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← Humentum UK

2024-09-30-accounts

Docusign Envelope ID: 807BD05E-88CC-4BF5-B4A4-F88DC045870C

Humentum UK

Trustees’ Report and Accounts

For the year ended 30 September 2024

3986178 1081406

Company No.: Charity No.:

Docusign Envelope ID: 807BD05E-88CC-4BF5-B4A4-F88DC045870C

Contents

Report of the trustees for the year ended 30 September 2024 ....................................................... 1 Our purposes and activities .......................................................................................................... 2 Achievements and Performance ................................................................................................... 3 Financial review ............................................................................................................................ 4 Plans for future periods ................................................................................................................ 6 Structure, Governance and Management .................................................................................... 8 Trustees’ Responsibilities in relation to the financial statements .................................................... 9 Independent Examiner’s Report to the members of Humentum UK ............................................. 11 Statement of Financial Activities, including the income and expenditure accounts………………..….13 Balance sheet as at 30 September 2024…………………………………………………………………………………….14 Statement of Cash Flows………………………………………………………………………………………….…………….….15 Notes to the accounts………………………………………………………………………………………………………….…...16

Docusign Envelope ID: 807BD05E-88CC-4BF5-B4A4-F88DC045870C

Report of the trustees for the year ended 30 September 2024

The trustees are pleased to present their annual report together with the financial statements of the charity for the year ended 30 September 2024 which are also prepared to meet the requirements for a directors’ report and accounts for the Companies Act purposes.

The directors have taken advantage of the small companies’ exemption under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 not to prepare a strategic report for the financial year.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102), in addition to the Charities (Protection and Social Investment) Act 2016.

Humentum UK, is a UK-registered charity, regulated by the Charity Commission for England and Wales. Humentum UK, signed an Affiliation agreement, dated 21 June 2017, with InsideNGO, a notfor-profit organisation registered in Washington DC, USA. The affiliation appointed Humentum, formerly InsideNGO, as the sole member of Humentum UK.

Humentum UK’s mission fits within the objects set out in its Memorandum and Articles of Association:

The trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

In shaping the objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance Public Benefit: running a charity (PB2). The charity relies on income from fees and charges from other UK non-governmental organisations (NGOs) to cover its operating costs. The trustees ensure that this purpose is carried out for the public benefit by delivering expertise and services that are valued by the global development community, focused on UK NGOs operating model.

Affordability and accessibility to our programme is important to us. The global development community can access Humentum UK’s services via Humentum’s website and through Humentum’s growing international and social media-based networks. Humentum UK encourages the smallest local NGOs with limited funds to access free resources through its website or to apply for bursaries for Humentum UK’s fee-based services. Humentum UK seeks regular feedback on the quality of our work and the benefits that it creates for NGOs and their beneficiaries.

At the end of 2020, Humentum UK agreed a new arrangement with Humentum, where Humentum UK retains all income raised or earned in the UK from UK entities. Prior to 2020, Humentum UK income was based on only financial management support to NGOs. Based on the integrated

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services offered to many organisations the split by geography is far more representative of Humentum UK’s purpose.

Our purposes and activities

Humentum and Humentum UK share a strategic plan. The vision of the whole organisation is making change happen for social good and its mission is to:

To achieve the strategy, Humentum and Humentum UK have a full-service wrap-around approach, through four service areas. A client can enter through any service, but the goal is to engage them across all the services, therefore delivering a comprehensive solution.

1. Training

To build individual skills and organisational capacity through accessible training solutions. Under the arrangement with Humentum, the income from online global courses provided to individuals is part of Humentum’s income, however the flexible in-house and organisational learning services that put organisation’s learning needs at the centre, offering flexibility in terms of timing and course content and are offered directly to UK organisations as requested.

2. Consultancy

Through a global team of 100+ associate consultants, deliver tailored assessments and support to UK clients to strengthen organizational systems and processes.

3. Community

As part of the Humentum membership offer, Humentum conducts roundtables meetings focused on key leader’s needs, issues, and priorities. Humentum connects the sector co-creating solutions to operational problems through facilitating professional networking and peer learning.

4. Advocacy

Humentum works to solve sector-wide problems with innovative approaches, policies, and standards. Humentum prioritizes advocacy with our members’ primary donor agencies, including the various donor agencies of the US Government (including USAID, USDOS, CDC), and the UK Government – two of the global leaders in development and humanitarian assistance funding. Humentum elevates member concerns, analysing funder guidance and policy shifts, engaging in the regulatory process, and seeking solutions to challenges as they arise.

In the year to 30 September 2024, with focus on Humentum UK’s mission, and pursuing the strategic goals of Humentum. There were four overarching objectives for Humentum UK, each linked to an area of its service offering.

