**REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2020** **----- Start of picture text -----**
THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS
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**1** ## **CONTENTS** |**CONTENTS**|| |---|---| |**Reference & Administrative Details**|**3**| |**Report of the Trustees**|**4**| |**Report of the Independent Auditors**|**23**| |**Statement of Financial Activities**|**25**| |**Balance Sheet**|**26**| |**Notes to the Financial Statements**|**27**| THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **2** ## **REFERENCE &** ## **ADMINISTRATIVE DETAILS** ## **Trustees** ## **Bankers** Clare Evans Jeremy Evans (Chairman) Rory Powe Stuart Powers Martin Woodcock Clydesdale Bank plc 35 Regent Street London SW1Y 4ND ## **Independent auditors** ## **Chief Executive Officers (Joint)** HSJ Audit Limited Severn House Hazell Drive Newport NP10 8FY Colin Williams OBE Matthew Kidd ## **Principal address** The Egmont Trust 11 Cathedral Road Cardiff CF11 9HA ## **Investment advisor** CCLA Investment Management Ltd COIF Charity Funds Senator House 85 Queen Victoria Street London EC4V 4ET ## **Phone** 029 2240 1733 ## **Website** www.egmonttrust.org ## **Email** info@egmonttrust.org ## **Registered charity number** 1108199 **3** ## **FROM THE CHAIRMAN** ## **The countries within which Egmont operates appear to have, so far, escaped significant direct effects from the COVID-19 pandemic.** Conversely, the indirect effects of governmental and societal response have created a range of challenges for Egmont’s Partners on the ground, and for the Egmont team. The response from both has been impressive. Both Partners and the team have adapted to ensure that we have been able to deliver the value from Egmont’s work that both our donors and beneficiaries require. A hallmark of Egmont’s local Partners has always been their nimbleness, flexibility and direct proximity to the challenges faced by their communities. If ever validation was required as to the strengths of this approach and these local organisations, it was most certainly underlined by how well they are responding to the pandemic. Notwithstanding COVID-19, HIV & AIDS remains the most significant challenge in the sub-Saharan region, with continued high rates of mortality and as importantly infection impacting families and communities in impoverished societies. Whilst it was essential to adapt to changed circumstances, the core mission for all Egmont’s Partners remains the challenge of supporting children and families impacted by HIV & AIDS. Over more than fifteen years, Egmont has learnt that we can contribute most effectively to achieving our mission by selecting a portfolio of the best of thousands of small community-based organisations as our Partners, who are often too small to align with the processes of the large institutional donors. to maintain close contact with all our Partners. Those who attended the virtual awards ceremony will have seen how technology has facilitated our ability to maintain connections across the region. The Egmont team continue to challenge themselves to improve what we do. There are a range of initiatives in hand, ranging from developing better tools to understand the long-term impact of projects; sharpening our own processes, so we can handle a larger portfolio without raising operational costs; a focus on governance and improving Egmont’s risk processes; seeking to increase the diversity of our funding base with initiatives both in the UK and USA. Egmont is the collective output of the commitment and passion of a broad range of people: from our Partners, the wonderful Egmont team, our UK Trustees, our US Board, and of course our unbelievably generous Patrons and donors. We are grateful to all especially in such challenging circumstances. The shock of the coronavirus was as severe a stress test for Egmont, its Partners and its donors, as for the rest of the world. **What is abundantly clear is that Egmont's Partners and operating model have risen to the challenge.** ## **Jeremy Evans Chairman** From an organisational perspective, Egmont has for many years operated a virtual model, with bases in Cardiff, Lusaka and Harare: adapting to the world of Zoom has not felt like much of a change. It has meant that despite travel restrictions, there has been no interruption to our ability to manage our investments rigorously, and THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **4** ## **Our Purposes & Activities** ## **The Egmont Trust was established in 2005 as a response to the continuing devastating impact of HIV & AIDS on millions of lives across sub-Saharan Africa.** We work with local Partners to improve the lives of vulnerable children and the family members that support them in six countries: Kenya, Malawi, Mozambique, Tanzania, Zambia and Zimbabwe. Despite the massive investment of donor funds since the early 1990s, the immense scale of HIV & AIDS has had a severely detrimental social and economic effect on families and communities across all sectors. The most effective responses address a range of issues. ## **The Egmont initiative marries two distinct perspectives:** Firstly, experience of well-networked professionals in the African development sector with knowledge of the many outstanding people and locally driven organisations in place across the region. Our record has shown that impressive and cost-effective results can be achieved by identifying and carefully selecting local projects and organisations that seek to improve the lives of children and families affected by HIV & AIDS and funding approved projects directly. We maintain a rigorous monitoring framework and do so without building layers of bureaucracy. Secondly, experienced and well-connected professionals in the London financial services sector who have demonstrated that significant corporate and individual philanthropic funding can be accessed and directly applied to a portfolio of carefully selected projects in sub-Saharan Africa. ## **WORLD POPULATION (2019, THE WORLD BANK)** ## **SUB-SAHARAN AFRICA | REST OF THE WORLD** ## **HIV+ POPULATION (2019, UNAIDS)** ## **SUB-SAHARAN AFRICA | REST OF THE WORLD** ## **AIDS-RELATED DEATHS** ## **CHILDREN ORPHANED BY AIDS** ## **(2019, UNAIDS)** **(2019, UNDER THE AGE OF 17, UNAIDS)** **----- Start of picture text -----**
SUB-SAHARAN AFRICA, 440K SUB-SAHARAN AFRICA, 10.2M
ASIA & PACIFIC, 160K ASIA & PACIFIC, 2.3M
S. AMERICA, 44k S. AMERICA, 650K
E. EUROPE & C. ASIA, 35K E. EUROPE & C. ASIA, 300K
W. EUROPE & N. AMERICA, 12K W. EUROPE & N. AMERICA, 130K
MIDDLE EAST & N. AFRICA, 8K MIDDLE EAST & N. AFRICA, 8K
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## **SHARE OF POVERTY HEADCOUNT** **----- Start of picture text -----**
100% S. AMERICA
E. ASIA & PACIFIC
80% S. ASIA
MIDDLE EAST & N.
