## Accounts Action Ethiopia/Sunarma UK For the period to 31st December 2025 Prepared on 14 April 2026 ## For the Year Ended 31 December 2025 In 2025, Action Ethiopia and our sister organisation, SUNARMA in Ethiopia (Sustainable Natural Resources Management Association), had a dual focus of integration of environmental conservation with sustainable livelihoods. This dual focus ensures that restoration efforts are both ecologically effective and economically viable for local communities. Achievements by Project 1. Metema Project (UKAM/FCDO): Forest Governance and Frankincense Value Chain The Metema project delivered significant progress in forest governance, restoration, and value chain development, with measurable outcomes across ecological and economic domains. Key achievements include: - 17,711 hectares of Boswellia forest protected and restored through participatory forest management systems. - Strengthening of Forest Management Cooperatives (FMCs), unions, and local governance structures. - Delivery of gender equity and social inclusion (GESI) training to over 200 participants, increasing women’s participation in leadership - Construction of two cooperative warehouses, improving storage and product quality - Establishment of 15.6 km of firebreaks, protecting approximately 870 hectares of forest - Distribution of 963 fuel -efficient stoves, reducing pressure on forest resources The project also strengthened the frankincense value chain, achieving a significant increase in market prices from ETB 28,500 to ETB 53,500 through improved marketing, trade fair participation, and mass media promotion. Importantly, research collaboration with the University of Gondar generated peerreviewed publications and policy briefs, strengthening both scientific knowledge and SUNARMA’s institutional credibility. 2. Darwin Project: Community Resilience and Enterprise Development The Darwin-supported project focused on income generation and enterprise development, directly benefiting 360 households. Key outcomes include: - Strengthening of Village Tree Enterprises (VTEs) for frankincense and beekeeping - Distribution of 500 storage sacks, improving post -harvest quality - Provision of modern beehives and equipment, increasing productivity - Expansion and restructuring of VTEs, improving efficiency and participation These interventions contributed to substantial income growth, supported by improved market access and higher product prices. The project demonstrated the effectiveness of combining enterprise development with ecological restoration to build long-term resilience. 3. Tree Planting and Forest Restoration Project This project transitioned from planting to sustaining and protecting restored forest areas, ensuring long-term ecological impact. Achievements include: - Community -led fencing, weeding, and controlled grazing - Improved survival and regeneration of planted trees - Early livelihood benefits, including grass harvesting for livestock feed - Increased participation of women in agroforestry, generating income This shift toward maintenance reflects a maturing restoration model, where communities take ownership of long-term forest management. ## 4. Wof-Washa Livelihoods and Agroforestry Project This flagship programme delivered large-scale livelihood and restoration outcomes, supporting 1,688 households directly and reaching thousands more indirectly. Key achievements include: - Planting of 320,279 multipurpose seedlings across 72 hectares - Adoption of agroforestry practices by 1,688 households - Distribution of 1,350 grafted apple seedlings to 165 households • Support to 249 households in vegetable production using 5,268 kg of improved seed • Establishment of forage systems supporting 518 households with 54,404 seedlings. - In addition, a youth tree seed enterprise was established and collected 1,672 kg of seeds, amounting to ETB 341,100 income. The project also developed two strategic framework plans. Agroforestry Implementation Strategy and a Tree Seed Enterprise and Marketing Strategy. These frameworks provide a foundation for long-term landscape restoration and economic development. 5. Regreening Project (Central Rift Valley) This initiative focused on restoring degraded land and strengthening climate resilience. Key achievements include: Included Planting of 5,500 indigenous tree seedlings • Awareness training for 72 community members and stakeholders • Strengthened community ownership of restoration activities The project contributed to biodiversity conservation and climate adaptation, while building local capacity for sustainable land management. 6. Project Closeout and Sustainability (Metema Projects) The closure phase of the UKAM and Darwin projects ensured continuity and long-term sustainability. Key outcomes include: - Full implementation of forest management plans by cooperatives • Strengthened bylaw enforcement and governance systems • Increased participation of women, youth, and persons with disabilities • Formal handover to community and government structures Stakeholders strongly endorsed the continuation and scaling of these interventions, reflecting their impact and sustainability. ## Challenges The SUNARMA faced several significant challenges which included security constraints which restricted access in key project areas, delayed implementation and limited monitoring. Inflation and cost pressures in Ethiopia can limit the amount of work that was planned, especially if there are delays caused by logistical and security restrictions in remote locations. We are so thankful to our many individual supporters in the UK who