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2021-04-30-accounts

STAKEHOLDER DEMOCRACY NETWORK (Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2021

Company No: 05101121 Charity No: 1148143

STAKEHOLDER DEMOCRACY NETWORK (Limited by guarantee)

REPORT AND ACCOUNTS

C O N T E N T S

STATUTORY INFORMATION

Page
Directors’ and Trustees’ Report 2 - 6
Independent Auditor’s Report 7 - 9
Consolidated Statement of Financial Activities 10
Statement of Financial Activities 11
Group Balance Sheet 12
Statement of Cash Flows and Consolidated Statement of Cash Flows 13
Notes to the Accounts 14 - 30

1

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 APRIL 2021

The trustees are pleased to present their annual consolidated directors’ and trustees report together with the financial statements of the Stakeholder Democracy Network (the ‘Charity’ or ‘Company’) and its subsidiaries (together the ‘Group’) for the year ended 30[th] April 2021, which are also prepared to meet the requirements for a directors’ report and Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statements 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).

OUR PURPOSE AND ACTIVITIES

Our vision is one of a new global economic and social contract, which corrects the asymmetry of power in negotiating social contracts between stakeholders in the global economy. Our vision is one that ensures basic rights – including economic and social development – are not sacrificed in one part of the world to the benefit of another.

Our mission is to support the efforts of those affected by extractive industries and weak governance through rights based community empowerment. We strive to protect human rights and demand responsive governance.

The Stakeholder Democracy Network group supports the efforts of those affected by the extractives industry and weak governance. We work with governments, companies, communities and other stakeholders to ensure the promotion and protection of human rights. The group has operated for over 15 years in the Niger Delta and has offices in Port Harcourt (Nigeria) and London (UK). Our work is underpinned by strong relationships with stakeholders across the region, our local presence, and a focus on research and political economy analysis, which helps us to understand and respond to the constantly shifting dynamics of the Niger Delta with work that has meaningful benefit for the people of the region.

The group has two subsidiaries that are registered in Nigeria whose activity is to aid Stakeholder Democracy Network to carry out its objectives in Nigeria. The first of these is Citizens Direct Network Limited, a company registered with the Corporate Affairs Commission (CAC) in the Federal Republic of Nigeria with the company number 847695. The second of these is Niger Delta Stakeholders Initiative for Community Development and Empowerment, a company registered with the Corporate Affairs Commission (CAC) in the Federal Republic of Nigeria with the company number CAC/IT/NO 73022. The SDN Board of Trustees have agreed to the closure of the Citizens Direct Network. This decision was taken as a way to streamline the structure of SDN, reduce SDN’s administrative work and so reduce SDN’s costs. The Citizens Direct Network has not been operational for a few years and so the closure of Citizens Direct Network will have no impact on the operations or future work of the SDN Group.

Achievement and activities

The group continued to gain relevance and have influence on development initiatives within the Niger Delta region. This was done through expanding its number of funding partnerships and increasing its relationships with existing funding partners. Main activities for the period under review were the implementation of alternative livelihood pilots to help prove the economy can be diversified away from the oil industry and provide economic empowerment to citizens of the Niger Delta; the setup of oil spill clean-up monitoring activities in Ogoniland; assisting the Federal Government in Nigeria to produce coordinated policy plans for development in the Niger Delta region; working with INEC to understand the lessons learnt from recent elections and how these can help improve future elections processes; working with the Ministry of Environment to promote the passing of key environmental legislation; and amplifying the voices of local communities through radio discussion to make sure their views are taken into consideration in political and development processes. The Trustees have focused on delivering sustainable impacts through programmes that provide good value for money so that donor funds can be used to maximum effect on the ground in the Niger Delta and further deepen the community engagement work that is fundamental to the group’s success.

Like most organisation around the globe, we were heavily impacted by the COVID-19 pandemic. However, we were able to implement COVID secure ways of working which meant that we could continue the operations of our work in a safe and productive manner. We were fortunate to not have any known cases of COVID related to the work that we implement. We will continue to keep a focus on the evolving risks related to the pandemic in order to manage these.

2

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

Public benefit statement

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘public benefit: running a charity (PD2). The achievements and activities above demonstrate the public benefit arising through the group’s activities.

FINANCIAL REVIEW

The Statement of Financial Activities showed a deficit of £319,914 (2020 – surplus £108,105) for the year and reserves stand at £317,361 (2020 - £637,275).

The financial position of the group was challenged, but ultimately maintained, during the reporting period as we, like most other organisations, felt the impact of the COVID-19 pandemic on the global economy and the international development sector. The group benefited from some long term funding contracts which helped ensure consistency of funding during the audited period. We also secured new funding relationships through the audited period which sets us up well to further leverage these and carry forward our fundraising momentum into future opportunities.

Principal funding sources

The main funding sources for the group are grants awarded from government agencies. During the period under review the main grant authorities were The Netherlands Embassy in Abuja, the UK Foreign, Commonwealth and Development Office, and The MacArthur Foundation.

Investment powers and policy

Under the Memorandum and Articles of Association, the group has the power to invest in any way the Trustees see fit.

Reserves policy

The Trustees consider it prudent to maintain an adequate balance of unrestricted reserves to cover the group’s contractual commitments and provide a sound base for the future. This should be equivalent to a minimum level of 2 months of the annual budget. At the 30[th] April 2021 the unrestricted reserves not invested in fixed assets totalled £195,228 (2020 – £270,063).

FUTURE ACTIVITIES

The charitable group has further built upon partnerships with the Nigerian government administration at a Federal, State and Local level and will further leverage these to amplify the voice of local communities in order for them to actively participate in their own development. The charitable group will continue to extend its community based work to help diversify the economy away from the oil industry and provide meaningful development opportunities for the citizens of the Niger Delta. The donor base will continue to be increased so that income streams are diversified which will help to reduce financial risk within the organisation. This is a time of significant change and opportunity in the Niger Delta as we move towards the next Presidential elections and therefore the group will look to capitalise on this through its long-term experience at both the grass-roots and policy level.

