Company number: 2097222 Charity number: 327421
## **ARTICLE 19**
## **Report and Financial Statements**
## **31 December 2021**
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## **ARTICLE 19**
## **Administrative details**
## **For the year ended 31 December 2021**
## **Abbreviations**
|CSO|Civil Society Organisation|
|---|---|
|FGPC|Finance and General Purposes Committee|
|FoE|Freedom of Expression|
|HLPF|UN General Assembly High Level Political Forum|
|HRD|Human Rights Defender|
|HRIA|Human Rights Impact Assessments|
|ICCPR|International Covenant on Civil and Political Rights|
|ICT|Information and Communications Technology|
|IMC|Independent Media Commission|
|ITU|International Telecommunication Union|
|LGBTQI+|Lesbian, gay, bisexual, transgender, queer, and intersex|
|MFC Consultative Network|Media Freedom Coalition Consultative Network|
|MoU|Memorandum of Understanding|
|RTI|Right to Information|
|UNSR|UN Special Rapporteur|
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## **ARTICLE 19**
## **Administrative details**
## **For the year ended 31 December 2021**
**Company** 2097222 **number Charity number** 327421 **Registered office** Sayer Vincent, Invicta House, 108-114 Golden Lane, London EC1Y 0TL **and operational** (from 16 July 2021) **address** Free Word Centre, 60 Farringdon Road, London EC1R 3GA (until 16 July 2021) **Trustees** Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Paddy (John) Coulter Chair Mark Salway Treasurer, Chair of the Finance and General Purposes SubCommittee Gayathry Venkiteswaran Chair of the Governance Sub-Committee Nadezda Azhgikhina Arturo Franco Resigned 16 June 2022 Abir Ghattas David Kaye Robert Latham Frank Ledwidge Resigned 31 July 2021 Lucia Nader Appointed 16 June 2022 Charles Onyango-Obbo Appointed 25 June 2021 Aparna Ravi Lesley Swarbrick David Viney **Secretary** Quinn McKew **Principal staff** Quinn McKew Executive Director Barbora Bukovska Senior Director of Law and Policy Amir Bayani Director of Resilience (from September 2021) David Diaz-Jogeix Senior Director of Programmes Nicola Dodero Director of Finance Maxine Harrington Director of Human Resources Neil Smith Chief Operating Officer (from January 2021) Sara Wilbourne Director of Communications & Campaigns
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**ARTICLE 19**
## **Administrative details**
**For the year ended 31 December 2021**
**Bankers** Barclays Bank PLC, London **Solicitors** Bates Wells 10 Queen Street Place London EC4R 1BE **Auditor** Sayer Vincent LLP Chartered accountants and registered auditors Invicta House 108 – 114 Golden Lane London EC1Y 0TL
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
The Trustees, who act as the Directors of the Company for the purposes of the Companies Acts, and trustees for charity law purposes, submit their annual report and the financial statements of ARTICLE 19 for the year. This includes a strategic report. The Trustees confirm that the annual report and financial statements of the Charity comply with current statutory requirements, the requirements of the Charity's governing document and the provisions of the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
## **Objectives and Activities**
ARTICLE 19’s objectives are to educate the public and protect freedom of expression, access to information and related rights, throughout the world, particularly as defined in Article 19 of the Universal Declaration of Human Rights and in international and regional human rights law. In our digital era, ARTICLE 19 is an international think-do organisation that propels the freedom of expression movement locally and globally to ensure all people realise the power of their voices.
## **Vision and Strategy**
ARTICLE 19’s vision is for a world in which all people can speak freely, actively engage in public life, and express themselves without fear or discrimination.
Our strategy, The Expression Agenda, began in 2015 and concluded in December 2021. The strategy covered five thematic areas, with a gender theme cross-cutting all of the themes. The focus of the five thematic areas have been:
- **Civic Space** - we help secure the right to participate in public life, to engage in debate, criticise, protest and dissent, in physical and online space.
- **Protection** – we continue to defend those on the front line, ensuring that violations are reported, and perpetrators held to account.
- **Digital** - we embed human rights principles into law and process, engaging governments, businesses and the technical community.
- **Transparency** – we work to ensure that communities and individuals can enjoy their right to information and hold those in power accountable for their actions.
- **Media** – we work to ensure that media pluralism, freedoms and the public interest are protected and promoted in a globalised, digitalised and converged landscape.
In 2021, ARTICLE 19 continued our commitment to the inclusion of a strong focus on gender and diversity via our MX Method strategy. Our work in this area had a particular focus in 2021 on combatting online violence against women and LGBTQI+ persons, as well as researching media stigma against LGBTQI+ individuals in Africa.
The results of the external evaluation in 2021 of our Expression Agenda strategy have contributed to our new strategy, “The Power of Our Voices“ which was approved by the International Board in December 2021 and covers the period 2022-2025.
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
The activities currently carried out for the public benefit by the charity and to make freedom of expression a reality all over the world are broadly categorised as follows:
- Championing freedom of expression and information, as a fundamental human right that is also central to the protection of other rights.
- Monitoring, researching, publishing, lobbying, campaigning, setting standards and litigating on behalf of freedom of expression wherever it is threatened.
- Providing expertise on international human rights standards and for legislation that protects the right to speak and right to know in countries emerging from conflict, war and genocide or repression.
- Working to safeguard media pluralism, independence and diversity of views.
- Providing legal and professional training and mentoring to national actors, including nongovernmental organisations, judges and lawyers, journalists, media owners, public officials and parliamentarians.
- Promoting the right to know of poorer communities to ensure transparency and strengthen citizens' civic participation.
ARTICLE 19 works to achieve its charitable objectives in two ways:
- (1) through direct delivery especially in relation to work in areas where it has its own staff; and
- (2) through working with partner organisations, including the provision of financial and capacity support.
In setting ARTICLE 19’s programme each year, ARTICLE 19 has regard to the Charity Commission’s general guidance on public benefit. The Trustees review the programmes undertaken by ARTICLE 19 to ensure that they fall within the Charity’s charitable objects and aims.
## **Partnership**
Work carried out by partner organisations is especially useful in jurisdictions where ARTICLE 19 has no established infrastructure for managing staff and operations or where partners provide knowledge and skills that complement ARTICLE 19’s own international comparative perspective. Partnership also assists in maximising the number of beneficiaries reached. In turn, partnership has both defined and strengthened ARTICLE 19’s effectiveness and legitimacy.
ARTICLE 19 only works with trusted national counterparts with good financial monitoring systems in place. All partners sign a Memorandum of Understanding (MoU) with ARTICLE 19 on financial procedures to be followed. ARTICLE 19 seeks to conduct a due diligence assessment prior to signing any MoU with implementing partners assessing their governance and internal controls measures. Any improvements identified are included in the MoUs and ARTICLE 19 aims to provide organisations with capacity building in those areas, as needed. ARTICLE 19 requires partners to be fully accountable to ARTICLE 19 for their income and expenditure transactions as part of their financial management.
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **Structure, Governance and Management**
## **Governing Document**
ARTICLE 19 is a charitable company limited by guarantee (no 2097222). It was set up by a Memorandum of Association on 5 February 1987. ARTICLE 19 was registered as a charity on 7 January 1987 (registered charity number 327421).
## **Structure of the Organisation**
ARTICLE 19’s International Office (based in London):
- i) hosts ARTICLE 19 international support teams (including Law and Policy; Communication and Campaigns; People and Culture; Projects, Finance and Operations) and the Executive Director
- ii) hosts the Regional Team for Europe and Central Asia
- iii) directly manages the Regional Team for Southeast Asia
- iv) provides financial, operational and fundraising support to Regional Offices in Bangladesh, Brazil, Kenya, Mexico, the United States, Senegal, the Netherlands and Tunisia.
The Regional Offices are of two types:
- i) Subsidiaries: these have local governance boards and take independent management decisions from the International Office. They are treated as subsidiaries in the accounts. These include ARTICLE 19 Brazil and South America (ARTIGO 19 Brasil), ARTICLE 19 Mexico and Central America (ARTICULO 19 Campaña Global por la libertad de expression) and ARTICLE 19 Eastern Africa (based in Kenya).
- ii) Branches: these include ARTICLE 19 Bangladesh and South Asia, ARTICLE 19 Senegal and West Africa, ARTICLE 19 Middle East and North Africa, ARTICLE 19 Inc. (USA) and Stichting ARTICLE 19.
Affiliate Members are those regional offices who have a governance or advisory board from which they appoint a representative to the International General Assembly. Affiliates are ARTIGO 19 Brasil, ARTICULO 19 Campaña Global por la libertad de expression, ARTICLE 19 Eastern Africa, ARTICLE 19, Inc., ARTICLE 19 Middle East and North Africa.
The International General Assembly comprises the Trustees of the UK charity together with nominated representatives from Regional Office Boards.
## **Board of Trustees**
ARTICLE 19 is governed by an International Board of Trustees (‘Directors’ under company law). The International Board of Trustees meets twice a year to provide strategic direction for the organisation, and to monitor the work of the Executive Director and management team.
Our Finance and General Purposes Committee (FGPC) is chaired by the Treasurer, Mark Salway, and is responsible for overseeing financial, audit, human resources and operational matters; this meets a minimum of four times a year, with additional meetings as required. The Governance Sub-Committee is chaired by the Vice Chair, Gayathry Venkiteswaran, and is charged with overseeing and measuring the overall effectiveness of the governance mechanisms of the organisation and recommending new Trustees for appointment to fill vacancies. The committee meets at least three times a year.
In July 2021 one Trustee resigned, with an additional resignation due to retirement in June 2022. One new trustee was appointed in June 2021, and a further one was appointed in June 2022. Our Board at the time of
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
signing in 2022 consisted of:
- Paddy Coulter (Chair), Director, Oxford Global Media
- Mark Salway FCA (Treasurer), Experienced financial consultant and lecturer Bayes Business School
- Gayathry Venkiteswaran (Vice Chair), Associate Professor of Media & Law, University of Nottingham (Malaysia Branch)
- Nadezda Azhgikhina, Journalist and human rights activist
- Abir Ghattas, Digital Technologist
- Prof. David Kaye, Professor of Law
- Robert Latham, Lawyer specialising in media and intellectual property law
- Lucia Nader, Political scientist
- Charles Onyango-Obbo, Author and journalist
- Aparna Ravi, Lawyer specialising in corporate finance and governance
- Lesley Swarbrick, Writer and HR expert (special responsibility for human resources on the Board)
- David Viney, Digital Technologist
## **Selection and appointment of Trustees**
There is a documented and structured process for the appointment of new Trustees. Nominations and recommendations are first made by existing members and from open recruitment. Their CVs are then circulated to the Governance Sub-Committee of the Board, which arranges for potential candidates to be interviewed for their suitability. The Governance Committee then proposes selected candidates to the General Assembly, who in turn recommend them to the Trustees upon agreement. Trustees will then vote to appoint a new Trustee. New Trustees are confirmed at the Annual General Meeting of ARTICLE 19.
