Rights & Accountability in Development Limited
Board of Trustees’ Report and Unaudited Financial Statements
For the year ended 30 September 2021
Company no. 04895859 Charity no. 1150846
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
Contents
| Legal and administrative information | 2 |
|---|---|
| Trustees’ annual report | 3 |
| Independent examiner’s report | 9 |
| Statement of financial activities | 10 |
| Balance sheet | 11 |
| Notes to the financial statements | 12 |
Registered company no 04895859 Registered charity (England & Wales) no 1150846
1
Legal and administrative information
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
Legal and Administrative Information
| Charity name | Rights & Accountability in Development Limited | Rights & Accountability in Development Limited |
|---|---|---|
| Charity registration no. | 1150846 (England and Wales) | |
| Company registration no. | 04895859 | |
| Registered office | Studio 204, ScreenWorks | |
| 22 Highbury Grove | ||
| Highbury East | ||
| London, N5 2EF | ||
| Trustees | Stephen Crawshaw | appointed 20 July 2021 |
| Bronwen Manby (Chair) | resigned 20 July 2021 | |
| Laura Boardman | ||
| Patricia Feeney | ||
| Robert McCorquodale | ||
| Muleya Mwananyanda | appointed 20 July 2021 | |
| Kathryn Nwajiaku-Dahou | appointed 20 July 2021 | |
| David White | ||
| Executive director | Anneke Van Woudenberg | |
| **Independent examiner ** | Haines Watts Chartered Accountants | |
| 4 Claridge Court | ||
| Lower Kings Road | ||
| Berkhamsted | ||
| Hertfordshire, HP4 2AF | ||
| Accountants | Andy Nash Accounting & Consultancy Ltd | |
| Units 24 & 25 | ||
| Goodsheds Container Village | ||
| Hood Road | ||
| Barry, CF62 5QU | ||
| Principal bankers | NatWest Bank | |
| 43 Cornmarket Street | ||
| Oxford, OX1 3HA |
Registered company no 04895859 Registered charity (England & Wales) no 1150846
2
Trustees’ annual report
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
Trustees’ Annual Report
The Board of Trustees, who are also Directors of the Charity for the purposes of the Companies Act, and Trustees for charity law purposes, submit their annual report and the financial statements of Rights & Accountability in Development Limited for the year ended 30 September 2021. The Board of Trustees confirms that the annual report and financial statements of the Charity comply with current statutory requirements, including the Charity Act 2011, as well as the requirements of the Charity's governing document and the provisions of the ‘Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) second edition (effective 1 January 2020)’, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Companies Act 2006.
Aims and Objectives
Objectives
Rights & Accountability in Development (RAID) is an innovative UK-based NGO that exposes corporate wrongdoing, environmental damage and human rights abuses, partnering with those harmed to hold companies to account. Through rigorous investigation, advocacy and the law, RAID seeks to strengthen regulation of business and achieve justice.
Few organisations do what RAID does: we conduct field research and forensic desk research at a level of detail that enables us to bring cases and complaints against companies in courts and before supervisory bodies. RAID operates in a niche area of the business and human rights space. Our work pushes the boundaries of corporate accountability and tests new and innovative approaches. We have a proven track record in delivering ground-breaking impact.
RAID is a conduit for complaints from workers, victims and others to the jurisdictions where justice is delivered. For those harmed, obtaining justice in local courts or in legal jurisdictions where the companies are based can seem like an impossible hurdle. We seek to change that, working hand-in-hand with human rights defenders and civil society groups based in the Global South.
RAID’s team of committed professionals combines five tactics in our quest to bring remedy and justice to victims of corporate crime:
-
Extensive field investigations to expose and report on corporate abuses.
-
Forensic corporate research into company operations, structures and financing.
-
Presenting cases in courts and through other complaints mechanisms or regulatory channels.
-
Collaborating with experienced network of law firms and legal experts to provide judicial and non-judicial remedies for victims.
-
Engaging with the international efforts for stronger regulation of companies.
Activities
RAID had some notable achievements during the year. These included the following:
- In November 2020, we published our findings following research at a diamond mine in Tanzanian owned by Petra Diamonds, a UK listed company, which claimed to produce ‘ethical’ diamonds’. We provided extensive details on deaths and assaults by security personnel at the Williamson Mine. Local residents described being shot with little or no warning, stabbed, detained, stripped, beaten, incarcerated for days in a filthy and cramped holding cell by the mine’s entrance, deprived of food and medical treatment, and/or handcuffed to hospital beds at the mine’s medical facility.
