2020-12-31-accounts

Opportunity International United Kingdom

A company limited by guarantee Report and consolidated financial statements for the year ended 31 December 2020.

Company registration number: 05322719 Company registration number: 05322719 Registered as a Charity in England and Wales (1107713) and in Scotland (SC039692) Registered as a Charity in England and Wales (1107713) and in Scotland (SC039692)

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CUMULATIVELY

USERS

of better quality water and sanitation facilities in Ghana

All the above data are for the global Opportunity International Network

Board Chair, Cliff Hampton

Opportunity International has reached a momentous milestone – 50 years of serving those living in poverty and helping to create jobs, livelihoods, better education and health to millions of individuals and families.

However, the worldwide pandemic has revealed how connected we are as a global community and brought home how vulnerable our clients are to shocks of this nature. It has re-emphasised the need for savings and loans to see them through uncertain times such as this.

Over the years, I have visited our projects in Africa and seen so clearly the ambitions and tenacity of our clients to build a better life and, in particular, a brighter future for their children. The impact of the pandemic spurs us on to rededicate our efforts to impact many more lives – including the more marginalised such as people living with disabilities and refugees – and to support them to lift themselves, their family and their community out of poverty.

My thanks to you, our loyal supporters and donors, without whom our work would not be possible. With your help, we will continue to provide life-changing financial services and the building of secure, resilient and sustainable livelihoods for those most in need. Thank you.

Chief Executive, Sam Bickersteth

For 50 years, Opportunity International has taken a business-oriented approach to addressing poverty and social injustice. Our focus on finance has enabled people living in poverty to increase their incomes, send their children to school and transform their lives and enabled millions of people to work their way out of poverty by providing access to loans, savings and insurance, alongside financial literacy training, business advice and mentoring. Opportunity is currently managing programmes in over 20 countries worldwide reaching nearly 20 million clients, 95% of whom are women. Despite this progress, over 1.7 billion adults remain unbanked, lacking access to a formal financial institution, and there remains much to do!

Access to financial services is at the core of our work because we ultimately believe in businessoriented solutions to social problems. Enterprising people need capital to start and build businesses that meet local needs. However, we have also learnt that financial services are only part of what people need to have a lasting impact. They also need training and support.

CONTENTS

Trustees’ Annual Report	1
• Agriculture/rural financing	3
• Livelihoods/economic development	5
• Education	7
• Youth	8
• Digital Financial Services	10
• Water, sanitation and hygiene (WASH)	10
Independent Auditor’s Report	18
Charity Statement of Financial Activities 2020	22
Charity Statement of Financial Activities 2019	23
Consolidated Statement of Financial Activities 2020	24
Consolidated Statement of Financial Activities 2019	25
Charity Balance Sheet	26
Consolidated Balance Sheet	27
Consolidated statement of cash flows 2020	28
Consolidated statement of cash flows 2019	29
Notes to the Financial Statements	30-47

Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

The trustees of Opportunity International United Kingdom (hereafter “Opportunity International” or the “Charity”, registered company number 05322719 , registered charity number 1107713 and SC039692 ), who are also the directors and members for the purposes of company law, present their report and financial statements for the year ended 31 December 2020.

Reference and administration

Principal and registered office

Opportunity International United Kingdom Angel Court 81 St Clements Oxford OX4 1AW

Bankers

Auditor

Barclays Bank Plc Mazars LLP Oxford Corporate Banking The Pinnacle Wytham Court 160 Midsummer Boulevard 11 West Way, Botley Milton Keynes Oxford OX2 0JB MK9 1FF

Trustees

The trustees of the Charity who served from 1 January 2020 to the date of this report were as follows:

Clifford Hampton (Chairman) John Ford (Treasurer) Robert Goldspink Roger Witcomb Anne Grim

Michael Crofton-Briggs

Ireti Samuel Ogbu (resigned 22 September 2020)

Hywel Rees-Jones

Jane Jerrard

James Copestake (appointed 22 September 2020) Tineyi Mawocha (appointed 22 September 2020)

Senior staff

Chief Executive Officer: Sam Bickersteth International Programmes Director: Sally Vicaria Special Adviser to the CEO and Director of Projects: Deborah Foy Finance Director: Shabnam Zamurd Director of Philanthropy: Matthew Wenham

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

Objectives and activities

Our vision is a world in which all people have the opportunity to achieve a life free from poverty, with dignity and purpose.

The Charity’s primary aim is to facilitate the provision of microfinance services to people living in poverty around the world, helping them to work their way out of poverty. By providing financial solutions and training, we empower people to transform their lives, their children’s futures and their communities. They are our ultimate beneficiaries and we refer to them as ‘clients’.

We are motivated by our Christian faith and we work with clients regardless of their race, ethnicity, gender or religious affiliation. Six core values guide the way we work: commitment; humility; respect; integrity; stewardship; and transformation.

We deliver our work through creating partnerships on the ground, with socially driven microfinance organisations, NGOs and other relevant organisations.

The trustees confirm that they have referred to and given due consideration to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and planning activities. Most of our projects are in sub-Saharan Africa. By focusing on this area our aim is to achieve quality and depth in our activities rather than geographical spread. We have focused our efforts on a small number of key partnerships based in Ghana, Uganda, DRC, and Rwanda.

The trustees believe that this approach has allowed the Charity to have greater impact whilst deploying resources cost effectively, with greater governance, monitoring and control, and thereby meeting the public benefit requirement.

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

Our expenditure on fundraising and governance costs was 11% during 2020, with 89% of income spent on alleviating poverty in line with our charitable purpose.

Highlights of our Programme Activities for the Year:

I. AGRICULTURE/RURAL FINANCING

Scottish Government - Strengthening Livelihoods in Rural Rwanda

In October 2017 OIUK launched a four year, £1.6 million project, with £1.2 million provided by the Scottish Government to strengthen the livelihoods of 12,000 poor, rural households in Southern and Western Rwanda. Working through local partner, Urwego Bank, the project aims to disburse loans to 8,500 smallholder farmers (50% women) and 3,500 micro-entrepreneurs (75% women). Access to secure savings will help rural households to build assets and smooth consumption and the introduction of an Agent Banking network will increase the proximity of banking services to rural clients. It is hoped that by the end of the project, 17,000 jobs will be created or sustained and 48,000

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

family members will benefit from better access to nutrition, housing, education and healthcare.

Despite restrictions due to the Covid-19 pandemic, lending activity to smallholder farmers and micro-entrepreneurs continued in 2020, and to date, 8,506 smallholder farmers and 1,879 micro-entrepreneurs (71% women) have received loans and over 8,000 savings accounts have been opened. Over the course of the project, participants have been trained in financial literacy, business skills and Good Agricultural Practices (GAP). Urwego Bank is introducing mobile banking to increase the proximity of banking services to rural clients. 71 rural banking agents have been trained to offer community-banking services and at mid-line 60% of clients reported actively using mobile banking.

A parallel Youth Savings and Loans Associations project is advancing, with the creation of 200 groups in the Western and Southern Provinces. Out of these, 50 will eventually be selected to access formal financial services from Urwego.

FCDO UKAID Match – Increasing the Economic Empowerment of Women in Ghana and the Democratic Republic of Congo (DRC) through Rural Financing

In 2017, OIUK was awarded a fifth UKAID Match grant and the subsequent public fundraising appeal generated £3.6 million of project funds. The aim of the project, which runs from October 2018 to September 2021, is to increase the economic participation of 12,000 rural women in some of the poorest areas of Ghana and the DRC in order to raise incomes and build resilience to shocks. Activities are being delivered via three financial institutions Sinapi Aba Savings and Loans (SASL) and Opportunity International Savings and Loans (OISL) in Ghana and VisionFund DRC.

In the initial stages of the project, all three financial institutions participated in gender mainstreaming activities to strengthen their ability to target and serve women clients e.g. at SASL a gender policy was developed and approved by the board, Gender Champions were identified at each branch, a gender education manual was developed and gender training was cascaded to staff throughout the institution. As a result of their efforts, in 2020 SASL won ‘Best Bank for Women Entrepreneurs’ at The International Finance Corporation’s Global SME Finance Awards.

The project has continued to achieve positive results despite the challenges of the global pandemic. As of December 2020, 6,520 rural women (81% of target) had received loans to build their farms and businesses, 8,496 had opened savings accounts (71% of target), and almost 3,000 received IVR/SMS messaging on market prices and agricultural practices. As a result of access to inputs and GAP training 85% of women reported increased yields across all crops. In the DRC VisionFund is piloting digital banking solutions, by training and equipping field officers with smartphones and motorbikes to deliver financial services to isolated rural communities. A mobile banking marketing campaign will increase awareness of the service, and peer-to-peer coaching will help to increase uptake amongst rural populations.

