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2021-12-31-accounts

ADD INTERNATIONAL ANNUAL REPORT & ACCOUNTS.

31 DECEMBER 2021.

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 TRUSTEES' REPORT. ..................................................................................................... 5 STRUCTURE, GOVERNANCE AND MANAGEMENT. ..................................................... 5 PURPOSE. ..................................................................................................................... 7 ACTIVITIES, ACHIEVEMENT AND PERFORMANCE. ..................................................... 8 OUR PLANS FOR 2022. .............................................................................................. 11 FINANCIAL REVIEW. .................................................................................................. 12 STATEMENT OF TRUSTEES’ RESPONSIBILITIES. ........................................................ 19 INDEPENDENT AUDITOR’S REPORT .......................................................................... 22 STATEMENT OF FINANCIAL ACTIVITIES YEAR TO 31 DECEMBER 2021. .................. 27 BALANCE SHEET 31 DECEMBER 2021. ....................................................................... 28 STATEMENT OF CASH FLOWS YEAR TO 31 DECEMBER 2021. .................................. 29 PRINCIPAL ACCOUNTING POLICIES. ........................................................................ 31 NOTES TO THE FINANCIAL STATEMENTS. ................................................................ 37

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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 (resigned May 2021)

Deborah Botwood Smith – Co-chair

Matthew David Jackson – Co-Chair

Kieran Breen ( resigned November 2021 )

Sarah Dyer ( resigned January 2021 )

Louise Catherine James

Ken Jones

Janice May Knight

Jillian Emma Popkins Phillimon Simwaba

Liz Sayce ( appointed January 2021 )

Jane Hatton ( appointed January 2021 )

COMPANY SECRETARY.

The company secretaries who served during the year and since the year end were as follows:

Andrew Neeve (appointed 22 February 2021) Adil Shah (resigned 22 February 2021)

HONARARY PRESIDENT.

A K Dube – (Appointed November 2021)

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SENIOR MANAGEMENT TEAM.

Chief Executive Officer (Resigned 30[[th]] June 2021)

Jimmy Innes Chief Executive Officer (Resigned 30[[th]] June 2021) Mary Ann Clements Chief Transformation Officer and interim CEO (Appointed 1[st] July 2021/ confirmed Co CEO April 2022) Tamsin Langford Director of Programme Support & Learning Andy Neeve Director of Finance and Operations (Appointed 1[st] February 2021) Mosharraf Hossain Director of Policy & Influencing (Resigned 28[th] May 2021)

COUNTRY DIRECTORS.

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

BANKERS.

AUDITOR.

SOLICITORS.

Lloyds Godfrey Wilson Ltd Harris & Harris City Office 5[th] Floor, Mariner House 11 Stony Street PO Box 72 Bailey Drive 62 Prince Street Frome Gillingham Kent Bristol BA11 1BU ME8 0LS BS1 4QD

NatWest

4 Market Place Frome Somerset BA11 1AE

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TRUSTEES' REPORT.

REPORT OF THE TRUSTEES FOR THE YEAR ENDING 31 DECEMBER 2021.

The trustees are pleased to present their annual report together with the financial statements of the charitable company for the year ending 31 December 2021, 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% disabled people, 50% BIPOC people from the countries where we work and 50% women. Of the 9 trustees serving at the end of 2021, 6 were women and 3 were disabled people. As a Board we have recognised that we have not been achieving our aims in terms of ensuring that 50% of our board are disabled people or that 50% are BIPOC people from the countries where we work, and we aim to rectify this in the coming year by recruiting at least three more disabled BIPOC people from the countries where we work including a new Chair or Co-Chairs. 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 annually reviews its commitments about how to best serve ADD International as an Organisation and shares them with all staff.

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POLICIES AND PROCEDURES FOR INDUCTION AND TRAINING OF TRUSTEES. (continued)

In the coming year the focus will be to support the organisation:

ORGANISATIONAL STRUCTURE AND MANAGEMENT.

At the beginning of 2021 the board committed to a new approach to holding regular full board meetings and so the board now meets six times a year and, given the global locations of board members and the impact of the Covid-19 pandemic on our ways of working, the majority of these meetings now take place virtually. In the intervening months there is an Officers' Meeting to deal with urgent business and receive updates on finances, risk and HR issues. The Board no longer has sub-committees and all of the business that they previously considered is now brought to the Officers' Meeting or the full board for discussion and agreement. This includes agreeing ADD's strategic framework, monitoring progress against plans, and operational and financial targets, monitoring risk and ensuring effective governance, policy and practice.

