**Charity Registration No. 1133616** **Company Registration No. 04365047 (England and Wales)** ## **THE RIGHTS PRACTICE** ## **ANNUAL REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 MARCH 2021** ## **THE RIGHTS PRACTICE** ## **LEGAL AND ADMINISTRATIVE INFORMATION** Trustees, who are also directors under company law, who served during the year up to the date of this report were as follows: **Trustees** Professor Harriet Evans, Chair Ebony Riddell Bamber, Vice Chair (Resigned on 14 Jauary 2021) Andrew Tappin, Treasurer Daniel Alberman Kate Larsen David McNeill (Resigned on 20 November 2019) Dr Tim Pringle Lorna Hawthorne (Appointed on 26 May 2020) Aqsa Hussain (Appointed on 14 January 2021) **Executive Director** Nicola Macbean **Charity number** 1133616 **Company number** 04365047 **Principal address** The Foundry 17 Oval Way London SE11 5RR **Auditor** Cansdales Audit LLP Bourbon Court Nightingales Corner Little Chalfont Bucks HP7 9QS **Bankers** HSBC Knightsbridge 102 Brompton Road London SW3 1JJ ## **THE RIGHTS PRACTICE** ## **CONTENTS** ||**Page**| |---|---| |Trustees' report|1 - 9| |Independent auditor's report|10 - 12| |Statement of financial activities|13| |Balance sheet|14| |Statement of cash flows|15| |Notes to the financial statements|16 - 22| ## **THE RIGHTS PRACTICE** ## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021** The Trustees present their report and financial statements for the year ended 31 March 2021. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document , the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019) . ## **Charitable Objects** The objects for which The Rights Practice is established, as set out in the memorandum of association, are to promote human rights (as set out in the Universal Declaration of Human Rights and subsequent United Nations conventions and declarations) throughout the world by all or any of the following means: monitoring abuses of human rights; obtaining redress for the victims of human rights abuse; relieving need among the victims of human rights abuse; research into human rights issues; providing technical advice to government and others on human rights matters; contributing to the sound administration of human rights law; raising awareness of human rights issues; promoting public support for human rights; promoting respect for human rights among individuals and corporations; international advocacy of human rights; eliminating infringements of human rights; and to relieve poverty worldwide by providing people with legal services which they could not otherwise obtain or which it would not be reasonably practicable or appropriate to obtain elsewhere. ## **Our Aims and Approach** Trustees have considered the Charity Commission’s general guidance on public benefit when discussing and approving our aims and objectives. Our current strategy to advance human rights is set out below. The Rights Practice recognises the complex social, political and material circumstances in which individuals, civil society organisations and governments strive to promote, protect and defend human rights. Full enjoyment of human rights requires governments to respect their human rights obligations under international law. The Rights Practice believes that a vibrant and effective civil society is necessary to hold governments accountable and ensure people know their human rights and are able to defend them. Our aim is to help build the capacity of a global civil society that can promote public understanding of human rights, advocate for justice and the rule of law, and speak out in defence of human rights. Our work focuses on China, supporting the lawyers, scholars and NGOs that are working to advance human rights through promoting access to justice, dignity of the person, and public participation in decision making. We continue to refresh our strategy against a background of increased repression of civil society and growing difficulties accessing resources. Over the past year we have been developing relationships of cooperation with organisations in the Asia region, including Malaysia, Indonesia, Taiwan, India and Pakistan. We are currently focused on responding effectively to the needs of Chinese civil society to survive and grow in this more challenging operating and funding environment. We recognise the need for greater resilience on the part of human rights defenders, increased local capacity to train and inspire their peers as well as new skills to develop sustainable organisations. Over the past year we have facilitated new connections between Chinese civil society and colleagues in Asia working on similar issues of concern. These relationships are opportunities to share experience and insights and build relationships for future collaboration. The treatment of people in detention in China and the obstacles to a fair trial remain two of the country’s biggest human rights challenges impacting on ordinary citizens, foreign nationals and human rights defenders (HRD). These issues will continue to be a core concern of our programming and have also informed our advocacy work, particularly on the pressing issue of the largescale detention of Uyghurs in Xinjiang Uyghur Autonomous Region. We will continue to respond to this multi-faceted challenge through a combination of developing in-country capacity to address issues with overseas advocacy to ensure concerns remain prominent. Our objectives for 2018 to 2020 were to: - 1 - ## **THE RIGHTS PRACTICE** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021** 1. Sustain the work of Chinese civil society organisations and human rights defenders and support new ways of working. 2. Enhance the expertise and effectiveness of Chinese civil society organisations and human rights defenders. 3. Integrate Chinese civil society organisations and human rights defenders into networks and platforms in Asia and beyond. 