REGISTERED COMPANY NUMBER= 07883925 (England and Wale5 REGISTERED CHARITY NUMBER.. 1147128 RepoRT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOR AFRICAN ENTERPRISE INTERNATIONAL
AFRICAN ENTERPRISE INTERNATIONAL CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Pag Report of the Trustses Independent Audltors. R8POrt on the Flnancl81 Statements 8-11 Statement of Fin8n¢lal Actlvltlès Balance Sheet 13 Statement of Cash Flows 14 Not88 to tho Flnanclal Statoments 15-22
AFRICAN ENTERPRISE INTERNATIONAL REPORT OF THE TRUSTEES-YEAR ENDED 31 DECEMBER 2023 Th8 Trustees of Afrlcan Enterprise Intematlonal Ith& Charity), who ar8 also dlreclor8 of the Charity for the purposes of the Companies Act. present their Annual Report together with the Charity's audited Financial Slaletnenls for the year ended 31 December 2023. We confirm that the Annual Report and Financial S1818menls of the Charity comply wrth the current statutory reouir8m8nls, the r8quir8menls of the Charitys governing (lo¢umenl 8nd the provisions of the Statement of Recommended PradiGe ISORPI, applicabl& lo chanti&s pr8parino their accounts in accord8nc& with lh8 Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (second edItn October 2019 effective 1 January 2D19. Obje¢tive5 and actlvitles Oblectlves and alms for tho publlc berbofit The obiecliv8 of African Enterpris8 International (referred lo as AE Int8mationall is lo coordinat8 grants that are receive(I frorn supporting partners and to manage their effective distribution to the ministry projects that are tnanaged by partner leatns within Africa. In addition, the objeGtive5 are trj provide oversight on good go¥ern8nce for all partners and to enable equity in the distribution of discretionary funds to partner member5 Within Africa. The trustee5 provide substantial input into the primary dir8clion and strategy relating lo the manag8m8nt. coordination of activities and focus of the partnership a5 a whole as well as (leveloping the policies and procedures that govern the partnership's operation. The Iruslees confirm that they have referred lo the guidance contained in the Charity Commission'8 general guidance on public benefit when reviewing th8 ch8ri18bl8 comp8nys aim5 and objectives and in planning its future activities. Achlevement and P8rformance of Charltable actlvltles AE Ml881on Fronts In 2023, th8re was slgnificant achievement In AE Missions. V8rSous Proelamatlon and Soc181 Actlon missions were successfully conducleLI in all our Teams except DRC. Out of these missions 4,738.508 people were collectively reached and 194.962 cotntnitted their lives to Jesu5 Christ for the first time. Out of th8 10181 people r8ach8d. 3.520,151 were reached through proc18mation vi8 mas8 m8di8 out or which 18.836 comrnitted their Iwes to Je5U5 Christ for the fir51 lime. AE has conlinu8d to employ both Ihe traditional methods for Stratified Evangelism e.g. 'Open airf in addition lo innovative methods both online based ITV, Radios. elc.) and face to face. The new m8lhod8 introduced during Covid-19 pand8mic were enhanc8d including Hom8 Based Evangelism (you visit homes and evangelism through a person known lo the family) and srnall group meetings called in church pr8mises.
AFRICAN ENTERPRISE INTERNATIONAL REPORT OF THE TRUSTEES-YEAR ENDED 31 DECEMBER 2023 AE Ml881on Fronts Icont.) 2023 ir 2022 DeCjn5 For Chrfst 4,305 2.014 324 23.858 3,308 9.326 12,895 5.773 14,315 16.250 Number Reathed DeCjns For Chrkt Number Reached 15,504 91,565 8,379 434,605 8,391 330,312 300,879 7,980 368,019 169,868 1.022 1,325 1.737.849 Team AE DRC AE Ethiopia AE Ghana AE Kenya AE Malawi AE South Africa AE Rwanda 8.220 215,301 373.280 73,403 280.296 3,S96,214 42.968 57,615 1.927 58.894 30.390 4.738.508 179 5,986 80.518 16,754 36.228 16,37a 5.685 6,352 564 6.092 20.231 194.962 AE Tanzania AE Uganda AE Zambia AE Zimbabwe AE South Sudan Total io li 12 93.148 Love Nalrobl F88tlval In Seplemb8r171h-171hl 2023. Afrlcan Ent8rprlse partn8r8d with th8 Luis Palau Association to execute one of the biggest evangelical rllovements in Kenya- The Love Nairobi Festival Mission. Over 500 laborers in the Lord's vineyard availed themselves frotn all over the wodd. to share th8 g08P81 on the slre8ts. In church88. In door-lo-door mission8. in prisons. In schoo18 8nd 8nywh8re that the Lord availe(l. This resulted lo 320.968 people being reached with the Gospel message of Je5US Christ and a harvest of 78.593 dècisions lo follow Chri81. AE International Instilute of Evangelism IAEIIEI The AEIIE wa5 officially launched on September 2. 2022 in Lusaka. Zambia Thereafter. an inaugural training was h81d with 70 participants from 12 tounlri&s where Afrir2n Enterprise has 8 national presence. The training focused on Christian Educ81ion and Academic Research in Evangelism. The AEIIE Advisory Board r8soIv8d lo begin the C8rtificate Level training in 2023 that would b8 gligned lo the strategy of equipping the church in Afric8 in evangelism and missions. multiplying local evangelists acrDSS the continent, and influencing African Theology in evangelistn and missions. 480 key leaders have alr8ady registered from the 12 AE countries within the continent, and intentional selection has been done lo ensu diversity. In 2023. through the Institute of Ev¥ngelisrn. Africgn Enterprise trained evangelists. pa51or5 and church leaders on fortnal methods of disciple tnaking, effeclive evangelism tnelhods, and eftective mission. both Ioc811y and globally. In 2023, the African Enterprise Inlern81ional Inslilule of Evangelism graduated over 40D pastors and evangelists in 10 African Gountries. 2. AE Ald & Developmont 2.1 Programs The Lord en8b18d us lo achi8v& a lot in 2023. We sincer&ly wish to regist&r our appreclation lo our prayer and financial partners for being part of the difference that African EnlerpriselAEI is making in Africa's tnission field through comtnunily Iransfortnation. A nurnber of social action initiative5 were un(lertaken across Africa courtesy of the national team5. These included Market Bas8d Sanit81ionlM8SI projèct in Rwanda, prostilul&s' r&h8bilit8tion and
