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2021-12-31-accounts

DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

REGISTERED COMPANY NUMBER: 07883925 (England and Wales) REGISTERED CHARITY NUMBER: 1147128

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR AFRICAN ENTERPRISE INTERNATIONAL

DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Page
Report of the Trustees 1 - 7
Independent Auditors' Report on the Financial Statements 8 - 11
Statement of Financial Activities 12
Balance Sheet 13
Statement of Cash Flows 14
Notes to the Financial Statements 15 - 22

DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

REPORT OF THE TRUSTEES - YEAR ENDED 31 DECEMBER 2021

The Trustees of African Enterprise International (the Charity), who are also directors of the Charity for the purposes of the Companies Act, present their Annual Report together with the Charity's audited Financial Statements for the year ended 31 December 2021. We confirm that the Annual Report and Financial Statements of the Charity comply with the current statutory requirements, the requirements of the Charity’s governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition – October 2019 effective 1 January 2019.

Objectives and activities

Objectives and aims for the public benefit

The objective of African Enterprise International (referred to as AE International) is to coordinate grants that are received from supporting partners and to manage their effective distribution to the ministry projects that are managed by partner teams within Africa. In addition the objectives are to provide oversight on good governance for all partners and to enable equity in the distribution of discretionary funds to partner members within Africa. The trustees provide substantial input into the primary direction and strategy relating to the management, coordination of activities and focus of the partnership as a whole as well as developing the policies and procedures that govern the partnership's operation. The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charitable company's aims and objectives and in planning its future activities.

Achievement and Performance

Charitable activities

1. AE Mission Fronts

In 2021, there was significant achievement in AE Missions. Various proclamation and Social Action missions were successfully conducted in all our Teams. Out of these missions, 12,234,634 people were collectively reached and 46,440 committed their lives to Jesus Christ for the first time.

AE has continued to employ both the traditional methods for evangelism eg crusades in addition to more innovative methods both online based (TV, Radios etc) and face to face. Due to the presence of Covid 19 limiting crowds, new methods used instead of crusades were Home Based Evangelism (you visit homes and evangelism through a person known to the family) and small group meetings called in church premisis.

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

REPORT OF THE TRUSTEES - YEAR ENDED 31 DECEMBER 2021

1. AE Mission Fronts (continued...)

1
2
3
4
5
6
7
8
9
10
11
12		 2021 2021 2021 2020 2020 2020
Team Number
Reached		 Decisions
for Christ		 Number
Reached		 Decisions for
Christ
AE DRC 11,840 1,544 15,357 4,305
AE Ethiopia 7,901 273 6,984 244
AEGhana 4,406,690 805 7,179 272
AE Kenya 2,108,393 13,911 434,605 23,858
AE Malawi 6,767 1,851 7,706 2,993
AESouth Africa 701,165 1,197 312,217 6,391
AE Rwanda 1,042,072 8,156 300,879 12,889
AE Tanzania 1,218,731 1,036 173,643 21,482
AEUganda 2,709,223 6,271 364,406 14,060
AE Zambia 20,341 10,946 169,234 15,799
AE Zimbabwe 732
AESouthSudan 1,511 450 1,325 780
Total 12,234,634 46,440 1,794,267 103,073

Proclaim 2021 African Evangelists Congress

The Proclaim 2021 hosted by the African Evangelists and various mission agencies in collaboration with African Enterprise International (AEI) started with the Proclaim Young African Evangelists Congress from the 10th to 12th of September 2021. The Nairobi Proclaim Continental Congress was held from 7th to 9th December 2021 in Nairobi, Kenya. 35 countries were represented in Nairobi with 70 key representatives meeting in-person, and over 45,000 people reached through online platforms.

Proclaim 2021 brought together English, Portuguese, Spanish and Francophone evangelists from various spheres, including marketplace evangelists, pastor evangelists, mass evangelists, church planters, friendship evangelists, missionary evangelists, artist evangelists, and media evangelists. Theologians, missions support staff, and other church leaders were present. The event culminated with the launch of Proclaim Evangelists Network with a charter for the same being signed by representatives from the various countries.

