## **PROJECT HARAR A COMPANY LIMITED BY GUARANTEE** **Report and Financial Statements For the Period ended 31 December 2021** **Charity number: 1094272** **Company number: 4300840** **Prepared by: Errington Langer Pinner Chartered Accountants Pyramid House 954 High Road London N12 9RT** ## **PROJECT HARAR** **___________________________________________________________________________________** ## **CONTENTS** _**FOR THE PERIOD ENDED 31 DECEMBER 2021**_ **____________________________________________________________________________________** ||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** **____________________________________________________________________________________** ## **COMPANY INFORMATION** _**FOR THE PERIOD ENDED 31 DECEMBER 2021**_ **____________________________________________________________________________________** |**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** **____________________________________________________________________________________** ## **DIRECTORS’ AND TRUSTEES’ REPORT** _**FOR THE PERIOD ENDED 31 DECEMBER 2021**_ **____________________________________________________________________________________** The Trustees present their Report along with the Financial Statements of the charity for the period ended 31 December 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 period we have continued to focus on two key areas, early and comprehensive medical treatment for cleft lip and palate in rural Ethiopia, and a continued collaborative training programme with Yekatit 12 hospital, building skills required for the treatment of complex facial disfigurement for children and adults in the Ethiopian health system through the following key initiatives: - **Cleft Programme:** Project Harar provides life-changing surgery and support for children with cleft lip and palate through outreach services, awareness-raising activities, nutritional support and speech and language therapy. Conflict was a major challenge in 2021. In April the government announced a State of Emergency in Amhara which spread to Afar. In November 2021 the Government announced a national state of emergency. Elective surgery was stopped in Amhara between April and June as hospitals and medical staff diverted equipment and attention to emergency care. Surgeons were less willing to travel, and road closures and the risk of conflict made it more difficult for patients to travel. However, the Project Harar programme team in Ethiopia were agile in their delivery and continued to provide programmes, with Covid measures in place, in regions where it was possible to do so. Awareness raising programmes also continued about cleft lip and palate and to support families in need of treatment with advice and support. We continued to deliver a targeted nutrition programme alongside the existing programme, working with other agencies, supporting young patients who are undernourished so that they can become strong enough for surgery. - **Health and Social Worker Training:** We provide training in identification of children affected by a cleft condition and facial disfigurements to government health and social workers who can access even the most remote communities. They identify and refer patients to us for surgery and support, and they work with parents and other community members to dispel the myths surrounding cleft – thereby helping to reduce stigma. Page 1 ## **PROJECT HARAR** **____________________________________________________________________________________** ## **DIRECTORS’ AND TRUSTEES’ REPORT (CONTINUED)** _**FOR THE PERIOD ENDED 31 DECEMBER 2021**_ **____________________________________________________________________________________** ## **How our activities deliver public benefit (continued)** This Period the work has expanded to include a remote training programme at Yekatit 12 Government hospital using simulator medical training equipment. - **Community-based Speech and Language Therapy:** In partnership with Transforming Faces, we have also continued a SLP programme based in the community, as many patients find it difficult to travel to Addis Ababa which has the only SLP unit in Ethiopia. This has developed to include remote delivery of speech therapy and training local health representatives and caregivers to work with the child directly. - **Complex Surgical Programme:** Due to Covid, conflict, a state of emergency, and the inability of NHS workers to travel, it became apparent the annual in-person collaborative Complex Surgical Mission could not be delivered. Strong communication was maintained with Yekatit 12 Hospital to identify training needs and how best these could be delivered. - **Partnerships with Health Professionals in Ethiopia:** Project Harar is committed to developing the capacity of all those with