AFRICAN ENTERPRISE INTERNATIONAL REPORT OF THE TRUSTEES-YEAR ENDED 31 DECEMBER 2023 Slr&el Chlldren Apprentlc&ship ProgramlSCAPI projects in Ghana. Vulnerable woman vocational skills programs in Nlalawi. Ethiopia. South Africa, Zambia & Kenya. Atlditionally. in Kenya there was on-going work through construction of a rnatemity wing at a health clinic lo ee a slutn cornmunity. Ugand8 too op8r81ed a community health clinic and ran a vocational skills program for Youth and Adoles¢ent5 Tanzania ¢arried on with a youth empowerment program while Zimbabwe irnplemented a Water, s8nilalion & Hygi&n& IWASHI project. South Sudan v48$ able lo r88ch ¢hildr8n in schools with trauma healing education. Emergency relief coupled with trauma healing ministry was extended to civil war victitns in Ethiopia and DRC-, just to mention a few in addition to other ongoing projects in the 12 countries where AE has presence in Africa. Needless to m8ntion. 811 the teams implemented Community TransformatK>n Group5 ICTGSI a5 a sustsinabilily measure for beneficiaries of Social actK>n programs. All this was accomplished with support from partners through the support offices and other international partners. 2.2 Capaclty d8V8lopment In Sepletnber 2023, AEI conducted a capacity developmenl training for senior leader5 across thè partnership. Th8 Team leaders, Social action m8nagers. Mission directors and Comrnunicalions officers rnet in Nairobi, Kenya for training on project tnanagernent and emerging trends in the donor world in the areas of safeguarding. child prot&clion, monitoring. 8valuatson and learning among others. Following this training. new template5 were (leveloped for proposal writing and reporting. This is a step forward towards cornpliance in engaging with government and institutional partners. 3.Operations 3.1 Stratsglc Plan 2024-2028 The 2019-2021 Slr81egic Plan p8riod cam8 lo a close in 2021. The impl8menl81ion focused on 7 focus areas that now form the core of our operations.. Operation5. Stratified Evangelism 8nd Discipleship, Community Transformation. Transformational Leadership Enh8nc8m&nl, Youth Empowement. Peace Building and Reconciliation. Capacity Development and Govemance. The Ch8rily partnership 18 curr8nlly working on a 5 y8ar8' Strategic Plan 2024-2028 for approval by the Intemational Council in 2025. AEI is registered a5 Charity in UK bul does evangelisrn work in Africa, currently in 12 countries. Th&s& make th& partn8rship. 3.2 Triennial International Council IICI AEI h051ed Ihelgst IC meeting in September 2022 in Lusaka Zarnbia. The IC is African Enterprise's lop decision-making organ. meeting once every three years lo review progSS and chart the path for the ministry in the the subsequent years. In 2022. the thetne of the IC was "Holding True and Pressing On". Philipp18ns 3.'13-14 and emphasised on the following critical issues.. Inspiration and Authority of the Word of God.- It Is critical that we hold true to the inspiration and authority of th8 Word of God, lo th8 Lausanne Covenant as our conststutionally enshrined Statement of faith. to the centrality of preaGhing Christ as Saviour. Lord and friend and lo the full demands of Christian di$cipl&ship. C811ing to th8 Cit188 of Afric8'. We musl also hold true to our calllng to the cities of AfHca which now number 400 Now with the population of Africa being 1.3 billion ¥vith 650A of the population under 25 years, this presents a challenge of tnonutnental proportK>ll5 because Africa is going to b8 the fulcrum of Vvorld Missv)n. Pressing On." We tllUSt therefore pre55 on to deepen and extend the work. This must mean new teams in various places around the conlinenl. It musl mean a str8nglh8ning of all the support offiGes and establishment of suGh office5.
AFRICAN ENTERPRISE INTERNATIONAL REPORT OF THE TRUSTEES-YEAR ENDED 31 DECEMBER 2023 Th8 concluslon of the IC was formulauon of resolutions that will guk18 the organizatlon for tht ntxl 3 years. The Intemational Council is the top organ of the organizalion which m88ts onc8 every 3 years. During the period it's not meeting. the International Board is mandated to make all decision5. 3.3 Flnanclal Revlew Flnanclal revlew As evldèncèd in the foures shown in the financial statem8nts of thèse accounts, thè financk81 year 2023 saw our charity end in a comfortable posilion. There w88 8 n81 deficit of $118,500 during the y8ar. Whereas we r8C8IV8d total incom8 of 1,770,145 we incurred expenditure of $ 1.888.645. The nel deficit of $118.500 incurre(l (luring the year 15 ma(le up of restrictèd funds decre8s& of $123,396 and Unrestrld funds surplus of $4,896. The reductK>n in restricted funds of $123.396 is mainly accounted for by a decrease of $32.11217%1 In income for M188ion and ministry support from $463,454 In 2022 10 $431,342 in 2023. Furth8rmor8, expenditure on Mission and rnini51ry support increased by $48.14318%1 from $607.840 in 2022 to $655,983 in 2023. There was also a reduGtion of income for foxfire5 by $69.650184%1 from $82,789 in 2022 to $13.139 In 2023. The total funds carried forward decreased lo $119,487 from $237,987 in 2022. This is tnade up of unr8stricl8d funds of $43.857 and restricted funds of $75.630. Th8 current In Income of $1,770,145 18 higher than the previous year of $ 1,634,195 with an Increase of $135.950-18%1. Income is solely rnade up of donations and legacies with funders generally responding in an exemplary tnanner to the detnands of the tninistry. to ensure that we were able to carry out the m8nd81e of Afric8n Enterpris8 Inl8rnalional. Expenditure for the year increased by $218,722113%1 from $1,689,873 in 2022 to $1,888,645. Thls is mainly expenditure on charitable actwili85. Rosor¥88 poIIcy The trustees aim is to maintain reserves in Unre$trictÈd Funds that will be Sufficient to cover the operational costs of the organizalion for a p8riod of 60 d8ys or more. Tha Irusl888 recognize that the level of funds received is dependent in turn on the fundraising effort5 of partner5 rather than the d1ct fundraising efforts of the organizalion itself and that the flow of funds can be variable. The balance of Unrestricted Funds increased by $4,896-113%1. from $38,961 as at 31st December 2022 to US $43.857 as al December 2023. This Is mainly because of Increase in income for Missions and Ministry support by $ 114,176-124Vol from $472.188 in 2022 to $ 586.364 in the Gurrenl year However, 8xp&ndilur8 of unrestricted funds increased by $35.326-16%1 from $545,142 In 2022 to $581.468 in the current area. The Ch8rily is committ8d lo building the reserves to US $200.000 in five years. This will b8 done by annually budgeting for the re5enfe5. specific fundraising for the same and through expense control to 98ner8te savings. In ih8 budg&t for 2024. Ih&r8 is a commilmènl lo raisè $120,000 to achieve th tsrgel. May the gr8c8, favour, falth In, love and powor of God contlnue to upllft AE to gr88tsr helghts.
