Company number.. 3223265 Charity number.. 1117375 Harm Reduction International Report and financial statements For the year ended 31 December 2022 SAYER VINCENT Harm Reduction International Contents For the year ended 31 December 2022 Reference and administrative information Tru5tees' annual report Independent auditor's report Statement of financial activities lincorporating an income and expenditure account) Balance sheet Statement of cash flows Notes to the financial statements Harm Reduction International Reference and administrative information For the year ended 31 December 2022 Company number Country of incorporation 3223265 England & Wales Charity number Country of registration 1117375 England & Wales Registered office and operational address 61 Mansell Street, London El 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 Saumya Kailasapathy Vice Chair (until September 202 21 John Porter Treasurer Kojo Koram Secretary Alexander Stevens Olga Belyaeva Oluseyi Kehinde Raminta Stu ikyte Key management personnel Naomi Burke-shyne, Executive Director Anne Taiwo, Finance Manager Colleen Daniels, Deputy Director Bankers Natwest Aintree Black Bull, Cedar Rd, Liverpool L9 OEG Sollcltors Bates Wells 10 Queen St Pl, London EC4R I BE Audltor Sayer Vincent LLP Chartered Accountant5 and Statutory Auditor Invicta House 108-114 Golden Lane LONDON ECIY OTL Harm Reduction International Trustees. annual report For the year ended 31 December 2022 The trustees present their report and the audited financial statements for the year ended 31 December 2022. Reference and administrative information set out on page I 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 Accou niing and Reporting by Charities.. SORP applicable to charities preparing their accounts in accordance with FRS 102. Objectives and activities Purposes and aims Our vision is a world in which drug policies uphold dignity, health and rights. We use data and advocacy to promote harm reduction and drug pol icy reform. We show how rights-based, evidence-informed responses to drugs contribute to healthier, safer societies, and why investing in harm reduction makes sense. The objectives of Harm Reduction International IH Rl) are to promote evidence-based and human rights complianr public health policy and practice by.. al undertaking research into drug use, drug related harm and evidence-based public health responses to drug use, drug enforcement and public health, bl undertaking research on human rights issues relating to drug use, drug enforcement and public health, c) promoting policies and strategies to reduce the negative health and social consequences a550ciated with d rug use. dleducating the public, national and international agencie5 involved in reducing the negative health and social consequences associated with drug use. el disseminating and sharing information with national and international agencies involved in reducing the negative health and social consequences associated with drug use, and t) supporting the involvement of civil society, including the perspectives of people who use drugs within national and international policy and decision-making on drug related issues. In 2022 Harm Reduction International undertook the following main activities to further the charity's purpose.. al convening at Harm Reduction International events for learning, sharing and activism. and building solidarity within the harm reduction and drug policy movements. blfostering new allyship with health and social justice movements, and collaborating to promote shared advocacy aims c) using data, analysis and advocacy to dou ble the amount of funding available for harm reduction and drug policy reform. dl strengthening technical and normative support for harm reduction through strategic engagement at international level and partnerships at regional and national level. Harm Reduction International Trustees. annual report For the year ended 31 December 2022 el using international human rights standards to challenge the use of d rug control to justify rights violations, and promoting the rights of marginalised grou ps. f) docu menting and challenging the use of drug control where it has a disproportionately negative impact on Black, Brown, Indigenous and ethnic minority individuals and communities. 