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2020-12-31-accounts

Partner Africa (A company limited by guarantee)

Report and Financial Statements for the financial year ended 31 December 2020

COMPANY NUMBER: 7770647 CHARITY NUMBER: 1144815

PARTNER AFRICA (A company limited by guarantee)

REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

CONTENTS PAGE
TRUSTEES AND OTHER INFORMATION 2
REPORT OF THE TRUSTEES 3 – 9
TRUSTEES’ RESPONSIBILITIES STATEMENT 10
INDEPENDENT AUDITORS’ REPORT 11 – 13
STATEMENT OF FINANCIAL ACTIVITIES 14
BALANCE SHEET 15
STATEMENT OF CASH FLOWS 16
NOTES TO THE FINANCIAL STATEMENTS 17 – 28

PARTNER AFRICA (A company limited by guarantee) TRUSTEES AND OTHER INFORMATION

TRUSTEES Mr. Martin Ryan (Chair)
Mr. David Governey
Ms. Catherine Fitzgibbon
Ms. Winifred Johansen (appointed 10thAugust 2020)
SECRETARY Mr. Malachy Cardiff (resigned 10thApril 2020)
Mr. Peter McDevitt (appointed 10thApril 2020)
REGISTERED OFFICE Second Floor
Westgate House
Dickens Court
Hills Lane
Shrewsbury
SY1 1QU
COMPANY NUMBER 7770647
CHARITY NUMBER CHY 1144815
AUDITORS Deloitte Ireland LLP
Chartered Accountants and Statutory Audit Firm
Deloitte & Touche House
Earlsfort Terrace
Dublin 2
Ireland
BANKERS Barclays Bank Plc
P.O Box 89
Shrewsbury
Shropshire
SY1 2WQ
SOLICITORS Withers LLP
16 Old Bailey
London
EC4M TEG

2

PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

The Trustees, who are also directors of the charitable company for the purposes of the Companies Act, present their annual report (including audited financial statements) of Partner Africa (the company) for the year ended 31 December 2020. The Trustees confirm that the Annual Report and financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP 2019).

STRUCTURE, GOVERNANCE AND MANAGEMENT

a. CONSTITUTION

Partner Africa is a company limited by guarantee, not having a share capital, incorporated under the Companies Act 1985 (registered number 7770647). It was incorporated on 12[th ] September 2011. The company is registered as a charity with the Charity Commission for England and Wales (Charity Number 1144815).

Partner Africa’s purpose is to improve the working conditions and livelihoods of workers and producers in African supply chains. Through its ethical auditing and responsible business advisory services, it positively engages with clients to identify, address and report on the salient environmental, social and governance (ESG) risks in their organisation and supply chains and adopt responsible business practices. Partner Africa’s work is guided by the United Nations Guiding Principles on Business and Human Rights (UNGPs) and other international best practice standards. It works with companies, communities and governments to achieve its mission. Partner Africa has expertise in a number of industries, including agribusiness, apparel, manufacturing, services and extractives.

Partner Africa does not have a shareholding structure, and its sole member is Gorta (trading as Self Help Africa), a company limited by guarantee, incorporated in Ireland (company number 105601) with registered offices at Kingsbridge House, 17-22 Parkgate Street, Dublin 8, and registered as a charity (charity number CHY6663).

b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES

The board is empowered to appoint new trustees to its ranks. As the sole member, Gorta Self Help Africa must ratify appointments.

c. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES

There is a Trustee Induction Policy and Programme in place to enable all Trustees to familiarise themselves with their duties and responsibilities, the Partner Africa governance framework and Partner Africa’s work overseas. Any relevant training requirements of trustees are facilitated by the organisation.

d. ORGANISATIONAL STRUCTURE AND DECISION MAKING

Partner Africa has registered branches in England, Kenya and South Africa. Its ethical audit hub is based in Cape Town, its responsible business advisory hub is based in London, England and its operational hub in Nairobi, Kenya.

