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2022-12-31-accounts

Trustees’ Annual Report and Accounts 2022

Company Registration Number: 4300840 Charity Registration Number: 1094272 www.projectharar.org

We are delighted to present the 2022 Trustees’ report and accounts on behalf of the Project Harar Board of Trustees.

In 2022 we celebrated our 21st year and we also hit some exciting milestones. Here are some of our highlights:

Since our foundation in 2001, Project Harar has treated 10,021 patients . Abel is one of the patients who came to us in 2022 with his mother. Their story is a reminder of how life changing cleft treatment is...

Abel’s Story

Project Harar works in the most remote and disadvantaged areas of Ethiopia; we are able to do this because of our licence to work across all of Ethiopia with the Federal Ministry of Health.

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

Abel, born with a cleft lip and palate, came to Project Harar’s program in SNNPR following a referral from a local doctor. Abel’s mother was studying at school when she fell pregnant with him. She had to drop out of school when he was born in order to take care of him. She explained “I hoped to go back to school once I gave birth...But as my son needs special care I thought I will never achieve my dream of going back to school.”

However, since Abel’s surgery, his mother feels hopeful that her son will live a happy and fulfilled life, free from the health and social barriers that come with having a cleft lip and palate in rural Ethiopia. She no longer fears that stigma will prevent both her and her son from receiving an education and is confident she can now return to school.

As we emerged from COVID-19 we benefited from the support of the government Kickstart scheme in the UK, providing us with a grant to employ two talented young people. This brought additional support and creativity to the UK team whilst equipping young people with skills for the future.

In Ethiopia, we delivered medical simulator equipment and virtual training from UK experts to health professionals at Yekatit-12 Government Hospital in Addis Ababa, creating a library of resources and providing surgical training equipment. We continue our collaborative relationship with Yekatit-12 Hospital.

PROJECT HARAR A COMPANY LIMITED BY GUARANTEE

Report and Financial Statements For the Year ended 31 December 2022

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 DECEMBER 2022

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Page Directors’ and trustees' report 1 - 3 Independent examiner’s report 4 Profit and loss account 5 Statement of financial activities 6 Balance sheet 7 Notes to the financial statements 8 -12

PROJECT HARAR

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COMPANY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2022

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Directors Denise Farley
Josephine Crown
Professor Mark McGurk
Vinod Patel
Lucy Connolly

Charles Chad
Trustees Denise Farley
Josephine Crown
Professor 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 DECEMBER 2022

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The Trustees present their Report along with the Financial Statements of the charity for the year ended 31 December 2022. The Financial Statements have been prepared in accordance with the accounting policies set out on pages 8 - 10 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 in the UK works in partnership with Project Harar Ethiopia to implement our shared charitable objectives, which are to provide nutrition support, access to surgical treatment and other ancillary support to children and young people with cleft or other facial conditions from remote, rural, and impoverished areas of Ethiopia.

How our activities deliver public benefit

The Trustees have, throughout the year, complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission. .

Performance and achievements

In 2021 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 previous period is based on a 9 month period rather than a full year. With this change total income decreased by 42% to £117,018 compared to the previous period on a pro rata basis. The Board recognises that this was a necessary impact of the strategic decision to focus on raising funds in Ethiopia which go directly to Project Harar Ethiopia. This initiative made in light of continuing fundraising challenges in the UK, has already had the effect of increasing funding direct to Ethiopia by over £160,000 in the first 3 months of 2023.

During the year we have undertaken the following activities:

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PROJECT HARAR

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DIRECTORS’ AND TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

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Performance and achievements (continued)

Future developments

A number of risk factors will affect our work in the next 12 months. The pandemic aftermath 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 all a risk to funding of the organization.

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

In the UK we 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 2024. 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 working with our colleagues in Ethiopia to raise funds in-country to support Project Harar Ethiopia directly and we will expand our relationship with corporates in the UK and Ethiopia, such as DSP who are providing technical support in the UK and Ethiopia, as well as fundraising for cleft programmes.

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 {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 Structure, governance and man3g•ment Project Harar ILirnited by guarantee) Is a company lirnited by guarantee having no share capital The company 1$ governed by Ils Memorandum and Articles of As50cialion and the prtsvisions and recommendalK)ns of the Charity Commission. The company is managed by its trustees. The charitable company relies on the generous donations ol the public, businesses and private charitable trusts. Director and tru5ttos The following have held office sincè 1 January 2022.. Denise Farley Itrustee and director) Josephine Crown (trustee and director) (appointed 10 February 20221 Professor Mark McGurk Iliustee and director) Vinod Patel Iltustee and director) Lucy Connol Itiustee and di￿torI Charles Chad (trustee and d1￿clOrI Review of transactions and financial position Overall expenditure in the current year was £227.67912021 £1S1.342 an incre85e of SO%. At the balancé sheet dale. the total funds of the chanty had accordingly reduced to £64,05912021- £174,720). Risk management The directors have consKlered the risk5 to which the charitable company 15 exposed and have reviewed Ihose risks and established systems and procedures lo manage those risks. Investments Undef its Memorandum and Artides of Ass¢xiation th8 charitable wmpany has the power to make investments which the direGtors see fit This report has been prepared in accordance with the special provisions applicable to ¢(Mnpanies entitled to Ihe small companies exemption. The trustees. report was approved by the Board ofTruslees Lucy Conn Director 27 September 2023 Page 3

PROJECT HARAR

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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF PROJECT HARAR FOR THE YEAR ENDED 31 DECEMBER 2022

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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 December 2022.

