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Charity Registration Number: 1154288
Company Registration Number: 08553893
Human Appeal International
Annual Trustees Report &
Consolidated Financial Statements
For the year ended 31 December 2014
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Contents
Message from our CEO 3
Trustees Report 4
Responsibilities of Trustees 10
Reference and Administrative Details 11
Independent Auditors’ Report 12
Statement of Financial Activities 14
Balance Sheet 15
Cash flow Statement 16
Note to the Accounts 17
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MESSAGE FROM OUR CHIEF EXECUTIVE, OTHMAN MOQBEL.
At Human Appeal we defined our organisational strapline “more than just words” carefully. We wanted it to
reflect our ultimate goal: actions which make a real difference to the lives of some of the world’s poorest
people. Not just a sticking plaster for today, but empowering people to build a long-term sustainable future.
This year saw our income almost double, enabling us to help even more vulnerable people.
2014 will be remembered as the year in which 2,200 people, mostly civilians, lost their lives in the Gaza war.
The horrific war brought five weeks of relentless death and destruction to the area; the UN estimates that over
20,000 buildings were destroyed or left uninhabitable. As an established aid organisation in Gaza, Human
Appeal was able to respond to the crisis within 24 hours, which means we were one of the first to provide
clean water, food and medical supplies and basic essentials to over a million people.
In addition to providing essential emergency relief, Human Appeal has provided hospital beds, essential
medical and surgical equipment, medicines and liquids. We also installed an air conditioning system for the
over-crowded hospital wards of Al-Shifa hospital.
Human Appeal have also helped people to rebuild their lives in Palestine through our sustainable livelihoods
projects, which promote self-sufficient and empowered communities. We provided farmers with the means to
plant tens of thousands of olive trees and through our orphan sponsorship programme we have supported
hundreds of Gazan orphans – the largest proportion of children supported by our hugely successful
programme, which supports thousands of orphans worldwide.
Our sustainable livelihoods projects did not just take place in Palestine. Human Appeal constructed a building
for a middle school in Gurrah in Pakistan, provided water and sanitation facilities to 20 government schools of
district Faisalabad in Pakistan and helped farmers in Bangladesh to introduce a modern irrigation system to
name but a few.
2014 also saw the three-year anniversary of the war that is tearing Syria apart. Our experience over previous
years has meant that Human Appeal has become a specialist in bread and food distribution in the area,
delivering 50,000 food parcels annually and 170,000 loaves of bread a day to internally displaced people in the
country – that’s over 62 million essential loaves a year. We are proud to have had our expertise in this field
recognised by the World Food Programme, who collaborated with us to distribute 4,800 food parcels to
internally displaced people in Northern Syria in 2014.
In addition to our work on food delivery, we issued 10,000 hygiene kits to families in Syria during the year. We
are also part of a consortium of eight NGOs that form area’s the Polio Task Force which aims to vaccinate
against polio in seven districts in Northern Syria.
As Human Appeal continues to grow we are able to help even more people, both in emergency situations, and in the building of sustainable livelihoods to help them live their lives free of poverty. This is only made possible through the generosity of our donors and the dedicated work of our staff and trustees.
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Trustees Annual and Strategic Report 2015
This is the trustees annual report and the audited consolidated financial statements of Human Appeal International for the year ended 31 December 2014
Introduction
Human Appeal International changed its legal structure at the close of 31st December 2013 from a Trust to a
Charitable company, as such the previous organisation (Charity number: 1005733) transferred its operations
and assets to the new charitable company on the 01 Jan 2014 (Charity No: 1154288 and Company Registration
Number: 08553893).
This report represents the first year of the new legal entity.