## **Induction and training of Trustees**
Newly appointed UK Trustees meet with the Chair, the Executive Director and staff members as part of a documented and structured induction programme; they receive key ARTICLE 19 organisational and programmatic documents. For non-UK based Trustees, the induction programme process is commenced virtually and completed in person at the time of the next Board meeting.
## **Setting Remuneration of Key Management Personnel**
The FGPC sets the pay of the Executive Director and reviews this on a periodic basis taking into account market conditions and pay in similar organisations. The pay of other key management personnel is determined by a salary scale that is updated annually in line with inflation and applied to all staff.
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **Achievements and performance against specific objectives**
We view freedom of expression around the world in 2021 as being at a critical juncture. Our analysis has shown that democracy is under attack, authoritarianism is on the rise, and powerful actors - from governments to Big Tech – are battling to control the narrative. People who challenge power and those most at risk of discrimination are disproportionately affected.
Six years ago, ARTICLE 19 launched its strategy for 2015-2021 called The **Expression Agenda.** The strategy set out our vision of a world in which all people could freely express themselves and meaningfully engage in public life without fear or discrimination.
Each year since 2018, our **Global Expression Report** has investigated the state of freedom of expression around the world and ranked countries according to how free each and every person is to write, post online, march, teach, access and share information, and hold the powerful to account.
The developments we have witnessed over the course of The Expression Agenda are truly chilling. Democratic institutions have been hollowed out, media and civil society attacked, and checks and balances on executive powers eroded.
The Global Expression Report 2021 found that:
- **Two-thirds of us, or 4.9 billion people, now live in countries that are Highly Restricted or In Crisis** – more than at any time in the last decade.
- The level of democracy the average citizen enjoyed in 2020 was down to **levels last found around 1990** .
- The global score for Freedom of Expression and the Right to Information is at its **lowest point since 2010** .
Since March 2020, states worldwide have used the Covid-19 pandemic as an excuse to crack down on freedom of expression at the time we most needed clear and inviolable protections. But the pandemic hit a world already fraught with populist strongmen hostile to journalism and science, the denigration of dissent, and an erosion of multilateral engagement and trust.
But despite these grim developments, hundreds of actors and activists are making tremendous strides in strengthening media literacy, improving corporate transparency, tackling hate speech, and regulating giant companies.
Internally, ARTICLE 19 has adapted its processes to prioritise well-being and flexibility, offering tailored support to teams around the world. While many have struggled with adverse circumstances, particularly our teams in Brazil and Bangladesh who have faced uniquely dark situations, all without exception have risen to the challenges of the pandemic and continued to deliver.
Highlights of our performance against each goal is outlined below; full details of ARTICLE 19’s achievements in 2021 can be found in our Annual Report. From campaigns supporting indigenous people in the Amazon to television broadcasts in Bangladesh, and from disinformation trackers in Western Africa, to an award-winning health channel in Tunisia, the breadth of work as seen in this year’s report highlights the remarkable resilience and resolve demonstrated by teams across the organisation.
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **GOAL 1: CIVIC SPACE – RESULT AGAINST STRATEGIC OUTCOMES AND 2021 ACTIVITIES**
## **1.1 PROTEST: ACHIEVED**
Protecting the right to protest has been a central issue for our organisation, starting with developing the Right to Protest Principles in 2016 and resulting in most regional offices working on this issue, due to many countries now being at a crisis point with the government using the pandemic to put additional restrictions in place. In 2021, we continued to be a member of the Vuka! Coalition Network and have led in producing a guide on the right to protest for over 200 coalition members to share with their partners.
Our Brazil and South America office had a significant litigation success with the landmark ruling for photojournalist, Alex Silveira, when Brazil’s Federal Supreme Court ruled that the state must be held responsible when journalists are injured by security forces while covering demonstrations. We have been following the case since 2014 as an _amicus curiae_ and not only does this bring the journalist long-awaited justice, it will serve as a precedent for similar cases currently going through the courts, as well as for future cases. In Kenya, there has been work with women and sexual and gender minorities HRDs. For example, we have worked with a group of women who were campaigning against killing of women allegedly involved in witchcraft, and more broadly countering negative narratives about women being part of protest.
## **1.2 PARTICIPATION: ACHIEVED**
The main work under this outcome came from the regional offices, due to a lack of opportunity at the global level to contribute to standard setting. However, the importance of this work has grown in the last two years, with governments infringing on the basic principles. One focus at the international level has been our facilitation of the Civic Space and Human Rights breakout group during the C7 (Civil Society stream of the G7). The event hosted by Bond with support from the UK Cabinet office, brought together civil society recommendations to feed into the G7 communiques. The G7 final communique includes language on commitments on open societies, though decisive action is still to be seen.
Our work has progressed well in our Senegal and West Africa, Brazil and South America and Kenya and East Africa offices. After almost a decade of tireless advocacy engaging a range of stakeholders, including people with disabilities in the Gambia, The Gambia National Assembly passed the Persons with Disabilities Bill which protects their fundamental rights and freedoms. In Brazil, we have offered training on the Escazú Agreement - one of the focuses is the promotion of convention 169 on informed participation of populations potentially affected by major works. In Kenya, in partnership with the Kisumu County government, we drafted and presented the Public Participation Act.
## **1.3 EQUALITY AND NON-DISCRIMINATION: ACHIEVED**
A focus under this outcome has been working on Hate Speech, including the creation of a toolkit which we has been adapted to the context of our regional offices. A successful example from Tunisia has been the training of the Ministry of Education on how to counter hate speech, which is now integrated into the curriculum of the ministry. In West Africa, a project called Young People in Dakar focused on the increase in hate speech in various media and used toolkits to counter this. In Mexico, we focussed on disinformation and hate speech and developed and published the report, ‘Content Removal: Inequality and Exclusion from Digital Civic Space’ (Remoción de contenidos: Desigualdad y exclusión del espacio cívico digital). In Belarus, we have published a report on the right to FoE and ‘extremism’ restrictions in which it examines the interpretation of various Belarusian legislation. The report finds that the legislation fails to comply with international FoE standards going beyond the boundaries established by Articles 19 and 20 of the ICCPR.
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **GOAL 2: PROTECTION - RESULT AGAINST STRATEGIC OUTCOMES AND 2021 ACTIVITIES**
## **2.1 SELF-PROTECTION: ACHIEVED**
This outcome was mostly implemented by the regional offices, where monitoring of attacks against journalists takes place. All regional offices document attacks against journalists, with some monitoring in a more systematic way. The International Office uses the information for targeted advocacy at the UN, or other international coalitions and events. An example of a national campaign includes the
#ConocerlesEsReconocerles campaign in Mexico, which seeks recognition of the work HRDs and journalists conduct in Mexico. The campaign highlighted five emblematic cases that explain the importance of the right to defend human rights, the risks faced by defenders and journalists, and highlights how their work benefits society. The launch was shared widely and a number of HRDs and journalists participated, as did the EU Ambassador to Mexico. We delivered digital security training in Cambodia to 210 HRDs to become more secure in their work. We also focused on UN advocacy by jointly publishing a UPR mid-term report with PEN America highlighting Cambodia's regression on FoE issues. We conducted 37 online and 1 offline safety training sessions in Bangladesh. Additionally through the bridging employment initiatives 47 female journalists, who lost their job during the Covid-19 crisis, were provided training. The initiative helped them to gain technology-based skills. By the end of 2021, 10 of the journalists have returned to their profession.
At the global level, three sets of intersectional guidelines were developed; monitoring attacks against journalists; protection training; and advocacy on emblematic cases. The guidelines were led by the International Office in consultation with all regional offices.
## **2.2 MEDIA ENVIRONMENT: PARTLY ACHIEVED**
The international office aims to oversee the big picture of how this global outcome is being implemented, with regional offices implementing work on how to strengthen protection policies and protocols in media houses and with lawyers working in this area. The work for a global resource hub on the safety of journalists and HRDs has started and many resources have already been collected to be part of it. In Mexico a hub was launched last year, with one in Brazil and Bangladesh also to be published next year.
Training was provided to journalists and media associations to document Covid-19 related attacks, and subgrant provided to journalists and media houses in Sub-Saharan Africa so they can adapt and survive the crisis while enabling them to provide relevant and life-saving information on the pandemic to their audiences. We supported CSOs and media outlets in Turkey by providing legal support on criminal investigation and internet blocking. In the last 2 years, we have supported more than 100 legal cases, which impacted on the survival of CSOs in Turkey. This has been very welcomed by defendants and their families.
## **2.3 STATE & INTERNATIONAL ACTORS: ACHIEVED**
In 2021, we developed a strategic approach to advocacy in international fora to reinforce international standards. In 2021, we contributed to; the UN General Assembly on the Security of Journalists; to the UNSR report on gender, justice and FoE; to the HRC report on violence against journalists during Covid-19; and the UN Secretary General report on the safety of journalists in the digital space. As co-chairs of the MFC Consultative Network, we brought several cases of violations to the Media Freedom Coalition for them to take action and supported them in the creation of diplomatic networks on media freedom in 11 countries. We began the development of AdvoSheets, which are short guides on how to use international standards to reinforce national legislation and policies. Additionally, we provided training to the regional offices and partners on how to use the UN special procedures to promote the safety of journalists.
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
In Tunisia, after a series of consultations with the Ministry of Justice and the High Institute of Magistracy, the latter have given their agreement in principle to sign a formal partnership with us. Within it a Training for Trainers for Judges on FoE will be implemented as well as an update of the training module on FoE and information for judges, which will be adopted by the High Institute for Magistracy. In response to the Myanmar coup, we delivered nearly 20,000 GBP in emergency help to HRDs, including journalists, to assist them with relocation and enhanced personal protection. ARTICLE 19 was in a strong position to help these individuals at risk.