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

Private Donors – Coffee Value Chain Loan Guarantee Fund in Uganda

Building on 10 years’ experience in the Ugandan coffee sector, in 2019 Opportunity’s Agriculture Finance Team sought funding to establish a Loan Guarantee Fund at Opportunity Bank of Uganda Limited (OBUL) to increase outreach to smallholder coffee farmers and to strengthen the coffee value chain. £38,000 was raised from private donors to establish the Loan Guarantee Fund. The fund covers 50% of the collateral requirement for Coffee Depot Committees (groups of farmers) against their line of credit from the bank. Depot Committees can access loans of between 20 to 30 million UGX (around GBP £4,000-£6,000) over 60 days, which they use to bulk purchase coffee from the farmers. The fund revolves at around 6 cycles per year, pending repayments. This has the potential to unlock capital of around £300,000 against the initial £38,000 Loan Guarantee Fund.

OBUL is currently working with 22 Depot Committees, each representing between 500 to 1,000 smallholder coffee farmers. The Loan Guarantee Facility was established in June 2019 and the first loan was made in September 2019. To date, 15 loans have been made to seven Depot Committees totalling 449 million UGX (around GBP £70,000).

II. LIVELIHOODS/ECONOMIC DEVELOPMENT

Swiss Capacity Building Facility (SCBF), and Private Donor funding – Refugee Innovation, Self-Reliance and Empowerment programme (RISE), Uganda

Since 2016, Uganda has seen a significant influx of refugees from neighbouring countries, particularly South Sudan, the DRC and Burundi, largely as a result of conflict and/or famine. The Ugandan Government’s open-door refugee policy is one of the most progressive in the world. Refugees have the right to move freely, access land, own property, work and integrate into society. Despite this, they face many challenges on arrival and once their basic needs for security, food and shelter have been met, they need support to establish viable livelihoods and generate income.

Building on our longstanding experience of serving rural communities in Uganda, Opportunity is ideally placed to help refugees access financial services and move from a place of dependency to one of self-reliance. As such, in 2019 OIUK launched its Refugee Innovation, Self-Reliance and Empowerment(RISE) initiative to support financial inclusion and livelihoods development for refugees in three settlements in Uganda. OIUK received confirmation of a grant from DFID in late 2019, however due to Government restructuring and cuts to UK Aid, the funding has been cut. As a result of this and restrictions caused by the global Covid-19 pandemic progress has been slower than planned.

For over a year now, OI has been using Financial Diaries to gather information on refugees’ financial behaviours, which has provided useful insight on how Covid-19 is

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

affecting life in the settlements. The pandemic has understandably had an impact on refugees’ income and livelihoods, and during the lockdown, the greatest concerns were around price increases, market access and access to general medical care.

To date 3,535 people have participated in financial literacy training, 1,042 individual and 79 group savings accounts had been opened, 207 loans disbursed and 207 jobs created. OBUL has also piloted digital cash transfers with 205 refugees and is continuing to test and improve delivery of the service. OBUL has been granted permission to build a satellite branch in Nakivale settlement, which will help the bank to become more visible to refugees and give them the confidence to open accounts. The branch is due to open Q3 2021.

The National Lottery Community Fund - Financial Inclusion for People with Disabilities in Uganda

In 2019, OIUK received a grant of £394,883 from the National Lottery Community Fund to facilitate financial inclusion for people living with disabilities (PWD) in Uganda. OIUK has committed to raising £361,256 in matched funding to bring the total project budget to £756,138. Over a three-year period (2019-2022), the project aims to improve the livelihoods and resilience of 3,700 people with disabilities, their caregivers and family members. Staff at OIUK and Opportunity Bank of Uganda Limited (OBUL) will receive training in disability awareness and it is expected that 3,700 saving accounts will be opened, and 1,850 loans (average loan size £120) will be disbursed for business activities.

A disability awareness-training manual has been developed for bank staff, and safeguarding training sessions have been held with staff at six branches. As of December 2020, the project had reached 7,404 group members including people living with disabilities, caregivers, parents of children with disabilities and well-wishers in the community. 3,295 persons with disabilities have accessed financial literacy training to boost their skills and knowledge. 228 PWD groups have opened savings accounts at OBUL and deposited their savings. 569 persons with disabilities have opened individual savings accounts and have saved 23,621,525 UGX (around £4,625). 41,550,000 UGX (around £8,136) has been disbursed to persons with disabilities for business and income generating activities.

Based on the result of the project, OBUL has integrated PWDs as a target segment in its strategy from 2021-2025. The HR policy now includes a section on discrimination with particular reference to PWDs and all job adverts refer to equality and diversity as standard in hiring practices. Future rebranding of OBUL, led by the marketing team, will ensure that all signage is PWD ‘friendly’, for those that may have visual or hearing impairments.

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

III. EDUCATION

DFID Girls Education Challenge Fund, Empowering Girls Education in Uganda

In 2017, OIUK was awarded a second Girls Education Challenge (GEC) Fund grant by DFID (now FCDO). The £2.5 million project ran from May 2017 to April 2020 with the aim of helping vulnerable girls in Uganda to transition through key stages of their schooling to complete a full cycle of education. To deliver the project OIUK worked in consortium with six other organisations to deliver the project under the banner ‘Empowering Girls Education.’

Over the course of the project OIUK and partners enhanced education quality for 48,000 pupils in 132 schools in 29 districts in Eastern, Central and Western Uganda. 38 school clusters were formed providing over 5,000 teachers with training, curriculum development and mentoring support from Opportunity’s Educational Specialists. 90 classrooms were constructed or renovated as a result of school improvement loans. Pupil retention and progression improved through the provision of 5,284 school fee loans, 362 bursaries and by establishing income-generating activities with 90 vulnerable households to prevent girls from dropping out of school. 10,432 children boosted their self-esteem by attending extra-curricular clubs where they learnt financial literacy, sexual reproductive health and rights (SRHR), good citizenship, entrepreneurial and other life skills. Saving sessions were conducted in all 132 schools, and a total of UGX 28,002,300 (approx. £5,773) was saved by club members. Savings were used to buy educational materials (e.g. shoes, books, uniform, pens) and to start-up family enterprises at home (e.g. poultry farming). Alumni networks were set up in 92 schools. Old boys and girls engaged club members in activities such as SRH, career guidance, child protection, menstruation hygiene and management and testimony sharing sessions. The Fund Manager awarded OIUK A+ for aspects of the project and noted that the partners worked hard to engage with district officials for the continuation of activities after the project ended.

Anonymous Donor – Pathways to Whole School Development in Uganda

Pathways to Whole School Development was an 18-month project in partnership with OI EduFinance, The Private Education Development Network (PEDN) and Aflatoun International. The Education Quality programme was implemented across 35 secondary schools in 10 districts of Uganda reaching 2,450 youth, and 70 teachers.

School leaders attended sessions on professional development training covering topics including school governance and leadership, staff development, teaching standards and cost management. Teachers and school leaders joined learning clusters and received regular training on teaching fundamentals including, classroom management, learning styles, and modern pedagogies. Schools were equipped to deliver a social and emotional learning (SEAL) curriculum to empower young people with the skills to improve their self-awareness, social awareness, decision-making, and relationships skills.

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

EduFinance Technical Assistance Facility and EduQuality, Pakistan

In 2019, OIUK injected £85,000 funding into EduFinance to launch the EduQuality programme in Pakistan. The EduFinance Technical Assistance Facility (ETAF) completed its first intervention of technical assistance with two Financial Institutions, AGAHE in Punjab and SAFCO in Sindh. The technical assistance work consisted of:

• preparing a market research report based on survey responses from 160 school owners in Punjab and Sindh,

• identifying and finalising the terms of School Improvement Loan products designed for low cost private schools,

• conducting trainings for head office staff, branch managers and loan officers. Following the technical assistance, the Education Quality programme is now working with four financial institutions in Pakistan in collaboration with Pakistan Microfinance Investment Company (PMIC) and Kashf Foundation, and plans to expand further.

A study on the impact of the global Covid-19 pandemic on education in Pakistan was conducted by Opportunity EduFinance and found that 63% of parents taking part in the study were not planning to send their daughters back to school when they reopened, compared to 94% of parents reporting that they would send their sons back to school as soon as they reopened. This finding highlights the necessity of continuing to engage with communities, parents and schools on the importance of girls’ education.

With increased funding from OIAUS and potentially, external sources EduFinance will focus on five outcomes in the next two years:

1. Increased availability of appropriate financial products tailored to education institutions in Pakistan (six financial institution partners; 1.5k schools lent to).

2. Increased use of financing by parents to enhance access to education (29.7k school-fee loans; 92.2k children financed).

3. Improved school management practices (150 leaders trained; 105 school development plans submitted).

4. Improved classroom and teaching practices (450 teacher mentors trained from 150 schools).

5. Improved quality of school environment (60% of Schools increasing school quality reported through Pathways to Excellence self-assessments annually).

IV. YOUTH

Swiss Capacity Building Facility (SCBF) – Empowering Youth in Rural Uganda

Youth un/underemployment is one of the biggest challenges currently facing Africa. 78% of the Ugandan population is under the age of 31 and while about 700,000 youths reach working age every year in Uganda, only 75,000 jobs are created. In 2019, OIUK launched

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

its Youth Strategy and developed a pilot project supporting rural youth in Uganda. Over two years (January 2020 – April 2022) OIUK is partnering with OBUL, Teach a Man To Fish (TAMTF), MicroSave and Opportunity International Agricultural Finance Team (AgFin) to improve the economic situation of 6,000 rural youth (average age 24) via the provision of financial services, training in good agricultural practices, improved entrepreneurship and financial management.

