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2022-12-31-accounts

Ricardo Franco The Leprosy Mission Annual Report and Financial Statements 2022

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 2022, 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 (TLM) 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.

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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 24 September 2021 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 more than 30 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:

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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, 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.

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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 Environmental, Social and Governance (ESG) 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:

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POLICIES (Continued)

Safeguarding is a standing item in the TLMI Board agenda and in Member countries Boards agendas. We have continued our commitment to upholding the highest standards of safeguarding, ensuring that our safeguarding measures are robust and reflect the environments in which we work. We have continued to broaden our approach, increasing our ability to safeguard staff, the adults we work with and volunteers, while remaining steadfastly committed to safeguarding children.

During 2022, The Leprosy Mission International received eight safeguarding concerns – the allegations made were related to; six for sexual harassment, one for sexual abuse, one for physical assault, of which four were substantiated, two were inconclusive and two were referred to the appropriate external bodies that were directly responsible to action response and therefore were not dealt with by TLM. One of the eight concerns received 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.

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 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 Head of People appraise the International Director’s performance annually and establish any increase in line with the Consumer Price Index (CPI) 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 2022, The Leprosy Mission International employed one staff affected by leprosy but actively encouraged people with disabilities with appropriate skills and experience to apply for vacant positions. There is one person affected by Leprosy serving as a Trustee.

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 and second tier leaders within the organisation.

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POLICIES (Continued)

Reserves

In determining the level of operational reserves, the Board recognises the global organisation’s need for a centrally invested reserves 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 reserves 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.

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 five-year strategy.

Zero Leprosy Transmission

The Leprosy Mission Will:

We will work to improve:

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OBJECTIVES AND ACTIVITIES (Continued)

Impact by the End of 2023:

Earlier detection and treatment of new leprosy cases.

Our Future Ambition:

Zero transmission of leprosy by 2035.

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:

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OBJECTIVES AND ACTIVITIES (Continued)

We will work to improve:

Impact by the End of 2023:

Our Future Ambition:

Christ-centred

The Leprosy Mission Will:

We will work to improve:

Impact by the End of 2023:

Our Future Ambition:

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OBJECTIVES AND ACTIVITIES (Continued)

The Leprosy Mission Enabled

The Leprosy Mission Will:

We will work to improve:

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 2021-2022 reflects this.

Organisational Activities

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

TLM’s advocacy work became increasingly important during 2022 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 2022 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.

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ACHIEVEMENTS AND PERFORMANCE (Continued)

We continued to engage with UN bodies and mechanisms in 2022. 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 2022, donation income was £16,185,527 (2021: £14,792,796) which was an increase of almost 10% compared to previous year). This was a remarkable income performance given the global economic slowdown and global political unrest through 2022.

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.

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 2022 we gave technical assistance to governments in more than 18 countries. We also provided at least 52,016 training days for TLM staff, government health staff and other NGOs in leprosy (2021: 40,894).

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 2022 we supported 16 TLM supported hospitals and another 19 partner hospitals. The hospitals provided 10,798 in-patients with care for leprosy related conditions (2021:7,455). We performed 4,057 (2021:3,363) 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 2022 we provided assistance to 348 self-care groups, which included 4,657 participants (2021: 394) groups with 6,029 participants).

In 2022 TLM provided 27,641 people (2021: 22,338) with footwear and orthopaedic devices to protect their insensitive feet from further damage or disability.

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ACHIEVEMENTS AND PERFORMANCE (Continued)

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 2022 we supported 2,290 self-help groups and cooperatives with 26,463 participants (2021: 2,229 groups with 27,879 participants).

In 2022 we built or renovated 277 low-cost homes (2021: 610) for leprosy-affected people in poverty, and enabled 9,498 people to access new or renovated water or sanitation facilities (2021: 4,505).

Education (Zero discrimination)

Training and education provide leprosy-affected people and their families a means to break free from the cycle of poverty. In 2022 we provided scholarships for formal education to 3,744 children or young people (2021: 2,830). We provided vocational training or apprenticeships to 2,601 young people (2021: 1,990). At TLM’s own Vocational Training Centres in India we trained 3,281 young people in marketable skills, setting them up for life (2021: 695).

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 leprosyaffected 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 2022 was 49 (2021: 49).

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 5,940 (2021: 5,782) 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 2022 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 £814,106 (2021: £368,660) before reporting the unrealised gains and losses of investments. Remittances include £1,079,554 of restricted funds for building projects in Nepal, Hospital and Research activities which are carried over into 2023 and will be expended. Investment loss during the year was £1,177,761 (2021: Gain £700,629).

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.

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FINANCIAL PERFORMANCE (Continued)

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 £15,742,060 (2021: £14,927,397) of which £15,032,274 (95%) (2021: £14,277,311 (96%)) was attributable to charitable activities. Major programmes supported in 2022 are listed in Note 6 of the Accounts and they continue to represent a wide spread of activities across 18 countries.