## **2.4 IMPUNITY: ACHIEVED**
All Regional offices have issued statements demanding justice for attacks against journalists and HRDs, and the international office has spoken at many events. We have had many successes in Mexico after a number of years advocating on behalf of different journalists; in the case of Lydia Cacho, who was arbitrarily detained and tortured in 2005, in 2021 the former Governor of Puebla Mario Marín, who is accused of torturing the journalist, was arrested in Acapulco. Through legal advocacy over 11 years, the UN Human Rights Committee ascertained the responsibility of the Mexican State for the human rights violations committed against Lydia. There is no precedent of a former Governor being detained on charges of torture, let alone a high-level official being apprehended for an attack against a journalist. Another example is the journalist Carmen Olsen, whose case we have accompanied for 8 years, was acquitted of the crime of "outrages to authority", an important achievement for FoE against criminalization of journalism.
In Togo, our actions contributed to the release of journalists, Joe Egah and Ferdinand Ayité who had been imprisoned for defamation and offence against authority and Isidore Kouwonu who had been placed under judicial control. In Kenya, we published several articles on thematic issues including the following; Prosecute, reject impunity for crimes against journalists and ‘Why Kenya must Address Online violence against women ahead of elections’.
## **2.5 ENVIRONMENTAL HUMAN RIGHTS DEFENDERS (EHRDs): ACHIEVED**
The Aarhus Convention meeting of parties agreed in November 2021 to create a new Special Rapporteur for Environmental HRDs. The new rapporteur will have a number of functions and powers to protect Environmental HRDs and we hope will set a good model for other regions. Additionally, the Escazú Agreement was ratified by additional states and went into force in 2021. It includes extensive obligations to protect Environmental HRDs that should significantly improve national legal obligations to act to protect them.
## **GOAL 3: DIGITAL - RESULT AGAINST STRATEGIC OUTCOMES AND 2021 ACTIVITIES**
## **3.1 DIGITAL CONTENT REGULATION: ACHIEVED**
We have provided a significant contribution to the work of the Council of Europe Committee of Experts on FoE and Digital Technologies, and elements of our calls have been upheld in the final Recommendations issued by the expert group and approved by the Committee of Ministers. We have decided to join a number of regional coalitions including the Arab Alliance for Digital Rights and The Middle East and North Africa Coalition to Combat Digital Surveillance which aims to advocate for the end of sales of digital surveillance tools to repressive governments in the region, fight for a safe an open internet, defend human rights, and project HRDs, journalists, and internet users from governments’ prying eyes. In December 2021, we launched our new policy, Taming Big Tech which outlines how to regulate the content moderation of social media platforms in a way that protects the right to freedom of expression and information.
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **3.2 PRODUCTS & SERVICES: PARTLY ACHIEVED**
At a global level, we have seen progress between business and human rights organisations, however the area of products and services is one of the most complex areas to make progress for human rights because it is extremely difficult to get meaningful adoption through the business sector. We have pushed for the adoption of Human Rights Impact Assessments (HRIA) for private sector infrastructure providers. This will have an impact on the less visible (to the public) products and services (such as content delivery networks) which are not usually closely scrutinised. We have been involved in conversations with infrastructure providers but were unable to conduct HRIAs as it requires physical presence to conduct these workshops which was not possible during Covid-19.
We had more success at the regional level where, in Brazil we implemented community radio in eight communities of Brazil’s Amazon region. We published, ‘Emotional Entanglement: China’s emotion recognition market’, analysing the design and development of the technology and its implication for human rights. The report provides evidence and analysis of the burgeoning market for emotion recognition technology in China and its detrimental impact on human rights. We published an outcome report following business and human rights engagement with infrastructure service providers SIDN, Blacknight and PIR to present the first-of-its-kind methodology for a sub-sector that is often overlooked with regards to human rights due diligence. The report highlighted how the three companies updated their policies in line with international human rights standards, implemented improvements to their transparency reporting procedures, and engaged with new stakeholders and forums.
## **3.3 INTERNET GOVERNANCE, MANAGEMENT AND STANDARDS: ACHIEVED**
This outcome has resonated well with the donor community as it has been well funded enabling us to achieve all international targets. At the regional level, we organised a strategic cross-sector dialogue with actors working to expand universal connectivity in South and Central America. The dialogue shared knowledge and experiences to address the challenges and gaps of existing policies and regulatory frameworks which have prevented universal access. The result has been both a consensus and further collaboration to shape connectivity policies for local and global contexts.
In the ITU Telecommunication Standardization Sector (a body that coordinates standards for telecommunications and Information Communication Technology), we worked to ensure that four strands of work were blocked from moving forward as the work items would have normalised biometric mass surveillance and centralised surveillance systems. In Mexico, we have actively participated in international Internet forums such as Mozfest to deal with technology and human rights issues from the perspective of the Global South. This has opened the doors to discussions that were previously focused on the vision of the Global North.
## **3.4 ACCESS: PARTLY ACHIEVED**
We successfully advocated for the inclusion of community networks and small internet service providers as viable actors to expand connectivity in a final International Telecommunication Union (ITU) Study Group 1 report despite pushback from certain Member States. We published a study focused on analysing Community Networks initiatives as a path to the democratisation of access to the Internet in Brazil. The research encompassed themes such as digital divide, public policies for connectivity, and telecommunications infrastructure, which are basic matters to be considered when discussing Internet and grassroots movements/organisations. We produced a report on the digital divide within Mexico, to highlight how this impacts on human rights exercised through and with the use of ICT that mainly affects the states located in the southeast region.
## **GOAL 4: TRANSPARENCY RESULT AGAINST STRATEGIC OUTCOMES AND 2021 ACTIVITIES**
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **4.1 SUSTAINABLE DEVELOPMENT: SIGNIFICANT PROGRESS**
We performed well at the regional level. The model transparency law produced by the Organisation of American States and the Tromso convention were both important breakthroughs with significant ARTICLE 19 engagement. In April 2021, the Escazú Agreement came into force in Latin America and the Caribbean. The Agreement is binding and includes an enforcement mechanism, making it a strong tool to protect environmental human rights defenders. ARTICLE 19’s regional offices in Mexico and Brazil worked closely on its creation, development, and now enforcement. In October 2021, the UN Economic Commission for Europe’s Aarhus Convention Meeting of Parties approved the creation of a new Rapid Response Mechanism to tackle attacks against environmental human rights defenders in Europe. This will include not only an enforcement mechanism but also the creation of a new Special Rapporteur dedicated to protecting environmental human rights defenders. ARTICLE 19 held the first ever side event at an Aarhus meeting in 2014, which focused on the need to protect environmental human rights defenders, so we warmly welcome this development.
Regionally, Kenya worked with the government to draft regulations on the new national Access To Information law and subsequently helped train national government officials in its use. In Mexico, The Proactive Transparency project underwent an internal review and a new strategy was developed in 2020. The new implementation methodology was first implemented in Chiapas, followed by Yucatán and Oaxaca.
However, we did not secure any new commitments from the UN on transparency related issues. There was also no HLPF resolution in 2020, because Covid-19 prevented negotiations from moving, and in what can be seen as a climb down on commitments, it was agreed that the UN global pact on the environment would be demoted to a declaration rather than a binding treaty.
## **4.2 TRANSPARENCY FOR ACCOUNTABILITY: SOME PROGRESS**
The process of discussing, drafting and enacting comprehensive right to information laws and most related legislation has stalled due to the pandemic. However, the Covid-19 outbreak generated a renewed interest in transparency, health information and governance-related issues as many governments undertook responses that hinder the right to information. This has generated a lot of attention and we have been repeatedly asked about recommendations on how to face the emergency and which positive steps governments should take to ensure the public's right to know necessary to inform and respond to the pandemic according to international standards and best practices.
International bodies have highlighted access to information as crucial to fighting the pandemic. UN bodies such as the UN Secretary General and the World Health Assembly, the decision making body of the WHO, have all recognised its importance, as have bodies such as United Nations General Assembly Special Session and the Financial Accountability, Transparency and Integrity panel, both of whom were heavily engaged through both public lobbying with delegates and public advocacy.
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## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **GOAL 5: MEDIA - RESULT AGAINST STRATEGIC OUTCOMES AND 2021 ACTIVITIES**
## **5.1 REGULATION (incl. FREEDOMS): PARTLY ACHIEVED**
Our main focus has been working on a prototype Social Media Council and we have had some success within legislative circles in Ireland. One of the challenges when working in media is a context which is constantly changing. At the regional level, we produced a baseline report on the media legal environment and stakeholders in Sierra Leone that showed areas of non-compliance to international FoE standards of the new Independent Media Commission (IMC) Act. The report clearly showed the IMC lacks formal independence from political control and influence and fails to differentiate between different types of media and submits the control over all the media – press, broadcast and online media – to control of one regulator. In Tunisia, we equipped the Press Council with a pocket manual on the treatment of complaints and provided training to the Press Council members to ensure their understanding of the mechanisms of complaints management in line with the principles of the ethical charter and the rules of procedure.
In Bangladesh, we conducted research on the local media landscape which resulted in three reports providing a mapping of media laws and regulatory bodies, a comparative analysis of laws with international standards, and identifying gaps and hindrances which are obstructing the creation of an enabling environment for journalists.
## **5.2 PLURALISM (incl. PUBLIC INTEREST): ACHIEVED**
**After our successes at the global level in previous years, our focus has turned to the regional level.** In partnership with the Institute of Press and Science of Information in Tunisia, we launched a National Academy on Investigative Journalism. The Academy will provide face to face and online trainings covering basic principles of investigative journalism and other topics such as access to information, digital data processing, corruption in public procurement, online and physical safety for journalists, media, legal and institutional framework and freedom of the press in Tunisia and ethical journalism. We published blogs, press releases, and opinion pieces on FoE in China. These included pieces targeted at the Chinese government's detention of journalists as well as the impact of big tech on FoE in China.
## **About our new strategy 2022-25**
The Power of our Voices is our new four-year organisational strategy setting out our approach to tackling some of the existential challenges facing freedom of expression around the world. Developed collaboratively with staff from across the global organisation during 2021 it builds on the successes and learnings of the Expression Agenda strategy (gained from an external evaluation carried out in 2021) and ARTICLE 19’s unique assessment of worldwide freedoms of expression and rights to information.
The new strategy has four global objectives -
- Three programmatic objectives
- Digital spaces, governance, services and technologies will be rooted in human rights and enable the diversity of human experience;
- More inclusive, protected and resilient communities and individuals feel free to express themselves in public and media;
- Accurate and reliable data and information are publicly accessible, and must empower individuals to seize their rights.
- One operational objective focussed on making ARTICLE 19 an organisation that will better connected, more agile, resilient and sustainable.