Registered company no 04895859 Registered charity (England & Wales) no 1150846
3
Trustees’ annual report
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
Following RAID’s in-depth report, and the filing of a legal claim at the High Court by Leigh Day law firm on behalf of the victims, the UK-listed diamond company bowed to pressure. In May 2021, Petra Diamonds apologised to those harmed by its operations and agreed to a wideranging compensation package of $6.1 million, including damages and medical assistance for 96 Tanzanian nationals who suffered human rights abuses at its Williamson Mine. The company also agreed to extensive changes to its management practices on security and human rights. The civil settlement set a new standard in the UK, showing how widereaching remedy for corporate human rights abuses can be achieved through civil claims. All of RAID's investigative work on Petra Diamonds can be found here.
Photo: George Joseph Bwisige, leader of a group seeking empowerment for victims at the Williamson Diamond Mine
-
In January 2021, the UK government accepted a complaint filed by RAID and two Chadian human rights groups against Glencore UK for violations of the OECD Guidelines for Multinational Enterprises at the company’s Badila oilfield in Chad. It marks the first time the mining giant is facing an OECD complaint in the UK. The complaint was based on our report exposing the effects of a wastewater spill which affected thousands of local residents. We found that Glencore had ignored reports of serious injuries, including burns and skin lesions. Read the summary here. The NCP process gives residents an opportunity for redress. The process is currently suspended due to a new legal claim.
-
In May 2021, a financial investigation released by anti-corruption coalition, Congo is Not for Sale, of which RAID is a member, revealed that the Democratic Republic of Congo is facing losses of at least US $3.71 billion from suspect mining and oil deals with notorious businessman Dan Gertler. The coalition said, “the funds could have been used to build schools, pay teachers or provide basic healthcare instead of lining the pockets of a private businessman”, and urged the Congolese government to take action. Gertler is sanctioned by the US but has yet to face justice. More on the financial investigation here.
RAID, alongside other anti-corruption groups, urged the DRC government to launch investigation into possible corruption linked to the deals. Shortly after, Congo’s president said he would seek to renegotiate mining deals struck by his predecessor. Considering that electric vehicle batteries contain Congo’s cobalt, we are joining civil groups from across the globe to challenge businesses and governments to develop an ethical battery, and setting out the principles needed to get us there.
Dan Gertler's questionable deals have placed him on the US sanctions list under the Global Magnitsky Act. In its final days the Trump administration granted Gertler a secret licence largely exempting him from sanctions. Anti-corruption and human rights activists sprang into action (including us) to press the new Biden administration to revoke this licence, and in a welcome move, the new president did so. Meanwhile, the UK launched its own anti-corruption sanctions regime, an initiative we welcomed. Read more here.
- In June 2021, we renewed our calls on the DRC government to implement a landmark decision by the African Commission for Human and Peoples’ Rights. Four years earlier, the African Commission had awarded $4.36 million to victims of the 2004 Kilwa massacre, when Congolese soldiers brutally murdered over 70 people. Australian company, Anvil Mining,
Registered company no 04895859 Registered charity (England & Wales) no 1150846
4
Trustees’ annual report
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
which owned a nearby copper and silver mine, provided crucial logistical support for the military operation.
We have worked hard to support the victims in seeking justice and were overjoyed when in 2017 they won an important victory at the African Commission. But the decision has been ignored by the Congolese state. When Congo’s President Felix Tshisekedi took up the role of Chairperson of the African Union and pledged to promote human rights and uphold African institutions, we sent him an open letter urging him to implement the decision. Alongside Congolese and African human rights groups, we published the letter on the 40th anniversary of the African Charter on Human and Peoples Rights. Read the press release and letter here.
- Together with other anti-corruption and freedom of expression groups, we have become increasingly alarmed at the use of strategic litigation (known as SLAPPs) by corporate actors in the UK courts seeking to silence journalists and other public watchdogs. SLAPPs are lawsuits intended to harass, intimidate and financially exhaust critics by burdening them with legal defence costs until they abandon their criticism.
In one such case, we conducted extensive research pulling together information on the legal proceedings filed in a UK court by multinational mining company Eurasian Natural Resources Corporation (ENRC) against journalist Tom Burgis, his publisher HarperCollins, and his employer, the Financial Times. ENRC is under investigation by the Serious Fraud Office (SFO) for corruption. Since the SFO announced its investigation, ENRC has initiated a wave of more than 16 legal proceedings in the US and the UK. Together with other human rights and freedom of expression groups we raised concerns about these tactics. See our statement here and a short video summary here.