The SDN Board of Trustees have agreed to the closure of the Citizens Direct Network. This decision was taken as a way to streamline the structure of SDN, reduce SDN’s administrative work and so reduce SDN’s costs. The Citizens Direct Network has not been operational for a few years and so the closure of Citizens Direct Network will have no impact on the operations or future work of the SDN Group.

REFERENCE AND ADMINISTRATIVE DETAILS

Company Number: 05101121

Charity Number: 1148143

3

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

Directors and Trustees:

J D’Angelo - Chairperson Professor M Anikpo J A H Croft R J Ekperi A Holliday (resigned on 10 January 2021) I D Pedro D M Pearson

Secretary: C A Laing (appointed on 20 November 2020), B Ingle (resigned on 20 November 2020)

Senior Management: C A Laing (appointed on 20 November 2020), B Ingle (resigned on 20 November 2020)

Registered Office: The Green House, 244-254 Cambridge Heath Road, London, E2 9DA

Auditors: SKS Audit LLP, 3 Sheen Road, Richmond TW9 1AD

Bankers: Lloyds Bank Plc, Thame Branch, 13 Cornmarket Thame, Oxfordshire OX9 2BN

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Stakeholder Democracy Network is a company limited by guarantee and not having a capital divided by shares.

The company was incorporated on 14[th] April 2004 and registered as a charity on 16[th ] July 2012. It is a registered charity constituted as a limited company under the Memorandum and Articles of Association. The Charity’s registration number is 1148143 and the company registration number is 05101121.

Appointment of trustees

As set out in the Articles of Association, the Chair of the Trustees is nominated by existing Trustees. The Directors of the organisation are also the Trustees for the purposes of charity law.

The Board of Trustees has the power to appoint additional Trustees as it considers fit to do so, in line with the company’s governing documents.

The Trustees in office in the year are set out on page 3. The Trustees have no beneficial interest in the group other than as members. The Trustees are also the directors of the Parent company. All of the Trustees are members of the Parent company and guarantee to contribute £1 each in the event of a winding up.

Trustee induction and training

The Trustees maintain a good working knowledge of charity and company law and best practise through their professional and business interests. New Trustees are given copies of the Memorandum and Articles of Association

Organisation

The Board of Trustees, which comprises six members, administers the group. The Board meets periodically to review the affairs of the group and to consider strategies and operations. To facilitate activities, the Board have delegated authority, within terms of delegation approved by the Trustees, for operational matters including financial, employment and other related activities. All decisions relating to strategy and policy are made by the Board of Trustees.

Risk management

The Management Committee has conducted a review of the major risk to which the group is exposed. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the group faces.

4

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

Related parties

The Trustees have no beneficial interest in the company other than as members.

Five of the Trustees (J D’Angelo, J A H Croft, I D Pedro, Professor M Anikpo and R J Ekperi) are also Trustees of Niger Delta Stakeholders Initiative for Community Development and Empowerment which is one of Stakeholder Democracy Network’s subsidiary entities operating in Nigeria.

Pay policy for senior staff

The arrangements for setting the pay and remuneration of the group’s staff is done by the group’s Management Team and included within the company’s budgeting process. The setting of pay and remuneration for the Executive Director is approved by the Board and Directors.

Members of the Management Committee

Members of the Management Committee, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 4.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of Stakeholder Democracy Network for the purposes of company law) are responsible for preparing the preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its income and expenditure for that period. In preparing these financial statements, the Directors are required to:

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the group and the financial information included on the group’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

STATEMENT OF DISCLOSURE TO AUDITOR

So far as the Directors are aware, there is no relevant audit information of which the company’s auditors are unaware. Additionally, the Directors have taken all the necessary steps that we ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the group’s auditors are aware of that information.

5

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

AUDITORS

A resolution will be proposed at the Annual General Meeting that SKS Audit LLP be re-appointed as auditors of the Charity for the ensuing year.

SMALL COMPANIES EXEMPTION

The report of the directors has been prepared taking advantage of the small companies’ exemption of section 415A of the Companies Act 2006.

APPROVAL

This report was approved by the Board of Trustees and signed on its behalf by:

J D’Angelo CHAIRPERSON

30 March 2022

6

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

Opinion

We have audited the financial statements of Stakeholder Democracy Network for the year ended 30[th] April 2021, which comprise the Consolidated Statement of Financial Activities (Summary Income and Expenditure Account), Statement of Financial Activities (Summary Income and Expenditure Account), the Consolidated Balance Sheet, the Statement of Cash Flows and Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ 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 Stakeholder Democracy Network'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 directors 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 auditor’s report thereon. The directors are responsible for the other information. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

7

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF (Contd/)

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

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

Responsibilities of directors

As explained more fully in the directors’ responsibilities statements set out on page 13, the directors 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 directors 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 directors are responsible for assessing the group’s and 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and noncompliance with laws and regulations) comprised of: inquiries of management and the Trustees as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of Trustee meeting minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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/auditorsresponsibilities. This description forms part of our auditor’s report.

8

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF (Contd/)

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

Use of our report

This report is made solely to the 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 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

JAMES FOSKETT (Senior Statutory Auditor) for and on behalf of SKS AUDIT LLP CHARTERED ACCOUNTANTS STATUTORY AUDITOR

3 SHEEN ROAD RICHMOND TW9 1AD

30 March 2022

9

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 30 APRIL 2021

SUMMARY INCOME AND EXPENDITURE ACCOUNT

Notes
Income
Grants, donations and legacies
2
Income from charitable activities:
Grants and contracts
3
Other
Income from other trading activities:
Other
Investment income:
Bank Interest
Total income
Expenditure
Expenditure on charitable activities
6 , 18
Expenditure on trading activities
Total expenditure
Net income/(expenditure) and net movement
in funds for the year before transfers
Transfers between funds
18
Net income/(expenditure) and net movement
in funds for the year after transfers
Gains / (losses) on consolidation
Net movements of funds
Reconciliation of funds
Total funds brought forward
Total funds, carried forward
18		 Unrestricted
Funds
£
34,882
46,730
-
458
13
82,083
(127,126)
(14,174)
(141,300)
(59,217)
(50,491)
(109,708)
19,776
(89,932)
303,784
213,852		 Restricted
Funds
£
-
543,261
-
-
-
543,261
(809,395)
-
(809,395)
(266,134)
50,491
(215,643)
(14,339)
(229,982)
333,491
103,509		 Total
2021
£
34,882
589,991
-
458
13
625,344
(936,521)
(14,174)
(950,695)
(325,351)
-
(325,351)
5,437
(319,914)
637,275
317,361		 Total
2020
£
26,442
1,882,792
-
8,353
128
1,917,715
(1,750,564)
(9,159)
(1,759,723)
157,992
-
157,992
(49,887)
108,105
529,170
637,275

The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006 .