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. In July 2021 the Trustees recruited an interim Chief Executive whom they also asked to lead a process of internal transformation. In November 2021 as part of that process the Trustees took the decision to introduce a Co-Leadership model whereby the role of Chief Executive is shared by two individuals, one of whom will always be a disabled person with lived experience of the work that we do and this will come into place in mid-2022. The Trustees will keep this new arrangement under review.

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.

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KEY MANAGEMENT PERSONNEL. (continued)

The Senior Leadership Team is made up of the Chief Executive and two departmental heads the Director of Programmes and the Director of Finance and Operations as well as our five Country Directors. Names of the SLT members can be found on page 4 of this report. We recently also recruited a new Director of Funding, Communications & Transformative Partnerships who will start in 2022 and join the Senior Team.

PAY POLICY FOR SENIOR STAFF.

The pay of all of our staff is reviewed annually and normally increased in accordance with average earnings. The responsibility of setting and agreeing remunerations for the Senior Team is delegated to the Officers of the Board and for staff to the Chief Executive and the Senior Team. 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 led by the Director of Finance and Operations. The Chief Executive recommends the remunerations for the SLT members to the Officers of the Board without any of them being present, and the Board agrees to the Chief Executive’s remuneration without their presence.

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:

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ABOUT ADD INTERNATIONAL. (continued)

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.

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.

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.

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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:

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 2021.

EMBRACING CHANGE & TRANSFORMATION

Our work has continued as we worked to review and transform the way in which we work.

As the COVID-19 pandemic continued we continued to try and respond, support disabled people and their organisations to access vaccines and support their livelihoods through this time of great uncertainty. Increasingly through 2021 our offices were able to open again and became more used to hybrid working, using the office sometimes and at other times home and virtual working. Many of our Programmes continued to experience challenges where schools remained closed, in particular in Bangladesh and Uganda. 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. As such we continued to implement our plan developed when the pandemic began in 2020 which focused on the following four themes:

  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.

As restrictions have lifted, at least for a time in most of the places where we work, we have also been able to get back to some of our more traditional approaches to working in partnership with disabled people’s organisations.

Our programmes in the countries where ADD works continue to deliver 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 delighted to host a side event at the recent Global Disability Summit and to be able to profile our ground-breaking work with disabled women’s organisations there and are excited about the ADD Young Leaders programme which we have recently revived as a means through which to support disability movements by supporting young disabled activists to grow their skills, networks and experience.

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OUR PLANS FOR 2022.

In 2021 we consulted disabled people's organisations and activists about how ADD should be changing and responding to their needs more effectively. In November our Trustees set the course for that change and over the coming few years we will set about implementing some changes, not in our overall vision and mission but in how we do what we do.

Whilst the pandemic does of course continue to affect our work we have also found benefit in the new ways of working that it has enabled. We have been able to recruit staff in different locations than we might have previously and support them with flexible ways of working that we hadn’t imagined before. Adapting to the ‘new normal’ has brought both challenges and opportunities. As we look to 2022, we are embracing the opportunities that this time offers for virtual collaboration and re-centring how our organisation does business reflecting the ways in which we want to ensure that more power rests with disabled activists and organisations as well as our staff teams in the Global South.

Meanwhile, we continue to mitigate against the financial and funding challenges that face the organisation. Cuts made by what is now the Foreign and Commonwealth Development Office, continue to have an impact though we have been glad to also be part of new initiatives this year including the FCDO funded Schule Bora programme which supports inclusive education in Tanzania.

In 2022 we are also investing in new fundraising staff capacity particularly at the strategic level to help enable us to translate our transformational plans to shift power and resources to the constituents we serve into a reality.

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 2021 was £2.63m, of which £0.63m (2020: £0.68m) was unrestricted and £2.00m (2020: £2.34m) was restricted. The total income in 2021 was £0.38m (12.7%) lower than the previous year. This was largely due to the well-publicised cuts to FCDO (ex DFiD) funding as the UK government refocussed and reduced their overall funding commitments to overseas development assistance.

