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|||Pages|
|---|---|---|
|Legal and administrative|information||
|Report ofthe Directors||2-7|
|Independent<br>Auditor's|Report|8-9|
|Statement of Financial|Activities|10|
|Balance Sheet|||
|Cashflow Satement||12|
|Note to the Financial Staements||13-23|





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European Council on Foreign Relations
Independent Auditor's Report to the members of ECFR
Respon$lblliti•s of tru$t•os
As explained moig lully in the tru$tees' responsibilities statement, thè trustees (who 8re also the directors of the charrtab
company for the purposes of company lawl are rèsponsiblè for the preparation of the financial stat•ment5 and for being
satisfied that they give a true and fair wew, and lor such irllemal ¢ontrol 8$ the trustees deterrninè is necessary to enable
Ihe p￿para￿trft of finantsal statements that are free from material misstatement, whether due to fraud or e¢ror.
In preparing the financial statements. the trustees a￿ ￿spOnsibIè for assessin9 the charrtable company's ability to
continue as a going concem. di$¢losing. as applicabl8, matters related to going COn￿M and using thè going COn￿M
basis of accotsnth.ng unless the trust8ès 8ith8r Int8nd to liqu￿ate the charitable company or to (*8sg operabons, or have
no realisbc altém8tive but to do so
Audit9￿$ ￿po￿l￿1•1¢1eS for the audkt olth• flnaneial ststom•nt8
Our objectives are to obtain reasonab￿ 8ssuran¢g about whether the finanoal statements as 8 whole are free from
material misstatement. whether duè to fraud or error. and to issue an au(*rto¢s report that indudes our opinion.
R?850nab￿ a5surancg is a high level of assurance, bul is not a guaiantoè that an audit o¢)nducted in aceordanc8 wilh
ISAS IUKI will always detect a rnaterial rnisstatement when it exists. Misstatem$nts ¢Jn arise from fraud or èrror arld are
considered material il, indiwdually or In the aggfegate, th8y COU￿ reasonably be expectsd to influ6n¢è the economic
derisions ol users taken on the basis of these financial ststements.
Irregularitiès, including frydud, ore instsnces of non-￿￿pI1an￿ with laws and regul8tion5. We design procedures in line
with our responsibilitr'es, outlined above. to detect matenal misstatem8nts In respect of irregularits'es, including fraud The
specific pro￿ureS for this èngagèmant and Ehe oxtgnt lo whi¢h these are capable ol detecting irragularities. including
fraud Is detailed below".
Enquiry ofmanagemènt and those tharyed with gov8mance around auual an¢J potenbal litigation and daims as
well 8$ 8¢tu81, suspe¢ted and alleged fraud,
Reviewing minutes ol meetings of thosa ch8rgad with governance.,
Assessing the extent of compliancé with th8 laws and regulabons ¢onsidered to have a diwct material effect on
the financial statements or th8 OP8rations of the company through enquiry and Inspection,
Réviewing financial siatemenl disclosures and lesbng to supporting documentation to assess compliance with
pplicab18 laws and regulabons.,
Perfoming audit work ov8r the risk of management bias and ovorr￿6 ol contfofs. induding testy'ng ol joumal
ei)tries and othèr 8diu51tnents for appropriateness, evaluating the business rationa￿ of significant transactions
¢)ut$Kle the nomial course of business revi￿￿9 accounts.ng esbrnates for indicators ol potants.al bias.
Because of Inherent limitations ol an audit. thèré Is a risk that we will not detect all irregulanti&s, Inclthjing those
leading to a matenal rnisslatement In th& financial statements or non<ompliarpce with regulation. This nsk incrgases
the MO￿ that cornpliance wth 8 18w or regulation is rernoved from the events and Iransaebon5 reflected in the finanaal
statem8nts, as we will be less likely to become aware of instanc•s of non-cornpliance. The risk Is also greater règsrding
irragula1￿"es occufflng due to traud rather than error, as fraud invo￿•$ intènth.onal concéalment, forgery. collusion,
omission or rnisrepresentation.
A further description of our rèsponsibilrtie5 B avai18bleon the Financia Reporting Council's website at."
https"Ilwww.Irc.org.UklOur-WorklAudiVAudit-and-assurancelStandards-an¢J-guidan￿slandard￿-and-gUidan￿-10r-
auditotslAuditors-r8SP0Th5ibilities-for-audiVDescnptior￿ol-a1￿itors-re¥￿n9lb1lIt￿S-for-sLK1ll.8Spx. Th￿ description lorms
part of our auditorfs reporL
U¥e olour report
This report is rnade sokly to the chantsble wmpany's members. as a body. in aco)rdants with Chapter 3 of Part 16 01
the Companies Act 2006. Our audrt work has been undertaken so that we might state to Ihe charitable company's
member5 thos8 rnatters we are reqUI￿d to state to them in an auditor's report and for no other PUTpose. To the fvllest
axt8nt p81rnitted by law. we do not a¢￿pt or assume ￿sponsIbl11ty to anyon& Olhèr than the charitable comp8ny and the
charitable ¢ompany's membe¥s as a body, for our audrt work, for this report. or br the opinions we have fotrned.
Ai& ALI
J Howard FCA (Sènior Ststutory Auditor)
For ar￿ on behalf of Azets Audit Setvices
Statutory Auditor, Ch8rterad Accountsnts
2￿ Floor, Regis House,
45 KirYJ William St,
London, EC4R 9AN
Date 2