CONTINUING OPERATIONS

None of the company’s activities were acquired or discontinued during the above two financial periods.

TOTAL RECOGNISED GAINS AND LOSSES

The company has no recognised gains or losses other than the above movement in funds for the above two financial years.

The notes on pages 14 to 30 form part of these accounts.

10

(Limited by guarantee)

STAKEHOLDER DEMOCRACY NETWORK

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 30 APRIL 2021

SUMMARY INCOME AND EXPENDITURE ACCOUNT

Notes
Income
Grants, donations and legacies
2
Income from charitable activities:
Grants and contracts
3
Investment income:
Bank Interest
Income
Expenditure
Expenditure on charitable activities:
8 , 19
Total expenditure
Net income/(expenditure) and net movement in
funds for the year before transfers
Transfers between funds
Net income/(expenditure) and net movement in
funds for the year after transfers
Reconciliation of funds
Total funds brought forward
Total funds, carried forward
19		 Unrestricted
Funds
£
161,394
46,731
5		 Restricted
Funds
£
-
114,609
-		 Total
2021
£
161,394
161,340
5		 Total
2020
£
55,011
1,255,322
59
208,130 114,609 322,739 1,310,392
333,078 168,888 501,966 1,290,057
333,078 168,888 501,966 1,290,057
(124,948)
-		 (54,279)
-		 (179,227)
-		 20,335
-
(124,948)
201,122		 (54,279)
83,602		 (179,227)
284,724		 20,335
264,389
76,174 29,323 105,497 284,724

The Statement of Financial Activities also complies with the requirements for an income and expenditure account under the Companies Act 2006 .

CONTINUING OPERATIONS

None of the company’s activities were acquired or discontinued during the above two financial periods.

TOTAL RECOGNISED GAINS AND LOSSES

The company has no recognised gains or losses other than the above movement in funds for the above two financial years.

The notes on pages 14 to 30 form part of these accounts.

11

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

GROUP BALANCE SHEET

AS AT 30 APRIL 2021

Notes
FIXED ASSETS
Tangible assets
14
Investments
15
CURRENT ASSETS
Debtors
16
Cash at bank and in hand
Total Current Assets
Liabilities
Creditors falling due within one year
17
Net Current Assets/(Liabilities)
Total assets less current liabilities
Net assets
The funds of the charity:
Unrestricted funds
18 & 19
Restricted funds
18 & 19		 GROUP
2021
£
18,624
-
18,624
54,396
262,859
317,255
(18,518)
298,737
317,361
317,361
213,852
103,509
317,361		 GROUP
2020
£
33,721
-
33,721
81,871
567,138
649,009
(45,455)
603,554
637,275
637,275
303,784
333,491
637,275		 CHARITY
2021
£
4,850
9
4,859
25,106
84,184
109,290
(8,652)
100,638
105,497
105,497
76,174
29,323
105,497		 CHARITY
2020
£
7,714
9
7,723
156,804
141,322
298,126
(21,125)
277,001
284,724
284,724
201,122
83,602
284,724

The Trustees have prepared group accounts in accordance with Section 398 of the Companies Act 2006 and Section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

These accounts were approved by the Board of Directors and Trustees on 30 March 2022 and signed on its behalf by:

…………………………………………………………. J D’Angelo (Chairperson)

Company Registration No: 05101121

The notes on pages 14 to 30 form part of these accounts.

12

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

STATEMENT OF CASH FLOWS AND CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR 30[TH] APRIL 2021

Notes
Cash (outflow) / inflow in operating activities
21
Cash flows from investing activities
Interest income
Purchase of tangible fixed assets
Cash provided by / (used in) investing activities
Increase / (decrease) in cash & cash equivalents in the
year
Cash & cash equivalents at the beginning of the year
Total cash & cash equivalents at the end of the year		 GROUP
2021
£
(307,165)
13
2,873
2,886
(304,279)
567,138
262,859		 GROUP
2020
£
153,103
128
(7,997)
(7,869)
145,234
421,904
567,138		 CHARITY
2021
£
(57,054)		 CHARITY
2020
£
(58,200)
5
(90)		 59
(763)
(85) (704)
(57,139) (58,904)
141,323 200,227
84,184 141,323

13

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 APRIL 2021

1. ACCOUNTING POLICIES

1.1 Basis of preparation of accounts

The financial statements have been prepared in accordance with 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) – (Charity SORP (FRS 102) Revised), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The group has opted for an early adoption of Charity SORP (FRS 102) Revised.

Stakeholder Democracy Network meets the definition of a public benefit entity under FRS 102.

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

1.2 Preparation of accounts on a going concern basis

The Group’s Financial Statements show net deficit before gains on consolidation of £317,361 for the year and unspent reserves of £213,852. The trustees are continuing to secure further funding and consider that the group will have sufficient resources for the next 12 months and on this basis the group is a going concern.

1.3 Group financial statements

The group financial statements consolidate the accounts of Stakeholder Democracy Network (the ‘company’) and its subsidiaries, Citizens Direct Network Limited and Niger Delta Stakeholders Initiative for Community Development and Empowerments. The Directors have taken advantage of the provisions of Section 408 of the Companies Act 2006 and do not present an individual profit and loss account for the company.

1.4 Income

Income is recognised when the group has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and amount can be measured reliably.

1.5 Volunteers and donated services and facilities

Donated professional services and donated facilities are recognised as income when the group has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the group of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time of the Friends is not recognised and refers to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the group which is the amount the group would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. No such donations were received during the year.

