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2020-12-31-accounts

Company number: 3223265 Charity number: 1117375

Harm Reduction International

Report and financial statements For the year ended 31 December 2020

Harm Reduction International

Contents

For the year ended 31 December 2020

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 2 Independent auditor’s report ....................................................................................................... 11 Statement of financial activities (incorporating an income and expenditure account) ................... 13 Balance sheet ............................................................................................................................... 14 Statement of cash flows ................................................................................................................ 15 Notes to the financial statements ................................................................................................. 16

Harm Reduction International

Reference and administrative information

For the year ended 31 December 2020

Company number 3223265 Country of incorporation England & Wales Charity number 1117375 Country of registration England & Wales

Registered office and operational address 61 Mansell Street, London E1 8AN, United Kingdom

Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Lucy Burns Chair (November 2020) Ivan Varenstov Chair (June-November 2020) John Ryan Chair (until June 2020) Saumya Kailasapathy Vice Chair Patricia Haddad Treasurer Kojo Koram Secretary Alexander Stevens Patrick O’Hare Olga Belyaeva Oluseyi Kehinde (appointed April 2021) Raminta Stuikyte (appointed April 2021) Key management Naomi Burke-Shyne, Executive Director personnel Anne Taiwo, Finance Manager Colleen Daniels, Deputy Director Bankers NatWest Aintree Black Bull, Cedar Rd, Liverpool L9 0EG Solicitors Bates Wells 10 Queen St Pl, London EC4R 1BE Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2020

The trustees present their report and the audited financial statements for the year ended 31 December 2020.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

The objectives of Harm Reduction International (HRI) are to promote evidence-based and human rights compliant public health policy and practice by:

In 2020 Harm Reduction International undertook the following main activities to further the charity’s purpose:

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2020

people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

HRI employed a three pronged strategy for progressing its aims and objectives for the period 2017-2021:

  1. To build and share the evidence base for harm reduction policies, practices and laws;

  2. To strengthen constituencies and build new alliances to advocate for harm reduction and human rights – including via the Harm Reduction International conference;

  3. To increase political will to protect, respect and fulfil the human rights of vulnerable individuals and communities, by funding and implementing harm reduction.

HRI employs these three strategies to achieve our objectives of helping achieve a world in which individuals and communities benefit from drug policies, practices and laws that promote health, dignity and human rights. We do this across our priority issues: health, human rights, and new collaborations and emerging trends in drug use and harm reduction.

HRI’s resources – staff and financial – are divided relatively evenly across our strategic approaches and priority issues.

In the priority issue of health we work to ensure that lifesaving harm reduction interventions are adequately funded and monitor gaps and progress globally in the availability of health and social services for people who use drugs; together with direct technical engagement with governments and UN agencies.

In the priority issue of human rights we advocate against the use of drug control as a justification for the violation of human rights; including tracking the use of the death penalty for drug offences, and the imprisonment and detention of people who use drugs. We advance this work through advocacy with UN agencies, governments and human rights mechanisms.

In the priority issue of new collaborations and emerging trends , we worked to foster and continue the new partnerships generated via the 2019 Harm Reduction International conference. This included increasing our focus on stimulants, and on the intersections of drug policy, gender and racial justice. Our conference is the main global forum for the exchange of information and best practice at the intersection of human rights, drug policy and harm reduction.

Harm Reduction International makes sub-grants to national partners when it advances our organisational objectives. As part of this process, HRI will issue a call for proposals for sub-grants involving work valued at more than USD10,000 in order to ensure the selection of a partner with the appropriate mix of skills. For all sub-grants HRI and the partner enter into a contract which

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2020

sets out charitable objectives and each parties’ obligations. Sub-grant implementation is supported by narrative and financial reports from the sub-grantee.

Achievements and performance

The charity's main activities and who it tries to help are described below. All its charitable activities focus on reducing the negative health, social and legal impacts of drug use and drug policy; and are undertaken to further Harm Reduction International’s charitable purposes for the public benefit.

In 2020, Harm Reduction International pivoted to respond to the impact of COVID-19 on people who use drugs and harm reduction services; including contributing to immediate response webinars, engaging with UN human rights mechanisms, tracking trends in prison decongestion schemes, assessing the impact of COVID-19 upon funding for harm reduction, and reporting on adaptations and challenges experienced by harm reductionists around the world.

