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2022-08-31-accounts

REGISTERED COMPANY NUMBER: 05608022 (England and Wales) REGISTERED CHARITY NUMBER: 1112621

ARTICLE 25

TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

ARTICLE 25 CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Page
Report of the Trustees 1 to 11
Independent Examiner’s Report 12
Statement of Financial Activities 13
Balance Sheet 14-15
Statement of Cash Flows 16
Notes to the Financial Statements 17 to 25
Detailed Statement of Financial Activities 26 to 27

ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number : 05608022 (England and Wales)
Registered Charity number : 1112621
Registered office and principal office : 6thFloor
1 Canada Square
London
E14 5AB
Managing Director : G Holding (started 25/4/22)
D Murray (left 27/4/22)
Directors and Trustees : D Bennetts, Chair
J B Pringle
M J Catton
G Grainger
D J R Delahunty
C Soyinka (resigned 15/4/22)
P Hudson
N Thingelstad
M Astarita (appointed 11/7/22)
Patron : Lord Foster of Thames Bank
Independent Examiner : David Green MA (Cantab) ACA
Azets
Suites B & D
Burnham Yard
Beaconsfield
Buckinghamshire
HP9 2JH
Bankers : The Co-operative Bank
P.O. Box 250, Dell House,
Skelmersdale
Lancashire WN8 6WT
Bank of Scotland
PO Box 1000
BX2 1LB

The Trustees, who are also directors of the charitable company for the purposes of the Companies Act 2006, present their annual report and the financial statements for the period ended 31 August 2022 which are prepared to meet the requirements for a Director’s Report and accounts for Companies Act purposes. The financial statements have been prepared in accordance with the accounting policies set out in note 3 to the accounts and comply with the Companies Act 2006 and the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102).

Page 1

ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

CHAIR’S INTRODUCTION

Article 25 supports and empowers communities around the world to design and build housing, schools and medical facilities, enabling local development, alleviating poverty, and improving equality of access to a safe place to live, education, and healthcare. We also often help to rebuild lives and livelihoods in the wake of disasters and conflicts. By working closely with local people, we develop an acute understanding of prevailing conditions, capacity and resources. Using the best principles of architecture and engineering we design resilient, functional, beautiful and safe places for housing, education and healthcare. Working on the ground alongside these communities, we supervise construction; and through training support we exchange knowledge and skills with people to build greater capacity within that community. The end result is never just a building that serves to increase access to safe housing, learning, and better health, it is also the legacy of a community with greater resilience and more opportunities to enjoy a thriving future. In 17 years, Article 25 has carried out over 100 projects in 36 countries.

In this financial year we started several new projects. We began the refurbishment of a hospital floor in Casablanca with new operating theatres which will be used for cleft lip and cleft palate operations by Operation Smile Morocco. We also completed a feasibility study for a major expansion of a hospital in western Nepal for the United Mission of Nepal and began a study for the rebuild of a hospital in northern Ghana for the charity AfriKids. In Rwanda we were asked to explore the possibility of building a cheesemaking dairy for a farmers’ cooperative in the eastern province of the country.

We continue to work on a four-year programme of design and construction supervision for the Housing Recovery Programme of the island of Dominica. The programme is planned to replace approximately 450 houses lost in Hurricane Maria, with disaster resilient construction. Over 100 houses were completed in 2021/22. We are also supervising the construction of a Children’s Village for orphaned children in northern Tanzania; the first phase is expected to be completed at the end of 2022.

We are continuing to work in close partnership with Child Support Tanzania and Able Child Africa, we have now completed four phases of construction. The first two phases of construction are also complete at a school in Niamey, Niger.

Having completed the Preliminary Design of a community hospital on the island of Montserrat in February 2020, we are now working on final drawings and specifications with the expectation of starting construction in 2023. This hospital will replace one destroyed in a volcanic eruption in 1997. A Trauma Centre in Nepal for the Leprosy Mission is nearing construction completion. And we are currently designing and clinical and research laboratory on this same site.

One staff change occurred in 2021-22, Managing director David Murray left in April 2022. In the same month Gemma Holding was appointed to the same role.

On behalf of the Trustees, I want to thank most warmly our hard-working staff and volunteer team, our partners in the many countries where we work, our professional collaborators who help us to deliver these projects and, of course, our donors and supporters both small and large, who help to build and maintain our charity so that it is as resilient as the buildings we create and the communities we support across the world.

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ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a Memorandum and Articles of Association, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The Memorandum and Articles of Association is the charity's governing document. The Articles of Association are currently being updated by Trustee Natalie Thingelstad and were finalised in early 2022/23.