The trustees have oversight of the company’s activities and financial position. The management team deals with the day-to-day operation of the company.

e. RISK MANAGEMENT

The trustees have responsibility for, and are aware of the risks associated with, the operating activities of Partner Africa. They are confident that adequate systems of internal control are in place and that these controls provide reasonable assurance against such risks.

3

PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

COVID-19

The COVID-19 pandemic, which has led to a worldwide slowdown in economic activity, had a significant impact on the organisation’s operations with effect from mid-March 2020. Management set to work immediately to assess the various operational and financial scenarios that could arise and drew up plans to mitigate the potential negative impact. Revised budgets and cash flow projections were prepared with a view to reducing costs to the minimum and investigating potential alternative income streams. Through consolidating its team and operations costs Partner Africa reduced its overhead budget in 2020 by approximately 40%.

Management engaged with clients to develop a new virtual ethical assessment tool, virtual training programmes and also identified new donor opportunities for its work. The Board are deeply appreciative of the sacrifices made by staff at this difficult time. Discussions with suppliers, service providers and landlords also led to cost savings – the Board thanks those whose support for our work in this area has helped us maintain our ability to sustain our work in Africa. We are confident that the organisation will come through the crisis intact and in a position to continue its valuable work.

OBJECTIVES AND ACTIVITIES

OBJECTIVES

Partner Africa is a pioneer in the field of ethical and socially responsible business practice that delivers high quality and innovative ethical audit and responsible business advisory services to clients.

Partner Africa is driven by a social mission to improve the livelihoods of workers and producers, while assisting access to international supply chains and bridging the skills and standards gap between Africa and the international community.

ACTIVITIES

1. Supporting clients identify the salient labour issues in their supply chains

• Ethical Audits & Assessments

Partner Africa focuses its work on conducting high quality, worker- centred ethical audits in order to assess the working conditions in factories and farms throughout Africa and identify the salient labour issues for its clients.

All ethical audits involve assessing suppliers against the ILO conventions: - child labour will not be used; freedom of association; no excessive working hours, no discrimination, employment is freely chosen, workers are paid a minimum/living wage; working condition are safe & hygienic, regular employment is provided and no harsh or inhumane treatment is allowed

Partner Africa also undertakes Small Producer Assessments to assess the ethical standards of small producers feeding into export supply chains. Applying codes of conduct to informal and often family run businesses is a complex process. We seek to establish the characteristics, needs and priorities of small producers and their workers, and outline recommendations to maintain standards required as well as to help improve livelihoods.

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PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

2. Addressing the root causes through providing training and advisory services to clients

Partner Africa takes a ‘positive engagement’ approach to its work and is committed to forming partnerships with its clients to address the root causes of the salient labour issues identified during ethical audit. With our Pan-Africa reach and experienced local teams in 23 countries we can deliver a wide range of high-end advisory services to international brands and retailers, as well as governments and NGOs.

Our advisory services allow clients to draw upon our knowledge of local capabilities, labour codes and culture to develop programmes that enable them to prevent and remediate non-compliances identified in their operations and supply chain. Our advisory services include: -

• In-depth research

Partner Africa carries out long term, in depth research into targeted issues within supply chains across Africa. Research themes include land rights, forced labour and child labour. The research findings are used to help companies develop an in-depth understanding of issues in their supply chains and tailor policies and systems to support global efforts to eradicate the worst forms of child labour, forced labour and modern slavery and land grabbing. Partner Africa has also carried out baseline and end line studies to determine the impact of potential or current sourcing strategies within a supply chain or community.

• Training and supplier forums

To help companies improve their understanding of responsible business, prevent and remediate noncompliances Partner Africa offers a range of training programmes for suppliers in Africa that are part of international supply chains. In 2020 this included hosting a series of workshops for AIM-Progress membersa network of fast-moving consumer goods and the Ethical Trade Initiative (ETI). The focus of the training is for suppliers to exchange best practice around the prevention and remediation of non- compliance issues and develop practical solutions to their issues.