Objectives and Activities
Our Vision
A just, caring and sustainable world free of poverty
Our Mission
Develop immediate and long term sustainable interventions
Empower local communities through inclusive development to build local capacity
Champion peace and justice through effective advocacy
Protection and security of our stakeholders
Our Values
Excellence, Professionalism and Commitment in our work
Trust and Respect for all
Integrity and Transparency in all we do
Empowerment and Equality in dealing with others
Charitable Objectives
The prevention or relief of poverty anywhere in the world by providing grants, items and services to
individuals in need and/or charities or other organisations working to prevent or relieve poverty;
The prevention or relief or poverty or financial hardship anywhere in the world by providing or
assisting in the provision of education, training, heath care objects and all the necessary support
designed to enable individuals to generate a sustainable income and be self-sufficient;
The relief of financial need and suffering amongst victims of natural or other kind of disasters in the
form of money or other means deemed suitable for persons, bodies, organisations and/or countries
affect.
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What we set out to achieve this year
HAI strategy is to develop and deliver projects that can be categorised into four main programmes.
These are:
1. Emergency and relief programmes.
2. Sustainable Development
3. Orphans programmes.
4. Social programmes.
These programmes are interrelated and provide a holistic approach to humanitarian relief and development.
In many cases after HAI deliver emergency aid we find that there are many orphans that need support,
communities that need sustainable development to get back on their feet and social programmes that allow
communities to heal after devastation.
Achievements and Performance
Sustainable Development
Maternal and Child Health Care Project (Health) – Bangladesh
Human Appeal established a two year project to reduce maternal and child mortality rates in Satkhira district
targeting approximately 2,000 poor and ultra-poor pregnant women. Human Appeal will establish and equip a
community level health centre ward, recruit and train 9 traditional birth attendants and 6 female health
workers, provide awareness-raising on maternal health care to encourage behavioural change in seeking
antenatal care, delivery care, post-natal care and family planning. This project will also Increase institutional
delivery by establishing a health system to refer complex and high-risk medical cases to district hospitals, and
improve the nutrition to increase birth weight of babies and reduce infant mortality.
Back to School 2014 (Education) – Macedonia and Palestine
Human Appeal regularly distributes school kits to children in need. In 2014 human appeal concentrated on
Macedonia and Palestine. Macedonia has high levels of educational deprivation and low standards of
education, particularly in rural areas where we distributed 500 school kits to children who needed it. In
Palestine, Human Appeal also distributed school kits and uniforms to 530 orphans.
Middle School Building Construction (Education) – Pakistan
Human Appeal has constructed a building for a READ Foundation middle school in Gurrah, District Kotli in AJK.
This should provide a quality education to 426 underprivileged children in a safe and supportive environment.
WASH facilities for Schools (WASH) – Pakistan
The project will provide Water and Sanitation facilities in 20 Government Schools of district Faisalabad,
Pakistan. Faislabad, although a thriving industrial city, lacks basic water and sanitation facilities. Filtration
water plants will provide over 3000 students and staff members with clean drinking water. Toilets and wash
basins will be constructed along with awareness raising sessions on good health practices e.g. frequent hand
washing. Flyers and pamphlets will be distributed alongside these activities with the aim to improve the overall
health of the children and teachers and reduce absenteeism.
Olive Trees (Livelihoods) – Palestine
This project aims to provide the Palestinian farmers with a olive cuttings from 3 years to 5 years and length of
160 cm to 2 m so that they can benefit at the earliest possible opportunity, where farmers reap the rewards in
the following year. This should benefit 150 – 200 families.
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Empowerment of Vulnerable Women - UK
This one year project builds on a successful three month pilot project to provide holistic support for vulnerable
women who have experienced domestic violence
Emergency Relief
Bread flour distribution, Food parcels and hygiene kit distribution (Emergency Relief) - Syria
Human Appeal sourced and distributed 50,000 food parcels and 10,000 hygiene kits to disadvantaged families
and internally displaced people (IDPs) in Syria. Parcels contained staple food items such as rice, pasta, lentils,
oil and sugar; hygiene kits contain many basic items including washing powder, shampoo and toothpaste.
Medical Relief (Emergency Relief) – Syria
There is a lack of medical supplies in many parts of Syria. To address the shortage of medical equipment,
human appeal will provide, via its partners, support to the Reyhanli Rehabilitation Centre to offer better
medical services/ facilities to patients. Human appeal will supply the centre with the essential medical
equipment urgently required to provide care to patients in the 75 bed capacity facility. The expected results
are to ameliorate the medical services/ facilities provided by the rehabilitation centre. Project beneficiaries are
approximately 2000 civilians per month injured from military operations in Syria. Human Appeal will also
facilitate the medical care (an artificial leg) for sister Noor at the centre.
