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2023-03-31-accounts

HAND IN HAND 2023 Annual Report and Financial Statements Hand in Hand International Charity No.. 1113868 For the year ended 31 March 2023

status The organisation is a charity registered by trust deed in England on 18th February 2006. Charity Number 1113868 Registered office and operational addre55 5, Floor, Caparo House, 101 103 Baker Street London WIU 6LN Trustees Bruce Grant (Chairman) John Barrett Madhvi Chanrai (resigned June 2023) Carsten Jorgenson Lars Josefsson Paola Uggla Stephanie Whittier Senior officers Dorothea Arndt - Chief Executive Officer Amalia Johnsson - Deputy CEO Stephanie Nicholson - Head of Finance and Compliance Jen Glyn - Head of Communications and Marketing Joe Dyson - Head of Philanthropy (left March 2023) Charlotte Strawa - Interim Head of Philanthropy (appointed March 2023) Auditor5 Buzzacott LLP Chartered Accountants Registered Auditors 130 Wood Street London EC2V 6DL

Contents Legal and administrative details Objectives and activitie5 Achievements and Performance Plans for future periods Trustees, Report Report of the Independent Auditors 13-16 Statement of Financial Activities 17 Balance Sheet 18 Cash Flow Statement 19 Notes to the Financial Statements 20-29 The trustees present their report and the audited financial statements for the year ended 31 March 2023. The financial statements have been prepared in accordance with the accounting polices set out therein and comply with the charity's governing document, applicable laws and Accounting and Reporting by Charities.. Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FR5102).

Objectives and Activities Vision Our vision is a world where every woman has the power and the means to raise herself and her family out of poverty. Mission Our mission is to change lives by empowering women to beat the odds and succeed as entrepreneurs. What we do Women face barriers that men don't. Right now, in communities across the developing world. roughly 400 million women and girls live below the poverty line of US $2.15 a day, trapped by restrictive norms and attitudes that keep them from earning their own incomes, controlling their own assets, and making decisions for themselve5. To beat poverty for good, women must have an equal chance to earn and control their own incomes. Supporting women to run their own enterprises means more children in school, and more families with acce55 to healthcare. Through our unique. proven model. we support women to set up and run their own businesses on their own terms - lifting their families above the poverty line. First. we set up self-help groups where women support each other. save together. and learn together, Then we provide programme members with business and skills training. We make sure our members can access the loans and the tools they need to get started. Finally. we help women scale up their businesses, reaching bigger markets and stronger supply chains. We also engage with whole communities to challenge restrictive norms and attitudes that hold women entrepreneLJrs back. The Hand in Hand network spans regional operations in India, Afghanistan, Kenya, Tanzania and Zimbabwe. Three more offices in Sweden, the US and the UK provide programmes and governance support and fundraising. How we measure SLJccess Measurement is crucial because it allows us to assess the impact of our programmes, making data-driven decisions to improve their effectiveness - helping us achieve our mission of helping women entrepreneurs lift themselves and their families out of poverty. Our Monitoring, Evaluation and Learning (MEL) team works closely with in-country colleagues across Hand in Hand's global network to collect accurate data from our project members through routine project monitoring and periodic project evaluations. These valuable insights enable us to refine and improve our projects throughout their lifecycle.

We measure four key metrics- Income uplift Entrepreneurs increase revenue to make more money from their businesses Business survival rate Enterprises are still operational more than one year after launch Financial resilience Women can get through a financial shock, such as a bad harvest or unexpected medical bill, without having to sell an asset or get into debt. Women'5 decision-making power Women can have their say about the things that matter to them, such as household purchases, healthcare and being able to leave the home to visit family and friends. We also measure outputs and outcomes such as training graduation rates. application of target business practices, number of enterprises and jobs created, savings amounts, access to credit, and market linkages. To understand the broader irnpacts of our project5 on our members, livelihoods and quality of life, we use a simplified 'Most Significant Changes, approach, asking project participants to tell us what the most significant change in their life was after completing a project with Hand in Hand. Significant activities Hand in Hand International's significant activities as displayed on the Statement of Financial Activities are.. Raising funds Supporting people in Afghanistan Supporting people in India Supporting people in Kenya Supporting people in Tanzania Supporting projects in Hand in Hand's operating countries involves providing technical assistance in strategy, governance, programme development and implementation, monitoring, evaluation and learning. safeguarding, communications and marketing.

