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2021-12-31-accounts

Company number: 3223265 Charity number: 1117375

Harm Reduction International

Report and financial statements For the year ended 31 December 2021

Harm Reduction International

Contents

For the year ended 31 December 2021

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 2 Independent examiners 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 2021

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) Saumya Kailasapathy Vice Chair John Porter Treasurer (appointed November 2021) Kojo Koram Secretary Alexander Stevens Patrick O’Hare (until October 2021) Olga Belyaeva Oluseyi Kehinde Raminta Stuikyte 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

1

Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2021

The trustees present their report and the audited financial statements for the year ended 31 December 2021.

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 2021 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

2

Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2021

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 area 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 area 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 area of new collaborations and emerging trends , we worked to convene the sector and foster dialogue on emerging trends via Constellations: An Online Festival on Drugs and Harm Reduction. We also continued our work to foster learning and exchange on stimulants, and on the intersections of drug policy, gender and racial justice. The Harm Reduction International conference (next in 2023) 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

3

Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2021

the appropriate mix of skills. For all sub-grants HRI and the partner enter into a contract which 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 the people it seeks to support 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 2021, Harm Reduction International undertook work to build the evidence base for harm reduction with briefings on integrated services, harm reduction in prisons, and via a summary data update of our global mapping initiative, the Global State of Harm Reduction. We completed an updated analysis of funding available for harm reduction in low- and middle-income countries, and presented the findings to the major international donors in the sector to strengthen coordination. We contributed to the evidence base for rights-based drug policy through our annual tracking of the use of the death penalty for drug offences, by documenting the negative impact of securitised COVID-19 responses on vulnerable groups and people who use drugs, and by conducting the first global mapping of COVID-19 national vaccination plans and their roll-out in prisons. These initiatives show progress and regressions in practice, law and policy; and inform our advocacy.

We worked with national partners to support local advocacy, research and harm reduction service delivery efforts; and engaged with governments, the UN and funders to convey the cost effectiveness of, 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 UN Human Rights Council, the UN Commission on Narcotic Drugs, 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 observe an ongoing 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 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.

4

Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2021

In 2020, HRI made the decision to postpone the 2021 Harm Reduction International conference until April 2023. In 2021, we addressed the gap by shifting to a virtual format, Constellations: An Online Festival of Drugs and Harm Reduction. Constellations was successfully in convening more than 1000 people from 73 countries in energising learning, exchange and debate on emerging issues.

We are further addressing some of the learning and exchange gaps caused by the pandemic, by hosting more frequent, short online events.

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 pandemic in 2020 and its ongoing impact in 2021.

HRI’s 2022-23 forecast demonstrates its ability to continue as a going concern via a number of multi-year grants and diverse streams of income. As a policy and advocacy organisation, HRI has been able to adapt and continue many planned activities notwithstanding the restrictions on movement and COVID-19 mitigation measures in place for much of 2021. 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. We are working to mitigate the 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. We were successful in securing some funding support for 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. HRI more effectively leveraged restricted funding in 2021 and was largely able to maintain the income and expenditure levels of 2020 (in comparison with non-conference years).

5

Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2021

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). We continue to analyse the impact of COVID-19 related risks (first incorporated in the risk register in April 2020). COVID-19 continued to impact HRI’s risk profile in 2021; mitigating actions were taken to reduce associated risks.

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

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2021

Reserves policy and going concern

HRI’s aim is to hold three months’ operating costs in reserve. In 2021, HRI made strong progress towards this aim, at the end of the year, HRI carried forward £60,856 in unrestricted funding.

HRI board and key management personnel have reset their ambitions for reaching this target over 2022-23, 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 adopted its 2022-2025 Strategic Plan and re-energised its vision for a world in which drug policies promote dignity, health and rights. The 2025 Strategy Plan takes into account the rapidly evolving global environment, and HRI’s leadership role at the intersection of harm reduction, drug policy and human rights.

HRI has a strong track record of contributing to the evidence-base for harm reduction and advocating for rights-based responses to drugs. HRI will continue its leading work across these areas. HRI is also unique in convening the biennial Harm Reduction International conference, which is the main global forum for the exchange of information and best practice at the intersection of human rights, drug policy and harm reduction.

