Company registration number.. 02435882 Charrty registration number. 802353 Ethiopiaid {A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2022 Milsled Langdon LLP 4 Queen Street Bath BA1 1HE ## **Ethiopiaid** ## **Contents** |Reference and Administrative Details|1| |---|---| |Trustees' Report|2 to 14| |Statement of Trustees' Responsibilities|15| |Independent Auditors' Report|16 to 18| |Statement of Financial Activities|19| |Balance Sheet|20| |Statement of Cash Flows|21| |Notes to the Financial Statements|22 to 37| Ethiopiaid Reference and Admlnlstratlve Detalls Chief Executive Officer L Cousins Trustees A Chapman A Fenn S Grimsdale M Norman E Prak N Reed I￿SIgned 5 May 2022} H Horn T Reed A A Gebreyes 802353 Charity Registratlon Number Company Registration Number 02435882 The charity is incofporated in England and Wales. PO BOX 5168 Bath BA1 ORR Reg¥stered Officg Auditor Milsted Langdon LLP 4 Queen Street Bath BA1 1HE Bankers Barctays Bank Hounslow Le¢￿ster LE87 2BB HSBC Bank Knightsbridge Premier CenlTe 102 Bromplon Road London SW3 1JJ Bank of S￿tland PO Box 17235 Edinburgh EH11 1YH Page 1 Ethiopiaid Trustees. Report The trustees. who are directors for the purposes of company law, present the annual report together wilh the financial statements and audttois, report of the chartlabl8 company for the year ended 31 December 2022. Purpose of the charlty Elhiopiaid W￿kS with Ethiopian NGO pathers to improve the lives of some of the poorest and most vulnerable people in Ethiopia. charitys global strategy ststes that their key objectives are= To reach and impact positively on the Iwes of the most pojr and marginalised people in Elhtopia as identtfied by project need. partner access and expertise. . To be the charity of choice for those with an interest in Ethiopia and the causes supported by the charty. . To ensure robust systems and processes to safeguard the charit￿S future operations in an evolving developmeftl landscape. Summary of malft actlvltlos Ethiopiaid works closely and in partnership with indigenous organisalKJns who know the local context and are best placed lo design and deliver effective and impactful Projects and programmes. In 2022 Q,626.121 was transfeffed to partrvars. This induded.. The small grants programme which awarded 15 NGOS in Ethiopia a totsl of £292,903. £539,648 Emergency response funding lo address the impact of ongoing unrest in the country. £93.874 was provided lo 11 UK registered charities delivering projects in Ethiopia, as champion matched funding Ma The Big Give Christmas Challenge, teveraging a fLtrther £292.138 in donations from their own supporters. The chariVs main partners were". Afar Pastoralist Dovelopment Association {APDAI APDA works in the remote Afar region lo end harmfvjl traditional practs'ses such as female genital mulilalton and early marriag8. APDA'S outreach hea￿h workers work ￿th families. traditional FGM praclilioners, communities and religious leaders lo challenge altitudes. change mind-sets and protect young girts. APDA also provide ernergency aid and recovery to remot8 communities during times of crisis. A5soclatlon for Women's Sanctuary and Development {AWSAD) AWSAD provides safe shelter and support to women and girt survsvois of gender based violence. There are now 10 safe houses across Ethiopia caring foT survNors. The women and girls receive medical care, psychological 51JPPOrt, skills training and assistance with bringing their perpetrators to justice. AWSAD'S programme also includes prevention and awareness training wth the police, govemment, communty leaders and students. Page 2 Ethiopia5d Trustees. Report Cheshlre Services Ethlopla Cheshire Services is a leading disability charity working with adutt5 and children. They provide corrective surgery, intensive rehabilitation. mobility aids and physiolherapy. Their wheelchair and prosthetics workshop produces specialist bespoke equipment, and a livelihoods programme supports disabled households to become financially seW-suppJrting. Studio Samuel Studio Samuel's mis51on is lo engage vulnerable girts in knr school and weekend clubs where they learn 8 variety of skills for employment. One project ts peer to peer training on the pyoductton ol reusable menstruats.on packs. The girts design, prortu￿ and distribute these packs free of ch8rge to secondary schools to ensure that othor girts can slay in school with dignity and wthoul shame during their per￿s. At the same time they learn aboLrt busir¢ess, team working and building their own $elt ¢onfidence. Hamlin Flstula Hospltsl and Midwlfery College The Hamlin hospital is wodd-renowned for the treatment and rehabilitation of women SLrffering from obstetric fistula. Elhiopiaid funds the training of midwves recruited from the rufal areas, who benefit from high quality training for 4 years and are then deployed back to rural community health cenlres. H•aling Hands of Joy Healing Hands of Joy rehabililales fistula suNivors by training them as Safe Mothethood knb8ss8dors. The Ambassadors ralurn lo their ¢ommunib"es to support access lo pre-natal education and encourage women to give birth safely in health cerrtre5, thus preventing further fistula ca¥es. Hope EnterPrf￿s Hope Enterprises provides and supports edu¢alion for impoverished students from primary to tertiary level. Elhiopiaid specifically fvnded the technical and v¢xal¢onal education programme in Addis, alongside re-starttng thg feeding programme for children and adults living in povety on the streets of Addis Ababa and Dessig. Hope Enterprises Unlversty Collego Ethiopia's firsl not-for-profil university enables students from impoverished background8 to receive a high quality education. Their mission is to Prowde 8spiring leaders the option of pursuing a world class degree wilhoLrt leavin9 their ¢ountry and cultural setting. Funding supports student scholarships $0 that the poorest students can attend the College and complete Ihelr studies. Hosplce Ethiopia Hospice Ethiopia provide palliabve home care lo terminally ill people living in poverty who have little or no access to medical assistance. They also train medieal professionats in palliative care. Ethiopiaid fLtnded their Addis programme and helped the organisation lo extsnd its reach into B8hirdar. Page 3 Ethiopiaid Trustees. Report Support for Chlldren, Women and Older Persons {SCWOP} Elhiopiaid funding provides welfare sijpport to 1,071 impoverished elders and 100 orphaned vulnerable grandchildren liwng in povety in Addis. 90% of the elders are female. A monthly pension payment is made lo each elder so that they can purchase basic food staples, with extra payments for those with dependant grandchildren. Funding is also provided to support medication and surgery lo treat eye problems and restore sight. Hope of Light Hope ol Light piovides surgery for women living wilh an obstetric fistula or pelvic organ prolapse. Ethiopiaid provided funding for the running costs of it's fistula centre in Jimma alongside community awareness programmes. Funding was also provided lo re-equip looted health centres in areas of conflict with birthing kits. National Podoconio$l$ Actlon Network {NAPANI NAPAN is an umbrella organisation working wth local implementin9 partners in njral areas lo prevent and Ire81 podoconiosis 8 non-inf8dious neglect&d disease arising in barefoot sUb51sten￿ farmers Causing lymphoedema of the feel and lower limbs. The project funded in 2022 ensured treatment setvi¢e a￿¢$$ to approx. 