Total support costs by the charity to TLM Fellowship Member countries are analysed in Note 7b of the accounts and amounts to 8% (2021: 7.4 %) of the total income of the charity.

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. Trustees have set an investment strategy that reflect the following investment objectives; generating strong investment returns, managing cash flow requirements, protecting the financial position, minimising long term costs and ethical, environmental, social and governance considerations. The asset allocation would normally fall within 60% of Equity (UK/Overseas) and 40% of fixed interest (UK/Overseas). 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 2022 the fund achieved a return of (10.2)% (2021: 14.9%) against the benchmark of (12.1)% (2021: 9.6%).

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 2022 is £4,409,471 (2021: £4,828,758). With the current global political climate, the Trustees are satisfied with the reserve level which is above the upper limit set by them. Further, for 2022, the Mission is working with a deficit budget of £ (235,000). Trustees approved to spend £500,000 in 2024-25 from the reserves on projects that have innovative ideas/initiatives to achieve the goal of “Zero Leprosy transmission by 2035”

In addition, an amount of £4,361,006 is held in bank and investments as restricted funds listed in Note 20. An amount of £2,070,465 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, 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.

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FINANCIAL PERFORMANCE (Continued)

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 2022, the income of the trading company was £1,801,505 (2021: £2,199,557) and the company made a loss before taxation, before pension deficit liability of £20,676 (2021: profit £94,526). Customers of TLM Trading Limited donated an amount of £503,069 (2021: £677,280) to TLM Supporting Countries through donations and Gift for Life.

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 from 4 October 2020 to 4 October 2022.

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. Due to the delay in project implementation caused by Covid-19 lockdown it was agreed that this Strategy be extended for another year. A mid-term strategy review took place in 2022 and the strategy was updated to reflect the recommendations.

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).

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FUTURE PLANS (Continued)

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 leprosy-related 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

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.

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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:

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

Barclays Bank plc 8 George Street Richmond Surrey TW9 1JU

Pension Scheme Actuaries

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

Investment Managers

Rathbone Investment Management Ltd 8 Finsbury Circus London EC2M 7AZ

Auditors

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

15

THE LEPROSY MISSION INTERNATIONAL REPORT OF THE TRUSTEES

The Report of the Trustees and Financial Statements for the year ended 31 December 2022 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

29 June 2023

16

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 2022 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.

17

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

Opinions on other matters prescribed by the Companies Act 2006

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

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, the Charities Act 2011 and payroll taxes.

18

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

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:

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

A further description of our responsibilities 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.

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

Date: 31 July 2023

19

THE LEPROSY MISSION INTERNATIONAL

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022 (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 Trauma Centre
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
Net (loss) gain on investment assets
NET INCOME
Other Recognised gains /(losses)
Change in fair value of derivatives
20
Net movement in funds for the year
Balance brought forward at 1 January 2022
Balance carried forward at 31 December 2022		 Unrestricted
Fund
£
-
1,766,505
-
-
23,996		 Restricted Fund
£
16,185,527
-
144,284
-
222,267		 2022
Total
2021
Total
£
£
16,185,527
14,792,796
1,766,505
2,164,557
144,284
102,968
-
-
246,263
285,794
1,790,501 16,552,078 18,342,579
17,346,115
-
1,821,414		 674,785
-		 674,785
615,086
1,821,414
2,085,058
1,821,414 674,785 2,496,199
2,700,144
-
-
-
-
-
-
-
-		 408,450
-
2,741,200
2,433,365
4,016,518
3,151,647
1,533,494
747,600		 408,450
-
-
976,734
2,741,200
2,487,208
2,433,365
2,207,896
4,016,518
3,644,358
3,151,647
2,859,624
1,533,494
1,423,161
747,600
678,330
- 15,032,274 15,032,274
14,277,311
1,821,414 15,707,059 17,528,473
16,977,455
(30,913) 845,019 814,106
368,660
(534,336) (643,425) (1,177,761)
700,629
(565,249)
-		 201,594
(1,054)		 (363,655)
1,069,289
(1,054)
128,487
(565,249)
7,045,185		 200,540
4,160,466		 (364,709)
1,197,776
11,205,651
10,007,875
6,479,936 4,361,006 10,840,942
11,205,651

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 23 to 41 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 2022

