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. 1 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. 2 DocuSign Envelope ID: 20A6C1AB-D680-4A5C-867A-E65F95F6A355 ## **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: - Impact: what is our reason for existence? What have we succeeded in achieving, and where do we need to improve, so as to make a mark in Africa? Mark this milestone as we learn from the previous generations? - Sustainability: How do we ensure that what we have done so far is not lost? - Legacy: What does the current generation of AE members leave behind for the next? How do we mark this milestone as we learn from the previous generations? 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. 3 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. 4 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:- - 1) History and Ethos of Organization - 2) Memorandum and Articles of Association and Covenant of Partnership - 3) Personal Basis of Belief - 4) Organization's Statement of Faith (Lausanne Covenant) - 5) Trustees Legal Responsibilities - 6) Trustees Responsibilities to AE - 7) Partnership Policy and Procedures Manual - 8) Current Statutory Accounts - 9) Current Management Accounts 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. 5 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 6 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: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 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: - there is no relevant audit information of which the charitable company's examiner is unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the examiner is aware of that information. Approved by order of the board of trustees and signed by:- ________________________________ ## **A Rutayisire - Trustee** **Date:** 19 January 2023 7 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. 8 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. - the Trustees' Report has been prepared in accordance with applicable legal requirements. ## **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: - 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 statements are not in agreement with the accounting records and returns; or - certain disclosures of Trustees' remunerations specified by law 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 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. 9 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; - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; • assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; - investigated the rationale behind significant or unusual transactions; In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - enquiring of management as to actual and potential litigation and claims; - reviewing correspondence made available to us such as that with relevant regulators and the company’s - legal advisors. 10 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 11 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. 12 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. 13 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**| 14 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