Food parcel distribution (WFP - World Food Program Funded) – Syria
In collaboration with the World Food Programme we distributed 4,800 food parcels to internally displaced
people in camps in Northern Syria. The food parcel recipients were identified on the basis of vulnerability
criteria such as access to food sources, cooking facilities, women and children. The success of this project has
resulted in a signed MOU for a further two month distribution plan in November and December 2014.
Bosnia Floods Emergency
After severe flooding hit the central and northern part of Bosnia and Herzegovina almost two thirds of
population in country (about 2 million) lost their homes and possessions, public health issues developed and
communications and local economies were devastated. Human Appeal provided emergency hygiene packages
to 100 of the most vulnerable households (about 500 people) in the affected areas.
Gaza Emergency (Emergency)
The Gaza emergency intervention this year consisted of approximately 19 areas:
Country Funds committed No. of beneficiaries
Medical £320,000 560,000
Food £770,000 518,600
Syria Humanitarian Mission
Projects
Between June to October 2014; HAI has been focussed on delivering projects in three priority sectors - Water,
sanitation and hygiene (WASH) ; food security and education. An estimated 1.2 million beneficiaries have been
reached.
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Seasonal/Orphan activities
Orphans 2014
The total number of orphan sponsored this year is 6807 with the money spent at approximately £333k. The
target was to take the number of sponsorships up to 7,500 by year end.
Food Projects
We supported food programmes across 21 countries across multiple continents. The total spend for during the
Muslim month of Ramadan and Dhu al Hijjaj (12th month of lunar calendar) specific food projects were
implemented approximately £1.5M, supporting communities across these countries contributing to nutrient
needs.
Partnerships We have started to build its partnerships and institutional funding strategy with donors in Turkey, and elsewhere including DFID, OFDA, ECHO, UN agencies such as WFP, UNCIEF, UNHCR; and major INGOs including International Red Cross, Care International, Save the Children, Relief International and Qatar Red Crescent.
Challenges
As part of our risk mitigation strategy not work within areas under control of sanctioned groups has created new challenges to reach additional target locations and beneficiaries
Other Human Appeal offices working within the Syria emergency with other partners.
Public Benefit
The trustees have taken into account the statutory duties of public benefit this report highlights examples of
Human Appeal’s activities that illustrate how our work fulfils public benefit and the benefits it brings to
individuals and communities globally, irrespective of their race, religion, or creed. We develop strategic plans
to make certain that we provide maximum public benefit and achieve our strategic objectives, which fall under
purposes defined by the Charities Act 2011. In setting the Charity’s objectives and planning activities, the
trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.
Employees
We support our employees and develop their skills. We encourage all of our colleagues to engage with the
strategy and objectives, and to give their suggestions and views on performance and strategy. We are
committed to the Investors in People code of good practice. We are an equal opportunities employer and are
proud to recruit and promote our staff based on their aptitude and ability, without discrimination. Staff benefit
from policies focusing on training and career development as well as regular supervision and an annual
appraisal.
Volunteers
We express our gratitude to the significant support from our volunteers, our committed and dedicated
volunteers are the heart and soul of Human Appeal, and we rely on them to be able to deliver our services. We
manage all of our volunteers. During 2014, volunteers contributed substantial hours of work by giving their
time to support our call centre and fundraising activities and events.
Financial Review for 2014
Donations
During the year, Human Appeal International raised £19m directly from donors. The total income also includes
the following:
Gift in Kind of 0.86m from World Food Programme.
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£3.5m of reserves (including assets and liabilities) by the previous legal entity Human Appeal International
‘trust’ to the new legal entity Human Appeal International, the charitable company.
Donations from the New France operation of around £0.4m.
The new Human Appeal entity was able to raise an additional £11.2m income compared to the previous entity
during 2013.
Expenditure
After spending £17.4m during the year the carry forward reserves stood at £3.8m as at 31 Dec 2014.
