Hand In Hand Internatlonal Charlty No.. 1113868 Hand In Hand Internatlonal Rèport and Flnanclal Statements For the yèar ended 31 March 2021 Hand In Hand Internatlonal status The organlsallon is a charlty registered by trust deed In England on18 February 2006. Charlty Number 1113868 Reg551ered offlce and operatlonal addiess 5th Floor. Caparo House, 101 103 Baker Street London WIU 6LN Honorary officers Bruce Grant (Chalrman) Percy BarnevSk (Honorary Chalrman) - reslgned8th March2021 )hn Barrett Madhvl Chanral Carsten Jorgenson Lars Josefsson Paola Uggla stephanle Whltller Senlor offlceis Dorothea Arndt- Chlef Executlve Nlck Aveling - Head of Communlcatlons Bob Cooke- Chlel Flnance Offlcer- reslgned Auoust2021 AmalSa Johnsson - DSrector of Programmes Joe Dyson- Head of Phllanthropy Auditors Buzzacott LLP Chartered Accountants 130 Wood Street London EC2V 6DL Hand In Hand Internatlonal Contgnts of the flnanclal statements For th& year ended 31 March 2021 Legal and 2Klmlnlstratlve deialls Oblectlves and actlvltles Achlevements and Performance Plans for future perlods Report of the Trustees 8-12 Report of the Independent Auditors 13-16 statement of Flnanclal Actlvltles 17 Balance Sheet 18 Cash Flow Statement 19 Notes to the Flnanclal Statements 20-30 Hand In Hand Internatlonal TRUSTEES, ANNUAL REPORT STRUCTURE AND GOVERNANCE The Trustee5 present thelr repoit and the audlled Ilnanclal statements for the year ended 31 March 2021. The accounts have been prepared In accordance wlth the ac¢ountlng pollcles set out therein and comply wllh the charity's governing document. appllcable laws and Accountbng and Reporting by Charilles., Statement ol Recommended Practice, applkable to charities preparing Ihelr accounts In accordancè wlth IhÈ FSnanclal Reportlng Standard appllcablè In the Unlted Klngdom and Republlc of Ireland (FRS102). OBJECTIVES AND ACTIVITIES Vlslon Our v151on Is a world where èvery woman has the power and the mèans to ralse herself and her famlly out of poverty. Mli$lon Our mlsslon Is lo change 1Sve5 by empowerlng women to beal the odds and succeed as enlrepieneurs. Alm5,1s5ues you tackle, chanq•s you seek to mak• Women lace barrlers that men don't. Rlghl now, In communltles across the developlng workl. ioughly 400 mllllon women and glrls live below the poverty Ilne of US $1,90 a day, trapped by restrlctlve norm5 and attitudes that koep thèm from earnlng the51 own Incomes, controlllng Ihelr own assets and maklng decisions lor themselve5. Inequallty between men and women Isn't dlsllnct from poverty, In other words It causes poverty. And for as long as barrlers lo women's empowerment are allowed lo exlst, people wlll go to bed hungry. If a lack of women's economlc empowerment Is the problem, women's enlrepieneur5hSp Is the solullon. Empowerlng women entrepreneurs15 a process - cenlred on buslness, vocallonal and Ilfe 5kllls tralnlng - that helps women lake Control ol their Ilnances and speak up and be heard In the home. Ultlmalely It's not just about money but power, and maklng sure women have more ol both to seize their own de511nSes, make themselve5 heard and ralse thè next generation out of poverty. At the veiy least, our programme5 seek to recognlse women's unlque challenges. Sometlmes that's a5 slmple as schÈdullng Irèlnlng so It doesn't clash wSth chlldcare to create a double- burden. Other tlmes. It means provldlng leadershlp skblls Iralnlng to help women speak up, overcome challenges and clalm the rlght to make declslons. But it addressing the barriers that limit women is good, there's one thing we like even better.. breaking them. And to do that, we have to work with men. Across our network, nine out 0110 Hand In Hand members are women. The rest are thelr husbands, brothers and sons. Increasingly, we're worklng wlth men to change thelr Ideas about women's contributlons to the communlly Hand In Hand Internatlonal and economy, and their own contrlbutlons al home. Because when the playing fleld is evened, women can flourish. And when women flourish, whol& familles, communitles and economles wln. Strategles for achlevlng alms We wwk four key stages. Flrst, we create Sell~Help Groups where women support each other, save together and learn together. Next, we provlde buslne5s and skills Iralnlng that helps make the most of Ihelr potential. Thlrd, we make 5uie they can get small loans and the tools they need to gèt started. Last. we help scale up thelr businesses, reachlng blgger markets and stronger supply chains. How wa mwsyr• 511CC•SS Although empowerlng women entrepreneurs Is always our prlmary alm, Hand In Hand's programmes vary wldely. from those focused excluslvely on enterprises and lob5 to those that also address Issues Includlng cllmate change, dlsplacement and more. So It's no surprlse we employ a wlde range ol metrlcs to measule our succes5. At most baslc level, wè measure outputs Includlng the number of mlcro-bu5inesses our members create, the number of people those buslne55es employ and the number ol family member5 each Income 5UPPOIts. Work Is also ongolng to roll out a set of four unlvefsal Indlcators- In Ilne wlth the UN Sustalnable Development Goals - that wlll allow us lo measure and compare outcome5 both wlthln and across our prolec15, and benchmark agalnst our peers, These metrlc5 are.. Income.. Increase In member5, business profll. Sustalnablllty.. Members, èntèrprise survlval rale one year on. Rgslllenc•'. Proporllon of members wllh the capacity lo d@al wllh a Ilnanclal shock, wllhoul borrowing money, or 5elllng a559ts. Wornen's bargalnSng power: proportion of women members who partlclpate In housohold doclslon-maklng Slgnlflcant actlvltles Wlthln the network, Hand In Hand Internatlonal (the UK-reglstered charlty) concentrates on flve slgnllScant activltle5 that support osjr longer-term job creatlon targets. Ralslng funds Demonslratlng results Sharlng knowledge Bulldlng capaclly Communlcatlng effectlvely These flve areas complement each othor. Results and knowledge galned from programme ImplementalSon and evaluatlon arè crillcal for effectSve fundralslng and 5upporllng nèw and curront partners. Capaclly building is critlcal for eflectlve programme management. dellvery and expanslon, as well as for financial control and safeguardSng. And effect5ve communicallon Ss Important for fundrai51ng. attra¢tlng new partners and advocating for effectlve lob creatlon pollcles. Hand Sn Hand Internatlonal Our focu5, of course, Ss on fundrai51ng. But In order to make our fundralslng more effective, we also work In other areas lo fund and support our partners.. programme evaluation, impact assessment and analy515 that valldate results and help us learn., dissemlnallng results. lessons learned and other forms of knowledge,. capaclty bulldlng,. and preparlng more effective communlcatlon and marketlng malerlals. ACHIEVEMENT5 AND PERFORMANCE Nelwork-wlde, Hand In Hand created and enhanced 286.855 lobs In 2020-21. Herg In the UK, at Hand in Hand International, we set ourselves the followlng goals In last year's Trustees, Report: Secure ot least US $IM In new funds In 20/21 forAfghanlstan. Ideally multi-year Although we surpassed our overall fundralslng goal - by a slgnlflcant margln - there remalns some way lo go on achlevlng thls speclflc goal. Duilng 20121, we ra15ed and banked $737,000 In new funds for Afghanistan. Slnce111 Apill 2021, a flve-year $1.5M programme wllh the Dan15h government has beon gSven the go-ahead. Secure £1.2M In fulfy unrestrfcted lundlng and work toward5 lull flnanclal sustalnablllty by Increaslng our core recovery from 8percent to 15percent. Income for core UK expendlture wa5 El.3M, exceedlng our target of £1.2M. Core recovery ha5 Increased fiom 8 percent to 13,6 percenl. Overall, Sn 2020121. we have secured US $16.7m, of whlch US $9.2m was banked In 20121 and US $7.4m wlll be banked In future years. An achlevemenl that exceeded oui goal durlng an excepllonally challenglng year. Ensure all our pmpos31s are adlusted for the barrlers faced by women entrepreneurs,, and four programmes secured to go even fvrtherln reduclng these barrlers, We fell short of Ihe first goal wlth 37 out of 58 (64 percent> of our proposals adSusllng for the barrler5 faced by women. Th15 wa5 largely Ilnked to Covld-19 response proposals, whlch were developed at short notlce and locused on health and food 5ecurlty for communltles where we work. However, we are dellghted to have proposed elght programmes to go furlhgr and reduce the barrlers women face. Run two acceleratlon programmes wlth a vlew to helplng buslness-women and men gmw their enterprlse Irom $1.90 to $5 a day In tlme- the average GDPper caplta in KÉinya. Thls goal was achleved. By March 2021, we were Set to run two acceleratlon programmes In Kenya and Tanzanla that meet th15 5peclflc goal, In partnership w1th two lèadlng corporate soclal impact partners. In total, these programmes will reach 30,200 budding entrepreneurs. The programmes will allow mlcro-entrepreneurs in urban 5ellings and in three rural value chalns (dalry cow, poultry and banana) lo accelerate their enterprises beyond subsistence, Hand in Hand International Employer of Choi￿.. Act as an employer of choice andestabllsh our reputation wlthln the sector to retain andattract top talent. We used the opportunity to learn from remote worklng durlng the lock-down to Introduce a new work from home policy and annual 360 revlèws with our colleague5 across the network In Afghanistan and eastern Afrlca for the firsl time. PLANS FOR FUTURE PERIODS Future, alm8, obl•ctlves and actlvllles plann•d Hand In Hand Internatlonal's prlorltles for the comSng Ilnanclal year, sèt durlng our annual stialeglc revlew, are.. Ra15e US $16.3M ol whlch $9.IM wlll be bankedln 2021/22 and US$7.2M in subsequentyears Ourlng 2021/22, we wlll keèp the fundra151ng momentum on track and ralse $16.3M over all lof whlch 56 percent banked In 21/22 and 44 percent In followlng years), Secure at least US $IM lor2021ft2 In Afghanlstan. Recent events in Afghanlslan mèan our support15 needed now. more than ever. to help ordlnary Alghans beal poveTty, Insecurlly. dSsplacemenl and dlscrSmlnatlon agalnst women. That's why we want 10 secure at least US $IM for an (Ideally) mulll-year programme. Ralse US$I.SM (£1,24M) unrestrlctedfundlng Hand In Hand Internatlonal's fundralslng pays for our network partners, programmes. Our sophlstlcatèd monltorlng and analysls. palred with our communlcatlons and programmes suppoil. improves Ih05e programmes and makes that fundralslng posslble. Start ralslng funds foroneaddltlonalcountry offlce Our m1551on to change Ilves by empowerlng women to beat the odds and succeed as entrepreneurs Is a global m1551on. To that end, we wlll begln ralslng funds to expand our footprint and brlng our women'5 economlc empowerment programme lo a wlder audSence. Publishlng what we have learnedon Women¥ Economlc Empowem?ent with15-plu5 years. experlence In somè of the world's most challenglng conlexls, Hancl In Hand knows what women entrepreneur5 are up agaln5t. We wlll share our learning5 wlth the wlder sector to Inform and enable other organlsalions to help women selze thelr own destlnles, make themselves heard and ralse the next generatlon out ol poverty. Incorporate two Women s Economic EMpOwern￿￿tbestpract1ceS Into newprogrammes We w511 put our own learnlngs to good use, maklng sure le$50ns learned are put Into practlce In