Arise Foundation Report and Accounts
Year ended 31 December 2023
Charity Registration Number 1165248
Arise Foundation
About Arise
Arise is a charity based in New York City and London, with a vision of a world without slavery and human trafficking, in which the dignity of every person is respected. Our mission is to build the strength, sustainability and direct impact of frontline groups working to prevent slavery and human trafficking.
As an organisation, Arise consists of two charities, one established in the United States and one registered in England and Wales. The following set of accounts, for the year ended 31 December 2023 only shows those activities that took place in the UK entity . Arise’s principal source of funding is US donations, details surrounding which can be found in Arise’s US accounts.
To gain further information on the ongoing projects of the whole organisation please visit our website at http://arisefdn.org.
Arise Foundation
Contents
Reports
| Reports | |
|---|---|
| Reference and administrative details of the | |
| charity, its trustees and advisers | 2 |
| Trustees’ report | 3 |
| Independent auditor’s report | 9 |
| Accounts | |
| Statement of financial activities | 13 |
| Balance sheet | 14 |
| Statement of cash flows | 15 |
| Principal accounting policies | 16 |
| Notes to the accounts | 19 |
Arise Foundation
Reference and administrative details of the charity, its trustees and advisers
| Trustees | Mrs Karen Bradley Declan Breslin David John Bringle Sister Lynda Dearlove RM MBE Kevin Hyland Mrs Dee Jethwa Sister Patricia Deirdre Mullan Sister Patricia Murray IBVM Ms Wendy Strauss |
|
|---|---|---|
| Chief Executive Officer | Mr Martin Foley | |
| Administrative address Telephone |
Nazareth House 175,169 Hammersmith Road W6 8DB +44 (0) 208 748 3754 |
|
| Charity registration number | 1165248 | |
| Auditor | Buzzacott LLP 130 Wood Street London EC2V 6DL |
|
| Principal bankers | HSBC PO Box 260 46 The Broadway London W5 5JR |
|
| Legal advisors | Stone King LLP Boundary House 91 Charterhouse Street London EC1M 6HR |
Arise Foundation 2
Trustees’ report Year ended 31 December 2023
The trustees present their report together with the accounts of the Arise Foundation (the charity) for the year ended 31 December 2023.
The accounts have been prepared in accordance with the accounting policies set out on pages 16 to 18 of the attached accounts and comply with the charity’s constitution, the Charities Act 2011 and 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 United Kingdom and Republic of Ireland (FRS 102).
Charitable objects
The object of the charity, as set out in its constitution, is the promotion of human rights (as set out in the universal declaration of human rights and subsequent United Nations’ conventions and declarations) and elimination of the infringement of human rights by people trafficking anywhere in the world.
The principal aims and activities of the charity cover the following:
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♦ Raising awareness of human rights issues;
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♦ Monitoring abuses of human rights;
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♦ Promoting public support for human rights;
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♦ Providing technical advice to government and others on human rights matters;
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♦ Commenting on human rights legislation;
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♦ Obtaining redress for the victims of human rights abuse;
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♦ Promoting respect for human rights among individuals and corporations; and
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♦ Relieving the need among the victims of human rights abuse.
When setting the aims of the charity, the trustees have complied with their duty under section 17 of the Charities Act 2011 to have regard to the Charity Commission’s guidance on public benefit. The trustees believe they have demonstrated in detail throughout this report the ways in which the charity has been faithful to this guidance.
Our vision
Arise’s vision is a world without slavery and human trafficking, in which the dignity of every person is respected.
Our mission
To build the strength, sustainability and direct impact of frontline groups working to prevent slavery and human trafficking.
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We deliver this mission through capacity building, including grants, project funding, training, mentoring, research, amplification, advice, and support.
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● Research and amplification must be rooted in and informed by the frontline.
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Wherever possible we will seek to deliver this mission in collaboration with other organisations whose vision, mission and values align with ours.
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Disasters/emergency response is not part of our mission. We will only respond to disasters and emergencies that impact directly on our country programmes.
Arise Foundation 3
Trustees’ report Year ended 31 December 2023
Charitable objects (continued)
Our values
Respect for human dignity. This is our foundation value. All we do, from frontline preventative work to staff management, should uphold this value.
