## **APT ACTION ON POVERTY**
## Annual Report and Audited Financial Statements 31 December 2021
_Maureen, Project Assistant on Eradicating Child Labour project in Uganda spreads awareness on a community radio show._
Company no. 01872538 Charity no. 290836
## **APT Action on Poverty**
## **Reference and administrative details**
## **For the year ended 31 December 2021**
|**Company number**|01872538||
|---|---|---|
|**Charity number**|290836||
|**Registered office and**|Nicholas House||
|**operational address**|Heath Park||
||Main Road||
||Cropthorne||
||Pershore||
||Worcestershire, WR10 3NE||
|**Trustees**|Trustees, who are also directors under company law, who served||
||during the year and up to the date of this report were as follows:||
||Helen Altshul||
||Jake Bharier||
||Brian Capper||
||David Elliott||
||Neil Fray|resigned 11 May 2021|
||Amber Honey|appointed 24 March 2021|
||Malcolm Harper|resigned 30 September 2021|
||Louise Locke|resigned 10 May 2022|
||Justine Williams|resigned 10 May 2022|
|**Chief executive**|Alex Daniels||
|**Company secretary**|Elizabeth Chard|resigned 9 March 2021|
|**Bankers**|Barclays Bank plc|Virgin Money plc|
||128 High Street|Jubilee House|
||Cheltenham|Gosforth|
||GL50 1EL|NE3 4PL|
||CAF Bank Limited||
||25 Kings Hill Avenue||
||Kings Hill||
||West Malling||
||Kent||
||ME19 4JQ||
|**Auditors**|Godfrey Wilson Limited||
||Chartered accountants and statutory auditors||
||5th Floor Mariner House||
||62 Prince Street||
||Bristol||
||BS1 4QD||
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
The trustees are pleased to present their report and accounts for the year ended 31 December 2021, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The accounts comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **Structure, governance and management**
The company is limited by guarantee, was registered as a charity in 1985 and is governed by its Memorandum and Articles of Association.
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the company’s aims and objectives and in planning future activities and are therefore confident that APT Action on Poverty (‘Action on Poverty’) meets the public benefit requirements.
When considering the appointment of trustees the board give regard to the skills audit of existing trustees, the requirement for any specialist skills, and the ability to contribute to the charity’s governance and objectives. The key element of the trustee’s induction is to ensure a sound understanding of the charity’s mission, principles and strategy as well as the legal obligations of trustees. The induction process for new trustees involves a combination of provision of key documents plus communications and face to face discussions with the Chair of the trustees and the Chief Executive. New trustees are required to comply with company law requirements and declare any interests.
The Chief Executive of Action on Poverty, Alex Daniels, is appointed by the trustees to manage the day to day operations of the charity and ensure the overall implementation of the organisational strategy as agreed by the trustees. The Chief Executive and the Chair of the trustees communicate on a regular basis.
## **Objectives and activities for the public benefit**
## **Our Vision:**
We have recently tightened our vision to: _A world where everyone can work with pride for a better future._
## **Our Mission:**
We have also tightened our mission to:
_To work with people in parts of Africa to address barriers to safe and lasting work, hunger and injustice._
We aim to achieve our objectives through delivering programmes targeting specific sectors, communities and/or disadvantaged groups. These programmes all have a livelihood focus (accessing employment, incomes through enterprise and/or increased food production) together with addressing inequalities and exclusion of target beneficiaries to secure sustainable and transformational change. We deliver this through working together with partners and communities to design programmes and activities in the various countries in which we operate, with the activities dependent upon local needs.
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
Our key strengths are our experience with:
- Promoting enterprise and decent work;
- Reaching people who are marginalised (such as women, young people, people with disabilities (PWD), and those in a fragile environment); and
- Supporting the development and leadership of organisations – including our partners, CBOs (Community Based Organisations) and other stakeholders.
## **Achievements and performance**
At the end of 2021 there were five programmes delivering high quality, effectively monitored work and sustainable impact. One of these was completed with an evaluation in January 2022.
The global impact of Covid-19 continues to be felt for a long time here in the UK and in the poorest communities where we work, with both economic and social impact. The progress against Sustainable Development Goals has been hit hard, including those goals which Action on Poverty is focused on (1 (End Poverty), 2 (Zero Hunger), 5 (Gender Equality) and 8 (Decent work)). Whilst statistical data limitations, health facilities, testing and slow/inadequate vaccination programmes all hinder the response to the global pandemic in countries in which we work, the response and movement restrictions have varied, continuing to severely impact on food security and other basic needs. In Sierra Leone travel bans were in place in different areas during the year; Covid-19 case numbers were reported to be very low by the end of the year, with only 8.7% of the population having had two doses of vaccinations. The rate of infection in Uganda sharply increased at times during the year resulting in a re-introduction of lockdown in June 2021 with restrictions on travel, meetings and gatherings. The restrictions were eventually eased, with schools only reopening early in 2022. New leadership with President Suluhu has moved Tanzania from a position of Covid-19 denial to begin a vaccination programme, enough to have vaccinated about 2.8% of the country’s population. Kenya had various containment measures in place, such as a nightly curfew, throughout most of the year, while the vaccination programme continued with 10% of adults fully vaccinated by December 2021.
Despite the increased needs, many funding sources have faced disruptions and have declined, not least the Foreign Commonwealth and Development Office (FCDO) which has provided support to our programmes for many years. Uncertainty resulting from the merger of the Department for International Development (DFID) with the FCO and the heavy cuts in funding for development continue. No overseas travel took place in 2021 and this has meant that project managers have continued to conduct meetings online and to develop approaches to supporting and managing projects remotely. Hybrid working has also been in place.
Despite the challenges, Action on Poverty has made an impact in 2021 which again went beyond our expectations. We have worked with over 40,000 beneficiaries directly during 2021 to obtain sustainable livelihoods so that they can secure enough food, medicines and education for themselves and their children and a life with more respect and dignity. A further 275,000 people have been supported through being better informed, empowered and/or as dependants of the direct beneficiaries. To extend the impact and to build for the future our work has also strengthened 1,036 small community organisations, including those for people with disabilities, and producer groups to become more effective in helping their members collaborate for increased incomes, obtain better services and/or to influence other stakeholders to ensure their needs are not excluded in the future.
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
We consider that poverty and gender inequality are inextricably linked and this continues to be reflected in our work – 76% of the people directly reached are women. We also continue to improve the mainstreaming of people with disabilities (PWD) into our work and have supported two programmes which have inclusion of PWD as a key focus. Learning from our work in this area will be consolidated and fed into new programmes.
