2023-03-31-accounts - Baag (British And Irish Agencies Afghanistan Group)

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REGISTERED COMPANY NUMBER: 06880188 (England and Wales) REGISTERED CHARITY NUMBER: 1135700

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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 2023

	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 20

BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP)

CHAIR'S REPORT FOR THE YEAR ENDED 31 MARCH 2023

Between April 2022 and March 2023, the people of Afghanistan continued to face crisis after crisis. Afghanistan has over the year been at risk of becoming a forgotten crisis despite the insurmountable scale of humanitarian need in the country. The poor and marginalized were the most impacted and this group continues to grow. Focus on Ukraine and on other equally challenging humanitarian situations meant the demands on the international community to assist other crises were enormous.

This year was marked by an extraordinary deterioration of rights for women and girls across the country. In December 2022 the edict banning women from working further disempowered women, undoing years of development work while intensifying restrictions on fundamental rights for women and girls. We saw an increase in vulnerability to poverty as household incomes decreased - and this especially affected femaleheaded households. The UN Rapporteur on Human Rights in Afghanistan reported the normalisation of gender-based violence due to the implicit and explicit condoning by the de facto authorities. Since the bans on women and girls, Afghanistan has seen a sharp decline in aid, despite the continued warnings that this would further harm women and girls.

This year, Afghan communities were also ravaged by the effects of climate change and natural disasters. Consecutive droughts have continued to contribute to high levels of hunger and water scarcity, in a country where nearly eighty percent of the population depend on agriculture and four out of five households have seen a reduction in income.

British and Irish organisations and civil society faced an increasingly challenging operating context. The sudden and major decline in the amount of funding to Afghanistan, a highly aid dependent country, meant that some felt the world had turned its back on them. UK aid was reduced by more than a half. The decline in aid was coupled with a deterioration in Afghanistan's economy - resulting in 70% of Afghans being unable to meet their daily needs. Humanitarian funding is critical, it should be flexible and multi-year, and complemented by funding which will support longer-term development assistance.

BAAG's response has been to redouble efforts to bring people together to reach consensus on policy direction and advocacy messages and to support the people of Afghanistan.

Forty years after its inception, the work of BAAG and its members continues to be as relevant as ever. BAAG undertakes essential tasks in bringing together its members agencies, in developing policy and advocacy messages, which are also informed by Afghan civil society. This is particularly critical as restrictions on the rights of women and girls are systematically increased. BAAG plays an important role in continuing to raise awareness of the humanitarian and development challenges and achievements in Afghanistan.

BAAG was and is not immune to the shrinking funding landscape for Afghanistan. This year, in addition to BAAG's core work, a significant amount of time was dedicated to fundraising. We are grateful to the donors who supported us throughout this challenging year: The Open Society Foundation, the Department for Foreign Affairs, Ireland, CAFOD, Christian Aid, and Choose Love. The recruitment of the advocacy officer and a finance and administrative support role have meant BAAG has been able to undertake some key policy and advocacy positions along with its members.

This year saw challenges in securing funding to maintain the same level of core staff BAAG has had in the past. We are grateful to those who generously provided voluntary support during short and prolonged periods of funding gaps. BAAG's long-term sustainability will be a key focus for Trustees in 2024.

As the situation for Afghans continued to deteriorate, and funding continued to shrink, like our members, BAAG held on tight, refused to lose hope and preserved under the stewardship of Elizabeth Winter as Acting Executive Director.

I commend for the staff for their commitment and passion for justice in support of the most vulnerable communities in Afghanistan.

Sincerely,

Ramani Leathard Chair, BAAG December 2023

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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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 2023. 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 both people inside and refugees outside the country, in particular by promoting the 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 paragraph above, are compliant with the Charities Commission Guidance on Public Benefit and further exemplified in the following statements of achievement and performance. The main areas of BAAG's work were policy and advocacy in collaboration with its members and those of the Civil Society Working Committee (CSWC) and other coordinating bodies such as ENNA, the European Network for NGOs in Afghanistan, and ACBAR, the Agency Coordinating Body for Afghan Relief. Raising funds for the continuation of BAAG's work remained an overall priority.

