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2021-06-30-accounts

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2021

Section 1: Company and Charity

Section 1: Company and Charity
Company and Charity Information 4
Report and Financial Statements Year Ended 30 June 2021 5
Reference and Administrative Details 5
Structure, Governance, and Management 5
Trustee Appointment, Induction, and Training 5
Objectives and Activities 6
Staff and Volunteers 8
Risk Management 9
Delivery Risk 9
Funding Risk 9
Operational Risk 9
Reputational Risk 9
Legal Risk 9
Internal Audit 9
Financial Review and Reserves Policy 10
Statement of Trustees' Responsibilities 10
Section 2: Review of Projects and Benefit to the Public
Review of Projects and Benefit to the Public 12
Section 3: Financial Statements 20
Independent Auditor’s Report to the Members of SEED Madagascar 20
Opinion 20
Basis for Opinion 20
Conclusions Relating to Going Concern 20
Other Information 20
Opinions on other matters prescribed by the Companies Act 2006. 21
Matters on which we are Required to Report by Exception 21
Responsibilities of Trustees 21
Auditor’s Responsibilities for the Audit of the Financial Statements 21
Use of our Report 22
Statement of Financial Activities 23
Statement of Cash Flows 25
1.
Accounting Policies		 26
1.1.
Accounting Convention		 26
1.2.
Going Concern		 26

SEED Madagascar: Report and Financial Statements 2021 Page | 2

1.3.
Fund Accounting		 1.3.
Fund Accounting		 26
1.4.
Income		 26
1.5.
Expenditure		 27
1.6.
Tangible Fixed Assets and Depreciation		 27
1.7.
Investments		 27
1.8.
Debtors and creditors receivable/payable within one year		 27
1.9.
Cash		 27
1.10.
Leasing		 27
1.11.
Pensions		 27
1.12.
Foreign Currencies		 28
2. Income from Donations and Legacies 29
3. Specific Donations and Grants 29
4. Income from Investments 30
5. Other income 30
6. Expenditure on Raising Funds 30
7. Expenditure on Charitable Activities - Projects 31
8. Expenditure on Charitable Activities - Education 32
9. Other costs 32
10. Auditors' Remuneration 33
11. Employees 33
12. Pension Costs 33
13. Tangible Fixed Assets 34
14. Fixed Asset Investments 34
15. Debtors 34
16. Creditors: Amounts Falling due in One Year 35
17. Restricted Income Funds 35
18. Designated Income Funds 37
19. General Unrestricted Income Funds 37
20. Analysis of Net Assets Between Funds 37
21. Financial Commitments 38
22. Related Party Transactions 38

Cover Picture: Perline and Soafara collect emergency food during Emergency Food Distribution in Sainte Luce.

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Year ending 30[th] June 2021

Section 1. Trustees’ Annual Report (including Directors' Report)

Company and Charity Information

Directors and trustees Herizo Andrianandrasana
Jessica Burston
Miranda Coultas
Oisin Crawley
Susan Hillman
Sarah MacQuillin
Victoria Smith
Andrew Turner
Secretary Mark Jacobs
Company number 03796669
Charity number 1079121
Registered office Studio 7
1a Beethoven Street
London
W10 4LG
Auditors Cheyettes Ltd
167 London Road
Leicester
LE2 1EG
Principal office Studio 7
1a Beethoven Street
London
W10 4LG
Bankers HSBC Bank plc
25 Notting Hill Gate
London
W11 3JJ
Scottish Widows Bank plc
PO Box 12757
67 Morrison Street
Edinburgh

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Year ending 30[th] June 2021

Section 1. Trustees’ Annual Report (including Directors' Report)

Report and Financial Statements Year Ended 30 June 2021

The trustees, who are also directors of the charity for the purposes of the Companies Act (and hereafter referred to collectively as the trustees), present their report and the financial statements for the year ended 30th June 2021. The trustees have adopted the provisions of the Statement of Recommended Practice: Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) published in October 2019 and comply with the charity’s governing document and the Charities Act 2011

Reference and Administrative Details

All reference and administrative details of the charitable company are either provided in the Company and Charity information on page 3 or set out hereunder.

Structure, Governance, and Management

The entity is a charitable company limited by guarantee and is governed by its Articles of Association. The trustees who served during and after the year-end are as stated below:

Herizo Andrianandrasana Appointed 1[st] August 2019 Jessica Burston Appointed 10[th] November 2019 Miranda Coultas Appointed 1[st] August 2019 Oisin Crawley Appointed 1[st] June 2010 Susan Hillman Appointed 10[th] November 2019 Sarah MacQuillin Appointed 6[th] July 2020 Cody Moolman Resigned 6[h] March 2022 Victoria Smith Appointed 5[th] September 2016 Andrew Turner Appointed 5[th] July 2000

Trustee Appointment, Induction, and Training

The business of the charity is overseen by a Board of Trustees, which meets on a quarterly basis, together with the Managing Director, to discuss and determine strategic, financial, and operating requirements. The daily operation of the organisation is undertaken by the Managing Director based in London, (Mark Jacobs), supported by the Director of Programmes and Operations based in Madagascar (Lisa Bass). The Director of Programmes and Operations also attends trustee meetings whenever practical.

The trustees are appointed exclusively by the other serving members of the board. New trustees are briefed on their legal obligations and responsibilities under charity and company law, the contents of the Articles of Association, decision-making processes, and recent financial performance and activities of the charity. They are fully assessed for suitability and once selected go through a documented onboarding process.

As part of exercising enhanced governance and oversight over the project activities performed in country by SEED, at least one of the Trustees is expected to visit Madagascar per year. Due to the pandemic restricting travel there were no visits in 2020 or 2021. Cody Moolman (trustee) visited Madagascar during 2019. During his stay, Cody visited various project sites, was introduced to local community leaders, and gained first-hand experience into the delivery of projects on the ground as well as supporting the SEED Internal audit function.

