**REPORT AND FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023** ## **Section 1: Company and Charity** |**Section 1: Company and Charity**|| |---|---| |**Company and Charity Information**|**5**| |**Report and Financial Statements Year Ended 30 June 2023**|**6**| |Reference and Administrative Details|6| |Structure, Governance, and Management|6| |Trustee Appointment, Induction, and Training|7| |Objectives and Activities|8| |Staff and Volunteers|10| |Risk Management|11| |Delivery Risk|11| |Funding Risk|11| |Operational Risk|11| |Reputational Risk|11| |Legal Risk|11| |Internal Audit|11| |Financial Review|12| |Reserves Policy|12| |Fundraising Standards Information|13| |Statement of Trustees' Responsibilities|13| |**Review of Projects and Benefit to the Public**|**15**| |Ready for Rights|16| |Safidy, Phase IV Interim|17| |Votsira, Phase IV|17| |Sekoly|18| |Ala, Phase II|18| |Project Palms|19| |Renitantely, Interim|19| |Oratsimba, Phase IV|20| |Stitch, COVID-19 Recovery|20| |Mahampy|21| |Sakondry|21| |Emergency Food Distribution|22| |Rural WASH Programme|22| |**Financial Statements**|**23**| SEED Madagascar: Report and Financial Statements 2023 Page | 2 |Independent Auditor’s Report to the Members of SEED Madagascar|23| |---|---| |Opinion|23| |Basis for Opinion|23| |Conclusions Relating to Going Concern|23| |Other Information|23| |Opinions on Other Matters Prescribed by the Companies Act 2006.|24| |Matters on which we are Required to Report by Exception|24| |Responsibilities of Trustees|24| |Auditor’s Responsibilities for the Audit of the Financial Statements|24| |Use of our Report|25| |Statement of Financial Activities|26| |Statement of Cash Flows|28| |1.
Accounting Policies|29| |1.1.
Accounting Convention|29| |1.2.
Going Concern|29| |1.3.
Fund Accounting|29| |1.4.
Income|29| |1.5.
Expenditure|30| |1.6.
Tangible Fixed Assets and Depreciation|30| |1.7.
Investments|30| |1.8.
Debtors and Creditors Receivable/Payable Within One Year|30| |1.9.
Cash|30| |1.10.
Leasing|30| |1.11.
Pensions|30| |1.12.
Foreign Currencies|31| |Notes on Accounts|32| |2.
Income from Donations and Legacies|32| |3.
Specific Donations and Grants|32| |4.
Income from Investments|33| |5.
Other Income|33| |6.
Expenditure on Raising Funds|33| |7.
Expenditure on Charitable Activities - Projects|34| |8.
Expenditure on Charitable Activities - Education|35| |9.
Other Costs|35| SEED Madagascar: Report and Financial Statements 2023 Page | 3 |10.|Auditors' Remuneration|36| |---|---|---| |11.|Employees|36| |12.|Pension Costs|36| |13.|Tangible Fixed Assets|37| |14.|Fixed Asset Investments|37| |15.|Debtors|37| |16.|Creditors: Amounts Falling due in One Year|38| |17.|Restricted Income Funds|38| |18.|Designated Income Funds|41| |19.|General Unrestricted Income Funds|41| |20.|Analysis of Net Assets Between Funds|41| |21.|Financial Commitments|41| |22.|Related Party Transactions|42| _**Cover Picture:** Madame Norline, one of the Mahampy cooperative weavers, at the workshop in Sainte Luce._ SEED Madagascar: Report and Financial Statements 2023 Page | 4 Year ending 30[th] June 2023 Section 1. Trustees’ Annual Report (including Directors' Report) ## **Company and Charity Information** |**Directors and trustees**|Jessica Burston (Chair)| |---|---| ||Herizo Andrianandrasana| ||Dhaquir Kantande Bashir| ||Miranda Coultas| ||Oisin Crawley| ||Susan Hillman| ||Victoria Smith| ||Andrew Turner| |**Secretary**|Mark Jacobs| |**Company number**|03796669| |**Charity number**|1079121| |**Registered office**|7 Bell Yard| ||London| ||WC2A 2JR| |**Accountants**|Cheyettes Ltd| ||167 London Road| ||Leicester| ||LE2 1EG| |**Auditors**|Westmore Accounting Limited| ||81 Joel Street,| ||Northwood Hills,| ||Middlesex| ||HA6 1LL| |**Bankers**|HSBC Bank plc| ||25 Notting Hill Gate| ||London| ||W11 3JJ| ||Nationwide Bank| ||Nationwide House| ||Pipers Way| ||Swindon| ||SN3 1TX| SEED Madagascar: Report and Financial Statements 2023 Page | 5 Year ending 30[th] June 2023 Section 1. Trustees’ Annual Report (including Directors' Report) ## **Report and Financial Statements Year Ended 30 June 2022** 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 2023. 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 1stAugust 2019| |---|---| |Dhaquir Kantande Bashir|Appointed 19thDecember 2022| |Jessica Burston|Appointed 10thNovember 2019| |Miranda Coultas|Appointed 1stAugust 2019| |Oisin Crawley|Appointed 1stJune 2010| |Susan Hillman|Appointed 10thNovember 2019| |Sarah MacQuillin|Resigned 4thJune 2023| |Victoria Smith|Appointed 5thSeptember 2016| |Andrew Turner|Appointed 5thJuly 2000| SEED Madagascar’s (SEED’s) pay and remuneration are reviewed every year for key roles (Managing Director, Director of Programmes and Operations, Partnerships, and Programmes Manager and Programme Heads). The process is overseen by the HR and Remuneration Committee, which consist of three trustees. Pay decisions are informed by annual budget projections and benchmarking. Benchmarking is performed internally and the process is overseen by the Managing Director and HR and Remuneration Committee to ensure validity, robustness, and fairness. Benchmarking is informed by available salary data of similar roles in similar organisations. Changes in pay are implemented at the start of the financial year from July 1[st] . Salaries of national staff are considered for uplift annually in February and take into consideration the beginning of year uplifts suggested by the Malagasy government. Uplifts consist of a blanket % and a longevity %. Positions in the lower salary bands will also be considered against the international poverty line to ensure that no position is paid at or below this. Positions are also considered on an ad hoc basis in line with market forces. SEED’s salary grid is authorised by the Ministry of Employment in line with Malagasy law. Salaries of other international staff are reviewed on an annual basis in line with