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2021-03-31-accounts

PROJECT HARAR A COMPANY LIMITED BY GUARANTEE

Report and Financial Statements For the Year ended 31 March 2021

Charity number: 1094272

Company number: 4300840

Prepared by: Errington Langer Pinner Chartered Accountants Pyramid House 954 High Road London N12 9RT

PROJECT HARAR

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CONTENTS FOR THE YEAR ENDED 31 MARCH 2021

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Page
Directors’ and trustees' report 1 - 5
Independent examiner’s report 6
Profit and loss account 7
Statement of financial activities 8
Balance sheet 9
Notes to the financial statements 10 -14

PROJECT HARAR

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COMPANY INFORMATION FOR THE YEAR ENDED 31 MARCH 2021

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Directors Denise Farley
Prof Mark McGurk
Vinod Patel
Lucy Connolly

Charles Chad
Trustees Denise Farley
Prof Mark McGurk
Vinod Patel
Lucy Connolly
Charles Chad
Chief Executive Officer Jacquelyn Riley
Company number 4300840
Charity Number 1094272
Registered Office Pyramid House
954 High Road
London
N12 9RT
Independent Examiner Michael Pinner ACA
Errington Langer Pinner
Chartered Accountants
Pyramid House
954 High Road
London N12 9RT

PROJECT HARAR

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DIRECTORS’ AND TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

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The Trustees present their Report along with the Financial Statements of the charity for the year ended 31 March 2021. The Financial Statements have been prepared in accordance with the accounting policies set out on pages 10 - 12 and comply with the Companies Act 2006 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 and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016).

Objectives and activities

The objectives of the charity are the relief of poverty, the preservation and protection of human health and the advancement of education in Ethiopia, particularly amongst children and young people.

Project Harar’s primary function in the UK is partnership building, fundraising and advocacy to support our colleagues at Project Harar Ethiopia to implement our shared charitable objectives. It also jointly manages the annual complex surgical programme with Project Harar Ethiopia.

How our activities deliver public benefit

The Trustees have, throughout the period, paid regard to the Charity Commission’s guidance on public benefit in dealing with the aims and activities of the charity.

Project Harar is a health outreach organisation serving remote and impoverished small communities, mainly in the Oromia, Amhara, Southern Nations (SNNPR) and Afar regions of Ethiopia. The principal area of charitable activity is the securing of professional medical treatment and support for rural Ethiopians, especially children and young people, identified by our outreach work, who are unable to access or afford the surgery and support they require for cleft lip and palate and other facial disfigurements.

The life-changing surgery and comprehensive aftercare that patients receive, including speech and language therapy and nutritional support, help rebuild facial function and appearance, improve health and enable them to become accepted members of their communities, free from bullying and discrimination. Children can return to school and later earn a living, changing their life prospects forever.

This year we have continued to focus on two key areas, early and comprehensive medical treatment for cleft lip and palate in rural Ethiopia, and treatment of complex facial disfigurement for children and adults from rural communities and the Ethiopian health system and also extending our services to include Emergency Covid Response through the following key initiatives:

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PROJECT HARAR

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DIRECTORS’ AND TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

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How our activities deliver public benefit (continued)

This year the work has expanded to include Covid response and disseminating information to keep people safe. This year programme officers used their skills in TOTs (trainer of trainer schemes) to support the government Covid response.

Performance and achievements

Charity income decreased by 24% from 411,865 in 2020 to 312,834 in 2021, however as with the previous year an increased proportion of unrestricted funding allow for greater flexibility in allocating resources.

As we entered the financial year in a global pandemic, we are grateful to Comic Relief who allowed redirection of funds to contribute to and support 3 months of programme overhead of Project Harar in Ethiopia. Emergency funding of £25,000 to support the sustainability of our work was awarded from Ethiopiaid. An exceptional £50,000 was received from the Cotmore Trust on the closing out of their Fund. Meeting Needs provided £5000 of emergency funding for Covid Response enabling the provision of water barrels and soap. This pilot leveraged a further funding in Ethiopia to extend the programme. In May 2020 we benefited from a very successful Radio 4 appeal raising over £67,000.

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PROJECT HARAR

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DIRECTORS’ AND TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

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Performance and achievements (continued)

We have benefitted again this year from an improved exchange rate with Ethiopia, although this was mitigated by inflation of approximately 25% impacting fuel and food locally. Project Harar Ethiopia has secured additional funding locally which has complimented the ongoing cleft work funded by Project Harar from the UK.