AFRICAN ENTERPRISE INTERNATIONAL REPORT OF THE TRUSTEES-YEAR ENDED 31 DECEMBER 2023 2.6 Structure, governance and management GovgrThing docurnent The charity is constiluled as a company limited by guarantee. as defined by the Companies Act 2006 and 15 hence controlled by its Articles of Association. Rgcruitment and appointment ol new trustees Under the Memorandum and Articles of Association and the by-laws of African Enterprise International. tnost trustees are drawn frotn mernbers of the African Enterprise International Council IICI which Is 8 group of compan188 th81 have sign8d the Cov8nanl of Partnership ICOPI and is the body thal appoints the trustee5 each three years. The IC determines the composition and metnbership of the International Board Trustees at ils triennial Tneeling. At present trustees a appointed for a three-year term 8nd m8y not serve more than Iwo consecutive terms. The appointtnenl of Iru51ees belween triennial IC meetings need5 to be ratified at the next IC meeting. The triennial rneeling. hereby referred lo as International Council IICI look place in November 2019 in Kigali- Rwanda and new trustees were appointed and the next one took place post year end in Sepl8mb8r 2022 In Zambia. African Enterprise Intamallonal is a company limlled by guarantee with the r@gist8red company number 07883925. It is registered as a charity (Charity Number 11471281. The conslilulion of the partnership provides for a triennial council tnade up of representatives of all the metnbers of the partner organizalions both within Africa and outsid8 Afric8. Each partn8r organizalion has signed th8 COP. The representatives of the partner organization are a5 defined in the by-laws of the Company and they approv& the appointment of Iru81ees each three y88rs. The make-up of the board is set out in the constitution. The board cornprises two mernbers who represent partners within Africa and two who represent partners outside Africa. In addition, there are two independent directors. the treasurer and the chairman. Th8 company Secretary may attend b08rd meetings as a non-voling m8mb8r. The International Team Leader IITLI and the founder of the organization are a150 ex-officio attendees. Non& of the trustees is remuneral&d. Induction and training of new trustees African Enterprise Intemabonal considers carefully the induction of new Iruslees 8nd ha5 prepared a board m8nu81 for new and existing trustees. Documents provided to incoming trustees comprise the following.. History and Ethos of Organizalion Memorandum and Articles of Association and Covenant of Partnership Personal Basis of Belief 4. Organiz81ion's S181em8nt of Faith ILau8anne Covenantl 5. Trustee5 Legal Responsibilities 8. Trust888 Re$ponsibilit188 to AE 7. Partnership Policy and Procedure5 Manual Current Statutory Accounts g. Current Management Accounts Trust888 ar8 advised to read through the mat8rlal thoroughly prior lo slgning the cons8nt to act as a trusteo. Wldor network The IC r8pr8s&nt8 the widèr partnership, effectivèly the stakeholders and, in accordance with the by- laws of the company. they have the right lo remove trustees and to appoint new trustees. The
AFRICAN ENTERPRISE INTERNATIONAL REPORT OF THE TRUSTEES-YEAR ENDED 31 DECEMBER 2023 trust888 may appolnt new trustees between each tenn[al meetlng. Trustees appolnted In this way neeLI to be reappointed al the next tri8nnial IC meeting. Rlsk manag8m8rit The tru$te8s have consid&r&d th& major risks lo which IhÈ charity is &xposed. The charity curr&nlly does not actively seek direct funds from donors but receives funds from members of the partnership outside Africa and prirnarily distributes funds to other tnernbers of the partnership. The charity doe5 not un(lertake the investment of fund5 that il hold5 and therefore is not exposed lo markèt fluctuations. It opÈralÈs both incomè and èxpenditure primarily in US dollars and accordingly has minimal exposure lo currency fluctuations. The trustees believe there are adequato controls in place in managing finances. Reforenco and admlnlstratlon deta115 Registered Company number.. 07883925 (England and Wal881 Registered Charity number.. 1147128 Registered office". 6 Trull Farrn Building5 Trull Tetbury England GL8 8SQ TN8tee8 The trustees who held office during the year were". A Rutsyisire G Masalakulangwa O Ochieng R Chokhotho NAAmoo C Kivengere W Herman D Ralph Company Socr8tsry.' the Trust Partn8rship Ltd Independent Auditors= Reza Motazedi and Co LLP Chart&r8d Accoun18nls 7 Bell Yard LONDON WC2A 2JR The truste&8 (who are 81s0 th8 dir8clors of African Enlerprlse Inlemalion81 for the purpos88 of company lawl are responsible for preparing the Report of the Trustees and the financial slatements in accordance with applicable law and United Kingdom Accountin9 Standards (United Kingdotn G8nerally Accepted Accounting Praclicel. Company18w rUir88 the trustees to prepare financial stat*m&nls for each financial y88r which glvt a true and fair view of tha slate of affairs of tho charitable company and of the incoming resources