In terms of diversification of our funding sources, a grant from a new institutional donor, the Norwegian Development Agency (Norad), was secured in early 2021 as a result of an application made in 2020. During 2021, applications were made to institutional funding sources from other countries, including from Belgium, the Netherlands and the United States. At the beginning of 2022 we were informed that two of these (Belgium and Netherlands funding) had been successful. Continued emphasis was given to securing significant levels of donations from trusts and foundations and whilst we have secured essential income from this source, such as from the Medicor Foundation, the Dulverton Trust, the Charles Hayward Foundation and the Allan and Nesta Ferguson Charitable Settlement, our unrestricted funding from Trusts was reduced. However, the recruitment of a fundraiser – made possible through an earlier legacy – enabled us to increase our public fundraising from a BBC Radio 4 appeal, a Christmas Big Give Appeal, and from major donors. This has enabled us to develop a small project to widen the impact of work undertaken with Covid-19 response funding in Sierra Leone, which will be implemented in 2022. We were pleased to receive an award from the Big Give Appeal in recognition of this work.
## **Performance of programmes**
## **Sierra Leone**
## **‘Livelihoods and Food Security for Vulnerable People in Sierra Leone’** (April 2018 - June 2021)
This project was implemented with our partner Movement for Assistance and Promotion of Rural Communities (MAPCO) and funded by the Foreign Commonwealth and Development Office (FCDO) with match funding from Medicor Foundation. The project addressed the chronic poverty faced by rural communities with inadequate incomes, food and nutrition, especially children and vulnerable mothers in Moyamba District. This situation is exacerbated by gender and disability discrimination and the unemployment of youth. This project presents the opportunity to work with some of the poorest people in all of Sierra Leone – Moyamba District was identified as one of the two poorest districts in the country.
_**Esther (left), a widow in Manjehun community** , can now feed her children through her soap-making and enterprise skills in addition to farming, and now has the leadership skills to chair and lead a CBO helping others do the same._
The project was due to end in March 2021 but was extended for a further three months due to the FCDO cuts (across all grants made by the FCDO) in 2020.
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
An external evaluation was carried out in April 2021 and recorded that:
- Loan records as at November 2020 indicated that the available funds in the loan account was about 247% of the loan capital that was initially provided to the 15 CBOs, with high levels of ownership of the funds from CBOs, which give good indications for sustainability;
- CBOs are well positioned to engage with other development actors and demonstrated good understanding that the role of working with development partners now falls to them, rather than relying on MAPCO; and
- Outcomes for women were reported to be very positive, with a marked increase in the number of women owning and operating microenterprises, and an improvement in the bargaining position and power of women within households.
Recommendations included the development of a strategy for financial sustainability of the waterpoints, the development of a standard operating procedure for CBO cash management, and improved strategies for inclusion of satellite communities in access to services. A private sector study also identified a number of businesses which have links to large numbers of smallholder farmers as part of their supply chains. The study helped to identify GoldTree/Planting Naturals, who we are now working with to eradicate child labour in their supply chains.
**‘The Empowerment and Education of Young Mothers, Women and Girls’** (August 2018 - August 2021)
Together with our partner Community Action for Rural Development (CARD) and with funding from the European Union this project aimed to empower 3,500 young women in 40 rural communities in Kenema District both economically and socially. They accessed literacy, business skills, apprenticeships and rights training. 40 CBOs and five Non-Governmental Organisations (NGOs) were strengthened to deliver these services and to operate more effectively in the future. The project included an understanding of the mechanisms to protect young women from gender-based violence and fostered attitudinal change among men and community leaders. The Turing Foundation also contributed to this project by supporting the Apprenticeship Training of 200 of the most marginalised women, especially those with disabilities and young mothers.
The 40 CBOs have developed their management, improved planning and roles and responsibilities and established or expanded Village Savings and Loan Associations (VSLAs). A disability awareness training session was held for all five NGOs and the learning from this was passed on to the 40 CBOs. Some of the CBOs have started up new literacy circles and apprenticeships and the VSLA schemes are operating well in all 40 communities. The five NGO partners have worked with the CBOs and local leaders to set up oversight committees which will continue to monitor and support the VSLAs, literacy training and apprenticeships in the post-project period.
The findings of the external evaluation were very positive, showing significant achievement of outcomes:
- Staff capacity at the 5 NGOs has improved, particularly in project management, disability and inclusion, financial management, monitoring and evaluation, amongst other skills;
- Project stakeholders appreciated the relevance of activities in enhancing women’s participation and changing patriarchal perceptions and attitudes, acknowledging the increased interest of women and PWDs in policy making;
- The apprenticeship schemes and business management training were found to be influential in supporting young women including teenage mothers into business management and income generation, with increased income levels leading to enhanced status and recognition of women at household and community levels; and
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
- 3,542 women have benefitted from improved literacy skills, 219 women completed apprenticeships and 3,517 women have joined VSLA groups.
Recommendations included: replication of the project’s approach in influencing positive masculinity, promoting women’s empowerment and addressing poverty issues, as well as replicating the unique ‘trickle down approach’ in capacity development of NGO and CBO structures for social accountability, inclusive development planning and economic development; improved action planning for sustainability, particularly with literacy groups; and focusing on fewer beneficiaries and locations for greater impact.
_**Miata, CBO chair and literacy learner, Nomo chiefdom (left)** has increased her income 7 fold through functional literacy and business skills, and access to saving and loans scheme. As Chair she shares her influence with other people in her community._
## **‘Empowering Local Communities in Pujehun District’** (November 2019 - October 2022)
This three-year project started in November 2019 with funding from the European Union. We are providing technical support to the project, which is being implemented by our partner MAPCO as they take on their first large project as the lead. The project will create lasting change by enhancing the capacity of community structures (CBOs), Village Development Committees (VDCs), Ward Development Committees (WDCs) in nine rural chiefdoms of Pujehun District, to improve integrated governance and deliver livelihood services to 5,700 vulnerable families (30,000 people). It will contribute to the empowerment of marginalised communities in some of the most disadvantaged areas enabling women, youth and PWD to access employment opportunities and earn sustainable incomes. It will increase the incomes of 4,560 vulnerable families bringing benefits to approximately 24,000 people.
The project has now completed its second year and has already had a significant impact. 19 CBOs have continued to provide services to members, including revolving loans, seed banks, literacy training and vocational apprenticeships. 5,124 families have accessed new livelihood services as CBO members (benefitting 29,204 household members), of which 3,148 (61%) are families led by women, 2,822 led by young people and 567 led by PWD. A 100% loan repayment rate has been maintained across the 19 communities. By the end of year two, 4,666 people had increased their average monthly incomes by at least 30%, whilst 3,945 community members had knowledge and understanding of gender equality and women’s rights. 2,043 women, 1,593 young people and 312 PWD reported improved participation in decision making in their household and/or community. 57 demands (requests for services, access to government programmes etc.) were made by CBOs and other community structures to duty bearers in year two, a 33% increase on the number of demands made in year one.
