.

e) Income

Income is recognised when the charity has entitlement to the funds, it is probable that the income will be received and that the amount can be measured reliably. Income includes associated gift aid tax reclaims.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Donations to DEC appeals are included as restricted income, used to fund the related disaster response programmes. Associated gift aid tax reclaims are included as unrestricted income and then transferred to the related restricted fund

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a

payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Costs of raising funds relate to the costs incurred by the charity in encouraging individuals and other third parties to make voluntary contributions to DEC appeals, as well as the cost of any activities with a fundraising purpose.

Expenditure on charitable activities includes the funds allocated to DEC member agencies towards the costs of delivering disaster response programmes as set out in note i) below. Expenditure is recognised when allocations are confirmed to members because it is at this time that a firm commitment is made by DEC towards the planned programmes of work by members in response to each appeal. This is two weeks following the launch of an appeal.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Basis of allocation to member agencies

Member charities are entitled to a share of the appeal income if they opt into that appeal. A formula known as the Indicator of Capacity (IOC) is used to allocate appeal funds among DEC member agencies. DEC informs the member agencies of their estimated income from an appeal after one week and commits funds towards disaster relief programmes two weeks after the appeal launch. Further allocations are made as income for specific appeals is received and as the programme is implemented.

j) Allocation of support costs

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

22 | Accounts |

| Accounts | 23

Notes to the financial statements for the year ended 31 March 2021

Computer equipment, software & web development - 3 years

generating funds. Support costs and other core costs are recharged to the restricted fund and will fluctuate annually based on appeal activitiy during the year. The basis

they have been allocated to activities on a basis consistent with use of resources.

Fundraising expenditure has been shown separately. These costs are incurred in seeking donations and voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

of the cost allocation has been explained in the notes to the accounts.

m) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash deposits with maturities above 3 months are shown as current asset investments.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

Governance costs are the costs associated with the governance arrangements of the charity which relate to the general running of the charity as opposed to those costs associated with fundraising or charitable activity. Included within this category are costs associated with the strategic as opposed to day to day management of the charity’s activities.

l) Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Assets, or groups of assets purchased within a single project, costing £1,000 and above are capitalised. Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

n) Pension contributions

The charity has a stakeholder pension scheme and makes defined contributions based on salary. Pension contributions are charged to the statement of financial activities as incurred and attributed to unrestricted and restricted funds in line with other Secretariat staffing costs.

Support costs which include costs associated with general management, financial management and accounting, information technology, human resources and premises are allocated across the categories of charitable expenditure, governance costs and the costs of

Leasehold improvements - 5 years or term of lease if shorter Furniture, fittings and office equipment

----- Start of picture text -----
© World Vision
----- End of picture text -----

----- Start of picture text -----
© Karam Almasri/DEC
----- End of picture text -----

----- Start of picture text -----
© Scovia Faida Charles/World Vision
----- End of picture text -----

Notes to the financial statements for the year ended 31 March 2021

2. TOTAL RESOURCES EXPENDED

a) Current year
a) Current year
Member
allocations
£000		 Other direct
costs
£000		 Allocated
support costs
£000		 2021
Total
£000		 2020
Total
£000
Cost of generating voluntary income - 3,796 234 4,030 2,446
Disaster response programmes 20,311 - - 20,311 26,544
Humanitarian Emergency Fund (Scotland) - 37 - 37 38
Humanitarian Emergency Fund (Wales) - 108 - 108 27
Lesson learning and accountability - - 87 87 283
Governance costs - 49 44 93 208
Total resources expended 20,311
3,990
365		 24,666
29,546

b) Prior year

b)Prior year
Member
allocations
£000		 Other direct
costs
£000		 Allocated
support costs
£000

