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2021-12-31-accounts

Partner Africa

(A company limited by guarantee)

Report and Financial Statements for the financial year ended 31 December 2021

COMPANY NUMBER: 7770647 CHARITY NUMBER: 1144815

PARTNER AFRICA (A company limited by guarantee)

REPORTS AND FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

CONTENTS PAGE
TRUSTEES AND OTHER INFORMATION 2
REPORT OF THE TRUSTEES 3 – 7
TRUSTEES’ RESPONSIBILITIES STATEMENT 8
INDEPENDENT AUDITORS’ REPORT 9 – 11
STATEMENT OF FINANCIAL ACTIVITIES 12
BALANCE SHEET 13
STATEMENT OF CASH FLOWS 14
NOTES TO THE FINANCIAL STATEMENTS 15 – 28

1

PARTNER AFRICA (A company limited by guarantee)

TRUSTEES AND OTHER INFORMATION

TRUSTEES Mr. Martin Ryan (Chair) Mr. David Governey (resigned 15[th] August 2022) Ms. Catherine Fitzgibbon Ms. Winifred Johansen Dr (Ms.) Chinyere Almona (appointed 21[st] Feb 2022)

SECRETARY Mr. Peter McDevitt 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 2021

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 2021. 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.

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PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

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.

OBJECTIVES AND ACTIVITIES

a. 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.

b. 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.

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: -

4

PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

3. Trade development projects. In 2021 Partner Africa continued to engage in some trade develop programmes that aimed to improve access to markets for smallholders and traders. 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.

PARTNER AFRICA ANNUAL UPDATE 2021

a. GENERAL SUMMARY

2021 was a constructive year for Partner Africa and a period where we were able to ‘build back better’. Financially we generated an income of £2,237,278- which includes £1,090,970 from Ethical Audits; £330,305 from Advisory services and £745,722 from Trade Mark East Africa (TMEA) grants and the remaining from other income. The total profit before tax we made in 2021 was £ 19,486.

In 2021 we conducted 909 ethical audits and 14 advisory assignments. In total we estimated that through these programmes we improved the working conditions of over 131,000 + workers employed in international supply chains in Africa. We also trained and built the capacity of over 300 local suppliers to help improve social and environmental standards in farms and factories throughout Africa.

5

PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

In 2021 we also commissioned the SHA Head of Monitoring and Evaluation to carry out a review of Partner Africa in order to assess the financial, social and environmental impact that the organisation has made over the last 10 years since it was taken over by SHA. This report highlighted that Partner Africa is once again the ‘organisation of choice’ of many ethical trade mutli- stakeholder initiatives and brands operating in Africa including the Sustainability Initiative of South African (SIZA); The Ethical Trade Initiative ( ETI); AIM-Progress; Heineken and Diageo.

b. FINANCE AND OPERATIONS

Over the last year Partner Africa prioritised strengthening the robustness of its financial and operations programme of the organisation which including the introduction of a new financial accounting package; aligning policies with SHA and building the capacity of the team. Partner Africa also requested SHA’s internal audit team to undertake an internal audit, in 2021 recommendations made in the internal audit have been implemented in the organisation to ensure that Partner Africa’s operations are in line with best practice and where ever feasible aligned with the GG/SHA.

c. PLANS FOR 2022

Over the next 12 months Partner Africa plans to continue to grow the core parts of its business i.e., ethical audits and responsible business advisory. In addition, it will aim to expand the training services that it provides and identify new projects in partnership with its clients which focus on addressing the worst forms of exploitation in supply chains in Africa.

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.

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.

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PARTNER AFRICA (A company limited by guarantee)

ANNUAL REPORT OF THE TRUSTEES FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

DISCLOSURE OF INFORMATION TO AUDITORS

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

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 Ireland LLP were appointed as the company’s auditor for the financial year. A resolution for the reappointment of Deloitte Ireland LLP will be proposed at the forthcoming AGM.

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

Mr. Martin Ryan - Trustee

Date: 16 September 2022

7

PARTNER AFRICA (A company limited by guarantee)

TRUSTEES’ RESPONSIBILITIES STATEMENT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

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.

8

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’):

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 2021, 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.

Continued on next page/

9

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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.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities.This description forms part of our auditor’s report.

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 and internal audit 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:

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.

Continued on next page/

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PARTNER AFRICA

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

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 charitable 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.

Heather Doolin (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

22 September 2022

11

PARTNER AFRICA (A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

Notes
INCOME
3
Total
EXPENDITURE ON
Charitable activities
4
Total
6
Net Income
(expenditure)
7
Taxation
9
Net movement in
funds
15
RECONCILIATION
OF FUNDS
Total funds brought
forward
15
Total funds carried
forward
15		 Restricted
funds
2021
£
745,722
745,722
745,722
745,722
-
-
-
-
-		 Unrestricted
funds
2021
£
1,491,556
1,491,556
1,472,070
1,472,070
19,486
(9,599)
9,887
384,118
394,005		 Total
funds
2021
£
2,237,278
2,237,278
2,217,792
2,217,792
19,486
(9,599)
9,887
384,118
394,005		 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

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.