AFRICA
EUROPE & C. ASIA
60%
SUB-SAHARAN
AFRICA
20%
OTHER HIGH
INCOME
0%
COUNTRIES
1990 2018
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## **SHARE OF OUT-OF-SCHOOL POPULATION (2018, PRIMARY SCHOOL CHILDREN, UIS)** **SUB-SAHARAN AFRICA | REST OF THE WORLD** THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **5** ## **Our Approach** **Egmont takes the following approach to mitigate the impact of HIV & AIDS on children and families in sub-Saharan Africa:** • We provide direct annual grants in three different structures and amounts to a portfolio of Partners in six targeted countries in sub-Saharan Africa. Partners, depending on analysis by our Programme Committee, are offered either an Innovation Grant (up to US$20,000 per annum) or a Core Grant (up to US$35,000 per annum). For the first time in 2017, exemplary Partners who have demonstrated consistent, impact driven results were offered the opportunity to apply for a Strategic Grant (up to US$100,000 per annum) to scale up their initiatives and reach many more beneficiaries through their cost-effective approaches. We are now spreading this model to other Partners who we judge are capable of achieving greater results at this level. - We respect our Partners’ analysis of local needs and the most effective responses to these, thereby minimising bureaucracy and leading to a wide range of funded projects. - We operate a portfolio approach which allows us to embrace innovation and spread risk. - We have developed rigorous and effective systems for Partner selection, reporting and accountability. - We maintain a strong focus on results, only making grants to organisations which continue to demonstrate impact for the funds invested. - We encourage and enable links between our Partners. We believe this is the best way to share good practice. - We guarantee that all of our operational costs will be funded by our Patrons and Trustees, thereby ensuring that our donors’ funding goes directly to projects in Africa, whilst also promoting rigour and cost efficiency. THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **6** ## **Partner Selection & Monitoring** **Egmont has an extensive network of contacts within the 6 countries where we provide grants. This helps us to build and refresh our portfolio of Partners and add new grantees, using the distinctive selection system we have evolved. Interested organisations can place an “Expression of Interest” on our interactive website, which is then screened by our programme staff before the organisation is invited to make an application.** ## **Our organisation and project assessment processes include:** - Pre-selection of potential Partners into a shortlist through initial assessment of people, organisations and projects, including cross-referencing with local contacts. - Application formats that offer no prescribed interventions but enable Partners to present their own analysis, plans and expected results. - Rigorous scrutiny of applications submitted by shortlisted organisations, with a current approval rate of approximately 4% of initial Expressions of Interest. - Simple contractual formats for financial reporting. - Quarterly and six-monthly reporting frameworks which focus on results, with specific feedback given to Partners after each submission. - Annual impact evaluations (including Partner-to-Partner assessments). - Annual in-country meetings of Partners where numbers permit. - Annual Partner visits from members of the Egmont team. THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **7** ## **Statement of Public Benefit** The Trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives, planning future activities and setting the grant-making policy for the year. Egmont’s supported work demonstrates public benefit in the following ways: - Addressing the needs of some of the world’s most disadvantaged children and their communities through access to HIV & AIDS treatment, and through the provision of good nutrition, poverty alleviation, education and counselling, agricultural and vocational training, and safer environments. - Enabling local Partner organisations to work together to share information, experiences and expertise, and thereby improve their services. THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **8** ## **Grant Making Policy** **The Egmont Trust provides grants directly to organisations in sub-Saharan Africa specifically to alleviate the short and long-term impact of HIV and AIDS. We fund organisations which are locally established either as charities (non-governmental organisations) or associations such as women’s or savings associations.** Our belief is that providing direct grants to inspired local initiatives delivers the most substantial life changing and cost-effective results. We also recognise that the impact of HIV & AIDS cuts across many sectors and meaningful results can be delivered from a variety of different responses. We only invite project proposals from those organisations we have already assessed for due diligence and capability to implement projects. Since 2017, all our grants have been USD$ denominated and grantees use the USD$ for all expenditure reporting. We have the following levels of grant: Proposals are assessed by the Trustees’ Programme Committee within defined timescales. Funds are disbursed in tranches, subject to receipt of satisfactory implementation and finance reports. All contracts are fixed in USD$ with budgets prepared in local currency. In the case of exchange rate gains or unspent funds, approval must be sought for use of the additional funds on activities related to the approved project. In the case of underspends, a proposal outlining the cause, new activities and a budget should be submitted for approval. If proposal is not approved, the second grant disbursement of the last year of the project may be reduced by the underspend amount. ## **• Innovation – $0 - $20,000** Currently up to a maximum annual budget of $20,000; normally for one year and suitable for smaller organisations or pilot projects. Where appropriate Innovation Grant holders may be invited to apply for a new Innovation Grant for 1 or 2 years. ## **• Core – $20,000 - $50,000** Normally for two years and based on performance. Innovation Grant holders will normally be invited to scale up and submit a proposal for a Core Grant. On completion of the project, based on results achieved, Core Grant Partners will generally, be invited to submit a new 2-year Core Grant proposal. Where appropriate Core Grant holders may be invited to apply for an “Enhanced Core Grant" up to $50,000 a year. A longer grant period may be offered where suitable and based on thorough analysis and approval by the Programme Committee. For two-year projects detailed budgets are requested at the end of year one and approved if performance has been satisfactory and funds are available. If results are positive, and funds available, Partners are usually invited to make a new proposal towards the end of their current grant. We believe that organisations and people learn mostly from others working in the same context. On this basis, we encourage Partners to interact with each other and as well as others in the sector. We support this by offering: - **Peer Evaluation Grant** – currently up to US$1,750 per annum to conduct peer evaluation interactions with selected peer Partners. ## **• Strategic Grants – $50,000 - $100,000** Currently up to a maximum annual budget of $100,000; normally for 3 years and offered to high performing Core Grant Partners assessed as suitable for higher investments. No guarantee of funding beyond the end of the project; we will review results and may invite a new proposal at Core or Strategic level. Approved projects are fully owned and managed by the implementing Partner. However, there are open communication channels so Partners can seek approval for small alterations to budget and/or activities through the course of a project. Proposals are requested within specific guidelines and deadlines. Calls are made on 2-3 occasions each year. - **Partner meetings** – annually within each country, where appropriate. - **Partners’ Forum** – a Facebook interactive forum where Partners can share experiences and observations from the field. Egmont follows a policy of a member of staff or Trustee visiting Partners in each country at least once a year. These are not supervisory visits but are to build relationships with the people involved, witness financial controls and procedures, and observe project activities and the local context. THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **9** ## **ACHIEVEMENTS & PERFORMANCE** **Despite the impact of the COVID-19 pandemic and the measures taken across the region to control its spread, our Partners worked diligently to ensure vulnerable children and family members in their communities could continue to access vital HIV treatment and healthcare, provided nutritional support if necessary, and helped children to access alternative learning where possible.