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Year ending 30[th] June 2021

Section 1. Trustees’ Annual Report (including Directors' Report)

Objectives and Activities

The charity was established in 1999 for the benefit of the people and environment of Madagascar. To this end, we have focussed our efforts on achieving the following objectives as set out in our Articles of Association:

Madagascar including by increasing international understanding of the

challenges faced by communities and biodiversity in Madagascar;

economically disadvantaged communities in Madagascar; and

to identify, and meet, their needs and to participate more fully in society including by

implementing programmes across Madagascar.

Throughout this time, we have worked with and resourced projects both directly and through local partners. Operations largely focus in the Anosy region of southeast Madagascar where we have a permanent base in Fort Dauphin. With Project Safidy becoming national in scope, we now have a new office and small team based in the capital of Antananarivo. We carry out projects with funds raised from donors in the UK and worldwide.

We have now entered into a sixth term of an accord de siège with the Government of Madagascar, which permits our UK-based organisation to establish its own legal and fiscal presence in Madagascar enabling us to deliver projects and provide advice and support directly where it is needed. We will continue to prioritise working with local partners where practical and effective.

From having a permanent base in the country, we have accumulated a wealth of experience in identifying need and delivering projects to local communities. This is valued not only by those communities, but also others who from time to time seek to do like-minded work in Madagascar.

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Year ending 30[th] June 2021

Section 1. Trustees’ Annual Report (including Directors' Report)

Recognising that Madagascar remains one of the poorest countries on Earth whilst supporting a natural and living environment that has a worldwide significance, we remain committed to continual learning and review of both the organisation and individual programmes. We continually review how we fulfil our charitable mission:

To enhance the capacity of individuals, communities, organisations, and government in fulfilling sustainable environment, education, and development goals in southeast Madagascar.

Our name SEED Madagascar emphasises our priorities for our funders, supporters, and stakeholders.

A Sustainable Environment balancing sustainable livelihoods with conservation of the environment.

Education through access to schools and capacity building.

Development of individual and community leadership and resilience.

Many of these priorities are interdependent and SEED’s programmes reflect an integrated approach to achieve maximum effect and benefit and by embedding responsibility for them in the local community.

A detailed assessment of the main projects undertaken during the year is contained in Section 2: Review of Projects and Benefit to the Public.

These reflect SEED’s programmatic areas of Community Health, WASH, Education, Sustainable Livelihoods, and Environment.

The trustees have paid due regard to the guidance issued by the Charity Commission on public benefit when deciding what activities the charity should undertake.

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Year ending 30[th] June 2021

Section 1. Trustees’ Annual Report (including Directors' Report)

Staff and Volunteers

We are a multi-disciplinary team of local and international experts, who work across conservation, livelihoods, health, sanitation, education, and core operations. We prioritise the needs of the communities with whom we work. Our team reflects this, with 80% being Malagasy and 97% based in Madagascar.

We wish to record our appreciation for the commitment, dedication, and patience of all staff and volunteers for driving the charity forward in a challenging environment of pandemic, remote working and widespread food insecurity.

SEED has offices in Madagascar and London. SEED’s Managing Director (Mark Jacobs) is based in London and the Director of Programmes and Operations (Lisa Bass) splits her time between Madagascar and the UK. Tsina Endor, SEED’s Deputy Director is Madagascar-based. Mark, Lisa, and Tsina are the three most senior members of staff and are ultimately responsible for the charity’s operations.

Our team members based in Madagascar are the backbone of the organisation. We would particularly like to thank our Deputy Director (Tsina Endor); Head of Finance, Administration, and HR (Joel Rajaobelina); Head of Community Health (Dr Mamy Soafaly Andriatsihosena); Head of Environmental Conservation & Sustainable Livelihoods (Laza Andriamboavonjy); and Head of Construction (Mahalomba Hasoavana) for coordinating their teams and working tirelessly and with passion to fulfil SEED’s charitable missions. We want to express our admiration for the strength of our team members in Madagascar during the pandemic.

We believe that teams are stronger when diverse points of view are represented, international interns and specialists support SEED directly in Madagascar and remotely. They make a significant impact on SEED’s work in areas such as project development, conservation research, project implementation, and volunteer support. This year was particularly challenging for those who were expecting to work in country but were instead working remotely due to the pandemic. SEED commends their tenacity and flexibility in the face of a changing situation.

The London office team has been working remotely since the start of the pandemic and currently retains the London office in Queens Park. The Programmes and Fundraising Coordinator and Corporate Liaison Officer support the Managing Director, along with other volunteers and interns. In the UK, appropriately skilled volunteers have supported the charity’s work in areas including project development, administration, design, IT, finance, law, and fundraising.

As ever, this year’s accomplishments have only been possible due to the hard work and support of our volunteers working in both the UK and Madagascar. The Board of Trustees would like to thank all those who have given their skills and time during the year to help fulfil our objectives.

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Year ending 30[th] June 2021

Section 1. Trustees’ Annual Report (including Directors' Report)

Risk Management

SEED manages its exposure to risk through an established risk management framework, which sets out guiding principles for the identification, assessment, and response to risks that the organisation may encounter in conducting its operations. The implementation and adherence to this framework is overseen by the Audit and Risk Committee, who operate under delegated responsibility from the Board of Trustees.

The framework sets out the following five risks, referred to as key risks, which account for most risks faced by SEED Madagascar:

Delivery Risk

The risk that the organisation is not able to deliver projects in accordance with agreed terms, whether that be through internal or external factors (but not funding related).