whom they work in Ethiopia. During the complex programme, our medical team works closely with Ethiopian medical professionals, exchanging ideas and presenting and attending key learning sessions. During this period it has not been possible for a volunteer team to travel to Ethiopia as NHS volunteers were unable to travel due to Covid travel restrictions, an increased workload at home and a State of Emergency in Ethiopia. - **Collaboration and skills sharing** : The remote lecture programme was further extended with the development of a remote training programme. In November 2021 Project Harar was awarded a partnership for global health grant from the Tropical Health and Education Trust (THET). The funding from Health Education England supported the provision of high-quality medical simulator training equipment including an adult and a child airway management mannequin, innovative microsurgical training kits and supporting technology to share teaching and training sessions. Previously students would be required to go outside of Ethiopia to receive training in microsurgical skills. Project Harar medical Volunteers from the NHS took part in the development of this training scheme in collaboration with Yekatit 12 Medical School, Addis Ababa, Ethiopia. - **Patient Follow-up, Research and Evaluation** : Throughout the year we record medical information including age, weight, and gender of all our patients and take pre- and post- treatment photography. This year we have found that children are increasingly arriving undernourished. Approximately 10% of young patients are not strong enough for surgery and we have developed a nutrition support package in response to this. Patients are followed up and monitored so that they may return for surgery when weight and health improve. - **Partnering with the Ministry of Health:** Thanks to our advocacy efforts, cleft lip and palate has now been formally recognised by the government as a significant cause of malnutrition and chronic ill-health in children. Furthermore, Project Harar has been formally recognised as a key player in addressing this health issue, and in 2016 we signed an MOU with the national government, where the importance of our role was acknowledged. ## **Performance and achievements** The Board of Trustees elected to change the Financial Year end to December to align with reporting in Ethiopia. With this change the income in the current period is based on a 9 month period rather than a full year. Accordingly total income decreased by 34% to £152,828 compared to the previous year on a pro rata basis. As with the previous year an increased proportion of unrestricted funding allows for greater flexibility in allocating resources. As we entered the financial period continued civil unrest in Ethiopia prevented work in some regions. We are grateful to Comic Relief who allowed redirection of funds from the programme in Afar (due to continued conflict in that area) to contribute to support our cleft programme in other regions of Ethiopia. Page 2 ## **PROJECT HARAR** **____________________________________________________________________________________** ## **DIRECTORS’ AND TRUSTEES’ REPORT (CONTINUED)** _**FOR THE PERIOD ENDED 31 DECEMBER 2021**_ **____________________________________________________________________________________** ## **Performance and achievements (continued)** Whilst the exchange rate continued to be beneficial, inflation in Ethiopia has continued at approximately 27% impacting costs of 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. The trustees continued to take a prudent approach to expenditure on charitable activities in line with reduced income, However, cleft treatment programmes took place where it was possible to do so. In the period to December 2021, we treated 327 patients with cleft lip and palate in the following regions: 201 in Oromia; 83 in Amhara and 43 In Southern Nationalities Nations and People Region (SNNPR). A further 39 children who presented for treatment were unwell or undernourished and given support including nutrition and advice to return for surgery when they were strong enough. 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 Harar 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. The state of Emergency in Ethiopia lifted in January. 