Regtstered Trurnber: 09389265 Charlty number: 1165742 SUSTAINABLE FIBRE ALLIANCE UNAUDITED TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 llwii ACEWJPBV* 2511012023 COMPANIES HOUSE 23 WR Partners Protecting your future.
SUSTAINABLE FIBRE ALLIANCE IA company limited by gyardntee) CONTENTS Page Reference and admlntstratlve details of the Charity. Ils Trustees and advlse Tiustses. rnport Independent examlnefs report Statèment ol financlal athlllos 10 Balance sheet Stalement of ush flows Notes to the fjnancial statements 14-28
SUSTAINABLE FIBRE ALLIANCE IA ct)mpany Ilmlled by guaranteel REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 JANUARY 2023 Trustees Una Jones. Chief Executive Andreas Wilkes Chartes Hubbard Ireggned 30 November 2022} Simon Cotton (resigned 20 July 2022} Eleni Thrasyvoukju {resign&J 20 Juty 20221 Paul Lrttlefair Tana Dai {app)inted 8 June 2022) Karen Perry lappc4nted 8 June 2022) Jrxetyn Wilkinson Irestgned 20 July 20221 Company registsr•d number 09389265 Charity r•glst•r•d Trumber 1165742 Regi5ter•d oifKe 41 Br A*Elon Mold Flintshire CH7 1LT Chlef execulive officer Una Jones ¢ounlants WR Partners Chartered AccounLw Belmont House Shrewsbury Business Pa Shrew5bury Shropshire SY2 6LG Page 1
SUSTAINABLE F18RE ALLIANCE IA ¢¢)mp•ny Ilmlted by guarnntsel TRUSTEES. REPORT FOR THE YEAR ENDED 31 JANUARY 2023 The Trustees prèsent theif annual report together wth the financKql statements of the Charty for the period from 1 FebrLry 2022 10 31 January 2023. The Annual report swes the purposes of both a Trustees, report and directors. report under company law. The Trustees corbfirm that the Annual repcfft and finala1 statements of the charilable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the prowsions of the Statement of Recommended Practice ISORPI applicable lo charities preparing their aecounts in accc¥dance wrth the Finanual Repo.n9 StarKlaTd apIcatIe in the UK and Republie of Ireland IFRS102) leffeetNe 1 January 2019). Since the Charity qualifres as small under tiOn 382 of the Companies Act 2006. the Strategic report requlre¢J rnedium and large companies under the Companies Act 2006 Istrategic Report and Directors, Report) Regulations 2013 has been omitted. Objectives and activitie5 a. Poll¢les and objoctS¥9s The Sustainable Fibie Alliance is a gk)bal multi-slakeholder initrative with a mission lo ensure the long-term viability of the cashmere sector. We promote SFA Cashmere Standard to encourage the adoption of respon&ble pro¢JuclK)n practices that minimise enviwmentsl ifflpa#. safeguard herder VelIhOodS and meet high animal welfare stsndards. The objectives ol the charty are.. To pr¢)mole sustainae dèvel¢)pment for the benefft ofthe W1C by". the preSeNati. conservab.on arwj the wotecb'on of the environment and the prudent use of resourees the Telief of povety and lh8 improvement of the con(tions of life in socialty economicalty disadvantsged commUne$ the promots.on of sustainable means of •thievirwJ ecorn)mic growrth and regeneration to advance the eihJcalion of the public in subj.ects relating to suStainae devdopment and the pTotects'on, enhancement and rehatM"lil8lion of the environment and lo promote study and research in such $ubjed$ provided that the useful results of such udy are dissemined to Ihe public at large. The wsion of the SFA is that all cashmere is 0dLed in an enwronmentalty In"endty way that safeguards the livelihoods of herding communities and wotects the imptsnt. fragile environment in which they live. In setting objectives and planning for ath"vities, the Trustees have given due Csjerat to general guidance published by the Charity Commissim L911rj lo public benefft. including Ihe guidance 'Public benefrt.. running a charrty (P821'. b. Strategies for cht•¥ing obj•cti¥es The Key Slrategic aims that that shape our work are.. Envirmmental resilnce in cashmere woducKvJ regions. Improving animal welfare wthin cashmere products'on. Improved Iow-lemi prospects for herdiNJ communiti'es and faeT$ that rety on cashmere. Page 2
SUSTAINABLE FIBRE ALLIANCE IA cixnpany limited by guarantee) TrUSTEES' REPORT ICOllllNUED} FOR THE YEAR ENDED 31 JANUARY 2023 Objectlves and actlvltjes Icontlnuedl c. Acfjvltles undertaken to achleve obSectl¥es The SFA works with the end to eThJ cashmere SUFvly chain. eonrth"ng herders lo brands and retailers in the global fashion industy. We offer a 9lobally-focused. 