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2020-12-31-accounts

ADD INTERNATIONAL ANNUAL REPORT & ACCOUNTS.

31 DECEMBER 2020.

ADD International is registered as Action on Disability and Development

Company Limited by Guarantee

Registered in England and Wales. Company Number: 2033925. Charity Commission Number 294860.

Registered Address: The Old Church School, Butts Hill, Frome, Somerset, BA11 1HR, UK.

info@add.org.uk www.addinternational.org

CONTENTS.

References and Administrative Details 3
From the Chair and CEO 5
Trustees’ Report 8
Structure, Governance and Management 8
Purpose 10
Activities, Achievement and Performance 11
Future Plans for 2021 14
Financial Review 16
Statement of trustees’ Responsibilities 23
Independent Auditor’s Report 25
Statement of Financial Activities year to 31 December 2020 31
Balance Sheet 32
Statement of Cash Flows 33
Principal Accounting Policies 35
Notes to the Financial Statements 40

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REFERENCES AND ADMINISTRATIVE DETAILS.

Charity number: 294860 Company number: 2033925 Registered Office: The Old Church School, Butts Hill, Frome, Somerset, BA11 1HR, UK

TRUSTEES.

The directors of the charitable company are its trustees for the purpose of charity law.

The trustees and officers serving during the year and since the year end were as follows:

A K Dube – Chair of trustees

Deborah Botwood Smith

Kieran Breen

Sarah Dyer (resigned January 2021)

Jane Hatton (appointed 26 January 2021) Louise Catherine James

Matthew David Jackson

Ken Jones

Janice May Knight

Sally Neville (resigned 30 November 2020)

Jillian Emma Popkins David Ruebain (resigned 13 December 2020)

Liz Sayce (appointed 26 January 2021)

Phillimon Simwaba

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SENIOR MANAGEMENT TEAM.

Jimmy Innes Chief Executive Officer (resigned 30 June 2021) Tamsin Langford Director of International Development Clare McKeown Director of Partnerships and Fundraising (resigned 19 Match 2020 (not replaced)) Adil Shah Director of Finance and Operations (resigned 22 February 2021) Andrew Neeve Director of Finance and Operations (appointed 22 February 2021) Mosharraf Hossain Director of Policy & Influencing (resigned 31 May 2021)

COUNTRY DIRECTORS.

Shafiqul Islam

Shafiqul Islam ADD Bangladesh Rose Tesha ADD Tanzania Siham Bolad ADD Sudan Borithy Lun ADD Cambodia Thomas Kyokuhaire ADD Uganda

BANKERS.

AUDITOR.

SOLICITORS.

Lloyds

Harris & Harris

Lloyds Buzzacott LLP Harris & Harris City Office 130 Wood Street 11 Stony Street PO Box 72 Bailey Drive London Frome Gillingham Kent EC2V 6DL BA11 1BU ME8 0LS

NatWest

4 Market Place Frome Somerset BA11 1AE

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FROM THE CHAIR AND CEO.

A word from Jimmy Innes, CEO:

It is difficult to find the words to summarise the year that was 2020. Unprecedented: yes. Challenging: yes. Exacting: yes. But also a very successful year for ADD – programmatically and financially. A year in which we were able to really further our work towards our mission of ‘achieving positive and lasting change in the lives of persons with disabilities, especially those living in poverty’, in Africa and Asia. And a year in which we strengthened our financial position, with a healthy annual surplus against the odds.

COVID-19 dramatically and significantly changed the course of the year we all thought we were going to have, as our staff and partners around the world quickly moved to a home-working, homeschooling, socially distanced and restricted reality. When the pandemic was first declared, we moved quickly to focus all our work and attention on supporting a Disability Inclusive COVID-19 Response, based on the clear, obvious and unacceptable premise that persons with disabilities are disproportionately affected by COVID-19, but disproportionately excluded from the responses to it. We doubled down on our mission, doing all we could to address this situation in our country programmes.

Now, a year on, I am immensely proud of all we achieved in 2020. Our teams around the world pulled together with renewed purpose and solidarity, refocusing existing work onto COVID-19, starting critical new interventions, supporting our partner Organisations of Persons with Disabilities (OPDs), and lobbying decision makers at all levels so they could also do more.

Persons with disabilities around the world continue to be among the most affected by the acute health, social and economic impacts of COVID-19, and still remain among the furthest left behind in the global effort to ‘build back better’. But, of course, there is no building back better unless and until we build back better for all. The transformative equality that we hope to see emerge from these pandemic times remains just that: a hope that is yet to be realised. There is still so much more to do.

Meanwhile, for organisations like ADD, and our OPD partners, the pandemic continues to threaten the core of our viability, sustainability and, indeed, existence. Economic recession, budget cuts, job losses, scale-backs all threaten the ability of civil society to play its critical part in building back better. Civil society enters 2021 more concerned than ever before about its future ability to function and more concerned about its ability to realise the transformative equality that we all hope to see.

In all of this context, in 2020 we finalised ADD’s new five-year global strategy for 2021-2025 giving us the roadmap to guide us through the years ahead of us and focus our work and attention on where it is needed most. In practise this means; strengthening the ways we work as an ally to disability movements around the world; amplifying the impact of our programmatic work so we can demonstrate and expand the value of our approach; and, strengthening ADD as a sustainable organisation that is fit for purpose to achieve our mission in a changing world.

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For me personally, I am so pleased that we have defined our clear future strategic focus, and so proud of all we achieved in the most difficult of years for the organisation. But I am also very sad, having recently taken the decision to step down as ADD’s CEO. It was not an easy decision for me to take, but I believe it is the right time for me to take it. I have immensely enjoyed and been consistently nourished throughout my time with ADD, and I will greatly miss all the people who work for, or who are associated with this spectacular organisation.

Our trustees have been fully engaged in my decision and have a clear vision for taking the organisation forwards from here – continuing to forge a better, more sustainable and equitable role for ADD in the global movement for disability rights and equality into the future. I have every confidence that ADD will continue to go from strength to strength in its fight and push for disability rights and inclusion in the world.

The world has been rocked by COVID-19, in ways that will continue to have adverse impact for years to come. In this context, ADD will continue to do all it can to fight for disability rights and inclusion, standing in solidarity with persons with disabilities and their representative organisations countries around the world; working together to fulfil our hopes of equal rights and opportunity for all. It is the best thing we can do.

Jimmy Innes, Chief Executive, May 2021

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A word from AK Dube, Chair:

ADD International has a very special place in my heart. ADD supported me as a beneficiary in the 1990s and now today, I have been able to support this incredible organisation as ADD’s proud Chair.

I was born in Zimbabwe, and when I was two years old, I contracted polio and measles which meant the use of my right hand and left leg were impaired. I lived with my father who was a solider and although he was strict, he made sure I could look after myself – he did not treat me like a child with disabilities.

As it was just the two of us, I ran the house; collecting firewood, cooking and washing – skills that made me independent. The people in our local village did not approve of this and thought I should be sent to an institution for the disabled, but my father steadfastly refused and in many ways was ahead of his time.