Notes
FIXED ASSETS
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
TOTAL ASSETS LESS CURRENT
LIABILITIES
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 - derivatives fair value
20
Restricted - Special pension account
20		 2022
2021
£
£
794,217
789,389
583,588
700,069
7,043,729
8,236,189
Consolidated		 2022
2021
£
£
794,217
789,389
583,588
700,069
7,043,729
8,236,189
Consolidated		 2022
2021
£
£
743,370
785,190
583,588
700,069
7,736,389
8,963,160
Charity
8,421,534 9,725,647 9,063,347
10,448,419
216,133
1,245,216
180,024
94,739
2,300,156
785,349		 320,487
1,464,967
138,209
292,602
1,317,101
207,348		 -
1,217,304
1,415,443
180,024
138,209
94,739
292,602
2,252,002
594,430
35,349
207,348
4,821,617
(2,027,323)		 3,740,714
(1,876,298)		 3,779,418
2,648,032
(1,626,937)
(1,506,388)
2,794,294 1,864,416 2,152,481
1,141,644
11,215,828
(374,886)		 11,590,063
(384,412)		 11,215,828
11,590,063
(374,886)
(384,412)
10,840,942 11,205,651 10,840,942
11,205,651
4,409,471
1,256,205
121,600
692,660		 4,828,755
1,364,058
125,400
726,971		 4,409,471
4,828,755
1,256,205
1,364,058
121,600
125,400
692,660
726,971
6,479,936
1,293,638
(5,404)
3,072,772		 7,045,184
520,562
(4,350)
3,644,255		 6,479,936
7,045,184
1,293,638
520,562
(5,404)
(4,350)
3,072,772
3,644,255
10,840,942 11,205,651 10,840,942
11,205,651

General reserve for 2022 includes an amount of £1,080,341 (2021: £2,419,794) being the revaluation reserve in respect of accumulated unrealised investment gains.

The results of the charity (TLMI) before consolidation show a total income of £16,590,474 (2021: £15,245,948) and expenditure of £15,742,060 (2021: £14,927,397) resulting in a profit before realised and unrealised investment gains/(losses) of £848,414 for the year. The result was a loss of £330,401 after recognising the investment gain for the year.

The notes on pages 23 to 41 form part of these Financial Statements.

Approved and authorised for issue by the Trustees on 29 June 2023 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 2022

Cash generated by operating activities
Note A
Cashflows from investing activities
Investment income
Interest paid
Purchase of tangible fixed assets
Disposal of tangible fixed assets
(Increase) / Decrease in cash available for investment
Purchase of investments
Sale of investments
Increase in cash in the year
Cash at the beginning of the period
Cash at the end of the period		 2022
2021
£
£
1,777,978
77,807
144,284
102,968
(9,346)
(51,524)
(76,938)
(39,072)
-
-
(92,339)
17,912
(1,339,405)
(1,269,320)
1,156,822
1,210,677
1,561,056
49,448
1,524,449
1,475,001
3,085,505
1,524,449

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

Net movement in funds in year
Losses / (Gains) on investment
Change in fair value of derivatives
Investment income
Interest paid
Depreciation charge
Decrease / (Increase) in stock
Decrease / (Increase) in debtors
(Increase) / decrease in prepayments
Decrease / (Increase) in accrued income
Increase / (decrease) in creditors
Net cash inflow from operating activities		 2022
2021
£
£
(364,709)
1,197,776
1,177,761
(700,629)
1,054
(128,487)
144,284
102,968
9,346
51,525
188,590
172,360
104,354
(154,487)
219,751
(137,240)
(41,815)
20,924
197,863
(58,984)
141,499
(287,919)
1,777,978
77,807

22

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 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 for the foreseeable future (being at least one year from the date of approval of the financial statements).

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.

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.

23

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 1. ACCOUNTING POLICIES (Continued)

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 AVIVA. 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.

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.

24

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 1. ACCOUNTING POLICIES (Continued)

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.

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.

25

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 2. STATEMENT OF FINANCIAL ACTIVITIES

The net movement in funds is shown after charging:

Consolidated Charity
2022 2021 2022 2021
£ £ £ £
Audit fee - parent company 18,000 18,000 18,000 18,000
- subsidiary 9,500 8,400 - -
Depreciation - owned assets* 184,790 168,558 156,438 164,234
- leased assets 3,800 3,800 3,800 3,800
Investment managers' charges 24,358 26,155 26,155
Foreign exchange (gain) (110,732) (53,609) (110,732) (53,609)
Bank interest 9,346 51,524 9,346 19,409
Investment loss / (gain) on TLM Trading Ltd 34,311 (50,100) 34,311 (50,100)

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 2022

NOTE 3. DONATIONS (Continued)