Recruitment and appointment of new trustees

The existing Trustees appoint trustees. Their terms and responsibilities are outlined in a trustee recruitment policy that was implemented in 2016. Trustees of the charity are also Directors of the Limited Company. We apply a rotation of Directors and as per our Articles of Association; one third of the Directors must retire each year but may be re-elected.

During 2021-22, we saw one trustees retire from the board – Chris Soyinka - and we appointed one new trustee – Mark Astarita. We intend to make further appointments, mindful of our aims of equality, diversity, and inclusion, whilst seeking to further diversify the skills and expertise we have access to at board level.

Organisational aims

Article 25 was founded originally under the name Architects for Aid and was set up to provide better housing for those in need and to work with partner NGOs to provide built solutions wherever there is disaster, poverty or need. Renamed Article 25 in 2009, the charity aims to promote safe housing, access to education, and healthcare as a human right, and is named after the 25th Article of the Universal Declaration of Human Rights, which is the article of the declaration relating to the built environment.

Organisational structure

Our organisational structure comprises a Board of Trustees, a Senior Management Team, the Staff and Volunteers. The team of staff and volunteers is organised into projects and charity management (including fundraising and communications), each headed by a director.

Related parties

Article 25 works with partner NGOs, INGOs, charities, development agencies and governments in the UK and overseas. Article 25 receives the donation of skills from various professional parties who assist in the delivery of our projects.

Article 25 introduces capacity building construction and architecture and engineering skills to international development projects. The organisation also provides continuing education to professional firms and larger agencies as a way to increase the impact of its work.

Risk management

All Article 25 projects and operations are assessed for their potential risks in delivery before significant charity resources are dedicated to the project. A risk register is maintained by the Managing Director and Director of Projects and is presented for approval at the quarterly trustee board meetings.

The charity also liaises with local and international bodies (for example the High Commission or Embassy departments as appropriate) when undertaking the management of work overseas and dealing with any issues of controversy or potential controversy when working alone, or with any collaborating entity. Article 25 operates a safeguarding policy.

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ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

Overseas project travel is assessed for risks ahead of each field trip. If necessary, staff and volunteers undergo any required hostile environment and first aid briefings prior to going abroad. All travellers are covered under an Article 25 insurance policy, specifically provided for NGO workers; they are briefed on pertinent local social issues and are instructed to carry emergency contact details. Each location is researched in advance and advice sought from FCDO and in-country sources, particularly from our local partners who have detailed knowledge of conditions in the field. Our legal advisors have advised that we have, through the training and documentation we use, achieved effective limitation for our liability regarding risks in sending participants on overseas projects and that they have sufficient information to meet standards of "informed consent" to participate as staff or volunteers for Article 25.

Article 25 also has public liability and professional indemnity insurance to offset any risk incurred in the course of conducting our work at home and overseas.

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ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

Objectives and Aims

The trustees have considered the guidance published by the Charity Commission and have concluded that the charitable company’s core activities satisfactorily address the principles of identifiable public benefit and demonstrate that the charitable company has fulfilled the public benefit requirement under the Charities Act 2011.

Article 25 provides building design solutions and key construction project management skills to the International Development community. Focusing on the core areas of buildings for housing, learning, health, and where appropriate, resilience to disasters, we aim to apply these skills where they make the greatest beneficial difference to the most disadvantaged communities. We continue to deliver these objectives through close collaborations with NGOs and community groups internationally.

ACHIEVEMENT AND PERFORMANCE

Charitable Activities

Article 25 continues to deliver essential design and construction skills to those who would otherwise have no access to such services. We work with partners across the built environment sector to provide design, construction management and engineering skills to benefit some of the poorest and most disadvantaged communities in the world.

Throughout our work, capacity development remains a constant priority. Our construction projects are used to develop the skills of workers in the communities of our local partners and to increase long-term resilience, leaving behind a community better able to build safely for itself. We improve the long-term performance of a project by engaging the end-users from inception to completion. This positively affects the sustainability of a project and builds the capacity of those local partners who take responsibility for the project and its sustainable operation.

Article 25 is one of the few organisations globally delivering this technical work as a primary objective and from a small base of operations. Our projects have a positive impact on hundreds of thousands of beneficiaries over time.

Article 25 safeguards the effectiveness of its work through maintaining high professional standards and by monitoring outputs. We examine the long-term sustainability of each project to ensure a lasting impact is achieved.