4000 podo affected individu81s and the wider community, as well as oversized shoe provision In eight endemic distncls of Keffa zone in South West Elhiopi8. Emeryency and Recovery Fundlng Elhiopiaid continued ils commitment lo supporbng partner5 with emergency and recovery funding in the fa￿ of ongoing food and waler shortages, and the impact of conflict which began in the Tigray region in November 2020. Wlng$ of Haaling Working primarily in Addi$, Amhara. Southern Region and TvJray, of Healing focuses on improving the health of vulnerable people by identifying areas of high need and using their expertise to fill gap5 in provision. In 2022 Elhiopiaid fur*ded the expansion of a cervical eancer screening progiamme in Addi5, tsvo emergency health clinics in intemally displaced person IIDPI camps in conflict affected Tigray, and an emergency feeding programme for malnourished mothers and children In 8n IDP camp in Amhara. Atsedes Maternlty Cllnlc A rural health clinic loealed in the remote mounlainou$ area of the Gurage zone. Astedes Matemty Clinic was founded and run by experienced local midwives and provides respectful and individualised maternal heahh care for women. The clinic includes a birthing suite. delivery room, emergency clinic and a numbèr of outreach projects. Ethiopi8id funded the Midwives on the Move project and the Insidel Outside project, both of which improve malernal heallh outcomes and wellbeing by taking seNices and support lo rural women In their homes and commvnities. Page 4 Ethiopiaid Trustees. Report PARTNER PURPOSE OF GRANT I PROJECT Equipmenl and medicines for emergency medical clinics in inlemalFy displaced persons ￿Mp¥ Emergency rdief for inlemslly displaced persons and host communities Re-equipping health centre8 with birthing equipment PLEDGE AMOUNT {£) 150.000 Wlngs of Healin9 APDA 286.000 Hope of Light TOTAL 103.648 539,648 The Trustees agreed to restrict £250.000 from the charws reserves in order to provide for urgent emergency and recovery needs arising during 2022. to avoid delays to the provision of assistance whilst a fundraising appeal is launched. Small Grants Programme The small grants programme is a fundir#J opportunity for locally registered Ethiopian NGOS to apply for a one off grant of up to £25,000 for work aligned wth Ethiopiaid's global strategy. The programme enables Ethiopiaid to fvrther ils reach and also assess potential for longer-temi partnerships. In 2022 small grants were awarded to 15 NGOS in Ethiopia tolalling £292,903. The Big Glve Chrlstmas Challengo The Big Glve Chrisknas Challenge 1$ a match fvnding campaign where donations to participating ¢h8rilies are doubled. Ethiopiaid promdes champion funding for UK registered charities that work in Ethiopia with the challenge of securing matched pledges from their donors. In 2022 Ethiopiaid's champion fund of £93,874 successfully leveraged an additional £292.138 in donations from the particlpating Charit￿s own supporters. Policy on Grant Making To ensure that the utmost publi¢ benefit wll be received and the maximum amount ol money can be fofwarded to its partners. the charity keeps it costs to a minimum. maintsining a business model of facilitating a¢tion in Ethiopia. but minimlsing action asido from fundraising in the UK. The charity predominantly 5UPPOrts indigenous NGOS through the provision ol funding to delNer their programmes. In addition support is given to partner8 lo help them lo work more effeclNely and strengthen their capacity. The trustees are therefore confident that EthSopiaKI meets the public benefit requirements and they confinn that they have tsken into account the guidance contairEed in the Charity CommiSs￿n.$ general guidance on public benefrt where applicable. Page 5 Ethloplaid Trustees. Report Fundraislng Rogulations The charity adheres to the Chartered Institute of Fundraising Code o* Practs"ce. is a member of the Chartered Institute of Fundraising, registered with the Information Commiswoners Officer, and the Fundraising RegLtlalor. Complaints are recorded by the charity on Ihe complaints register and shared with the Fundraising Regulator annually. In 2022 there were a total of 5 complaints received by the charity. All complaints were dealt wilh immediately and any remedial actions required taken. The charity did not reeeive any data subject access requests during the year. There were no data breaches lo report. Stratsglc Raport Achievements and performance In 2022 Ethiopiaid supported the work of numerous non-governmental organisations {NGOsl working in Ethiopia through direct partnerships, the small grants programmo and The Big Give Christmas Challenge. Key achievements for the year included" £2,626,121 worth of grants were madè to Ethiopian partneTS Voluntary income (excluding legacies) for the year tolalled £1,914,140 Emergency appeals during the year raised £252.964 to support communiti¢s impa¢ted by the conflict Achievements against objectlves set Direct mail campaigns raised £34S,885 £981,167 raised through regular gifts Legacies received with a value of £706.426 enabling us lo make S￿nIficant grants to partners and respond to emergencies £396,906 raised through gfants from tharitable trusts. foundatiorts and grant makers £205,425 raised through philanthropic gifts Timely and efficient gift aid claims resulted in £259,834 being dain7ed back from HMRC Ovefall running costs were kept to a minimum. For every £1 raised 19 pence w8s spent on adminislialion and fundraising costs Page 6 Ethiopiaid Trustees, Report Priority areas for 2023 Improvlng donor stgwardshlp By focusing on QL*r donors. exporience we will slronglhen our individual giwng income streams to reduce attflbon, and miligale against shocks eaused by the economic climate in the UK. Inv8sting Sn fundraising partnershlps Building upon the growth seen in 2021 and 2022. the partnerships team wll focLSS on maintaining existing donois and grant makers, alongside expanding their Teaeh lo new philallthropists and nettvorks. We wll seek those who share our approach of locally partnerships. Developing the capaclty strengthening of partners We wll build upon our wlol projects in this area to develop a robust programme open lo all of our partners. Our aim is to provide the pracU"¢al support requested by our partners to strengthen their organisalional capacity to increase their effeclivene$$. social impact and be funder ready in order lo atlracl support from other international donors. Improvlng our monitorlng and evaluation We seek to eonlinually improve our M&E proeess and IhFs will again be a focus for 2023. Ensuring blended approach to desk based M&E and face to face visits remains a priority- A new partner charter will be developed to set the standard for all of our partners lo meet and we will introduce deeper financial reviews as a resull of length of partnership or 8 signrficant increase in funding. Page 7 Ethiopiaid Trustees. Report Flnanclal Revigw In 2022 the charills totsl Income was £2,886,501, up frc%n £2.710.145 in 2021. This was due to an in¢rease in Legacies from £406,181 in 2021, 10 £706,426 in 2022. Gift aid reclaimed decreased from £280.081 in 2021 to £259,834 in 2022, whilst grfts in kind (linked to business support and 0ffi¢o spaeel decreased lo £5,000 (2021.. £9,000) due lo Ethiopiaid moving into its own office space. Expenditure on raising funds in the year was £170,130 (2021= £225.4601. whilst expenditure on eharitable activities increased in the year to £3.049.371 Irom £2,262.329 in 2021. The charity generated a planned der￿lE in the year of £333.000, a decrease on 2021 which saw a Surplus of £222,356. Investment Policy and Objédlvos Ethiopiald does not invest any donations in the money market, but merely uses deposit accounts to earn interest on any money until it is donated lo our projects. Elhiopiaid uses drfferenl banks lo divide any deposits betsveen them, in case of any bank defaulting on the deposit. As such Elhiopiatd is very cautious aboLrt ils investments and cash. In temis of ethical investments. Ethiopiaid does not invest in stock and shares therefore no investments are considered 'unelhical'. ReseNes Pollcy It is the policy of the Trustees that cash available for distribution 81 the year end is sent lo Ethiopia when suitsble projects ore found. The charity's core reseNes policy is to ensure that we have enough to cover one year of main partner donations and our overheads at any one time. Prlnclpal Source of Funds Elhiopiaid's principal source of funds is from individuals through regular gifts (standing orders and direct debitsl, donations in response lo direct mail 8nd onlirte appeals, significant philanthropic gift8, grants from ch8ri18ble foundations and legacies. At 31 DeGemb8r 2022 the charity hold £2,167,18812021: £2,564,600) in unrestricted reserves. Basod on the expendiluTe levels during 2022 the unrestricted rese￿eS held al 31 December 2022 equate to approximately 8 months of partner donations and overheads. The charity has £107,244 in restricted Yesetves carried forward, which relates to Hamlin Fistu18 Hospital. Totsl free