Achievements and Performance Network-wide, Hand in Hand created and enhanced 637,453 jobs in 2022/23. Here in the UK, at Hand in Hand International, we set ourselves the following goals in last year's Trustees, Report.. Fundraising Raise $15.IM in-year, for this and future years During the financial year to 31 March 2023. we received $7.6M in income and secured an additional $4.2M in multi-year grant funding for future years, bringing the combined funds raised in the year to $11.8M against our target of $15.IM. We are entering the new financial year with a strong pipeline of pending proposals worth over $10M. Start raising funds for a fifth coiintry We engaged a consultant to conduct an analysis of potential countries for expansion, focussing on Ethiopia, Rwanda, Uganda, and Zambia. Criteria for country selection included.. need (e.g., poverty levels. gender inequality).. probability of success for our model,. operating environment- and availability of funding. Based on this research, the Board of Trustees and Senior Leadership Team selected Uganda as the focus country for expansion of operations. Programmes Increase bargaining power for women.. secure funding for one flagship project to roll out best practice in Women's Economic Empowerment This year we submitted $4.47m worth of proposals and secured $390,000 in funding for one flagship project to roll out best practice in Women's Economic Empowerment. Achieve external recognition for the results achieved in our acceleration programmes This year we shared our results and learnings through two sector-focussed events. We secured funding for a $1.5M urban acceleration project that will focus on digital skills, digital marketing, and e-commerce. Achieve external recognition for planet-friendly agriculture We shared our learnings about regenerative agriculture and circular economy - presenting initial findings from our project with IKEA Foundation at a sector-focussed event hosted by BBC Rural Affairs correspondent Tom Heap and securing coverage in three sector publications. Best in class data: create a digital data dashboard We engaged a Data Architect to map our data flows and to provide three possible solutions for the dashboard. We have selected our preferred 501ution and identified two potential service providers. We are in the process of submitting a funding request to move forward with the build. A sector-beating team Acting as an employer of choice - we achieved a recommender score of IOO/o, measured via our annual staff survey. Recognising that diversity drives excellence and innovation, we aim to become an inclusive and diverse employer. Over 33% of new staff and volunteers were recruited from groups that are historically underrepresented in the charity sector.

Plans for Future Periods Hand in Hand International's priorities for the coming financial year. set during our annual strategic review, are.. Fundraising Raise $15.98M in-year, for FY23/24 and future years We will secure $15.98M total income, comprising funds banked in the financial year to 31 March 2024 and new multi-year grant income to be banked in future years. As of I, April 2023, $5.IIM is secured to be banked during the year. leaving a target for new funds to be raised of $10.87M. Due to the international nature of our supporters we record our fundraising activities in USD. However. the Financial Review on page11 and the financial statements and notes to the financial statements are all presented in GBP. start raising funds for a fifth country We will decide whether to proceed with expansion into Uganda by March 2024, subject to findings of a scoping analysis and successful Country Manager recruitment. Scoping will include desk research into potential NGO partners, in-depth conversation with potential funders, and in- country visits to Uganda for meetings with potential partner NGOS and other local stakeholders. Proposed subsequent steps include development of and fundraising for a joint consortium or organic growth project, financial audits of shortlisted NGOS, and acquisition of trademarks. Programmes Increase bargaining power for women We will secure at least one lighthouse project to cement the role of women as entrepreneurs in their community. To achieve this. we will submit $4M worth of proposals for projects implementing our gender transformative model. Accelerating past the poverty line In our flagship rural acceleration project, the vast majority of members will surpass the lower middle-income benchmark, with 80Yo of members exceeding $3.20 net profit per day. Cultivating Regenerative Agriculture so farmers can thrive We will secure at least one lighthouse project to implement our new regenerative agriculture curriculum at scale. To achieve this, we will submit $7.7M worth of proposals for projects implementing our regenerative agriculture curriculum. Best in class data We will be able to access timely. verified, visual data on a dashboard, evidencing our programmes, impact. The data dashboard will reflect quarterly data for a consistent set of 10 indicators per project across all current and recent projects. Sector-beating team We will have a 23-strong team in place in a workplace that supports innovation, collaboration, productivity, and wellbeing.