Under the 2025 Strategy, HRI plans to strengthen its research, advocacy and leadership in the sector, and highlight the negative impact of criminalisation and the compounding effects of intersectional vulnerabilities; specifically, how drug policy interacts with gender, ethnicity, race, poverty and socioeconomic status. HRI is committed to centring equity across its work, including by centring the expertise and leadership of the community of people who use drugs, reflecting on power dynamics within our partnerships, and structurally (re)balancing power.

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.

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Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2021

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.

Related parties and relationships with other organisations

HRI declares two matters pertaining to related parties and relationships:

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.

8

Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2021

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.

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.

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 2021 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.

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

9

Harm Reduction International

Trustees’ annual report

For the year ended 31 December 2021

The trustees’ annual report has been approved by the trustees on 27 April 2022 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 13 December 2021.

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:

  1. Accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

  2. The accounts do not accord with those records; or

  3. The accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. The accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities; or

11

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: 22 June 2022

12

Harm Reduction International

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

For the year ended 31 December 2021

Note
Income from:
2
3
3
4
5
5
7
Reconciliation of funds:
Total funds carried forward
Transfers between funds
Net income / (expenditure) before other
recognised gains and losses
Net movement in funds
Total funds brought forward
Net income / (expenditure) for the year
Project work
Conferences & support
Total expenditure
Net income / (expenditure) before net
gains / (losses) on investments
Charitable activities
Project work
Conference & support
Donations and legacies
Charitable activities
Investments
Total income
Expenditure on:		 Unrestricted
£
101,365
263,650
63,033
23		 Restricted
£
-
395,334
-
-		 2021
Total
£
101,365
658,984
63,033
23		 Unrestricted
£
48,005
271,615
51
94		 Restricted
£
-
578,285
-
-		 2020
Total
£
48,005
849,900
51
94
428,071 395,334 823,405 319,765 578,285 898,050
2,158
377,002		 470,341
-		 472,499
377,002		 256,230
98,834		 459,915
-		 716,145
98,834
379,160 470,341 849,501 355,064 459,915 814,979
48,911 (75,007) (26,096) (35,299) 118,370 83,071
48,911
-		 (75,007)
-		 (26,096)
-		 (35,299)
(4,130)		 118,370
4,130		 83,071
-
48,911 (75,007) (26,096) (39,429) 122,500 83,071
48,911
11,945		 (75,007)
176,703		 (26,096)
188,648		 (39,429)
51,374		 122,500
54,203		 83,071
105,577
60,856 101,696 162,552 11,945 176,703 188,648

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

Balance sheet

Balance sheet Balance sheet
As at 31 December 2021 Company no. 03223265
Note
£
Fixed assets:
12
Current assets:
13
30,555
882,388
912,943
Liabilities:
14
(769,322)
17a
60,856
Total unrestricted funds
Total assets less current liabilities
Net assets excluding pension asset / (liability)
Debtors
Restricted income funds
Unrestricted income funds:
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets / (liabilities)
Total net assets / (liabilities)
Cash at bank and in hand
Tangible assets
General funds
Total charity funds		 2021
£
18,931		 £
83,536
511,288		 2020
£
28,419
18,931
143,621		 28,419
160,229
912,943
(769,322)		 594,824
(434,595)
60,856 11,945
162,552 188,648
162,552 188,648
162,552 188,648
101,696
60,856		 176,703
11,945
162,552 188,648

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 27 April 2022 and signed on their behalf by

Lucy Burns Chair

John Porter Treasurer

14

Harm Reduction International

Statement of cash flows

For the year ended 31 December 2021

[A statement of cash flows is only required for larger charities with income of more than £500k]