reserves as at 31 December 2022 were £2,161,59312021: £2.558,8481. Page 8 Ethiopiaid Trustees. Report Prlnclpal Risks Facing the Charity Managing risks effectNely is integral to the achievement of Elhiopiaid's wston. The Trustees ¢nsure that a risk register is reviewed at each board meeting so that key risks are ldentrf￿d and mitigated. The Trustees are ultimately re¥)onsible for iisk management and the effectNeness of Ethiopiaid's intemal control systems. The following framework is in place.. The CEO maintains the risk register and reviews any significant organÈsational risks on a regular basis. The Trustees review the slrategic risks and the internal control measures. Policies are in place for raising complaints and concems Iwhistle-blowing). There is also an anti-fraud, ¢orruption and bribery p)licy in place. The main ri$ks facing Ethiopiaid are.. Rlsk Mitigations Military action and violence putting at rtsk partfter Monitoring ol media reports and infomialion frcAn projects. benèficiaries safety and the ability to partners. Pause all fvnding lo partners in Tigray continue working irE regions. There is also a risk until there is stsbility and programmes can to doI￿r confidence. re5LFme. Ensure transparency wrth donors. Address new needs aiising from the situation for example support for refugees and intemally displaced perso￿$. Invest in longer lemi recovery projects Safeguarding of Staff, volunteers during limes of Monitor the Ethloplan polilitsl landscape. Regular political and social instability. communication with our partners, British Embassy and other nelworks in Ethiopia. Regu18r review of 51aff and volunteer travel polieies. Partnership agreernenls with every partner. M&E checks. Partners to have policies on anti-fraud, bribery and corruption. Audil trail of funds transfer¥ed. Safeguarding lead Twslee. Ethiopian partneis to have own safeguarding policies, processes and training in place. Ethiopian partners must commit to Ethiopiaid's safeguarding policy and code of conduct. Annual refresher safeguarding training for Ethiopiaid staff. Safeguarding training delivered to volunteers Iravelling overseas with Elhiopiald. Fraud and misappropriation of funds in Ethiopia. Exploitation of benefKiaries. Page 9 Ethloplald Trustees. Report The Continuing Impact of Covld The charity has conb.nued lo adapt working practice8 in re8ponse to govemment advice and restrietlons in the UK and in E*hiopia. The risks are recorded on the charity's rlsk register and reviewed at trusteo meetings. It is anticipated that the main risks to Ihe chafity's activits.es are.. Risk Reduction in income from individual donors due to economic downtum in the UK. ETHIOPIAID'S RESPONSE The charity will focus on delivering excellent stewardship of donors to encoL¢f8ge longewty of support. Donors wishing to ttan￿1 wll be asked to cons*ler reducing or pausing their donations as an allernalive. Efforts will be directed lo recruit new donols and increase other income streams for Ihe charity. Inability to travel to Ethiopia to undertake the Remote M&E processes will be reviewed and monitoring and evaluation of grants made lo strengthened. Ethiopian based consultsnts will be partners. soughl lo support where rte￿Ssary. An M&E trip will be scheduled as soon as rt is safe lo do so. Risk to our partners of being unable to deliver Restrictions in Ethiopia have meant that the services and programmes as planned. delivery of some pro9rammes have been affected. in particular those linked lo education, livelihoods and outreach. The charity will maintai regular communications with partners to understand continuity plans and provide support to ensure that 'nomial' servicesl projects can resume quickly and effectively onee 811 restrictions are lifted. Demands for additional funding to support our The charity will ensure that funding decisions are partners response to comd may increase. made quickly and grants rdeased early as appropriate 8nd fie￿$S8ry. Ethiopiaid employees working remotely as a Th8 team have regular weekly virtual meetings lo result of government guidelines. need for social support collaboration. focus and maintain distancing in the office, indiwduals shielding. or productivity. Wellbeing Is reviewed by the CEO on illness. a regular basis. All stsff are wovided wiÈh the equipment needed lo work both from home and in the office. Page 10 Ethiopiaid Trustees. Report Trustees and Offlcers The Injslees and officers seTring during the year and sin¢e the year end wefe a5 follows.. Trustees- A Chapman A Fenn S Grimsdale M Nom)an E Prak N Reed, (resigned 5 May 2022) HHOM T Reed A A Gebreyes (appointed 27 January 2022) Chief Executive Offiw.. L Cousirts seC￿￿ry. L Cousins Safeguardlng All Ethiopiaid Iruslees. employees 8nd volunteers must read. understand and commit lo Elhiopiaid's Safeguarding policy and code of conduct. We expect all staff and tTUStees of Elhiopiaid to adhere to the highest sland8rd8, ensuring that we do no hami" act at all kn"me$ with integrity. accounlabiltty and transparency. and to work in the best interests of those we work with. Ethiopiaid's safeguarding policies follows best practtce and is drawn from ACFID Code of Conduct Irecognised as a 'leader' in this). the Core Humanitarian Standard ICHS). ICRC and other bodies. We have Tob¥Jsl $8feguarding and whistleblowing policies In place and ensura that our Elhiopian partners akso have a safeguarding policy in place th* meets a minimum recognized standard. In addition we expect them to adopt our safeguarding policy. We have zero tolerance against discrimination in and out of the workplace. This includes ?￿Y diseriminalion or unfair treatment towards our Ethiopian beneficiaries and partners. our volunteers, stsff and donors. Our duty of care is not limited lo just beneficlaiies. stsff and volunteers, but also includes children and vulnerable adults in the eommunilies seNed by our partners who are not direct beneficiafies bul may be vulnerable lo abL¢Se. Pagg 11 Ethiopiaid Trustees. Report Structure. Governmont and Management Type of governlng document The eompany is a charitable company, limited by guarantee and registered as a charity on 8 November 1989. The company was estsblished under a Memorandum of ASS￿1?110￿ which established the objects and powers of the charitable eompany and is governed under tis Articles of Association. In the event of the company being wound up members are required to eontribule an amount not exceeding £1. Trust0• selection m•thod$ The Trustees are Tesponsible for the governance and oversight of the charity. and have control of the Charity and ils property and funds. Subsequent truslees 8re appointed by the Trustees_ Selection is based upon the skills, kno￿edge or experience whlch they can bring lo the charity as well as their personal commitment lo the charitys aims and objectives. The trustees also aim lo maintain a balance of Reed family members and ¢xtemal trustees to maintsin the charws strong links to the founding family and the Reed company. The directors of the company are also charity trustees for the Pufposes of Gharity law and under the CoMpan￿S Artides are known as members of the Management Committee. Under the requirements of the Memorandum and Articles of Association. the minimum number of membeT5 of the Management Committee is six but (unless otherwsse detemine¢5 by ordinary reSOlut￿nI the maximum number of Trustees that may be appointed shall be eight. Tfustees shall seTV8 a maximum term of three years afte¥ which Trustees can retire or be voted back on to the Trustee board. The Trustees hokl at least three meetings a year including an Annual General Meeting. Pollcies and procosses for induction of trustees New trustees meet existing twstees. the CEO. employees and olheTS involved with the charity as appropriate. An induction p8ck is shared which includes.. the charitys goveming document the charitls latosl annual report and accounts minutes of recent trustee meetings charity commission g{Jidan￿ 'The essential trnstee.. wh81 you need to know ICC31', and 'The hallmark$ of an effective charity ICC101' the charitys policy on dealing witt) conflicts of interest the charills strategic plan the tharity's saleguarding policy and code of conduct Page 12 Ethiopiaid Trustees. Report The