TLM Supporting Member Countries:
Australia
Belgium
Denmark
England & Wales
Finland
France
Germany
Hungary
Korea
Netherlands
New Zealand
Northern Ireland
Scotland
Southern Africa
Sweden
Switzerland
Other Donor Organisations:
ALM: AIM / ASHA
Conservation, Food & Health Foundation
Danish Church Aid
Effect Hope
Heavens Family
International Committee of the Red Cross
Italy
Leprosy Research Initiative (LRI)
Norec
Nuffic
Old Dart Foundation
Sasakawa
Solidarite Protestante
The Mission to End Leprosy
TLM Spain
University of Birmingham (NIHR)
World Servant		 2022
2022
2022
2021
2021
2021
Unrestricted
Restricted
Total
Unrestricted Restricted
Total
£
£
£
£
£
£
-
1,367,512
1,367,512
-
1,245,185
1,245,185
-
19,765
19,765
-
26,507
26,507
-
193,010
193,010
-
227,509
227,509
-
5,917,178
5,917,178
-
5,400,839
5,400,839
-
13,105
13,105
-
13,814
13,814
-
83,169
83,169
-
77,008
77,008
-
219,661
219,661
-
125,216
125,216
-
117,039
117,039
-
118,354
118,354
-
37,314
37,314
-
37,813
37,813
-
1,654,781
1,654,781
-
1,455,406
1,455,406
-
1,932,324
1,932,324
-
1,590,984
1,590,984
-
452,006
452,006
-
419,056
419,056
-
398,967
398,967
-
463,858
463,858
-
-
-
-
15,879
15,879
-
881,495
881,495
-
812,856
812,856
-
1,359,316
1,359,316
-
1,443,747
1,443,747
-
110,756
110,756
-
32,956
32,956
-
-
-
-
15,385
15,385
-
51,852
51,852
-
635,169
635,169
-
594,110
594,110
-
48,537
48,537
-
3,047
3,047
-
4,208
4,208
-
57,812
57,812
-
8,309
8,309
-
96,290
96,290
-
24,185
24,185
-
172,814
172,814
-
139,591
139,591
-
25,198
25,198
-
75,239
75,239
-
70,252
70,252
-
12,666
12,666
-
29,346
29,346
-
11,772
11,772
-
13,155
13,155
-
-
-
-
37,336
37,336
-
16,167
16,167
-
13,146
13,146
-
302,851
302,851
-
222,640
222,640
-
-
-
-
32,859
32,859
-
16,185,527
16,185,527
-
14,792,796
14,792,796

TLM Trading Limited received £503,069 (2021: £677,280) 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		 2022
2021
£
£
427,102
577,012
29,401
46,496
46,566
53,772
503,069
677,280

27

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

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
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		 2022
2021
£
£
1,628,623
1,974,091
1
1,643
172,881
223,824
1,801,505
2,199,558
(596,615)
(767,945)
(784,346)
(922,625)
(441,220)
(414,462)
(1,822,181)
(2,105,032)
(20,676)
94,526
-
(50,000)
(13,635)
5,574
(34,311)
50,100
726,971
676,871
(34,311)
50,100
692,660
726,971

** Administrative expenses include a fee of £14,400 (2021: £14,400) for accounting services by the parent company which is eliminated upon consolidation.

NOTE 5a. INVESTMENT INCOME

Equities
Fixed interest securities
Interest on cash deposits
NOTE 5b. OTHER INCOME
Refund from Special Pension Account
Other income
Gift aid		 2022
2021
£
£
117,998
83,547
18,137
19,394
8,149
27
144,284
102,968
2022
2021
£
£
117,468
156,623
87,800
69,763
40,995
59,408
246,263
285,794

NOTE 5b. OTHER INCOME

28

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022 is included in the Statement of Financial Activities under Direct Charitable Expenditure and the Mission has supported more than 198 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.

Country/Project
Country/Project 2022 2021
£ £
Bangladesh
Advocacy for Employment Community Programme 247,939 202,962
Chittagong Hill Tracts Leprosy Control 150,958 188,922
Chittagong Community Rehabilitation Rehabilitation 112,703 125,795
Dhaka Co-ordination Supervision 179,335 172,627
Gaibandha-Jaypurhat LCP Leprosy Control Prog (LCP) 103,532 109,343
Nilphamari (DBLM) Hosp/Rehab/Research/Train 426,172 423,928
Dhaka CBR Rehabilitation 95,455 89,659
Leprosy Field Research Research 444,865 318,238
Integrated Leprosy Health Systems Community Programme 257,348 252,321
Covid 19 Emergency Relief Relief/Rehabilitation 5,483 18,444
Staff Exchange Norec Training 70,197 31,826
Chad
Five Prefectures Technical Support 191,848 168,690
DR Congo
Community Mental Health Community Mental Health 38,277 -
Kasai Leprosy Projects Leprosy Control/Tech Support 169,840 277,924
GIPAL / Inclusion of Children Inclusion/Rehab/Lep Control 292,391 117,259
Power of Voice - We Are Able Rehabilitation 447,829 389,951
South Kivu, Maniema & Mingwanga Leprosy Control 84,214 182,055
Sankuru Leprosy/TB Control 30,368 47,280
Ethiopia
ENAPAL/Woreda 1 Urban Slum Dev Rehabilitation 99,791 185,482
Emergency Relief Relief/Rehabilitation 74,677 -
Power of Voice - We Are Able Rehabilitation 367,252 294,744
India
Bankura Leprosy Hospital Hospital Prog/Training 24,828 25,550
Bankura VTC Vocational Training 69,161 92,678
Brighter Future Development Community Programme 107,470 98,093
Building Leprosy Competencies Training 21,467 38,295
Comm Aware & Disab. Prevention Community Programme 214,517 362,486
Champa VTC Vocational Training 15,036 37,555
Chandkuri Leprosy Hospital Hospital Programme 180,911 73,214
College on Wheels Training 66,839 77,087
Inclusive Empowerment (SOAR) Rehabilitation 80,818 76,158
Faizabad VTC Vocational Training 102,831 61,289
Kolkata Leprosy Hospital Hospital Programme 136,061 135,187
Kothara Leprosy Hospital Hospital Programme 58,205 56,305
Medical Care - Barabanki, Naini, Vadathorsalur Hospital Programme 104,038 -
Mental Health in Bihar Mental Health Programme 27,470 -
Miraj Leprosy Hospital & Research Hospital Programme/Research 144,607 154,475
Muzzaffarpur Leprosy Hospital Hospital Programme 206,900 309,552
Naini Hospital Hospital Programme 187,644 230,612
Nashik VTC Vocational Training 70,597 73,792
Purulia Leprosy Hospital Hospital Programme 219,343 131,340
Rehabilitation (nationwide) Rehabilitation 101,150 86,743

