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2022-04-30-accounts

STAKEHOLDER DEMOCRACY NETWORK (Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

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 - 31

1

(Limited by guarantee)

STAKEHOLDER DEMOCRACY NETWORK

DIRECTORS’ AND TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 APRIL 2022

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 2022, 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 rightsbased 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 18 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 had two subsidiaries that were registered in Nigeria whose activities were to aid Stakeholder Democracy Network to carry out its objectives in Nigeria, although the process of closure for the second of these concluded this year in July 2021. The first 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 second of these was Citizens Direct Network Limited, a company registered with the Corporate Affairs Commission (CAC) in the Federal Republic of Nigeria with the company number 847695. As noted in last year’s report, the SDN Board of Trustees 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 had not been operational for a few years and so the closure of Citizens Direct Network had no impact on the operations or future work of the SDN Group.

Achievement and activities

This year presented a particularly challenging operational environment, as the impact of the Covid-19 pandemic contributed towards changing donor priorities and intensifying economic challenges in the Niger Delta and globally. However, we were able to protect the quality of SDN’s work and our impact in the Niger Delta through a focus on our highest-impact areas of work and securing support to continue and expand this.

The main activities for the period under review were:

2

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 APRIL 2022

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.

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 £110,718 (2021 – £319,914) for the year and reserves stand at £206,643 (2021 - £317,361).

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 2022 the unrestricted reserves not invested in fixed assets totalled £62,025 (2021 – £195,228).

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.

3

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Company Number: 05101121

Charity Number: 1148143

Directors and Trustees:

J D’Angelo - Chairperson Professor M Anikpo J A H Croft R J Ekperi I D Pedro D M Pearson

Secretary: C A Laing

Senior Management : Inanc Inan, Finance Director (appointed on Sep 12, 2022) Rob Hollingsworth (resigned in March 2022)

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

4

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

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.

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.

5

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

DIRECTORS’ AND TRUSTEES’ REPORT (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

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.

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:

22 February 2023

J D’Angelo CHAIRPERSON

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 2022, 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations and remained alert to any indications of non-compliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation, Charity Act 20211 and SORP 2019. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and appropriateness of other entries in the nominal ledger; reviewing transactions around the end of the reporting period; and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

8

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

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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 3 SHEEN ROAD CHARTERED ACCOUNTANTS RICHMOND TW9 1AD STATUTORY AUDITOR

22 February 2023

9

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 30 APRIL 2022

SUMMARY INCOME AND EXPENDITURE ACCOUNT

Notes
Income
Grants, donations and legacies
2
Income from charitable activities:
Grants and contracts
3
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
£
11,791
6,825
-
8
18,624
153,248
-
153,248
(134,624)
(694)
(135,318)
2,879
(132,439)
213,852
81,413		 Restricted
Funds
£
-
624,549
-
-
624,549
603,522
-
603,522
21,027
694
21,721
-
21,721
103,509
125,230		 Total
Total
2022
2021
£
£
11,791
34,882
631,374
589,991
-
458
8
13
643,173
625,344
756,770
936,521
-
14,174
756,770
950,695
(113,597)
(325,351)
-
-
(113,597)
(325,351)
2,879
5,437
(110,718)
(319,914)
317,361
637,275
206,643
317,361

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 31 form part of these accounts.

10

(Limited by guarantee)

STAKEHOLDER DEMOCRACY NETWORK

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 30 APRIL 2022

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
£
85,740
6,825
2		 Restricted
Funds
£
-
195,560
-		 Total
Total
2022
2021
£
£
85,740
161,394
202,385
161,340
2
5
288,127
322,739
382,400
501,966
382,400
501,966
(94,273)
(179,227)
-
-
(94,273)
(179,227)
105,497
284,724
11,224
105,497
92,567 195,560
156,555 225,845
156,555 225,845
(63,988)
(962)		 (30,285)
962
(64,950)
76,174		 (29,323)
29,323
11,224 -

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 31 form part of these accounts.