The total unrestricted income in 2021 reduced by £0.05m (7.2%) mainly due to natural attrition of both regular and non-regular donations, which is around the industry average for this type of fund raising. Meanwhile we still have a number of committed regular donors and we are deeply grateful to all those who contributed their support to ADD International in 2021. At the same time many new donors are responding to the digital fundraising campaigns we have begun developing and we are renewing our investment in these newer types of funding going forward.

We will continue with the strategy of diversification of income in 2022 with a focus on developing new relationships with institutional donors and further strategic investment in Individual Giving campaigns. We are anticipating this strategy to increase our unrestricted and more flexible forms of income in 2022.

----- Start of picture text -----
Total Income £2.63m
0.15%
21.34%
Regular Donations - £0.562m
2.51%
Non-Regular Donations - £0.066m
76.01% Institutional Funding - Restricted - £2.002m
Exchange Gain/Bank Interest/Other Income - £0.004m
----- End of picture text -----

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FINANCIAL REVIEW. (continued) EXPENDITURE.

After having seen our support to disability movements continued to grow over the past three years, in 2021, ADD International’s total expenditure was £2.85m (2020: £2.93m), down by £0.08m (2.7%) from 2020. This decrease in expenditure during the year is due to a decrease in restricted expenditure as a result of the FCDO cuts as mentioned above of £0.25m (10.4%). The unrestricted expenditure during the year increased by £0.17m (31.5%), this is partly due to the increased investment in social media fundraising but also the investments that were needed to support the process of change and transformation which we are currently undergoing.

In 2021, ADD International spent £0.21m to generate £0.63m through donations and legacies. This equates to £2.96 raised for every £1 spent which is consistent with the sectoral standards.

----- Start of picture text -----
Total Expenditure £2.847m
20.09%
International Programmes - £2.033m
1.05%
Expenditure on Raising Funds - £0.212m
7.45% Governance & Audit - £0.030m
71.41%
Support Cost - £0.572m
----- End of picture text -----

FINANCIAL POSITION.

The end-year balance of unrestricted funds reduced by £0.07m to £0.54m, which was mainly as a consequence of reduced recovery from FCDO contracts that had been cut.

The end-year restricted fund balance closed at £0.42m, down by £0.14m. This reflects the fact that more of our contracts are now funded in arrears, and not the traditional method of receiving the funds up front, this in itself also means we need to manage cashflow much more closely due to the delayed payment cycle. Liquidity remains strong with net current assets of £1.08m.

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FINANCIAL REVIEW. (continued) FINANCIAL PLANS FOR 2022.

The financial plans for 2022 are really about re-aligning ourselves to meet the challenges of shifting the organisation during this transformation period, which means that we have set ourselves a target of attaining a balanced budget for this year, with income currently forecast to be at a similar level to 2021.

There will of course, also be an element of cost control within the transformation plans to ensure we remain cost effective and as we seek to shift more responsibility away from the UK to the global south this will also have an impact. Even with the investments we are needing to make during this process we are still forecasting that our overall expenditure will reduce during 2022 when compared to 2021.

Looking further forward to 2023 and beyond we would then seek a period of consolidation before being in a position to consider further growth within the new more flexible and focussed business model that will have been developed.

We will continue to seek new funding for our project work but also invest in looking for new funding sources from both existing and new donors specifically aimed at the new strategy and complementing our vision of being able to support disabled people and their movements.

To this end we have just employed (April 2022) a new full-time Director of Funding, Communications & Transformative Partnerships to consolidate and expand existing funding sources but also lead the search for new funds.

During 2021 and continuing into 2022 following the lessons we have learnt during the COVID19 pandemic we have moved the whole organisation to a very flexible hybrid way of working. This has also meant a big shift in how we use technology to maintain a very dynamic workplace, the bedrock of that transformation has been the introduction of a new SharePoint system that has really democratised our data and information throughout the organisation.

A second facet of this transformation has also been for us to start the process of moving away from the artificial distinction between international and national staff common to many international development organisations and instead reviewing our staffing, pay and benefits structures across the whole organisation. The reason for that is that the previous approach masked discrimination that was rooted in an often-unacknowledged colonial attitude. Twinned with this is our aim to re-affirm our commitment to being an ‘Exemplar employer’ for disabled people and really embed our principles of inclusion and access.

