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2023-12-31-accounts

Adventist Development & Relief Agency - UK

Trustees’ Report and Financial Statements Year ended 31 December 2023

Charity Numbers Scotland: SCO37726 England and Wales: 1074937

Adventist Development and Relief Agency - UK

Trustees’ Report Year Ended 31st December 2023

Reference and Adminlstrative Details:

Trustees:

Eglan Brooks (Chair) John Surridge Andrew Baildam Stephen Logan Jennifer Phillips Snowdon Reid Helen Rodd Tristan Simmons Gordon James Saggers Wederly Aguiar

General Secretary: Bert R Smit, Chief Executive Officer (Resigned 31 December 2023) Helia Mateus, Interim Chief Executive Officer (Appointed 1 December 2023)

Bankers:

HSBC Bank plc, 73 High Street, Watford, WD1 20S

Solicitors:

Anthony Collins LLP, 134 Edmund Street, Birmingham, BS 2ES

Auditors:

Moore Kingston Smith LLP, 4 Victoria Square, St Albans, AL1 3TF

Registered Office: British Union Conference, Stanborough Park, Watford, WD25 952

Registered Charity Numbers: England and Wales: 1074937 Scotland: $C037726

Legal Statement We present this report and financial statements of the charity for the year ended 31 December 2023 which have been audited by Moore Kingston Smith LLP. The Charity also operates and is identified under the acronym ADRA-UK.

The financial statements have been prepared in accordance with the accounting policies set outin Note 1 to the accounts and comply with the Charity's trust deed, the Charities Act 2011 and 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.

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Adventist Development and Relief Agency - UK

Trustees’ Report Year Ended 31st December 2023

a. Constitution The Charity was established by Trust Deed dated 24 November 1998 (updated in 2001 and 2008). The principal object of the Charity is to apply financial, material, and technical resources toward:

a.The relief of poverty, sickness and distress of those in need, resulting from the effects of war, famine or any other natural or man-made disaster anywhere in the world.

b.Addressing the long-term effects of poverty.

c.The education of the public concerning the causes, effects and means of alleviation of poverty and distress,

There has been no change in objectives since the last report.

b. Method of appointment and election of trustees The management of the Charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

c. Organisational structure and decision making The Charity is governed by its Board of Trustees. It is part of the internatianal network of offices of the Adventist Development and Relief Agency— International and works in co-operation with other offices in the network in implementing approved projects.

d. Risk management The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks

Statement of Financial Activities (SOFA)

The SOFA shows a surplus of £179,602 (2022: Surplus of £209,714). This was mainly due to unbudgeted legacy income and lower project expenses.

Income Donated income is made up of general donations, donations received by the churches, legacies and the Appeal donations, The Charity’s main donor base consists of members of the Seventh-Day Adventist Church, Donated income decreased by 9% in comparison to 2022, which was primarily related to the Turkey/Syria (2023) against Ukraine (2022) appeals. Also, in 2021/2 the effects of the pandemic hampered normal fundraising activities. The Charity is grateful to its donors for their continued giving, as these funds go a long way towards helping those in need in the countries we operate.

Our main projects include: * the European Union (EU) funded Sri Lanka ‘Assisting Communities in Creating Environmental and Nutritional Development! (ACCEND) which was completed in 2022, and for which the final settlement EU is still outstanding; ° the EU funded Sri Lanka ‘Rural & Estate Communities in Creating Environmental & Nutritional Development’ (RECCEND) projects which was launched in 2022; « the UK Foreign, Commonwealth and Development Office (FCDO) funded ‘Girls Education South Sudan’ GESS project in South Sudan which is on-going;

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Adventist Development and Relief Agency - UK

Trustees’ Report Year Ended 31st December 2023

We are also contract named partners in two EU projects in Myanmar and Thailand where we provide cofinancing, financial and programmatic monitoring support. In addition, we supported small projects in Ghana, Nepal and Mauritania.

The major emergencies in 2023 surrounded the earthquake in Turkey and Syria, as well as in Morocco later in the year. We raised just under £135,000 towards humanitarian needs with our teams working on the ground in Syria. In addition, just over £20,000 was raised for the humanitarian needs in Morocco. We also continued to support Ukraine, and assisted emergencies in Chad, Sudan, Somalia and Malawi.

Expenditure

Restricted expenditure on charitable activities, which consists of project costs funded by FCDO, EU and the JOA, an increase in comparison to 2022. This was largely due to the full year’s financial activity of the JOA projects in 2023, but also the conclusion of the Sri Lanka ACCEND project.