14

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

1.6 Expenditure recognition and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Expenditure is recognised when a liability is incurred. Contractual arrangements and performance related grants are recognised as goods or services are supplied.

1.7 Allocation of support costs

Support costs are those functions that assist the work of the group but do not directly undertake charitable activities. Support costs include back office costs, finance and administration personnel, payroll and governance costs which support the group’s programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The basis on which support costs have been allocated are set out in note 6 and 8.

1.8 Funds structure

The general fund comprises those monies, which may be used toward meeting the charitable objectives of the company at the discretion of the Management Board.

The restricted funds are monies raised for, and their use restricted to, a specific purpose or donations subject to donor imposed conditions.

1.9 Tangible Fixed Assets And Depreciation

Tangible fixed assets are stated at cost less depreciation. Individual fixed assets costing £500 or more are capitalised at cost.

Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Fixtures, fittings & equipment - 20% Net book value Motor vehicle - 25% Net book value

1.10 Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.11 Cash at bank and in hand

Cash at bank and in hand includes cash deposits and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.12 Creditors and provisions

Creditors and provisions are recognised where the group has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

15

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

1.13 Financial instruments

The Trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.14 Judgement and key sources of estimation uncertainty

In the application of the group’s accounting policies, the group is required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underling assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods .

2. GRANTS, DONATIONS AND LEGACIES INCOME

GRANTS, DONATIONS AND LEGACIES INCOME
Miscellaneous donations
Nigel Delta Stakeholders Initiative for Community
Development and Empowerment
Furlough Grant		 Unrestricted
Funds
£
34,882
34,882
Unrestricted
Funds
£
140,554
20,840
161,394		 Restricted
Total
Funds
2021
£
£
-
34,882
-
34,882
Restricted
Total
Funds
2021
£
£
-
140,554
-
20,840
-
161,394
GROUP
CHARITY		 Total
2020
£
26,442
26,442
Total
2020
£
54,491
520
55,011

The donations income in 2020 totalling £26,442 for the Group and £55,011 for the Charity was attributed to unrestricted funds and £nil to restricted funds.

16

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

3. GRANTS AND CONTRACTS INCOME – GROUP

Netherlands Embassy - Environment & Governance
Netherlands Embassy - HYPREP Monitoring
Oxford Policy Management
Commonwealth Foundation
Foreign & Commonwealth Office
McArthur Foundation
PLAC (Shrinking Civil Space in the Niger Delta)
The United Nations Democracy Fund
SOAS
United Nation Organisation Drugs and Crime
DFID - Covid 19
Yar'Adua Foundation		 Unrestricted
Funds
£
-
-
29,638
-
-
-
-
-
17,092
-
-
-		 Restricted
Total
Funds
2021
£
£
122,920
122,920
89,072
89,072
-
29,638
-
-
1,567
1,567
114,929
114,929
156,994
156,994
(1,887)
(1,887)
-
17,092
33,049
33,049
-
-
26,617
26,617
543,261
589,991
GROUP		 Restricted
Total
Funds
2021
£
£
122,920
122,920
89,072
89,072
-
29,638
-
-
1,567
1,567
114,929
114,929
156,994
156,994
(1,887)
(1,887)
-
17,092
33,049
33,049
-
-
26,617
26,617
543,261
589,991
GROUP		 Total
2020
£
289,828
189,151
130,557
14,964
760,451
205,534
-
106,689
37,127
-
84,242
64,249
1,882,792
46,730 543,261 589,991

Grants and contracts income in 2020 totalling £1,882,792 consist of £167,684 unrestricted funds and £1,715,108 restricted funds.

GRANTS AND CONTRACTS INCOME – CHARITY

Oxford Policy Management
Commonwealth Foundation
Foreign & Commonwealth Office
McArthur Foundation
The United Nations Democracy Fund
SOAS		 Unrestricted
Funds
£
29,638
-
-
-
-
17,093		 Restricted
Total
Funds
2021
£
£
-
29,638
-
-
1,567
1,567
114,929
114,929
(1,887)
(1,887)
-
17,093
114,609
161,340
CHARITY		 Total
2020
£
130,556
14,964
760,451
205,534
106,689
37,127
46,731 114,609 1,255,321

Grants and contracts income in 2020 totalling £1,255,321 consist of £167,683 unrestricted funds and £1,087,638 restricted funds.

4. TAXATION

Stakeholder Democracy Network is a registered charity in the UK and its subsidiary Niger Delta Stakeholders Initiative for Community Development and Empowerments is a not-for-profit company registered in Nigeria. Therefore, both are exempt from corporation tax on income and gains to the extent they are applied to its charitable objects.

Its other Nigerian subsidiary Citizens Direct Network resumed trading as a ‘for profit’ organisation from 1 May 2018. Therefore, it is liable to Nigerian corporation tax on chargeable profit and gains from that date. There is no tax liability for the year due to losses suffered in the year.

17

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

5. NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARY

During the year, the Charity has two subsidiaries as follows:

Set out below is a summary of the subsidiary’s results before intra group adjustments for the year.

Income
Grants, donations and legacies
Income from charitable activities:
Grants and contracts
Other
Income from trading activities
Other
Investment income:
Bank Interest
Income
Expenditure
Expenditure on charitable activities
Expenditure on trading activities
Total expenditure
Net income/(expenditure) and net
movement in funds for the year
before transfers
Transfers between funds
Net income/(expenditure) and net
movement in funds for the year after
transfers
Gains / (losses) on consolidation
Net movements of funds
Reconciliation of funds
Total funds brought forward
Total funds, carried forward		 CDN
Trading
Company
(for profit)
£
-
-
-
458
-		 NDSICDE
Charitable
Subsidiary
£
116,344
428,653
-
-
8		 Total
2021
£
116,344
428,653
-
458
8
545,463
(679,141)
(14,174)
(693,315)
(147,852)
-
(147,852)
(26,534)
(174,386)
386,370
211,984		 CDN
Trading
Company
(for profit)
£
-
-
-
8,353
-		 NDSICDE
Charitable
Subsidiary
£
248,297
633,890
-
-
69		 Total
2020
£
248,297
633,890
-
8,353
69
458 545,005 8,353 882,256 890,609
-
(14,174)		 (679,141)
-		 (9,159) (734,758)
-		 (734,758)
(9,159)
(14,174) (679,141) (9,159) (734,758) (743,917)
(13,716)
-		 (134,136)
-		 (806)
-		 147,498
-		 146,692
-
(13,716)
(601)		 (134,136)
(25,933)		 (806)
(637)		 147,498
(18,325)		 146,692
(18,962)
(14,317)
14,020		 (160,069)
372,350		 (1,443)
15,454		 129,173
243,177		 127,730
258,631
(297) 212,281 14,011 372,350 386,361