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FINANCIAL REVIEW. (continued) 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 was calculated to be £0.31m, 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 £0.54m, which meets this requirement adequately.

The trustees agreed to review the reserves policy in 2022 in order to ensure prudence and effectiveness but also to reflect our new working model once that is fully established.

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 changing face of FCDO funding, which has had 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 as we diversify our portfolio and also undertake our strategic transformation to become less reliant on this form of funding.

The trustees’ going concern assessment is based on the assumption that funders will continue to have confidence in ADD as key and a strategic player in the disability agenda. Therefore, the trustees have concluded that the financial statements for the year ended 31 December 2021 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 commercial rate on deposit which allows for immediate access, this has averaged during the year 0.1%.

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RISK MANAGEMENT.

The board of trustees is responsible for the management of risks and is assisted by the SLT in the implementation. A risk register is maintained and used to examine and monitor risk to the organisation, this is reviewed at every board meeting. Early in 2022 a new Risk Policy, that includes business continuity has been adopted, to better identify and mitigate, on a proactive basis, risk management in today’s ever fast-moving environment.

The risk register identifies and prioritises risks in relation to the likelihood of the risk emerging and the level of impact it would have on the organisation and outline the measures in place to prevent or mitigate the impact of such risk. The new policy has extended our definition of risk by two new categories, Legitimacy (this is about representation and accountability to the communities we serve) and Inclusion, (lack of inclusion and diversity has been a massive area of risk for other INGOs recently and is very high on our radar) which relate to our transformation process and are at the heart of what we aspire to do. The full list of categories is as below:

The key risk to ADD International continues to be the reduction in unrestricted funding, also the loss of key restricted funding which could create a major disruption and business continuity issues. We will continue to monitor the situation closely as we journey through the transformation process and will be seeking new donors to fund this work.

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RISK MANAGEMENT. (continued)

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 recognise 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 and the extended use of social media which will help recruit new donors.

▪ Unable to Demonstrate Impact

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, although this has relaxed a little during the latter part of 2021, this risk has been mitigated by investing in country-based MEL officers focusing on the development of a strong MEL Framework to accurately record and demonstrate the impact of our work.

▪ Retaining and recruiting skilled workers

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 are now in the middle of a complete overhaul of our HR system and global salary scales to aim to become an ‘Exemplar employer’ and truly be inclusive and implement our aim of having at least 50% of our staff from disabled communities, together with removing the potentially discriminating definitions of international vs national staff.

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RISK MANAGEMENT. (continued)

With the new revised global salary scale and with us re-centring towards the global south, we believe this will allow us to tap into a much wider and more relevant pool of skilled workers. We also intend to implement a comprehensive training and development plan for staff with clear objectives.

▪ 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 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.

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 charity 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 trustees, and they consider actual results compared with plans and non-financial performance data. We do not have a dedicated internal audit function but through our Regional Head of Finance maintain control spot checks and visits and in addition country offices are audited through qualified external auditors annually, who conduct risk-based audits and a review of internal controls.

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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.

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:

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES (continued)

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:

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.

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.

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES (continued)

AUDITORS

Godfrey Wilson Limited were appointed as auditors to the charitable company during the year and have expressed their willingness to continue in that capacity.

Deborah Botwood Smith

Matthew Jackson

Deborah Botwood Smith & Matt Jackson - Co-Chair of Trustees Date: 29 June 2022

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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 2021, 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.

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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, 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:

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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.

24

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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

25

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

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.

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 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.

Date: 29 June 2022

Alison Godfrey

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of Godfrey Wilson Limited

5[th] Floor, Mariner House 62 Prince Street Bristol BS1 4QD

26

STATEMENT OF FINANCIAL ACTIVITIES YEAR TO 31 DECEMBER 2021.

