OpenCharities

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

2020-12-31-accounts

•• Annual Report and Financial Statements 2020 The Leprosy Mission

THE LEPROSY MISSION INTERNATIONAL

A Company Limited by Guarantee, Registered Company Number: 3591514 Registered Charity Number: 1076356

Registered Office Address and Principal Place of Business: 80 Windmill Road, Brentford, Middlesex, TW8 0QH England

REPORT OF THE TRUSTEES (INCORPORATING THE STRATEGIC REPORT)

The Trustees who are also directors of the company have pleasure in presenting their Report and Financial Statements for the year ended 31 December 2020, prepared in accordance with the Statement of Recommended Practice (Second Edition effective 1 January 2019) and the Companies Act 2006. The Report of the Trustees incorporates the requirements of the Strategic Report.

The Leprosy Mission International (the Mission) is an interdenominational Christian organisation, founded in 1874. The Charity receives much of its support from Supporting Countries and Support Groups who work in partnership with The Leprosy Mission International. Each part of The Leprosy Mission recognises and values their interdependence and mutual support for each other in their joint ministry to people affected by leprosy.

MISSION STATEMENT

Following Jesus Christ, The Leprosy Mission seeks to bring about transformation; breaking the chains of leprosy, empowering people to attain healing, dignity and life in all its fullness.

OUR VISION

We are committed to our vision of “Leprosy defeated, lives transformed”.

OUR AREAS OF STRATEGIC FOCUS

Zero Leprosy Transmission

Zero transmission of leprosy by 2035 as a result of earlier detection and treatment of new leprosy cases.

Towards Zero Leprosy Disability

Healing, dignity and life in all its fullness as a result of a) reduced disability burden in people affected by leprosy and b) the transformation of physical, mental, emotional and spiritual wellbeing of people affected by leprosy.

Towards Zero Leprosy Discrimination

Zero discrimination against people affected by leprosy as a result of a) the greater inclusion of, and justice for, people affected by leprosy and disability and b) people affected by leprosy confidently standing up for their rights.

Christ-centred

Transformation and Life in all its Fullness for people affected by leprosy.

The Leprosy Mission Enabled

An agile TLM with Members and people who are resilient, stronger, healthier and more sustainable; raising £40 million per annum; a renewed global, national and local commitment to defeating leprosy and promoting inclusion; with TLM known as a leading collaborative player.

OUR VALUES

Because we follow Jesus Christ we value Compassion, Justice, Integrity, Inclusion and Humility

Transformation involves body, mind and spirit. In all we do, through prayer and obedience to God, we want to proclaim and demonstrate the truth and love of Jesus Christ.

2

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Leprosy Mission International is governed by the Memorandum and Articles of Association dated 3 February 2013 and the Trustees of the Mission are appointed by the members. The Trustees of the Mission are Directors for the purposes of company law.

The current organisation structure is as follows.

The Leprosy Mission International is the leading and coordinating body for The Leprosy Mission Fellowship, an unincorporated partnership of entities operating in the name of The Leprosy Mission in 31 countries. The members of The Leprosy Mission International are also the Members of The Leprosy Mission Fellowship and a meeting of members is held each year. The Board is the governing body of The Leprosy Mission International. During the year it has met four times, in April, July, September and November. All Board members (Trustees) are non-salaried.

The Representative Management Group is an advisory group which functions through the International Director, who is the chief executive and reports to the Board. The group comprises eight members who have specific functions within The Leprosy Mission Fellowship.

Two committees operate under the delegated authority of the Board and report to the Board:

Audit Committee (Chairperson: Mr Philip Putman)

The Audit Committee advises the Board on the quality and effectiveness of the programmes of the Mission, the nature and extent of the major risks associated with the implementation of those programmes and the ‐ integrity of financial and non financial management and reporting in the Mission. During the year, the Audit Committee met four times, in April, July, September and November. The Audit Committee recommended the attached Financial Statements to the Board for approval.

Governance Committee (Chairperson: Mrs Anne Ratliff)

The Governance Committee is responsible for ensuring that suitable candidates with appropriate skills are brought forward for election to serve as Trustees, for ensuring that the Board’s policies are reviewed on a regular basis, and for monitoring the effectiveness of the Board having regard to best practice in organisational governance. Newly appointed Trustees are given an orientation to the Mission and a Board manual comprising the Memorandum, Articles and Bye Laws of the Mission and all relevant policies, guidelines and procedures. During the year, the Committee met four times, in April, July, September and November.

The Directors (Trustees) of the charitable company throughout the year are as follows:

3

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

INTERNATIONAL DIRECTOR AND COMPANY SECRETARY

Mr Brent J Morgan

RISK MANAGEMENT

Risk reviews were conducted during the year and potential areas of risk were identified and reported to the Board.

Through the risk management processes and controls established for the charity, the Trustees assess business risks annually and are satisfied that the major risks are identified and assessed and that systems are in place to mitigate the charity’s exposure to these risks. It is recognised that systems can only provide reasonable assurance that major risks have been adequately managed. Given the nature and geographical location of the programmes, there will always be some element of risk although the Mission attempts to minimise these wherever possible, by regular tele-conference and face-to-face meetings

The Trustees identified the following major risks:

The Trustees continue to monitor the changing landscape and the impact of COVID-19 on the Mission.

REMUNERATION OF KEY MANAGEMENT PERSONNEL

The Trustees consider the board of trustees and the International Director of the Mission and the Chief Executive Officer of TLM Trading to comprise the key management personnel of the group.

All trustees give of their time freely and no director received remuneration in the year.

The pay of the key management personnel and all staff are reviewed annually and normally increased in accordance with average earnings to reflect a cost of living adjustment. In view of the nature of the charity, the Trustees benchmark against pay levels in other similar charities.

POLICIES

Grant Making

Grants are given annually to programmes which fit the vision and strategy of the Mission. All approved programmes are required to complete annual plans and budgets. The programmes also prepare annual rolling budgets for their duration or for five years maximum. Grants are paid in accordance with the approved budget, which includes annual objectives and projects’ long-term goals. Each programme is thoroughly considered by the country office to ensure both feasibility and effectiveness before being reviewed in accordance with the Programme Approval Policy.

Programmes are then monitored throughout the life of the project by the relevant country office and come under the scrutiny of regular internal audit and an evaluation process.

4

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

POLICIES (Continued)

Investment

Management of the funds is conducted in accordance with the Articles of Association and within agreed policies and guidelines set and monitored by the Audit Committee.

Specific ethical guidelines have been given to the investment managers to avoid investment in companies significantly involved in alcohol, tobacco products, gambling, armaments or pornography, and also to consider the reputation and trading methods of any company which might contravene the objectives and values of the Mission. The performance of the fund is measured against an asset allocation of equal split between UK equities and bonds and overseas equities and bonds (see page 12). Investment decisions are based upon long- term considerations and on a total return basis.

The investment manager is appointed under the delegated authority given to the Audit Committee and their performance is reviewed on a rolling three-year cycle. Rathbone Investment Management Limited were appointed as investment managers.

Safeguarding

The Leprosy Mission takes safeguarding seriously and has global and local policies and procedures in place, which are regularly reviewed. We have a zero-tolerance approach to serious misconduct.

The Leprosy Mission has policies, procedures and guidelines, including but not restricted to:

Safeguarding is a standing item in the TLMI Board agenda and in Member countries Boards agendas.

During 2020, The Leprosy Mission International received three safeguarding concerns – the allegations made were; one for alleged sexual exploitation, one for alleged bullying and one for alleged sexual harassment of which one was substantiated, one was unsubstantiated and one was inconclusive. One of these was deemed a serious incident and was reported to the Charity Commission of England and Wales. The Leprosy Mission continues to collect learning from these reports and endeavours to make the necessary changes to our policy and practice to ensure, we proactively protect the dignity and rights of every person.

Management

The Board-appointed International Director is responsible for strategy, planning and the daily management of operations. The International Director is supported by a senior leadership team who have delegated authority for key aspects of the Mission’s operations.

5

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

POLICIES (Continued)

The International Director reports to the Trustees on progress against the indicators and targets in the Global Strategy. The International Director and appropriate members of the senior leadership team attend and report at meetings of sub-committees.

A new five-year strategy for The Leprosy Mission was developed to ensure that the work of The Leprosy Mission is working towards achieving Zero Leprosy Transmission, Zero Leprosy Disability and Zero Leprosy Discrimination. Implementation commenced in 2019, the progress is discussed within the Achievements and Performance.

There is a policy for the setting of the remuneration of the International Director. The Chair of Trustees in conjunction with Human Resources Manager appraise the International Director’s performance annually and establish any increase in line with the Performance Related Pay scheme which applies to all staff.

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

Employment of People Affected by Leprosy and People with Disabilities

Globally The Leprosy Mission employs numerous staff who have been personally affected by leprosy. This is estimated at between five and ten per cent of the total number of staff. In 2020, The Leprosy Mission International employed no staff affected by leprosy but actively encouraged people with disabilities with appropriate skills and experience to apply for vacant positions. One serving member of the Trustees is a person affected by leprosy.

Staff Development

Training and developing our staff remain a key activity as The Leprosy Mission International (and the TLM Global Fellowship) strives to serve those affected by leprosy. We developed a tailor-made leadership development programme which incorporates a number of leadership skills development training using external providers. The programme is aimed at training all senior leaders as second tier leaders within the organisation.

Reserves

In determining the level of operational reserve, the Board recognised the global organisation’s need for a centrally invested reserve to provide operating capital and as a contingency or hardship fund to support members to overcome short-term financial challenges. The Board has set a policy range for the reserve taking into account factors that include the unpredictability of exchange rates, donor income and investment values and the potential impact of these events upon our programmes (refer to page 12).