As part of project grant conditions, ADRA is often required to contribute towards funding a proportion of the project costs, i.e., match funding. In addition to this, ADRA-UK finances small projects directly. The match funding and the small project funding thus constitute the unrestricted expenditure on charitable activities. In 2023, the unrestricted charitable expenditure was about the same as 2022, reflecting the support to the emergency appeals in 2022 and 2023.

In 2023, the charity did engaged in more fundraising activities thereby resulting in higher levels of expenditure on raising funds. In particular the door to door fundraising has now been discontinued since the pandemic.

Balance Sheet

The amount of Cash held in the Bank decreased by £112,540 largely due to timing of the projects’ income and expenditure. An increase in Debtors and decrease in Creditors is reflected in the Balance Sheet as a result of the advances on projects to ADRA overseas implementing offices (debtors) and from donors (liabilities) on the projects.

ADRA-UK also advanced funds to partnering ADRA offices to facilitate project implementation. Funds that were unused by these offices are recognised as Debtors. The Debtors was mainly driven by the advances to South Sudan, Sri Lanka, Nepal and Zambia projects.

Principal Funding

ADRA-UK’s success is substantially dependent on winning projects supported by institutional donors (EU, the FCDO, Jersey Overseas Aid, UN agencies, Shrimad Rajchandra Mission Dharampur (UK)(£11,628)), and on its Appeals and Campaigns. The Charity is also supported through donations and legacies by members of the Seventh-day Adventist Church.

Material Investments Policy

ADRA-UK seeks to respond to emergent needs and thus maintains its reserves in deposit funds or Money Market interest-bearing accounts. It has also been the recipient of investment equities and bonds, which have been retained.

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Adventist Development and Relief Agency - UK Trustees’ Report Year Ended 31st December 2023

Reserves Policy

The Charity’s Reserves are separated into three main categories (See Statement of Changes in Fund Balances): © Restricted funds are generated when the donor stipulates how their donation may be spent. At the year end, restricted funds amounted to £221,927, © Unrestricted funds are generated when donors do not stipulate how their donation mustbe spent. At the year end, unrestricted funds amounted to £2,361,017.

Public Benefit

In setting plans and priorities for areas of work, the Trustees have given regard to guidance from the Charity Commission on the provision of public benefit. The Trustees have considered and will continue to consider how our planned activities will contribute to the objectives we have set. How we deliver our principal objective “reduction of poverty in the relief of suffering particularly in situations of disaster” is demonstrated in our policies, objectives, and plans. The public benefit arising from our work is inherent in the grants made and the assistance given. Furthermore, we are mindful of the social, moral, and ethical causes of poverty and our purpose is both to address the causes and offer relief in outcome.

Key Management Personnel

The Trustees consider the Chief Executive Officer, Chief Finance Officer and Chief Programmes Officer as comprising the key management personnel of the Charity, in charge of directing and controlling the Charity and running and operating the Charity on a day-to-day basis.

All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note 20 of the accounts.

Trustees are required to disclose all relevant interests and register them with the Chief Executive Officer. None of the Trustees had financial interests with the Charity or its Parent; any such interests would be disclosed.

Trustee Induction and training

Prospective new Trustees are familiar with the Charity as they will have been associated with the Agency in some way. New Trustees are invited for an induction day with senior staff at the Agency. New Trustees are provided with information which outlines specific responsibilities and expectations of both the Trustees and the Charity. On-going training is offered to all Trustees, which includes events and courses that are organised both internally and externally. Beyond this, Trustees are invited at times to monitor projects both as ambassadors and consultants.

The Trustees are responsible for preparing the Trustees’ Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

The law applicable to charities in England and Wales requires the Charity Trustees to prepare financial statements for each year, which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing the financial statements, the Trustees are required to:

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Adventist Development and Relief Agency - UK

Trustees’ Report Year Ended 31st December 2023

The Trustees are responsible for keeping proper accounting records 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 Charities Act 2011, the applicable Charity Accounts and Reports Regulations 2008 and the provisions of the Trust Deed, They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of Disclosure to Auditors

So far as the Trustees are aware, there is no relevant audit information af which the Charity’s auditors are unaware; and the Trustees 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 Charity’s auditors are aware of that information.

Approved by the Trustees of Adventist Development and Relief Agency UK and signed on their behalf by /, bs p a ‘ Wéderly Aguiar

Date: 25/09/2024

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Adventist Development & Relief Agency — UK Independent Auditors’ Report Year Ended 31 December 2023

Independent Auditor's Report to The Trustees of The Adventist Development Relief Agency United Kingdom

Opinion

We have audited the financial statements of the Adventist Development Relief Agency United Kingdom for the year ended 31 December 2023 which comprise the Statement of[Financial][Activities,][the][Summary] Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summaryof 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 [reland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

« give a true and fair view of[the][ state][of][the][charity’s][affairs][as][at][31][ December][2023,][and][ofits][outgoing] resources and application of resources, for the year then ended; » have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and « have been prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011.