2020
Total
£000
Cost of generating voluntary income - 1,994 452 2,446
Disaster response programmes 26,544 - - 26,544
Humanitarian Emergency Fund (Scotland) - 38 - 38
Humanitarian Emergency Fund (Wales) - 27 - 27
Lesson learning and accountability - 130 153 283
Governance costs - 129 79 208
Total resources expended 26544 2318 684 29546
-
-
153
79
684		 38
27
283
208
29,546		 38
27
283
208
29,546
2021
£000		 2020
£000
Support costs are allocated on the following basis:
Nature of cost
Allocation basis
Staff
Estimate of where staff spend their time		 154 174
Premises, utilities and other overheads
Actual and estimated usage		 211 510
Total allocated support costs 365 684
er the cost and beneft of

Allocated support costs: cost allocation includes an element of judgement and the charity has had to consider the cost and benefit of detailed calculations and record keeping. This allocation includes support costs where they are attributable and are a best estimate of the costs that have been so allocated. The various categories of support costs are described above (see note 1j).

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

24 | Accounts |

| Accounts | 25

Notes to the financial statements for the year ended 31 March 2021

3. DISASTER RESPONSE PROGRAMMES

a) Current year

Appeal funds allocated, committed to, or returned by, participating member charities are as follows:

Appeal funds allocated, c ommitted to, or returned by, particip ting member charities are ting member charities are s follows:
YCA
£000		 EACA
£000		 EAPFM
£000		 ITEA
£000		 CIA
£000		 CVA
£000		 2021
Total
£000		 2020
Total
£000
Action Against Hunger - - - - - 570 570 (68)
ActionAid - - - 28 91 914 1,033 1,368
Age International - - - (23) 54 570 601 830
British Red Cross - - - - 238 2,384 2,622 3,655
CAFOD - - - (16) 74 791 849 1,138
CARE International UK - (4) - (4) 75 678 745 1,148
Christian Aid - - - (22) 122 1,227 1,327 1,874
Concern Worldwide UK - - - - (1) 570 569 794
Islamic Relief (8) - - - 73 720 785 1,118
Oxfam - - - - 312 3,540 3,852 4,814
Plan International UK - - - - 90 935 1,025 1,382
Save the Children - (1) (3) - 164 3,800 3,960 5,332
Tearfund - - (44) - 98 1,192 1,246 1,497
World Vision UK - - - - 94 1,033 1,127 1,662
Total (8) (5) (47) (37) 1,484 18,924 20,311 26,544

Notes to the financial statements for the year ended 31 March 2021

3. DISASTER RESPONSE PROGRAMMES (continued)

b) Prior year

Appeal funds allocated, committed to, or returned by, participating member charities are as follows:

ITEA CIA 2020
£000 £000 Total
£000
Action Against Hunger (68) - (68)
ActionAid - 1,368 1,368
Age International 17 813 830
British Red Cross 74 3,581 3,655
CAFOD 23 1,115 1,138
CARE International UK 23 1,125 1,148
Christian Aid 38 1,836 1,874
Concern Worldwide UK - 794 794
Islamic Relief 23 1,095 1,118
Oxfam 131 4,683 4,814
Plan International UK 28 1,354 1,382
Save the Children 112 5,220 5,332
Tearfund 30 1,467 1,497
World Vision UK 33 1,629 1,662
Total 464 26,080 26,544

Negative balance represents funds granted to member agency in prior year returned in current year. Key CVA: Coronavirus Appeal EAPFM: People Fleeing Myanmar Appeal CIA: Cyclone Idai Appeal EACA: East Africa Crisis Appeal ITEA: Indonesia Tsunami Earthquake Appeal YCA: Yemen Crisis Appeal

4. ANALYSIS OF STAFF COSTS AND THE COST OF KEY MANAGEMENT PERSONNEL

a) Staff costs were as follows:

2021 2020
£000 £000
Salaries and wages 974 959
National insurance 101 100
Contribution to defned contribution pension schemes 110 117
Temporary and agency staff 190 83
Total 1,375 1,259

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

26 | Accounts |

| Accounts | 27

Notes to the financial statements for the year ended 31 March 2021
Notes to the fnancial statements for the year ended 31 March 2021
4. ANALYSIS OF STAFF COSTS AND THE COST OF KEY MANAGEMENT PERSONNEL (continued)
b) Employees whose emoluments were equal to or greater than £60,000 per annum
2021 2020

No.
No.
£100,001 - £110,000 1 1
£70,001 - £80,000 1 -
£60,001 - £70,000 3 2

The highest paid employee is the Chief Executive whose emoluments in the year include a salary of £80,325 (2020: £80,325), an accommodation allowance of £10,506 (2020: £10,506) and pension contributions including contributions by way of employee salary exchange of £27,902 (2020: £27,902). No benefits in kind or other remuneration are paid.