• Supporting companies develop responsible business programmes and policies

As Partner Africa builds its expertise on responsible business in Africa it increasingly supports companies develop policies and programmes that enable them to be responsible and be compliant with the UNGP’s on Business and Human Rights

• Impact assessments and Reporting

Partner Africa is committed to supporting clients assess the impact of their responsible business programmes and preparing high quality and robust reports. Partner Africa’s team have experience of preparing and reviewing modern slavery reports, ethical trade initiative (ETI) reports, UN Global Compact reports and the organisation of stakeholder panels.

3. Trade development projects

In 2020 Partner Africa continued to engage in some trade development programmes that aim to improve access to markets for smallholders. As part of its new 5 year business plan it will however focus less in this area in the future and other members of the Gorta Group will champion this work.

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PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENTS IN 2020

In spite of the challenges caused by Covid-19 Partner Africa had a positive year and managed to deliver on most of its annual objectives including:

1. Strategy and Planning

In 2020 Partner Africa developed a new strategy paper and a 5- year business plan that outlined its future vision and client services. Partner Africa has reframed its programme around the UN Guiding Principles of Business and Human Rights. Future work will focus on improving the working conditions and livelihoods of vulnerable workers and producers in Africa engaged in international supply chains through supporting clients and their suppliers adopt the UN Guiding Principles of Business and Human Rights.

Through this refocusing Partner Africa believes that its services are aligned with best practice models of responsible business and is better attuned to meeting the needs of its clients.

2. Client Services

2.1 Ethical audits

During 2020 we have conducted 680 audits throughout Africa, most of our clients were members of AIM - Progress – an industry initiative of multi-national fast moving consumer goods companies that work together to promote responsible business. We also worked extensively with suppliers in South Africa that are members of the Wine Initiative for Ethical Trade (WIETA).

The number of audits was less than anticipated as the arrival of COVID-19 meant that Partner Africa could not visit farms and factories. In order to continue to be able to monitor working conditions Partner Africa developed a virtual assessment tool that was internationally approved and provided an opportunity to continue audits and ensuring we monitor risks of our customer suppliers.

The salient issues identified during our social audits and assessments included: - low wage rates, poor health and safety, lack of contracts.

2.2 Responsible Business Advisory services

In 2020 Partner Africa experienced a rapid increase in the demand for its advisory services and won a total of 21 new projects, which included winning two grants from FCDO. A summary of our Advisory portfolio is:

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PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

Service Sector Theme
Commitment Policy Fast Moving
Consumer Goods		 Business and Human
Rights
Standard Agri-business Honey Value Chain
project in Uganda
Identification
of issues		 Human Rights
Impact Assessment		 Fast Moving
Consumer Goods		 Human Rights Risks
General
assessments		 Agri-business Madagascar Vanilla
Assessments
Deep dive research Agri-business Child Labour
Retail Covid19 Research
Report
Impact of Covid
Addressing
the root
causes		 Round tables Fast Moving
Consumer Goods		 Salient labour issues
in Africa supply
chains
Training Fast Moving
Consumer Goods		 Responsible
Sourcing
Extractives Training of suppliers
on responsible
sourcing
Manuals/Guides Fast Moving
Consumer Goods		 Handbooks of
Responsible
Business
Access to new
markets		 Agriculture Establishing a
Moringa supply
chain in The Gambia
Management of
social funds		 Agriculture and
Fast-Moving
Consumer Goods		 Improving
livelihoods of local
communities

2.3 Trade Development

Over the last 12 months Partner Africa continued to work on trade development in close coordination with other member of the Gorta Group and local partners. It managed a total of three contracts in East Africa on behalf of Trade Mark East Africa.

3. Finance and Operations

In spite of Covid-19 in 2020 Partner Africa generated income of £1,177,894. £717,433 from audits, £215,522 from advisory services, £214,734 from Trade Development Projects and £30,205 from other income sources.

In response to the anticipated income loss due to Covid Partner Africa consolidated its overheads and reduced its monthly budgeted overhead costs by 40% from June 2020 in order to ensure the organisation minimised any loss.

