Registered number: 7770647 Charity number.. 1144815 Partner Africa (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
PARTNER AFRICA IA company limited by guarantee) CONTENTS Page Reference and Admlnlstratlon Detalls Trustees. report Trustees. responsibilities statement Independent auditors. roport on the financial ststoments 9-12 statement of financial activities 13 Balance sheet 14 Statement of cash flows 15 Notes to the financial statements 16-30
PARTNER AFRICA IA company limited by guarantee) REFERENCE AND ADMINISTRATION DETAILS Trustees Mr. Martin Ryan Ms. Catherine Fitzgibbon Ms Winifred Johansen Dr. Ims.) Chinyere Almona Company registered number 7770647 Charity registered number 1144815 Registered office Second Floor Westgale House Dickens Court Hills Lane Shrewsbury SY1 1QU Company secretary Mr Peter McDevill (resigned 5th January 20241 Winifred Johansen lappoinled 5th January 20241 Independent auditors RBK Business Advisers Chartered Accounlanls & Registered Auditor RBK House Irishlown Alhlone Co. Westmeath Bankers Barclays Bank PIC Shrewsbury Shropshire SY12WQ Solicitors Withers LLP 16 Old Bailey London EC4M TEG Page 1
PARTNER AFRICA IA company limited by guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees, who are also directors of the charitsble company for the purposes of the Companies Act, present their annual report (including audited financial stslemenlsl of Partner Africa Ilhe company) for the year ended 31 December 2023. The Trustees confi'rm that the Annual Report and financial statements of the company comply with the current slatulory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practi, "Accounting and Reporting by Charities ISORP 20191. Structure, governance and management a. Constltutlon Partner Africa is a company limited by guarantee, not having a share capital, the parent entity incorporated in UK under the Companies Act 1985 (registered number 77706471. The company is registered as a charity with the Charity Commission for England and Wales Icharily Number 11448151. It was incorporated on 12th September 2011. Partner Africa is registered in South Africa as an NPO registration number 133405 NPO. Partner Africa's mission is lo improve the working conditions and livelihoods of workers and prOdUrS in African supply chains. Through ils ethical auditing and responsible business advisory Seices, il positively engages with clients to identify, address and report on the salient environmental, social and governance IESGI 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 IUNGPS) and other international best practice stsndards. It works with companies, communities and governments to achieve its mission. Partner Africa has expertise in several industries, including agribusiness, apparel, manufacturing, services and extraclives. Partner Africa does not have a shareholding structure, and ils sole member is Gorta (trading as Self Help Africa), a company limited by guarantee, incorporated in Ireland (company number 1056011 with registered offices al Kingsbridge House, 17-22 Parkgate Street, Dublin 8, and registered as a charity {charity number CHY66631. b. Methods of appointment or election of Trustees The Board is empowered lo appoint new trustees to its ranks. As the sole member, Gorta Self Help Africa must ratify appointments. c. Pollcles adopted for the Inductlon and tralnlng of Trustees There is a Trustee Induction Policy and Programme in place lo 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 organisalion. d. Organlsatlonal structure and declslon maklng Partner Africa has registered branches in England, Kenya, and South Africa. Ils 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. Page 2
PARTNER AFRICA IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Structure, governance and management Icontinuedl 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 Objectives Partner Africa is a pioneer In the field of ethical and socially responsible business praCts. that delivers high quality and innovative ethical audit and responsible business advisory services lo clients. Partner Africa is driven by a social mission lo improve the livelihoods of workers and produTrrs, while assisting access lo international supply chains and bridging the skills and standards gap beeen Africa and the International community. b. Activities 1. Supportlng cllents Identlfy the sallent labour Issues In thelr supply chalns. Ethical Audits & Assessments Partner Africa focuses ils work on conducting high quality, worker- centred ethical audits in order lo assess the working conditions in factories and farms throughout Africa and identify the salient labour issues for ils 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 minimumlliving wage,. working conditions 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 estsblish the characlerislics, needs and priorities of small producers and their workers, and outline recommendations to maintain standards required as well as to help improve livelihoods. Page 3