Monitoring

Against each of the medium to long-term strategies the Board has identified a number of targets/indicators which need to be met. The organisation monitors the effectiveness of the strategy on an annual basis and reports its findings to the Board to ensure that the organisation achieves the target which has been set.

6

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

POLICIES (Continued)

Public Benefit Statement

The Trustees of the charity have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission and the work of The Leprosy Mission to further the public benefit is explained in this report.

OBJECTIVES AND ACTIVITIES

In September 2018, on the Board’s recommendation, the Members approved a new five-year strategy.

Zero Leprosy Transmission

The Leprosy Mission Will:

We will work to improve:

Impact by the End of 2023:

Earlier detection and treatment of new leprosy cases.

Our Future Ambition:

Zero transmission of leprosy by 2035

7

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

OBJECTIVES AND ACTIVITIES (Continued)

Towards Zero Leprosy Disability

The Leprosy Mission Will:

We will work to improve:

Impact by the End of 2023:

Reduced disability burden in people affected by leprosy Transformation of physical, mental, emotional and spiritual wellbeing of people affected by leprosy

Our Future Ambition:

Healing, dignity and life in all its fullness

Towards Zero Leprosy Discrimination

The Leprosy Mission Will:

We will work to improve:

8

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

OBJECTIVES AND ACTIVITIES (Continued)

Impact by the End of 2023:

Greater inclusion of, and justice for, people affected by leprosy and disability People affected by leprosy confidently standing up for their rights.

Our Future Ambition:

Zero discrimination against people affected by leprosy

Christ-centred

The Leprosy Mission Will:

We will work to improve:

Impact by the End of 2023:

Spiritual growth of TLM’s people

The body of Christ taking greater ownership of the God-given mission to love and include those affected by leprosy

Our Future Ambition:

Transformation and Life in all its Fullness for people affected by leprosy

The Leprosy Mission Enabled

The Leprosy Mission Will:

We will work to improve:

9

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

OBJECTIVES AND ACTIVITIES (Continued)

Impact by the End of 2023:

ACHIEVEMENTS AND PERFORMANCE

The Trustees have identified a number of achievement indicators, based on the strategic plan, against which they monitor the performance of the organisation. The Covid-19 pandemic has affected most of our programmes and the achievement in 2020 reflects this.

Organisational Activities

Advocacy (Zero Discrimination and enabling The Leprosy Mission’s work)

TLM’s advocacy work became increasingly important during 2020 due to the devastating impact of the covid pandemic on persons affected by leprosy. TLM worked closely alongside the UN Special Rapporteur for leprosy discrimination, Professor Alice Cruz, to ensure that the conditions facing persons affected by leprosy during the pandemic were highlighted to governments and duty bearers.

TLM continued its work in coalition with other organisations in order to amplify its advocacy positions and global voice. In 2020 our International Director, Brent Morgan, was appointed to the role of President of ILEP (The International Federation of Anti-Leprosy Associations). We also worked alongside persons affected organisations to ensure their voices were heard at a global level.

We continued to engage with UN bodies and mechanisms in 2020. This included making submissions to the UN Universal Periodic Review for Myanmar and Nepal, and having a person affected by leprosy, Mr U Soe Win from Myanmar, speak at the UNCRPD State Parties Conference. TLM also hosted a side event at the UNCRPD State Parties Conference with five persons affected by leprosy presenting as panel speakers.

Income (Enabling The Leprosy Mission’s work)

In 2020, donation income was £12,267,007, which was similar to the previous year’s income. This was a remarkable income performance given the global pandemic crisis through the year in 2020.

Public Health (Zero disability and zero transmission)

In almost all the countries where we work, leprosy services have been integrated into mainstream health care, which is important for reducing stigma and to make leprosy treatment sustainable. However, one of the consequences has been less attention to leprosy: the number of new cases has ceased to fall and there is the risk in some areas with weaker health services that new cases will begin to increase.

10

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

ACHIEVEMENTS AND PERFORMANCE (Continued)

The Leprosy Mission still provides effective training to government medical staff to ensure that people affected by leprosy are given the high-quality treatment they need. In 2020 we gave technical assistance to governments in more than 18 countries. We also provided at least 29,916 training days for TLM staff, government health staff and other NGOs in leprosy (2019: 56,615).

Hospitals (Zero disability and zero transmission)

In many countries, hospitals supported or owned by TLM are centres of excellence, providing specialised care to leprosy-affected people and appropriate forms of healthcare to the surrounding communities.

These community hospitals provide a variety of in- and out-patient services. Leprosy and non-leprosy patients are treated together which helps reduce stigma and segregation.

In 2020 we supported 16 TLM supported hospitals and another 19 partner hospitals. The hospitals provided 4,902 in-patients with care for leprosy related conditions (2019: 10,117). We performed 721 (2019: 1,508) reconstructive and eye surgeries related to leprosy.

Disability care and prevention (Zero disability)

If leprosy is not diagnosed quickly enough, nerves are damaged and disability is an inevitable consequence. An estimated 2-3 million people are disabled due to leprosy.

Self-care groups provide an environment where people can share problems, encourage each other and learn how to look after themselves to prevent worsening disabilities.

In 2020 we provided assistance to 199 self-care groups, which included 3,017 participants (2019: 261 groups with 3,749 participants).

In 2020, TLM provided 18,094 people (2019: 25,837) with footwear and orthopaedic devices to protect their insensitive feet from further damage or disability.

Community development (Zero discrimination)

Leprosy is not just a physical disease, it has social consequences. Therefore community development is an important part of TLM’s work. We encourage leprosy-affected people to set up local community or disability groups; together they can save money and come up with plans for improving their communities and increasing their income. In some countries these self-help groups are amalgamated into larger cooperatives to better meet their members’ needs.

In 2020 we supported 2,080 self-help groups and cooperatives with 23,902 participants (2019: 2,009 groups with 24,285 participants).

In 2020 we built or renovated 105 low-cost homes (2019: 627) for leprosy-affected people in poverty, and enabled 6,782 people to access new or renovated water or sanitation facilities (2019: 3,186).

Education (Zero discrimination)

Training and education provide leprosy-affected people and their families a means to break free from the cycle of poverty. In 2020 we provided scholarships for formal education to 4,173 children or young people (2019: 4,936). We provided vocational training or apprenticeships to 1,571 young people (2019: 1,870). At TLM’s own Vocational Training Centres in India we trained 945 young people in marketable skills, setting them up for life (2019: 706).

11

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

ACHIEVEMENTS AND PERFORMANCE (Continued)

Research (Zero transmission, zero disability, zero discrimination, and enabling The Leprosy Mission’s work) Through research, the Mission can find new ways to understand leprosy and to detect, treat and care for leprosy-affected people. TLM is exceptionally well-placed through its research laboratories and its extensive field and hospital-based research programmes to make a major contribution to world knowledge on leprosy. The total number of research projects funded during 2020 was 38 (2019: 36).

Church engagement (Christ-centred and Enabling The Leprosy Mission’s Work)

Our work is sustained by the prayerful giving of churches all across the world. Their support can come in the form of donations, volunteering, fundraising activities, and more. In total we have 5,600 (2019: 5,869) churches who are giving to our work.

Life in all its fullness (Christ-centred)

Our desire to see people living life in all its fullness is informed by a Bible verse. Jesus said “I have come in order that you may have life – life in all its fullness” (John 10:10). Through our self-help groups, livelihood support, and community development we are working to provide fullness of life for people affected by leprosy and people in communities affected by leprosy. However, we are also committed to ensuring that the staff of The Leprosy Mission worldwide are nurtured and encouraged so that they can live life in all its fullness. Our staff engagement work received particular recognition in 2020 when it won an Agenda award for the number of staff who would recommend The Leprosy Mission as a place to work.

FINANCIAL PERFORMANCE

The consolidated surplus for the year was £74,809 (2019: Deficit £1,086,504) before recognising the unrealised gains and losses of investments. The previous year deficit was largely impacted by implementing the Board approved deficit budget in the year and payment of restricted income surplus from previous years.

The Board is thankful for the continued support from TLM Fellowship Member Countries and other donor organisations. The field programmes are continuing to develop in line with the Mission’s strategy, giving increased focus on community programmes, which include both health development and rehabilitation. Many of the hospital programmes that the Mission supports provide services for non-leprosy patients, which in turn provide a local source of income for the hospital as well as providing general medical care to the local community.

Although TLMI does not directly engage in fundraising activity, TLMI has taken steps to strengthen support for Members who do. The appointment of Head of Fundraising Development was made with the specific intention to encourage and assist activities by Members to increase unrestricted donation income for Global Fellowship projects. This has been achieved, with the implementation of Fundraising Cycle (Ask-ThankFeedback) methodology by Fundraising member countries. We have received no complaints about fundraising and we have a complaint policy in place should any be received in the future.

Total expenditure of the charity in the year amounted to £12,834,546 (2019: £13,845,194) of which £12,233,435 (95%) (2019: £12,172,686 (95%)) was attributable to charitable activities. Major programmes supported in 2020 are listed in Note 6 of the Accounts and they continue to represent a wide spread of activities across 20 countries.

Total support costs by the charity to TLM Fellowship Member countries are analysed in Note 7b of the accounts and amounts to 8.3% (2019: 11.0 %) of the total income of the charity.

12

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

FINANCIAL PERFORMANCE (Continued)

Investment

Rathbone Investment Management Ltd was re-appointed on 29 March 2021 as the investment manager. Their performance is monitored quarterly and on a rolling three-year basis. The investment manager is expected to outperform the benchmark given to him by the Audit Committee. The performance has been monitored by management and the Treasurer on a quarterly basis.