29

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 6. EXPENDITURE ON CHARITABLE ACTIVITIES (Continued)

Country/Project
Country/Project 2022 2021
£ £
India (continued)
RIGHT 1 Research 129,480 92,179
Salur Leprosy Hospital Hospital Programme 157,617 157,865
Mass Media Centre Health Education 83,576 88,052
Vadathorasalur, Vizianagaram VTC Vocational Training 81,333 91,375
Women's Empowerment / WEALTH Community Programme 309,910 207,563
India Office Supervision Tech.Support/Supervision 139,708 122,438
Covid 19 Response Relief/Rehabilitation - 614,318
Indonesia
PEPCOM / Leprosy Village Leprosy Control / Community 210,609 13,179
Mozambique
Mission Zero 540,142 -
Cabo Delgado/ALEMO/Iphiro Yohoolo Leprosy/TB Control/Education - 521,699
Myanmar
Emergency Support Relief/Rehabilitation 83,692 -
Mawlamyine Hospital Hospital Programme/Rehab 222,130 216,261
Covid 19 Response Relief/Rehabilitation - 44,024
GRACE/RLII Community/Empowerment 419,030 270,378
Transformation & Renewal E.Shan Relief/Rehabilitation 150,802 38,329
Strategic Partnership Programme Community Programme - 238
Staff Exchange Norec Training 59,932 63,045
Nepal
Anandaban Hospital Hospital Programme 260,163 193,426
Anandaban Research Research/Training 145,547 349,634
Anandaban Trauma Centre Hospital Programme 350,283 -
Central Region - Nepal Technical Support 42,716 24,094
CBR/CTY/LCH Nepal Community Programme 275,396 255,625
Dignity First Community Programme 44,723 -
FOUND Community Programme 394,340 460,483
HEAL Hospital/Rehabilitation 656,992 632,313
International Nepal Fellowship Community Programme 16,783 15,017
Jhapa Leprosy Reduction Leprosy Control 90,543 -
Nepal Leprosy Fellowship Community Programme 53,473 125,704
Nepal - Covid 19 Response Relief/Rehabilitation - 258,656
Nepal Tertiary Education Project Education/Training 56,315 -
RIGHT 1 Community Programme 164,414 129,581
Satellite Clinic Birathnagar Community Programme 11,182 20,433
Staff Exchange Norec Training 59,757 57,996
Niger
CSL Danja/Niamey & Tillabery Leprosy Control/Rehab 505,023 390,215
Covid 19 Emergency Response for PAL Relief/Rehabilitation - 18,399
Nigeria
Integrated Leprosy & LF Case Finding Leprosy Control 102,263 130,925
Integrated NTD Control in Zamfara Leprosy Control 143,197 126,046
Kwara/Kebbi/Kogi/Niger States Leprosy Control/Rehab 11,875 38,453
Orthopaedic Rehabilitation 105,249 77,757
Wheels That Heal Community Programme 14,606 49,885
Nigeria Co-ordination, Harnessing Resources Supervision 156,465 222,285
Open Minds Children & Young People Rehabilitation 37,701 54,755
Resilience Building & Disability Inclusion Community Programme 348,293 126,700
RIGHT 1 Research 32,027 22,055

30

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 6. EXPENDITURE ON CHARITABLE ACTIVITIES (Continued)

Country/Project Country/Project Main Activity 2022 2021
£ £
Papua New Guinea
Bougainville HealthyCommunityProject Rehabilitation 747,102 789,049
Empowerment/SED/ LeprosyControl Partnership Rehabilitation 485,065 469,094
South Africa
LeprosyControl Programme LeprosyControl - 11,914
Sri Lanka
Empower Communities & Integration CommunityProgramme 212,598 118,777
Sudan
Omdurman & Khartoum Tech.Support/Supervision 39,116 58,703
Tanzania
Hombolo Hospital Programme & Housing LeprosyControl/Rehabilitation 51,004 31,858
Thailand
McKean Rehab.Centre - ChiangMai Rehabilitation 8,129 30,303
Timor Leste
National Programme LeprosyControl 390,558 347,202
Emergencyflood relief and Covid-19 response Relief/Rehabilitation - 8,195
Othergrants sent toprojects in above countries 401,047 372,975
15,032,274 14,277,311