15
## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
All of which are designed to deliver three global impacts of -
- Bridging human rights and technology to define a new digital era for expression
- Protecting, empowering and connecting silenced voice and dissent Advance law and policy to protect freedom of expression and demand accountability
ARTICLE 19 will achieve all of this through delivering three types of intervention:
- By carrying out cutting-edge research and legal and policy analysis to enhance our global leadership and drive our work (THINK)
- Leading programme work on the frontlines of expression through our regional offices, demonstrating the power of our approach to protect, enhance and empower voices (DO)
- Driving the global Freedom of Expression movement forward by sparking innovation through our research, campaigns and advocacy. (PROPEL)
## **Future plans – specific goals**
|**STRATEGIC GOAL ONE: Digital spaces, governance, services and technologies will be rooted in human rights**
**and enable the diversity of human experience**|**STRATEGIC GOAL ONE: Digital spaces, governance, services and technologies will be rooted in human rights**
**and enable the diversity of human experience**|
|---|---|
|GO1.1|Influence the design, development, and deployment of Internet infrastructure and
technology so that it is more accessible and more resilient to efforts to censor people
and vulnerable communities.|
|GO1.2|Push back against the datafication of publicly deployed infrastructure and its adverse
implications on the rights of people and communities to speak, know, and protest.|
|GO1.3|Promote meaningful choice in how people and vulnerable communities can connect to
the Internet and have awareness of digital rights.|
|GO1.4|Contribute to the emergence of transparent, accountable and sustainable multi-
stakeholder local mechanisms for the oversight of content moderation on social media
on the basis of international standards on FoE and other fundamental rights (including
social media councils and local coalitions on content moderation and freedom of
expression).|
|GO1.5|Challenge violations of online freedom and online harassment in our consistent
advocacy, legal challenges and submissions with social media platforms, governments
and IGOs. Failure to include strong freedom of expression and information and privacy
provisions will be known of, and condemned.|
16
## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
|**STRATEGIC GOAL TWO: More inclusive, protected and resilient communities and individuals feel free to**
**express themselves inpublic and media**|**STRATEGIC GOAL TWO: More inclusive, protected and resilient communities and individuals feel free to**
**express themselves inpublic and media**|
|---|---|
|GO2.1|Research, explore, and test best practices and innovative approaches to respond to
hate speech, discrimination, gender-based violence (online and offline), and protection
of LGBTQ digital rights and advocated for at the international level.|
|GO2.2|Protest rights are protected, promoted, improved, and/or are made visible in target
countries as a result of the A19 flagship campaign on protest.|
|GO2.3|Target HRDs, journalists, CSOs, and youth groups and their advocaty for key civic
space challenges.|
|GO2.4|Help protect International Standards and their implementation in National Legislation
and Policies, promoting an intersectional gender approach, , in particular those related
to 1) legal harassment, 2) online harassment, 3) national security and counter terrorism,
4) protest, 5) disinformation, 6) privacy.|
|GO2.5|Protect capacities, support and coordination to reinforce protection of media,
journalists, communicators and HRDS in most vulnerable contexts and at risk because
exercising their freedom of expression.|
|GO2.6|Prosecution and Remedy: Innovative approaches are researched, explored and tested
to address impunity and ensure remedy.|
|GO2.7|Through media and information literacy (MIL), support non-expert audiences in
developing their capacity to understand key principles of freedom of expression and
media freedom, which enables them to be more critical towards the legal framework
and the reliability of information where they live.|
|**STRATEGIC GOAL THREE: Accurate and reliable data and information are publicly accessible, and must**
**empower individuals to seize their rights**||
|GO3.1|Promote right to information, access to information and freedom of expression in law
and inpractice.|
|GO3.2|Improve transparency regarding the adoption and use of digital technologies and
platforms which impact on human rights including FOE, privacy, and FOAA.|
|GO3.3|Improve access to information, public participation, protection of EHRDs, Journalists.|
|GO3.4|Journalists, lawyers, judges and civil society actors have the skills and knowledge to
request information and exercise a watchdog role over government.|
|GO3.5|ARTICLE 19 will ensure that the protection of FoE, online and offline, is integrated as a
priority in global discussions tackling mis/disinformation.|
17
## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
|**STRATEGIC GOAL FOUR: ARTICLE 19 an organisation that will better connected, more agile, resilient and**
**sustainable**|**STRATEGIC GOAL FOUR: ARTICLE 19 an organisation that will better connected, more agile, resilient and**
**sustainable**|
|---|---|
|GO4.1|CONNECTED: our communication systems, structures and ways of working are
simplified, enabling us to collaborate easily, professionally and creatively both
externally and internally across, and inside, borders, functions and teams.|
|GO4.2|AGILE: our technology, processes and knowledge management systems are being
used efficiently to enable faster, more flexible and more effective working.|
|GO4.3|RESILIENT: humanly, digitally and financially we have increased our capability to
anticipate threats to the organisation, and are better placed to manage and recover
from the impacts of sudden shocks from those threats.|
|GO4.4|SUSTAINABLE: our funding and financial costing models, infrastructure, people and
organisational values and behaviours underpin ARTICLE 19’s long term stability and
enhance its abilityto have future impact.|
These objectives and goals are shared with the reader to show the breadth and depth of our ambition. We have also set an action plan which sits behind each strategic goal. We aim to report against these fully next year.
18
## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **Financial Review**
The financial results for the year ended 31 December 2021 are set out in the Statement of Financial Activities. ARTICLE 19’s overall income of £14.2m has increased when compared with the previous year (2020: £11.8m).
This increase is due to a mix of additional income from secured grants and the timing of restricted project activity delayed from 2020 to 2021 leading to catch up from the impact of Covid-19. As in 2020 whilst our teams have successfully adapted, there are a number of activities that have had to be postponed, scaled back or delivered differently which has slowed down some of our spending, particularly on restricted grants. Income is recognised based on need, the total restricted income has increased to £10.3m (2020: £7.5m).
Unrestricted income decreased slightly to £3.9m (2020: £4.4m) – this is primarily due to one of our core donors’ grant renewal being delayed into 2022. ARTICLE 19 is very appreciative of the continued support and trust of our core donors, SIDA and NMFA which remains critical to our ability to defend Freedom of Expression and support our regional offices globally.
Total expenditure increased by £3m to £13.2m (2020: £10.2m) which was in line with increased restricted funding and mitigating some of the impact of Covid-19 due to our staff’s ability to adapt to remote ways of working. There was a slight reduction of £0.1m in unrestricted expenditure partly in response to the reduction in core funding.
As ARTICLE 19 matures as an organisation and restricted activity grows, we acknowledge that we must support this by ensuring strong and effective systems and controls, in particular effective and responsive compliance with our grant obligations. The new Strategy for 2022-2025 has explicitly addressed this need in its fourth strategic objective focussed on making ARTICLE 19 an organisation that will better connected, more agile, resilient & sustainable to create a strong foundation for our future growth.
## **Designated Reserves and Unrestricted General funds**
We hold a designated reserve to match the net book value of fixed assets. At the end of 2021, this totalled £67k (2020: £73k). Our free reserves, called General funds, total £705k (2020: £717K). Free reserves are available to provide operational working capital and to maintain ARTICLE 19’s resilience to resist the financial impact of unforeseen events or unexpected risks surrounding projected income and expenditure.
## **Reserves Policy**
The reserves policy is designed to protect the organisation against areas mentioned in our risk review along with unexpected falls in income, unplanned increases in expenditure, security risks and unexpected fluctuations in exchange rates. Our policy results in a target of £2m and in comparing this with the general funds figure of £705k there is a shortfall against our target of £1.3m.
We are developing plans to increase our sources of unrestricted funds through fundraising, increase indirect recovery rates and improve the overall cost recovery in order to achieve our reserves target. We recognise that this will take time and may, in the short term, require some investment of our existing reserves. We continue to monitor our funding position closely.
## **Changes in Group Structure**
There were no changes in our group structure during 2021.
19
## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
## **Risk Review**
ARTICLE 19 reviews and updates its risk policy and risk register on a regular basis, which covers both financial and operational risks. The most significant risks currently are:
1. **Political change in key donor countries (including ongoing impacts of Brexit, Covid-19 and the Ukraine conflict) leading to loss of Government funding due to diversion of funding priorities away from human rights work.** The UK Foreign and Commonwealth Office funding continues to be subject to political pressure to reduce their human rights funding with increased uncertainty about future funding flows and shorter term commitment to existing contracts. The Swedish government required urgent and sudden reallocation of their national budget to help support their humanitarian response to the Ukraine conflict. In both cases, we rapidly revisited contingency plans first made in 2020 and 2021 and made considered reductions to spending budgets and tightened cost control to help mitigate some of the short term impacts. We also successfully lobbied donors at risk to help justify minimising threatened cuts in funding and approached other sympathetic donors to increase their funding. The benefits of ARTICLE 19’s registration in the Netherlands as ARTICLE 19 Stichting is starting to enable us to compete for EC grants in the remaining EU member states. We maintain our commitment to the strategy of developing a High Net Worth Individual givers programme. We continue to monitor and analyse political/economic threats to donor funding and remain committed to donor diversification as a key mitigation strategy
2. **Unforeseen failure to comply with national legislation (labour, tax, reporting, charitable objectives) puts ARTICLE 19 registration, staff and partner safety or ability to deliver programme operate at risk.** Where feasible regional auditors or experts are tasked to check tax compliance regularly. Central oversight has been increased & inter-office communication on the risks improved. Central monitoring of potentially VATable activity and the VAT threshold has been stepped up and use of consultancy staff reviewed to ensure compliance with national legislations. A global legality & compliance questionnaire is being designed to circulate annually to all offices to help early identification & mitigation of high risk non-compliance.
3. **Staff or offices are subject to harassment, intimidation, legal action for defamation or inappropriate use of Strategic Lawsuits Against Public Participation (SLAAPs) by state authorities or other stakeholders which constrains our work, risks our registration or threatens our staff Security** Management Group and Global Management Team have increased monitoring & review of crisis responses for all countries where A19 has active staff. Inter-office communication and sharing of information has been speeded up to enable more rapid coordination of mutual support and access to good legal advice. The processes for ensuring good editorial control of publicly released documents are being improved and structured training programmes provided to staff globally in professional research and writing. Where possible, cost effective and available professional Indemnity insurance coverage has been put in place to mitigate cost impact
Other risks regarded as important and therefore closely monitored but with sufficient mitigation measures already being taken to manage the impact on ARTICLE 19’s operations and staff include -
- Failure to comply with donor compliance or reporting terms leads to reputation damage and loss of funding
- Loss of funds due to internal fraud, including partners
- IT failure or malicious cyber-attack leads to loss of data, including confidential information
- Lack of fully effective budget management & financial accounting systems, processes and reporting leads to core funding shortfall, organisational sustainability (overspend, underspend, incorrect allocation), poor quality compliance and decision making
20
## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
- Physical and virtual risks to our staff arising from the politically sensitive nature of our work and that of our partners
- Covid-19 impact on staff physical and mental wellbeing as well as constraining effective delivery of our programmes.