Funding Risk

The risk that the organisation has insufficient resources (capital and/or funding) to support its normal operations including maintaining the organisation as well as the delivery of projects. This risk also includes market risk – the risk that the organisation will not be able to secure sufficient funding due to external market conditions.

Operational Risk

The risk of loss to the organisation from inadequate or failed processes or systems, human factors, or due to external events (e.g. fraud).

Reputational Risk

The risk that an action, transaction, investment, or event will reduce trust in the organisation’s integrity and competence by donors, counterparties, regulators, employees, volunteers, the communities, organisations we work with, or the public.

Legal Risk

The risk of loss or imposition of penalties, damages, or fines from the failure of the organisation to meet its legal obligations in the various jurisdictions in which it operates (United Kingdom and Madagascar).

Whilst all staff and volunteers have a specific responsibility for risk management, the roles and responsibilities of those charged with governance are governed by an established risk management framework. This framework was established to identify, assess, and manage the risks which are faced by SEED as a result of its operations and to allow the organisation to uphold the SEED Madagascar values.

Internal Audit

In 2017, SEED set up an internal audit function to provide independent assurance to senior management, the Audit and Risk Committee, and the Board of Trustees over the effectiveness of governance and internal control over current and evolving risks faced by the organisation. The annual internal audit plan, which is approved by the Audit and Risk Committee at the start of each year, is risk-based and adaptive to changing circumstances within the organisation. The assessed risk of a particular area drives the frequency and focus of the audits conducted.

The internal audit function is also charged with the review of the completeness of the policies and procedures SEED has in place to ensure appropriate internal controls and safeguards exist.

The Audit and Risk Committee has therefore given consideration to the major risks to which the charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks.

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Year ending 30[th] June 2021

Section 1. Trustees’ Annual Report (including Directors' Report)

Financial Review and Reserves Policy

SEED operates a reserves policy, which is reviewed annually. It is the trustees’ policy to maintain a General Reserve sufficient to safeguard operations for a minimum period of six months and to fund commitments should circumstances ever require us to cease activity in Madagascar. It is not possible to estimate a precise figure as the needs of the charity fluctuate depending on the number and size of projects being undertaken. The level of reserves (which are held in bank accounts) is monitored regularly.

General Expenditure is all expenditure excluding External Project Expenditure and SEED Madagascar Project Expenditure. External Project Expenditure is funded by grants received from External Funders for specific purposes and which can only be used for direct and indirect expenditure on projects in accordance with the funding agreement entered into with each funder or the terms of a specific donation.

All income received from funders and other sources which is not restricted for External Project Expenditure is treated as General Income and is available at the discretion of the trustees for charitable purposes and running the company. The trustees may allocate unrestricted funds to specific charitable projects and activities. Such expenditure is treated as SEED Madagascar Project Expenditure. Details of the principal sources of funding are disclosed in the notes to the financial statements.

During the year, the charity’s income totalled £631,743 and expenditure £741,096, resulting in net expenditure before other gains of £109,353. With unrestricted reserves, increasing by £19,704 this net expenditure was seen largely within restricted funds and is in line with expected project expenditure, leaving a healthy restricted fund balance of £293,777.

The Charity has no endowment capital. At 30[th] June 2021 the charity had unrestricted funds of £144,401 (2020 - £124,697), designated funds of £25,079 (2020 - £29,752) and restricted fund balances of £293,777 (2020 - £428,309).

Statement of Trustees' Responsibilities

The trustees (who are also directors of SEED Madagascar for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of

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Year ending 30[th] June 2021

Section 1. Trustees’ Annual Report (including Directors' Report)

the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

These financial statements (comprising Section 1 Trustees’ Report, Section 2 Projects Report and Section 3 Financial Statements) have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

This report was approved by the Board and signed on its behalf on 30 March 2022 by

Sue Hillman Trustee & Director

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Section 2. Review of Projects and Benefit to the Public Year Ending 30[th] June 2021

Review of Projects and Benefit to the Public

This section provides an assessment of the main projects undertaken during the year. These reflect SEED’s programmatic areas of community health; water, sanitation, and hygiene; education infrastructure; sustainable livelihoods; and environmental conversation.

Prior to the pandemic, the World Bank had predicted that Madagascar’s growth would increase to 4.8% in 2019, its fastest pace in over a decade (World Bank, 2020). Despite a declining rate in poverty, 75% of the population live below the international poverty line of $1.90, compared to a regional average of 41% (World Bank, 2020). SEED mostly operates in the south of Madagascar, where this rate is 91% (Amnesty International, 2021).

2020 saw a sharp deceleration in economic activity. Gross domestic product fell by 7.1% in 2020, compared to an estimated growth rate of 5.2% just prior to the outbreak of COVID-19 (World Bank, 2020). This decline will adversely affect poverty rates and amplify needs across Madagascar.

With a human capital index among the lowest in the world, pre-pandemic Madagascar already had the world’s fourth highest rate of chronic malnutrition, with almost 50% of children under five suffering from stunting (World Bank, 2020). 2021 saw southern Madagascar’s most severe drought since 1981 (Acaps, 2021), which contributed to failed harvests and at least 1.27 million people in need of humanitarian support (ReliefWeb, 2021).

In response, SEED worked through seven health clinics to provide food supplements, protection rations, and information on nutrition and water, sanitation, and hygiene. Our teams supported 921 malnourished children, their families, and those in the 41 referring villages. Three cyclones in early 2022 have exacerbated the enduring drought, meaning SEED is set to continue food distribution in 2022.

COVID-19 has had a great impact on SEED itself. 20 of the 23 international staff based in Madagascar were repatriated in April 2020. Despite a shift to remote working, everyone in SEED rose to the challenge facing Madagascar with many staff building their knowledge, skill set and level of responsibility to meet the expanding needs. We supported local COVID Committees in their fight against the virus, spreading key health messages, masks and health base infrastructure across urban and rural communities. We designed and delivered new projects, including the start of emergency food distribution and piloting edible insects as a source of protein in rural communities. With the slow return of most of our international staff in December 2021 we are looking forward to the team being together once again.

