REGISTERED COMPANY NUMBER: 06880188 (England and Wales) REGISTERED CHARITY NUMBER: 1135700
REPORT OF THE TRUSTEES AND
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
FOR
BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
Haines Watts Chartered Accountants & Statutory Auditors Old Station House Station Approach Swindon Wiltshire SN1 3DU
BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
| Page | |
|---|---|
| Chair's Report | 1 |
| Report of the Trustees | 2 to 7 |
| Report of the Independent Auditors | 8 to 10 |
| Statement of Financial Activities | 11 |
| Statement of Financial Position | 12 |
| Notes to the Financial Statements | 13 to 19 |
BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
CHAIR'S REPORT FOR THE YEAR ENDED 31 MARCH 2022
Between April 2021 and March 2022, Afghanistan lurched from crisis to crisis impacting most on poor and marginalized people. Reeling under an unprecedented drought brought on by the La Nina effect, along with the 3rd wave of the COVID pandemic and the increased fighting and insecurity associated with armed opposition group such as the Taliban; many Afghan livelihoods were adversely affected. The combined violence and drought resulted in the increase in food prices, roadblocks and internal displacement.
On 15th August with the withdrawal of foreign troops, the Taliban took power and the country was plunged into a state of chaos, with many Afghans attempting to flee into neighbouring countries and putting their lives at risk. The operating landscape for BAAG members (and all NGOs), changed drastically in the reporting year from then onwards. Despite the challenges, which seem to increase daily, NGOs remain dedicated to serving and addressing the needs of the Afghan people, especially women and girls at risk.
International requirements of inclusivity and gender sensitivity were not respected. The sudden political change in mid-August 2021 was followed by a great change in the government structures, personnel, policies and procedures that led to severe unemployment, challenging banking systems, a lack of access to resources and decreased purchasing power causing delays in the implementation of some projects. In addition, the perspective of the IEA authorities about rights, justice and peace, and their unclear policies and guidelines about women's participation and the NGO framework created further tensions.
Elizabeth gave evidence on behalf of BAAG, with the Halo Trust, and Geneva Call, to the International Development Select Committee's recent one-off inquiry on Afghanistan. BAAG continued advocating for humanitarian and development assistance, for commitments under the ARAP scheme to be honoured, and for the Afghanistan Citizens Resettlement Scheme to be developed and go live. However, ACRS had no criteria developed at that time. BAAG also recommended the IDSC do a fuller inquiry next year to include looking into this and supporting Afghan involvement in decision making.
The work of BAAG continues to be as relevant as ever, as it brings INGOS together to advocate along with Afghan agencies on a number of issues, not least on the rights and empowerment of women as restrictions increase. This is critical work that the BAAG team carries out in continuing to make the public and policy makers aware of the development achievements and challenges in Afghanistan.
Board members met with the Charity Commission as part of a regular monitoring and review exercise. On the 10th of December the Charity Commission sent a summary of the meeting they held with BAAG at CAFOD on the 9th of November, and this was circulated to the Trustees and then returned with minor amendments. The Charity Commission requested the following be sent to them: 1. Financial controls policy; 2. Sample Trustee meeting minutes where topics such as the Taliban takeover, staff evacuation, serious incident reporting and the Charity's considerations for the use of Hawala (if discussed formally); 3. Risk Management policy (including risk register if held).
Funds have been secured despite numerous challenges - donors include The Open Society Foundation, The Joffe Trust and Irish Aid. BAAG is also regularly supported by CAFOD with a grant in addition to hosting BAAG within their offices in exchange for rent. A key constraint/challenge over the past year has been that of the difficulty in obtaining funding for the Executive Director's post which would allow BAAG to offer a permanent post.
BAAG has worked in the most challenging of times and I commend Elizabeth Winter for stepping in as Acting Executive Director, and the staff for their commitment and passion for justice in support of the most vulnerable communities in Afghanistan.