NOTE 7a. EXPENDITURE

Cost of generating funds
Expenditure on raising funds
TLM Trading Ltd
Charitable activities
Covid-19 Emergency Relief
Public health
Hospitals
Disability care & prevention
Community development
Education
Research
Total Expenditure		 Grants
Other Direct
Support
2022
Grants
Other Direct
Support
2021
Costs
Costs
Total
Costs
Costs
Total
£
£
£
£
£
£
£
£
-
674,785
-
674,785
-
615,086
-
615,086
-
1,821,414
-
1,821,414
-
2,085,058
-
2,085,058
-
-
-
-
976,734
-
-
976,734
2,496,526
-
244,675
2,741,200
2,276,937
-
210,271
2,487,208
2,624,617
-
217,198
2,841,815
2,021,238
-
186,658
2,207,896
3,658,011
-
358,507
4,016,518
3,336,261
-
308,097
3,644,358
2,870,337
-
281,310
3,151,647
2,617,869
-
241,755
2,859,624
1,393,492
-
140,001
1,533,493
1,302,846
-
120,315
1,423,161
680,871
-
66,729
747,600
620,983
-
57,347
678,330
2022
2021
13,723,853
-
1,308,420
15,032,274
13,152,868
-
1,124,443
14,277,311
13,723,853
2,496,199
1,308,420
17,528,473
13,152,868
2,700,144
1,124,443
16,977,455

31

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 7b. ANALYSIS OF SUPPORT COSTS

Financial Services
Quality Standards
Global Voice and External Representation
Fellowship Meetings
Global Fellowship Governance
Member Support to Implementing Countries
Member Support to Supporting Countries
Communications
Global Strategy
International Office - Operational
Pension Deficit
Foreign currency loss / (gain)		 2022
2021
£
£
59,025
45,434
128,780
99,126
168,875
129,989
155,846
119,961
79,060
60,855
301,544
232,110
210,472
162,008
83,494
64,269
65,958
50,770
108,884
83,812
57,200
57,200
(110,718)
18,909
Charity
1,308,420
1,124,443

NOTE 8a. STAFF COSTS

NOTE 8a. STAFF COSTS
Wages and salaries
Social security costs
Other pension costs
Number of staff		 2022
2021
£
£
1,280,770
1,126,380
128,075
105,862
163,707
153,323
Consolidated		 2022
2021
£
£
1,010,153
881,245
99,267
81,583
137,280
129,299
Charity
1,572,552 1,385,566 1,246,700
1,092,126
Number
34		 Number
32		 Number
Number
26
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
£60,000 - £70,000
Total		 2022
2021
Number
Number
1
1
2
-
3
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 to its UK employees. 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 2022, 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 £172,890 (2021: £162,787).

32

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 9. TRUSTEES EMOLUMENTS AND REIMBURSED EXPENSES

The Trustees received no remuneration or retirement benefits for their services. Eight Trustees (2022: one) was reimbursed for travel expenses and out of pocket expenses during the year, amounting to a total of £10,183 (2021: £24).

The Leprosy Mission International has purchased indemnity insurance costing £410 (2021: £410) that provides cover:

NOTE 10. FIXED ASSETS

Consolidated
Cost
01 January 2022
Additions
31 December 2022
Depreciation
01 January 2022
Charge for the year
31 December 2022
Net Book Value
31 December 2022
31 December 2021		 Building
Improvement
£
1,164,809
-		 Freehold
Property
£
1,104,939
-		 Leasehold
Property
£
190,000
-		 Equipment,
Computers
Total
& Website
2022
£
£
210,741

2,670,489
76,938

76,938
1,164,809 1,104,939 190,000 287,679
2,747,427
464,740
116,481
581,221		 481,545
14,738
496,283		 64,600
3,800
68,400		 170,147
1,181,032
53,571
188,590
223,718
1,369,622
583,588 608,656 121,600 63,961
1,377,805
700,070 623,394 125,400 40,594
1,489,458

The book cost at 31 December 2022 represents tangible fixed assets used for:

Fundraising
Long-served retired staff
Administration offices		 Freehold
Property
£
-
131,500
2,138,249		 Leasehold
Property
£
190,000
-
-		 Equipment
Total
& Computers
£
£
24,370
214,370
-
131,500
263,309
2,401,558
287,679
2,747,428
2,269,749 190,000

33

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 10. TANGIBLE FIXED ASSETS (Continued)