Following the Proclaim Continental Congress, regional Congresses are planned for Western Africa, Southern Africa, Central Africa and Northern Africa.

2 Operations

2 Strategic Plan 2019-2021

The 2019-2021 Strategic plan period has come to a close. The implementation has refined for us not the 7 focus areas that now form the core of our operations; Stratified evangelism and discipleship, Community transformation, Transformational Leadership enhancement, Youth Empowerment, Peace building and Reconciliation, Capacity Development and governance.

The Charity partnership is currently working on a long-range strategic plan 2021-2030 for approval by the International Council in 2022. AEI is registered as Charity in UK but does evangelism work in Africa, currently in 12 countries. These make the partnership.

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AFRICAN ENTERPRISE INTERNATIONAL

REPORT OF THE TRUSTEES - YEAR ENDED 31 DECEMBER 2021

2.2 Triennial International Council (IC)

AEI hosted the last IC meeting in Kigali in the month of November 2019.

The IC is African Enterprise's top decision-making organ, meeting once every three years to review progress and chart the path for the ministry in the three subsequent years. In 2019, the theme of the IC was "Fruit that Lasts", with a focus on "impact, sustainability, and legacy". Members engaged each day of the IC to reflect and discuss on one of these three areas. Our reflections being guided by the following questions:

The conclusion of the IC was formulation of resolutions that will guide the organization for the next 3 years.

The International Council is the top organ of the organization which meets once every 3 years. During the period its not meeting, the International Board is mandated to make all decisions.

There was an IC meeting held post year end in September 2022 in Lusaka Zambia.

2.3 Launch of African Enterprise Southern Africa Region (AESAR)

The African Enterprise Southern Africa Regional (AESAR) was successfully launched on 3rd December 2019, in Lusaka, Zambia. The aim is to reach out more effectively the Southern Region currently defined as Zimbabwe, Malawi and Zambia.

The region is also meant to build the capacity of our existing teams in Zimbabwe and Malawi thus increasing their capability to effectively reach many more within their nations and collectively within their region. By committing to share human staff-resource each of the 3 nations will benefit from highly competent staff recruited from the region.

The Region is now fully operationalized with key staff in place, senior staff in each country being assigned regional roles, and planning for mission activities together. The country boards are also in full support having signed Memorandum of Understanding with the Region.

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

REPORT OF THE TRUSTEES - YEAR ENDED 31 DECEMBER 2021

Financial review

As evidenced in the figures shown in the financial statements of these accounts, the financial year 2021 saw our charity end in a comfortable position.

There was a surplus of $76,617 of which $42,117 was unrestricted, which saw the total funds carried forward increase to $273,665 from $197,048 in 2020. The total of unrestricted funds is $111,915.

Our income of $1,513,171 was higher than the previous year, with an increase of over $100k. Income is solely made up of donations and legacies with funders generally responding in an exemplary manner to the challenges of the pandemic, to ensure that we were able to continue to operate in that extraordinary time.

There was a subsequent increase in expenditure for the year, with $1,436,554 in 2021 as compared with $1,273,787 the previous year. This is mainly expenditure on charitable activities.

Reserves policy

The trustees aim is to maintain reserves in unrestricted funds that will be sufficient to cover the operational costs of the organization for a period of 60 days or more. The trustees recognize that the level of funds received is dependent in turn on the fundraising efforts of partners rather than the direct fundraising efforts of the organization itself and that the flow of funds can be variable.

The balance of unrestricted funds improved by US $42,117, from $69,798 as at 31st December 2020 to US $111,915 as at December 2021. This was achieved through cost management measures we put in place including minimizing our travel, keeping our administrative costs to the bare essentials, holding meetings with our support offices every month to look at our financial projections and shifting meetings and operations to online platforms. The Charity is committed to build the reserves to US $200,000 in five years. Through will be done by annaully budgeting for the reserves, specific fundraising for the same and through expense control to generate savings.

May the grace, favour, faith in, love and power of God continue to uplift AE to greater heights.