Photo: Tom Burgis
- RAID advanced its work on battery supply chains and concerns linked to renewable energies, with a focus on human rights, workers’ rights, corruption and the environment.
With the increased focus on the transition to a low-carbon economy, and the upcoming COP26 in Glasgow, we worked on emphasising the source of the supply chain, making the link between the mining of raw materials like cobalt and the anticipated boom in electric vehicles.
We conducted in-depth research and interviews in the Democratic Republic of Congo exposing a system of widespread exploitation at some of the world’s largest cobalt mines. Congolese workers described dire conditions, extremely low pay, and said they were subjected to excessive working hours, degrading treatment, violence and discrimination. Cobalt is an essential mineral in the lithium-ion batteries that power electric vehicles with most of the world’s supply coming from Congo.
Our findings were published in November 2021 alongside our Congolese partners, CAJJ.
Photo Credit: Pete Pattison
Registered company no 04895859 Registered charity (England & Wales) no 1150846
5
Trustees’ annual report
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
- RAID has been closely following the current UK court case on behalf of victims of killings and injuries by police at Barrick’s North Mara gold mine in Tanzania, and conducting further research. We are examining the human rights legacy at the mine, as well as the approach by its CEO, Mark Bristow, on tackling these issues.
We are additionally keeping up-to-date on the London Bullion Market Association's (LBMA) responsible gold sourcing programme and the companies it certifies. RAID has repeatedly raised concerns with the LBMA regarding weaknesses in its programme.
Certification schemes have been mushrooming across industry supply chains to show that goods are responsibly sourced and are free of human rights violations. This forms part of the growing trend promoting higher Environmental, Social, and Governance (ESG) standards. Such schemes often make lofty claims, but we are investigating whether they deliver for local communities and human rights victims, or whether such stamps of approval cause harm to go unnoticed.
Photo Credit: Trevor Snapp
Partnerships
As a small organisation working in the field of business and human rights, RAID amplifies its impact through strong partnerships with local human rights and community groups in Africa and with international human rights NGOs. These partnerships remain critical to RAID’s work. RAID works in coalition with the Corporate Justce Coalition (formerly CORE) in the UK, the African Coalition for Corporate Accountability (ACCA), Publish What You Pay, the UK Anti-Corruption Coalition (UKACC), the ‘Congo is Not for Sale’ (CNPAV) coalition and the International Corporate Accountability Roundtable (ICAR). We also continue to work closely with law firms and legal experts in the UK, Europe, South Africa, Australia and Canada in our efforts to seek remedy for local communities and victims of corporate abuse.
Delivering public benefit
The Trustees have had regard to the guidance issued by the Charity Commission concerning public benefit. They are satisfied that the information given in this report, particularly regarding the activities undertaken when read in conjunction with the objectives of the charity set out above, demonstrates that the requirements to identify public benefit have been met.
Financial review
In the year ended 30 September 2021, the Charity incurred a deficit of £24,577 compared with a surplus of £48,274 in the previous year decreasing total reserves carried forward at year end to £124,185 (2020: £148,762). The deficit was due to the late payment of one funder which is expected to clear imminently. Income amounted to £278,166 of which £54,739 was restricted to specific projects, and £223,427 was unrestricted as to use.
Of the reserves held at period end, £112,632 (2020: £130,862) related to unrestricted funds with an additional £11,553 (2020: £17,900) on restricted funds.
RAID’s income was healthy, enabling the charity to expand its work, with grants continuing from The Joseph Rowntree Charitable Trust, Open Society Foundation, the SAFE fund, and the Wellspring Philanthropic Fund. RAID also received a grant from 11.11.11, a Belgian charity, and from a small number of private donors. Most of RAID’s donors provided longerterm 2 or 3 year grants. About 80% of RAID’s income was unrestricted. RAID’s annual fundraising event to enhance the charity’s unrestricted income was postponed due to the Covid-19 pandemic.
The Trustees were pleased that RAID continued to be able to support local NGO partners and human rights
Registered company no 04895859 Registered charity (England & Wales) no 1150846
6
Trustees’ annual report
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
monitors in countries in which RAID is working, especially during this challenging year.
Reserves Policy
The Trustees have determined that RAID should strive to hold in reserve funds equivalent to running the core functions of the charity for three months. This is currently expected to be £75,000. At the end of the year, with unrestricted reserves of £112,632, RAID had succeeded in reaching the reserves target. The trustees regularly review RAID’s reserves.