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 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 trustee5 have referred to the gu idance contained in the Charity Commi55ion's general gu idance on public benefit when reviewing the charity'5 aim5 and objective5 and in planning its future activitie5. In particular, the trustees consider how planned activitie5 will contribute to the aims and objectives that have been set. In 2022, HRI undertook a review of its 2017-2021 strategic plan and developed its 202 2-202 5 Strategic plan. In line with the new strategic plan, HRI'S objectives and activitie5 are designed to contribute to three key outcomes.. Outcome I '. The harm reduction and drug policy reform movements are characterised by solidarity and equity, informed by evidence, and allied with health and social justice movements. Outcome 2.. Harm reduction approaches and seNices are widely accepted, community-led and sustainably funded. Outcome 3-. Drug policy is aligned with international human rights standards and advances equity, racial and social justice. HRI focuses on these outcomes to advance our overarching vision of a world in which drug policies uphold dignity, health and rights. We organise our work across four teams.. conference, public health and social policy, sustainable financing, and human rights and justice. HRI'S resources - staff and financial are divided relatively evenly across teams. Our conference team convenes more than l 000 delegates from approximately 80 countries around the world via the biennial Harm Reduction International Conference. The conference is held in a different city every two years and has been held in almost every region of the world since the first conference in Liverpool in 1990. In 2020 and 2021 , the conference team also organised Constellations.. An Online Festival on Drugs and Harm Reduction. Our public health and social policy team conducts original research and analysis to track developments in harm reduction and ensu re that people who use drugs have access to the health and social services they need. We also engage on technical matters with community and civil Society partners, government5 and UN agencie5. Harm Reduction International Trustees. annual report For the year ended 31 December 2022 Our sustainable financing team works to increase funding for harm reduction services around the world by monitoring the funding landscapes for harm reduction, collecti ng and communicating evidence, providing strategic analysis and developing tools for advocates. We engage in strategic processes and dialogues with the major international fu nders of harm reduction, emphasising the catalytic effect of funding community-led work and advocacy. Our human rights and justice team monitors rights abuses committed globally in the name of drug control, and advocates to promote the hu man rights of people who use drugs and their communities. We advance this work through advocacy with UN agencies. governments and human rights mechanisms, in partnership with community and civil society partners. Partnership work is critical to Harm Reduction International., from time to time, this involves making sub-grants to national partners with shared objectives. HRI is guided by a sub-granting policy for such processe5, which support5 implementation of our commitment to fairnes5, integrity. transparency and value for money in sub granting. HRI'S preferred approach is to run an open tender process. HRI'S 2022 5ub-grants are captured under 'project expenses, under Note 5 of the accounts and comprise approximately 50% of this figure. 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 underraken to further Harm Reduction International's charitable pu rposes for the public benefit. In 2022. HRI implemented a second Constellations Online Festival of Drugs and Harm Reduction., leveraging a Webex platform to create an accessible. online forum for ground-breaking discussions on drugs and harm reduction. Highlights included a conversation between Kurt Schmoke, President of the Universlty of Baltimore and former Mayor of Baltimore {1987-99) and David Simon, creator and producer of HBO serie5 'The Wire. on their experiences of the war on drugs. policing. drug policy and politlcs. We also scaled up preparation for the Harm Reduction International conference in April 2023. In 2020 in the context of the COVID-19 pandemic, HRI made the decision to postpone the 202 1 Harm Reduction International conference until April 202 3. HRI continued its leadership in the global mapping, celebrating an increase in life-saving services around the world via the Global State of Harm Reduction 2022. The Global State an independent global data collection effort in partnership with commu niry and civil society - is the most comprehensive global mapping of harm reduction responses to drug use, HIV and viral hepatitis. Partners led regional webinars to disseminate new findings. HRI also worked to docu ment the ongoing impact of COVID-19 on harm reducrion services, to expose inequitable vaccine roll out, and to create toolslguides to strengthening access 10 vaccines. Harm Reduction International Trustees. annual report For the year ended 31 December 2022 Our 202 2 we focused our advocacy for funding for harm reduction around the replenishment of the Global Fund to fight AIDS, Tuberculosis and Malaria (the Global Fund) the largest funder of harm reduction in low- and middle-income countries. This included engaging in strategy discussions, hosting webinars to disseminate critical information to partners working at national level, and bringing critical technical information to the attention of decision makers. We also explored options for future funding for harm reduction from domestic government sources in partnership with organisations in Indonesia, Kenya, Nepal, Nigeria, Uganda, and Sourh Africa. 