## **Covid-19 Pandemic impact - 2021/22**
The global Covid-19 pandemic continued to impact ARTICLE19’s human rights activities and the wellbeing of our staff and their families in 2021. We have made significant adaptations in our ways of working to keep our staff, partners and beneficiaries safe and their mental well-being supported as well as continuing to deliver our freedom of expression work under great challenge. The logistical difficulties of constantly evolving and changing Covid-19 precautions have been compounded by increasing worldwide governmental misuse and abuse of emergency Covid-19 legislation to stifle legitimate freedom of expression and rights to access to information.
Over the last 24 months we have had to become very adaptive and creative in the way we deliver our FoE and RTI programmes and in particular how the teams in all of our offices responded to complicated and constantly changing rules for controlling and mitigating the spread of the virus.
Governments continued to misuse and in some cases abuse emergency Covid-19 legislation to constrain legitimate rights to protest or to delay or prevent access to information. The absence, or deliberate ignoring, of “sunset” clauses in emergency legislation designed to ensure regular scrutiny and proportionality of restrictions to the levels of public safety risks has been prevalent. A number of restrictions introduced by governments at the national level, particularly in the realm of right to assembly, freedom of speech and right to information, required ARTICLE 19’s monitoring and interventions and has an impact on how we delivered our work
As in 2020, we have continued to challenge threats to freedom of expression around the world, monitoring and reporting on governments’ overreach and ensuring human rights did not become yet another victim of the virus.
The specific impacts of Covid-19 to ARTICLE 19 include:
- Noting the increase in number of restrictions introduced by governments at the national level, particularly in the realm of right to assembly, freedom of speech and right to information, requiring ARTICLE 19’s increased monitoring and interventions.
- Where feasible, teams have re-phased project activities focusing on those that can be carried out regardless of the Covid-19 restrictions and precautions and mitigated to some extent the impact on our programming through more active portfolio monitoring in close collaboration with partners and donors.
- We continued to re-purpose or move planned capacity building events for communities and partners into online spaces.
- Our advocacy work has been impacted and delayed as some events at the national and international level were postponed but, given the longer-term character of this work, the majority of it has been rescheduled or the delivery mechanism adapted. We have noted in some cases better attendance of key stakeholders due to the current situation.
- Whilst we are seeing many activities across the portfolio having to be postponed, a new set of activities is emerging due to the crisis.
A good example of this is the project **Covid-19 in Africa: Together for Reliable Information** where ARTICLE 19 joined forces with Deutsche Welle Akademie, Fondation Hirondelle, Free Press Unlimited, International Media Support, and Reporters Without Borders – in collaboration with UNESCO, and funded by the EU – to document the risks faced by journalists in 17 African countries during the Covid-19 pandemic.
21
## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
As part of this project, ARTICLE 19:
- Published human-impact briefings on attacks against journalists in eight countries;
- Analysed trends across the region in two regional reports;
- Produced legal analyses for use in advocacy work;
- Engaged in advocacy at the national, regional, multilateral, and global levels; and
- Provided essential, timely support, capacity-building training, and resources to fact-checkers to help them provide quality and reliable information about the pandemic.
Despite these challenges, ARTICLE 19’s delivery of the overall strategy remained broadly on track. And whilst there has been some adaptation across all five of the Expression Agenda strategic themes, nevertheless the number of global outcomes and international targets within the strategy remained the same.
As the Covid-19 vaccination programme and greater understanding of its vectors has begun to reduce transmission and the impact of the virus worldwide we have increased collaborative working and started a return to more face-to-face delivery of our programmes and ways of working, while at the same time we look to reduce our environmental impact and remain creative and flexible in how we deliver our work through increased use of technology and the support of our staff across ARTICLE 19.
## **Fundraising policy**
We are aware of our obligations under the Charities Act to report our fundraising policy. Our funding comes almost entirely from statutory funders, trust and foundations and companies.
During 2021 we have, for the first time, enabled individual supporters to donate to ARTICLE 19 through our website. As this is a brand new source of income for ARTICLE 19 we are not yet actively engaging with members of the public, including those who are vulnerable, around fundraising. We do not use professional fundraisers, and we received no complaints in the year.
We are also considering in future to register with the Fundraising Regulator’s Code of Fundraising Practice.
## **Statement of trustees’ responsibilities**
The Trustees (who are also directors of ARTICLE 19 for the purposes of company law) are responsible for preparing the report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 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:
- Select suitable accounting policies and applied them consistently;
- Observe the methods and principles in the Charities SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose, with reasonable accuracy
22
## **ARTICLE 19**
## **Report of the trustees**
## **For the year ended 31 December 2021**
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 detection and prevention of fraud and other irregularities.
The Trustees of the company who held office at the date of the approval of the Financial Statements as set out above confirm, so far as they are aware, that:
- There is no relevant audit information of which the charitable company's auditors are unaware; and
- They have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The report of the Trustees has been prepared in accordance with the special provisions of Part VII of the Companies Act 2006 relating to small companies.
## **Auditors**
Sayer Vincent LLP were re-appointed as the charitable company's auditors during the year and have expressed their willingness to continue in that capacity.
We would like to thank everyone, and all organisations, who support our work – donors, staff and trustees. Our work would not be possible without you.
The Trustees delegated approval of the report and financial statements to the Finance and General Purposes Committee. This report and the financial statements were approved by the Committee on 13 October 2022 and are signed on their behalf by:
Paddy Coulter (Chair)
Mark Salway (Treasurer)
23
## **Independent auditor’s report**
## **to the members of**
## **ARTICLE 19**
## **Opinion**
We have audited the financial statements of ARTICLE 19 (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
- In our opinion, the financial statements:
- Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 December 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent 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.
## **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 ARTICLE 19'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.
24
## **Independent auditor’s report**
## **to the members of**
## **ARTICLE 19**
## **Other Information**
The other information comprises the information included in the trustees’ annual report, including the strategic report other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the group financial statements themselves. 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
- In our opinion, based on the work undertaken in the course of the audit:
- The information given in the trustees’ annual report, including the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements
- The trustees’ annual report, including the strategic report, has been prepared in accordance with applicable legal requirements
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:
- Adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- The parent charitable company financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of trustees’ remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied
25
## **Independent auditor’s report**
## **to the members of**
## **ARTICLE 19**
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 group’s and the parent 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 group or the parent 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**
We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
## **Capability of the audit in detecting irregularities**
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:
- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to:
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the group from our professional and sector experience.
- We communicated applicable laws and regulations throughout the audit team and remained alert
to any indications of non-compliance throughout the audit.
- We reviewed any reports made to regulators.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal
26
**Independent auditor’s report**
## **to the members of**
## **ARTICLE 19**
entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
## **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 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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.
Noelia Serrano (Senior statutory auditor)
## 25 October 2022
for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006
## ARTICLE 19
Consolidated statement of Financial Activities (incorporating an income and expenditure account)
For the year ended 31 December 2021
|Note
Income from:
2a
2b
3
3
4
Reconciliation of funds:
Net income for the year
Total expenditure
Charitable activities
Latin America projects
Total funds brought forward
Global thematic projects
Europe & Central Asia projects
Middle East & North Africa projects
Law & Policy projects
Total funds carried forward
Latin America projects
Law & Policy projects
Africa projects
Asia projects
Cost of raising funds
Global thematic projects
Total income
Charitable activities
Africa projects
Expenditure on:
Europe & Central Asia projects
Middle East & North Africa projects
Donations and legacies
Asia projects|Unrestricted
£
3,863,236
-
-
-
-
-
-
-|Restricted
£
-
738,218
1,146,289
2,670,942
78,205
1,910,146
830,923
2,963,664|2021
Total
£
3,863,236
738,218
1,146,289
2,670,942
78,205
1,910,146
830,923
2,963,664|Unrestricted
£
4,350,911
-
-
-
-
-
-
-|Restricted
£
-
518,497
594,304
2,206,259
-
809,977
676,580
2,682,637|2020
Total
£
4,350,911
518,497
594,304
2,206,259
-
809,977
676,580
2,682,637|
|---|---|---|---|---|---|---|
||3,863,236|10,338,387|14,201,623|4,350,911|7,488,254|11,839,165|
||181,532
515,417
186,421
1,031,921
404,908
288,372
177,074
1,095,215|-
490,440
998,567
2,466,948
118,586
1,565,892
981,653
2,654,358|181,532
1,005,857
1,184,988
3,498,869
523,494
1,854,264
1,158,727
3,749,573|168,545
544,220
496,101
1,013,045
402,733
407,188
202,716
787,943|2,329
483,642
448,971
1,668,467
183,050
1,169,197
421,090
1,815,215|170,874
1,027,862
945,072
2,681,512
585,783
1,576,385
623,806
2,603,158|
||3,880,860|9,276,444|13,157,304|4,022,491|6,191,961|10,214,452|
||(17,624)
789,783|1,061,943
3,692,861|1,044,319
4,482,644|328,420
461,363|1,296,293
2,396,568|1,624,713
2,857,931|
||772,159|4,754,804|5,526,963|789,783|3,692,861|4,482,644|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 21 to the financial statements.