new programmes. Hand In Hand Internatlonal Governlng DocuThnt The charlly wa5 reglstered by trust deed on18 February 2006 and registered as a charity on that dale. Recrultmenl and Appolntment of Trn5te•s As set out in the Trust Deed, the Board of Trusteos nomlnates the Chalr of the Trustee5. The Board ha5 powers lo appoirbl additional Trustees as It conslders In-llne with skllls requlred. Inducllon and Tralnlng ol New Truslqes New Tru51ees ale considered on the basls of any gap5 In the skllls of the board. They are Snvlled to mÉ8t the exisllng Tru51ee5 and senior members ol staff and famillar15e themselves wllh the work of Hand In Hand Internatlonal. Further Ir3inlng 15 provlded on an on-golng basls In Ilne with the Identlfled needs of Trusteès. Trustees sign a conlllct of interest declaratlon each year, Trustees recelve safeguardlng tiainlng and slgn the safeguardlng code ol conduct. Publlc B•neflt ststem•nt The Trustees conflrm they have complled wlth Secllon 17 of the Charltles Act 2011 to havo due Tegard to the Charlly Comm15slon's general guldance on publlc benellt, "Charllles and Publlc Benellt" Rlsk Management The Trustees have a duty to Identify and revlew the rlsks to whlch the charlly Is exposed and to ensure appropyiale controls are In place to provlde reasonable assurance agalnst fraud and error, The Trustee5 have assessed the malor r15ks lo whlch the charlty15 exposed, In partlcular those relatSng to operatlonal areas of thè charlly, Its Investments and flnances. A wrltten rlsk register Is In place and revlewed at every Board meetSng. Thls Ilsts the key 15sks the Charity faces and puts In place mltlgallng controls. The Trustees belleve that by monilorlng reserve levels, by ensurlng controls exlst over key Ilnanclal system5 and by examinln9 the operatlonal and buslness Tlsks faced by the charlly, they have establlshed effectlve systems lo millgate thosg rlsks. The Trustees are contlnulng to monitoi the funding rlsk related to the expected economlc slow- down lollowSng the COVID-19 pandemlc. FundraSslng performance In the Ilnanclal year lo 31 March 2021 was posltlve wlth an Increase In Income compared to the pievl¢Jus year, despite the COVID-19 pandemic. Howevor, there conllnue5 to be a potentlal rlsk to donatlons. As a mltlgallon. the organSsatlon wlll contlnue lo manage core costs t￿htly, wlth quarterly budget ieviews, and adluslments If requlred. The organlsatlon has also begun Investlng reserves in fundralsSng capacity and wlll contlnue to do 50 In th¢ new flnancial year, Tallban forces have taken control ot Afghanlstan In the Summer of 2021. Hand In Hand Inlernatlonal's network partner Hand In Hand Afghanistan has been glven permlsslon to contlnue operations to dellver projects and support vulnerable communllies. However. the sltuatlonls changlng rapldly. As a mlligatlon measure, the Trustees and management team are monitorlng the slluallon closely and keeplng In regular contact wSth the Chabr and managoment team of Hand In Hand Afghanlstan. Funders to programmes In Alghanlstan are regularly Informed of any changes, delays or rlsks. In July 2021. a new five-year programme In Afghan15tan lunded by the Danlsh International ald agency Danlda was approved and the plpellne of futuie fundlng to Alghanlstan Is good, Hand in Hand Internatlonal Investment Pollcy Hand In Hand International receive5 Income for ongolng projects over a three to five year tlme horizon a[￿ budgets to expend all antlclpaled income, except lor retaining a prudent amount In reserves. It has no permanent endowment and provides for caplial expendllure wllhln Its budget. Consequently, the Trustees do not conslder It prudent to Inve51 income for the longer term. Its policy is lo ietain funds a5 cash and place them on bank deposit al the best rates avallable. R•mun•ratlon of Stall In 2018 the Charlty commltted to Implement the recommendatlon5 of the NCVO InquSry on Executlve Pay published In Aprll 2014. As a result, the Charlly updated Ils remuneratlon polky and is pleased to make the dlsclosures below. The governlng prlnclples of the Charlty's remuneratlon pollcy are as follows.. To ensure dellvery of th* Charlty's objectives To attract and retaln a motlvated workforce wlth the skllls and exper115e necessary for organisallonal effecllveness That remunerallon should be equitable and coherent across the organlsatlon To take account of the purposes, alms and values ol the Charlly To ensure that pay leve15 and pay Increases are approprlate In the contexts of the Interest of our beneflclarles. Salarles for exlstlng and new roles are benchmarked agalnst sector salary reports to ensure that they are wllhln acceptable ranges for the not-for-proflt sector. S•nlor Ex•cutlv• Remunerallon In relallon to decldlng remuneialSon ol tha Charlly's senlor executlves, the Charlty conslders the potentlal Impact of remuneratlon levels and structures of senlor exe¢ullves on thè wlder Charlly worklorce and will take account of the followlng addltlonal prlnclples: To ensure that the charlty can access the types of skills, exper1ences and compelencles that It needs In Its senlor staff, the specillc scope of these roles Sn the Charlly and the Ilnk to pay. The nature of the wSder employment oller made to senlor employment where payls part of a package that Includes personal development. personal fullllment and a￿o(latIOn wlth the publlc benefit dellvered. The Charlly recognlses that It Is. on occaslon, posslble lo attract senloi execullves at a d15CQUTlt to public sector or prlvale sector market rates. In Ilne wlth tho recommendallon5 of the NCVO Inqulry Into Exècutlve Remuneratlon publlshed In Aprll 2014, the charity has declded to disc105e the remuneratlon