charity's organi$atlonal structur8 In 2022 the team increased from eight members to nine (three of which are part time including the CEO. which equates lo the equivalent of 7.7 full time staffj who manage the fvndraising and associated activities for the charty. The team are line managed by the CEO who reports directly to the Board of Tfustees throu9h the Chairperson. Ethiopiaid is a global fundraising and granl-making nthork wtth separalety registered charities in Australia, Canada ar¢d Ireland. Together we raise fvnds from our respecttve countries to provide grants directly to local trusted partners. Our approach to fundraising is strategic and allows us to respond to trends and opportunities in each county of operation in a way that is market approprrate, follows best pra¢li¢& and recognises drffering charity legisl2lion and professional fundraising codes. This allows us to expand our partnèr portfolio and the geographic reach of OLtr projects in a sustsined. predictable and lasting way. Each oifice is responsible for developing and implementing its own eountry specrfic fundraising plans, and together we f¢xus on delivering our overarching gkknal strategy (2020-20241 through a Ltnified organisalion-wKle approach. Ethiopiaid UK works dosely with its sister charities in Ireland, Australia and Canada lo rnaximise global fundraising efforts and to coordinate grant making to Ethiopian partners. Sinee May 2020 Elhiopiaid UK has overseen the opeolional ant# fundraising ath'vFties of Efhiopiaid Ireland, inclucsing the line management of its Charity Officer by the UK CEO. This orrangement will continue in 2023. Rolationship with any related partles In 2022 the char*ty benefrtted from in kind business support (IT, HR and payroll) fr¢Jm Reed Specialist Recruitment Limited. Ethiopiatd was founded by Sir Aec Reed CBE in 1989 and he served as an Elhiopiaid trustee until 2016. Ethiopiaid Trustee Alexandra Chapman is a member of the Reed Family, a shareholder of the Reed Family Companies and a trustee of the Reed Foundation. Elhiopiaid Trustee Tessè Reed is a meml)er of the Reed family. Tessa Reed is the daughter of Nicola Reed {resigned as a Trustee in May 2022}, the granddaughter ol the charity's founder and the daughter of the current Chairman of Reed Specialist RecnJiln7ent. She is also the nieGe of fellow Trustee Alexandra Chapman. pa￿ 13 Ethloplaid Trustees. Report Names of the Trnsteg$ Full list of EthiopÈaid's Trustees and their appointment d8ts5-. . Alexandra Chapman, First appointed'.18109103 Re4ppointment.'13110115 Alexandra Fenn, First appointed.. 11112107 Re-appointrnenl-. 22109117 Edlth Prak, First appointed-. 14110114 Helen Horn, First appointed.. 18103115 Michael Noman, First appointed-. 05105111 • Nicola Reed, First appoint￿.. 14110114. Resigned 0510512022 Sally Grimsdale, First appointed.. 20KI1111 Tessa Reed, First appointed .' 29101119 . Dr Aex Gebreyes. First appointed 2710112022 Ramuneratlon In 2022 Ethiopiaid completed th8 benchmarking of salaries using PLtblished salary benchmarking research for the voluntary sector. The benchmafking project is undertaken every three years to ensure that the ch8rty offers a fair wage that attracts and keeps qualified and experienced staff to lead, manage and support the delivery ofthe charity's aims. The ITUStees are ultimately responsible for setting the salary of the mosl senior member of staff. the CEO. Disclosure of infomiation to audltor Each IrLislee has taken steps that they ought lo h8ve laken as a trustee in order to make themselves aware of any relevant audit infomalK)n and lo establish th* the charity's auditor is aware of that information. The trustees confimi that there is no relevant information that they know of and of which they kn¢)w the auditor is unaware. The annual report was approved by the trustees of the charity on !¥.1.¥1.•3 and signed on ils behall by. A Chapman Trustee Page 14 Ethiopiaid ststement of Trustees, Responslbllltles The Iruslees (who are also the directors of Elhiopiaid for the purposes of company lawl are responsible for preparing the trustees. report and the financtal slalernents in accordance wth applicable law and United lfjngdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). including FRS 102 The Financ6al Reporting Slandard applicable in the UK and Republic of Ireland-. Company law requires the trustees to Prepa￿ financial statements for each financial year. Under company law the trustees must not appfove the financial ststements unless they are satisfied that they give 8 true and fair view of the slate of affairs of the charitsble company and of the incoming resources and application of resou￿$, including ils income and expenditure, of the charttable company for thal period. In preparing these financial ststements, the trustees are reqL*ired lo- select suitable aceounting policies and apply them consistenly., observe the methods and principles in the Charities SORP.. make judgements and estimates that are reasonable and pwdent., stste whether applicable aecounling stsndards. comprising FRS 102 have been followed, subject lo any malerkgl departures disclosed and explained in the financial statements.. and prepare the financial statements on the going concem basis unless il is inappropriate tQ PTesume th81 the charitsble company WFII continu6 in business. The ttustees aro responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply wilh the Companies Act 2006. They are also responsible for safeguarding the assets of the charitab]e company and hence for taking reasonable steps for the prevention detection of fraud and other irregularilias. The Iruslees are responsible for the maintenance and integrity of the corporate and financsal information included on the charitable comp8nls website. Legislation govemin9 the pr8par8tion and disseminats.on of financial slalements may differ from legislation in olher jurisdictions. Approved by the trustees of the charity on .l.t.Ir.l.7..3 and *gned on ils behalf by: A Chapman Trustee Page 15 Ethiopiaid Independent Auditof s Report to the Members of Ethiopiaid Opinlon We have audited the financial ststements of Elhiopiaid Ilhe 'charity'l for the year ended 31 December 2022, which comprise the Slalement of Financial Actiwties. Balance Sheet, SEatement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied iri their preparation ss United Kingdom Accounting Stsndards, comprising Charities SORP - FRS 102 The Financial Reporting Standard applicabEe in the UK and R8publi¢ of Ireland, and 8pplicable law {Uniled Kingdom Generally Accepted Accounting Praclic&l. In our opinion the financial ststements- give a true and fair view of the slate of the charity's affairs as al 31 D8¢ember 2022 and of its incoming resources and application of resources. including its income and expenditure, for the year then ended.. have been properly prepared in accordance wlh United Kingdom Generally Accepted Accounting Praelice.. and have been prepared in accordance w7th the requirements ofthe Companies Act 2006. Basi5 for opinion We conducted our audit in accordance wlh Intemational Standafds on Auditsng {UKI IISAS IUKII and applicable law. Our responsibilities under those stsndards are further described in the auditor responsibilrties for the audit of the financial statements sectKJn of our report. We are independent of the charity in aecordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. induding the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance wlh these requirements. We bolieve that the audit evsdence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concern In auditing the financial slalements, we have concluded that the tfustees use of the going concern basis of accountsng in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identified any material uncertainties relating lo events or conditions that. individually or collectively. may cast signrficanl doubt on the ¢hariVs ability to conb'nue as a going concern for a period of at least twelve months from when the financial 5talemenls were authorised for issue_ Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. Other infomiatlon The Injslees are responsible for the other inlormation. The other infonnation comprises the infomiation included in the annual report. other