** Egmont supported these extra efforts, where needed, and redirected some project resources so that Partners could prepare and protect communities in response to COVID-19. Handwashing stations were installed, face-masks and other PPE provided and public information and education campaigns were conducted by our Partners through this support. While the coronavirus pandemic affected the local context of the work we support, the focus of our work remains the continuing and devastating impact of the HIV & AIDS epidemic. The number of people living with HIV in the region continues to grow and now – at almost 26 million – is larger than ever. The capacity of each extended family, the social safety net across Africa, is diminished with each additional infection and stretched as more and more children become orphaned by AIDS. Today, there are more than 10 million children across the region who have lost one or both parents to AIDS-related illnesses and they join many more from previous generations who have experienced the same loss. We worked with 53 Partners in 2020. Rather than expand our support to more grassroots organisations, we chose to invest more deeply in the top performing organisations from our portfolio - offering two more Partners greater funding to reach many more in their communities through our Strategic Grant programme. We also consolidated the portfolio, creating space for new, innovative projects and welcomed three new Partners last year. Together, Egmont supported these Partners’ work, addressing the long-standing and evolving issues that their communities face as a result of the enduring impact of HIV & AIDS. Whilst each of our Partners has their own distinctive approach, many of the projects Egmont supports overlap in terms of their focus. Our reporting structure helps us to build a picture of the difference our Partners’ varied interventions are making on the lives of children and families and categorise these achievements into 'impact areas'. Highlights from Egmont's 2020 portfolio, across these impact areas, are included over the next few pages. THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **10** **IMPROVING LIVELIHOODS** **PORTFOLIO HIGHLIGHTS** **Our Partners help children and families affected by AIDS to improve their livelihoods by increasing access to more nutritious food and through increasing their incomes enabling them to better meet their daily needs.** **Improved Nutrition** has a cascade effect. Medical treatment is more effective and antiretroviral (ARV) drugs are absorbed more quickly. Children attend school more frequently and perform better academically. Families have the energy to farm and work productively. **Increased Incomes** for families from employment or income-generating activities helps them to feed the children in their care, pay for school fees, and meet the costs of medical treatment and basic household needs. **In 2020, our portfolio of Partners achieved the following across these two impact areas:** **IMPROVED NUTRITION TARGET ACTUAL DIFFERENCE PARTNERS 17 583 18 849 1 266 34 , , , PEOPLE HELPED PEOPLE HELPED MORE PEOPLE HELPED WORKING IN THIS AREA SHARE OF TOTAL (BY PARTNER)** **TARGET NOT MET TARGET MET/EXCEEDED** **INCREASED INCOMES TARGET ACTUAL DIFFERENCE PARTNERS 7 815 10 723 2 908 38 , , , PEOPLE HELPED PEOPLE HELPED MORE PEOPLE HELPED WORKING IN THIS AREA SHARE OF TOTAL (BY PARTNER) TARGET NOT MET TARGET MET/EXCEEDED** **1,664 CHILDREN SUPPORTED BY SCHOOL FEEDING PROGRAMMES** **CHILDREN SUPPORTED BY SCHOOL** **10,290 PEOPLE TRAINED IN NUTRITION & THE IMPORTANCE OF A BALANCED DIET 2,183 HOUSEHOLDS PROVIDED WITH AGRICULTURAL INPUTS SUCH AS SEED OR LIVESTOCK** **PEOPLE TRAINED IN NUTRITION & THE IMPORTANCE** **2,194 YOUNG PEOPLE ENROLLED IN VOCATIONAL TRAINING COURSES & APPRENTICESHIPS** THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **11** **PORTFOLIO HIGHLIGHTS** ## **EDUCATION** ## **Education provides the foundation for a better life and leads to long-term change.** Of all world regions, sub-Saharan Africa has the highest number of out-of-school children. Over a fifth of children between the ages of 6 - 11 are out-of-school, followed by a third of youth between the ages of 12-14. Older age groups, as education becomes more costly and children are traditionally expected to start earning or contributing, are least likely to remain in education: almost 60% of youth between the ages of 15-17 are not in school. **Access to Education** ensures that children and adults are equipped with the skills to help themselves. Both children and adults who receive formal schooling or informal tuition have a much greater chance of becoming self reliant. Our Partners help families to directly meet the cost of school and examination fees, uniforms and other school essentials that otherwise excludes the vulnerable children in their care from entering the classroom. ## **In 2020, our portfolio of Partners achieved the following:** **ACCESS TO EDUCATION TARGET ACTUAL DIFFERENCE PARTNERS 3 307 5 569 1 131 24 , , , PEOPLE HELPED PEOPLE HELPED MORE PEOPLE HELPED WORKING IN THIS AREA** **2,817 CHILDREN ASSISTED WITH SCHOOL FEES, UNIFORMS OR OTHER SCHOOL ESSENTIALS** **1,480 YOUNG CHILDREN ENROLLED IN EARLY CHILDHOOD DEVELOPMENT CENTRES** **87** ## **SHARE OF TOTAL (BY PARTNER)** **STREET CHILDREN HELPED TO MOVE AWAY FROM THE STREETS AND ENROLLED INTO SCHOOL** **TARGET NOT MET TARGET MET/EXCEEDED** **903 ADULT LEARNERS PROVIDED WITH LITERACY & NUMERACY CLASSES** THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **12** **PORTFOLIO HIGHLIGHTS** ## **HEALTHIER FUTURES** ## **No one in the region has not been affected by the epidemic.** **HIV & AIDS Education** is still vital so people can take steps to protect themselves and encourage more to get tested. Increasing access to **Testing & Counselling** services means those who test positive are able to access ARV treatment and those who test negative can continue to take measures that reduce their chance of infection. While ensuring those who are living with HIV adhere to their ARV regimens and can access appropriate **Treatment & Care** can virtually eliminate the risk of transmission. ## **In 2020, our portfolio of Partners achieved the following across these three impact areas:** **TREATMENT & CARE TARGET ACTUAL DIFFERENCE PARTNERS 12 421 12 477 56 23 , , PEOPLE HELPED PEOPLE HELPED MORE PEOPLE HELPED WORKING IN THIS AREA** **SHARE OF TOTAL (BY PARTNER)** **TARGET NOT MET TARGET MET/EXCEEDED** **TESTING & COUNSELLING TARGET ACTUAL DIFFERENCE PARTNERS 23 681 24 300 619 28 , , PEOPLE HELPED PEOPLE HELPED MORE PEOPLE HELPED WORKING IN THIS AREA** **SHARE OF TOTAL (BY PARTNER)** **8,670 PEOPLE HELPED TO ACCESS ARV TREATMENT 27,986 PEOPLE REACHED WITH INFORMATION ON COVID-19 PREVENTION 1,295** **PEOPLE REACHED WITH INFORMATION ON COVID-19** **ADOLESCENTS PROVIDED WITH AT HOME HIV 'SELF-TEST' KITS** **TARGET NOT MET TARGET MET/EXCEEDED** **HIV & AIDS EDUCATION** **TARGET ACTUAL DIFFERENCE PARTNERS 73 158 75 834 2 676 39 , , , PEOPLE HELPED PEOPLE HELPED MORE PEOPLE HELPED WORKING IN THIS AREA SHARE OF TOTAL (BY PARTNER) TARGET NOT MET TARGET MET/EXCEEDED** **217** **NEW HANDWASHING STATIONS INSTALLED** THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **13** **PORTFOLIO HIGHLIGHTS** ## **SAFER COMMUNITIES** **Young women and girls are infected at a younger age and more likely to be infected than their male counterparts. Addressing the long-standing and evolving reasons for this vulnerability helps protect the next generation from HIV & AIDS and creates safer communities for women and children today.** Our Partners use group work and outreach campaigns aimed at **Preventing Violence Against Women** , particularly sexual violence which increases the chance of infection. They also work to reduce the impact of violence, linking those who need it to healthcare and treatment. Through a combination of education, group therapy and support they help those who have experienced abuse to heal and build towards a better future. They also facilitate increased access to justice or legal advice, helping to take action against perpetrators and prevent future incidences. Our Partners' work also focusses on **Preventing Child Abuse** . They set up community structures such as Child Protection Groups and school-based programmes that provide a means for children to learn their rights and protections and report cases of child labour, neglect, abuse and exploitation. **In 2020, our portfolio of Partners achieved the following across these two impact areas:** **PREVENTING VIOLENCE AGAINST WOMEN TARGET ACTUAL DIFFERENCE PARTNERS 10 775 7 018 -3 757 12 , , , PEOPLE HELPED PEOPLE HELPED FEWER PEOPLE HELPED WORKING IN THIS AREA** ## **SHARE OF TOTAL (BY PARTNER)** **TARGET NOT MET TARGET MET/EXCEEDED** **3,110 PEOPLE REACHED THROUGH CAMPAIGNS TO END FEMALE GENITAL MUTILATION** **18,080 CHILDREN EDUCATED ON THEIR RIGHTS AND PROTECTIONS** **127** **YOUNG WOMEN TRAINED IN SELF DEFENCE** ## **PREVENTING CHILD ABUSE** **TARGET ACTUAL DIFFERENCE PARTNERS 15 989 21 830 5 841 24 , , , PEOPLE HELPED PEOPLE HELPED MORE PEOPLE HELPED WORKING IN THIS AREA** **SHARE OF TOTAL (BY PARTNER)** **TARGET NOT MET TARGET MET/EXCEEDED** **2,406** **LOCAL LEADERS, PARENTS, CHILD PROTECTION COMMITTEE MEMBERS & ADVOCATES TRAINED** THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **14** ## **Performance of fundraising against objective** During 2020, Egmont’s dedicated base of generous supporters continued to support the work of our Partners, despite the more difficult fundraising environment created by the coronavirus pandemic. Despite holding no major fundraising event total income for 2020, including direct project support, stands at £1,824,231 (including direct donations of £128,234 to four Partners running Egmontapproved and monitored projects in Kenya and Zimbabwe from a single donor). This represents a slight increase of £69,143 (4%) on 2019 fundraising income. As our operating costs are entirely covered by our Trustees and Patrons, all other funds raised are disbursed to our Partners in southern and eastern Africa. We continued to receive generous support from Redburn’s Editorial department in the form of their expertise in document design and finish. DG3’s support of our printed materials ensured that we were able to keep our marketing costs to a minimum. We adapted to the new context by holding our first ‘virtual’ event, which was positively received. We look forward to integrating this new way of bringing supporters closer to our Partners’ work on the ground, even as the restrictions are lifted and physical events become possible again. THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **15** ## **PLANS FOR THE FUTURE** **Numbers of HIV & AIDS cases in our countries of operation remain stubbornly high, and none of the main themes of our Partners’ activity have become less necessary. We have no plans to disengage from any of them. The needs created by the short- and long-term impact of HIV will remain our core focus.