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PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

FINANCIAL REVIEW

The Statement of Financial Activities for the year ended 31 December 2020, shows a net deficit of £43,754.

The net assets of the organisation as shown on the balance sheet amount to £384,118. Plans are in place to ensure that Partner Africa maintains financial sustainability, which will enable it to continue to improve the quality of its work, expand its range of services and broaden its client base to ensure the long-term sustainability of the enterprise.

FUTURE DEVELOPMENTS

The trustees, through the management team aim to continue to maintain, develop the business of Partner Africa in 2020 with the ambition of being the leading responsible business organisation in Africa that significantly improves the livelihoods of vulnerable workers and producers.

To achieve this, in 2020 the organisation will focus on the following: -

Finances: In 2020 Partner Africa is confident of maintaining its financial stability, however the impact of the current Covid-19 pandemics makes it difficult to predict exact figures.

Clients and services: Partner Africa will aim to expand and diversify its client base in 2020. It intends to expand the sectors that it conducts ethical audits in- including responsible fishing and mining; increase the number of advisory clients and apply for more funding for programmes that promote the adoption of the UN Guiding Principles of Business and Human Rights in Africa.

Systems, Tools and Industry: PA will continue to automate services through Salesforce, and maintain membership to key associations such as APSCA, The Ethical Trade Initiative; The Social Labour Convergence and the Floriculture Sustainability Initiative in 2020.

HEALTH AND SAFETY

Partner Africa is committed to managing and conducting its work activities in such a way as to ensure - so far as is reasonably practicable - the safety, health and welfare at work of its employees and volunteers. Partner Africa management continuously monitors compliance in line with legislative requirements.

PUBLIC BENEFIT

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing aims and objectives and planning future activities.

GOING CONCERN

The organisation’s forecasts and projections, taking account of reasonable possible changes in performance, including the impact of COVID-19, show that the organisation will be able to operate within the level of its current cash and investment resources. The Board have a reasonable expectation that the organisation has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. Further details regarding the adoption of the going concern basis is included in Note 2b.

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PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

POLITICAL DONATIONS

No political donations were made during the year.

POST BALANCE SHEET EVENTS

No events have occurred since the balance sheet date that require adjustment or disclosure.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors’ report is approved has confirmed that:

(2) The director has taken all the steps that he/she ought to have taken as a director to make himself/herself aware of any information needed by the company’s auditors about preparing their report and to establish that the company’s auditors are aware of the information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

In preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by section 415A of the Companies Act 2006.

AUDITORS

Deloitte were appointed as the company’s auditor for the financial year. A resolution for the re- appointment of Deloitte will be proposed at the forthcoming AGM.

This report was approved by the Trustees and signed on their behalf, by:

Mr. David Governey - Trustee Date: 23[rd] July 2021

9

PARTNER AFRICA (A company limited by guarantee)

TRUSTEES’ RESPONSIBILITIES STATEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

The trustees (who are also directors of Partner Africa for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the net income or expenditure of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Deloitte Ireland LLP Chartered Accountants & Statutory Audit Firm

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PARTNER AFRICA

Report on the audit of the financial statements

Opinion

In our opinion the financial statements of Partner Africa (the ‘charitable company’):

We have audited the financial statements which comprise:

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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 trustees responsibilities with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Reports and Financial Statements for the financial year ended 31 December 2020, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Reports and Financial Statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PARTNER AFRICA

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK), the auditor exercises professional judgment and maintains professional scepticism throughout the audit. The auditor also:

The auditor communicates with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that the auditor identifies during the audit.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the charitable company’s industry and its control environment, and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management, internal audit and compliance section about their own identification and assessment of the risks of irregularities in this charitable company.

We obtained an understanding of the legal and regulatory frameworks that the charitable company operates in, and identified the key laws and regulations that:

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PARTNER AFRICA

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our specific procedures performed to address it are described below:

Completeness, accuracy and occurrence of income:

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the report of trustees.