2022 highlights in our human rights advocacy include shining a light on the increase in drug- related executions in Saudi Arabia and Singapore and demanding more from the international community. We continued efforts to strategically connect national and international human rights advocacy, and to ensure normative progress at UN level p051tively impacts on every day work in criminal systems, in courts and in prisons for example through guides for the UN Working Group on Arbitrary Detention and reports from the UN Human Rights Council. Across all activities we ai med to.. centre the expertise and leadership of the community of people who use drugs, reflecting on power dynamics within our partnerships, and structurally Irelbalance power., highlight the negative im pact of criminalisation and the compou nding effects of intersectional vulnerabilities., specifically, how drug policy interacts with gender. ethnicity, race, poverty and socioeconomic status. We presented evidence and human rights standards to governments at the UN Human Rights Council, the UN Commission on Narcotic Drugs, rhe World Health Assembly.. and contributed to drug pol icy reform dialogues via the National Harm Reduction Conference IUSAI, the Geneva Health Forum, the Scottish Drugs Forum Overdose Awareness Day. meetings of the UNITE Parliamentarians for Global Health, the World Health Summit and a number of civil society meetings. These strategic points of engagement supported progress against our three outcome areas.. a movement characterised by solidarity and equity,. wide acceptance of harm reduction approaches and services., drug policy advance5 equity, racial and Social justice. It remains a complex and challenging environment for harm reduction and drug policy globally. In 2022, a deteriorating global space in terms of the death penalty. the ongoing prioritisation of pu nitive and criminal-focused approaches to drug use, and a sign ificant shortage of funding for critical health interventions overshadowed the establishment of a number of new harm reduction services and progressive positions at UN level. In this context, HRI'S global monitoring, analysis and advocacy remain essential contributions to efforts to achieve a world in which drug policies promote dignity. health and rights. Beneficiaries of our services The ultimate beneficiaries of Harm Reduction International's work are vulnerable people who use drugs and impacted by drug policies around the world,. in our 2022-2025 strategy we highlight the negative impact of the criminalisation of drugs and the compounding effects of intersectional Harm Reduction International Trustees. annual report For the year ended 31 December 2022 vulnerabilities,. specifically, how drug policy interacts with gender, ethnicity, race, poverty and socioeconomic status. As a convening, policy and advocacy organisation, Harm Reduction International measures how its convening, research and analysis catalyse change, and how our work is used by advocates and policy makers to support reform of laws, policies and programming (at national, regional or i nternational level). Our global monitoring work provides insights into shifting trends, the uptake of evidence-based services or international human rights standards in drug policy and practice. Financial review HRI'S financial position at the end of the reporting period was stronger than in the past two years. Thi5 15 the result of two substantial fundraising efforts coming to fru ition, together with multiple new small funding streams., making the year unique. In addition, HRI'S financial posltion was Strengthened by an unanticipated gain associated with currency fluctuations. Thi5 is broadly in line with HRI'S gradual recovery from the stalling effects of COVID-19 in 2020 and 2021 , and ongoing efforts to strengthen internal controls. Based on our 2023-24 forecast, cash flow, existi ng commitments from donors, active pursuit of new funds, and plans for the Harm Reduction International conference in April 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,. i.e. continue as a going concern. HRI'S incomelincoming pipeline and forecast expenditure support HRI'S plans for work against its strategic objectives. In 2020, HRI made the decision to postpone the 2021 Harm Reduction International conference until Apri12023. We mitigated the financial impact of conference postponement by delaying most conference-related costs. undertaking some fundraising for convening online (Constellations), and embedding some aspects of convening into our broader grant applications. In line with its fundraising goals, HRI staff continued work to diversify and increase funding in 2022. HRI made Strong progress against its target of holding three months. operational costs in reserves for the year. Fundraising activitie5 were undertaken by HRI staff. there was no specific or material expenditure on fundraising. HRI is committed to achieving value for money across all activities. 