In the year ended 31 December 2020 the fund achieved a return of 7.0% (2019: 17.4%) against the benchmark of 5.7% (2019: 15.4%).

Reserves Review

During the year the Board affirmed the continuing need to hold adequate reserves. The Board has approved a reserve policy with a number of components, which in combination result in a guideline operational reserve level to be between £3 million (minimum) and £4 million (maximum). The current reserve policy was agreed in 2021 and the next review will be done 2024. The free reserve level at 31 December 2020 is £3,922,994 (2019: £3,669,942).

In addition, an amount of £3,785,266 is held in bank and investments as restricted funds listed in Note 20. An amount of £2,299,615 is held as designated funds as listed in Note 19.

Going Concern

The directors have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The directors have made this assessment in respect to a period of one year from the date of approval of these accounts. After reviewing the company’s forecasts and projections, which are being regularly updated in light of the ongoing Covid-19 pandemic, the directors are of the opinion that the company will have sufficient resources to meet its liabilities as they fall due.

The Board of Trustees consider that there are no material uncertainties with respect to going concern and accordingly, the directors continue to adopt the going concern basis in preparing these financial statements.

Accordingly, the Board of Trustees is of the opinion that the charity has adequate resources to continue in operational existence for the foreseeable future.

Subsidiary Company

TLM Trading Limited is a wholly owned subsidiary of The Leprosy Mission International and its results for the year have been consolidated with those of The Leprosy Mission International and reported in the Financial Statements.

TLM Trading Limited has three main objectives which are integral to the work of the Mission. The first objective is to raise financial support for The Leprosy Mission. The second objective is to develop products produced by people affected by leprosy and to sell these products to customers and the third is to raise the profile of The Leprosy Mission through all of the trading activities.

In 2020, the income of the trading company was £2,186,481 (2019: £1,787,096) and the company made a profit before Taxation, before Pension deficit liability and before distribution of profit of £253,920 (2019: £72,792). Customers of TLM Trading Limited donated an amount of £538,249 (2019: £452,154) to TLM Supporting Countries through donations and Gift for Life. From its profit, TLM Trading made a donation of £50,000 to parent company under gift aid.

13

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

Special Pension Account

A lump sum of £1 million was paid into an escrow account on 11 January 2012. Under the terms agreed release of funds from the escrow account to The Leprosy Mission Central Pension Scheme or to the employer would occur after an actuarial valuation when the funding level of the scheme reaches below 80% or combined funding level exceeds 108%. The Scheme actuary would issue a release notice with an amount sufficient to either increase the funding level of the scheme to 80% or to reduce the value to 108% of the statutory funding objectives.

The Leprosy Mission International (Principal Employer) and the Trustees agreed by Deed dated 30 June 2015 that the assets held in the escrow account would transfer to a Special Pension Account to be held by The Leprosy Mission International under similar terms to the escrow account. By agreement with the Pension Fund Trustees, The Leprosy Mission International agreed to pay pension contribution into the Special Pension Account.

The results of the 31 December 2018 triennial valuation showed that the Combined Funding Level of the Scheme was 111% and that the excess funds above the 108% trigger were £706,000. Originally, the Trustees and the Employers agreed that a refund of £600,000 would be taken by TLMI on behalf of all the Employers. After further discussion, it was agreed that the refund amount should be £360,000 and will be paid in equal monthly instalments of £15,000 over a 24-month period commencing on 4 October 2020.

FUTURE PLANS

Global Strategy

During 2018 the Members of The Leprosy Mission Fellowship adopted a new five year global strategy for 2019 – 2023. The International Office will undertake the necessary leading, inspiring, facilitating and enabling roles as the Mission implements this new strategy and we will work with our stakeholders to monitor our impact.

Our long term goal is that we will see zero transmission of leprosy by 2035; in line with this we have the following strategic priorities that also tie in with our other two focus areas (disability and discrimination).

Towards Zero Leprosy Transmission

To contribute to zero leprosy transmission we want to bring about earlier detection and treatment of new leprosy cases. We will do this by improving the focus of TLM resources on key leprosy endemic areas and the effectiveness of initiatives targeted at reducing leprosy transmission. We will seek to improve government ownership of leprosy detection and treatment, integrated with government health systems where possible. We will improve the retention, extension and availability of leprosy expertise and we will improve the effectiveness of leprosyrelated innovations and the evidence base to inform policies, strategies and activities.

Towards Zero Leprosy Disability

Our future ambition is that people affected by leprosy are able to experience healing, dignity and life in all its

fullness. By 2023 we want to see significant improvements in the reduced disability burden in people affected by leprosy and transformation of the physical, mental, emotional and spiritual wellbeing of people affected by leprosy. We will do this by improving the timely detection, monitoring, and treatment of impairments of the eyes, hands and feet; by taking a holistic approach to supporting people affected by leprosy to overcome their

14

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

FUTURE PLANS (Continued)

disabilities; by improving access to rehabilitation services at community, district and referral level for people affected by leprosy; and by improving the self-management of impairments.

Towards Zero Leprosy Discrimination

We want to see zero discrimination, with greater inclusion of, and justice for, people affected by leprosy and disability. We will support improvements in people affected by leprosy confidently standing up for their rights; in participation in public and social life; in awareness raising of rights; a stronger voice of people affected by leprosy; and the inclusion of people affected by leprosy in the disability ‘movement’. We will support improvements in the opportunities for people affected by leprosy to have a sustainable livelihood and the feelings of worth and value felt by people affected by leprosy. We will support improvements in the performance of national governments in implementing the relevant international treaties impacting people affected by leprosy; and also the amount of action taken to repeal, amend or abolish discriminatory legislation and practice.

Christ-Centred

Our Christian identity is at the very heart of our work. The Leprosy Mission was established with a holistic vision of transformation of the Gospel through working to serve people affected by leprosy, who had a special place in Jesus’ earthly ministry. To achieve our aims as a Christian leprosy-focused organisation, we will therefore: reinforce our integral mission principles, work through local churches, develop the spiritual gifts of our people, and put prayer at the heart of our work and decision-making.

Enabling The Leprosy Mission to achieve its goal

In order to deliver on this strategy, we will intentionally invest in four key enabling areas: Members and People, Fundraising, Church and Partnership, and Advocacy. We will be an agile TLM Fellowship, with Members and people who are ‘fit for the future’ (resilient, stronger, healthier and more sustainable). We will do this by improving leadership at all levels; by strengthening an organisational culture in which our people are enabled to achieve their full potential; by developing healthy working environments where people feel engaged and included and where wellbeing is valued; by improving our ability to harness innovation and technology. We will raise £40 million per annum by the end of 2023; cost-effectively increasing unrestricted income by 35%. To do this we will improve our intention, competence, capacity, confidence and joy in unrestricted and institutional fundraising. We want to see a renewed global, national and local commitment to defeating leprosy and promoting inclusion. We will speak with one TLM voice based on the evidence of our practice. We will be known as a leading collaborative player, partnering with like-minded organisations to defeat leprosy and transform lives.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Company law requires the Trustees to prepare Financial Statements for each financial year, which give a true and fair view of the charity and group’s financial activities during the year and of the charity and group’s financial position at the end of the year. In preparing those Financial Statements giving a true and fair view, the Trustees are required to:

15

THE LEPROSY MISSION INTERNATIONAL

REPORT OF THE TRUSTEES

The Trustees also confirm that, so far as each of the Trustees is aware at the time the report is approved:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Mission and which enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Mission and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PRINCIPAL ADVISORS

Bankers Investment Managers Barclays Bank plc Rathbone Investment Management Ltd 8 George Street 8 Finsbury Circus Richmond London Surrey EC2M 7AZ TW9 1JU

Pension Scheme Actuaries First Actuarial LLP Network House Basing View Basingstoke Hampshire RG21 4HG

Auditors Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

The Report of the Trustees and Financial Statements for the year ended 31 December 2020 and the Prayer Guide for the current year can be obtained from the office of TLM International at 80 Windmill Road, Brentford, Middlesex, England TW8 0QH or can be downloaded from our website at www.leprosymission.org.

A resolution to re-appoint Haysmacintyre LLP as auditors of the company will be proposed at the forthcoming Annual General Meeting.

This report was approved by the Trustees and signed on their behalf by:

Mr Colin Osborne Chairperson

28 June 2021

16

THE LEPROSY MISSION INTERNATIONAL

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE LEPROSY MISSION INTERNATIONAL

Opinion

We have audited the financial statements of The Leprosy Mission International for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Trustees. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

17

THE LEPROSY MISSION INTERNATIONAL

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE LEPROSY MISSION INTERNATIONAL (Continued)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees (which incorporates the strategic report and the directors’ 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:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on pages 14&15, 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 group’s and the parent 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 group or the parent 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 is detailed below:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity and company law applicable in England and Wales , and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risk was related to income recognition. Audit procedures performed by the engagement team included:

18

THE LEPROSY MISSION INTERNATIONAL

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE LEPROSY MISSION INTERNATIONAL Continued)

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

Use of 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.