1. We will grow the global development community’s capacity and competency by leveraging digital content and know-how. (Training)

2. We will increase financial sustainability and program agility by designing customized solutions through consultancy. (Consultancy)

3. We will capture insight and co-create transformational solutions by catalysing connections amongst our members and stakeholders. (Community)

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4. We will transform the enabling environment by influencing the sector’s response to operational and policy challenges. (Advocacy)

Achievements and Performance

The achievements during 2024 are set out against each of the objectives.

Objective 1. We will grow the global development community’s capacity and competency by leveraging digital content and know-how.

In 2024, training income from tailored courses was reflected under this objective. In responding to UK organisations’ needs, a total of 5 workshops (2023:16) were run tailored to the client. The courses generated income of £39k (2023: £43k)

During 2024, “Help with Fees” provided support for 45 (2023:21) people to attend 11 (2023:11) courses at a total cost of £17k (2022: £9k).

There were three (2023:4) UK subscribers to Humentum’s eLearning service in 2024. These subscribers paid £29k (2023: £49k) in total for these services.

The total costs spent to achieve this objective was £65k (2023: £52k).

Objective 2. We will increase financial sustainability and program agility by designing customized solutions through consultancy.

A total of four (2023: 7) assignments were completed during 2024. These supported a variety of organisations working in the sector on financial capacity, partner assessments and improved cost recovery. The work was completed remotely.

The organisation spent £130k (2023: £129k) to achieve the activities under Objective 2.

Objective 3. We will capture insight and co-create transformational solutions by catalysing connections amongst our members and stakeholders.

Through membership of Humentum UK, organisations can access benefits in addition to connection with peer communities and networking events. During the year, there were four (2023:5) UK memberships worth £13k (2023: £12k). In addition, industry partners bring an ease of access to their services as members. In 2024, there were three (2023:4) industry partners in the UK generating £5k income (2023: £9k).

Objective 4. We will transform the enabling environment by influencing the sector’s response to operational and policy challenges.

The International Financial Reporting for Non-Profit Organisations (IFR4NPO) initiative was launched in July 2019. IFR4NPO aims to bring clarity and consistency to the Not-Profit Organisations (NPO) sector which must win the trust of its many national and international

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stakeholders through consistent, high quality financial reporting. The initiative also endeavours to reduce the current burden and duplication of effort for both NPO and funders in meeting multiple and, at times, conflicting financial reporting requirement.

Development of internationally applicable financial reporting guidance for the sector will increase the quality and consistency of reports, making them more useful for users, improving the value of audit assurance, increasing credibility, and unlocking finance for the sector. Our engagement strategies are working to ensure that there is diverse and representative input from different countries and stakeholder groups, and to amplify the voices of the less powerful.

In the year ended 30 September 2024, Humentum UK obtained more funding of £746k (2023: £752k) from Oak Foundation and Ford Foundation. They also all contributed in 2023.

The project has released three Exposure Drafts (ED) on Non-Profit Accounting Guidance (INPAG); two were released in prior years, while the third and final ED was published in May 2024 and closed for comment in September 2024. The project is due to end in October 2025. To finalise the activity the aim is to publish the final guidance for adoption by countries in mid-2025 and then to complete the transition to a new sustainable structure.

The organisation spent £832k on these activities under Objective 4 (2023: £639k).

Fundraising

The primary aim of Humentum UK’s voluntary fundraising is to improve the access to Humentum’s service for small local NGOs in developing countries. Humentum UK seeks funding from organisations supportive to its mission. Humentum UK does not make direct contact with individuals, hence does not make unreasonable intrusion on vulnerable people. Humentum UK did not use any professional fundraiser or any commercial participator in raising its funds. In conducting its fund-raising activities, Humentum UK did not receive any complaints about its fundraising during 2023/24 and is registered with Fundraising Regulator. Humentum UK complied with Fundraising Regulator regulations and that there were no instances of non-compliance.

Financial review

Humentum and Humentum UK share a strategic plan to build and support operating models that create equity, resilience, and accountability of NGOs.

During the year, funds were mainly received for:

Total income decreased by 20% from £974k in 2022/23 to £784k in 2023/24. This was largely due to a grant signed with the Ford Foundation for USD 1.5m in December 2022. The first instalment of £606k was received in January 2023. In 2024, a second lower instalment of £351k was received, together with support from Oak Foundation.

Overall, in the year, the charity made a deficit in the year £243k in the year, compared to a surplus of £154k in 2022/23. The deficit arose as a result of the restricted expenditure exceeding the

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income as the funding received in 2022/23 was utilised. Total reserves are £147k as of 30 September 2024.