Structure, governance and management

Governing document

The charity is constituted as a company limited by guarantee, as defined by the companies act 2006 and is hence controlled by its articles of association.

Recruitment and appointment of new trustees

Under the Memorandum and Articles of Association and the by-laws of African Enterprise International, most trustees are drawn from members of the African Enterprise International Council (IC) which is a group of companies that have signed the Covenant of Partnership (CoP) and is the body that appoints the trustees each three years. The IC determines the composition and membership of the International Board Trustees at its triennial meeting. At present trustees are appointed for a three-year term and may not serve more than two consecutive terms. The appointment of trustees between triennial IC meetings needs to be ratified at the next IC meeting.

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

REPORT OF THE TRUSTEES - YEAR ENDED 31 DECEMBER 2021

The triennial meeting, hereby referred to as International Council (IC) took place in November 2019 and new trustees were appointed and the next one took place post year end in September 2022.

African Enterprise International Limited is a company limited by guarantee with the registered company number 07883925. It is registered as a charity (Charity Number 1147128). The constitution of the partnership provides for a triennial council made up of representatives of all the members of the partner organizations both within Africa and outside Africa. Each partner organization has signed the CoP. The representatives of the partner organization are as defined in the by-laws of the company and they approve the appointment of trustees each three years. The make-up of the board is set out in the constitution. The board comprises two members who represent partners within Africa and two who represent partners outside Africa. In addition, there are two independent directors, the treasurer and the chairman. The company secretary attends board meetings as a non voting member. The International Team Leader (ITL) and the founder of the organization are also ex-officio attendees. None of the trustees is remunerated.

Induction and training of new trustees

African Enterprise International Limited considers carefully the induction of new trustees and has prepared a board manual for new and existing trustees. Documents provided to incoming trustees comprise the following:-

Trustees are advised to read through the material thoroughly prior to signing the consent to act as a trustee.

Wider network

The IC represents the wider partnership, effectively the stakeholders and, in accordance the by-laws of the company, they have the right to remove trustees and to appoint new trustees. The trustees may appoint new trustees between each triennial meeting. Trustees appointed in this way need to be reappointed at the next triennial IC meeting.

Risk management

The trustees have considered the major risks to which the charity is exposed. The charity currently does not actively seek direct funds from donors but receives funds from members of the partnership outside Africa and primarily distributes funds to other members of the partnership.

The charity does not undertake the investment of funds that it holds and therefore is not exposed to market fluctuations. It operates both income and expenditure primarily in US dollars and accordingly has minimal exposure to currency fluctuations. The trustees believe there are adequate controls in place in managing finances.

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

REPORT OF THE TRUSTEES - YEAR ENDED 31 DECEMBER 2021

Risk management (continued…)

There was an outbrake of Covid 19 whose effects were felt fully in the year 2020 and partly in 2021. The pandemic impacted the Charity negatively by eroding the wealth of supporters especially in 2020. This necessitate revison of budgets downwards to be in line with the expected revenue. The tradional evangelism methods could not be used.This saw the birth of Home Based Evangelism, small groups called in churches and more use of radio and TV which were not commonly used previosuly. Radio and TV are cheaper options but with wider reach compared to crusades.

Reference and administration details

Registered Company number 07883925 (England and Wales)

Registered Charity number 1147128

Registered office 6 Trull Farm Buildings Trull Tetbury England GL8 8SQ

Trustees

The trustees who held office during the year were:J Senyonyi G Masalakulangwa N A Amoo C Kivengere J Reynolds W O Ogara A Rutayisire D Ralph

Subsequent to the year end, R Chokhotho and G Ondiek were appointed in September 2022. At the same time J Senyoni and W O Ogara retired as trustees.