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 lexternal and compliance (law and regulation). We continue to analyse the im pact of pandemic-related risks (first incorporated in the risk register in April 2020 in the context of COVID-19). Harm Reduction International Trustees. annual report For the year ended 31 December 2022 Broadly, we are currently working to mitigate the following key risks.. 4Governance risks.. in the context of HRI's focus on a highly specialised, yet stigmatised topic we face a risk of not being able to attract high quality trustee candidates from outside our sector. Trustees with diverse skills and experience are critical to the effective governance of the charity. We mitigate this risk by drawing on a board skills and diversity framework for board appointments, advertising on broader charity websites for our trustees, and regularly contributing ideas for a porential board candidate pool. Operational risks.. in the context of HRI'S small size and specialised focus, our staff are our greatest assets. The cost of living crisis and inflation in the UK, emergence from pandemic restrictions. along with a tumu Ituous global environment make for uncertain conditions. HRI is working to find new ways to work and support staff resilience. 4 Financial risks.. in the context of a limited pool of donors funding international harm reduction and drug policy, HRI must stay alert to shifts in donor prioritie5 and work to make the case for health-based, right5-based approaches to drugs. Concu rrently, HRI will continue to work on strengthening financial controls and improving our Pi nancial management 5y5tems for best practice. 4 Environmentlexternal risks.. HRI works to mitigate the risk5 of the rapidly changing external environment by strengthening our external communications, and developing work which allows us to demonstrate harm reduction is a social justice and public health issue closely connected to many other complex issues in society. 4Compliance risks.. in the context of HRI'S small sizellimited human resources, we rely on a network of external experts (including our auditors) to assist us to remain compliant with relevant policy and legislation. Reserves policy and going concern At the end of 2022, HRI held a total of £458,409. Of these funds, £176,700 are restricted funds and not available for the general purposes of the charity at the end of the reporting period. Of the unrestricted funds, the trustees have designated three sums.. Firstly, fund5 of £68,353 are held for the purpose of fulfilling HRI'5 commitment to support two human rights networks the South Asia Middle East Network and the Lawyering on the Margins Network. Secondly, funds of £ 54.000 are held for the purposes of gaining technical advice on HRI'S corporate structure and interrogating questions on the 5UStainability of the organi sation- this is in line with the strategic discussions of trustees over a couple of years. Thirdly, funds of £5 7,000 are held to reflect the foreign exchange volatility of 2021 and 2022 combined, with a view to offering protection against future foreign exchange fluctuations. It is anticipated that the activities associated with the first two designated amounts will be completed in 2023, and that the designated amounts will be spent by 31 December 2023. The foreign exchange volatility designated fund will be reviewed by the trustees in November 202 3. Harm Reduction International Trustees. annual report For the year ended 31 December 2022 HRI does not have material funds in tangible fixed assets or investments. At the end of 202 2, taking into account restricted funds and the designated amounts noted above, HRI holds the amount of £102,356 in reserves. This represents progress towards HRI'S aim to hold three months, operaring costs in reserve la goal which is reviewed annually by the trustees). HRI calculates one month of operating costs {including salary for the team, essential operating costs, and basic liabilities) is £65,000. A restrictive definition of one month of operating costs is £5 5,000. Using the former definition, three months of operating costs is £195,000. HRI attributes its progress towards reserve targets to be related to two matters.. lal two substantial fundraising efforts coming to fruition. together with multiple new small funding streams,. and Ibl ongoing efforts to strengthen internal control5. HRI will continue its efforts to bring its reserves in line with the target set by the trustees through concentrated fundraising efforts and through prudent financial management. 