than the financial statements and our auditor's repKJrt thereon. Our opinion on the tinancial ststemenls does not cover the other information and, except to the extent otherwise explicitty staled in our report. we do not express any fo￿ of assurance conclusion Ihereon. In connection wth our audit of the financial statements. our responsibility is to lead the other information and. in doing so, consider whether the other infomiatson is materially inconsistent with the financial statements or our kno￿edge obtained in the audit or otherwise appèars to be materially misstated. If we identify such material inconsistencies or apparenl material misstatements, we are required to determine whether there is a malefl81 misslalemenl in the financial statements 01 a material misslalemenl of the other information. If. based on the work we have perfomed, we conclude that there is a material misslalement of this other infomiation, we are required to report that fact. We have nothing to report in thts regard_ Page 16 Ethiopiaid Independent Audltorfs Report to the Members of Ethloplald Oplnlon on other matter prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the infomialion given in the Trustees, Report for the financial year for which the financial statements are prepared is consistent wtth the finandal slalements,. and the Trustees, Report has been prepared in accordance with applicable leg81 raquir8monts. Mattor$ on which wg are requirod to report by ex¢eptlon In Ihe light of our k[￿W1edge and understanding of the charity and its environment obtained in the course of the audit. we have not identified materi81 misslalements in the Trustees, Report. We have nothing lo report in rospecl of the foslowing matters where the Companies Act 2006 requires us lo report to you rf, in our opinion-. adequate a¢¢ounling records have nol been kept. or rebJms adequate for our audit have not been re￿Ned from branches not visiled by us,. or the financial slalements ere not in agreement with the accounting records and retums., or certain disc105ures of trustees remuneration specified by law are not made.. or we have not receNed 811 the infomiation and explanations we require for our audit. Respon$ibilitie5 of tru$tses As explained more fully in the Statement of Trustees, Responsibilities (set out on page 151, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees determine is necessary lo en2￿e the preparation of financial ststemenls that are free from material misstatement, whelher due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the chariVs ability to conts'nue as a going concern. disclosing, as applieable, matters related lo going concern and using the going concem basis of accounting unless the trustees either intend lo liquidate the charty or lo cease operations, or have no realistic allernalive bul to do so. Audltor responsibilltles foT the audit of the financial statements Our objectives are to obtsin reasonable assurance about whether the financial statements as a whole are free from material misslalemenl, whether due to fraud or error, and lo issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assuranee. bul is not a guarantee that an audit conductsd in aCCOfdan¢e with ISAS IUKI will always delect a material misstatement when it exists. Misstat8ment5 can arise from fraud or error and are considei8d material rf. in(Sividually or in the aggregate, they couhy reasonably be expecled to influence the economic decisions of users taken on the basis of these financial ststements. The extent to which our procedures are capable of détecting irregularÈties, induding fraud is detailed below: Page 17 Ethiopiald Independent Auditorfs Report to the Members of Ethiopiaid Obtained an understanding of the nature of the intjusty and sector. including the legal and regulatory framwork that the company operates in and how the Company is complying with the legal and regulatory framework.. Inquired of management. and those charged wrth govemance. about Ih&r own identthcatwjn and assessment of the risks or Irregulari￿S. including known and actual, suspected or alleged instances of f¥aud', Discussed matters about non-compliance ￿￿th 18W8 and regulations and how fraud might occur including assessment of how and where the financFal ststements may be susceptibEe to fraud. Howevef. It is the prlmary resporisibility of managemen( wth the oversight of those charged wilh governance, lo ensure that the entity's operations are wnducled in accordan￿ with the provisions of laws and reguEations and for the preventson and detection of fraud. Use of our report This report is made solely to th& charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might stale to the charity's trustees those matters we are reouired tr) slate to them in an auditofs report and for no other purpose. To the fullest extent permrtted by law, we do not accept or assume r8sponsibilty lo anyone other than the charitable company and fts twstees as a body, for OLtr audit work, fo is report. or for the opinions we haye formed. lan Lkjyd (Senior Statutory Auditor) For and on behalf of Milsled Langdon LLP Chartered Accountants and sts￿tOry Auditor 4 Queen Street Bath BA1 1HE D8te'. Page 18 Ethiopiaid Statement of Flnancial Actlvltles for the Year Ended 31 December 2022 (Including Income and ExpendSture Account and Statement of Total Recognised Gains and Losses) Total 2022 Total 2021 Unrestrided Restrlcted Note Income and Endowments from: Donations and legacies Investmènt income 2.035,075 1,101 850.325 2,885,400 1.101 2,709.887 258 Totsl income 2,036,176 850,325 2.886.501 2,710.145 Expendlturè on: Raising funds Charrtable activitios 1170,1301 1,511,275 1170.1301 3,049,371 1225.4601 2,262,329 1,538,096 Totsl expenditure 1,681,405 1.538.096 3.219.501 2.487,789} Nel incomellexpendilurel Transfers belween fur￿$ 354.771 752,183 1687,771} 752,183 1333,000) 222,356 Net movement in funds (397.4121 64.412 1333.000} 222.356 Reconclllation of funds Totsl fvnds brought fofward Total fvnds carried forward 2,564.600 42,832 2,607.432 2,385.076 17 2,167.188 107,244 2.274,432 2.607,432 Al of the charity's activities der*ve from continuing operations during the above two periods. The funds breakdown for 2021 is sh¢ym in note 17 on page 35. The notes on pages 22 to 38 form an integral part of these financial statements. Page 19 Ethloplald {Registration number: 02435882) Balance Sheet as at 31 December 2022 2022 2021 Note Flxed assets Tangible assets Current assèts Debtors Cash at bank and in hand 13 5.595 5,752 14 184.927 2,143,694 2.328,621 207,447 2 425,576 2,633,023 Creditors: Amounts talllng due wlthln one year Net curront assets 15 59.784 (31.3431 2,268,837 2.274,432 2,601,680 Net ass8ts 2,607.432 Funds of the charlty: Restricted in¢omg fvnds Restricted funds 107,244 42.832 Unrestricted Income funds Unrestricted funds 2,167,168 2.564.600 Total funds 17 2,2T4,432 2.607.432 The financial statements on pages 19 10 38 were approved by the trustees. and authorised for issue on .l.&.i.gJTr3. and signed on their behalf by. A Chapman Trustee The notes on pages 22 to 38 fomi an integral part of these financial slalemenls. Page 20 Ethiopiaid Statement of Cash Flows for the Year Ended 31 December 2022 2022 2021 Note Cash flows from operating activitles Nel cash lexpenditureyineome Adjustments to cash flows from nonThcash Items Depreciation Investment income 1333,0001 222,356 1,581 1.101 1,917 258 {332,5201 224,015 Working capital adlustments Decrease in debtors Incre8selldecrsa$el in creditors Net cash flows from operating activities Cash flows from Invgsting actlvttiès Interest receivable and similar income Purchase of langible fixed assets Net cash flows from investing aclNiltes Net decrease in cash and cash equivalents Cash and cash equivalents at 1 January Cash and cash equivalents a131 December 14 15 22.520 28,441 9,005 300.124 (281,5591 167,104 1,101 1,4241 258 1,572 13 3231 1.314 {281,8821 2.425,576 168,4181 2.493.994 2.143,694 2,425,576 All of the cash ftows are derived from continuing operations during the above ￿ per¢ods. The notes on pages 22 to 38 form an integral part of these financial slalements. Page 21 Ethiopiald Notes to the Financial Statements for the Year Ended 31 December 2022 I Charlty status The charity is limited by