11

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

GROUP BALANCE SHEET

AS AT 30 APRIL 2022

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
2022
£
19,389
-
19,389
26,442
451,419
477,861
(290,607)
187,254
206,643
206,643
81,413
125,230
206,643		 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		 CHARITY
2022
£
3,784
-
3,784
20,254
12,314
32,568
(25,128)
7,440
11,224
11,224
11,224
-
11,224		 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

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 31 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 2022

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
2022
£
202,453
8
(13,901)
(13,893)
188,560
262,859
451,419		 GROUP
2021
£
(307,165)
13
2,873
2,886
(304,279)
567,138
262,859		 CHARITY
2022
£
(71,873)
2
-
2
(71,871)
84,184
12,314		 CHARITY
2021
£
(57,054)
5
(90)
(85)
(57,139)
141,323
84,184

13

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 APRIL 2022

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 £113,597 for the year and unspent reserves of £206,643. Based on this level of reserves and the trustees’ projections, for the next twelve months the Trustees’ believe that 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 subsidiary, 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 2022

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 2022

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

Miscellaneous donations
Nigel Delta Stakeholders Initiative for Community
Development and Empowerment
Furlough Grant		 Unrestricted
Funds
£
11,791
11,791
Unrestricted
Funds
£
73,949
11,791
85,740		 Restricted
Total
Total
Funds
2022
2021
£
£
£
-
11,791
34,882
-
11,791
34,882
Restricted
Total
Total
Funds
2022
2021
£
£
£
-
73,949
140,554
11,791
20,840
-
85,740
161,394
GROUP
CHARITY

The donations income in 2021 totalling £34,882 for the Group and £161,394 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 2022

3. GRANTS AND CONTRACTS INCOME – GROUP

GRANTS AND CONTRACTS INCOME – GROUP
Netherlands Embassy - Environment & Governance
Netherlands Embassy - HYPREP & SEPAG
Oxford Policy Management
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
Palladium/SCALE
OSIWA
FCDO/AAN
Yar'Adua Foundation
Other Income		 Unrestricted
Funds
£
-
-
-
-
-
-
-
6,225
-
-
-
600		 Restricted
Total
Total
Funds
2022
2021
£
£
£
-
-
122,920
323,761
323,761
89,072
-
-
29,638
-
-
1,567
-
-
114,929
-
-
156,994
-
-
(1,887)
-
6,225
17,092
-
-
33,049
30,956
30,956
-
48,082
48,082
-
195,560
195,560
-
26,190
26,190
26,617
-
600
-
624,549
631,374
589,991
GROUP
6,825 624,549

Grants and contracts income in 2021 totalling £589,991 consist of £46,730 unrestricted funds and £543,261 restricted funds.

GRANTS AND CONTRACTS INCOME – CHARITY

GRANTS AND CONTRACTS INCOME – CHARITY
Oxford Policy Management
Foreign & Commonwealth Office
McArthur Foundation
The United Nations Democracy Fund
FCDO/AAN
SOAS
Other Income		 Unrestricted
Funds
£
-
-
-
-
6,225
600		 Restricted
Total
Total
Funds
2022
2021
£
£
£
-
-
29,638
-
-
1,567
-
-
114,929
-
-
(1,887)
195,560
195,560
-
6,225
17,093
-
600
-
195,560
202,385
161,340
CHARITY
6,825 195,560

Grants and contracts income in 2021 totalling £161,340 consist of £46,731 unrestricted funds and £114,609 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.

17

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

5. NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARY

During the year, the Charity had two subsidiaries one of which was dissolved during the year 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
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)
£
-
-
-
-		 NDSICDE
Charitable
Subsidiary
£
-
463,105
6		 Total
2022
£
-
463,105
-
6
463,111
(479,533)
-
(479,533)
(16,422)
-
(16,422)
-
(16,422)
212,281
195,859		 CDN
Trading
Company
(for profit)
£
-
-
458
-		 NDSICDE
Charitable
Subsidiary
£
116,344
428,653
-
8		 Total
2021
£
116,344
428,653
458
8
- 463,111 458 545,005 545,463
-
-		 (479,533)
-		 -
(14,174)		 (679,141)
-		 (679,141)
(14,174)
- (479,533) (14,174) (679,141) (693,315)
-
-		 (16,422)
-		 (13,716)
-		 (134,136)
-		 (147,852)
-
-
-		 (16,422)
-		 (13,716)
(601)		 (134,136)
(25,933)		 (147,852)
(26,534)
- (16,422)
212,281		 (14,317)
14,020		 (160,069)
372,350		 (174,386)
386,370
- 195,859 (297) 212,281 211,984

18

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

6. ANALYSIS OF EXPENDITURE – GROUP

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
£
302,814
35,986
111,088
16,963
107,199
20,327
150,377
-
744,754		 Governance
£
-
-
-
-
-
-
-
12,016		 Total
2022
£
302,814
35,986
111,088
16,963
107,199
20,327
150,377
12,016		 Total
2021
£
345,955
156,694
38,691
31,377
103,106
36,003
212,837
11,858
12,016 756,770 936,521

Of the £756,770 expenditure in 2022 (2021 - £936,521), £153,248 was charged to unrestricted funds (2021 - £127,126) and £603,522 to restricted funds (2021 - £809,395).