enabled us to continue this work. The SUNARMA staff deserve our thanks and have delivered outstanding results under sometimes very difficult financial and physical conditions. ## Financial review This year, our income was £26,608 (2024 £32,722) while costs have been more than halved, at £19,450 (2023 £44,719) as a result of the streamlining of our Direct Mail processing and reduction in overheads, Consequently, the free reserves held on 31 December 2025 increased to £8,864 (2024 £1596) ## Reserves Policy The level of reserves are important to help with the funding that enables projects to continue and is continually monitored by Trustees. The Acton Ethiopia Board agrees and administers the disbursement of funds against a work programme agreed with field staff in Ethiopia. Occasional challenges on the ground, such as environmental factors, drought, excessive rain, etc., or delays in the response of local stakeholders, can mean that the project runs behind schedule. In this event, the Acton Ethiopia Board will renegotiate the activities to bring the projects back on track and this can result in the fluctuation of the level of restricted project reserves. The Trustees acknowledge their responsibility to ensure that the charity at all times retains unrestricted reserves to ensure that it is able to fulfil its ongoing obligations. A target for these reserves has been set to cover three months of unrestricted expenditure. The free reserves held on 31 December 2025 were £8,110 (2024 £1,596) Trustees’ responsibility statement. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose, with reasonable accuracy at any time, the financial position of the charity. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees’ annual report was approved on…………………………….. and signed on behalf 29 April 2026 of the Board of Trustees by: P von Lany Trustee Th8 8ustalnable Natural Re8our￿ Manag•mentAssodalJon (UK) Staiem•nt of Flnan¢lal Po$ttlu Yoar Ended 31 Decernb•r 2029 Notg 25 2D24 Curr•nt tr558¢8 Debtors Cash at bank aFTrJ Sn hand 833 4,393 5.226 10.256 Cr8dttorn'. amounts falllng dua wTthIn on• y•ar 1,392 Not ¢urr•nt 8588tS 8.864 1,598 Total assèis 1088 ¢urYont Itabllltles 1.596 Nat assets Funds of the ch8rfty Resrlcted funds UnTeslrlcl8d funds 8.220 1,598 Total ¢hartty funds 8.864 1,596 Notes 1. Donatlong and legaelo¥ Indlvidua15 and trusts Just Glvlng Don8Jon$ genera￿1 by Direct Mall 8,409 18.093 26,566 2. Investmènt In¢tsmo Bank Inierest r8¢efved 3. Costs of ralslng funds Direcl Mall (ampaiqn Consultan Donors and grant Just Glvlng expor 7.555 216 7,771 4. Charltable actlvttles SET Staff traliing and op8ratyonal supwrt Technlcal and wlicy ¥dvir Public 8warene8S Othce Gosts A¢countsnGy f8&s Ind8pendent examinatK)n faes Cost of trustees. rneètings anag6ment costs 7.432 3297 11.569 5. Debtor8 HMRC Grft ald 6. Credlto A(rruals Cr8ditgrs 302 1.392 Y. Charftable funds 01m112)25 Ineomo Expgndtturn Transfers 3111W2025 funds 2025 1.5 26, {19.340} G8n8ral funds 2024 13,593 32.722 144,7191 1,596 The Sustalnabl& Natural Rèsource M*w•m8nt ASSOdatk￿ (UK) StatemBnt of Financlal Athlvltl•s Year End•d 31 D•c•mbor 2025 2025 2024 Funds Funds Total Funds Totsl Funds Income and ￿dOwments from.. DonalSons and legacies Investment Income 25.922 42 26,58e 42 32,641 81 Totsl Income 25,964 26,608 32,722 Expondltur• Costs of raising fijnds cha￿table activTbes 7,771 11,569 7,771 11,569 2S,537 18,182 Total Expendltur• 19.340 19,340 Nel l?xpenditutrey Incom• 6,ff24 7,268 111,9971 TTrnsfer be￿ funds Net movomant In funds 8.624 7,268 111,9971 R￿orKi11a1l0n of funds Total funds broughtforward 1,596 13,593 Total funds carrled foTw8rd 8,864 1,596 Indopondant examiner's report to the membersltrustees of Tho Sustainable Natural Resource Management Association (UK) I report on the accounts for the year ended 31 DeceM￿r 2025. Rèspactivè responsibilities of trustees and examiner The charity'8 trustees are responsible for the preparation of Ihe accounts. The Cha￿￿8 trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 {the 2011 Act) and that an independent examination is needed. It is my responsibility to- examine the accounts under section 145 of the 2011 Acl.. to follow the procedures laid down in the general Directions given by Ihe Charity Commission under seclion 145(5Xbl of the 2011 Act.. and to slate whether particular matters have come to my attention. Basis of Independent examlneVs report My examination was ¢xffied out in accordance wtth Ihe generdl Directions given by the Charity Commission. An examination includes a review of the acGounting records kept by the charity and 8 Comparison of the accounts presenled wilh those records. It also includes consideration of any unusual items or disclosures in the accounts. and seeking explanations from you as trustges conGerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whett)er the accounts present a 'lrue and fair view and the report is limited to those matters set out in the statement below, Independent examinerfs statement In connect'on with my examination, no matter has come to my attention: (11 which gives me reasonable cause to believe that in any material respect th8 requirements.. to keep accounting re¢ords in aG[X)rdan￿ with section 130 of the 2011 Act", and to prepare accounts which accord ￿ the arLounting records and comply with the accounting requirements of the 2011 Act hav8 not been met", or 121 to which. in my opinion, attention should be drawn in orderto enable a prowr understanding of the accounts to be reached. Mar(e Johns FCCA Batchelor & Company Awuntants Ltd Charlton House, Cullompton. Devon EX15 1AE 29th April 2026