Expenditure on charitable activities decreased due to taking a prudent approach in line with reduced income, most of our cleft programming, being put on hold and not being able to hold the annual Collaborative Complex Programme at Yekatit Hospital. In addition the lease on the Hampstead, London office was terminated in December 2020.

In the year to March 2021 between October 2020 and March 2021, following a 6-month halt in elective surgery due to the Covid pandemic, we treated 179 patients with cleft lip and palate in the following regions: Oromia 22 and 157 in Amhara. The initial programmes in Oromia acted as a pilot with new Covid safety measures in place. Early intervention is key to the success of an outcome for an individual patient. The impact will be on improved nutrition, physical development and speech. Early treatment also ensures that children do not have to go through years of isolation, bullying and exclusion from school, and later are able to work and earn a living.

Since 2008, Project has developed an extensive outreach network and has licences and partnerships that can enable it to work nationally across Ethiopia- a country with a population of more that 117 million. We first expanded our reach and services to cover the entire Oromia region. From 2014 onwards, we provided our services in the Somali and Southern Nations (SNNPR) regions. There has been increased identification as a result of training workshops including those with religious and community leaders. Ethiopia is presently in a state of emergency making work difficult in some regions. Our cleft programme delivery in Amhara is presently limited but patients continue to be identified here and in Afar. While in the medium to long term we look forward to a return to a more normalised operating environment, the patient need is increasing, creating pent up demand for our services going forward.

Since it was established in 2002, the charity has now supported more than 9,000 Ethiopians with cleft lip and palate to access surgery and nutritional support, trained more than 2,000 Ethiopian health workers in cleft management and other facial disfigurements, and treated more than 500 patients with the most severe facial disfigurements. Many hundreds have also received speech and language therapy and social support. Project Harar has been agile in its response to Covid and increasing uncertainties in Ethiopia. The charity will continue to provide comprehensive care to our patients so that they are able to achieve their potential and live as productive members of their communities.

Our founder and Trustee Jonathan Crown passed away suddenly in September 2020. He leaves a legacy of kindness. He was committed to supporting the work of the charity and generous of his time and fundraising efforts, particularly in the organisation of major fundraising events.

In 2020 we held an online fundraising event alongside The Big Give Christmas challenge. We thank our pledgers and Ethiopiaid for once again being our Champion.

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PROJECT HARAR

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DIRECTORS’ AND TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

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Performance and achievements (continued)

We acknowledge and thank Trusts and Foundations who have supported Project Harar including the Cotmore Trust (£50,000 was granted on the closing out of their fund), Ethiopiaid, Lloyds, EMS Abraham Trust, Morgan Charitable Fund, M and C Freeman Charitable Trust, Fulmer Trust, Fitton Trust, The Alchemy Foundation and The Artemis Charitable Foundation. We would also like to extend our thanks to our corporate fundraising partners and all individual donors who make our work possible.

The Terracycle coffee capsule recycling initiative introduced by Matt Fisher has continued to be a valuable source of funding with £800 raised this year.

Project Harar is proud to be a founding member of the Circle of Cleft Care Professionals and a member of Face Equality International.

We continue to work with Transforming Faces on a programme for development of capacity and delivery of speech therapy in Ethiopia.

Future developments

A number of risk factors will affect our work in the next 12 months. The pandemic with its new variant Omicron continues to affect our ability to fundraise, our working practices in the UK and the ability to mobilise and treat patients in Ethiopia. Security issues are impacting the movement safety of our partners in Ethiopia, and our ability to treat patients.

We have implemented the following strategies to cope with these challenges:

In the UK we have set up and continue to use a Co Working space. We have two full time staff in the UK, the UK office has a Chief Executive and a Communications & Fundraising Officer.

In Ethiopia our outreach team is working with the Federal Ministry of Health. In Amhara they continue to assist in Covid response and are working with other organizations responding with humanitarian relief. In other regions 320 Children have accessed treatment for Cleft Lip and Palate since April this year.

Project Harar is working to continue to diversify its funding base in 2021. The charity will also continue to seek funding from major institutional funders and foundations in order to expand our reach and provide comprehensive cleft care to as many patients as possible.

We will continue to work in partnership with the Ethiopian Ministry of Health whose support of people with facial disfigurements, particularly children and young people with cleft, has been key to Project Harar’s success in reaching so many patients in Ethiopia.

We will also continue to build partnerships with other organisations in order to expand our reach, and be flexible in our approach to responding to need.

Reserves policy

It is the policy of the charity that unrestricted funds that are not designated for any particular use should be maintained at a level equivalent to three month’s total expenditure and placed on bank deposit. The trustees consider that this level of reserves should ensure that in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.