Income

For the year ended 30 September 2024, the principal source of funding of income were £620k (2023: £775k) from donations and £76k (2023: £80k) from consultancy. The donations, being grant income. Total income decreased by £190k (-20%) for the year, being £784k.

Expenditure

Total expenditure for the year ended 30 September 2024 was £1,027k compared to £820k for the year ended 30 September 2023 (+25%). Direct costs increased by £108k (+14%) to £853k from £745k. The increase in direct costs is due to the increased expenditure on restricted funds.

Support costs were £173k for the year ended 30 September 2024 compared to £75k (+132%) for the year ended 30 September 2023. The increase is due to the recognition of the donated legal services of £116k. Following a review of support costs allocated between Humentum and Humentum UK, only UK staff and governance costs were charged to Humentum UK. An indirect cost charge was made to Humentum for UK staff services and is included within support costs.

Reserves policy and going concern

The unrestricted reserves of Humentum UK exist to bridge the gap between fixed costs and income receipt, considering any potential risks related to income. The trustees recommend a reserves policy of maintaining unrestricted reserves at three to six months budgeted expenditure, for governance and staff costs net of direct costs recovered from projects. The range for three to six months of budgeted support expenditure for 2024 is between £100k to £200k. On 30 September 2024, unrestricted reserves were £147k (2023: £185k). The unrestricted reserves are within the range in the policy. A review of the allocation of Humentum’s support expenses occurred during 2021 to ensure that with additional cost support from Humentum, the unrestricted reserves built to achieve the amount required under the approved reserves policy.

The trustees reviewed their responsibilities in assessing the going concern basis of accounting as appropriate, considering uncertainties in relation to the future solvency and liquidity risks. In 2020, the trustees discussed the financial viability of Humentum UK, and a decision was made to show its sources of income as those from UK entities and its associated costs, instead of only recording income from financial management services. This reflects the changing nature of integrated services being provided to organisations. Whilst services are not directly marketed to UK organisations, Humentum has made strategic investment in sales and marketing to boost the organisations growth that was expected to benefit Humentum UK.

In the forthcoming year, the trustees will adopt a new structure for Humentum UK as the IFR4NPO project moves to its final stages with the publication of the accounting standard guidance. Humentum will continue to support Humentum UK and provide a support recharge to cover the costs of its governance and staff. This means that the reserves no longer need to be at the level set in the policy and will be reduced accordingly.

Humentum’s current reserve policy is to hold as least 15% of planned expenditure to ensure continued financial security and to provide for contingencies, this will be reviewed annually. Planned expenditure is defined as meeting core obligations to members, staff and external contracts and varies annually. Investment funds withdrawn for strategic investment must be able

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to demonstrate a Return on Investment and replaced within a three-year cycle. As Humentum is the only member of Humentum UK, its reserves provide the necessary financial and business support to ensure that Humentum UK continues as a going concern. Humentum’s unrestricted reserves are 997,000 US dollars as of 30 September 2024.

Restricted funds, which are tied to specific purposes, were £nil as of 30 September 2024 (2023: £205k).

Plans for future periods

Humentum wants to create tangible and lasting change and took what it heard from more than 300 discussions with members clients, partners and stakeholders and translated it into action.

Over the next 10 years, the aim is that:

We continually assess impact on our income and we determine there is no material uncertainty about the going concern of the organisation due to the ability to continue activity through strong and enhanced membership services, convening and training, specific geographic market approaches that allow for flexibility and adaptation to local needs and priorities and increased advocacy efforts on operational issues, liaison role between funders and implementers, and increased direct support to funders on developing equity-focused policies.

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Reference and Administrative Details

Charity number: 1081406 Company number: 3986178 Registered Office: c/o Gravita Oxford LLP, First Floor, Park Central, 40-41 Park End Street, Oxford OX1 1JD

Our advisers:

Independent Examiners: MHA, 6[th] Floor, 2 London Wall Place, London EC2Y 5AU Bankers: CafCash Limited, Kings Hill, West Malling, Kent, ME19 4TA

Directors and trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the year and since the year end were as follows:

Chair: Kathryn Gordon Treasurer: Kim Schwartz Trustee: Saba Al Mubaslat (resigned 4 August 2023) Andrew Seddon Secretary: Jocelyn Boughton

Member

Humentum, a not-for profit organisation 501(c)(3) registered in Washington DC, USA

Senior management personnel (Humentum)

Chief Executive Officer: Christine Sow

Senior management personnel (Humentum UK)

Chief Finance & Operations Officer: Jocelyn Boughton

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Structure, Governance and Management

Governing Document

Humentum UK, formerly known as Mango, is a UK-registered charity, regulated by the Charity Commission for England and Wales. It is constituted as a company limited by guarantee. The organisation is bound by its Memorandum and Articles of Association, copies of which are available on request. In July 2017, Humentum UK, signed an Affiliation agreement with InsideNGO, a notfor-profit organisation registered in Washington DC, USA. The affiliation appointed Humentum, formerly InsideNGO, as the sole member of Humentum UK. Humentum as sole member has the power to appoint and remove directors of the company and trustees of the charity.