Humility. We demonstrate this through service to others, a participative, locally informed approach, and by understanding the limits of our understanding and experience.
Trust. We strive to build trust in all we do through honesty, openness, inclusion, and transparency.
Our activities
Our approach is rooted in the belief that ending slavery is a joint enterprise. Collaboration is at the heart of what we do, finding and developing dynamic partnerships with frontline abolitionists which are formative for both giver and beneficiary. We catalyse exemplary frontline work against slavery. We do this through capacity building, including grants, project funding, training, mentoring, research, amplification, advice, and support.
Prevention focus
One thread running through our selection of partners is an emphasis on prevention, which we see as the neglected ‘P’ in the famed four-pillar paradigm of anti-trafficking work: Prevention, Protection, Prosecution and Partnership. Prevention work we support includes education, the provision of viable alternatives to the promises of traffickers, awareness raising, and, in some cases, protection. As the US Department of State rightly says: “Without prevention, governments are left to respond to the consequences of human trafficking without coming any nearer to seeing its end.” (United States Department of State 2016 Trafficking in Persons Report)
Accompaniment
Arise uses the term ‘accompaniment’ to express the unique support we provide frontline groups and networks. Accompaniment means standing by frontline groups, listening to their needs, and being flexible enough to respond to them. It is enacted through ongoing availability, mentorship and programmatic support, in everything from proposal writing to project management, safeguarding and fundraising.
Grant making policy
The trustees apply the funds of Arise Foundation at their discretion and in accordance with the charitable purposes and objectives of the charity. The number of projects that can be supported by the trustees is necessarily limited to the funding available for distribution each year.
Activities and achievements during the 2023 financial year
Since being established in 2016 and thanks to the efforts, generosity and support of our country coordinators, delivery partners, staff, trustees and benefactors, Arise has directly affected over 250,000 lives through a network of 148 frontline groups as we strive to prevent slavery and human trafficking.
This year Arise moved a further 58,878 people out of the reach of traffickers and exploiters. This is a 45% increase from 2022, when we focused predominantly on building the capacity of frontline groups to enable this level of impact. Our frontline model is powerful and strengthened by the involvement of our supporters.
In India, capacity building is a key component of our work. During 2023 over 6,800 people were reached through 91 capacity building and network events including, but not limited to, celebration days, legal awareness training, research training and project cycle management. In the Philippines, the Arise supported network has grown to 20 members.
Arise Foundation 4
Trustees’ report Year ended 31 December 2023
Activities and achievements during the 2023 financial year (continued)
During 2023 we organised 9 capacity building and network strengthening training events, attended by 700 participants, representing over 70 frontline groups. In Albania, we continued to work closely with URAT, the local anti-trafficking network. During the year, and thanks to our support, 12 frontline groups were involved in a number of capacity building and network events. These activities reached almost 8,000 people online and over 1,000 people in person over 3,760 hours. Finally, in our most recent country programme in Nigeria, whereas the focus of our work in 2022 was on capacity building activities, during 2023 the primary focus was provision of seed grants to anti-trafficking projects run by Catholic sisters. Alongside these grants, there were nationwide awareness events, youth empowerment programmes, facilitation of the Nigeria Conference of Women Religious Steering Committee and Provincial Team meetings and the first ever anti-trafficking stakeholders’ engagement meetings in Lagos and Enugu state.
Responding to the ongoing war in Ukraine, Arise continued to work with frontline groups in the region to support their anti-trafficking projects with vulnerable individuals.
2023 saw the resignation of our founding CEO, Luke de Pulford and Director of Operations, Jessica Templeman. We are immensely grateful to Luke and Jess for their outstanding contributions to Arise. Their successors, Martin Foley and Angela Proctor, joined Arise during 2023.
Finally, at the end of 2023 Beatrix Brenninkmeijer Schürholz retired as Chair of Trustees. We are deeply appreciative for Trixie’s exceptional leadership during a period of transition. We welcome Kevin Hyland, the former UK Independent Anti-Slavery Commissioner, as Trixie’s successor.