Calculation to defined contribution pension schemes includes 8% employee pension contribution and contributions by employees by way of salary exchange.

The total amount of remuneration and benefits paid to the key management personnel were £441,380 (2020: £439,617).

c) The average number of employees (head count based on number of staff employed) during the year was as follows:

20: £439,617). 20: £439,617).
e year was as f
2020
2021
No.
No.
Fundraising and communications 13 13
Supporter care (temporary staff during appeals) - -
Lesson learning and evaluation 4 4
Governance 2 2
Finance and administration 3 4
22

d) The average number of employees (head count based on Full Time Equivalent of staff employed) during the year was as follows:

uring the year uring the year
2021
FTE No.		 2020
FTE No.
Fundraising and communications 12 12
Supporter care (temporary staff during appeals) - -
Lesson learning and evaluation 4 4
Governance 2 2
Finance and administration 3 4
Total 21 22

5. TRUSTEES

No trustees received emoluments in the year (2020: nil). Amounts reimbursed to Trustees for travel and other expenditure totalled £nil in the year (2020: £1,358).

Notes to the financial statements for the year ended 31 March 2021

6. NET INCOME FOR THE YEAR IS STATED AFTER CHARGING:

2021 2020
£000 £000
Depreciation charge 76 94
Operating lease rentals – premises 59 97
Auditors’ remuneration (excluding VAT)
Audit 25 24
Other services 6 6
7. TANGIBLE FIXED ASSETS
Leasehold Computer Furniture,
improvements equipment,
software and web		 fttings
and offce
development equipment Total
£000 £000 £000 £000
Cost
At the start of the year 220 187 60 467
Additions - 197 - 197
Disposals - (13) - (13)
At the end of the year 220 371 60 651
Depreciation
At the start of the year 59 144 16 219
Disposals - (13) - (13)
Charge for the year 44 20 12 76
At the end of the year 103 151 28 282
Net book value
At the end of the year 117 220 32 369
At the start of the year 161 43 44 248
8. DEBTORS
2021 2020
£000 £000
Prepayments 64 69
Gift aid receivable 2,049 60
Appeal income receivable 917 -
Legacy income receivable 1,064 25
Other debtors 1 4
4,095 158

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

28 | Accounts |

| Accounts | 29

Notes to the financial statements for the year ended 31 March 2021

9. CASH AND CURRENT ASSET INVESTMENTS

2021 2020
£000 £000
Cash at bank and in hand 15,285 14,805
15,285 14,805

The balance in cash and short term deposits represents funds raised during the Coronavirus and Cyclone Idai appeals. While these funds have very largely been committed to member agencies towards disaster response programmes, the disbursement of these fund take place over the period of those programmes.

10. CREDITORS: AMOUNTS DUE WITHIN ONE YEAR

2021 2020
£000 £000
Trade creditors 118 123
Taxation and social security costs 27 62
Due to member agencies - Disaster response programmes 6,768 10,691
Other creditors and accruals 99 35
Total 7,012 10,911

11. OPERATING LEASE COMMITMENTS

The charity’s total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

Property Property Property
2021 2020
£000 £000
Less than one year 44 59
One to fve years - 102
Total 44 161