Company Secretary

The Trust Partnership Ltd

Independent Auditors

Peters Elworthy & Moore Chartered Accountants Salisbury House Station Road Cambridge CB1 2LA

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

STATEMENT OF TRUSTEES RESPONSIBILITIES - YEAR ENDED 31 DECEMBER 2021

The trustees (who are also the directors of African Enterprise International for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to:

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

In so far as the trustees are aware:

Approved by order of the board of trustees and signed by:-

A Rutayisire - Trustee

Date: 19 January 2023

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE CHARITABLE COMPANY (‘THE COMPANY’) - YEAR ENDED 31 DECEMBER 2021

OPINION

We have audited the financial statements of African Enterprise International (the Charity) for the year ended 31 December 2021 comprising the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and the related notes, including a summary of the significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

BASIS OF 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed; we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE CHARITABLE COMPANY (‘THE COMPANY’) - YEAR ENDED 31 DECEMBER 2021

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

• the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

• the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report.

RESPONSIBILITIES OF TRUSTEES

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's or to cease operations, or have no realistic alternative but to do so.

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

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

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE CHARITABLE COMPANY (‘THE COMPANY’) - YEAR ENDED 31 DECEMBER 2021

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIALSTATEMENTS

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.

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the charity sector;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Charities Act 2011 and data protection, anti-bribery, employment and health and safety legislation;

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF THE CHARITABLE COMPANY (‘THE COMPANY’) - YEAR ENDED 31 DECEMBER 2021

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

(CONTINUED…)

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditors responsibilities. This description forms part of our Auditors’ Report.

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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Signed ________

Michael Hewett (Senior Statutory Auditor) Peters Elworthy & Moore Salisbury House

Date: 20 January 2023

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

STATEMENT OF FINANCIAL ACTIVITIES - YEAR ENDED 31 DECEMBER, 2021 (incorporating income and expenditure account)

Notes
Income from:
2
Mission, Ministry Support and Other
Aid & development
Foxfires
Total Income
Expenditure on:
3
Mission, Ministry Support and Other
Aid & development
Foxfires
Team support costs
Pan African Mission
Founder's department
ITL department
Communications department
Total Expenditure
Net movement in funds
Total funds brought forward
16
Total funds carried forward
15		 2020
Unrestricted
funds
Restricted
funds
Total
funds
Total
funds
USD
USD
USD
USD
604,315
265,282
869,597
841,786
0
621,718
621,718
514,349
0
21,856
21,856
34,527
2021
604,315
908,856
1,513,171
1,390,662
57,277
367,340
424,617
358,732
0
465,961
465,961
456,169
0
41,055
41,055
18,870
276,045
0
276,045
277,124
0
0
0
0
18,750
0
18,750
12,117
185,593
0
185,593
142,484
24,533
0
24,533
8,291
562,198
874,356
1,436,554
1,273,787
42,117
34,500
76,617
116,875
69,798 127,250 197,04880,173
111,915
161,750
273,665
197,048

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 15 to 22 form part of the financial statements.

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL REGISTERED COMPANY NUMBER: 07883925

BALANCE SHEET - 31 DECEMBER, 2021

Notes
Current assets
Cash at bank and in hand
12
Debtors
14
Total current assets
Current liabilities
Creditors: amounts falling due within one year
13
Total current liabilities
Net current assets
Funds
Unrestricted funds
15
Restricted funds
15
Total funds		 2020
Unrestricted
funds
Restricted
funds
Total
funds
Total
funds
USD
USD
USD
USD
111,915
170,750
282,665
167,779
0
0
0
38,269
2021
111,915
170,750
282,665
206,048
0
9,000
9,000
9,000
0
9,000
9,000
9,000
111,915
161,750
273,665
197,048
111,915
0
111,915
69,798
0
161,750
161,750
127,250
111,915
161,750
273,665
197,048

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

These financial statements were approved and authorised for issue by the Board of Trustees and were signed on its behalf by :-

A Rutayisire - Trustee

Date: 19 January 2023

The notes on pages 15 to 22 form part of the financial statements.