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Marguarita Martin (Senior statutory auditor)

For and on behalf of Deloitte Ireland LLP

Statutory Auditor

Deloitte & Touche House, 29 Earlsfort Terrace, Dublin 2, D02 AY28, Republic of Ireland

Date: 27 July 2021

13

PARTNER AFRICA (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

Notes
INCOME
3
Total
EXPENDITURE
ON
Charitable activities
4
Total
6
Net expenditure
7
Taxation
9
Net movement in
funds
15
RECONCILIATION
OF FUNDS
Total funds brought
forward
15
Total funds
carried forward
15		 Restricted
funds
2020
£
-
-
-
-
-
-
-
-
-		 Unrestricted
funds
2020
£
1,177,894
1,177,894
1,220,400
1,220,400
(42,506)
(1,248)
(43,754)
427,872
384,118		 Total
funds
2020
£
1,177,894
1,177,894
1,220,400
1,220,400
(42,506)
(1,248)
(43,754)
427,872
384,118		 Restricted
funds
2019
£
-
-
-
-
-
-
-
-
-		 Unrestricted
funds
2019
£
(Restated)
1,363,689
1,363,689
1,291,976
1,291,976
71,713
(36,527)
35,186
392,686
427,872		 Total
funds
2019
£
(Restated)
1,363,689
1,363,689
1,291,976
1,291,976
71,713
(36,527)
35,186
392,686
427,872

There are no other recognised gains or losses other than those listed above and the net income for the financial year. All income and expenditure derives from continuing activities.

14

PARTNER AFRICA (A company limited by guarantee)

BALANCE SHEET AS AT 31 DECEMBER 2020

Notes
FIXED ASSETS
Tangible fixed assets
10
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
CREDITORS:Amounts falling due within one year
12
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS:amounts falling due after more than
one year
13
NET ASSETS
FUNDS OF THE CHARITY
Unrestricted funds
15
TOTAL FUNDS		 2020
£
25,002

324,411
639,699

964,110
(565,262)
398,848
423,850
(39,732)
384,118
384,118
384,118		 2019
£
34,574
320,913
477,994
798,907
(351,107)
447,800
482,374
(54,502)
427,872
427,872
427,872

The financial statements were approved by the Trustees on 23[rd] July 2021 and signed on their behalf, by:

________ Mr. David Governey Trustee

23[rd] July 2021

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PARTNER AFRICA (A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

Note
Cash flows from charitable activities
Net cash generated by charitable activities
16
Cash flows from investing activities
Purchase of tangible fixed assets
10
Net cash provided by investing activities
Increase in cash and cash equivalents in the
reporting year
Cash and cash equivalents at beginning of the
reporting year
Cash and cash equivalents at end of the
reporting year
Reconciliation to cash at bank and in hand
Cash and cash equivalents at end of financial year 17		 2020
£
165,942
(4,237)
(4,237)
161,705
477,994
639,699
639,699		 2019
£
35,150
(16,185)
(16,185)
18,965
459,029
477,994
477,994

16

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and the preceding year.

Basis of preparation of financial statements

Partner Africa is a company incorporated in the UK under the Companies Act 2006. The address of the registered office is Second Floor Suite, Westgate House, Dickens Court, 25 Hills Lane, Shrewsbury, Shropshire, SY1 1QU. The nature of the company’s operations and its principal activities are set out in the Report of the Trustees on pages 3 to 9.

In accordance with Section 60 of the Companies Act, 2006, the company is exempt from including the word "Limited" in its name. The company is limited by guarantee and has no share capital.

The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP 2019) “Accounting and Reporting by Charities”, in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), issued by the Financial Reporting Council and the Companies Act 2006.

The functional currency of Partner Africa is considered to be pounds sterling because that is the currency of the primary economic environment in which the company operates.