SEED's salary grid. This takes into account benchmarking and inflation costs in Madagascar. SEED Madagascar: Report and Financial Statements 2023 Page | 6 Year ending 30[th] June 2023 Section 1. Trustees’ Annual Report (including Directors' Report) ## **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, 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. Jessica Burston and Miranda Coultas visited Madagascar during 2022. During her stay, Jessica visited various project sites, was introduced to local community leaders, gained first-hand experience into the delivery of projects, and supported SEED’s internal audit function. Miranda focused on the SEED office, conducting a safeguarding audit, later presenting this to the trustee board as part of the SEED internal audit. SEED Madagascar: Report and Financial Statements 2023 Page | 7 Year ending 30[th] June 2023 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: ## _(1) To advance education amongst:_ - _(a) The inhabitants of Madagascar; and_ - _(b) the general public about the culture and biodiversity of Madagascar;_ - _(2) To relieve poverty amongst the inhabitants of Madagascar;_ - _(3) To promote sustainable development for the benefit of the public by:_ _(a) the preservation, conservation and the protection and the prudent use of resources in_ _Madagascar including by increasing international understanding of the_ _challenges faced by communities and biodiversity in Madagascar;_ _(b) the relief of poverty and the improvement of the conditions of life in socially and_ _economically disadvantaged communities in Madagascar; and_ _(4) To develop the capacity of disadvantaged communities in such a way that they are better able_ _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 have an 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. SEED Madagascar: Report and Financial Statements 2023 Page | 8 Year ending 30[th] June 2023 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, which is: _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 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. SEED Madagascar: Report and Financial Statements 2023 Page | 9 Year ending 30[th] June 2023 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 two offices in Madagascar but no longer has a permanent office in London. The London office was relinquished in October 2022 as it has been underused since the start of the pandemic. Key staff work from shared office spaces or home. This move to virtual working has enabled SEED to save funds, reduce our carbon footprint, and open up posts to a more global audience. 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 (Boniface Razanamara); 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. The Partnerships and Programmes Manager 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. SEED Madagascar: Report and Financial Statements 2023 Page | 10 Year ending 30[th] June 2023 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. SEED Madagascar: Report and Financial Statements 2023 Page | 11 Year ending 30[th] June 2023 Section 1. Trustees’ Annual Report (including Directors' Report) ## **Financial Review** In 2022-2023, SEED largely retained the income of the previous year, which itself represented a 50% increase from the previous year (2020-2021). Income stabilised from £1,033,915 to £1,007,056. Seventy-five per cent of that total income was received for restricted purposes, with the most significant restricted incomes ringfenced to food distribution and community resilience (£209,695) and the SEED school building programme (£164,462). Retention of this increased income was in part due to the continuation of important funding partnerships with Aeonian Foundation (£174,924) and Humedica (£131,655), as well as growth in longerterm corporate partnerships with Teneo (£55,486) and their associated supporters. In notes 5, 6, and 7, it can be seen that office administration and project equipment expenditure has increased during the year. With a focus this year on improving cyber security, there has been significant expenditure on updating office laptops and software, which has been reflected in these figures. The portion of reserves held in Euros (≈ €200,000 or one-third of total reserves) resulted in a small exchange rate loss of £1,186 versus the 2021-2022 gain of £645. Expanded SEED restricted income supported growth in unrestricted funds with a cumulative net transfer of £51,731. For the 2022-2023 period, expenditure increased from £927,352 to £960,668, reflecting the increasing capacity to spend funds and deliver projects. The most significant project expenditures reflected the highest income areas, with school spending reaching £177,505, whilst efforts around distribution and resilience fell a little from £223,503 in the previous year to £203,097. Outside of a small proportional increase, the breakdown of expenditures across unrestricted, designated, and restricted reserves showed little change. Reserves overall grew from £570,465 to £615,666, with that growth spreading between unrestricted (£14,454), restricted (£17,585), and designated (£13,163). Unrestricted (free) reserves increased to £162,031. Financial forecasts for the coming year predict an overall increase in income and expenditure for 2023 -2024, maintaining the income of over £1,000,000. ## **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 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 that 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. SEED Madagascar: Report and Financial Statements 2023 Page | 12 Year ending 30[th] June 2023 Section 1. Trustees’ Annual Report (including Directors' Report) During the year, the charity’s income totalled £1,007,056 and expenditure £960,668, resulting in net income before other gains of £45,202. With unrestricted reserves increasing by £14,454, this net income was seen within all funds and is in