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

STATEMENT OF CASH FLOWS - 31 DECEMBER, 2021

2021 2020
Cash flows from operating activities: Notes USD USD
Balance for the year (page 12) 76,617 116,875
Adjustments for :-
Exchange differences -3,187 -1,937
Working capital changes
Decrease in accounts payable 0 -17,279
(Decrease) / Increase in receivables 38,269 -38,269
Total cash generated from operations 111,699 59,390
Cash and cash equivalents at the beginning of the reporting
period		 167,779 106,452
Exchange differences 3,187 1,937
Increase in cash and cash equivalents 111,699 59,390
Cash and cash equivalents at the end of the reporting period 20 282,665 167,779

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DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER, 2021

1. ACCOUNTING POLICIES

(a) Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

The accounts have been prepared on the going concern basis which assumes that the charitable company will continue in operational existence for the foreseeable future. The validity of this assumption is based on the fact that the charity only distributes grants to partner projects in Africa after it has received funds from its supporting partners. In addition, the charity has very little by way of overhead costs and these are also met from the funds from supporting partners before remittances are made to the partner projects in Africa therefore it is appropriate for the financial statements to be prepared on the going concern basis.

The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy.

(b) Income

All income is recognized in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Any funds not utilized during the year is deferred to subsequent year.

(c) Expenditure

Liabilities are recognized as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered to AEI subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as income and/or expenditure.

(d) Creditors

These are recognized in the books when there is a contractual agreement and/or goods have been delivered or services rendered.

(f) Debtors

The Charity depends on donations from supporters. Receivables are recognized when there is evidence funds have been wired but have not been credited into the bank account.

15

DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER, 2021

1. ACCOUNTING POLICIES - Continued

g) Charitable activities

The charitable company's principle activities are as follows:

i) Mission & Ministry

This consists of support towards missions that are held across Africa by the partners in the ten teams in Africa who are part of the partnership. These missions use an approach called stratified evangelism where each strata of society within a city has a focused reach out. In addition, funds may go towards a major mission in a city that is strategic to a country or region and is usually outside the national boundaries of partner teams. In recent years these missions have included Bujumbura in Burundi and Juba in Southern Sudan, Monrovia in Liberia and Maputo in Mozambique. Funds go to directly support missions and in addition the staff that go on mission or provide the necessary infrastructure to assist teams in going on mission. Ministry also covers Peacebuilding exercises within countries and youth evangelism.

ii) Aid & development

This consists of support for a range of socially focused projects covering community needs. Examples would include programmes for the rehabilitation of prostitutes, skills training to assist in running a small enterprise, primary health clinics including immunization programmes and water and sanitation projects within very deprived communities.

h) Governance costs

This consists of all legal and other costs connected to the charitable company meeting its statutory governance obligations and includes the annual audit fee and the costs associated with the meetings of the International board of trustees (directors).

i) Taxation

The charity is exempt from corporation tax on its charitable activities.

j) Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Monies received by the charitable company are mainly restricted by both activity and country where the money is to be spent. The restrictions applied are always fulfilled but in order that the fund reporting is not broken down to an unhelpful level of detail the restricted funds have been identified at a country level only.

k) Foreign currency

The Charity's functional and presentational currency is USD.

16

DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER, 2021

2. Income as analysed per activity
Mission, Ministry Support and Other
Aid & development
Foxfires
Total Income		 2021
2020
USD
USD
869,597
841,786
621,718
514,349
21,856
34,527
1,513,171
1,390,662

Aid and development includes funds identified for third parties. See note 10 for a breakdown of incoming resources by donor country.

3. Charitable activities costs

Charitable activities costs
Mission, Ministry Support and
Other
Aid & development
Foxfires
Team support costs
Founder's department
ITL department
Communications department
Total costs in 2021
Total costs in 2020		 Direct costs
USD
400,528
465,961
41,055
276,045
18,750
168,613
24,533
1,395,484
1,203,659		 Grant
funding of
activities
(Note 4)
USD
0
0
0
0
0
0
0
0
5,453		 Support costs
(Note 5)
USD
24,089
0
0
0
0
16,980
0
41,069
64,675		 Totals
USD
424,617
465,961
41,055
276,045
18,750
185,593
24,533
1,436,554
1,273,787