12

PARTNER AFRICA (A company limited by guarantee)

BALANCE SHEET AS AT 31 DECEMBER 2021

Notes
FIXED ASSETS
Tangible fixed assets
10
CURRENT ASSETS
Debtors
11(a)
Cash at bank and in hand
11(b)
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		 2021
£
22,383

213,638
775,959

989,597
(617,975)

371,622

487,143
-

394,005

394,005

394,005
 2020
£
25,002

324,411
639,699

964,110
(565,262)

398,848

423,850
(39,732)

384,118

384,118

384,118

16th September 2022 The financial statements were approved by the Trustees on …………..…………………. and signed on their behalf, by:

Mr. Martin Ryan Trustee

13

PARTNER AFRICA (A company limited by guarantee)

STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

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		 2021
£
143,057
(6,797)

(6,797)

136,260

639,699

775,959

775,959
 2020
£
165,942
(4,237)

(4,237)

161,705

477,994

639,699

639,699

14

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

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.

15

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES (CONTINUED)

Fund accounting (Continued)

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.

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.

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PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES (CONTINUED)

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

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.

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PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES (CONTINUED)

Financial instruments (Continued)

(i) Financial assets and liabilities (Continued)

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.

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PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

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

The organisation recorded a marginal unrestricted surplus of £9.8K in 2021, the trustees have 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.

The organisation has an unrestricted reserves figure of £394,005 on hand at year end. 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.

19

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

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		 2021
£
1,090,970
330,306
769,376
46,626

2,237,278
 2020
£
717,433
215,522
214,734
30,205
1,177,894

Classification of restricted funding has been introduced in 2021.

4. CHARITABLE ACTIVITIES

Ethical Audits
Trade Development Projects
Advisory Services
Support Costs (Note 5)
5.
SUPPORT COSTS
Audit Fees
Legal Fees
Other Governance Costs		 Restricted
Unrestricted
Funds
Funds
2021
2021
£
£
-
1,096,412
-
773,214
-
331,954
-
16,212

-
2,217,792


Restricted
Unrestricted
Funds
Funds
2021
2021
£
£
-
14,823
-
853
-
536

-
16,212

 Total
Funds
2021
£
1,096,412
773,214
331,954
16,212

2,217,792

Total
Funds
2021
£
14,823
853
536

16,212
 Total
Funds
2020
£
751,420
224,906
225,732
18,342

1,220,400
Total
Funds
2020
£
8,334
3,309
6,699

18,342

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

20

(A company limited by guarantee)

PARTNER AFRICA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

6. ANALYSIS OF EXPENDITURE BY TYPE

Staff costs
Depreciation
Other costs
2021
2021
2021
£
£
£
Ethical Audits
223,139
4,182
869,091
Trade Development
Projects
157,363
2,949
612,902
Advisory Services
67,558
1,266
263,130
Support Costs (Note 5)
-
-
16,212



448,060
8,397
1,761,335


 Total
2021
£
1,096,412
773,214
331,954
16,212

2,217,792
 Total
2020
£
751,420
224,906
225,732
18,342
1,220,400

7. NET INCOME /(EXPENDITURE) BEFORE TAXATION

This is stated after charging:

This is stated after charging:
2021 2020
£ £
Depreciation of tangible fixed assets 8,797 10,240
Auditors' remuneration 9,302 8,335
Auditors' remuneration – other overseas auditors for branches 5,521 3,289
Pension costs 31,334 17,355

No trustees received any remuneration (2020: £Nil) or any benefits in kind (2020: £Nil).

During the year, £230 was reimbursed to trustees for travel expenses during the year (2020 – None noted).

Auditor’s remuneration of £14,823 in 2021 consists of £9,302 for the services of Deloitte Ireland LLP, in respect of the 2021 statutory audit and £3,130 paid to PKF Kenya in relation to the 2021 audit of the Kenyan branch and £2,391 in relation to South Africa branch audit.

21

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

8. STAFF COSTS

Staff costs were as follows:

Wages and salaries
Social security costs
Other pension costs		 2021
£
395,565
21,161
31,334
448,060		 2020
£
328,115
8,152
21,824

358,091

The average monthly number of employees employed during the year was 20 (2020: 19).

During the year, two employee received remuneration between £60,000 and £70,000 (2020: One).

The total remuneration for key management personnel for the financial year amounted to £228,207 (2020: £159,562).

9. TAXATION

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

Current tax charge 2021
£
9,599		 2020
£
1,248

The current tax charge and related deferred tax asset in 2021 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.