Our response to COVID-19 also involved postponing the Harm Reduction International conference planned for 2021. This decision (further details below) was taken after developing an understanding of the possible timeline for potential roll out of vaccines and global economic recovery from COVID-19 (using the most accurate information available at the time), as well as regular risk assessments, and consultation with key partners and donors.

We undertook work to build the evidence base via our biennial global mapping initiative, the Global State of Harm Reduction; and our annual tracking of the use of the death penalty for drug offences. These initiatives track progress and regressions in practice, law and policy; and inform our advocacy.

We worked with national partners to support local advocacy, research and service delivery efforts; and engaged with governments, the UN and funders to convey the cost effectiveness, and overall effectiveness of harm reduction interventions in prevention transmission of blood-borne diseases.

Through this work we strengthened partnerships and built new alliances to contribute to the elevation of harm reduction and the rights of people who use drugs at major (virtual) international fora, at the UN Commission on Narcotic Drugs, through the development of the new Global AIDS Strategy, and directly with government representatives. As such, we made progress against our three overarching objectives of building the evidence base for harm reduction policies, practices and laws; strengthening new alliances; and increasing political will to protect, respect and fulfil the human rights of people who use drugs.

It remains a complex and challenging environment for harm reduction and drug policy globally. We observed a stall in the update of lifesaving harm reduction services around the world; a significant shortage of funding for critical health interventions in low- and middle-income countries; and discrete surges in punitive rhetoric supporting an escalation of the war on drugs. In

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2020

this context, HRI’s global monitoring, analysis and advocacy remain essential contributions to efforts to achieve a world where drug policies and laws contribute to healthier, safer societies.

HRI made the decision to postpone the 2021 Harm Reduction International conference until April 2023. In addition to learning and exchange, an important part of the Harm Reduction International conference is networking and relationship-building with diverse actors from around the world. Recognising the medium term impact of COVID-19, the inequitable roll out of vaccines, HRI determined this could not be achieved to the same extent via a virtual event, and that it was preferable to delay the 2021 conference than plan for a smaller in-person event in a constantly changing, high risk public health environment.

We are addressing some of the learning and exchange gaps by hosting more frequent, short online events. We are addressing the negative impact of the conference postponement upon our income by embedding online events into our broader grant applications, fundraising early for the 2023 conference, and seeking funding support for an online harm reduction festival in late 2021 (Constellations).

Beneficiaries of our services

The ultimate beneficiaries of Harm Reduction International’s work are vulnerable people who use drugs around the world. Because Harm Reduction International is a policy and advocacy organisation, it measures its impact by monitoring how its research and analysis are drawn upon by advocates and policy makers to contribute to, and inform changes to laws, policies and programming (at national, regional or international level). Our global monitoring work also provides insights into shifting human rights norms and uptake of international human rights standards in drug policy and practice at national or sub-national level, and our contribution to these significant trends.

Financial review

HRI’s financial position at the end of the reporting period was in line with expectations, taking into account the turbulence of the year.

HRI’s 2021-22 forecast demonstrated its ability to continue as a going concern, noting the particularly uncertainty associated with the COVID-19 pandemic and its impact upon the UK economy. HRI does not raise funds directly from the public or via public events, to this end, HRI has not suffered the loss of income experienced by other (more public facing) charities during 2020. As a policy and advocacy organisation, HRI has been able to continue many planned activities notwithstanding lockdown restrictions. Many convenings in the sector have proceeded in a virtual format, allowing HRI to continue its work via partnerships and advocacy with the UN, governments and donors.

HRI made the decision to postpone the 2021 Harm Reduction International conference until April 2023, which will have a negative impact upon its income for 2021. We are working to mitigate the

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2020

financial impact of conference postponement by reducing all conference-related costs, embedding plans for interim and smaller online events into our broader grant applications, fundraising early for the 2023 conference, and seeking funding support for an online festival in late 2021 (Constellations).