guarantee. incorporaled in England and Wales, and consequently does not h8ve share caprtal. The address of its registered office 18.. PO BOX 5168 Bath 8A1 ORR Thes& financia5 statements were authorised for issue by the trustees on I $10?123 2 Accounting pollcles Summary of signiflcant accounting pollcles and kgy a¢¢ountlng estimates The principal accounting policies applied in the preparation of these financial slalements are set OLrt below_ These poltcies have been consistenlly applied lo all the years pres8nted, unless otherwise stated. Statement of compliance The financial slalemenls have been prepared In accordance with Accounting and Reporting by Ch2rilies.' Slalemenl of Recommended Practice applicable to ehar*ties preparing their accoLfnls in accordance with the Financial Reporting Stsndard applicabl$ in the UK and Republic of Ireland {FRS 102) leffective 1 January 2019) - (Charities SORP IFRS 1021), the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102}. They also comply wrth the Companies Act 2006 and Charities Act 2011. Basis of preparatlon Ethiopiaid meets the definition of a public benefit entily under FRS 102. Assets and li8bililies are initially recognised at historical cost or transactiors value unless otherwise slated in the relevant accounting policy notes. Golng concem The trustees consider thal there are no material uncertainties about the charills abilty to continue as a going ¢oncem nor any sKJnrficant areas of uncertainty that affect the Ca￿￿n9 value of assets held by the eharily. In¢ome and ondowments All income is recognised once the charty has entitlement to the Income. it Is probable that the income 11 be ￿e1Ved and the amount of the income ￿CeiVable can be measured reliably. Page 22 Ethiopiaid Notes to the Flnancial Statements for the Year Ended 31 December 2022 Donations and legacies Donations are recognised when the charity has been notified in WTiting of both the amount and settlement date. In the event that a donatron is subject lo conditions that require a level of performance by the charity before the charity is entitted lo the fvnds, the income is deferred and not recognised until either those conditions are fiilly met, or the fu￿rIMent of those conditions is wholly within the control of the chaTity and it is probable that these conditions will b8 fulfilled in the repott'ng period. Legacy grfb are recognised on a case by ca$e basis following the grant of probate when the adminislratorlexecutor for the eslale has communicated in writing both the amounl and settlement dale. In the event that the gift is in the fonn of an asset other than ￿sh or a financial asset traded on a recognised stock exchange, recognition is subject lo the value of the gift being reliably measurable with a degree of reasor¢able accuracy and the litk lo the asset having been transferred to the charity- Gifts in klnd In kind support has been recognised al the commercial valtse of giftslservices reeeived, less the amount paid by the Charity. Donalions in kind afe recogni%ed when the ieceipl of the benefit is probable and the economic benefit can be measuTed reliably. being the amount the dients would have been willing to pay for the services or facilities received. A corresponding amount is recognised in expendilure in the period of receipts. Inve$tment Incom& Interest on funds held on dep￿lt is induded when receivable and the amount can be measu￿￿ reliably by the charty- this is normally upon notification of the interest paid or payable by the bank. Volunteer time No amount is in¢luded in the financial slalements for volunteer time in line wlh the Charity SORP IFRS 1021. Expendlture Atl expenditure is recognised once there is a legal or constructive obligation to that expenditure. it is probable settlement is required and the amount can be measured reliably. All ￿SIS are allocated to the applicable expenditure heading that aggregate similar costs lo that category. Where costs cannot be directly attributed lo particular headings they havo been allocated on a basis consistent with the use of resources, wth central staff Costs allocated on the basis of lime spent, and depreciation charges allocated on the portion of the asseys use. Other s¥Jpport costs are allocated based on the spread of stsff costs. Raising funds These are costs incurred in attracting voluntary income. the management of investments and tho$e ncurred in trading activities that raise funds. Charitable acttvitles Charitable expenditure comprises those costs incurred by the charity in the delivery of its actNtties and serwces for its beneficiaries. 11 indudes both costs that can be allocated tlirecyy to such actiV71ies and those costs of an indirect nature necessary to support them. Grant provlslon$ Provisions for grants are made when the intention lo make a grant has been communicated lo the recipient but there is uncertainty about erthei the timing of th8 grant or the amount of grant payable. Page 23 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **Support costs** Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. ## **Governance costs** These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses. ## **Taxation** The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## **Tangible fixed assets** Individual fixed assets costing £40 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. ## **Depreciation and amortisation** Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows: **Asset class Depreciation method and rate** Office equipment 25% reducing balance ## **Debtors** Debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. ## **Creditors** Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. Page 24 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **Fund structure** Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. ## **Pensions and other post retirement obligations** The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. ## **Financial instruments** ## _**Classification**_ Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities. ## _**Recognition and measurement**_ All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires. Page 25 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **3 Income from donations and legacies** ## **Unrestricted** ||**Unrestricted**||||||| |---|---|---|---|---|---|---|---| ||||||**Total**||**Total**| ||**General**||**Restricted**||**2022**||**2021**| ||**£**||**£**||**£**||**£**| |Donations and legacies;|||||||| |Legacies|606,426||100,000||706,426||406,181| |Donations|1,163,815||750,325||1,914,140||2,014,625| |Gift aid reclaimed|259,834||-||259,834||280,081| |Gifts in kind|5,000||-||5,000||9,000| ||2,035,075||850,325||2,885,400||2,709,887| ||||||||| £2,035,075 (2021 - £2,222,532) of the income above was attributable to unrestricted funds and £850,325 (2021 - £487,355) attributable to restricted funds. ## **4 Investment income** ||**Unrestricted**||||| |---|---|---|---|---|---| ||**funds**||**Total**||**Total**| ||**General**||**2022**||**2021**| ||**£**||**£**||**£**| |Interest receivable and similar income;|||||| |Interest receivable on bank deposits|794||794||95| |Other investment income|307||307||163| ||1,101||1,101||258| ||||||| £1,101 (2021 - £258) of the income above was attributable to unrestricted funds and £Nil (2021 - £Nil) attributable to restricted funds. Page 26 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **5 Expenditure on raising funds** ## **a) Other costs of generating donations and legacies** |||||**Total**||**Total**| |---|---|---|---|---|---|---| |||**Direct costs**||**2022**||**2021**| |||**£**||**£**||**£**| |Costs|of generating donations and legacies|144,281||144,281||202,938| |Other|costs of generating funds|25,849||25,849||22,522| |||170,130||170,130||225,460| |||||||| £170,130 (2021 - £225,460) of the expenditure above was attributable to unrestricted funds and £Nil (2021 - £Nil) attributable to restricted funds. ## **6 Expenditure on charitable activities** ## **Unrestricted** ||||**Unrestricted**||||||| |---|---|---|---|---|---|---|---|---|---| ||||||||**Total**||**Total**| ||||**General**||**Restricted**||**2022**||**2021**| |||**Note**|**£**||**£**||**£**||**£**| |Grant funding of|||||||||| |activities|8||1,088,025||1,538,096||2,626,121||1,907,996| |Staff