Appointment of trustees

Humentum appointed the trustees listed above as part of the Affiliation agreement. Nominations for new trustees are considered by the Humentum Board and may subsequently be invited to join the Humentum UK board. The management team of Humentum UK holds executive responsibility for implementing the policies and strategies approved by the board.

Trustee induction and training

New trustees are provided with an induction to familiarise them with the charity and the nongovernmental organisation sector and to brief them on their responsibilities as trustees under charity and company law. New trustees are referred to the Charity Commission’s guide “How to be an effective trustee”. Existing trustees are informed of any changes in their legal obligations under charity and company law, the Charity Commission Guidance on public benefit and inform them of the content of the Memorandum and Articles of Association, the decision-making processes, the business plan, and recent financial performance of the charity. Trustees are encouraged to attend appropriate training events where these will facilitate the undertaking of their role. The trustees are invited to events to meet staff and other trustees when organised.

Trustees benefit from indemnity insurance to cover the liability of the Trustees which by virtue of any rule of law would otherwise attach to them in respect of any negligence, default or breach of trust or breach of duty of which they may be guilty in relation to the Charity. The cost of this insurance in the year has been included within total insurance costs.

Organisation

The board of trustees, which can have up to four members, administers the charity. The board normally meets quarterly. Under the affiliation agreement, the Chief Executive Officer (CEO) of Humentum UK is the same as the CEO of Humentum. To facilitate effective operations the CEO has delegated authority, with terms of delegation approved by the trustees, for operational matters including finance, employment, and other operational activity.

Related parties and co-operation with other organisations

None of the trustees receive remuneration or other benefit from their work with the charity. Trustees were reimbursed for expenses in attending board meetings. Humentum, as the sole member of Humentum UK receives cash on behalf of Humentum UK as remittances for its

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charitable activities, which is remitted monthly in arrears to the charity. Details of directors’ expenses and related party transactions are disclosed in note 10 to the accounts.

Pay policy for senior staff

The directors consider the board of directors, who are Humentum UK’s trustees, and the senior executive team (ET) comprise the key management personnel of the charity in charge of directing and controlling, running, and operating the charity on a day-to-day basis. All directors give their time freely and no director received remuneration in the year.

The pay of all staff is reviewed annually in accordance with its Total Rewards and Salary & Pay policies. Salaries are benchmarked against pay levels in other NGOs if a comparable size. The remuneration benchmark is the mid-point of the range paid for similar roles. All salaries are set by Humentum, with the Chief Executive Officer’s salary set by the Humentum Board, rather than the Humentum UK Board.

Risk Management

The trustees have a risk management strategy which comprises:

The major risk identified for Humentum is its financial sustainability due to the lack of predictability of its income streams. Action was taken to downsize the organisation to reduce the cost base, in addition to restructuring to focus on obtaining more reliable income sources.

For Humentum UK, the trustees identified the risk associated of declining reserves in the prior year and reviewed with management the income and cost allocation to Humentum UK from Humentum to ensure the reserves remain in line with its reserve policy.

The changing compliance needs in the UK charity sector was also identified as a risk by the UK trustees. The need to ensure adequate mechanisms are in place for identifying, acting on and reporting on serious incidences to the Charity Commission was added to the risk register for appropriate mitigation, particularly around data breaches and/or safeguarding incidences.

Trustees’ Responsibilities in relation to the financial statements

The trustees are responsible for preparing a trustees’ annual report and 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 that law the trustees have elected to prepare the accounts in accordance with Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). Under company law the trustees must

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not approve accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources for that period. In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the financial position of the charitable company and enable them to ensure that the accounts 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.

Statement as to disclosure to our auditors

In so far as the trustees are aware,

This trustees’ report is prepared taking advantage of the small companies’ exemption of section 415A of the Companies Act 2006. This report was approved by the trustees and signed on their behalf by:

[Fey514AB55EF8D246F..."Coa

Kathryn Gordon

Chair

Date: 13[th] March 2025

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Independent Examiner’s Report to the members of Humentum UK

I report to the Charity Trustees on my examination of the accounts of the Company for the period ended 30 September 2024.

Responsibilities and Basis of Report

As the Charity Trustees of the Company (and also its Directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act: or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for 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).