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
The Turing Foundation has also supported the apprenticeship training component of this project, with a grant over three years. 357 apprentices (226 women, 48 teenage mothers, 9 people with disabilities) have successfully completed vocational training with local artisans in various trade areas such as bread baking, cloth weaving, soapmaking, tailoring, blacksmithing and motorbike repairs. 83% of these trainees have accessed small business loans from the CBOs to either start their own businesses or expand existing businesses. 261 trainees are already earning a regular income and/or contributing to household incomes, which has enabled purchases of meals, school fees and essential medicines.
_Aminata is 29 years old, and lives in Pujehun with her three children. She used to do domestic work in the community and earned Le 40,000 per month which was insufficient to meet her family’s basic needs._
_After taking part in a baking apprenticeship, Aminata has acquired the skills and knowledge to bake bread with support from her artisan trainer. She now earns Le320,000 per month from sales of her bread, which she said “has enabled me take care of myself, and my family independently. My children are very happy; there is no more hunger in the house”._
## **Kenya**
Whilst Kenya is making some progress in its GDP as a country inequalities remain very challenging and our focus is on reaching those who are particularly marginalised.
## **Strengthening the Implementation of the CRPD (Convention on the Rights of Persons with Disabilities) with Women with Disabilities in Kenya and Uganda** (January 2019 – December 2021)
SITE Enterprise Promotion Limited (SITE), a long-term partner of Action on Poverty, is the lead partner of this project which will improve the implementation of the CRPD in order to promote the full and equal enjoyment of all human rights by women living with disabilities. It is managed from Kenya with Action on Poverty providing a technical support role along with two other partners KUB (Kenya Union of the Blind) and NUWODU (National Union of Women with Disabilities of Uganda). The focus within the CRPD is on Articles 6 (women) and 27 (livelihoods).
This is an ambitious project. The anticipated result was that the CRPD is more effectively implemented in Kenya and Uganda with specific reference to gender and livelihoods, enterprise and employment, and demonstrated in three selected areas. These are Meru and Machakos (Kenya) and Gulu (Uganda). The primary beneficiaries are 51,135 women with disabilities in Kenya and 21,526 in Uganda. It will integrate disability into wider human rights work specifically enabling access to services and resources to secure livelihoods, enterprise and employment for women with disabilities.
This project has had an impressive impact, despite being hindered by the effects of Covid-19 due to the level of networking and linkages being required. Working with a multi-sectoral and rights-based approach with a range of stakeholders for sustained impact on improving the inclusion of WWDs (Women with Disabilities), the project has significantly exceeded targets:
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
- Over 167,000 PWDS have increased awareness of the CRPD and disability rights;
- 28,331 PWDs (22,228 WWDs) accessed services from government and other service providers;
- 18,332 WWDs accessed financial services and 12,703 improved skills relating to enterprise; and
- ▪ 8,032 jobs created with WWDs.
Key to sustaining ongoing impact, the project also facilitated processes and improved structures:
- 627 Duty bearers have understanding of the CRPD, WWDs’ specific needs and acted towards inclusion of PWDs at village, ward, sub county and county level;
- Specific recognition of CRPD or the rights of WWDs/PWDs in county/district plans (Kenya: 7; Uganda: 10) and over 20 key decisions made which transformed the PWD sector and had a wide impact on a large number of PWDs; and
- Structures with a range of strategies in place at county/district level for sustained inclusion of PWDs, supported by PWD champions and 846 strengthened and engaged organisations of PWDs (OPDs) and the representation of 36 stakeholder institutions.
The external evaluation indicated that the project has “made great impact, beyond the expected impact”, not least in terms of developing proven models for county level CRPD implementation regarding creation of the PWD coordination structure in Meru and the District (CRPD) caucuses in Uganda, as remarkable. These structures provided the government with effective platforms for engagement on disability issues. Further progress is still required, such as improving data capture and management systems, strengthening reporting mechanisms within the W/PWD structures, continued awareness creation/sensitisation among/of PWDs and the public, and strengthening young OPDs.
**Improved Livelihoods and Resilience through Camel Milk** (1 April 2021- 31 March 2024) This project builds on the success of previous work with our partner SITE to transform the camel milk value chain, improving productivity and competitiveness of camel milk and value-added products. We now want to consolidate and expand on the achievements in neighbouring areas.
This project aims to strengthen the camel milk sector for the benefit of stakeholders, their families and other consumers in Garissa and Wajir counties, resulting in increased and more secure incomes and improved food security of 5,350 camel owners, herders, traders and their families. Project activities will support and improve the efficiency of the whole process from production to consumer, aimed at increasing markets and sales of camel milk and building the capacity to supply reliable quality milk. The project will protect the environment and build resilience to climate shocks through improved management of water resources, improved camel health, drought resilience strategies and enhanced knowledge of sustainable grazing practices.
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
Sadly, the drought in Kenya continued until late December and had a severe impact on activities as camel owners and herders experienced difficult and stressful conditions including weak and sick animals, disposal of camels, reduced milk production, prolonged re-location with herds to remote distances in search of pasture and water, and households affected by poor diets. A rapid situation analysis helped the team to understand the different coping mechanisms adopted. It also analysed the impact of drought on family diets from consultations with school administrators and officers incharge of health centres. It showed that nearly 50% of camel owners and herders lost camels to drought and others sold camels as a coping mechanism to raise money for supplementary fodder, treatment and drugs for livestock, and to purchase water from water truckers, salaries and upkeep of herders/families in the absence of incomes from camel milk due to low volumes sold. There were increased incidences of severe malnutrition in children reported. 85% of primary milk traders and their families migrated with the herds for long periods, operating in the remote villages and watering points and abandoning milk trading. Lessons learnt from this included the need for training on preparatory herd management.
The project team spent time engaging traders, transporters, community animators and re-connecting with the returning client groups (herders, traders, camel owners) as well as sensitising households on camel milk nutrition, and sensitising new entrants on the project scope and opportunities presented by the camel milk value chain.
A detailed assessment of technical issues affecting the water infrastructure was carried out in partnership with the Garissa Ministry of Water, which provided their engineer and water technician to assess equipment. A participatory community approach was used to establish the problems, identify gaps and investments required. The participants were taught the ‘do’s and don’ts’, and how to improve the performance of the equipment for better service delivery in their communities.