** We shall continue to look for Partners who try to address not just the symptoms of its impact on the dependants of victims but also their underlying causes; and Partners who use their understanding of local circumstances to design the most effective interventions. Having discontinued funding for a number of long-standing Partners over the last year, we will now seek to refresh our portfolio in two key ways. We will look to bring in a larger number of new Partners, initially at Innovation Grant level, looking particularly for those with innovative ideas for delivering results: the continuing posts of Expressions of Interest on our website show us that there is no shortage of good candidates to choose from. We will also continue to help those of our Partners whom we judge capable of raising their ambitions to the level that we can support with Strategic Grants, building on our experience with the first Partners to be awarded these. We have already agreed a first tranche of new projects at this level. It will continue to be one of our objectives to encourage Partners to support and learn from each other, stimulating such cross-learning ourselves where it can help to make it fruitful. Our experience over the last year of virtual interaction with and between Partners suggests that there will continue to be value in a model of combined virtual and physical contact when the latter becomes easier again. The caseload of the COVID-19 pandemic has remained much lower in our countries of operation than in many other parts of the world. There are no confirmed explanations of why this is so (though it is important that real-time research should explore possibilities before data gets lost). Despite the smaller number of cases, though, precautions taken by governments to limit spread have weakened the foundations of many of our Partners’ projects. Most starkly, educational objectives have been hit by the closure of schools; and economic empowerment goals by limits on movement. The attention given by governments and donors to preventing spread of COVID-19 has also reduced resources available for other health needs such as HIV. **We shall continue to support Partners in finding ways to adjust their approaches to achieve their objectives in the changing conditions and to explore new possibilities, always within a rigorous framework of accountability.** THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **16** ## **Financial Review** ## **Income** Income in 2020 was £1,695,997. In addition, £128,234 was donated directly by an Egmont supporter to fund four Egmont-approved and monitored projects in Kenya and Zimbabwe, bringing the total funds raised in 2020 to £1,824,231. This was achieved without organising any major fundraising events in 2020. Egmont continues to maximise its income through the Government’s Gift Aid scheme. ## **Expenditure** Grants made in 2020 totalled £963,095 (this figure increases to £1,091,329 when the third-party direct funding of £128,234 to four Partners is included). This amounted to a small decrease to 2019 expenditure due to some partnerships coming to an end with The Egmont Trust. New Partners will be invited in 2021 to submit proposals; we envisage these efforts will enable Egmont to support a portfolio of 50 – 55 Partners in 2021. The Egmont Trust’s portfolio for 2020 consisted of 53 Partners in 2020 of which 5 were Strategic Partners. Resources expended on operational costs are covered in their entirety by Egmont’s Trustees and Patrons. These amounted to £395,628 in 2020, 22% of total funds raised. ## **Reserves Policy** Our policy governing our financial reserves is designed to help us ensure that we do not hold too much of our money for too long before spending it for the purposes for which it was donated; and that we are never left with so little money that we cannot, if necessary, wind our operations up tidily. It sets an optimum level of reserves within those two extremes, so we can use any variance from it as a management tool, to prompt us to consider any need to change our practice. In our case, calculating the optimum reserve level needs to take into account that the bulk of our donations arrive in the last quarter of the year, so our cash levels fluctuate widely. We will have in hand at the start of each year: - 50% of our operational budget for the year ahead, to ensure that we could wind up our affairs properly in the case of some calamity; • enough funding to cover the follow-on years of any multi-year projects already started (any final tranches due on one-year projects under way are already recorded in the accounts as committed); • have in hand before each of the two regular call-outs in a year are initiated, enough funding to cover 75% of the potential cost, if all the projects Partners are being invited to submit in that call-out were approved. If any of these fails to be achieved, the Finance Manager should report immediately to F&G and Programme Committee, to consider if corrective action is needed. Similarly, if at the start of any year funds in hand and unallocated total more than 100% of last year’s grant-making expenditure, the Finance Manager will report to both Committees, to consider whether corrective action is needed, bearing in mind that any decision to increase the rate of grant spending is likely to take at least a year to show results, and maintaining the aim of disbursing any unrestricted grant funds by the end of the second financial year following their receipt. ## **Reserves Held** Total reserves held at the end of 2020 stood at £2,197,199. Restricted reserves of £190,243 were being held at the end of the year for operational costs in 2020 in line with Egmont’s reserves policy. All other restricted/Designated fund balances, amounting to £25,000 are earmarked for specific projects taking place in 2021. Foreign Currency translation fund was £40,740 **Please Note – The Egmont Trust has now transferred over to the recently registered Charitable Incorporated Organisation – Number 1186451. All reserves have been transferred over. Reserves will be used to fund projects throughout 2021.** ## **Egmont Trust Foreign Exchange Policy** Donations are held in the currency received or are converted to reflect the grant making currency and operational expenditure levels. The Finance & Governance Committee makes recommendations on conversion processes, which are implemented by the Finance Manager. ## **Egmont Trust Investment Policy** Egmont’s primary objective is to preserve capital rather than maximise returns. The maximum balance to be held at any one time with any one financial institution is £1.5million. Balances are managed by the Finance Manager who immediately reports exceptions to the Finance and Governance Committee. The Trustees retain the power to invest in such assets as they see fit. ## **Risk Management** The Trustees have identified potential risks to the work of the Trust and put in place systems and procedures to manage these. Risks include financial exposure, personal health and security of staff, reputational and programming risks and changes to the sociopolitical environment where we and our Partners operate. We review these risks and necessary mitigations on a regular basis. Egmont has strong local contacts in each country where we operate and benefits from their advice. Our disbursement, monitoring and reporting systems also contribute to minimising risk. They are sufficiently flexible to enable Partners to make appropriate adjustments to reflect external factors, such as exchange rate fluctuations, without undermining the basic objectives or integrity of their projects. ## **Conflicts of interest** Potential conflicts of interest for staff or Trustees must be declared at each meeting and are managed as appropriate to the circumstances. Applications for Egmont grants often arise from within our local networks of contacts in Africa. However, all proposals for funding are vetted and approved by the 4-member Programme Committee. THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **17** ## **Structure, Governance & Management** **The Egmont Trust is a non-company charity, registered with the Charity Commission and was established by trust deed on 9 February 2005. Overall governance is provided by the Trustees.** **In January 2021, The Egmont Trust transferred over to the recently approved Charitable Incorporated Organisation – 1186451.** ## **Appointment of Trustees** The Trust Deed requires a minimum of three Trustees to be appointed. There are currently five Trustees. They each declare annually that they are fit and proper to serve as a Trustee. • Finance & Governance Committee deals with the annual budget and accounts, compliance with statutory requirements and governance matters, terms and conditions for staff, and salary levels. ## **Trustee induction** New Trustees receive a formal induction, where they become familiar with the Egmont approach, how we work with our Partners, and what is expected from them as a Trustee in terms both of governance and raising funds for the organisation. ## **Trustee led sub-committees** The Board of Trustees meets quarterly to ratify decisions and set strategy. Beneath it are three Trustee-led sub-committees, which also meet at least quarterly: The minutes of all the sub-committees are made available to the full Board of Trustees. ## **Egmont’s Staff Team** There have been no changes to our staffing since the last Annual Report. Since March 2020 all our staff have worked remotely, and all Trustee Board and Committee meetings have been virtual. We have adjusted our working practices to address this challenge, including new methods of “virtual visits” to Partners while we cannot visit them physically, and new habits of virtual cross-team collaboration. - Fundraising Committee is responsible for fundraising strategy, targets and co-ordination, organising fundraising events and producing supporter communications. - Programme Committee manages the programme strategy i.e. the assessment and selection of grant recipients, and the monitoring of project performance. THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **18** ## **List of Partners supported in 2020** **----- Start of picture text -----**
Total Total
approved committed
Country Partner Focus of project(s) Grant type 2020 (£) since 2005 (£)
Kenya Ace Africa (Kenya) Increases children’s access to nutritious food, medication, child rights, psychosocial support and Core 26,401* 321,443 ‡
HIV prevention, as well as income generation activities for young women.