5o¢ally-adapted solution fN sustainable cashmere. We promote the SFA cashme Slan¢Yard to enc£•urage the adopt of resnsie practices that benefit people. livesloek and the environment. Our standard allows companies lo demonslrale their commrtment lo transfomiing the cashmere Sect and make credible dabms at¥)ul the suslainakn.lrty of thwr cashmere products. d. Maln a¢VitieS undertaken to further the CharltyS purposes for the publk benefll The Trustees have referred lo the guidarte contaned in tr Chanty Commis$h'S general guidance on public benefft wfn reviewing the charitys awns obpdives in planning fijlure a(knties. Achlevements and performance a. Main aehlevements ofthe Charlty In the twefve month pen'od lo 31.01.23 the Sustainatde Fibre Al1rare ISFA} expanded ils activrties whilst ...' strengthening the administration fvnctions that support it. SFA'S activities and scope of influence have expanded due to the chartys increased Interact wth internab.onal partrws. Membership has remained stable whilst we have had increased ctrIbUtn$ from project *fjrk arKJ registrations I SFA'S cha of Custody program. b. Revlew of activlties In 2022, the SFA saw her¢Jer communrties ioiThng SFA have almost th)ubled in number from Ihe wevious year across China and Mongolia. The SFA continued ils increased focus m training and engagement wi1h herders and supporting mèrket,... connections for respwsibly produced cashmere. In 12 Mlhs lo 31.01.23, SFA'$ certification and work programme continued to irease its participants. This has led to demand for SFA fibre increasing. bringing beneffts to the herders vtho predu rt th in the SFA standard. This would not have been p0ble wthout our membets. ce support. the tireles5 Work of our team in the UK antl Mongolia. and the commitment and dedication of our Strateg partner in China IICCAW, that has ensured SFA is in an inwsing ptsOn of strength to athieve the ctsiectives described above. Th• SFA global standards and certification programm• strengthened and dev•10d Following tsvo years of revision and consuttatr"on, the SFA launched ils new global standard system in December 2022. The SFA Cashmere Standard defines best praCtIS for responsble cashmere production. The standard vers the most pressing susLiinability issues associated wilh fibre production and outlines the intended outcomes achieved through the standard's adoption; the standard Tevision and consutiations folk)wed a rigorous mullistskeholder, scIenbased review process. putts"ThJ peOe at its heart and actively engaging herders, maintaining SFA'5 commitment to the 1ntemakn.onal sw.al ar Envifonmental ACedItation and Labelling Alliance's IIS6ILI Standard Setting Code and adherence to transparency. Page 3
SUSTAIMABLE F18RE ALLIANCE IA company Ilmited by guarantee TRUSTEES. REPORT Icoi¥nNUED) FOR THE YEAR ENDED 31 JANUARY 2023 A¢hiev•ments and performance (continued) Supportlng. women and youth beyond slandard Impl•ment*tk>n Beyond slandar(J setting and implementation we continue to support V•tynen. ywth communilies across the regions in which we Wofk, examples of our is as fdk)ws'. Women's empowerment prwam involved over 10(K) herding Y+Men in the Cashme supply chain. supported by J Crew. Young herders education program beneffted a total of 760 sdwl children from 7 schools, across 4 regions of Mongoli8". SUPPOrted by Johnslons of Elgin. Community governance development support and training- financial trairing provided to the herder communty kaders lo iKsease thr financial reIlenCe. This work was supported by Khan Bank. SFA herder cooperalives received 'Green Loan- finarte fr¢)m Khann bank al preferential rates. 37 Herder etroperatives benefited from thi8 program. Looklng forward In 2023, the SFA will continue lo deeFen impact aUOS5 our herder communits.es and further seale our standard across new chosen countries. It ts becoming ¢v¢r dearer that the urgency of our mtssK)n in suppth'ng biodiversty, and increasing need to build resilience against the climate needs systemic change * natw)nal and inl8rnational level and that sl9nc8nt scaling up of funding is requi. We wll wntinue to facilitate sector wide collaborations and create an enabling environment for an integratèd landseape approach for rangeland suslainabilty lo drive change at scale in partnership wrth local, regional. national and intematicffial partner5. The stsndard and best prath.ces that SFA has developed have the potential to help wder rangeland-based livestock sector value chains, enabh'ng foundations for a systematK approach to reduce vulnerabilty to climate change and enhance the resilience of herdef wmmuniti'es globally. Financial review . Golng Concern After making appropfiate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in opeth'onal existence for the foreseeab future. For this reason, they continue to adopt the going concern basis in weparir¥J the financlal statements. Further details regarding the adoption of the going concem basis can be found in the accounts"ThJ poliues. Page 4
SUSTAINABLE FIBRE ALLIANCE IA company limited by guarantsel TrUSTEES' REPORT ICOP¥llNUEDI FOR THE YEAR ENDED 31 JANUARY 2023 b. Reserves polky The Trustees have adopted a policy of hawng minimum total reserves of £50.0(M). in order to guarantee_ ontinuity of charitae activrties. The Trustees will further revRw this policy as the activities of the Charity ontinue to grow. The Charivs reserves at 31st January 2023 amounted to £95,649 {2022.. £53,366}. Free reserves at 31 January 2023 were £77.765 12022:.£10.9791. Page 5