Capacity building took place for water committee members and community animators at four water points, whereby participants were trained on lobbying and networking skills. As a result:
- Shimberey and Skanska water committees were able to lobby Islamic Relief Agency through the county Government for repairs and installation of a Genset; and
- In Sabuli water point the water committee were able to raise funds to engage a water technician from Wajir county Government to repair the existing faulty Genset, which is now functioning well with no water interruptions experienced.
The project team are now planning to make up for the lost time now that the herders are returning to the project areas.
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **Uganda**
**Skilling Youth for Sustainable Livelihoods in Refugee Hosting Communities** (October 2019 – September 2021)
This was a two-year project designed to increase employment opportunities for marginalised young people including refugees and host communities in Agago and Lamwo Districts in Northern Uganda. It addressed the skills, knowledge and experience gap that hinders young peoples’ ability to generate income or gain employment. The project was implemented in partnership with Volunteer Efforts for Development Concerns (VEDCO) and they have a strong team in place to cope with the challenges of undertaking sustainable development work in an area which has both severe deprivation and longterm humanitarian assistance. The planned result was that 800 young people (50% female, at least 5% people with disabilities and 35% refugees) would be trained in market-relevant technical and employability skills. Of these 70% would earn an income through employment or self-employment and young people would have improved representation and engagement in public and private sectors.
In April 2021 we were notified by UK Aid Direct (FCDO) that the project would be terminated on 30 July 2021 (two months earlier than the planned end date) due to the reduction in the UK Government’s aid expenditure from 0.7% of Gross National Income (GNI) to 0.5%. This created further challenges for the project, particularly after the budget savings made in 2020. In devising the revised project closure budget, we prioritised the training plans and honouring commitments already made to participants. This meant that the project was able to meet (and in some cases exceed) its targets: 800 young people in refugee and host communities were trained in business skills, life skills and participated in work placements to gain technical skills in a trade area of their choice (e.g. hairdressing, horticulture, motorbike mechanics, tailoring). By the end of the project, 70% of trainees had already found employment or had started their own businesses since completing their work placements. There had also been a noticeable shift in attitudes in an area where young people were previously very dependent on humanitarian assistance and handouts. The training has built the confidence, social skills and knowledge of the young people, which has supported them to find new employment and develop their own business plans. Some young people have become peer mentors to inspire and motivate others.
## _**“Disability is not inability!”**_
_Charles, from Agago district was unemployed, with little hope for his future._
_After a 3-month work placement through the project with a local business to acquire skills in shoe making and repair, Charles was supported to start his own workshop. He is now earning UGX 300,000 per month, using the group savings and loans scheme. Charles has diversified his business into making local ‘tyre shoes’, affordable and accessible to a wider range of community members._
_Charles is proud of being able to provide for his family, but also of being well known in the community. In future Charles plans to share his skills by training other young people in the community._
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
The project extension to respond to the impacts of Covid-19 in the target areas was also successfully delivered as planned (October 2020 – March 2021). 800 households (560 led by women) are now growing vegetables in backyard gardens as a result. 784 households (3,921 people) have improved access to at least two nutritious meals per day, whilst 721 households are earning an income from group farming activities. 800 handwashing facilities were distributed and 42 people (23 female, 14 PWD) have been trained in soapmaking to meet local demand and earn incomes. 35,400 people were reached through radio programmes with key Covid-19 awareness and prevention messages.
## **Eradicating Child Labour in Uganda** (April 2021 – December 2023)
Working with our partner Platform for Labour Action (PLA), the project will contribute to eradicating child labour in Uganda, focusing on two regions where child labour is very common: Busoga subregion and Greater Kampala Metropolitan Area. Funded by the Norwegian Agency for Development Cooperation (Norad), the project will enable over 12,000 families to be more resilient in the face of recruitment to child labour though increasing understanding on preventing and combating child labour – with community taskforces, sensitised duty bearers, and awareness-raising in the media. It will strengthen the social protection of targeted families, improving incomes and access to skills, establish public/private partnerships including a child-free zone in key industrial parks; thus improving the implementation of International Labour Organisation (ILO) conventions on child labour.
The project has started well in its first year, despite challenges during the start-up phase which coincided with a further severe wave of Covid-19 in Uganda. The lockdown led to delays in the planned training of key groups in the project, including the network of community champions and local leaders. However, the project team worked hard to fast-track activities from August 2021 when restrictions were lifted including:
- 209 community champions across both regions were trained in child rights, child labour prevention, child protection, positive parenting and the prevention of child abuse and exploitation. Alongside this, they were trained in enterprise and practical skills such as making snacks, bookmaking and soap-making, which they are sharing with community members so that families can develop alternative income sources to child labour;
- 1,163 households have been reached and supported by community champions to prevent the worst forms of child labour;
- 196 local leaders were trained on child labour laws and policies and have started to organise community awareness on the dangers of child labour, as well as acting on cases of child labour or exploitation identified in their communities;
- Radio talkshows related to child rights and child labour including the impact of COVID-19 on children and family coping mechanisms, roles and responsibilities of parents and duty bearers, worst forms of child labour and hazardous work, have helped to raise awareness more widely. 15,018 people have been reached through radio programmes with awareness messages and 59% of listeners have since used the messages to sensitise their peers, report cases of child labour or change their own behaviours; and
- A Rapid Assessment on the impact of the absence and non-facilitation of Labour and Probation Officers in the prevention of child labour will be used as an advocacy tool at multiple levels to push for more resourcing of workplace inspections and other activities to protect the rights of children.
As mentioned under **‘Kenya’** earlier we are also **‘Strengthening the Implementation of the CRPD with Women with Disabilities’** in Uganda.
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **Tanzania**
**Disability Inclusion in Village Community Banking (DI-VICOBA)** (July 2018 – June 2022) In November 2020 we took over the management of this project, funded by the National Lottery Community Fund, from African Initiatives. We are working with Tusonge Community Development in Njia Panda ward in Tanzania. The project aims to reach 540 direct beneficiaries with economic empowerment activities, at least 10% of whom will be people living with a disability; deliver training and awareness raising activities to increase knowledge of disability rights and empower those living with disabilities to claim them; and to increase the practice and capacity of Tusonge and Action on Poverty to design and implement disability inclusive projects.
In 2021 Tusonge have continued to work with participants from all three years to consolidate their knowledge and to mentor trainees and create business networks. The Year 3 report showed excellent results for income generation: 100% of participants were engaged in income generation activities: up from 34%, with 77% of participants earning more than 15,000 Tanzanian shillings per week. At the baseline 54% of people said that their income never met basic needs. This dropped to zero by the end of Year 3.