I was the only disabled child at my boarding school, and I worked hard at my studies. Afterwards, I applied for a job in the Ministry of Education, it was a totally new experience for me and started my career in policy changemaking.

I was lucky to be there when ADD International was founded, in a tiny meeting room in Bulawayo Zimabwe’s second largest city, together, with Chris Underhill ADD’s founder, and other visionary leaders. They wanted to change the way governments and organisations framed disability as a medical problem requiring ‘treatment’ and to focus on creating equality – a basic human right.

It has been an honour to represent ADD International as a member, and Chair of the board of Trustees for over four years. I’ve worked with lots of organisations and governments and ADD is unique because we stick to our mission. We are clear about our objectives and uphold our principals, in the good and the bad times.

The situation for disabled people today still shows a continued imbalance everywhere, from representation to funding. COVID-19 clearly has had a huge negative impact, not only for so many lives but also many governments are now looking inward. They don’t want to spend money internationally, it’s a challenge we need to face and overcome.

We need to continue to cooperate, to take action on real, lifechanging policies not just words on paper and put equality firmly on the agenda.

Of course, we wouldn’t be here today without our supporters, allies and friends. I would like to say thank you to the families supporting us, thank you for standing with ADD during these difficult times. We need you now more than we’ve ever needed you. We know you’re going through your own difficulties, this last year has not been easy for anyone, so our thoughts and prayers are with you too. We hope your loved ones are safe. We hope you find it in your hearts to continue to support us.

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AK Dube, Chair of trustees, June 2021

TRUSTEES REPORT.

REPORT OF THE TRUSTEES FOR THE YEAR ENDING 31 DECEMBER 2020.

The trustees are pleased to present their annual report together with the consolidated financial statements of the charitable company for the year ending 31 December 2020, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. The financial statements 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).

STRUCTURE, GOVERNANCE AND MANAGEMENT.

ADD was established as an international development agency in 1985, incorporated as a company limited by guarantee on 3 July 1986, and registered as a charitable company on 18 November 1986. ADD is governed by its memorandum and articles of association.

HOW TRUSTEES ARE RECRUITED AND APPOINTED.

ADD’s trustees are recruited internationally to reflect the diversity of its stakeholders and we aim to have approximately 50% of our trustees being women and 50% people with disabilities. Of the 10 trustees serving at the end of 2020, 5 were women and 2 were disabled people. (2 additional trustees were appointed in January 2021 who identify as disabled).

Trustees are recruited and appointed through an open process. If a specific need for skills cannot be resolved through this process, individuals may be co-opted to the board.

POLICIES AND PROCEDURES FOR INDUCTION AND TRAINING OF TRUSTEES.

The role of trustees is set out in the Trustees’ Manual which is given to all trustees and updated periodically. All trustees receive a day’s induction with members of ADD staff before taking up their position and are given the opportunity of external training courses in governance. The board follows a trustee and board annual performance appraisal process.

ORGANISATIONAL STRUCTURE AND MANAGEMENT.

There are normally two face-to-face full trustee meetings per year (although like many organisations, the COVID-19 pandemic has meant that meetings have all been held virtually). During 2020, ADD’s four sub- committees (Funding and Partnerships, Policy and Influencing, International Development and Finance, Audit and HR) met quarterly. They oversee and take responsibility for the agreement of ADD’s strategic framework, monitoring progress against plans, and operational and financial targets.

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STRUCTURE, GOVERNANCE AND MANAGEMENT. (continued)

ORGANISATIONAL STRUCTURE AND MANAGEMENT. (continued)

Sub-committees are made up of trustees with specific skills who report routinely to the full board with their findings and recommendations. A further sub-committee, consisting of the chairs of the sub-committees, the chair of trustees and the vice chair(s) of trustees is now a formal group whose role is to support the CEO.

From 2021, a new governance structure is being introduced whereby the sub-committees are being abolished and replaced by more frequent trustee meetings.

A Chief Executive is appointed by the trustees to manage the day-to-day operations of the charitable company. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance, HR, programme implementation, fundraising and performance related activity.

The trustees regularly review the ADD risk policy, and map and assess it to ensure all reasonable steps have been taken to eliminate, minimise or mitigate risk as appropriate.

KEY MANAGEMENT PERSONNEL.

All trustees give their time freely and no trustee received remuneration in the year.

The Senior Management team is made up of the Chief Executive and four departmental heads including Director of International Development, Director of Fundraising and Partnerships, Director of Global Policy and Influencing and Director of Finance and Operations. Names of the SMT members can be found on page 4 of this report.

PAY POLICY FOR SENIOR STAFF.

The pay of senior staff is reviewed annually and normally increased in accordance with average earnings. The responsibility of setting and agreeing remunerations is delegated to the Finance, Audit and HR subcommittee by the Board. The organisation conducts a benchmarking process each year to ensure that staff remuneration is in accordance with market rates in order to retain the best talent. The benchmarking process is undertaken by a senior HR consultant and led by the Director of Finance and Operations. The Chief Executive recommends the remunerations for the four SMT members to Finance, Audit and HR subcommittee without any of them being present, and the Director of Finance and Operations recommends the Chief Executive’s remuneration to the Finance, Audit and HR Subcommittee without his presence.

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ABOUT ADD INTERNATIONAL.

PURPOSE.

The registered purpose of ADD International is;

Our vision is a world where all disabled people are free from discrimination and oppression, enjoying equality within an inclusive society.

Our mission is to achieve positive and lasting change in the lives of disabled people, especially those living in poverty.

We do this through developing capacity, influencing and working in partnership to ensure that:

ADD International plays a distinctive role focusing on all types of disabilities from a rights perspective and works specifically in developing countries. Not only are we an ally that works alongside disability movements, we also work within a global network of international development organisations promoting and advocating for the inclusion of disabled people.

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ACTIVITIES, ACHIEVEMENT AND PERFORMANCE.

ADD International. Independence, equality and opportunity for disabled people living in

poverty.

WHY WE ’ RE HERE.

ADD International is an ally to the global disability movement. We partner with organisations of disability activists in Africa and Asia to help them access the tools, resources and support they need to build powerful movements for change.

Disability has its own stigma present in every society but in parts of Africa and Asia discrimination towards disabled people can be particularly oppressive. Disabled people are often considered weak, worthless and in some cases, subhuman. For disabled people to have a fighting chance at living their best life, the stigma and discrimination that oppresses them must be confronted and uprooted.

Shifting deeply entrenched social stigma does not happen overnight. It is lengthy and relentless work which requires a strong team of courageous people with a bold vision for change. That’s why the movement for disability equality, like all significant movements for social progress, is powered by the passion, vision and courage of activists – ordinary people taking action to create social change.

Often disabled themselves, disability activists have the passion to fight for change. It’s their lives, and their communities, at stake. What they often need is support in how to run and build their organisations. That’s where ADD International steps in. We help disability activists access the tools, skills and resources they need to turn their vision into powerful organisations that lead powerful movements for change.

WHAT ’ S THE PROBLEM?

There’s a global disability crisis. One billion people worldwide are disabled. 80% live in the developing world.