Steven Harper (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors 10 Queen Street Place London EC4R 1AG

Date: 15 July 2021

19

THE LEPROSY MISSION INTERNATIONAL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020 (Incorporating an Income and Expenditure Account)

Notes
INCOME FROM
Donations
3
TLM Trading Ltd: Non-charitable subsidiary
4
Income from investments
5a
Gain on Disposal
Other income
5b
TOTAL INCOME
EXPENDITURE ON
Cost of raising funds
TLM Trading Ltd expenditure
4
Expenditure on Charitable Activities
Nepal earthquake
Covid-19 Emergency Relief
Public health
Hospitals
Disability care & prevention
Community development
Education
Research
Total Expenditure on Charitable Activities
TOTAL EXPENDITURE
NET (EXPENDITURE) / INCOME BEFORE
RECOGNISED GAINS / (LOSSES)
Net gains/(losses) on investment assets
NET (EXPENDITURE) / INCOME
Other Recognised gains /(losses)
Change in multi-employer pension scheme liability
Change in fair value of derivatives
20
Net movement in funds for the year
Balance brought forward at 1 January 2020
Balance carried forward at 31 December 2020		 Unrestricted
Fund
£
-
2,151,482
-
-
-		 Restricted Fund
£
12,267,007
-
112,580
145,905
117,942		 2020
Total
2019
Total
£
£
12,267,007
12,491,370
2,151,482
1,752,096
112,580
137,110
145,905
-
117,942
46,417
2,151,482 12,643,434 14,794,916
14,426,993
499,404
1,920,561		 101,707
-		 601,111
648,489
1,920,561
1,702,304
2,419,965 101,707 2,521,672
2,350,793
-
-
-
-
-
-
-
-		 551,264
384,618
2,112,642
1,875,394
3,095,530
2,428,974
1,173,838
576,175		 551,264
733,815
384,618
-
2,112,642
2,330,747
1,875,394
2,442,922
3,095,530
3,415,106
2,428,974
2,679,736
1,173,838
1,298,636
576,175
261,742
- 12,198,435 12,198,435
13,162,704
2,419,965 12,300,142 14,720,107
15,513,497
(268,483) 343,292 74,809
(1,086,504)
563,434 - 563,434
1,258,552
294,951
-
-		 343,292
-
(99,390)		 638,243
172,048
-
706,000
(99,390)
(98,919)
294,951
5,927,658		 243,902
3,541,364		 538,853
779,129
9,469,022
8,689,893
6,222,609 3,785,266 10,007,875
9,469,022

None of the activities were acquired or discontinued during the above two financial years.

All the activities of the charity are continuing.

The notes on pages 22 to 39 form part of these Financial Statements.

20

THE LEPROSY MISSION INTERNATIONAL

A Company Limited by Guarantee, Registered Company Number: 3591514

CONSOLIDATED AND CHARITY BALANCE SHEETS AT 31 DECEMBER 2020

Notes
FIXED ASSETS
Tangible fixed assets
10
Building Improvements
10
Investments
11
CURRENT ASSETS
Stocks
12
Debtors
13
Prepayments
14
Accrued income from supporting councils
Cash at bank and in hand
Held in sterling
Held in other currencies
CURRENT LIABILITIES
Creditors due within one year
15
NET CURRENT ASSETS
CREDITORS DUE AFTER ONE YEAR
16
NET ASSETS
FUNDS
Unrestricted funds
General reserve
Designated funds:
Fixed assets used by the Mission
19
Fixed assets held on behalf of supporting
councils
19
TLM Trading Ltd (investment)
19
Restricted - other funds
20
Restricted - multi employer pension scheme
20
Restricted - derivatives fair value
20
Restricted - Special pension account
20		 2020
2019
£
£
808,487
865,815
814,257
920,897
7,560,972
7,086,663
9,183,716
8,873,375
166,000
219,830
1,327,727
1,083,584
159,133
226,989
233,618
136,869
823,161
404,670
651,840
423,158
3,361,479
2,495,100
(2,164,217)
(1,515,900)
Consolidated		 2020
2019
£
£
808,487
865,815
814,257
920,897
7,560,972
7,086,663
9,183,716
8,873,375
166,000
219,830
1,327,727
1,083,584
159,133
226,989
233,618
136,869
823,161
404,670
651,840
423,158
3,361,479
2,495,100
(2,164,217)
(1,515,900)
Consolidated		 2020
2019
£
£
802,504
863,866
814,257
920,897
8,237,843
7,559,614
Charity		 2020
2019
£
£
802,504
863,866
814,257
920,897
8,237,843
7,559,614
Charity
8,873,375 9,854,604 9,344,377
219,830
1,083,584
226,989
136,869
404,670
423,158		 -
1,302,981
159,133
233,618
27,428
651,840		 -
1,019,577
226,989
136,869
28,849
423,158
2,495,100
(1,515,900)		 2,375,000
(1,848,626)
526,374		 1,835,442
(1,327,244)
1,197,262 979,200 508,198
(373,103) (383,553) (373,103) (383,553)
10,007,875 9,469,022 10,007,875 9,469,022
3,922,994
1,493,544
129,200
676,871		 3,669,942
1,651,765
133,000
472,951		 3,922,994
1,493,544
129,200
676,871		 3,669,942
1,651,765
133,000
472,951
6,222,609
453,957
-
(132,837)
3,464,146		 5,927,658
560,715
-
(33,447)
3,014,096		 6,222,609
453,957
-
(132,837)
3,464,146		 5,927,658
560,715
-
(33,447)
3,014,096
10,007,875 9,469,022 10,007,875 9,469,022

General reserve for 2020 includes an amount of £1,817,218 (2019: £1,671,241) being the revaluation reserve in respect of accumulated unrealised investment gains.

The results of the charity (TLMI) before consolidation show a total income of £12,705,434 (2019: £12,686,898) and expenditure of £12,834,546 (2019: £13,845,194) resulting in a loss before realised and unrealised investment gains/(losses) of (£129,112) for the year. The result was a surplus of £334,932 after recognising the investment gain for the year.

The notes on pages 22 to 39 form part of these Financial Statements.

Approved and authorised for issue by the Trustees on 28 June 2021 and signed on their behalf by:

Chairman: Mr. Colin Osborne

Treasurer: Mr Philip M Putman

21

THE LEPROSY MISSION INTERNATIONAL

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020

Cash (used in) / generated by operating activities
Note A
Cashflows from investing activities
Investment income
Interest paid
Purchase of tangible fixed assets
Disposal of tangible fixed assets
Decrease in cash available for investment
Purchase of investments
Sale of investments
Increase / (Decrease) in cash in the year
Cash at the beginning of the period
Cash at the end of the period		 2020
£
828,138
112,580
(44,756)
(34,930)
48,500
17,910
(1,286,902)
1,006,633		 2019
£
(707,847)
137,110
(42,086)
(17,139)
-
145,731
(1,659,970)
1,266,588
647,173 (877,613)
827,828 1,705,441
1,475,001 827,828

Note A: Reconciliation of net incoming resources before revaluation to net cash inflow from operating activities.

Net movement in funds in year
(Gains) / Losses on investment
Change in Multi-Employer Pension Scheme Liability
Change in fair value of derivatives
Investment income
Interest paid
Depreciation charge
Decrease / (Increase) in stock
(Increase) in debtors
Decrease / (Increase) in prepayments
(Increase) / Decrease in accrued income
Increase / (Decrease) in creditors
Net cash (outflow)/inflow from operating activities		 2020
2019
£
£
538,853
779,129
(596,881)
(1,258,552)
-
(754,000)
132,837
98,919
112,580
137,110
44,756
42,086
166,879
159,893
53,830
(51,096)
(244,142)
(129,046)
67,856
(39,283)
(96,747)
320,670
648,317
(13,677)
828,138
(707,847)

22

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 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) (Second Edition effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

b) Consolidation

These Financial Statements consolidate the results of The Leprosy Mission International and TLM Trading Ltd., its subsidiary, on a line by line basis. A separate Statement of Financial Activities for The Leprosy Mission International is not presented because the charity has taken advantage of the section 408 of the Companies Act 2006.

c) Going Concern

The accounts are approved during a period where there is much uncertainty as a result of the emergence and international spread of a coronavirus (COVID-19). The Mission is well placed to manage the business and risks we face. We are supported by a strong cash Flow, a sufficient level of resources, a good relationship with Supporting Countries, effect:hope and other organisations to continue supporting the leprosy work. Our planning processes including financial projects take into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure. We acknowledge our pension fund obligation and the results of the 31 December 2018 triennial valuation showed that the Combined Funding Level of the Scheme was in surplus. The Mission therefore believe that there are no material uncertainties that call into doubt the ability of the Mission to continue as a going concern.

d) Income

Income from Supporting Countries and Support Groups, investment income and interest on deposits are dealt with on a receivable basis. All income is included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income, the amount can be quantified with reasonable accuracy and receipt is probable.

e) Fund Accounting

General unrestricted funds include movements on general funds. They are available for use at the discretion of the Trustees for the furtherance of the Mission’s work.

Designated funds are amounts which have been put aside at the discretion of the Trustees which represent net book value of fixed assets in use by the Mission and the investment value of TLM Trading Limited (see note 19).

Restricted funds are amounts which have been given to the Mission for specific purposes and are further detailed in Note 20.

f) Tangible Fixed Assets and Depreciation

Fixed assets are stated at cost less depreciation. Except freehold land, the depreciation is calculated to write off the cost of fixed assets by equal annual instalments over their expected useful life as follows: Freehold and Leasehold property 2%, Building Improvement 10%, Equipment 20%, Computers 33%. The Mission capitalises assets above the value of £500.