ol the Executlve Team comprising the Chief Executlvo and the other executive dlrectors of the Charity. Remuneratlon lor the year ended 31 March 2021 comprlsed salary and penslon contrlbutions. Golng Concern The trustee5 have assessed the use of golng concern and have consldered posslble events or condltlon5 that mlght cast 5ignllicanl doubt on the abillty of the charity to continue as a golng concern. Hand in Hand Intèrnatlonal The Trustees have made this assessment for a period ol at least one year from tho date of the approval ol these financlal 51atement5, In parllcular, the Truslees have considered the effect of Covld-19 on.. the charSty's abillly lo ralse income and the possible level ot addllional support requlred by our benellclarles. Budget lifies lof personal protecllve equlpment IPPE) have been added to project budgets to ensure the safely of staff and beneflclarSes. Expenditure has been monllored and savings have been made on travel and ofllce expenditure, includlng thÈ negotiatlon of a significant reduction in rent In our UK ofllce. Funder5 have contributed generously lo COVID-19 response prolects to dellver food packages and PPE, and inform communitie5 In Afghanlslan, Kenya and Tanzanla about the spread of COVID-19 and pfeventalive measures. AddStlonally, the Trustees have considered the Impact of the polllical sltuatlon In Alghanlslan on the charity's ability to conllnue fundralslng lor and supporting projects In Afghan15tan. The charlly's network partner In Afghan1slan has permlsslon to conllnue operatSng and Is In regular contact wllh the management team and trustees In the UK. New multl-year lundlng from Danlda, the Danish International ald agency, has been secured In July 2021 and there Is a good plpeline of lundlng to the country. Hand In Hand Alghanlslan have taken steps to reduce core experbdllure, Ihls In turn reduces the rlsk to Hand In Hand Internatlonal's unrestrlcled re5efves. The Trustees are In the proces5 01 updallng the charlty's new 51raleglc plan lo 2026, refocuslng our lundraislng actlvltles. The new straleglc plan Includes ambltlous goals to Increase the charlty's income and Impact, The cash flow to 31 March 2023 Indlcales that the char5ty wlll contlnue to be able to meet its financial commltment5 through the year and for a perlod of at least one year from the date ol approval of these Ilt)anclal 51atemenls, REFERENCE AND ADMINISTRATIVE The Trustees In office durlng the year were.. Mr. Bruce Grant Mi. Percy Barnevlk- reslgned on 8th March 2021 Mr. John Barrètt Dr MadhvS Chanrai Mr. Car51en Jorgensen Mr. Lars G Josefsson Mrs. Paola Uggla Ms. Stephanle Whitller FINANCIAL REVIEW Income increased to £6,7m In tho year to 31 March 2021. Thls Is an Increase of 36% over the prevlous year. Our ft¢ndralslng ratlo has remalned at a simllar level of 9%. R•s•rves Pollcy Unreslrlcted Reserves Stand èt £702.724 at 31 March 2021 (31 March 2020.. £1268,251). Free unrestricted reserves ale £669.936 (31 March 2020: £1,231,113) and free reserves (excludlng tanglble Ilxed assets) stand at £669,926 at 31 March 2021 (51 March 2020: £1.231,113). io Hand In Hand International Hand in Hand International's reserves policy Ss lo hold slx rnonths. core expenditure In unre5trlcted re5erve& equlvalent to around £650,000. ThSs has been met as at 31 March 2021. We have malntalned deslgnaled reserves of £1,426,986. £710,217 of thi5 15 deslgnaled lor EIF loans in Kenya. The remalnin9 £716,769 is deslgnated In support of Hand In Hand International's strategic plan for 2021-2026. Thls fund wlll be Invested In addltlonal fundralsing and programme capaclty over the tlve year perlod to facilitate substantial growth of Hand In Hand's reach and00205Mpact. Furthor delalls ol the new strateglc plan will be detalled In the 2022 tNStees annual report. Restricted Income and expendlture Is shown In Note14 to the accounts. Fundral¥lDg Hand In Hand does not employ Ihlrd party fundralsers and does not fundralse wlth the general publlc. We follow the Charlty Commls51on's and the Institute of Fundralslng's guldan¢e on best practlce In fvndra151ng. Durlng the year there were no complaSnts about fundralslng. Trustees, Responslblllt5es In relatlon to the Flnanclal Statements The trustees are responsible lor preparlng thè Trustees, Repoil and the flnanclal statements In accordanco wlth appllcable law and Unlted Klngdom Accountlng Standards. (Unlled Klngdom Generally Accepted Accountlng Practlc?.) Charlty law requlre5 tnjslees to prepaie flnarsclal slalements for each flnanclal year which glve a true and falr vlew of the slate of the alfalr5 of the charlty and of Its Income arsd expendlture lor that perlod, In preparlng these Ilnanclal statement5, thè trustèes are requlred to.. select sultable accounllng pollcle5 and then apply them conslstently: observe the methods and prlnclples of the Charltle5 SORP., make judgements and estlmales that are reasonable and prudent; slate whether applicable accountlng standards, Including FRS 102, have been followed, sublecl to any materlal doparluTes d15closed and explalned In the Ilnancial 5talements,' slate whether a Statement of Recommended Practlce (SORP) applles and has been followed. sublect lo any material departures whlch arg explained in the flnanclal statements., prepare the flnanclal statèments on the golng concern ba515 unle55 It Is Inapproprlate to presumè that the charlty wlll continue In buslnes5. The trustees ale responslble for keeplng proper accountlng records that dlsclose wllh reasonable accuracy at any time the financial position of the charlty and enable them to ensure that thè flnanclal statements comply wlth the Chaiities Act 2011. They are also responslble for safeguarding