In line with its fundraising goals, HRI staff invested energy in fundraising with a view to diversifying and increasing funding, and ultimately holding three months’ operational costs in reserves. The result was an increase in income of more than 30% at the end of 2020 (relative to 2018 and 2016 – recent non-conference years); with small contributions from a number of new funders and increases in funding from existing funders.

Fundraising activities were undertaken by HRI staff, there was no specific or material expenditure on fundraising.

Based on our forecast, cash flow, existing commitments from donors, active pursuit of new funds, and plans for the Harm Reduction International conference in 2023, we have basis to believe the organisation can continue to operate and meet its debts as they fall due in the coming 12-24 months.

Principal risks and uncertainties

HRI maintains a risk register, reviewed by the trustees twice a year. The risk register prompts the trustees to assess risks and decide upon mitigating actions across five categories: governance, operational, financial, environmental/external and compliance (law and regulation). In April 2020, the risk register was amended to include COVID-19 related risks across all categories. COVID-19 represents the major change in risk profile for 2020; mitigating actions were taken to reduce associated risks.

Broadly, we are currently work to mitigate the following key risks:

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2020

Reserves policy and going concern

HRI’s aim is to hold three months’ operating costs in reserve, it has not achieved that in 2020. At the end of 2020, HRI carried forward approximately £12,000 in unrestricted funding.

HRI board and key management personnel have reset their ambitions for reaching this target over the next two-three years, and are actively engaged in continuing work against fundraising goals to diversify and increase funding.

Fundraising

HRI key management personnel lead on fundraising for the charity. HRI does not engage professional fundraisers or commercial entities in fundraising.

Plans for the future

HRI extended its 2017-2020 Strategic Plan to 2021, allowing it more time to reflect on the rapid and significant changes associated with the pandemic, as well as the constantly evolving global environment. With this reflection process ongoing throughout 2021, Harm Reduction International will be able to better contribute to achieving a world in which individuals and communities benefit from drug policies, practices and laws that promote health, dignity and human rights.

HRI is unique in its global mapping and data collection across health, funding for harm reduction and human rights (including a focus on the death penalty). HRI will continue its leading work across these areas.

HRI is also unique in convening the main global forum for the exchange of information and best practice at the intersection of human rights, drug policy and harm reduction (the biennial Harm Reduction International conference). HRI has communicated about the postponement of the 2021 conference due to COVID-19, and will continue to lead in this space via online events in the interim.

In the future, HRI plans to strengthen its research, advocacy and leadership on intersectional vulnerability, including the intersections between drug use and drug policy with poverty, gender, racism and disability.

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2020

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 11 July 1996 and registered as a charity on 22 December 2006.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association. Decisions are made in compliance with these constituent documents. The Trustees delegate the day-to-day management of the charity to Executive Director, Naomi Burke-Shyne. Ms Burke-Shyne served as the Executive Director for the reporting period in question.

HRI follows a foundation model of governance in which the Trustees are the members. HRI has no subsidiaries and is not affiliated with a wider network.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 10 to the accounts.

Appointment of trustees

HRI’s constituent documents set the minimum number of Trustees as six and the maximum as twelve. Trustees are appointed for three years and may stand for re-election once.

New Trustees are appointed by a decision of the Trustees, passed by a majority of two-thirds of the total number of sitting Trustees, in line with an agreed commitment to diversity of skills and experience. Appointments are recommended following candidate interviews with a Board Vacancies Sub-Committee (comprised of two Trustees and the Executive Director) and made at the meetings of the Trustees.

Trustee induction and training

HRI provides induction to new trustees via a briefing pack based on Charity Commission guidance, an induction meeting with HRI staff, and ongoing direct support.

HRI aims to hold Trustees Skills Refresher trainings biennially (for example with an NCVO trainer), this was postponed in 2020 due to the unusual circumstances of the pandemic.

Related parties and relationships with other organisations

HRI declares two matters pertaining to related parties and relationships:

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2020

Remuneration policy for key management personnel

Salary for staff other than the Executive Director is set using a salary banding system, which is based upon established market rates.

Salary for the Executive Director is set by the Trustees.