costs|11||290,769||-||290,769||236,962| |Allocated support|||||||||| |costs|7||121,157||-||121,157||109,524| |Governance costs|7||11,324||-||11,324||7,847| ||||1,511,275||1,538,096||3,049,371||2,262,329| ||||||||||| £1,511,275 (2021 - £1,774,705) of the expenditure above was attributable to unrestricted funds and £1,538,096 (2021 - £487,624) attributable to restricted funds. Page 27 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **7 Analysis of governance and support costs** ## **Support costs allocated to charitable activities** ||||||**Admini**||**Other**||||| |---|---|---|---|---|---|---|---|---|---|---|---| ||**Finance**||**Staff**||**-stration**||**support**||**Total**||**Total**| ||**costs**||**costs**||**costs**||**costs**||**2022**||**2021**| ||**£**||**£**||**£**||**£**||**£**||**£**| |Staff|||||||||||| |development|-||6,734||-||-||6,734||3,329| |Insurance|-||-||-||2,625||2,625||2,963| |Office expenses|-||-||-||71,334||71,334||64,264| |Online Donation|||||||||||| |Processing|-||-||1,251||-||1,251||1,493| |Sundry expenses|-||-||-||803||803||1,295| |Refund for|||||||||||| |unused funds|-||-||-||-||-||14,000| |Consultancy fees|-||-||-||3,099||3,099||1,386| |Bank charges|2,516||-||-||-||2,516||2,343| |Legal and|||||||||||| |professional|-||-||-||2,392||2,392||1,960| |Depreciation|-||-||-||1,581||1,581||1,917| |Direct Debit|||||||||||| |processing fee|-||-||-||13,019||13,019||14,574| |Safeguarding|-||-||-||21,330||21,330||-| |Refunds|-||-||-||(5,527)||(5,527)||-| ||2,516||6,734||1,251||110,656||121,157||109,524| ||||||||||||| ## **Governance costs** ## **Unrestricted** ||**Unrestricted**||||| |---|---|---|---|---|---| ||||**Total**||**Total**| ||**General**||**2022**||**2021**| ||**£**||**£**||**£**| |Other non-audit services|4,503||4,503||3,147| |Auditors remuneration|6,821||6,821||4,700| ||11,324||11,324||7,847| ||||||| Page 28 **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **Ethiopiaid** ## **8 Grant-making** ## **Analysis of grants** |**Analysis of grants**|||| |---|---|---|---| ||**Grants**||**to institutions**| ||**2022**||**2021**| ||**£**||**£**| |**Analysis**|||| |Ethiopia Partner Support|2,626,121||1,907,996| The support costs associated with grant-making are £423,250 (31 December 2021 - £354,333). Below are details of material grants made to institutions |Below are details of material grants made to institutions||| |---|---|---| ||**2022**|**2021**| |**Name of Partner**|**£**|**£**| |Afar Pastoralist Development||| |Association|286,000|202,000| |Association of Women's Sanctuary and||| |Development|299,880|147,550| |Cheshire Services Ethiopia|327,000|372,000| |Association of Forced Migrants|-|20,000| |Atsede and Indies Womens Clinic|52,000|12,000| |Emmanuel Development Association|-|19,500| |For Ethiopia|-|11,000| |Support for Children, Women and||| |Older People|202,000|164,200| |Hope Enterprises|264,734|183,834| |FTPIDO|-|15,000| |Healing Hands of Joy|70,000|50,000| |Future Generation Hope for Vulnerable||| |Children|-|20,000| |Aisha Charity Association|-|15,000| |Hope University College|76,500|75,000| |Hospice Ethiopia|100,000|50,000| |Konso Development Association|-|20,000| |Medicine Sans Frontiers|-|100,000| |Rajo Somali Women Living with HIV|18,384|20,000| |Safehands for Mothers|-|20,000| |Cheshire Foundation Action for||| |Inclusion|-|7,000| |Hope of Light|103,648|-| |Dignity Period|-|(10,225)| |Wings of Healing|150,000|123,230| |Hamlin Fistula Hospital & Midwifery||| |College|50,000|50,000| Page 29 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** |Talent Youth Assoication|-||20,000| |---|---|---|---| |Studio Samuel Foundation|45,000||19,287| |Project Harar Ethiopia|-||20,000| |National Podoconiosis Action Network|40,000||40,793| |The Big Give Christmas Challenge|93,874||100,827| |Association Development Horn|20,000||-| |Community Association for Destitute|||| |Abandoned People|15,035||-| |Community Development Service|||| |Association|20,864||-| |Community Sustainable Development|||| |Aid|20,000||-| |Empathy for Life Integrated Dev|||| |Association|24,806||-| |Ethiopian Women with Disabilities|||| |National Association|18,680||-| |Federation of Ethiopian Persons with|||| |Disabilities|19,932||-| |Friends for Integrated Dev Assoc|15,330||-| |Help for Persons with Disabilities|||| |Organisation|20,000||-| |Nutrition 4 Education and Development|19,963||-| |Save Generation Development|||| |Association|20,000||-| |Shalom Integrated Community|||| |Development Org|19,614||-| |Sunrise Ethiopia Development|||| |Program|20,410||-| |Vineyard Children's Home|19,867||-| |Light Ethiopia|20,000||-| |Rainbows 4 children|15,600||20,000| |LeDEG Midwifery College|20,000||-| |For Development Association Ethiopia|50,000||-| |Action on Podoconiosis|80,000||-| |SENEthiopia|(13,000)
2,626,121||-
1,907,996| ||||| £13,000 of restricted income in 2019 for SENEthiopia was not sent due to conflict in the Tigray region this affected SENEthiopia’s ability to deliver their normal support. Page 30 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **9 Net incoming/outgoing resources** Net (outgoing)/incoming resources for the year include: |Net (outgoing)/incoming resources for the year include:|||| |---|---|---|---| ||**2022**||**2021**| ||**£**||**£**| |Audit fees|6,821||4,700| |Other non-audit services|4,503||3,147| |Depreciation of fixed assets|1,581||1,917| ## **10 Trustees remuneration and expenses** No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. ## **11 Staff costs** The aggregate payroll costs were as follows: |The aggregate payroll costs were as follows:|||| |---|---|---|---| ||**2022**||**2021**| ||**£**||**£**| |**Staff costs during the year were:**|||| |Wages and salaries|259,820||211,917| |Social security costs|24,175||20,131| |Pension costs|6,774||4,914| ||290,769||236,962| ||||| The increase in payroll costs during the year were a result of two members of staff being on paid maternity leave and another member of staff joining during the year. The monthly average number of persons (including senior management team) employed by the charity during the year was as follows: |||**2022**||**2021**| |---|---|---|---|---| |||**No**||**No**| |Support|staff|9||8| No employee received emoluments of more than £60,000 during the year. The total employee benefits of the key management personnel of the charity were £58,476 (2021 - £53,461). ## **12 Taxation** The charity is a registered charity and is therefore exempt from taxation. Page 31 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **13 Tangible fixed assets** |**13 Tangible fixed assets**|||||||| |---|---|---|---|---|---|---|---| |||**Furniture and**|||||| |||**equipment**||||**Total**|| ||||**£**|||**£**|| |**Cost**|||||||| |At 1 January 2022||9,702||||9,702|| |Additions||1,424||||1,424|| |At 31 December 2022||11,126||||11,126|| |**Depreciation**|||||||| |At 1 January 2022||3,950||||3,950|| |Charge for the year||1,581||||1,581|| |At 31 December 2022||5,531||||5,531|| |**Net book value**|||||||| |At 31 December 2022||5,595||||5,595|| ||||||||| |At 31 December 2021||5,752||||5,752|| ||||||||| |**14 Debtors**|||||||| |||**2022**||||**2021**|| |||**£**||||**£**|| |Gift aid||66,830||||47,333|| |Prepayments||3,920||||3,920|| |Legacies||44,177||||156,194|| |Other debtors||70,000||||-|| |||184,927||||207,447|| ||||||||| |**15 Creditors: amounts falling due within one year**|||||||| |||**2022**||||**2021**|| |||**£**||||**£**|| |Trade creditors||27,148||||18,005|| |Other taxation and social security||4,523||||5,330|| |Other creditors||18,133||||263|| |Accruals||9,980||||7,745|| |||59,784||||31,343|| ||||||||| ## **16 Pension and other schemes** ## **Defined contribution pension scheme** The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £6,774 (2021 - £4,914). Page 32 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **17 Funds** |**17 Funds**|||||||||| |---|---|---|---|---|---|---|---|---|---| ||||||||||**Balance at**| ||**Balance at**||||||||**31**| ||**1 January**||**Incoming**||**Resources**||||**December**| ||**2022**||**resources**||**expended**||**Transfers**||**2022**| ||**£**||**£**||**£**||**£**||**£**| |**Unrestricted funds**|||||||||| |**_General_**|||||||||| |General Fund|2,514,600||2,036,176||(1,674,905)||(752,183)||2,123,688| |Capacity Building