Future Plans
Following a period of discernment and consultation with a variety of stakeholders, we have determined that in order to continue to be as effective as possible in the delivery of our mission, we will focus on the following five strategic objectives during the next 3 years:
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Building the strength, sustainability and impact of the frontline. We will focus our programmes delivery in the 4 countries where we currently operate - India, the Philippines, Albania and Nigeria, consolidating the progress of recent years, ensuring our interventions promote sustainability, and exploring opportunities for growth in our programmatic work in these countries.
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Evaluating our impact on the frontline. We will undertake an independent impact assessment of our country programmes to measure both our achievements and also areas for improvement.
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Resourcing the frontline. We will increase income by a minimum 10% per annum by increasing our corporate givers and individual donors via a targeted outreach.
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● Amplifying the frontline. We will implement an amplification and research programme grounded in the knowledge and experience of frontline groups that seeks to effect policy and cultural change.
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Building a fit for purpose organisation to better serve the frontline. This will encompass governance, management, staffing, diversity, inclusion, and finance.
Arise Foundation 5
Trustees’ report Year ended 31 December 2023
Financial review
Results for the period
A summary of the period’s results can be found on page 13 of the accounts.
Total income for the year amounted to £1,186,193 (2022 – £1,224,167) and was derived from donations from both individuals and organisations including £1,035,477 from Arise Foundation America (2022 - £815,226).
Expenditure in the year totalled £1,083,753 (2022 – £1,094,159). Expenditure includes expenditure on charitable activities of £982,105 (2022 – £1,011,619) and expenditure on raising funds of £101,647 (2022 – £82,540). Details of charitable grants are included in note 3 to the accounts.
Net income for the year and increase in funds for the year, therefore, was £102,441 (2022 £130,008).
Financial position
The balance sheet shows total funds of £631,993 at 31 December 2023 (2022 – £529,552).
Reserves policy and going concern assessment
The charity was established in January 2016 and has a policy of six months of operational expenditure in recognition of responsibilities towards staff and grantees. Operational expenditure excludes expenditure on grants and direct program costs. Free reserves are total unrestricted funds less the amount held within fixed assets and any funds which are designated. At 31 December 2023 the charity’s free reserves were £188,110 (2022 – £168,996), the equivalent to 4.5 months of operational expenditure (2022 – 4.6 months). The proportion of restricted reserves at the end of 2023 included £134,098 of reserves which are to support operational expenditure. This represents a further 3 months of reserves.
The trustees have set the policy for free reserves at six months taking into account the risks associated with fundraising. While fundraising and diversifying the donor base continues to be a priority, the current levels of future donations cannot be fully quantified or predicted in relation to a period of twelve months from the date of signing the financial statements. Based on current assumptions and intentions, the trustees believe it is appropriate for the charity to continue to prepare the financial statements on a going concern basis, while acknowledging that there is a material uncertainty around this conclusion.
Governance, structure and management
Governing document
Arise Foundation is a Charitable Incorporated Organisation (CIO) governed by a constitution dated 20 January 2016 and amended by a resolution dated 12 December 2023. It is a registered charity, Charity Registration Number: 1165248.
Trustees
The charity has nine trustees. There must be at least three charity trustees and no more than twelve.
Every trustee must be appointed by a resolution passed at a properly convened meeting of the charity trustees. In selecting individuals for appointment, the trustees must have regard to the skills, knowledge and experience needed for the effective administration of the charity.
Arise Foundation 6
Trustees’ report Year ended 31 December 2023
Governance, structure and management (continued)
Trustees (continued)
The names of the trustees who served during the year and at the time of approving the accounts are set out below. All trustees served for the entire year except where stated.