Statement of responsibilities of the trustees

The trustees (who are also directors of Harm Reduction International for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

In so far as the trustees are aware:

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

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2020

governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2020 was 9 (2019:9). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The directors’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

The trustees’ annual report has been approved by the trustees on 21 June 2021 and signed on their behalf by

Lucy Burns Chair

10

Independent examination report

To the members of

Harm Reduction International

Independent examiner’s report to the trustees of Harm Reduction International

I report to the trustees on my examination of the accounts of Harm Reduction International for the year ended 31 December 2020.

This report is made solely to the trustees as a body, in accordance with the Charities Act 2011. My examination has been undertaken so that I might state to the trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for my examination, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the charity trustees of the Company you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’)/Companies Act 2006 (‘the 2006 Act’).

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

Independent examiner’s statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accounts in England and Wales, which is one of the listed bodies.

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

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Independent examination report

To the members of

Harm Reduction International

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

Signed:

Name: Jonathan Orchard FCA Address: Sayer Vincent LLP, Invicta House, 108-114 Golden Lane, London, EC1Y 0TL Date: 16 August 2021

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Harm Reduction International

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2020

Notes
Income from:
2
3
3
4
5
5
7
Reconciliation of funds:
Investments
Total income
Expenditure on:
Donations and legacies
Charitable activities
Project work
Conferences & support
Total expenditure
Net income / (expenditure) before net
gains / (losses) on investments
Charitable activities
Project work
Conference & support
Total funds brought forward
Net income / (expenditure) for the year
Total funds carried forward
Transfers between funds
Net income / (expenditure) before other
recognised gains and losses
Net movement in funds		 Unrestricted
£
48,005
271,615
51
94		 Restricted
£
-
578,285
-
-		 2020
Total
£
48,005
849,900
51
94
898,050
716,145
98,834
814,979
83,071
-
83,071
83,071
105,577
188,648
83,071		 Unrestricted
£
90
235,305
734,075
153		 2019
Restricted
Total
£
£
-
90
495,625
730,930
-
734,075
-
153
495,625
1,465,248
532,344
973,123
48,892
460,850
581,236
1,433,973
(85,611)
31,275
39
-
(85,572)
31,275
(85,572)
31,275
139,775
74,302
54,203
105,577
(85,611)
31,275
319,765 578,285 969,623
256,230
98,834		 459,915
-		 440,779
411,958
355,064 459,915 852,737
(35,299) 118,370 116,886
(35,299)
(4,130)		 118,370
4,130		 116,886
(39)
(39,429) 122,500 116,847
(39,429)
51,374		 122,500
54,203		 116,847
(65,473)
11,945 176,703 51,374

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 27a to the financial statements.

13

Harm Reduction International

Company no. 03223265

Balance sheet

As at 31 December 2020

Note
£
Fixed assets:
12
Current assets:
13
83,536
511,288
594,824
Liabilities:
14
(434,595)
17a
11,945
-
Total unrestricted funds
General funds
Total charity funds
Cash at bank and in hand
Tangible assets
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Restricted income funds
Unrestricted income funds:
Pension reserve
Total assets less current liabilities
Debtors		 Note
£
Fixed assets:
12
Current assets:
13
83,536
511,288
594,824
Liabilities:
14
(434,595)
17a
11,945
-
Total unrestricted funds
General funds
Total charity funds
Cash at bank and in hand
Tangible assets
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Restricted income funds
Unrestricted income funds:
Pension reserve
Total assets less current liabilities
Debtors		 2020
£
£
28,419
28,419
60,878
369,550
430,428
(359,185)
160,229
188,648
188,648
176,703
51,374
-
11,945
188,648		 2019
£
34,334
34,334
71,243
594,824
(434,595)
11,945
-
105,577
105,577
54,203
51,374
105,577

The opinion of the directors is that the company is entitled to the exemptions conferred by Section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge the following responsibilities:

Approved by the trustees on 21 June 2021 and signed on their behalf by

Lucy Burns Chair

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Harm Reduction International