line with expected project expenditure, leaving a healthy restricted fund balance of £426,429. The Charity has no endowment capital. At 30[th] June 2022 the charity had unrestricted funds of £162.132 (2022 - £147,577), designated funds of £27,206 (2022 - £14,043), and restricted fund balances of £426,429 (2022 - £408,839). ## **Fundraising Standards Information** SEED Madagascar’s main fundraising approach is to establish financial partnerships with trusts and foundations, statutory funders, and corporate organisations. Additionally, SEED makes appeals to the public via social media. The charity adheres to the fundraising standards laid out in the Charity Commission’s CC20 guidance on charity fundraising. Additionally, fundraising is carried out in line with SEED’s Donations Policy, Data Protection Policy, Safeguarding at Risk Adults Policy, and Code of Conduct. SEED does not contract fundraising activity to external parties. SEED’s SCRP programme involves volunteers fundraising on our behalf in accordance with aforementioned standards and policies. We have not received any complaints about our fundraising practice during the year. ## **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: - select suitable accounting policies and apply them consistently; - observe the methods and principles in the Charities SORP 2019 (FRS 102); - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 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 the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. SEED Madagascar: Report and Financial Statements 2023 Page | 13 Year ending 30[th] June 2023 Section 1. Trustees’ Annual Report (including Directors' Report) In so far as the trustees are aware: - there is no relevant audit information of which the charitable company's auditors are unaware, and - the trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 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 2023 by Jessica Burston Trustee, Director & Chair SEED Madagascar: Report and Financial Statements 2023 Page | 14 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **Review of Projects and Benefit to the Public** This section provides an overview of the main projects undertaken during the year. These reflect SEED’s programmatic areas of community health; education infrastructure; rural livelihoods; environmental conversation; and water, sanitation, and hygiene (WASH). Madagascar has one of the highest poverty rates in the world, with more than 70% of the population living on less than US$1.90 per day (WFP, 2023). This is attributed to a complex web of political, economic, environmental, and social factors including poor governance, the increasing climate crisis, and limited economic growth (World Bank, 2023; WFP, 2023). The Covid-19 pandemic placed additional pressure on an already vulnerable economy, causing it to contract by 7.8 per cent, reversing nearly a decade of income per capita gains (International Trade Administration, 2021; World Bank, 2022). Although the country’s GDP is gradually recovering following the pandemic, inflation rates rose from 6.9% in June 2022 to 11.3% in June 2023 (World Bank, 2023, AFDB, 2023). The high cost of food and low crop harvests, due to inflation and climate crisis, have exacerbated malnutrition and food insecurity, especially in southeast Madagascar (Relief Web, 2023). Recovery following cyclones Batsirai, Emnati, and Freddy has been slow, and has been further compounded by drought and water related diseases (WFP, 2023). Other challenges experienced include constrained access to healthcare; cyclone Freddy, for instance, left 23 health centres roofless affecting health access for about 117,000 people. This cyclone destroyed 672 classrooms, affecting 70,272 school going children, increasing the risk of school failure and dropout. The back-to-back crises have also increased women’s and girls’ exposure to gender based violence and inequalities (Relief Web, 2023). In response to the intensification and diversification of these challenges, our programmes have sought to improve the immediate health, social, environmental, and economic needs of communities. This is to enable recovery, whilst supporting and building the longer-term resilience of communities to reduce the impact of future shocks. To achieve this, our programmes support individuals, governments, and organisations to build community capacity, mitigate the impacts of climate change, improve human development outcomes, and conserve the fragile ecosystems and biodiversity. To further foster resilient communities, SEED continues to refine its approach, seeking to maximise impact. Strategic movement towards adopting a programmatic approach across departments has been achieved, with the newly developed Organisational Strategy 2023-2033 informing SEED’s long-term approach. 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 2023. Each of SEED’s projects contribute to the United Nation’s Sustainable Development Goals. SEED Madagascar: Report and Financial Statements 2023 Page | 15 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **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 with acute malnutrition and their families. To support communities in the transition toward recovery and resilience to future shocks, the project has an increased focus on nutrition, health, and WASH support. - 90 community health workers were trained on family planning and maternal and child health alongside a nutrition refresher session. - Community outreach sessions have been successful with 240 safe deliveries and 1,227 users of family planning services recorded by SEED in October 2022. - 74,100 Ready-to-Use-Therapeutic-Food (RUTF) sachets were distributed to 1,338 Moderately Acute Malnourished (MAM) children in total. Recovery rate was over 99.73%. - A total of 41,500 kilograms of rice, 26,760 cups of beans, and 4,640 litres of oil were