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 202 2-202 5 Strategic Plan and re-energised its vision for a world in which drug policies promote dignity, health and rights. The 202 5 Strategy Plan takes into account the rapidly evolving global environment and HRI'5 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, monitoring the funding landscape for harm reduction, and advocating for rights-based responses to drugs. HRI will continue its leadi ng 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 202 5 Strategy, HRI lead in the sector via four approaches.. 11 I convening the harm reduction and drug policy reform movements for knowledge exchange and strategic advocacy, 121 leading data collection for global monitoring and trend analysis on harm reduction, human rights and drug policy, 131 drawing on systems knowledge and advocacy skills to engage with and influence multilateral bodies, state and non-state actors, 141 developing tools for advocates and responding to requests for technical assistance. Harm Reduction International Trustees. annual report For the year ended 31 December 2022 Across all work HRI focuses on centring the expertlse and leadership of the community of people who use drugs, reflecting on power dynamics within our partnerships and structurally {relbalancing power. We 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. Structure, governance and management The organisation is a charitable company limited by guarantee. incorporated on I l 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 15 governed under its article5 of association. Decisions are made in compl lance with these constituent documents. The Tru5tee5 delegate the day-to-day management of the charity to Executive Director, Naomi Burke-Shyne. Ms Burke-shyne served a5 the Executive Director for the reporting period in question. HRI follows a fou ndation model of governance in which the Trustees are the members. HRI has no su bsidiaries 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 l O 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 nu mber of sitting Trustees, in line with an agreed commitment to diversity of 5ki115 and experience. Appointments are recommended following candidate interviews Wlth a Board Vacancies Working Grouplcommittee Icompri5ed of two Trustee5 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 has no related party relationshi ps or contracts to declare. Harm Reduction International Trustees. annual report For the year ended 31 December 2022 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 lawl 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 Practiiel. Company law requires the trustees to prepare financial 5tatement5 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 ex penditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to.. Select suitable accou nting policies and then apply them consistently Observe the methods and principles in the Charities SORP Make judgements and estimates that are reasonable and prudent State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation 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 statement5 comply with the Companies Act 2006. They are a150 responsible for safeguarding the assets of the charitable company and hence for taking reasonable 5tep5 for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware.. There is no relevant audit information of which the charitable company's auditor is unaware The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charirable company's website. Legislation in the United Kingdom governing the preparation and dissemination of fi nancial starements may differ from legislation in other jurisdictions. Harm Reduction International Trustees. annual report For the year ended 31 December 2022 Members of the charity guarantee to contribute an amount not exceeding £ I to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2022 was 9 12019.'91. 