Future Plans
RAID looks forward to another successful year of highlighting corporate abuse in Africa and working with victims to seek justice. RAID continues to implement its 5-year strategic plan which was adopted in 2018. The charity’s existing casework in DR Congo, Chad, South Africa and Tanzania will continue with further work expected in each country, including an upcoming report on workers’ rights in the mining sector in 2021.
Structure, Governance and Management
Governing Document
RAID is administered by a Board of Trustees who are also its directors for the purposes of company law. Trustees were kept up-to-date on their relevant legal responsibilities through a variety of methods and formats. The Trustees actively share their expertise with RAID and assist the organisation with fundraising. RAID’s board is responsible for setting strategy and the general management and supervision of the work. No Trustee receives any remuneration from the charity. The Trustees meet at least three times a year and sometimes more frequently.
The Executive Director is delegated by the Trustees to carry out day-to-day management of the Charity and execution of policies and practices set by the Trustees. The delegated authority is set out in writing.
Risk Management
The Trustees have identified the following possible major risks to the operations of the charity.
-
Insufficient funds being raised to support planned activities. This has been mitigated by successfully achieving multi-year funding, including from a new donor during this financial year.
-
Legal action against the organisation. RAID’s work of supporting communities in conflict with mining
companies involves publishing information which companies may prefer to keep out of the public domain. This work brings an intrinsic risk of legal action against the organisation. We continue to scrupulously check our research and to seek external legal advice as required to reduce the risk.
Statement of Board of Trustees’ Responsibilities
The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law, they are required to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under company law, the Trustees 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 charitable company and of the excess of expenditure over income for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and,
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue its activities.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. In addition, the Trustees confirm that they are happy that the content
Registered company no 04895859 Registered charity (England & Wales) no 1150846
7
Trustees’ annual report
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
of the annual review in pages 3 to 8, and the legal & administrative information on page 2 of this document meet the requirements of both the Trustees’ Annual Report under charity law and the Directors’ Report under company law.
They also confirm that the financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July 2014.
Preparation of the report
This report has been prepared taking advantage of the small companies exemption of section 415A of the Companies Act 2006.
This report was approved and authorised for issue by the Board of Trustees on 24 June 2022 and signed on its behalf by:
Stephen Crawshaw
Chair of the Board of Trustees
Registered company no 04895859 Registered charity (England & Wales) no 1150846
8
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
Independent examiner’s report
Independent Examiner’s Report to the Members of Rights & Accountability in Development Limited
I report to the Trustees on my examination of the accounts of Rights & Accountability in Development Limited (charity number 1150846, company number 04895859) for the year ended 30 September 2021 which are set out on pages 10 to 21.
Respective responsibilities of trustees and examiner
The Trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (‘the 2011 Act’) nor under Part 16 of the 2006 Act, and that an independent examination is needed.
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, it is my responsibility to:
-
examine the accounts under section 145 of the Charities Act 2011 (‘the 2011 Act’);
-
to follow the procedures laid down in the general directions given by the Charity Commission under section 145(5)(b) of the Charities Act; and,
-
to state whether particular matters have come to my attention.
This report, including my statement, has been prepared for and only for the Charity’s Trustees as a body. My work has been undertaken so that I might state to the Charity’s Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity’s Trustees as a body for my examination work, for this report, or for the statements I have made.
Basis of independent examiner’s statement
My examination was carried out in accordance with general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from the Trustees concerning any such matters.
The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the
accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.