(Incorporating an income and expenditure statement)

2021 2020
Unrestricted Restricted total Unrestricted Restricted total
Notes funds funds funds funds funds funds
£ £ £ £ £ £
Income from:
Donations and legacies 1 627,461 - 627,461 655,433 - 655,433
Interest receivable 2 1,092 - 1,092 1,470 - 1,470
Charitable activities 3 - 2,002,610 2,002,610 7,000 2,336,126 2,343,126
Other income 3,188 - 3,188 17,233 - 17,233
Total income 631,741 2,002,610 2,634,351 681,136 2,336,126 3,017,262
Expenditure on:
Raising funds 5 212,004 - 212,004 174,331 - 174,331
Charitable expenditure:
Support of the International
Disability Movement 489,709 2,145,894 2,635,603 359,324 2,394,121 2,753,455
Total expenditure 7 701,713 2,145,894 2,847,607 533,655 2,394,121 2,927,776
Net income/(expenditure) &
net movement in funds 8 (69,972) (143,284) (213,256) 147,481 (57,955) 89,486
Fund balances at 1 January
2021 607,744 560,243 1,167,987 460,263 618,238 1,078,501
Fund balances 31 December
2021 537,772 416,959 954,731 607,744 560,243 1,167,987

There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 16 to the accounts.

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

27

BALANCE SHEET 31 DECEMBER 2021.

Notes
Fixed assets
Tangible fixed assets
11
Current assets
Debtors
12
Cash at bank and in hand
13
Creditors: Amounts falling due within 1 year
14
Net current assets
Total assets less current liabilities
Provisions
15
Total net assets
17
Represented by:
The funds of the charitable company:
Restricted funds
16
Unrestricted funds
- General funds		 2021
£
319,600
873,990		 2021
£
4,678
1,082,922		 2020
£
423,122
1,011,270		 2020
£
5,158
1,309,378
1,193,590
(110,668)		 1,434,392
(125,014)
1,087,600
(132,869)		 1,314,536
(146,549)
954,731 1,167,987
416,959
537,772		 560,243
607,744
954,731 1,167,987

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees and agreed on their behalf

Deborah Botwood Smith Matthew Jackson

Deborah Botwood Smith & Matt Jackson - Co-Chairs of Trustees

Date: 29 June 2022

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

28

STATEMENT OF CASH FLOWS YEAR TO 31 DECEMBER 2021.

DECEMBER 2021.
Notes 2021
£
2020
£
Cash inflow from operating activities:
Net cash used in operating activities
A
Cash inflow from investing activities:
Purchase of tangible fixed assets
Dividends, interest and rents from investments
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		 (163,311)
13,129
(2,486)
-
1,092
1,470
(1,394)
1,470
(164,705)
14,599
27,425
(11,034)
1,011,270
1,007,705
873,990
1,011,270

29

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR TO 31 DECEMBER 2021.

A Reconciliation of net movement in funds to net cash provided by operating activities

2021
£
2020
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Dividends, interest and rents from investments
Foreign exchange gains / (losses)
Decrease / (increase) in debtors
Increase in creditors
Increase in provisions
Net cash used in operating activities
Analysis of cash and cash equivalents		 (213,256)
89,486
2,966
2,796
(1,092)
(1,470)
(27,425)
11,034
103,522
(79,144)
(14,346)
(2,074)
(13,680)
(7,499)
(163,311)
13,129
2021
£
2020
£
Cash at bank and in hand
Total cash and cash equivalents		 873,990
1,011,270
873,990
1,011,270

B Analysis of cash and cash equivalents

The charity has not provided an analysis of changes in net debt as it does not have any long-term financing arrangements.

30

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 2019’), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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.

BRANCH ACCOUNTING.

These financial statements consolidate the results of the charity and its overseas branches in Uganda, Tanzania, Cambodia, Sudan and Bangladesh on a line-by-line basis. Neither a separate statement of financial activities nor an income and expenditure account for the UK office alone is presented as the charitable company has taken advantage of the exemptions afforded by the Companies Act 2006 and SORP 2019.

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:

A further key judgement required in preparing these accounts has been the estimation of the impact on the Covid-19 pandemic on the income and expenditure flows of the charity and on its short to medium term financial stability in assessing going concern (see below).

31

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, 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 and adapting our working practices to meet the challenges as we move forward into the future and the new hybrid working era.

Therefore, the financial statements for the year ended 31st December 2021, 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. 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. 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.

32

INCOME. (continued)

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, unless there are performance related, donor imposed or time-related conditions preventing their recognition in the current accounting period. In this 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.

Contract income received in advance of delivery of the service is deferred and is recognised in the period to which it relates.