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I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

6/2/2025 Signed: Date:

Sudhir Singh FCA

MHA, Chartered Accountants. 6th Floor, 2 London Wall Place, London, EC2Y 5AU

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Humentum UK Statement of Financial Activities, including the income and expenditure account for the year ended 30 September 2024

Note
Income
Donations
3
Investment Income
4
Income from charitable activities
2
Other Income
5
Total Income
Expenditure
Expenditure on charitable activities
6
Total Expenditure
Net (expenditure)/income and net movement in
funds for the year
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
Total
Funds
2024
Total
Funds
2023
£000's
£000's
£000's
£000's
117
503
620
775
3
-
3
2
161
-
161
194
-
-
-
3
281
503
784
974
319
708
1,027
820
319
708
1,027
820
(38)
(205)
(243)
154
185
205
390
236
147
-
147
390

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The notes on pages 16 to 25 form part of these accounts.

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Humentum UK Balance Sheet as at 30 September 2024

2024 2023
Notes £000's £000's £000's £000's
Current Assets
Debtors 13 351 350
Cash at bank and in hand 282 233
Total Current Assets 633 583
Liabilities
Creditors falling due within one year 14 (486) (193)
Net Current assets 147 390
Total assets less current liabilities 147 390
Net Assets 147 390
Unrestricted funds 147 185
Restricted funds - 205
Total Funds 17 147 390

The notes on pages 16 to 25 form part of these accounts.

The Charity's financial statements have been prepared in accordance with the provision applicable to companies subject to the small companies regime. These accounts were approved and authorised for issue by the trustees on 13th March 2025 and signed on their behalf by:

Kathryn Gordon, Chair.

Company number: 986178

Charity number: 1081406

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Humentum UK Statement of Cash Flows

for the year ended 30 September 2024

Cash flows from operating activities
Net cash provided by operating activities(reconciliation below)
Cash flows from investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Reconciliation of net income to net cash flow from operating activities
Net income/(expenditure) for the reporting period
Adjustments for:
(Increase) / Decrease in debtors
Decrease / (Increase) in creditors
There was no net debt in the year and prior year.		 2024
£000's
49
49
233
282
(243)
(1)
293
49		 2023
£000's
92
92
141
233
154
3
(65)
92

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Humentum UK Notes to the Accounts for the year ended 30 September 2024

1. Accounting policies

a) Basis of preparation

Humentum UK is a charitable company registered with the Charity Commission (charity registered no. 1081406) in England and Wales. The address of the registered office and nature of the charity's operations and principle activities are detailed in the Trustees' Report. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice as it applies.

Humentum UK meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £’000.

b) Income

Income is recognised when the charity becomes legally entitled to the funds, any performance conditions attached to the item(s) of income have been met, it is reasonable certain of receipt and it can be measured. Where income is received in advance of its recognition, it is deferred and included in creditors. Where entitlement occurs before income is received the income is accrued and included in debtors. All training income is recognised in the month that the course commences. Consultancy income is recognised according to specific milestones agreed in the contract , or as work is completed if no milestones exist. Accrued income (WIP) is income which has been earned but not yet invoiced or received. Income is recorded in the accounting period in which it is earned. Therefore, accrued income is recognized in the accounting period in which it arises rather than in the subsequent period in which it will be received.

c) Donated services

Donated services (gifts in kind) are recorded at market value, when the risks or rewards of the service or item are transferred to Humentum UK. Donated services are recognised in the accounts when they are of material value to the charity.

d) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally on notification of the interest paid or payable by the bank.

e) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors or which have been raised by the charity for specific purposes. The aim and use of each restricted fund is set out in the notes to the accounts.

f) Expenditure and Irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is allocated to the activity for which each specific cost was incurred. Expenditure is classified under the following activity headings:

Humentum UK is partially exempt from VAT. Irrecoverable VAT is allocated within support costs. In the year ended 30 September 2024, Humentum UK incurred £554 (2023: £1,521) of irrecoverable VAT and £nil (2023: £6,338) of gift aid not reclaimed within the four years limit.

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Humentum UK Notes to the Accounts for the year ended 30 September 2024

1. Accounting policies

g) Foreign exchange gain/loss

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. All gains and losses are taken to the statement of financial activities as they arise. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date. The year-end rate is based on the exchange rate in each currency as at 30 September. Humentum UK minimises the exposure of foreign exchange fluctuations by transacting in GBP, USD or other hard currencies. Wherever possible, expenditure is paid from a bank account of the same currency. Bank transfers between currencies are minimised.

h) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, People & Culture, payroll and governance costs which support the Humentum UK's objectives. In 2024, as in 2023 support costs relate only to Humentum UK. Total support costs are allocated to each of the objectives, on the same proportion as the direct costs of that objective, as set out in note 4.

i) Operating leases

Rentals payable under operating leases are charged to resources expended on a straight line basis over the lease term. Lease incentives are also spread over the lease term.

j) Tangible fixed assets and depreciation

Individual fixed assets costing £1,200 or more are capitalised at costs and are depreciated over their estimated useful economic life on a straight line basis. Computers, projectors and software are depreciated over three years. All assets are held for direct charitable purposes.

k) Financial Instruments

The charity only holds basic Financial Instruments. The financial assets and financial liabilities of the charity are as follows:

• Debtors: trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in note 13. Prepayments are not financial instruments.