Note
Cash flows from operating activities
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
(Gains)/losses on investments
Dividends, interest and rent from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by / (used in) 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 end of the year
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the
year
Net cash provided by / (used in) investing
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets		 £
£
(26,096)
9,488
(13)
52,981
334,727
371,087
13
-
13
371,100
511,288
882,388
At 1
January
2021
Cash flows
£
£
511,288
371,100
511,288
371,100
2021		 £
£
(26,096)
9,488
(13)
52,981
334,727
371,087
13
-
13
371,100
511,288
882,388
At 1
January
2021
Cash flows
£
£
511,288
371,100
511,288
371,100
2021		 £
£
83,071
18,947
(94)
-
(22,658)
75,410
154,676
94
(13,032)
(12,938)
141,738
369,550
511,288
Other non-
cash
changes
At 31
December
2021
£
£
-
882,388
-
882,388
2020		 £
£
83,071
18,947
(94)
-
(22,658)
75,410
154,676
94
(13,032)
(12,938)
141,738
369,550
511,288
Other non-
cash
changes
At 31
December
2021
£
£
-
882,388
-
882,388
2020
371,087
13		 154,676
(12,938)
At 1
January
2021
£
511,288		 Other non-
cash
changes
£
-
371,100
511,288		 141,738
369,550
882,388 511,288
Cash flows
£
371,100		 At 31
December
2021
£
882,388
511,288 371,100 - 882,388

15

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2021

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), 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.

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. Grants may be deferred when either the performance related conditions are not met or there are time related restrictions.

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.

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.

h) Fund accounting

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.

16

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2021

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.

k) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

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.

Project Work 70%
Support costs 20%
Governance costs 10%

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.

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.

m) Operating leases

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

n) 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:

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.

p) Short term deposits

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

q) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

17

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

r) Creditors and provisions

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

s) Financial instruments

t) 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

Income from donations and legacies
Sundry income
Coronavirus Job Retention Scheme grant
Donated services
Project work
Open Society Foundations
Other income from charitable activity
Sub-total for Project work
Conferences & Support
Sub-total for Conferences & Support
Bank interest receivable
Total income from charitable activities
Income from charitable activities
Income from investments		 Unrestricted
£
82
70,909
30,374		 £
-
-
-
Restricted		 2021
Total
£
82
70,909
30,374		 Unrestricted
£
82
-
47,923		 £
-
-
-
Restricted		 2020
Total
£
82
-
47,923
101,365 - 101,365 48,005 - 48,005
Unrestricted
£
30,000
233,650
-		 £
395,334
-
-
Restricted		 2021
Total
£
425,334
233,650
-		 Unrestricted
£
24,100
217,637
29,878		 £
578,285
-
-
Restricted		 2020
Total
£
602,385
217,637
29,878
263,650
63,033		 395,334
-		 658,984
63,033		 271,615
51		 578,285
-		 849,900
51
63,033 - 63,033 51 - 51
326,683 395,334 722,017 271,666 578,285 849,951
Unrestricted
£
23		 Restricted
£
-		 2021
Total
£
23		 Unrestricted
£
94		 Restricted
£
-		 2020
Total
£
94
23 - 23 94 - 94

All income from investments is unrestricted.

18

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2021

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 fees
Conference expenses
Depreciation
Foreign exchange gains and losses
Audit and accountancy fees
Repairs and maintenance
Rent
Insurance
Printing, postage and stationery
Communications
Website maintenance and computer running costs
Office expenses
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Charitable activities Charitable activities Governance
costs
£
-
-
-
-
-
-
-
-
1,086
-
-
-
1,200
-
-
-
-
-
-
-		 Support
costs
£
215,665
2,216
-
688
98
2,000
811
61
-
4,565
9,488
11,529
-
-
29,191
3,710
83
8,611
6,953
1,060		 2021 Total
£
480,577
2,216
138,734
1,829
94,572
2,295
1,270
1,804
2,431
8,446
9,488
9,978
1,200
-
44,400
7,915
100
30,075
9,916
2,255		 2020 Total
£
414,355
12,305
59,157
10,921
163,781
16,216
1,476
4,918
614
2,026
18,947
4,626
12,833
30
28,992
3,492
487
48,985
6,427
4,391
Project Work
£
195,910
-
138,602
977
94,474
295
459
1,743
-
387
-
(1,551)
-
-
15,209
-
10
19,622
2,963
1,113		 Conference
& support
£
69,002
-
132
164
-
-
-
-
1,345
3,494
-
-
-
-
-
4,205
7
1,842
-
82
80,273
296,729
-
377,002
98,834
470,213
2,286		 2,286
-
(2,286)		 296,729
(296,729)
-		 849,501
-
-		 814,979
-
-
472,499 - - 849,501 814,979
782,367 - -

.