They have continued to work with community champions, the PWD union, and advising and lobbying government representatives on the rights of PWDs. Tusonge have forged new partnerships with two organisations, the Tanzania Disability Development Initiatives (TDDI) in the Kilimanjaro region and Equality for Growth (EfG) located in the Dar es Salaam region, to discuss joint initiatives to effect changes on the livelihoods of PWDs. Tusonge also participated in an international dialogue on “16 Days of Ending Gender-Based Violence”, which brought together many organisations in Tanzania, including NGOs networks, religious institutions and government institutions. Organised by the United Nation Population Fund (UNFPA), the programme aimed at developing a paper on PWDs matters to present before the public. The deputy minister under Prime Minister’s office with responsibility for PWDs in Tanzania visited Tusonge to meet with PWDs and to hear their concerns. She also delivered wheelchairs and crutches. Tusonge is increasingly attracting visits of this sort as their reputation grows; they celebrated their 10-year anniversary with a number of public events and webinars.
_Stanley Macha is a father of four children. When he was nine years old he fell out of a tree and had a spinal cord injury which left him unable to walk._
_Stanley joined a Tusonge led VICOBA group and was able to invest his share in a wheelchair which enabled him to be more mobile and run a small shop. As it was difficult for him to use a wheelchair during the rainy season, Tusonge then helped him to develop an individual work plan and access a government grant. He invested this money in a BAJAJI tricycle motorcycle._
_He is now famous for transportation in Njia Panda and can pay for the education of his four children and provide for all their needs at home._
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## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **Plans for the future**
Our Strategic Plan confirms our vision, mission and aims.
Given the changing environment and context in which we work, and success in reaching our targets earlier than anticipated, we reviewed our strategic plan. The global context adds an additional layer of challenges and need for our work; we need more than ever to deliver sustainable, cost effective and transformative impact on livelihoods targeting people in Africa who are marginalised in different ways. We will work to catalyse change in this area of work by proactively pushing a cross-cutting agenda of inclusive livelihoods amongst different stakeholders. This includes working to support the leadership and development of our partners, and developing collaborations with new stakeholders.
We will also diversify our range of income sources.
## **Specific objectives**
We will:
- 1 Deliver sustainable, cost effective and transformative economic and social impact through: i. Targeting people who are marginalised;
- ii. Supporting the development and leadership of local organisations; and
- iii. Stimulating change in the private sector (at all levels including with micro enterprise and the formal sector) for better development impact.
- 2 Develop a sound financial platform by: i. Securing funding from new institutions and trusts to follow up earlier success; and
- ii. Building our supporter fundraising from a low resource base.
- 3 Undertake focussed promotion, sharing and exchange of learning.
Specific targets and activities have been set for the above.
## **Financial review**
As always the vast majority of our total expenditure of £783,772 has been on charitable activities in the year and sent out to our local project partner organisations who lead our projects from within the communities they are designed to help. Similarly, of the costs incurred in the UK, the vast majority was spent on programme management, with our staff overseeing and adding value to the projects and reporting back to our UK donors.
During 2021, our unrestricted activities resulted in a surplus of £17,832. This leaves unrestricted general reserves of £220,760 at the year-end which were in excess of our 6-12 month target range and this will ensure we are able to continue operating as a going concern throughout 2022. A designated reserve of £70,000 was created to ‘forward fund’ projects where absolutely necessary ahead of final payment of invoices by donors. Restricted reserves at the end of 2021 were £279,300.
## **Reserves policy**
Action on Poverty’s stated policy is to maintain a level of unrestricted reserves equivalent to 6-12 months’ running costs. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.
13
## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **Investment policy**
The trustees have the power to invest in such assets as they see fit but to date surplus unrestricted funds are held on low risk deposit in order to ensure ready availability.
## **Risk management**
Action on Poverty takes very seriously the management of risk to which the charity is exposed particularly cash flow, recruitment, safeguarding and safety and security of staff travelling overseas. The trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to those risks.
The risk register is an agenda item at each trustees’ meeting and we have reviewed practices around managing the safety and security of staff when working overseas to ensure we are meeting reasonable duty of care requirements and have strengthened security risk management practices to mitigate exposure. Safeguarding policies and procedures have been brought into line with renewed donor practices and we are working with partners to improve policies and procedures. Partnership contracts are reviewed to bring them in line with donor requirements. Action on Poverty also has a child protection policy in place.
## **Our approach to fundraising**
Our supporters are key to everything we do. We are fully committed to being transparent and accountable about how our supporters’ donations are used. At Action on Poverty we are hugely grateful to all our donors and focus on building long-lasting relationships based on trust and respect. We follow the Fundraising Regulator’s Code of Fundraising Practice.
During the financial period ending December 2021 we did not use any professional fundraising organisations. Our fundraising is carried out by our small team of staff, with one person having fundraising and communications as their main role, supervised by the Chief Executive. This has meant we have full control of and confidence in our fundraising practices.
We did not receive any complaints about our fundraising activities during the 2021 financial year. We keep up to date with changes to regulation, respond to consultations on this and update processes and practice as necessary to comply. We welcome feedback from supporters and proactively use it to improve and enhance our fundraising campaigns.
## **Asset cover for funds**
The trustees are satisfied that the charitable company’s assets and cash balances attributable to each of its individual funds are available and adequate to fulfil its obligations in relation to those funds.
## **Trustees’ consideration of going concern basis of accounting**
The Covid-19 pandemic is likely to have a profound impact on the global economy and, together with the impact of the conflict in Ukraine, may in turn affect the charity. The trustees have considered the impact of this on the charity’s current and future financial position.
14
## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
The trustees appreciate that although some donors have cut their commitments, there was success at the completion of 2021 in securing grants from governments of the Netherlands and Belgium, and through a small appeal from Trusts and individuals. Given the environment, this is a good base from which we can move forward. There remain risks in government decisions to make cuts on development expenditure and the economic effect of the war in Ukraine through diversion of funds to military expenditure and higher fuel prices which may impact on our operations and projects. We remain concerned about the impact not only on livelihoods, but on all Sustainable Development Goals in both the short and the long term in all the countries in which we work. The greatest impact is likely to be on those who are already vulnerable and in the depth of poverty.
No material uncertainties, apart from the implications of Covid-19 and the conflict in Ukraine mentioned above, that may cast significant doubt about the ability of the company to continue as a going concern have been identified by the trustees. The trustees consider that the charity has sufficient unrestricted reserves and cash flow to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved for the following reasons:
- The charity holds unrestricted general reserves of £220,760 and designated reserves of £70,000; and
- The charity’s current funders are continuing to fund the programmes in hand.
The trustees therefore consider it appropriate to adopt the going concern basis for the preparation of the accounts as detailed in note 1(b) to the financial statements.