Statement of cash flows

For the year ended 31 December 2020

Note
Cash flows from operating activities
Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
(Gains)/losses on investments
Dividends, interest and rent from investments
(Profit)/loss on the disposal of fixed assets
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
Analysis of cash and cash equivalents and of net debt
Cash at bank and in hand
Total cash and cash equivalents
Cash and cash equivalents at the beginning of the
Net cash (used in) investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Proceeds from the sale of fixed assets
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to
exchange rate movements		 £
£
83,071
18,947
(94)
-
-
-
(22,658)
75,410
154,676
94
-
(13,032)
-
-
(12,938)
141,738
369,550
-
511,288
At 1
January
2020
Cash flows
£
£
369,550
141,738
369,550
141,738
2020		 £
£
83,071
18,947
(94)
-
-
-
(22,658)
75,410
154,676
94
-
(13,032)
-
-
(12,938)
141,738
369,550
-
511,288
At 1
January
2020
Cash flows
£
£
369,550
141,738
369,550
141,738
2020		 £
£
31,275
2,667
(153)
-
-
-
269,314
(80,489)
222,614
153
-
(14,334)
-
-
(14,181)
208,433
161,117
-
369,550
Other non-
cash
changes
At 31
December
2020
£
£
-
511,288
-
511,288
2019		 £
£
31,275
2,667
(153)
-
-
-
269,314
(80,489)
222,614
153
-
(14,334)
-
-
(14,181)
208,433
161,117
-
369,550
Other non-
cash
changes
At 31
December
2020
£
£
-
511,288
-
511,288
2019
154,676
(12,938)		 222,614
(14,181)
At 1
January
2020
£
369,550		 Other non-
cash
changes
£
-
141,738
369,550
-		 208,433
161,117
-
511,288 369,550
Cash flows
£
141,738		 At 31
December
2020
£
511,288
369,550 141,738 - 511,288

15

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

1 Accounting policies

a) Statutory information

Harm Reduction International is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address is 61 Mansell Street, Aldgate, London.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006/Charities Act 2011.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

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

d) Going concern

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

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Conference income is recognised as and when the actual event takes place.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

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Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

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.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

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Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

j) Allocation of support costs

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

k) Foreign currencies

Monetary assets and liabilities denominate in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the statement of financial activities.

l) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

n) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

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Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

1 Accounting policies (continued)

o) Short term deposits

Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.

p) Cash at bank and in hand

q) Creditors and provisions

r) Financial instruments

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

s) Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

2 Income from donations and legacies

Sundry income
Furlough grant		 Unrestricted
£
82
47,923		 -
-		 2020
Total
£
82
47,923		 Unrestricted
£
90
-		 2019
Total
£
-
90
-
-
-
90
48,005 - 48,005 90

19

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

3 Income from charitable activities

Unrestricted
£
Project work
24,100
217,637
Other income from charita
29,878
Sub-total for Project work
271,615
Conferences & Support
51
Sub-total for Conferences
51
271,666
OSF
Total income from
charitable activities		 Unrestricted
£
Project work
24,100
217,637
Other income from charita
29,878
Sub-total for Project work
271,615
Conferences & Support
51
Sub-total for Conferences
51
271,666
OSF
Total income from
charitable activities		 £
578,285
-
-
Restricted		 2020
Total
£
602,385
217,637
29,878		 Unrestricted
£
235,305
-
-		 2019
Total
£
£
495,625
730,930
-
-
-
-
495,625
730,930
-
734,075
-
734,075
495,625
1,465,005
Restricted
578,285
-		 849,900
51		 235,305
734,075
- 51 734,075
271,666 578,285 849,951 969,380

4 Income from investments

Bank interest receivable Unrestricted
£
94		 -
Restricted		 2020
Total
£
94		 Unrestricted
£
153		 2019
Total
£
-
153
-
153
Restricted
94 - 94 153

All income from investments is unrestricted.