Independent examiner's statement
Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a fellow of the Institute of Chartered Accountants in England & Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or,
-
the accounts do not accord with those records; or,
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or,
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
S Brownsmith
Shaun Brownsmith FCA
For and on behalf of Haines Watts Chartered Accountants
4 Claridge Court Lower Kings Road Berkhamsted Hertfordshire, HP4 2AF
Date: 27 June 2022
Registered company no 04895859 Registered charity (England & Wales) no 1150846
9
Statement of financial activities
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
Statement of Financial Activities
Incorporating the Income & Expenditure Account and the Statement of Recognised Gains & Losses For the year ended 30 September 2021
----- Start of picture text -----
Unrestricted Restricted Total Total
Funds Funds Funds Funds
Year ended Year ended Year ended Year ended
30 Sep 2021 30 Sep 2021 30 Sep 2021 30 Sep 2020
Notes £ £ £ £
Income from:
Donations and legacies 3 223,427 54,739 278,166 370,848
Investments - - - 8
Total income 223,427 54,739 278,166 370,856
Expenditure on:
Raising funds 4 & 6 20,156 - 20,156 23,651
Charitable activities 5 & 6 221,501 61,086 282,587 298,931
Total expenditure 241,657 61,086 302,743 322,582
Net income/(expenditure) (18,230) (6,347) (24,577) 48,274
Transfers between funds 10 & 11 - - - -
Movement in funds (18,230) (6,347) (24,577) 48,274
Reconciliation of funds:
Funds brought forward 10 & 11 130,862 17,900 148,762 100,488
Funds carried forward 10 & 11 112,632 11,553 124,185 148,762
----- End of picture text -----
The notes on pages 12 to 21 form part of the financial statements
Registered company no 04895859 Registered charity (England & Wales) no 1150846
10
Balance sheet
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
Balance Sheet
As at 30 September 2021
----- Start of picture text -----
Total Total
Funds Funds
30 Sep 2021 30 Sep 2020
Notes £ £
Current assets:
Debtors & prepayments 8 4,318 4,296
Cash at bank and in hand 143,169 161,167
Total current assets 147,487 165,463
Creditors - amounts falling due
in less than one year 9 (23,302) (16,701)
Net current assets 124,185 148,762
Net assets 124,185 148,762
Funds of the charity
Restricted funds 10 & 11 11,553 17,900
Unrestricted funds
General funds 10 & 11 112,632 130,862
112,632 130,862
124,185 148,762
----- End of picture text -----
The notes on pages 12 to 22 form part of the financial statements
The financial statements have been prepared in accordance with section 415A of the Companies Act 2006 relating to small companies and FRS 102 Section 1A.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of the accounts.
The charitable company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the year ended 30 September 2021, and the members have not required the charitable company to obtain an audit of its financial statements for the year ended 30 September 2021 under section 476 of the Companies Act 2006.
They were approved and authorised for issue by the Board of Trustees on 24 June 2022 and signed on their behalf by:
Stephen Crawshaw
Chair of the Board of Trustees
Registered company no 04895859 Registered charity (England & Wales) no 1150846
11
Notes to the financial statements
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
Notes to the financial statements
1. Accounting policies
Basis of preparation of the financial statements
The financial statements have been prepared in accordance with ‘Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) second edition (effective 1 January 2019)’, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The effect of any event relating to the period ended 30 September 2021, which occurred before the date of approval of the financial statements by the Board of Trustees has been included in the financial statements to the extent required to show a true and fair view of the state of affairs at 30 September 2021 and the results for the year ended on that date.
The functional currency of the Charity is sterling and amounts in the financial statements are rounded to the nearest pound.
Under the exemption available to smaller charities the Board of Trustees has chosen not to include a Statement of Cash Flows within the financial statements.
Going concern
The financial statements have been prepared on the going concern basis as the Board of Trustees is confident that future reserves and future income is more than sufficient to meet current commitments. There are no material uncertainties that impact this assessment, and the ongoing COVID-19 pandemic has had no impact on this assessment.
Legal status
Rights & Accountability in Development Limited is a charitable company limited by guarantee registered in England & Wales, and meets the definition of a public benefit entity under FRS 102. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charity. The registered address is Studio 204, ScreenWorks, 22 Highbury Grove, Highbury East, London, N5 2EF.
Fund Accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors or that have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in note 10 of the financial statements.
Income
Income is recognised when the Charity has entitlement to the funds, any performance indicators attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.
Donations are recognised in full in the Statement of Financial Activities when entitled, receipt is probable and when the amount can be quantified with reasonable accuracy. Gift aid receivable is included when claimable.
Grant income is credited to the Statement of Financial Activities when received or receivable whichever is earlier, unless the grant relates to a future period, in which case it is deferred.
Expenditure and irrecoverable VAT
All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities.
Support to partner organisations is recognised at the point where there is a legal or constructive obligation to make the grant. This is usually on receipt of the expenditure report from the relevant partner organisation. Under section 16.21 of the Statement of Recommended Practice, as a result of the nature of the work that RAID supports, the charity has claimed exemption from providing details of the partners supported as it could seriously prejudice the work of those partner organisations. Indirect costs, including governance costs, which cannot be directly attributed to activities, are allocated proportionate to direct staff costs allocated to each project area, as outlined in note 4 of the financial statements.
Irrecoverable VAT is charged against the category of expenditure for which it was incurred.
Tangible fixed assets and depreciation
All assets costing more than £500 are capitalised.
There are no fixed assets over this threshold.
Registered company no 04895859 Registered charity (England & Wales) no 1150846
12
Notes to the financial statements
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
Cash at bank and in hand
Cash at bank and in hand includes cash in hand, deposits with banks and funds that are readily convertible into cash at, or close to, their carrying values, but are not held for investment purposes.