Structure and Governance Governino Document The charity was registered by trust deed on 18 February 2006 and registered as a charity on that date. Recruitment and Appointment of Trustees As set out in the Trust Deed, the Board of Trustees nominates the Chair of the Trustees. The Board has powers to appoint additional Trustees as it considers in-line with skills required. Induction and Training of New Trustees New trustees are considered on the basis of any gaps in the skills of the board. They are invited to meet the existing trustees and senior members of staff and familiarise themselves with the work of Hand in Hand International. Further training is provided on an on-going basis in line with the Identified needs of trustees. Trustees sign a conflict of interest declaration each year and declare any conflicts of interest to the agenda at the start of each Board Meeting. Trustees receive safeguarding training and sign the safeguarding code of conduct. Public Benefit statement The Trustees confirm they have complied with Section 17 of the Charities Act 2011 to have due regard to the Charity Commi55ion'5 general guidance on public benefit, "Charities and Public Benefit" Serious Incidents There were no serious incidents reported to the Charity Commission in FY22/23. Ri_4k Mc11)()(J?.meiit The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The trustees have assessed the major risks to which the charity is exposed, relating to operational areas of the charity, its investments, and its finances. A written risk register is in place and reviewed at every board meeting. outlining key risk5 the Charity faces and mitigating controls. The trustees believe that by monitoring reserve levels, ensuring strong financial controls, and examining regularly the operational and business risks faced by the charity. they have established effective systems to mitigate those risks. In December 2022, a ban on women working for NGOS was imposed in Afghanistan, resulting in some delays to project implementation. Currently an exemption has been made for vocational training and operations have resumed. The trustees and Senior Leadership Team will continue to monitor the situation closely. Going Concern The trustees have assessed the use of going concern and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern.

The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. The cash flow to 31 March 2025 indicates that the charity will continue to be able to meet its financial commitments through the year and for a period of at least one year from the date of approval of these financial statements. Remuneration of Staff The governing principles of the Charity's remuneration policy are as follows= To ensure delivery of the Charity's objectives To attract and retain a motivated workforce with the skills and expertise necessary for organisational effectiveness That remuneration should be equitable and coherent across the organisation To take account of the purposes, aims and values of the Charity To ensure that pay levels and pay increases are appropriate in the contexts of the interest of our beneficiaries. In relation to deciding remuneration of the charity's senior executives, the charity considers the potential impact of remuneration levels and structures of senior executives on the wider Charity workforce. The Charity takes into account the following additional principles.. To ensure that the Charity can access the types of skills, experiences, and competencies that it needs in its senior staff. The nature of the wider employment offer made to senior employment. where pay is part of a package that includes personal development, personal fulfilment and association with the public benefit delivered. Salaries for existing and new roles are benchmarked on an annual basis against multiple sector salary reports, to ensure that they are within acceptable ranges for the not-for-profit sector. Investment Policy Hand in Hand International receives income for ongoing projects over a three to five year time period and budgets to spend all anticipated income, except for retaining a prudent amount in reserves. It has no permanent endowment and provides for capital expenditure within its budget. Consequently, the trustees do not consider it prudent to invest income for the longer term. Its policy is to retain funds as cash and place them on bank deposit at the best rates available. Fuiidraising We do not actively solicit funds via telephone, email, mail, or through third party fundraising organisations. Through general asks via our newsletter and social media, we offer the option for individuals to donate online via the Hand in Hand International website. There are a number of invite-only fundraising events held throughout the year at which individual donations are made. We are committed to the highest standards of accountability and follow the Charity Commission's and the Institute of Fundraising's guidance on best practice in fundraising. During the year there were no complaints about fundraising. In recognition of the extensive consequences of climate change, our plans for the future period include a particular emphasis on regenerative agriculture in our programmes and increasing the

energy efficiency of our London office. We will consider when international travel is necessary and limit this when possible, to minimise our carbon footprint. Diversity and Inclusion Hand in Hand International has a Diversity and Inclusion working group that oversees initiatives to improve the Charity's inclusiveness. Areas of focus include staff training, recruitment processes, and workplace policies. The working group has implemented changes to recruitment processes, resulting in over a third of new staff and volunteers being recruited from groups that are historically underrepresented in the charity sector. Diversity and inclusion training for all staff was undertaken in March 2022 and in July 2023. Safeguarding Our detailed approach to safeguarding is set out in our Safeguarding Policy and Safeguarding Code of Conduct. The Charity is committed to.. Upholding the integrity and reputation of Hand in Hand International by ensuring that professional and personal conduct is consistent with the Charity's values and standards. Ensuring the safety, health. and welfare of all Hand in Hand project participants, through their interaction with our organisation, as well as all Hand in Hand Staff and associated personnel (volunteers, partners, suppliers and contractors). In accordance with the Charity'5 Safeguarding Code of Conduct and Whistleblowing Policy, all staff are obligated to bring to the attention of the relevant manager any potential incident, abuse, or concern that they witness, suspect, or of which they are made aware, which appears to breach the standards of the Safeguarding Code of Conduct. The Charity has Safeguarding Focal Points on its board and two staff Safeguarding Leads. Hand in Hand International carries out basic Disclosure and Barring Service (DBS) checks on all employees and is a member of the Misconduct Disclosure Scheme, which aims to prevent perpetrators of sexual misconduct from moving between organi5ations undetected. The staff Safeguarding Leads undertook a comprehensive safeguarding training course with Bond (the international development network) in April 2022. An online safeguarding training course was completed by all existing staff in August 2022 and is now being completed by new joiners as part of their induction. Reference and Administrative Trustees The trustees in office during the year were.. Mr. Bruce Grant Mr. John Barrett Dr. Madhvi Chanrai (resigned June 2023) Mr. Carsten Jorgensen Mr. Lars G Josefsson Mrs. Paola Uggla Ms. Stephanie Whittier 10