SUSTAINABLE FIBRE ALLIANCE (A company Ilmited by guarantse) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENOED 31 JANUARY 2023 Structure. govornance and managemenl a. Constitutlon The company is registered as a Charit company limited by guarnnlee itorporaled in England and Wales. It was set up by Artides of A$slatIC, ¢Jated 14th Januwy 2015 and then amended on 4th February 2016. The company was granted tharilable stalus 24th Febry 2016 and is a registered charity number 1165742. b. Melhods of appointment or election of Trustees The management of the eompany is the responsibilty of Ihe Twslees. who are elerAed by ordinary resolution by the exists.ng Trustees in accOrdar vthh the companys arte$ of association. ¢. oryanIsa0Tra1 strncture and dKlslon-maklng pollcles The charity is managed by rts Board. which cong$1s of rts Chair (also a Trusteel, its CEO {also a Trustee}, and four other Twslees. Management of day to day operations is delegated to the CEO, supported by teams in the UK and in Mongolia. The Charity Commis$i¢)n hove granted pemission for the CEO lo draw remuneration for her services as CEO as well as being a Tnjstee. d. Rlsk managemenl SFA have a Risk Register proeedure in pl&e for evaluab.ng the strategic. cyerational. ffinance and compliance risks that the charty is exposed to. The Risk Register is used to suppcwt the identrfication and evaluation of risk. as %vell as the desKJn and implement effeth.ve measures, not onty to reduce risk and limit the impact if such risks materialise. Trustees regularty assess the major risks to charity is exposed, in particular those related to the operations and finances of the ¢harty, both in the UK and in Mongolia. The Trustees have assessed both the impact and likelihood of each source of risk and are satisfied that systems and procedures are in place lo mits.gate our expKJ5ure Ire ever FM)ssible. Plans for futsre perlods The tyeosion was tsken to revise the SFA codes rf PTacti¢e structure into a global voluntary standard with consistent implementsbon befvfftn counln"es. ensuring that all certffied producers and processors apply critical social, enV1Ments1 and animal Welfa urteria. As a membership alliance. it has been crucial lo use Ihis revision as an opportunity lo gain consensus and a deeFer understanding of the links between the latest scientific understanding and tTaditional knowledge, pracb.ces and rtOanCe an¢J to gamer buy-in antt support frorn a balance of stakeholders Igovemmental, academic, NGO'S. producers). In line with ISEAL best practices, the muf(islakeholder outTeach continues lo allow for targeted stskeholder input and public consultation, lo ensure breadth and depth of expertise invdvement for a robust standard and a$swae system that generates Credible, positive change to the SFA and the communibes in vthich Y supm. The development and implementation of the Global stpA)dard act as a catal1 for continuous, measurable improvements by producers and processors around environmental, swal and animal welfare issues. AloThJside this, the SFA wll continue to engage in JectS which chamyon sustsinable development and address specific issues or blocks to sustainable development along the cashmeie value chain. Strong partnerships with a variety of trusted and esteerned projeet partners have been cemente{1 and are belng fvrther developed. These indude membership engagement on projects addressing iSSLS 1Ch as John Lews, support of Produeer Cooperatives. J.Crew support of Women's Emwjwerrnent projects and yrg herder training supported by Johnslon's of Elginl, with various UN agenoes (s{h as FAO. UNDP and UNIDO). NGOS Isuch as WWF}. financial Institutions such as E8RD. World Bank and Khan Bank. academic institutions and espeoally ICCAW Page 6
3USThJllABLE FIBRE ALUANCE IA company lknlt•d ty ouarnnt••) TRUSTEES. REPORT ICONTINUEOI FOR THE YEAR ENDED 31 JANUARY 2023 Plans lorfutsr• p•rfods I1nod1 Ir pfjrtrw In Chiw This app l ensuffj a coh•rwrt effort Ihat supports SU8t8inabilty In the caghme industy that herders. IIAir l•rnlw' Ir¥h)ots le )blrorthenlal Impxt and raisl 8nimal wfjllare. Wth the current Global le on effedi¥ ol suslainabThty in1bN. tho introduclion Df lCoMed r•gul4lton (especial afound •nvnrwnental daims a1 due d1pJeI and increased ty corporatos. SFA action along the end40 ¢a$hrneTe vau8 ¢tr0in. Sl•lem•nt of Trugt•ts' rnsponslbilitl•• The Trustees Iwbo are th Ihe of tr Charty the wrymes of ecmpany law) are responsble for preparing the Tru5tees' rwt aKI the finaal stslem8nts accLxilance wrth applicab and United Kingdm Accolurting Stand8rd$ Iunited Ggnernltyknemed A¢GountYg Practtt}. Company law rewres the TnJstee8 to Pp8ft financial slatemenls lor each fin8ncwl . Under Company law, th• Tru8lees mu8t