Disabled people living in poverty are among the most marginalised and stigmatised people on earth. Often, they have no access to basic human rights, education, or the opportunity to earn a living. The injustice disabled people face often includes:

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ACTIVITIES, ACHIEVEMENT AND PERFORMANCE. (continued)

WHAT WE DO.

Right now, organisations of disability activists are working to fight discrimination and ensure every disabled person gets a fighting chance at living their best life. We are an ally to their powerful movements for change.

1. We empower disability activists.

We provide disability activists with the tools, resources and support they need to build strong and sustainable organisations that can have an ever-increasing impact and help disabled people achieve their full potential.

2. We strengthen the disability movement in Africa and Asia.

We help organisations of disability activists connect with each other to build wider movements for change and work with them to promote the rights of disabled people.

3. We influence for policy change.

We work with organisations of disability activists to influence governments, international development organisations and the private sector to design policies and services on a local and global scale which consider disabled people and offer inclusive solutions.

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LOOKING BACK AT 2020.

THE UNPRECEDENTED CHALLENGES OF THE COVID-19 PANDEMIC.

We started 2020 full of expectation to build on our successes of 2019, furthering our programmes of work, and continuing to strengthen the disability movement in the countries where we work with new projects and partnerships. Our programmes in the countries where ADD works were delivering excellent results in areas including; inclusive livelihoods and economic empowerment for persons with disabilities (Uganda and Bangladesh); ensuring inclusive pre-primary education for children with disabilities (Sudan and Tanzania); and tackling gender and disability-based violence (Cambodia). We were gearing up to advocate on the global stage, as the world prepared to mark the 25th anniversary of the Beijing Declaration, which was a landmark moment for advancing gender equality; and we were developing an advocacy platform that ensured that women and girls with disabilities are front and centre in the global gender equality movement.

We were also well under way with the development of our new Global Strategy for 2020-2025 and getting ready to launch it in mid-2020.

But our plans and expectations were entirely rocked and suddenly re-directed in March 2020, when the COVID-19 pandemic was declared.

ADD swiftly moved into emergency response mode, focusing on two key objectives: doing everything in our power to support persons with disabilities in Africa and Asia in the COVID-19 response; and protecting ADD’s business continuity as we moved into a suddenly much more uncertain operating context.

We closed all of our offices around the world and moved swiftly into home and virtual working – which has been the theme for many of ADD’s staff ever since. We put in place new and extra staff support measures, to do all we could to be a flexible, responsible and caring employer for a global staff team who were dealing with a wealth of new personal and professional challenges. We immediately began discussions with our existing donors, looking at how we could re-focus our work to support the COVID-19 response. We set-up a public fundraising campaign in the UK to raise vital funds to support the response. And we entered into multiple conversations with potential new donors and partner organisations.

SUPPORTING THE DISABILITY INCLUSIVE COVID-19 RESPONSE

A cornerstone of our work in 2020 was our programmatic response plan to COVID-19. In the first few weeks after the pandemic was declared we quickly pooled our thoughts and perspectives from across the world of ADD and defined what we called our organisational offer to support the disability inclusive COVID-19 response.

We recognised the simple fact that persons with disabilities in Africa and Asia face disproportionate risks and discriminatory challenges in the face of COVID-19, and that there are significant barriers to ensuring that persons with disabilities have access to appropriate services and support.

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LOOKING BACK AT 2020. (continued)

SUPPORTING THE DISABILITY INCLUSIVE COVID-19 RESPONSE (continued)

Our plan was a statement of solidarity with the international disability movement and all partners in the face of such unparalleled crisis and challenge. And it was a statement that kept our mission at the forefront of our work. In practical terms, our organisational offer focused all our work and attention on four key themes, which formed the basis of our work in 2020:

  1. Ensuring access to accurate and accessible information about COVID-19 for persons with disabilities.

  2. Access to social support systems and essential supplies for persons with disabilities.

  3. Advocating for access to medical support for persons with disabilities.

  4. Access to long-term economic support and inclusive livelihoods for persons with disabilities.

THE GLOBAL STRATEGIC PLAN (GSP) 2021-2025

As we moved through 2020, we picked up again on developing and finalising our new five-year organisational strategy for 2021-2025, which was completed at the end of the year. The new strategy articulates our vision and strategic priorities for the organisation, with a view to ensuring that ADD remains fit for purpose long into the future. The strategy builds on the three core components of our identity – being an effective ally to the disability movement, delivering effective programmes, and running an effective organisation.

OUR PLANS FOR 2021.

We know full well that the pandemic will continue to impact the organisation and our work in 2021 and beyond, and much of our planning continues to adapt and address this new normal in which we all find ourselves. We are experiencing multiple waves at different times in different countries. Our staff and partners continue to be governed by social distancing measures and limitations on movements and activities. Our offices around the world are still a long way from returning to prepandemic functionality. In the face of such ongoing uncertainty, our planning will must needs continue to be adaptive and flexible.

Meanwhile, we continue to mitigate against the financial and funding challenges that face the organisation. In 2020, the UK Government disbanded its Department for International Development, created the new Foreign and Commonwealth Development Office, and have already effected two years of significant, deep and fact budget cuts on its aid spending, whilst also reducing the amount of aid that the UK commits to international development. ADD is, and has always been, a recipient of UK aid funding, and these budget cuts have significant implication on the organisation. In 2021 we are embarking on new fundraising strategies to help us mitigate against these cuts now and into the future.

With our new five-year strategy in place, we are also beginning the process of embedding it throughout the organisation, with country-specific and departmental plans being developed that are aligned to the global strategy, and which will help ensure that its objectives are met.

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OUR PLANS FOR 2021. (continued)

REMEMBERING OUR DEAR DEPARTED COLLEAGUES

In November 2020, our dear Head of Programmes in ADD Bangladesh, Subodh Das, died as a result of COVID-19 complications.

In May 2021, our dear Safeguarding and Gender Adviser in ADD UK, Sylvie Cordier, died after a sudden and unexpected illness.

Both Subodh and Sylvie were bedrocks of our organisation, and significant parts of our organisational make-up, culture and identity. All of us in the global ADD family miss them dearly, and we will do all we can to uphold their commitment and unrelenting drive for global disability rights and inclusion. They will never be forgotten.

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FINANCIAL REVIEW.

INCOME.

ADD International’s total income in 2020 was just under £3.00m, of which £0.68m (2019: £0.67m) was unrestricted and £2.32m (2019: £2.35m) was restricted. The total income in 2020 was £0.02m (0.01%) lower than the previous year. Being able to maintain our income level, when comparing against last year was due to incredible hard work by all in the organisation, particularly the Country teams in keeping projects running in a very difficult year, with the COVID-19 pandemic.

The total unrestricted income in 2020 virtually remained the same, only reducing by £0.01m (0.02%) which was enabled by the Public Fundraising team being able to improve cash donations through appeals and their efforts with Trusts to offset some of the usual attrition of regular donors, which is still around 6% per annum.

We are deeply grateful to all those who contributed and maintained their support to ADD International in 2020, especially in such trying and uncertain times and hope you will feel able to continue that support in the future, as governments refocus their priorities.

We will continue with the strategy of diversification of income in 2021 with a focus on raising match funding through institutional donors and foundations. We are anticipating this strategy will continue to stabilise further our unrestricted income in 2021.