Financial Review Total income for the year was £6,254,070. This was a decrease of £372,704 (6Yo) on the previous year. Fundraising capacity during the year was impacted by sector-wide challenges in recruitment. In addition, several funding application process timelines were extended, meaning that some anticipated income was not secured before 31 March 2023. However, the Charity is beginning FY23/24 with a strong pipeline of pending proposals as a result. Donations from Corporate Foundations represented a lower proportion of income in the financial year at 39Yo. whereas income from Governments and Institutions increased to 16Yo and income from Trusts and other Foundations increased to 24%. This constitutes a good balance of funding from a range of income streams, with remaining income secured from events (Il%), corporate partnerships (64/0), and individual giving (4%). Unrestricted income increased by £175,781122%) compared to the previous financial year. The proportion of unrestricted income compared to total income received in the year increased to 15Q/ts, building on an increase in the previous financial year from 9Y¢ to 12Q/o. Expenditure supporting projects increased in Afghanistan by £791,975 1136/0), in Kenya by £735,270 120/0), and in Tanzania by £605,492 (55%). Total expenditure in India was zero in 2022/23, following completion of our recent project in the country. The increase in restricted spend in our countries of operation is due to sending funds brought forward at the end of FY21/22. which resulted in a planned total deficit in FY22/23 of £1,416,346 (2022= surplus £968,281). Expenditure on raising funds in the financial year to 31 March 2023 was £425,459 (2022.. £348,341). Thi5 increase of 22'A is in line with Hand in Hand International's strategic aim to increase fundraising capacity, despite aforementioned challenges in recruitment. Reserves Policy Total funds at 31 March 2023 are £5,140.059 (2022.. £6,556,405). This is an overall decrease of £1,416,346 on the prior year. The decrease relates to spending of restricted fund balances brought forward from previous years. Unrestricted free reserves are £1,131.321 at 31 March 2023 (2022.. £780.774). The reserves policy is to hold six months, core expenditure which is equal to £850,000 based on the budget for FY23/24. Unrestricted free reserves are equal to approximately eight months of core expenditure and therefore the required balance is held at the year end. The surplus will be spent on UK expenditure in FY23/24 or used to support our network partners. £299,764 has been transferred out of the existing designated fund, being the reduction of the EIF loan debtor balance, through repayments to Hand in Hand International from its network partner Hand in Hand Eastern Africa, and funds spent on increasing headcount in line with our strategic plan. The balance on 31 March 2023 is £904,754 (2022.. £1,204,518), and this will continue to be spent over the coming years. A new designated fund has been created for match funding future projects. This fund will enable Hand in Hand to unlock significant new funding partnerships requiring match funding in coming years, based on previous success using this approach. The fund balance is £808,465. The movements in restricted. unrestricted and designated funds is shown in Note 14 to the accounts.

Trustees, Responsibilities in relation to the Financial Statements The trustees are responsible for preparing the Trustees, Report and the financial statement5 in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Charity law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affair5 of the charity and of its income and expenditure for that period. In preparing these financial statements, the trustees are required to.. select suitable accounting policies and then apply them consistently., observe the methods and principles of the Charities SORP,. make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards, including FRS 102. have been followed, subject to any material departures disclosed and explained in the financial statements- state whether a Statement of Recommended Practice (SORP) applies and has been followed, subject to any material departures which are explained in the financial statements., prepare the financial statements on the going concern basis, unless it is deemed inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In so far a5 the trustees are aware.. There is no relevant audit information of which the charitable company's auditors are unaware.. and The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Day to day management of the charity is delegated to Dorothea Arndt, CEO, and the senior management team. Approved by the trustees and signed on their behalf by.. Bruce Grant Chairman of Hand in Hand International Date.. 12