A brief outline of this year’s principal projects is provided below. Unless stated otherwise, project outlines and achievements are cumulative to the 30th June 2021. Each of SEED’s projects contribute to the United Nations’ Sustainable Development Goals.

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Section 2. Review of Projects and Benefit to the Public Year Ending 30[th] June 2021

COVID-19 Response

To reduce COVID-19 transmission and minimise its long-term health impacts, SEED sought to increase resource provision and improve the capacity of healthcare providers to safely deliver health services and information across six communes, whilst also aiming to increase the communities’ confidence in the health care centres.

The project was completed in March 2021.

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Section 2. Review of Projects and Benefit to the Public Year Ending 30[th] June 2021

Sekoly

With over 1,300,000 primary-age children not enrolled in school and falling investment in school infrastructure, Madagascar’s education system is facing a crisis (UNICEF, 2019). Insufficient or even non-existent sanitation infrastructure in schools contributes to the transmission of harmful diseases, further impeding school attendance.

By improving education and sanitation infrastructure, increasing classroom capacity, and improving hygiene practices, Project Sekoly increases students' learning and health outcomes.

Emergency Food Distribution

Malnutrition rates have risen sharply in southern Madagascar, with admissions for severe acute malnutrition reaching approximately quadruple the five-year average.

SEED is responding to this crisis through the implementation of the Emergency Food Distribution Programme, supporting children suffering from moderate acute malnutrition (MAM) and severe acute malnutrition (SAM) and their families across 41 villages.

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Section 2. Review of Projects and Benefit to the Public Year Ending 30[th] June 2021

Oratsimba, Phase III

Lobster fishing is a main source of income for around 40 impoverished fishing communities in the Anosy region. However, there have been significant declines in lobster stock over recent decades, driven by rapid population growth and export market demand.

By strengthening local and regional capacity to implement adaptive, sustainable fisheries management, SEED economically empowers 850 fishers, contributing to poverty alleviation of 4,250 people and protecting 480km2 of marine biodiversity in southeast Madagascar.

Oratsimba, Phase III ended in June 2021.

Renitantely

There is a strong tradition of honey harvesting as a source of additional income amongst subsistence farmers in Anosy. However, the potential of beekeeping as a profitable and reliable livelihood is limited by a lack of training and resources, a lack of forage, and poor infrastructure which restricts market access.

SEED is building the capacity of beekeepers in Anosy to develop beekeeping as a sustainable livelihood. The project aims to strengthen modern beekeeping skills to improve honey yield and quality, enhance disease prevention and treatment, supplement forage, and strengthen routes to market.

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Section 2. Review of Projects and Benefit to the Public Year Ending 30[th] June 2021

Rural WASH Programme

Across the Anosy region, 97% of residents lack access to basic sanitation facilities (INSTAT, 2019), whilst 74% of the population do not have safe water sources. Gaps in the capacity of local governance structures exacerbate these challenges, contributing to high rates of WASHrelated diseases.

Employing a community-led approach, the Rural WASH is supporting over 190,000 people in the Anosy region to improve their WASH knowledge, practices, and services.

Ala, Phase I

Fragmentation of the Sainte Luce littoral forest (SLLF) endangers the survival of the three nocturnal lemur species and numerous other flora and fauna species that occupy the forest and cannot traverse the open habitat that separates fragments.

Project Ala aims to increase viable habitat inside the SLLF and reunite discontinuous lemur subpopulations by constructing four habitat corridors between five isolated forest remnants and the S8 North forest fragment.

Project Ala, Phase I ended in March 2021.

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Section 2. Review of Projects and Benefit to the Public Year Ending 30[th] June 2021

Ala, Phase II

SEED is now building on the progress made in Phase I to expand habitat corridor reforestation, understand community resource needs, build sustainable forest management structures with local stakeholders, and complete research that promotes adaptive learning within the project.

Mahampy

In the Anosy region, the weaving of mahampy, a locally sourced reed that grows in wetlands, is one of the few livelihood opportunities that enables women to earn household income. However, with little return on investment and with weavers vulnerable to prices set by buyers in a supplier-rich market, mahampy weaving is a low-income generating activity.

Project Mahampy works to increase the profitability of mahampy weaving and the sustainability of the mahampy reedbeds to protect and improve the livelihoods of women in rural Madagascar.

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Section 2. Review of Projects and Benefit to the Public Year Ending 30[th] June 2021

Rufus

The Sainte Luce Forest Fragment 6 (‘S6’) contains a P. rufus roost which is under intense pressure due to human disturbance and habitat loss. Illegal logging approximately 10 metres from the P. rufus roost was recorded in October 2020, resulting in bats temporarily feeling the roost and moved outside of the protected exclusion zone.

Project Rufus established an Enforcement Committee to strengthen the implementation of the local law and reduce the occurrence of further illegal activities.

Safidy, Phase IV

Limited by the country’s under-resourced healthcare and education systems, Madagascar’s young people have few reliable options for SRHR information.

Project Safidy collaborates with ministries and partner organisations to deliver rights-based sexual and reproductive health education and resources to young people in schools across Madagascar, reducing their vulnerability to HIV, STIs, and unintended pregnancies.

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Section 2. Review of Projects and Benefit to the Public Year Ending 30[th] June 2021

COVID-19 Rapid Response (Darwin/Defra)

SEED sought to address the impacts of Covid-19related food insecurity, with a rapid edible insect and crop farming pilot at the household level, designed to increase food security and dietary diversity across two rural communities.