not approve the financial $18temonts unless they arn satthd thal they givo a true and fair vw of the state ol affairs ol the Chanty and CA Is inccrring M$cw$ and 8Wication of resourcos. induding h8 Incomo 8nd expenditure, forthat pelic. In prèping Ihese financid slat•nen18. theTn5 are required to.. select surtablo armunting pokr88 and then appty o>nststenty, obseThe the nthods ar¥J princw oftr• Charilie6 SORP (FRS 102): make I19MentS and coUrt1r e51imatsS that are reo¥xth and wudenl sMe whether 8pplicabl8 UK ALrounting Stsnd•rd$ FRS 102) been folknAd. subpd to ary m•twi•l departur diydosed and explained m thB finwK4al steMe., prapafv the ffinancia ststements on wrvJ ¢onwn b06is unless l 15 in•ppropriote to prosume that the Charity will ctinUe in busine$8. the Chartys lrnnsactiM$ •xl disdose wrth rn•sonabbe x¢urn¢y at any time the financiol position of th8 Chawity and enable them to enyjre t1¢ IhB finan¢i81 ststWTKnts ¢ompty wrth the Ccmpanies Act 200S. Th8y are also responsible for safeguardin9 the assets of the Charity and herK for t*ing reasonable steps lor the prevention and detection offraud Ond dhgr pwo4•d by ots¢fthe M)berS of thg bowd Ttee5 ar•J sIgj M th8Sr behalfty. go Un8 Jono¥ Chief ExeoJts¥e LoiioIIOLS Page 7
SUSTAINABLE FIBRE ALLIANCE {A comp•ny Ilffllted by guarantee INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 JANUARY 2023 Indopendent Examinerfs Report lo the Tnte•S of Sustalnable Flbre Alllance {Ihe Charltyj I rep)rt to the charity Trustees my examinat of the accounts of the Charity for the year ended 31 January 2023. Responslbllltles and Basb5 of Report As the TfU$tees of the Charty land its direclrxs for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of Ihe Companies Act 20C6 Ilhe 2006 Act?. Having Satisf myseK that tt accounts of the Charty we rtrJt required to be aLrted under Part 16 of the 2006 Act and a eligible for independent examination. I rew)rt in respect of my examination of the Charitys accounts carried out under seth.on 145 of the chanb.es Act 2011 {Ihe 2011 Act'l. In carrying out my examinatson I have followed the Direetions given by the Charrty Ccxmisgon under seclion 1451511bl of the 2011 Act. Page 8
SUSTAINABLE F18RE ALUANCE IA company limlted by 9uarantee) INDEPENDENT EXAMINER'S REPORT ICONTINUEDI FOR THE YEAR ENDED 31 JANUARY 2023 Independent Examlnefs Statement Since the Charitys gross irwme exceeded £250.000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualtfied to undertake the examinabon because l am a member of the Institute for Chartered Accountants in England artd Wale5. which is one of the listed bodies. I have completed my examir*knn. I confim that no matters have come to my attention in eonneetion wth the examination giving me cause to believe.. accounting records were not kept in ffjSFeCt of Charity as reqiired by secaion 386 of the 2006 Act", or the accounts do not accord with UK¥se records." or the accounts do Th)t compty with the accounkn.ng requirements of section 396 of the 20C6 Acl other than any requirement that the accounts give a and faif view is not a matter cOnsered as part of an independent examinab'on" or the a¢Unts have not teen pPared in xcrKdance wilh the meth¢>Js and principles of the Slalement of Recommended Practice for accounting and PortIng by Chant lapplicable to charities preparing their accounts in accordance with the Finanaal Rewrting SlarKlard appliCae in the UK and Republic of Ireland IFRS 102)1. I have no concems and have come aL¥oss no other matters in eonnectKJn with the examination to thch attention should be drawn in this report in order to ende a proper understsnding of the accounts to be reathed. Thls report is m•Ye sdely lo the Chèrivs Trustees, as a ty. in accordance wth Part 4 of the Charities IAccounts and Reports} Regulations 2008. My work has been undertaken so that I might state to the Charitys Trustees those matters l am required to stste to them in an IrKJependenl examinerfs fewt and for no other purpose. To the fullest extent pemitted by law, I do not accept or assume resw)nsibility to anyone other than the Charity and the Chariws Trustee5 as a b(MJy. for my wth or for this report. Signed". S J Tweedle 8Sc FCA DCh4 WR Partners Chartered Accounlanls Belmont House Shrewsbury Bu&ness Park Shrewsbury SY2 6LG Page 9
SUSTAINABLE F18RE ALLIANCE IA Company Ilmlted by guarantee) STATEMENT OF FINANCIAL ACTMTIES (INCORPORATING INCOME AND EXPENDITURE ACCOLINTI FOR THE YEAR ENDED 31 JANUARY 2023 As reslaled Tolal funds 2022 Restrlcted Unrestrlcted funds fund$ 2023 2023 Total funds 2023 Income from: Donations and legaoes 154.170 620,918 775.088 529,038 Total Income 154.170 620.918 775.088 529,038 Expenditu on: CharilabK8 actiwbes 212h13 555.392 767.806 557,020 Tol•l ¢xp•nditurn 212,413 555.392 767,805 557,020 Net lexpendilureVincom• Transfers beeen lunds 158.2431 11.334 65.526 (11.3341 7,283 (27.982) 14 Net movement In funds 146.9091 54,192 7.283 (27,982) Reconcillatlon of funds: Total fund5 brought loard Nel movement in funds 58.522 146.909) 88.366 7.283 116,348 {27.982) 64.192 Tolal funds carrled forwanl 11,613 84.036 95.649 88.366 The Slalement of Finanaal ActleS includes all gains and losses recognised in the hear. The on pages 14 to 28 fom) part of these finarKial statements. Page10