Independent auditor's report to the trustees of Hand in Hand International Opinion We have audited the accounts of Hand in Hand International Ithe 'charity') for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice). In our opinion, the accounts.. give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its income and expenditure for the year then ended.. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the accounts, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the accounts is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that. individually or collectively, may cast significant doubt on the charity's ability to continue a5 a going concern for a period of at least twelve months from when the accounts are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the accounts and our auditor's report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information 15 materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially 13

misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If. based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 require5 US to report to you if, in our opinion.. the information given in the trustees. annual report is inconsistent in any material respect with the accounts.. or sufficient accounting records have not been kept., or the accounts are not in agreement with the accounting records and returns., or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the trustees, responsibilities statement, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations. or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the accounts Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence. capabilities and skills to identify or recognise non-compliance with applicable laws and regulations., 14

we identified the laws and regulations applicable to the charity through discussions with management, and from our knowledge and experience of the sector,. we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Charity, including data protection legislation, anti-bribery, safeguarding, employment, health and safety legislation., we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence., and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the Charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by.. making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud,. and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identify any unusual or unexpected relationships., tested journal entries to identify unusual transactions., and assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bia5. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial statement disclosure5 to underlying supporting documentation.. reading the minutes of organisation meetings., enquiring of management as to actual and potential litigation and claims,. and reviewing any available correspondence with HMRC (where relevant) and the Charity's legal advisors (although none was noted as being received by the Charity). As a result of our procedures we did not identify any key audit matters relating to irregularities. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. 15

Use of our report This report is made solely to the charity's trustees. as a body, in accordance with section144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL Date.. 29 September 2023 Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 16

Statement of Financial Activitie5 for the year ended 31 March 2023 Restricted Unrestricted Designated Total 2023 Restricted Unrestricted Designated Total 2022 Note Income from.. Donations and Grants Other income Interest Total Income 5,286,594 964.660 6.251.254 5.835.079 782.145 9,375 175 791,695 6.617.224 9,375 175 6,626,774 2,816 967.476 2,816 6.254,070 5.286,594 5,835,079 Expenditure on= Raising funds 425,459 425,459 348.341 348.341 Charitable expenditure Supporting people in Afghanistan Supporting people in India Supporting people in Kenya Supporting people In Tanzania Total Expenditure 1,322,826 52,115 1.374,941 434.570 112.554 3,486.416 1,046,733 5.080,273 148,396 1,684 163,593 46.375 708,389 582,966 114,238 3,650,009 1,093.108 5,788,662 4,251.597 1,658,213 7.232,436 133,882 40,387 651,843 4.385,279 1,698,600 7.884.279 Net incorne/lexpenditurel before foreign exchange gain51(lossesl 11,945,842) 515,633 (1,630,209) 754,806 83,306 838,112 Foreign exchange gains/(losses) 213,865 213,863 130,169 130,169 Net incorne/(expenditurel for the year (1,945.842) 529.496 {1,416,346) 754,806 213,475 968,281 Transfers between funds Funds brought forward Fund5 carried forward 1323.4511 4,541,260 2.271,967 (185.2501 810,627 1,154,873 508.701 1,204,518 1,713.219 55.021 3,731,433 4,541.260 167.447 429,705 810.627 (222.468) 1,426,986 1.204,518 6,556,405 5.140,059 5,588,124 6.556.405 14 There was no furlough income included in Other Income (2022.. £9.375). All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. The notes on pages 20 to 29 form part of these accounts. 17

Balance Sheet as at 31 March 2023 2023 2022 Note Fixed Assets Tangible Assets 23.552 29.853 Long term debtors 197,451 377,395 Current Assets Debtors Cash at bank 1,694.622 3.743,483 5,438.105 1.501.464 4.945.451 6,446,915 Creditor5.' Amount5 due in one year io 519,049 297,758 Net current assets 5.116,507 6,526,552 Nel assets 5,140,059 6.556.405 Funds Restricted funds 2,2n.967 4.541,260 Designated fund Unrestricted funds 1,713.219 1,154,873 1,204.518 810,627 Total funds 14 5.140,059 6,556,405 The notes on pages 20 to 29 form part of these accounts. Authorised for issue and approved by the trustees on 27.9 IbL3 Bruce Grant Chairman Charity number.. 1113868 18

Cash Flow Statement for the year ended 31 March 2023 2023 2022 Cash flows from operating activities {1,416.346) 968,281 Net income/lexpenditurel for the year Adjustments for.. Interest Received Depreciation of fixed assets Decreasel{Increase) In debtor5 IDecrease)Ilncrea5e in creditors 12,816) 9,618 (13,2141 221,291 (175) 8,973 (1,025,236) 262,039 Net Cash (used in) operating aetivities 11.201.467) 213.882 Purchase ol tangible fixed assets Interest received Net cash Irorn investing activities 13,3171 2,816 (501) (6,0381 175 (5,863) Change in cash and cash equivalents in the year Cash and cash eouivalents at beginning ol year {1,201,968) 208,019 4.945,451 4,737,432 Cash and cash equivalents at end of the year 3,743,483 4.945.451 No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the Charity and the cash and cash equivalents. 19