Debtors and prepayments
Trade and other debtors are recognised at the settlement amount after any trade discount is applied. Prepayments are valued at the amount prepaid net of any trade discounts due.
Creditors
Creditors are recognised where the Charity 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.
Pensions
The Charity operates a defined contribution pension scheme which is administered by an external independent pension provider. Contributions are recognised in the Statement of Financial Activities as they fall due.
Critical estimates and judgements
In preparing financial statements it is necessary to make certain judgements, estimates and assumptions
that affect the amounts recognised in the financial statements. The annual depreciation charge for fixed assets is sensitive to changes in useful economic lives and residual values of assets. These are reassessed annually.
In the view of the Trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.
Financial instruments
Basic financial instruments are measured at amortised cost other than investments which are measured at fair value.
Foreign currencies
Foreign currency balances have been translated at the exchange rate ruling at the Balance Sheet date.
Income and expenditure transactions have been translated at the prevailing rate at the time of the transaction.
Operating leases
Rentals applicable to operating leases have been charged to the Statement of Financial Activities in the period to which the cost relates.
Registered company no 04895859 Registered charity (England & Wales) no 1150846
13
Notes to the financial statements
Annual report and financial statements Year ended 30 September 2021
Rights & Accountability in Development Limited
2. Comparative statement of financial activities
| . Comparative statement of financial activities | . Comparative statement of financial activities | . Comparative statement of financial activities | . Comparative statement of financial activities |
|---|---|---|---|
| Unrestricted Restricted Total Funds Funds Funds Year ended Year ended Year ended 30 Sep 2020 30 Sep 2020 30 Sep 2020 Notes £ £ £ Income from: Donations and legacies 3 246,357 124,491 370,848 Investments 8 - 8 |
|||
Total income Expenditure on: Raising funds 4 & 6 Charitable activities 5 & 6 Total expenditure Net income/(expenditure) Transfers between funds 10 & 11 Movement in funds Reconciliation of funds: Funds brought forward 10 & 11 Funds carried forward 10 & 11 |
246,365 23,651 185,473 209,124 37,241 (12,237) 25,004 105,858 130,862 |
124,491 - 113,458 113,458 11,033 12,237 23,270 (5,370) 17,900 |
370,856 23,651 298,931 322,582 48,274 - 48,274 100,488 148,762 |
| . Income from donations and legacies Unrestricted Funds Year ended 30 Sep 2021 £ Donations 8,677 Grants 214,750 223,427 |
Restricted Funds Year ended 30 Sep 2021 £ - 54,739 54,739 |
Total Funds Year ended 30 Sep 2021 £ 8,677 269,489 278,166 |
|
| Unrestricted Restricted Total Funds Funds Funds Year ended Year ended Year ended 30 Sep 2020 30 Sep 2020 30 Sep 2020 £ £ £ Donations 12,421 25,087 37,508 |
|||
| Grants | 233,936 | 99,404 | 333,340 |
| 246,357 | 124,491 | 370,848 |
3. Income from donations and legacies
£23,750) from the Joseph Rowntree Charitable Trust given as an unrestricted grant.
Unrestricted grant income in the current year of £214,750 (2020: £233,936) includes £30,000 (2020:
Registered company no 04895859 Registered charity (England & Wales) no 1150846
14
Notes to the financial statements
Annual report and financial statements Year ended 30 September 2021
Rights & Accountability in Development Limited
4. Total expenditure
----- Start of picture text -----
Support to Direct Direct Indirect Indirect
partner staff other staff other Total
organisations costs costs costs costs costs
Year ended Year ended Year ended Year ended Year ended Year ended
30 Sep 2021 30 Sep 2021 30 Sep 2021 30 Sep 2021 30 Sep 2021 30 Sep 2021
£ £ £ £ £ £
Raising funds - 15,784 216 1,330 2,826 20,156
Charitable activities 35,238 171,474 30,720 14,454 30,701 282,587
35,238 187,258 30,936 15,784 33,527 302,743
Support to Direct Direct Indirect Indirect
partner staff other staff other Total
organisations costs costs costs costs costs
Year ended Year ended Year ended Year ended Year ended Year ended
30 Sep 2020 30 Sep 2020 30 Sep 2020 30 Sep 2020 30 Sep 2020 30 Sep 2020
£ £ £ £ £ £
-
Raising funds 15,786 2,161 1,378 4,326 23,651
Charitable activities 43,904 165,056 30,331 14,409 45,231 298,931
43,904 180,842 32,492 15,787 49,557 322,582
----- End of picture text -----
Indirect costs, including governance costs, which cannot be directly attributed to activities, were allocated between cost centres proportionate to the direct costs allocated to those activities.