Crops and edible insects were selected to provide short-term relief from food insecurity and the potential for longer-term recovery through supplementary livelihoods. Concurrently, research was conducted to determine the socio-economic impact of Covid-19 and its potential relationship with unsustainable practices.

This project finished in March 2021.

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Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

Financial Statements

Independent Auditor’s Report to the Members of SEED Madagascar

Opinion

We have audited the financial statements of SEED Madagascar (the ‘charitable company’) for the year ended 30th June 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including FRC’s Ethical Standard, and we have fulfilled our 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 charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other Information

The other information comprises the information included in the Trustees’ Annual Report and the Review of Projects and Benefit to the Public, other than the financial statements and our Auditor’s Report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006.

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

Matters on which we are Required to Report by Exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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

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

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

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but it 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 aggregate, they

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Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

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.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-thefi/description-of-the-auditor%E2%80%99s-responsibilities-for. 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.

Philip John Dymond FCCA (senior statutory auditor) For and on behalf of Cheyettes Ltd 167 London Road, Leicester, LE2 1EG Chartered Certified Accountants and Statutory Auditors

1 April 2022

SEED Madagascar: Report and Financial Statements 2021 Page | 22

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

Statement of Financial Activities

(incorporating the income and expenditure account) for the year ended 30th June 2021

Unrestricted
Funds
Note
£
Income and endowments
from:
Donations and legacies
2
112,729
Investments
4
99
Other
5
10,000
Total income
122,828
Expenditure on:
Raising funds
6
10,221
Charitable activities:
- projects
7
116,588
- education
8
63,353
Other
9
-
Total expenditure
190,162
Net income/(expenditure)
(67,334)
before transfers
Transfers between funds
97,186
Net income/(expenditure)
29,852
Other recognised gains and losses
Exchange rate gain/(loss)
(10,148)
Net movement in funds
19,704
Total funds brought forward
124,697
Total funds carried forward
144,401
17		 Designated
Funds
£
-
-
-
-
-
4,673
-
-
4,673
(4,673)
-
(4,673)
-
(4,673)
29,752
25,079		 Restricted
Funds
£
508,915
-
-
508,915
-
504,806
-
41,455
546,261
(37,346)
(97,186)
(134,532)
-
(134,532)
428,309
293,777		 Total
Total
Funds
Funds
2021
2020
£
£
621,644
748,214
99
1,008
10,000
-
631,743
749,222
10,221
12,221
626,067
596,365
63,353
62,295
41,455
46,715
741,096
717,596
(109,353)
31,626
-
-
(109,353)
31,626
(10,148)
3,531
(119,501)
35,157
582,758
547,601
463,257
582,758

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

SEED Madagascar: Report and Financial Statements 2021 Page | 23

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

Balance Sheet

as at 30th June 2021

Notes
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling
due within one year
16
Net current assets
Net assets
Funds
Restricted funds
17
Designated funds
18
Unrestricted funds - general
19
Total charity funds
20		 2021
£
£
1,273
2
_
1,275
6,798
466,733
_
473,531
(11,549)
_
461,982
_
463,257
_
293,777
25,079
144,401
_
463,257
___		 2021
£
£
1,273
2
_
1,275
6,798
466,733
_
473,531
(11,549)
_
461,982
_
463,257
_
293,777
25,079
144,401
_
463,257
___		 2020
£
£
2,651
2
_
2,653
106,099
535,005
_
641,104
(60,999)
_
580,105
_
582,758
_
428,309
29,752
124,697
_
582,758
___
_
293,777
25,079
144,401
_
463,257
___

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Whilst during this financial period total charity funds reduced by £119,501 (from £582,758 to £463,257), this was mainly felt within restricted funds and was due to predicted project expenditure, and in line with the SEED approach to avoid building excess idle reserves.

The financial statements were approved by the Board and signed on its behalf on 30 March 2022 by

Sue Hillman Trustee & Director

Registration number 03796669

SEED Madagascar: Report and Financial Statements 2021 Page | 24

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

Statement of Cash Flows

for the year ended 30th June 2021

Cash flows from operating activities
Cash generated from/(absorbed by) operations:
Income for the year
Adjustment for:
Investment income recognised in statement
of financial activities
Foreign exchange differences
Depreciation
Movements in working capital:
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Investing activities
Purchase of tangible fixed assets
Interest and investment income
Net cash generated from/(used in)
investing activities
Cash and cash equivalents at beginning of year
Effect of foreign exchange rates
Cash and cash equivalents at end of year		 2021
£
£

(119,501)
(28)
10,148
1,378
99,301
(49,450)
_
(58,152)
-
28
_
28
_
(58,124)
535,005
(10,148)
_
466,733
___		 2021
£
£

(119,501)
(28)
10,148
1,378
99,301
(49,450)
_
(58,152)
-
28
_
28
_
(58,124)
535,005
(10,148)
_
466,733
___		 2020
£
£
35,157
(1,008)
(3,531)
1,423
133,307
50,573
_
215,921
-
1,008
_
1,008
_
216,929
314,545
3,531
_
535,005
___

(58,152)
28
_
(58,124)
535,005
(10,148)
_
466,733
___		 -
1,008
___

SEED Madagascar: Report and Financial Statements 2021 Page | 25

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

1. Accounting Policies

1.1. Accounting Convention

The charity is a private company limited by guarantee registered in England and Wales. In the event of winding up, the liability in respect of the guarantee is limited to £10 per member. The address of the registered office is given in the reference and administrative information.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with the 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) issued in October 2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis, under the historical cost convention and are presented in Sterling, which is the functional currency of the charity, rounded to the nearest £.

The charity and its dormant subsidiary form a small group and it has therefore taken advantage of the exemptions available not to prepare group accounts.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2. Going Concern

The financial statements have been prepared on the going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure are sufficient with the level of reserves for the charity to be able to continue as a going concern.