23

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 1. ACCOUNTING POLICIES (Continued)

Impairment reviews are conducted when events and changes in circumstances indicate that an impairment may have occurred. If any asset is found to have a carrying value materially higher than its recoverable amount, it is written down accordingly.

g) Investments

Investments are included in the Financial Statements at market value and associated realised and unrealised gains and losses are shown in the Statement of Financial Activities. Unlisted investments, which comprise the investment in TLM Trading Limited, are stated at fair value which is calculated as the net assets of the company. All income from investments is shown on an accrued basis and used for the furtherance of the Mission’s work.

h) Foreign Currencies

Monetary assets and liabilities demonstrated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

i) Stocks

Stocks consist of merchandise for resale by TLM Trading Limited and are valued at the lower of cost and net realisable value. Cost is determined principally on the first in first out basis. Net realisable value is the expected price at which stock can be realised.

j) Operating Lease Agreements

Rentals under operating leases are charged to the Statement of Financial Activities as they fall due.

k) Pension Costs

The Mission operates a non contributory defined contribution pension scheme with Friends Life. Previously it participated in a multi employer defined benefit scheme providing benefits based upon career averaged revalued earnings which was closed on 31 March 2013 for all employees. In accordance with FRS102, deficit funding for the pension scheme in which the Mission participates is accrued at current value in creditors falling due after more than one year. For additional information please refer to Note 18.

l) Grant Making

Grants are given annually to programmes, which fit the vision and strategy approved by the Board. All programmes are required to prepare Annual Plans and Budgets. Grants are paid in accordance with the approved Annual Plan/Budgets.

24

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 1. ACCOUNTING POLICIES (Continued)

m) Taxation

The Leprosy Mission International has a wholly owned trading subsidiary, TLM Trading Limited which is a registered company in England and Wales. Part of the profit is donated by Gift Aid to The Leprosy Mission International.

The Leprosy Mission International is a registered charity and is thus exempt from tax on income and gains falling within chapter 3 of part II of the Corporation Tax Act 2010 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

n) Trade Income

Revenue from TLM Trading Ltd comprises income from the sale of goods through its catalogue and online website. Where applicable, income is realised net of value added tax.

o) Expenditure

All expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated on the basis of time spent.

Cost of generating funds: Includes costs associated with activities which are directly involved in generating income for the Mission.

Charitable activities: Includes payment of grants to programmes and support costs apportioned as shown in Note 7a. Grants are paid in accordance with the budget approved by the Board.

Governance costs: Includes costs associated with the governance arrangements of the Mission which include audit fees and expenses relating to governance structure.

Support costs: Includes costs associated with the day to day management of the Mission. These costs cannot be directly associated to a particular activity of the business and accordingly are apportioned on the basis of time spent as shown in Note 7b.

p) Fair value of derivatives

The Charity has entered into foreign currency forward exchange contracts with financial institutions. Fair value is derived as the movement in the forward exchange rate that has been achieved between the dates the contract was entered into and the balance date.

q) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

r) 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.

25

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 1. ACCOUNTING POLICIES (Continued)

s) Creditors and provisions

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

t) Judgements and estimates

In preparing these financial statements, the Trustees are required to make judgements, estimates and assumptions that affect the application of the Mission's accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. Similarly, the Trustees do not consider that there are any areas of significant estimation uncertainty or judgement within the financial statements.

NOTE 2. STATEMENT OF FINANCIAL ACTIVITIES

The net movement in funds is shown after charging:

Consolidated Charity
2020 2019 2020 2019
£ £ £ £
Audit fee - parent company 17,100 15,940 17,100 15,940
- subsidiary 8,000 7,600 -
Depreciation - owned assets* 163,079 156,093 159,600 154,940
- leased assets 3,800 3,800 3,800 3,800
Investment managers' charges 22,616 23,686 22,616 23,686
Foreign exchange (gain) (966) (50,794) (966) (50,794)
Bank interest 44,756 42,086 13,207 13,103
Investment (gain) on TLM Trading Ltd (203,920) (120,792) (203,920) (120,792)

NOTE 3. DONATIONS

Net donations represent funds raised by TLM Fellowship Member Countries and other donor organisations. Supporting Member Countries’ own costs of maintenance, administration, and fundraising have been deducted from their income and included in their own accounts. All income received by The Leprosy Mission International during the year is shown in the Statement of Financial Activities. Unspent Restricted Fund balances are carried forward to subsequent years. Comparisons between years are affected due to actual exchange rates applied in respective periods.

26

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 3. DONATIONS (Continued)

2020 2020 2020 2019 2019 2019
Unrestricted Restricted Total Unrestricted Restricted Total
TLM Supporting Member Countries £ £ £ £ £ £
Australia - 994,597 994,597 - 1,048,385 1,048,385
Belgium - 31,133 31,133 - 26,435 26,435
Denmark - 273,301 273,301 - 149,193 149,193
England & Wales - 4,526,695 4,526,695 - 4,523,956 4,523,956
Finland - 12,602 12,602 - 12,499 12,499
France - 92,480 92,480 - 98,916 98,916
Germany - 129,998 129,998 - 65,820 65,820
Hungary - 79,925 79,925 - 105,874 105,874
Netherlands - 786,666 786,666 - 727,175 727,175
New Zealand - 1,603,287 1,603,287 - 1,526,412 1,526,412
Northern Ireland - 443,853 443,853 - 271,067 271,067
Scotland - 419,564 419,564 - 487,024 487,024
Southern Africa - 164,942 164,942 - 158,396 158,396
Sweden - 764,466 764,466 - 997,464 997,464
Switzerland - 1,158,920 1,158,920 - 956,375 956,375
Other Donor Organisations:
ALM: AIM / ASHA - 11,294 11,294 - 359,081 359,081
Celgene Corporation - - - - 61,066 61,066
effect:hope - 553,768 553,768
 - 534,933 534,933
Disabled Peoples' International - - - - 34,225 34,225
F K Norway - 45,761 45,761
 - 117,063 117,063
Heavens Family - 3,108 3,108 - 103,474 103,474
Louisiana Churches - 3,884 3,884 - - -
Leprosy Research Initiative (LRI) - 27,306 27,306
 - 28,492 28,492
University of Birmingham - 110,108 110,108 - - -
Sasakawa - 10,937 10,937
 - - -
Probitas - Spain - - - - 21,274 21,274
Solidarite Protestante - 7,065 7,065 - 7,327 7,327
TLM Italy - - - - 33,806 33,806
TLM Singapore - - - - 11,235 11,235
TLM Spain - 11,350 11,350 - 8,024 8,024
World Servant - - - - 16,382 16,382
- 12,267,007 12,267,007 - 12,491,370 12,491,370

TLM Trading Limited received £538,249 (2019: £452,154) as general donations and Gift for Life donations from its customers. In recognition of the use of donor database of TLM Supporting countries, the donations were given to the respective TLM Supporting countries. These donations are accounted for in the accounts of the respective TLM Supporting country.

TLM England & Wales
TLM Northern Ireland
TLM Scotland		 2020
2019
£
£
464,044
392,872
27,439
25,250
46,766
34,032
538,249
452,154

27

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 4. TRADING ACTIVITIES – TLM TRADING LIMITED

TLM Trading Limited, (Company Number: 3045864) an incorporated UK company, is a wholly owned subsidiary. A summary of its trading results is shown below. Audited accounts have been filed with the Registrar of Companies.

Turnover
Bank interest and royalties receivable
Other operating income*
Cost of sales
Distribution costs
Administrative expenses
Operating Profit before Taxation and defined benefit pension scheme
Gift Aid donation to TLM International
Tax charge
Remeasurement gain / (loss) on defined benefit pension scheme
Gain for the financial year
The aggregate of the assets, liabilities and funds was:
Total assets less current liabilities
Liabilities falling due after more than one year and provisions
Funds		 2020
2019
£
£
1,996,314
1,609,993
1,012
1
189,155
177,102
2,186,481
1,787,096
(729,664)
(599,449)
(812,673)
(767,517)
(384,650)
(347,338)
(1,926,987)
(1,714,304)
259,494
72,792
(50,000)
-
(5,574)
-
-
48,000
203,920
120,792
472,951
352,159
203,920
72,792
676,871
424,951

*Administrative expenses include a fee of £12,000 (2019: £12,000) for accounting services by the parent company which is eliminated upon consolidation.

**Other operating income includes £35,000 (2019:£35,000) from the parent charity for promoting development of artisan products, which is eliminated upon consolidation.

NOTE 5a. INVESTMENT INCOME

NOTE 5a. INVESTMENT INCOME
Equities
Fixed interest securities
Interest on cash deposits
NOTE 5b. OTHER INCOME
Other income
Gift aid		 2020
£
83,875
28,692
14		 2019
£
107,392

27,558
2,160
112,580 137,110
2020
£
73,851
44,091		 2019
£
4,847
41,570
117,942 46,417

28

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 6. EXPENDITURE ON CHARITABLE ACTIVITIES

Most of the Mission’s programmes are carried out through grants to associated local organisations, which provide medical care and sustainable benefits for individuals and communities affected by leprosy. The total amount spent in 2020 is included in the Statement of Financial Activities under Direct Charitable Expenditure and the Mission has supported more than 168 projects in more than 18 countries.