SUSTAINABLE FIBRE ALUANCE IA company lirnited by guarantee) REGISTERED NUMBER: 09389265 BALANCE SHEET AS AT 31 JANUARY 2023 2023 2023 2022 2022 Note Fixed assets Tangible assets 6.271 5.823 6.271 5,823 Current assets stks Deblo Cash al bank and in hand 10 11 827 273,400 111,528 246, 720 97,098 385.755 343.818 CredilcKs'. amounts fallin9 ¢Je ithin one year 12 1296.3771 (267,275) Net current assets 89.378 82.543 Totsi •ssets less curr•nt liabilities 95.649 88.366 Net assets 95.649 88.366 Total net assets 95.649 88,366 pell
suSTNABLE FIBRE ALUANCE (A company Ilmtted by guarante•) REGISTERED NUlJlBER: 0938926S BALANCE SHEET ICONllNUEDI AS AT 31 JANUARY 2023 2023 2Q2 Charfty fvrtd$ Re6tiicted fvnds UnrestrKt•d fvryjs 14 14 11,113 ,522 Tot•1 fund• 96.649 88.366 The Choiiwas enlit to exaiytton fr<n urKlw stttion 477 olthe Comp•ni8s kl 2C#X. The m&nber8 nrA requY•d Iht Curybary to ciain for ts y8ar in wrAJrfance 8e¢tiw 476 of CompoThes kt 20CO. The Twstees acknothedge thetr r8spMsibfjties for ith the rewirnments of tho Act Tthith re8pect to The fmancial statsments havg b8gn In ac¢MlarKe the prtriwm to entits subject to the small compan$ regwn8. Tho fmarK4al slanonts V•we 4pwobd and fty Muo byth• Tw6t••s and signed M their behalf by.. Una Jones Chief Ex•cutTrn Date. ts>14 019A)LS Th¢ ¢)n pag¢¥ 14 to 28 fom part ofthe88f*)•ncial slatem Page 12
SUSTAINA8LE FIBRE ALUANCE (A company Ilmlted by gu•Antee STATEMENT OF CASH FLOWS FOR THE YEAR ENDEO 31 JANUARY 2023 2023 2022 Cash flows from operatlng adlvlues Net cash used in operating actwrties 17.913 3,234 Cash flows from Investln9 acllvltles Purchase of laThJie fixed assets 13,4831 (5.452) Net ¢•sh used in investing a¢bvities 13.483) (5.4521 Cash flm from financlng acthttles Net cash provlded by flnanclng actlvltles Change In cash and cash equfvalents In the year Cash and cash equi4talents al Ihe beginning of the 14.430 {2,2181 99.316 97,098 ash and cash equivalents at the end of the year 111.528 97,098 The notes on pages 14 to 28 fom part of Ihese finala1 statements Page13
SLISTAINABLE FIBRE ALLIANCE (A company Ilmlled by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 General information Sustainable Fibre Alliance is a charitable company. limrted by guarantee and inwporaled tn England and Wales. The mernters of the charity are the trustees named on pa9e 1 of these accoun1$. In the evenl of the charitsble company being wound up. the liabilrty in respect of the guarantee is limited to £1 per member ofthe tharitable company. Accountlng pollclos 2.1 $1$ of preparatlon of finan¢lal statements The finanual slalemenls have been prepared in a¢Idance with Ihe Charities SORP IFRS 1021- Accounbng and Reporting by Charit$.. Statement of Recommended Practice applicable to charities preparing their accounts in acccxdance wrth the Finanaal Reporting Standard appliCae in the UK and Republi¢ of Irdand (FRS 102} (effective 1 January 20191. the Finanual Reporting Standard applicable in UK and RepU1C of Ireland IFRS 102) and the Companie5 Act 20C6. SustainatAe Fibre Alliance meets the definition of a public benefit entsty uThJer FRS 102. Assets and liabilities are inibally recognised at historical cost ¢X transaetK>n value unless othewse Slated in the relevant accounting pdry. 2.2 Going concern After making enqui$, tr* Trustees have a reasonable expectabon that the Charty has adequate resources to eonbnue in opelalional existence for the foreseeable future. The Charity therefore conts.nues lo adopt the gtyn9 cern baS in prepariThJ its financial statements. 2.3 Incom• All income is reccgnised once the Chanty has errtrtlement lo the income, it ts probable that the income wll be retsNed and the amount of incg)me receNable can be measured reliably. other income is renised in the period in which il is receivatAe and to the exient Ihe goods have been Proded or on compleb.on of the seNKe. Subseriplion income is recniSed when memters undertake to join or renew bul is Ireated as deferre¢J to the ex1ent that rt MeS to the unexpired membership tenn.. Page 14