1.3. Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the charity which have not been designated for any other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes.

Restricted funds are those which can only be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular restricted purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund are set out in the notes to the financial statements.

1.4. Income

Income is included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to it and the amount can be quantified with reasonable accuracy.

Income received by way of donations, gifts and legacies is included in full in the Statement of Financial Activities when receivable.

SEED Madagascar: Report and Financial Statements 2021 Page | 26

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Donated facilities are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

Investment income is included when receivable.

1.5. Expenditure

Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.

The costs of raising funds comprise those costs associated with attracting voluntary income.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of either an estimate of the proportion of time spent by staff or upon the usage of those activities.

1.6. Tangible Fixed Assets and Depreciation

Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Fixtures, fittings and equipment -20% straight line

All capital items in excess of £500 are capitalised as tangible fixed assets.

1.7. Investments

Fixed asset investments are stated at cost less provision for permanent diminution in value.

1.8. Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

1.9. Cash

Short term highly liquid investments held at fair value include cash on deposit and cash equivalents with a maturity of less than one year.

1.10. Leasing

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

1.11. Pensions

The pension costs charged in the financial statements represent the contribution payable by the charitable company during the year

SEED Madagascar: Report and Financial Statements 2021 Page | 27

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

1.12. Foreign Currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Statement of Financial Activities.

SEED Madagascar: Report and Financial Statements 2021 Page | 28

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

Notes on Accounts

2. Income from Donations and Legacies

Unrestricted

funds
£
Donations
76,230
Grants
22,417
Refund of tax (gift aid)
14,082
___
112,729
 Restricted
funds
£
57,418
451,253
244
___
508,915
 Total
2021
£
133,648
473,670
14,326
___
621,644
 Total
2020
£
176,864
540,734
30,616
___
748,214

In 2020 £141,908 of the above income was attributable to unrestricted funds and £606,306 to restricted funds.

3. Specific Donations and Grants



UNICEF
Department for Environment, Food & Rural Affairs
Guernsey Overseas Aid & Development Commission
Clark Mitchell
The Conservation, Food & Health Foundation
Silver Lady Fund
The Lifeplus Foundation
Teneo Limited
Ernest Kleinwort Charitable Trust
The Rufford Foundation
TradeAid UK
People’s Trust for Endangered Species
Other restricted donations and grants
Total restricted income
SEED Conservation & Research Programme
Other unrestricted income
Total donations and grants		 2021
£
199,652
60,374
24,915
18,232
17,334
15,000
14,734
11,800
10,000
10,000
5,000
4,965
116,909
_
508,915
2,105
110,624
_
621,644
___

SEED Madagascar: Report and Financial Statements 2021 Page | 29

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

4. Income from Investments

Unrestricted
funds
£
Interest receivable
99
 Restricted
funds
£
-
 Total
2021
£
99
 Total
2020
£
1,008

All income from investments was derived from bank account interest attributable to unrestricted funds.

5. Other income

Unrestricted
funds
£
Covid-19 support grants
10,000
 Restricted
funds
£
-
 Total
2021
£
10,000
 Total
2020
£
-

6. Expenditure on Raising Funds

Unrestricted
funds
£
Staff and contractors costs
6,302
Premises costs
877
Communication costs
95
Travel and volunteer costs
76
Legal and professional
106
Consultancy fees
148
Audit and accountancy fees
1,880
Office administration
515
Bank charges
222
___
10,221
 Restricted
funds
£
-
-
-
-
-
-
-
-
-
___
-
 Total
2021
£
6,302
877
95
76
106
148
1,880
515
222
___
10,221
 Total
2020
£
6,507
984
102
1,613
191
-
1,911
704
209
___
12,221

All of the above costs were attributable to unrestricted funds.

SEED Madagascar: Report and Financial Statements 2021 Page | 30

Section 3. Financial Statements Year Ending 30[th] June 2021

Independent Auditor’s Report to the Members of SEED Madagascar

7. Expenditure on Charitable Activities - Projects

Unrestricted
funds
£
Direct costs:
Institutional grants:
Project Activities (Madagascar)
15,875
Salaries and social security costs
14,113
_
29,988
_________
Support costs:_
Staff and contractor costs
75,611
Advertising
51
Premises costs
3,937
Travelling and volunteer expenses
739
Communication costs
754
Insurance
1,719
Legal and professional
213
Consultancy fees
296
Audit and accountancy fees
3,760
Office administration and project equipment
2,165
Subscriptions, membership and registration fees 758
Bank charges
443
Depreciation
827
______
91,273
___
121,261
___		 Restricted
funds
£
461,757
20,907
_
482,664
_
9,427
160
-
3,370
103
1,500
4,668
566
-
2,088
169
91
-
_
22,142
_
504,806
___		 Total
2021
£
477,632
35,020
_
512,652
_
85,038
211
3,937
4,109
857
3,219
4,881
862
3,760
4,253
927
534
827
_
113,415
_
626,067
___		 Total
2020
£
431,666
10,986
___
442,652
___
80,131
852
4,610
28,050
787
6,052
1,824
17,350
3,822
7,861
890
624
860
___
153,713
___
596,365
___

In 2020 £153,370 of the above costs were attributable to unrestricted and £442,995 to restricted funds.

Included above are various governance costs related to the management and administration of the charity in the sum of £71,622 (2020 - £74,222).