AFRICAN ÉNTERPRI6E IMTeRNATIONAL IIEPORT OF TIIE TRUSTEES- YEAR ENDeD Ji DECEMBER Z123 •nd wpIK4¢knn ol rqwurt••. h¢ludlng th• Inc• ?Ip•ndiiur•. ollho ¢h•ihBbl• c¢mpAny foTlh•t g•l•¢t acCn11n9 polkles And IhBn apply ihvm ¢On¥IentsY'. ob[¥• lh• m8ihods princ&p8 In Ihg Chttfiiy SORP", m•k• iudgMnnts e$llm810s thlli ftrq reaona>l• •nd Pfud•ni'. pr•pNrn th• fin$nci81 slAlemenlS on tho goino COnM bth•l• unl•ts$ 4 li Inbpproprwto pr•sfft• th• ch•r•¥ comp•nYtru kn busln•M. Th• w¢e•B r•spon$lb10 fot kewing proper Accounllng recttrds whlrh dbckis• r?8SQh8bl •cGur4ty Ji •ny time Iho finofiual POBiln of itt• ¢tt4riiab1• company lo ènwbl• thqm lo en5UW• Lh•l lh• nt14n¢lil ii•i•meni? ctyTrplywllh Ihe CornpaDl•& A¢1 2006. They •ro thlso rè5pontsib for 8ofo0tr•1rtg Ihfr 88S•ts ol Iho ¢hafli8b16 compBny Bnd heD¢• lor ro860nabl8 61èPS forth• prnwon and doiedlon of Ir8ud and olh•r irngul•rtl108. f8ro9 thB InJ51é&5 are Bw810. thofe no raV3rtt aud InlemiAibn olwhlch the ¢hariiable tOmpan8 exominr is unaw8re.' and tm trusi•es h&ve token all $18p$ Imal ih•y oughl iake¥s to mDk¥ thqmselv85 awaro 0¢ any r•t*¥#ni •udlt Inform8iion and to estaDVtsh thal the èxamher Jwarfj of Ihal Inlomatknn. Apprnvod byorder ol the b08rd oi vusiees and ¥lgned by.. 4e D•t•'. 31/¥y/kn¥
AFRICAN ENTERPRISE INTERNATIONAL INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF THE CHARITABLE COMPANY I'THE COMPANY'I-YEAR ENDED 31 DECEMBER 2023 OPINION We have audited the financial staleTnents of African Enterprise Intemational (the Charityl for the year ended 31 December 2023 comprising the Statem&nt of Financial Activities, Balance Sheet, Sl8lement of Cash Flows and the relaleLI notes. incluLling a surnrnary of the significant accounting policies. The financial porting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standard8. including FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Gener8lly Accepted Accounting Praclicel- In our opinion the financial statements.. give a true and fair view of the stste of the charitable companls affairs as at 31 December 2023 and of ils incoming resources and application of resources, including its incotne and expenditure for the year th8n ended.. hav8 been properly prepared in accordanc8 with United Kingdom Generally Acc8Pt8d Accounting Practice.. and have been pr8p8red in accordance with the r8quirem8nls of the Companies Act 2006. BASIS OF OPINION We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our respon8ibilitl88 under thos8 stsndard8 8r8 further d88cribed in the Auditols responsibilities for the audit of the financial $18lemenls section of our report. We are independenl of the charitable company in accordance with the ethical requiremÈnlS that are rÈlÈvanl to our aijdit of the financial slalemenls 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 b81ieve that the audit 8vidence we hav8 obtain8d is sufficient and approprfate to provKle a basis for our opinion. CONCLUSIONS RELATING TO GOING CONCERN In auditing the f1nancial statements, we hav& concluded that the Trusle88' use of th& going concern basis of accounting in Ihe preparation of the financial 51aleMenls 15 appropriate. Based on the work we have perfortned," we have not identified any tnalerial uncertainties relating to events or CDnditions that. Individually or collectively, may cast significant doubt on the ch8ri18ble company's ability to ontinue as a going ¢onGern for a period of at least twelve tnonlhs from when the financial 51alernents are authoris8d for issue. Our responsibilllies and the respon8ibillti88 of the Trustees with r88pect to going concem are described in the relevant soctions of this report. OTHER INFORMATION The other information comprises th8 information included in the Annual R8POrt oth&r than th8 financial statements and our Auditors, Report thereon. Tho Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information 8nd, except lo th8 exlenl otherwise explicitly slated in our report. W8 do not express any form of a55ur8nce conclusion thereon. Our responsibility is lo rea(1 the other information 8nd. in (loing so. consider wh81hÈr thÈ other information is materially inconsisiÈni wilh tht financi81 slalèmenls or our knowledge obtsined in the course of the audit. or otherwise appears lo be materially misslaled. If we identify such rnaterial inconsistencies or apparent material tllis51alemenls. we are required to determin& whether this gives to a m818rial mi8slalemenl In the financial slal8m8nls Ihem881ves. If. based on the work we have perforrne(l. we conclude that there is a material misslaternent of thi5 other information, we are reqUid to report that fact. We have nothing lo report in this regard.