4. Inform and advocate on human rights concerns relating to China. Our programme work continues to focus on two areas: human rights and criminal justice, and public participation and the role of civil society. Our human rights and criminal justice programme works to promote the right to a fair trial, protect the rights of detainees, combat the use of torture, reduce and challenge the use of the death penalty. Our public participation and civil society programme is focussed on building capacity within civil society to engage on human rights issues. A priority is to develop training skills as well as deepen knowledge of international law and practice. We are also working to improve gender equality as a crosscutting issue across all our projects. Trustees support extending our work in the Asian region, in particular to develop collaborative relationships between Chinese and other Asian civil society organisations. Our activities continue to facilitate the sharing of knowledge, ideas and experience in promoting and defending human rights. We provide assistance with training and international exchange; our local partners implement a range of activities from awareness raising to research, conferences, legal aid, pilot projects and policy advocacy. As our local partners explore new ways of working in response to the ONGO Law and restrictions on civil society in China, The Rights Practice is piloting new ways to provide effective support to those working on the ground. Covid-19 has highlighted the opportunities for greater online learning and collaboration. The medium also poses new challenges: ensuring participatory learning, stable and open access to the Internet and secure connections. The new strategy for 2021-24, developed by staff and Trustees, continues to place the work of human rights defenders, lawyers and civil society organisations at the heart of what we support. We will prioritise the promotion of equality rights, and the defence of justice and personal integrity rights. In response to China’s greater global influence we will also increase efforts to raise awareness of human rights in China and further the participation of Chinese civil society at the international level. The Rights Practice has a small professional staff in London responsible for overall programme management, fundraising and finance. Over the past year we have taken steps to implement a review of HR procedures concerning staff employment and office management. A new finance manager was recruited in April 2021 following the resignation of his predecessor. Staff are supported to develop their professional and language skills and work is appraised regularly. An external consultant was employed to review remuneration rates in order to ensure that, despite the funding challenges, we can retain high quality staff through competitive salaries. We have appreciated the help of interns in London this year, assisting with research and translation. We cooperate with other London-based human rights organisations and the academic community. Over the past year all meetings moved online allowing for increased international participation. - 2 - ## **THE RIGHTS PRACTICE** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021** ## **Achievements and performance** Our work over the past year has taken place against the backdrop of continued repression in China and increased assertiveness by China overseas, as well as ongoing Covid-19 restrictions. We have continued to monitor the Chinese government’s treatment of civil society . The space to defend human rights remains very limited and the authorities use a range of tools to inhibit, restrict and sanction citizens, lawyers and civil society organisations (CSOs) that attempt to speak out, organise or hold to account. CSOs have been subject to surveillance and greater scrutiny of their work. Lawyers face the risk of disbarment by taking politically sensitive cases and speaking publicly. Restrictions on academics continue with Chinese legal scholars finding it very difficult to hold meetings, conduct research, provide critical comment and to collaborate effectively with foreign scholars. Following the introduction of the Overseas NGO Management Law in 2017 The Rights Practice scaled back activities in China. We remain open to the possibility of registration, but have observed that no organisation working in the field of legal reform and human rights has had a representative office in China approved by the police. Many of the overseas NGOs that have been authorised to operate in China report close scrutiny by the authorities putting at risk their operational autonomy and potentially undermining their charitable or public interest objectives. We have observed the departure of many international NGOs and funders from working in China. There are complex moral and operational dilemmas to continued engagement. For The Rights Practice two questions guide our thinking. Can our support help those on the ground make a difference? And, can we be confident that we will do no harm? We recognise the challenges in assessing the impact of projects where repression limits the opportunities for change and implementation may be undermined by police interference. However, we also observe the continued resilience of Chinese human rights defenders and civil society organisations and their extraordinary ability to identify new spaces and strategies for the promotion and defence of human rights. We see the difficult political and operating environment in countries such as China as a challenge to international NGOs and donors to rethink our ways of working and supporting human rights defenders in the most authoritarian contexts. The past year has been dominated by the precipitous decline in freedoms of speech, association and public participation in Hong Kong following the introduction of the National Security Law in July 2020. The human rights crisis in the Xinjiang Uyghur Autonomous Region (XUAR) has continued to attract international attention and condemnation from international civil society, parliamentarians and governments. The Rights Practice has responded with briefings and participation in a range of public and private online events to raise awareness and develop policy responses. ## _Advocacy_ Developments in Xinjiang, and now Hong Kong, have underscored the need for The Rights