Funds|50,000||-||(6,500)||-||43,500| ||2,564,600||2,036,176||(1,681,405)||(752,183)||2,167,188| |**Restricted funds**|||||||||| |Dignity Period Project|1,793||1,284||-||(3,077)||-| |Hamlin Fistula Hospital|41,039||116,205||(50,000)||-||107,244| |Cheshire Services|-||21,369||(327,000)||305,631||-| |Association for Women's|||||||||| |Sanctuary and|||||||||| |Development|-||222,034||(299,832)||77,798||-| |Support for Women,|||||||||| |Children and Older|||||||||| |People|-||84||(202,000)||201,916||-| |Hope Enterprises|-||226,417||(328,264)||101,847||-| |AFAR Pastoralist|||||||||| |Development Association|-||248,817||(286,000)||37,183||-| |Studio Samuel|-||14,115||(45,000)||30,885||-| |**Total restricted funds**|42,832||850,325||(1,538,096)||752,183||107,244| |**Total funds**|2,607,432||2,886,501||(3,219,501)||-||2,274,432| Page 33 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ||||||||||**Balance at**| |---|---|---|---|---|---|---|---|---|---| ||**Balance at**||||||||**31**| ||**1 January**||**Incoming**||**Resources**||||**December**| ||**2021**||**resources**||**expended**||**Transfers**||**2021**| ||**£**||**£**||**£**||**£**||**£**| |**Unrestricted funds**|||||||||| |**_General_**|||||||||| |General Fund|2,251,975||2,222,790||(2,000,165)||40,000||2,514,600| |Capacity Building Funds|50,000||-||-||-||50,000| ||2,301,975||2,222,790||(2,000,165)||40,000||2,564,600| |**Restricted**|||||||||| |Neglected Tropical|||||||||| |Disease|40,000||-||-||(40,000)||-| |Dignity Period Project|2,062||1,793||(2,062)||-||1,793| |Hamlin Fistula Hospital|41,039||58,022||(58,022)||-||41,039| |Cheshire Services|-||430||(430)||-||-| |Association for Women's|||||||||| |Sanctuary and|||||||||| |Development|-||174,601||(174,601)||-||-| |Support for Women,|||||||||| |Children and Older|||||||||| |People|-||220||(220)||-||-| |Disability|-||5,907||(5,907)||-||-| |Hope Enterprises|-||19,770||(19,770)||-||-| |Education|-||25,533||(25,533)||-||-| |Emergency relief|-||110,338||(110,338)||-||-| |Maternal Health|-||41,362||(41,362)||-||-| |Women and Girls|-||18,587||(18,587)||-||-| |General Fistula|||||||||| |Programme|-||2,292||(2,292)||-||-| |Hope Enterprises|||||||||| |University College|-||28,500||(28,500)||-||-| |**Total restricted funds**|83,101||487,355||(487,624)||(40,000)||42,832| |**Total funds**|2,385,076||2,710,145||(2,487,789)||-||2,607,432| Page 34 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** The specific purposes for which the funds are to be applied are as follows: ## **Capacity Building Funds** This fund has been created to strengthen the infrastructure and reputation of Ethiopiaid’s local partners to help them improve the planning, delivery and evaluation of activities. We see this as an important tool to support the development and sustainability of our partners, helping them to be ‘funder ready’ and able to secure funding from other international and local donors. Funding of the Capacity Strengthening Fund is provided by a grant maker who has a keen interest in this focus area and understands the importance of working with local partners to build their organisational resilience and capacity. ## **Neglected Tropical Disease** To cover the accommodation costs incurred by Cheshire Services Rehabilitation Centre for patients and carers recovering from complex surgeries undertaken by the charity Facing Africa. ## **Hamlin Fistula Hospital and Midwifery College** To fund obstetric fistula surgeries, rehabilitation and midwifery training. ## **Cheshire Services** To fund the costs of programmes for children and young people living with disabilities and the scaling up of wheelchair production at Cheshire’s Menagesha Rehabilitation Centre. ## **Association for Women’s Sanctuary and Development** To fund the running costs of the organisation’s safe house and gender based violence prevention programmes in Addis Ababa. ## **Support for Women, Children and Older People** To fund monthly welfare pensions for over 1,071 destitute elders and 100 orphaned vulnerable children. ## **Special Educational Needs Ethiopia (previously SENTigray)** To fund two new staff posts to support visually impaired children at the Mekele Blind School, Tigray, and visually impaired teenagers living independently in the community. ## **Afar Pastoralist Development Association** To fund female genital mutilation prevention programmes in communities in the Afar region of Ethiopia. Restricted funds were also raised for emergency relief support delivered by APDA. ## **Dignity Period Project** To fund the expansion of a schools menstrual hygiene programme in the Afar and Tigray regions. ## **Hope Enterprises** To fund the technical vocational training programmes delivered by Hope Enterprises and associated core costs. ## **Hospice Ethiopia** To fund the delivery and expansion of a community based palliative care programme in Addis Ababa, Bahirdar and Hawassa. ## **Hope Enterprises University College** To fund students to enable them to continue their studies. Page 35 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **Healing Hands of Joy** To fund the training of fistula patients to become safe motherhood ambassadors. The transfers between funds are to cover resources expended in excess of incoming resources within the restricted funds. These allocations have been made from the General Fund. ## **18 Analysis of net assets between funds** |||||||||||||**Total funds**| |---|---|---|---|---|---|---|---|---|---|---|---|---| |||||||||||||**at 31**| ||**Unrestricted funds**|||||||**Restricted**||||**December**| ||**General**|||**Designated**||||**funds**||||**2022**| ||**£**|||**£**||||**£**||||**£**| |Tangible fixed assets|5,595|||-||||-||||5,595| |Current assets|2,064,783|||50,000||||213,838||||2,328,621| |Current liabilities|(59,784)|||-||||-||||(59,784)| |Total net assets|2,010,594|||50,000||||213,838||||2,274,432| |||||||||||||| |||||||||||||**Total funds**| |||||||||||||**at 31**| ||**Unrestricted funds**|||||||**Restricted**||||**December**| ||**General**|||**Designated**||||**funds**||||**2021**| ||**£**|||**£**||||**£**||||**£**| |Tangible fixed assets|5,752|||-||||-||||5,752| |Current assets|2,540,191|||50,000||||42,832||||2,633,023| |Current liabilities|(31,343)|||-||||-||||(31,343)| |Total net assets|2,514,600|||50,000||||42,832||||2,607,432| |||||||||||||| |**19 Analysis of net funds**||||||||||||| |||||||||||||**At 31**| |||||**At 1 January**||||**Financing**||||**December**| |||||**2022**||||**cash flows**||||**2022**| |||||**£**||||**£**||||**£**| |Cash at bank and in hand||||2,425,576||||(282,213)||||2,143,363| |Net debt||||2,425,576||||(282,213)||||2,143,363| |||||||||||||**At 31**| |||||**At 1 January**||||**Financing**||||**December**| |||||**2021**||||**cash flows**||||**2021**| |||||**£**||||**£**||||**£**| |Cash at bank and in hand||||2,493,994||||(68,418)||||2,425,576| |Net debt||||2,493,994||||(68,418)||||2,425,576| Page 36 ## **Ethiopiaid** ## **Notes to the Financial Statements for the Year Ended 31 December 2022** ## **20 Related party transactions** During the year the charity made the following related party transactions: ## **Reed Specialist Recruitment Limited** Gifts in kind were received for the use of Reed Specialist Recruitment Limited office space and other fund raising costs, totalling £5,000 (2021: £9,000). This transaction has occurred on an arm’s length basis. Reed Specialist Recruitment Limited provides payroll services for Ethiopiaid for free. No value can be determined for the provision of this service as Reed Specialist Recruitment Limited does not charge third party companies as a payroll bureau. At the balance sheet date the amount due to/from Reed Specialist Recruitment Limited was £Nil (2021 - £Nil). ## **A Chapman (a trustee)** A Chapman made donations of £290 (2021: £1,120) to Ethiopaid during the year At the balance sheet date the amount due to/from A Chapman (a trustee) was £Nil (2021 - £Nil). **E Prak (a trustee)** E Prak made donations of £240 (2021: £240) to Ethiopaid during the year At the balance sheet date the amount due to/from E Prak (a trustee) was £Nil (2021 - £Nil). **A Fenn (a trustee)** A Fenn made donations of £45 (2021: £Nil) to Ethiopaid during the year At the balance sheet date the amount due to/from A Fenn (a trustee) was £Nil (2021 - £Nil). Page 37