AFRICAN ENTERPRISE INTERNATIONAL INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF THE CHARITABLE COMPANY I'THE COMPANY'I-YEAR ENDED 31 DECEMBER 2023 OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006 In our opinion. base(l on the work un(lertaken in the course of the audit.. the information given in the Trustees, Report for the financial year far whiGh the financial slal&menls are pr&par8d is con81Stenl with the financi81 stat8m&nl8. the Truste&s' Report has been prepared in accordance with applic8b18 legal requirements. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION In the light of our knowledge and understsnding of the charitable company an(1 it5 environment obt8in&d in the course of the audit, we h8v& not identified material mis81alements in the Trusl&&s' Report. We hav8 nothing lo r8POrt in respect of the following mallers in relation to which Companies Act 2006 requires u5 to report to you if. in our opinion. adequate acGounting record5 have not been kept. or retums adequate for our audit have not been recewed from branches nol visit8d by us", or the financial slaletnents a not in agreement with the accounting rÈcor(Is and tUM$,. or certain disclo5ure5 of Trustees, remunerations specified by law not m8de.' or we have not received all the Information and explanations we require for our audit.. or the Truste8S Were not 8nlitl8d lo prepare th8 fin8ncial slalem8nls In accord8nce with the small companies regime and tske advantage of the small comp8nies' exemptions in preparing the Ttustee5' Report. RESPONSIBILITIES OF TRUSTEES As explained rnore fully in the Trustees, Re5pon5ibilitses Slaternent. the Twstees (who are also the directors of the charity for the purpose5 of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a triJ8 and fair view. and for such internal control as the Trustees (letermine is necessary lo enable the preparation of finanal 51alernents that are fr88 from material misstatement, wh8lh8r du8 lo fraud or 8rror. In preparing the finanGial 51alements. the Trustees are responsible for assessing the Gharitsble company'8 ability lo continu& 88 a going concern. disclosing, as applicable. matt&rs r&laled lo golng concern and using the going concern basis of accounting unless the Trustees either intend to INuidate the charitable companys or to cease operations, or have no realistic altemative but to do so. AUDITOR'S RESPONSIBILITIES FOR THE ALIDIT OF THE FINANCIALSTATEMENTS Our objectives are to obtain reasonable assurance about whether the financial slalements as a whole are free from material misstatement, wh8lh8r du8 lo fraud or 8rror, and to Issue an Auditor's r8POrt that inclu(les our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISA5 IUKI will always detect a material tnisslalement when il exists. MIs818lem8nls can arise from fraud or error and are con8ider8d m81eri81 If. Individually or in the aggregate. they could r8a8on8bly be expected lo influence the economic decIsnS of users taken on the basis of these financial statement5. Irregularitie5, including fraud, are instances of non-compliance with law5 and regulations. We design procedur88 in line with our responsibilitl88. outlined above. lo delecl material misstst8m8nts in respect of irregul8rilies. including fraud. The extent to which our pro¢edure5 are capable of detecting irregularities, including fraud is detailed below.
AFRICAN ENTERPRISE INTERNATIONAL INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE CHARITABLE COMPANY I'THE COMPANY'I-YEAR ENDED 31 DECEMBER 2023 Our approach to identifying and assessing the risks of rnaterial rni5StateTnent in respect of irragulantl8s, including fraud and non-compliance with laws tnd regulation8. w88 as follows.. the engagement partner ensured Ihal the engagement team collectively had the appropriate ompetence, capabilities and 5ki115 10 identify or recognise non-Gompliance with appliGable laws and regulaiions., w& idenlifi8d th& laws and r&gulalion$ applicable to th8 company through discussions with directors and other management. and frorn our commerci81 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 operatlOn5 of Ihe cotnpany, includiTrg the Charities Act 2011 and dal8 prot8clion, anti-bribery. employmant and health and safety18gislalion,' 8nlified laws and regulations were communicated within the audit team regularly and th8 team remained alert to instances of non-compli8nce throughout tha audrt. We ass8ssed th8 susceplibilily of th8 company's flnanci81 statem8nts lo material mSsstat8ment, including obtsining an understsnding of how frauLI mvjht occur. by.. making enquiries of tnanagement as to where they considered there was susceptibility to fraud, their knowledg8 of actual. suspected and alleged fraud.. and Considering the internal contro15 in place to rnitigate risks of fraud and non-compliance with laws and regulations. To address th8 rlsk of fraud through management bias and ov8rrld8 of controls, w8.. P8rform8d anal5rtical procedur88 to identify any unusual or un8XP8cled r81alionships., t8818d journal entries to Identify unusual Iransactbns., assessed whether judgernents and assumptions made in determining the accounting estimates wer8 indicative of polentsal bias., Snvesugated the ratbnale b8hind $Sgnificanl or unusual transactK>ns-, In response lo the risk of irregularitie5 and non-cotnpliance with laws and regulatK)ns, we designed procedure8 which included. but were not limited lo.. agreeing financial st81emenl disclosures to underlying supporting documenlalion.. reading the minutes of me&iings of those charg8d with gov8rn8nc&-, enquiring of tnanagetnent as lo actual and potential litigation and claims., reviewing correspondence rnade available to US such as that with levant regulator5 and the company's 18gal advlsors. There a inherent limitations in our audit procedures described above. The rnore retnoved that laws and regulations ar8 from financial Iransaclions. th8 less likely It 18 that we would becom8 aw8r8 of non- compliance. Auditing standard5 also limit the audit procedure5 required lo identify non- compliance wilh18W8 and regulaiions to ènquiry of the directors and other management and the inspection of regulatory and legal correspondence. if any. Material misslal8m8nls that arise due to fraud can be harder lo d818ct than th088 that arise from 8rror 5 they may involve (leliberate concealment or collusion. A further description of our responsibilities for the audit of the financial 5talementS is located on the Financial Reporting Council's ¥vebsile al.. www.lrc.or .ukl3udilors responsibilities. This description forms part of our Auditors, Report.