Practice to continue to contribute to public understanding of the human rights situation in China. We published a preliminary analysis of the potential impact of the National Security Law on Hong Kong civil society. We also published a report on sexual and gender-based violence in the Uyghur region and a Working Paper with detailed research into the concerning (ab)use of criminal proceedings in the XUAR. Although there are specific features to the repression in different regions and towards different groups in China, common elements include reversals in the rule of law, the silencing of civil society and, even mildly, critical voices, and the deployment of a range of repressive tools in which the threat and use of detention underpins everything. Businesses, organisations and countries need to develop a long term strategy to shape their relationship with China. Strategies should support human rights and the role of human rights advocates in China, including a clear understanding of how policies to expand trade or other relationships may also undermine the role of civil society and respect for human rights. - 3 - ## **THE RIGHTS PRACTICE** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021** The Rights Practice has continued to research and engage on the use of the death penalty. We published a revised briefing paper on the use of the death penalty in China and compliance with international standards in time for the World Day Against the Death Penalty in October 2020. With a new EU-funded project to support research and advocacy on the use of the death penalty in Asia we have encouraged the development of a network of research groups and NGOs in seven Asian countries. Over the past year we have maintained our presence on Twitter with a growing following. We also continue to publish an e-newsletter to share news of our work and the human rights issues on which we are engaged. ## _Public Participation and the Role of Civil Society_ The goal of our work to support public participation and the role of civil society is to build the capacity of civil society actors to advance human rights and encourage greater public participation in public affairs through targeted assistance to support their work and develop new knowledge and skills. The last couple of years have seen a retreat from any meaningful attempts to provide space for civil society engagement in public affairs through consultations, but there continue to be limited opportunities for evidence-based advocacy on topics of concern to the authorities. The Chinese government acknowledges that it must solve a range of social and economic problems facing ordinary, often angry, citizens. We have continued to support a Chinese civil society organisation (CSO) to work on the right to education for the children of migrant workers and other issues of discrimination against women and children in the household registration and family planning systems. The CSO developed an advocacy network of community social service providers to migrant worker families; providing training on advocacy and public participation strategies; supporting local advocacy initiatives and doing detailed research to support advocacy. Until the summer of 2016, the CSO held a number of salons and larger network meetings to share experience and plan advocacy actions, including supporting legislative proposals for the _lianghui_ (the annual “two sessions” of the National People's Congress and the Chinese People's Political Consultative Conference) which were reported widely in mainstream media. They have produced research reports on barriers to education for migrant children using their own online platform to publicise their findings. In July 2019, the CSO had to suspend operations for security reasons and Covid-19 restrictions in 2020 have made in-person activities impossible. However, the network has continued to operate with online meetings and the CSO was able to restart some in person activities in late 2020. The CSO has also been researching the impact of Covid-19 on the migrant worker population. In September 2018, The Rights Practice started a new three-year project focussing on building psychological resilience of Chinese civil society actors and increasing the capacity of legal professionals to assist survivors of torture and ill treatment. This year, with Covid-19 preventing most in person meetings and workshops, we focussed on online training inside China and providing support through online reading groups. Some in person workshops were possible later in the year. We have also provided small grants for peer support initiatives in several regions of China. In May 2016, The Rights Practice began administering a fellowship programme for Chinese human rights defenders and activists in need of a break from an increasingly difficult working environment in China or for individuals who had already left China and were delaying their return home due to fear of repression. To date, the fellowship program has supported 23 fellows in programmes ranging from three to 18 months. The focus of fellowships has ranged widely, including human rights law, civil society empowerment, mental health, women’s rights, labour rights, disability rights, citizen journalism, English language, organic farming, and NGO management. - 4 - ## **THE RIGHTS PRACTICE** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021** ## _Human Rights and Criminal Justice_ Our criminal justice and human rights programme aims to improve respect for human integrity rights, notably a reduction in the use of torture, ill treatment in detention and the death penalty, as well as improved access to justice. We have continued to focus on three areas of concern: torture, the application of the death penalty and the treatment of people in detention. We also pay particular attention to the difference that gender makes in all these areas. The Rights Practice works with Chinese lawyers, legal scholars and civil society organisations to address these issues through supporting initiatives to conduct research and raise awareness, and building their capacity to draw on international