Sincerely,
Ramani Leathard Chair, BAAG
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The objectives of BAAG are the advancement of any charitable purposes for the relief of poverty, distress and hardship among the people of Afghanistan and refugees from Afghanistan, in particular by promoting effectiveness and efficiency of the voluntary sector organisations, and other institutions that are involved in the delivery of humanitarian and development aid. This is in accordance with the charity's Memorandum and Articles of Association.
The Trustees believe that the aims, objectives and services provided by the charity, reflected in the above paragraph, are compliant with the Charities Commission Guidance on Public Benefit and further exemplified in the following statements of achievements and performance. The main areas of BAAG work were policy and advocacy in collaboration with its members and ENNA, the European Network for NGOs in Afghanistan, and the continued development of Afghan civil society, and the amplification of its voices, in collaboration with the Civil Society Working Committee (CSWC). Raising funds for the continuation of BAAG's work remained an overall priority.
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The defining event during the period of reporting was the withdrawal of NATO troops from Afghanistan, which was first confirmed by President Biden in April 2021. The evacuation of troops from Afghanistan took place over August 2021 and led to the subsequent takeover by the Taliban as the de facto authorities in the country. The fallout of this has been significant for both Afghans, civil society and NGOs which have been operational in the country. The Taliban in control of the country has presented a serious dilemma for the international community, with many donors reassessing their own terms of engagement and how they can continue to support the Afghan population, in the face of increasingly severe human rights abuses. Humanitarian conditions have worsened considerably over this period, with near universal poverty, widespread unemployment and rising levels of hunger, driven by the country's economic collapse.
Network and information-sharing
Against this context of significant change, BAAG has continued to play a valuable role in supporting its NGO members and coordinating with a range of stakeholders, including key donors such as the FCDO and EU.
BAAG has regularly held meetings with its members, weekly after August 15 and continuing after the evacuation, which have been a vital opportunity to share operational updates and challenges in Afghanistan. BAAG also continued its information sharing role through the production of the monthly 'Afghanistan This Month' report. BAAG also supports and coordinates with other networks on Afghanistan, such as the European Network of NGOs in Afghanistan (ENNA), ICRI (the International Consortium for Refugees in Iran) and ACBAR (Agency Coordinating Body for Afghan Relief & Development).
BAAG has remained an important partner with the Foreign, Commonwealth & Development Office. BAAG staff continue to consult and advise senior civil servants within the FCDO. BAAG was asked by the FCDO to coconvene regular coordination meetings between senior civil servants in the FCDO and representatives of NGOs. BAAG also chaired roundtable discussions with other key stakeholders such as UNAMA, donors and civil society, focused on the peace process and support for civil society. BAAG's Director also joined the Advisory Committee for Afghan think tank Heart of Asia Society and participated in the Afghanistan Strategic Learning Initiative which was organised by a number of leading think tanks including the CGD, Chatham House and ODI.
Policy and Advocacy
BAAG has continued to be valued by policymakers who have looked to BAAG's expertise and convening power for advice during an incredibly difficult time of transition in Afghanistan. This is particularly true in the aftermath of the evacuation, as donors have been forced to recalibrate their work, with many no longer having a direct presence in the country. In this regard, BAAG's network of international and Afghan NGOs working in the country has been an important source of on-the-ground information.
BAAG's advocacy work has been supported by a grant from Open Society Foundations (OSF) which contributed to additional staff, including a Communications Officer, Advocacy Officer, and CSWC Coordinator. BAAG has made a critical impact in ensuring that donor funding has been maintained to Afghanistan, particularly around the pledging donor Summit for Afghanistan which was held on 31st March 2022. BAAG was involved in a number of advocacy activities in the lead up to the Summit:
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BAAG was consulted by the UK Government, which was co-hosting the summit, to recommend and put forward Afghan speakers.
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BAAG worked with its members to issue a joint statement with ENNA, ahead of the Summit which was shared with FCDO and EU Official.
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BAAG also collaborated with Bond on a second press release which was issued in response to the summit.