28
ARTICLE 19
## Balance sheets
Company no. 02097222
As the year end 31 December 2021
|Note
Fixed assets:
10
Current assets:
16
Liabilities:
17
21
Total unrestricted funds
Unrestricted income funds:
Designated funds
General funds
Net current assets
Total net assets
Restricted income funds
Funds:
Creditors: amounts falling due within one year
Debtors
Cash at bank and in hand
Tangible assets
Total funds|2021
2020
£
£
66,759
72,740
66,759
72,740
1,286,276
662,933
5,631,958
5,087,833
6,918,234
5,750,766
1,458,030
1,340,862
5,460,204
4,409,904
5,526,963
4,482,644
4,754,804
3,692,861
66,759
72,740
705,400
717,043
772,159
789,783
5,526,963
4,482,644
The group|2021
2020
£
£
66,759
72,740
66,759
72,740
1,286,276
662,933
5,631,958
5,087,833
6,918,234
5,750,766
1,458,030
1,340,862
5,460,204
4,409,904
5,526,963
4,482,644
4,754,804
3,692,861
66,759
72,740
705,400
717,043
772,159
789,783
5,526,963
4,482,644
The group|2021
2020
£
£
30,953
47,924
30,953
47,924
1,012,354
450,073
3,483,682
3,331,438
4,496,036
3,781,511
1,286,806
1,095,138
3,209,230
2,686,373
3,240,183
2,734,297
2,340,806
1,803,685
30,953
47,924
868,424
882,688
899,377
930,612
3,240,183
2,734,297
The charity|2021
2020
£
£
30,953
47,924
30,953
47,924
1,012,354
450,073
3,483,682
3,331,438
4,496,036
3,781,511
1,286,806
1,095,138
3,209,230
2,686,373
3,240,183
2,734,297
2,340,806
1,803,685
30,953
47,924
868,424
882,688
899,377
930,612
3,240,183
2,734,297
The charity|
|---|---|---|---|---|
||66,759
1,286,276
5,631,958|72,740
662,933
5,087,833|30,953
1,012,354
3,483,682|47,924
450,073
3,331,438|
||6,918,234
1,458,030|5,750,766
1,340,862|4,496,036
1,286,806|3,781,511
1,095,138|
||5,460,204|4,409,904|3,209,230|2,686,373|
||5,526,963|4,482,644|3,240,183|2,734,297|
||4,754,804
66,759
705,400|3,692,861
72,740
717,043|2,340,806
30,953
868,424|1,803,685
47,924
882,688|
||772,159|789,783|899,377|930,612|
||5,526,963|4,482,644|3,240,183|2,734,297|
The Trustees delegated approval of the report and financial statements to the Finance and General Purposes Committee. This report and the financial statements were approved by the Committee on 13 October 2022 and are signed on their behalf by:
Paddy Coulter Chair
Mark Salway Treasurer
29
ARTICLE 19
## Statement of cash flows
|For the year ended 31 December 2021|For the year ended 31 December 2021|For the year ended 31 December 2021|||
|---|---|---|---|---|
|Note
£
£
22
961,683
(38,265)
(38,265)
923,418
5,087,833
(379,293)
23
5,631,958
2021
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Change in cash and cash equivalents due to other
movements
Cash flows from operating activities
Net cash (used in) investing activities
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of fixed assets|||£
£
1,430,636
(33,960)
(33,960)
1,396,676
3,722,769
(31,612)
5,087,833
2020||
||||||
|||923,418
5,087,833
(379,293)||1,396,676
3,722,769
(31,612)|
|||5,631,958||5,087,833|
30
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
## 1 Accounting policies
## a) Statutory information
ARTICLE 19 is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address is Sayer Vincent, Invicta House, 108-114 Golden Lane, London, EC1Y 0TL.
## b) Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
These financial statements consolidate the results of the charity and its wholly-owned subsidiaries ARTICLE 19 Brazil and South America (ARTIGO 19 Brasil), ARTICLE 19 Mexico and Central America (ARTICULO 19, Campaña global por la libertad de expression), ARTICLE 19 Eastern Africa (based in Kenya) on a line by line basis.
Transactions and balances between the charity and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented as a summary of the result for the year is disclosed in the notes to the accounts.
The SORP 2015 stipulates that where overseas offices are legally registered in their country of operations as separate legal entities, this is an indication that they should be treated as subsidiaries for accounting purposes. However, having reviewed the governance and management procedures in place, oversight from ARTICLE 19 in the UK is such that other overseas offices (USA, Tunisia, Bangladesh, Netherlands and Senegal) are in substance branches and so are included in the results and position of the charity.
## c) Public benefit entity
The charitable company meets the definition of a public benefit entity under FRS 102.
## d) Going concern
The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
## e) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
## f) Fund accounting
Restricted funds are to be used for specific purposes as laid down by the donor. Income and expenditure that meets these criteria is charged to the fund. Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
31
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
## 1 Accounting policies (continued)
## g) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose;
- Expenditure on charitable activities includes the costs of training/workshops, grants to partners, events, campaigns and publications undertaken to further the purposes of the charity, and their associated support costs;
- Other expenditure represents those items not falling into any other heading.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
- i) Allocation of support costs
Resources expended (note 3) are allocated to a particular activity where the cost relates directly to that project. The cost of overall direction and administration of each activity consists of salary and overhead costs for the central function. This is apportioned on the following basis which is an estimate based on staff time and the amount attributable to each activity.
||Cost of raising funds|2%|
|---|---|---|
||Africa projects|8%|
||Asia projects|8%|
||Latin America projects|28%|
||Law & policy|8%|
||Europe & Central Asia project|11%|
||Middle East & North Africa projects|7%|
||Global projects|28%|
## j) Operating leases
Rental charges are charged on a straight-line basis over the term of the lease.
## k) Fixed assets
Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.
Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
||Office equipment|4 years|
|---|---|---|
||Computer Equipment|3 years|
## l) Grants to partners
Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is outside of the control of the charity.
32
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
## 1 Accounting policies (continued)
## m) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## n) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## o) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## p) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans, which are subsequently measured at amortised cost using the effective interest method.
## q) Pension Scheme
ARTICLE 19 operates a group pension scheme with Scottish Widows that pays an employer contribution of 8% for its employees in the UK. From November 2016, ARTICLE 19 joined the auto-enrolment scheme with the same pension provider.
## r) Foreign exchange policy
ARTICLE 19 hold funds in the currency in which those funds will be transferred to its Regional Offices and to its partners. Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into Sterling at the average rate of exchange for the year. Exchange differences are taken into account in arriving at the net movement in funds for the year.
33
ARTICLE 19
## Notes to the financial statements
## For the year ended 31 December 2021
## 2a Donations and legacies
|2a
Donations and legacies|||
|---|---|---|
|Norwegian Ministry of Foreign Affairs
Sub total of Institutional donors
Confidential donor
Ford Foundation
Open Society Foundation
Other voluntary income
Sub total of other donors
Total
Swedish International Development Cooperation Agency
Other donors
Institutional donors|2021
Total
£
634,523
2,037,806|2020
Total
£
844,309
2,868,882|
||2,672,329
287,687
531,333
187,327
184,560|3,713,191
190,433
-
-
447,287|
||1,190,907|637,720|
||3,863,236|4,350,911|
All donations and legacies income received in 2021 and 2020 were unrestricted.
## 2b Income from charitable activities by donor
|2b
Income from charitable activities by donor|||||
|---|---|---|---|---|
|Danish International Development Agency
European Commission
Global Affairs Canada
Netherlands Ministry of Foreign Affairs
UK Foreign and Commonwealth Office
US Agency for International Development
US Department of State
Other Institutional donors
Sub total of Institutional donors
Ford Foundation
William and Flora Hewlett Foundation
MacArthur Foundation
Open Society Foundation
Other Trusts and Foundations
Sub total of Trust and foundations
Confidential donor
European Partnership for Democracy
Free Press Unlimited
National Endowment for Democracy
Stichting Hivos
Other donors
Sub total of other donors
Total
Other donors
Institutional donors
UK Foreign, Commonwealth & Development Office (Note
26)
Trust and foundations|Unrestricted
£
-
-
-
-
-
-
-
-|Restricted
£
(3,174)
425,912
121,181
627,220
-
2,128,771
441,460
1,702,609
472,175|2021
Total
£
(3,174)
425,912
121,181
627,220
-
2,128,771
441,460
1,702,609
472,175|2020
Total
£
55,316
485,097
(56,462)
424,598
126,630
1,030,035
312,773
1,357,921
-|
||-
-
-
-
-
-|5,916,154
441,377
401,846
109,489
1,094,077
268,937|5,916,154
441,377
401,846
109,489
1,094,077
268,937|3,735,908
611,941
-
-
585,485
500,283|
||-
-
-
-
-
-
-|2,315,726
104,018
162,017
76,871
273,035
465,853
1,024,713|2,315,726
104,018
162,017
76,871
273,035
465,853
1,024,713|1,697,709
120,646
207,934
288,081
239,671
613,563
584,742|
||-|2,106,507|2,106,507|2,054,637|
||-|10,338,387|10,338,387|7,488,254|
All income from charitable activities received in 2021 and 2020 was restricted.