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 2001, the charity has now supported more than 9,000 Ethiopians with cleft lip and palate to access surgery and nutritional support, trained more than 10,000 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 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. In 2021 we took part in The Big Give Christmas challenge. We thank our pledgers and Ethiopiaid for once again being our Champion. A grant awarded in October 2021 from the Tropical Health and Education Trust (THET), funded by Health Education England, enabled us to further develop our collaborative training programme with Yekatit 12 Hospital and Medical School in Ethiopia, continuing into 2022, through a remote training programme. This funding supported the provision high quality simulator medical training equipment and technology including 3D cameras to develop and film training modules and enable participants to take part in remote training exercises. Volunteers from the UK National Health Service (NHS) including consultant surgeons, consultant anaesthetists, and registrars developed and filmed practical step by step modules. This included training in the management of difficult airway management using specialist mannequins. This training is highly relevant for treating trauma patients and those requiring hospitalisation for Covid. Equipment has been provided and training for nurses in nasogastric feeding techniques and tracheostomy care has also been developed. Provision of microsurgical training kits to and skills training delivered at Yekatit 12 was a first for Ethiopia. 3D moulded stands are used alongside Smartphones acting as microscopes to deliver simulator training and practise where previously surgeons had to travel overseas for this opportunity. 10 volunteers from the NHS were involved in developing and filming the surgical, anaesthetic and nursing training modules 40 candidates from eight different hospitals in Ethiopia have benefitted from this training so far with some sessions now being delivered by those trained in the first round. This type of global collaboration is mutually beneficial for health systems involved Page 3 ## **PROJECT HARAR** **____________________________________________________________________________________** ## **DIRECTORS’ AND TRUSTEES’ REPORT (CONTINUED)** _**FOR THE PERIOD ENDED 31 DECEMBER 2021**_ **____________________________________________________________________________________** ## **Performance and achievements (continued)** We acknowledge and thank all Trusts and Foundations who have supported Project Harar We would thank Ethiopiaid for their support and extend our thanks to our corporate fundraising partners and all individual donors who make our work possible. 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. Inflation and the exchange rate is a risk to funding of the organization. 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. 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. Increased security of funding will mitigate inflation and exchange rate risks. 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. Page 4 PROJECT HARAR DIRECTORS, AND TRUSTEES, REPORT (CONTINUED) FOR THE PERIOD ENDED 31 DECEMBER 2021 Structure. govornance and mana98m¢nt Proiecl Harar ILThiled by guaranleel 15 a company Imiled by guaRnlee having no share ¢apitsl. The company Is goveined by its Memordnthjrn and thles ofAs50cialm and the provI5￿n$ and reCornMendat￿ns ol Ihe Chanty Commission The cijnpany is managed by rt5 truslees The ¢hantable company reltes on the generaus donatMMs of the publ￿. bu5ines5es and Prifdle chanlable trusts. Director and trustees The followng hav2 held office smce 1 Awl 2021.. Denise Fafley Prof Mark McGufk Vinod Patel LLrty Connolly Charle5 Chad ltrvslee and direclor) ltrustee and direclor} (trnslee and dtrector) {IIu51ee and director) (trustee and direcior) RRvlew of transactions and financlal posllion Overall expendilurfr in the current peri*xI was £151.342 (2021 - £216.615) a decrease of 30% Al the balance sheei dale. Ihe lo131 funds of the charity had been mairtla￿ed al £174,720 (2021- £173.234) Rtsk management The company dtyectDr has consKlered the ft5k5 to which the chanlable company is exposed and has reviewed Ihose nsks and e$lablished syslems atid procedures lo manage those rtsks Investmonts Under 115 Klemorandum and ￿ticleS of Associalion the t*wtsble company has the poiver to make Investments which the inJslee5 See fiL This report ha5 been prepared in accy)rdance with the speoal prow%ons applrdble lo companies entslled lo the small c¢)mpanies eXempl￿n. The Iruslees. report was appmed by the Board ofTwslee5 Lucy Connolty Dlroctor 19 October 2022 Page 5 ## **PROJECT HARAR** **____________________________________________________________________________________** ## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF PROJECT HARAR** _**FOR THE PERIOD ENDED 31 DECEMBER 2021**_ **____________________________________________________________________________________** I report to the trustees on my examination of the accounts of Project Harar (the charity) for the period ended 31 December 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: - accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or - the accounts do not accord with those records; or - 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 - 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 (FRS102). 