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 financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of[the][financial][statements][is][appropriate.] Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Adventist Development & Relief Agency — UK Independent Auditors’ Report Year Ended 31 December 2023

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information, 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 there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of[this][other][information,][we][are][required][to][report] that fact.

We have nothing to reportin this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: e the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or e the charity has not kept adequate accounting records; or e the financial statements are not in agreement with the accounting records and returns; or © we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 4, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a truc and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act and Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005.

Our objectives are to obtain reasonable assurance about whether the financial staternents 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 nota guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

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Adventist Development & Relief Agency — UK Independent Auditors’ Report Year Ended 31 December 2023 Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

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Adventist Development & Relief Agency — UK Independent Auditors’ Report Year Ended 31 December 2023

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011 and to the charity's trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do nat accept or assume responsibility to any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.

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Maye Kunc olen Somulh€ LAP
Moore Kingston Smith LLP Date 25/424
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Roger Ogden Senior Statutory Auditor 4 Victoria Square St Albans Herts AL1 3TF

Moore Kingston Smith LLP is eligible to act as auditor in terms of[Section][1212][of][ the][Companies][Act][ 2006]

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Adventist Development Relief Agency -UK

Statement of Financial Activity For the year ended 31 December 2023

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||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---| |2023|2022| |Note|Unrestrictedi|Restricted Funds|Total|Unrestricted|Restricteicted|Total| |Funds|Funds|Funds| |£|£|£|£|£|£| |incoming|Resources| |Income|and|Endowments|From:| |Donations and Legacies|2|576,114|330,853|906,967|817,657|151,353|969,010| |Charitable|Activities|2|161,466|1,582,690|1,744,156|92,640|1,325,081|1,417,721| |Investments|2|26,329|26,329|12,378|12,378| |Other income|2|1,536|1,536|-|.| |Total Incoming Resources|765.445|1,913,543|2,678,988|922,675|1,476,434|2,399,109| |Resources|Expended| |Expenditure|On:| |Charitable|Activities|4a|638,028|1,796,603|2,434,631|711,797|1,434,057|2,145,854| |Raising Funds|4d|80,641|80,641|55,606|55,606| |Total Resources Expended|718,669|1,796,603|2,515,272|767,403|1,434,057|2,201,460| |Net (expenditure]/i|i|ncome|be|f|iore|46,776|116,940|163,716|155,272|42,377|197,649| |investment|gains/(losses)| |Net|(losses)/gains on investments|13|15,886|-|15,886|12,065.|-|12,065| |Net (expenditure}/incame|before|62,662|116,940|179,602|467,337|42,377|209,714| |transfers| |Transfers between|funds|19|56,689|(56,689)|-|(11,600)|11,600|-| |Net movement|in funds|119,351|60,251|179,602|155,737|53,977|209,714| |Reconciliation|of|Funds:| |Total funds brought forward|19|2,241,666|161,676|2,403,342|2,085,929|107,699|2,193,628| |Total funds carried forward|19|2,361,017|221,927|2,582,944|2,241,666|161,676|2,403,342|

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Adventist Development Relief Agency -UK

Balance Sheet As at 31 December 2023

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||||||| |---|---|---|---|---|---| |Nate|Total|Total| |2023|2022| |Non-current|Assets| |Tangible|Fixed Assets|od|1,196|2,447| |Total Non-Current Assets|1,196|2,447| |Current Assets| |Debtors|a|1,258,872|1,127,164| |Investments|a|254,899|239,013| |Cash|at bank|v|4,837.830|1,950,370| |Total Current Assets|3,351,601|3,316,547| |Liabilities| |Creditors: Amounts|falling|due within one year|as|769,853|915,652| |Net Current Assets|2,581,748|2,400,895| |Tote! Net Assets|2,582,944|2,403,342| |The|Funds|of|the|Charity:| |Restricted|Income|Funds|19|221,927|161,676| |Unrestricted Funds|19|2,361,017|2,241,666| |Total Charity Funds|2,582,944|2,403,342|

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Approved and authorised for issue by the Board af Trustees an ...25/09/2024... and signed on its behalf by:

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Wederly Aguiar
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Adventist Development Relief Agency -UK