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 du ring 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 trustee5' annual report ha5 been approved by the trustees on 24 May 202 3 and Signed on their behalf by Lucy Burns Chair Independent uditor’s report ## To the members of ## Harm Reduction International ## Opinion We have audited the financial statements of Harm Reduction International (the ‘charitable company’) for the year ended 31 December 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - Give a true and fair view of the state of the charitable company’s affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended - Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice - Have been prepared in accordance with the requirements of the Companies Act 2006 ## Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Harm Reduction International’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 12 Independent uditor’s report To the members of ## Harm Reduction International ## Other Information The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: - The information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and - The trustees’ annual report has been prepared in accordance with applicable legal requirements. ## Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - The financial statements are not in agreement with the accounting records and returns; or - Certain disclosures of trustees’ remuneration specified by law are not made; or - We have not received all the information and explanations we require for our audit; or - The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report. ## Responsibilities of trustees As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of 13 Independent uditor’s report ## To the members of ## Harm Reduction International company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below. ## Capability of the audit in detecting irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: - We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to: - Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance; - Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud; - The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. - We inspected the minutes of meetings of those charged with governance. - We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience. 14 Independent uditor’s report ## To the members of ## Harm Reduction International - We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. - We reviewed any reports made to regulators. - We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations. - We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. - In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## Use of our report This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Jonathan Orchard (Senior statutory auditor) 28 June 2023 for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL 15 Harm Redu¢iion Intern*ional Staiemeni of flnaTh¢lal activities Iln¢orporatlng an in¢¢me and expenditure ¥¢¢¢untl For thtyeartndeil 31 De¢ember2022 2022 Totsl 2021 Total Unrestricted Restricted Unrestricted Income from.. Donations and legacies 10.385 10385 101.365 101.365 Project work Conferences & support IDve5tments 406.554 136,717 970 797.201 1,203,755 136.717 970 263.650 63,033 23 395.334 658.984 63,033 23 Total income 554,626 797.201 I,351￿27 428.071 395.334 823,405 Expenditure on-. Project work Conference & support 68,918 264.855 722,197 791.115 264,855 2,158 377.002 470,341 472,499 377.002 Total expend*u 333.773 722.197 1.055,970 379.160 470.341 849.501 Net Income I lexpenditurel before net 8alns I Ilossesl on Investments 220,853 75.004 295,857 48,911 175.(M)71 126,0961 Nèt IncomÈ I lex￿AdhurÉIeorth@ ￿ar 220.853 75.004 295￿51 48.911 175.0071 126.0961 Tran5fer5 between fund5 Net income I I￿PEndituTel bef¢weother recogni5ed gain5 and1055e5 220,853 75.004 295057 48,911 175.0071 126,0961 Net movemert im fvnds 220.853 75.004 29$￿57 48.911 175.0071 126.0961 Reconclllatlon of funds.. Total fund5 broughtforward 60.856 101.696 162,552 11.945 176.703 188.648 Total funds ¢arriedforward 281.709 176.700 458.409 60.856 101.696 162.552 All trlthe above results a￿ derived from contlnuineattiwties. There We￿ noother recognlsed 8ainsOt lossesothetthÈD those stated above. Movements ID futsdsare dlxlosed In 16 Harm Reduction International Balance sheet Company no. 03223265 As at 31 December 2022 2022 2021 Note Fixed assets: Tangible assets 12 9.443 18,931 9,443 18,931 Current assets.. Debtors Cash at bank and in hand 13 177,431 731,471 30.555 882,388 908,902 912,943 Creditors.. amounts falling due within one year 14 1459.9361 1769.3221 Net current assets I Iliabilitiesl 448,966 143,621 Total assets less current Ilabllltles 458,409 162,552 Net assets excluding penslon asset I Iliabilityl 458,409 162,552 Total net as5et51 Iliabilitiesl 458,409 162,552 The fund5 of the charitv: Restricted income lund5 Unrestricted income funds.. Designated funds General funds 17a 176,700 101,696 179,353 102,356 60,856 Total unrestricted funds 281,709 60.856 Total charity funds 458,409 162.552 Approved by the trustees on 24 May 2023 and signed on their behalf by •• JLfv- Lucy Burn5 Chair John Porter Treasurer 17 Harm Reduction International Statement of cash flows For the year ended 