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BAAG signed a letter with over 40 NGOs calling for the UK aid budget to return to 0.7% of GNI.
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• BAAG held a briefing between Parliamentarians and BAAG Members in December 2021.
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022
BAAG also supported advocacy around the impact of sanctions against the Taliban on humanitarian activities in the country, which was eventually alleviated through exemptions to humanitarian activity. BAAG's Director co-authored an op-ed in Al Jazeera calling on the US and the EU to review its sanctions policy, signed onto a joint letter ahead of the G20 Leaders Summit in October and continued to raise this issue internally with the FCDO.
Evacuation and casework
During the evacuation period from August 2021 onwards, BAAG was managing large numbers of cases to support and assist at-risk individuals, as well as maintaining direct contact with the FCDO to facilitate their evacuation from the country. The need to support the evacuation of at-risk Afghans from civil society has been reflected in BAAG's subsequent advocacy work. BAAG has been a core member of an advocacy group, led by Human Rights Watch, to advocate for improved resettlement policies in the UK. Key activities during this period include:
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BAAG was involved in media about the need to evacuate and resettle vulnerable groups of Afghan, including aid workers and members of civil society who were targeted by the Taliban. This includes: Devex and The Guardian.
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BAAG supported an amendment to the Nationality and Borders Bill to expand the Afghan Relocations and Assistance Policy. Although the amendment wasn't accepted it garnered significant parliamentary support.
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BAAG's Director gave evidence before the International Development Committee in December 2021 which informed their subsequent report calling for improved support for Afghan aid workers, including improved resettlement and evacuation.
As a result of BAAG's efforts, including individual casework and wider advocacy, we were able to support the safe evacuation of prominent members from Afghan civil society who would have been at risk under the Taliban.
Programmes supporting Afghan civil society During this period, BAAG has continued to support Afghan civil society strengthening through projects, despite the significant change in context and the challenges facing many Afghans.
1. Civil Society strengthening in Afghanistan
BAAG continued with its civil society strengthening programme, funded by CAFOD, through facilitating weekly meetings with the members of Civil Society Working Committee (CSWC). CSWC's ability to lead and coordinate advocacy has been severely impacted by the Taliban's takeover of the country, which forced many individuals from CSWC, including the coordinator, to leave the country. Others have had to put considerable efforts into adapting their programmes and restructuring their organisations to be compliant with new requirements.
BAAG has continued to facilitate meetings with CSWC members remotely, via a secure online platform, with attendance where possible from CSWC members who remain in country and those who are abroad. CSWC meeting remains a vital source of information sharing which has also informed BAAG's advocacy work and coordination of advocacy work amongst members. The Trustees and staff would like to pay tribute to the Afghans who have struggled through this period of transition.
2. Protection of Afghan civil society
With support from the Irish Government's Department for Foreign Affairs, BAAG has been able to support protection work within Afghanistan, in partnership with a civil society organisation. This work has complemented ongoing advocacy efforts and casework to support the resettlement and evacuation of at-risk Afghans which is outlined above.
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022
Fundraising
Fundraising for sustainable funding and grants is now a core part of BAAG's Strategy which was recently reviewed and approved by the Board. BAAG staff are allocating some of their time to focus on fundraising and so far have applied for a number of grants from Institutional donors, trusts and foundations. BAAG remains in active discussion with FCDO and other donors about areas where they may be able to support, although the current funding climate in the UK remains challenging.
Core Support
During the year, BAAG was grateful to receive core support from Christian Aid, the Joffe Trust, and the Open Society Foundation. The Joffe Trust provided funding for an Administration and Finance Officer who has been responsible for the operational running of BAAG and has provided additional support for programme management and financial reporting. Christian Aid, one of BAAG's members, has provided an additional grant that has contributed towards BAAG's core costs. This includes renting office space, subscriptions and additional admin fees. OSF's grant has funded a number of staff positions including an Advocacy Officer, a Communications Officer and part-time CSWC Coordinator. This grant has also contributed to core costs and specific advocacy activities.