PARTNER AFRICA IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Objectives and activities {continuedl 2. Addresslng the root cause through provldlng tralnlng and advlsory servlces to cllents Partner Africa takes a 'posilive engagement, approach to ils work and is committed to forming partnerships with ils clients lo 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 lo 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 lo prevent and remediate non-compliances identified in their operations and supply chain. Our advisory services include.. Human Rights Risk Assessments which enable clients lo understand the impact of the operations and supply chains on human rights and understand the associate risks. In4epth researeh. Partner Afriea carries out long-lerm, in-depth researeh into targeted issues within supply chains across Africa including forced labour, child labour, sexual harassment and discrimination. The research findings are used lo help companies develop an in4epth understanding of issues in their supply chains and tsilor policies and systems lo support global efforts lo eradicate the worst forms of child labour, fOrd labour and modern slavery and land grabbing. Partner Africa has also carried out baseline and end line studies lo determine the impact of potential or current sourcing strategies within a supply chain or community. Training and supplier forums. To help clients improve their understanding of responsible business, prevent, and remediate non- compliances Partner Africa offers a range of training programmes for suppliers in Africa that are part of international supply chains. Supporting companies develop responsible business programmes and policies that enable them lo be responsible and be compliant with UNGO'S on Business and Human Rights. Impact asses$ment$ and Reporting. Partner Africa is committed to supporting elienls assess the impact of their responsible business programmes and preparing high quality robust reports. Partner Africa's team have experience of preparing and reviewing modern slavery reports, ethical trade initiative IETII reports, UN Global Compact reports and the organisation of stakeholder panels. Page 4
PARTNER AFRICA IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Strategic report Partner Africa annual update 2023 . General summary In 2023 the focus of Partner Africa work was lo invest In creating a robust and resilient business for the future which included.. Delivering on the 2022 developed S-year strategy for Partner Africa for the period January 2023 10 December 2028. Investing in a marketing and communications programme to promote the work of Partner Africa and growth business Investing In new senior positions in the audit team including a fvjll-time quality manager to improve the robustness of the programme. Investing in gaining ISO certification to enable Partner Africa to expand the types of audits and certification that it can undertake including Global Gap audits. strengthening and expanding the advisory programme through engaging a series of senior advisory consullanls to deliver high quality programmes. IMPACT In 2023, Partner Africa conducted 892 Social audits, with 772 firms across 28 industries and countries. Through this they engaged with 137,241 direct workers and 19,789 indirect workers. Those siles that were found lo have non-compliances had over 98,000 Employees. PA recorded over 759/0 closure rale of Ncs within the calendar year. As a result, Partner Africa contributed lo the improvement of working conditions of just over 70,000 workers in 2023. During the same period the Responsible Business Advisory department of Partner Africa conducted 18 projects. Impact details below. Totsl NuuLber of ThT0Tke engaged {i.e. 1rLteThie"ed' 5un"ey)'. 1834 Number of Supplie engaged {i.e. illterriewed; 5Utvey)'. 257 NullLber of illterllatioDal bUsineS en8a8ed <i.e. inteThryewed' SUeYed). Number of WOTketS SUPWYrted (i.e. trained. capacity building; imPToved worknng conditions): IW8 Number of SkLPP]iers supported (i.e. ittlPToYed HRDD systsms; trained) 142 Number of iuternatiollal bu51lle5 sUPPOrted (i.e. iInpToved HRDD systell' tTrined): 27 Page 5
PARTNER AFRICA IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Strategic report Icontinuedl Partner Africa annual update 2023 Icontinuedl b. Finance and operations Over the last year Partner Africa continued lo build the capacity of Ils Finance and Operations programme and recruited a senior financial advisor lo review Ils processes and structure to ensure they were efficient, effective and appropriate to the size and work of the organisalion. c. Plans for 2024 Over the next 12 months Partner Africa plans lo continue to grow the core parts of ils business i.e. ethical audits and responsible business advisory. In addition, it will seek opportunities lo allow il to grow its revenue and reach,. It will complete the expansion of its audit programme lo include global gap assessments,. and as part of this gain ISO accreditation which will further strengthen the robustness of the organisation. Financial review . Going concem The organisalion's forecasts and projections show that the organisation will be able to operate within the level of ils 