The programmes listed below are the major grants given during the year including the 50 largest programmes, representing more than 75% of total programme expenditure. These amounts include the associated support costs.

associated support costs.
Country/Project 2020 2019
£ £
Angola
Rehabilitation Projects Leprosy Control/Rehab - 11,266
Bangladesh
Advocacy for Employment Community Programme 166,740 127,067
Chittagong Hill Tracts Leprosy Control 127,750 177,108
Chittagong Community Rehabilitation Rehabilitation 120,301 117,305
Dhaka Co-ordination Supervision 115,789 134,742
Emergency Flood Relief Relief/Rehabilitation - 30,623
Gaibandha-Jaypurhat LCP Leprosy Control Prog (LCP) 100,679 28,827
Nilphamari (DBLM) Hosp/Rehab/Research/Train 439,706 404,868
Dhaka CBR Rehabilitation 89,874 111,430
Leprosy Field Research Research 263,043 258,724
Integrated Leprosy Health Systems Community Programme 262,446 228,958
Covid 19 Emergency Relief Relief/Rehabilitation 67,760 -
Chad
Five Prefectures Technical Support 163,090 142,350
Covid 19 Response Relief/Rehabilitation 7,156 -
DR Congo
Kasai Leprosy Projects Leprosy Control/Tech Support 292,139 290,670
Bas Congo East & West Leprosy/TB Control/Rehab - 20,220
South Kivu, Maniema & Mingwanga Leprosy Control 272,669 360,078
Sankuru Leprosy/TB Control 38,206 16,611
SCoKC - Stop the spread of C-19 Relief/Rehabilitation 27,174 -
Ethiopia
ENAPAL/Woreda 1 Urban Slum Dev Rehabilitation 186,333 183,284
Covid 19 Emergency Relief Relief/Rehabilitation 10,028 -
India
Bankura Leprosy Hospital Hospital Prog/Training 29,979 27,651
Bankura VTC Vocational Training 64,947 62,301
Brighter Future Development Community Programme 87,903 83,360
Comm Aware & Disab. Prevention Community Programme 315,795 404,513
Champa VTC Vocational Training 53,148 32,707
Chandkuri Leprosy Hospital Hospital Programme 149,010 78,255
Inclusive Empowerment (SOAR) Rehabilitation 140,317 162,091
Faizabad Leprosy Hospital Hospital Programme - 1,454
Faizabad VTC Vocational Training 58,796 61,524
Kolkata Leprosy Hospital Hospital Programme 141,183 182,592
Kothara Leprosy Hospital Hospital Programme 55,698 66,897
Miraj Leprosy Hospital & Research Hospital Programme/Research 188,460 170,543
Muzzaffarpur Leprosy Hospital Hospital Programme 7,778 33,501
Naini Hospital Hospital Programme 203,857 215,731
Nashik VTC Vocational Training 73,224 76,484

29

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 6. EXPENDITURE ON CHARITABLE ACTIVITIES (Continued)

Country/Project
Country/Project 2020 2019
£ £
India (continued)
Purulia Leprosy Hospital Hospital Programme 284,865 586,917
Rehabilitation (nationwide) Rehabilitation 76,614 78,251
Salur Leprosy Hospital Hospital Programme 168,871 152,883
Mass Media Centre Health Education 72,164 94,139
Vadathorasalur, Vizianagaram VTC Vocational Training 63,424 41,458
Women's Empowerment / WEALTH Community Programme 151,242 138,138
India Office Supervision Tech.Support/Supervision 362,812 223,652
Mozambique
Cabo Delgado/ALEMO/Iphiro Yohoolo Leprosy/TB Control/Education 255,637 483,634
Myanmar
Mawlamyine Hospital Hospital Programme/Rehab 200,255 358,558
GRACE/RLII Community/Empowerment 164,723 277,585
Transformation & Renewal E.Shan Relief/Rehabilitation 62,473 80,919
7-UP Disability Advocacy Project Advocacy - 57,860
Strategic Partnership Programme Community Programme 34,179 34,196
Nepal
Anandaban Hospital Hospital Programme 311,457 387,532
Anandaban Research Research/Training 143,737 159,748
Anandaban Trauma Centre Hospital Programme 578,333 539,544
Central Region - Nepal Technical Support 24,172 48,986
CBR/CTY/LCH Nepal Community Programme 214,778 349,338
FOUND Community Programme 315,410 -
HEAL 379,876 231,907
International Nepal Fellowship Community Programme 15,584 16,846
Nepal Leprosy Fellowship Community Programme 77,099 85,361
Nepal Earthquake Relief/Rehabilitation - 194,271
Nepal Floods/Disaster Resilient Community Relief/Rehabilitation - 78,142
Nepal - Covid 19 Response Relief/Rehabilitation 146,773 -
RIGHT 1 Community Programme 95,268 -
Satellite Clinic Birathnagar Community Programme 9,985 30,606
Niger
CSL Danja/Niamey & Tillabery Leprosy Control/Rehab 370,895 459,337
Covid 19 Emergency Response for PAL Relief/Rehabilitation 24,863 -
Nigeria
Integrated Leprosy & LF Case Finding Leprosy Control 57,110 97,778
Integrated NTD Control in Zamfara Leprosy Control 70,807 45,672
Prevention & Management of Impairment Rehabilitation - 30,892
Kwara/Kebbi/Kogi/Niger States Leprosy Control/Rehab 205,209 421,736
Orthopaedic Rehabilitation 128,549 106,078
Wheels That Heal Community Programme 51,118 96,914
Nigeria Co-ordination, Harnessing Resources Supervision 106,463 120,851
Papua New Guinea
Bougainville Healthy Community Project Rehabilitation 780,286 896,456
Empowerment Project Rehabilitation 394,589 346,104

30

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 6. EXPENDITURE ON CHARITABLE ACTIVITIES (Continued)

Country/Project
Main Activity
2020
£
South Africa
Leprosy Control Programme
Leprosy Control
184,900
Sri Lanka
Empower Communities & Integration
Community Programme
48,725
Sudan
Omdurman & Khartoum
Tech.Support/Supervision
32,148
Tanzania
Hombolo Hospital & Housing Project
Leprosy Control/Rehab
29,947
Thailand
McKean Rehab.Centre - Chiang Mai
Rehabilitation
30,436
Timor Leste
National Programme
Leprosy Control
330,909
Other grants sent to projects in above countries
669,392
12,198,435		 2019
£
181,195
188,885
41,951
42,418

31,486

340,669
680,076
13,162,704

NOTE 7a. EXPENDITURE

2020 2019 2019
Grants Other Direct Support 2020 Grants Other Direct Support 2019
Costs Costs Total Costs Costs Total
£ £ £ £ £ £ £ £
Cost of generating funds
Expenditure on raising funds - 601,111 - 601,111 - 648,489 - 648,489
TLM Trading Ltd - 1,920,561 - 1,920,561 - 1,702,304 - 1,702,304
Charitable activities
Nepal earthquake / Flood Relie 551,264 - - 551,264 733,815 - - 733,815
Covid-19 Emergency Relief 384,618 - - 384,618 - - -
Public health 1,914,239 - 198,403.00 2,112,642 2,070,681 - 260,067 2,330,748
Hospitals 1,699,271 - 176,123.00 1,875,394 2,170,339 - 272,583 2,442,922
Disability care & prevention 2,804,821 - 290,709.00 3,095,530 3,034,046 - 381,060 3,415,106
Community development 2,200,863 - 228,111.00 2,428,974 2,380,729 - 299,007 2,679,736
Education 1,060,313 - 113,525.00 1,173,838 1,149,828 - 148,808 1,298,636
Research 522,065 - 54,110.00 576,175 232,536 - 29,205 261,741
11,137,454 - 1,060,981 12,198,435 11,771,974 - 1,390,730 13,162,704
Total Expenditure 11,137,454 2,521,672 1,060,981 14,720,107 11,771,974 2,350,793 1,390,730 15,513,497

31

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 7b. ANALYSIS OF SUPPORT COSTS

International Partnership
Governance Cost
Finance
Quality Assurance
Advocacy
Research Support
Programme Support
Human Resources
Central Administration
Pension Administration Cost
Foreign currency gains		 2020
2019
£
£
244,560
509,870
64,764
85,250
162,097
146,650
128,087
128,321
40,524
54,995

60,786

36,663
121,573
219,978
121,573
54,995
60,787

91,658

57,200
113,140
(970)
(50,790)
Charity
1,060,981
1,390,730

NOTE 8a. STAFF COSTS

NOTE 8a. STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
Number of staff		 2020
2019
£
£
1,028,367
1,098,122
95,981
92,725
147,094

213,869
Consolidated		 2020
2019
£
£
818,160
901,557
75,480
74,166
125,863
186,512
Charity
1,271,442 1,404,716 1,019,503

1,162,235
Number
29		 Number
30		 Number
Number
24
25

Staff costs include the emoluments of cross-cultural staff working on TLM supported programmes and the allocation of these costs is shown in Note 7. The number of staff whose emoluments (including benefits in kind but excluding pension contributions) amounted to more than £60,000 were as follows.

£90,001 - £100,000 2020
2019
Number
Number
1
1
1
1

NOTE 8b. HOLIDAY PAY

The Mission operates holiday entitlement of 28 working days per annum to its full-time staff and part-time staff’s entitlement is pro-rata accordingly. The period for calculating annual leave is from 1 January to 31 December and non-cumulative. The accrued holiday entitlement is immaterial for FRS102 disclosure purposes.

NOTE 8c. REMUNERATION OF KEY MANAGEMENT PERSONNEL

Key management personnel are deemed to be those having authority and responsibility delegated to them by the trustees of the Charity and the Directors of TLM Trading Ltd for planning directing, directing and controlling the activities of the Mission. During 2020 the Charity considers its key management personal comprises of the International Director and the Trading company considers its key management personnel comprises of the Chief Executive officer. Remuneration and pension for these employees amounted to £162,787 (2019: £155,076).

32

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 9. TRUSTEES EMOLUMENTS AND REIMBURSED EXPENSES

The Trustees received no remuneration or retirement benefits for their services. 3 trustees (2019: 12) were reimbursed for travel expenses and out of pocket expenses during the year, amounting to a combined total of £648 (2019: £19,348).