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Cash Flow Statement
For the year ended 31 December 2023
2023 2022
£ £
Cash Flows from Operating Activities:
Net Cash generated fram/used by Operating Activitie: (Note 11) (138,869) (20,690)
Cash Flows from Investing Activitles:
Dividends and Interest from Investments 26,329 12,378
Purchase of Fixed Assets a (3,754)
Net cash provided by investing actluities 26,329 8,624
Change In cash and cash equivalents tn the reporting pariod {122,540} (22,066)
Cash and Cash Equivalents at the beginning of the reporting period 1,950,370 1,962,436
Cash and Cash Equivalents at the end of the reporting period 1,837,830 1,950,370
Analysis of changes in net debt
At start of year Cash flows At and of year
TotalCash _ = 1,950,3701,950,370 (412,540)(112,540) ____ 4,837,830.1,837,830
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Adventist Development Relief Agency -UK

Notes to the Accounts

For the year ended 31 December 2023

Note 1 - Accounting Policies

a. Basis of preparation

The accounts (financial statements) have been prepared under the historical cost convention with transactions recognised at cost or transaction value unless otherwise stated in the relevant note to these accounts. These financial statements have been prepared in accordance with the statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

b. Going Concern

The Trustees have assessed whether the use of going concern is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the Trustees have considered the Charity’s forecasts and projections and have taken account of pressures on income.

Restricted expenditure on charitable activities, which consists of project costs funded by FCDO and the EU, sawa large increase in comparison to 2022. This was driven by large projects beginning in the previous year. The Charity continues to receive grants and ad hoc donations and seeks to win new projects in the future. Furthermore, as at 31 December 2023 the Charity had cash reserves of just over £2 million, which the Trustees believe is sufficient for the charity to meet its liabilities as they fall due.

After making enquiries, the Trustees have concluded that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future being at least 12 months from the date of signing the financial statements. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

c. Funds structure

Restricted income funds are funds which are to be used in accordance with specific restrictions imposed by the donor or trust deed.

Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in the furtherance of charitable objects. They include designated funds where the Trustees, at their discretion, have created a fund for a specific purpose. Further details of each fund are disclosed in note 19

Designated funds for named projects (Note 19) are unrestricted funds. This includes those funds set aside by the Trustees in order to meet the Charity’s contractual obligations for funding the Charity's share of project costs. This is usually in relation to the Charity’s contracts with the UK Government and the European Union and Jersey Overseas Aid.

d. Grant-making policies

The Trustees allocate grants in accordance with the objects set out in Charity’s governing document as summarised in the Trustees’ Annual Report.

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Adventist Development Relief Agency -UK

Notes to the Accounts

For the year ended 31 December 2023

e. Income recognition

All income is recognised once the Charity has entitlement to that incame, it is probable that the income will be received, and the amount of income receivable can be reliably measured.

Donations are recognised when the Charity has been notified in writing of both the amount and settlement date. in the event that a donation is subject to conditions that require a level of performance before the Charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Charity and itis probable that those conditions will be fulfilled in the reporting period. Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable. Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

Legacies are recognised following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the Charity.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon receipt of a dividend voucher and related cash.

f. Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs are allocated or apportioned to the applicable expenditure headings.

Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Charity.

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Adventist Development Relief Agency -UK

Notes to the Accounts

For the year ended 31 December 2023

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable.

g. Irrecoverable VAT

Irrecoverable VAT is charged against the expenditure heading for which it was incurred.

h. Foreign currency

Transactions denominated in foreign currencies are translated into Sterling at the rate of exchange ruling on the date of the transaction. Assets and liabilities in foreign currencies are translated into Sterling at the rates of exchange ruling at the end of the financial year. All exchange differences are recognised within the statement of financial activities.

j. Tangible fixed assets and depreciation

All assets costing more than £1,000 are capitalised and valued at historical cost. Depreciation is charged over their estimated useful life as follows: Property (portable office); 10% straight line Office fixtures and equipment: 33.33% straight line

j. Current asset investments

investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the closing quoted market price (note 13). The statement of financial activities includes the net gains and losses arising on revaluation throughout the year.

The Charity does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the Charity is that of volatility in equity and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectars or sub sectors.

k. Realised and unrealised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise.

Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.

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Adventist Development Relief Agency -UK

Notes to the Accounts

For the year ended 31 December 2023

Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.

Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

|. Pensions

Employees ofthe Charity are entitled to join a defined contribution ‘money purchase’ scheme. The Charity contribution is restricted to the contributions disclosed in note 9. There were no outstanding contributions at the year end. The costs of the defined contribution scheme are included within charitable activities or fundraising costs and charged to the unrestricted funds of the Charity on the basis of the employees employed under each ofthose activities.

The Charity previously participated in a defined benefit pension scheme of the British Union Conference of Seventh Day Adventists. This scheme closed to service after 31 December 2013.

ADRA-UK became a charity after the historic deficit was established and does not contribute to the recovery plan. From 1st January 2014, contributions have been made under the Auto-Enrolment compliance legislation by the employer to a Defined Contribution plan invested with the Legal and General insurance company (see note 9).