Total Income £3.00m

----- Start of picture text -----
2% 0%
24% Regular Donations £0.623m
Non - Regular Donations £0.055m
2% Institutional Funding - Restricted £1.884m
Institutional Funding - Unrestricted £0.050m
72%
Exchange Gain/Bank Interest/Other Income £0.006m
----- End of picture text -----

EXPENDITURE.

We were able to continue our support to disability movements, although the total volume, unsurprisingly, fell a little from previous years, through the impact of COVID-19 impact on our programming activity, with lockdowns being seen all over the world. It is a true testament to the hard work of our Country teams and Partners that this did not fall further, as they adapted to the new ‘virtual’ situation and the roll out of emergency activities to help people stay safe in the pandemic. In 2020, ADD International’s total expenditure was £2.91m (2019: £3.06m), down by £0.15m (5.0%) from 2019.

This decrease in expenditure came from a very small fall in restricted expenditure together with unrestricted expenditure falling by £0.14m. The decrease in unrestricted expenses also reflects the strategy to balance income and expenditure funds within the unrestricted fund and improve the recovery of our project expenses from restricted income.

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FINANCIAL REVIEW. (continued)

EXPENDITURE. (continued)

During the year, ADD International spent £0.17m to generate £0.65m through donations and legacies. This equates to £3.75 (£3.34, 2019) raised for every £1 spent which is consistent with the sectoral standards.

FINANCIAL POSITION.

The end-year balance of unrestricted funds increased by £0.147m to £0.608m. This was mainly due to being able to fund more project expenses through restricted funds and keeping very tight control on the use of unrestricted spending. This year we were able to minimise exchange losses to £0.013m.

The end-year restricted fund balance closed at £0.56m, down by £0.058m, which mirrors our commitment to deliver projects in a timely manner and reflects the success in landing new restricted funding streams. Liquidity remains strong with net current assets slightly higher than last year at £1.3m.

FINANCIAL PLANS FOR 2021.

We are embarking on implementing our new Global Strategy and Business plan (2020-2025) to guide our work and ensure that it remains relevant and effective in achieving our organisational mission within shifting global and local contexts. With work now underway on Phase 2 where the organisation’s business plan will be developed to include the strategic pledge of shifting the centre of the organisation to the Global South. We originally expected this piece of work to be completed by May 2020, but the timeframe was affected by the global COVID-19 pandemic and lockdown in all our country programmes, so this work will continue during 2021 as the COVID-19 pandemic allows.

With the advent of Brexit, which significantly reduces our ability to access EU funds, and subsequent political decisions on the funding of UK Overseas Development Aid (ODA), reducing it from 0.7% of GDP to 0.5%, this is going to have a significant effect on us in the short to medium term, as funding is significantly reduced from the new merged FCDO (originally DiFD and the FO). At the time of writing this report, the full depth of cuts is still not known, however we have already had some projects cancelled or instructed to close within 90 days, and others having their funding cut by 70%. During 2020 we started to plan for this eventuality and the surplus generated in 2020 plus the contingency that has been built into 2021 planning, will help see us through this difficult period. In 2020 our FCDO funding had risen to almost 50% of our restricted income from approximately 25% in 2019 due to disability becoming a more mainstreaming priority of FCDO and creating opportunities.

Restricted fundraising continues constantly, and we are looking to diversify our funding portfolio as wide as possible to ensure we have the level of funding needed to support us to be able deliver our Global Strategic Plan. Consequently, as the funding landscape changes, we are also working more in consortia and across multi-country projects now as well, as donors adapt the way they work to create impact and scale. Just as an example, in the past month we have made applications to USAID for a 5-year project in Bangladesh worth $1m and the Government of Finland, which will be a consortia project and multi country for approx. 2m euro over 3 years.

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FINANCIAL REVIEW. (continued)

FINANCIAL PLANS FOR 2021. (continued)

For our unrestricted fundraising, the focus this year will be on trying to reduce the attrition rate of regular giving by creating new tools to persuade donors not to cancel, and also focus on our annual appeals together with Trusts and Corporate givers to increase new cash income.

During 2021 we will reforecast the budget each quarter to ensure we stay focussed on the position as it changes to ensure our viability and balance the spending. Management accounts produced up to March 2021 show that we are on target with our income and spending in this first quarter.

The Senior Leadership Team has continued with ADD’s approach to provide support to persons with disabilities during the lockdown and in the response to COVID-19, as the pandemic has hit the most marginalised people the hardest. The ADD approach was shared widely with donors and stakeholders which has resulted in current activities being adapted and new funding to help address the disabilityinclusive COVID-19 response situation, and to an extent this has also helped us to maintain income levels.

We are continuing to focus on developing effective systems and compliance in 2021 to ensure every £ is effective and well spent together with value for money. We started to develop the ability to initiate a peer-to-peer internal audit function towards the end of 2019. The first pilot internal audit was undertaken in Uganda in July 2020 which was led by our Regional Head of Finance also based in Uganda, as travel this year has largely not been possible. The results were promising, and we are now able to build on the learning that gave us and to further develop the tools and principles for future use. In addition, we have improved our internal processes and tools to enable us to monitor and focus on our Fundraising work and to be able to forecast likely outcomes for restricted income more accurately.

RESERVES POLICY.

Unrestricted reserves are defined as general funds and are available to enable ADD International to meet its objectives.

The trustees reviewed the reserves policy in November 2016 at the Board meeting and agreed to continue holding reserves at least at a level sufficient to cover all liabilities in the event of a sudden and complete organisational shut down, this amount is currently calculated to be £0.280m, which is also sufficient to cover unrestricted expenditure commitments for approximately five months at the current spending levels. Our ‘free’ reserves are currently standing at £0.603m, which meets this requirement adequately.

The trustees agreed to review the reserves policy in 2020, this work will be completed in 2021, to also allow for the move by some donors to pay in arrears for the work undertaken, and by results, instead of the traditional payment in advance model.

GOING CONCERN .

The trustees have assessed whether the use of going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

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FINANCIAL REVIEW. (continued)

GOING CONCERN. (continued)

Whilst the degree of uncertainties described in this going concern assessment warrants transparent disclosure, particularly around the cuts now being imposed by FCDO, which will have a significant impact on our funding stream in the short to medium term, the trustees have concluded that it does not constitute a material uncertainty related to going concern.

The trustees’ going concern assessment is based on the assumption that funders continue to have confidence in ADD as key player on the disability agenda and in delivering activities through the COVID-19 pandemic. We adapted activities to respond to COVID-19 and arrangements are made to safeguard our staff and beneficiaries from any potential harm.

Therefore, the financial statements for the year ended 31 December 2020, should be prepared on the going concern basis.

INVESTMENT POLICY.

The trustees, having regard to the liquidity requirements of the organisation, have kept available funds in an interest-bearing deposit account and seek to achieve a rate on deposit which matches or exceeds inflation as measured by the retail prices index. Due to wider economic circumstances, deposit rates have been depressed and so this aim was not achieved in the year. The invested funds held on deposit achieved an average rate of 0.48% against the retail price index of 1.5% for the year.