## **Statement of responsibilities of the trustees**
The trustees who are also directors of the charity for the purposes of company law are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Company law 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 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 Charities SORP;
- Make judgements and accounting estimates that are reasonable and prudent;
- State whether applicable UK accounting standards and statements of recommended practice have been followed subject to any material departures disclosed and explained in the financial statements; and
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees 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.
15
## **APT Action on Poverty**
## **Report of the trustees**
## **For the year ended 31 December 2021**
In so far as the trustees are aware:
- There is no relevant audit information of which the charitable company's auditors are unaware; and
- The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
## **Auditors**
Godfrey Wilson Limited were re-appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.
Approved by the trustees on 10 May 2022 and signed on their behalf by
## B S Capper
Brian S Capper BSc MA PhD Chair of Trustees
16
## **Independent auditors' report**
## **To the members of**
## **APT Action on Poverty**
## **Opinion**
We have audited the financial statements of APT Action on Poverty (the 'charity') for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, 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 Companies Act 2006.
## **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**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **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.
17
## **Independent auditors' report**
## **To the members of**
## **APT Action on Poverty**
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.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report (incorporating the directors’ report) have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us;
- the financial statements are not in agreement with the accounting records and returns;
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not obtained all the information and explanations necessary for the purposes of our audit.
## **Responsibilities of the trustees**
As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, 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 they 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.
18
## **Independent auditors' report**
## **To the members of**
## **APT Action on Poverty**
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:
(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.
(2) We reviewed the charity’s policies and procedures in relation to:
- Identifying, evaluating and complying with laws and regulations, and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risk of fraud, and whether they were aware of any actual, suspected or alleged fraud; and
- Designing and implementing internal controls to mitigate the risk of non-compliance with laws and regulations, including fraud.
(3) We inspected the minutes of trustee meetings.
(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.
(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.
(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.
(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:
- Testing the appropriateness of journal entries;
- Assessing judgements and accounting estimates for potential bias;
- Reviewing related party transactions; and
- Testing transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
19
## **Independent auditors' report**
## **To the members of**
## **APT Action on Poverty**
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charityʼs members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charityʼs members those matters we are required to state to them in an auditorʼs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.
## Alison Godfrey
Date: 12 May 2022
## **Alison Godfrey FCA (Senior Statutory Auditor)**
For and on behalf of:
## **GODFREY WILSON LIMITED**
Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD
20
## **APT Action on Poverty**
**Statement of financial activities** _(incorporating an income and expenditure account)_
## **For the year ended 31 December 2021**
|Note
**Income from:**
Donations and legacies
3
Charitable activities
4
Investments
Other income
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
**Total expenditure**
6
**Net income**
Transfers between funds
**Net movement in funds**
7
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|Restricted Unrestricted
£
£
50,136
23,991
814,204
52,437
-
86
-
-
864,340
76,514
30,763
29,416
704,438
19,155
735,201
48,571
129,139
27,943
10,111
(10,111)
139,250
17,832
140,050
272,928
279,300
290,760|**2021**
**Total**
**£**
**74,127**
**866,641**
**86**
**-**
**940,854**
**60,179**
**723,593**
**783,772**
**157,082**
**-**
**157,082**
**412,978**
**570,060**|2020
Total
£
143,143
697,648
319
160
841,270
34,385
772,473
806,858
34,412
-
34,412
378,566
412,978|
|---|---|---|---|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 16 to the accounts.
21
## **APT Action on Poverty**
## **Balance sheet**
## **As at 31 December 2021**
**----- Start of picture text -----**
2021 2020
Note £ £ £
Fixed assets
Tangible assets 11 682 1,406
Current assets
Debtors 12 51,482 848
Current asset investments 13 64,885 64,885
Cash at bank and in hand 468,658 357,589
585,025 423,322
Liabilities
Creditors: amounts falling due within 1 year 14 (15,647) (11,750)
Net current assets 569,378 411,572
Net assets 15 570,060 412,978
Funds 16
Restricted funds 279,300 140,050
Unrestricted funds
-
Designated funds 70,000
General funds 220,760 272,928
Total charity funds 570,060 412,978
**----- End of picture text -----**
These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.
Approved by the trustees on 10 May 2022 and signed on their behalf by
## B S Capper
Brian S Capper BSc MA PhD Chair of Trustees
22
## **APT Action on Poverty**
## **Statement of cash flows**
## **For the year ended 31 December 2021**
|**Cash used in operating activities:**
Net movement in funds
_Adjustments for:_
Depreciation charge
Dividends, interest and rents from investments
Decrease / (increase) in debtors
Increase / (decrease) in creditors
**Net cash provided by / (used in) operating activities**
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Purchase of tangible fixed assets
**Net cash provided by / (used in) investing activities**
**Increase / (decrease) in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
This is represented as:
Current asset investments
Cash at bank and in hand|**2021**
**£**
**157,082**
**724**
**(86)**
**(50,634)**
**3,897**
**110,983**
**86**
**-**
**86**
**111,069**
**422,474**
**533,543**
**64,885**
**468,658**
**533,543**|2020
£
34,412
515
(319)
4,545
(179)
38,974
319
(685)
(366)
38,608
383,866
422,474
64,885
357,589
422,474|
|---|---|---|
## **Analysis of changes in net debt**
The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.
23
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **1. Accounting policies**
## **a) Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
APT Action on Poverty meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
## **b) Going concern basis of accounting**
The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.
## **c) Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
## **d) Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.
## **e) Funds accounting**
Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.
## **f) Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.
24
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **1. Accounting policies (continued)**
## **f) Expenditure and irrecoverable VAT (continued)**
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **g) Allocation of support and governance costs**
Support and governance costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities on the following basis, which is an estimate of staff time spent on each activity:
||**2021**|2020|
|---|---|---|
|Raising funds|**27.6%**|21.0%|
|Charitable activities|**72.4%**|79.0%|
## **h) Tangible fixed assets**
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
Plant and machinery 20% straight line basis Fixtures, fittings and equipment 20 - 33% straight line basis
## **i) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **j) Current asset investments**
Current asset investments consist of cash held on short term deposit.
## **k) Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **l) Creditors**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **m) Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.
25
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **1. Accounting policies (continued)**
## **n) Pension costs**
The charity operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the statement of financial activities.
## **o) Foreign currency transactions**
Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end.
## **p) Accounting estimates and key judgements**
In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
There are no sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.