## 

|||Unrestricted|Restricted|Total 2020|Total 2019|
|---|---|---|---|---|---|
||Note|||||
|Incoming Resources||||||
|Donations<br>8 Legacies|2,3|334,952||334,952|594,421|
|Charitable<br>activities|2|2,300,532|3,009,670|5,310,202|5,849,486|
|Investment<br>Income|2|4||4||
|Other Income|2|1,774||1 774|16,692|
|Total Incoming<br>Resources||2637,262|3009,670|5,646,932|6,460,599|
|Resources Expended||||||
|Charitable<br>activities:||||||
|Asia & China programme||45,302|13,600|58,902||
|Middle East 8 North Africa programme||16,450|1,097,674|1,114,124|1,303,391|
|European<br>Power programme||14,190|894,925|909,115|1,220,565|
|Wider Europe programme||5,442|433,975|439,417|584,546|
|Africa programme||15,508|75,558|91,066||
|Advocacy<br>& National<br>offices||212,154|493,938|706,092|739,198|
|Regrant||1,668,500||1,668 500|2,035,582|
|Total Resources Expended||1 977546|3,009670|4 987,216|5,883,282|
|Net income/(expenditure)||659716||659716|577,317|
|Other recognised<br>gains/(losses)|||||50,951|
|Net movement<br>in funds||659716||659716|628,268|
|Reconciliation<br>offunds||||||
|Total funds brought<br>forward||1 682,911||1,682,911|1,054,643|
|Total funds carried forward||2342 627||2 342627|1,682 911|








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|||||2020|2019|
|---|---|---|---|---|---|
||||Note|6||
|Cash flows from operating|activities:|||||
|Net cash provided<br>by operating<br>activities|||16|2,286,215|701,601|
|Cash flows from investing|activities:|||||
|Purchase ofassets||||2,136|4,517|
|Net cash used in investing|activities|||(2,136)|(4,517)|
|Change<br>in cash and cash|equivalents|in the year||2,284079|697,074|
|Cash and cash equivalents|at beginning|ofthe year||1,675,887|978,803|
|Cash and cash equivalents|at end of|year|10|3,959,966|1,675,887|





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|||Unrestricted|Restricted|Total 2020|Total 2019|
|---|---|---|---|---|---|
|||6||||
|Donations|and legacies:|||||
|Donations|and gifts||||101,035|
|Donated goods, facilities and services (Note 3)||334952||334952|493,386|
|||334952||334952|594,421|
|Charitable|Activities:|||||
|Grants||2,300,532|3,009,670|5,310202|5,849,486|
|||2,300 532|3,009670|5310,202|5,849,486|
|Investment|Income:|||||
|Interest Income||||||
|Other Income||1,774||1 774|16,692|
|||1 774||1 774|16692|
|Total Income||2,637262|3,009,670|5,646,932|6,460,599|