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PROJECT HARAR DIRECTORS. AND TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Structure. govemance and management Prcjecl Harar (Limited by guarantee) is a company limited by guarantee having no share capitaL The company is gov8med by ils Memorandum and Articles ofAssocialion and the provisions and reGommendalions of the Charity Commission. The company is managed by ils Iru51ees. The charilable company relies on the generous donations of the public. businesses and private chariiable Iwsls. Director and trustees The following have held office since 1 April 2020- Jonathan Crown Denise Fadey Piof Matk McGurk Vinod Patel Lucy Connol Charfes Chad (founder. Iruslee and dir&clorl {deceaseil 19 September 20201 {Irustee and director) {Iru51ee and director) Ilruslee and director} {Irustee and director) {Iruslee and director) Review Df transactions and financial posltion Over811 expenditure in tha currenl period was £218.618 {2020 - £486.0421 a decrease of 55%. Al the balance sheel dale, the lolal lunds of the charity had increased lo £173,231 {2020- £76,939). Risk management The company diieclor ha5 cUlls￿ered the risks lo which the charilable company is exposed and ha5 reviewed those risks and established syslems and procedure5 to manage those risks. Investments Under 115 Memorandum and Articles of Association the Gharilable company has Ihe power lo make investments which the trustee5 See fil. Thi5 report ha5 been Pfepared in accordan￿ with the special provisions applicable to companie5 enlilled lo the small ¢onwanies exemplion. The truslees. report was approved by the Board of Tru$lees Lucy Connolty Dlrector 17 Deceff*er 2021 Page 5

PROJECT HARAR

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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF PROJECT HARAR FOR THE YEAR ENDED 31 MARCH 2021

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I report to the trustees on my examination of the accounts of Project Harar (the charity) for the year ended 31 March 2021.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purpose 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 charity 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 the charity’s accounts carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145 (5) (b) of the 2011 Act.

Independent examiner’s statement

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:

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.

……………………………………………..

Name:

Michael Pinner ACA

Relevant professional body:

Institute of Chartered Accountants in England and Wales

Address:

Errington Langer Pinner Pyramid House 954 High Road London N12 9RT

Date:

17 December 2021

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PROJECT HARAR

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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

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Notes 2021 2020
£ £
Income 312,834 411,856
Expenditure (216,615) (486,042)
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Operating profit/(loss) 92,619 (74,186)
Bank interest received 76 60
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Profit/(loss) on ordinary activities before
taxation 96,295 (74,126)
Tax on profit/(loss) on ordinary activities 9 - -
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Profit/(loss) for the year 96,295 (74,126)
══════ ══════

The profit and loss account includes all gains and losses recognised in the year

All income and expenditure derive from continuing activities

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PROJECT HARAR

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STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

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Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total Total
Funds Funds 2021 2020
£ £ £ £
Incoming resources
Donations and grants 210,931 68,796 279,727 220,021
Income from events 33,107 - 33,107 191,835
Other income - - - -
Interest receivable 76 - 76 60
_ _ _ _
Total incoming resources 244,114 68,796 312,910 411,916
_ _ _ _
Resources expended
Cost of generating funds 38,033 - 38,033 90,131
Expenditure on charitable activities
Cleft programme - 92,422 92,422 144,182
Complex surgical programme - 63,556 63,556 171,100
Fund transfers 44,051 (44,051) - -
Other costs
IT & communications 10,240 - 10,240 9,737
Staff and trustee travel 113 - 113 21,793
General insurance - - - 25,569
Professional and governance costs 2,472 - 2,472 3,517
Training and development - - - -
Office rent and utilities 7,294 - 7,294 13,508
Bank charges 532 - 532 334
Sundry expenses 1,956 (3) 1,953 6,171
_ _ _ _
Total resources expended 104,691 111,924 216,615 486,042
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Net incoming/(outgoing) resources
for the year ended 31 March 2021 139,423
(43,128)		 96,295 (74,126)
Fund balances brought forward
at 1 April 2020 29,311 47,628 76,939 151,065
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Fund balances carried forward
at 31 March 2021 168,734 4,500 173,234 76,939
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PROJECT HARAR BALANCE SHEET ASAT31 MARCH 2021 2021 2020 Notes Current assets Deblor5 Cash al bank and in h8nd 9.755 218.609 9,759 75.707 228.564 85,466 Creditors: amounts falllng due withln one year {55,3301 {8.5271 Net current assets 173,234 76.939 Total a55et¥ 173,234 76.939 Fund balances General lund Reserve fund Designatèd tunds Reslricled funds 140.934 27,800 1,511 27,800 4,500 47,628 Total funds 173.234 76.939 The company 15 entitled lo the exemplion fiom the audit requlremenl conlalned li section 477 of Ihe Companiès Act 2006. for the year ended 31 March 2021. No member ol the company has deposited a notice. pursuant lo section 476. ffjquiring an audit of these accounls. The trustees, respDnsibililies for ensuring that the chaiily keeps accounling records which comply with Section 386 ol the Act and for prèparing accounts which give a true and fair vièw or the slala of affairs of the company as al the end of the financial year and of its incoming resources and application ol resources, including ils income and expenditure. for the financial year in accordance wilh the Tequiipments of 5eGtion5 394 and 39S and which otherwise comply with the requiremen15 of the Companies Act 2006 relating lo accounts. so far as applicable lo the company. These accounts have been piepared in accordan￿ with the provisions applicable lo companies subject lo the sm811 companies, règime. Thè accounts were approved by the Trustees on 17 December 2021 Lucy Connolly Dirgcior Company Registration No. 4300840 Page 9