31 December 2022 Note 2022 2021 Cash flows from operatlng actlvltles Net income / lexpenditurel for the reporting period las per the staternent of financial 3Ctivitiesl Depreciation charges IG8insl/losses on investrnent5 Dividends, interest and rent from investments Ilncre3selldecre3se in debtors Increase/ldecreasel in creditors 295,857 126,0961 9.488 9,488 1131 1146,8761 1309,3861 52,981 334,727 Net cash provided by I (used inl operating activities 1150,9171 371,087 Cash flow5 from investing activities: Dividends, interest and rents from investments Purchase of fixed a55et5 13 Net cash provided by I (used inl investing activities 13 Change in cash and cash equivalents in the year 1150,9171 371,100 Cash and cash equivalents at the beginning of the year 882.388 511.288 Cash and cash equlvalents at the end of the year 731.471 882,388 Analysis of cash and cash equivalents and of net debt At 31 December 2022 At l January 2022 Other non- Cash ch3nges Cash flows Cash at bank and in hand 882,388 1150,9171 731,471 Total cash and cash equlvalents 882,388 1150,9171 731.471 18 Harm Redurtion International Note5tothe financial 5tatemer Forthe ear ended 31 De¢ember2022 Attountln8 policie5 al statutory infomiation Harm Reduction International is a tharitsble company limiied byguaraniee and is incorporated in England and Wales. The registered office addre55 is 61 Man5ell Street, Aldgate, London. bl Basis of preparation The financial statements have been prepared In accordance with Accounting and Reporting by Charities.. Statemeni of Recommended Practice applicable Ichariiies SORP FRS 1021, and ihe Companies Act 2006ICharities Atl 2011. In applyingthe financial reportingframework, the trustees have made a number of subjectivejudgement5, for example in respect of significant a¢¢ountlng estlm8tes. Estlmates and judgements are ¢ontinu8lly evaluated and are based on historl¢al experlen¢e and other factors. Including expectation5 of future event5 that are believed to be reasonable under the circumstance5. The nature of the estimation means the actual outcomes could differ from those estimates. Any signiljcafjt estimates and judgetnents affectifigthesefiDan¢ial stateffleDts are detailed wlthin the relevanta¢¢ouDting policy below. tl Publit benefr( ertity The charity meetsthe definition of a public benefit entity under FRS 102. dl Goin8cOn￿rn The lin3ntial statements have been prepared on a Eoing tontern basis asthe trustees believè ihat no material untertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditurefor 12 month5 from authorising these financial 5tatement5. The budgeted intome and èxpendlture is Suffitlent wlth the level ol reserves for the tharityto bè ableto tontinue as a golng concern. The trustees do not ¢onsider that there are any sources of estimation uncertainty at the reportlne date that have ¥ significant risk of Causlne a material adjustment tothe carryin8 amounts of assets and liabilities within the next reportin8 period. el Income IDcome 15 recognised when the charity has entitlernent tothe funds. any perfortnance ionditiOn5 attached to thE iniorne have been Tnet, it is probable that the income will be received and that the amount can be measured reliably. Income from government and other grants. whether'¢apital' grants or'revenue, grants, is re¢oEnised when ihe Charity has entitlement to the funds. anv performance condition5 attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliablv and is not deferred. Grants may bt defèrred when eithtrthe performance relatèd Conditions are not met orthere are time related restrictions. Conference income is recognised as and when the actu31 event takes place. Income received in advance of the provision of a spe¢ified seNi¢e is deferred until the criteria for income recognition are met. 11 Donations of gifts. services and facilities Donated professional services and donated facilities are reco8nised as income when the charity has control over the Item or received the service, 3nv (onditlQD5 associated with the donation have been met. the receipt of economic bEDefit from the use by the charity of the item 15 probable that economic benefit can be measured reliably. In accordance with the Charities SORP IFRS 1021, volunteer time is not recognised so refer to the trustees, annual reportfor more information about their contribution. El Interest re¢elvable IDterest on fuDd5 held on dEpo51t 15 included when receivable and the atnount can be measured reliably by the charity.. thi5 is normally upon notification of the interest paid or payable bythe bank. hl Fund accountlng Restritted funds are to be used for spe¢ifl¢ purposes as lald down by the donor. Expenditure whl¢h meets these ¢rlterl¥ is charged to the fund. Unrestricted funds are donations and other incomin£ resources received or generated forthe charitable piJrp05es. Designated funds are unrestricted funds earmarked by thetrustee5 for particular purposes. 