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:

27 September 2023

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PROJECT HARAR

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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

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Notes 2022 2021
£ £
Income 116,993 152,789
Expenditure (227,679) (151,342)
_ _
Operating (loss)/profit (110,686) 1,447
Bank interest received 25 39
_ _
(Loss)/profit on ordinary activities before
taxation (110,661) 1,486
Tax on profit/(loss) on ordinary activities 9 - -
_ _
(Loss)/profit) for the year (110,661) 1,486
══════ ══════

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 DECEMBER 2022

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Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total Total
Funds Funds 2022 2021
£ £ £ £
Incoming resources
Donations and grants 98,968 18,025 116,993 152,789
Income from events - - - -
Other income - - - -
Interest receivable 25 - 25 39
_ _ _ _
Total incoming resources 98,993 18,025 117,018 152,828
_ _ _ _
Resources expended
Cost of generating funds 36,556 - 36,556 28,996
Expenditure on charitable activities
Cleft programme - 128,150 128,150 64,691
Complex surgical programme 2,058 39,173 41,231 43,547
Fund transfers 149,298 (149,298) - -
Other costs
IT & communications 7,464 - 5,012 5,012
Professional and governance costs 6,112 - 6,112 1,362
Office rent and utilities 6,716 - 6,716 5,494
Bank charges 7 - 7 538
Sundry expenses 1,443 - 1,443 1,702
_ _ _ _
Total resources expended 209,654 18,025 227,679 151,342
_ _ _ _
Net (outgoing)/incoming resources
for the year ended 31 December 2022 (110,661) - (110,661) 1,486
Fund balances brought forward
at 1 January 2022 170,220 4,500 174,720 173,234
_ _ _ _
Fund balances carried forward
at 31 December 2022 59,559 4,500 64,059 174,720
======= ======= ======= =======

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PROJECT HARAR BALANCE SHEET AS A T 31 DECEMBER 2022 2022 2021 Not&s Current assets Debtors Cash at bank and in hand 13,667 92.296 9.732 213.632 105.963 223.364 Creditors.. amounts falling due withln one y8ar 115,3801 113.6441 Net current as$ets 90,583 209.720 Creditors.. amounts falling due after more than one year 126,5241 135,0001 Total net assets 64,059 174,720 Fund balances General fund Reserve fund Designated funds Restricted funds 18,340 27,800 13,419 4.500 140,687 27,800 1.733 4.500 Total funds 64.059 174,720 The company is entitled to the exernption from the audit requirement contained in section 477 of the Companies Act 2006. for the year ended 31 December 2022. No tnember of the company has deposited a noti￿, pursuant to section 476. requiring an audit of these accounts. The trustees, responsibilities for ensuring that the charity keeps accountin9 records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as al the end of the financial year and of its incoming resource5 and appri￿￿.0n of resources. Including its income and expenditure. for the financial period in accordance with the requirements of sections 394 and 395 and which otherwise compty with the requirernents of the Companies Act 2006 relating to accounts, so lar a5 applirable to the company. These accounts have been prepared in accordance wilh the provisions applicable lo companies subject to the small companies. regime. The ccounts 8pproved by thè TTUStees on 27 September 2023 Lucy Connoll Director Company Registration No. 4300840 Page 7

PROJECT HARAR

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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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 DECEMBER 2022 (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 year. 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 DECEMBER 2022 (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 year in which the estimate is revised where the revision affects only that year, or in the year of the revision and future years where the revision affects both current and future years.

3. Debtors 2022 2021
£ £
Other debtors and accrued income 13,667 9,732
_ _
13,667 9,732
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4. Cash at bank and in hand 2022 2021
£ £
Current account 78 78
Deposit accounts 92,219 213,554
_ _
92,297 213,632
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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 DECEMBER 2022 (CONTINUED)

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6. Analysis of charitable funds

Analysis of unrestricted funds movements

Balance at Incoming Resources Balance at
1 January 2022 resources expended 31 December 2022
£ £ £ £
General fund 140,689 98,993 (209,654) 30,028
Reserves fund 27,800 - - 27,800
Designated 1,731 - - 1,731
______ ______ ______ _
170,220 98,993 (209,654)* 59,559
====== ====== ====== =======

Analysis of restricted funds movement

Balance at Incoming Resources Balance at
1 January 2022 resources expended 31 December 2022
£ £ £ £
Cleft programme - 190 (190) -
Complex surgical programme - 17,835 (17,835) -
Comic Relief 4,500 - - 4,500
______ ______ ______ ______
4,500 18,025 (18,025)** 4,500
====== ====== ====== =======

** including £149,298 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.

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PROJECT HARAR

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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)

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7. Staff costs

2022 2021 £ £ UK staff 107,662 79,685 ======= ======= The average weekly number of staff remunerated during the year, calculated on a full time equivalent basis was: 2022 2021 Administration in UK 2.00 2.00

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

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

8. Related party transactions

During the year trustees made donations towards the cost of the Cleft Programme.

9. Tax exempt status

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

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