| Trustee | **Appointed/resigned ** |
|---|---|
| Mrs Karen Bradley | |
| Declan Breslin | Appointed27th June2023 |
| David John Bringle | |
| Sister Lynda Dearlove RSM MBE | |
| Bernard Hogan-Howe | Resigned 31stJuly 2023 |
| Kevin Hyland | Appointed 2ndOctober 2023 |
| MrsDee Jethwa | |
| Mrs Jane Leek | Resigned 12thDecember 2023 |
| Sister Patricia Deirdre Mullan | Appointed 27thJune 2023 |
| Sister Patricia Murray IBVM | |
| Ms Beatrix Brenninkmeijer Schürholz | Resigned 12thDecember 2023 |
| MsWendy Strauss |
Statement of trustees’ responsibilities
The trustees are responsible for preparing the trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial period which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing the accounts the trustees are required to:
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♦ select suitable accounting policies and then apply them consistently;
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♦ observe the methods and principles of 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 United Kingdom and Republic of Ireland (FRS 102);
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♦ make judgements and estimates that are reasonable and prudent;
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♦ state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
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♦ prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Structure and management reporting
The trustees are ultimately responsible for the policies, activities and assets of the charity. As a result of the international scope of their work, they meet formally as often as necessary to review developments with regard to the charity or its activities and make any important decisions. The trustees use electronic means to be informed and kept up to date with developments within the charity. When necessary, the trustees seek advice and support from the charity’s professional advisers. The day-to-day management of the charity’s activities, and the implementation of policies, is delegated to the Chief Executive Officer.
Arise Foundation 7
Trustees’ report Year ended 31 December 2023
Governance, structure and management (continued)
Risk management
The trustees believe the significant risks facing the charity to be:
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♦ Fundraising: To date, we have depended upon a relatively small group of very generous donors. The lack of diversification of income, a low level of reserves as a relatively new charity, limited capacity in our fundraising team and the prevailing economic climate, means that fundraising is a significant risk. In mitigation, fundraising performance against targets is reviewed regularly by management and trustees. Capacity has been increased through the appointment of a US based fundraiser, and future strategy includes plans to both increase and diversify income.
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♦ Safeguarding: As Arise has grown, and bearing in mind the vulnerability of our beneficiaries, the likelihood of a safeguarding incident occurring in one or more of our projects has increased. So too, therefore, must our management of safeguarding. The trustees approved a revised safeguarding policy in 2023. During 2024 we will focus on implementation of the policy alongside training for staff, contractors, and trustees.
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♦ Loss of key staff: With a relatively small team, we remain conscious that the loss of key staff will be keenly felt. We appreciate the need to ensure staff are fully supported, properly appreciated, fulfilled by their work and provided with appropriate training and professional development opportunities. Also, we ensure that roles are properly defined and institutionalised so that they can be handed on more easily in the event of staff turnover.
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♦ Data protection breach: The risk of personal data held by Arise being accessed by unauthorised individuals or groups has grown. We recognise the need to provide an appropriate policy and security framework, supported by appropriate data protection and cyber security training.
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♦ Loss of funds due to banking failure: Events of the last decade should guard against any complacency. Bank deposits are covered up to £85,000 in the UK and $250,000 in the US. We have significantly more than this on deposit. Therefore, plans are in place to diversify our deposits to mitigate the risk.
The charity maintains a risk register, which is reviewed by the Finance, Compliance and Risk Committee on a quarterly basis and by the full Board annually.
Signed on behalf of the trustees:
K Hyland
Trustee
Approved by the trustees on: 17/07/2024
Arise Foundation 8
Independent auditor’s report Year ended 31 December 2023
Independent auditor’s report to the trustees of Arise Foundation
Opinion
We have audited the financial statements of Arise Foundation (the ‘charity’) for the year ended 31 December 2023 which comprise the statement of financial activities, the balance sheet, principal accounting policies and the notes to the financial statements. 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:
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give a true and fair view of the state of the charity’s affairs as at 31 December 2023 and of its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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 charity 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.
Material uncertainty related to going concern
We draw attention to the Trustees’ conclusion in the financial statements relating to going concern, which indicates that a material uncertainty exists that may cast significant doubt on the charities ability to continue as a going concern. Our opinion is not modified in respect to this matter.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Arise Foundation 9
Independent auditor’s report Year ended 31 December 2023
Other information
The trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and 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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:
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the information given in the trustees’ annual report is inconsistent in any material respect with the financial statements; or
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sufficient accounting records have not been kept; or
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the financial statements are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity 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.