## 

||Total 2020|Total 2019|
|---|---|---|
||6||
|Asia 8 China programme|||
|Middle East 8 North Africa programme|76,350|87,500|
|European<br>Power programme|5,500|26,219|
|Wider Europe programme|18,142|60,749|
|Advocacy<br>& National<br>Offices|234,960|318,918|
|Total Gifts in Kind|334952|493,386|





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|||||Direct Staff|Activity|Support|||
|---|---|---|---|---|---|---|---|---|
|||||Costs|Costs|Costs|Total 2020|Tota<br>I 2019|
|||||6|||||
|Asia 8 China|programme||||46,793|12,109|58,902||
|Middle East|& North Africa programme|||455,187|344,264|314,673|1,114,124|1,303,391|
|European<br>Power programme||||114,661|487,709|306,745|909,115|1,220,565|
|Wider Europe programme||||66,541|181,771|191,105|439,417|584,546|
|Africa programme|||||37,307|53,759|91,066||
|Advocacy 8|National|Offices||285,420|255,019|165,653|706,092|739,198|
|Regrant|||||1,668500||1 668500|2 035582|
|||||921,809|3,021,363|1,044,044|4,987,216|5,883,282|
||||||||Total 2020|Total 2019|
|Support Costs|||||||||
|Staff Costs|||||||581,985|576,658|
|Office Rental|||||||224,637|199,459|
|Communications|||||||27,733|39,036|
|Support Activity costs||||||||15,122|
|Professional|costs||||||52,327|68,846|
|ITcosts|||||||23,991|57,909|
|Depreciation,|equipment||hire 8 asset|impairment|||6,807|8,098|
|Bank charges|& loss on exchange||||||123,376|124,421|
|Governance|costs||||||2,528||
|Loss on sale|ofassets||||||660||
||||||||1,044,044|1,089,549|



## 

||||Total 2020|Total 2019|
|---|---|---|---|---|
|Auditors<br>remuneration||for the charity:|||
|Audit fees for the audit||of charity|11,447|11,150|
|Under provision|ofprior years' audit fee|||(1,502)|
|Other services|||7,903|10,095|
||||19,350|19,743|
|Depreciation|||5,803|7,118|
|Operating<br>lease|office rentals||169,442|141,142|





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|Staff Costs||||Total 2020|Total 2019|
|---|---|---|---|---|---|
|Salaries 8 wages||||1,248,913|1,214,343|
|Social security costs,|incl. pension|arrangements|for non-UK staff|159,786|149,644|
|Pension costs (defined|contribution|scheme for|UK staff)|61,354|61,972|
|Redundancy<br>costs|||||(20,133)|
|Other employee<br>benefits||||33741|31,690|
|||||1,503,794|1,437,516|



|Band|2020|2019|
|---|---|---|
|670,000 to 679,999|||
|680,000 to 689,999|||
|690,000to699,999|||
|6100,000 to 6109,999|||
|6110,000to6119,999|||
|6120,000to6129,999|||
|6140,000 to 6149,999|||
|6170,000 to 6179,999|||
|6180,000 to 6189,999|||



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|Charity|Computer<br>Equipment|Office<br>Equipment|Fixtures,<br>fittings<br>&<br>equipment|Fixtures,<br>fittings<br>&<br>equipment|Total|
|---|---|---|---|---|---|
|Costs||||||
|At 1stJanuary 2020|61,828|50,910|22,570||135,308|
|Additions|2,136||||2,136|
|Disposais|1 131||||1 131|
|At 31st December 2020|62,833|50910|22,570||136,313|
|Depreciation||||||
|At 1stJanuary 2020|54,847|50,910|22,570||128,327|
|Charge for the year|5,803||||5,803|
|Disposais|471||||471|
|At 31stDecember 2020|60 179|50910|22,570||133659|
|Net Book Value||||||
|At 31stDecember 2020|2 654||||2 654|
|At 31stDecember 2019|6,981||||6,981|