the a5set5 ol the charlty and hence for taklng reasonable steps for the prevenllon and delectlon of fraud and other Irregularltles. li Hand In Hand Internatlonal The trustees are responslble loi the malnlenance and Inlegrlty of the corporale and flnanclal InFormat￿On Included on the charltable company's webslte. Leg151atlon In the Unlted Klngdom governing the preparatlon and disseminatlon of tlnanclal statements may differ from leglslallon In other lurlsdlctloTrs. In so far as the trustees are aware.. There Is no relevant audlt informallon of whlch the charltable company's audltors are unaware: and The trustèès have taken all steps that they ought to have taken lo make themselves aware of any relevant audlt Informallon and to establish that the auditors are aware of that Informailon. Day to day management of the chailty Is delegated to Dorothea Arndt and the senlor managoment team. Appolntment of Audltors Buzzacott LLP was appolnted as auditor on 23rd June 2021 followlng a tender proce55. Approved by the Trustees and slgned on thelr behall by: 95,1.22 Chalrman Hand In HarKI Internatlonal 12 Hand in Hand Internatlonal Ind¢pvndent audltor's r•porl to the trustees ol Hand In Hand Internatlonal OplnloTr We have audited the accounts ol Hand In Hand Internallonal (thè 'charity') for the year ended 31 March 2021 whlch comprlse the statement of financial actlvi1Se& the balance 5hoet prlnclpal accounting policies and the notès lo the accounts. The financlal repoiilng framework Ihat ha5 been applled In their preparatlon Is applicable law and United Kingdom Accourbtlng Standards. Includlng Flnanclal Reportlng Standard 102 'The Flnanclal Reportlng Standard applicable In the UK and Republic of Ireland, (United Kingdom Generally Accepted Accountlng Practlce). In our opinlon, the accounts: • glve a tiue and fail vlew of the State of the charity's alfalrs as èt 31 March 2021 and ot115 Income and expenditure lor the year then ended., have been pioperly prepared In accordance wllh Unlled Klngdom Generally Accepted Accountlng Pracllce., and have been preparèd In accordance wlth the requlrements of Ihe Charltles Act 2011. Basls lor oplnlon We conducted our aud5t In accordance wlth Internallonal Standards on Auditlng (UK) (ISAS IUK)) and appllcable law. Our responsibllllles under those standards are further descrlbed In the audlior's responslbllStlès for the audit of thè accounts sectlon of our report. We are Independent of th& charlly In accordance wlth the ethlcal requlremenls that are relèvant to our audit of the accounts In the L)K, Includlng the FRC'S Ethlcal Standard, and we have lulfllled our other elhlcal respon51billtl•s In accordance wllh these requlremen15. We belleve that the audlt evldence we have Dbtained Is suflSclent and appropilate to provlde a basls for our oplnlon. Conclusloni r•latlng to golng concern In audi15ng thé accounts, we have concluded that the truste¢s' use of the golng concern bas15 of accountlng In the preparation ol tho account51s appropriate, 8ased on the work we have performed, we have not IdenlSfled any material uncertalntles relatlng lo events or condltlons that, Indlvldually or collectlvely. may cast slgnillcant doubt on the charity's ablllty to continue as a golng concern for a perSod ol at least twelve months from when the account5 are aulhorlsed lor Issue, Our r@sponslbllltle5 and Ihe responslbllltle5 01 the trustees wllh respect to golng concern ale described In the relevant sectlons of Ihls report. 13 Hand in Hand International Oth•r Informatlon The trustees are responslble for the other Informatlon. The other informallon comprlses the Information Included in the annual report. other than the occounls and our auditor's report thereon. Our oplnion on the accounts does not cover the other Information and we do not express any form of assurance conclusion thereon. In connectlon wlth our audlt of the accoun15, oui responslbillty Is to read the other Infoimatlon and, In dolng so, conslder whether thè other Informallon Is materially Inconslslenl with the accounts or our knowle¢Jge obtained In the audlt or olherwlse appears lo be materlally mlsstated. If we Idenllly such maleilal Incon515tencle5 or apparent malerlal mlsstalements. we are requlred to delermlne whether there Is a malerlal m15Statemenl In the accounts Dr a materlal mlsstalemenl ol the other Infoimatlon. If, based on the work we have perlormed. we conclude that there Is a materlal mlsstalement of thSs other Inforntstlon, we are required to report that fact. We have nothlng to report In thls regard, Matters on whlch we ar• requlr•d to repoit by •x¢epllort We have nolhlng lo report In respect of the followlng matters In relatlon to whlch the Charltles Act 2011 require5 U5 to report to youll, In our oplnlon.. the Inlormatlon glven In the trustee5' annual report Is Inconsistent In any malerlal respect wllh the accounts.. or • sulflclenl accountlng records have not been kept., or • the accounts are not in agreement wlth the accountlng records and returns., or * we have not received all the Information and explanatlon5 we require for our audll. Responslbllltlos of Irvit••$ As explaSned more fully in the Iruslees, responslbSllties statement, the trustees are responslble for the Pfeparalion of the accounts and lor belng satlsfled that they glve a true ancl lalr vlew, and for such Snternal control as the trustees determlne Is necessary to enable the preparatlon of accounts that are free from materlal mlsstatement. whether due to fraud or error. In preparlng the account5, the tiustees are responsible for assesslng the charlty's ablllty to contlnue as a golng concern, dlscloslng. 