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 slalements. Thus, they continue to adopt the going conTrrn basis of accounting in preparing the annual financial statements. Further details regarding the adoption of the going concern basis is Included in the notes to the financial statements. b. Political donations No political donations were made during the year. c. Post balance sheet events No events have occurred since the balance sheet date that require adjustment or disclosure. Olsclosure of Infomiatlon to audltors Each of the persons who are Trustees al the time when this Trustees, report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and that Trustee has taken all the steps that ought lo have been taken as a Trustee in order lo be aware of any relevant audit information and to establish that the charity's auditors are aware of that information. This confirmation is given and should be interpreted in accordan with the provisions of S418 of the Companies Act 2006. Page 6
PARTNER AFRICA IA company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Auditors The auditors, RBK Business Advisers, were appointed during the period and have indicated their willingness lo continue In office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. ADDroved bv order of the members of the board of Trustees and signed on their behalf by.. I>ysiGN 4&9yts2-1I6sv2 Mr. Martin Ryan Ichair of Trustees) Dale.. 14 Mar 2025 Page 7
PARTNER AFRICA IA company limited by guarantee) STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees (who are also the directors of the Company for the purposes of company lawl are responsible for preparing the Trustees. report Including the strategic report and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102, the financial reporting stsndard applicable in the UK and Ireland. Company law requires the Trustees to prepare financial stslemenls for each financial year. 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 slate of affairs of the Company and of its incoming resources and application of resources, including Its income and expenditure, for that period. In preparing these financial statements, the Trustees are required lo.. select suitable accounting policies and then apply them consistently., observe the methods and principles of the Charities SORP., make judgments and accounting estimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements", prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy al any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are responsible for the Maintenan and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and disseminab'on of financial ststemenls may differ from legislation in other jurisdictions. Approved by order of the members of the board of Trustees and signed on its behalf by.. Ryo Ix¥(SlGN 46ZX9Y82-17Z65YK2 Mr. Martin Ryan Ichair of Trustees) Dale. 14 Mar 2025 Page 8
PARTNER AFRICA IA company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF PARTNER AFRICA FOR THE YEAR ENDED 31 DECEMBER 2023 Oplnlon We have audited the Financial Statements of Partner Africa Ithe 'charitsble company'l for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally ACpIed Accounting Practi1. In applying that framework the Iruslees have elected to have regard lo the Statement of Recommended Practice applicable lo Charities ISORPI. In our opinion the Financial Stalemenls.. give a true and fair view of the slate of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including ils income and expenditure for the year then ended., have been properly prepared in accordan with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors. responsibilities for the audit of the Financial Statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the Financial Statements in the United Kingdom, including the Financial Reporting Council's Ilhe 'FRC'I Ethical Standard, and we have fulfilled our other ethical responsibilities in accordan with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate to provide basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going conrn basis of accounting in the preparation of the financial slalemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubl on the charitable company's ability lo continue as a going concern for a period of at least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Page 9
PARTNER AFRICA IA company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF PARTNER AFRICA ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Other Informatlon The other information comprises the information included in the annual report other than the Financial Statements and our auditors. report Ihereon. The trustees are responsible for the other infomialion contsined within the annual report. Our opinion on the Financial Statements does not cover the other information and, except lo the extent otherwise expliciuy ststed in our report, we do not express any fomi 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 lo determine whether this gives rise lo a material misslatemenl 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. Oplnlon on other matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the informstion given in the Trustees. port for the financial year for which the Financial Statements are prepared is consistent with the Financial Stalemenls. the Trustees, report has been prepared in accordance with applicable legal requirements. In the light of our knowledge and understanding of the charitable company and ils environment obtained in the course of the audit, we have not identified Material misstatements in the Trustees, report. Matters on whlch we are requlred to report by exceptlon We have nothing to report in respect of the following matters in relation lo which Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us,. or the Financial Slalements are not in agreement with the accounting records and returns., or ertain disclosures of TrLJStees' remuneration specified by law are not made", or we have not received all the information and explanations we require for our audit", or the trustees were not entitled to prepare the financial ststemenls in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, report. Page 10
PARTNER AFRICA IA company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF PARTNER AFRICA ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Responslbllltles of trustees As explained more fully in the trustees, responsibilities statement, the Trustees Iwho are also the directors of the charitable company for the purposes of company lawl 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 Ststemenls that are free from material misstatement, whether due lo fraud or error. In preparing the Financial Statements, the Trustees are responsible for assessing the charitable company's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concem basis of accounting unless the Trustees either intend to liquidate the charitable company or lo cease operations, or have no realistic alternative but lo do so. Audltors. responslbllltles for the audlt of the flnanclal statements Our objectives are lo obtain reasonable assurance about whether the Financial Statements as a whole are free from material misslatemenl, whether due to fraud or error, and to issue an auditors, report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect a material misstalemenl when il 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 Slatementsfinancial statements. A further description of our responsibilities for the audit of the financial statements is located on the FRC'S website at.. ww.frc.org.uklauditorsresponsibililies. This description forms part of our auditor's report. Extent to whlch the audlt was conducted capable of detectlng Irregularltles Includlng fraud Irregularities, including fraud, are instances of non-complian with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delecl material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities, including fraud is detsiled below.. We considered the nature of the charitsble company's industry and its control environment, and reviewed the charitable company's documentation of their policies and procedures relating lo fraud and compliance with laws and regulations. We also enquired of management, internal audit and directors about their own identification and assessment of the risks of irregularities, including those that are specific to the charitable company's business sector. We obtained an understanding of the legal and regulatory frameworks that the charitsble company operates in, and identified the key laws and regulations that.. had a direct effect on the determination of material amounts and disclosures in the financial slalemenls. These included UK Companies Act, Charities Act 2011, pensions legislation and tsx legislation. do not have a direct effect on the financial statements bus compliance with which may be fLJndamental lo the charitable company's ability to operate or lo avoid a material penalty. These included UK employment law and Data Protection Act 2018. 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. Page11
PARTNER AFRICA IA company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF PARTNER AFRICA ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 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 il are described below.. Completeness, accuracy and occurrence of income.. we assessed the design and determined the implementation of the key controls over income recognition process., and performed substantive prOdureS on a sample basis to assess appropriate of income recognition. In common with all audits under ISAS IUKI. we are also required to perform specific procedures to respond lo 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 eslimales 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 lo respond to the risks identified included the following.. reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial ststemenls., performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud., enquiring of management and the group audit finance & risk committee conceming actual and potential litigation and elaims, and InStanS of non-compliance with laws and regulations in this charitable company", and reading minutes of meetings of those charyed with governance and reviewing internal audit reports. Use of our report This report is made solely lo 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 stale to the charitable company's members those matters we are required to stste to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed. Michelle O'Donoghue {Senior Statutory Auditor) RBK Business Advisers Chartered Accountsnts & Registered Auditor RBK House Irishtown Athlone Co. Westmeath Dale.. 18 March 2025 Page 12