18

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

6. ANALYSIS OF EXPENDITURE – GROUP

NALYSIS OF EXPENDITURE – GROUP
Basis of
allocation
Costs directly allocated to activities:
Staff costs
Direct
Consultancy
Direct
Travel and motor expenses
Direct
Premises
Direct
Other direct costs
Direct
Donations and grants (Note 10)
Direct
Support costs (Note 7)
Governance costs (Note 7)
Total resources expended		 Capacity
Building &
Awareness
Raising
£
345,955
156,694
38,691
31,377
103,106
36,003
212,837
-
924,663		 Governance
£
-
-
-
-
-
-
-
11,858		 Total
2021
£
345,955
156,694
38,691
31,377
103,106
36,003
212,837
11,858		 Total
2020
£
553,728
305,441
199,760
86,206
243,585
76,188
267,757
17,899
11,858 936,521 1,750,564

Of the £936,521 expenditure in 2021 (2020 - £1,750,550), £127,126 was charged to unrestricted funds (2020 - £197,400) and £809,395 to restricted funds (2020 - £1,553,164).

7. ANALYSIS OF SUPPORT AND GOVENANCE COSTS - GROUP

The Group initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. All the general support and governance costs have been apportioned to the various charitable activities on the basis of transactions, allocated to each activity.

General and office finance staff
Premises
Staff training and subsistence
Travel, accommodation and insurance
Professional fees
Office supplies and communications
Computer and Information technology
Depreciation
Sundry expenses
Advertising
Bank charges
Foreign exchange (gains) / loss
Entertainment
Repairs and maintenance
Audit fees		 Support
costs
£
42,119
15,194
6,357
22,462
2,338
23,687
195
10,810
31,452
-
3,748
47,721
594
6,160
-
212,837		 Governance
costs
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,858
11,858		 2021
£
42,119
15,194
6,357
22,462
2,338
23,687
195
10,810
31,452
-
3,748
47,721
594
6,160
11,858
224,695		 2020
£
68,281
23,529
18,920
60,009
8,468
19,998
3,103
17,538
27,910
500
3,938
13,015
1,199
4,166
15,068
285,642

19

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

8. ANALYSIS OF EXPENDITURE – CHARITY

NALYSIS OF EXPENDITURE – CHARITY
Basis of
allocation
Costs directly allocated to activities:
Staff costs
Direct
Consultancy
Direct
Travel and motor expenses
Direct
Premises
Direct
Other direct costs
Direct
Donations and grants (Note 10)
Direct
Support costs (Note 9)
Governance costs (Note 9)		 Nigerian
Subsidiary
£
59,343
3,043
1,404
9,159
3,942
-
21,418
-		 Capacity
Building &
Awareness
Raising
£
168,477
7,529
38,691
17,801
63,770
-
103,198
-
399,466		 Governance
£
-
-
-
-
-
-
-
4,191		 Total
2021
£
227,820
10,572
40,095
26,960
67,712
-
124,616
4,191		 Total
2020
£
428,324
202,303
212,208
62,169
218,539
30,058
124,475
11,981
98,309 4,191 501,966 1,290,057

Of the £501,966 expenditure in 2021 (2020 - £1,290,057), £333,708 was charged to unrestricted funds (2020 - £221,873) and £168,888 to restricted funds (2020 - £1,068,184).

9. ANALYSIS OF SUPPORT AND GOVENANCE COSTS – CHARITY

The Charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. All the general support and governance costs have been apportioned to the various charitable activities on the basis of a proportion of direct costs, allocated to each activity.

General and office finance staff
Premises
Staff training and subsistence
Travel, accommodation and insurance
Legal and professional fees
Office supplies and communications
Computer and Information technology
Depreciation
Sundry expenses
Advertising
Bank charges
Foreign exchange loss
Audit fees		 Support
costs
£
56,955
8,223
1,971
3,444
13
3,748
1,181
1,038
40
-
1,668
46,335
-
124,616		 Governance
costs
£
-
-
-
-
-
-
-
-
-
-
-
-
4,191
4,191		 2021
£
56,955
8,223
1,971
3,444
13
3,748
1,181
1,038
40
-
1,668
46,335
4,191
128,807		 2020
£
81,232
15,051
873
6,840
4,811
3,423
3,103
1,770
-
500
2,020
7,683
9,150
136,456

20

(Limited by guarantee)

STAKEHOLDER DEMOCRACY NETWORK

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

10. GRANTS PAYABLE

Grants payable represents grants made to institutions to support activities in the Niger Delta area.

Centre for Environment, Human Right and
Development
Nigerian Women Trust Fund
Bayelsa Non-Governmental Organisations Forum
Pax Viva Foundation
International Institute of Tropical Agriculture (IITA)
Ken Saro-Wiwa Innovation Hub Start-Ups
Bayelsa Community Rice Mill		 GROUP
2021
2020
£
£
36,003
-
-
46,130
-
10,538
-
7,699
-
985

-
5,703
-
5,133
36,003
76,188		 CHARITY
2021
2020
£
£
-
-
-
-
-
10,538
-
7,699
-
985
-
5,703
-
5,133
-
30,058		 CHARITY
2021
2020
£
£
-
-
-
-
-
10,538
-
7,699
-
985
-
5,703
-
5,133
-
30,058
30,058

11. NET INCOME / (EXPENDITURE) FOR THE YEAR

NET INCOME / (EXPENDITURE) FOR THE YEAR
This is stated after charging: 2021 2020
£ £
Depreciation 10,810 17,538
Audit fee 11,858 15,068

12. ANALYSIS OF STAFF COSTS, TRUSTEES REMUNERATION AND EXPENSES, AND COST OF KEY MANAGEMENT PERSONNEL

STAFF COSTS
Salaries
Social security
Pension		 2021
£
322,483
54,803
23,620
400,906		 2020
£
482,229
50,329
46,974
579,532

The number of employees receiving employee benefits (excluding employer national insurance and employer pension costs) in excess of £60,000 during the year are as follows:

£60,000 - £69,999 2021
number
-		 2020
number
1
- 1

The key management personnel based in the UK are the Executive Director, Chief Financial Officer and the UK Programmes Director. The key management personnel based in Nigeria are the Nigeria Country Director, Nigerian Programmes Manager and the Finance & Admin Manager. The total employee benefits of the key management personnel of the group both in the UK and Nigeria were £163,578 (2020 - £282,357).