SUSTAINABLE FIBRE ALLIANCE IA company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 ountlng polklgs Icontlnuedl 2.4 Expènditu Expendilure is recc•3nised once Ihere is a legal or tXffl$trtIYe 019allOn lo transfer 8cononN¢ benefit to a third party. rt is probab that a Iransfer of economic benefits Voill be required in settlement and the amount of the oblHJation can be measured reliably. Expenditure is dassified by activity. The costs of each activity are made LV of the lotsl of dire( costs and shared costs. inclLtding support ctssts invdved in undertakiThJ each activity. Direcl costs at1n'butae to a single acts'vity are allOted directly to that actiwty. Shared costs whith contribute to more than one activity and support costs which are not attribulae to a ngle actNity are apportNJned ben those aCtivrts on a basis consistent w¢lh the use of resources. Central staff eosts are allocated on the basis of ts.me spent. and depreciation charges allocated M the portion of the assefs use. Expenditure on chantae aclivibes is incurred rffl direclty undertakir¥J activilies vthich further the Charitys ¢)biectsves, as well as arry associaled support costs. l expenditure 1$ induwve of irrecoverable VAT. 2.5 Foreryn currencles Monetary assets and lbIlle$ denominated in foreign Crrene$ tranated into sterfing al rates of exchange ruling at the reporting date. Transacti5 in forwgn currencies ¥e translated into sterling al the rate ruling on the date of the transaclion. Exchange gains and losses are reo)gThsed in the Statement of Finanek81 Activrties. 2.6 Tangible fixed assets and depreclation Tangible fixed assets are initi.ally recognised at cost. After renItiOn, under the cost model, tsngible fixed assets are measured at $1 less acMUlated depreaation and any aMlated impairment losses. All costs incurred to bring a twigiNe fixed asset into its intended %%r•rkn'ng condili¢)n should be induded in the measurement of cosL Dyeoation is tharged so as to allo¢e the $1 of lang1b fixed assets less Ih8ir residual value over Iheir estimated usefiA lives. ugng Ihe strawht-Iw method. Depfeciation is pwded on the fdl(ywng basis.. Off equipment 33% StraN-line 2.7 Stocks Stocks are valued at the lower of cost aThJ realisable value after making due allowance for obsolete and slow-moving stocks. 2.8 1)ebto Trade and other debtors are reeognised at the setdemenl amount after tny trade th$count offered. Prepayinents are valued at the amount prepaid net of any trade discounts due. Page1S
SUSTAINABLE F18RE ALLIANCE IA ¢¢mpany Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 Accountlng pollcle51cont5nued) 2.9 Cash at bank and In hand Cash at bank and in harKI indudes eash and short-temi h.ghty IiquKI investments a short maturrty of three months or less from thè date of acquisi11 or opening of the deposit or similar account. 2.10 Liabilities and provisions Liabilities are recognised when there is an ct)ligation at the Ba8 sheet date as a resutt of a past event. il is probable that a transler of economic befil will be rewired in settlemenl, and the amount of the settlement be estimated reliably. Liabilities are recogni5ed at the amount that the Charity anticipates it VAI pay lo settle the debt or the amount il has received as advanced payments for the goods or seNices it musl provide. Provisions are measured at the best estimate of Ihe amounts required lo settle the Oblaon. Where the effect of the time value of money is material. the provision 1$ based on the present value of those amounts, discounted al the pre•tax disccyjnt rate that reflects the risks SPeaf to the liabilty. The unwinding of the discount is rewgnLsed in the Statement of finanaal activitie5 as a finance cost. 2.11 Financial instfuments The Charity only hos fina[al assets and financial liabilthes of a kind that qualify as basie financial instruments. Basic finarrial instrumen15 afe inits.ally recognised at transaction value and subsequently measured at their setllemenl value wrth the exception of bank h)ans whith are subsequently measured al amortised cost uyng the effectwe interest meU)od. 112 Pensions The Charity operates a defined contribution n$11)n scheme and the pensi¢)n charge represents the amounls payable by the Charity lo the fund in respect of the year. 113 Fund aecountlng General fvnds a unreslricted fuThJs vthich are available for use al the discretion of the Trustees in furtherance of the general obJectNes of the Charity arKI vknich have not been desgnated for other purposes Re$tri¢ted funds are fund5 whth are to b8 used in accordance speafie reslrietions imposed by donors or %ich have been raised by the Charity for parts"cular purposes. The costs of raising and adminislellng suth funds a charged against the speufic fund. The aim and use of each restric¢ed fund 15 Sel out in the notes to the financial statefflts. Page 16
SUSTAINABLE FIBRE ALUANCE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 Income fvom donations and legacles As restated Total lunds 2022 Restrlcted Unrestrlcted funds funds 2023 2023 Total funds 2023 Donalions 154.170 620,918 775.088 529,038 Total 2022 as Trst8ted (see nole 13) 106,496 422.542 529,038 Analysis of exndIre on Charitable a¢tivltles Summary by fund type Restvicted Unrestricted lund$ funds 2023 2023 Total 2023 Total 2022 Charitabte Actwil 212,413 555.392 767.806 557,020 Totsl 2023 212.413 555.392 767.805 557.020 Total 2022 63,036 493,984 557.020 Page 17