Housing

Dominica

This is a disaster recovery programme to replace 450 houses lost across the island of Dominica in Hurricane Maria. Rather than building blocks of flats for the families made homeless, each family can apply for a house to be built on their own land, maintaining their ability to farm and to keep their neighbours and local community. Families can choose one of six model houses that will be adapted to

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ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

the access and slopes of the site and built by a small contractor. As each house has its own timelines, the overall project is a “rolling” programme with various stages of design and construction occurring simultaneously. 414 beneficiaries have been enrolled to date and our Dominican team have carried out 355 site surveys 331 planning applications have been submitted and 331 have been approved, 225 tenders have been awarded. Families have moved into 188 completed houses.

Tanzania

We have completed the design and first phase of construction of a Children’s Village for orphaned children in northern Tanzania, Phase 2 is due to start construction in March or April 2023. Our partner charity Tir na n’Og have received additional funding for the development of food security on the adjacent farm which will be integrated into the next phase of the project. We have a Tanzanian team of an architect and an engineering firm to advise during construction and our Tanzanian site architect will continue to supervise works through Phase 2.

Learning

Niger

The first four classrooms, two latrine blocks and the Guard’s house were completed and handed over to the client for the start of the school year in October 2021. The sports fields, water tower and other infrastructure works are also complete. Phase 3 is due to start in this fiscal year.

Tanzania

Phase 3 of this school project, which consists of a kitchen and a dining/assembly hall has been completed and is in use. Phase 4, a classroom and physiotherapy room has now also been completed. A new grant has been received from Cure Myotonic Dystrophy to construct more classrooms and further developments will include comprehensive grading of the site and completion of the sanitation design.

Health

Montserrat

After completing the preliminary design for a new national hospital Article 25 and its engineering team are continuing with the final design of the new hospital and refurbishing an older building to house hospital support functions while the new building is under construction. Construction is expected to start toward the end of fiscal year 22-23.

Morocco (Casablanca).

The renovation of one floor into operating theatres and neonatal and paediatric intensive care wards has been designed and construction is underway. We are working with a local Moroccan architect and Moroccan engineers on this project.

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ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

Morocco (Marrakech)

We have completed the design of this centre which will be used for continuing care of patients with cleft palate and cleft lip before and after surgery. We are working with a local Bureau d’Etudes to carry out the engineering drawings for construction. A Moroccan architect based in Marrakesh will work with Article 25 to supervise the construction.

Myanmar

We have not been able to resume work in Myanmar and have closed out our contract.

Nepal (Lele)

The construction of the Trauma Centre at Anandaban Hospital is close to completion.

We are in the final stage of design for a laboratory, adjacent to the Trauma Centre, to serve the clinical and research needs of the Leprosy Hospital. As the site is in an active seismic zone, we invited a globally recognised structural engineering firm with strong seismic credentials to analyse the geotechnical conditions and develop the structural concepts and an international services consultancy to design the mechanical and electrical engineering concepts. Nepali engineers have now taken on the final design for all design disciplines; collaboration with their U.K. counterparts will continue through design and construction.

Nepal (Tansen)

We have completed a Feasibility Study for the regeneration of a 200-bed hospital in Western Nepal for the United Mission Nepal. The project will be implemented over two or more phases and will provide new clinical facilities and replace older buildings constructed in the 1950’s and 1970’s with earthquake resilient new buildings. A funding review is currently underway for this project.

Ghana

We were asked by the charity AfriKids to study the feasibility of rebuilding their hospital in Bolgatanga, northern Ghana which had to be demolished due to the collapse of some walls and areas of roof. This study has been completed. It identifies reconstruction in three phases. The initial phase will be to locate a new operating theatre in a partially constructed building, so the hospital can continue to function and maintain its accreditation.

Community Enterprise

Rwanda

We have completed a Feasibility Study for a cheesemaking dairy for a farmers’ cooperative in the eastern province of Rwanda. The farmers are already selling milk from their large herds of cattle but want to add value and increase their economic potential by making and selling cheese in future. This will be Article 25’s first community enterprise project. The ambition is to make this project carbon neutral. It involves a large number of partners: the farmer’s co=operative, the Rwandan Dairy Board, Blues Creamery from Ireland for expertise in cheesemaking and marketing, University College Dublin

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ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

and Rwandan scientists from the Ministry of Agriculture for a cattle breeding programme and carbon neutral management of cattle.

When the project moves into design, we will seek out engineering partners with experience in bio-gas and other sustainable methods for delivering hot and cold water, and cooling for the cheese ripening rooms.

FINANCIAL REVIEW

While our day-to-day operations are supported by cash accounting, accounting standards require us to recognise income and expenditure by accrual accounting within the relevant period. Besides income and expenditures this includes accounting for donations in kind and voluntary services provided by our partners.