AFRICAN ENTERPRISE INTERNATIONAL INDEPENDENT AUDITORS. REPORT TO THE TRUSTEES OF THE CHARITABLE COMPANY I'THE COMPANY'I-YEAR ENDED 31 DECEMBER 2023 USE OF OUR REPORT Thi5 report 15 ma(le solely lo the Charitable Company'5 rnembers. as a body. in aOr(lanCe with Chapter 3 of Part 16 of th8 Comp8ni88 Act 2006.our audit work has been undertak8n so that we might slate lo the charitsble companls members those rnatters we are required to slate lo Ihern in an Auditorfs report and for no other purpose. To the fullest extent permitted by law. we do not accept or a88um8 responsibility to anyone other than the charitable company and Ils m8mb8rs, as a body, for our audit work. for this report. or for the opinions we have forme(I Slgned: R8za Motazodl IS8nlor Statutory Audltorl Reza Motazedi aThd Co. LLP LONDON Date= 31.5.2024
AFRICAN ENTERPRISE INTERNATIONAL STATEMENT OF FINANCIAL ACTIVITIES- YEAR ENDED 31 DECEMBER, 2023 Ilncorporating income and expenditure attourbti Unrestrlcted funds USD 2023 Rostrlcted funds USD Total fuThds USD 2022 Total funds USD Notes Incorne from.. M18sion. Ministry Support and Other Aid & development Foxfir88 Total Income 586,384 431,342 739.300 13.139 1.183,781 1,017,706 739,300 13,139 1,770.145 935,642 615.764 82.789 1,634,195 586,364 Expèndlture on: Mission. Ministry Support and Other Aid & developtnent Foxfires Team support costs Foun(lerfs (lepartment ITL department Communi¢ation5 department Total Expendlture 655.983 607,867 43.327 655,983 607,867 43,327 319,135 15,600 197,908 48,825 617.078 481,449 35.442 328.754 16.175 161,728 29.247 319.135 15.600 197,908 48.825 581.468 1,307,177 1,888,645 1.669.873 Nèt movement In funds 4,896 -123,396 -118.500 -35,878 Totsl fund5 brought forward Total funds carried forward 16 15 38.961 43,B57 199,026 75,630 237,987 119,487 273,665 237,987 The Slalement of Financial Activities includes all g8ins and105ses recogni5ed in the year. The note5 on pages 15 10 22 fomi part of the financial Statements. 12
AFRICAII ENTERPR15È INTEHNATIONAL XIOI¥TtIllD COllPAt+Y NUMOQR.. O711J•26 iIALANCe oprEeT- at DECEMBeR W23 ur•IfIe1•d Ind 2123 R••trlct•d fynd• UOD Totil lund• uso TOtl USD C•&h M bHnK gr In 0oblQfS Yotsl ¢uir•Tht ••••t 12 14 43.857 129.728 17J,SO5 291.7 43.8$7 t29.728 t73.5B$ 291.INJ7 Creortars. #moufils t?Msn9 du•ib 13 54.098 54.098 Sd.09• 53.020 $3.020 54.098 43,B57 75.63 110.467 237.g87 FThd$ Uhrn$trtct•LI R•tt+¢ièd fund 43,857 4J,9S7 75.530 119,487 38,961 195.026 237.507 75,630 75,630 T•tal lund• 43.8S7 The Trn81•e$ ihelr Iispon$iblllts foi Compln0 whh requtrimgn ol th• Act lth iespeci ré¢pid$ piepaiutsn stst0rn•nis. Th4$e nnBncial SLMnIS have b¢*n pr•paT•d ITr aGcoiaAnce Wllh the P>vlon$ •pplkJb la thdfiLAe ompanK?s subClIte small Compan. ieoime. Th•so fin&ncl•l $krneI wer8 &ppitsved and auknDn5ed Lsyw bythe Board ol and waro 519nfjd OD lis behall by_." D•t•: /itya/ ThE OTr pBgèi 15to purtatth8 finBnchylAl&i•mOnti.
AFRICAN ENTERPRISE INTERNATIONAL STATEMENT OF CASH FLOWS- 31 DECEMBER 2023 As rostated Cash tlows from operating actNlties: Notes 2023 2022 USD USD Balance for the year Ipage 121 -118,500 -35,678 Adjustments for... Exchange drfferences Working capital change5 IDacrea8eylncrease in creditors 412 -21.159 1.078 -181.416 Total cash genorat8d from operatlons .117,834 .238,253 999 Cash and cash equivalents at the beginning of the reporbng period Exchang& dlft8r8nc88 Increase in cash and cash equwalents 291.007 508,101 412 21,159 -117,834 -238,253 C88h and cash 8qulv8lents at th8 end of th8 reportlng perlod 173,585 291,007
AFRICAN ENTERPRISE INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS-31 DECEMBER 2023 ACCOUNTING POLICIES lal Basls of preparlng the finan¢lal statements The financial statemenls of the charitsble cornpany. which 15 3 public benefit entity under FRS 102. have been prepared in 8ccordÈnce with the Charitiès SORP IFRS 1021'Actounling and Rèporting by Charities". Statement of Recommended Practice applicable to ch8rilies preparing their accounts in 8ccordanc8 with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffectDie 1 January 2D191'. Financial Reporting Standard 102'Th8 Financial Reporting Standard applicable In th8 UK and Republic of Ireland, and the Companies Act 2006. Tha accounts have been prepared on the going concern basis which assumes that the charitsble company will continue in operational existence for the foreseeable future. The validity of thi5 assumption is based on the fact that the charity only dislribules grants to partn8r projects in Africa after it has r8c&ived funds from ils supporting partners. In addition, the charity h8s very little by w8y of overhead costs antl Ihe5e are also Met from the funds from supporting partners before remillances are made to the partner projects in Africa therefore it is appropriatè for the financial ststemenls lo be prepared on the going concern basis. The charlty meets the deflnilion of a publlc beneflt entity under FRS 102. Assets and Ilabilitl88 ar& initlally recognised al historic cost or transaction value unless otherwise ststed in the relevant accounting policy. Ibl Income All income 1$ recognised In the Statement of Flnancial Aclivfties onc8 the charity has entitlement to the funds, is probable that the income will be received. 8nd the amount can be measured reliably. Any funds not ulilised during the year is deferred lo subsequent year. Icl Exp8ndlture Liabilities 8r8 recognised as expenditure as soon as there is a legal or conslwcliwe obligalion committing tho charity lo that expenditure. il is probable that 3 transfer of economic benefits will be qUired in settlernent and the amount of th8 obligation can be measured reliably. Expenditure 18 8ccount8d for on an accruals bas18 and ha5 been clas5ifie(l un(ler hea(ling5 Ihal aggregate all cost related to the category. Where costs cannot be directly attributed to Particular h&adings, thèy have been allocated to activities on a basis consistent with thè use of resources. Grants offer8d lo AEI sublecl lo conditbns whlch hav8 not b88n m81 at th8 year-8nd date 8r8 noted as a commitment but not accrued a5 income andlor expenditure. Idl Credltor8 Th888 are recognised In the books when Ih8r8 Is a contractual agr88menl 8ndlor goods have been d8liv8r8d or services rendered. Debtors The Ch8rily depends on donatlons from supporters. R8ceivab18s ar& r&cognls8d when there are evldence funds have been wired but have not been credited into the bank account. 15