Public benefit

The Trustees have paid due regard to the Charity Commission's guidance on public benefit in deciding the activities undertaken by the charity during the year.

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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

ACHIEVEMENT AND PERFORMANCE Charitable activities Context

The defining context of the year has been the continuation of the rule of the Taliban as the de facto authorities, dfa, and the continuing dilemmas which have therefore faced both national and international actors which are operational inside the country. Decrees and edicts from the dfa have systematically added to restrictions placed on the population, above all its women and girls. A particularly notable addition was the order from the Taliban, deliberately timed for Christmas Eve, a Saturday in 2023, that Afghan women were no longer permitted to work in NGOs. This followed shortly after the Order banning women from studying at university.

The situation for the majority of the population, compared to last year, has worsened further with a reduction in human rights and civic space and an increase in hunger and malnutrition. Poverty and unemployment continued to increase and the majority of the population no longer had enough for their basic needs to be met but it was clear that humanitarian assistance alone would not provide a solution to this.

Donors continued to deliberate about their level of involvement with Afghanistan, as the dfa have been unwilling to concede any ground on human rights issues and did not seem likely to modify their behaviour. The majority of donors, including the UK, have therefore maintained a position of 'pragmatic engagement': in practice this means no or a limited diplomatic presence in the country, whilst continuing to provide humanitarian aid, narrowly defined, via NGOs and the UN. Donors are conscious of the need for the population to have livelihoods, as a matter of survival but some have struggled to reconcile this with the intransigence of the dfa, which means funding towards development assistance and broader economic support remains extremely limited.

Networking and information sharing

The demand for services BAAG has provided to its members and operational agencies in Afghanistan, as well as to donors and other stakeholders, has continued. BAAG has played a valuable role in supporting its members and for Afghan civil society actors who have welcomed its role as a channel for their views and those of the population they are in touch with. BAAG provided evidence to the International Development Select Committee on January the 31st, 2023, together with members of BAAG.

BAAG continued to hold weekly meetings throughout the year, to exchange views with its members and others and to plan joint policy and advocacy activities. Weekly meetings were also held with the Civil Society Working Committee (the network of Afghan umbrella groups). The information exchange, facilitating in turn the analysis made available to others, and the development of policy positions, continues to be valued by others, for researchers and in off the record round tables and private discussions. One example is the contribution to a study by the European Institute of Peace (Analytical Brief Challenges for Women in Afghanistan to Access Life-Depending Aid).

BAAG also supports and coordinates with other networks such as the Agency Coordinating Body for Afghan Relief, ACBAR, the European Network for NGOs in Afghanistan (ENNA) and the International Consortium for Refugees in Iran, ICRI, which the Director chairs. BAAG is an active member of a network led by Human Rights Watch which discusses and lobbies for improvements in HMG's treatment of asylum seekers and those eligible under the ARAP and ACRS schemes.

BAAG has remained an important partner with the Foreign, Commonwealth and Development Office, FCDO. The meetings between its senior civil servants and NGO representatives, that FCDO asked BAAG to convene, have continued regularly during the year. This included facilitating in person strategy meetings between FCDO's Basic Services team and BAAG members. These meetings are of value to all participants, who prepare well for them, and provide a frank exchange of information and thoughts that inform their views and actions.

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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Policy and Advocacy

A significant aspect of BAAG's work has been that on policy and advocacy, in collaboration with its members and the wider group of agencies operational in Afghanistan, both Afghan and international. We arranged a series of meetings to address the dilemmas faced by NGOs and the wider international community in relation to working in Afghanistan and these were attended by FCDO and ENNA as well as our own members. Such discussions were felt to be helpful in navigating through the increasing restrictions on NGOs imposed by the dfa.