Company status

The company is a company limited by guarantee. The sole member of the company is Self Help Africa, a charitable company registered in Ireland. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

Going Concern

The organisation’s forecasts and projections, taking account of reasonable possible changes in performance, including the impact of COVID-19, show that the organisation will be able to operate within the level of its current cash and investment resources. The Board have a reasonable expectation that the organisation has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements. Further details regarding the adoption of the going concern basis is included in Note 2b.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds, which are to be used in accordance with specific restrictions imposed by donors, which have been raised by the company for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

17

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (CONTINUED)

Income

All income and endowments are included in the Statement of Financial Activities when the company is legally entitled to the income and the amount can be quantified with reasonable accuracy. Income in respect of ethical trade assignments is deferred until such time as the assignment occurs and the related expenditure is incurred.

Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold. No amounts are included in the financial statements for services donated by volunteers.

Donated services or facilities, which comprise donated services, are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Expenditure

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities, they have been allocated on a basis consistent with the use of the resources.

Support costs are those costs incurred directly in support of expenditure on the objects of the company and include project management carried out at Headquarters. Governance costs are those incurred in connection with administration of the company and compliance with constitutional and statutory requirements.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax and trade discounts.

Tangible fixed assets and depreciation

All assets costing more than £500 are capitalised.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at annual rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Motor vehicles - 25% straight line Computer Equipment - 33 1/3% straight line Furniture, fittings etc - 12 1/2% straight line

18

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

1. ACCOUNTING POLICIES (CONTINUED)

Taxation

Partner Africa is a registered charity with the UK Charities Commission. Tax provided for in the financial statements relates to the Kenyan branch of Partner Africa. The tax expense for the financial year comprises current tax. Tax is recognised in the Statement of Financial Activities.

Current Tax

Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred Tax

Deferred tax is provided using the liability method for all temporary timing differences arising between tax bases of assets and liabilities and their carrying values for financial reporting purposes. Currently enacted tax rates are used to determine deferred tax rates. Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which temporary timing differences will be utilised.

Financial instruments

Financial assets and financial liabilities are recognised when the charitable company becomes a party to the contractual provisions of the instrument. Financial liabilities are classified according to the substance of the contractual arrangements entered into.

(i) Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charitable company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charitable company, despite having retained some significant risks and rewards of ownership, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. Balances that are classified as payable or receivable within one year on initial recognition are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Operating leases

Rentals under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the period.

19

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

2a. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company’s accounting policies, which are described in note 1, the trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the accounting policies and notes to the financial statements.

The trustees do not consider there are any critical judgements or sources of estimation requiring disclosure other than the going concern assumptions which are detailed further in note 2b.

2b. GOING CONCERN

Although the organisation recorded a marginal unrestricted deficit of £44K in 2020, the trustees have implemented several measures to give themselves a reasonable expectation that the organisation has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of the financial statements. In response to the Covid-19 pandemic among the measures taken to mitigate impact on unrestricted reserves are:

In addition to these measures, the trustees have reviewed the restricted elements of its income and expenditure, in order to understand the impact of the pandemic on its operations on the ground in Africa with the least possible disruption to or suspension of the organisation’s work.

The organisation has an unrestricted reserves figure of £384,118 on hand at year end. In addition, the Gorta Group (of which Partner Africa is a member) holds reserves of €6million. The Gorta Group has committed to provide financial support to Partner Africa (should it be required) for a period of not less that twelve months from the approval of the financial statements. This gives the trustees comfort in continuing to adopt the going concern basis in preparing the annual financial statements.

20

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

3. INCOME

Income is earned from the delivery of ethical trade services and capacity building programmes in Africa as follows:

Audit Income
Advisory Income
Trade Development Projects
Other Income
Training Income		 2020
£
717,433
215,522
214,734
30,205
-
1,177,894		 (Restated)
2019
£
979,782
290,760
-
18,084
75,063
1,363,689

4. CHARITABLE ACTIVITIES

Ethical Audits
Trade Development Projects
Advisory Services
Support Costs (Note 5)		 Restricted Unrestricted
Funds
Funds
2020
2020
£
£
-
751,420
-
224,906
-
225,732
-
18,342