22

PARTNER AFRICA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

10. TANGIBLE FIXED ASSETS

Cost:
At 1 January 2021
Additions
Disposals
Foreign exchange translation
At 31 December 2021
Depreciation:
At 1 January 2021
Charge for the year
Disposals
Foreign exchange translation
At 31 December 2021
Net book value:
At 31 December 2021
At 31 December 2020
11 (a). DEBTORS
Trade debtors
Other debtors
Prepayments and accrued income
Deferred tax		 Office
Motor
Furniture &
Vehicles
Equipment
£
£
23,069
69,704
-
6,797
(6,462)
(5,275)
(616)
(1,382)


15,991
69,844


23,069
44,702
-
8,797
(6,462)
(5,115)
(616)
(923)


15,991
47,461


-
22,383


-
25,002


2021
£
124,470
145
22,934
66,089
213,638		 Total
£
92,773
6,797
(11,737)
(1,998)

85,835

67,771
8,797
(11,577)
(1,539)

63,452

22,383

25,002

2020
£
236,189
5,966
21,823
60,433

324,411

23

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

11 (b). CASH AND CASH EQUIVALENTS
2021
£
Cash at bank and in hand
775,959

For the purpose of statements of cash flows, the year end cash and cash equivalents
Comprise the following:
Cash at bank and in hand
775,959
Less: restricted bank balances
(146,616)
629,343
 2020
£
639,699

639,699
(232,432)

407,267

Restricted bank balances are funds received for the designated projects thus the amounts are not available for the normal operation of the company.

12.
CREDITORS:(Amounts falling due within one year)
Trade creditors
Other creditors
VAT payable
Accruals and deferred income
Deferred income on TMEA Grant
Due to parent company		 2021
£
56,992
100,333
193
220,703
146,616
93,138
617,975
 2020
£
58,574
112,530
1,651
160,075
232,432
-

565,262

The amounts due to parent company is interest fee and repayable on demand.

24

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

13. CREDITORS:(Amounts falling due after more than one year) 2021 2020
£ £
Amounts owed to parent undertaking (Note 20)
 -
 39,732
14. FINANCIAL INSTRUMENTS
The carrying value of the company’s financial assets and liabilities are summarised by category below:
2021 2020
£ £
Financial Assets
Measured at undiscounted amount receivable
•
Trade debtors
 213,638
 236,189
Financial Liabilities
Measured at undiscounted amount payable
•
Trade creditors		 56,992 58,574
•
Amounts owed to parent undertaking
 93,138
 39,732

25

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

15. FUNDS OF THE CHARITY

(i) Reconciliation of funds:

Total unrestricted funds

Opening balance at 1 January
Net income /(expenditure) for the year
Closing balance at 31 December		 2021
£
384,118
9,887
394,005

 2020
£
427,872
(43,754)

384,118

ii) Analysis of net assets between funds:

Restricted Unrestricted Total Total
Funds Funds Funds Funds
2021 2021 2021 2020
£ £ £ £
Tangible fixed assets - 22,383 22,383 25,002
Current assets 146,616 842,980 989,596 964,110
Trade and other creditors - (471,358) (471,358) (372,562)
Deferred income on TMEA Grant (146,616) - (146,616) (232,432)
___ __ ___ ___
-
 394,005
 394,005
 384,118
(iii) Movement in funds:
Balance Income Expenditure Balance
01/01/2021 31/12/2021
£ £ £ £
Unrestricted funds 384,118 1,491,556 1,481,669 394,005
Restricted funds - 745,722 745,722 -
__ ___ ___ ___
384,118 2,237,278 2,227,391 394,005
Balance Income Expenditure Balance
01/01/2020 31/12/2020
£ £ £ £
Unrestricted funds 427,872 963,160 1,006,914 384,118
Restricted funds - 214,734 214,734 -
____ ___ ___ __
427,872 1,177,894 1,221,648 384,118
26

PARTNER AFRICA

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

16. RECONCILIATION OF NET INCOME /(EXPENDITURE) TO NET CASH INFLOW FROM RECONCILIATION OF NET INCOME /(EXPENDITURE) TO NET CASH INFLOW FROM RECONCILIATION OF NET INCOME /(EXPENDITURE) TO NET CASH INFLOW FROM CHARITABLE
ACTIVITIES
2021 2020
£ £
NET INCOME /(EXPENDITURE) FOR THE REPORTING YEAR
(as per the Statement of Financial Activities) 9,887 (43,754)
Adjustments for:
Depreciation 11,577 10,240
Movement in debtors 110,773 (3,498)
Movement in creditors 12,981 199,346
Foreign exchange on consolidation (2,161) 3,569
NET CASH FLOWS FROM CHARITABLE ACTIVITIES 143,057
 165,942
17. ANALYSIS OF CHANGES IN CASH AND CASH EQUIVALENTS
At 1 January Cashflows At 31 December
2021 2021 2021
£ £ £
Cash at bank and in hand
 639,699
 136,260
 775,959

18. COMMITMENTS

COMMITMENTS COMMITMENTS COMMITMENTS
At 31 December 2021 the company had total future minimum commitments under non-cancellable
operating leases as follows:
2021 2020
£ £
Within 1 year 31,559 30,774
Between 1 and 5 years 27,565 59,861
59,124
 90,635

27

PARTNER AFRICA (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

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 £31,334 (2020: £21,824).

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 Incurred a net of £213,775 commitments rebilled to Partner Africa, received a net £160,369 from commitments to Partner Africa (2020: £14,770) and transferred no funds to Partner Africa (2020: £Nil). The balance due to Gorta Self Help Africa at 31 December 2021 was £93,138 (2020: £39,732).

21. SUBSEQUENT EVENTS

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

28