4. Grants payable

Support costs
Management
costs
Finance
costs
USD
USD
Mission, Ministry Support and
Other
8,468
4,260
Aid and development
0
0
ITL department
16,980
0
Total support costs in 2021
25,448
4,260
Total support costs in 2020
18,000
38,384
Aid & development (3rd party grants)
The total grants paid to institutions during the year was as follows:		 2021
USD
0
Governance
costs
USD
11,361
0
0
11,361
8,291		 2020
USD
12,726
Totals
USD
24,089
0
16,980
41,069
64,675

5. Support costs

17

DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER, 2021

6. Balance / (deficit)

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

2021 2020
USD USD
Examiner's remuneration (Incl. pension audit - provision) 9,000 9,000
Auditors' remuneration for non audit work 0 0

7. Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.

The board of trustees is made of a number of individuals from various countries and when the board meet the costs of travel, accommodation and subsistence are met by the charitable company. Board meeting in 2021 were all online.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Charity. They consist of the International Team Leader/CEO, the International Missions' Director, and the International Operations Manager. The aggregate cost of Key Management Remuneration was $176,875 (2020 - $165,769).

8. Staff costs

Staff costs
2021 2020
USD USD
Wages and salaries 239,475 200,213
The average monthly number of employees during the year was as 7 7

No employees received emolument in excess of $79,600 (£60,000).

9. Statement of Financial Activities for year ended 31 December, 2020

Income
Mission, Ministry Support and Other
Aid & development
Foxfires
Total Income
Expenditure
Mission, Ministry Support and Other
Aid & development
Foxfires
Team support costs
Founder's department
ITL department
Communications department
Total Expenditure
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 USD
499,858
0
0
499,858
45,821
0
0
208,904
12,117
142,484
8,291
417,617
82,241
-12,443
69,798
Unrestricted
funds		 Restricted
funds
USD
376,562
495,372
18,870		 Total funds
USD
876,420
495,372
18,870
890,804 1,390,662
312,911
456,169
18,870
68,220
0
0
0		 358,732
456,169
18,870
277,124
12,117
142,484
8,291
856,170 1,273,787
34,634 116,875
92,616 80,173
127,250 197,048

18

DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

STATEMENT OF FINANCIAL ACTIVITIES - YEAR ENDED 31 DECEMBER, 2021

10. Detailed analysis of incoming resources by country

The charity received funds from partner charities located in different countries throughout the world as follows:

Country
Australia
Europe
Canada
Ireland
New Zealand
USA
Switzerland
Direct funds
Total Income		 2021
USD
661,985
696,245
60,250
49,840
119,569
90,556
11,110
22,892
3,112
11,501
609,248
502,474
0
1,248
47,897
15,906
1,513,171
1,390,662
2020
USD

11. Analysis of outgoing resources by recipient country

Country
Congo
Ethiopia
Ghana
Kenya
Malawi
Rwanda
South Africa
South Sudan
Tanzania
Uganda
Zambia
Zimbabwe
Total
Cash and cash equivalents
Barclays UK US $ Account
Creditors: amounts falling due within one year
Staff benefit fund
Accrued expenses
Debtors
Donations receivable
Total cash and cash equivalents
Barclays UK GBP Account		 48,804
136,916
107,239
132,893
93,099
199,578
85,457
18,577
44,570
43,187
56,036
24,445
990,799
183,985
98,680		 103,426
78,615
79,626
137,748
101,993
96,103
31,738
6,377
49,782
33,878
85,443
58,808
863,537
116,833
50,946
282,665 167,779
0
9,000
9,000
0		 0
9,000
9,000
38,269

12. Cash and cash equivalents

13. Creditors: amounts falling due within one year

14. Debtors

Debtors resulted from donations that had been sent on December 2020 but was credited in the bank on January 2021.