PARTNER AFRICA IA company limited by guarantee) STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestricted funds 2023 Total funds 2023 Total funds 2022 Note Income from: Charitable activities 1,843.262 1,843.262 1, 982,220 Total income 1,843,262 1,843,262 1,982,220 Expenditure on: Charitable activities 1,987.288 1,987.288 2, 100,664 Total expendlture 1,987.288 1,987,288 2, 100,664 Net expenditure before taxation Taxation 1144.0261 {7.522) 1144.026) {7.522) (178,444) 134 11 Net movement in funds 1151.5481 1151.5481 (118.310) Reconciliation of funds: Total funds brought forward Nel movement in funds 275.695 (151.548) 275.695 (151.548) 394,005 (118,310) Total fund$ carried forward 16 124,147 124,147 275,695 The Statement of financial activities includes all gains and losses recognised in the year. The notes on pages 16 to 30 form part of these financial statements. Page 13
PARTNER AFRICA IA company limited by guarantee) BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Note Fixed assets Tangible assets 12 12.982 23,397 12,982 23,397 Current assets Debtors Cash al bank and in hand 13 19 98.393 488.659 115,358 558,379 587,052 673, 737 Creditors.. amounts falling due within one year 14 (475.887) (421,439) Net current assets 111,165 252,298 Total assets less current liabilities 124,147 275,695 Total net assets 124.147 275.695 Charity funds Reslricled funds Unrestricted funds 16 16 124.147 275,695 Total funds 124,147 275,695 The financial stslemenls were approved and authorised for issue by the Trustees and signed on their behalf by.. /P7orf/ii Ry tQ<SlGN 46ZXgYS2-17Z65YK2 Mr. Martin Ryan Trustee Dale.. 14 Mar 2025 The notes on pages 16 to 30 form part of these financial statements. Page 14
PARTNER AFRICA IA company limited by guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Note Cash flows from operating activities Nel cash used in operating activities 18 (68,8731 (207.978) Cash flovts from investing activities Purchase of tangible fixed assets 18471 (9,602) Net cash used in investing activities 8471 {9.6021 Cash flows from financing activities Net cash provided by financing activities Change In cash and cash equlvalents In the year Cash and cash equivalents at the beginning of the year 20 69,7201 {217.5801 558,379 775.959 Cash and cash equivalents at the end ofthe year 19 488,659 558.379 The notes on pages 16 to 30 form part of these financial statements Page 15
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 General Informatlon The financial statements comprising of the Statement of Financial Activities, the Summary Income and Expenditure, the Statement of Financial Position, and the Statement of Cash Flows and the related notes constitute the individual financial statements of Partner Africa for the financial year ended 31 December 2023. Partner Africa 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 lo £1 per member of the company. Partner Africa is incorporated and registered in the UK (company number 77706471. The registered office is Second Floor, Weslgale House, Dickens Court, Hills Lane, Shrewsbury, SY11QU, which is also the principal place of business of the charity. The nature of the company's operations and ils principal activities are set out in the Directors, Report. Accountlng pollcles 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Stslement of Recommended Practice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective 1 January 20191, the Financial Reporting Standard applicable In the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Partner Africa meets the delinilion of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise staled in the relevant accounting policy. The fvnctional currency of Partner Africa is considered lo be pounds sterling because that is the currency of the primary economic environment in which the company operates. In accordance with Section 60 of the Companies Act, 2006, the company is exempt from including the word "Limited" in ils name. The company is limited by guarantee and has no share capital. 2.2 Going concern The organisation's forecasts and projections, taking account of reasonable possible changes in perf0mlan, show that the organisalion will be able to operate within the level of its current cash reSoUrs. 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 lo adopt the going concern basis of accounting in preparing the annual financial slalements. Further details regarding the adoption of the going concern basis Is Included in note 3. Page 16