law in their legal work. Our advocacy seeks to make the international community, including the United Nations and parliamentarians, aware of the situation in China and to highlight violations of both domestic Chinese and international law. Our work addressing the problem of torture and the ill treatment of persons deprived of their liberty in China has continued with a limited number of small scale activities over the past year. We have continued to advocate against the use of “residential surveillance in a designated location” and the extrajudicial detentions taking place in the Xinjiang Uyghur Autonomous Region. We have also supported the efforts of Chinese lawyers to raise awareness of the UN Convention Against Torture (CAT) and China’s obligations as a state party. With the move to more online learning and meetings, we are developing new resources to share UN standards on the treatment of prisoners. Lawyers recognise that these international rules provide a good entry point for the critical examination of Chinese practice and the advocacy of better treatment for detainees. Despite high levels of repression, there continues to be limited space for small scale training activities among human rights lawyers. Our programme of cooperation with Chinese colleagues on the use of the death penalty has continued to address the need to raise awareness of international law and the UN Minimum Safeguards for protecting the rights of persons facing the risk of execution. We published a report on practice in China and compliance with international law in October 2020. Lawyers in China have been able to hold some small scale training and discussion activities on specific aspects of death penalty practice including forensic assessments, but pandemic restrictions on travel have made international seminars and workshops impossible. In a challenging environment we have been encouraged by the success of local and small scale salons as forums for lawyers, journalists, writers, artists and academics to engage critically on the use of the death penalty through discussing its treatment in books, film and other arts. Our strategic shift towards a broader Asia approach in our work is proving successful. We have now begun an Asia-wide project addressing defence representation in death penalty cases. We have convened a number of virtual workshops with lawyers and civil society activists from seven Asian countries, including a new partner organisation in Malaysia. We have continued to encourage local partners to monitor the gender balance of participants in all these projects and networks, as an integral component of our work to encourage participation and foster gender equity. - 5 - ## **THE RIGHTS PRACTICE** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021** ## **Financial review** The Rights Practice's total income for year ended 31 March 2021 was £ 1,732,29 2 . This is an increase of 232 % in our income from the previous year’s figure of £521,138. The increase is largely due to the start of a new EU-funded grant and recognition of income up front as required under the accounting standard of FRS102. The majority of the charity’s income is from restricted project grants. We continue to try and diversify our funding base and have attracted new resources to support some of our work on Hong Kong and the Uyghur crisis. We are very grateful for the support we receive from a wide range of institutional donors from four different countries as well as the European Union. Despite economic challenges many donors remain committed to supporting engagement on human rights in China. We continue to increase awareness of our work through our website and newsletters encouraging interest from private foundations with potential new funding that can contribute to our unrestricted core costs. Advance payments from our main donors continue to provide a healthy cash flow. The charity’s finances are subject to foreign exchange rate fluctuations, which we continue to monitor. In spite of Covid-19 related restrictions our expenditure on charitable activities increased by about 2 5 % to £866,21 1 over the previous financial year. Staff costs totalled £22 8 , 945 and represent 26% of total expenditure. The majority of the staff costs are associated with our programming work: supporting our local partners, providing research, delivering training, monitoring and the dissemination of lessons learned. We do not have any dedicated fundraising staff. The Executive Director spends approximately 5% of her time on fundraising. She is supported by other staff on programme design and budgeting. The Rights Practice does not undertake fundraising from the public; a small number of individuals donate via our website. ## _Balance Sheet_ The Rights Practice had unrestricted reserves of £ 162,234 at 31 st March 2021. The Rights Practice’s closing restricted reserves of £ 1,291,261 represent funds recognised up front for grants under FRS102 which will be utilised in 2021 - 2 3 . The budgeted income and expenditure for the year ahead give Trustees confidence that the charity will continue to operate successfully. ## _Reserves Policy_ During 2020/21, the Rights Practice received grant income from four major institutional donors as well as three smaller donors. Historically the income raised has been largely restricted and dependent on successful grant applications. If there were to be a change to the funding policy of our major donors or we were to fail to secure sufficient new grants, The Rights Practice could face difficulties sustaining the current level of activity as well as delivering its strategy and meeting the needs of its beneficiaries. There would also be an impact on staffing levels. To ensure that we can continue our work, The Rights Practice board has agreed the target of keeping a certain level of unrestricted reserves to ensure that core operations can continue for a period of three months in the event of any funding downturn. This is to ensure that staff can continue working, primarily to secure new funding and for our local partners to continue their work with other sources of