Notes to the financial statements for the year ended 31 March 2021

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS
a) At 31 March 2021
Unrestricted Restricted Total
funds funds funds
£000 £000 £000
Tangible fxed assets 369 - 369
Net current assets 1,705 10,663 12,368
Net assets at the end of the year 2,074 10,663 12,737
Net assets at the end of the year 2,074 10,663 12,737
b) At 31 March 2020
Unrestricted Restricted Total
funds funds funds
£000 £000 £000
Tangible fxed assets 248 - 248
Net current assets 876 3,176 4,052
Net assets at the end of the year 1,124 3,176 4,300
13. STATEMENT OF FUNDS
a) For the year ended 31 March 2021
At the start Income Disaster Resources Transfers At the end
of the year response expended between of the year
programmes funds
£000 £000 £000 £000 £000 £000
Restricted funds:
DEC Coronavirus Appeal - 29,118 (18,924) (3,049) 3,421 10,566
DEC Cyclone Idai Appeal 2,354 13 (1,484) (63) (759) 61
DEC Indonesia Tsunami Appeal 429 - 37 (447) 17 36
DEC Emergency Appeal 388 222 - (1) (609) -
DEC People Fleeing Myanmar Appeal - - 47 (21) (26) -
DEC East Africa Crisis Appeal - - 5 - (5) -
DEC Yemen Crisis Appeal - - 8 - (8) -
Humanitarian Emergency Fund (Scotland)
5		 32 - (37) -
Humanitarian Emergency Fund (Wales) - 108 - (108) - -
Total restricted funds 3,176 29,493 (20,311) (3,726) 2,031 10,663
Unrestricted funds:
General reserve 1,124 3,610 - (629) (2,031) 2,074
Total unrestricted funds 1,124 3,610 - (629) (2,031) 2,074
Total funds 4,300 33,103 (20,311) (4,355) - 12,737

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

30 | Accounts |

| Accounts | 31

Notes to the financial statements for the year ended 31 March 2021

13. STATEMENT OF FUNDS
a) For the year ended 31 March 2020
At the start
of the year
£000		 Income
£000		 Disaster
response
programmes
£000		 Resources
expended
£000		 Transfers
between
funds
£000		 At the end
of the year
£000
Restricted funds:
DEC People Fleeing Myanmar Appeal 395 (2) - (61) (332) -
DEC East Africa Crisis Appeal 495 1 - (10) (486) -
DEC Yemen Crisis Appeal 283 - - (6) (277) -
DEC Nepal Earthquake Appeal 34 (34) - - - -
DEC Emergency Appeal 217 134 - (1) 38 388
DEC Indonesia Tsunami Appeal 1,145 36 (464) (43) (245) 429
DEC Cyclone Idai Appeal 19,966 7,662 (26,080) (1,365) 2,171 2,354
Humanitarian Emergency Fund (Scotland) 6 37 - (38) - 5
Humanitarian Emergency Fund (Wales) 7 20 - (27) - -
Total restricted funds 22,548 7,854 (26,544) (1,551) 869 3,176
Unrestricted funds:
General reserve 855 2,034 - (1,451) (314) 1,124
Total unrestricted funds 855 2,034 - (1,451) (314) 1,124
Expendable endowment 555 - - - (555) -
Total funds 23,958 9,888 (26,544) (3,002) - 4,300

Restricted income funds All restricted income fund balances at year end are represented by cash balances, debtors and creditors.

The DEC Coronavirus Appeal was launched on 14 July 2020 and raised £31.1m (including gift aid) in this financial year. £18.9m was committed to member agencies in the year towards disaster response programmes. At the end of the financial year, funds held against appeals where programmatic activity had ended were transferred into this fund. Funds from the DEC Cyclone Idai Appeal (£765k), DEC People Fleeing Myanmar Appeal (£26k), DEC East Africa Crisis Appeal (£5k) and DEC Yemen Crisis Appeal (£8k) were transferred. The transfer was made following established practice of moving unspent appeal funds into the next DEC appeal.

The DEC Cyclone Idai Appeal was launched on 21 March 2019 and raised £19k (including gift aid) in this financial year. £1.5m was committed to member agencies in the year towards disaster response programmes. At the end of 2020/21 financial year, an amount of £765k was transferred into the DEC Coronavirus Appeal fund, with a remaining balance of £61k at the end of the year for expected future spend.