Income in Kind
BAAG is very grateful for the contributions of volunteers who have been crucial to keeping the organisation going through what has been a challenging time for all involved in Afghanistan. It is difficult to measure the monetary value of their services which is not therefore included in the SOFA. All Trustees also give their time voluntarily.
FINANCIAL REVIEW
Financial position and reserves policy
The financial position of the charity at 31 March 2022 is set out on page 12..
BAAG has historically aimed to hold unrestricted reserves equal to 3 months of core costs. Unrestricted reserves on 31 March 2022 amounted to under £50,000, which represented around 6 months of core costs.
This level of unrestricted reserves will be maintained, either through the raising of additional funds or managing costs, and the Trustees will continue to review BAAG's reserve policy in light of ongoing challenges and the need to ensure the organisation will always be able to make its legal obligations.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks. The most significant risk identified is long-term funding.
BAAG continues to build key donor and implementation partner relationships to position itself for future funding opportunities. BAAG continues to monitor the organisational cost base to ensure funding is in place to cover core costs for at least 6 months.
Our future plans are to continue operating in line with our strategic directions and fundraising for our work, which is more in demand than ever.
Going concern
The charity is dependent on continued support from grant funders and its members. The trustees do not see any reason why these sources of funding will not continue. Thus the trustees continue to adopt the going concern concept in preparing these financial statements.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022
BAAG is a company limited by guarantee (number 6880188) and registered charity (number 1135700). Effective governance is delivered by a board of directors who are also Trustees.
The Articles of Association provide for at least three Trustees. There is no maximum provided in the Articles. Induction of new Trustees includes visits to the charity's office, discussions with employees and management and meetings with other Trustees. Past accounts and board papers are provided. The Trustees are recruited for their individual experience as well as the balance of skills the Board requires.
The Officers during this period were Monica Encinas (Secretary), Pete Simms; Ramani Leathard and Mark Bowden were Trustees. Ramani Leathard took over as Chair in November 2020 and has remained in this position. Niamh Furey joined as a Board Member in January 2022. Tareq Hassan Sholi has continued as the Treasurer. None of the Trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £10 in the event of winding up.
BAAG continued to be accommodated by CAFOD, a member of BAAG. There were changes in the staff team during this period. Elizabeth Winter has remained as acting Director. Shirazuddin Siddiqi was in place as Senior Management Advisor from January - June 2021. Janine Hamersley took over from Shamim Sarabi, as an Administration and Finance Officer in January 2022. Jackie Foley also joined BAAG as the Communications Officer in January 2022.
REFERENCE AND ADMINISTRATIVE DETAILS
Registered Company number
06880188 (England and Wales)
Registered Charity number
1135700
Registered office
Romero House 55 Westminster Bridge Road London SE1 7JB
Trustees
Mr M R Bowden Ms N B Furey (appointed 19.2.22) Ms R Leathard Mr T H Sholi Ms F E Roberts (resigned 5.11.21) Mr P R Simms (resigned 27.6.22)
Company Secretary
Ms M Encinas-Lepingwell
Auditors
Haines Watts Chartered Accountants & Statutory Auditors Old Station House Station Approach Swindon Wiltshire SN1 3DU
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of BAAG (British and Irish Agencies Afghanistan Group for the purposes of company law) are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITORS
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Approved by order of the board of trustees on 30[th] June 2023 and signed on its behalf by:
................................................................. Ms R Leathard - Trustee
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
Opinion
We have audited the financial statements of BAAG (British and Irish Agencies Afghanistan Group (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position and 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and
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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 Auditors' 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 the charitable company'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.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
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.
In connection with our audit of the financial statements, 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 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:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees has been prepared in accordance with applicable legal requirements.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
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 Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes 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 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.
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
Our 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 a Report of the Independent Auditors 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory framework applicable to both the charity itself and the environment in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102), Charities Act 2011 and relevant tax legislation.