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles Icontlnuedl 2.3 Income All income is recognised once the Company has entitlement lo the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The recognition of income from legacies is dependent on establishing entitlement, the probability of reIpt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement lo a legacy exists when the Company has sufficient evidence that a gift has been left lo them Ilhrough knowledge of the existence of a valid will and the death of the benefaclorl and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that il will be received and the fair value of the amount re1Vable, which will generally be the expected cash amount lo be distributed to the Company, can be reliably measured. Gifts in kind donated for distribution are included al valuation and recognised as income when they are distributed lo the projects. Gifts donated for resale are included as income when they are sold. Where the donated good is a fixed asset, il is measured at fair value, unless it is impractical lo measure this reliably, in which case the cost of the item lo the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Company's accounting policies. On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Company which is the amount il would have been willing lo pay to obtain setvices or facilities of equivalent economic benefit on the open market,. a corresponding amount is then recognised in expenditure in the period of receipt. Income tax recoverable in relation to donations received under Gift M'd or deeds of covenant is recognised at the lime of the donation. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the Se1. 2.4 Expendlture Expenditure is recognised once there is a legal or constructive obligation lo transfer economic benefit lo a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable lo a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned beeen those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of lime spent, and depreciation charges allocated on the portion of the asset's use. Expenditure on charitable acts'vities is incurred on direcuy undertaking the activities which further the Company's objectives, as well as any associated support costs. Page 17
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles Icontlnuedl 2.4 Expenditure {continued) Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions allaching are fulfilled. Grants offered subject to conditions which have not been met al the year end are noted as a commitment, bul not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. 2.5 Forelgn currencles Monetary assets and liabilities denominated in foreign currencies are translated into slerfing at rates of exchange ruling al the reporting date. Transactions in foreign currencies are translated into sterling at the rale ruling on the date of the transaction. Exchange gains and losses are recognised in the statement of financial activities. 2.6 Taxatlon 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 lax expense for the financial year comprises current tax. Tax is recognised in the Statement of Financial Activities. 2.7 Current tax Current lax is provided al amounts expected lo be paid lor recovered) using the tax rates and laws that have been enacted or subslanlively enacted by the balance sheet date. 2.8 Tanglble flxed assets and depreclatlon Tangible fixed assets costing £500 or more are capilalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straighl-line method. Depreciation is provided on the following basis.. Computer equipment 330 2.9 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued al the amount prepaid net of any trade discounts due. Page 18
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles Icontlnuedl 2.10 Cash at bank and in hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. 2.11 Llabllltles and provlslons Liabilities are recognised when there is an obligation al the balance sheet dale as a result of a past event, il is probable that a transfer of economic benefit will be required in selllemenl, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates il will pay to settle the debt or the amount it has received as advanced payments for the goods or ServIS it must provide. Provisions are measured al the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted al the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the ststement of financial activities as a finan cost. 2.12 Deferred tsxatlon Full provision is made for deferred tax assets and liabilities arising from all timing differences beleen the recognition of gains and losses in the financial statements and recognition in the lax computation. A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable surpluses from which the future reversal of the underlying timing differences can be deducted. Deferred tax assets and liabilities are calculated al the tax rates expected to be effective at the time the timing differences are expected lo reverse. 2.13 Flnanclal Instruments The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured al amortised cost using the effective interest method. 2.14 Operatlng leases Rentsls paid under operating leases are charged lo the ststement of financial activities on a straight- line basis over the lease temi. 2.15 Penslons The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company lo the fund in respect of the year. Page 19