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Adventist Development Relief Agency -UK

Notes to the Accounts For the year ended 31 December 2023

Note 2 - Analysis of Income

Note 2 - Analysis of Income
2023 2022
Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds
£ £ £ £ £ £
Donations and Legacies
Annual Appeal - Other 35,361 35,361 104,209 - 104,209
Other Donations 530,753 224,075 754,828 636,621 151,353 787,974
Legacies 10,000 106,778 116,778 76,827 - 76,827
Total
fi
D
i
Cea
ee me sromibonationsiand
Legacies		 576,114 330,853. 906,967. Ss817,657. ~—«:151,353
Charitable Activities
Project Grants Received - FCDO = 807,569 807,569 38,312 717,881 756,193
Project Grants Received -JOA 31,739 437,745 469,484 62,988 62,988
Project Grants Received - EU - 337,376 337,376 42,328 544,212 586,540
Project Overhead Income 117,727 117,727
Other Grants 12,000 12,000 12,000 12,000
Total
Income
f
Charitabl
cralincome remicharttabte
Activities		 161,466 1,582,690 1,744,156 92,640 1,325,081 1,417,721
income from Investments
Interest On General Income 22,629 22,629 7,016 - 7,016
Share Dividends 3,700 3,700 5,362 - 5,362
Total Income from Investments 26,329 - 26,329 12,378 - 12,378
Other Income
Sales of Promotional Items . - . - - -
Realised Foreign Exchange Gain 1,536 - 1,536 - - -
Fixed asset Profit - - - - - -
Total OtherIncome 1,536 - 1,536 - : -
Total Income 765,445 1,913,543 2,678,988 922,675 1,476,434 2,399,109
Note 3 - UK Government Grant Income
2023 2022
Cash Received in the Year £ £
FCDO - South Sudan - GESS Project (EES) 807,569 680,927
Total 807,569 680,927
2023 2022
Amounts Recognised as Income in the Year £ £
FCDO - South Sudan - GESS Project 807,569 680,928
Total 807,569 680,928

Income is recognised based on stage of completion of project in line with contract terms and conditions.

17

Adventist Develapment Relief Agency -UK

Notes to the Accounts For the year ended 31 December 2023

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |Note 4|- Analysis of Resources|2023|2022| |Expended| |Unrestricted|Restricted|Total|Unrestricted|Restricted|Total| |Funds|Funds|Funds|Funds| |£|£|£|E|£|£| |4a.|Charitable|Activities Costs| |Direct Costs|(Note|4b)|565,192|1,782,436|2,347,628|617,296|1,426,823|2,044,119| |Support|Casts (Note 4c)|72,836|14,167|87,003|94,501|7,234|101,735| |Total Charitable Activities Costs|638,028|1,796,603|2,434,631|711,797|1,434,057|2,145,854| |4b,|Direct|Expenditure|on|Charitable|Activities| |Project|Expenses - FCDO|30,620|807,569|838,189|61,229|680,928|742,157| |Project|Expenses|- EU|-|317,925|317,925|53,910|556,858|610,768| |Project|Expenses - ADRA-UK|35,309|81,218|116,527|76,689|5,300|81,989| |m|paid to Partner Agencies (Note|.|143,105|143,105|;|167,700|167,700| |Project|Expenses|- JOA|+|432,619|432,619|64,720|14,272|78,992| |Project Consultancy|4,765|-|4,765|-|-| |Grants|Disbursed|Donors/Others|76,131|-|76,131| |Other|Project|Expenses|109|-|109|-|-|-| |Salaries|and|Wages|311,883|-|311,833|297,838|297,838| |Employer Social|Security|Costs|34,140|-|34,140|32,873|-|32,873| |Employer Pension|Contributians|52,432|-|52,432|22,967|:|22,967| |Other Employee|Expenses|19,803|-|19,803|7,070|1,765|8,835| |TotalCharitableDirect ActivitiesExpenditure on|565,192|1,782,436|2,347,628|617,296|1,426,823|2,044,119| |4c. Analysis of Support|Costs Attributed|to Charitable|Activities.| |Audit|Fees|- Statutory Audit|(5e)|23,600|=|23,600|30,413|-|30,413| |Trustee And|Advisory Meetings|(Se)|71?|-|717|2,546|2,546| |Professional|and|Membership|Fees|8,161|-|8,161|7,803|4,455|12,258| |Travel|Expenses|15,849|-|15,849|13,740|2,776|16,516| |Office and|Administrative|Expenses|12,594|14,167|26,761|26,340|26,340| |Staff Training and|Conferences|3,649|-|3,649|1,452|-|1,452| |Depreciation &|Loss on|Sale|1,251|-|1,251|1,307|.|1,307| |Exchange|Rate|Loss/|{Gain)|.|-|-|3,635|-|3,635| |Bank Fees And|Charges|7,015|-|7,015|7,268|3|7,268| |TotalCharitable Support Activities Costs Attributed to|72,836|14,167|87,003|94,501|7,234|101,735|