Kenya Girl Child Counselling Women’s Group Provides vocational training to mothers and young women at risk of HIV infection, helping Strategic 37,716* 156,518 ‡
them to establish an income stream.
Kenya Kenya Poverty Elimination Network Improves orphan care through grandparents by providing training in beekeeping, and goat- Core 1,450 308,121 ‡
rearing; and psychosocial support.
Kenya The Nasio Trust HIV & AIDS education programme for in-school youths living in Mumias & Musanda Core 10,238 26,337
Districts.
Kenya Rural New Life Development Improves quality of lives for young women and children living with HIV using the ‘DECENT Core 26,438 121,053
CARE’ approach.
Kenya Sponsored Arts For Education Reduces incidences of female genital mutilation (FGM) through community dialogue and Core 28,072 133,491
traditional dance.
Kenya Trust for Indigenous Culture and Health Disseminates health information and encourages self-motivated community responses to Strategic † 435,502 ‡
problems linked to HIV and poverty in urban slum households.
Kenya Tushinde Childrens Trust Supports HIV positive mothers in the slums of Nairobi and provides their children with school Core 33,799 61,824
fees.
Kenya Vijana Amani Pamoja Supports youth behaviour change, with the goal of reducing the HIV infection rate and Core 1,488 194,799 ‡
empowering more girls to lead safe, healthy lives through the medium of football.
Malawi Action for Sustainable Development Agricultural training and support for families caring for vulnerable children to grow soya beans Core 27,065 72,757
and rear pigs.
Malawi Community Partnership for Relief and Household economic strengthening for improved livelihoods and early years education support Core 29,282 118,146
Development for vulnerable children.
Malawi Girls Empowerment Network (GENET) Increases local knowledge of sexual health and gender rights issues by helping children to Innovation 14,820 30,084
produce a local newspaper.
Malawi God Cares Rights Foundation Supports street children in Mzimba, Malawi to go to school and offers them counselling and Innovation 16,992 33,450
testing services.
Malawi HIV/AIDS in the Workplace Intervention Promotes good nutrition for HIV+ children and supports women caregivers to improve their Core 29,820 292,735
Programme economic status through community support groups.
Malawi Kwithu Women Group Education and feeding programme for vulnerable children in Luwinga ward, Mzuzu. Core 26,902 132,572
Academically gifted children offered scholarship to secondary schools.
Malawi Life Concern Increases access and uptake of Prevention of Mother To Child HIV Transmission services Strategic 54138 478,711
amongst women in rural areas. As well as Child sexual abuse prevention and support through
Edu-Toy programme.
Malawi National Smallholder Farmers Association of Enhances community resilience through functional literacy, and promotes crop diversification Core † 258,378
Malawi and livestock production for smallholder farmers.
**----- End of picture text -----**
- Funding secured by Egmont from a third party for four projects to the value of £128,234. - Funding committed in 2019 for a project running in 2020. ‡ These figures include funding secured in 2014-2019 by Egmont from a third party to the value of £776,052 THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **19** ## **List of Partners supported in 2020** **----- Start of picture text -----**
Total Total
approved committed
Country Partner Focus of project(s) Grant type 2020 (£) since 2005 (£)
Malawi New Beginnings Supports women who have suffered abuse to start up their own businesses and provides Innovation 17,807 29,305
counselling.
Malawi Youth Net and Counselling Improves the nutrition and income of households through the provision of seeds for soya beans. Core 27,254 43,679
Mozambique A Little Gesture Provides education for HIV+ children on a day care basis, ensuring adequate nutrition, Core 15,094 137,143
medication and medical assistance.
Mozambique Associação Missão Moçambiqu Residential centre for vulnerable and orphaned children affected by, or infected with, HIV & Core 26,247 132,318
AIDS.
Mozambique Associação Wona Sanana Improves the quality of life for children living with HIV, disabilities and children who do not Innovation 15,430 15,430
have a parent or guardian.
Mozambique Masana Provides a transitional home for street boys living in Maputo, and works to reintegrate them Innovation 14,978 14,978
with families .
Mozambique Meninos de Moçambique Provides medical, social and educational assistance to street children and youth, including Core 27,121 321,857
reintegration with families when possible.
Mozambique Vukoxa Improves community support, food security and basic services for older carers to raise the Core † 265,267
quality of life for vulnerable children.
Tanzania Ace Africa (Tanzania) Strengthens community skills, structures and systems to improve access to child protection, Core 25,891 301,173
HIV prevention, life skills and psychological support.
Tanzania Forever Angels Provides families with babies at risk of malnourishment and starvation, with nutritional support Core 26,985 154,119
and business training.
Tanzania Kimara Peer Educators & Health Promoters Trust Educational, nutritional and psychosocial support for children; microcredit and business Core 26,804 277,818
training for carers .
Tanzania Kwa Wazee Promotes gender rights and counsels girls that have been affected by sexual abuse. Innovation 14,978 58,947
Tanzania R-Labs R-Labs works in, central Tanzania to support young women who are not in employment or Innovation 16,179 31,579
education and provide them with training to secure employment.
Zambia Kucetekela Foundation Scholarship support for academically gifted, disadvantaged children. Core 26,290 265,659
Zambia Chongwe Mitengo Women Association Promotes income-generating agricultural activities and microcredit of rural and semi-rural Core † 352,801
women groups through training and equipment.