• Liabilities: trade creditors , accruals and other creditors will be classified as financial instruments and are measured at amortised cost as

detailed in note 14. Taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability , as the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.

l) Pensions

The company operates a defined contribution pension scheme, the Humentum UK Group Personal Pension Scheme, the assets of which are held in external funds. Contributions of 5% of pensionable salary during the period are charge to the statement of financial activities as they become payable. All pension contributions are allocated to unrestricted funds.

m) Preparation of the accounts on a going concern basis

The accounts have been prepared on a going concern basis as the trustees believe that whilst some uncertainties exist relating to the business and operational environment in which the charity operates worldwide, particularly to the financial impacts of USG funding, these are not considered to have a significant impact on UK operations. Humentum UK signed an agreement with its sole member Humentum in December 2020. This agreement confirms the financial commitment from Humentum to the UK to support for the foreseeable future.

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Humentum UK Notes to the Accounts for the year ended 30 September 2024

n) Significant accounting estimates and judgements

Humentum UK makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimate for pro-bono services is significant and disclosed in the current reporting period or the prior year.

o) Redundancy and Termination Benefits

Redundancy and Termination benefits, which include both statutory and ex gratia amounts, are those amounts payable as a result of a decision by the charity to terminate an employee’s employment before their normal retirement date and are charged on an accruals basis to the relevant expense category in the Income and Expenditure account. Ex gratia payments, reflect the amount of weekly pay paid above the statutory capped amount for redundancy, where the trustees consider this to be in the best interests of the charity.

2. Details of Charitable Income

Funds received for charitable activities, analysed by Humentum UK objective is as follows:

Objective
1. We will grow the global development community’s capacity and
competency by leveraging digital content and know-how
2. We will increase financial sustainability and program agility by
designing customized solutions through consultancy
3. We will capture insight and co-create transformational solutions by
catalysing connections amongst our members and stakeholders		 2024
2024
2024
2023
Unrestricted
Funds
Restricted
Funds
Total
Funds
Total
Funds
£000's
£000's
£000's
£000's
68
-
68
92
75
-
75
80
18
-
18
22
161
-
161
194

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Docusign Envelope ID: 807BD05E-88CC-4BF5-B4A4-F88DC045870C

Humentum UK Notes to the Accounts for the year ended 30 September 2024

3. Donations

Received from:
Corporate donations and sponsorship:
Milbank LLP
Total
Restricted income
Received from:
Ford Foundation
Oak Foundation
Wellspring Philanthropic Fund
Services donated in kind
Total
Unrestricted donations, sponsorship and associated support		 2024
£000’s
117
117
2024
£000’s
351
120
-
32
503		 2023
£000’s
-
-
2023
£000’s
607
73
59
36
775

Milbank LLP provided 169 hours of legal services, on a pro-bono basis, to support on the governance structure of Humentum UK .

IFR4NPO, an initiative to develop global financial reporting guidance for Non-Profit Organisations has been funded by The Ford Foundation and Oak Foundation in 2024. A third tranche of funding from the Ford Foundation was received for the period 1 December 2022 to 30 November 2025. Oak Foundation awarded a grant for the period June 2021 to September 2024. Oak Foundation awarded a new grant for the period from September 2024 to October 2025, the grant funding was received on 16 August 2024.

105 days of technical time (2023: 107 days) for advisory group meetings were donated by 51 organisations (2023: 53) and individuals for the IFR4NPO project.