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18

Adventist Development Relief Agency -UK

Notes to the Accounts For the year ended 31 December 2023

4d.ExpenditureonRaisingFunds Unrestricted
Funds
£		 2023
Restricted
Funds
£		 Total
£		 Unrestricted
Funds
£		 2022
Restricted
Funds
£		 Total
£
incurredSeeking Donations
Incurred Seeking Grants
TotalExpenditureonRalsingFunds		 34,893
45,748
80,642		 :
-		 34,893
45,748
80,641		 33,771
21,835
55,606		 -
-
-		 33,771
21,835
55,606
5.Governance Costs
Audit Fees -StatutoryAudit
TrusteeAndAdvisoryMeetings
TotalGovernanceCosts		 23,600
717
24,317		 -
-		 23,600
717
24,317		 30,413
2,546
32,959		 -
-
-		 30,413
2,546
32,959
6.Analysis ofResourcesExpensesbyExpenditureType StaffCosts Depreciation OtherCosts Total
2023 2023 2023 2023
£ £ £ £
CostofGeneratingVoluntaryIncome (Note4d) - 80,641 80,641
Charitable Activities: Humanitarian Aid(Note B,12,19) 398,455 1,251 2,034,925 2,434,631
S55
ASS
251		 2,515,566 _2,515,272.
Note 7 - FeesforExamination ofthe Accounts
Unrestricted
Funds
£		 2023
Restricted
Funds
£		 Total
£		 Unrestricted
Funds
£		 2022
Restricted
Funds
£		 Total
£
Audit Fees -Statutory Audit
Total
F
E
‘otal
Feesfor Examinationofthe		 23,600
23,600		 -
.		 23,600
23,600		 30,413
30,413		 -
.		 30,413
30,413
Accounts

19

Adventist Development Relief Agency -UK

Notes to the Accounts

For the year ended 31 December 2023

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Note 8 8 - Paid Employees Paid Employees Employees
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|||||||||| |---|---|---|---|---|---|---|---|---| |Note 8 8|- Paid Employees Paid Employees Employees|2023|2022| |Unrestricted|Restricted|Total|Unrestricted|Restricted|=Total| |Funds|Funds|Funds|Funds| |Note 8.1|- Staff Costs|£|£|€|£|£|£| |Salaries|and Wages|311,883|311,883|297,838|-|297,838| |Social|Security|Costs|34,140|:|34,140|32,873|-|32,873| |Pension|Costs|52,432|-|52,432|22,967|-|22,967| |Other Employee|Benefits|19,803|.|19,803|8,835|1,765|10,600| |Total Staff Casts|418,258|-|418,258|362,513|1,765|364,278|

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During the reporting period, the number of employees receiving employee benefits of £60,000 or more excluding Employer Pension Costs and National Insurance was 1 (2022: 1).

The total amount of employee benefits including employer pensions paid for key management personnel for their services to the Charity was £199,881 (2022: £152,071). This does not include Employer National Insurance. None ofthe Trustees were remunerated for their services as Trustees to ADRA-UK nor did they accrue any retirement benefits.

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||||||| |---|---|---|---|---|---| |§.2 Average|Head|Count|in|the|year| |The parts of the Charity|in which the employees work:|2023|2022| |Charitable|Activities|7|8| |Total|7|8| |Note|9|Pensions| |Note 9.1 Defined contribution|pension scheme|2023|2022| |£|E| |Amount of contributions recognised In the SOFA as an expense|52,432|22,967| |Note|10 Grant|making| |10.1|Analysis of grants paid (included|in cost of charitable|activities).|2023|2022| |Analysis of grants|paid (to institutions):|£|£| |Adventist|UK Community|Hubs|4,103|11,821| |Emergency Grants to ADRA Network offices|134,002|132,753| |Other Grants to ADRA|Network|offices|5,000|23,126| |Total grants paid to Institutions|143,105|167,700|

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The Charity did not make any grants to individuals.