Arise Foundation 10
Independent auditor’s report Year ended 31 December 2023
Auditor’s responsibilities for the audit of the financial statements (continued)
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:
How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise noncompliance with applicable laws and regulations;
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We identified the laws and regulations applicable to the charity through discussions with management and trustees and from our knowledge and experience of the charity sector;
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We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the activities of the charity. These included but were not limited to the Charities Act 2011; and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019); and
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We assessed the extent of compliance with laws and regulations identified above by making enquiries of management and representatives of the trustees and review of the minutes of trustees’ meetings.
We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur by:
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Making enquiries of management and representatives of the trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and
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Considering the internal controls in place to mitigate risks of fraud and noncompliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
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Performed analytical procedures to identify any unusual or unexpected relationships;
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Tested and reviewed journal entries to identify unusual transactions;
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Tested the authorisation of expenditure;
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Tested the implementation of key financial controls;
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Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
Arise Foundation 11
Independent auditor’s report Year ended 31 December 2023
- Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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Agreeing financial statement disclosures to underlying supporting documentation;
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Reading the minutes of meetings of trustees; and
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Enquiring as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL
Date: 2 September 2024
Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Arise Foundation 12
Statement of financial activities Year to 31 December 2023 (including income and expenditure account)
| Notes 2023 General Funds £ 2023 Restricted Funds £ 2023 Total Funds £ Income from Donations 1 391,235 794,269 1,185,504 Other income 689 -- 689 |
2022 General Funds £ |
2022 Restricted Funds £ |
2022 Total Funds £ |
|---|---|---|---|
237,963 |
984,828 |
1,222,791 |
|
1,376 |
-- |
1,376 |
|
| Total income 391,924 794,269 1,186,193 |
239,339 |
984,828 |
1,224,167 |
| Expenditure on Raising funds 2 77,743 23,904 101,647 Charitable activities: Elimination of the infringement of human rights 3 297,184 684,921 982,105 |
|||
60,508 |
22,032 |
82,540 |
|
404,281 |
607,338 |
1,011,619 |
|
| Total expenditure 374,927 708,825 1,083,752 |
464,789 |
629,370 |
1,094,159 |
| Net income / (expenditure) for the year and net movement in funds 5 16,997 85,444 102,441 Reconciliation of funds Balances brought forward at the start of the year 174,094 355,458 529,552 |
|||
(225,450) |
355,458 | 130,008 |
|
399,544 |
-- |
399,544 |
|
| Balances carried forward at the end of theyear 191,091 440,902 631,993 |
174,094 |
355,458 |
529,552 |
All recognised gains and losses for the period are included in the statement of financial activities.
Arise Foundation 13
Balance sheet 31 December 2023
| Notes 2023 £ Tangible assets Fixed assets 8 2,981 Current assets Debtors 9 17,359 Cash at bank and in hand 634,849 |
2022 £ |
|
|---|---|---|
| 5,098 | ||
| 74,323 | ||
| 625,305 | ||
| 652,208 Current liabilities Creditors: amounts falling due within one year 10 (23,196) |
699,628 | |
| (175,174) | ||
| Net current assets 629,012 |
524,454 | |
| Total net assets 631,993 |
529,552 | |
| Represented by: The funds of the charity Restricted Funds 440,902 Unrestricted General Funds 191,091 |
||
| 355,458 | ||
| 174,094 | ||
| Total Funds 631,993 |
529,552 |
Approved by the trustees and signed on their behalf by:
K Hyland
Trustee
Approved by the trustees on: 17/07/2024
Arise Foundation 14
Cash Flow Statement 31 December 2023
| 2023 £ Cash flows from operating activities Net cash provided by operating activities A 10,544 Cash flows from investing activities B (1,000) |
2022 £ |
|---|---|
202,233 |
|
| (6,075) | |
| Change in cash and cash equivalents in the year 9,544 Reconciliation of net cash flow to movement in net funds: Cash and cash equivalents at 1 January 625,305 |
196,158 |
429,147 |
|
| Cash and cash equivalents at 31 December C 634,849 |
625,305 |
| A Reconciliation of net income to net cash (used in) from operating activities | A Reconciliation of net income to net cash (used in) from operating activities | A Reconciliation of net income to net cash (used in) from operating activities | A Reconciliation of net income to net cash (used in) from operating activities | |
|---|---|---|---|---|
| 2023 | 2022 | |||
| £ | £ | |||
| Net income for the reporting period (as per the statement of financial | ||||
| activities) | 102,441 | 130,008 | ||
| Adjusted for: | ||||
| Depreciation charges | 3,117 | 3,346 | ||
| Decrease / (Increase) in debtors | 56,964 | (56,807) | ||
| (Decrease) / Increase in creditors | (151,978) | 125,686 | ||
| Net cash provided by operating activities | 10,544 | 202,233 | ||
| B Cash flows from investing activities | ||||
| 2023 | 2022 | |||
| £ | £ | |||
| Purchase of tangible fixed assets | (1,000) | (6,075) | ||
| Net cash used in investing activities | (1,000) | (6,075) | ||
| C Analysis of changes in net debt | ||||
| At 1 | At | 31 | ||
| January | Cash December |
|||
| 2023 | flows 2023 |
|||
| £ | £ £ |
|||
| Cash and cash equivalents | 625,305 | 9,544 634,849 |
Arise Foundation does not have any borrowings or lease obligations. Net debt consists therefore of the cash at bank and in hand only.