35 appllcable, matter5 related lo golng concern and uslng the golng concern b851s of accountSng unless the trustees either intend to liquldate the charity or to cease operallons, or have no reallstlc alternatlve bul to do so. Auditor's r05ponslbllltles for the audlt ol th• a¢¢ounts Our oblectlves are to oblaln reasonable assurance about whether the accounts a5 a whole are free from mateilal mlsstalement. whether due ID fraud or error, and to Issue an audllor'5 report that includesouropinion. Reasonable assurance Isa highlgvel of assurance, but is not a guarantee that an audit conducted In accordance wllh ISA5 (UK) wlll always detect a mateilal m1s5talefflent when It exlsls. Mlsstalements can arlse from fraud or error and are consldered materSal If, ndSvldually oi In the aggregate, they could reasonably be expected lo Influence the economlc declslons of user5 taken on the bas15 of these account& 14 Hand in Hand International AudltQT'¥ rg$ponslbllltles fw the audlt of the accounts (contlnued) lllegularllies. Includlng fraud, aro Instances of non.compllance wllh laws ènd regulatlons. We deslgn piotedures in line wlth our iesponsibilitles, outlined abc*ve. to detect material mI55tatemenls in respect of Irregularitles, Including fraud. The extent to which our procèdures are capable of delectlng irregularltles, includlng fraud Is detailed below.. Our approach to Identlfylng and assessing the rlsks of materlal mlsstatement In respect of Irregularltles, Includlng fraud and non-complSance with laws and regulatlons, was as follows: the engagement partner ensured that the engagement team collectlvely had Ihe approprlale competence, capabillties and skills lo Identlfy or recognise non-compllance wSth appllcable laws and regulatlons., we Identllled the laws and regulations applScable to the charlty through dlscusslons wlth management. and from our knowledge and experience of the sector,. we focused on speclflc laws and regulatbons whlch we consldered may have a dlrecl material Èflett on the flnanclal statemènts or the operatlons of the Charlly, Includlng ¢Yata protecllon leglslatSon. antl-brlbery. saleguardlng. employment. health and safety leg151atlon', we assessed the exlenl of cornpllance wlth the laws and règulatlons Identllled above through maklng enqulrles ol management and In5pecllng legal correspondence.. and Identlfled laws and iegulatlons were communlcated wlthSn the audlt team regularly and the team remained alert to Instances ol non-compllance throughout th& aLKIIt. We assessed the susceplSblllty of the Charlly'5 linanclal statements to materlal mlsstatement, Including obtalnlng an underslandlng ol how fraud mlghl occur. by.. maklng enqulrles of management as to where they consldered there was susceptlblllty to fiaud. IheSr knowledge of actual, suspected and alleged fraud., and conslderlng the Internal controls In place to mltlgate rlsks of fiaud and non d) Expenditure Is Included In the Statement of Financial Activltles on an accruals basls, Incluslve of any V AT whlch cannot be recovered. Expendlture Is recognlsed once there is a legal or constructlve obligation to Iransler economlc beneflt to a thlrd palty, It15 probable that a transfer of economlc benefits wlll be requlred in settlement and the amount of the obltgatlon can be measurèd rellably. The majority ol costs are dlreclly attrlbutable to speclfic actlvilies. Cerlaln 5haTed costs are apporlloned to attivities in furtherance of the objects of the charity and ralsing funds. Olflce costs and property related costs are apportloned on the proportlon ol floor èrea occupied by the activity. Staff costs and offi'ce cost5 are allocated In the same proportlon a5 dlrectly altrlbuled staff costs. Costs Incurred for the management ol the charity's assets, organlsallonal management and compllance wlth constitutional and statutory requlrements are treated as support costs and allocated to charitable actlvltle5. Depieclat1on Is provlded at rates to write off thè cosl of each ass&t by equal annual In5talments over Ihelr expected useful Ilves as follows. Ofllce equlpment Leasehold improvements 4 years 10 years Assets cosllng more than £5¢X) are capllallsed. Restrlcted funds are lo be used lor 5peclflc purposes as lald down by the donor. Expendllure whlch meets these crlterla Is charged to tho fund. 9) Unrestrlctod funds afe donatlons and other Income recelvable or generated for the objects ol the charlty. h) Deslgnated funds are also unreslrlcted funds bul have been de519naled by the Irusleés for a particular purpose and Includes the nel book value ol tanglble Ilxed assets used by the charlty In Its operational activltles. Rental payments under operalSng lease5 are charged as expendltur& as Incurred over the term of the lease. The charity operates a defSned contrlbutlon penslon 5¢heme. The assets of the scheme re held 5epaTately from Ilv)se of the charlly In an Independently adminlstered fund. The penslon C05t Char￿ represents contributions payable under the scheme by the charity to the fund. The charlly has no Ilabi1Sly under the scheme other than for the payment of those contrlbulSons. kl Monelary assets and Ilabilltles In forelgn currencles are translated Into sterllng at the rates of exchange rullng at the balance sheet date. Transactlons In lorelgn currencies are translated Into sterllng at the rale of exchange rullng al the dale of transacllon. Exchange dlflerences are taken into account In arrlvlng at the net Incomlng resources for the year. 21 Hand In Hand International Notes to the Flnantlal Statements for the year ended 31 March 2021 Accountlng pollcies (continued) Crltlcal accounting estlmates and areas of ludgement In the vlew of the trusleÈs In applying the accounting pollcle5 adopted, no ludgements were required that