20

Adventist Development Relief Agency -UK

Notes to the Accounts For the year ended 31 December 2023

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2023 2022
£ £
Note 11. Reconciliation of net (expenditure) to net cash flow from
operating activities
Net income/(expenditure) far the reporting period (as per the statement 179,602 209,714
of financial activities)
Adjustments for:
Depreciation Expense 1,251 1,307
Losses/(gains) on Investments (15,886) (12,065)
Dividends and Interest from Investments (26,329) (12,378)
(Increase)/Decrease in Debtors (131,708) (668,308)
Increase (Decrease) in Creditors (145,799) 461,040
Net Cash provided by Operating Activities (138,869) (20,690)
Note 11a. Analysis of cash and cash equivalents
Cash at bank 1,837,830 1,950,370
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21

Adventist Development Relief Agency -UK

Notes to the Accounts

For the year ended 31 December 2023

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|||||||| |---|---|---|---|---|---|---| |t|af|le|fi| |Portable|Office|Fixtures, fittings|Total| |and|equipment| |£|£|£| |Cost| |At|1 January 2023|16,165|21,059|37,224| |Additions|-|.|.| |Disposals|=|ee SD| |At 31 Decamber 2023|16,165|22,059|37,224| |Depreciation| |At 1 January 2023|16,165|18,612|34,777| |Charge|for the year|.|1,251|1,251| |Depreciation|on|disposal|-|.| |At 32 December 2023|16,165|19,863|36,028| |Net|book|value| |At 1 January 2023|-|2A4?|2,447| |At 31 December 2023|-|2,196|1,196| |CoS|————|SS Ee—_———S| |Note|13|Current|Asset|Investments|2023£|2022£| |Fair Value|at 1st January 2023|239,013|226,948| |(Decrease)}/Increase|in fair value|15,886|12,065| |Falr|Value at 31st December 2023|254,899|239,013|

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The year end fair values of listed equities were obtained from data published by the London Stock Exchange, whereas the Prudential bond valuation was provided by the issuer.

Current asset investments represent 8.1% (2022: 7.1%) of the Charity’s total Current Assets.

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|||||| |---|---|---|---|---| |Value When|2023|2022| |Investments consist of the following:|Gifted| |£—|E|£| |110,344|108,030|93,193| |Equities|(listed)| |Prudential|Bond|25,000|146,869|145,820| |Total|135,344|254,899|239,013|

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22

Adventist Development Relief Agency -UK

Notes to the Accounts

For the year ended 31 December 2023

Note 14 Debtors and Prepayments
Debtorsduein lessthan 1year		 2023
£		 2022
€
Amounts Receivableforperformance-related Grants
Prepayments andAccrued Incame
OtherDebtors
TatalDebtorsand PrepaymentsdueIntessthan2 year		 870,490
122,345
92,860
1,085,695		 944,440
233,135
49,589
1,127,164
Debtors due over 1 year
Amaunts Receivable forperformance-related Grants
TotalDebtorsandPrepaymentsdueover1year		 173,177
173,477		 .
-
TotalDebtors 1,258,872 1,127,164
Note15CreditorsandAccruals 2023 2022
£ £
Amounts Payable performance-related Grants
Accrued Expenses
OtherCreditors
Total CreditorsandAccruals		 678,438
84,038
7,377
769,853		 882,370
33,282
915,652
Note 16ProvisionsforLiabilitiesandCharges
Duringtheyearended31stDecember2023, the Charityhadmadenooutstandinggrantcommitments (2022: NIL}.
Note 17 CashatBankandinHand 2023 2022
£ E
Cash atbank 1,837,830 1,950,370
—XSXSXSX_!:-SSeS

Note18 Fair Value of Assets and Liabilities 18.1 Management considers that the expasure ta risk is minimal. No credit is extended, and the value of investments is not significant to the Charity's operation. Commitments to provide matching funds are set aside as designated funds at the commencement of each project.

18.2 The fair value of Current Asset investments increased by £15,866 and this increase has been recognised in the Statement of Financial Activity

23

Adventist Development Relief Agency -UK

Notes to the Accounts

For the year ended 31 December 2023

Note 19 Charity Funds 19.1 Details of material funds held and movements during the current reporting period