Notes to the financial statements for the year ended 31 March 2021

13. STATEMENT OF FUNDS (continued)

On the 27 March 2018 the DEC launched a way to give to outside of our high-profile appeals. The DEC Emergency Fund is an always-on donation platform that allows people to give whether or not an appeal has been launched. The DEC will work with its member charities to identify the most effective use of the Emergency Fund, allowing us to respond quickly to natural disasters, or enabling us to reach people affected by crises which aren’t making headlines.

The fund is used to help people overcome by crises and in need of humanitarian assistance – such as food, clean water, medicine and shelter – in parts of the world where governments and other organisations cannot meet the needs of the affected population.

During the financial year, £230k (including gift aid) was received towards the DEC Emergency appeal. At the end of the 2020/21 financial year, the balance on the fund of £609k was transferred into the Coronavirus appeal fund and allocated to members as part of the Coronavirus reponse programme.

General reserve transfers Unrestricted income includes £2.0m of Gift aid income that was designated in the year towards DEC appeals. This is shown as a transfer between funds of £2.0m to the DEC Coronavirus Appeal, £6k to the DEC Cyclone Idai Appeal, £17k to the DEC Indonesia Tsunami Appeal and £8k to the DEC Emergency Fund.

Designated funds Gift aid tax recoverable on donations to the DEC appeals, although unrestricted, is designated to the relief work respectively in those crisis-affected countries for which DEC appeals are launched. Income accrued for gift aid for these appeals has already been transferred from the designated fund to the restricted fund for the DEC Coronavirus Appeal, DEC Cyclone Idai Appeal, DEC Indonesia Tsunami Appealand DEC Emergency Appeal as there is a presumption that this money will be utilised against these appeal responses.

Expendable endowment DEC received a legacy of £1.7m during the 2010/11 financial year which established an expendable endowment by a trustee declaration of trust to be spent over 10 years. During the 2019/20 financial year it was decided to fully expense this fund, given the financial situation of the charity and the ending of the endowment. Therefore in 2019/20 the outstanding funds of £555k were transferred into general reserves.

  1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES
2021
£000		 2020
£000
Net income for the reporting period
(as per the statement of fnancial activities)		 8,437 (19,658)
Depreciation charges 76 94
Interest from current asset investments (15) (109)
(Increase)/decrease in debtors (3,937) 12,764
Increase/(decrease) in creditors (3,899) (9,746)
Net cash provided by/(used in) operating activities 662 (16,655)

The DEC Indonesia Tsunami Appeal was launched on 4 October 2018. At the end of 2020/21 financial year, a remaining balance of £36k was held for expected future spend.

The DEC People Fleeing Myanmar Appeal was launched on 4 October 2017. At the end of the 2020/21 financial year, the balance on the fund of £26k was transferred into the DEC Coronavirus Appeal fund.

The DEC East Africa Crisis Appeal was launched on 15 March 2017. At the end of the 2020/21 financial year, the balance of funds of £5k was transferred into the DEC Coronavirus Appeal fund.

The DEC Yemen Crisis Appeal was launched on 13 December 2016 and concluded programmatic activity at the end of 2018. At the end of the 2020/21 financial year, the balance on the appeal of £8k was transferred into the DEC Coronavirus Appeal fund.

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

32 | Accounts |

| Accounts | 33

Notes to the financial statements for the year ended 31 March 2021

15. STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

For the year ended 31 March 2020
Income from:
Donations and legacies
Charitable activities
DEC People Fleeing Myanmar Appeal
DEC East Africa Crisis Appeal
DEC Yemen Crisis Appeal
DEC Nepal Earthquake Appeal
DEC Indonesian Tsunami Appeal
DEC Cyclone Idai
DEC Emergency Fund
Humanitarian Emergency Fund (Scotland)
Humanitarian Emergency Fund (Wales)
Cash investments
Total income
Expenditure on:
Raising funds
Charitable activities
Indonesian Tsunami response programmes
Cyclone Idai response programmes
Humanitarian Emergency Fund (Scotland)
Humanitarian Emergency Fund (Wales)
Lesson learning and accountability
Total expenditure
Net income for the year
Transfers between funds
Note Unrestricted
funds
£000		 Endowment
funds
£000		 Restricted
funds
£000		 2020
Total
£000
1,056 - - 1,056
- - (2) (2)
- - 1 1
(4) - - (4)
- - (34) (34)
(245) - 36 (209)
1,080 - 7,662 8,742
38 - 134 172
- - 37 37
- - 20 20
109 - - 109
2,034 - 7,854 9,888
2 1,053 - 1,393 2,446
3 103 - 464 567
104 - 26,080 26,184
- - 38 38
- - 27 27
191 - 93 284
1,451 - 28,095 29,546
-
583 - (20,241) (19,658)
14 (314) (555) 869
Net movement in funds 269 (555) (19,372) (19,658)
Reconciliation of funds
Total funds brought forward
Total funds carried forward
14 855 555 22,548 23,958
14 1,124 - 3,176 4,300