The project is working with members of 200 Youth Farmer Field Schools (YFFS) formed by Hanns R. Neumann Stiftung through their TEAM UP programme. Financial literacy modules have been adapted to the needs of rural youth and facilitators are being recruited and trained to deliver the curriculum. MicroSave is supporting OBUL to develop two youth products, one savings, one credit, which will be rolled out across their portfolio. By the close of December 2020 25 YFFS groups had set up savings accounts and OBUL has recruited a mobile banking agent to serve Mityana district to make account opening and depositing easier. A feature of the youth savings product is a savings contribution, which is triggered when a savings milestone is achieved. A youth loan product has also been developed with disbursements so far to seven individuals and one group loan.

CarVal Investors Foundation and Allan & Nesta Ferguson Charitable Trust – Kayayei Project, Ghana

In Ghana’s capital city, Accra girls and young women are living and working on the streets, carrying heavy loads on their heads in market places for small sums of money: they are called Kayayei, or head porters. They have often migrated from the Northern Region searching for jobs, but lack education meaning that their livelihood options are limited. They usually end up living in slum areas, which, coupled by the fact that they are living away from their home communities, increases their vulnerability. According to the Ghana Kayayei Association there are approximately 20,000 Kayayei living and working in the capital city, Accra.

CarVal Investors Foundation and Allan & Nesta Ferguson Charitable Trust provided funding to support at least 70 Kayayei through vocational skills training, financial literacy, sexual and reproductive health training and other life skills training. The programme is run by OISL in partnership with Marie Stopes International, Kayayei Youth Association, GHACOE Women’s Ministry and the Women Action Group Training Centre in Accra.

98 girls and young women participated in the programme gaining vocational skills such as baking, bead making and soap making, and receiving training in business skills and financial literacy. They also received instruction on lifestyle issues such as, menstrual management, sexual reproductive health and planned parenthood. All 98 participants graduated and received start-up kits for their chosen business, 64 opened savings accounts, and 17 received a subsidised loan to start a business. Following the training 44 young women returned home to their families in Northern Ghana.

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

V. DIGITAL FINANCIAL SERVICES (DFS)

Swiss Capacity Building Facility – Urwego Bank (UB) Mobile-Agent Banking Application Upgrade, Rwanda

In 2020, OIUK was awarded a 161,245 CHF (£110,000) grant from the Swiss Capacity Building Facility to upgrade Urwego Bank’s Mobile-Agent Banking Application. The development of digital delivery channels will enable UB to reach more marginalised clients in rural areas where it is not feasible to build a branch. Existing and potential clients will benefit from local access to financial services, and will make significant savings in the time and cost of traveling to a bank branch.

UB will expand its Agent Banking network who will be primarily be located in peri-urban and rural areas where conventional banking services are not widely available. Agents will be hired from the local area and will be specifically trained to serve UB’s low income, predominately-female clients.

A Smartphone App. will be developed to provide additional functionality to the current platform. UB Agents and Field Staff equipped with smartphones will provide services such as account opening, cash in/out and loan application/approvals. Urwego is planning to target youth with a new smart phone deposit product in 2021 to grow deposits and increase outreach to this under-banked population. Agents will also use the mobile App. on a smartphone, tablet or POS device to operate as a mini-branch. They will be able to perform the functions of a branch teller from a remote location.

UB is aiming to serve 50,000 active mobile money users (60% women) by April 2022, with 80% of total transactions performed through digital channels.

VI. WATER, SANITATION and HYGIENE (WASH)

Private Donor – Access to Finance for WASH Small Medium Enterprises in Ghana

In 2018, Opportunity received a grant from a private foundation to provide access to finance for WASH businesses in Ghana. Sinapi Aba has continued to expand its WASH loan book in Accra, Kumasi, Brong Ahafo and the Eastern Region. In early 2020, Sinapi Aba conducted a business review of its three key WASH sectors - public latrine operators, sachet water and water suppliers - to understand the challenges WASH businesses face, their main reasons for taking on loans and key stakeholders they need to engage with to be successful.

In February 2020, Sinapi Aba hosted a WASH conference in Accra, Ghana to share learnings and challenges around financing WASH businesses with other banks, microfinance institutions, WASH organisations and NGOs. The programme outlined the need for private WASH financing, the financing gaps for WASH businesses, and reviewed WASH needs from the perspective of clients and Sinapi Aba.

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

From 1 January until 31 October 2020, 101 WASH SME loans were disbursed. The global Covid-19 pandemic affected loan disbursals in March and April; however, loans resumed in May on a reduced basis while the impact of Covid-19 and market/business resilience was reviewed. Since the project began 355, WASH SME loans have been disbursed, with a value of £1.7 million, reaching an estimated 1.5 million end users.

During the pandemic, Sinapi Aba took the time to pivot their loan portfolio to address the needs of WASH businesses and meet demand for hygiene and sanitation supplies. The emphasis now is on supporting long-term sustainable businesses that have a large social impact. Through local partnerships, for instance with the Safe Water Network, thousands of households can now afford to access clean water direct to their houses.

To support the pandemic response, Sinapi Aba hosted 10 radio talk shows and expert panel discussions on WASH and Covid-19 related health topics reaching approximately 400,000 people in Accra and Kumasi. In addition, WASH and Covid-19 behavioural hygiene promotion content was developed, disseminated distributed to radio stations and information centres in Accra, Kumasi and Tamale reaching approximately 930,000 people.

Fundraising and Governance

Our work at Opportunity International is only possible through the generosity of our donors. In keeping with our core values of respect, integrity and stewardship, we are committed to maintaining the highest possible standards in fundraising and relationships with our supporters. In August 2019, we registered with the Fundraising Regulator and are committed to the Fundraising Promise and adherence to the Code of Fundraising Practice. We have safeguards in place when working with suppliers, i.e. our mailing house, to protect our supporters and the reputation of our charity. We also action any opt out requests received through the Fundraising Preference Service.

Income during 2020 was £2.6m. Approximately two thirds of this came from statutory funding and foundations. 19% was secured from major donor fundraising with opportunities to meet with our supporters face to face and through events severely curtailed by the COVID 19 restrictions. However, other fundraising activities including individual giving via email and postal campaigns, payroll giving and gifts in wills remained largely unaffected. All of our fundraising efforts are undertaken by our in-house Philanthropy Team, our Chief Executive and our Board of Trustees. We do not retain professional fundraisers, outside suppliers or volunteers for fundraising purposes.

Information on our complaints policy is available through our website, which clearly details how the public can make a complaint. All complaints are dealt with in-line with our policy and responded to within five working days of receipt. We report to the Fundraising Regulator on the totality of our complaints.

We did not receive any complaints in relation to our fundraising activities during 2020.

In addition to our complaints policy our safeguarding policy takes account of duty of care to donors with emphasis on procedures to protect vulnerable people. Our fundraisers

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

have been trained in safeguarding and are familiar with the policy and its application to fundraising activities.

Significant activities of OMIL

During the year Opportunity International made grants of £317,299 (2019: £100,000) to its wholly owned social investment vehicle, Opportunity Microfinance Investments Limited (hereafter OMIL). This was invested in Sinapi Aba Savings and Loans Limited (SASL) and OISL.

Charity results for the year

The trustees are pleased with the results of 2020, as the income from our supporters and our reserves allowed us to fund many different projects, despite the impact of COVID-19. We sustained our charitable expenditure at close to 90% (2019: 90%) of total expenditure.

Group results for the year

The Charity may retain an interest in the programmes it funds by taking a shareholding in the receiving institution. These programme investments help the Charity to improve its ongoing oversight but also have the effect of forming a financial group. The Group is a consolidation of the Charity’s finances and the additional net income, attributable to the group, by virtue of its shareholdings. The Consolidated Statement of Financial Activities and Consolidated Balance Sheet describe the Group that is formed.

Group results have changed as follows when compared to last year:

• Income has decreased from £4.8 million to £2.9 million;

• Net assets have decreased by just over £300k; and

• Results for the year reflect a deficit of just over £300k.

Investments

All investments held by Opportunity International have been acquired in accordance with the powers available to the trustees. Cash surplus to immediate requirements is deposited in high interest accounts operated by the Charities Aid Foundation, Scottish Widows and CCLA Investment Management Limited.

Shares are purchased in OIN Implementing Members in order to achieve charitable objects rather than with the aim of generating income or the best investment return. As such, investments are classed as programme investments. Implementing Members are faced with difficult economic and political conditions, and it is challenging to appoint and retain senior management in these organisations, hence the Charity is unable to guarantee the economic value of such investments. No dividends are payable on these investments and, if this changed in the future, the proceeds would be reinvested into the institution in service of the poor clients.

Governing document

Opportunity International is a charitable company limited by guarantee and is governed by its Memorandum and Articles of Association.

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

Organisational structure

The Board of Trustees, currently consisting of ten members, administers the Charity. The Board of Trustees meets at least quarterly. Additionally, the trustees have formed a Finance and Audit committee and a board development committee.