support. The target also includes the total cost of winding up the organisation should the need arise following a precipitous decline in future grant income or other unexpected major setback. Our unrestricted funds at 31 st March 2021 are sufficient to meet these targets. We continue to work to secure new funding for The Rights Practice enabling it to sustain its operations at current levels. This policy will be reviewed annually by the board and whenever there are significant changes to staffing levels or the external funding environment. The level of reserves is disclosed within the quarterly management accounts reviewed by the Trustees. - 6 - ## **THE RIGHTS PRACTICE** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021** ## **Looking Ahead** The international environment and geopolitical context in which we work are challenging. With the coronavirus continuing to pose a risk, working from home and online meeting and learning will continue to remain a feature of our work in the year ahead, particularly with our international partners. This will require continued investment in effective and secure digital working practices. The financial effects of Covid-19 are likely to be severe and may impact on funding for civil society as funders experience shrinking budgets and new priorities. At the same time, we are witnessing increased political and public attention to human rights violations in XUAR and Hong Kong, as well as concern over broader security and trade relations with China. It is not yet clear how this will impact on our work over the longer term and we will need to monitor the overall situation for funding. Our shift towards a broader engagement with civil society in Asia has already helped to mitigate the risks of focussing on China. Recent years have seen the shrinking space for civil society around the world. There is also increased anxiety at backtracking on the rule of law and the rise of authoritarian governments. China exemplifies this trend with increased repression at home and growing assertiveness on the international stage. Resisting these developments requires renewed attention to the importance of defending human rights and celebrating the participation of civil society in public life. With China asserting increased influence within the United Nations it is important for organisations like The Rights Practice to ensure that international human rights mechanisms remain independent and accessible to civil society and we expect to deepen our UN engagement. We remain committed to finding ways to support those working for human rights in China, and Asia more generally. We will continue to advocate for resources to support this area of work. Our programming priorities – support for civil society and combatting ill treatment – are expected to remain unchanged in the year ahead. Capacity building activities will continue to complement our substantive work challenging the use of ill treatment, torture and the death penalty. We expect to further broaden our work to engage with the Chinese and Hong Kong diaspora and NGOs operating across Asia. The human rights crisis in the XUAR and the crackdown on political activity in Hong Kong will remain issues of concern and we will be looking for additional resources to sustain this work. We anticipate that coronavirus related restrictions on international travel and repressive measures in Mainland China will continue to limit our ability to hold significant in person activities in the year ahead. We will be doing everything we can to support alternative ways of learning, meeting and sharing good practice. Time and resources saved by cancelling international meetings will need to be redeployed to ensure good quality digital engagement. We have been encouraged by the success of our increased small grants scheme and we have secured additional resources to allow us to continue supporting small scale and local engagement. Lockdown restrictions as a result of Covid-19 are exacerbating the mental health strains experienced by human rights defenders in China. We will be continuing to support initiatives that foster wellbeing and, where needed, allow for time away from the day to day anxieties of working in a climate of fear and repression. Our advocacy strategy sets out our communications priorities in the year ahead: the use of the death penalty, the ill treatment of detainees, the situation of human rights defenders and independent civil society organisations, the treatment of Uyghur and other Turkic Muslims in the Xinjiang region and new threats to civil and political rights in Hong Kong. We will continue to draw on our knowledge and experience to share information about the human rights situation in China with decision makers in the UK, Europe, the United Nations and beyond. Our work and that of our local partners requires financial support. Resisting the spread of authoritarianism requires fresh and urgent rethinking of the case for fostering human rights awareness and expectations in countries under autocratic governments. In light of Covid-19, we will continue to monitor the policy context in the UK, Europe and the USA, from where we receive most of our funding. Brexit has not had any impact to date on our ability to raise funds in the UK and within the European Union. - 7 - ## **THE RIGHTS PRACTICE** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021** ## **Structure, governance and management** The Rights Practice was incorporated as a company limited by guarantee on 2 February 2002 (registration 04365047). The organisation’s application to register as a charity was approved by the Charity Commission on 20 January 2010. The governing documents of the charity are the Memorandum of Association (as amended on 16 December 2009) and the Articles of Association (2002). The governing body of The Rights Practice is the Board of Trustees. The Board meets quarterly in the evenings. Due to the coronavirus pandemic, all Board meetings in 2020-21 took place online using a secure video conferencing platform. Trustees agree the organisational budget, approve the annual accounts, appoint the auditors