20

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

Raising
funds
£
Staff costs (Note 8)
-
Other staff costs
-
Project expenses
-
Travelling costs
-
Consultancy fees
-
Recruitment and training costs
-
Journals and subscription costs
-
Meeting expenses
-
Legal, professional and regulatory
-
Conference expenses
-
Conference scholarships
-
Depreciation
-
Advertising and promotion costs
-
Foreign exchange gains and losses
-
Audit and accountancy fees
-
Repairs and maintenance
-
Rent
-
Insurance
-
Printing, postage and stationery
-
Communications
-
Conference expenses
-
Website maintenance and
computer running costs
-
Office expenses
-
-
Support costs
-
Governance costs
-
Total expenditure 2020
-
Total expenditure 2019
-		 Charitable activities Charitable activities Governance
costs
£
-
-
-
-
-
-
-
3,384
-
-
-
-
-
-
8,783
-
-
-
-
-
-
-
-
12,167
-
(12,167)
-
-		 Support
costs
£
-
4,415
-
1,010
9,150
11,344
90
361
-
-
-
18,947
-
4,626
-
30
14,425
3,492
339
7,676
-
3,533
1,363
80,801
(80,801)
-
-
-		 2020 Total
2019
Total
£
£
414,355
491,237
12,305
2,406
59,157
131,126
10,921
102,819
163,781
112,840
16,216
10,360
1,476
9,515
4,918
11,403
614
6,642
2,026
39,286
-
67,249
18,947
2,667
-
25,517
4,626
4,021
12,833
10,578
30
495
28,992
38,969
3,492
3,635
487
10,418
48,985
51,985
-
254,950
6,427
31,793
4,391
14,062
814,979
1,433,973
-
-
-
-
814,979
1,433,973
Project Work
£
414,355
7,219
58,885
9,911
154,631
4,872
1,386
1,173
-
-
-
-
-
-
4,050
-
9,175
-
148
34,065
-
2,894
1,214
703,978
-
12,167
716,145
973,123		 Conference
& support
£
-
671
272
-
-
-
-
-
614
2,026
-
-
-
-
-
-
5,392
-
7,244
-
-
1,814
18,033
80,801
-
98,834
460,850

21

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

6 Analysis of expenditure (prior year)

Charitable activities

Raising
funds
£
Staff costs (Note 8)
-
Other staff costs
-
Project expenses
-
Travelling costs
-
Consultancy fees
-
Recruitment and training costs
-
Journals and subscription costs
-
Meeting expenses
-
Legal, professional and regulatory
-
Conference expenses
-
Conference scholarships
-
Depreciation
-
Advertising and promotion costs
-
Foreign exchange gains and losses
-
Audit and accountancy fees
-
Repairs and maintenance
-
Rent
-
Insurance
-
Printing, postage and stationery
-
Communications
-
Conference expenses
-
Website maintenance and
computer running costs
-
Office expenses
-
-
Support costs
-
Governance costs
-
Total expenditure 2019
-		 Project Work
£
491,237
2,406
131,126
102,819
112,807
10,360
1,136
480
5,382
-
-
-
-
-
-
-
-
-
-
-
-
-
-
857,753
93,869
21,501
973,123		 Conference
& support
£
-
-
-
-
-
-
-
-
-
39,286
67,249
-
-
-
-
-
-
-
-
-
-
-
-
106,535
354,315
-
460,850		 Governance
costs
£
-
-
-
-
-
-
-
10,923
-
-
-
-
-
-
10,578
-
-
-
-
-
-
-
-
21,501
-
(21,501)
-		 Support
costs
2019 Total
£
£
-
491,237
-
2,406
-
131,126
-
102,819
33
112,840
-
10,360
8,379
9,515
-
11,403
1,260
6,642
-
39,286
-
67,249
2,667
2,667
25,517
25,517
4,021
4,021
-
10,578
495
495
38,969
38,969
3,635
3,635
10,418
10,418
51,985
51,985
254,950
254,950
31,793
31,793
14,062
14,062
448,184
1,433,973
(448,184)
-
-
-
-
1,433,973

22

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2020 2019
£ £
Depreciation 18,947 2,667
Operating lease rentals payable:
Property 28,992 -
Auditor's remuneration (including VAT):
Audit - 10,578
Independent examination 7,200 -
Foreign exchange gains or losses 4,626 4,021

Staff costs were as follows:

Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2020
2019
£
£
349,137
426,013
34,942
39,651
30,276
25,573
414,355
491,237

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2020 2019
No. No.
£60,000 - £69,999 1 1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £82,298 (2019: £84,069).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2019: £nil). No charity trustee received payment for professional or other services supplied to the charity (2019: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £3,384 (2019: £9,194) incurred by 2 (2019: 6) members relating to attendance at meetings of the trustees.

9 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 12 (2019: 9).