The Finance and Audit committee reviews detailed budgets, the risk register, staff remuneration, and it reviews matters pertaining to external and internal audits. The board development committee reviews the performance and composition of the board.

A Chief Executive is appointed by the trustees to manage the day-to-day operations of the Charity. The pay for all staff is compared to the market for similar charities in size and location, as well as individual performance. The senior leadership team remuneration is set and annually reviewed by the Finance and Audit Committee.

Appointment of Trustees

As set out in the Articles of Association, the trustees nominate the Chairman and Treasurer.

The Board of Trustees consists of at least five and no more than 15 individuals, all of whom are the members of Opportunity International and directors for purposes of company law.

One third (or the number nearest one third) of the trustees retire at each AGM, those longest in office retiring first and the choice between any of equal service being made by drawing lots. However, a retiring trustee who remains qualified may be reappointed for a maximum of two consecutive terms of office.

Trustees’ remuneration

No trustees receive remuneration.

Trustees’ indemnity provision

The Charity has taken out indemnity insurance, on behalf of the trustees.

Appointment, induction and training of trustees

Potential new trustees are reviewed by the board development committee and may then subsequently be asked to attend a Board of Trustees’ meeting where they meet trustees and key staff of Opportunity International. At the following trustees’ meeting, the potential new trustee is invited to join the board and providing that all trustees agree the individual becomes a new trustee.

The new trustee’s induction is made by the Chairman and Chief Executive of Opportunity International at a further meeting where the new trustee is introduced to his or her legal obligations, the content of the Memorandum and Articles of Association, the committee and decision making process, the strategy and the recent financial performance.

Relationship with other organisations

Opportunity International is a member of the Opportunity International Network (OIN), a global association of Christian organisations dedicated to providing opportunities for people in poverty to allow them to transform their lives.

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

Opportunity International is one of five Support Members (others are in Australia, Canada, Germany and the United States of America) who work with partners and programmes located in Africa, Asia, Eastern Europe and Latin America.

Reserves policy

Opportunity International UK (OIUK) is an international development Charity. Our aim is to use business solutions and financial inclusion to help lift the economically active poor out of poverty so that they can help build sustainable and stable communities. The intention is for them to continue to stay out of poverty by focusing on their children’s education as well as their health and sanitation needs. Whilst other charities deal with failure of a market, or a disaster, at OIUK we work with the determined poor who have the drive to succeed in the most appalling circumstances so that donor support can last for generations. Additionally, we are pioneering new ways of working and finding new financial solutions to deal with oncoming challenges. For example, the anticipated doubling of the youth population in Africa so that we can be at the forefront improving their prospects and averting a future refugee crisis.

Our funding sources vary from three-year FCDO programmes to one off gifts from our private donors. Much of our funding is for one year only. This is why we need to ensure we have the available reserves to be able to continue to employ the staff to see agreed programmes to completion.

Many of our programmes require match funding. This means that we would secure a grant to complete a programme but then be required to fund the remaining work from other donors or from our unrestricted reserves for the match funding requirements of these critical programmes. We will designate this amount, as our ability to raise the match element is uncertain; currently over 2021-2022 we have a £2m match-funding requirement.

In addition to match funding some of our donors require us to send funds up-front. Internally we refer to this as pre-funding of programmes. This allows the partner to carry out the project activities, report back to us, we then claim the funds from, for example, FCDO, who then pay us in arrears and within 45 days of a claim. Therefore, we require unrestricted cash to enable us to pre-fund our programmes. Hence, one of our restricted reserves is in deficit again this year. Our group-restricted reserves totalled £3.8m.

OIUK is affiliated to like-minded charitable organisations operating in the US, Australia, Germany and Canada. A central secretariat has been established to provide key services, and we usually need to fund our agreed share of the costs from our unrestricted reserves. We also need to help cover our share of other global programming costs, which help us fulfil our charitable objects.

Finally, we want to be good stewards of donors’ funds and to continue to provide funding for the poor into the future. Reserves mitigate risks such as a downturn in OIUK’s various sources of income or an unforeseen increase in costs. Some of our funders cap their contribution at 4%, which means that we need to raise additional unrestricted income from other donors to compensate for this and enable us to continue to function effectively for the longer term.

At OIUK, we consider the minimum level of reserves to secure the future of our charity is six months of operating costs cover (£600k). Reserves to cover cash flow support and

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

match funding varies from year to year. Currently, we require a further £200,000 for cash flow support and £1m to £2m for the match funding and pre-funding components of our current programmes. Our current reserves (£2.8m) are sufficient for these requirements (given that we are forecasting budget deficits until 2023, following the cuts to FCDO projects and the reduction in income from our high value donors).

Risk management

The trustees have a risk management strategy which comprises an annual review of the risks the Charity may face, the establishment of systems and procedures to mitigate those risks, and the implementation of procedures designed to minimise any potential impact on the Charity should those risks materialise. The key identified risks are detailed below:

Identified risk	Risk mitigation measures
Reduction in fundraising income due the	The Charity will be relying on unrestricted
impact of COVID-19 on private donors	reserves to mitigate this risk and aims to
	return to breakeven as soon as possible.
Over commitment of funds and inability to	The Charity is relying on unrestricted
raise a match requirement	reserves to mitigate this risk.
Impact of the merger of DFID and the	The trustees will be reviewing the
Foreign & Commonwealth Office (FCDO)	fundraising targets and alternative sources
	of income.
Safeguarding risk	All staff and trustees have been trained,
	DBS checks are done for all staff and
	procedures were put in place for projects.
Loss of key personnel	Raisers Edge donor database and Box.com
	are kept up to date.

Donations

During the year, the Group made no political donations (2019: £nil).

Impact of Brexit

OIUK does not fund any implementation partners in Europe. OIUK does not currently have funding from EU countries although; it has received funding from European sources in the past. To mitigate loss of future opportunities and to open new areas of funding an office of OIUK has been registered in the Netherlands.

Statement of trustees’ responsibilities

United Kingdom Company Law applicable to incorporated charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charitable company and group’s activities during the year, of the surplus or deficit of the charitable company and group for that year and of its financial position at the year end. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

15

Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

• select suitable accounting policies and apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements;

• Prepare financial statements on a going concern basis unless it is inappropriate to assume that the charitable company and group will continue in operation.

The trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy the financial position of the charitable company and group and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. So far as the trustees are aware:

• there is no relevant audit information of which Opportunity International's auditors are unaware; and

• they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that Opportunity International's auditors are aware of that information and that they have made such enquiries of fellow trustees and of Opportunity International's auditors for that purpose and taken such other steps (if any) for that purpose, as were required by their duty as trustees of Opportunity International to exercise due care, skill and diligence.

Post balance sheet event

Following the year-end, a further 2.5% shareholding was gifted to OMIL in Opportunity Bank Uganda Limited (OBUL) taking the total to 4% shares.

Plans for future periods

Our 2021-25 strategy aims to provide 1.5 million poor people with access to financial services, loans, saving, insurance and training. We aim to raise £15 million to deliver our core programmes of enterprise, agriculture and education to reach people currently excluded from financial services. We believe that addressing financial inclusion and giving people choice through access to secure savings and fair loans, provides sustainable routes out of poverty. Our determination is to give a hand up through access to finance and skills, not a hand out; working with microfinance institutions and banks, we are leveraging private and public resources for some of the poorest people in the world to improve incomes and create wealth.

Our market-based approach develops solutions for those who have not yet been able to benefit from economic growth. Hence our focus on youth employment and business creation, on people living with a disability and on refugees. Women and girls are prioritised because they are invariably the most marginalised. We will remain targeted on sub-Saharan Africa as the region of greatest need and on rural areas where poverty is entrenched. We will sustain our focus on smallholder farmers and micro-enterprises most of whom work within the informal sector of the economy. Our concern is also for

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Opportunity International United Kingdom Trustees’ annual report, year ended 31 December 2020

future generations and hence we are working to increase access to and quality of education through our education finance programme and our innovative approach to supporting low cost private schools our strategic priorities are focussed on enterprise, agriculture and education and we will:

• Provide access to tailored financial products, savings and loans.

• Provide people in poverty with business and financial training to strengthen their businesses and develop their community’s services.

• Create innovative partnerships to provide complementary services to our clients.

• Strengthen and influence value chains to benefit our clients, connect them to viable markets and drive economic progress.

The COVID-19 pandemic has confirmed that digital access to financial services (along with other economic, health and related information) is key to resilience for people of all income groups. Our programme strategy will place digital at the heart of all that we do to unlock the potential to grow businesses and improve lives.

In preparing this report, the trustees have taken exemption of the small companies exemptions provided by section 416A of the Companies Act 2006.

Approved by the Board of Trustees and signed on behalf of the Board

Clifford Hampton (Chairman) 17 June 2021

17

Independent auditor’s report to the members of Opportunity International United Kingdom Year ended 31 December 2020

Opinion

We have audited the financial statements of Opportunity International United Kingdom (the ‘parent charity’) and its subsidiary (the ‘group’) for the year ended 31 December 2020 which comprise the Charity Statement of Financial Activities, Consolidated Statement of Financial Activities, the Charity Balance Sheet, the Consolidated Balance Sheet, the Consolidated Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the group and of the parent charity’s affairs as at 31 December 2020 and of the group’s income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity and group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or the parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

18

Independent auditor’s report to the members of Opportunity International United Kingdom Year ended 31 December 2020

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees’ Report which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

• adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charity financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specific by law are not made; or

• we have not received all the information and explanations we require for our audit.