19 Harm Redurtion International Note5tothe financial 5tatemer Forthe ear ended 31 De¢ember2022 Accounting PDlici25 Icontinuedl 11 Expendlture and Irrecover3bleVAT ENpenditure is recognised once there is a leeal or construttive oblieation to make a paymentto a third party. it is probable that settlement will be Costs of raisingfunds relate tothe costs incurred by the charity, as well a5 the c05t of any activities with a fvndrai5iDg purp05e Expenditure on charitable activitie5 include5 the costs of charitable activities undertaken to furtherthe purposes of the charityand their 8S$0¢18ted support Costs Other expenditure repre5eDt5those item5 not falling into any other heading Irrec¢verableVAT is Charged a5 3 costagain5t the attivity for which the expenditure w85 Incurred. kl Allocatlon of supportcosts Resour¢es expended are a110¢8ted tothe partl¢Jlaractlvitywhere the cost relates dlre¢tlyto that a¢tivlty. However. the cost of overall dlre¢tlon and admin15tration of each activity, comprisingthe salary and overhead costs of the centr21 function, 15 apportioned on the following basis which are an estimate. based on staff titne. of the atnount attributable to each activity- Where information about the aims, objectives 3nd projects of the charity is provided to potential benefici3ries, the costs associated with this publicity are Where such information aboutthe aim5, objectives and projects of the charity 15 a150 provided to potential donors, activitycosts are apportioned between fundraising and ¢haritable a¢tivlties on the basls of a￿0 of literature o¢¢upied by each adivity. Project Work Support costs Governance costs Governance costs are the costs a550Clated with the governan￿ arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs asso¢lated wlth the strateg1¢ management of the ¢haritOs adivities. 11 Foreign currencie5 Transattions in foreign currencie5 are translated into sterling at the rate ruling OD the date of the transaction. ExchangegaiDs and 1055e5 are re[￿Nised in ml Operatlng lÈases Rental charge5 are charged on 3 straight liDe basis overthe terTn of thè lease. nl Tanglble flxed Ass￿5 Items of eqvipment 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. A55ets are reviewed for impairment if circumstances indicate their carryin£ value may exceed their net realisable value nd value in u*. Depreciation is provided at rates calculated to write down the cost of eath assetto its estimated residual value over its expected useful life. The depreciation rates in use are as follows.. 25% reducin8 25% on cost CoTnputer equipTnent ol Oebtors Trade and otherdebtor5 are recogni5ed at the Settlement amount due after anytrade discount offered. Prepayments are valued atthe amount prepaid net of anytrade discounts due. pl Short iem) deposirs Short term deposit5 inElude5 cash balance5thit are invested ID accounts with a maturity date of between 3 12 rnonths. ql Cash ai bank and hand Cash at bank and rash in hand Includes ¢ash and short term highly Ilquid investments with a short maturityof three months or lessfrom the date of acquisition or openin8 of the deposit or similar account. 20 Harm Redurtion International Note5tothe financial 5tatemer Forthe ear ended 31 De¢ember2022 Accounting PDlici25 Icontinuedl rl Credlttsrs and provlslons Crèditors and provisions are recoEnised 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 obli8ation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlementamouDt èfterallowing for any trade discounts due. sl Financial instrumerbts recognised at transaction value and Subsequently measured attheir Settlement value. tl PensioThs The charity operates a defined contribution pension scheme and the pension charge repre5ent5 the amounts payable bythe charitytothe fund in respect of the year. Intomefrom donatlons and legatles 2022 Total 2021 Unrestricted Sundry income Coron3virusJob Retention Scheme grant Donated services 82 70,909 30,374 82 70,909 30,374 10,299 10.299 10.385 10,385 101.365 101.365 Incomefrom charitable artivities 2012 Total Unrtstri¢ted 2021 Unrestritted Restricted Project work Open Society Found31ions Open Society Found31ions Other incomefrom charitable activity 797,201 797.201 171.519 235.035 30,000 395,334 425,334 171,519 235,035 233,650 233,650 Sub-total for Project work 406,554 797,201 1.203.755 263,650 395,334 658,984 Conference5 & Support 136.717 136,717 63,033 63,033 Sub-total for Conferences & Support 136,717 136.717 63,033 63,033 543,271 797,201 1.340.47Z 326,683 395,334 722,017 Incomefrom Investments 2021 Unrestricted Total 970 970 23 23 970 970 23 23 All incomefrom investments 15 unrestricted. 21 0 st ¢0 (o o Ln￿￿£0 o ¢Th LD N (*? LD n) r4 ¢0 r4 r4 o* c w a Lna Ln r* th r on pj Omamc kD C tL ￿ U (£ 0 O Lk