4. Investment Income

Unrestricted income received from
Bank interest receivable
Total
5.
Other Income
Unrestricted income received from
Amounts allocated to provision for doubtful debts now received
Total		 2024
£000’s
3
3
2024
£000’s
-
-		 2023
£000’s
2
2
2023
£000’s
3
3

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Docusign Envelope ID: 807BD05E-88CC-4BF5-B4A4-F88DC045870C

Humentum UK Notes to the Accounts for the year ended 30 September 2024

6. Details of Charitable expenditure

The amount spent on charitable activities, including support costs analysed by Humentum UK objective is as follows:

Objective
Total
7.
Analysis of support costs
Administration
Finance
Governance_(note 9)
People & Culture
Marketing
Information Technology
8.
Finance Costs
Irrecoverable VAT / Gift Aid
Unrealised and realised exchange losses/(gains)
9.
Governance Costs
Staff costs
Independent Examination
Donated legal services
_Finance costs include:
1. We will grow the global development community’s capacity
and competency by leveraging digital content and know-how
2. We will increase financial sustainability and program agility
by designing customized solutions through consultancy
4. We will transform the enabling environment by influencing
the sector’s response to operational and policy challenges		 2024
2024
2024
Direct
costs
Support
costs
Total
costs
£000's
£000's
£000's
54
11
65
108
22
130
691
140
832
853
173
1,027
2024
£000’s
(10)
23
124
22
15
-
173
2024
£000's
1
23
2024
£000's
4
4
116
124		 2023
Total
costs
£000's
52
129
639
853
173		 820
2023
£000’s
(31)
52
8
26
19
1
75
2023
£000's
8
31
2023
£000's
4
4
-
8

Governance costs include all costs directly related to meeting the charity's statutory requirements, including staff time spent supporting the board of trustees.

169 hours (2023: nil) for legal governance advice were donated during 2024. The hours are valued at the partner's rates for the work completed on Humentum UK's governance structure

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Docusign Envelope ID: 807BD05E-88CC-4BF5-B4A4-F88DC045870C

Humentum UK Notes to the Accounts for the year ended 30 September 2024

10. Trustees’ remuneration, related party and other transactions

Trustee reimbursed expenses in the year were £nil (2023: £nil). During the year salaries and expenses of £122k (2023: £424k) relating to Humentum, the sole member of Humentum UK, were paid by Humentum UK. In addition, training fees of £17k (2023: £7k) were collected by Humentum on behalf of Humentum UK and income of £9k (2023: £403k) was received by Humentum UK, for services provided by Humentum. Humentum received income of £363k (2023: £nil) for services provided by Humentum UK. At the year end, the amount owed to Humentum UK from Humentum was £350k (2023: £313k). Note 16. provides more details on the relationship between Humentum and Humentum UK.

Humentum UK's trustees are representative of the client organisations Humentum UK works to support. Where services are provided to those organisations they are dealt with on an arms length basis, with any conflicts of interest dealt with appropriately.

11. Director and employees

The average number of staff during the year to 30 September 2024 including full time and part time employees was 10 (2023: 10). Employee emoluments were as follows:

Staff salaries
Social Security costs
Pension Contributions		 2024
2023
£000's
£000's
556
528
61
58
29
34
647
621

The remuneration of the CEO was paid by Humentum. Staff costs include remuneration paid to key management personnel, including employers' national insurance, and termination benefits was £139,650 (2023: £153,477).

The number of employees who received total employee benefits (excluding employers' pension costs) of more than £60,000 in the reporting period is as follows:

£60,001 - £70,000
£70,001 - £80,000
£90,001 - £100,000
£100,001 - £110,000
£110,001 - £120,000		 2024
2023
No.
No.
1
1
1
-
1
1
-
1
1
-
4
3

12. Taxation

The charity is an exempt charity within the meaning of Schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in paragraph 1 schedule 6 Finance Act 2010, and meets the definition of a charitable company for the UK corporation tax purposes. Therefore it does not suffer tax on income or gains applied for charitable purposes.

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Docusign Envelope ID: 807BD05E-88CC-4BF5-B4A4-F88DC045870C

Humentum UK

Notes to the Accounts for the year ended 30 September 2024

13.
Debtors and Prepayments
Trade debtors
Amounts owed from Humentum
Deposits
14.
Creditors: Amounts falling due within one year
Trade creditors
Deferred income
(note 15)
Accrued expenditure
Taxes and payroll liabilities
Other creditors
15.
Deferred Income
As at 1 October 2023
Additions during the year
Amounts released to income
As at 30 September 2024		 2024
£000’s
-
350
1
351
2024
£000’s
39
369
54
23
1
486
2024
£000’s
118
421
(170)
369		 2023
£000’s
37
312
1
350
2023
£000’s
41
118
9
25
-
193
2023
£000’s
97
118
(97)
118

Deferred Income of £2k (2023:£12k) relates to membership fees for 2024/2025. Deferred Income of £5k (2023:£8k) relates to subcriptions to Humentum Learning Services for 2024/2025. Deferred income of £nil (2023:£11k) relates to training fees received for courses taking place in 2024. Deferred Income of £362k (2023:£87k) relates to the OAK foundation grant for IFR4NPO.