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.

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 provided 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 the partner submits a report to justify the expenditure.

33

EXPENDITURE AND THE BASIS OF APPORTIONING COSTS. (continued)

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:

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

34

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 1[st] of the month rate. At the balance sheet date, any cash or other monetary items held are translated at the closing spot rate.

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.

35

FINANCIAL INSTRUMENTS.

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

Financial assets – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

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

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

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 Charity in the future. The pension scheme is independently administered, and the assets of the scheme are held separately from those of the Charity.

TAXATION.

As a registered charity, 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.

OPERATING LEASES.

Rentals paid under operating leases are charged to the statement of financial activities as they fall due.

36

NOTES TO THE FINANCIAL STATEMENTS.

1) INCOME FROM DONATIONS.

Regular donations and
collections
Non-regular donations and
legacies		 Unrestricted
funds
Restricted
funds
2021
total
funds
Unrestricted
funds
Restricted
funds
2020
total
funds
£
£
£
£
£
£
561,839
-
561,839
566,258
-
566,258
65,622
-
65,622
89,175
-
89,175
627,461
-
627,461
655,433
-
655,433

2) INTEREST RECEIVABLE.

NTEREST RECEIVABLE.
Bank interest Unrestricted funds
2021
total
funds
2020
total
funds
£
£
1,092
1,470
1,092
1,470

3) GRANTS (ALL INSTITUTIONAL).

2021 2020
Unrestricted Restricted total Unrestricted Restricted total
funds funds funds funds funds funds
£ £ £ £ £ £
ACCESS, Department of Foreign Affairs &
Trade (Australia) - 200,928 200,928 - 193,664 193,664
CAFOD - 28,127 28,127 - - -
CBM (Bangladesh) - - - - (17,572) (17,572)
Children in Crisis (Tanzania) - 3,508 3,508 - 7,763 7,763
Comic Relief - 174,376 174,376 - 335,927 335,927
Commonwealth Secretariat - 35,000 35,000 - 4,000 4,000
Disability Rights Advocacy Fund - 84,380 84,380 - 40,479 40,479
European Commission - 85,933 85,933 - 222,162 222,162
Foreign, Commonwealth and
Development Office (FCDO) - 927,665 927,665 - 1,135,963 1,135,963
Foreign & Commonwealth Office - - - - 12,239 12,239
Mendip District Council - - - 7,000 - 7,000
See You Foundation (funded by Foreign
Affairs of Netherlands) - 221,909 221,909 - - -
USAID - - - - 149,547 149,547
United Nations Trust Fund - 59,847 59,847 - 131,018 131,018
Wellspring Philanthropic Fund - 180,937 180,937 - 120,936 120,936
2,002,610 2,002,610 7,000 2,336,126 2,343,126

37

4) GOVERNMENT GRANTS.

The charitable company receives government grants, defined as funding from the Foreign Commonwealth & Development Office (previously, Department for International Development), the United Nations Trust Fund, the Department for Foreign Affairs & Trade, the European Commission and the Commonwealth Secretariat to fund charitable activities. The total value of such grants in the period ending 31 December 2021 was £1,309,373 (2020: £1,855,593). There are no unfulfilled conditions or contingencies attaching to these grants in 2021.

5) EXPENDITURE ON RAISING FUNDS.

XPENDITURE ON RAISING FUNDS.
Regular donor acquisition and support
Trust development
Non regular donations
Communication and promotional activities		 Unrestricted funds
2021
total
funds
2020
total
funds
£
£
189,886
156,929
6,720
7,811
9,132
4,827
6,266
4,764
212,004
174,331

6) GRANTS AND PAYMENTS TO/ON BEHALF OF PARTNERS FROM PROGRAMMES.