No Trustee received any remuneration during the year (2020 - £nil). During the year, no trustees received reimbursed expenses. All Trustee meeting were held over Zoom and therefore did not incur any expense (2020 - £2,831).

21

(Limited by guarantee)

STAKEHOLDER DEMOCRACY NETWORK

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

13. STAFF NUMBERS

The average monthly number of staff employed, calculated as full time equivalent, during the year was as follows:

Direct charitable work
Administrative work
Total		 2021
14
20
34		 2020
19
19
38

14. TANGIBLE FIXED ASSETS – GROUP AND CHARITY

GROUP:
NET BOOK VALUES
Office equipment
Motor vehicle
MOVEMENTS IN YEAR
Cost
Office equipment
Motor vehicle
Depreciation
Office equipment
Motor vehicle
CHARITY:
NET BOOK VALUES
Office equipment
MOVEMENTS IN YEAR
Cost
Office equipment
Depreciation
Office equipment		 Opening
Balances
£
85,967
30,161
116,128
Opening
Balances
£
58,761
23,646
82,407
Opening
Balances
£
11,996
11,996
Opening
Balances
£
4,293
4,293		 Additions/
(Disposals)
£
(2,873)
-
(2,873)
Charge For Year /
(Elimination on
disposal)
£
10,445
9
10,454
Additions
£
90
90
Charge
For Year
£
1,474
1,474		 2021
£
12,118
6,506
18,624
Disposal/
fx difference
£
(10,632)
-
(10,632)
Impairment /
fx difference
£
(8,862)
(0)
(8,862)
2021
£
4,850
4,850
Disposals
£
(1,792)
(1,792)
Disposals
£
(324)
(324)		 2020
£
27,206
6,515
33,721
Closing
Balances
£
72,462
30,161
102,623
Closing
Balances
£
60,344
23,655
83,999
2020
£
7,702
7,702
Closing
Balances
£
10,294
10,294
Closing
Balances
£
5,444
5,444

22

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

15. FIXED ASSET INVESTMENTS – GROUP AND CHARITY

FIXED ASSET INVESTMENTS – GROUP AND CHARITY
GROUP CHARITY
2021 2020 2021 2020
£ £ £ £
Investment at cost - - 9 9

The investment shown above represents the cost of the entire issued share capital of one subsidiary undertaking, Citizens Direct Network Limited, a company incorporated in the Federal Republic of Nigeria.

The other subsidiary undertaking, Niger Delta Stakeholders Initiative for Community Development and Empowerments, is an incorporated company limited by guarantee in the Federal Republic of Nigeria. There is no share capital in a “limited by guarantee” company.

The combined results for both subsidiaries are set out in note 5.

16. DEBTORS – GROUP AND CHARITY

DEBTORS – GROUP AND CHARITY
Trade debtors and accrued income
Staff loan
Other debtors and prepayments
Amount owed by subsidiaries		 GROUP
2021
2020
£
£
50,079
78,203
94
599
4,223
3,068
-
-
54,396
81,871		 CHARITY
2021
2020
£
£
-
66,994
-
-
718
3,068
24,388
86,742
25,106
156,804
156,804

17. CREDITORS FALLING DUE WITHIN ONE YEAR – GROUP AND CHARITY

Trade creditors
Taxation and social security
Deferred income (Note 22)
Accruals
Amounts owed to subsidiaries
Other creditors		 GROUP
2021
2020
£
£
-
16,072
-
1,169
-
-
13,254
21,214
-
-
5,264
7,000
18,518
45,455		 CHARITY
2021
2020
£
£
-
-
-
-
-
-
8,652
14,125
-
-
-
7,000
8,652
21,125

23

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

18. ANALYSIS OF CHARITABLE FUNDS – GROUP

Restricted Funds:
Netherlands Embassy - Environment & Governance
Netherlands Embassy - HYPREP Monitoring
PLAC (Shrinking Civil Space in the Niger Delta)
Foreign & Commonwealth Office
McArthur Foundation
The United Nations Democracy Fund
United Nation Organisation Drugs and Crime
PLAC (COVID 19 Intervention Funds)
Yar'Adua Foundation
Total restricted funds
Unrestricted Funds:
General funds
Total Funds:		 Balance
at 01.05.20
£
54,574
147,277
-
1,567
72,286
9,749
-
37,949
10,089		 Income
£
122,920
89,072
156,994
1,567
114,929
(1,887)
33,049
-
26,617		 Expenditure
£
(192,788)
(162,163)
(156,994)
(3,134)
(157,892)
(7,862)
(33,049)
(73,146)
(36,706)		 Transfer
£
15,294
-
-
-
-
-
-
35,197
-		 Balance
at 30.04.21
£
-
74,186
-
-
29,323
-
-
-
-
333,491
303,784		 543,261
82,083		 (823,734)
(121,524)		 50,491
(50,491)		 103,509
213,852
637,275 625,344 (945,258) - 317,361

Total expenditure of £945,258 included exchange gain on consolidation of £5,437.

Transfer of £50,491 made from unrestricted funds to Netherlands Embassy- Environment & Governance and PLAC (COID 19 Intervention Funds) represents amounts of core funds used to fund the project before monies have been forwarded to the Charity by the funder.