19

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2021

6 Analysis of expenditure (prior year) [the charitable activities should correspond to those itemised for income purposes]

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 fees
Conference expenses
Depreciation
Foreign exchange gains and losses
Audit and accountancy fees
Repairs and maintenance
Rent
Insurance
Printing, postage and stationery
Communications
Website maintenance and computer running costs
Office expenses
Support costs
Governance costs
Total expenditure 2020		 Charitable activities Charitable activities Governance
costs
£
-
-
-
-
-
-
-
3,384
-
-
-
-
8,783
-
-
-
-
-
-		 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		 2020 Total
£
414,355
12,305
59,157
10,921
163,781
16,216
1,476
4,918
614
2,026
18,947
4,626
12,833
30
28,992
3,492
487
48,985
6,427
4,391
Project
Work
£
480,577
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		 Conference
& support
£
-
671
272
-
-
-
-
-
614
2,026
-
-
-
-
5,392
-
-
7,244
-
1,814
770,200
12,167		 18,033
80,801
-		 12,167
-
(12,167)		 80,801
(80,801)
-		 814,979
-
-
782,367 98,834 - - 814,979

20

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2021

7 Net income / (expenditure) for the year

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2021 2020
£ £
Depreciation 9,488 18,947
Operating lease rentals payable:
Property 28,992 28,992
Auditor's remuneration (excluding VAT):
Independent examination 3,500 6,000
Foreign exchange gains or losses 9,978 4,626

8 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes		 2021
£
428,616
37,838
14,123		 2020
£
349,137
34,942
30,276
480,577 414,355

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

2021 2020
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 £82,292 (2020: £82,298).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £314 (2020: £3,384) incurred by 1 (2020: 2) member 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 (2020: 12).

10 Related party transactions

HRI declares two matters pertaining to related parties and relationships:

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.

21

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2021

For the year ended 31 December 2021
12
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
Depreciation
Tangible fixed assets		 Leasehold
property
£
47,366		 Fixtures and
fittings
£
2,212		 Computer
equipment
£
18,829		 Motor
vehicles
£
-		 Total
£
68,407
47,366 2,212 18,829 - 68,407
18,947
9,488		 2,212
-		 18,829
-		 -
-		 39,988
9,488
28,435 2,212 18,829 - 49,476
18,931 - - - 18,931
28,419 - - - 28,419

All of the above assets are used for charitable purposes.

13
14
Prepayments
Accrued income
Other creditors
Accruals
Deferred income (note 15)
Trade creditors
Amounts due for Pensions
Trade debtors
Other debtors
Taxation and social security
Creditors: amounts falling due within one year
Debtors		 2021
£
9,360
180
20,363
652		 2020
£
23,051
4,567
33,707
22,211
30,555 83,536
2021
£
4,423
10,401
-
2,760
9,154
742,584		 2020
£
40,618
15,569
183
13,109
19,858
345,258
769,322 434,595

15 Deferred income

Deferred income comprises grant income received during the year for

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		 2021
£
345,258
(345,258)
742,584		 2020
£
314,752
(314,752)
345,258
742,584 345,258