7. ANALYSIS OF SUPPORT AND GOVERNANCE 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
Bad debts written off
Advertising
Bank charges
Foreign exchange (gains) / loss
Entertainment
Repairs and maintenance
Audit fees		 Support
costs
£
35,066
13,526
-
18,886
3,515
23,664
205
11,472
32,733
5,430
2,568
3,432
(4,643)
-
4,523
-
150,377		 Governance
costs
2022
2021
£
£
£
-
35,066
42,119
-
13,526
15,194
-
-
6,357
342
19,228
22,462
-
3,515
2,338
-
23,664
23,687
-
205
195
-
11,472
10,810
-
32,733
31,452
-
5,430
-
-
2,568
-
-
3,432
3,748
-
(4,643)
47,721
-
-
594
-
4,523
6,160
11,674
11,674
11,858
12,016
162,393
224,695
GROUP

19

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

8. ANALYSIS OF EXPENDITURE – CHARITY

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
£
14,218
1,851
4,443
5,036
3,055
-
8,423
-		 Capacity
Building &
Awareness
Raising
£
140,262
21,193
68,076
16,963
42,504
-
47,406
-
336,404		 Governance
£
-
-
-
-
-
-
-
8,970		 Total
Total
2022
2021
£
£
154,480
227,820
23,044
10,572
72,519
40,095
21,999
26,960
45,559
67,712
-
-
55,829
124,616
8,970
4,191
37,026 8,970 382,400
501,966

Of the £382,400 expenditure in 2022 (2021 - £501,966), £225,845 was charged to unrestricted funds (2021 - £333,708) and £156,555 to restricted funds (2021 - £168,888).

9. ANALYSIS OF SUPPORT AND GOVERNANCE 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		 costs
£
38,620
6,913
1,250
3,756
163
1,393
830
154
40
-
1,617
1,094
-
55,829		 costs
£
-
-
-
342
-
-
-
-
-
-
-
-
8,628
8,970		 2022
2021
£
£
38,620
56,955
6,913
8,223
1,250
1,971
4,098
3,444
163
13
1,393
3,748
830
1,181
154
1,038
40
40
-
-
1,617
1,668
1,094
46,335
8,628
4,191
64,799
128,807

20

(Limited by guarantee)

STAKEHOLDER DEMOCRACY NETWORK

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

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
NET INCOME / (EXPENDITURE) FOR THE YEAR
This is stated after charging:
Depreciation
Audit fee		 GROUP
2022
2021
£
£
20,327
36,003
20,327
36,003		 CHARITY
2022
2021
£
£
-
-
-
-
2022
2021
£
£
11,465
10,810
11,674
11,858		 CHARITY
2022
2021
£
£
-
-
-
-
2022
2021
£
£
11,465
10,810
11,674
11,858
-
2021
£
10,810
11,858

11. NET INCOME / (EXPENDITURE) FOR THE YEAR

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

STAFF COSTS
Salaries
Social security
Pension		 2022
2021
£
£
271,205
322,483
47,460
54,803
19,215
23,620
337,880
400,906

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:

2022 2021
number number
£60,000 - £69,999 - -
- -

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 £127,574 (2021 - £163,578).

No Trustee received any remuneration during the year (2021 - £Nil). During the year, trustees were reimbursed expenses amounting to £259 (2021 - £Nil).