34
ARTICLE 19
## Notes to the financial statements
## For the year ended 31 December 2021
- 3a Analysis of expenditure (current year)
|Staff costs (Note 5)
Grants to partners (Note 7)
Project expertise costs
Training, events & workshops
Media and publications
Project travel costs
Project support costs
Governance costs
Total Expenditure 2021
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020|Cost of
raising
funds
£
138,005
-
-
-
-
-
73
-|||Charitable activities|Charitable activities|Charitable activities|||Governance
costs
£
-
-
-
-
-
-
-
46,760|Head Office
support
costs
£
1,307,724
-
10,011
18,717
224,784
38,512
381,736
(11,200)|2021
Total
£
7,713,586
2,161,427
798,472
410,672
516,871
217,497
1,255,402
83,377|2020
Total
£
6,547,836
1,018,514
835,155
201,631
458,997
239,260
790,714
122,345|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||Africa
projects
£
500,597
59,568
69,397
153,514
158
15,313
45,980
3,705
-|Asia
projects
£
519,350
261,529
133,110
41,404
41,543
19,904
(1,702)
6,320|Latin
America
projects
£
1,773,006
-
345,607
32,193
50,704
83,061
645,687
10,336|Law &
Policy
projects
£
469,135
-
-
2,179
7,118
2,118
(104,775)
-|Europe &
Central Asia
projects
£
724,202
766,830
25,906
53,749
55,153
33,216
(39,825)
7,000|Middle East &
North Africa
projects
£
473,482
41,972
93,135
82,816
61,346
1,337
252,543
3,009
-|Global
projects
£
1,808,085
1,031,528
121,306
26,100
76,065
24,036
75,685
17,447|||||
||138,078
42,447
1,007|848,232
153,971
3,654|1,021,458
159,739
3,791|2,940,594
545,333
12,942|375,775
144,294
3,425|1,626,231
222,747
5,286|1,009,640
145,631
3,456|3,180,252
556,122
13,199|46,760
-
(46,760)|1,970,284
(1,970,284)
-|13,157,304
-
-|10,214,452
-
-|
||181,532|1,005,857|1,184,988|3,498,869|523,494|1,854,264|1,158,727|3,749,573|-|-|13,157,304|10,214,452|
||170,874|1,027,862|945,072|2,681,512|585,783|1,576,385|623,806|2,603,158|-|-|10,214,452||
35
ARTICLE 19
## Notes to the financial statements
## For the year ended 31 December 2021
## 3b Analysis of expenditure (prior year)
|Staff costs (Note 5)
Grants to partners (Note 7)
Project expertise costs
Training, events & workshops
Media and publications
Project travel costs
Project support costs
Governance costs
Total Expenditure 2020
Support costs
Governance costs
Total expenditure 2020|Cost of
raising
funds
£
120,663
-
-
-
-
302
440
-|||Charitable activities|Charitable activities|Charitable activities|||Governance
costs
£
-
-
-
-
-
-
-
87,810|Head Office
support
costs
£
1,246,319
-
8,133
31,045
228,045
69,662
506,669
(4,200)|2020
Total
£
6,547,836
1,018,514
835,155
201,631
458,997
239,260
790,714
122,345|
|---|---|---|---|---|---|---|---|---|---|---|---|
|||Africa
projects
£
503,125
24,187
67,229
52,127
541
32,333
125,370
16,682|Asia
projects
£
382,431
63,745
98,931
27,540
8,375
23,578
178,101
5,585|Latin America
projects
£
1,159,835
14,084
484,242
60,733
42,776
46,106
389,554
8,680|Law &
Policy
projects
£
404,503
-
800
1,418
10,357
872
1,997
-|Europe &
Central Asia
projects
£
603,229
425,500
30,360
7,694
14,546
16,523
231,225
-|Middle East &
North Africa
projects
£
443,227
27,850
56,423
16,125
85,947
8,342
(199,407)
3,588|Global
projects
£
1,684,504
463,148
89,037
4,949
68,410
41,542
(443,235)
4,200||||
||121,405
47,470
1,999|821,594
197,935
8,333|788,286
150,452
6,334|2,206,010
456,291
19,211|419,947
159,136
6,700|1,329,077
237,317
9,991|442,095
174,370
7,341|1,912,555
662,702
27,901|87,810
-
(87,810)|2,085,673
(2,085,673)
-|10,214,452
-
-|
||170,874|1,027,862|945,072|2,681,512|585,783|1,576,385|623,806|2,603,158|-|-|10,214,452|
36
ARTICLE 19
## Notes to the financial statements
## For the year ended 31 December 2021
- 4 Net income for the year
This is stated after charging:
|This is stated after charging:|||
|---|---|---|
||2021|2020|
||£|£|
|Depreciation|18,259|28,971|
|Operating lease rentals:|||
|Property|253,172|191,678|
|Equipment|-|-|
|Auditor's remuneration (excluding VAT):|||
|Audit|38,083|30,000|
|Other services|25,999|17,100|
|Losses on foreign exchange|405,281|31,612|
5
Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Staff costs were as follows:
|Staff costs were as follows:|||
|---|---|---|
|UK Employer’s contribution to defined contribution pension schemes
Termination costs
Salaries and wages
Social security costs
Other staffing costs
Regional staff costs|2021
£
2,526,030
291,595
198,444
2,563,394
85,682
2,048,441
7,713,586|2020
£
2,345,715
266,275
188,861
2,390,561
-
1,356,424|
|||6,547,836|
The following number of employees received employee benefits (excluding pension costs) during the year between:
||2021|2020|
|---|---|---|
||No.|No.|
|£60,000 - £69,999|8|8|
|£70,000 - £79,999|7|4|
|£80,000 - £89,999|2|1|
|£90,000 - £99,999|-|-|
|£100,000 - £109,999|-|-|
|£110,000 - £119,999|-|1|
|£120,000 - £129,999|1|-|
Included within Other staffing costs are fees payable to programme and non-programme consultants of £971,641 (2020: £945,108).
Total employee benefits including pension contribution and employer's national insurance for key management personnel were £679,412 (2020: £581,954).
The charity trustees were not paid nor received any other benefits from employment with the charity in the year (2020: £nil).
Trustees' expenses represents the reimbursement of travel and subsistence costs totalling £nil (2020: £825) relating to attendance at International Board meetings.
37
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
## 6 Staff numbers
The average number of employees (head count based on number of staff employed) during the year was:
|Asociacion por los Derechos
Avivid AB
Stichting Hivos
International Centre for Not-for-Profit
Internews Europe
Meedan Inc.
Grants to partners
Centre for Internet and Society
Derechos Digitales
Global projects
Small grants
International Commission of Jurists
Open Net
PUNTO24
ROO Tsentr SOVA
North Kazakhstan Legal Media Centre
Confidential partners
Fundraising
Africa projects
Asia projects
Latin America projects
Law & Policy projects
Europe & Central Asia projects
Middle East & North Africa projects|2021
No.
2
23
23
64
11
10
18
25|2020
No.
2
23
22
60
8
8
16
27|
|---|---|---|
||176|166|
||2021
£
-
-
-
57,730
412,893
56,265
302,496
34,238
60,025
94,053
-
-
214,848
260,741
668,139|2020
£
14,051
15,838
14,051
14,051
105,747
-
119,803
-
-
-
90,055
7,226
164,674
-
473,018|
||2,161,427|1,018,514|
- 7 Grants to partners
Small grants include grants to partners below £25,000 in the year.
Confidential partners are organisations which need to remain anonymous due to the sensitive nature of their work.
## 8 Related party transactions
Lucia Nader was engaged as a consultant in 2021 and paid £2,700. Lucia was appointed as a trustee of the International Board in June 2022.
## 9 Taxation
The charitable company is exempt from corporation tax as all its income is charitable and applied for charitable purposes.
38
ARTICLE 19
## Notes to the financial statements
## For the year ended 31 December 2021
- 10 Fixed assets
|Fixed assets||||
|---|---|---|---|
|Net book value
At the end of the year
Net book value at the start of the year
At the end of the year
Additions in the period
Charge for the period
Cost or valuation
At the start of the year
Revaluation of foreign currency asset
At the end of the year
Depreciation
Tangible fixed assets
Cost or valuation
The group
Revaluation of foreign currency asset
Depreciation
Net book value
Revaluation of foreign currency asset
At the end of the year
At the start of the year
At the start of the year
Revaluation of foreign currency asset
At the end of the year
Additions in the period
Charge for the period
At the start of the year
At the end of the year
Net book value at the start of the year
The charity
Tangible fixed assets|Computer
equipment
£
179,581
14,091
(33,555)|Office
equipment
£
118,079
24,174
(4,327)|Total
£
297,660
38,265
(37,882)|
||160,117|137,926|298,043|
||139,078
10,233
(15,333)|85,842
8,026
3,438|224,920
18,259
(11,895)|
||133,978|97,306|231,284|
||26,139|40,620|66,759|
||40,503|32,237|72,740|
||Computer
equipment
£
128,342
12,293
(8,442)|Office
equipment
£
57,434
563
(7,077)|Total
£
185,776
12,856
(15,519)|
||132,193|50,920|183,113|
||98,431
9,831
1,515|39,421
2,526
436|137,852
12,357
1,951|
||109,777|42,383|152,160|
||22,416|8,537|30,953|
||29,911|18,013|47,924|
39
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
## 11 Subsidiary undertaking - ARTICLE 19 Mexico and Central America (Campaña Global por la libertad de expression)
A summary of the results of the subsidiary is shown below. These may differ from the statutory accounts of the subsidiary where balances have been adjusted to align with group accounting policies:
|Funds
Total funds brought forward
Total incoming resources for the year
Turnover
Assets
Liabilities
Income from ARTICLE 19
Total funds carried forward
Expenditure
Funds held
Total incoming resources for the year
The aggregate of the assets, liabilities and reserves was:
Incoming resources|2021
£
1,740,667
62,321
(1,466,590)|2020
£
1,771,371
171,847
(1,451,475)|
|---|---|---|
||336,398|491,743|
||1,324,948
336,398|833,205
491,743|
||1,661,346|1,324,948|
||1,699,838
(38,492)|1,405,171
(80,223)|
||1,661,346|1,324,948|
Amounts due from the parent undertaking are shown in note 17.
## 12 Subsidiary undertaking - ARTICLE 19 Brazil and South America (ARTIGO 19 Brasil)
A summary of the results of the subsidiary is shown below. These may differ from the statutory accounts of the subsidiary where balances have been adjusted to align with group accounting policies:
|Income from ARTICLE 19
Incoming resources
Expenditure
Total funds carried forward
Liabilities
Funds
Total incoming resources for the year
Total incoming resources for the year
Turnover
Funds held
Total funds brought forward
The aggregate of the assets, liabilities and reserves was:
Assets|2021
£
1,291,842
104,258
(1,331,523)|2020
£
435,938
123,856
(756,534)|
|---|---|---|
||64,577|(196,740)|
||382,679
64,577|579,419
(196,740)|
||447,256|382,679|
||486,704
(39,448)|452,901
(70,222)|
||447,256|382,679|
Amounts due from the parent undertaking are shown in note 17.
40
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
## 13 Subsidiary undertaking - ARTICLE 19 Eastern Africa
A summary of the results of the subsidiary is shown below. These may differ from the statutory accounts of the subsidiary where balances have been adjusted to align with group accounting policies:
|Income from ARTICLE 19
The aggregate of the assets, liabilities and reserves was:
Funds held
Total funds brought forward
Total incoming resources for the year
Expenditure
Funds
Total funds carried forward
Assets
Liabilities
Total incoming resources for the year
Turnover
Incoming resources|2021
£
233,597
83,044
(300,367)|2020
£
(Restated)
330,304
59,577
(262,776)|
|---|---|---|
||16,274|127,105|
||67,082
16,274|(60,023)
127,105|
||83,356|67,082|
||102,395
(19,039)|69,221
(2,139)|
||83,356|67,082|
2020 brought forward balance was incorrectly reported in 2020 accounts. This has been corrected and the asset and liability balance has been updated accordingly.
Amounts due from the parent undertaking are shown in note 17.
## 14 Subsidiary undertaking - ARTICLE 19 Netherlands
A summary of the results of the subsidiary is shown below. These may differ from the statutory accounts of the
|Income from ARTICLE 19
The aggregate of the assets, liabilities and reserves was:
Assets
Funds held
Total funds brought forward
Total incoming resources for the year
Total funds carried forward
Incoming resources
Turnover
Expenditure
Total incoming resources for the year
Liabilities
Funds|2021
£
243,431
-
(225,759)|2020
£
(Restated)|
|---|---|---|
||17,672|-|
||92,082
17,672|-
92,082|
||109,754|92,082|
||119,286
(9,532)|92,082|
||109,754|92,082|
2020 incoming resource for the year has been restated to reflect the movement of an opening balance from UK to the Netherlands.