The Statement of Financial Activities shows net shortfall for the year of £24,570 (2021: surplus of £57,410) and our reserves stand at £50,056 (2021: £74,626) in total. The income for the year generated from donations and legacies was £353,500 (2021: £401,296) and the income from charitable activities was £399,393 (2021: £490,793). The worsening in the financial position was due to fewer fundraising activities due to Covid and several projects being at an early stage when fewer cost contributions are generated.

RESERVES POLICY

The charity aims to have a policy of holding 3 months of reserves. The average actual reserves for the fiscal year were less than twice the monthly operating cost due to a drop off in fundraising income. We have made it a key priority to attain a truly sustainable flow of finance. Following from the end of fiscal year 2021-22 we have adopted a new policy with respect to balancing our charitable project activities so that in future cost contributions will equal costs on at least 65% of our projects.

FUTURE DEVELOPMENTS

For the period May – August 2022 the incoming Managing Director set about devising a three-year organisational strategy for 2023-2026, following an initial 360 appraisal of the organisation. This was signed off by the Board in October 2022. This document outlines five strategic areas of focus for the organisation, with a view to stabilising the organisation financially over the period of the strategy, recognising that Article 25 must deliver financial stability before we can invest for growth.

The five strategic priorities for Article 25 over the period are:

We will do this through increased engagement with other INGO's, governments and key stakeholders. Communications and engagement strategy to focus on an INGO audience.

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ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

We will do this by securing at least 10 new projects during the course of the strategy, using the new operating model for surplus generating, cost recovery and subsidised projects, (30/50/20 ratio) and adopt a proactive approach to project leads. We will use agreed assessment tools (based on the Social Return on Investment) at all stages: leads, EOI, shortlist, outline bid, appointment, feasibility study and final bid and appointment, to ensure Article 25 is delivering significant and measurable environmental, social and economic benefits on all aspects of our projects.

We will do this by evaluating Social Return on Investment (SROI) to demonstrate the social, economic, environmental and financial value that results from our activities to attract new investment and project partners. Use SROI to inform our communication strategy with stakeholders to leverage investment, partnership and improve tenders.

Increase cost contribution from projects (as per business model) from 40% of total project value to 65%. Adopt the new fundraising strategy and use fundraised income to invest in organisational infrastructure, fundraising capabilities and build up reserves - rather than using fundraised income to plug existing shortfall.

We will do this by identifying key stakeholders and develop a targeted communications strategy, based on evidenced data. Move from predominantly architect and public facing communications to a strategy focused on the wider INGO sector and governments.

FUNDRAISING

Cashflow has remained challenging over this financial year, but project activity has increased substantially which should show a positive financial impact in 2022-23.

The incoming Managing Director was tasked by the Board to stabilise the financial position of the organisation and a number of fundraising recommendations are being adopted to do this, as set out in the new strategy. These include:

Major Donor Fundraising

We will maintain and grow our income from major donors. We are extremely grateful to our existing major donors and for their generous and continued commitment to Article 25.

Corporate Partnerships

We will maintain and grow our income from corporate donors. Article 25 will launch a new corporate fundraising campaign in 2023, to bolster our existing base of incredible corporate supporters – without whom our work would simply not be possible.

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ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

Trust Fundraising

Article 25 will test a modest trusts and foundations fundraising programme, an income stream previously not explored by the organisation, in the interests of diversifying our income streams.

Individual Giving

Article 25 will explore new initiatives to bolster our individual giving income such as The Big Give campaign and a specific legacy campaign.

The diversified fundraising effort, coupled with the new financial model for how Article 25 calculates cost contributions for projects, will ensure the charity generates additional unrestricted income and reserves.

Future Project Work

For 2022-23 we look forward to constructing the second phase of the Children’s Village in northern Tanzania. We hope to conclude design of the houses in Dominica. Design of Phase 5 of the Pre-school for disabled and able-bodied children in Mbeya should be completed by the end of the fiscal year. The Operation Smile clinic in Marrakech should be mid-way through construction and the hospital refurbishment at Bouafi Hospital in Casablanca should be complete. We expect to be in construction on a new hospital in Montserrat. We should conclude the hospital construction work in Nepal with the Leprosy Mission and have the laboratory in construction. We also hope to start design work on the hospital project, in Tansen, Nepal.

We expect to begin design work on the dairy in Rwanda and on the replacement hospital in Ghana.