Zambia Partners for Life Advancement and Education Accelerated learning and feeding programme for out-of-school, vulnerable children with Core 27,794 126,132
Partners income-generation support for their guardians and caregivers.
Zambia Send A Cow (Zambia) Farming systems and water management training for AIDS-affected families in Petauke Core † 55,036
District.
Zambia The School Club Zambia Providing educational and vocational support to girls that are at risk of dropping out of school, Innovation 14,635 14,635
or who have already done so .
Zambia The Virtual Doctors Provides expert medical advice to rural health workers via mobile networks. Innovation 14,872 30,534
Zambia Tiny Tim & Friends Supports young people dealing with the impacts of contracting HIV by providing counselling. Innovation † 15,477
**----- End of picture text -----**
* Funding secured by Egmont from a third party for four projects to the value of £128,234 **†** Funding committed in 2019 for a project running in 2020. ‡ These figures include funding secured in 2014-2019 by Egmont from a third party to the value of £776,052 THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **20** ## **List of Partners supported in 2020** **----- Start of picture text -----**
Total Total
approved committed
Country Partner Focus of project(s) Grant type 2020 (£) since 2005 (£)
Zambia Vision of Hope Provides a protective environment for girls on the streets through education, shelter and Core 26,026 200,958
healthcare.
Zambia Zambian Rainbow Development Foundation Training and inputs for soya-bean farming for families in Mkushi and Luani Districts, enabling Core 33,004 115,355
them to contribute to a school-feeding programme.
Zimbabwe AIDS Counselling Trust Reducing gender-based violence, harmful beliefs and behaviours by redefining gender Strategic 37,690 268,243
stereotypes and promoting behaviours that reduce the likelihood of HIV infection.
Zimbabwe Chiedza Child Care Centre Remedial and informal schooling for children from disadvantaged families, enabling them to Strategic 37,716* 170,820 ‡
reintegrate into the formal school system.
Zimbabwe Child Protection Society Promotes adherence to HIV treatment and home-based care for vulnerable children and Core 31,352 107,848
adolescents.
Zimbabwe Community Based Aid Programme Educational support for academically promising and vulnerable children. Innovation 14,872 45,551
Zimbabwe Matabeleland AIDS Council Support to 10-24-year-olds living with or affected by life-limiting illnesses, with home-based Core 29,713 138,312
care and income-generating initiatives.
Zimbabwe Midlands AIDS Service Organisation Support group system for grandmothers caring for AIDS-affected children. Innovation 1,121 65,878
Zimbabwe Nyanga Community Development Trust Saving and loans group scheme for grandparent and single-parent households, helping them to Innovation 14,872 43,911
establish businesses and provide for the children in their care.
Zimbabwe Pamuhacha Economic strengthening and training, comprehensive sexual reproductive rights education for Core 26,927 86,683
adolescent girls and young women.
Zimbabwe Rafiki Girls Centre Empowers disadvantaged girls economically and socially through vocational and life-skills Strategic † 433,359
training.
Zimbabwe Restless Development (Zimbabwe) Provides HIV-prevention information and support to sexual abuse survivors. Core 27,514 285,053
Zimbabwe Seke Rural Home Based Care Group support for single- and child-headed households with income and nutritional support. Innovation † 30,467
Zimbabwe Talia Women’s Network Entrepreneurship training and agricultural business support for young women in Bindura. Core 26,401* 96,402 ‡
Zimbabwe Wild4Life Healthcare professional training and data monitoring support for rural health clinics in Binga Strategic 43,962 88,327
District.
Zimbabwe Youth Advocates Zimbabwe Delivers HIV prevention services through an SMS text-based helpline. Strategic 37,180 111,463
**----- End of picture text -----**
- Funding secured by Egmont from a third party for four projects to the value of £128,234. > **†** Funding committed in 2019 for a project running in 2020. > ‡ These figures include funding secured in 2014-2020 by Egmont from a third party to the value of £776,052 THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **21** ## **STATEMENT OF TRUSTEE RESPONSIBILITIES** The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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. Approved by order of the board of Trustees on .......... / .......... / .......... and signed on its behalf by: ............................................................................ **Jeremy Evans - Chairman - Trustee** THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **22** ## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF THE EGMONT TRUST** ## **Opinion** We have audited the financial statements of The Egmont Trust (the ‘charity’) for the year ended 31 December 2020, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and applicable law (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its results for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - 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. ## **Conclusions relating to going concern** We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: - the Trustees use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. ## **Other information** The Trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the financial statements. We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustees** As explained more fully in the (set out on page 22), 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. THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **23** INDEPENDENT AUDITORS, REPORT TO THE TRUSTEES OF THE EGMONT TRUST Audrfo<#r¢sponsibilitiea fwth¢ aknditofthc fina￿121 statements Our objtitive$ are to obtairt reasonable J$511Tancc aboutwheth¢r the finanLial $tatem¢nty as a whole Are free from mateiia] missNrenJent, whether due to fraud oi ett(>i, and to issue 2 3uditor's rq)ort that ift¢ludes our opintoil. Reasonable a5sufAllCe is a high level of a5sllrance,btst is nvr a guarantee that an audit conducted in Accor&nce with ISAS (UK) will a]wAys deterta Illater￿li misstit¢mentwhen it extsts.MisstatrTllCn15 can arise from fraud or e￿Or and arL' Con3Édc￿d tnatell￿ if.indiviJu4ly or in tht a8sregal4 theycould reason2bly be eKp¢rted to influence th¢ ecoaomic decisiorts tsf use[5 taken on the bisis of th¢5C A fvrther descriptit>n of OUT r¢5ponsibdities for the audit of the finat)eial 5tiiemenrs is locAted on the Financial Reporting Counci15 website 2t www.fr¢.QlK.uklauditorsresponsibiJities.Ihis description fotttLS parrof our auditvr's [c￿rt. s ttpon is solely t(> the chariry trust￿. Rs a body, itt #¢cordRnce With section 144 of the Charities Act 2011 and r¢8uiltiot￿ made uTrderseetiOn 154 ¢>f rhatAcr. Our work has been undertrthen sv thatiye might state to th¢ tru5ree5 those m'att¢r8 we Are requsyed to #tatt to LTu$ree$ in an AuditOr5'w￿rI nd for no oth¢r pu￿￿e.T0 the fullest exteftr prTiiiitred by law, w¢ do not accq)t or as6um¢ respon6ibility ro Rnyi>ne other than thc ch2riry and its tru6rte% gs A body, for ovr auditworlfor tljis re￿rt, or for the opinion$ we forned. AtydrewHill FCCA DChA ISenioTStatutoryAtsdi¢orl F0r*ndOnbth￿f of HSJAudit Limited,St*thitoryAudiroT S¢vcrn 14ouse H2zrU Drive NeI￿ort NPIO 8FY DAte'. THE EGiIONTTRitsT12020 REPQRTOFTHE TRUSTEES&AUDffEts F1￿￿ANcIALSTATEME￿Ts | 1108194 ## **Notes to the Financial Statements** ## **Statement of Financial Activities for the Year Ended 31 December 2020** |Notes|Unrestricted funds