• the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption in preparing the Report of the Trustees and from the requirement to prepare a Strategic Report.

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

19

Independent auditor’s report to the members of Opportunity International United Kingdom Year ended 31 December 2020

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, the Charities Statement of Recommended Practice UK, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and Charities Accounts (Scotland) Regulations 2006.

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including noncompliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

• Discussing with the trustees and management their policies and procedures regarding compliance with laws and regulations;

• Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and

• Considering the risk of acts by the charity, which were contrary to applicable laws and regulations, including fraud.

Our audit procedures in relation to fraud included but were not limited to:

• Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;

• Gaining an understanding of the internal controls established to mitigate risks related to fraud;

• Discussing amongst the engagement team the risks of fraud; and

• Addressing the risks of fraud through management override of controls by performing journal entry testing.

20

Independent auditor’s report to the members of Opportunity International United Kingdom Year ended 31 December 2020

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit report

This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body for our audit work, for this report, or for the opinions, we have formed.

Vincent Marke (Jun 17, 2021 19:49 GMT+1)

Vincent Marke (Senior Statutory Auditor)

for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

The Pinnacle 160 Midsummer Boulevard Milton Keynes MK9 1FF

Date: Jun 17, 2021

21

Opportunity International United Kingdom

Charity Statement of Financial Activities (Including income and expenditure account) Year ended 31 December 2020

Note Income from: Voluntary income 2 Investment and other income 3 Total income Expenditure on: Cost of generating funds 4 Charitable activities 4, 5 Total expenditure Net movement in funds Funds brought forward Funds carried forward 15	Unrestricted funds £ 666,370 43,526 709,896 (384,935) (676,430) (1,061,365) (351,469) 2,585,829 2,234,360	Restricted funds £ Total funds year ended 31 December 2020 £ Total funds year ended 31 December 2019 £ 1,888,509 2,554,879 4,765,749 - 43,526 15,748 1,888,509 2,598,405 4,781,497 - (384,935) (404,639) (2,379,570) (3,056,000) (3,708,490) (2,379,570) (3,440,935) (4,113,129) (491,061) (842,530) 668,368 2,052,923 4,638,752 3,970,384 1,561,862 3,796,222 4,638,752

The notes on pages 30 to 47 form part of these financial statements. All results are derived from continuing operations.

There are no recognised gains or losses other than those passing through the statement of financial activities.

22

Opportunity International United Kingdom

Charity Statement of Financial Activities (Including income and expenditure account) Year ended 31 December 2020

Comparative Charity Statement of Financial Activities

(Including income and expenditure account) Year ended 31 December 2019

Income from: Voluntary income Investment income Total income Expenditure on: Cost of generating funds Charitable activities Total expenditure Net movement in funds Funds brought forward Funds carried forward	Unrestricted and Designated funds £ 968,759 15,748 984,507 (404,639) (813,995) (1,218,634) (234,127) 2,819,956 2,585,829	Restricted funds £ Total funds year ended 31 December 2019 £ Total funds year ended 31 December 2018 £ 3,796,990 4,765,749 6,691,433 - 15,748 28,900 3,796,990 4,781,497 6,720,333 - (404,639) (442,274) (2,894,495) (3,708,490) (5,373,466) (2,894,495) (4,113,129) (5,815,740) 902,495 668,368 904,593 1,150,428 3,970,384 3,065,791 2,052,923 4,638,752 3,970,384

23

Opportunity International United Kingdom

Consolidated Statement of Financial Activities (Including income and expenditure account) Year ended 31 December 2020

Income from: Note Voluntary income 2 Investment and other income 3 Total income Expenditure on: Cost of generating funds 4 Charitable activities 4, 5 Total expenditure Net (outgoing)/incoming funds Exchange loss on convertible loans 10 Net movement in funds Funds brought forward Funds carried forward 16	Group Unrestricted funds £ 979,214 43,526 1,022,740 (384,935) (677,320) (1,062,255) (39,515) - (39,515) 2,816,351 2,776,836	Group Restricted funds £ Total funds year ended 31 December 2020 £ Total funds year ended 31 December 2019 £ 1,888,509 2,867,723 4,765,749 - 43,526 15,748 1,888,509 2,911,249 4,781,497 - (384,935) (404,639) (2,062,271) (2,739,591) (3,609,722) (2,062,271) (3,124,526) (4,014,361) (173,762) (213,277) 767,136 (93,403) (93,403) (377,733) (267,165) (306,680) 389,403 4,026,614 6,842,965 6,453,562 3,759,449 6,536,285 6,842,965

The notes on pages 30 to 47 form part of these financial statements. All results are derived from continuing operations.

There are no recognised gains or losses other than those passing through the statement of financial activities.

24

Opportunity International United Kingdom

Consolidated Statement of Financial Activities (Including income and expenditure account) Year ended 31 December 2020

Comparative Consolidated Statement of Financial Activities (Including income and expenditure account)

Year ended 31 December 2019

Income from: Voluntary income Investment income Total income Expenditure on: Cost of generating funds Charitable activities Total expenditure Net (outgoing)/incoming funds Exchange loss on convertible loans Net movement in funds Funds brought forward Funds carried forward	Group Unrestricted and Designated funds £ 968,759 15,748 984,507 (404,639) (815,227) (1,219,866) (235,359) - (235,359) 3,051,710 2,816,351	Group Restricted funds £ Total funds year ended 31 December 2019 £ Total funds year ended 31 December 2018 £ 3,796,990 4,765,749 6,691,433 - 15,748 28,900 3,796,990 4,781,497 6,720,333 - (404,639) (442,274) (2,794,495) (3,609,722) (4,272,792) (2,794,495) (4,014,361) (4,715,066) 1,002,495 767,136 2,005,267 (377,733) (377,733) (26,312) 624,762 389,403 1,978,955 3,401,852 6,453,562 4,474,607 4,026,614 6,842,965 6,453,562

25

Opportunity International United Kingdom

Charity Balance Sheet Year ended 31 December 2020 Company number 05322719

Note Fixed assets Tangible fixed assets 9 Current assets Debtors 11 Cash and cash equivalents 12 Liabilities: amounts falling due within one year 13 Net current assets Net assets 15 Funds Unrestricted funds 19 Restricted funds – funds in surplus 23 – funds in deficit 23	As at 31 December 2020 £ 10,513 572,103 3,958,640 4,530,743 (745,034) 3,785,709 3,796,222 2,234,360 1,722,696 (160,834) 3,796,222	As at 31 December 2019 £ 16,844 372,085 4,715,726 5,087,811 (465,903) 4,621,908 4,638,752 2,585,829 2,298,661 (245,738) 4,638,752

The notes on pages 30 to 47 form part of these financial statements.

These financial statements, which have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within the Companies Act 2006, Pt. 15, were approved and authorised for issue by the Board of Trustees on 17 June 2021.

Signed on behalf of the Board of Trustees by the Chairman.

Clifford Hampton

26

Opportunity International United Kingdom

Consolidated Balance Sheet Year ended 31 December 2020

Company number 05322719

Note Fixed assets Tangible fixed assets 9 Programme investments 10 Current assets Debtors 11 Cash and cash equivalents 12 Liabilities: amounts falling due within one year 14 Net current assets Net assets 16 Funds Unrestricted funds 19 Restricted funds – Subsidiary and investments 23 – Charity restricted funds in surplus 23 – Charity restricted funds in deficit 23	As at 31 December 2020 £ 10,513 2,197,587 2,208,100 572,103 3,958,640 4,530,743 (202,558) 4,328,185 6,536,285 2,776,836 2,197,587 1,722,696 (160,834) 6,536,285	As at 31 December 2019 £ 16,844 1,973,691 1,990,535 372,085 4,715,726 5,087,811 (235,381) 4,852,430 6,842,965 2,816,351 1,973,691 2,298,661 (245,738) 6,842,965

The notes on pages 30 to 47 form part of these financial statements.

These financial statements, which have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within the Companies Act 2006, Pt. 15, were approved and authorised for issue by the Board of Trustees on 17 June 2021.

Signed on behalf of the Board of Trustees by the Chairman.