distributed to the family members of children enrolled in the project, to prevent sharing of RUFT among family members. SEED Madagascar: Report and Financial Statements 2023 Page | 16 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **Safidy, Phase IV Interim and V** Safidy Phase IV Interim ended in March 2023, paving way for Phase V, which began in April 2023. Limited by the country’s under-resourced healthcare and education systems, young people in Madagascar have few reliable options for sexual and reproductive health and rights (SRHR) information. Project Safidy collaborates with national and local ministries and NGOs to deliver SRHR education and resources to young people in schools across Madagascar to reduce vulnerability to HIV, STIs, and unintended pregnancy. - SEED successfully collaborated with the Ministry of National Education and the SRHR Network initiative to deliver comprehensive SRHR training to 456 in-service teachers in 25 high schools. - − The SRHR Network was successfully registered as a legal organisation on the 4[th] of November 2022. − SEED successfully facilitated the third National SRHR Network Conference. ## **SCRP: Palms** Palms species across Madagascar are highly threatened, facing a variety of pressures. In Sainte Luce, palm species are in decline and their populations are poorly understood, threatening both biodiversity and local livelihoods. In response, Project Palms utilises research and conservation action to understand and improve the population status of six key palm species across Sainte Luce. SEED’s multifaceted approach includes completing a population census, identifying critical habitats, and planting new saplings to bolster natural populations. - 5,117 seeds were collected. Of these, 4,913 seeds were planted. - 1,701 palm seedlings germinated in SEED’s nursery, nearing project target of 1,800. - 120 microhabitat assessments were completed; 20 for each of the six-palm species. - 10 focus groups were conducted with 150 members of Sainte Luce and Ebikika communities to inform the development of a community-centred conservation action plan. SEED Madagascar: Report and Financial Statements 2023 Page | 17 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **Sekoly** With over 1,700,000 primary-age children (around 69.4%) not enrolled in school and falling investment in school infrastructure, Madagascar’s education system is facing a crisis (UNICEF, 2023). 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, Programme Sekoly increases students' learning and health outcomes. - Completed at least seven classrooms, 23 pit latrines, four menstrual hygiene management (MHM) facilities, five 10,000L water harvesting tanks, and two teacher accommodation buildings. Additionally, five roofs, three latrines, two water harvesting systems, and one well were repaired. - Installation of 396 classroom furniture units (desks, teacher seats, blackboards and cupboards). - Delivery of WASH education to 97 teachers and 876 students, and delivery of MHM education to 90 female students. ## **Ala, Phase II** Fragmentation of the Sainte Luce littoral forest (SLLF) endangers the survival of three Endangered nocturnal lemur species that cannot traverse the open habitat between forest fragments, as well as numerous other flora and fauna species. Project Ala, Phase II is working to increase viable habitat inside the SLLF and reunite discontinuous lemur subpopulations by establishing five habitat corridors between five isolated forest remnants and a larger forest fragment. - 2,799 native trees were planted to maintain floral species densities and 91% mean whole corridor native survival rate was observed in June 2023. - 6,600 native trees were watered and mulched under the new corridor management strategy. - 84 stakeholders from eight communities attended fire mitigation meetings. - Four Red-Collared Brown lemurs (2M/2F) were spotted in Corridor 1. - Methodology for camera trap data collection redefined and cameras re-installed. - Eight landowners were engaged on the future of corridor management. SEED Madagascar: Report and Financial Statements 2023 Page | 18 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **Oratsimba, Phase IV** Lobster fishing is a main source of income for around 40 fishing communities in the Anosy region. However, there have been significant declines in lobster stock over recent decades, driven by rapid population growth, (export) market demand, climate change, and unsustainable fishing practices. Project Oratsimba is empowering over 850 fishers to implement adaptive and sustainable locallymanaged marine areas (LMMAs) through capacity building and the strengthening of LMMA structures to protect 480km[2 ] of marine biodiversity in southeast Madagascar. - The first of a series of financial management workshops has been delivered to Fisheries Management Committee members and their partners. - 67 school students received a conservation awareness class. - 57 participants attended and evaluated their financial training sessions. - First savings scheme payments made by Fisheries Management Committee members. ## **Votsira, Phase IV** Madagascar’s lack of sufficient qualified healthcare providers and limited access to information about child and maternal health restricts mothers and their children from receiving lifesaving services. Project Votsira works to improve attitudes and knowledge of community members and build the capacity of healthcare providers to deliver maternal and child health education and services to protect the health of mothers and children. - 1,320 caregivers were recruited and commenced education sessions. - Community health workers conducted 264 education sessions in 11 communities. - Community health workers conducted household follow-up visits with 2,191 mothers. - Project Votsira’s Community Liaison Officers were trained to effectively facilitate community focus