23

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

10 Related party transactions

HRI declares two matters pertaining to related parties and relationships:

any influence of that trustee, and remunerated in accordance with the HRI salary bands, without influence of that trustee.

used by HRI employees in Liverpool (valued at HIT £748.95 + VAT per month). There are no outstanding balances. The directors of HIT Projects Limited are related parties: Patrick O’Hare, HRI trustee; Madeleine O’Hare, HRI employee and Lucy O’Hare, HRI employee.

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

11 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

12 Tangible fixed assets

Tangible fixed assets
At the end of the year
Cost or valuation
At the start of the year
At the end of the year
Net book value
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
Depreciation		 Leasehold
property
£
34,334
13,032		 Fixtures and
fittings
£
2,212
-		 Computer
equipment
£
18,829
-		 Motor
vehicles
£
-
-		 Total
£
55,375
13,032
47,366 2,212 18,829 - 68,407
-
18,947		 2,212
-		 18,829
-		 -
-		 21,041
18,947
18,947 2,212 18,829 - 39,988
28,419 - - - 28,419
34,334 - - - 34,334

All of the above assets are used for charitable purposes.

24

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

13 Debtors

Trade debtors
Other debtors
Prepayments
Accrued income		 2020
2019
£
£
23,051
6,676
4,567
2,378
33,707
51,824
22,211
-
83,536
60,878

14 Creditors: amounts falling due within one year

Amounts due for Pensions
Taxation and social security
Accruals
Deferred income (note 17)
Trade creditors
Other creditors		 2020
2019
£
£
40,618
17,451
15,569
7,930
183
2,485
13,109
-
19,858
16,567
345,258
314,752
434,595
359,185

15 Deferred income

Deferred income comprises grant income received during the year for use in 2021.

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2020
2019
£
£
314,752
414,143
(314,752)
309,499
345,258
(408,890)
345,258
314,752

16a Analysis of net assets between funds (current year)

Analysis of net assets between funds (current year)
Tangible fixed assets
Current liabilities
Current assets
Net assets at 31 December 2020		 General
unrestricted
£
28,419
418,122
(434,596)		 Designated
£
-
-
-		 Restricted
Total funds
£
£
-
28,419
176,703
594,825
-
(434,596)
176,703
188,648
11,945 -

25

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

16b Analysis of net assets between funds (prior year)

Current liabilities
UNAIDS TSM - Sust.Financing
Total restricted funds
General funds
Total funds
Total unrestricted funds
GSHR 2020: Swiss Federal Office of
GSHR 2020: UNAIDS TSM
Robert Carr - GDPI
MAC AIDS FUNDS UK
Open Society Foundation - LAWYERS
Global Fund/Alliance India - Impact
Pension reserve
Open Society Foundation - SAME
EJAF COVID-19
Unrestricted funds:
Tangible fixed assets
Current assets
EC Death Penalty
Robert Carr Fund
Movements in funds (current year)
Restricted funds:
Global Fund/Alliance India
Open Society Foundation - Emergency
Net assets at 31 December 2019		 At 1
January
2020
£
6,565
28,895
18,743
-
-
-
-
-
-
-
-
-
-		 General
unrestricted
£
34,334
376,225
(359,185)		 Designated
£
-
-
-		 Restricted
£
-
54,203
-		 Total funds
£
34,334
430,428
(359,185)
51,374 - 54,203 105,577
Income &
gains
£
62,458
54,825
116,324
1,646
8,060
30,181
9,325
56,071
23,818
45,057
75,000
85,471
10,049		 Expenditure
& losses
£
(70,487)
(83,523)
(127,361)
(1,646)
(7,197)
(30,181)
(4,390)
(16,956)
(23,818)
(10,292)
(64,853)
(9,162)
(10,049)		 Transfers
£
4,327
(197)
-
-
-
-
-
-
-
-
-
-
-		 At 31
December
2020
£
2,863
-
7,706
-
863
-
4,935
39,115
-
34,765
10,147
76,309
-
-
54,203 578,285 (459,915) 4,130 176,703
51,374 319,765 (355,064) (4,130) 11,945
51,374 319,765 (355,064) (4,130) 11,945
- - - - -
105,577 898,050 (814,979) - 188,648

17a Movements in funds (current year)

The narrative to explain the purpose of each fund is given at the foot of the note below.