RESPONSIBILITIES OF THE BOARD OF TRUSTEES

The Board of Trustees (who are also the Directors of The Charitable Company for purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including income and expenditure, of the charitable company for that year. In preparing those financial statements, the Trustees are required to:-

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ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022 The Board of Trustees are responslble for keeping proper accountlng records that disclose w￿h reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsibSe for safeguarding the a55ets of the chéritabltr company and hence for taking reasonable step5 for the preventlon an(1 detectSon of fraud and other irregularities. AUDIT Under the terms of the Charities Act 2011, the Company falls within the range for which no audit is required. However, an independent examination of the accounts 15 required. APPROVAL These financial statements have been prepared in accordance with the Companies Act 2006 and the Charitle5 50RP IFRS1021. Approved by the Board of Trustees on 29103123 slgned on thelr behalf by D 8ennetts Phil Hudson Pa%e 11

ARTICLE 25 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2022

I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31[st] August 2022.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

The company’s gross income exceeded £250,000 and I am qualified to undertake the examination because a qualified member of the ICAEW.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

David Green, MA (Cantab) ACA Azets Suites B & D Burnham Yard Beaconsfield Buckinghamshire HP9 2JH

19 April 2023

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ARTICLE 25 STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 AUGUST 2022

Support costs
8
-
240,176
Total Expenditure
25,317
752,146
Net (expenditure)/income
(1,253)
(23,317)
RECONCILIATION OF FUNDS
Total funds brought forward as at 1
September 2021
44,878
30,748
Total funds carried forward as at 31
August 2022
15
20,561
29,495
2022
2022
Restricted Unrestricted
Funds
Funds
Notes
£
£
INCOME
Donations and legacies
4
2,000
351,500
Income from charitable activities
5
-
399,393
Other income
6
-
-
Total Income
2,000
750,893
EXPENDITURE
Cost of raising funds
8
- 92,172
Charitable activities
8
25,317 419,798		 240,176
777,463
(24,570)
74,626
50,056
2022
Total
Funds
£
353,500
399,393
-
752,893
92,172
445,115		 250,848
841,711
57,410
17,216
74,626
2021
Total
Funds
£
401,296
490,793
7,032
899,121
49,472
541,391

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The notes on pages 18 to 26 form part of these financial statements.

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ARTICLE 25 BALANCE SHEET AT 31 AUGUST 2022 Co Reg No 05608022

Notes
FIXED ASSETS
Tangible assets
10
CURRENT ASSETS
Cash at bank and in hand
Debtors
11
CREDITORS
Amounts falling due within one year
12
NET CURRENT ASSETS

CREDITORS
Amounts falling due in more than one
year
13

NET ASSETS/LIABILITIES
FUNDS
Restricted funds
15
Unrestricted funds
15
TOTAL FUNDS		 2022
Total
funds
£
425
52,141
137,056
(86,233)
102,964
(53,333)
50,056
20,561
29,495
50,056		 2021
Total
funds
£
1,275
99,118
71,763
(59,197)
111,684
(38,333)
74,626
43,878
30,748
74,626

For the year ending 31 August 2022 the company was entitled to exemption from audit under Section 477 of the Companies Act 2006 relating to small companies.

No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.

These accounts have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small charitable companies.

The notes on pages 18 to 26 form part of these financial statements

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ARTICLE 25 BALANCE SHEET AT 31 AUGUST 2022 Co Reg No 05608022 The flnancial statements were approved and authorised for1s5ue by the Board of Trustees on 29 March 2023 and were signed on its behalf by.. Denise Bennetts Phil Hudson Page 15

ARTICLE 25 STATEMENT OF CASH FLOWS AT 31 AUGUST 2022

Cash flow from operating activities
Net surplus/(deficit) for the year
Depreciation of tangible fixed assets
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash flow from operating activities
Cash flow from investing activities
Acquisition of tangible fixed assets
Net cash flow from investing activities
Net (decrease) / increase in cash and cash equivalents
Cash and cash equivalents at 1st September 2021
Cash and cash equivalents at 31st August 2022		 2022
£
(24,570)
850
(65,293)
42,036
(46,977)
-
-
(46,977)
99,118
52,141		 2021
£
57,410
4,034
(33,557)
(22,037)
5,850
-
-
5,850
93,268
99,118

The notes on pages 18 to 26 form part of these financial statements.

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ARTICLE 25 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. COMPANY INFORMATION

Article 25 is a private company, limited by guarantee, registered in England Wales. The company’s registered number and registered office address can be found on Page 1.

2. STATEMENT OF COMPLIANCE

The financial statements have been prepared in compliance 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 (FRS 102) Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006 as they apply to the financial statements of the company for the year ended 31 August 2022.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historic cost convention.