Under section 16.21 of the Statement of Recommended Practice, as a result of the nature of the work that RAID supports, the charity has claimed exemption from providing details of the partners supported as it could seriously prejudice the work of those partner organisations. In the previous year the support to partner costs had not been identified separately as it
was not a material element to the accounts, and instead had been included within direct other costs.
An analysis of expenditure on raising funds split between restricted and unrestricted funds can be found in note 5. An analysis of expenditure on charitable activities split between restricted and unrestricted funds can be found in note 6.
Indirect costs include:
| Staff costs Administration Premises Finance Governance |
Total Total Funds Funds Year ended Year ended 30 Sep 2021 30 Sep 2020 £ £ 15,784 15,787 13,388 29,478 14,069 14,847 3,207 2,449 2,863 2,783 49,311 65,344 |
|---|---|
Registered company no 04895859 Registered charity (England & Wales) no 1150846
15
Notes to the financial statements
Rights & Accountability in Development Limited
Annual report and financial statements Year ended 30 September 2021
4. Total expenditure (continued from previous page)
Included within indirect costs are the following governance costs:
----- Start of picture text -----
Total Total
Funds Funds
Year ended Year ended
30 Sep 2021 30 Sep 2020
£ £
Independent examination 1,320 1,320
Statutory accounts preparation 900 900
Insurance 561 563
Trustee meeting expenses 82 -
2,863 2,783
----- End of picture text -----
5. Expenditure on raising funds
| . Expenditure on raising funds | ||
|---|---|---|
| Unrestricted Funds Year ended 30 Sep 2021 £ Direct staff costs 15,784 Direct other costs 216 Indirect staff costs 1,330 Indirect other costs 2,826 20,156 |
Restricted Funds Year ended 30 Sep 2021 £ - - - - - |
Total Funds Year ended 30 Sep 2021 £ 15,784 216 1,330 2,826 20,156 |
| Unrestricted Restricted Total Funds Funds Funds Year ended Year ended Year ended 30 Sep 2020 30 Sep 2020 30 Sep 2020 £ £ £ Direct staff costs 15,786 - 15,786 Direct other costs 2,161 - 2,161 Indirect staff costs 1,378 - 1,378 Indirect other costs 4,326 - 4,326 23,651 - 23,651 |
Registered company no 04895859 Registered charity (England & Wales) no 1150846
16
Notes to the financial statements
Annual report and financial statements Year ended 30 September 2021
Rights & Accountability in Development Limited
6. Expenditure on charitable activities
----- Start of picture text -----
Unrestricted Restricted Total
Funds Funds Funds
Year ended Year ended Year ended
30 Sep 2021 30 Sep 2021 30 Sep 2021
£ £ £
Support to partner organisations - 35,238 35,238
Direct staff costs 155,814 15,660 171,474
Direct other costs 20,532 10,188 30,720
Indirect staff costs 14,454 - 14,454
Indirect other costs 30,701 - 30,701
221,501 61,086 282,587
Unrestricted Restricted Total
Funds Funds Funds
Year ended Year ended Year ended
30 Sep 2020 30 Sep 2020 30 Sep 2020
£ £ £
Support to partner organisations 2,579 41,325 43,904
Direct staff costs 108,407 56,649 165,056
Direct other costs 23,223 7,108 30,331
Indirect staff costs 14,409 - 14,409
Indirect other costs 36,855 8,376 45,231
185,473 113,458 298,931
----- End of picture text -----
7. Staff costs
| 7. Staff costs | ||
|---|---|---|
| Gross salaries | Total Total Funds Funds Year ended Year ended 30 Sep 2021 30 Sep 2020 £ £ 139,255 148,909 |
|
| Employer's NIC | 11,063 | 12,041 |
| Employer's pension | 4,435 | 4,679 |
| Payrolled staff Research consultants |
154,753 48,289 |
165,629 31,000 |
| 203,042 | 196,629 |
The average headcount during the year was 3 plus 2 consultants (2020: 4 plus a consultant).
The total employee benefits paid to key management personnel during the year was £78,918 (2020: £78,932).
One employee received employee benefits of between £70,000 and £79,999 (2020: 1 employee between £70,000 and £79,999).