groups in order to thoroughly gather qualitative data for monitoring, evaluation, and learning. SEED Madagascar: Report and Financial Statements 2023 Page | 19 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **Masoandro Pilot** Just one third of Madagascar’s total population (33.7%) have access to electricity, an issue that is further exacerbated in rural regions, where only 10.9% have access. Lack of electricity in schools impacts the quality of education and restricts educational performance for students. Solar Pilot aims to improve quality of education through increasing access to electricity in primary schools in rural Madagascar. - SEED is collaborating with Solar United, a coalition of two other NGOs who are implementing solar projects in Madagascar. - In April 2023, SEED constructed light library infrastructure at Emagnevy and Esohihy schools. The libraries have rechargeable power banks and lamps that are also rented out to the community. - Electricity Management Committees were established in both schools. The committees manage the library operations and mobilises the community to use the solar service. ## **Renitantely Interim** Beekeeping is a profitable and reliable livelihood activity, limited by a lack of forage, poor market access, and a lack of capital for beekeepers to invest in their businesses. SEED is supporting independent beekeepers in six rural communities to improve beekeeping as a viable and sustainable livelihood by improving market access, supplementing forage, and supporting beekeepers in the maintenance and expansion of their apiaries. - Distributed materials to subsidise cost of 48 hives for 12 beekeepers. In addition, all communities received beekeeping equipment, including smokers, suits, and queen excluders. - From September 2022 to February 2023, hive numbers increased from 320 to 450. - 465 fruit tree seedlings and 155 vegetable seed packages were distributed to beekeepers to supplement forage for bees in colder seasons. - Pest management and hive splitting training was conducted. SEED Madagascar: Report and Financial Statements 2023 Page | 20 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **Mahampy, Phase II** 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. Through the establishment of the Mahampy Weavers’ Cooperative, the project is working to improve the profitability and sustainability of _mahampy_ weaving. Mahampy Phase II began in September 2022 with a focus on capacity building to improve the weaving skills and literacy levels of cooperative members and the establishment of a saving scheme to help members save for annual school fees for their children. - Over 80% of members attended at least one literacy education session and departmental role training. - 83 women made a long-term saving plan (three times higher enrolment than expected). - High overall engagement; 93% attendance during departmental role training. - Completed two quarterly drone surveys of the wetlands and the report on ecological baseline of Mahampy reedbeds. SEED Madagascar: Report and Financial Statements 2023 Page | 21 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements 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 2023, 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: - give a true and fair view of the state of the charitable company's affairs as at 30th June 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **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. SEED Madagascar: Report and Financial Statements 2023 Page | 22 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements 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. ## **Matters on which we are Required to Report by Exception** We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustees** As explained more fully in the trustees' responsibilities statement, 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** We have been appointed as auditor under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. SEED Madagascar: Report and Financial Statements 2023 Page | 23 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar 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. - Identified the legal and regulatory framework within which the charitable company operates to determine the material amounts and disclosures in the financial statements; - Reviewed the charitable company’s internal control procedures in order to assess the level of risk, including fraud risk; - Tested sample items to supporting documentation, including third party confirmations and journal entries; - Performed walkthrough tests to determine the implementation of systems and controls; - Assessed the accuracy of disclosures in the financial statements; and - Reviewed minutes of trustees meetings during and subsequent to the year end. 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. Simon Weston FCCA (senior statutory auditor) For and on behalf of Westmore Accounting Limited Chartered Certified Accountants and Statutory Auditors 81 Joel Street, Northwood Hills, Middlesex HA6 1LL Date: 2024 SEED Madagascar: Report and Financial Statements 2023 Page | 24 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **Statement of Financial Activities** **(incorporating the income and expenditure account) for the year ended 30th June 2023** |**Unrestricted**
**Funds**
**Note**
**£**
**Income and endowments**
**from:**
_Donations and legacies_
**2**
227,682
_Investments_
**4**
4,429
**Total income**
232,111
**Expenditure on:**
_Raising funds_
**5**
18,195
_Charitable activities:_
- projects
**6**
166,520
- education
**7**
83,487
_Other_
**8**
-
**Total expenditure**
268,202
**Net income/(expenditure)**
(36,091)
**before transfers**
Transfers between funds
51,731
**Net income/(expenditure)**
15,640
**Other recognised gains and losses**
Exchange rate gain/(loss)
(1,186)
**Net movement in funds**
14,454
Total funds brought forward