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcles Icontlnuedl 2.16 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 sel out in the notes lo the financial ststemenls. Restricted funds are funds which are lo be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs 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 lo the financial statements. Golng concern While the organisation recorded an unreslricled deficit of £144k in 2023, it has an unreslricled reserves figure of £124k at year end. The organisation's forecasts and projections, taking account of reasonable possible changes in perforrnan and structure, show that the organisation will be able lo operate within the level of ils current cash reSoUrs. The Gorta Group has also committed to provide financial support lo Partner Africa (should it be required) for a period of not less than e1ve months from the approval of the financial stslemenls. Accordingly, the Iruslees have reasonable expectslion that the organisation has adequate resources lo continue in operational existence for a period of at least 12 months from the date of approval of the financial statements and are continuing to adopt the going cOnM basis in preparing the annual financial statements. Income from charltable actlvltles Unrestricted funds 2023 Total funds 2023 Audit Income 1,107,174 697,346 38,742 1,107,174 697.346 38.742 Advisory servIs other Income Trade Development Projects Total 2023 1,843,262 1,843.262 Page 20
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Income from charltable actlvltles {contlnued) Restricted Unrestricted funds funds 2022 2022 Total funds 2022 Audit Income Advisory Services other Income Trade Development Projects 1,178,283 391,668 59,039 1,178,283 391.668 59.039 353,230 353,230 Total 2022 353.230 1.628, 990 1, 982.220 Charitable activities Unrestricted funds 2023 Total funds 2023 Ethical Audits 1,205,456 1,205,456 Trade Development Projects Advisory servIs Support Costs (Note 6} 755,252 26,580 755.252 26.580 1,987,288 1,987,288 Restricted Unrestrictgd funds funds 2022 2022 Total funds 2022 Ethical Audits 1,272, 739 28,316 423, 066 23,313 1,272,739 381,546 423.066 23,313 Trade Development Projects Advisory servIs Support Costs (Note 6} 353,230 353.230 1,747,434 2, 100,664 Page 21
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Support costs Unrestricted funds 2023 Total funds 2023 Audit fees 17,991 17,991 Legal fees other governance costs 8,583 8.583 26,580 26,580 Unrestricted funds 2022 Total funds 2022 Audit fees 14, 631 483 14,631 483 Legal fees Other governance costs 8, 199 8.199 23,313 23,313 Anatysis of expenditure by type Total funds 2023 Staff costs Depreciation 2023 2023 Other costs 2023 Ethical Audits Trade Development Projects Advisory Services Support Costs INole 61 458,291 5,338 741,827 1.205,456 287,351 3,369 464,532 26,580 755,252 26,580 745,642 8,707 1,232,939 1.987.288 Page 22
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Total funds 2022 staff costs Depreciation 2022 2022 Other costs 2022 Ethical Audits Trade Development Projects Advisory Servi$ Support Costs (Note 6} 333,661 100,026 710,911 5, 569 1,669 1,851 933,509 279.851 310,304 23,313 1,272,739 381.546 423,066 23,313 544,598 9, 089 1, 546.977 2, 100.664 Net lexpenditurel l income before taxation 2023 2022 Depreciation of tangible fixed assets Auditors, remuneration Auditors, remuneration - other overseas auditors for branches Pension costs 8,707 13,692 4,299 44,338 9,089 8,757 5.874 40,310 71,036 64,030 Auditorfs remuneration of £17,991 in 2023 consists of £13,692 for the ServIS of RBK Business Advisers, in respect of the 2023 statutory audit and £3,599 paid to PKF Kenya in relation to the 2023 audit of the Kenyan branch and £700 in relation lo South Africa branch audit. Staff costs 2023 2022 Wages and salaries Social security costs Contribution to pension schemes 599,858 26,107 44,338 476,381 27,907 40,310 670,303 544.598 Page 23
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Staff costs {contlnued} The average number of persons employed by the Company during the year was as follows.. 2023 No. 2022 No. Average monthly number of employees 24 The number of employees whose employee benefits lexcluding employer pension costs) exceeded £60,000 was.. 2023 No. 2022 No. In the band £60,001- £80,000 The totsl remunerats'on for key management personnel for the financial year amounted to £235,751 12022. £314,783) 10. Trustees. remuneratlon and expenses During the year, no Trustees reiVed any remuneration or other benefits {2022- £NIL). During the year ended 31 December 2023, no Trustee expenses have been incurred (2022- £201). 11. Taxatlon 2023 2022 Corporation tax Current tax on net expenditure for the year 7,522 (134) Taxatlon on net expendlture 7,522 (134) The current tsx charge and related deferred tax asset in 2023 relates to accumulated losses at the Kenyan branch of Partner Africa. Partner Africa has been granted charitsble lax exempl status by the HMRC and therefore no provision for UK corporation lax is required. Page 24