-
1,220,400

 Total
Funds
2020
£
751,420
224,906
225,732
18,342
1,220,400
 (Restated)
Total
Funds
2019
£
923,883
70,780
274,173
23,140
1,291,976

5. SUPPORT COSTS

Audit Fees
Legal Fees
Other Governance Costs		 Restricted Unrestricted
Funds
Funds
2020
2020
£
£
-
8,334
-
3,309
-
6,699

-
18,342

 Total
Funds
2020
£
8,334
3,309
6,699
18,342
 Total
Funds
2019
£
15,020
1,303
6,817
23,140

The basis of allocation of the support costs identified above is the percentage of time spend on each activity.

21

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

6. ANALYSIS OF EXPENDITURE BY TYPE

Staff costs
Depreciation
2020
2020
£
£
Ethical Audits
223,847
6,401
Trade Development
Projects
66,999
1,916
Advisory Services
67,245
1,923
Support Costs (Note 5)
-
-


358,091
10,240

 Other costs
2020
£
521,172
155,991
156,564
18,342

852,069
 Total
2020
£
751,420
224,906
225,732
18,342

1,220,400
 Total
2019
£
923,883
70,780
274,173
23,140

1,291,976

7. NET (EXPENDITURE)/INCOME BEFORE TAXATION

This is stated after charging:

This is stated after charging:
2020 2019
£ £
Depreciation of tangible fixed assets 10,240 11,462
Auditors' remuneration 8,335 9,543
Auditors' remuneration – other overseas auditors for branches 3,289 5,477
Pension costs 17,355 17,355

No trustees received any remuneration (2019: £Nil) or any benefits in kind (2019: £Nil).

During the year, no trustees were reimbursed for travel expenses during the year (2019 – None noted).

Auditor’s remuneration of £8,334 in 2020 consists of £5,445 for the services of Deloitte Ireland LLP, in respect of the 2020 statutory audit and £3,289 paid to PKF Kenya in relation to the 2020 audit of the Kenyan branch and £1,150 in relation to South Africa branch audit. An over-accrual of the 2019 fee of £1,549 has been netted off.

22

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

8. STAFF COSTS

Staff costs were as follows:

Wages and salaries
Social security costs
Other pension costs		 2020
£
328,115
8,152
21,824

358,091
 2019
£
332,190
816
17,355

350,361

The average monthly number of employees employed during the year was 19 (2019: 20).

During the year, one employee received remuneration between £60,000 and £70,000 (2019: £Nil). The total remuneration for key management personnel for the financial year amounted to £159,562 (2019: £87,463).

9. TAXATION

Tax charge has been provided in the accounts of Partner Africa’s Kenya Branch as follows:

Deferred tax charge 2020
£
1,248
 2019
£
36,527

The deferred tax charge and related deferred tax asset in 2020 relates to accumulated losses at the Kenyan branch of Partner Africa.

Partner Africa has been granted charitable tax exempt status by the HMRC and therefore no provision for UK corporation tax is required.

23

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

10.
TANGIBLE FIXED ASSETS
Cost:
At 1 January 2020
Additions
Disposals
Foreign exchange translation
At 31 December 2020
Depreciation:
At 1 January 2020
Charge for the year
Disposals
Foreign exchange translation
At 31 December 2020
Net book value:
At 31 December 2020
At 31 December 2019
11.
DEBTORS
Trade debtors
Other debtors
Prepayments and accrued income
Deferred tax		 Motor
Vehicles
£
25,736
-
-
(2,667)

23,069

25,736
-
-
(2,667)

23,069

-

-
 Office
Furniture &
Equipment
£
73,463
4,237
(2,028)
(5,698)

69,704

38,889
10,240
(840)
(3,587)

44,702

25,002

34,574

2020
£
236,189
5,966
21,823
60,433

324,411
 Total
£
99,199
4,237
(2,028)
(8,635)

92,773

64,625
10,240
(840)
(6,254)