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:** 19 October 2022 Page 6 ## **PROJECT HARAR** **____________________________________________________________________________________** ## **PROFIT AND LOSS ACCOUNT** _**FOR THE PERIOD ENDED 31 DECEMBER 2021**_ **____________________________________________________________________________________** ||**Notes**|**2021**|**2021**| |---|---|---|---| |||**£**|**£**| |**Income**||152,789|312,834| |Expenditure||(151,342)|(216,615)| |||_______|_______| |**Operating profit/(loss)**||1,447|92,619| |Bank interest received||39|76| |||_______|_______| |**Profit/(loss) on ordinary activities before**|||| |**taxation**||1,486|96,295| |Tax on profit/(loss) on ordinary activities|**9**|-|-| |||_______|_______| |**Profit/(loss) for the year**||1,486|96,295| |||══════|══════| The profit and loss account includes all gains and losses recognised in the year All income and expenditure derive from continuing activities Page 7 ## **PROJECT HARAR** **____________________________________________________________________________________** ## **STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE PERIOD ENDED 31 DECEMBER 2021**_ **____________________________________________________________________________________** ||**Unrestricted Restricted Total**|**Unrestricted Restricted Total**|**Unrestricted Restricted Total**|**Total**| |---|---|---|---|---| ||**Funds**|**Funds**|**2021**|**2021**| ||**£**|**£**|**£**|**£**| |**Incoming resources**||||| |Donations and grants|92,682|60,107|152,789|279,727| |Income from events|-|-|-|33,107| |Other income|-|-|-|-| |Interest receivable|39|-|39|76| ||_______|_______|_______|_______| |**Total incoming resources**|92,721|60,107|152,828|312,910| ||_______|_______|_______|_______| |**Resources expended**||||| |**Cost of generating funds**|28,996|-|28,996|38,033| |**Expenditure on charitable activities**||||| |Cleft programme|-|64,691|64,691|92,422| |Complex surgical programme|-|43,547|43,547|63,556| |Fund transfers|50,490|(50,490)|-|-| |**Other costs**||||| |IT & communications|4,384|628|5,012|10,240| |Staff and trustee travel|-|-|-|113| |General insurance|-|-|-|-| |Professional and governance costs|1,362|-|1,362|2,472| |Training and development|-|-|-|-| |Office rent and utilities|5,494|-|5,494|7,294| |Bank charges|538|-|538|532| |Sundry expenses|1,702|-|1,702|1,953| ||_______|_______|_______|_______| |**Total resources expended**|92,966|58,376|151,342|216,615| ||_______|_______|_______|_______| |**Net incoming/(outgoing) resources**||||| |**for the period ended 31 December 2021**|(245)|
1,731|1,486|96,295| |**Fund balances brought forward**||||| |**at 1 April 2021**|168,734|4,500|173,234|76,939| ||_______|_______|_______|_______| |**Fund balances carried forward**||||| |**at 31 December 2021**|168,489|6,231|174,720|173,234| ||=======|=======|=======|=======| Page 8 PROJECT HARAR BALANCE SHEET AS Af310ECEMBER 2021 2021 2021 Notes Current assets Deblois Cash al bank and In hand 9.732 213,632 218.809 223.364 228.564 Credltors: amounts falling due viithin one year (13.6UI 115.3301 Net current assots 209.720 213,234 CrpditOlY: 8rnounts falling due aftermoretha on¢ year 135.WOI (40,0001 Total net assets 174.720 173,234 Fund balances General fund Reserve fund Deswnated funds Resincled funds 140,689 27,800 140.934 27.800 6.231 4.500 Total funds 174,720 173,234 The company 15 entsued to the exemptKm fr(rfn Ihe audit requirement contsined in sectson 477 of the Companies Act 2006. luf Ihe peric¥J ended 31 December 2021. No mefflber of the company has deposiled a notsce, pursuanl lo secknan 476, requinn9 an audit ol Ihese accoLml5. The Iruslees, responsibikltes for ensuring that the chanty keeps accounting records which comply wÉih sedson 386 Gl the kl and for prepanng 3ccounls whKh gNe a true and faw view of the slale ol affair5 of the company as al the end of ihe financjal pe￿d and of its Inccffiing resource5 and apphcalion of resources. including Ils income and expenditure. for Ihe financBI penod In accordance with Ihe requiiemenls ol secti¢M$ 394 and 395 and which otherwise comply with Ihe requirements of the Compantes Acl 20C6 relating 10 accounts. so far as applicable lo Ihe company These accoun15 have been prepared in acCordar￿ with the proYLsions applicable lo companies subject lo Ihe small companies. regime The accounts were approved by the Trustees on 19 October 2022 Co Director Company Registration No. 4300840 Page 9 ## **PROJECT HARAR** **____________________________________________________________________________________** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE PERIOD ENDED 31 DECEMBER 2021**_ **____________________________________________________________________________________** ## **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: - Income from donations and grants, including capital grants, is included in incoming resources of unrestricted funds when receivable. - When donors impose conditions and grants are for particular restricted purposes, this income is included in incoming resources of restricted funds when receivable. - Donated goods, services and facilities are included at the value to the charity where this can be quantified. ## **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. Page 10 ## **PROJECT HARAR** **________________________________________________________________________________________** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE PERIOD ENDED 31 DECEMBER 2021 (CONTINUED)**_ **________________________________________________________________________________________** ## **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. Page 11 ## **PROJECT HARAR** **________________________________________________________________________________________** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE PERIOD ENDED 31 DECEMBER 2021 (CONTINUED)**_ **________________________________________________________________________________________** ## **1. Accounting policies** ## **(Continued)** ## **1.7 Fund accounting** Funds held by the charity are either: - _Unrestricted funds_ – these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees. Designated funds are unrestricted funds earmarked by the trustees for particular purposes. - _Restricted funds_ – these are funds that can only be used for particular restricted purposes within the object of the charity. Restrictions also apply when specified by the donor or when funds are raised for particular purposes. Expenditure that meets these criteria is identified in the fund. ## **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**|**2021**| |---|---|---| ||**£**|**£**| |Other debtors and accrued income|9,732|9,755| ||_______|_______| ||9,732|9,755| ||======|======| |**Cash at bank and in hand**|**2021**|**2021**| ||**£**|**£**| |Current account|78|78| |Deposit accounts|213,554|218,731| ||_______|_______| ||213,632|218,809| ||=======|======| ## **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. Page 12 ## **PROJECT HARAR** **________________________________________________________________________________________** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE PERIOD ENDED 31 DECEMBER 2021 (CONTINUED)**_ **________________________________________________________________________________________** ## **6. Analysis of charitable funds** ## **Analysis of unrestricted funds movements** ||**Balance at**|**Incoming**|**Resources**|**Balance at**| |---|---|---|---|---| ||**1 April 2021**|**resources expended 31**||**December 2021**| ||**£**|**£**|**£**|**£**| |General fund|140,934|92,721|(92,966)|140,689| |Reserves fund|27,800|-|-|27,800| |Designated|-|-|-|-| ||______|______|______|_______| ||168,734|92,721|(92,966)*|168,489| ||======|======|======|=======| |**Analysis of restricted funds movement**||||| ||**Balance at**|**Incoming**|**Resources**|**Balance at**| ||**1 April 2021**|**resources expended 31**||**December 2021**| ||**£**|**£**|**£**|**£**| |Cleft programme|-|31,019|(31,019)|-| |Complex surgical programme|-|17,200|(17,200)|-| |Comic Relief|4,500|-|-|4,500| |Kickstart Scheme|-|11,888|(10,157)|1,731| ||______|______|______|______| ||4,500|60,107|(58,376)**|6,231| ||======|======|======|=======| - including £50,490 transferred to restricted funds ** including £50,490 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. Kickstart Scheme Project Harar took part in the Kickstart scheme during this period enabling us to employ two candidates consecutively with a month crossover to handover and enable skills sharing between the candidates. The scheme funded 25 hours per week at the National Living wage depending on age, plus a grant of £1,500 for set up and training of each candidate. Page 13 ## **PROJECT HARAR** **________________________________________________________________________________________** ## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE PERIOD ENDED 31 DECEMBER 2021 (CONTINUED)**_ **________________________________________________________________________________________** ## **7. Staff costs** **2021 2021 £ £** UK staff 79,685 88,715 ======= ======= The average weekly number of staff remunerated during the period, calculated on a full time equivalent basis was: **2021 2021** Administration in UK 2.00 2.00 The trustees received no remuneration or reimbursements in the current or previous period. ## **8. Related party transactions** During the period 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. Page 14