147,577
**Total funds carried forward**
162,031|**Designated**
**Funds**
**£**
12,500
-
12,500
-
24,337
-
-
24,337
(11,837)
25,000
13,163
-
13,163
14,043
27,206|**Restricted**
**Funds**
**£**
762,445
-
762,445
-
660,221
-
7,908
668,129
94,316
(76,731)
17,585
-
17,585
408,844
426,429|**Total**
**Funds**
**2023**
**£**
1,002,627
4,429
1,007,056
18,195
851,078
83,487
7,908
960,668
46,388
-
46,388
(1,186)
45,202
570,464
615,666|**Total**
**Funds**
**2022**
**£**
1,033,890
24| |---|---|---|---|---| |||||1,033,914| |||||13,673
820,015
72,858
20,807| |||||927,353| |||||106,561
-| |||||106,561
645| |||||107,206
463,258| |||||570,464| 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 2023 Page | 25 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **Balance Sheet** ## **as at 30th June 2023** |**Notes**
**Fixed assets**
Tangible assets
**12**
Investments
**13**
**Current assets**
Debtors
**14**
Cash at bank and in hand
**Creditors: amounts falling**
**due within one year**
**15**
**Net current assets**
**Net assets**
**Funds**
Restricted funds
**16**
Designated funds
**17**
Unrestricted funds - general
**18**
**Total charity funds**
**19**|**2023**
**£**
**£**
-
2
_________
2
7,488
624,102
_________
631,590
(15,926)
_________
615,664
_________
615,666
_________
426,829
27,206
162,031
_________
615,666
_________|**2022**
**£**
**£**
447
2
_________
449
9,919
570,042
_________
579,961
(9,946)
_________
570,015
_________
570,464
_________
408,844
14,043
147,577
_________
570,464
_________| |---|---|---| The financial statements were approved and authorised for issue by the Board on 2024. Jessica Burston Trustee & Director Registration number 03796669 SEED Madagascar: Report and Financial Statements 2023 Page | 26 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **Statement of Cash Flows** ## **for the year ended 30th June 2023** |**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 and loss on disposal of assets
_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
**Cash and cash equivalents at end of year**|**2023**
**£**
**£**

46,388
(4,429)
(1,186)
448
2,430
5,980
_________
49,631
-
4,429
_________
4,429
_________
54,060
570,042
_________
624,102
_________|**2022**
**£**
**£**
106,561
(24)
645
825
(3,118)
(1,603)
_________
103,286
-
24
_________
24
_________
103,310
466,732
_________
570,042
_________| |---|---|---| SEED Madagascar: Report and Financial Statements 2023 Page | 27 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements 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 2023 Page | 28 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements 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 2023 Page | 29 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements 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 2023 Page | 30 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **Notes on Accounts** ## **2. Income from Donations and Legacies** |**Unrestricted**

**funds**
**£**
Donations and gifts
121,843
Legacies
5,000
Grants
89,340
Refund of tax (gift aid)
23,999
_________
240,182
_________|**Restricted**
**funds**
**£**
97,907
-
664,538
-
_________
762,445
_________|**Total**
**2023**
**£**
219,750
5,000
753,878
23,999
_________
1,002,627
_________|**Total**
**2022**
**£**
459,667
-
539,679
34,544
| |---|---|---|---| ||||_________
1,033,890
_________| In 2022 £176,708 of the above income was attributable to unrestricted funds and £857,182 to restricted funds. ## **3. Specific Donations and Grants** |**Specific Donations and Grants**|| |---|---| |

Aeonian Foundation
Humedica E.V.
Teneo Limited
Foundation Leopardess
Blue Ventures
Clark Mitchell
EUI Limited
Guernsey Overseas Aid & Development Commission
Carlo Malka
Foundation Franklin
Panther Ltd
Seacology
Thandizo
Silver Lady Foundation
TradeAid UK
The Rowan Trust
James Family Charitable Trust
SEED Conservation & Research Programme
Other donations and grants
**Total donations and grants**|**2023**
**£**
174,924
131,655
55,486
43,993
41,200
40,400
39,767
27,499
19,000
15,930
15,000
11,321
5,000
5,000
5,000
4,000
4,000
28,641
334,811
| ||_________
1,002,627
_________| SEED Madagascar: Report and Financial Statements 2023 Page | 31 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **4. Income from Investments** |**Unrestricted**
**funds**
**£**
Interest receivable
4,429
|**Restricted**
**funds**
**£**
-
|**Total**
**2023**
**£**
4,429
|**Total**
**2022**
**£**
24
| |---|---|---|---| All income from investments was derived from bank account interest attributable to unrestricted funds. During this financial year SEED has looked to maximise the income from reserves and as such has opened several money market timed investments, with HSBC, which have resulted in increased interest. ## **5. Expenditure on Raising Funds** |**Unrestricted**
**funds**
**£**
Staff and contractors costs
6,999
Premises costs
588
Communication costs
174
Travel and volunteer costs
2,676
Legal and professional
137
Consultancy fees
1,561
Audit and accountancy fees
3,290
Office administration
2,473
Bank charges
297
_________
18,195
|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
_________
-
|**Total**
**2023**
**£**
6,999
588
174
2,676
137
1,561
3,290
2,473
297
_________
18,195
|**Total**
**2022**
**£**
4,938
987
82
3,551
158
655
2,234
818
250
| |---|---|---|---| ||||_________
13,673
| All of the above costs were attributable to unrestricted funds. SEED Madagascar: Report and Financial Statements 2023 Page | 32 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **6. Expenditure on Charitable Activities - Projects** |**Unrestricted**
**funds**
**£**
_Direct costs:_
Institutional grants:
Project Activities (Madagascar)
53,075
Contractor costs
14,068
_________
67,143
_________
_Support costs:_
Staff costs
83,986
Advertising
144
Premises costs
2,700
Travelling and volunteer expenses
9,923
Communication costs
842
Insurance
5,057
Legal and professional