Charity
Cost
01 January 2022
Addition
31 December 2022
Depreciation
01 January 2022
Charge for the year
31 December 2022
Net book value
31 December 2022
31 December 2021		 £
1,164,809
-
Building
Improvement		 Freehold
Leasehold
Equipment
Total
Property
Property
& Computers
2021
£
£
£
£
1,104,939
190,000
147,024
2,606,772
-
-
1,938
1,938
1,164,809 1,104,939
190,000
148,962
2,608,710
464,740
116,481		 481,545
64,600
110,629
1,121,514
14,738
3,800
25,219
160,238
581,221 496,283
68,400
135,848
1,281,752
583,588 608,656
121,600
13,114
1,326,958
700,070 623,394
125,400
36,395
1,485,259

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 2022

NOTE 11. INVESTMENTS (Continued)

Market value at 1 January 2022
Less: Portfolio cash
Additions at cost
Disposals
Market Value (less: Cash) at 31 December 2022
Gain
Market value at 31 December 2022
Add: Cash
Analysis of investments
Equities
Fixed interest securities
Cash deposit
Cost at 31 December 2022
Accumulated unrealised investment gain
at 31 December 2022		 UK
£
6,869,139
(247,069)		 Overseas
£
1,367,050		 2022
Consolidated
£
8,236,189
(247,069)		 TLM Trading
(UK)
£
726,971		 2022
Charity
£
8,963,160
(247,069)
6,622,070
1,339,405
(1,383,501)		 1,367,050
-
(62,942)		 7,989,120
1,339,405
(1,446,443)		 726,971
-
-		 8,716,091
1,339,405
(1,446,443)
6,577,974
5,403,266
(1,174,708)
5,403,266
339,408		 1,304,108
1,301,055
(3,053)
1,301,055
-		 7,882,082
6,704,321
(1,177,761)
6,704,321
339,408		 726,971
692,660
(34,311)
692,660
-		 8,609,053
7,396,981
(1,212,072)
7,396,981
339,408
5,742,674 1,301,055 7,043,729 692,660 7,736,389
4,662,184
741,082
339,408		 1,301,055
-
-		 5,963,239
741,082
339,408		 692,660
-
-		 6,655,899
741,082
339,408
5,742,674 1,301,055 7,043,729 692,660 7,736,389
5,158,241 805,147 5,963,388 330,250 6,293,638
584,433 495,908 1,080,341 362,410 1,442,751

35

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 12. STOCKS

Consolidated Consolidated Charity
2022 2021 2022 2021
£ £ £ £
Goods for resale at lower of cost and net realisable value 216,133 320,487 - -
NOTE 13. DEBTORS
Trade debtors
Other debtors		 2022
2021
£
£
27,912
47,015
1,217,304
1,417,952
Consolidated		 2022
2021
£
£
27,912
47,015
1,217,304
1,417,952
Consolidated		 2022
2021
£
£
-
-
1,217,304
1,415,443
Charity
1,245,216 1,464,967 1,217,304
1,415,443

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 (2021: £nil). 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 £942,944 (2021: £1,039,354) made to TLM Trust India for funding its charitable activities. Repayments of £200,000 p.a. commenced from July 2022.

NOTE 14. PREPAYMENTS

Prepayments represent funds remitted overseas during December 2022 to be spent in 2023 and to meet the requirements of the 2023 expenditure budget and therefore will be included in the accounts for 2023. These funds represent an advance on activities to be performed in 2023.

NOTE 15. CREDITORS DUE WITHIN ONE YEAR

Accruals
Trade creditors
Other creditors
Derivatives
Social security and other taxes
Bank overdraft		 2022
2021
£
£
708,614
883,779
220,307
137,171
1,030,826
802,018
5,404
4,350
62,172
48,980
-
Consolidated		 2022
2021
£
£
708,614
883,779
220,307
137,171
1,030,826
802,018
5,404
4,350
62,172
48,980
-
Consolidated		 2022
2021
£
£
682,962
843,103
-
912,884
638,025
5,404
4,350
25,687
20,910
-
Charity
2,027,323 1,876,298 1,626,937
1,506,388

The Mission has an overdraft facility 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 2022

NOTE 16. CREDITORS DUE AFTER ONE YEAR

Chad Staff Medical Provision
Longterm Severance Pay
Resettlement fund
Superannuation fund		 2022
£
15,109
186,226
117,467
56,084		 2021
£
8,483
210,490
108,221
57,218		 2022
2021
£
£
15,109
8,483
186,226
210,490
117,467
108,221
56,084
57,218
374,886 384,412 374,886
384,412

Chad Staff Medical Provision fund is held with TLMI for staff medical provision which is part of employment benefit. Other Implementing countries hold this benefit provision in country.

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 2022 or 2021.

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 for details of transactions between The Leprosy Mission International and TLM Trading Limited).

At 31 December 2022, an amount of £9,393 (2021: £510) 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.

There were no other related party transactions in the current or previous accounting period.

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 previous 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).