Clifford Hampton

27

Opportunity International United Kingdom Consolidated Statement of Cash flows As at 31 December 2020

Year ended 31 December 2020 Cash flows from operating activities: (£) Net movement in funds Adjustments for: Depreciation charge Investment in convertible loans (Increase)/decrease in debtors Increase/(decrease) in creditors Interest and other income received Cash flows generated from operating activities Purchase of fixed assets Interest and other income received Cash flows generated from investing activities Exchange rate movements Net increase/(decrease) in cash Cash and cash equivalents in the beginning of the year Cash and cash equivalents at the end of the year	OIUK Unrestricted (351,469) 8,401 (200,018) (32,623) (43,526) (619,235) (2,070) 43,526 41,456 - (577,779 ) 2,431,082 1,853,302	OMIL Unrestricted 311,954 - - (200) - 311,754 - - - - 311,754 231,721 543,476	Group Restricted Funds Total funds year ended 31 December 2020 (267,165) (306,680) - 8,401 (317,299) (317,299) - (200,018) - (32,823) - (43,526) (584,464) (891,945) - (2,070) - 43,526 - 41,456 93,403 93,403 (491,061) (757,086) 2,052,923 4,715,726 1,561,862 3,958,640

28

Opportunity International United Kingdom Consolidated Statement of Cash flows As at 31 December 2020

Comparative: year ended 31 December 2019 Cash flows from operating activities: (£) Net movement in funds Adjustments for: Depreciation charge Investment in convertible loans (Increase)/decrease in debtors Increase/(decrease) in creditors Interest received Cash flows generated from operating activities Purchase of fixed assets Interest received Cash flows generated from investing activities Exchange rate movements Net increase/(decrease) in cash Cash and cash equivalents in the beginning of the year Cash and cash equivalents at the end of the year	OIUK Unrestricted (234,127) 8,031 - 280,987 58,952 (15,748) 98,095 (13,447) 15,748 2,301 - 100,396 2,330,686 2,431,082	OMIL Unrestricted (1,232) - - - - - (1,232) - - - - (1,232) 232,953 231,721	Group Restricted Funds Total funds year ended 31 December 2019 624,762 389,403 - 8,031 (100,000) (100,000) - 280,987 - 58,952 - (15,748) 524,762 621,625 - (13,447) - 15,748 - 2,301 377,733 377,733 902,495 1,001,659 1,150,428 3,714,067 2,052,923 4,715,726

29

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

1. Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) (Charities SORP FRS102) and the Companies Act 2006. The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit.

Basis of consolidation and departure from accounting standards

Consolidated accounts have been prepared in accordance with the Scottish Charities Regulation 6, requiring consolidation where consolidated gross income, after consolidated adjustments, is greater than £500,000.

The financial statements are prepared under the historical cost convention.

The Group financial statements consolidate the financial statements of Opportunity International and Group (the “Group”) comprising the Charity, its 100% owned subsidiary Opportunity Microfinance Investments Limited (OMIL) and OMIL’s investment in Opportunity International Savings and Loans Limited (OI-SL) in which it currently holds a 27% investment shareholding. OMIL was gifted 1.5% shares in OBUL during the year by its OIUS Support Member.

The accounts are prepared in GBP sterling and are rounded to the nearest whole pound.

Going concern

The financial statements have been prepared on the going concern basis, which assumes that the group and the charity will continue in existence for the foreseeable future. The Trustees are satisfied that the Group and Charity have sufficient reserves to meet liabilities as they fall due.

Income and expenditure statements

Income and expenditure statements are not presented because the Charity Statement of Financial Activities and Consolidated Statement of Financial Activities are considered to represent the activity of the Charity and the Group.

Foreign currency translation

Assets, liabilities, revenues and costs expressed in foreign currencies are translated into sterling at rates of exchange ruling on the dates when the transactions occur, except for:

• I. monetary assets and liabilities which are translated at the rate ruling at the balance sheet date other than those in (ii) below; and

• II. transactions to be settled at a contracted rate and trading transactions covered by a related or matching forward contract which are translated at those contracted rates.

Differences arising on the translation of such items are dealt with in the Charity and Consolidated Statements of Financial Activities.

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Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

1. Accounting policies (continued)

Income

Voluntary income including grants, legacies, private donations match funding institutional projects and donations are recognised where there is entitlement, certainty of receipt and the amount is measurable. Such income is only deferred when:

• the donor specifies that the grant must only be used in future accounting periods; or

• the donor has imposed conditions, which must be met before the Charity has unconditional entitlement.

Investment income is recognised on a receivable basis and other income includes the furlough grant payments that the government offered.

Expenditure

Expenditure shown in the accounts includes accruals for goods and services rendered up to the financial year-end.

Costs of generating funds mainly comprises the cost of promotional material, leaflets and inserts together with the appropriate employee costs of the staff involved in fundraising. It also includes public relations, advertising, website development, events and travel for fundraising purposes.

Charitable activities of the Charity consist of grants made to OMIL for the purpose of investing in, and making convertible loans to, the Opportunity International Network’s (OIN) Implementing Members and funds sent directly to OIN’s Implementing Members for use in the provision of microfinance services. A proportion of support costs of the Group are also included. The grants made to OMIL are eliminated on consolidation.

Governance costs include those costs incurred for the purpose of the governance of the Charity and its assets, and are primarily associated with constitutional and statutory requirements.

Support costs include central functions and have been allocated to cost categories based on the use of these resources such as staff numbers and time spent.

Operating leases

Rentals payable under an operating lease are charged against income on a straight-line basis over the period of the lease.

Pension cost

Contributions are paid into the personal pension schemes of employees and are charged to the income statement unrestricted funds as incurred. The type of pension scheme is defined contribution stakeholder personal pensions.

Taxation

Opportunity International is a charitable organisation with exemption from UK taxation on its charitable activity under section 505 of the Income and Corporation Taxes Act 1988.

31

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

1. Accounting policies (continued)

Donated services

The value of services provided by volunteers is not incorporated into these financial statements.

Programme investments

All investments are stated at cost less provision for impairment. Investments are made in the OIN Implementing Members in order to achieve Opportunity International’s charitable objects rather than with the aim of generating income or the best investment return. OIN Implementing Members are locally established organisations, providing loans, insurance and savings products for poor entrepreneurs, and undertaking all expansion projects funded by Opportunity International.

An investment is considered to be impaired if its ability to assist in the delivery of Opportunity International’s charitable objects is diminished. Given the countries in which Opportunity International operates and the nature of its charitable purposes, valuation of assets is subject to significant variation.

Significant impairments have been made to programme related investments and convertible loans in the previous years to ensure that programme investments are valued in line with the expected proceeds from the sale of investments. The programme investments continue to fulfil the charitable objects of the charity.

Fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation, with depreciation calculated on a straight-line basis over the lives described below.

Asset	Estimated useful economic life
Computer equipment	Three years
Furniture & fittings	Three years
Equipment	Three years

Assets costing less than £100 are not capitalised. Assets purchased using grant funding are fully written off in the year of purchase.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits which are readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value and have an original maturity of three months or less at acquisition.

Liabilities

These are the obligations of the Charity and Group arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.

Unrestricted funds

All income which does not have a restricted use as set out by the donor and income from investments are accounted for as unrestricted funds.

32

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

1. Accounting policies (continued)

Restricted funds

All income which has a restricted use as set out by the donor is separately accounted for as restricted funds.

Accounting estimates and judgements

In applying the accounting policies, the Trustees have made critical accounting judgements, estimates and assumptions about the carrying amount of the assets and liabilities. These estimates and assumptions are based on historical experience and are reviewed on a continual basis.

The critical accounting judgements, estimates and assumptions that have a material effect on the amounts recognised in the financial statements for both the current and next financial years are discussed below.

 Judgements

All debtors are reviewed to determine if a bad debt provision is required for each balance.

Impairment testing is carried out for all assets and investments at the year-end date where there is an indication that impairment exists. For the purposes of impairment testing, the carrying amounts of the assets are reviewed and an impairment loss is recognised where the carrying amounts exceed the asset’s recoverable amount.

 Estimates

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the assets and is recognised in the Statement of Financial Activities.

Legacy income is accrued where there is entitlement and it is measurable and probable.

An accrual for dilapidations has been provided for the building that the charity rents, as it is a listed building and the Charity is liable for the upkeep, both internally and externally.

33

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

2. Voluntary income

The sources of the grants and donations received during the year were as follows:

Unrestricted funds £ UK FCDO Aid III creating wealth in Democratic Republic of Congo. - UK FCDO Aid IV smallholder farmers in Ghana & Mozambique. - UK FCDO Aid V Increasing the economic empowerment of women in Ghana & DRC. - UK FCDO GPAF livelihoods for smallholder farmers in Rwanda. - UK FCDO GEC-T Girls Education Finance-empowerment for girls’ education, in Uganda. - Scottish Government strengthening livelihoods in rural Rwanda. - Swiss Capacity Building Facility- SCBF - Grants from trusts, foundations and non-governmental sources. - Donations. 411,181 Legacies. 255,189 Total Charity voluntary income 666,370 Sale proceeds received into OMIL 312,844 Total Group voluntary income 979,214*	Restricted funds £ Total funds year ended 31 December 2020 £ Total funds year ended 31 December 2019 £ - - 5,000 - - 5,000 863,770 863,770 1,208,946 - - 9,998 356,481 356,481 778,989 150,000 150,000 300,000 111,133 111,133 21,829 50,804 50,804 433,677 356,321 767,502 1,881,904 - 255,189 120,406 1,888,509 2,554,879 4,765,749 - 312,844 - 1,888,509 2,867,723 4,765,749	Restricted funds £ Total funds year ended 31 December 2020 £ Total funds year ended 31 December 2019 £ - - 5,000 - - 5,000 863,770 863,770 1,208,946 - - 9,998 356,481 356,481 778,989 150,000 150,000 300,000 111,133 111,133 21,829 50,804 50,804 433,677 356,321 767,502 1,881,904 - 255,189 120,406 1,888,509 2,554,879 4,765,749 - 312,844 - 1,888,509 2,867,723 4,765,749
		4,765,749 - 4,765,749

A more detailed breakdown of restricted funds is shown in note 23.