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |F|un|d| |Fund names|Purpose|Fundbroughtbalances|Income|Expenditure7|(NoteTransfers19.3)|balancescarrled| |forward|forward| |£|£|£|£|£| |Designated funds| |Invested|in Property and|Equipment|Fixed|Assets|2,815|.|1,251|-|1,564| |Major Emergency|Fund|MajorEmergencies|100,137|(100,137)|:| |Named|ProjectF|Funds|commitmentsProject7|192,869|35,361|63,503|42,000|206,727| |Total designated funds|295,823|35,361|64,754|(58,137)|208,291| |General Fund|General|1,945,845|745,970|653,915|114,826|2,152,726| |Total Unrestricted funds|2,241,666|781,331|718,669|56,689|2,361,017| |Restricted|funds| |Myanmar -Case|2|Learn|-| |South Sudan|- GESS|Girls‘|Education|807,568|807,569|(1)| |Environmental| |Sri|Lanka|- EU|Project|and|Nutritional|337,375|317,928|.|19,450| |Development| |Jersey Overseas|Aid|Agricultural|437,745|432,619|5,126| |Support| |Benefit| |Virtual|gift boxes|disadvantaged|618|618| |children|in|UK| |Urban|Ministries Jubilee|Migrant Advocacy|5,840|4,103|-|1,737| |Smal|!|53,020|171,013|134,002|90,031| |Emergency|Restricted|Funds| |Emergencies| |Small|Restricted|Funds|Small|Projects|102,198|159,842|100,385|(56,689)|104,966| |Total|restricted funds|161,676|1,913,543|1,796,603|(56,689)|221,927| |Total funds|2,403,342|2,694,874||2,515,272|:|2,582,944| |19.2|Analysis|of|Assetsbetween Funds|2023|2022| |Restricted|Unrestricted|Total|Restricted|Unrestricted|Total| |Funds|Funds|Funds|Funds|Funds|Funds| |E|£|£|£|£|£| |Tangible|Fixed|Assets|-|1,196|1,196|-|2,447|2,447| |Current Assets|221,927|3,129,674|3,351,601|161,676|3,154,871|3,316,547| |Creditors|due|within|one year|(769,853)|(769,853)|-|(915,652)|(915,652)| |Total Funds|221,927, |2,361,017,|2,582,944|163,676|[2,241,666]||[ ___2,403,342]|

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24

Adventist Development Relief Agency -UK

Notes to the Accounts

For the year ended 31 December 2023

19.3 Transfersbetweenfundsin2023
Between unrestrictedand restrictedfunds:
Varioussmall restricted funds
General		 19.3 Transfersbetweenfundsin2023
Between unrestrictedand restrictedfunds:
Varioussmall restricted funds
General		 Reasonfortransfer
Tofundshortfall in restrictedfunds		 Reasonfortransfer
Tofundshortfall in restrictedfunds		 Reasonfortransfer
Tofundshortfall in restrictedfunds		 Amount (£)
56,689
56,589		 Amount (£)
56,689
56,589
19.4Details ofmaterialfundsheldandmovementsduring thepreviousreporting period +
Fund		 Fund
Fund names Purpose poner
brought		 Income Expenditure =Transfers Balances
carried
forward
£		 £ E £ forward
£
Designated funds
invested inPropertyand Equipment Fixed Assets
MajorEmergency Fund
MajorEmergencies
Named Project Funds
ProjectCommitments
Totaldesignatedfunds		 368
100,137
279,113
379,618		 -
-
105,670
105,670		 (2,447)
-
191,914
189,467		 -
-
.
.		 2,815
100,137
192,869
295,821
GeneralFund General 1,706,311 761,192 510,048 (11,600) 1,945,845
Total unrestricted funds 2,085,929 866,652 699,515 (12,600) 2,241,666
Restrictedfunds
Myanmar -Case 2Learn
SouthSudan -GESS		 Girls’ Education (11,600) 680,928 680,928 11,600
Environmental and
Sri Lanka -EU Project Nutritional - 481,224 481,224
Development
JerseyOverseas Aid Agricultural Support . 62,988 62,988 .
Virtual giftboxes fit
di
Beene cateanaes
children in UK		 1,260 4,360 5,002 618
Urban Ministries Jubilee
EmergencyRestricted Funds
Small Restricted Funds		 MigrantAdvocacy
Small Emergencies
Small Projects		 -
10,740
107,299		 14,000
209,981
22,953		 8,160
167,701
28,054		 . 5,840
53,020
102,198
Totalrestrictedfunds 107,699 1,476,434 1,434,057 11,600 161,676
Totalfunds 7,193,628
2,343,286
Sesseee		 7,133,572
ee		 - 2,403,342
——————

25

Adventist Development Relief Agency -UK

Notes to the Accounts For the year ended 31 December 2023

Note 20 Transactions with Trustees and Related parties

20.1remunerationTrustee and benefits None of the Trustees have been paid any remuneration or received any other benefits from employment by the Charity or a related entity in their capacity as Trustees of ADRA-UK.

----- Start of picture text -----
20.2 Trustees’ expenses
Type of expenses reimbursed
Travel and Accommodation
Total
Number of Trustees reimbursed for expenses or who had expenses paid by the Charlty: 1 (2022: 0)
----- End of picture text -----

----- Start of picture text -----
2023 2022
£ £
297 .
——oOoOCOCOCrS oS
27 E
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Transacti ith related parties

During the year the charity had a number of transactions with its parent entity, The British Union Conference of Seventh Day Adventists ("BUC"). The Charity received an appropriation from the BUC amounting to £12,000, the charity also paid rent to the BUC amounting to £7,800 and at the year end the charity was owed £122,345 (2022: £49,589) the BUC.

26