37

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 18. PENSION SCHEME (Continued)

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

The most recent valuation of the Scheme was carried out with an effective date of 31 December 2021. 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 2022 is £Nil (2021: £Nil)

In addition, the Charity has a trading subsidiary, which is included in the consolidated financial statements. The trading subsidiary also has 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 2022, this liability is £Nil. (2021: £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 2024 and the results are expected by November 2025.

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

The Mission’s pension cost for the year amounted to £137,280 (2021: £129,299).

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
Consolidated
Balance
01.01.22
Movements
31.12.22
£
£
£
1,364,058
(107,853)
1,256,205
125,400
(3,800)
121,600
726,971
(34,311)
692,660
2,216,429
(145,964)
2,070,465
Balance
Consolidated
Balance
01.01.21
Movements
31.12.21
£
£
£
1,493,544
(129,486)
1,364,058
129,200
(3,800)
125,400
676,871
50,100
726,971
2,299,615
(83,186)
2,216,429

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 2022, 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 2022.

38

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 20. RESTRICTED FUNDS

Nepal Trauma Centre
Nepal Laboratory Construction
Public health
Hospitals
Disability care and Prevention
Community Development
Education
Research
Restricted Fund: Projects
Special Pension Account
Derivatives Fair Value
Nepal Trauma Centre
Covid-19 Emergency Relief
Public health
Hospitals
Disability care and Prevention
Community Development
Education
Research
Restricted Fund: Projects
Special Pension Account
Derivatives Fair Value		 Balance
Income
Expenditure
Gains,
Losses and
Balance
01.01.2022
31.12.2022
£
£
£
£
£
453,610
168,923
408,450
214,083
-
595,236
595,236
-
2,790,971
2,741,200
49,771
3,275
2,641,519
2,433,365
211,429
-
4,016,518
4,016,518
-
17,889
3,162,879
3,151,647
29,121
-
1,568,494
1,568,494
-
45,788
895,810
747,600
193,998
520,562
15,840,350
15,067,274
-
1,293,638
3,644,255
(571,483)
3,072,772
(4,350)
(1,054)
(5,404)
4,160,467
15,840,350
15,067,274
(572,537)
4,361,006
Balance
Income
Expenditure
Gains,
Losses and
Transfers
Balance
01.01.2021
31.12.2021
£
£
£
£
£
389,093
64,517
-
-
453,610
-
976,734
976,734
-
-
-
2,487,208
2,487,208
-
-
-
2,211,171
2,207,896
-
3,275
-
3,644,358
3,644,358
-
-
22,864
2,854,649
2,859,624
-
17,889
-
1,423,162
1,423,162
-
-
42,000
682,117
678,329
-
45,788
453,957
14,343,916
14,277,311
-
520,562
3,464,146
-
-
180,109
3,644,255
(132,837)
-
-
128,487
(4,350)
3,785,266
14,343,916
14,277,311
308,596
4,160,467

Restricted funds

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

Nepal Trauma Centre and Laboratory construction

The funds raised in respect of the Trauma Centre and the Laboratory construction in Nepal, which had not been utilised at 31 December 2022.

39

THE LEPROSY MISSION INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022

NOTE 20. RESTRICTED FUNDS (Continued)

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 2022 was £3,072,772 and is included in investments in Note 11.

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 2022.

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 2022.

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 2022
£
£
£
1,377,805
1,377,805
3,970,957
3,072,772
7,043,729
2,794,294
2,794,294
(374,886)
(374,886)
7,768,170
3,072,772
10,840,942
Unrestricted
Restricted
Total 2021
£
£
£
1,489,458
-
1,489,458
4,591,934
3,644,255
8,236,189
963,792
900,624
1,864,416
-
(384,412)
(384,412)
7,045,184
4,160,467
11,205,651

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 2022 The Leprosy Mission International had £2,602,270 (2021: £500,000) of foreign currency forward contracts in place. The unrealised loss on these forward contracts was £(5,404) (2021: £(4,350)). 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 2022

NOTE 24. PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES

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 Trauma Centre
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 2021
Balance carried forward at 31 December 2021		 Unrestricted
Fund
£
-
2,164,557
102,968
119,588		 Restricted Fund
2021
Total
£
£
14,792,796
14,792,796
-
2,164,557
-
102,968
-
-
166,206
285,794
2,387,113 14,959,002
17,346,115
-
2,085,058		 615,086
615,086
-
2,085,058
2,085,058 615,086
2,700,144
-
-
-
-
-
-
-
-		 -
-
976,734
976,734
2,487,208
2,487,208
2,207,896
2,207,896
3,644,358
3,644,358
2,859,624
2,859,624
1,423,161
1,423,161
678,330
678,330
- 14,277,311
14,277,311
2,085,058 14,892,397
16,977,455
302,055 66,605
368,660
520,520 180,109
700,629
822,575
-
-		 246,714
1,069,289
-
-
128,487
128,487
822,575
6,222,609		 375,201
1,197,776
3,785,266
10,007,875
7,045,184 4,160,467
11,205,651

41