Arise Foundation
Principal accounting policies Year to 31 December 2023
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below:
Basis of preparation
The accounts 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
These accounts have been prepared for the year to 31 December 2023 with the comparatives for year ended 31 December 2022.
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.
The charity constitutes a public benefit entity as defined by FRS 102.
The accounts are presented in sterling and are rounded to the nearest pound.
Critical accounting estimates and areas of judgement
Preparation of the accounts requires the trustees to make significant judgements and estimates.
Other than the allocation of governance and support costs between the various categories of expenditure, there are no items in the accounts where key judgements and estimates have been made.
Assessment of going concern
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts, although the current levels of future donations cannot be fully quantified or predicted in relation to this period. Based on current assumptions and intentions, the trustees believe it is appropriate for the charity to continue to prepare the financial statements on a going concern basis, while acknowledging that there is a material uncertainty around this conclusion.
Income recognition
Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.
The principal source of income is donations.
Donations, receivable in cash, are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
Donated services and facilities provided to the charity are recognised in the period when it is probable that the economic benefits will flow to the charity, provided they can be measured
Arise Foundation 16
Principal accounting policies Year to 31 December 2023
reliably. This is normally when the service is provided/the facilities are used by the charity. An equivalent amount is included as expenditure. Donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain facilities or services of equivalent economic benefit on the open market.
In accordance with the Charities SORP FRS 102 volunteer time is not recognised.
Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. The classification between activities is as follows:
Expenditure on raising funds comprises the cost of fundraising events as well as support costs;
Expenditure on charitable activities includes all other costs associated with furthering the charitable purposes of the charity; the elimination of the infringement of human rights by people trafficking anywhere in the world by all or any means possible. Such costs include grants made in accordance with the charity’s objects and administration costs.
Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial period are accrued. Grants where the beneficiary has not been informed or has to fulfil performance conditions before the grant is released are not accrued but are disclosed as financial commitments in the notes to the accounts.
All expenditure is stated inclusive of irrecoverable VAT.
Allocation of support and governance costs
Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support including in the form of financial procedures.
Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.
Support and governance costs are apportioned using percentages based on the direct expenditure incurred on each of the activities of the charity.
Tangible fixed assets
Individual assets with an expected useful life exceeding one year are capitalised at cost. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Computers and equipment
33% on a straight line basis
Debtors
Debtors are recognised at their settlement amount, less any provision for non-recoverability.
Arise Foundation 17
Principal accounting policies Year to 31 December 2023
Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
Creditors and provisions
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
Fund structure
Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.
Unrestricted funds comprise those monies which may be used towards meeting the charitable objectives of the charity and which may be applied at the discretion of the trustees.
Foreign currencies
Assets and liabilities in foreign currencies are translated into Sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into Sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the net movement in funds.
Financial instruments
The charity has a contract with its bank to hedge US dollar income. The fair value of the option at the year end date is assessed as being immaterial and is therefore not included in the accounts.
The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows:
Financial assets – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.