22

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2021

16a
Analysis of net assets between funds (current year)
16b
Current liabilities
17a
UNAIDS Technical Support Mechanism (TSM)
Total restricted funds
General funds
Movements in funds (current year)
Restricted funds:
Tangible fixed assets
Net assets at 31 December 2020
Open Society Foundations - SAME
UNODC - COVID-19 Vaccinations and Harm
Unrestricted funds:
Net assets at 31 December 2020
Analysis of net assets between funds (prior year)
Tangible fixed assets
Current assets
Global Fund (CRG) Strategic Initiative – LANPUD
Robert Carr Fund - Harm Reduction Consortium
Open Society Foundations - LAWYERS
Global Fund (CRG) Strategic Initiative - UHRN
Global Fund/Alliance India
Open Society Foundations - Emergency Powers
GSHR 2020: Swiss Federal Office of Public Health
UNODC – Moldova Prisons Project
Robert Carr Fund – Global Drug Policy Index
MAC AIDS FUNDS UK
Current liabilities
Net current assets
Total funds
Total unrestricted funds		 At 1
January
2021
£
2,863
-
7,706
-
863
-
4,935
39,115
-
34,765
10,147
76,309
-		 General
unrestricted
£
18,931
811,247
(769,322)		 Designated
£
-
-
-		 Restricted
£
-
101,696
-		 Total funds
£
18,931
912,943
(769,322)
60,856 - 101,696 162,552
General
unrestricted
£
28,419
418,121
(434,595)		 Designated
£
-
-
-		 Restricted
£
-
176,703
-		 Total funds
£
28,419
594,824
(434,595)
11,945 - 176,703 188,648
Income &
gains
£
9,029
18,049
109,262
111,610
7,628
14,409
17,738
21,700
652
29,370
-
50,368
5,519		 Expenditure
& losses
£
(11,892)
(13,600)
(116,968)
(111,610)
(8,491)
(14,409)
(22,673)
(42,582)
(652)
(64,135)
(10,147)
(53,182)
-		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 At 31
December
2021
£
-
4,449
-
-
-
-
-
18,233
-
-
-
73,495
5,519
176,703 395,334 (470,341) - 101,696
11,945 428,071 (379,160) - 60,856
11,945 428,071 (379,160) - 60,856
188,648 823,405 (849,501) - 162,552

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

23

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2021

17b Movements in funds (prior year)

Movements in funds (prior year)
UNAIDS TSM - Sust.Financing
Total restricted funds
General funds
Robert Carr - GDPI
Open Society Foundation - SAME
EJAF COVID-19
MAC AIDS FUNDS UK
Restricted funds:
EC Death Penalty
Robert Carr Fund
GSHR 2020: Swiss Federal Office of Public Health
GSHR 2020: UNAIDS TSM
Total unrestricted funds
Global Fund/Alliance India
Unrestricted funds:
Open Society Foundation - Emergency Powers
Open Society Foundation - LAWYERS
Global Fund/Alliance India - Impact Report
Total funds		 At 1
January
2020
£
6,565
28,895
18,743
-
-
-
-
-
-
-
-
-
-		 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)
(31,847)
(4,390)
(16,956)
(23,818)
(10,292)
(63,187)
(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

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.

Global Fund (CRG) Strategic Initiative – LANPUD

Global Fund CRG technical assistance to strengthen the participation of civil society and communities in Global Fund processes in Latin America.

Robert Carr Fund - Harm Reduction Consortium

Robert Carr Fund support for research and advocacy across all teams – public health, human rights, sustainable financing and conference.

Open Society Foundations - Emergency Powers

OSF support for research and advocacy on the impact of COVID-19 emergency powers on the rights of marginalised populations; part of a global ‘Resist Emergency Powers’ campaign.

GSHR 2020: Swiss Federal Office of Public Health

The Swiss Federal Office of Public Health support for research and documentation of the status of harm reduction in Western Europe, linked to the Global State of Harm Reduction report.

24

Harm Reduction International

Notes to the financial statements

For the year ended 31 December 2021

Purposes of restricted funds (continued)

UNODC – Moldova Prisons Project

UNODC support for research and analysis on the accessibility, acceptability, and quality of harm reduction services in Moldovan prisons.

UNAIDS Technical Support Mechanism (TSM)

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

Open Society Foundations - SAME

OSF support for regional coordination and advocacy amongst human rights, death penalty and criminal justice actors in South Asia and the Middle East.

UNODC - COVID-19 Vaccinations and Harm Reduction

UNODC support to develop a technical guidance to strengthen the provision of COVID-19 vaccines for people who use drugs.

Robert Carr Fund – Global Drug Policy Index

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 research on access to harm reduction services and domestic budget advocacy in Kenya and Uganda.

Open Society Foundation - LAWYERS

OSF support for a global network of lawyers providing services for populations vulnerable to HIV, including advocacy and training (Lawyering on the Margins).

Global Fund (CRG) Strategic Initiative - UHRN

Global Fund CRG technical assistance to develop a harm reduction resource mobilisation and engagement plan to support advocacy for increased allocation of resources to harm reduction programmes in Uganda.

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

following periods
Less than one year
One to five years		 2021
2020
£
£
36,000
36,000
36,000
72,000
72,000
108,000
Property		 2021
2020
£
£
-
-
-
-
-
-
Equipment
72,000 108,000 - -

19 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.

25