Notes to the financial statements for the year ended 31 March 2021

16. RELATED PARTY TRANSACTIONS

The charity trustees disclosed on page 34 include executives of all member agencies. The material transactions are disclosed in note 3. The member agencies made donations of £1,000k (2020: £1,000k) in the year to the charity. In addition, £88,000 (2020: £22,000) was collected in the year by member charities on behalf of the charity. Being £7,000 (2020: £22,000) Cyclone Idai Appeal and £81,000 (2020: £nil) Coronavirus Appeal.

The Humanitarian Memorial Appeal (HMA) is an initiative to establish a lasting memorial to humanitarian workers, including those killed or injured in the course of helping others. HMA is an unconstituted body run by a steering group comprising 11 individuals, including DEC’s CEO, Saleh Saeed. DEC is supporting HMA with the provision of a bank account and during the financial year the bank balance stood at £364k (2020: £364k). Under the terms of the agreement with HMA, DEC has no responsibility for the management and control of HMA. The activities of HMA are not reflected in these accounts.

17. TAXATION

The Disasters Emergency Committee is a registered charity and as such is potentially exempt from taxation of its income and gains to the extent that they fall within the charity exemptions in the Corporation Taxes Act 2010 or section 256 Taxation of Chargeable Gains Act 1992. No tax charge has arisen in the year.

18. POST BALANCE SHEET EVENT

On 5th July 2021, the lease held in relation to DEC’s headquarters at Tavis House, 1-6 Tavistock Square, London (as reflected in Note 11) was surrendered early with a view to the DEC leaving the building before 31st December 2021. Fixed assets relating to leasehold improvements will be disposed of on moving property, with no material loss expected.

Disasters Emergency Committee – Year to 31 March 2021

34 | Board of Trustees |

| DEC Secretariat | 35

BOARD OF TRUSTEES

BOARD OF TRUSTEES

ROLES OF THE BOARD COMMITTEES

INDEPENDENT TRUSTEES

Membership and Accountability Committee – Responsible for developing accountability policy and monitoring member agencies and DEC performance against it, and overseeing DEC activity to promote learning and accountability. The committee is also responsible for ensuring our membership criteria are appropriate; making decisions on action with nonperforming members and recruitment of independent trustees.

Sue Inglish Chair of Trustees, Independent Trustee

Andy Green, CBE Vice Chair, Independent Trustee

Jane Hanson Honorary Treasurer, Independent Trustee

Peter Barron (appointed 24/03/2021) Independent Trustee

Chair: Andy Green

Members 2021: Mike Adamson, Peter Barron, Rose Caldwell, Jean-Michel Grand, Jane Hanson, Nigel Harris, Sue Inglish, Chris Roles, Charles Stewart-Smith, Richard Tait

Baroness Helene Hayman (resigned 15/07/2020) Independent Trustee

Tanya Steele (appointed 15/07/2020) Independent Trustee

Audit, Finance and Risk Committee – Responsible for reviewing draft financial statements and considering the external auditor’s management letter. The committee is also responsible for advising trustees on the appointment of external auditors; reviewing external audit plans; reviewing the effectiveness of the internal control and risk management systems and monitoring the implementation of audit recommendations.