Paid from ADD’s country programmes to Institutions:
Bangladesh
Young Power in Social Action (YPSA)
Nasirullah Psychotherapy Unit (NPU)
Innovation for Wellbeing Foundation (IWF
Disabled Child Foundation (DCF)
Grants < £3,000
Cambodia
KHEMERA
AS Aphivat Strey
Battabang Women with Disabilities (BWWDF)
Grants < £3,000
Sudan
Women with Disability Association (WWDA)
Sudanese National Union of Physically Disabled
Grants < £3,000
Tanzania
Uganda		 Unrestricted funds
2021
2020
£
£
64,812
24,685
13,728
12,403
9,033
4,963
9,507
-
3,322
-
-
6,185
13,539
-
-
-
13,539
26,738
3,773
3,455
3,105
16,405
9,306
9,306
-
-
24,362
15,117
3,099
6,146
15,658
28,718
-
-
103,315
89,325

38

GRANTS AND PAYMENTS TO/ON BEHALF OF PARTNERS FROM PROGRAMMES (continued).

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. We have listed those organisations who received grants larger than £3,000 in the year.

7) TOTAL EXPENDITURE.

OTAL EXPENDITURE.
International Expenditure on Support 2021 total
programmes raising funds costs funds
£ £ £ £
Staff costs (note 9) 970,254 59,606 478,106 1,507,966
Office running costs 169,041 18,151 62,526 249,718
Transport & travel 25,679 445 1,974 28,098
Payments payable to partners (note 6) 103,315 - - 103,315
Field operations 696,511 - 2,027 698,538
Exchange loss/(gain) 86 - (27,511) (27,425)
Fundraising activities 160 21,839 - 21,999
Consultancy & external advice 67,276 92,206 75,515 234,997
Governance - Trustees' costs - - 306 306
Governance – Audit 20,457 - 9,638 30,095
Subtotal 2,052,779 192,247 602,581 2,847,607
Support costs 582,824 19,757 (602,581) -
2,635,603 212,004 - 2,847,607

Prior period comparative

Staff costs (note 9)
Office running costs
Transport & travel
Payments payable to partners (note 6)
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

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.

39

TOTAL EXPENDITURE (continued)

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.

8) NET INCOME/EXPENDITURE FOR THE YEAR.

This is stated after charging:

2021 2020
£ £
Depreciation 2,966 2,796
Trustees’ reimbursed expenses: 306 -
Auditors’ remuneration:
. Statutory audit services
.. Current year 15,600 16,560
.. Overseas auditors 18,315 16,804

9) STAFF COSTS AND NUMBERS.

The total staff costs of centrally contracted 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 for centrally contracted employees
Total staff & salary costs for field staff based overseas		 2021
2020
£
£
639,211
560,946
58,133
55,978
31,971
31,281
729,315
648,205
36,449
22,018
765,764
670,223
742,202
808,850
1,507,966
1,479,073

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

2021 2020
Number Number
£60,001 - £70,000 1 -
£70,001 - £80,000 1 1
£100,001 - £110,000 - 1
£120,001 - £130,000 1 -

Pension contributions totalling £8,714 (2020: £8,491) were paid in respect of these higher paid employees all of whom were accruing benefits under a defined contribution pension scheme.

40

STAFF COSTS AND NUMBERS (continued)

Total employee benefits paid to key management personnel, being members of the charitable company’s senior management team, in the year totalled £380,515 (2020 restated: £313,763). During the year ended 31 December 2021 1 trustee was reimbursed £306 for trustee meeting costs (2020: £NIL).

The prior period comparatives have been restated for the key management personnel remuneration and the higher earners disclosures to include employer's NI as an employee benefit.

Total redundancy and termination payments, including amounts paid under contractual termination provisions to field staff based overseas, made in the year were £112,516 (2020: £44,966).

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 – centrally contracted
Fundraising – centrally contracted
Support – centrally contracted		 2021
2020
FTE
FTE
57
69
2
2
2
1
9
10
70
82

10) 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.

11) TANGIBLE FIXED ASSETS.

Cost or valuation
At 1 January 2021
Additions in year
Disposals in year
At 31 December 2021
Depreciation
At 1 January 2021
On disposals
Charge for year
At 31 December 2021
Net book values
At 31 December 2020
At 31 December 2021		 Office and
computer
equipment
Overseas
assets
Total
£
£
£
66,341
159,817
226,158
2,486
-
2,486
(18,260)
-
(18,260)
50,567
159,817
210,384
61,183
159,817
221,000
(18,260)
-
(18,260)
2,966
-
2,966
45,889
159,817
205,706
5,158
-
5,158
4,678
-
4,678

41

12) DEBTORS.