Notes to the Financial Statement5 for the year ended 31 March 2023 Accounting policies The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). The charity is a public benefit entity for the purposes of FRS 102 and therefore has also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP) and Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound. Going concern The trustees have assessed whether the use of going concern is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the trustees have considered the charity's forecasts and projections and have taken account of pressures on income streams. After making enquiries, the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements. b) All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. Donations and grants are recognised in the Statement of Financial Activities when receivable. Where income is received in advance of meeting any performance-related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance- related conditions are met. Gifts in Kind are included as donated income at market value at the time of receipt. d) Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any V AT which cannot be recovered. Expenditure is recogni5ed once there is a legal or constructive obligation to transfer economic benefit to a third party. it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All costs are directly attributable to specific activities. Total expenditure has been allocated to either Direct Programmes, Fundraising or Support costs. UK expenditure on programmes has been included in restricted spend under Direct Programmes. Fundraising costs are included as Direct spend rather than Support Costs as fundraising is a core activity. Support costs are split out between building costs, off ice costs. audit fees, legal and professional fees, trustees, expenses. staff and consultancy costs, travel costs, and fundraising costs. The methodology of allocating support cost5 to network partner countries is based on direct spend on charitable activities. 20

Depreciation is provided at rates to write off the cost of each asset by equal annual instalments over their expected useful lives as follows. Office equipment 4 years Leasehold improvements 10 years Assets costing more than £500 are capitalised. f) Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. All restricted programme income to be spent in the UK has been recognised as restricted income, where previously this was recognised as unrestricted income in line with the treatment of expenditure. g) Unrestricted funds are donations and other income receivable are generated for the objects of the charity. h) Designated funds are also unrestricted funds but have been designated by the trustees for a particular purpose. The EIF and Strategic Plan Designated Fund is made up of the EIF (Enterprise Incubation Fund) loan debtor value and an amount for the increase in headcount as set out in the strategic plan. The Match Funding Designated Fund has been created in the financial year to 31 March 2023 to support future co-funding opportunities. Rental payments under operating leases are charged as expenditure as incurred over the term of the lease. The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charity to the fund. The charity has no liability under the scheme other than for the payment of those contributions. k) Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the net incoming resources for the year. Critical accounting estimates and areas of judgement In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. other financial instruments Cash and cash equivalents include cash at banks and short-term deposits with a maturity of three months or less. Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest. 21

  1. Donations and Grants Restricted Unrestricted 2023 Total Corporate Foundations Corporate Donors Individual Donations Governments & Institutions Trusts & Foundations Events 2,403,071 298,344 133,220 962,954 1,489,005 2,403,071 380.092 262,660 962.954 1.528.849 713.628 81,748 129,440 39,844 713,628 5,286,594 964,660 6,251,254 Included within Donations from Corporate Donors are Gifts-in-Kind of £71,748 (2022.. £82.299) and the corresponding expenditure is included in Support costs (Note 4). Income from corporate foundations includes income of GBP 554,992 (EUR 634,702) from the IKEA Foundation for a multi-year project to develop Hand in Hand's capacity in circular economy and regenerative agriculture. Restricted Unrestricted 2022 Total Corporate foundations Corporate donors Individual donations Governments and Inslilulions Trusts and Foundations Events 4,028,303 602,977 136,777 425,839 641,183 4.028.303 695,279 240,226 425,839 763,668 463.909 92,302 103,449 122,485 463.909 5,835,079 782.145 6,617,224

  2. Net Expenditure Net expenditure is stated after the following expenses.. 2023 2022 Depreciation Auditor's remuneration Operating lease payments 9,618 12,900 59,680 8.973 9,295 61,109 22

  3. Analysis of Total Expenditure & Support Costs Restricted direct costs Unrestricted direct costs Designated Support Costs 2023 Restricted direct costs Unrestricted direct costs Designated Support Costs staff Other Costs Costs 2022 Stall Costs other C05t5 Costs of raising funds Fundraising costs 405.578 10,172 9,709 425,459 322.931 14,666 10.744 348.341 Charitable Activities Supporting people in Afghanistan 1,322,826 15,531 36,584 1.374.941 434,570 9,832 138.564 582.966 Supporting peopl& 112,554 972 712 114,238 Supporting people in Kenya 4,251,397 68,499 65,383 4.385,279 3,486,416 94,421 69.172 3,650,009 Supporting people in Tanzania 1,658,213 18,822 21,565 1.698,600 1,046,733 26,766 19.609 1,093,108 7.232,436 405.578 113,024 133.241 7,884.279 5.080.273 322.931 146,657 238,801 5,788,662 Included in Restricted Direct Costs spent on Charitable Activities Supporting people in Kenya is £801,361 relating to a project funded by the IKEA Foundation for a multi-year project lo develop Hand in Hand's capacity in circular economy and regenerative agriculture. 23