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		 2022
18
10
28		 2021
14
20
34

21

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

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
£
72,462
30,161
102,623
Opening
Balances
£
60,344
23,655
83,999
Opening
Balances
£
10,294
10,294
Opening
Balances
£
5,444
5,444		 Additions/
(Disposals)
£
13,901
-
13,901
Charge For
Year /
(Eliminatio
n on
disposal)
£
13,174
-
13,174
Additions
£
-
-
Charge
For Year
£
935
935		 2022
£
12,882
6,506
19,389
Disposal/
fx difference
£
(1,138)
-
(1,138)
Impairment /
fx difference
£
(1,176)
-
(1,176)
2022
£
3,784
3,784
Disposals
£
(131)
(131)
Disposals
£
-
-		 2021
£
12,118
6,506
18,624
Closing
Balances
£
85,225
30,161
115,386
Closing
Balances
£
72,343
23,655
95,997
2021
£
4,850
4,850
Closing
Balances
£
10,163
10,163
Closing
Balances
£
6,379
6,379

22

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

15. FIXED ASSET INVESTMENTS – GROUP AND CHARITY

FIXED ASSET INVESTMENTS – GROUP AND CHARITY
GROUP CHARITY
2022 2021 2022 2021
£ £ £ £
Investment at cost - - - 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 which was dissolved during the year on 23 July 2021.

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

Trade debtors and accrued income
Staff Advances
Other debtors and prepayments
Amount owed by subsidiaries		 GROUP
2022
2021
£
£
12,239
50,079
2,883
94
11,320
4,223
-
-
26,442
54,396		 CHARITY
2022
2021
£
£
12,239
-
-
-
1,595
718
6,420
24,388
20,254
25,106		 CHARITY
2022
2021
£
£
12,239
-
-
-
1,595
718
6,420
24,388
20,254
25,106
25,106

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
2022
2021
£
£
-
-
5,069
-
259,455
-
25,999
13,254
-
-
84
5,264
290,607
18,518		 CHARITY
2022
2021
£
£
-
-
4,801
-
-
-
20,327
8,652
-
-
-
25,128
8,652

23

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

18. ANALYSIS OF CHARITABLE FUNDS – GROUP

GROUP

Restricted Funds:
Netherlands Embassy - HYPREP & SEPAG
McArthur Foundation
United Nation Organisation Drugs and Crime
KSIH
OSIWA
Palladium/SCALE
FCDO/AAN
Yar'Adua Foundation
Total restricted funds
Unrestricted Funds:
General funds
Total Funds:		 Balance
at 01.05.21
£
74,186
29,323
-
-		 Income
£
323,761
-
-
48,082
30,956
195,560
26,190		 Expenditure
£
(293,146)
(29,323)
(1)
(3,544)
(43,820)
(14,789)
(196,522)
(22,377)		 Transfer
£
-
-
1
3,544
-
-
962
(3,813)		 Balance
at 30.04.22
£
104,801
-
-
-
4,262
16,167
-
-
103,509 624,549 (603,522) 694 125,230
213,852 18,624 (150,369) (694) 81,413
317,361 643,173 (753,891) - 206,643

Total expenditure of £753,891 included exchange gain on consolidation of £2,879.

Transfer of £694 made from unrestricted funds to Yar’Adua Foundation amounts of core funds used to fund the project before monies have been forwarded to the Charity by the funder.

Analysis of movements in funds - previous year

Analysis of movements in funds - previous year
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:		 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
-		 at 30.04.21
£
-
74,186
-
-
29,323
-
-
-
-
333,491 543,261 (823,734) 50,491 103,509
303,784 82,083 (121,524) (50,491) 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 (COVID 19 Intervention Fund) represents amounts of core funds used to fund the project before monies have been forwarded to the Charity by the funder.

24

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

19. ANALYSIS OF CHARITABLE FUNDS – CHARITY

CHARITY

Restricted Funds:
McArthur Foundation
AAN / FCDO
Total restricted funds
Unrestricted Funds:
General funds
Total unrestricted funds
Total Funds:		 Balance
at 01.05.21
£
29,323
-		 Income
£
-
195,560		 Expenditure
£
(29,323)
(196,522)		 Transfer
£
-
962		 Balance
at 30.04.22
£
-
-
29,323 195,560 (225,845) 962 -
76,174 92,567 (156,555) (962) 11,224
76,174 92,567 (156,555) (962) 11,224
105,497 288,127 (382,400) - 11,224

Transfer of £962 made from unrestricted funds to AAN/FCDO amounts of core funds used to fund the project before monies have been forwarded to the Charity by the funder.