The financial statements are presented in sterling (£) which is also the functional currency of the company.

The company meets the definition of a public benefit entity under FRS 102.

Income recognition policies

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

For legacies, the point of entitlement is the earlier of the date of the charity being notified of an impending distribution or the date the legacy is received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Investment income is earned through holding assets for investment purposes such as on short term bank deposit and solely comprises bank interest.

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ARTICLE 25 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Allocation of support costs

Charitable expenditure includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. They also include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource.

Debtors

Other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank

Cash at bank comprises balances held in various instant access bank accounts and represents highly liquid funds.

Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Financial instruments

The charity has only financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc - write off over 3 years

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ARTICLE 25 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

3. ACCOUNTING POLICIES (continued)

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charitable company. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Going concern

The financial statements have been prepared on a going concern basis as the directors believe that no material uncertainties exist. The directors have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements and are satisfied that the charity will be able to continue as a going concern.

Volunteers and donated services and facilities

Where services are provided to the charity as a donation that would normally be purchased from our suppliers, this contribution is included in the financial statements at an estimate based on the fair value of the contribution to the charity. Donated services and facilities are analysed in note 18. As provided in the SORP (FRS 102) no amount is included in the financial statements for volunteer time.

Operating leases

Rentals applicable to operating leases are charged to the SoFA on a straight-lined basis over the period of the lease.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimate have been made include:

4. DONATIONS AND LEGACIES

DONATIONS AND LEGACIES
2022
 2021
£ £
Donations 164,625 208,778
Donations in kind 162,940 167,218
Gift aid 25,935 25,300
353,500 401,296

Included in donations there is £2,000 (2021: £6,611) of restricted income.

Page 19

ARTICLE 25 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

5. INCOME FROM CHARITABLE ACTIVITIES

2022
 2021
£ £
Fundraising events 41,197 45,625
Grants 358,196 445,758
399,393
 490,793
Included in the Grant Income there is £Nil (2022: £90,752) of restricted income.
6.
OTHER INCOME
JRS Government Grant
Sundry income
Total
7.
NET INCOMING/(OUTGOING) RESOURCES		 2022
£
-
-
-		 2021
£
7,032
-
7,032

Net resources are stated after charging:

2022 2021
£ £
Depreciation - owned assets 850 4,034
Independent examination fees 3,600 3,390

8. EXPENDITURE ANALYSIS

Raising funds
Events
Admin
Mission
Professional
Delivery		 Restricted
funds
-
-
-
-
25,317
25,317		 Unrestricted
funds
17,535
74,637
92,172
255,187
164,611
419,798		 Total
2022
£
17,535
74,637
92,172
255,187
189,928
445,115		 Total
2021
£
19,581
29,891
49,472
263,916
277,475
541,391

Page 20

ARTICLE 25 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Support Costs (including Governance)
Rent Rates and Service Charge
-
Communications
-
Office
-
Insurance
-
IT
-
Legal & Professional
-
Finance
-
-
25,317		 143,568
6,686
60,030
7,677
17,457
3,972
787
240,176
752,146		 153,014
6,686
60,030
7,677
17,457
3,972
787
240,176
777,463		 153,014
7,640
63,974
6,369
12,559
7,123
169
250,848
841,711

In the prior year there was restricted expenditure of £87,609 in relation to Mission: Delivery.

9.
STAFF COSTS
Paid Staff
Wages and salaries
Social security costs
Pension contributions
Time Donated
Professional Resource		 2022
£
317,396
32,015
7,410
356,821
2021
£
62,940
62,940		 2021
£
289,735
28,024
6,251
324,010
2021
£
64,718
64,718

The number of salaried employees averaged 7 (2021: 7) but varied according to project needs. One employee was paid between £60,000 and £70,000 in the current year (two employees were paid between £60,000 and £70,000 in the prior year). Alongside staff there is a larger team of volunteers helping to deliver Article 25’s work. The volunteers include those volunteering in Article 25’s inhouse design team and communications team (averaging 22 in the current and 22 in the prior year) and the professionals and practices volunteering their time from their own practices (averaging 18 part time in the current year and 16 part time in the prior year). The key management personnel are D. Murray (to April 2022), G Holding (from April 2022) and B. Sennewald (2021 D. Murray and B. Sennewald). The total employee benefits of the key management personnel of the charitable company were £149,425 (2021: £142,450).