## 

||2020|2019|
|---|---|---|
|Trade Debtors|32,073|121,653|
|Accrued Income|144,985|176,398|
|Property<br>Deposit|42,533|42,533|
|ECFR Group Debtors|175,157|47,978|
|Other Debtors||1,548|
|Prepayments|77597|63,033|
||472,345|453,143|



## 

|2020|2019|
|---|---|
|3959,966|1,675,887|
|3,959966|1,675,887|





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||||2020|2019|
|---|---|---|---|---|
|Analysis ofcreditors|||||
|ECFR Group Creditors|||80,718|58,915|
|Trade Creditors|||44,863|90,555|
|Other Tax and Social Security Costs|||1,097|43,444|
|Pension<br>Contributions|||7,949|8,434|
|Sundry Creditors|||65,183|71,858|
|Accruals|||113,722|114,628|
|Deferred Grant income|||1 778806|65,266|
||||2,092,338|453,100|
|Deferred Income|||2020|2019|
|Movement<br>in deferred|income account:||||
|Balance at 1 January|||65,266|90,408|
|Amounts<br>added<br>in current period|||1,778,806|65,266|
|Amounts<br>released to income from previous||periods|65,266|90,408|
|Balance at 31 December|||1,778 806|65,266|





|||01|||31|
|---|---|---|---|---|---|
||Restricted<br>Purpose<br>-a grant|January|||December|
|Donor|to su<br>ort|2020|Income|Ex enditure|2020|
|Bill 8 Melinda Gates<br>Foundation|Future of Development<br>Aid||68,207|(68,207)||
|Bill 8 Melinda Gates<br>Foundation|Africa Programme<br>2020-2022||40,355|(40,355)||
|Compagnia<br>di San<br>Paolo|Strategic Partnership<br>2020-<br>2021||127,500|(127,500)||
|Compagnia<br>di San<br>Paolo|Strategic Partnership<br>2020-<br>2021||92,500|(92,500)||
|Compagnia<br>di San<br>Paolo|Strategic Partnership<br>2019-<br>2020||32,652|(32,652)||
|Embassy ofthe UK in<br>Moscow|Building bridges to a younger<br>Russia, via its civil socie||29,460|(29,460)||
|Enagls|Madrid core 2019/2020||25,000|(25,000)||
|Equinor|Partnership<br>2020||25,000|(25,000)||
|European<br>External<br>Action Service<br>EEAS|European<br>Sovereignty<br>Phase<br>II||30,000|(30,000)||
|Japan Bank for||||||
|International|MENA Annual<br>Support 2020||100,000|(100,000)||
|Coo eration<br>JBIC||||||
|JETRO|New Power Map||35,000|(35,000)||
|Konrad-Adenauer-<br>Stiftun<br>KAS|Al 8 autonomy<br>in warfare||28,654|(28,654)||
|Ministry of Foreign<br>Affairs Finland|Multilateralism<br>project||25,000|(25,000)||
|Ministry ofForeign<br>Affairs Denmark|Core support<br>MENA 2019-<br>2022||198,174|(198,174)||
|Ministry of Foreign<br>Affairs Norwa|MENA Support 2018-2020||272,438|(272,438)||
|Ministry ofForeign<br>Affairs Norwa|Africa 2020 with NUPI||35,203|(35,203)||
|Ministry of Foreign<br>Affairs Sweden|EP Programme<br>Support 2020||104,367|(104,367)||
|Ministry<br>of Foreign<br>Affairs Sweden|WEP Core Support 2020||85,391|(85,391)||
|Ministry of Foreign<br>Affairs Sweden|MENA Programme<br>Support<br>2020||47,439|(47,439)||
|Open Society<br>Foundations<br>OSF|UNLOCK 2020||811,731|(811,731)||
|Open Society<br>Foundations<br>OSF|UNLOCK Phase<br>III||51,967|(51,967)||
|Rockefeller Brothers<br>Fund|Iran taskforce 2019-2021||34,470|(34,470)||
|Swedish<br>International<br>Develo<br>ment A enc|MENA Core Support 2020||332,076|(332,076)||
|Swedish<br>International<br>Develo<br>ment A enc|WEP Core Support 2020||294,125|(294,125)||
|Various below 6<br>20.000each|Advocacy 8 National<br>Offices||33,785|(33,785)||
|Various below 6<br>20.000each|Asia 8 China programme||13,600|(13,600)||
|Various below C<br>20.000each|European<br>Power programme||15,000|(15,000)||
|Various below C<br>20.000each|Middle East & North Africa<br>ro ramme||20,576|(20,576)||
||||3,009,670|(3,009,670)||