RISK MANAGEMENT.

The board of trustees is responsible for the management of risks and is assisted by the SMT in the implementation. A risk register is maintained and used to examine and monitor risk to the organisation. The Finance, Audit and HR Subcommittee assess risk on quarterly basis while risk management priorities and systems are assessed and agreed at the board meetings.

ADD evaluates and mitigates risk over six main categories, these are:

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RISK MANAGEMENT. (continued)

The key risk to ADD International continues to be the reduction in unrestricted funding. Also, loss of key funding which could create a major disruption and business continuity issues. The trustees and management have identified the following risks in 2020-21 risk register, along with actions to mitigate them:

Attrition of public fundraising income

Public donations are falling each year due to the difficult environment to recruit new donors. Currently, the unrestricted funding provides flexibility to cover some costs of certain essential functions which would be difficult to fund otherwise.

While we recognize that the public fundraising landscape is unfavourable at present, efforts are being made to run donor retention and acquisition programmes and encourage existing donors to increase giving. We continue to look at ways to increase our income from Public Fundraising by investing and testing innovative approaches including targeted campaigns which will help recruit new donors.

Our reliance on restricted funds has increased in recent years resulting in an increased need to be able to clearly demonstrate the impact of our work for each project.

While there continues to be an uphill struggle against the backdrop of staff shortages, and danger of quarterly programme reviews not taking place due to lockdown, this risk has been mitigated by investing in strong Monitoring, Evaluation and Learning (“MEL”) experts at the UK level, and in country-based MEL officers focusing on the development of a strong MEL Framework to accurately record and demonstrate the impact of our work.

We have grown our funding portfolio over the past few years but our size, salary and/or lack of investment in staff development can contribute to the inability to retain or recruit staff with the right skills and experience.

We have either reviewed or are in the middle of reviewing the salaries in accordance with our benchmarking process in all country programmes. The review will help us bring ADD’s salaries to the market median rates which will give competitive leverage to retain and recruit skilled workers. We also intend to implement a comprehensive training and development plan for staff with clear objectives.

20

RISK MANAGEMENT. (continued)

Impact of possible economic recession amid global pandemic

As the pandemic runs its course, the economic outlooks are looking different in different countries, but as the pandemic comes under a measure of control it is expected that world economies will bounce back. But it remains to be seen how quickly this can affect the available funding for our work.

We continue to engage with key donors to show importance of their support as well as influencing them to focus on the disability inclusive agenda.

Cashflow crisis

The funding cuts from the UK government via FCDO, projects either being cancelled, cut dramatically or future projects cut, and this could lead to a financial crisis situation where ADD is unable to fulfil its financial commitments.

The management is monitoring cashflow position on a monthly basis and follow ups are made when a grant payment becomes due. We are also monitoring individual donations on a monthly basis so an appropriate and timely response could be made for any significant variation.

Failure of safeguarding system

Failure to safeguard our partners, beneficiaries, staff and all who have contact with our organisation, which could lead to reputational issues with different stakeholders.

We have updated our safeguarding policy and reporting tools to provide the appropriate response to allegations. The trustees dedicate a large chunk of time in Board meetings to discuss the safeguarding arrangements within the organisation. We have created a safeguarding working group that meets on a quarterly basis and considers learnings from our country programmes to continuously improve systems.

Higher risk of reported safeguarding concerns

There is a higher risk of safeguarding concerns arising due to the pressures caused by strict lockdown measures on populations, recent research showing this is exacerbated in the most marginalised – including mental stress created by increased financial pressures, house isolation, school closures and lack of normal outlets for stress and frustrations.

All non-essential in-person meetings in our country programmes are cancelled. We continue to take all safeguarding concerns seriously and will respond to any allegation that comes to light. We continue to work with our partners and local DPOs so support mechanisms are in place for people with disabilities.

21

INTERNAL CONTROL.

The trustees have overall responsibility for ensuring that the organisation has appropriate systems of control, financial and otherwise. They are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the charitable company and enable them to ensure that the Financial Statements comply with the FRS 102 SORP and Companies Act 2006.

The trustees recognise that systems of control can only provide a reasonable and not complete assurance against inappropriate or ineffective use of resources, or against the risk of errors or fraud. They remain satisfied that the internal systems provide reasonable assurance that the organisation operates efficiently and effectively, safeguards its assets, maintains proper records and complies with relevant laws and regulations.

We operate a comprehensive accountability system which includes an annual budget approved by trustees. The budget and any subsequent reforecasts are reviewed by the Finance, Audit and HR Sub-Committee and they consider actual results compared with plans and non- financial performance data. We have started to develop an internal audit function our first internal audit happened in July 2020 in Uganda. From that we have established learnings to take forward and plan to expand this further as the COVID-19 resolves.

PUBLIC BENEFIT STATEMENT.

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charitable company’s objectives and aims and in planning future activities for the year.

FUNDRAISING POLICY

The charitable company aims to achieve best practice in the way in which it communicates with donors and other supporters. The charitable company takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charitable company manages its own fundraising activities and does not employ the services of professional fundraisers. The charitable company undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charitable company received no complaints about its fundraising activities.

22

STATEMENT OF TRUSTEES’ RESPONSIBILITIES.

The trustees (who are also directors of Action on Disability and Development for the purposes of company law) are responsible for preparing the trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (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 charitable company and of the income and expenditure, of the charitable company for that period. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Each of the trustees confirms that:

23

STATEMENT OF TRUSTEES’ RESPONSIBILITIES. (continued)

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The trustees are responsible for the maintenance and integrity of 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.

Kudakwashe Dube (Mr) Chair of trustees Date: 27th May 2021

24

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACTION ON DISABILITY AND DEVELOPMENT.

OPINION.

We have audited the financial statements of Action on Disability and Development (the ‘charitable company’) for the year ended 31 December 2020, which comprise the statement of financial activities, the balance sheet, and statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

BASIS OF 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 charitable company 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.

25

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 charitable company’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, who are also the directors of Action on Disability and Development for the purposes of company law, are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, 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.

OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT

2006.

In our opinion, based on the work undertaken in the course of the audit:

26

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION.

In the light of the knowledge and understanding of the charitable company 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:

RESPONSIBILITIES OF TRUSTEES.

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

27

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS. (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

28

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS. (continued)

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

29

USE OF OUR REPORT.

This report is made solely to the charitable company’s 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 charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Hugh Swainson (Senior Statutory Auditor)

For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

13 July 2021

30

STATEMENT OF FINANCIAL ACTIVITIES YEAR TO 31 DECEMBER 2020.