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Docusign Envelope ID: 807BD05E-88CC-4BF5-B4A4-F88DC045870C

Humentum UK Notes to the Accounts

for the year ended 30 September 2024

16. Capital and Company Information

The company is limited by guarantee, incorporated and domiciled in England and does not have a share capital. Humentum, the sole member, has given a guarantee to contribute a sum, not exceeding £1 to the company should it be wound up. Humentum is incorporated in the District of Colombia in the United States of America, Employer Identification Number : 52-1312495. In accordance with the affiliation agreement, dated 21 June 2017, Humentum, as sole member, appoints all the trustees of Humentum UK. A copy of Humentum's financial statements is available on Humentum's website, www.humentum.org. These consolidated statements include Humentum UK.

Humentum's mission is to partner with the global development community to be an equitable, accountable, and resilient force for social good. Humentum is committed to deliver services that are valued by the global community, these include building community through online networking platform and events, advancing individual and organizational capability through online training and content, providing solutions to organisation-wide problems through our consultancy service and creating and advocating for data-driven policies and standards that address sector-wide challenges.

Transactions that occurred between the two entities during the year are detailed in note 10. as are outstanding amounts as at 30 September,

  1. Following a review of support costs allocated between Humentum and Humentum UK, only UK staff and governance costs were charged to Humentum UK. An indirect cost allocation was made to Humentum for UK staff and is included within Humentum UK's support costs.
17.
Statement of Funds
Unrestricted funds
General funds
Restricted funds
Training bursaries
Grants and Contracts
Ford Foundation
Oak Foundation
Wellspring Philanthropic Fund
Services donated in kind
Total funds		 As at
1 October
2023
£000’s
185
17
129
-
59
-
390		 Total
Income
£000’s
281
-
351
120
-
32
784		 Total
Expenditure
As at
30 September
2024
£000’s
£000’s
(319)
147
(17)
-
(480)
-
(120)
-
(59)
-
(32)
-
(1,027)
147

Details in relation to the purposes in which the restricted funds are held is shown in Note 3.

18.
Analysis of net assets by funds
Current assets
Current liabilities
Total funds		 2024
Unrestricted
Funds
£000’s
633
(486)
147		 2024
2024
Restricted
Funds
Total
Funds
£000’s
£000’s
-
633
-
(486)
-
147

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Docusign Envelope ID: 807BD05E-88CC-4BF5-B4A4-F88DC045870C

Humentum UK Notes to the Accounts for the year ended 30 September 2024

19. Comparative statements for 2023

i Details of Charitable Income (note 2)

Funds received for charitable activities, analysed by Humentum UK objective is as follows:

Objective
Details of Charitable expenditure (note 6)
Objective
Total
3. We will capture insight and co-create transformational
solutions by catalysing connections amongst our members and
stakeholders
4. We will transform the enabling environment by influencing the
sector’s response to operational and policy challenges
1. We will grow the global development community’s capacity
and competency by leveraging digital content and know-how
2. We will increase financial sustainability and program agility by
designing customized solutions through consultancy
The amount spent on charitable activities, including support costs
1. We will grow the global development community’s capacity
and competency by leveraging digital content and know-how
2. We will increase financial sustainability and program agility by
designing customized solutions through consultancy
3. We will capture insight and co-create transformational
solutions by catalysing connections amongst our members and
stakeholders		 2023
2023
2023
Unrestricted
Funds
Restricted
Funds
Total
Funds
£000’s
£000’s
£000’s
92
-
92
80
-
80
22
-
22
194
-
194
2023
2023
2023
Direct
costs
Support
costs
Total
costs
£000’s
£000’s
£000’s
47
5
52
117
12
129
-
-
-
581
58
639
analysed by Humentum UK objective is as follows:
745
75
820

ii Details of Charitable expenditure (note 6)

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Docusign Envelope ID: 807BD05E-88CC-4BF5-B4A4-F88DC045870C

Humentum UK Notes to the Accounts for the year ended 30 September 2024

19. Comparative statements for 2023 (continued)

iv.
Statement of Funds (note 17)
Unrestricted funds
General funds
Restricted funds
Training bursaries
Grants and Contracts
Ford Foundation
Oak Foundation
Wellspring Philanthropic Fund
Services donated in kind
Total funds
Analysis of net assets by funds
Current assets
Current liabilities
Total Funds		 As at
1 October
2022
Total
Income
Total
Expenditure
As at
30 September
2023
£000’s
£000’s
£000’s
£000’s
169
199
(183)
185
26
-
(9)
17
-
607
(478)
129
-
73
(73)
-
41
59
(41)
59
-
36
(36)
-
236
974
(820)
390
2023
2023
2023
Unrestricted
Funds
Restricted
Funds
Total
Funds
£000’s
£000’s
£000’s
378
205
583
(193)
-
(193)
185
205
390

Page 25