Analysis of movements in funds - previous year

Restricted Funds:
Foreign & Commonwealth Office
McArthur Foundation
The United Nations Democracy Fund
Total restricted funds
Unrestricted Funds:
General funds
Total unrestricted funds
Total Funds:		 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
£
-
-
-		 at 30.04.21
£
-
29,323
-
83,602 114,609 (168,888) - 29,323
201,122 208,130 (333,078) - 76,174
201,122 208,130 (333,078) - 76,174
284,724 322,739 (501,966) - 105,497

25

(Limited by guarantee)

STAKEHOLDER DEMOCRACY NETWORK

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

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 & SEPAG - Monitoring the Ogoni clean-up & Strengthening Environmental Policy and Accountability in Governance

The aim of this project is to ensure communities in the Niger Delta fairly benefit from the proceeds of the oil and gas industry and that local and global environmental impact from the oil and gas industry is reduced. It seeks to scaleup some of the most successful areas of our work and innovate new solutions to environmental challenges in the region. We want communities in the Niger Delta to experience fewer negative impacts from the oil and gas industry, and to fairly benefit from its revenues. We also want to ensure that both local and global environmental impact from the oil and gas industry is reduced. This project will also 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. The project focuses on the scheduled clean-up of the major environmental disaster in Ogoniland, generated by over 50 years of oil spills in the region. We will do this by training and supporting local civil society organisations (CSOs) to physically visit and assess the actual progress of the clean-up in a systematic way. This independent checking will help rebuild trust in government to protect Nigerians from the negative health, environmental, and economic impacts of the oil industry, following a poor track record of oil spill clean-up, remediation, and restoration in Nigeria. The results of these independent CSO assessments of the Ogoni oil spill clean-up will be made easily accessible to the public.

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.

26

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

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).

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.

Yar'Adua Foundation

OSIWA - Strengthening Food Production in Riverine Communities

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 2022 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.

This project aims to improve the livelihoods of smallholder farmers in three riverine communities across the Southern Ijaw and Nembe Local Government Areas of Bayelsa State, by supporting growth in their incomes and businesses, and protecting them from shocks such as climate change. Climate change and oil pollution contribute to challenging conditions for agricultural production in these communities, increasing the risk of food insecurity and further inflating the rates of unemployment. This project targets communities living in the coastal riverine areas as they are particularly vulnerable to crop losses due to increased flooding from sea-level rise or erratic and extreme weather associated with climate change. Resilience among these communities to crop losses is then frustrated by limited access to, or awareness of, financial support.

27

(Limited by guarantee)

STAKEHOLDER DEMOCRACY NETWORK

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

This project seeks to reduce crop losses by working with small-scale farmers to develop climate-smart agricultural practices, in collaboration with the Bayelsa Ministry of Agriculture and Agricultural Development Programme. Where crop losses do occur, this project aims to bolster local resilience by facilitating access to financial services that support farmers’ recovery. SDN uses an inclusive and gender-sensitive community-led participatory approach, with at least 60% of the 6,000 farmers we aim to reach being women. The benefits of this approach will be felt long after the project funding comes to an end. This project aims to support a reduction in losses and bolster the resilience of 300 farmers and small agriculture and aquaculture businesses through improved climate-smart agricultural practices and increased access to financial services.

Yar'Adua - Tech community of practice This project aims to establish a community of tech developers that are capable of providing accessible and inclusive solutions to the accountability sector in Nigeria. The objectives are to integrate existing accountability projects, including Develop ND to the Partners United Platform, contribute innovative features to improve utilization and effectiveness of the Partners United Platform, contribute to API development to enable integration of other open data sources and grow a community of civic technology developers in the Niger Delta.

SOAS - The Artisanal Oil Industry mapping integration and incentives in local economies

SDN is working with SOAS University of London (UK), as part of its DFIDfunded Anti-Corruption Evidence programme, to help map links between artisanal oil refining and other livelihoods, and highlight the ‘benefits’ or incentives structures of those involved in this informal economy. A wide informal economy has grown around the activities of artisanal oil refining in the Niger Delta – with both direct and indirect income opportunities. It is therefore a crutch to local economies that lack diverse employment options. The aim is to understand the incentives that make people engage in informal, and in this case illicit and corrupt, livelihoods in the Niger Delta region, instead of engaging in the formal, legitimate economy. Without understanding and supporting everyone with a stake in artisanal oil refining, creating the necessary buy-in for an alternative to this risky and environmentally damaging activity will fail, as people will not commit to change without an alternative incentive structure. The project approaches the issue from the pragmatic perspective that artisanal oil industry workers, and the surrounding economy, is made up of productive individuals. It would have a negative impact simply destroy it, and attempts to do so have thus far been unsuccessful. Instead, policy makers should search for solutions that change the rewards associated with the choices to incentivise this productivity being channelled into the legitimate economy, and ensure the long-term welfare of those involved. To help map links between the informal artisanal oil industry and other livelihoods, and highlight the ‘benefits’ structure (networked corruption) of those involved in this informal economy, so as to identify options that can eventually create buy-in amongst all involved in alternatives to this risky and environmentally damaging industry.