The Leprosy Mission International has purchased indemnity insurance costing £855 (2019: £537) that provides cover:

NOTE 10. TANGIBLE FIXED ASSETS

Consolidated
Cost
01 January 2020
Additions
Disposal
31 December 2020
Depreciation
01 January 2020
Charge for the year
Adjustment for disposal
31 December 2020
Net Book Value
31 December 2020
31 December 2019		 Building
Improvement
£
1,151,121
11,395
-		 Freehold
Property
£
1,153,439
-
(48,500)		 Leasehold
Property
£
190,000
-
-		 Equipment
Total
& Computers
2020
£
£
150,426
2,644,986
23,535
34,930
-
(48,500)
1,162,516 1,104,939 190,000 173,961
2,631,416
230,224
118,035
-		 471,474
14,738
(19,405)		 57,000
3,800
-		 102,500
861,198
30,306
166,879
-
(19,405)
348,259 466,807 60,800 132,806
1,008,672
814,257 638,132 129,200 41,155
1,622,744
920,897 681,965 133,000 50,850
1,786,712

The book cost at 31 December 2020 represents tangible fixed assets used for:

Fundraising
Long-served retired staff
Administration offices		 Freehold
Property
£
-
131,500
2,135,955		 Leasehold
Property
£
190,000
-
-		 Equipment
Total
& Computers
£
£
24,370
214,370
-
131,500
149,591
2,285,546
173,961
2,631,416
2,267,455 190,000

33

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 10. TANGIBLE FIXED ASSETS (Continued)

Charity
Cost
01 January 2020
Addition
Disposal
31 December 2020
Depreciation
01 January 2020
Charge for the year
Disposal
31 December 2020
Net book value
31 December 2020
31 December 2019		 £
1,151,121
11,395
-
Building
Improvement		 Freehold
Property
£
1,153,439
-
(48,500)		 Leasehold
Property
£
190,000
-
-		 Equipment
Total
& Computers
2020
£
£
99,688
2,594,248
13,098
24,493
-
(48,500)
1,162,516 1,104,939 190,000 112,786
2,570,241
230,224
118,035
-		 471,474
14,738
(19,405)		 57,000
3,800
-		 50,787
809,485
26,827
163,400
-
(19,405)
348,259 466,807 60,800 77,614
953,480
814,257 638,132 129,200 35,172
1,616,761
920,897 681,966 133,000 48,902
1,784,765

Properties

The Mission is the beneficial user of the properties registered in the name of The Leprosy Mission Corporation, a company limited by guarantee. The Leprosy Mission Corporation is also the registered owner of properties which are provided for the accommodation of retired staff and for Supporting Member Countries.

The Leasehold property is also held on behalf of one Supporting Member Country.

NOTE 11. INVESTMENTS

The fund is held in two portfolios with the sterling investments being quoted on the London Stock Exchange and other currency investments quoted in Frankfurt, Tokyo, New York or Zurich, with the exception of TLM Trading Limited which is stated below. The Investment Managers operate within the guidelines given by the Trustees, which includes an ethical investment policy and any single equity investment held in the portfolio should not represent more than 5% of the portfolio value.

Investments in trading subsidiaries

Proportion of
Name of Subsidiary Holding Voting Rights Registered In Investment
£
TLM Trading Limited Ordinary shares 100% England 200,000

34

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 11. INVESTMENTS (Continued)

Market value at 1 January 2020
Less: Portfolio cash
Additions at cost
Disposals
Market Value (less: Cash) at 31 December 2020
Gain
Market value at 31 December 2020
Add: Cash
Analysis of investments
Equities
Fixed interest securities
Cash deposit
Cost at 31 December 2020
Accumulated unrealised investment gain/(loss)
at 31 December 2020		 UK
£
5,935,721
(86,086)		 Overseas
£
1,150,942
1,150,942
194,999
(231,923)
1,114,018
1,148,248
34,230
1,148,248
-		 2020
Consolidated
£
7,086,663
(86,086)		 TLM Trading
(UK)
£
472,951		 2020
Charity
£
7,559,614
(86,086)
5,849,635
1,091,903
(1,126,192)		 7,000,577
1,286,902
(1,358,115)		 472,951
-
-		 7,473,528
1,286,902
(1,358,115)
5,815,346
6,344,550
529,204
6,344,550
68,174		 6,929,364
7,492,798
563,434
7,492,798
68,174		 472,951
676,871
203,920
676,871
-		 7,402,315
8,169,669
767,354
8,169,669
68,174
6,412,724 1,148,248 7,560,972 676,871 8,237,843
5,535,811
808,739
68,174		 1,148,248
-
-		 6,684,059
808,739
68,174		 676,871
-
-		 7,360,930
808,739
68,174
6,412,724 1,148,248 7,560,972 676,871 8,237,843
4,924,384 819,370 5,743,754 330,250 6,074,004
1,488,340 328,878 1,817,218 346,621 2,163,839

35

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 12. STOCKS

NOTE 12. STOCKS
Goods for resale at lower of cost and net realisable value
NOTE 13. DEBTORS
Trade debtors
Derivatives
Other debtors		 2020
2019
2020
2019
£
£
£
£
166,000
219,830
-
-
Charity
Consolidated
2020
2019
2020
2019
£
£
£
£
23,358

51,028
-
-
-
-
-

-
1,304,369
1,032,556
1,302,981
1,019,577

Charity
Consolidated
1,327,727
 1,083,584
1,302,981		 1,019,577

The Mission approved a secured debenture loan of £250,000 to TLM Trading Limited with interest being charged at market rate, which showed a nil balance at the year-end. This was to enable TLM Trading Limited to develop trading partnerships to create employment opportunities and income generation for people affected by leprosy and their families.

Included in ‘other debtors’ is an amount of £1,029,350 of payments made to TLM Trust India for funding its charitable activities and the amount will be cleared upon sale of a property in India.

NOTE 14. PREPAYMENTS

Prepayments represent funds remitted overseas during December 2020 to be spent in 2021 and to meet the requirements of the 2021 expenditure budget and therefore will be included in the accounts for 2021. These funds represent an advance on activities to be performed in 2021.

NOTE 15. CREDITORS DUE WITHIN ONE YEAR

Accruals
Trade creditors
Other creditors
Derivatives
Social security and other taxes
Bank overdraft		 2020
2019
£
£
563,673
551,599
123,362
95,864
730,098
538,258
132,847
-
81,407
49,908
532,830
280,271
Consolidated		 2020
2019
£
£
563,673
551,599
123,362
95,864
730,098
538,258
132,847
-
81,407
49,908
532,830
280,271
Consolidated		 2020
2019
£
£
525,987
543,184
-
-
634,494
483,162
132,847
-
22,468
20,627
532,830
280,271
Charity
2,164,217 1,515,900 1,848,626
1,327,244

The Mission has an overdraft arrangement with Barclays Bank plc of £1,000,000, which is secured against the office building and against its investment portfolio, which is managed by Rathbones Investment Management Limited.

36

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 16. CREDITORS DUE AFTER ONE YEAR

2020
2019
2020
2019
£
£
£
£
Resettlement fund
99,208
131,901
99,208
131,901
Superannuation fund
98,682
97,282
98,682
97,282
LT Severance Pay
175,213
154,370
175,213
154,370
Multi-employer pension scheme
-
-
-
-
373,103
383,553
373,103
383,553
Charity
Consolidated		 2020
2019
2020
2019
£
£
£
£
Resettlement fund
99,208
131,901
99,208
131,901
Superannuation fund
98,682
97,282
98,682
97,282
LT Severance Pay
175,213
154,370
175,213
154,370
Multi-employer pension scheme
-
-
-
-
373,103
383,553
373,103
383,553
Charity
Consolidated		 2020
2019
2020
2019
£
£
£
£
Resettlement fund
99,208
131,901
99,208
131,901
Superannuation fund
98,682
97,282
98,682
97,282
LT Severance Pay
175,213
154,370
175,213
154,370
Multi-employer pension scheme
-
-
-
-
373,103
383,553
373,103
383,553
Charity
Consolidated
383,553
373,103		 383,553

The Resettlement fund and the Superannuation fund are accrued benefits to the personnel who are working in the field which are payable at the time they leave the Mission. The total liability does not exceed the balance held at the closing date and is represented by cash held on deposit.

The Multi-employer pension scheme liability was an amount recognised for the past employees of the charity in accordance with FRS102. The charity recognised the liability for deficit repayments and discounted it back to its net present value. As there was no deficit repayment plan in place from 1 January 2020, there was no liability at 31 December 2020 or 2019. .

NOTE 17. RELATED PARTY TRANSACTIONS

TLM Trading Limited is a wholly owned subsidiary of The Leprosy Mission International, whose financial statements are publicly available (see Note 4: Trading Activities- TLM Trading Limited).

At 31 December 2020, an amount of £33,577 (2019: £45,265) was owed by the parent company to its subsidiary through its inter-company account, which is settled during the year. There is no interest charged and no fixed repayment.

NOTE 18. PENSION SCHEME

The Mission operated a non-contributory multi-employer pension scheme providing benefits based upon career averaged re-valued earnings. The career averaged re-valued earnings scheme was closed to new members effective from 12 November 2007 and with effect from 31 March 2013 the scheme was closed to new accruals. The Mission’s pension contributions are determined by a qualified actuary on the basis of triennial valuations. The actuarial valuation was made as at 31 December 2018 using the projected unit valuation method and the market value of the assets represented 100% of the market value of the liabilities.

The individual accounts of each of the participating employers need to reflect the obligation they have to the Scheme. The Scheme cannot identify each employer’s share of the total Scheme assets. Therefore, it is not possible to use defined benefit accounting for an individual company. Accordingly, the scheme is accounted for as if it is a defined contribution scheme.