275
Consultancy fees
3,122
Audit and accountancy fees
6,580
Office administration and project equipment
9,079
Subscriptions, membership and registration
1,144
Bank charges
593
Depreciation/loss on disposal of assets
269
_________
123,714
_________
**190,857**
**_________**|**Restricted**
**funds**
**£**
608,083
3,739
_________
611,822
_________
6,559
-
-
18,068
126
8,498
-
3,884
2,400
8,863
-
1
-
_________
48,399
_________
**660,221**
**_________**|**Total**
**2023**
**£**
661,158
17,807
_________
678,965
_________
90,545
144
2,700
27,991
968
13,555
275
7,006
8,980
17,942
1,144
594
269
_________
172,113
_________
**851,078**
**_________**|**Total**
**2022**
**£**
621,159
56,493
| |---|---|---|---| ||||_________
677,652
| ||||_________
69,749
309
4,613
29,639
922
11,476
315
7,962
4,469
10,931
983
500
495
| ||||_________
142,363
| ||||_________
**820,015**
**_________**| In 2022, £149,123 of the above costs were attributable to unrestricted and £670,892 to restricted funds. Included above are various governance costs related to the management and administration of the charity in the sum of £88,006 (2022 - £66,560). SEED Madagascar: Report and Financial Statements 2023 Page | 33 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **7. Expenditure on Charitable Activities - Education** |**Unrestricted**
**funds**
**£**
_Direct costs:_
Contractor costs
9,378
_________
_Support costs:_
Staff costs
48,992
Advertising
216
Premises costs
2,112
Travelling and volunteer expenses
5,722
Communication costs
783
Legal and professional
138
Consultancy fees
1,561
Audit and accountancy fees
6,580
Office administration and project equipment
6,957
Subscriptions, membership and registration
572
Bank charges
297
Depreciation/loss on disposal of assets
179
_________
74,109
_________
**83,487**
**_________**|**Restricted**
**funds**
**£**
-
_________
-
-
-
-
-
-
-
-
-
-
-
-
_________
-
_________
**-**
**_________**|**Total**
**2023**
**£**
9,378
_________
48,992
216
2,112
5,722
783
138
1,561
6,580
6,957
572
297
179
_________
74,109
_________
**83,487**
**_________**|**Total**
**2022**
**£**
21,939
| |---|---|---|---| ||||_________
34,567
463
3,626
4,503
367
158
655
4,469
1,063
468
250
330
| ||||_________
50,919
| ||||_________
**72,858**
**_________**| 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 6. ## **8. Other Costs** |UNICEF grant – underspend repayment|**2023**
**£**
7,908
_________|**2022**
**£**
20,807
_________| |---|---|---| SEED Madagascar: Report and Financial Statements 2023 Page | 34 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **9. Auditors' Remuneration** |**2023**
**£**
Auditors' remuneration - audit of the financial statements
9,000
_________
Auditors' remuneration - other fees:
Other financial services
-
_________

**10.**
**Employees**
**Employment costs**
**2023**
**£**
Wages and salaries
138,033
Social security costs
8,466
Employer contributions to defined contribution pension scheme
37
_________
146,536
_________
No employee earned £60,000 or more per annum in either year.
Trustees received no remuneration or were reimbursed for expenses incurred (2022 – £nil).
**Number of direct employees based in the UK**
The average monthly number of employees
**2023**
during the year were:
Salaries - full time staff
5
_________|**2022**
**£**
3,130
_________
8,042
_________
**2022**
**£**
103,876
5,378
-
_________
109,254
_________
**2022**
4
_________| |---|---| 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. ## **11. Taxation** The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. SEED Madagascar: Report and Financial Statements 2023 Page | 35 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **12. Tangible Fixed Assets** |**Fixtures,**

**fittings and**
**equipment**
**Cost**
**£**
At 1st July 2022
21,757
Additions
(21,757)
_________
At 30th June 2023
-
_________
**Depreciation**
At 1st July 2022
21,309
Charge for the year
(21,309)
_________
At 30th June 2023
-
_________
**Net book values**
At 30th June 2023
-
_________
At 30th June 2022
449
_________
**13.**
**Fixed Asset Investments **
**Subsidiary**
**undertakings**
**shares**
**£**
**Cost**
At 1st July 2022
2
Additions
-
_________
At 30th June 2023
2
_________
**Net book values**
At 30th June 2023
2
_________
At 30th June 2022
2
_________|**Total**
**£**
21,757

(21,757)
_________
-
_________
21,309

(21,309)
_________
-
_________
-
_________
449
_________
**Total**

**£**
2
-
_________
2
_________
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. ## **14. Debtors** |Prepayments and accrued income
|**2023**
**£**
7,488

_________
|**2022**
**£**
9,919
_________| |---|---|---| Included above is accrued income for donations, grants and legacies in the sum of £5,000 (2022 - £7,700) which were due but not received at the year-end. SEED Madagascar: Report and Financial Statements 2023 Page | 36 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **15. Creditors: Amounts Falling due in One Year** |Trade creditors
Other taxes and social security costs
Other creditors
Accruals and deferred income
Pension contributions creditor
**Restricted Income Funds**
**At 1st**
**July 2022**
**£**
Votsira
47,122
Sekoly
133,578
Stitch Sainte Luce
2,007
Rufus
602
Renitantely
3,231
Safidy
917
Ala
25,895
Mahampy
10,427
UNICEF
7,907
Staff Clark Fund
1,985
Micro Conservation Projects
1,894
Anosy Food
17,314
Menstrual Hygiene Project
2,805
Solar
7,752
Chamelion
590
Palms
19,416
Oratsimba Interim
1,932
Ready for Rights
(999)
Canada Sakondry
522
Green Schools
29,142
Recovery & Resilience
79,355
Humedica
4,829
Accounts Transition
4,701
Seacology
3,759
Safidy Interim
6,441
Conservation Appeal
3,007
Oratsimba BV
(7,287)
Humedica II
-
Office Purchase
-
Solar Pilot
-
_________
408,844
|**Income**
**£**
69,070
164,462
4,895
-
10,157
-
64,200
64,358
-
-
-
68,005
-
-
-
15,930
-
-
-
-
10,035
-
-
-
88,609
278
41,200
131,655
3,000
26,591
_________
762,445
|**Expenses**