SUSTAINABLE FIBRE ALLIANCE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDEO 31 JANUARY 2023 Analysls of expenditure by activities Actlvittes undertaken dlreetty 2023 Support costs 2023 Total funds 2023 Total funds 2022 ChariLible Activrtes 488.3 279.505 767,805 557,020 Totsl 2023 488.300 279,505 767,805 557.020 Total 2022 363. 169 193.851 557,020 An•lysi$ of direct costs Total funds 2023 Total funds 2022 Activities 2023 Staff costs Charitable project costs Conferenee eosts Training and accre1lrtat costs Research costs Mongolian latwJur tharges 176.160 34.862 17.457 230,334 2,898 26,589 176,160 34.862 17.467 230.334 2.898 26.589 198,976 45.078 2,041 69,311 1.260 46.503 Total 2023 488,300 488,300 363. 169 Tot812022 363, 169 363, 169 Page18
SUSTAINABLE F18RE ALLIANCE IA company Ilmlted by guaTantstl NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 Analysls of expèndlthre by athltles (eonllnu•d) Analysis of support costs Total funds 2023 Total funds 2022 Activities 2023 Staff cosls Depreciats'on Travel costs Office expenditure Finance eosts Communications and internet Rent and rc*)m hire 102.951 3.0&8 32.849 19,554 8.105 35,446 422 3.414 12,542 4.154 57.032 102.951 3.036 32.849 19.554 8.105 35.446 422 3.414 12.542 4.154 57,032 41,840 2,206 T,395 17.743 2.332 14,230 Insurance Other experKllre Other staff costs Mongolian lal)our charges 10,302 97,803 Total 2023 279.505 279.505 193.851 Total 2022 193,851 193,851 The analysis of the 2022 comparative figures has been ffjstaled to refieet a more accurate allttalion of costs in line eurrent year figures. Independent examlnerfs remunerntlo 2023 2022 Fees payable to the Chartys independent examiner fLY the independent examination of the Charitys annual accounts 3.570 2. 760 Page 19
SUSTAINABLE FIBRE ALLIANCE (A company IlmSted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 Stsff Costs 2023 2022 Wages and salaries Social Surity costs contributic to defined contribution pension schemes 250.958 18.038 10,115 222,045 14,624 4, 147 279.111 240,816 The average number of persons emFAoyed by Ihe Charity during the year was as follows.. 2023 No. 2022 No. Employees No employee received reMl"0n amountirvJ to more than £60.OW in either tar. The infomation provided throughou¢ this note disdoses details for the charitable companls Workfor in the United Kingdom. The avefa9e number of persons emplo>d in the UK is six there are also three members of contract Staff employed by the SFA in the UK. the cost of these is Presented in the accounts wthin both direct and support costs in Note 5. The informalion wovided throughout this note discloses details for the charitable companys workforce in the United Kingdom. The chariL*Ae company 8lso has a team of 9 employèes in Monwh'a and 37 short-temi seryice contractors for whom rt completes regulatory filing in MorKJolkq." the cost of this team is wesenled in the accounts within both direct and support costs in Note 5. Page 20
SUSTAINABLE FIBRE ALUANCE IA company Ilmfted by guardnteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 Tru$tggs' remun¢ratk>n and expenses During Ihe year, the charty has paid a salary to the Chief Executive, Una Jones, who is also a Trustee. The charty has obtained permissi from the Chanlies CommiSOn for Una Jones to be paid remunerabon for her role as Chf ExeculNe. The value of Trustees. remuneration and other benefits was as loll¢)ws.' 2023 2022 Remunera11 {inc pension Jntributions} Pension c0ntr*xrtS paid Una Jones 52,984 6,659 48,020 1.516 During the year ended 31 January 2023. expenses talling £E.210 were reimbursed or paid directty to 1 Trustee (2022- £9031.Thi$ induded travel. accommodation. $ustene. meeb.ngs and training. Page 21
SUSTAINABLE FIBRE ALUANCE IA company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 Tanglble flxed assets Offl¢• equlpment C05t or valuatlon At 1 February 2022 Addrtions .732 Al 31 January 2023 13,215 Depr8clatlon Al 1 February 2022 Charge for the al 3.909 3.035 Al 31 January 2023 Net book valug At 31 January 2023 6.271 Al 31 Janu8ry 2022 5.823 10. Stocks 2023 2022 Finished g&)ds and 9d6 for resale 827 Debto 2023 2022 Due withln one year Trade debt¢ys Other debtors Prepayynents and a¢[1 income 267.350 246.609 111 6,050 273,400 246, 720 Page 22
SUSTAINABLE FIBRE ALLIANCE {A company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 12. Credllors: Amounts f•lllng due within one year As restated 2022 2023 Trade creditors Llher taxation and social secur Other creditors Accruals and deferred income 14,805 20,364 3.422 257,786 10,506 5. 720 1,891 243, 158 296.377 261.275 13. Prior year adjustm•nts During the prior year income was received fcf membership on a rollirvj 12 month basis. A proportion of this income related lo 2023. A prior year adjustment has been made to restate this income as deferred wthich has resulted in a fall in IOrne and opening reserves of £240.164 and a corresFXdlng increase in credilors of £240,164. Page 23