*The sale proceeds relate to investments sold over 2016 to 2019 by OIUS and funds were donated to OMIL in 2020.

34

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

3. Investment and other income

Investment income consists solely of interest from bank and deposit accounts. Other income includes the furlough grants paid by the government during 2020.

4. Analysis of expenditure

	Cost of	Charitable	Governance	Total	Total
	generating	activities	costs	funds	funds
	funds			year	year
	(unrestricted)		(unrestricted)	ended 31	ended 31
				December	December
				2020	2019
	£	£	£	£	£
Trustees’ expenses	-	-	610	610	2,982
(note 18)
(unrestricted)
Audit fees	-	-	10,731	10,731	12,641
(unrestricted)
Support costs	64,942	212,060	-	277,002	416,337
Total support costs	64,942	212,060	11,341	288,343	431,960
Costs of generating	319,993	-	-	319,993	310,198
future income
(unrestricted)
Direct charitable	-	2,832,599	-	2,832,599	3,370,971
activities
Charity total	384,935	3,044,659	11,341	3,440,935	4,113,129
expenditure
OIUK funds invested	-	(317,299)	-	(317,299)	(100,000)
by OMIL in equity
and convertible
loans (restricted)
OMIL direct charitable	-	890	-	890	1,232
activities
Group total	384,935	2,728,250	11,341	3,124,526	4,014,361
expenditure

Governance costs are part of the charitable activities in note 5.

35

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

5. Charitable activities

Charity Unrestricted funds £ Charity Restricted funds £ Africa Democratic Republic of Congo – VFDRC 38,419 135,151 Ghana – OISL & SASL/SAT 253,038 890,146 Uganda - OBUL 261,891 921,289 Tanzania- VisionFund 11,953 42,047 Rwanda - Urwego 80,763 284,111 Regional Africa 23,459 82,527 Total for Africa 669,523 2,355,271 Asia Philippines - - Pakistan 6,907 24,299 Total for Asia 6,907 24,299 Total 676,430 2,379,570	Charity total year ended 31 December 2020 £ Charity total year ended 31 December 2019 £ 173,570 60,349 1,143,184 669,113 1,183,180 1,678,494 54,000 216,340 364,874 287,048 105,986 581,132 3,024,794 3,492,476 - 170,392 31,206 45,622 31,206 216,014 3,056,000 3,708,490	Group total year ended 31 December 2020 £ Group total year ended 31 December 2019 £ 173,570 60,349 825,885 569,113 1,183,180 1,678,494 54,000 216,340 364,874 287,048 106,876 582,364 2,708,385 3,393,708 - 170,392 31,206 45,622 31,206 216,014 2,739,591 3,609,722

36

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

6.	Net incoming funds of the Charity	Charity for the Year ended	Charity for the Year ended
The net incoming funds are stated after charging:		31 December	31 December
		2020	2019
		£	£
	Depreciation of tangible fixed assets	8,401	8,031
	Auditor remuneration	10,731	9,600
	Operating lease rentals
-	Land and Buildings	34,000	34,000
-	Other equipment	540	540
		Group for the	Group for the
	Net incoming funds of the Group	Year ended 31	Year ended 31
The net incoming funds are stated after charging:		December	December
		2020	2019
		£	£
Depreciation of tangible fixed assets		8,401	8,031
Auditor remuneration		11,731	10,500
Operating lease rentals
-	Land and Buildings	34,000	34,000
-	Other equipment	540	540

37

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

7. Taxation

Any excess of income over expenditure for Opportunity International and OMIL is exempt from taxation.

8. Staff costs

Salaries Social security costs Pension contributions Charity staff costs	Year ended 31 December 2020 £ 571,324 65,139 114,619 751,082	Year ended 31 December 2019 £ 699,338 77,183 126,003
		902,524

The Charity provides a defined contribution money purchase pension scheme, the assets of which are held separately from those of the Charity in an independently administered fund.

The total costs of the senior management team, excluding statutory pension payments, was £248,683 (2019: £300,894).

The number of employees whose total emoluments were in excess of £60,000 are as follows:

£60,000 to £65,000 £70,000 to £80,000 £130,000 to £135,000 Average number of employees Senior management team Finance and administration Fundraising staff Programme/project staff Charity staff costs	Year ended 31 December 2020 Number Year ended 31 December 2019 Number - 1 1 - - 1 Year ended 31 December 2020 Number Year ended 31 December 2019 Number 5 5 1 1 4 4 6 8 16 18

38

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

9. Fixed assets of the Charity and Group

Computer equipment £ Cost As at 1 January 2020 20,747 Additions 2,070 Disposals (868) As at 31 December 2020 21,949 Accumulated depreciation As at 1 January 2020 13,895 Charge for the year 4,131 Depreciation charge on disposals (868) As at 31 December 2020 17,158 Net book value As at 31 December 2020 4,791 As at 31 December 2019 6,852 10. Programme Investments Investments- equity shares £ As at 1 January 2020 748,245 Additions - Exchange difference - As at 31 December 2020 748,245	Furniture & fittings Equipment Total £ £ £ 18,019 5,204 43,970 - - 2,070 - - (868) 18,019 5,204 45,172 9,112 4,119 27,126 3,714 556 8,401 - - (868) 12,826 4,675 34,659 5,193 529 10,513 8,907 1,085 16,844 Investments- convertible loans Total £ £ 1,225,446 1,973,691 317,299 317,299 (93,403) (93,403) 1,449,342 2,197,587	Equipment £ 5,204 - -	Equipment £ 5,204 - -		Total £ 43,970 2,070 (868)
		5,204			45,172
		4,119 556 -			27,126 8,401 (868)
		4,675			34,659
		529 1,085			10,513 16,844

39

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

10. Programme Investments (continued)

The convertible loan to OISL was converted to equity hence the shareholding in OISL rose to 27%; however, it continues to be accounted for as an investment as the OMIL board do not influence its running.

Subsidiary	Share	Class of	Activity	Net assets	Surplus/
	holding	shares			(deficit) for
		held			the year
				£	£
OMIL – Opportunity	100%	-	Microfinance	2,740,063	535,850
Microfinance
Investments Limited

Investment held by OMIL: Programme investment:

Opportunity International	27%	Ordinary	Microfinance	5,765,684	1,180,709
Savings and Loans		shares of
Limited (OISL) (Ghana)		no par
		value
Opportunity Bank	4%	Ordinary		7,215,811	215,249
Uganda Limited (OBUL)		shares of
		Shs 200
		par value

The shares in OBUL was 1.5% before additional shares of 2.5% were issued in 2021. OMIL company registration number is 04627098, registered charity number is 1098392, and the registered office address is the same as OIUK.

11. Debtors of the Charity and Group

Amounts falling due in less than one year: Income tax recoverable Prepayments Other debtors Accrued income Loan to SAT Group debtors	As at 31 December 2020 £ 3,451 16,024 72,628 250,000 230,000 572,103	As at 31 December 2019 £ 16,953 15,972 109,160 - 230,000
		372,085

Other debtors includes £64,236 (2019: £105,970) owed by Opportunity International US (OIUS), an affiliated Support Member of the Opportunity International Network (OIN).

40

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

12. Cash and cash equivalents: of the Charity and Group

Deposit accounts of 90 days or more Instant access deposit accounts Current accounts Cash in hand Cash and cash equivalents	As at 31 December 2020 £ 1,891,213 422,031 1,645,153 243 3,958,640	As at 31 December 2019 £ 1,687,677 1,576,277 1,451,093 679
		4,715,726

The deposits over 90 days can be accessed instantly but with forfeit of interest.

13. Liabilities of the Charity: amounts falling due within one year

Taxation and social security Accruals and deferred income Other creditors Amounts due to subsidiary	Charity as at 31 December 2020 £ 20,305 115,013 66,240 543,476 745,034	Charity as at 31 December 2019 £ 21,632 115,000 97,549 231,722 465,903

Amounts due to subsidiary are unsecured, interest free and repayable on demand.

Included in Other creditors is a £38,000 Loan Guarantee Fund, from two private donors, for coffee farmers in Uganda (see page 5 for further details).

41

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

14. Liabilities of the group: amounts falling due within one year

Taxation and social security Accruals Other creditors	Group as at 31 December 2020 £ 20,306 116,012 66,240 202,558	Group as at 31 December 2019 £ 21,632 116,200 97,549 235,381

Included in Other creditors is a £38,000 Loan Guarantee Fund, from two private donors, for coffee farmers in Uganda (see page 5 for further details).

15. Analysis of net assets of the Charity between funds

nalysis of net assets of the Charity between funds
Unrestricted funds £ Tangible fixed assets 10,513 Net current assets 2,223,847 2,234,360	Restricted funds £ Total funds £ - 10,513 1,561,862 3,785,709 1,561,862 3,796,222
		3,796,222

Funds are received from a number of donors with each donation generally relating to a specific project. Donations received are distributed by Opportunity International to members of the OIN referred to as Implementing Members. These organisations are responsible for the project. Consequently, no analysis of movements on the individual underlying funds has been provided.