and, in consultation with senior staff, set the strategic direction of The Rights Practice. In December 2020, the Executive Director initiated a series of staff and Trustee discussions resulting in a revised strategy for 2021-24 which was approved by the Board in March. At each Board meeting, Trustees review management accounts, receive and discuss the progress report and consider the risk register. Trustees have delegated the day to day operations of the charity and its activities to the Executive Director and the senior management team. The Trustees who served in the year are listed in the administrative details above. Members of the Board have been recruited through targeted public calls for new Trustees as well as nominations by existing Trustees or senior staff. Trustees are mindful of the need to ensure that the Board has the range of skills, experience and diversity to oversee the charity’s governance and strategic direction. Current Trustees bring knowledge and experience of law and human rights; Chinese politics, gender and social policy; corporate social responsibility; public participation and communications as well as accountancy and charity governance. Long-serving Trustee Ebony Riddell Bamber resigned from the Board at the end of 2020. In the autumn we advertised publicly for new Trustees and, following interviews, we appointed Aqsa Hussain, a young criminal barrister who is also founder of Human Rights Pulse, an online platform. We continue to seek Trustees with specialist knowledge of fundraising as we try to further diversify our funding base. We are keeping recruitment open as we continue to search for Trustees who will bring relevant skills, interest and experience to the organisation. New Board members are provided with relevant documents and information on the governance and work of the charity as well as guidance on the role of Trustees; the Executive Director and chair meet with new Trustees to brief them on the work of the charity. The Executive Director met regularly with the Chair to plan Board meetings and discuss any issues of concern. All Trustees give their time voluntarily and received no benefits from the charity. No expenses were reclaimed by Trustees in the past year. The Rights Practice US Inc. was incorporated in the state of New York as a not for profit organisation on July 10, 2008. It has its own governing Board; the Executive Director of The Rights Practice serves on the US Board. The two organisations have the same objectives and cooperate in advancing their shared charitable purposes. A framework agreement, reviewed annually by the US Board of Directors, sets out the nature of the cooperation between the two entities. Grant contracts with the US office are now managed by programme staff in London. The Rights Practice US Inc. had a turnover of $ 329,283 in 2020 and a balance of unrestricted funds at 31 st December 2020 of $ 78,153. The Rights Practice maintains and reviews a register of significant external and internal risks to the organisation which may impact on our ability to meet our charitable objectives and deliver public benefit. Trustees continue to be reasonably tolerant of risk given our strategic objectives and the challenging political environment in which we work. Staff continuously review and develop mitigating strategies, particularly in areas of medium to high risk. Strategic risks include growing repression within China and the “shrinking space” for civil society. With many foreign organisations unable, since 2017, to register local offices under the Law on the Management of Overseas Non-Governmental Organisations’ Activities within Mainland China (ONGO Law) the resources available to Chinese civil society have declined. Recent additions to the risk register include the impact of Covid-19, the introduction of the national security law in Hong Kong and potential risks from an expansion in our small grant giving programme. The risk register is regularly reviewed by senior staff and discussed by Trustees at each quarterly Board meeting. The Board is kept informed of any changes to the status of risk areas or major revisions to the risk management strategy. All project documents include specific risk assessments and mitigation strategies, particularly with respect to overseas activities, and these are reviewed as part of project monitoring. - 8 - ## **THE RIGHTS PRACTICE** ## **TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021** ## **Statement of Trustees' responsibilities** The Trustees, who are also the directors of The Rights Practice for the purpose of company law, are responsible for preparing the Trustees' 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 Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to: - select suitable accounting 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 have been followed, subject to any material departures disclosed and explained in the financial statements; and - 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 Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **Disclosure of information to auditor** Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The Trustees' r eport was approved by the Board of Trustees. ## **Professor Harriet Evans, Chair Trustee** Dated: 16 December 2021 - 9 - ## **THE RIGHTS PRACTICE** ## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE RIGHTS PRACTICE** ## **Opinion** We have audited the financial statements of The Rights Practice (the ‘Charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). - In our opinion, the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 March 2021 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the 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 Charity 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** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **Other information** The other information comprises the information included in the 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 our audit: - the information given in the Trustees' r eport, which includes the d irectors ' r eport prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the d irectors ' r eport included within the Trustees' r eport has been prepared in accordance with applicable legal requirements. - 10 - ## **THE RIGHTS PRACTICE** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE RIGHTS PRACTICE** ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the Trustees' r eport. 