SUSTAINABLE FIBRE ALLIANCE (A company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 14. Statement of lunds ststemenl of f•Jnds- ctsrrent year Reststed Balance al 1 February 2022 Balance al Trangfets 31 January Inloul 2023 Income EXnd11re Unrestricted funds General Funds- all funds 620.918 ($55.392 84.036 Restrlcted funds EDRB Project Young Herder Trainin9 Programme Small RLwninanis Project UNDP Project Volume Based Fee ACEBA Afganistan Apprenticeship 30.741 8.279 138.614) 406 10,000 {19.516) {11.419) 116.6631 (119.247) 1.936 10.000 6.330 1,419 668 9.247 110.000 6.226 10.000 6.226 16.954) 58,$22 154.170 1212.413) 11,334 11,613 Totsl of fvnds ns.OBB 1767.805) 9S.649 Page 24
SUSTAINABLE FIBRE ALLIANCE IA ¢ompany lirnlted by guaranlee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 14 Stat•mont olfunds q¢ontInu) Statement of funds- prlor year Restated Balance at 31 January 2022 Balanc8 81 l Febmary As Trstated 2021 Income Expenditure Transfe inloul Unrestrkted lunds General Funds- all funds 112.244 416,059 (493.984) (4.475) 29.844 Restricted funds EDRB Project ExpK)rt Developmenl Project Empoweimenl of Women Project Young Herder Training Programme Small Ruminants Project UNDP Project 3.554 45,198 (18.017) (1.893) 30.741 1.343 (43, 132) 3.132 11.451 10.1 6.330 11,451 10,000 6,330 4,104 7 12.979 (63,036J 4,475 58,522 Total of funds 116.348 529.038 (557,020J 88.366 15. Summary of funds Summary of funds- cufferrt year Balance at 1 February 2022 Balance at Transfers 31 January Inlout 2023 Income Expendlture General fiJnds 620.918 154.170 1555.3921 1212.4131 (11.334) 11.334 84.036 11.613 Resth"cted funds $8.S22 88.366 775.088 (767,8051 95.649 Page 25
SUSTAINABLE FI8ftE ALLIANCE IA company IlmSted by guarantee NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 15. Summary of funds (continued) Summary of lund5 - pTioT year Balance at l Febwary As resfal8d 2021 Income Exnditure Balance al 31 January 2022 Trnnsfe inloul General funds Reslrided funds t12.244 4. 104 416.059 112.979 (493,984) (63,036) (4.475) 4,475 29,844 58,522 116.348 529,038 (557.020) 88,366 16. Anaty$l$ of net assets between funds AnalysSs of net assets betn funds- current yeai Restricted Unrestrbcted funds funds 2023 2023 Total fvnd¥ 2023 TarvJible fixed assets Current assets Creditors due wthin one year 6,271 374,142 {296.377} 6.271 385,765 {296.3771 11.613 Total 11.613 84.036 9S.649 Anatysls of net assets between funds- prior yr Restaled Rest17Cted uns1Cted fvnds funds 2022 2022 Total funds 2022 Tangible fixed assets Current assels Creditors due *ithin one aT 5.823 5.823 285,296 343.878 (261,275) (261.275) 58.522 Totsl 58.522 29,844 88,366 Page 26
SUSTAINABLE FIBRE ALLIANCE (A company 1Smlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 17. Reconciliation of net movement in funds to net Il¢>w from opernting activities Rest8ted 2022 2023 Net in¢omelexpenditure for the year {as per Stslemenl of Financial Activities) 7.283 (27,982J Adjustments for: Oepreciatson charges Oeerea5ellincreasel in stocks Inuease in debtors Inuease in creditors 3.035 {8271 126.6801 (209,309) 35.102 238,319 2.206 Net cash provlded by op•ratlng a¢tl¥ttl•s 17.913 3,234 1& Analysls of cash and cash equfvalents 2023 2022 Cash in hand 111.528 97,09810* Total cash and cash equivalents 111.528 97,098 19. An•lysi$ of ehanges in net debt At1 February 2022 Cash flow5 At31 January 2023 . Cash at bank and in harvj 97,098 14,430 111,528 97,098 14,430 111,528 Page 27
SUSTAINABLE FIBRE ALUANCE IA cornpany Ilmtted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023 20. Penslon c¢mmhments The Charity opefates a defined conth'bution pension scheme. The assets of the scheme are held separatety from those of the charity in an independently administered luThJ. The pension cost charge represents contnbutions paid by the charity to the fund and arnounled to £9.593 12022". £4,147). contribub.ons of £3.422 (2022.. £1.891) were payaNe lo the fund at the tsalae sheet dale and are induded in Creditors. 21. R•lated party ttsnsacti¢)n$ There have been no payments matje to Andreas Wilkes (Trusteel in the 12 mths to 31.01.202312022'. £20,000). The payment was lo carry out a scowng research prq'ect as a con5Urtanl WTth expert skills in Land Management the Chinese language. This work is outde of the remit of the board Iru51ee. This year, Charles Hubbard rStee gned 30111r20221 has been paid £30.484 {2022".nil) for setting up the accre(Fitation system in Mongdia. He was able to (k) this due to his specific and exlensive expertise in standard setting and assessment syslems. This role went far beyond the role of a Charity Trustee. The daughter of Chades Hubbard ffrustee resigned 30111r2022) is employed by the charity and rKeived a salary aTrJ beneffts of£20,16612022: £20.079). Page 28