19

DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER, 2021

15. Movement in funds

Movement in funds
Unrestricted funds
General fund
Total Unrestricted fund
Restricted funds
Congo
Malawi
South Africa region
South Sudan
Community development
Mission general - includes meetings
Total Restricted funds
Total funds		 At 1.1.21
Net
movement in
funds
At 31.12.21
69,798
42,117
111,915
69,798
42,117
111,915
2,009
-2,009
0
1,530
-1,530
0
696
4,140
4,836
17,193
-12,903
4,290
0
12,486
12,486
105,822
34,315
140,137
127,250
34,500
161,750
197,048
76,617
273,665

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

Unrestricted funds
General fund
Total unrestricted funds
Restricted funds
Congo
Ethiopia
Ghana
Kenya
Malawi
Rwanda
South Africa
South Sudan
Tanzania
Uganda
Zambia
Zimbabwe
Community development (Balance transfer)
Mission general - includes meetings
Total restricted funds
Total funds		 Incoming
resources
Resources
expended
Movement in
funds
273,944
-231,827
42,117
273,944
-231,827
42,117
46,795
-48,804
-2,009
136,916
-136,916
0
107,239
-107,239
0
132,893
-132,893
0
91,569
-93,099
-1,530
199,578
-199,578
0
203,718
-199,578
4,140
17,193
-12,903
4,290
44,570
-44,570
0
43,187
-43,187
0
56,036
-56,036
0
24,445
-24,445
0
35,467
-22,981
12,486
99,622
-82,499
17,123
1,239,226
-1,204,726
34,500
1,513,170
-1,436,553
76,617

20

DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER, 2021

16. Movement in funds (2020) Net
movement in
At 1.1.20 funds At 31.12.20
Unrestricted funds/ General fund -12,443 82,241 69,798
Restricted funds
Congo 3,560 -1,551 2,009
Malawi 3,513 -1,983 1,530
South Africa region 13,946 -13,250 696
South Sudan 14,744 2,449 17,193
Community development 21,784 -21,784 -
Mission general - includes meetings 35,069 70,753 105,822
Total Restricted funds 92,616 34,634 127,250
Total funds 80,173 116,875 197,048
Net movement in funds, included in the above are as follows:
Incoming Resources Movement in
Unrestricted funds resources expended funds
General fund 229,655 -147,414 82,241
Total Unrestricted funds 229,655 -147,414 82,241
Restricted funds
Congo 101,879 -103,430 -1,551
Ghana 79,626 -79,626 -
Kenya 144,124 -144,124 -
Malawi 100,010 -101,993 -1,983
Rwanda 96,102 -96,102 -
SA 18,487 -31,737 -13,250
Tanzania 49,781 -49,781 -
Ethiopia 78,615 -78,615 -
Uganda 33,878 -33,878 -
Zimbabwe 58,808 -58,808 -
Zambia 85,442 -85,442 -
South Sudan 2,449 - 2,449
Community development (Balance transfer) -21,784 - -21,784
Team support - not country specific - - -
Mission general - includes meetings 333,590 -262,837 70,753
Foxfires - - -
Total Restricted funds 1,161,007 -1,126,373 34,634
Total funds 1,390,662 -1,273,787 116,875

17. Related party disclosures

There were no related party transactions for the years ended 31 December 2021 or 2020.

18. Contingent liability

There were no contingent liabilities at end of the year.

21

DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355

AFRICAN ENTERPRISE INTERNATIONAL

NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 DECEMBER, 2021

19. Analysis of net assets between funds Analysis of net assets between funds - current year

Current assets
Creditors due within one year		 Restricted
Funds
2021
Unrestricted
Funds
2021
Total Funds
2021
USD
USD
USD
170,750
111,915
282,665
-9,000
0
-9,000
161,750
111,915
273,665

Analysis of net assets between funds - prior year

Current assets
Creditors due within one year		 Restricted
Funds
2020
Unrestricted
Funds
2020
Total Funds
2020
USD
USD
USD
127,250
78,798
206,048
-34,634
-9,000
-43,634
92,616
69,798
162,414

20. Analysis of changes in net debt

Cash at bank and in hand At 1 January
2021
Cash flows
At 31
December
2021
USD
USD
USD
167,779
114,886
282,665
167,779
114,886
282,665

22