AFRICAN ENTERPRISE INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS-31 DECEMBER 2023 ACCOUNTING POLICIES . Continued Charitable actlvlt185 The charitsble companvs principal aclivitie5 are as follows.. M1881on & Mln18try Th18 consists of support towards missions that ar8 held acros8 Africa by the partners in the 12 teams in Africa who are part of the p8rtnership. These missions use an appro8ch called slralified evangelism where each 5trala of society within a city has a focused reach out. In additiDll. funds tnay go towards a major mission In 8 city that Is strategic 10 8 country or region and Is usually outside the national boundaries of partner team5. In recent years these tnis5ions have included Bujumbura in Burundi and Juba In South8rn Sudan. Monrovia in Liberia and Maputo in Mozambiqu8. Fund8 go lo directly support missions and in addition the staff that go on rnission or provide the necessary infra51ruclure to assist teams in going on mission. Ministry also covers Peacebuilding exercises Within countries and youth evangelism. ill Aid & development This consists of support for a range of socially focused projects covering community needs. Example5 would include programs for the r8h8bilitslion of proslilut8S. 8kills training to assist In running a small enterprise. primary health clinics including immunization programs and water and sanilalion projects within very d8priv&d communitiès. gl Governance costs Thi5 consi51s of all legal and other costs connected to the chari18ble company meeting its ststulory governance obligations and includes the annual audil fee and the costs associal&d with the meetings of the intematsonal board of Iruslees Idirectorsl. Taxatlon The charty is exempt from corporation lax on its tharilable activiti88. Fund accountlng Unreslricled funds can be used in accordance with the charitable objectives at Ihe discretion of the trustees. RestriGted funds Gan only be used for partiGular restricted purposes within the objeG15 of the Gharity. Restridion5 ar188 when sp8cified by the donor or when funds are raised for partlcular r8slrlcted purp08es. Monies received by the charilable cotnpany a rnainly restricted by both activity and country where the tnoney 18 lo be spent. The restrictions 8pplied are always fulfilled bul in order that the fund r8POrting is not broken down to an unhelpful level of detail the restricted funds have been identified at a Gounlry level only. Forelgn currency The Charity's functional and pres8nlational currency is USD. 16
AFRICAN ENTERPRISE INTERNATIONAL NOTES TOTHE FINANCIAL STATEMENTS- YEAR ENDED 31 DEceMBER 2023 2. Incorne as analysed per activity 2023 USD 1.017.706 739,300 13.139 2022 USD 935.642 615.764 82.789 Mission. Ministry Support and Other Aid & development Foxfires Total Incom8 1.770,145 1.634,195 Aid and d8v&lopment includ& funds id&nlrfied for third parties. S&& note 10 for a brèakdown of incomlng resources by donor country. Charftable actlvltles costs Support Go$ts INote 51 USD Charltable actl¥ltl88 C08t8 Dlrect Costs Totals USD LISD Mission. Ministry Support and Other Aid & development Foxfire5 T8am support costs Founderfs department 655.983 655.983 607.8f 7 43.327 319.135 15.600 607.867 43.327 319,135 15.600 ITL department CommunicatlQll5 department 197,908 197,908 48.825 48.825 Total cost5 in 2023 1.839,820 48.825 1.888.645 Total c08t8 In 2022 1,840,626 29,247 1,669.873 Grants payable 2023 USD 2022 uso The totsl grants paid lo institutions during the year was as follows.. Aid & development13rd party grants) Support costs Managornent C08t8 Flnance Governanco cost8 CO8t8 Totsl8 USD USD uso USD Mission. Ministy Support and other 26.991 6.256 15.578 48.825 Total support costs In 2023 26,991 6,256 15,578 48,825 Total 8UPPOrt C08ts In 2022 17,943 7,229 4,075 29,247 17
AFRICAN ENTERPRISE INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS-YEAR ENDED 31 DECEMBER 2023 Balance I Ideficitl Met incofflellexpentliturel is slated after chargingllcreditingl.. 2023 USD 8.500 2022 USD Auditors Remuneration 9.000 Tru$t888' r•muneratlon and ben•flts There were no trustees, retnuneration or other benefits for the year ended 31 Decetnber 2023 nor for the year ended 31 December 2022. The board of trustees is made of a numb&r of individua18 from various countri88 and when th& board meet th& costs of travel. accornmodalion and subsistence are mel by the charitable company. Board meeting in 2023 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 L&ad&rlCEO, the Int&rnational Missions, Director. and the International Operations Manager. The aggregate cost of K8y Management Retnijneralion was $203,93412022- $185,314). 2023 2022 USD 251,404 Staff costs USD 260.651 Wages and salaries The averag8 monthly number of employees during the year was as No employees receive(l ernolumenls in excess of $80.13612022- $80,136). Statement of Flnanclal Actlvltl88 for yoar ended 31 Docombor 2022 Unrestrlcted funds R68trlct8d lunds Incorne Total funds USD 472.188 uso 463.454 615.764 82,789 USD Mi55i9n. Ministry Support and Olher Aid & developtnent Foxfires 935,642 615,764 82.789 Total Income 472.188 1.162.007 1.634.195 Expondlture Mission. Min181ry Support and other Ald & development Foxfires 9.238 607,840 481,449 35,442 617,078 481.449 35.442 328,754 16,175 161.728 29.247 1,669,873 Team support Gosts FounLlerfs department ITL department Cornrnunicalion5 department Total Expèndltu 328.754 16.175 161.728 29,247 545.142 1.124,731 Net mov8ment In funds -72,9S4 37.276 -35.678 Reconcili81ion of funds Tatal fund5 brought forward Total funds carried forward 111.915 38,961 161,750 199,026 273.665 237,987 18