67,771

25,002

34,574

2019
£
220,951
10,455
26,227
63,280

320,913

24

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

12. CREDITORS:(Amounts falling due within one year) 2020 2019
£ £
Trade creditors 58,574 43,098
Other creditors 344,962 189,109
VAT payable 1,651 9,828
Accruals and deferred income
 160,075
 109,072
565,262
 351,107
13. CREDITORS:(Amounts falling due after more than one year) 2020 2019
£ £
Amounts owed to parent undertaking (Note 20)
 39,732
 54,502
14. FINANCIAL INSTRUMENTS
The carrying value of the company’s financial assets and liabilities are summarised by category below:
2020 2019
£ £
Financial Assets
Measured at undiscounted amount receivable
•
Trade debtors
 236,189
 220,951
Financial Liabilities
Measured at undiscounted amount payable
•
Trade creditors		 58,574 43,098
•
Amounts owed to parent undertaking
 39,732
 54,502

25

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

15.
FUNDS OF THE CHARITY
(i) Reconciliation of funds:
Total unrestricted funds
Opening balance at 1 January
Net (expenditure)/income for the year
Closing balance at 31 December
(ii) Analysis of net assets between funds:
Total unrestricted funds
Tangible fixed assets
Current assets
Liabilities
(iii) Movement in funds:
Balance
01/01/2020
£
Unrestricted funds
427,872

Balance
01/01/2019
£
Unrestricted funds
392,686		 2020
2019
£
£
427,872
392,686
(43,754)
35,186


384,118
427,872


2020
2019
£
£
25,002
34,574
964,110
798,907
(604,994)
(405,609)


384,118
427,872


Income Expenditure
Balance
31/12/2020
£
£
£
1,177,894
1,221,648
384,118



(Restated)
(Restated)
Income Expenditure
Balance
31/12/2019
£
£
£
1,363,689
1,291,976
427,872

26

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

16. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH INFLOW FROM CHARITABLE ACTIVITIES


CHARITABLE ACTIVITIES
2020 2019
£ £
NET (EXPENDITURE)/INCOME FOR THE REPORTING YEAR
(as per the Statement of Financial Activities) (43,754) 35,186
Adjustments for:
Depreciation 10,240 11,462
Movement in debtors (3,498) 105,994
Movement in creditors- amounts due within one year 214,115 (100,157)
Movement in creditors- amounts due over one year (14,769) (18,987)
Foreign exchange on consolidation
 3,569
 1,652
NET CASH FLOWS FROM CHARITABLE ACTIVITIES
 165,942
 35,150
17. ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS
At 1 January Cashflows At 31 December
2020 2020 2020
£ £ £
Cash at bank and in hand
477,994

 167,705
 639,699

18. COMMITMENTS

At 31 December 2020 the company had total future minimum
operating leases as follows:
Within 1 year
Between 1 and 5 years		 commitments under non-cancellable
2020
2019
£
£
30,774
34,691
59,861
103,808


90,635
138,499

27

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020

19. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions paid by the company to the fund and amounted to £21,824 (2019: £17,355).

20. ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

The results of Partner Africa are consolidated into the financial statements of Gorta (trading as Gorta Self Help Africa). The trustees consider that Gorta is the charity’s ultimate holding company. Copies of the group financial statements of Gorta may be obtained from the charity’s registered office at Kingsbridge House, 17 – 22 Parkgate Street, Dublin 8.

During the year, Gorta Self Help Africa received a net £14,770 from commitments to Partner Africa (2019: £Nil) and transferred no funds to Partner Africa (2019: £Nil). The balance due to Gorta Self Help Africa at 31 December 2020 was £39,732 (2019: £54,502).

21. COMPARATIVES

Management fee of £138,983 charged by Partner Africa Kenya to Partner Africa was not offset in the comparative figures. The comparative figures for income and expenses were offset by £138,983 and adjusted in the financial statements. There was no impact on the financial result for the comparative figures.

22. SUBSEQUENT EVENTS

No events have occurred since the balance sheet date that require adjustment or disclosure.

28