24

(Limited by guarantee)

STAKEHOLDER DEMOCRACY NETWORK

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

18. ANALYSIS OF CHARITABLE FUNDS – GROUP (CONT/D)

Analysis of movements in funds - previous year

Restricted Funds:
Netherlands Embassy - Environment & Governance
Netherlands Embassy - HYPREP Monitoring
Commonwealth Foundation
Foreign & Commonwealth Office
McArthur Foundation
SACE
The United Nations Democracy Fund
DFID - Elections Observation
OSIWA
DFID Covid-19
Yar'Adua Foundation
Total restricted funds
Unrestricted Funds:
General funds
Total Funds:		 Balance
at 01.05.19
£
-
-
-
24,113
3,342
-
29,203
3,692
98,734
-
-		 Income
£
289,828
189,151
14,964
760,451
205,534
-
106,689
-
-
84,242
64,249		 Expenditure
£
(235,254)
(41,874)
(22,454)
(782,997)
(136,590)
-
(126,143)
(19,024)
(101,182)
(46,293)
(54,160)		 Transfer
£
-
-
7,490
-
-
-
-
15,332
2,448
-
-		 Balance
at 30.04.20
£
54,574
147,277
-
1,567
72,286
-
9,749
-
-
37,949
10,089
159,084
370,086		 1,715,108
202,607		 (1,565,971)
(243,639)		 25,270
(25,270)		 333,491
303,784
529,170 1,917,715 (1,809,610) - 637,275

Total expenditure of £1,809,610 included exchange gain on consolidation of £49,887

Transfer of £25,270 made from unrestricted funds to Commonwealth Foundation, DFID - Election Observation and OSIWA represents amounts of core funds used to fund the project before monies have been forwarded to the Charity by the funder.

19. ANALYSIS OF CHARITABLE FUNDS – CHARITY

Restricted Funds:
Foreign & Commonwealth Office
McArthur Foundation
The United Nations Democracy Fund
Total restricted funds
Unrestricted Funds:
General funds
Total unrestricted funds
Total Funds:		 Balance
at 01.05.20
£
1,567
72,286
9,749		 Income
£
1,567
114,929
(1,887)		 Expenditure
£
(3,134)
(157,892)
(7,862)		 Transfer
£
-
-
-		 Balance
at 30.04.21
£
-
29,323
-
83,602
201,122		 114,609
208,130		 (168,888)
(333,078)		 -
-		 29,323
76,174
201,122
284,724		 208,130
322,739		 (333,078)
(501,966)		 -
-		 76,174
105,497

25

(Limited by guarantee)

STAKEHOLDER DEMOCRACY NETWORK

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

19. ANALYSIS OF CHARITABLE FUNDS – CHARITY (CONT/D)

Analysis of movements in funds - previous year

Restricted Funds:
Commonwealth Foundation
Foreign & Commonwealth Office
McArthur Foundation
The United Nations Democracy Fund
Total restricted funds
Unrestricted Funds:
General funds
Total unrestricted funds
Total Funds:		 Balance
at 01.05.19
£
-
24,113
3,342
29,203		 Income
£
14,964
760,451
205,534
106,689		 Expenditure
£
(22,454)
(782,997)
(136,590)
(126,143)		 Transfer
£
7,490
-
-
-		 Balance
at 30.04.20
£
-
1,567
72,286
9,749
56,658
207,731		 1,087,638
222,754		 (1,068,184)
(221,873)		 7,490
(7,490)		 83,602
201,122
207,731
264,389		 222,754
1,310,392		 (221,873)
(1,290,057)		 (7,490)
-		 201,122
284,724

Transfer of £7,490 from unrestricted funds to Commonwealth Foundation represents amounts of core funds used to fund overspending in the project.

Description, nature and purpose of funds:

Fund

Purpose and restrictions in use

Netherlands Embassy – Environment & Governance This project combines advocacy and social accountability approaches to achieve two main objectives: 1) to promote the clean-up of the Niger Delta and prevent oil spills and gas flaring, through improved environmental regulation and enforcement. Our work includes government engagement and a public campaign to call for improved legislation (particularly the separation of environmental regulation from other aspects of oil industry regulation); promoting compliance with best practice in oil pollution response, clean-up and compensation; and improving the capacity of the Ministry of Environment to enforce regulation. SDN also supports the Bodo Mediation Initiative, which is facilitating the oil spill clean-up in Bodo community, Gokana Local Government Area. 2) to promote good governance, particularly through greater budget transparency and accountability, and working towards free and fair elections. SDN’s approach includes working directly with communities to engage with government, hold them to account, and increase citizen participation in government decision making.

Netherlands Embassy – HYPREP Monitoring

Millions of barrels of oil have been spilled in the Niger Delta, and little has been done to ensure it is properly cleaned up. This has had a severe impact on the environment, on health and on livelihoods, exacerbating development challenges in the region. This project will strengthen the ability of civil society to hold the Federal Government of Nigeria to account for a major clean-up of oil spills in the Niger Delta, focusing on the Ogoniland clean-up resulting from more than fifty years of oil spills in the region. It will do this by running an independent monitoring initiative to scrutinise the progress of the clean-up and make this information more accessible to the public. The project is to be delivered over a five-year period, implemented in parallel to the clean-up activities of HYPREP over the next five years.

26

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

19. ANALYSIS OF CHARITABLE FUNDS – CHARITY (CONT/D)

PLAC (Shrinking Civil Space in The Niger Delta)

This was a six month project aimed at increasing collective action by civil society to challenge threats and create opportunities to widen the civic space in Rivers state. It aimed to increase civil society action to test and strengthen credibility of the results collation process in upcoming off-cycle/by elections.

Foreign & Commonwealth Office Through this project, SDN aims to promote stability in the Niger Delta. Our approach combines research, consultation and the implementation of pilot projects to identify and support alternative approaches to stabilisation and development in the region. The lessons are presented to decision-makers at the state, federal and international level, to outline opportunities for scale-up and replication of the innovative approaches in their own activities and policies. The project focuses on Bayelsa, Delta and Rivers states.