We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:
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making enquires of trustees and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;
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obtaining an understanding of the internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations;
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assessing the risk of management override including identifying and testing journal entries;
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challenging the assumptions and judgements made by management in its significant accounting estimates.
Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
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 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 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.
Susan Plumb ACA (Senior Statutory Auditor) for and on behalf of Haines Watts Chartered Accountants & Statutory Auditors Old Station House Station Approach Swindon Wiltshire SN1 3DU
Date: .............................................
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 3 6,865 Charitable activities Membership fees 11,573 Total 18,438 EXPENDITURE ON Charitable activities 4 Policy work & information sharing 10,971 Raising the profile - Membership activity and networking - Total 10,971 NET INCOME 7,467 Transfers between funds 10 9,520 Net movement in funds 16,987 RECONCILIATION OF FUNDS Total funds brought forward 30,210 TOTAL FUNDS CARRIED FORWARD 47,197 |
Restricted funds £ 178,514 - 178,514 55,188 57,010 31,446 143,644 34,870 (9,520) 25,350 76,590 101,940 |
2022 Total funds £ 185,379 11,573 196,952 66,159 57,010 31,446 154,615 42,337 - 42,337 106,800 149,137 |
2021 Total funds £ 313,520 19,005 |
|---|---|---|---|
| 332,525 | |||
| 110,543 95,480 49,749 |
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| 255,772 | |||
| 76,753 - |
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| 76,753 30,047 |
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| 106,800 |
The notes form part of these financial statements
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
STATEMENT OF FINANCIAL POSITION 31 MARCH 2022
| Unrestricted fund Notes £ CURRENT ASSETS Debtors 8 5,319 Cash at bank 219,833 225,152 CREDITORS Amounts falling due within one year 9 (177,955) NET CURRENT ASSETS 47,197 TOTAL ASSETS LESS CURRENT LIABILITIES 47,197 NET ASSETS 47,197 FUNDS 10 Unrestricted funds Restricted funds TOTAL FUNDS |
Restricted funds £ - 101,940 101,940 - 101,940 101,940 101,940 |
2022 Total funds £ 5,319 321,773 327,092 (177,955) 149,137 149,137 149,137 47,197 101,940 149,137 |
2021 Total funds £ 5,081 126,796 131,877 (25,077) 106,800 106,800 106,800 30,210 76,590 106,800 |
|---|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on .30[th] June 2023 and were signed on its behalf by:
............................................. Ms R Leathard - Trustee
............................................. Mr T H Sholi - Trustee
The notes form part of these financial statements
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
1. CHARITY INFORMATION
BAAG (British & Irish Agencies Afghanistan Group) is a private company limited by guarantee incorporated in England & Wales. The registered office is Romero House, 55 Westminster Bridge Road, London, SE1 7JB.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The financial statements are prepared in sterling, which is the functional currency of the entity and is rounded to the nearest £.
Going concern
The charity is dependent on continued support from grant funders and its members. The trustees do not see any reason why these sources of funding will not continue. Thus the trustees continue to adopt the going concern concept in preparing these financial statements.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Debtors
Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
2. ACCOUNTING POLICIES - continued
Debtors
Creditors
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are recognised at their settlement amount.