have a signiflcant ellect on thè amounts recognlsed In the Ilnanclal statements nor do any estimates or assumptions made carry a slgnlflcant rlsk of material adlustment in the next flnanclal year. other flnanclal Instwments Cash and cash equlvalenls Cash and cash equlvalents Include cash at bank5 and short- term deposlt5 wlth a malurlly ol three months or less. Debtor5 and Crèdltors Debtors and credllors recelvable or payable wlthln one year of thè reporting date are carrled al Ihebr Iransacilon prlce. Debtors and credltors thal are receivablè or payable in more than one year and not subject to a market rate of Interest arè measured at the prÈsent value ol the expected future recelpts or paymènt dlscounted at a market rate of Interest. Concessionary loan5 arÈ loans made dlrectly Irs the pursuSt of the charStable puiposes ol the entSty. These are In the form ot loans and ale held at cost, kss any provlslons for non- recoverablllty, Flnanclal Instruments The charlty only holds baslc flnancSal Instruments as deflned In FRS102. The flnanclal assets and flnanclal Ilabllltles of the academy trust and Ihelr measurement basls are as follow5.. Financlal assets trade and other debtors are baslc flnanclal Snslruments and are debt Inslrurnents measured at arnortlsed cost as delalled In note 9. Prepayments are not flnanclal nslrumenls. Conce551onary loans are measured at cost less repayments made - notè 8. Cash at bank- Is classllled as a basic flnancial Instrument and Is measured at face value. Flnanclal liabllllSes - trade credllors, accruals and other creditor5 are Ilnancial Instrument5, and are measured al amortlsed cost as detailed In note 10. Taxatlon and social security are not Included In the flnanclal instiuments dlsc105ure dellnltlon. Deferred Incomels not deemed to be a Ilnanclal Ilablllty, as the cash settlement has already taken place and there Is an obllgatlon to dellver Services rather than cash or another financlal instrument. 22 Hand in Hand International Notes to the Financial Statements for the year ended 31 March 2021 2. Donallons and Grants 2021 Total Restrlcted Unre5trlcted De51gnaled Corporate foundatlons Corporate donors Indlvidual donations Governments and Instltutlon5 Trusts and Foundatlon5 Events 3,485,559 846.466 153,445 489.534 187,027 345,754 3.975.093 1,033,493 499.199 347,524 582,128 63,106 194.231 23,720 410.630 776,359 23,720 5.415.122 1.303,372 6,718,494 Government grants Include fuilough Income of £41,268 (2020.. £0). Included wlthln Donatlons from Corporate Donors are Glfls-In-Klnd of £90.985 (2020,. E2.598> and Ihe correspondlng expendlture Is Included In support costs (Note 4). Income from corporate foundatlon5 Includes In¢om8 Ot GBP 643,180 (EUR 717,467) from the IKEA Foundatlon lor a multl-year prolect to develop Hand In Hand'5 capaclty In clrcular economles and reqeneratlve agrlculture. 2020 Total Restilcted Unrestrlcted Deslgnated Corporate foundatlons Corporate donors IndlvSdual donallons Governments and Instltutlons Trusts and Foundallons Events 1,875,100 1,082,713 49,050 1.875.100 1,110,177 542,509 27,464 243.459 50,000 475,100 81.324 204,705 475.100 519.733 596.327 438,409 391,622 3.767.992 1.100.954 50.000 4.918.946 3. Net Income Net Income for the charlly Is stated after charglng: 2021 2020 Depreclallon Audllof's Remuneratlon: AudSt Opeiating lease payments 8.209 10,753 10.680 85.241 11,547 86.640 23 ty ￿ rj D os oooo 3332r. 0000 7JDiJD > 7JDDiS < 7JD u) Hand in Hand Internatlonal Notes to the Financial Statements for the year ended 31 March 2021 2021 Supportlng people in Fundralslng Afghan15tan Supportlng people in Kenya Supporllng people Tanzanla All costs Analysis of Support C05t5 Building costs Trademarks Office c05tS Audlt fees Legal and professlonal Trustees. expenses staff and olher consultancy Travel costs Fundralslng costs Forelgn exchange losses 120,139 288 54.067 16,298 14,417 34 6.487 1,956 84,097 202 37,847 11,408 21,625 52 9,733 2,934 93,512 120 11,222 14 65.458 84 16,832 22 827,785 (860) 19,533 482.214 41,469 (103) 241,899 {602) 62,205 (155) 19,533 375,902 45,108 263.133 67,661 1.506.784 501.747 120.604 703.526 180,907 2020 Supportlng people in Fundralslng Afghan15tan Supportlng people In Kenya Supportlng people Tanzanla All costs Analysls of Support Costs BulldSng costs Trademarks Ofllce costs Audit feés Legal and profe5slonal Tru5tee5' expenses Staff and other consultancy Travel costs Fundralslng costs Forelgn exchange galns 124,237 2,903 62,490 11,547 40,999 958 20,621 3,811 68,331 1,596 34,369 6,351 14,907 349 7,500 1,385 1,102 346 364 114 606 191 132 41 751.517 77,631 135.134 475,085 91.222 25.618 41,929 152,037 42.697 69,882 33,173 9.316 15.247 B,076 (71,013) (23,434) (39,057) (8,522) 1,095.894 483.161 202,202 337,003 73.528 25 Hand in Hand International Note5 to the Financlal Statements for the year ended 31 March 2021 5. Staff Costs and numbers 2021 2020 Salaries and wages Soclal 5ecurlty Costs Penslon conlributlon 658,503 74.323 42.053 628,558 70.468 40,586 774,879 739,612 The number of employees earnlng over £60,000 In the year is as follows.. 2021 Nos 2020 Nos £60,000- £70,000 £70,000 - E80,000 £90,000- £100,000 Pen51on costs In relatlon to these employee5 amounted to £10,389 (2019120.. 10,374). The average weekly number of employees (full tlme equlvalents) durlng the year was as follows.. 2021 2020 Nos Nos 3.2 Operatlonal progiammes Fundralslng and publlcSty Management and admlnlslratlon 13.0 12.0 In addltlon many volunteers asslsted us wlth our work duflng the year. Key management personnel InclLKle the Trustees, Chlef Execullves (and senlor staff reportlng dlrectly to the Chlet Executlve). The total employee benellts of the Charlly's key management personnel were £343,306 (2019120: £286,033). A hlgher number ol posltlons Is Sncluded thls year. No trustee recelved any remuneratSon or other employment benelSt durlng the flnanclal year, (2019120 - Nil). £120 was relmbur5ed to I trustee lor dlrectly Incurred travel expenses durlng 2020121 (2019120., I Iru5tees, £346). 