Cash at bank – classified as a basic financial instrument and is measured at face value.
Financial liabilities – accruals and other creditors are financial instruments, and are measured at amortised cost.
Pension costs
Contributions in connection with the charity’s defined contribution scheme are charged to the statement of financial activities in the period in which they become payable to the scheme.
Arise Foundation 18
Notes to the accounts Year to 31 December 2023
1. Income from: Donations
| Donations 2023 General £ 2023 Restricted £ 2023 Total £ Arise Foundation America Inc. 310,478 724,999 1,035,477 Gift Aid 9,073 2,800 11,873 Trustees (see note 12) 25,000 11,200 36,200 Other 46,684 55,270 101,954 |
2022 Genera £ |
l 2022 Restricted £ |
2022 Total £ |
|---|---|---|---|
91,474 |
723,752 |
815,226 |
|
796 |
1,500 |
2,296 |
|
2,285 |
6,000 |
8,285 |
|
143,408 |
253,576 |
396,984 |
|
| Total 391,235 794,269 1,185,504 |
237,963 |
984,828 |
1,222,791 |
Donations include donations in kind amounting to £0 (2022 - £58,456) in relation to staff costs and £48,000 (2022 - £48,000) in relation to rent costs..
2. Expenditure on: Raising funds
| 2023 General Funds £ Staff costs (note 6) 39,441 Fundraising costs 5,213 Travel 4,480 Allocated support and governance costs(note 4) 28,609 |
2023 Restricted Funds £ 2023 Total Funds £ -- 39,441 -- 5,213 -- 4,480 23,904 52,513 |
2022 General Funds £ |
202 Restricte Funds |
2 d £ 2022 Total Funds £ |
|---|---|---|---|---|
32,139 |
– 32,139 |
|||
2,618 |
– 2,618 |
|||
4,407 |
– 4,407 |
|||
21,344 |
22,03 |
2 43,376 |
||
| Total 77,743 |
23,904 101,647 |
60,508 |
22,03 |
2 82,540 |
3. Expenditure on: Charitable activities
| 2023 General Funds £ 2023 Restricted Funds £ 2023 Total Funds £ Grants . India 99,634 10,771 110,405 . Nigeria 10,000 -- 10,000 . Rome -- 62,013 62,013 . Ukraine -- 20,569 20,569 . Romania -- -- -- . Philippines -- 67,995 67,995 . Albania -- -- -- |
2022 General Funds £ |
2022 Restricted Funds £ |
|
|---|---|---|---|
2022 Total |
|||
Funds £ |
|||
122,636 |
9,058 |
131,694 | |
10,017 |
-- |
10,017 | |
-- |
-- |
-- | |
-- |
138,645 |
138,645 | |
13,155 |
-- |
13,155 | |
-- |
35,411 |
35,411 | |
22,269 |
123,867 |
146,136 | |
| Totalgrants charged 109,634 161,348 270,982 |
168,077 |
306,981 |
475,058 |
| Direct costs . Program costs 60,506 250,198 310,704 . Bank fees 2,299 815 3,114 . Communications -- -- -- . Depreciation 198 -- 198 . Office costs 57 -- 57 . Travel costs 10,058 -- 10,058 . Staff costs(note 6) 38,908 138,032 176,940 |
|||
56,095 |
117,372 |
173,467 | |
1,327 |
-- |
1,327 | |
1,000 |
-- |
1,000 | |
198 |
-- |
198 | |
-- |
-- |
-- | |
5,855 |
-- |
5,855 | |
74,842 |
89,061 |
163,903 | |
| TOTAL DIRECT COSTS 112,026 389,045 501,071 |
139,317 |
206,433 |
345,750 |
| Allocated support and governance costs(note 4) 75,524 134,528 210,052 |
96,887 |
93,924 |
|
| 190,811 | |||
| 297,184 684,921 982,105 |
404,281 |
607,338 |
1,011,619 |
Arise Foundation 19
Notes to the accounts Year to 31 December 2023
Support and governance costs
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Staff costs (note 6) | 85,817 | 67,891 |
| Office costs | 78,328 | 96,618 |
| Travel | 3,193 | 10,592 |
| Communications | 5,251 | 6,824 |
| Governance costs: | ||
| . Staff costs (note 6) | 40,623 | 22,903 |
| . Consultants | 40,575 | 21,379 |
| . Auditor’s remuneration | 8,778 | 7,980 |
| 262,565 | 234,187 |
Support and governance costs have been allocated to expenditure on raising funds and charitable activities as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Raising funds | 52,513 | 43,376 |
| Charitable activities | **210,052 ** | 190,811 |
| 262,565 | 234,187 |
The charity allocates its support costs using percentages based on the direct expenditure incurred on each of the activities of the charity.