AFRICAN ENTERPRISE INTERNATIONAL STATEMENT OF FINANCIAL ACTIVITIES- YEAR ENDED 310ECEMBER 2023 Detaileil analysis of illGoming resources by country The charity received funds frotn partner charities located in difterent countries throughout thè Wor as follows.. 2023 2022 USD Country Australia Europe Canada Irèland USD 618.196 38.583 194.308 8,922 683.863 71.134 173.376 18,572 New Zealand USA Direct funds Total Income 707,176 202,960 1.770.145 623,950 63.300 1.634.195 Analy818 of outgolng r8sourco8 by r8clpl8nt Country Ctsuntry Congo Elhiop Ghana Kenya Malawi Rwanda South Afrif 32.707 88.623 82,188 140.438 135.847 193.720 74.102 55.825 88.119 78,194 95.749 71,549 1.135,041 48.633 68,767 90,980 107.814 87,340 197.370 54.291 31.675 59,312 59,769 243.526 34.065 1.083.542 South Sudan Tanzania Uganda Zambia Zimbabwa Total 12. Cash and ¢a8h equlvalonts 2023 2022 uso USD Barclay5 UK US $ Accounts Barclays UK GBP Accounts Enweallh US$ S8ving Accounts Totsl ca8h and cash egulvalent8 62.214 72.371 134.243 156.764 173585 13. ¢reditor5= amounts falling due within one year 2023 USD 2022 uso staff b8n8fi1 fund Accrued expenses 40.094 14.004 54,098 35.020 18,000 53,020 Staff Ben8flt Fund creditors relate to contribution by Stsff members not yet ragislered with th8 Fund Managers- Enw8allh Limited 19
AFRICAN ENTERPRISE INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS-YEAR ENDED 31 DECEMBER 2023 14. Debtors No debtors for 202312022 Nil) 15. Movernent in fund5 Atl.1.23 Net movem8nt in funds At 31.12.23 Unr8strl¢tod funds General fund 38.961 4.896 43,857 Total Unrestricted fund 38.961 4,896 43.857 R88trlctod funds South Africa wion South Sudan 1.079 41,996 32.487 -1.079 -14,673 -28,e98 -78,848 27,323 3,791 44,516 Community d8v8lopm8nl Mission 98n8ral- Includes meetings 123.464 Total Restricted fund5 199.026 .123,396 75,630 Total fund8 237,987 -118,500 119.487 Net movement in funds, included in the above are as follows= Incoming resour¢88 Resources expendod -374,319 -374,319 Movement in funds Unrestrlct8d fund8 Gen8ral fund 379.215 379,215 4.896 4,896 Total unrestrlcted funds Restricted funds Congo Ethiopia Ghana Kenya Malawi Rwanda South Africa South Sudan Tanzania 32,707 88,623 82.168 140.438 135.847 193.720 73.024 43.153 88,119 78.194 95.749 71.549 3.976 265.863 -32,707 -86,623 -82.168 -140.438 -135.847 -193.720 -74.103 -57,826 -88,119 -78.194 -95.749 -71.549 -32.672 -344.611 -1.079 -14,673 Uganda Zambia Zimbabwe Community d8velopment (Balance transfer) M18sion 98n8ral includes meetings Totsl restrlcted funds -28.696 -78.948 1,390,930 .1.514.326 -123,396 Totsl lunds 1,770,145 -1,888,645 .118,500 20
AFRICAN ENTERPRISE INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS-YEAR ENDED 31 DECEMBER 2023 At1.1.22 Not movement in funds At 31.12.22 16. Movement in funds120221 Unrestrlcted funds G8n8ral fund Total Unr08trlctod fund8 111,915 -72,954 38,961 .72,954 38,961 Rostrlcted funds South Africa region South Sudan Community development Mission general- includes tneelings Total R8Strlct8d fund8 4,836 4.290 12.487 140,137 -3,757 37.706 20.000 -16.673 1,D79 41.996 32.487 123.464 161,750 37,276 199,026 Total funds 273,665 45,678 237,987 Net movement in funds. included in the above are as follows= Incomlng Resources Movement li Unrestricted fund5 General fund re$ource$ expended -206,513 fund$ -72.954 133.559 Total Unrestricted fund$ 133,559 -206,513 .72,954 Rfy$tri¢ted fund$ Congo Ethiopia Ghana 48,633 68,767 90,980 107,814 87,340 197.370 50.534 69,381 59,312 59.769 243.526 34,065 50,665 332,480 48.633 48.7eT -90.980 -107.814 -87.340 -197.370 -54.291 -31.675 -59.312 -59.769 -243.526 -34.065 -30.ee5 -349.153 Kenya Malawi Rwanda South Africa -3.757 37,706 South Sudan Tanzania Uganda Zambra Zimbabwe Community dev8lopmenl18alance transf8rl Mission general- Includ88 meetings 20,000 -16,673 Total Restrlcted funds 1,500.636 .1,463,380 37,726 Total fund$ 1,634.195 .1,669,873 5,678 17. Related party dl8closuro8 There war8 no related party transactions for the years ended 31 December 2023 or 2022. 18. Contingent liability The were no contingent liabilities at ènd of the year. 21
AFRICAN ENTERPRISE INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS-YEAR ENDED 31 DECEMBER2023 19. Analy515 of net assets between funds An8lys18 of net a88ets between funds current year Rostrlcted Funds 2023 Unr6strlct8d Fund5 2023 Total Fund$ 2023 VSD USD USD Current assets 129.728 43.857 173,585 Creditors due within one year -54.098 .54,098 7S,630 43,857 119,487 Analysi5 of net a$$et$ between funds prior year R08trlctsd Funds 2022 USD Unre8trl¢t8d Funds 2022 USD Total Fund8 USD Current as88ls 252.046 38.981 291,007 .53,020 237,987 Creditors due within one year -53,020 199,026 38.961 20. Analysis of changes in net debt At1 January Cash flow5 USD At31 December 2023 uso 2023 USD Cash al bank and in hand 291.007 291,007 -117.422 -117.422 173,585 173,585 22