Restricted funds
Total 2020
£
£
£| |---|---| |**Income and Endowments**
**from:**
Donations and legacies
2
Investment income
3
**Total income**
**Expenditure on:**
**Charitable activities**
Total expenditure
Net income/(expenditure)
**Assets transferred to CIO**
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
14|1,244,048
451,010
1,695,058
939
-
939| ||1,244,987
451,010
1,695,997| ||(888,094)
(489,011)
(1,377,105)| ||(888,094)
(489,011)
(1,377,105)| ||356,893
(38,001)
318,892
(1,966,222)
(230,977)
(2,197,199)| ||(1,609,329)
(268,978)
(1,878,307)
1,609,329
268,978
1,878,307| ||-
-
-| ## **Statement of Financial Activities for the Year Ended 31 December 2019** |Notes|Unrestricted funds
Restricted funds
Total funds 2019
£
£
£| |---|---| |**Income and Endowments**
**from:**
Donations and legacies
Investment income
3
**Total income**
**Expenditure on:**
**Charitable activities**
Total expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
14|1,236,721
435,000
1,671,721
2,772
-
2,772| ||1,239,493
435,000
1,674,493| ||(1,207,326)
(450,911)
(1,658,237)| ||(1,207,326)
(450,911)
(1,658,237)| ||32,167
(15,911)
16,256
1,577,162
284,889
1,862,051| ||1,609,329
268,978
1,878,307| All of the charity’s activities derive from continuing operations during the above two periods. The funds breakdown is shown in note 14. **Please Note – The Egmont Trust has now transferred over to the recently registered Charitable Incorporated Organisation – Number 1186451. All reserves have been transferred over. Reserves will be used to fund projects throughout 2021.** THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **25** ## **Notes to the Financial Statements** ## **Balance Sheet as at 31 December 2020** |**Balance Sheet as at 31 December 2020**|| |---|---| |Notes|2020
2019
£
£| |**Current assets**
Debtors
11
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
12
Net assets
**Funds of the charity:**
**Restricted funds**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
14|-
20,642
-
2,406,342| ||-
2,426,984
-
(548,677)| ||-
1,878,307| ||-
268,978
-
1,609,329| ||-
1,878,307| **Please Note – The Egmont Trust has now transferred over to the recently registered Charitable Incorporated Organisation – Number 1186451. All reserves have been transferred over. Reserves will be used to fund projects throughout 2021.** ## **Cash Flow Statement for the Year Ended 31 December 2020** |Notes|2020
£|2019
£| |---|---|---| |**Cash flows from operating activities**
Net cash income
**Adjustments to cash flows from non-cash items**
Investment income
3
**Working capital adjustments**
Decrease in debtors
11
Decrease in creditors
12
Net cash fows from operating activities
**Cash flows from investing activities**
Interest receivable and similar income
3
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December|(1,878,307)
(939)|16,256
(2,772)| ||(1,879,246)
20,642
(548,677)|13,484
1,017,965
(174,342)| ||(2,407,281)
939|857,107
2,772| ||(2,406,342)
2,406,342|859,879
1,546,463| ||-|2,406,342| All of the cash flows are derived from continuing operations during the above two periods. The financial statements on pages 24 to 33 were approved by the trustees, and authorised for issue on ................/................/................ and signed on their behalf by: .................................................................. ## **Jeremy Evans** THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **26** ## **Notes to the Financial Statements** ## **1. Accounting policies** ## **Statement of compliance** The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)’, Financial Reporting Standard for Smaller Entities (effective January 2015) and the Charities Act 2011. The financial statements have been prepared under the historical cost convention. ## **Basis of preparation** The financial statements have been prepared under the historical cost convention. ## **Income and endowments** ## **Donations and legacies** Donations are recognised when there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. ## **Investment income** Investment income is recognised on a receivable basis. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. ## Charitable activities Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. ## **Grant expenditure** Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Trust. Single or multi- year grants are accounted for when the recipient has a reasonable expectation that they will receive the grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive the grant and any condition attaching to the grant is outside the control of the Trust. ## **Support costs** Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. ## **Governance costs** Governance costs include costs of the preparation and audit of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters. ## **Taxation** The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. **Depreciation and amortisation Asset class Depreciation method and rate** Office equipment 33% on cost ## **Trade debtors** Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. ## **Trade creditors** Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if they do not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. ## **Foreign exchange** Assets and liabilities in foreign currencies are translated into sterling at the rates 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 operating result. ## **Fund structure** Unrestricted income funds are general funds that are available for use at the Trustees’ discretion in furtherance of the objectives of the charity. Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. ## **Pensions and other post retirement obligations** The charity operates a defined contribution pension scheme. Contributions payable to the charity’s pension scheme are charged to the Statement of Financial Activities in the period to which they relate. THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **27** ## **Notes to the Financial Statements** ## **2. Income from donations & legacies** ||Unrestricted funds
Designated
(£)
General
(£)
Restricted funds
(£)
Total 2020
(£)
Total 2019
(£)| |---|---| |Donations and legacies;
Donations from individuals
Gift aid reclaimed|67,171
1,161,722
451,010
1,679,903
1,661,653
-
15,155
-
15,155
10,068| ||67,171
1,176,877
451,010
1,695,058
1,671,721| ## **3. Investment income** ||Unrestricted Funds||| |---|---|---|---| ||General|Total 2020|Total 2019| ||(£)|(£)|(£)| |Interest receivable and similar income;|||| |Interest receivable on bank deposits|939|939|2,772| ## **5. Analysis of governance and support costs** |**5. Analysis of governance and**|**support costs**| |---|---| |Support costs allocated
to charitable activities
Basis of
allocation|Governance
costs
(£)
Finance
costs (£)
Management
(£)
Total 2020
(£)
Total 2019
(£)| |Grant management
A
Fundraising & publicity
A
Finance & governance
A
Ofce & data management
A
Other
A
Foreign currency
A|-
-
151,132
151,132
146,769
-
-
135,407
135,407
118,823
5,756
-
49,030
54,786
55,994
-
-
54,303
54,303
52,801
-
-
6,653
6,653
23,271
-
11,729
-
11,729
28,753| ||5,756
11,729
396,525
414,010
426,411| ## **Basis of allocation Reference Method of allocation** A Direct costs plus allocated central costs on a time spent basis Other Egmont US and Partner meetings ## **4. Expenditure on charitable activities** ||Activity under-
taken directly
(£)
Grant funding
of activity
(£)
Activity support
costs
(£)
Total