Registered company no 04895859 Registered charity (England & Wales) no 1150846
17
Notes to the financial statements
Annual report and financial statements Year ended 30 September 2021
Rights & Accountability in Development Limited
8. Debtors and prepayments
----- Start of picture text -----
Total Total
Funds Funds
30 Sep 2021 30 Sep 2020
£ £
Prepayments 1,199 1,177
Rent deposit 3,119 3,119
4,318 4,296
----- End of picture text -----
9. Creditors – amounts falling due within one year
----- Start of picture text -----
Total Total
Funds Funds
30 Sep 2021 30 Sep 2020
£ £
Trade creditors 3,695 3,063
Accruals 12,340 10,020
HMRC payable 6,654 2,846
Pensions payable 613 772
23,302 16,701
----- End of picture text -----
Registered company no 04895859 Registered charity (England & Wales) no 1150846
18
Notes to the financial statements
Annual report and financial statements Year ended 30 September 2021
Rights & Accountability in Development Limited
10. Analysis of charity funds
----- Start of picture text -----
Balance Income Expenditure Transfers Balance
brought for the in the between carried
forward year year funds forward
Year ended Year ended Year ended Year ended Year ended
30 Sep 2021 30 Sep 2021 30 Sep 2021 30 Sep 2021 30 Sep 2021
£ £ £ £ £
Unrestricted funds
General funds 130,862 223,427 (241,657) - 112,632
Unrestricted funds 130,862 223,427 (241,657) - 112,632
Restricted funds
Corruption & accountability
in the DRC (4,045) - (24,382) - (28,427)
Strengthening accountability 21,945 54,739 (36,704) - 39,980
Restricted funds 17,900 54,739 (61,086) - 11,553
148,762 278,166 (302,743) - 124,185
----- End of picture text -----
Corruption & accountability in the DRC
This is a multi-year grant received as part of a consortium funded by the Belgian government for work on corruption and accountability in the Democratic Republic of Congo. The deficit on this fund at year end is due to be met by a final amount due imminently once the grant is closed down with the consortium.
Strengthening accountability
These were funds provided to support work to strengthen accountability within global economic frameworks.
Registered company no 04895859 Registered charity (England & Wales) no 1150846
19
Notes to the financial statements
Rights & Accountability in Development Limited
Annual report and financial statements Year ended 30 September 2021
----- Start of picture text -----
Balance Income Expenditure Transfers Balance
brought for the in the between carried
forward year year funds forward
Year ended Year ended Year ended Year ended Year ended
30 Sep 2020 30 Sep 2020 30 Sep 2020 30 Sep 2020 30 Sep 2020
£ £ £ £ £
Unrestricted funds
General funds 105,858 246,365 (209,125) (12,237) 130,861
Unrestricted funds 105,858 246,365 (209,125) (12,237) 130,861
Restricted funds
Corruption & accountability
in the DRC 8,516 61,354 (86,152) 12,237 (4,045)
- -
Local partner support (16,854) 38,050 (21,196)
- - -
Corporate accountability 2,968 (2,968)
- -
Strengthening accountability 25,087 (3,142) 21,945
Restricted funds (5,370) 124,491 (113,458) 12,237 17,900
100,488 370,856 (322,583) - 148,761
----- End of picture text -----
Local partner support
These are funds provided to support the Charity’s work with its partner organisation over a two year period.
Corporate accountability
These were funds provided to support legal accountability work in DRC and Zimbabwe.
11. Analysis of net assets
----- Start of picture text -----
Unrestricted Restricted Total
Funds Funds Funds
30 Sep 2021 30 Sep 2021 30 Sep 2021
£ £ £
Current assets 128,434 19,053 147,487
Current liabilities (15,802) (7,500) (23,302)
112,632 11,553 124,185
Unrestricted Restricted Total
Funds Funds Funds
30 Sep 2020 30 Sep 2020 30 Sep 2020
£ £ £
Current assets 140,063 25,400 165,463
Current liabilities (9,201) (7,500) (16,701)
130,862 17,900 148,762
----- End of picture text -----
Registered company no 04895859 Registered charity (England & Wales) no 1150846
20
Notes to the financial statements
Rights & Accountability in Development Limited Annual report and financial statements Year ended 30 September 2021
12. Trustee remuneration
During the year, no trustee received any remuneration (2020: £Nil). No members of the Board of Trustees received reimbursement of expenses (2020: £Nil).
13. Related party transactions
During the year there were no transactions carried out with related parties (2020: £Nil).
Registered company no 04895859 Registered charity (England & Wales) no 1150846
21