Analysis of Support Costs 2023 Supporting people in Tanzani Supporting people in Indi AII c05t5 Fundraising Supporting people in Kenya Supporting people in Afghanistan Building costs Trad&mark5 5.902 77 532 3.577 46 982 13 Ollice costs 8,626 860 776 5,228 522 1,437 143 1,185 118 Audit lees 77 Legal and role5510nal 67,038 6,033 40,629 11,164 9.212 Trustees, expenses stall and other consultancy Travel costs 1.056 95 640 176 145 113.024 10.172 68.499 18.822 15.531 4,071 366 2.468 678 559 Country Expenses 25,360 3,600 21,760 Strategic Initiatives 20.251 1.823 12,273 3,372 2.783 246,265 19,881 133,882 40,387 52,115 2022 All costs Fundraising Supporting people in Keny Supporting people in Tanzania Supporting people in Afghanistan 901 Supporting people in India 8uilding costs Trademarks Ollice costs Audit fees 13,443 1.346 8.654 2,453 89 95,698 1.206 1.001 6,447 776 1.828 220 86.356 81 66 Legal and professional 128.001 8,232 53,002 15,025 51,196 546 Trustees, expenses 454 45 293 83 30 stall and other consultancy Travel cost5 146.657 14,666 94,421 26,766 9,832 972 Country Expenses 385.459 25.411 163,593 46.375 148,396 1,684 24

  1. Staff Costs and number5 2023 2022 Salaries and wages Social security costs Pension contribution 744.201 84.512 45.162 873,875 642,704 71,506 39.389 753,599 The number of employees earning over £60,000 in the year is as follows.. 2023 Nos 2022 Nos £70,000 - £80,000 £90,000- £100,000 The average weekly number of employee5 (full time equivalents) during the year was as follows.. 2023 Nos 2022 Nos Operational programmes Fundraising and publicity Management and administration 14.6 12.1 The average headcount of employees was17 12022.. 14). Key management personnel include the trustees, CEO, Deputy CEO, Head of Philanthropy, Head of Communications and the Head of Finance and Compliance. The total employee benefits of the charity's key management personnel were £384,404 (2021122.. £397.304). Every year a charity sector pay benchmarking exercise is carried out to ensure that salaries are in line with other similar organisations. No trustee received any remuneration or other employment benefit during the financial year. (2021/22.. nil). £1,056 relating to I trustee was spent on travel expenses for board meetings during 2022/23 (2021/22.. 2 trustees. £455).

  2. Taxation The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 25

  3. Tangible fixed assets Leasehold improvements Office Eouipment Total Cost At l April 2022 Additions in year As at 31 March 2023 49,991 45,661 3,316 48,977 95,652 3,316 98,968 49,991 Depreciation Al l April 2022 Charge in the year As at 31 March 2023 29,994 4,999 34,993 35,804 4,619 40,423 65,798 9,618 75.416 Net Book Value At 31 March 2023 14.998 8.554 23.552 At 31 March 2022 19,997 9,856 29,853 All fixed assets are used to fulfil the charity's objects.

  4. Long term debtors 2023 2022 Rent Deposit Enterprise incubation funds 43.320 154,131 197,451 43,320 334,075 377,395 The Enterprise incubation funds have been made to Hand in Hand Eastern Africa to enable them to make micro-loans to beneficiaries. They are public benefit entity loans that are not repayable on demand and were loaned to the beneficiary as part of the purposes of the charity's objects. There is a five-year repayment plan in place for Hand in Hand Eastern Africa to repay the full balance. In the year. one repayment of £147,341 was made as part of the repayment plan. £154,131 is due to be repaid in the year to March 312024, and the remaining balance of £154,131 is due to be repaid by March 312025.