Charles Stewart-Smith Independent Trustee

Richard Tait, CBE (resigned 24/03/2021) Independent Trustee

Chair: Jane Hanson

Members 2021: John Good, Andy Green, Naser Haghamed, Danny Harvey, Tufail Hussain, Laurie Lee, Girish Menon, Amanda Khozi Mukwashi, Kevin Watkins

Remuneration Committee –

Responsible for reviewing DEC remuneration policy and practice on an annual basis for recommendation to the full Board.

MEMBER TRUSTEES

Jean-Michel Grand Action Against Hunger UK – Executive Director

Girish Menon

ActionAid UK – Chief Executive (resigned 15/12/2020)

John Good ActionAid UK – Interim Chief Executive (appointed 16/12/2020, resigned 17/05/2021)

Frances Longley ActionAid UK – Chief Executive (appointed 17/05/2021)

Chris Roles

Age International – Director

Mike Adamson British Red Cross – Chief Executive

Christine Allen Dench CAFOD – Director

Laurie Lee CARE International UK – Chief Executive

Amanda Khozi Mukwashi Christian Aid – Chief Executive

Danny Harvey Concern Worldwide (UK) – Executive Director

Naser Haghamed

Islamic Relief Worldwide – Chief Executive (resigned 31/01/2021)

Tufail Hussain

Islamic Relief Worldwide – Interim Chief Executive (appointed 01/02/2021, resigned 17/05/2021)

Waseem Ahmad

Islamic Relief Worldwide – Chief Executive (appointed 17/05/2021)

Dr Danny Sriskandarajah Oxfam GB - Chief Executive

DEC SECRETARIAT

IN ADDITION TO KEY

KEY MANAGEMENT

MANAGEMENT, STAFF WHO SERVED DURING THE YEAR

Saleh Saeed

Sonja Ashbury, Adam Bailey, Katy Bobin, Priya Changela, Hayley Collins, Barney Guiton, Ash Hiden, Sarah Maynard, Hannah McCarthy, Emily McDonnellThomas, Huw Owen, Sarah Sansom, Adeola Soyege, Eamon Sutherland, Bethan Sweeting, Abdul-Malik Tarafdar, Pete Teverson, Owen Thomas, Melissa Varney, Adrian Walker, Casia Wiliam.

Chief Executive

Nicola Peckett Director of Communications

Nick Waring Director of Finance and Resources

Simon Beresford Director of Fundraising and Marketing

Madara Hettiarachchi

Director of Programmes and Accountability

VOLUNTEERS AND OTHER SUPPORT

We were also greatly assisted by a number of volunteers both during and outside of our appeals to whom we are extremely grateful. We are grateful for all the support of our Rapid Response Network, some of whom provide services either free or at reduced costs. During the year Sidley Austin LLP provided pro-bono legal support which has been appreciated and beneficial to the DEC.

On behalf of the Trustees and members, the Chair would like to thank the executive team and staff for all the excellent work and their achievements and dedication shown during the year.

REGISTERED OFFICE

1-6 Tavistock Square London WC1H 9NA

AUDITORS

Sayer Vincent Invicta House 108–114 Golden Lane London EC1Y 0TL

BANKERS

Barclays 1 Churchill Place London E14 5HP

Cazenove Capital Management, 12 Moorgate London EC2R 6DA

SOLICITORS

Bates Wells & Braithwaite London LLP 10 Queen Street Place London EC4R 1BE

Sidley Austin LLP Woolgate Exchange 25 Basinghall Street London EC2V 5HA

Rose Caldwell

Chair: Andy Green Members 2021: Rose Caldwell, Jane Hanson, Sue Inglish, Chris Roles

Plan International UK – Chief Executive

Kevin Watkins

Save the Children UK – Chief Executive

Nigel Harris

Tearfund – Chief Executive

Mark Sheard

World Vision UK – Chief Executive

Disasters Emergency Committee – Year to 31 March 2021

Disasters Emergency Committee – Year to 31 March 2021

DISASTERS EMERGENCY COMMITTEE

Tavis House Tavistock Square London WC1H 9NA Tel: 020 7387 0200 www.dec.org.uk Registered Charity No. 1062638 Company no. 03356526