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|||01|||31|
|---|---|---|---|---|---|
||Restricted Purpose<br>-a grant|January|||December|
|Donor|to su<br>ort|2019|Income|Ex enditure|2019|
|Bill 8 Melinda Gates<br>Foundation|Future of Development<br>Aid||123,831|(123,831)||
|Compagnia<br>di San<br>Paolo|Strategic Partnership<br>2019-<br>2020||51,778|(51,778)||
|Compagnia<br>di San<br>Paolo|Strategic Partnership<br>2020-<br>2020||243,261|(243,261)||
|Embassy ofthe UK in<br>Moscow|Building bridges to a younger<br>Russia, via its civil socie||36,273|(36,273)||
|Fondation<br>Calouste<br>Gulbenkian|Strategic Partnership<br>Pilot<br>Phase 2020||104,264|(104,264)||
|Foreign and||||||
|Commonwealth<br>Office<br>United<br>Kingdom|Western<br>Balkans 2019/2020||66,856|(66,856)||
|FCO||||||
|Japan Bank for<br>International<br>Coo eration<br>JBIC|MENA Annual<br>Support on Iran<br>& Others||101,180|(101,180)||
|Konrad-Adenauer-<br>Stiftun<br>KAS|Al 8 autonomy<br>in warfare||27,216|(27,216)||
|Microsoft|Trust and Security<br>in<br>C bers ace||28,982|(28,982)||
|Ministry of Foreign<br>Affairs Denmark|Core support<br>for MENA 2019-<br>2022||101,310|101,310||
|Ministry of Foreign<br>Affairs Netherlands|Europe and its Neighbours<br>Tender "PROGRESS"||73,015|(73,015)||
|Ministry of Foreign<br>Affairs Norwa|MENA Support 2019-2020||475,589|(475,589)||
|Ministry of Foreign<br>Affairs Sweden|Multiprogramme<br>support<br>MENA, WEP, EP||812,417|(812,417)||
|Open Society<br>Foundations<br>OSF|UNLOCK Phase<br>I||448,420|(448,420)||
|Open Society<br>Foundations<br>OSF|UNLOCK Phase<br>II||697,782|(697,782)||
|Open Society<br>Foundations<br>OSF|UNLOCK Phase<br>lll||69,605|(69,605)||
|Rockefeller Brothers<br>Fund|Iran taskforce 2020 —2021||44,015|(44,015)||
|Various below 6<br>20.000each|Middle East 8 North Africa<br>ro ramme||48,606|(48,606)||
|Various below C<br>20.000each|Wider Europe programme||13,901|(13,901)||
|Various below 6<br>20.000each|Advocacy<br>& National<br>Offices||14,384|(14,384)||
||||3,582,685|(3,582,685)||





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|||||2020|2019|
|---|---|---|---|---|---|
|Net income/(expenditure)<br>for the|reporting||period|659,716|577,317|
|Adjustments<br>for:||||||
|Depreciation||||5,803|7,118|
|Loss/(profit)<br>on sale offixed assets||||660|498|
|(Increase)/Decrease<br>in debtors||||(19,202)|403,913|
|Increase/(Decrease)<br>in creditors||||1,639,238|(362,755)|
|Foreign Currency<br>Translation|reserve||||75,240|
|FXmovement<br>on fixed assets|||||(441)|
|FX Loss/ (Profit) on sale of investment|||||711|
|||||2,286,215|701,601|
|7)<br>Operating<br>lease commitments||||||
|||||2020|2019|
|The charity had total commitments||under||||
|an operating<br>lease as follows:||||||
|Not later than one year||||142,257|9,447|
|Later than one and not later than|five years|||11,855||
|Later than five years||||||



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