## **2. Prior period comparatives**
|**Income from:**
Donations and legacies
Charitable activities
Investments
Other income
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
**Total expenditure**
**Net income / (expenditure) and net**
**movement in funds**|Restricted
£
39,399
663,444
-
-
702,843
16,001
732,534
748,535
(45,692)|£
103,744
34,204
319
160
138,427
18,384
39,939
58,323
80,104
Unrestricted|**2020**
**Total**
**£**
**143,143**
**697,648**
**319**
**160**
**841,270**
**34,385**
**772,473**
**806,858**
**34,412**|
|---|---|---|---|
26
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **3. Income from donations and legacies**
|Trusts and foundations
Donations and other fundraising
Gift aid
**Prior year comparative**
Trusts and foundations
Legacies
Donations and other fundraising
**4. Income from charitable activities**
_Project grants from institutional donors:_
Norwegian Agency for Development Cooperation
Foreign, Commonwealth & Development Office
National Lottery Community Fund
Medicor Foundation
European Commission
Turing Foundation
Charles Hayward Foundation
The Allan & Nesta Ferguson Charitable Trust
_Consultancy fees_|Restricted
£
18,900
31,236
-
50,136
Restricted
£
35,900
-
3,499
39,399
Restricted
£
368,678
157,157
103,348
90,000
43,478
21,543
15,000
15,000
-
814,204|£
5,350
13,721
4,920
23,991
£
19,950
69,579
14,215
103,744
£
-
-
-
-
-
-
-
-
52,437
52,437
Unrestricted
Unrestricted
Unrestricted|**2021**
**Total**
**£**
**24,250**
**44,957**
**4,920**
**74,127**
**2020**
**Total**
**£**
**55,850**
**69,579**
**17,714**
**143,143**
**2021**
**Total**
**£**
**368,678**
**157,157**
**103,348**
**90,000**
**43,478**
**21,543**
**15,000**
**15,000**
**52,437**
**866,641**|
|---|---|---|---|
27
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **4. Income from charitable activities (continued)**
|**Prior year comparative**
_Project grants from institutional donors:_
Foreign, Commonwealth & Development Office
European Commission
The Dulverton Trust
Turing Foundation
Medicor Foundation
Marr Munning
The Haramead Trust
African Initiatives
_Consultancy fees_|Restricted
£
426,977
114,268
35,000
32,787
25,000
10,000
10,000
9,412
-
663,444|£
-
-
-
-
-
-
-
-
34,204
34,204
Unrestricted|2020
Total
£
426,977
114,268
35,000
32,787
25,000
10,000
10,000
9,412
34,204
697,648|
|---|---|---|---|
## **5. Government grants**
The charitable company receives government grants, defined as funding from the Foreign, Commonwealth & Development Office, European Commission, National Lottery Community Fund and the Norwegian Agency for Development Cooperation to fund charitable activities. The total value of such grants in the period ending 31 December 2021 was £672,661 (2020: £541,245). There are no unfulfilled conditions or contingencies attaching to these grants.
28
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **6. Total expenditure**
|Staff costs (note 9)
Other costs
Audit and accountancy fees
Depreciation
Grants payable to partners (note 8)
Publicity and fundraising costs
**Sub-total**
**Total expenditure**
Allocation of support and
governance costs|Raising funds
£
40,714
-
-
-
-
2,495
43,209
16,970
**60,179**|Charitable
activities
£
106,778
20,962
-
-
550,970
378
679,088
44,505
**723,593**|Support and
governance
costs
£
21,691
29,460
9,600
724
-
-
61,475
(61,475)
**-**|**2021 Total**
**£**
**169,183**
**50,422**
**9,600**
**724**
**550,970**
**2,873**
**783,772**
**-**
**783,772**|
|---|---|---|---|---|
Total governance costs were £9,600 (2020: £5,400).
|**Prior year comparative**
Staff costs (note 9)
Other costs
Audit and accountancy fees
Depreciation
Grants payable to partners (note 8)
Publicity and fundraising costs
**Sub-total**
**Total expenditure**
Allocation of support and
governance costs|Raising funds
£
23,165
-
-
-
-
400
23,565
10,820
**34,385**|Charitable
activities
£
87,089
5,658
-
-
638,564
483
731,794
40,679
**772,473**|Support and
governance
costs
£
24,427
21,157
5,400
515
-
-
51,499
(51,499)
**-**|**2020 Total**
**£**
**134,681**
**26,815**
**5,400**
**515**
**638,564**
**883**
**806,858**
**-**
**806,858**|
|---|---|---|---|---|
29
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
**7. Net movement in funds**
This is stated after charging:
|Depreciation
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
Statutory audit (including VAT)
Other services (grant audits)|**2021**
**£**
**724**
**Nil**
**Nil**
**5,640**
**3,960**|2020
£
515
Nil
Nil
5,400
-|
|---|---|---|
## **8. Grants payable**
|_Grants paid to partner organisations:_
Platform for Labour Action
Movement for Assistance and Promotion of Rural Communities
Volunteers' Effort for Development Concern
SITE Enterprise Promotion
Tusonge Community Development Organization
Community Action for Rural Development|**2021**
**£**
**212,273**
**73,215**
**71,523**
**69,704**
**64,033**
**60,222**
**550,970**|2020
£
-
338,231
109,121
4,353
-
186,859
638,564|
|---|---|---|
## **9. Staff costs and numbers** Staff costs were as follows:
|Salaries and wages
Social security costs
Pension costs|**2021**
**£**
**151,594**
**8,367**
**9,222**
**169,183**|2020
£
121,660
5,411
7,610
134,681|
|---|---|---|
No employee earned more than £60,000 during the year.
The key management personnel of the charitable company comprise the trustees and chief executive. The total employee benefits of the key management personnel were £56,348 (2020: £50,217). This is made up of salary costs of £43,677 (2020: £42,925) and employer NI and pension costs of £7,430 (2020: £7,292).
|Average head count|**2021**
**No.**
**6.17**|2020
No.