SEED Madagascar: Report and Financial Statements 2021 Page | 31

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

8. Expenditure on Charitable Activities - Education

Unrestricted
funds
£
Direct costs:
Salaries and social security costs
9,408
_
Support costs:_
Staff and contractor costs
44,107
Advertising
76
Premises costs
3,062
Travelling and volunteer expenses
468
Communication costs
429
Legal and professional
106
Consultancy fees
148
Audit and accountancy fees
3,760
Office administration and project equipment
637
Subscriptions, membership and registration fees 379
Bank charges
222
Depreciation
551
______
53,945
___
63,353
___		 Restricted
funds
£
-
_
-
-
-
-
-
-
-
-
-
-
-
-
_
-
___
-
___		 Total
2021
£
9,408
_
44,107
76
3,062
468
429
106
148
3,760
637
379
222
551
_
53,945
___
63,353
___		 Total
2020
£
2,804
___
45,548
183
3,628
3,922
459
191
-
3,822
527
439
209
563
___
59,491
___
62,295
___

Charitable expenditure within this education category relates to international outreach, fulfilling the charitable objective of advancing the education of the general public about the culture and biodiversity of Madagascar. This is achieved with an ongoing programme of educational outreach via social media networks, the SEED website, academic output, and presentations. SEED does not currently seek specific funding for this work which is resourced from non-restricted funds. Additional Madagascar-based elements of education such as WASH education, occur within projects and are included within the project activities category, detailed in note 7.

9. Other costs
UNICEF grant – underspend repayment		 2021
£
41,455
___		 2020
£
46,715
___

Under the terms and conditions of the UNICEF grant to SEED, amounts received which remain unspent at the end of a quarter are required to be repaid back to UNICEF. This provision represents management’s best estimate of this amount.

SEED Madagascar: Report and Financial Statements 2021 Page | 32

Section 3. Financial Statements Year Ending 30[th] June 2021

Independent Auditor’s Report to the Members of SEED Madagascar

10. Auditors' Remuneration 2021 2020
£ £
Auditors' remuneration - audit of the financial statements 3,110 3,130
___ ___
Auditors' remuneration - other fees:
Other financial services 6,291 6,425
___ ___

**11. **		 Employees
Employment costs 2021 2020
£ £
Wages and salaries 126,599 125,671
Social security costs 8,272 5,820
Employer contributions to defined contribution pension scheme 576 695
___ ___
135,447 132,186
___ ___

No employee earned £60,000 or more per annum in either year.

Trustees received no remuneration during the year (2020 - £nil) and no trustees were reimbursed for expenses incurred (2020 – one trustee reimbursed for travel and accommodation costs of £646).

Number of direct employees based in the UK

The average monthly number of employees
during the year were:
Salaries - full time staff		 2021
5
 2020
5

In addition to the above stated employees in the UK, SEED Madagascar is responsible for the employment of 2 international staff and a further 80 local staff based in Madagascar in salaried positions and the cost of these salaries is contained within project expenditure.

12. Pension Costs

The company operates a defined contribution pension scheme in respect of the UK employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £576 (2020 - £695).

SEED Madagascar: Report and Financial Statements 2021 Page | 33

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

13. Tangible Fixed Assets

----- Start of picture text -----
|||| |---|---|---| |Fixtures,|Total| |fittings and| |equipment| |Cost|£|£| |At 1st July 2020|21,757|21,757| |Additions|-|-| |_ _| |At 30th June 2021|21,757|21,757| |_ _| |Depreciation| |At 1st July 2020|19,106|19,106| |Charge for the year|1,378|1,378| |_ _| |At 30th June 2021|20,484|20,484| |_ _| |Net book values| |At 30th June 2021|1,273|1,273| |_ _| |At 30th June 2020|2,651|2,651| |_ _| |14.|Fixed Asset Investments| |Subsidiary|Total| |undertakings| |shares| |£|£| |Cost| |At 1st July 2020|2|2| |Additions|-|-| |_ _| |At 30th June 2021|2|2| |_ _| |Net book values| |At 30th June 2021|2|2| |_ _| |At 30th June 2020|2|2| |_ _| |The subsidiary undertaking, Azafady Limited, is a private limited company registered in England and Wales| |number 09994689. The investment represents all of the issued equity share capital in the company which was| |dormant throughout the period.| |15.|Debtors| |2021|2020| |£|£| |Prepayments and accrued income|6,798|106,099| |_|_|

----- End of picture text -----

The subsidiary undertaking, Azafady Limited, is a private limited company registered in England and Wales number 09994689. The investment represents all of the issued equity share capital in the company which was dormant throughout the period.

Included above is accrued income for donations, grants and legacies in the sum of £4,830 (2020 - £104,383) which were due but not received at the year-end. Prepayments and accrued income were high in 2020 due to accrued payments from UNICEF (£73,312), schools funding (£13,331) and Gift Aid (£9,312).

SEED Madagascar: Report and Financial Statements 2021 Page | 34

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

16.Creditors: Amounts Falling due in One Year

editors: Amounts Falling due in One Year
Trade creditors
Other taxes and social security costs
Other creditors
Accruals and deferred income
Pension contributions creditor
Deferred income
At beginning of the year
Released in year
At end of the year		 2021
£
411
2,302
501
8,335
-
___
11,549
 2020
£
758
6,545
343
53,214
139
_
60,999
_
2020
£
15
(15)
_
-
_
_
2021
£
-
-
_
-
___

Deferred income relates to a capital grant received for the acquisition of equipment that is being amortised over the expected useful life of the asset.