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 Trustees 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' r eport and from the requirement to prepare a s trategic r eport. ## **Responsibilities of Trustees** As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the Charity for the purpose of 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 Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. - 11 - ## **THE RIGHTS PRACTICE** ## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF THE RIGHTS PRACTICE** ## **Auditor's responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charitable company’s internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees. - Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. ## **Use of our report** This report is made solely to the 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 company’s members those matters we are required to state to them in an auditors’ 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. **James Foskett (Senior Statutory Auditor) For and on behalf of Cansdales Audit LLP** 20 December 2021 ## **Chartered Accountants Statutory Auditor** Bourbon Court Nightingales Corner Little Chalfont Bucks HP7 9QS - 12 - ## **THE RIGHTS PRACTICE** ## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021** |**Unrestricted**
**Restricted**
**funds**
**funds**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**2**
780
-
Charitable activities
**3**
38,055
1,693,128
Investments
**4**
329
-
**Total income**
39,164
1,693,128
**Expenditure on:**
Charitable activities
**5**
85,411
780,800
**Net income/(expenditure) before transfers**
(46,247)
912,328
Gross transfers between funds
39,278
(39,278)
**Net (expenditure)/income for the year/**
**Net movement in funds**
(6,969)
873,050
Fund balances at 1 April 2020
169,203
418,211
**Fund balances at 31 March 2021**
162,234
1,291,261|**Total**
**2021**
**£**
780
1,731,183
329
1,732,292
866,211
866,081
-
866,081
587,414
1,453,495|**Total**
**2020**
**£**
194
520,104
840
521,138
694,478
(173,340)
-
(173,340)
760,754
587,414| |---|---|---| The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. - 13 - ## **THE RIGHTS PRACTICE** ## **BALANCE SHEET** ## **AS AT 31 MARCH 2021** |**Notes**
**Fixed assets**
Tangible assets
**8**
**Current assets**
Debtors
**9**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**10**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**12**
Unrestricted funds|**2021**
**£**
**£**
228
932,096
643,956
1,576,052
(122,785)
1,453,267
1,453,495
1,291,261
162,234
1,453,495|**2020**
**£**
**£**
456
307,490
720,146
1,027,636
(440,678)
586,958
587,414
418,211
169,203
587,414| |---|---|---| These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime. The financial statements were approved by the Trustees on 10 December 2021 Professor Harriet Evans, Chair **Trustee** ## **Company Registration No. 04365047** - 14 - ## **THE RIGHTS PRACTICE** ## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021** |**Notes**
**Cash flows from operating activities**
Cash (absorbed by)/generated from
operations
**16**
**Investing activities**
Interest received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
329|**£**
(76,519)
329
-
(76,190)
720,146
643,956|**2020**
**£**
840|**£**
297,260
840
-
298,100
422,046
720,146| |---|---|---|---|---| - 15 - ## **THE RIGHTS PRACTICE** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** ## **1 Accounting policies** ## **Charity information** The Rights Practice is a charitable company limited by guarantee incorporated in England and Wales. The address of the registered office is given on the legal and administrative information page. ## **1.1 Accounting convention** 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) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2019. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value. The principal accounting policies adopted are set out below. ## **1.2 Going concern** At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees' continue to adopt the going concern basis of accounting in preparing the financial statements. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. ## **1.4 Income** Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it s ultimate receipt is more likely than not . Any income received that relates exclusively to future periods, as determined by the conditions, is deferred on the Balance Sheet. ## **1.5 Expenditure** Expenditure including VAT, which is not recoverable, is recognised in the Statement of Financial Activites when a liability is incurred. ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Equipment over £1,000 is capitalised. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Fixtures, fittings & equipment 25% straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. - 16 - ## **THE RIGHTS PRACTICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021** ## **1 Accounting policies** **(Continued)** ## **1.7 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.8 Retirement benefits** The pension costs charged in the financial statements represent the contributions payable to the defined contribution pension scheme set up by the Charitable Company. The assets of the scheme are administered by the Trustees of that scheme and are held separately from the assets of the Charitable Company. ## **1.9 Foreign exchange** Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/expenditure for the period. ## **2 Donations and legacies** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2021**|2020| ||**£**|£| |Donations and gifts|780|194| |**Donations and gifts**||| |Individual|780|194| ||780|194| - 17 - ## **THE RIGHTS PRACTICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021** ## **3 Charitable activities** |Grants
Other income
**Analysis by fund**
Unrestricted funds