Comparative: year ended 31 December 2019

Unrestricted funds £ Tangible fixed assets 16,844 Net current assets 2,568,985 2,585,829	Restricted funds £ Total funds £ - 16,844 2,052,923 4,621,908 2,052,923 4,638,752	Restricted funds £ Total funds £ - 16,844 2,052,923 4,621,908 2,052,923 4,638,752
		4,638,752

42

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

16. Analysis of net assets of the Group between funds

Fund balances as at 31 December 2020 are represented by:

Tangible fixed assets Programme Investments Net current assets Comparative: year ended 31 December 2019 Fixed assets and investments Net current assets	Unrestricted funds £ 10,513 - 2,766,323 2,776,836 Unrestricted funds £ 16,844 2,799,507 2,816,351	Restricted funds £ - 2,197,587 1,561,862 3,759,449 Restricted funds £ 1,973,691 2,052,923 4,026,614	Total funds £ 10,513 2,197,587 4,328,185
			6,536,285
			Total funds £ 1,990,535 4,852,430
			6,842,965

17. Commitments

At 31 December 2020, the Charity and Group had annual commitments under noncancellable operating leases as follows:

Within 1 year Within 1 – 5 years	Land and Buildings 2020 2019 £ £ 34,000 34,000 66,000 100,000 100,000 134,000	Other 2020 2019 £ £ 720 720 180 900 900 1,620

18. Trustees’ remuneration and donations

No trustees received remuneration (2019: £109,312) nor pension payments (2019: £10,165). Trustees donated £43,169 (2019: £27,625) to OIUK during the year.

No other trustee or any connected person received any remuneration from the Charity, during the year ended 2020, other than the board meeting costs for all trustees. Annual cost of the trustee indemnity insurance is £438.

43

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

19. Unrestricted funds for the Charity and Group

Brought forward as at 1 January 2020 £ Unrestricted funds 2,585,829 Charity reserves 2,585,829 OMIL unrestricted reserves 230,522 Group reserves 2,816,351 Comparative: year ended 31 December 2019 Brought forward as at 1 January 2019 £ Income in the year £ Unrestricted funds 2,319,956 984,507 Designated funds 500,000 - Charity reserves 2,819,956 984,507 OMIL unrestricted reserves 231,754 - Group reserves 3,051,710 984,507	Income in the year £ 709,896 709,896 312,844 1,022,740 Expenditure in the year £ (1,218,634) - (1,218,634) (1,232) (1,219,866)	Expenditure in the year £ Carried forward as at 31 December 2020 £ (1,061,365) 2,234,360 (1,061,365) 2,234,360 (890) 542,476 (1,062,255) 2,776,836 Transfer to unrestricted funds £ Carried forward as at 31 December 2019 £ 500,000 2,585,829 (500,000) - - 2,585,829 - 230,522 - 2,816,351	Expenditure in the year £ Carried forward as at 31 December 2020 £ (1,061,365) 2,234,360 (1,061,365) 2,234,360 (890) 542,476 (1,062,255) 2,776,836 Transfer to unrestricted funds £ Carried forward as at 31 December 2019 £ 500,000 2,585,829 (500,000) - - 2,585,829 - 230,522 - 2,816,351	Expenditure in the year £ Carried forward as at 31 December 2020 £ (1,061,365) 2,234,360 (1,061,365) 2,234,360 (890) 542,476 (1,062,255) 2,776,836 Transfer to unrestricted funds £ Carried forward as at 31 December 2019 £ 500,000 2,585,829 (500,000) - - 2,585,829 - 230,522 - 2,816,351
Brought forward as at 1 January 2019 £ Unrestricted funds 2,319,956 Designated funds 500,000 Charity reserves 2,819,956 OMIL unrestricted reserves 231,754 Group reserves 3,051,710
			- -	2,585,829 230,522
			-	2,816,351

20. Related party transactions

The Charity has availed itself of the exemption provided in section 33 FRS102, for wholly owned subsidiaries, from the requirement to give details of transactions with entities, which are part of the Group. The Implementing Members of the Opportunity International Network are autonomous. Opportunity International US is an affiliated OIN Support Member that is not a related party as defined in FRS102.

One of the trustees, Mr James Copestake, is also a Director of Bath Social and Development Research Ltd (Bath SDR) which is a company limited by guarantee (with a non-distribution clause) set up to promote innovation in the field of development evaluation. It currently holds a contract with OIUK to assist in evaluation of its microfinance and women’s empowerment programme in Ghana and DRC. Bath SDR uses an evaluation approach called the Quip to construct causal maps, and in 2020, it

44

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

teamed up with a self-employed evaluation professional, Steve Powell, to develop bespoke software for causal mapping. This has led to the formation of a limited company called Causal Map Ltd, in which James Copestake has a 5% minority shareholding (the other shareholders are Steve Powell, 60%, Fiona Remnant, 30% and Bath SDR, 5%). Causal Map software is now integral to the way Bath SDR conducts Quip evaluations. The potential conflict of interest here is minor, as any future decisions on the part of OIUK about working with Bath SDR and/or Causal Map would rest with relevant staff managing the programme and would not involve Mr Copestake (the project is ending in September 2021).

21. Ultimate control

The trustees are considered the ultimate controlling party of the Group.

22. Post balance sheet events

For post balance sheet events please refer to page 16.

23. Analysis of restricted funds of the Charity and Group

Restricted funds are funds subject to use for a specific purpose, which may be declared by the donor(s) or with their authority (e.g. in a public appeal) or created through a legal process, but still within the wider objectives of the Charity. The resources of these funds are appropriate for the intended purpose of each fund. All the costs of the subsidiary are restricted except for the governance costs of OMIL.

45

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

23. Analysis of restricted funds of the Charity and Group (continued)

Brought forward as at 1 January 2020 Scottish Government Strengthening livelihoods in rural Rwanda 150,605 FCDO GEC-T Girls education Finance Empowerment for girls’ education 74,044 Anonymous donor- Mozambique 25,620 National Lottery Community Fund– mainstreaming financial inclusion for persons with disabilities in Uganda. 5,333 Private restricted donations– 2,043,059 SCBFfor Rwanda and Youth project - Restricted funds in surplus 2,298,661 FCDO UK Aid V- increasing the economic empowerment of women in Ghana & DRC (245,738) Total restricted funds for the Charity 2,052,923 Subsidiary’s restricted funds. 1,973,691 Total restricted funds for the Group 4,026,614	Income for the year £ 150,000 331,995 - 30,125 405,676 106,943 1,024,739 863,770 1,888,509 - 1,888,509	Expenditure in the year £ Carried forward as at 31 December 2020 (286,245) 14,360 (406,039) - (25,620) - (24,572) 10,886 (773,283) 1,675,452 (84,945) 21,998 1,600,704 1,722,696 (778,866) (160,834) (2,379,570) 1,561,862 223,896 2,197,587 (2,155,674) 3,759,449

*The fund in deficit is due to the timing of the receipts, we pre-fund projects as payment from FCDO is received in arrears, and income to cover this deficit is due in 2021.

46

Opportunity International United Kingdom Notes to the financial statements Year ended 31 December 2020

23. Analysis of restricted funds of the Charity and Group (continued)

Comparative: year ended 31 December 2019

Brought forward as at 1 January 2019 Income for the year £ Expenditure in the year £ Scottish GovernmentStrengthening livelihoods in rural Rwanda 26,889 300,000 (176,284) FCDO UK Aid III- creating wealth in the DRC (4,336) 5,000 (664) FCDO UK Aid IV- helping smallholder farmers in Ghana & Mozambique. 40,608 5,000 (45,608) FCDO GPAFlivelihoods for smallholder farmers in Rwanda. - 9,998 (9,998) FCDO GEC-T Girls education Finance Empowerment for girls’ education (6,637) 1,010,193 (929,512) Anonymous donor- Mozambique 25,620 - - Anonymous donor- pathways to “whole school development”. 137,885 - (137,885) National Lottery Community Fund– mainstreaming financial inclusion for persons with disabilities in Uganda. 1,516 54,818 (51,001) Divine– enhancing the livelihoods of women cocoa farmers in Western Ghana. 4,250 (2,227) (2,023) Private restricted donations– See above. 2,030,896 1,205,261 (1,193,098) Restricted funds in surplus 2,267,664 FCDO UK Aid V- increasing the economic empowerment of women in Ghana & DRC (1,106,263) 1,208,946 (348,421) Restricted fund in deficit (1,117,236) Total restricted funds for the Charity 1,150,428 3,796,989 (2,894,494) Subsidiary’s restricted funds. 2,251,424 - (277,733) Total restricted funds for the Group 3,401,852 3,796,989 (3,172,227)*

Carried forward as at 31 December 2019 150,605 - - - 74,044 25,620 - 5,333 - 2,043,059 2,298,661 (245,738) (245,738) 2,052,923 1,973,691 4,026,614

47