2020
(£)
Total
2019
(£)| |---|---| |Alleviation of the impact of
HIV & AIDS
Grant management
Fundraising & publicity
Finance & governance
Ofce & data management
Other
Foreign currency|-
963,095
-
963,095
1,231,826
1,938
-
151,132
153,070
157,588
-
-
135,407
135,407
118,823
-
-
54,786
54,786
55,994
-
-
54,303
54,303
52,800
-
-
4,715
4,715
12,453
-
-
11,729
11,729
28,753| ||1,938
963,095
412,072
1,377,105
1,658,237| THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **28** ## **Notes to the Financial Statements** ## **6. Grant-making** ## **Analysis of grants** The support costs associated with grant-making are £159,293 (31 December 2019 - £157,588). Below are details of material grants made to institutions. |
Below are details of material grants made to institutions.|| |---|---| |Name of institutions
Activity|2020 (£)
2019 (£)| |**Kenya**
Alleviation of the impact of HIV & AIDS
**Malawi**
Alleviation of the impact of HIV & AIDS
**Mozambique**
Alleviation of the impact of HIV & AIDS
**Tanzania**
Alleviation of the impact of HIV & AIDS
**Zambia**
Alleviation of the impact of HIV & AIDS
**Zimbabwe**
Alleviation of the impact of HIV & AIDS|101,484
125,815
244,080
309,864
98,870
109,412
110,837
84,277
142,621
224,482
265,203
377,976| ||963,095
1,231,826| ## **7. Net incoming/outgoing resources** |**7. Net incoming/outgoing resources**||| |---|---|---| |Operating leases - other assets|2020 (£)
14,296|2019 (£)
14,220| |Audit fees|3,726|3,600| ## **8. Trustees remuneration and expenses** No Trustees, nor any persons connected with them, have received any remuneration from the charity during the year. No Trustees have received any reimbursed expenses or any other benefits from the charity during the year. ## **9. Staff costs** The aggregate payroll costs were as follows: ||2020 (£)
2019 (£)| |---|---| |Wages and salaries
Social security costs
Other pension costs|274,600
235,071
18,365
15,326
6,978
5,318| ||299,943
255,715| The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full time equivalents was as follows: |||2020|2019| |---|---|---|---| |||(No)|(No)| ||Charitable activities|8|8| 5 (2019 - 5) of the above employees participated in the Defined Contribution Pension Schemes. ## **10. Taxation** The charity is a registered charity and is therefore exempt from taxation. ## **11. Debtors** |**11. Debtors**|| |---|---| ||2020 (£)
2019 (£)| |Prepayments
Other debtors|-
17,590
-
3,052| ||-
20,642| ## **12. Creditors: amounts falling due within one year** |**12. Creditors: amounts falling due within one year**|| |---|---| ||2020 (£)
2019 (£)| |Trade creditors
Other creditors|-
548,514
-
163| ||-
548,677| THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **29** ## **Notes to the Financial Statements** ## **13. Obligations under leases and hire purchase contracts** ## **14. Funds - continued** ## **Operating lease commitments** |**Operating lease commitments**||||||| |---|---|---|---|---|---|---| |
Total future minimum lease payments under non-cancellable operating leases are as follows:
2020 (£)
2019 (£)
Land and buildings
Within one year
12,000
12,000
Between one and fve years
22,000
34,000
34,000
46,000
**14. Funds**
Balance at
1 January
2020
(£)
Incoming
resources
(£)
Resources
expended
(£)
Transfers
(£)
Assets
transferred to
CIO
(£)
Balance at 31
December
2020
(£)
**Unrestricted funds**
**General**
General fund
1,584,329
1,177,816
(820,923)
-
(1,941,222)
-
**Designated**
Treebeard Trust
25,000
34,000
(34,000)
-
(25,000)
-
US Foundation
-
23,171
(23,171)
-
-
-
Souter Charitable Trust
-
10,000
(10,000)
-
-
-
25,000
67,171
(67,171)
-
(25,000)
-
**Total unrestricted**
**funds**
1,609,329
1,244,987
(888,094)
-
(1,966,222)
-
**Restricted funds**
Operational costs
214,576
376,010
(395,628)
(4,715)
(190,243)
-
Egmont US
-
-
(4,715)
4,715
-
-
Peer Partner Activities
1,932
-
(1,938)
-
6
-
Foreign Currency
Translation
52,470
-
(11,730)
-
(40,740)
-
Waterloo
-
75,000
(75,000)
-
-
-
**Total restricted**
**funds**
268,978
451,010
(489,011)
-
(230,977)
-
**Total funds**
1,878,307
1,695,997
(1,377,105)
-
(2,197,199)
-||Balance at 1
January 2019
(£)|
Incoming
resources
(£)|
Resources
expended
(£)|
Transfers
(£)|Balance at
31 December 2019
(£)| |||||||| ||**Unrestricted funds**
**General**
General fund
1,552,162
1,182,763
(1,150,596)
-
1,584,329
**Designated**
Esmee Fairbairn
Foundation
-
5,000
(5,000)
-
-
Treebeard Trust
25,000
25,000
(25,000)
-
25,000
US Foundation
-
26,729
(26,729)
-
-
25,000
56,729
(56,729)
-
25,000
**Total unrestricted**
**funds**
1,577,162
1,239,492
(1,207,325)
-
1,609,329
**Restricted funds**
Operational costs
191,291
410,500
(374,387)
(12,828)
214,576
Egmont US
(375)
-
(12,453)
12,828
-
Peer Partner Activities
12,750
-
(10,818)
-
1,932
Project Specifc Grants
-
4,500
(4,500)
-
-
Foreign Currency
Translation
81,223
-
(28,753)
-
52,470
ALMT
-
20,000
(20,000)
-
-
**Total restricted**
**funds**
284,889
435,000
(450,911)
-
268,978
**Total funds**
1,862,051
1,674,492
(1,658,236)
-
1,878,307
**Te specifc purposes for which the funds are to be applied are as follows:**
**Te Operational Costs Fund**- provided by Trustees and Patrons to cover the operating costs of the Charity, thus ensuring that all other
income raised can be utilised on primary charitable activities.
**Te Treebeard Trust**- to be used to support HIV/AIDS at Workplace Intervention Programme (HAWIP) in 2020 & 2021. Additional
funds received to support Partners in their COVID-19 response programmes.
**Souter Charitable Trust**- used to support a specifc Egmont Partner in 2020, Rural New Life Development Kenya (RUNELD).
**Foreign currency funds**represent the gains or losses year on year upon translation of U.S dollar bank accounts or debtors in to the charity's
functional currency.
**Peer Partner Activities**- Costs associated with peer partner activities such as in-country partner meetings for shared learning, funded by
Trustees and Patrons|1,552,162
-
25,000
-|1,182,763
5,000
25,000
26,729|(1,150,596)
(5,000)
(25,000)
(26,729)|-
-
-
-|1,584,329
-
25,000
-| |Land and buildings
Within one year
Between one and fve years
**14. Funds**||||||| |||||||| |||25,000|56,729|(56,729)|-|25,000| |||1,577,162|1,239,492|(1,207,325)|-|1,609,329| |**Unrestricted funds**
**General**
General fund
**Designated**
Treebeard Trust
US Foundation
Souter Charitable Trust
**Total unrestricted**
**funds**
**Restricted funds**
Operational costs
Egmont US
Peer Partner Activities
Foreign Currency
Translation
Waterloo
**Total restricted**
**funds**
**Total funds**||||||| |||191,291
(375)
12,750
-
81,223
-|410,500
-
-
4,500
-
20,000|(374,387)
(12,453)
(10,818)
(4,500)
(28,753)
(20,000)|(12,828)
12,828
-
-
-
-|214,576
-
1,932
-
52,470
-| |||284,889|435,000|(450,911)|-|268,978| |||1,862,051|1,674,492|(1,658,236)|-|1,878,307| **Peer Partner Activities** - Costs associated with peer partner activities such as in-country partner meetings for shared learning, funded by Trustees and Patrons. **US Foundation** - used to support specific Egmont Partners in 2020, Community Partnership for Relief and Development (COPRED). **Waterloo Foundation** - used to support specific Egmont Partners in 2020, Wild 4 Life (W4L), Youth Advocates Zimbabwe (YAZ), AIDS Counselling Trust (ACT). **Please Note – The Egmont Trust has now transferred over to the recently registered Charitable Incorporated Organisation – Number 1186451. All reserves have been transferred over. Reserves will be used to fund projects throughout 2021.** THE EGMONT TRUST | 2020 REPORT OF THE TRUSTEES & AUDITED FINANCIAL STATEMENTS | 1108199 **30**