Notes
Income from:
Donations and legacies
1
Interest receivable
3
Charitable activities
4
Other income
Total income
Expenditure on:
Raising funds
2
Support of the International
Disability Movement
Total expenditure
6
Net income (expenditure)
and net movement in funds
7
Fund balances at 1 January
2020
Fund balances 31 December
2020		 Unrestricted
funds
Restricted
funds
2020
total
funds
Unrestricted
funds
Restricted
funds
2019
total
funds
£
£
£
£
£
£
655,433
—
655,433
668,162
—
668,162
1,470
—
1,470
1,809
—
1,809
7,000
2,336,126
2,343,126
—
2,353,951
2,353,951
17,233
—
17,233
764
—
764
681,136
2,336,126
3,017,262
670,735
2,353,951
3,024,686
174,331
—
174,331
200,437
—
200,437
359,324
2,394,121
2,753,445
477,815
2,384,177
2,861,992
533,655
2,394,121
2,927,776
678,252
2,384,177
3,062,429
147,481
(57,995)
89,486
(7,517)
(30,226)
(37,743)
460,263
618,238
1,078,501
467,780
648,464
1,116,244
607,744
560,243
1,167,987
460,263
618,238
1,078,501

There is no difference between the net movement in funds stated above, and the historical cost equivalent.

All of the charitable company’s activities derived from continuing operations during the above two financial periods.

31

BALANCE SHEET 31 DECEMBER 2020.

Notes
Fixed assets
Tangible fixed assets
10
Current assets
Debtors
11
Cash at bank and in hand
12
Creditors: Amounts falling due within 1 year
13
Net current assets
Total assets less current liabilities
Provisions
14
Total net assets
Represented by:
The funds of the charitable company:
Restricted funds
15
Unrestricted funds
- General funds		 2020
£
423,122
1,011,270		 2020
£
5,158
1,309,378		 2019
£
343,978
1,007,705		 2019
£
7,954
1,224,595
1,434,392
(125,014)		 1,351,683
(127,088)
1,314,536
(146,549)		 1,232,549
(154,048)
1,167,987 1,078,501
560,243
607,744		 618,238
460,263
1,167,987 1,078,501

Approved by the trustees and agreed on their behalf

Kudakwashe Dube

Chair of trustees

Date: 27th May 2021

Action on Disability and Development (operating as ADD International) Company registration number: 2033925 (England and Wales)

32

STATEMENT OF CASH FLOWS YEAR TO 31 DECEMBER 2020.

Notes 2020
£
2019
£
Cash flows from operating activities:
Net cash provided by (used in) operating activities
A
Cash flows from investing activities:
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Movement due to foreign exchange
Cash and cash equivalents at 1 January
B
Cash and cash equivalents at 31 December
B		 14,599
(34,989)
—
(7,187)
—
(7,187)
14,599
(42,176)
(11,034)
(39,648)
1,007,705
1,089,529
1,011,270
1,007,705

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR TO 31 DECEMBER 2020. A Reconciliation of net movement in funds to net cash provided by (used in) operating activities

A Reconciliation of net movement in funds to net cash provided by (used in) operating activities
B 2020
£
2019
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Foreign exchange losses gains
Increase in debtors
(Decrease) increase in creditors
(Decrease) increase in provisions
Net cash provided by (used in) operating activities
Analysis of cash and cash equivalents		 89,486
(37,743)
2,796
5,600
11,034
39,648
(79,144)
(82,076)
(2,074)
19,336
(7,499)
20,246
14,599
(34,989)
2020
£
2019
£
Cash at bank and in hand
Total cash and cash equivalents		 1,011,270
1,007,705
1,011,270
1,007,705

33

STATEMENT OF CASH FLOWS YEAR TO 31 DECEMBER 2020. (continued)

C Analysis of changes in net debt

Analysis of changes in net debt
At 1 At 31
January Cash December
2020 flows 2020
£ £ £
Cash at bank and in hand 1,007,705 3,565 1,011,270

34

PRINCIPAL ACCOUNTING POLICIES.

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

BASIS OF ACCOUNTING.

The financial statements have been prepared under the historical cost convention with items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (‘Charities FRS 102 SORP 2015’), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2011.

The charitable company constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT.

Preparation of the accounts requires the trustees and management to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

ASSESSMENT OF GOING CONCERN.

The trustees have assessed whether the use of going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

Whilst the degree of uncertainties described in this going concern assessment warrants transparent disclosure, particularly around the cuts now being imposed by FCDO, which will have a significant impact on our funding stream in the short to medium term, the trustees have concluded that it does not constitute a material uncertainty related to going concern.

35

ASSESSMENT OF GOING CONCERN (continued) .

The trustees’ going concern assessment is based on the assumption that funders continue to have confidence in ADD as key player on the disability agenda and in delivering activities through the COVID-19 pandemic. We adapted activities to respond to COVID-19 and arrangements are made to safeguard our staff and beneficiaries from any potential harm.

Therefore, the financial statements for the year ended 31 December 2020, should be prepared on the going concern basis.

INCOME.

All income becoming available to the charitable company during the year is recognised, gross, in the Statement of Financial Activities. Volunteer time is not included in the financial statements.

Legacies are included in the statement of financial activities when the charitable company is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charitable company.

Entitlement is taken as the earlier of the dates on which either: the charitable company is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charitable company that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charitable company has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charitable company, or the charitable company is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charitable company.

Grants receivable are normally accounted for when receivable, except where there are conditions preventing recognition in the current accounting period, in which case they are treated as deferred income and are recognised once the relevant conditions are met. Where matched funding is received for which the match element of funding will be raised in a future accounting period, the funding is deferred until the matched element is raised.

36

EXPENDITURE AND THE BASIS OF APPORTIONING COSTS.

Expenditure is included in the Statement of Financial Activities when incurred and includes attributable VAT which cannot be recovered.

Expenditure is shown gross and accruals are included in creditors for all known liabilities relating to the year.

Expenditure on international programmes comprises all direct expenditure and all staff related costs of the countries’ offices plus the costs related to the Global Policy and Influencing team.

Grants payable to overseas partners are those funds paid both directly from the UK and those paid by ADD Country offices to the charitable partners overseas. These partner organisations are Disabled Peoples Organisations (DPO’s), and funds are provide for specific purposes i.e. to deliver an activity etc. These payments often include staff salary and other office support costs. Grants for programmes where the programme activity is controlled by ADD International is recognised once expended by the partner.

Expenditure on raising funds relate to the costs incurred by the charitable company in inducing others to make voluntary contributions to it.

Support costs comprise staff and overhead costs which fall into more than one of the above categories. These costs have been allocated on the basis of full time equivalent staff numbers in the relevant categories of expenditure.

The charitable company makes contributions on behalf of its UK employees into their personal pension funds. The amounts charged in the Statement of Financial Activities represent the contributions payable to the funds in respect of the accounting period. Outstanding pension contributions at the year-end are included in creditors.

In a number of countries in which the charitable company operates, it is legally required to fund end of service payments to staff at the end of their employment with the charitable company. Full provision is made for the cost of these benefits relating to past services and this is included within overseas staff costs. It is our intention that we treat all staff fairly, so in countries where it is not a legal obligation we would still contribute to an end of service/pension provision as per our HR guidelines.

TANGIBLE FIXED ASSETS.

All assets in the UK costing more than £500 and with an expected useful life exceeding one year are capitalised.

Fixed assets are depreciated at the following annual rates in order to write them off over their estimated useful lives:

37

TANGIBLE FIXED ASSETS (continued) .

Capital items purchased for use overseas, with the exception of vehicles, are depreciated 100% in the year of acquisition.