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 12. Tanglble flxed assets Office Furniture and Equipment Motor vehicles Total Cost or valuation At 1 January 2023 Additions Disposals Foreign exchange movement 16,361 79,771 847 96,132 847 116,3611 18,6801 116,3611 18,6801 At 31 December 2023 71,938 71,938 Depreciation At 1 January 2023 Charge for the year On disposals Foreign exchange movement 16,361 56,374 8,707 72,735 8,707 116,3611 16,1251 16,3611 16,1251 At 31 December 2023 58,956 58,956 Net book value At 31 December 2023 12,982 12,982 At 31 Dember 2022 23,39T 23,39T 13. Debtors 2023 2022 Due within one year Trade debtors 39,068 16,397 26,476 16,452 51,332 Other debtors Prepayments and accrued income Deferred laxalion 40.038 23.988 98,393 115,358 Page 25
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 14. Credltors: Amounts falllng due wlthln one year 2023 2022 Trade creditors Amounts owed to group undertakings Deferred income on TMEA Grant Other laxalion and social security other creditors Accruals and deferred income 64,387 39,026 3,034 12,357 28,545 328,538 51,602 16,774 50,747 602 106. 769 194,945 475,887 421,439 Amounts owed to group undertakings are interest free and repayable on demand. 15. Financial instruments 2023 2022 Flnanclal assets Trade debtor3 39,068 51.332 2023 2022 Flnanclal Ilabllltles Trade creditors 64,387 39,026 51,602 16,774 Amounts owed to parent undertaking 103,413 68.376 Page 26
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 16. Statement of funds Statement of funds - current year Balance at 31 December 2023 Balance at 1 January 2023 Income Expendlture Taxatlon Unrestricted funds Reserves 275,695 1,843,262 {1,987,2881 17,5221 124.147 statomont of funds - prior year Balan at 31 December 2022 Balance at l January 2022 Incon7e Expenditure Unrestrlcted funds General Funds 394.005 1,628,990 (1, 747,300) 275,695 Restricted funds Reslrirted Funds 353,230 (353,230) Totsl offunds 394.005 1,982,220 (2, 100,530) 275,695 Page 27
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 17. Analysls of net assets between funds Analysls of net assets between funds - current year Unrestrlcted funds 2023 Total funds 2023 Tangible fixed assets Current assets Creditors due within one year 12,982 587,052 1475,8871 12.982 587,052 {475.8871 Totsl 124,147 124.147 Anatysis of net assets between funds - prior year Unrestricted funds 2022 Total funds 2022 Tangible fixed assets Current assets Creditors due within one year 23,397 673, T37 (421,439) 23.397 673,737 (421,439) Totsl 215, 695 275.695 18. Reconciliation of net movement in funds to net cash flow from operating activities 2023 2022 Nel expenditure for the year las per Statement of Financial Activitiesl 1151,5481 (118,310) Adjustments for: Depreciation charges Decrease in debtors 8,707 16,965 54,448 2,555 9,089 98,219 (196.535) (507) Increaselldecreasel in creditors Foreign exchange on consolidation Net cash used In operatlng actlvltles 68,8731 (207,978) Page 28
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 19. Analysls of cash and cash equlvalents 2023 2022 Cash in hand 488,659 558.379 Total cash and cash equivalents 488,659 558.379 For the purpose of statements of cash flows, the year end cash and cash equivalents comprise the following restricted bank balance. TMEA Project £8,277 (2022.. £1,630J. 20. Anatysls ofchanges In net debt At1 January 2023 Cash flows At31 December 2023 Cash al bank and in hand 558,379 169.7201 488.659 558,379 69,7201 488,659 21. Pension commitments The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions paid by the group lo the fund and amounted lo £44,34812022 - £41,3101. 22. Operating lease commitments At 31 December 2023 the Company had commitments lo make future minimum lease payments under non-cancellable operating leases as follows.. 2023 2022 Not later than 1 year Later than 1 year and not later than 5 years 2,237 2,051 23,876 4,288 23.876 Page 29
PARTNER AFRICA IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 23. Post balance sheet events No events have occurred since the balance sheet date that require adjustment or disclosure. 24. Controlllng party The results of Partner Africa are consolidated into the financial ststemenls 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 Offi al Kingsbridge House, 17- 22 Parkgate Street, Dublin 8. During the year, Gorta Self Help Africa ISHAI incurred a nel of £250,00812022'. £268,359> commitments rebilled to Partner Africa and received a nel of £240,378 12022.. £295,606) from commitments to Partner Africa. No funds were transferred to Partner Africa from SHA12022'. £Nill. The balance due to Gorta Self Help Africa at 31 December 2023 from normal operations was £37,026 12022.. £65,891). £0 12022.. £49,117) was owed by SHA being transfer of TMEA Burundi fund balance. The nel balance owing lo Gorta Self Help Africa was £39,02612022'. £16,774). 25. Approval of flnanclal statements The accounts were approved by the Trustees on Page 30