28

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

Action Aid - We - YOU Project

We-YOU-Project is a 19-month project in partnership with ActionAid Nigeria with funding from the UK Foreign, Commonwealth and Development Office (FCDO). The project is being implemented in 24 communities across Okrika, Ogu/Bolo, Port Harcourt and Obio-Akpor Local Government Areas (LGAs) in Rivers State. The project will work with communities across four LGAs to mobilise grassroots engagement in advance of the 2023 elections, and support at least 300 women and young people to build campaigning, policy and influencing skills via a training programme. Through this, we will develop a Women and Youth Agenda for Rivers State, to document the priorities of women and young people that they want to see their political leaders respond to, and launch a large-scale campaign and advocacy initiative to build public interest and put pressure on political aspirants, representatives, and political parties to act on the demands of women and young people. This project aims to increase political participation and representation of women and young people in Rivers state in the run up to 2023 election and secure policy commitments and actions from political aspirants, representatives, and political parties, in response to the demands of women and young people.

Palladium - Enabling Civic Space in the Niger Delta

This project focusses on the trend of closing civic space in Akwa Ibom, Bayelsa and Rivers state in the Niger Delta region and focuses on three areas of concern. These are: high levels of harassment, violence and illegal detention inflicted on citizens and civil society by state agencies when exercising their rights, such as freedom of assembly and association; lack of opportunities for civil society to engage constructively with government on human rights issues; and the lack of collaboration of civil society actors on civic space concerns. The project establishes a cluster of civil society organisation – ‘Civic Space Watch’ – that will develop campaigns to influence policy makers on the domestication of the Administration of Criminal Justice Act (ACJA) in Akwa Ibom and its implementation in Rivers and Bayelsa.

29

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

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

GROUP
Fixed assets
Net current assets/ (Liabilities)
CHARITY
Fixed assets
Net current assets/(Liabilities)		 Unrestricted
funds
£
19,389
62,024
81,413
3,784
7,440
11,224		 Restricted
funds
£
-
125,230
125,230
-
-
-		 Total
2022
£
19,389
187,254
206,643
3,784
7,440
11,224		 Total
2021
£
18,624
298,737
317,361
4,850
100,647
105,497
Analysis of net assets between funds - previous year
GROUP
Unrestricted
funds
£
Fixed assets
18,624
Net current assets
195,228
213,852
CHARITY
Fixed assets
4,850
Net current assets
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
298,737
332,458
7,702
100,497
108,199

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		 GROUP
2022
2021
£
£
(110,718)
(319,914)
13,136
12,224
(8)
(13)
27,954
27,475
272,089
(26,937)
202,453
(307,165)		 CHARITY
2022
2021
£
£
(94,273)
(179,227)
1,075
2,953
(2)
(5)
4,852
131,698
16,476
(12,473)
(71,873)
(57,054)		 CHARITY
2022
2021
£
£
(94,273)
(179,227)
1,075
2,953
(2)
(5)
4,852
131,698
16,476
(12,473)
(71,873)
(57,054)
(57,054)

30

STAKEHOLDER DEMOCRACY NETWORK

(Limited by guarantee)

NOTES TO THE ACCOUNTS (Cont/d)

FOR THE YEAR ENDED 30 APRIL 2022

22. DEFERRED INCOME – GROUP AND CHARITY

DEFERRED INCOME – GROUP AND CHARITY
Balance as at 1st May 2021
Amount released to income in the year
Amount deferred in the year
Balance as at 30th April 2022		 2022
2021
£
£
-
-
-
-
259,455
-
~~259,455~~
~~-~~
GROUP		 2022
2021
£
£
-
-
-
-
-
-
~~-~~
~~-~~
CHARITY
~~-~~

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.

31