3. DONATIONS AND LEGACIES
| Donations Grants Grants received, included in the above, are as follows: DFID-UKAD Government of Lithuania Government of Finland Christian Aid CAFOD - ACS M4D Government of Ireland OSF UK Aid |
2022 £ 2,602 182,777 185,379 2022 £ - - 5,514 4,000 17,373 263 51,824 97,295 6,508 182,777 |
2021 £ - 313,520 313,520 2021 £ 6,181 44,675 178,738 4,000 79,926 - - - - 313,520 |
|---|---|---|
4. CHARITABLE ACTIVITIES COSTS
| Policy Work & | Membership | ||||
|---|---|---|---|---|---|
| information | Raising the | activity and | |||
| sharing | Profile | networking | Total 2022 | Total 2021 | |
| £ | £ | £ | £ | £ | |
| Salary costs | 11,848 | 10,981 | 6,069 | 28,898 | 129.974 |
| Direct costs | 48,681 | 45,119 | 24,934 | 118,734 | 113,694 |
| Share of support costs | 980 | 910 | 443 | 2,334 | 4,924 |
| Share of governance costs | 4,650 |
- | - | 4,650 | 7,180 |
| Total | 66,159 | 57,010 | 31,446 | 154,615 | 255,772 |
The costs of charitable activities are apportioned according to the percentage of time spent of each of BAAG's main arears of operations. This equates to 41% of staff expenditure on policy work and information sharing, 38% of raising the profile of the needs and aspirations of Afghans and 21% on membership activity. Direct and support costs are apportioned 42%, 39% and 19% respectively.
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
5. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.
6. STAFF COSTS
| Wages and salaries Other pension costs |
2022 £ 26,757 2,141 28,898 |
2021 £ 14,080 1,094 |
|---|---|---|
| 15,174 |
The average monthly number of employees during the year was as follows:
Total
| 2022 | 2021 |
|---|---|
| 2 | 1 |
No employees received emoluments in excess of £60,000.
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £26,975.
7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted fund £ INCOME AND ENDOWMENTS FROM Donations and legacies - Charitable activities Membership fees 19,005 Total 19,005 EXPENDITURE ON Charitable activities Policy work & information sharing 7,074 Raising the profile - Membership activity and networking - Total 7,074 NET INCOME 11,931 Transfers between funds (7,892) Net movement in funds 4,039 |
Restricted funds £ 313,520 - 313,520 103,469 95,480 49,749 248,698 64,822 7,892 72,714 |
Total funds £ 313,520 19,005 |
|---|---|---|
| 332,525 | ||
| 110,543 95,480 49,749 |
||
| 255,772 | ||
| 76,753 - |
||
| 76,753 |
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
| 7. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | |
|---|---|---|---|---|---|
| Unrestricted | Restricted | Total | |||
| fund | funds | funds | |||
| £ | £ | £ | |||
| RECONCILIATION OF FUNDS | |||||
| Total funds brought forward | 26,171 | 3,876 | 30,047 | ||
| TOTAL FUNDS CARRIED FORWARD | 30,210 | 76,590 | 106,800 | ||
| 8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Trade debtors | 5,319 | 5,081 | |||
| 9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||||
| 2022 | 2021 | ||||
| £ | £ | ||||
| Trade creditors | 10,244 | - | |||
| Other creditors | - | 64 | |||
| Accruals and deferred income | 167,711 | 25,013 | |||
| 177,955 | 25,077 | ||||
| Included in accruals and deferred income | above is £150,311 | (2021 £13,013) of deferred | income. All | ||
| will be released in 22/23 year end. | |||||
| 10. | MOVEMENT IN FUNDS | ||||
| Net | Transfers | ||||
| movement | between | At | |||
| At 1/4/21 | in funds | funds | 31/3/22 | ||
| £ | £ | £ | £ | ||
| Unrestricted funds | |||||
| General fund | 30,210 | 7,467 | 9,520 | 47,197 | |
| Restricted funds | |||||
| Government of Lithuania | 38,755 | (7,297) | - | 31,458 | |
| CAFOD-ACS | 28,315 | (28,315) | - | - | |
| Government of Finland | 5,520 | - | (5,520) | - | |
| Christian Aid | 4,000 | - | (4,000) | - | |
| UK AID | - | 3,508 | - | 3,508 | |
| OSF | - | 66,974 | - | 66,974 | |
| 76,590 | 34,870 | (9,520) | 101,940 | ||
| TOTAL FUNDS | 106,800 | 42,337 | - | 149,137 |
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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
10. MOVEMENT IN FUNDS - continued
Net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds Government of Lithuania CAFOD-ACS Government of Finland Government of Ireland UK AID OSF TOTAL FUNDS |