4. Net income for the period
This is stated after charging:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Auditor’s remuneration (including VAT) | ||
| .Statutory auditfees | 8,778 | 7,980 |
5. Staff costs and remuneration of key management personnel
Staff costs during the year were as follows:
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 300,762 | 254,201 |
| Social security costs | 27,385 | 22,446 |
| Pension costs | 14,674 | 10,189 |
| 342,821 | 286,836 |
The average number of staff employed during the year is 7.6 full-time 7 (2022 - 7) and 3 part-time (2022 - 2)
Arise Foundation 20
Notes to the accounts Year to 31 December 2023
Staff costs and remuneration of key management personnel (continued)
1 member of staff received employee benefits (excluding employer pension costs) in the range of £60,001 - £70,000 (2022 – no employee received employee benefits greater than £60,000).
Included in staff costs above is £nil (2022 - £58,456) total remuneration paid on behalf of the charity. The value of the time spent in this role was also included within donations in kind income.
The trustees consider that they, together with the senior leadership team of the Foundation, comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. Trustees are not remunerated. The total remuneration (including taxable benefits and employer’s pension contributions) of the key management personnel for the year was £192,917 (2022 - £173,672).
One trustee received reimbursement of travelling expenses in the year of £1,356 (2022 – £nil).
6. Taxation
Arise Foundation is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.
7. Tangible fixed assets
| Computers | ||
|---|---|---|
| and | ||
| equipment | ||
| £ | ||
| Cost | ||
| At 1 January 2023 | 15,117 | |
| Additions | 1,000 | |
| Disposals | – | |
| At 31 December 2023 | 16,117 | |
| Depreciation | ||
| At 1 January 2023 | 10,019 | |
| Charge for year | 3117 | |
| Disposals | -- | |
| At 31 December 2023 | 13,136 | |
| Net book value | ||
| At 31 December 2023 | **2,981 ** | |
| At 31 December 2022 | 5,098 | |
| ebtors | ||
| 2023 | 2022 | |
| £ | £ | |
| Accrued income | -- | 60,000 |
| Gift Aid receivable | 4,384 | 2,296 |
| Other debtors | 12,975 | 12,027 |
| 17,359 | 74,323 |
8. Debtors
Arise Foundation 21
Notes to the accounts Year to 31 December 2023
9. Creditors: amounts falling due within one year
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Accruals | 17,572 | 13,898 |
| Grants payable | -- | 157,128 |
| Pension contributions payable | -- | 1,595 |
| Other creditors | 5,624 | 2,553 |
| 23,196 | 175,174 |
10. Restricted funds
| At | At 31 | ||||
|---|---|---|---|---|---|
| 1 | January | New | Utilised/ | December | |
| 2023 | designations | Released | 2023 | ||
| £ | £ | £ | £ | ||
| Projects fund | 355,458 | 794,269 | 708,825 | 440,902 | |
| 355,458 | 794,269 | 708,825 | 440,902 |
Projects fund
The projects fund relates to income received from funders which are restricted to use on specific projects. All restricted funds received during the year were used in projects as intended to fund overheads, staff salaries and grants.
11. Related party transactions
During the year ended 31 December 2023, one trustee made donations to the Arise Foundation, of £36,200 (2022 – £8,285 donated by one trustee).
12. Related entity
The charitable company is closely related to Arise Foundation America Inc, a US tax exempt organisation registered in the state of Delaware and was founded to carry out the work of that entity in the UK.
Apart from the donations received as shown in note 1 to the accounts, there were no transactions with the parent during the period.
Arise Foundation 22