PROJECT HARAR

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

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1. Accounting policies

Charity information

Project Harar is a private charitable company limited by guarantee incorporated in England and Wales. The registered office is Pyramid House, 954 High Road, London N12 9RT.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Companies Act 2006 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 and Republic of Ireland (FRS 102) (effective 1 January 2019)”. The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The accounts are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention. The principle accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the accounts.

1.3 Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The specific policies are applied to particular categories of income:

1.4 Investments

Investments held as fixed assets are revalued at mid-market value at the balance sheet date and the gain or loss taken to the statement of financial activities.

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PROJECT HARAR

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

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1. Accounting policies

(Continued)

1.5 Foreign exchange transactions

Transactions in foreign currencies are recorded at the average rate of exchange for the period. Assets and liabilities denominated in foreign currency are similarly translated at an appropriate rate of exchange at the balance sheet date. All differences are taken to the statement of financial activities.

1.6 Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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PROJECT HARAR

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

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1. Accounting policies

(Continued)

1.7 Fund accounting

Funds held by the charity are either:

2. Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3.

4.

Debtors 2021 2020
£ £
Other debtors and accrued income 9,755 9,757
_ _
9,755 9,757
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Cash at bank and in hand 2021 2020
£ £
Current account 78 78
Deposit accounts 218,731 75,630
_ _
218,809 75,708
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5. Legal Status

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

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PROJECT HARAR

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

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6. Analysis of charitable funds

Analysis of unrestricted funds movements

Balance at Incoming Resources Balance at
1 April 2020 resources expended 31 March 2021
£ £ £ £
General fund 1,511 244,114 (104,691) 140,934
Reserves fund 27,800 - - 27,800
Designated - - - -
______ ______ ______ _
29,311 244,114 (104,691)* 168,734
====== ====== ====== =======
Analysis of restricted funds movement
Balance at Incoming Resources Balance at
1 April 2020 resources expended 31 March 2021
£ £ £ £
Cleft programme - 52,319 (52,319) -
Complex surgical programme - 1,636 (1,636) -
Comic Relief 47,628 14,841 (57,969) 4,500
______ ______ ______ ______
47,628 68,796 (111,924)** 4,500
====== ====== ====== =======

** including £44,051 transferred from general funds

Name of the fund Description, nature and purpose of the fund Cleft programme

To provide for outreach field work to identify low income, rural patients – particularly children and young people – with cleft lip and palate and coordinate and support their access to free treatment by Ethiopian surgeons. Also includes follow-up patient assessments, speech and language therapy, secondary patient referrals and monitoring and evaluation.

Complex surgical programme To facilitate the free treatment and support of low income, rural patients with complex facial disfigurements as a result of noma, burns, tumours, animals attacks and accidents, by a UK and international medical team.

Comic Relief

Project Harar was awarded a grant of £112,733 over three years in August 2017, for a programme in the Afar region of Ethiopia to provide mothers with nutritional and feeding support for their cleft child. The grant will also fund training for 350 health workers in the region who will assist Project Harar in identifying and recruiting children with cleft and support mothers with feeding issues.

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PROJECT HARAR

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

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7. Staff costs

2021 2020 £ £ UK staff 88,715 102,381 ======= =======

The average weekly number of staff remunerated during the period, calculated on a full time equivalent basis was:

2021 2020 Administration in UK 2.00 3.00

The trustees received no remuneration or reimbursements in the current or previous period.

8. Related party transactions

During the year trustees made donations towards the cost of the Complex Surgical Programme.

9. Tax exempt status

As a registered charity the company is exempt from corporation tax.

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