Incoming resources £ 18,438 - 17,373 5,514 51,824 6,508 97,295 178,514 196,952 |
Resources Movement expended in funds £ £ (10,971) 7,467 (7,297) (7,297) (45,688) (28,315) (5,514) - (51,824) - (3,000) 3,508 (30,321) 66,974 (143,644) 34,870 (154,615) 42,337 |
|---|---|---|
Comparatives for movement in funds
| Net | Transfers | Transfers | ||||
|---|---|---|---|---|---|---|
| movement | between | At | ||||
| At 1/4/20 | in funds | funds | 31/3/21 | |||
| £ | £ | £ | £ | |||
| Unrestricted funds | ||||||
| General fund | 26,171 | 11,931 | (7,892) | 30,210 | ||
| Restricted funds | ||||||
| DFID-UKAD | 3,876 | (11,768) | 7,892 | - | ||
| Government of Lithuania | - | 38,755 | - | 38,755 | ||
| CAFOD-ACS | - | 28,315 | - | 28,315 | ||
| Government of Finland | - | 5,520 | - | 5,520 | ||
| Christian Aid | - | 4,000 | - | 4,000 | ||
| 3,876 | 64,822 | 7,892 | 76,590 | |||
| TOTAL FUNDS | 30,047 | 76,753 | - | 106,800 |
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
10. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Unrestricted funds General fund Restricted funds DFID-UKAD Government of Lithuania CAFOD-ACS Government of Finland Christian Aid TOTAL FUNDS |
Incoming resources £ 19,005 6,181 44,675 79,926 178,738 4,000 313,520 332,525 |
Resources Movement expended in funds £ £ (7,074) 11,931 (17,949) (11,768) (5,920) 38,755 (51,611) 28,315 (173,218) 5,520 - 4,000 (248,698) 64,822 (255,772) 76,753 |
|---|---|---|
CAFOD
CAFOD's grant funded BAAG's civil society strengthening project, which supported civil society in Afghanistan through coordinated policy and advocacy in partnership with the Civil Society Working Committee (CSWC), which is an established network of Afghan NGO and CSO coordinating bodies, as well as supporting other activities such as the mapping of civil society organisations and research to strengthen understanding of key challenges.
Government of Finland
The Government of Finland funded BAAG to facilitate the Afghan civil society voice into the biennial inter-Ministerial Afghanistan Conference which was eventually held virtually in November 2020 due to the Covid pandemic. This funding provided for the selection of delegates (including two spokespeople) and videos of the delegation, the development of a civil society position paper, a synthesis of papers from other relevant organisations and coordination of wider advocacy before, during and after the Conference. The conference had a great impact, which was remarked upon by the Government of Finland.
Government of Lithuania
The Government of Lithuania announced support for women's rights and empowerment in Afghanistan, at the Afghanistan Conference in 2020 through a grant to be given via BAAG. BAAG organised a competitive process to identify the best project, selecting our Afghan partner from a wide variety of suitable applicants.
Government of Ireland
With the support of a grant from the Government of Ireland's Department of Foreign Affairs, BAAG provided protection assistance for human rights defenders and civil society activists inside Afghanistan in partnership with an established Afghan NGO, as well as BAAG's wider policy and advocacy work.
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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022
10. MOVEMENT IN FUNDS - continued
OSF
OSF's grant supported advocacy for effective policies aimed at European countries, including the UK, which supported development and humanitarian progress in Afghanistan and wider civil society. This project supported a number of key activities including the development of an advocacy action plan, understanding of the landscape of Afghan civil society and other policy and advocacy materials.
UK AID
A grant from UK Aid was made for an Afghan NGO specialising in disability assistance, which coordinated organisations and led active advocacy in Afghanistan and also representation for people with disabilities, with support from BAAG such as training and management advice.
11. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2022.
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