DEBTORS.

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.

CASH AT BANK AND IN HAND.

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

CREDITORS.

Creditors are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charitable company anticipates it will pay to settle the debt.

FUND ACCOUNTING.

Restricted funds are funds subject to specific conditions imposed by the funders and relate to specific projects. Expenditure which meets these criteria is charged to the funds together with a fair allocation of management and support costs.

Interest earned on restricted income is not applied to the restricted fund unless specifically requested by the donor. Such interest will be treated as unrestricted income designated for programme support.

Unrestricted funds comprise accumulated surpluses and deficits on general funds and are available for use at the discretion of the trustees in furtherance of the objectives of the charitable company.

FOREIGN CURRENCIES.

Transactions in foreign currency are accounted for on a monthly basis at the monthly spot rate. At the balance sheet date, any cash or other monetary items held are translated at the closing spot rate.

38

PROVISIONS.

Provisions are made where there exist contractual liabilities for payment of funds at an unspecified future date, or for obligations where it is probable that payment of funds will be required at an unspecified future date where no contractual liability exists.

FINANCIAL INSTRUMENTS.

The charitable company only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charitable company and their measurement basis are as follows:

Financial assets – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Listed investments are a basic financial instrument as detailed above. Prepayments are not financial instruments.

Cash at bank – classified as a basic financial instrument and is measured at face value.

Financial liabilities – accruals and other creditors are financial instruments, and are measured at amortised cost.

PENSIONS.

Contribution to the defined contribution pension scheme are recognised in the SOFA when they are payable. The nature of the scheme assures there will be no funding deficit or surplus accruing to the charitable company in the future. The pension scheme is independently administered, and the assets of the scheme are held separately from those of the charitable company.

TAXATION.

As a registered charitable company, ADD is exempt from taxation of income and gains to the extent these are applied to charitable objectives.

Irrecoverable VAT is not separately analysed and is charged to the SOFA when the expenditure to which it relates is incurred and is allocated as part of the expenditure to which it relates.

39

NOTES TO THE FINANCIAL STATEMENTS.

1) INCOME FROM DONATIONS AND LEGACIES.

Regular donations and
collections
Non-regular donations and
legacies		 Unrestricted
funds
Restricted
funds
2020
total
funds
Unrestricted
funds
Restricted
funds
2019
total
funds
£
£
£
£
£
£
566,258
—
566,258
592,968
—
592,968
89,175
—
89,175
75,194
—
75,194
655,433
—
655,433
668,162
—
668,162

2) EXPENDITURE ON RAISING FUNDS.

Regular donor acquisition and support
Trust development
Non regular donations
Communication and promotional activities		 Unrestricted funds
2020
total
funds
2019
total
funds
£
£
156,929
171,650
7,811
10,589
4,827
10,454
4,764
7,830
174,331
200,523

3) INTEREST RECEIVABLE.

Bank interest Unrestricted funds
2020
total
funds
2019
total
funds
£
£
1,470
1,809
1,470
1,809

40

4) GRANTS (ALL INSTITUTIONAL).

ACCESS, Department of Foreign Affairs &
Trade (Australia)
Allen & Nesta Ferguson Charitable
Settlement
Asia Foundation
Big Lottery Funding
CAFOD
CBM (Bangladesh)
Children in Crisis (Tanzania)
Comic Relief
Commonwealth Secretariat
Foreign Commonwealth and
Development Office (FCOD) (formally
DFID)
Disability Rights Advocacy Fund
European Commission (EC)
Foreign & Commonwealth Office
Mendip District Council
Practical Action
USAID
United Nations Trust Fund
Wellspring Philanthropic Fund		 Unrestricted
funds
Restricted
funds
2020
total
funds
Unrestricted
funds
Restricted
funds
2019
total
funds
£
£
£
£
£
£
—
193,664
193,664
—
—
—
—
—
—
—
35,000
35,000
—
—
—
—
(1,698)
(1,698)
—
—
—
—
40,700
40,700
—
—
—
—
50,134
50,134
—
(17,572)
(17,572)
—
77,656
77,656
—
7,763
7,763
—
—
—
—
335,927
335,927
—
279,800
279,800
—
4,000
4,000
—
10,000
10,000
—
1,135,963
1,135,963
—
673,408
673,408
—
40,479
40,479
—
226,209
226,209
—
222,162
222,162
—
376,798
376,798
—
12,239
12,239
—
27,233
27,233
7,000
—
7,000
—
—
—
—
—
—
—
9,070
9,070
—
149,547
149,547
—
224,531
224,531
—
131,018
131,018
—
206,241
206,241
—
120,936
120,936
—
118,869
118,869
7,000
2,336,126
2,343,126
—
2,353,951
2,353,951

5) GRANTS AND PAYMENTS TO PARTNERS FROM PROGRAMMES.

Paid from ADD’s country programmes
Bangladesh
Cambodia
Sudan
Tanzania
Uganda		 Restricted funds
2020
2019
£
£
9,507
8,672
26,738
46,671
24,362
13,979
28,718
36,630
—
—
89,325
105,952

Where ADD’s support to partners includes the provision of funds, a formal Partnership Agreement is entered into and grants are made for specific purposes and to assist in the implementation of restricted projects.

All of the grants and payments above are paid to organisations who are involved in achieving positive and lasting change in the lives of disabled people, especially those living in poverty.

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6) TOTAL EXPENDITURE.

Staff costs (note 8)
Office running costs
Transport & travel
Payments payable to partners (note 5)
Field operations
Exchange loss
Fundraising activities
Consultancy & external advice
Governance - trustees' costs
Governance – Audit
Subtotal
Support costs
Staff costs (note 8)
Office running costs
Transport & travel
Payments payable to partners (note 5)
Field operations
Exchange loss (gain)
Fundraising activities
Consultancy & external advice
Governance - trustees' costs
Governance – Audit
Subtotal
Support costs		 International
programmes
Expenditure on
raising funds
Support
costs
2020 total
funds
£
£
£
£
1,018,003
66,699
394,371
1,479,073
216,856
16,923
58,598
292,377
47,093
1,582
7,724
56,399
89,325
—
—
89,325
788,727
—
391
789,118
6,242
—
24,138
30,380
326
16,548
—
16,874
27,783
65,059
45,310
138,152
1,179
—
1,535
2,714
23,997
—
9,367
33,364
2,219,531
166,811
541,434
2,927,776
533,914
7,520
(541,434)
—
2,753,445
174,331
—
2,927,776
International
programmes
Expenditure on
raising funds
Support
costs
2019 total
funds
£
£
£
£
941,994
95,285
399,197
1,436,476
215,180
18,296
73,680
307,156
78,360
14,206
47,478
140,044
105,952
—
—
105,952
861,064
—
6,368
867,432
42,526
—
(2,878)
39,648
320
28,084
—
28,404
9,551
17,493
44,527
71,571
8,212
—
16,556
24,768
30,283
—
10,695
40,978
2,293,442
173,364
595,623
3,062,429
568,550
27,073
(595,623)
—
2,861,992
200,437
—
3,062,429

Expenditure relating to the Global Policy and Influencing team has been reflected in International Programmes as their work is global and contributes to our strategic programmatic goals and is not a support function.