**£**
(47,359)
(177,505)
(5,315)
(672)
(17,626)
-
(32,893)
(17,061)
(7,907)
(935)
-
(74,300)
-
-
-
(17,967)
-
-
-
(16,384)
(2,892)
(2,972)
(3,751)
(4,218)
(55,294)
(232)
(28,076)
(125,905)
-
(28,865)
_________
(668,129)
|**2023**
**£**
942
2,272
367
12,260
85
_________
15,926
_________
**Transfers**
**£**
(1,732)
(30,544)
1,445
900
13,916
(917)
(1,500)
8,902
-
-
(1,894)
2,471
-
-
-
(2,295)
(1,932)
999
(522)
(1,211)
(61,809)
(1,280)
-
-
(4,165)
885
(193)
4,511
-
(766)
_________
(76,731)
|**2022**
**£**
863
2,272
497
6,314
-
_________
9,946
_________
**At 30th**
**June 2023**
**£**
67,101
89,991
3,032
830
9,678
-
55,702
66,626
-
1,050
-
13,490
2,805
7,752
590
15,084
-
-
-
11,547
24,689
577
950
(459)
35,591
3,938
5,644
10,261
3,000
(3,040)
_________
426,429
| |---|---|---|---|---| ## **16. Restricted Income Funds** SEED Madagascar: Report and Financial Statements 2023 Page | 37 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar Negative balances detailed above (Ready for Rights £1,000 and Oratsimba BV £7,287) 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:** aims to conduct 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:** aims to improve the sustainability and viability of beekeeping as a livelihood amongst rural communities in the Anosy region. **Safidy:** aims to increase access to sexual and reproductive health and rights resources for students across Madagascar through a network approach. **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 with the aim of reaching open defecation free communities. **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:** supports community-based menstrual hygiene, builds capacity through awareness raising, and creates and supports related infrastructure. **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. **Palms:** aims to understand and improve the population status of six key palm species across Sainte Luce. SEED Madagascar: Report and Financial Statements 2023 Page | 38 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar **Safidy, Phase IV Interim:** collaborates with national and local ministries and NGOs to deliver rights-based sexual and reproductive health education and resources to young people in schools across Madagascar. **Canada Sakondry** : aimed to increase diet diversity, increase food security, and contribute to malnutrition alleviation across five rural communities in southeast Madagascar, through the establishment of edible insect farming. **Oratsimba, Phase IV** : is empowering fishers to implement adaptive and sustainable locally managed marine areas (LMMAs) through capacity building and the strengthening of LMMA structures to protect marine biodiversity. **Oratsimba Interim:** continued the work of Oratsimba (see above) after Phase III while seeking funding for Phase IV. **Accounts Transition:** ringfence set up to support the transition the SEED Madagascar office to a new professional accounting package. **Conservation Appeal:** ringfence containing proceeds of a conservation appeal aimed at species, research, and conservation. **Green Schools:** aims to offset the carbon footprint of the SEED’s school building programme, with communitybased tree planting. **Humedica & Humedica II:** food distribution funded by Humedica, supporting children with acute malnutrition and their families. To support communities in the transition toward recovery and resilience to future shocks, the project has an increased focus on nutrition, health, and WASH support. **Recovery & Resilience:** appeal funds supporting communities through the response to the food insecurity crisis, recovery, and resilience efforts to reduce vulnerability. **Seacology:** sub-project to Project Ala (above) supporting the creation of a new forest corridor. **Ready for Rights:** working in conjunction with Project Mahampy and Menstrual Hygiene Project, Ready for Rights teaches school children about sexual and reproductive health and rights. **Office Purchase:** Fund set up with permission of donor for the potential purchase of office space in Fort Dauphin, southeast Madagascar. **Solar Pilot:** Pilot working with Solar United to introduce solar power and a light library to two rule schools. 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. SEED Madagascar: Report and Financial Statements 2023 Page | 39 Section 3. Financial Statements Year Ending 30[th] June 2023 Financial Statements of SEED Madagascar ## **17. Designated Income Funds** |SEED Development|**At 1st**
**July 2022**
**£**
14,043

_________|**Income**
**£**
12,500

_________|**Expenses**

**£**
(24,337)

_________|**Transfers**
**£**
25,000
_________|**At 30th**
**June 2023**
**£**
27,206
_________| |---|---|---|---|---|---| Seed Development Fund: funds set up by the trustees from unrestricted funds for building organisational capacity and initial funding of several new posts. ## **18. Analysis of Net Assets Between Funds** |
Restricted funds
Designated funds
Unrestricted funds|**Fixed**
**assets**


**£**
-
-
2
_________
2
_________|**Net**
**current**
**assets**
**£**
426,429
27,206
162,029
_________
615,664
_________|**Total**
**£**
426,429
27,206
162,031
_________
615,666
_________| |---|---|---|---| ## **19. Financial Commitments** The total minimum lease payments under non-cancellable operating leases are as follows: |**Expiry date:**
Within one year|**2023**
**£**
0
_________|**2022**
**£**
1,712
_________| |---|---|---| In October 2022 SEED finished its lease in its long-term office in Queens Park, opting for a virtual model with key international staff working from home and short-term hired office spaces. Consequently, lease payments expected within one year are now zero. ## **20. Related Party Transactions** During the year the charitable company received aggregate donations from trustees in the sum of £1,200 (2022 - £1,200). SEED Madagascar: Report and Financial Statements 2023 Page | 40