Amounts due from the parent undertaking are shown in note 17.
41
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
## 15 Parent charity
The parent charity's gross income and the results for the year are disclosed as follows:
|16
Trade debtors
Amounts due to parent undertaking
Other debtors
Gross income
Debtors
Result for the year
Prepayments
Accrued income|2021
2020
£
£
727,652
127,603
217,777
114,897
332,319
418,381
8,528
2,052
-
-
1,286,276
662,933
The group|2021
2020
£
£
727,652
127,603
217,777
114,897
332,319
418,381
8,528
2,052
-
-
1,286,276
662,933
The group|2021
£
10,442,463
609,398|2020
£
8,946,270
1,202,603|
|---|---|---|---|---|
||1,286,276|662,933|1,012,354|450,073|
## 17 Creditors: amounts falling due within one year
|Creditors: amounts falling due within one year|||||
|---|---|---|---|---|
|Deferred income
Accruals
Other creditors
Pension contributions due
Amounts due from parent undertaking
Trade creditors
Taxation and social security|2021
2020
£
£
505,048
433,115
274,786
202,912
63,790
67,658
29,268
47,431
144,627
346,809
440,511
242,937
-
-
1,458,030
1,340,862
The group||2021
2020
£
£
497,836
422,938
213,386
146,844
27,557
30,735
29,268
47,431
137,201
275,747
319,774
171,443
61,784
-
1,286,806
1,095,138
The charity||
||1,458,030|1,340,862|1,286,806|1,095,138|
## 18 Deferred income
Deferred income consists of funds received in 2021 from a grant to cover project activities in 2022.
|Balance at the beginning of the year
Income deferred in the year
Amount released to income in the year
Balance at the end of the year|2021
2020
£
£
47,431
206,564
29,268
47,431
(47,431)
(206,564)
29,268
47,431
The group|2021
2020
£
£
47,431
206,564
29,268
47,431
(47,431)
(206,564)
29,268
47,431
The group|2021
2020
£
£
47,431
206,564
29,268
47,431
(47,431)
(206,564)
29,268
47,431
The charity|2021
2020
£
£
47,431
206,564
29,268
47,431
(47,431)
(206,564)
29,268
47,431
The charity|
|---|---|---|---|---|
||29,268|47,431|29,268|47,431|
## 19 Pension scheme
The charity has a defined contribution pension scheme with Scottish Widows for UK employees. The assets of the scheme are held separately from those of the charity in an independently administered fund with Scottish Widows. The pension costs represents contributions payable by the charity to the fund in the year and amounted to £198,444 (2020: £188,861) (see note 5). Contributions totalling £20,066 (2020: £20,113) were payable to the fund at the balance sheet date and are included in creditors (see note 17).
42
ARTICLE 19
## Notes to the financial statements
## For the year ended 31 December 2021
## 20a Analysis of group net assets between funds - current year
|20a
Analysis of group net assets between funds - current year|20a
Analysis of group net assets between funds - current year|t year||||
|---|---|---|---|---|---|
|General
unrestricted
£
-
705,400
705,400
20b
General
unrestricted
£
-
717,042
717,042
21a
At 1 January
2021
Income &
gains
£
£
(169,623)
738,218
379,046
1,146,289
1,928,797
2,670,942
(272,828)
78,205
(390,337)
1,910,146
454,198
830,923
1,763,608
2,963,664
Total restricted funds
3,692,861
10,338,387
72,740
38,266
717,043
3,824,970
789,783
3,863,236
4,482,644
14,201,623
Fixed assets
Net current assets
Designated funds: fixed asset fund
Net assets at the end of the year
Fixed assets
Total funds
Analysis of group net assets between funds - prior year
Movements in group funds - current year
General funds
Total unrestricted funds
Asia projects
Unrestricted funds:
Middle East & North Africa projects
Europe & Central Asia projects
Global Thematic projects
Latin America projects
Law & Policy projects
Restricted funds:
Africa projects
Net assets at the end of the year
Net current assets||General
unrestricted
£
-
705,400|£
66,759
-
Designated|Restricted
£
-
4,754,804|Total funds
£
66,759
5,460,204|
|||705,400|66,759|4,754,804|5,526,963|
||||£
72,740
-
Designated|Restricted
£
-
3,692,861|Total funds
£
72,740
4,409,903|
|||717,042|72,740|3,692,861|4,482,643|
|||Income &
gains
£
738,218
1,146,289
2,670,942
78,205
1,910,146
830,923
2,963,664|Expenditure &
losses
£
(490,440)
(998,567)
(2,466,948)
(118,586)
(1,565,892)
(981,653)
(2,654,358)|Transfers
£
-
-
-
-
-
-
-|At 31
December
2021
£
78,155
526,768
2,132,791
(313,209)
(46,083)
303,468
2,072,914|
||3,692,861|10,338,387|(9,276,444)|-|4,754,804|
||72,740
717,043|38,266
3,824,970|(44,248)
(3,836,612)|-
-|66,758
705,401|
||789,783|3,863,236|(3,880,860)|-|772,159|
||4,482,644|14,201,623|(13,157,304)|-|5,526,963|
43
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
## 21b Movements in group funds - prior year
|Total restricted funds
Latin America projects
Law & Policy projects
Europe & Central Asia projects
Total unrestricted funds
Unrestricted funds:
Designated funds: fixed asset fund
Total funds
General funds
Middle East & North Africa projects
Global Thematic projects
Asia projects
Restricted funds:
Africa projects|At 1 January
2020
£
(204,478)
233,713
1,391,005
(89,778)
(31,117)
198,708
898,515|Income &
gains
£
518,497
594,304
2,206,259
-
809,977
676,580
2,682,637|Expenditure &
losses
£
(483,642)
(448,971)
(1,668,467)
(183,050)
(1,169,197)
(421,090)
(1,817,544)|Transfers
£
-
-
-
-
-
-
-|At 30
December
2020
£
(169,623)
379,046
1,928,797
(272,828)
(390,337)
454,198
1,763,608|
|---|---|---|---|---|---|
||2,396,568|7,488,254|(6,191,961)|-|3,692,861|
||67,660
393,703|33,960
4,316,951|(28,971)
(3,993,520)|91
(91)|72,740
717,043|
||461,363|4,350,911|(4,022,491)|-|789,783|
||2,857,931|11,839,165|(10,214,452)|-|4,482,644|
## Purposes of restricted funds
Represents funds received from donors relating to agreed projects. The funds will cover expenditure planned for the following financial year.
The split of the restricted funds represents the location where expenditure has taken place, but not necessarily which ARTICLE 19 entity signed the grant agreement.
The restricted balances which are in deficit in 2021 is due to spending on grants where the income is not due from the donor until 2022, and/or income recognised under Global Thematic projects while expenditure is incurred across different teams.
## Purposes of designated funds
The designated fund is matched against the net book value of the fixed assets of the charity, which are not readily realisable.
44
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
## 22 Reconciliation of net income to net cash flow from operating activities
|Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Foreign exchange losses
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities|2021
£
1,044,319
18,259
405,280
(623,343)
117,168|2020
£
1,624,713
28,971
31,612
148,875
(403,535)|
|---|---|---|
||961,683|1,430,636|
## 23 Analysis of group cash and cash equivalents
|Cash in hand
Cash at bank
Total cash and cash equivalents|At 1 January
2021
£
4,101
5,083,732|Cash flows
£
(2,954)
547,079|Other
changes
£
-
-|At 31
December
2021
£
1,147
5,630,811|
|---|---|---|---|---|
||5,087,833|544,125|-|5,631,958|
## 24 Operating lease commitments
The charity's total future minimum lease payments under non-cancellable operating leases are as follows for each of the following periods:
|the following periods:|||||
|---|---|---|---|---|
|One to five years
Less than one year|2021
2020
£
£
148,991
114,649
104,181
77,029
253,172
191,678
Property||2021
2020
£
£
-
-
-
-
-
-
Equipment||
||253,172|191,678|-|-|
25 Legal status of the charity
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
45
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
26a Income from UK Foreign, Commonwealth & Development Office - current year
|Income from UK Foreign, Commonwealth & Development Office - current year|||
|---|---|---|
|Project name
Project
identifier
Project code
GB-CHC-
1148404-GB-
CHC-327421-
DFID-
PROTECT
06622
GB-CHC-
327421-2019-
6696-PRIMED
06696
06746
06768
06817
Project name
Project
identifier
Project code
GB-CHC-
1148404-GB-
CHC-327421-
DFID-
PROTECT
06622
GB-CHC-
327421-2019-
6696-PRIMED
06696
06641
Protecting Independent Media for Effective
Development (PRIMED)
(Consortium led by BBC Media Action)
ECHMIL - Ensuring Communal Harmony through
Media Information Literacy
Protecting Rights, Openness and Transparency
Enhancing Civic Transformation (PROTECT)
Protecting Independent Media for Effective
Development (PRIMED)
(Consortium led by BBC Media Action)
Protecting Rights, Openness and Transparency
Enhancing Civic Transformation (PROTECT)
Income from UK Foreign, Commonwealth & Development Office - prior year
Strong in Diversity, Bold in Inclusion (SIDBOI)
(Consortium led by Stichting Hivos)
Supporting independent civil society and media to
defend the fundamental freedoms of expression and
assembly in Belarus
Speech is not a Crime|Income
recognised
2021
£
1,913,218
47,971
158,238
7,109
2,235|Cash
received
2021
£
1,913,218
47,971
158,238
7,109
2,235|
||2,128,771|2,128,771|
||Income
recognised
2019
£
890,431
120,061
19,543|Cash
received
2019
£
890,431
120,061
19,543|
||1,030,035|1,030,035|
26b Income from UK Foreign, Commonwealth & Development Office - prior year
46
ARTICLE 19
Notes to the financial statements
## For the year ended 31 December 2021
27a Income from Swedish International Development Cooperation Agency - current year
|27b
Income from Swedish International Development Cooperation Agency - prior year
Income received in 2021
Income received in 2021|2021
Total
SEK
24,000,000|2021
Total
£
2,037,806|
|---|---|---|
||24,000,000|2,037,806|
||2020
Total
SEK
34,000,000|2020
Total
£
2,868,882|
||34,000,000|2,868,882|
## 28 Post balance sheet events
In October 2022 the charity entered into a lease for office premises with payments of £377k due until 2027.
47