Page 21

ARTICLE 25 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

10. TANGIBLE FIXED ASSETS

10. TANGIBLE FIXED ASSETS


11.
12.
13.		 Plant and machinery etc
COST
£
At 1 September 2021
17,079
Additions
Disposals
-
(14,529)
At 31 August 2022
2,550
DEPRECIATION
At 1 September 2020
15,804
Charge for year
On disposal
850
(14,529)
At 31 August 2021
2,125
NET BOOK VALUE
At 31 August 2022
425
At 1 September 2021
1,275
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
2021
£
£
Prepayments & accrued income
137,056
71,763
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022
2021
£
£
Tax and social security creditor
9,583
7,274
Loans
40,000
10,000
Other creditors
10,800
11,763
Accruals & deferred income
25,850
30,160
86,233
59,197
CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR
2022
2021
£
£
Total Loans
93,333
48,333
93,333
48,333
Loans are repayable as follows:
Within one year 40,000 10,000
Between one to two years 35,000 10,000
Between two to five years 18,333 28,333
More than five years - -

Of the loans £55,000 (2021: £Nil) are unsecured and are interest free. With the remainder of the loan it is a bounce back loan that is unsecured and interest is charged at 2.5% from June 2021 – June 2026.

Page 22

ARTICLE 25 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS – CURRENT YEAR

Fixed Assets
Cash
Debtors
Creditors due in less than one year
Creditors due in more than one year		 Unrestricted
funds

£
425
31,580
137,056
(86,233)
(53,333)
29,495		 Restricted
funds
£
-
20,561
-
-
-

20,561		 Total
funds
£
425
52,141
137,056
(86,233)

(53,333)

50,056
ANALYSIS OF NET ASSETS BETWEEN FUNDS – PREVIOUS YEAR
Unrestricted
funds

£
Fixed Assets
Cash
Debtors
Creditors due in less than one year
1,275
55,240
71,763
(59,197)
Creditors due in more than one year
(38,333)
30,748
15.
MOVEMENT IN FUNDS – Current year
At 1.9.21
Incoming
resources
£
£
Funds
Unrestricted
Restricted
30,748
43,878
750,893
2,000
TOTAL FUNDS
74,626
752,893
The Restricted fund comprises of the following:
At 1.9.21
Incoming
resources
£
Project
Warm & Healthy Homes
7,343
-
Child Support Tanzania
10
2,000
Glendon Hospital Montserrat
7,124
-
Yangon Hand Hygiene
5,668
-
Operation Smile Marrakesh
23,733
-
TOTAL RESTRICTED FUNDS
43,878
2,000		 Restricted
funds
£
-
43,878
-
-
-
43,878
Resources
expended
£


(752,146)
(25,317)

(777,463)
Resources
expended
£
-

(2,000)
(7,124)
(5,474)
(10,719)
(25,317)		 Total
funds
£
1,275
99,118
71,763
(59,197)
(38,333)
74,626
At 31.8.22
£


29,495
20,561

50,056
At 31.8.22
£
7,343
10
-
194
13,014
20,561

The Warm & Healthy Homes project provides workshops for people in London who suffer from fuel poverty.

The Child Support Tanzania project helps run a pre-school in Tanzania for children with physical and mental disabilities to enable them to join a mainstream school curriculum at age five.

Page 23

ARTICLE 25 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

The Glendon Hospital Montserrat project is for the initial concept design options for a new general hospital.

The Yangon Hand Hygiene project supports our long-term work at the hospital and devised to support the hospital staff with the provision of hand sanitizers, soaps and restorative plumbing works.

The Operation Smile Marrakesh project aims to provide better access to specialist healthcare and dentistry focussed on cleft lip and cleft palette.

The Beirut Emergency Fund was set up to deliver emergency remedial work on buildings damaged in the major port explosions that shook the city on 4th August 2020.

Funds
Unrestricted
Restricted
TOTAL FUNDS
The Restricted fund comprises of
Project
Warm & Healthy Homes
Child Support Tanzania
Glendon Hospital Montserrat
Yangon Hand Hygiene
Operation Smile Marrakesh
Beirut Emergency Fund
TOTAL RESTRICTED FUNDS		 At 1.9.20
Incoming
resources
£
£
(16,908)
34,124
801,758
97,363
17,216
899,121
the following:
At 1.9.20
Incoming
resources
£
7,343
-
10
-
20,984
55,019
5,787
68
-
35,733
-
6,543
34,124
97,363		 Resources
expended
£


(754,102)
(87,609)

(841,711)
Resources
expended
£
-

-
(68,879)
(187)
(12,000)
(6,543)
(87,609)		 At 31.8.21
£


30,748
43,878

74,626
At 31.8.21
£
7,343
10
7,124
5,668
23,733
-
43,878

16. RELATED PARTY DISCLOSURES

None of the trustees (or any persons connected with them) received any remuneration during the current or prior years, nor did any of them claim any expenses (2021: Nil). During the year there was unrestricted income from the trustees and persons connected with them totalling £15,000 (2021: £40,000).