6. Taxatlon Tho charltable company Is exempt from corporallon lax as all Its Income Is charllable and is applled for charitable purposes. 26 Hand in Hand International Notes to the Financlal Statements for the year ended 31 March 2021 7, Tangible flxed assets Leasehold Improvemen15 Office equlpment Total Cost At 1$1 Aprll 2020 Addltlons In year 49,991 35,764 3,859 B5,755 3,859 As at 31 March 2021 49,991 39.623 89,614 Depreclallon At W April 2020 Additions In year 19.996 4,999 28,621 3,210 48,617 8,209 As at 31 March 2021 24.995 31.831 56.826 Net book value.. As at 31 March 2021 24.996 7.792 32.788 A5 at 31 March 2020 29,995 7,143 37.138 All flxed as5els ale used to lullll the charlty's object& 8. Long term debtors 2021 2020 Rent Deposlt Enteyprlse Incubation fund5 43,320 710.217 43,320 840.133 753,537 883,453 The Enterprlse Incubatlon funds havè been made to Hand in Hand Eastern Afrlca to enable them to make mlcro-loans to benellclarles. They are publlt benefit enllty Concessionary loans that ar& not repayable on demand and were loaned to tho beneflcSary a5 part of the purposes of the charity's oblects. 9. Debtors 2021 2020 Accrued Income Other debtors Prepayment5 83.219 40 16.827 100,086 205,460 40 40,255 245,755 27 Hand In Hand Internatlonal Notes to the Financlal Statement5 for the year ended 31 March 2021 10. C￿dItOrS.. amounts due wSthln one year 2021 2020 Deferred Income Taxatlon and soclal 5ecurlty Accruals 200.000 20,695 18,112 20,449 15.270 35,719 238.807 11. Analysls of net a55ets between funds 202012021 Restrlcted fvnds Unrestrlcted Deslgnaled funds Funds Total funds Tanglble flxed assèts Current assets Current Ilabllllles 32,788 705,655 (35,719) 32.788 5,591.055 (35,719) 3,458.414 1,426,986 Net assets as at 31 March 2021 3,458,414 702,724 1,426,986 5,588,124 201912020 Reslrlcted funds Unrestrlcled Deslgnated funds Funds Total funds Tanglble flxed assets Current assets Current Ilabllille5 37,138 1,469.920 (238,807) 37,138 4,733.457 (238.807) 1,836,551 1,426,986 Net assets as at 31 March 2020 1,836,551 1,268.251 1,426.986 4.531,788 28 Hand in Hand International Notes to the Flnanclal Statèmonts for the year ended 31 March 2021 12. Related partles The followlng tran5actlons were made durlng the years.. Connected Chailty Nature ol relallonshlp Total transacllons 2021 Balance al year end Total Iransacllons 2020 Balance al year end Nature ol transacllons Harnd In Hand Sweden Hand In Hand Ken Hand In Hand Tanzanla Hand In Hand hanlstan Frlend5 Ot Hand In Hand Slsler organlsètlon Impletnentlng Partner Implementlng Partner Implementlng Partner Slsler oi anlsallon Transfer lor ect5 In Indla Transfer lor ro ects Transfer lor ro ects Transfer for io ecls Donallons ro 10 10 The value of the transact5ons are delalled In the Statement of Flnanclal Actlvltles. Amalla Johnsson Is Chalr of Hand In Hand Eastern Afrlca and 55 also a Trustee of Hand In Hand Afghanlslan and an employee of Hand In Hand Internatlonal. Dorothea Arndt Is a Trustee of Hand In Hand Eastern Alrlca. Bruce Grant and Dorothea Arndt are Trustee5 of Frlends of Hand In Hand, a charlly reglstered In thè Unlted Statès of Amèrlca. Transaellons wlth Trustees; Duilng the year 20201212 tru5tee5 donated (2019/20.. 4). Th?se trustees donated a total of E220,31312019120: £19,560), In 2020121 there were 5 donatlons from Companlos related to trustees, Includlng I donatlon In klnd (2019120'.1). 13. Obllgallons under operatlng leases 31 March 2021 Land and bulldings 31 March 2020 Land and bulldSngs other other Wllhln l year Between1-5 years Between S and10 years 67,314 248,350 32,830 348.494 79,420 19,855 99,275 29 Hand In Hand Intematlonal Notes to the Financial Statements for the year ended 31 March 2021 14. Movements In funds 202012021 8alan¢e at i April 2020 Income Expendlturè Transfers Balance at 31 March 2021 Afghanlslan India Kenya Tanzania 101,272 643.548 109.752 3.697,274 964,548 (986.886) (109,752) (2.434,791) (627,789) 253.695 11,569 1,284,226 4SI.113 63.285 48,979 2,609.994 836,8SI 1.836,551 5,475,122 {4,159.218) 365.959 3.458.414 Unrestrlcted funds Deslgnated funds 1,268,251 1,426,986 1,307,216 (1,506,784) (365,959) 702,724 1,426,986 4,531,788 6.722.338 (5,666,002) 5.588.124 201912020 Balancè at I Aprll 2019 Income ExpendSture Transfers Balance at 31 March 2020 Afghanlslan Indla Kenya Tanzanla 535,468 583,205 120,154 2,400,961 663,672 (1,017,461) (118.295) (1,743,234) (562,218) 101,212 (1,859) (7,101) 633,600 349.659 1,284,226 451,113 1.518.727 3,767.992 (3.441.208> (8,960) 1.836,551 Unre51rlcted funds Deslgnated fvnds 1,245,241 1,376,986 1.109.944 50,000 <1,095,894) 8,960 1,268,251 1,426,986 4,140.954 4.927,936 (4.537,102) 4,531.788 Materlal transfers between funrls In 2020-2021 are unrestrlcted funds Ihat have been reallocated as match funding lor ie5tricted prolects in Afghanlstan, Kenya and Tanzanla. Unrèstrlcted Reserves stand at £702,724 at 31 March 2021131 March 2020.. £1,268,251), Free unrestrlcted reserves are £669,936 (31 March 2020.. £1,231,113). Thls meets our reserves pollcy to hold slx months, core expendlture In unieslrl¢led reserves. We have mainlalned deslgnated reserves of £1,426,986. £710,217 01 thls Is designated for EIF loans In Kenya. The rèmalnlng £716.769 Is deslgnated In support of Hand In Hand Internatlonal's strateglc plan for 2021-2026, to be Invested In addltional fundralslng and programme capaclty. 30