We facilitated part of the UK visit for Richard Bennett, the UN Special Rapporteur on the Situation of Human Rights in Afghanistan, who had a series of meetings including with FCDO, Chatham House and Afghan women activists. We arranged a meeting between Rina Amiri, the US Special Envoy for Afghan Women and Girls and Human Rights, and the British and Irish NGOs operating in Afghanistan. We also facilitated and supported meetings between prominent members of Afghan civil society and the FCDO.

BAAG's convening power has been of value in providing information and analysis of the situation on the ground when international missions other than those of the UN, have been suspended. BAAG's convening power was recognised and praised by senior officials within the FCDO.

Having a full-time advocacy officer during the period enhanced BAAG's ability to distil information and thinking and to develop policy and advocacy messages.

BAAG has continued its engagement with Members of Parliament and Peers, as well as key institutions such as Independent Commission Aid Impact (ICAI). The Director was requested to give evidence to the International Development Committee on 31st January 2023, together with members of BAAG. BAAG's Director also spoke during the Conservative Party Conference. BAAG has also played an essential role in coordinating advocacy towards the FCDO and EU, including a number of written submissions from BAAG members to Ministers.

Casework

BAAG has continued to support individuals in their quest for resettlement from countries outside Afghanistan.

Programmes supporting Afghan Civil Society

BAAG continued to support those at risk in Afghanistan, and, with funding from the Irish Government's Department of Foreign Affairs, and Choose Love, supported protection work in Afghanistan in partnership with an Afghan civil society organisation. This complemented the casework and advocacy we have undertaken. BAAG continued to facilitate meetings with CSWC members remotely, via a secure online platform accessed by those within and outside Afghanistan. The Trustees and staff would like to pay tribute to Afghan men and women who manage to find ways of navigating the current situation to the benefit of others.

Fundraising

BAAG staff have been allocating time to fundraising, in line with BAAG's Board approved strategy. Applications have been made to a variety of donors but as research has shown, it is the smaller charities that have suffered most from funding difficulties and the current funding climate has remained as challenging as last year

Core Support

BAAG has been very grateful to receive contributions to our core costs from CAFOD, Christian Aid, the Department for Foreign Affairs Ireland, the Joffe Trust, and the Open Society Foundation.

Income in Kind

All Trustees give their time unpaid. We have been very grateful for the assistance of a number of volunteers who have helped BAAG, often after having been staff members. Fereshta Abbasi, Sayed Erfan Kazem, and Shamim Sarabi.

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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

FINANCIAL REVIEW

Financial position and reserves policy

The financial position of the charity at 31 March 2022 is set out on page 12.

Total reserves at 31 March 2023 amounted to £179,912 of which £117,081 represented restricted funds and £62,831 represented unrestricted funds.

Free reserves amounts to £62,831 at the year end (2022 £47,197).

BAAG has historically aimed to hold unrestricted reserves equal to 3 months of core costs. Unrestricted reserves on 31 March 2023 amounted to over £62,000, which represented more than the target 3 months.

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.

Going concern

As part of the Trustees' ongoing assessment of the financial health and sustainability of BAAG, we have reviewed the organisation's current financial position and projections for the forthcoming year. Based on this review, we affirm our belief that BAAG continues to operate as a going concern.

It is acknowledged, however, that like many charitable organisations, BAAG faces ongoing financial challenges that require proactive and continuous management. In light of this, the Trustees are committed to ensuring the long-term sustainability of the charity through a strategic approach to financial planning and resource management.

A key part of our strategy involves engaging in constructive dialogues with our valued members, supporters, and stakeholders. These discussions are vital in aligning our organisational goals with the resources needed to achieve them and ensuring a shared understanding and commitment to our mission.

In addition to these efforts, the Board is actively exploring various grant and funding opportunities.

By broadening our funding base and strengthening our relationships with funding bodies, we aim to secure the financial support necessary to continue our important work.

The Trustees remains vigilant in monitoring the financial status of BAAG and are dedicated to taking all necessary actions to ensure its continued viability and success. We are confident in our strategies to address the financial challenges and are committed to upholding the trust placed in us by our members, donors, and the communities we serve.