  5. Debtors: amounts due within one year 2023 2022 Accrued Income Other debtors Prepayments EIF Loan 1.495.979 1,310,195 1,853 3S,742 153,674 1,501,464 44.512 154,131 1.694.622 26

  6. Creditor5- amount5 due within one year 2023 2022 Taxation and social security Accruals Trade Creditors 23,365 23,258 251,135 297,758 22.094 496,955 519.049

  7. Analysis of net assets between funds 2023 Restricted funds Unrestricted funds Designated funds Total funds Tangible fixed assets Current assets 23,552 1.161,668 (30,347) 23.552 5,635.556 (519.049) 2,760,669 (488,702) 1,713,219 Net assets as at 31 March 2023 2,271.967 1.154,873 1.713.219 5.140.059 2022 Restricted funds Unrestricted funds Designated Funds Total funds Tangible fixed assets Current assets Current liabilities Net assets as at Sl March 2022 29,853 832.971 (52,197) 29,853 6.824,310 (297.758) 4.786,821 (245,561) 1,204,518 4,541,260 810,627 1,204,518 6,556,405 27

  8. Related parties The following transactions were made during the year-. 2023 Amount owing to connected enlily at year end Nature of transactions Total amount sent/(received) in the year Connected Charity Nature of relationship HIH Sweden Sister organisation Implementing Partner Donations (50,457) HIH Kenya Transfers for projects Transfers for projects 3,102,361 488,702 Implementing Partner HIH Tanzania 1,495,538 HIH Afghanistan Implementing Partner Implementing Partner Sister organisation Transfers for projects Transfers for projects Donations 1,223,739 HIH India Friends of Hand in Hand (1,264,360) 2022 Connected Entity Nature of relationship Total amount sent/(received) in the year Amount owing to connected enlily at year end Nature of transactions HIH Sweden Sister organisation Implementing Partner Implementing Partner Implementing Partner Implementing Partner Sister organisation Forwarding donations Transfer for projects 243,995 HIH Kenya 2,920,516 HIH Tanzania Transfer for projects 918,941 HIH Afghanistan Transfer for projects 466,262 228,611 HIH India Transfer for projects 108,216 Friends of Hand in Hand Donations (267,380) Amalia Johnsson. Deputy CEO, is Chair of Hand in Hand Eastern Africa and is also a trustee of Hand in Hand Afghanistan. Dorothea Arndt. CEO, is a trustee of Hand in Hand Eastern Africa. Bruce Grant, Chair, and Dorothea Arndt are trustee5 of Friend5 of Hand in Hand. a charity registered in the United States of America. Transactions with Trustees During the year 2022/23 2 trustees made donations (2021/22.. 3). These trustees donated a total of £522,857 (2021/22.. £371,058). I company related to a trustee made donations in the year, including I donation in kind (2021/22.. 2). The total of these donations was £64,384 (2021/22.. £241,754). Donations from family members of trustees were £112,297 in total (2021/22.. £130,090). 28

  9. Obligations under operating leases 2023 Land and buildings 2022 Land and buildings Within l year Between 1-5 years 60.529 140,760 201,289 60.529 201,290 261,819

  10. Movements in funds 2023 8alance at I April 2022 Foreign Exchange Gains Balance at 31 March 2023 Income Expenditure Transfers Restricted Funds Afghanistan India Kenya Tanzania 422,064 1,272,393 (1,322,826) (20,482) 351,149 3,000,435 1,118,761 4,541,260 3,089,864 924,337 5.286,594 (4,251,397) (1,658,213) (7,232,436) (247,745) (55,224) (323,451) 1,591.157 329.661 2,271,967 Unrestricted Fund5 Unrestricted funds Designated funds- match funding Designated funds - EIF & Strategic Plan 810,627 967,476 1651,843) 213,863 (185,250) 1.154.873 808,465 808.465 1,204,518 (299,764) 904,754 2.015.145 967.476 (651,843) (7.884.279) 213,863 213.863 323,451 2.868.092 6.556.405 6.254.070 5.140,059 2022 Balance at I April 2021 Foreign Exchange Gains Balance at 31 March 2022 Income Expenditure Transfers Restricted funds Afghanistan India Kenya Tanzania 21,174 797,681 104,809 3,652,207 1,280,382 5.835.079 (434,570) (112,554) (3,486,416} (1,046.733) (5.080.273) S7,779 7,745 (14.4591 23,956 55,021 422,064 2,849,103 861,156 3.731.433 3,000,435 1.118.761 4.541.260 Unrestricted Funds Unrestricted funds Designated funds 429,705 1,426,986 1.856.691 5,588.124 791,695 (708,389) 130,169 167.447 (222,468} (55,021) 810.627 1.204,518 2,015.145 6.556.405 791.695 6.626,774 (708.389) (5.788.662) 130,169 130.169 Transfers relate to cumulative foreign exchange gains/losses at the end of individual projects. More details of these reserves, including the designated funds, are given in the Financial Review within the Trustees, Report 29