26

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

17b Movements in funds (prior year)

Movements in funds (prior year)
Total restricted funds
Total designated funds
General funds
OSF Death Penalty
TIDES (MAC AIDS)
Total funds
Global Fund/Alliance India
Unrestricted funds:
Restricted funds:
EC Death Penalty
EJAF
Robert Carr
Federal Office of Public Health
PITCH
Total unrestricted funds
Pension reserve		 At 1
January
2019
£
6,693
110,263
9,569
(1,358)
3,534
(18)
11,092
-		 Income &
gains
£
48,013
153,732
44,936
115,521
3,839
24,061
59,005
46,518		 Expenditure
& losses
£
(48,141)
(235,100)
(54,544)
(95,420)
(7,373)
(24,043)
(70,097)
(46,518)		 Transfers
£
-
-
39
-
-
-
-
-		 At 1
January
2020
£
6,565
28,895
-
18,743
-
-
-
-
139,775 495,625 (581,236) 39 54,203
- - - - -
(65,473) 969,623 (852,737) (39) 51,374
(65,473) 969,623 (852,737) (39) 51,374
- - - - -
74,302 1,465,248 (1,433,973) - 105,577

Purposes of restricted funds

Global Fund/Alliance India

Global Fund support for research on the investment in harm reduction in seven countries in Asia. Transfers from Unrestricted funds, made to agree balance brought forward with donor's audited account,

EC Death Penalty

European Commission funding for Harm Reduction International’s research and advocacy related to the abolition of the death penalty for drug offences.

As project closed in March 2020, the transfer is to write off outstanding exchange differences against unrestricted funds.

Robert Carr Fund

Robert Carr funding provides support for HRI’s research and advocacy across all teams – public health, human rights, sustainable financing and conference.

Open Society Foundation - Emergency Powers

OSF support for HRI to undertake research and advocacy on the impact of COVID-19 emergency powers on the rights of marginalised populations; part of a global human rights campaign.

GSHR 2020: Swiss Federal Office of Public Health

The Federal Office of Public Health provided a small amount of funding in support of research and documentation of the status of harm reduction in Western Europe, linked to the Global State of Harm Reduction report.

27

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

GSHR 2020: UNAIDS TSM

Via the technical support mechanism, UNAIDS supported consultants around the world to undertake research for the Global State of Harm Reduction.

UNAIDS TSM - Sust.Financing

Via the technical support mechanism, UNAIDS supported HRI to undertake analysis on funding for harm reduction in low- and middle-income countries.

Open Society Foundations - SAME

OSF support for HRI to facilitate a regional coordination and advocacy amongst human rights and criminal justice actors in South Asia and the Middle East.

Elton John AIDS Foundation - COVID-19

EJAF funding for HRI to support a partner in Kenya with HIV prevention and harm reduction during the pandemic.

Robert Carr Fund - GDPI

Robert Carr Fund support for a consortium of actors to develop a global drug policy index.

MAC AIDS Fund UK

MAC AIDS Fund support for the Global State of Harm Reduction 2020, and additional research and advocacy for harm reduction with partners in Kenya and Uganda.

Open Society Foundation - LAWYERS

OSF support for HRI to host a global network of lawyers providing services for populations vulnerable to HIV, including advocacy and training.

Global Fund/Alliance India - Impact Report

Global Fund support for a study documenting the impact of the regional advocacy grant.

18 Operating lease commitments payable as a lessee

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

each of the following periods
Less than one year
One to five years
Over five years		 2020
2019
£
£
36,000
10,785
72,000
7,190
-
-
108,000
17,975
Property		 2020
2019
£
£
-
-
-
-
-
-
-
-
Equipment
108,000 17,975

28

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2020

19 Post balance sheet events

The charity decided to postpone its 2021 conference to April 2023 due to the impact of the Corona Virus and in recognition of the global inequity surrounding vaccine roll out, however, instead of the 2021 Conference, the Charity have plans for an online festival at the end of 2021 (‘Constellations’), which will also allow for the celebration of HRI’s 25th anniversary.

20 Legal status of the charity

The Charity is controlled by the Trustees.

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

29