FUTURE PLANS

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.

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 2023

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 the Chair and 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 Ramani Leathard, Chair, since November 2020, Monica Encinas Hon. Secretary and Tareq Hassan Sholi, Treasurer. Mark Bowden continued as a Board member/Trustee and Niamh Furey joined as Board member and Trustee in January 2022. None of the Trustees have a beneficial interest in the Company. All of the Trustees are members of the Company and guarantee to contribute £10 in the event of the Company being wound up.

BAAG continued to be accommodated by CAFOD, a member of BAAG. During this period Elizabeth Winter remained as Acting Director, Janine Hamersley joined as Administrator and Finance Officer in January 2022, taking over from Shamim Sarabi. Jackie Foley was the Communications Officer from January to September 2022 and Kim Nelson left his position as Advocacy Officer in April 2023 and continues to support BAAG in a voluntary capacity.

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 Ms R Leathard Mr T H Sholi 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

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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

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".

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

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
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:

there is no relevant audit information of which the charitable company's auditors are unaware; and
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 21 December 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 2023 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:

give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; 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 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:

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
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:

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 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:

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;
obtaining an understanding of the internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations;
assessing the risk of management override including identifying and testing journal entries;
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: 21 December 2023

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BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 3 48,277 Charitable activities Membership fees 15,159 Total 63,436 EXPENDITURE ON Charitable activities 4 Policy work & information sharing 47,802 Raising the profile - Membership activity and networking - Total 47,802 NET INCOME 15,634 RECONCILIATION OF FUNDS Total funds brought forward 47,197 TOTAL FUNDS CARRIED FORWARD 62,831	Restricted funds £ 248,573 - 248,573 81,647 97,806 53,979 233,432 15,141 101,940 117,081	2023 Total funds £ 296,850 15,159 312,009 129,449 97,806 53,979 281,234 30,775 149,137 179,912	2022 Total funds £ 185,379 11,573 196,952 66,159 57,010 31,446 154,615 42,337 106,800 149,137

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 2023

Unrestricted fund Notes £ CURRENT ASSETS Debtors 9 19,976 Cash at bank 85,719 105,695 CREDITORS Amounts falling due within one year 10 (42,864) NET CURRENT ASSETS 62,831 TOTAL ASSETS LESS CURRENT LIABILITIES 62,831 NET ASSETS 62,831 FUNDS 11 Unrestricted funds Restricted funds TOTAL FUNDS	Restricted funds £ - 134,848 134,848 (17,767) 117,081 117,081 117,081	2023 Total funds £ 19,976 220,567 240,543 (60,631) 179,912 179,912 179,912 62,831 117,081 179,912	2022 Total funds £ 5,319 321,773 327,092 (177,955) 149,137 149,137 149,137 47,197 101,940 149,137

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 21 December 2023 and were signed on its behalf by:

............................................. 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 2023

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

In addition to these efforts, the Board is actively exploring various grant and funding opportunities.

By broadening our funding base and strengthening our relationships with funding bodies, we aim to secure the financial support necessary to continue our important work.

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.

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continued...

BAAG (BRITISH AND IRISH AGENCIES AFGHANISTAN GROUP)

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

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.

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 Finland Christian Aid CAFOD - ACS M4D Government of Ireland OSF UK Aid Joffe Trust	2023 £ - 296,850 296,850 2023 £ 31,818 - 16,459 45,788 - 85,663 97,298 - 19,824 296,850	2022 £ 2,602 182,777 185,379 2022 £ - 5,514 4,000 17,373 263 51,824 97,295 6,508 - 182,777

Grants received, included in the above, are as follows:

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

4. CHARITABLE ACTIVITIES COSTS

	Policy Work &		Membership
	information	Raising the	activity and
	sharing	Profile	networking	Total 2023	Total 2022
	£	£	£	£	£
Salary costs	39,475	36,587	20,219	96,282	28,898
Direct costs	64,873	60,126	33,227	158,226	118,734
Share of support costs	1,177	1,093	532	2,802	2,334
Share of governance costs	23,924	-	-	23,924	74,650
Total	129,449	97,806	53,979	281,234	154,615

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 Afgahans and 21% on membership activity. Direct and suppport costs are apportioned 42%, 39% and 19% respectively.

5. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration	2023 £ 6,500	2022 £ 6,000

6. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

7. STAFF COSTS

STAFF COSTS
Wages and salaries Social security costs Other pension costs	2023 £ 81,298 8,512 6,472 96,282	2022 £ 26,757 - 2,141
		28,898

The average monthly number of employees during the year was as follows:

	2023	2022
Total	3	2

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 £42,665 (2022 £26,975).

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund £ INCOME AND ENDOWMENTS FROM Donations and legacies 6,865 Charitable activities Membership fees 11,573 Total 18,438 EXPENDITURE ON Charitable activities Policy work & information sharing 10,971 Raising the profile - Membership activity and networking - Total 10,971 NET INCOME 7,467 Transfers between funds 9,520 Net movement in funds 16,987 RECONCILIATION OF FUNDS Total funds brought forward 30,210 TOTAL FUNDS CARRIED FORWARD 47,197 9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Prepayments and accrued income	Restricted funds £ 178,514 - 178,514 55,188 57,010 31,446 143,644 34,870 (9,520) 25,350 76,590 101,940 2023 £ 419 19,557 19,976	Total funds £ 185,379 11,573 196,952 66,159 57,010 31,446 154,615 42,337 - 42,337 106,800 149,137 2022 £ 5,319 - 5,319

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors Accruals and deferred income	2023 £ 16,096 44,535 60,631	2022 £ 10,244 167,711 177,955

Included in accruals and deferred income above is £14,667 (2022 £150,311) of deferred income. All will be released in 23/24 year end.

11. MOVEMENT IN FUNDS

Unrestricted funds General fund Restricted funds Government of Lithuania CAFOD-ACS Government of Ireland UK AID OSF TOTAL FUNDS	At 1/4/22 £ 47,197 31,458 - - 3,508 66,974 101,940 149,137	Net movement in funds £ 15,634 (589) 9,719 6,177 - (166) 15,141 30,775	At 31/3/23 £ 62,831 30,869 9,719 6,177 3,508 66,808 117,081 179,912

Net movement in funds, included in the above are as follows:

Unrestricted funds General fund Restricted funds Government of Lithuania CAFOD-ACS Government of Ireland OSF Joffe Trust TOTAL FUNDS	Incoming resources £ 63,436 - 45,788 85,663 97,298 19,824 248,573 312,009	Resources Movement expended in funds £ £ (47,802) 15,634 (589) (589) (36,069) 9,719 (79,486) 6,177 (97,464) (166) (19,824) - (233,432) 15,141 (281,234) 30,775

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

11. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds General fund Restricted funds Government of Lithuania CAFOD-ACS Government of Finland Christian Aid UK AID OSF TOTAL FUNDS	At 1/4/21 £ 30,210 38,755 28,315 5,520 4,000 - - 76,590 106,800	Net movement in funds £ 7,467 (7,297) (28,315) - - 3,508 66,974 34,870 42,337	Transfers between funds £ 9,520 - - (5,520) (4,000) - - (9,520) -	At 31/3/22 £ 47,197 31,458 - - - 3,508 66,974 101,940 149,137

Comparative 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

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.

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

11. MOVEMENT IN FUNDS - continued

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.

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.

Joffe Trust

The Joffe Trust is a specialist grant-maker which provides informal advice and assistance to small charities and supports civil society leaders who contribute to global justice and equality. BAAG received a grant from the Joffe Trust in late 2021 for progress towards our core goals in support of civil society in Afghanistan. The grant was to partly fund the Administration and Finance Officer post and its use was deferred to January 2023 as other funding had become available for the post.

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023

12. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2023.

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