The most recent actuarial triennial valuation was completed as at 31 December 2018. The valuation of the scheme revealed the scheme is fully funded. The trustees and the employers have agreed that an additional contribution of £57,200 per annum will be paid to cover the administrative cost of the scheme. This amount will be paid into the Special Pension Account held by The Leprosy Mission International in equal monthly instalments from 1 January 2020 for a period of 3 years.

By agreement with the pension Trustees, The Leprosy Mission International has agreed to pay the above pension contribution into the Special Pension Account (refer Note 20).

FRS 102 requires an entity that has entered into an agreement to reduce the historic deficit on a multiemployer pension scheme, to recognise the liability in accordance with FRS 102 section 28.13 and 28.13A.

37

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 18. PENSION SCHEME (Continued)

The last valuation of the Scheme was carried out with an effective date of 31 December 2018. This valuation revealed the Scheme was in surplus on the agreed Statutory Funding Objective basis agreed between the employers and the pension Scheme trustees. As a result, no Recovery Plan was required. Therefore, the FRS102 liability as at 31 December 2020 is Nil (2019: Nil)

In addition, the Charity has a trading subsidiary, which is included in the consolidated financial statements. The trading subsidiary also have a multi-employer pension scheme which is required to recognise its liability in accordance with FRS 102 section 28.13 and 28.13A. At 31 December 2020 this liability is Nil. (2019: Nil). The impact of bringing these liabilities to account has resulted in change in the value of the investment. The next actuarial valuation is due at 31 December 2021 and the results are expected by November 2022.

A Group Personal Pension Scheme (GPP) has been set up with Friends Life. Employers make a contribution of 10% of the monthly pensionable salary to Friends Life.

The Mission’s pension cost for the year amounted to £125,683 (2019: £186,512).

NOTE 19. DESIGNATED FUNDS

Fixed assets used by the Mission
Fixed assets held on behalf of Supporting Countries
TLM Trading Limted
Fixed assets used by the Mission
Fixed assets held on behalf of Supporting Countries
TLM Trading Limted		 Balance
01.01.20
£
1,651,765
133,000

472,951		 Consolidated
Balance
Movements
31.12.20
£
£
(158,221)
1,493,544
(3,800)
129,200
203,920
676,871
2,257,716 £41,899
2,299,615
Balance
01.01.19
£
1,792,667
136,800
352,159		 Consolidated
Balance
Movements
31.12.19
£
£
(140,902)
1,651,765
(3,800)
133,000
120,792
472,951
2,281,626 (23,910)
2,257,716

Designated funds

Designated funds are amounts which have been set aside by the Trustees.

Fixed assets used by the mission / fixed assets held on behalf of supporting countries

At 31 December 2020 fixed assets used by the Mission and held on behalf of Supporting Countries have been shown at net book value as at this date.

TLM Trading Limited

The fund represents the net asset value of the charity’s subsidiary company, TLM Trading Limited at 31 December 2020.

38

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 20. RESTRICTED FUNDS

Nepal Post EQ and Trauma Centre
Covid-19 Emergency Relief
Public health
Hospitals
Disability care & prevention
Community programmes
Education
Research
Special pensions account
Derivatives fair value
Nepal Post EQ and Trauma Centre
Nepal Flood relief
Public health
Hospitals
Disability care & prevention
Community programmes
Education
Research
Special pensions account
Multi employer pension scheme
Derivatives fair value		 Balance
Income
Expenditure
01.01.20
£
£
£
560,715
379,642
551,264
-
384,618
384,618
-
2,112,642
2,112,642
-

1,875,394
1,875,394
-

3,095,530
3,095,530
-

2,451,838
2,428,974
-

1,208,838
1,208,838
-

618,175

576,175
3,014,096
-

-
(33,447)
-

-		 Balance
Income
Expenditure
01.01.20
£
£
£
560,715
379,642
551,264
-
384,618
384,618
-
2,112,642
2,112,642
-

1,875,394
1,875,394
-

3,095,530
3,095,530
-

2,451,838
2,428,974
-

1,208,838
1,208,838
-

618,175

576,175
3,014,096
-

-
(33,447)
-

-		 Movements
Balance
31.12.20
£
£
-
389,093
-
-
-
-
-
-

-

-

-
22,864

-

-

-
42,000

450,050
3,464,146
(99,390)
(132,837)
3,541,364
12,126,677
12,233,435		 350,660
3,785,266
Balance
Income
Expenditure
01.01.19
£
£
£
501,858
762,161
703,304
30,511
-
30,511
-
2,330,747
2,330,747
230,000
2,212,922
2,442,922
-
3,415,106
3,415,106
-
2,679,736
2,679,736
-
1,298,636
1,298,636
-

261,742
261,742
2,351,091
-
-
(754,000)
-
-
65,472
-
-		 Movements
Balance
31.12.19
£
£
-
560,715
-
-
-
-
-
-
-
-
-
-
-
-
-
-
663,005
3,014,096
754,000
-
(98,919)
(33,447)
2,424,932 12,961,050
13,162,704		 1,318,086
3,541,364

Restricted funds

Restricted funds are amounts, which have been given to the Mission for specific purposes and are held in cash deposits.

Nepal earthquake

This represents fund raised in respect of the Nepal earthquake, which had not been utilised at 31 December 2020.

Special pensions account

In 2012, the Mission agreed with the Pension Fund Trustees a payment of £1,000,000 into an escrow account as part of the continued funding conditions of the Scheme. Depending upon the outcome of subsequent actuarial valuations, monies would remain in escrow or be paid into the Scheme or returned to the charity. The Leprosy Mission International and the Trustees agreed by Deed dated 30 June 2015 that the assets held in the escrow account would transfer to a Special Pension Account to be held by The Leprosy Mission International under similar terms to the escrow account. The value of the investment as at 31 December 2020 was £3,464,146 and is included in investments in Note 11.

39

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 20. RESTRICTED FUNDS (Continued)

Multi-employer pension scheme

The Mission and its subsidiary have a payment plan to reduce their share of the historical deficit on the defined benefit pension scheme. This fund represents the liability at its net present value at 31 December 2020.

Fair value of derivatives

The Mission has entered into foreign currency forward exchange contracts with financial institutions. FRS 102 requires an entity to value derivatives at fair balance. The purpose of these forward exchange contracts is to hedge grant payments in foreign currencies to programme implementing countries, which reduces the risk of uncertainty. Fair value is derived as the movement in the forward exchange rate that has been achieved between the date the contract was entered into and the balance date. The fund represents the fair value of those contracts at 31 December 2020.

NOTE 21. NET ASSETS BY FUND

Fixed Assets
Investments
Net Current Assets
Creditors due after 1 year
Fixed Assets
Investments
Net Current Assets
Creditors due after 1 year		 Unrestricted
Restricted
Total 2020
£
£
£
1,622,744
-
1,622,744
4,096,826
3,464,146
7,560,972
876,142
321,120
1,197,262
(373,103)
-
(373,103)
6,222,609
3,785,266
10,007,875
Unrestricted
Restricted
Total 2019
£
£
£
1,786,712
-
1,786,712
4,072,567
3,014,096
7,086,663
451,932
527,268
979,200
(383,553)
-
(383,553)
5,927,658
3,541,364
9,469,022

NOTE 22. FINANCIAL INSTRUMENTS

The Leprosy Mission International places deliverable foreign exchange forward contracts to manage its grant payment exposure to foreign currency exchange risks.

At 31 December 2020 The Leprosy Mission International had £2,187,500 of foreign currency forward contracts in place. The unrealised loss on these forward contracts was £(132,837). The fair value of these foreign currency forward contracts is included in restricted funds in Note 20.

NOTE 23. POST BALANCE SHEET EVENTS AND CONTINGENT LIABILITIES

There were no post Balance Sheet events or contingent liabilities at the balance sheet date.

40

THE LEPROSY MISSION INTERNATIONAL

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 24. PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES

Notes
INCOME FROM
Donations
3
TLM Trading Ltd: Non-charitable subsidiary
4
Income from investments
5a
Other income
5b
TOTAL INCOME
EXPENDITURE ON
Cost of raising funds
TLM Trading Ltd expenditure
4
Expenditure on Charitable Activities
Nepal earthquake
Public health
Hospitals
Disability care & prevention
Community development
Education
Research
Total Expenditure on Charitable Activities
TOTAL EXPENDITURE
NET (EXPENDITURE) / INCOME BEFORE
RECOGNISED GAINS / (LOSSES)
Net gains/(losses) on investment assets
NET (EXPENDITURE) / INCOME
Other Recognised gains /(losses)
Change in multi-employer pension scheme liability
Change in fair value of derivatives
20
Net movement in funds for the year
Balance brought forward at 1 January 2019
Balance carried forward at 31 December 2019		 Unrestricted
Fund
£
-
1,752,096
-
-		 Restricted Fund
2019
Total
£
£
12,491,370
12,491,370
-
1,752,096
137,110
137,110
46,417
46,417
1,752,096 12,674,897
14,426,993
648,489
1,702,304		 -
648,489
-
1,702,304
2,350,793 -
2,350,793
-
71,736
75,310
56,280
82,607
40,030
8,190		 733,815
733,815
2,259,011
2,330,747
2,367,612
2,442,922
3,358,826
3,415,106
2,597,129
2,679,736
1,258,606
1,298,636
253,552
261,742
334,153 12,828,551
13,162,704
2,684,946 12,828,551
15,513,497
(932,850) (153,654)
(1,086,504)
595,547 663,005
1,258,552
(337,303)
-
-		 509,351
172,048
706,000
706,000
(98,919)
(98,919)
(337,303)
6,264,961		 1,116,432
779,129
2,424,932
8,689,893
5,927,658 3,541,364
9,469,022

41