Restricted funds|**2021**
**£**
1,667,061
64,122
1,731,183
38,055
1,693,128
1,731,183|**2020**
**£**
495,929
24,175
520,104
33,668
486,436
520,104| |---|---|---| ## **4 Investments** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2021**|2020| ||**£**|£| |Interest receivable|329|840| - 18 - ## **THE RIGHTS PRACTICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021** ## **5 Charitable activities** |**Unrestricted**
**funds**
**Restricted**
**funds**
**£**
**£**
Staff costs
37,774
191,171
Depreciation and impairment
228
-
Direct costs (including grants)
5,119
574,379
Support costs
42,290
15,250
85,411
780,800|**Total**
**2021**
**£**
228,945
228
579,498
57,540
866,211|**Total**
**2020**
**£**
217,133
227
417,043
60,075
694,478| |---|---|---| Included within unrestricted charitable activities are amounts paid to auditors of £4 , 8 13 (2020: £ 5, 358) relating to the audit and £2,7 00 (20 20 : £2,712) relating to other financial services. Included within direct costs are £ 133 of Loss on foreign currency exchange rate (20 20 : gains of £ 3 , 697 ). Included within support costs are amounts paid for rent in the UK & China of £ 30 , 084 (20 20 : £ 27 , 660 ). ## **6 Trustees** No Trustee received any remuneration during the year ( 2020 : none) and no Trustee was reimbursed for any expenses in the year (20 20 : none). ## **7 Employees** |Wages and salaries
Social security costs
Other pension costs|**2021**
**£**
207,643
12,011
9,291
228,945|**2020**
**£**
192,769
14,238
10,126
217,133| |---|---|---| No employee was paid at a rate in excess of £60,000 per annum (20 20 : none). The average number of full time equivalent staff during the year was six (20 20 : six ). The Trustees and the Executive Director are considered key management of the charitable company. Total remuneration paid to key management in the year amounted to £ 56,949 (20 20 : £5 5 , 452 ). - 19 - ## **THE RIGHTS PRACTICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021** |**8**|**Tangible fixed assets**|||| |---|---|---|---|---| ||||**Fixtures, fittings & equipment**|| |||||**£**| ||**Cost**|||| ||At 1 April 2020|||4,728| ||At 31 March 2021|||4,728| ||**Depreciation and impairment**|||| ||At 1 April 2020|||4,272| ||Depreciation charged in the year|||228| ||At 31 March 2021|||4,500| ||**Carrying amount**|||| ||At 31 March 2021|||228| ||At 31 March 2020|||456| |**9**|**Debtors**|||| ||||**2021**|**2020**| ||**Amounts falling due within one year:**||**£**|**£**| ||Trade debtors||929,224|299,264| ||Other debtors||2,872|8,226| ||||932,096|307,490| |**10**|**Creditors: amounts falling due within one year**|||| ||||**2021**|**2020**| |||**Notes**|**£**|**£**| ||Other taxation and social security||-|4,349| ||Deferred income||-|370,264| ||Trade creditors||77,561|45,633| ||Other creditors||152|608| ||Accruals and deferred income||45,072|19,824| ||||122,785|440,678| - 20 - ## **THE RIGHTS PRACTICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021** ## **11 Retirement benefit schemes** ## **Defined contribution schemes** The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The charge to profit or loss in respect of defined contribution schemes was £9,291 (20 20 : £ 10 , 126 ). ## **12 Movement in funds** The income funds of the charity comprise of the following unexpended balances of donations and grants held on trust for specific purposes: |**Balance at 1**
**April 2020**
**£**
Improving Access to Justice
322
Human Rights and Criminal Justice
417,889
Total restricted funds
418,211
Unrestricted general funds
169,203
Total funds
587,414|**Movement in funds**
**Income Expenditure**
**£**
**£**
1,242,850
(342,251)
450,278
(438,549)
1,693,128
(780,800)
39,164
(85,411)
1,732,292
(866,211)|
**Transfers Balance at 31**
**March 2021**
**£**
**£**
(19,930)
880,991
(19,348)
410,270
(39,278)
1,291,261
39,278
162,234
-
1,453,495| |---|---|---| ## _Improving Access to Justice_ To improve access to justice for the poor and victims of human rights violations through the provision of legal aid and increasing the numbers of, and delivering training to, lawyers and other human rights defenders. ## _Human Rights and Criminal Justice_ To improve respect for the dignity of the person through projects combating torture, championing reduced use of the death penalty and advocating for improved human rights protection for all detained persons. ## **13 Analysis of net assets between funds** |**Unrestricted**
**Restricted**
**£**
**£**
Fund balances at 31 March 2021 are represented by:
Tangible assets
228
-
Current assets/(liabilities)
162,006
1,291,261
162,234
1,291,261|**Total**
**£**
228
1,453,267
1,453,495| |---|---| ## **14 Operating lease commitments** At the reporting end date the Charity had outstanding commitments for future minimum lease payments under operating leases, which may be terminated by giving three months' notice. These fall due as follows: - 21 - ## **THE RIGHTS PRACTICE** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021** |**14**|**Operating lease commitments**||**(Continued)**| |---|---|---|---| |||**2021**|**2020**| |||**£**|**£**| ||Within one year|24,220|24,220| The operating lease relates to The Foundry, which is the charity's principal address. The amount recognised as an expense in the year is £ 23,419 (20 20 : £1 7 , 986 ). ## **15 Related party transactions** No trustee or other person related to the charity had any personal interest in any contract or transactions entered into during the year (2020: none). |**16**|**Cash generated from operations**|**2021**|**2020**| |---|---|---|---| |||**£**|**£**| ||Surplus/(deficit) for the year|866,081|(173,340)| ||Adjustments for:||| ||Investment income recognised in statement of financial activities|(329)|(840)| ||Depreciation and impairment of tangible fixed assets|228|227| ||Movements in working capital:||| ||(Increase)/decrease in debtors|(624,606)|95,395| ||Increase in creditors|52,371|5,554| ||(Decrease)/increase in deferred income|(370,264)|370,264| ||**Cash (absorbed by)/generated from operations**|(76,519)|297,260| |17|**Analysis of changes in net funds**||| ||The Charity had no debt during the year.||| - 22 -