17. Restricted Income Funds

Votsira
Sekoly
Stitch Sainte Luce
Tatirano
Rufus
Renitantely
Fire Appeal
Safidy
Oratsimba
Ala
Mahampy
UNICEF
Protective Mask Fund
Staff Clark Fund
COVID
Micro Conservation Projects
Anosy Food
Menstrual Hygiene Project
Darwin Emergency Response
Solar
Chamelion
Oratsimba Interim		 At 1st
July 2020
£
19,466
73,751
8,365
544
1,145
7,157
1,218
154,729
7,512
39,179
31,535
74,367
1,235
6,250
1,856
-
-
-
-
-
-
-
___
428,309
 Income
£
8,415
103,581
4,053
-
2,000
702
-
-
50,067
46,381
-
199,652
689
-
-
1,448
61,634
2,805
10,307
15,929
252
1,000
___
508,915
 Expenses
£
(2,559)
(48,434)
(10,304)
-
(1,214)
(4,163)
-
(77,477)
(44,902)
(25,164)
(14,284)
(258,596)
(1,091)
(1,650)
(1,756)
-
(38,750)
-
(7,740)
(8,177)
-
-
___
(546,261)
 Transfers
At 30th
June 2021
£
£
-
25,322
(41,742)
87,156
(1,163)
951
(544)
-
(174)
1,757
(604)
3,092
-
1,218
(19,611)
57,641
(13,473)
(796)
(9,277)
51,119
(1,277)
15,974
-
15,423
(833)
-
(424)
4,176
(100)
-
-
1,448
(4,201)
18,683
-
2,805
(3,763)
(1,196)
-
7,752
-
252
-
1,000
_
_
(97,186)
293,777

SEED Madagascar: Report and Financial Statements 2021 Page | 35

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

Small negative balances detailed above (Darwin Oratsimba £796 and Darwin Emergency Response £1,196) are expected and will be compensated from non-restricted funding sources.

All restricted funds are held for the charity’s primary objectives and activities and have risen for the following specific purposes:

Votsira : is focused on maternal health research and explores cultural, social and economic factors affecting women's access to health services, covering the full birth cycle and postnatal care etc.

Sekoly: aims to increase access to formal education for children in order to alleviate poverty, build community capacity and enhance the quality of life in the Anosy region.

Stitch Sainte Luce: was set-up to offer embroidery training in Sainte Luce as an opportunity for local women to learn new skills in order to enhance family livelihoods.

Rufus: conducting collaborative research and local conservation awareness-raising to enhance the long-term survival of Madagascar’s flying fox bats and contribute to an international body of knowledge regarding their lifecycle and behaviour.

Renitantely: working to improve the sustainability and viability of beekeeping as a livelihood amongst rural communities in the Anosy region.

Fire Appeal: starting as an emergency fire response initiative, involving the distribution of essentials and rebuilding homes and latrines, this project now includes the development of fire mitigation strategies.

Safidy: aims to increase access to sexual and reproductive health and rights resources for students across Madagascar through a network approach.

Oratsimba: aims to encourage community-based, sustainable lobster management in isolated and impoverished Sainte Luce.

Ala: aims to increase and improve viable habitat for three endangered species of lemur in the Sainte Luce littoral forest through corridor reforestation and strengthened local and regional capacity.

Mahampy : aims to increase income for female traditional weavers and improve sustainable resource management of the mahampy reed beds on which they rely.

UNICEF: a large-scale rural sanitation project using community led total sanitation (CLTS) with the aim of reaching open defecation free (ODF) communities.

Mask Fund: creation of locally-made protective cloth masks for use of the most vulnerable to protect against infection and spread of COVID 19.

Staff Clark Fund: fund created to protect Malagasy staff and their families for medical and extraordinary expenses resulting from the pandemic.

Micro Conservation Projects: fund created to support small-scale research-based projects often being undertaken by program volunteers in furtherment of SEED’s conservation aims.

Anosy Food: a programme of food distribution, identifying and supporting malnourished children and their families via community-based clinics.

Menstrual Hygiene Project: supporting community-based menstrual hygiene, capacity building through awareness raising, and making and support of related infrastructure.

SEED Madagascar: Report and Financial Statements 2021 Page | 36

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

Darwin Emergency Response: support of communities through a period of dire food insecurity with the use of livelihoods-based efforts involving insect and chicken farming.

Solar: infrastructure-based project to transition SEED Madagascar’s Fort Dauphin office to solar energy.

Chameleon: aims to formally describe the newly discovered Palleon nasus species and establish a baseline understanding of the population to help inform a wider conservation action plan for the area.

Oratsimba Interim: aims to continue the work of Oratsimba, sustainable lobster management, (see above) in the interim period between funders.

The transfers from restricted funds have arisen to enable the charity to account for the cost of office and administration of the various projects undertaken.

18. Designated Income Funds

SEED Development At 1st
July 2020
£
29,752
___		 Income
£
-
___		 Expenses

£
(4,673)
___		 Transfers
£
-
___		 At 30th
June 2021
£
25,079
___

Seed Development Fund: funds set up by the trustees from unrestricted funds for the purpose of initial funding of several new Madagascar-based posts, including the Deputy Director, necessary for the transition of the Director of programmes and operations and to increase organisation capacity.

19. General Unrestricted Income Funds

General fund At 1st
July 2020
£
124,697
 Income
£
122,828
 Expenses Transfers/gains
£
£
(190,162)
87,038

 At 30th
June 2021
£
144,401

20. Analysis of Net Assets Between Funds


Restricted funds
Designated funds
Unrestricted funds		 Fixed
assets


£
-
-
1,275
___
1,275
 Net
current
assets
£
293,777
25,079
143,126
___
461,982
 Total
£
293,777
25,079
144,401
___
463,257

SEED Madagascar: Report and Financial Statements 2021 Page | 37

Section 3. Financial Statements Year Ending 30[th] June 2021 Independent Auditor’s Report to the Members of SEED Madagascar

21. Financial Commitments

The total minimum lease payments under non-cancellable operating leases are as follows:

Expiry date:
Within one year		 2021
£
1,618
___		 2020
£
2,084
___

22. Related Party Transactions

During the year the charitable company received aggregate donations from trustees in the sum of £1,200 (2020 - £1,200).

SEED Madagascar: Report and Financial Statements 2021 Page | 38