Other debtors
Prepayments
Accrued income
Overseas advances
CASH AT BANK AND IN HAND.
UK current accounts and cash in hand
Overseas accounts
UK deposit accounts
Overseas cash		 2021
2020
£
£
514
105
45,823
53,342
240,026
331,591
33,237
38,084
319,600
423,122
2021
2020
£
£
362,107
306,953
161,461
232,204
349,886
471,577
536
536
873,990
1,011,270

13) CASH AT BANK AND IN HAND.

14) CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR.

Payroll taxes
Trade creditors
Accruals
Other creditors		 2021
2020
£
£
15,585
16,763
21,475
28,278
66,480
74,156
7,128
5,817
110,668
125,014

15) PROVISIONS.

Overseas staff terminations At 1
January
2021
Incoming
(charge for
the year)
Outgoing
(utilised)
At 31
December
2021
£
£
£
£
146,549
13,783
(27,463)
132,869
146,549
13,783
(27,463)
132,869

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15) PROVISIONS. (continued)

Prior period comparative

PROVISIONS.(continued)
rior period comparative
Overseas staff terminations
Project commitments		 At 1
January 2020
Incoming
(charge for
the year)
Outgoing
(utilised)
At 31
December
2020
£
£
£
£
149,333
42,182
(44,966)
146,549
4,715
-
(4,715)
-
154,048
42,182
(49,681)
146,549

Overseas staff terminations only become due when a staff member leaves the organisation and are usually part of a legal requirement in each of the countries we work. It is unlikely that these would all be due for payment at any one time unless we closed a Country Office and made all the staff redundant.

16) RESTRICTED FUNDS.

At 1 At 31
January December
2021 Income Expenditure 2021
£ £ £ £
UK 101,098 503,149 (420,359) 183,888
Bangladesh 98,695 543,637 (509,890) 132,442
Cambodia 166,194 260,775 (348,902) 78,067
Sudan (18,398) 389,310 (348,350) 22,562
Tanzania 193,569 102,115 (295,684) -
Uganda 19,085 203,624 (222,709) -
560,243 2,002,610 (2,145,894) 416,959

Prior period comparative

Restated:
Restated: At 31
At 1 Restated: December
January 2020 Income Expenditure 2020
£ £ £ £
UK 140,312 459,446 (498,660) 101,098
Bangladesh 205,752 648,295 (755,352) 98,695
Cambodia 61,426 324,684 (219,916) 166,194
Sudan 4,966 391,941 (415,305) (18,398)
Tanzania 210,599 320,536 (337,566) 193,569
Uganda (4,817) 191,224 (167,322) 19,085
618,238 2,336,126 (2,394,121) 560,243

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

The prior period comparative figures have been restated in order to allocate the temporary foreign currency gains across the different locations. The restatement does not affect the total restricted fund balance at the start or end of the period.

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16) RESTRICTED FUNDS. (continued)

ADD BANGLADESH RECEIVED FUNDING FROM :

ADD CAMBODIA RECEIVED FUNDING FROM:

ADD SUDAN RECEIVED FUNDING FROM:

ADD TANZANIA RECEIVED FUNDING FROM:

44

16) RESTRICTED FUNDS. (continued)

ADD INTERNATIONAL RECEIVED FUNDING FROM:

17) ANALYSIS OF NET ASSETS BETWEEN FUNDS.

2021
Restricted General total
funds fund funds
£ £ £
Fund balances at 31 December 2021 are represented by:
Tangible fixed assets - 4,678 4,678
Current assets 416,959 776,631 1,193,590
Current liabilities - (110,668) (110,668)
Provisions - (132,869) (132,869)
416,959 537,772 954,731

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ANALYSIS OF NET ASSETS BETWEEN FUNDS. (continued) Prior period comparative

rior period comparative
Fund balances at 31 December 2020 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

18) LEASING COMMITMENTS.

The charitable company is committed to making lease payments of £38,346 (2020 restated: £52,159) over the life of the leases with respect to land and buildings. The prior period comparatives have been restated to account for break clauses in the rental lease agreements.

The obligation to make these payments is as follows:

Due within one year
Due within 2-5 years		 2021
2020
£
£
38,346
37,204
-
14,955
38,346
52,159

19) RELATED PARTY TRANSACTIONS.

There were no related party transactions in the current or prior period.

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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