McArthur Foundation This project aims to improve mutual accountability between electricity providers and consumers in Nigeria, and thereby reduce corruption in the industry. It does this through building engagement between electricity customers, distribution companies and regulators, and by promoting greater uptake of reporting mechanisms to prevent fraud. The use of radio shows, town hall meetings and social media are key components of this project. The project is being implemented in Edo and Delta states, and includes key engagements with the Benin Electricity Distribution Company (BEDC).

The United Nations Democracy Elections in Nigeria, and especially in its oil-producing Niger Delta states, have in the past been disputed and given rise to violence. One of these states, Bayelsa, held elections to choose a new governor in 2021 in what was expected to be a hotly contested election. The project aimed to minimize the risk of dispute and help to ensure the election was free, fair, and credible. It supported the Independent Nigerian Electoral Commission to train staff engaged to oversee polling in at-risk areas so their procedures were effective.

United Nation Organisation Drugs and Crime This research supported UNODC’s organised crime threat assessment for Nigeria by filling a knowledge gap in relation to the structure of cult and pirate groups, how they operate, and the profile of their members. We designed and conducted field research with individuals primarily involved, and delivered all transcripts to UNODC followed by two brief analytical reports.

PLAC(COVID19 Intervention Funds) This project supported the improved conduct of elections in the Niger Delta. It helped enable INEC, the police and other relevant actors to respond more effectively to electoral fraud and violence, through the provision of high-quality reporting and proactive engagement on observed election risks. Building on previous work by SDN and other organisations involved in observation and documenting electoral incidents in the Niger Delta, the project trained citizen observers to report on indicators of electoral fraud, violence and manipulation. Coordinating with existing civil society initiatives under the umbrella of the Civil Society Situation Room, we worked with the Armed Conflict Location & Event Database Project and Democracy Reporting International to train observers and produce high quality election observation reports.

27

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

19. ANALYSIS OF CHARITABLE FUNDS – CHARITY (CONT/D)

Yar'Adua Foundation

This project aims to contribute to the promotion of gender equality in political representation and decision-making in Rivers State, and to contribute to greater understanding of women’s status in politics across Akwa Ibom, Bayelsa and Rivers states. It involves consulting women across Rivers State on their priorities in advance of the 2021 elections and working with women’s groups to engage with electoral candidates on these policy priorities. We will also be working with the Nigeria Women’s Trust Fund to conduct research across the three states to generate original research and greater understanding of the status of women’s political engagement and the barriers they face to entering politics in the Niger Delta, and to establish a mentoring scheme for young women interested in entering politics.

20. ANALYSIS OF GROUP ASSETS BETWEEN FUNDS – GROUP AND CHARITY

GROUP
Fixed assets
Net current assets
CHARITY
Fixed assets
Net current assets		 Unrestricted
funds
£
18,624
195,228
213,852
4,850
71,324
76,174		 Restricted
funds
£
-
103,509
103,509
-
29,323
29,323		 Total
2021
£
18,624
298,737
317,361
4,850
100,647
105,497		 Total
2020
£
33,721
603,554
637,275
7,702
277,022
284,724
Analysis of net assets between funds - previous year
GROUP
Unrestricted
funds
£
Fixed assets
33,721
Net current assets
270,063
303,784
CHARITY
Fixed assets
7,702
Net current assets
193,420
201,122		 Restricted
funds
£
-
333,491
333,491
-
83,602
83,602		 Total
2020
£
33,721
603,554
637,275
7,702
277,022
284,724		 Total
2019
£
44,398
484,772
529,170
8,719
255,670
264,389

28

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

21. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES – GROUP AND CHARITY

Net movement in funds
Add back depreciation/loss on disposal/impairment
Deduct interest income shown in investment activities
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash (outflow) / inflow in operating activities
DEFERRED INCOME – GROUP AND CHARITY
Balance as at 1st May 2020
Amount released to income in the year
Amount deferred in the year
Balance as at 30th April 2021		 GROUP
2021
2020
£
£
(319,914)
108,105
12,224
18,674
(13)
(128)
27,475
213,237
(26,937)
(186,785)
(307,165)
153,103
2021
2020
£
£
-
164,349
-
(164,349)
-
-
~~-~~
~~-~~
GROUP		 CHARITY
2021
2020
£
£
(179,227)
20,335
2,953
1,769
(5)
(59)
131,698
121,231
(12,473)
(201,476)
(57,054)
(58,200)
2021
2020
£
£
-
164,349
-
(164,349)
-
-
-
-
CHARITY		 CHARITY
2021
2020
£
£
(179,227)
20,335
2,953
1,769
(5)
(59)
131,698
121,231
(12,473)
(201,476)
(57,054)
(58,200)
2021
2020
£
£
-
164,349
-
(164,349)
-
-
-
-
CHARITY
-

22. DEFERRED INCOME – GROUP AND CHARITY

There is no deferred income at the year end.

Last year’s deferred income represents grant income received from The Foreign & Commonwealth Office totalling £164,349. The grant was deferred at the year end as it relates to project expenses specifically for the period after year end.

23. SHARE CAPITAL

The Company is a company limited by guarantee and does not have share capital divided by shares. Under the terms of the Memorandum and Articles of Association each member is liable to contribute a sum not exceeding £1.00 in the event of the company being wound up.

24. POST BALANCE SHEET EVENTS

Effect of COVID-19

During the year, the Coronavirus (COVID-19) pandemic had spread globally resulting in a significant impact on organisations worldwide. As a result, some organisation operations have been restricted. The Charity continues to operate using alternative methods and amend its working practices as appropriate.

The trustees are unable to evaluate the overall financial impact on the Charity at present. Hence financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The trustees are continuing to monitor, assess and act to the current changing environment in order to position the Charity to ensure its future success, as outlined on page 4 of the trustees’ report.

29

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2021

Citizens Direct Network (CDN) Closure

The SDN Board of Trustees agreed to the closure of the Citizens Direct Network which was one of SDN’s two legal entities that operated in Nigeria. This decision was taken as a way to streamline the structure of SDN, reduce SDN’s administrative work and so reduce SDN’s costs. The Citizens Direct Network has not been operational for a few years and so the closure of Citizens Direct Network will have no impact on the operations or future work of the SDN Group.

30