17. COMPANY STATUS

The company is limited by guarantee and has no share capital. In accordance with the Memorandum and Articles of the charitable company, the liability of members is limited to £10 each in the event of the winding up of the charitable company. At 31 August 2022 there were 8 members (2021: 8 members).

Page 24

ARTICLE 25 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

18. DONATED FACILITIES AND SERVICES

DONATED FACILITIES AND SERVICES
Office space
PR
Professional skills donated		 2022
£
100,000
-
62,940
162,940		 2021
£
100,000
2,500
64,718
167,218

The income equivalent of the above services and facilities were recognised within incoming resources as a donation, and an equivalent charge included within resources expended.

19. OPERATING LEASES

Total future minimum lease payments under non-cancellable operating leases are as follows:

Less than one year
Between one and five years
More than five years		 2022
£
5,683
15,158
-
20,841		 2021
£
5,683
19,697
1,145
26,525

20. ANALYSIS OF CHANGES IN NET DEBT

Balance at
beginning of Other Balance at
year Cash Flow changes end of year
£ £ £ £
Cash at bank and in hand 99,118 (46,977) - 52,141
----------------------------------------------------- ----------------------------------------------------- ----------------------------------------------------- --------------------------------------------
Total cash and cash equivalents
 99,118 (46,977) - 52,141
----------------------------------------------------- ----------------------------------------------------- ----------------------------------------------------- --------------------------------------------
Loans due within one year (10,000) (30,000) - (40,000)
Loans due in more than one year (38,333) (15,000) - (53,333)
----------------------------------------------------- ----------------------------------------------------- ----------------------------------------------------- ---------------------------------------------
Total 50,785 (91,977) - (41,192)
====================== ====================== ==================== =================

Page 25

ARTICLE 25 DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022


INCOME
Voluntary income
Donations
Donations in kind
Gift aid
Legacy
Activities for generating funds
Fundraising events
Grants

Other income
JRS Government Grant
Sundry income
EXPENDITURE
Costs of generating income
Wages
Social security
Pension costs
Promotion
Events
Charitable activities
Wages
Social security
Pension costs
Travel
Total incoming resources		 RestrictedUnrestricted
£
£
2,000
162,625
162,940


-
- 25,935
- -
2,000
351,500
-
-
41,197
358,196
- 399,393
-
-
-
-


-
66,533
-
-
6,756
1,348
-
4,583
-
12,952
-
92,172
-
204,589
-
-
20,322
5,115
-
25,162

2,000 750,893
 2022
£
164,625
162,940
25,935
-
353,500
41,197
358,196


399,393
-
-
66,533
6,756
1,348
4,583
12,952
92,172
204,589
20,322
5,115
25,162
752,893		 2021
£
208,778
167,218
25,300
-
401,296
45,625
445,758
490,793
7,032
-
26,260
3,076
555
12,470
7,111
49,472
212,225
18,848
4,643
28,200
899,121

This page does not form part of the statutory financial statements.

Page 26

ARTICLE 25 DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022

Charitable activities
Sundries
Mission expenses
Foreign travel expenses
Visas, vaccinations & medical
IT and computer consumables
General materials etc
Governance costs
Legal and professional fees
Support costs
Rent, rates and water
Wages
Social security
Pension costs
Office services
Recruitment & HR
Insurance
Telephone
Postage and stationery
IT and computer consumables
Depreciation of tangible assets
Finance
Bank charges
Bank interest
Total Expenditure
Net Income over expenditure		 RestrictedUnrestricted
2022
£
£
£
-
-
-
25,317 155,601180,918
-
9,009
9,009
-
-
-
-
-
-
-
-
-
25,317
419,798
445,115
-
3,972
3,972
-
3,972
3,972
-
143,568
143,568
- 46,27446,274
-
-
4,937
946
4,937
946
-
909
909
-
4,320
4,320
-
7,677
7,677
-
6,686
6,686
-
1,794
1,794
-
17,457
17,457
-
850
850
-
235,418
235,418
-
137
137
-
650
650
25,317
752,146
777,463
(23,317)
(1,253)
(24,570)
2021
£
-
269,187
7,553
735
-
-
541,391
7,123
7,123
153,014
51,250
6,099
1,053
191
445
6,369
7,640
903
12,559
4,034
243,557
60
108
841,709
57,410

This page does not form part of the statutory financial statements.

Page 27