The staff costs related to staff involved in development work are included in staff costs and not in field operations.

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. Similarly, costs will be incurred in supporting income generation activities such as fundraising, and in supporting the governance of the charitable company. Support costs include the UK office functions such as programme support, general management, payroll administration, budgeting and accounting, information technology, human resources, restricted fundraising and reporting and finance. Support costs have been allocated on the basis of head count.

42

7) NET INCOME (EXPENDITURE) FOR THE YEAR.

This is stated after charging:

his is stated after charging:
2020 2019
£ £
Depreciation 2,796 5,600
Trustees’ reimbursed expenses: — 9,151
Auditors’ remuneration:
. Statutory Audit services 16,560 16,000
.. Overseas auditors 16,804 24,978

8) STAFF COSTS AND NUMBERS.

The total staff costs of UK-based employees were as follows:

Wages and salaries
Social security costs
Pension contributions
Total emoluments paid to staff based in the UK
Other staff costs (health insurance, training & recruitment)
Total staff costs in the UK
Total staff & salary costs for field staff based overseas		 2020
2019
£
£
560,946
589,082
55,978
59,396
31,281
34,026
648,205
682,504
22,018
33,191
670,223
715,695
808,850
720,781
1,479,073
1,436,476

The number of employees whose remuneration for the year fell within the following bands were

2020 2019
Number Number
£60,001 - £70,000 1 1
£90,001 - £100,000 1 1

Pension contributions totalling £8,491 (2019: £8,491) were paid in respect of these higher paid employees all of whom were accruing benefits under a defined contribution pension scheme.

The average number of employees during the year, calculated on a full time equivalent basis (which is not significantly different to a headcount basis), analysed by function was as follows:

Field staff -overseas based
Programme support - UK based
Fundraising - UK based
Support - UK based		 2020
2019
FTE
FTE
69
61
2
2
1
3
10
10
82
76

Total employee benefits paid to key management personnel, being members of the charitable company’s senior management team, in the year totalled £281,141 (2019: £289,333). During the year ended 31 December 2020, no travel and subsistence expenses were reimbursed to trustees (2019: £4,835 to 13 trustees).

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9) TAXATION.

Action on Disability and Development is a registered charitable company and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

10) TANGIBLE FIXED ASSETS.

Cost or valuation
At 1 January 2020
Disposals in year
At 31 December 2020
Depreciation
At 1 January 2020
On disposals
Charge for year
At 31 December 2020
Net book values
At 31 December 2019
At 31 December 2020		 Office and
computer
equipment
Overseas
assets
Total
£
£
£
66,965
175,907
242,872
(624)
(16,090)
(16,714)
66,341
159,817
226,158
59,011
175,907
234,918
(624)
(16,090)
(16,714)
2,796
—
2,796
61,183
159,817
221,000
7,954
—
7,954
5,158
—
5,158

11) DEBTORS.

Other debtors
Prepayments
Accrued income
Overseas advances		 2020
2019
£
£
105
6,251
53,342
40,475
331,591
266,294
38,084
30,958
423,122
343,978

12) CASH AT BANK AND IN HAND.

ASH AT BANK AND IN HAND.
UK current accounts and cash in hand
Overseas accounts
UK deposit accounts
Overseas cash		 2020
2019
£
£
306,953
429,746
232,204
255,622
471,577
322,126
536
211
1,011,270
1,007,705

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13) CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR.

Payroll taxes
Trade creditors
Accruals
Other creditors		 2020
2019
£
£
16,763
19,735
28,278
17,008
74,156
83,477
5,817
6,868
125,014
127,088

14) PROVISIONS.

At 1 Incoming At 31
January (charge for Outgoing December
2020 the year) (utilised) 2020
£ £ £ £
Overseas staff terminations 149,333 42,182 (44,966) 146,549
Project commitments 4,715 — (4,715) —
154,048 42,182 (49,681) 146,549
Incoming At 31
At 1 (charge for Outgoing December
January 2019 the year) (utilised) 2019
£ £ £ £
Overseas staff terminations 133,802 51,774 (36,243) 149,333
Project commitments — 4,715 — 4,715
133,802 56,489 (36,243) 154,048

15) RESTRICTED FUNDS.

UK
Bangladesh
Cambodia
Sudan
Tanzania
Uganda
Temporary foreign currency gains		 At 1
January
2020
Income
Expenditure
At 31
December
2020
£
£
£
£
139,047
459,446
(493,997)
104,496
211,867
648,295
(749,473)
110,689
63,855
324,684
(218,170)
170,369
4,966
391,941
(415,305)
(18,398)
214,122
320,536
(332,494)
202,164
(4,817)
191,224
(167,322)
19,085
(10,802)
—
(17,360)
(28,162)
618,238
2,336,126
(2,394,121)
560,243

45

15) RESTRICTED FUNDS. (continued)

At 31
At 1 December
January 2019 Income Expenditure 2019
£ £ £ £
UK 55,394 671,723 588,070 139,047
Bangladesh 200,254 691,474 679,861 211,867
Cambodia 64,192 206,241 206,578 63,855
Sudan 62,154 367,009 424,197 4,966
Tanzania 279,417 321,499 386,794 214,122
Uganda (11,679) 96,005 89,143 (4,817)
Temporary foreign currency gains (1,268) — 9,534 (10,802)
648,464 2,353,951 (2,384,177) 618,238

Income includes institutional grant income (note 4) and any donations and legacies given for a specific purpose by the donor.

ADD BANGLADESH RECEIVED FUNDING FROM :

ADD CAMBODIA RECEIVED FUNDING FROM:

ADD SUDAN RECEIVED FUNDING FROM:

46

15) RESTRICTED FUNDS. (continued)

ADD TANZANIA RECEIVED FUNDING FROM:

ADD INTERNATIONAL RECEIVED FUNDING FROM:

47

16) ANALYSIS OF NET ASSETS BETWEEN FUNDS.

Fund balances at 31 December 2020 are represented by:
Tangible fixed assets
Current assets
Current liabilities
Provisions
Fund balances at 31 December 2019 are represented by:
Tangible fixed assets
Current assets
Current liabilities
Provisions		 Restricted
funds
General
fund
2020
total
funds
£
£
£
—
5,158
5,158
560,243
874,149
1,434,392
—
(125,014)
(125,014)
—
(146,549)
(146,549)
560,243
607,744
1,167,987
Restricted
funds
General
fund
2019
total
funds
£
£
£
—
7,954
7,954
618,238
733,445
1,351,683
—
(127,088)
(127,088)
—
(154,048)
(154,048)
618,238
460,263
1,078,501

17) LEASING COMMITMENTS.

The charitable company is committed to making lease payments of £120,643 (2019: £67,200) over the life of the leases with respect to land and buildings.

The obligation to make these payments is as follows:

he obligation to make these payments is as follows:
Due within one year
Due within 2-5 years		 2020
2019
£
£
41,305
54,632
79,338
12,568
120,643
67,200

For more information, or to request an accessible version, please get in touch: call 0300 303 8835 or

email info@add.org.uk

Thank you

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