5.30|
|---|---|---|
30
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **10. Taxation**
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
## **11. Tangible fixed assets**
|**Cost**
At 1 January 2021
Additions in year
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
At 31 December 2021
**Net book value**
**At 31 December 2021**
At 31 December 2020
**12. Debtors**
Prepayments and accrued income
Other debtors
**13. Current asset investments**
Cash held on deposit|Plant and
machinery
£
1,299
-
1,299
1,299
-
1,299
**-**
-|Fixtures,
fittings and
equipment
£
6,228
-
6,228
4,822
724
5,546
**682**
1,406
**2021**
**£**
**51,482**
**-**
**51,482**
**2021**
**£**
**64,885**|**Total**
**£**
**7,527**
**-**
**7,527**
**6,121**
**724**
**6,845**
**682**
1,406
2020
£
-
848
848
2020
£
64,885|
|---|---|---|---|
31
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **14. Creditors : amounts due within 1 year**
|Accruals
Other taxation and social security
Other creditors
**15. Analysis of net assets between funds**
£
Tangible fixed assets
-
Net current assets
279,300
**Net assets at 31 December 2021**
**279,300**
**Prior year comparative**
£
Tangible fixed assets
-
Net current assets
140,050
**Net assets at 31 December 2020**
**140,050**
Restricted
funds
Restricted
funds|£
-
70,000
**70,000**
£
-
-
**-**
Designated
funds
Designated
funds|**2021**
**£**
**10,697**
**3,186**
**1,764**
**15,647**
General
funds
£
682
220,078
**220,760**
General
funds
£
1,406
271,522
**272,928**|2020
£
7,653
2,648
1,449
11,750
**Total**
**funds**
**£**
**682**
**569,378**
**570,060**
**Total**
**funds**
**£**
**1,406**
**411,572**
**412,978**|
|---|---|---|---|
32
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
|**16. Movements in funds**
**Restricted funds**
**Total restricted funds**
_Designated funds:_
Forward fund
_Total designated funds_
General funds
**Total unrestricted funds**
**Total funds**
_Sierra Leone_: Enhancing
CSO capacity
**Unrestricted funds**
_Uganda_: Eradication of child
labour
_Kenya and Uganda_:
Strengthening the
implementation of the CRPD
(Convention on the Rights of
Persons with Disabilities)
with Women with Disabilities
Country-specific funding
_Sierra Leone_: Livelihoods
and food security for
vulnerable people
_Kenya_: Camel milk project
_Tanzania_: Disability inclusive
VICOBA
_Uganda_: Skilling youth for
sustainable livelihoods in
refugee hosting communities
_Sierra Leone_: Empowering
local communities in
Pujehun District
_Sierra Leone:_Women make
change|At 1
January
2021
£
11,798
54,988
-
(811)
29,414
4,234
35,000
-
-
5,427
140,050
-
-
272,928
272,928
412,978
|Income
£
68,316
43,477
207
90,342
33,258
103,348
120,000
369,878
35,514
-
864,340
-
-
76,514
76,514
940,854|£
(90,225)
(98,465)
-
(89,531)
(33,872)
(95,305)
(89,847)
(237,910)
(46)
-
(735,201)
-
-
(48,571)
(48,571)
(783,772)
Expenditure|£
10,111
-
-
-
-
-
-
-
-
-
10,111
70,000
70,000
(80,111)
(10,111)
-
Transfers
between
funds|**£**
**-**
**-**
**207**
**-**
**28,800**
**12,277**
**65,153**
**131,968**
**35,468**
**5,427**
**279,300**
**70,000**
**70,000**
**220,760**
**290,760**
**570,060**
**At 31**
**December**
**2021**|
|---|---|---|---|---|---|
33
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **16. Movements in funds (continued) Purposes of restricted funds**
_Sierra Leone:_ Livelihoods Reducing the poverty and malnutrition of people in rural and food security for households through community organisations. vulnerable people
_Sierra Leone:_ Enhancing Strengthening 45 civil society organisations to empower women, CSO capacity and provide gender, literacy, business skills and apprenticeship training.
_Kenya and Uganda_ : Supporting partner SITE in helping women with disabilities in Strengthening the Kenya and Uganda to understand and access their rights and to implementation of the CRPD improve their inclusion in livelihoods. (Convention on the Rights of Persons with Disabilities) with Women with Disabilities
_Uganda_ : Skilling youth for Skills training in market relevant technical skills through sustainable livelihoods in apprenticeships for 800 refugee and host community youth, refugee hosting communities improving their engagement in public and private sectors.
_Sierra Leone_ : Empowering Building the capacity of community structures, including 19 local communities in community based organisations to provide livelihoods services, Pujehun District rights awareness and income generation and improved governance. _Tanzania_ : Disability Establishing community banking groups and providing financial inclusive VICOBA management, business and vocational training to vulnerable women and people living with disabilities.
_Kenya_ : Camel milk project Providing skills and hygiene training in new areas throughout the entire Camel Milk supply chain to improve productivity and produce standards.
_Uganda_ : Eradication of Enabling over 12,000 families to be more resilient to child labour, child labour improving incomes and access to skills, and establishing a childfree zone in UMA Industrial Park.
_Sierra Leone:_ Women Supporting the leadership of marginalised women including training make change on vegetable growing, soap production, functional literacy and community seed banks.
Country-specific funding Funds raised to provide help in Tanzania, Sri Lanka, Uganda and Sierra Leone on future project opportunities.
**Purpose of designated funds**
Forward fund
To forward fund projects when necessary and carry expenditure in advance of receipt of donation income.
34
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **16. Movement in funds (continued)**
## **Transfers between funds**
Transfers between funds represent the use of general funds to complete the project at the conclusion of work, and the creation of a new designated reserve.
## **Prior year comparative**
|**Restricted funds**
**Total restricted funds**
General funds
**Total unrestricted funds**
**Total funds**
Country-specific funding
_Tanzania :_Disability
inclusive VICOBA
_Sierra Leone_: Enhancing
CSO capacity
_Kenya and Uganda_:
Strengthening the
implementation of the CRPD
(Convention on the Rights of
Persons with Disabilities)
with Women with Disabilities
_Sierra Leone_: Empowering
local communities in
Pujehun District
_Kenya :_Camel milk project
_Sierra Leone_: Vocational
skills development and
income generation for
disadvantaged young people
_Sierra Leone_: Livelihoods
and food security for
vulnerable people
**Unrestricted funds**
_Uganda_: Skilling youth for
sustainable livelihoods in
refugee hosting communities|At 1
January
2020
£
3,913
39,638
125,168
1,000
963
1,000
-
-
14,060
185,742
192,824
192,824
378,566
|Income
£
-
321,419
143,769
-
135,558
57,685
9,412
35,000
-
702,843
138,427
138,427
841,270|£
(3,913)
(349,259)
(213,949)
(1,000)
(137,332)
(29,271)
(5,178)
-
(8,633)
(748,535)
(58,323)
(58,323)
(806,858)
Expenditure|£
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers
between
funds|**£**
**-**
**11,798**
**54,988**
**-**
**(811)**
**29,414**
**4,234**
**35,000**
**5,427**
**140,050**
**272,928**
**272,928**
**412,978**
**At 31**
**December**
**2020**|
|---|---|---|---|---|---|
35
## **APT Action on Poverty**
## **Notes to the financial statements**
## **For the year ended 31 December 2021**
## **17. Operating lease commitments**
The charity had operating leases at the year end with total future minimum lease payments as follows:
|Amount falling due:
Within 1 year
Within 1 - 5 years|**2021**
**£**
**702**
**-**
**702**|2020
£
936
702
1,638|
|---|---|---|
The charity's rental lease is on a short term notice period; there is no lease commitment.
## **18. Related party transactions**
There are no related party transactions to disclose in the current or previous reporting period.
36