During the year £13.8m (79% of total spend) was spent on charitable activities, including £11.2m of grants
towards various programmes worldwide. Main programmes consisted of Emergencies £4.5m, Food £2.9m and
Orphans £2.1m.
The total support cost of £1.3m represented 6.1% of the total income in the year and 7.4% of total
expenditure. The cost of fund raising was £3.5m (16.5% of total income).
A summary of the income and expenditure is shown on the Statement of Financial Activities in the format
required by the Charity Commission’s Statement of Recommended Practice (SORP), “Accounting and Reporting
for Charities”.
Financial position and reserves policy
The trustees review the charity’s reserves policy each year, ensuring there are a sufficient level of reserves and
we maintain a balance between spending on charitable activities and setting aside a reserve to protect Human
Appeal.
At 31 December 2014, Human Appeal held total funds and reserves of £3.8m, which included £1.7m 44.7% of
unrestricted reserves.
The Trustees consider the unrestricted reserves to be sufficient in meeting the future core cost of the charity.
Risk Management
All significant activities undertaken are subject to risk review as part of the initial project assessment and
implementation. Major risks are determined and ranked in terms of their potential impact and likelihood of
occurrence.
Major risks are identified as those that will have a significant effect on operational performance, achievement
of the charity's aims and objectives and meeting the expectations of its beneficiaries and supporters. The
trustees, on an on-going basis review these risks and ensure sufficient systems are put in place to manage any
risk that is identified.
The following are deemed as key risks:
Inadequate systems and process: The charity is making strategic investment in its back office functions
as it grows to ensure a fit for purpose organisation structure with the correct tools is in place.
The charity is in the process of the setting a fit for purpose Internal Audit function supported to
provide trustees assurance on the state of control worldwide.
Compliance to anti-terror and counter extremism regulations: The charity has in place various relevant
policies that all staff worldwide are obliged to comply with. All Partners and key staff are vetted.
Reputational risks: The charity has employed adequate PR resources and protocols to help charity
defend itself against malicious media attacks. All projects and campaigns are screened to identify and
manage any reputational risks.
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Plans for Future Periods
Our strategic priorities will focus on:
Humanitarian operations in food security (food parcels and flour); livelihoods (livelihood kits); WASH (water wells and hygiene kits), health (shelter, primary and secondary facilities, maternal health) and education (school management and resources)
Humanitarian support for Syria.
Assessment, monitoring and capacity building
Increase logistical capacity to support operational delivery of activities
Structure, governance and management
Governing Document
Human Appeal International is a registered Non-Governmental Organisation originally established (NGO) in
1991 and re-registered as a charitable company (company limited by guarantee and as a charity with the
Charity Commission in 2013). Human Appeal International changed its legal structure at the close of 31st
December 2013 from a trust to a Charitable company, as such the previous organisation (Charity
number: 1005733) transferred its operations and assets to the new charitable company on the 01/01/2014
(Charity No: 1154288 and Company Registration Number: 08553893),
Human Appeal International is registered with the UK Charity Commission and seeks to promote sustainable
economic and social development in 24 countries by working with local communities through relief and
development programmes.
Appointment of Trustees
No new trustees have been appointed in the period. Any new trustees are nominated by members of the
board of trustees, interviewed and then appointed where they have the necessary skills and knowledge to
contribute to the charity's development and management.
Trustee Induction and Training
The new trustees are briefed on their legal obligations under charity laws and regulations, the Committee and
decision making process, the recent financial performance and the future plans and objectives of the charity.
They also meet other trustees and any key employees.
Organisation
The board of trustees administer the charity. Mr Othman Moqbel is the CEO of Human Appeal International,
and manages the day to day operations of the charity with his team of staff. To facilitate effective operations,
Mr Othman Moqbel has delegated authority for operational matters including, finance, employment and
donation making.
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Reference and Administrative Details
Company and Charity Name: Human Appeal International
Charity Registration Number: 1154288
Company Registration Number: 08553893
Principal and Registered Office:
Victoria Court 376 Wilmslow Road Fallowfield Manchester M14 6AX Directors and Trustees Dr N Al-Kaddo, Chairman
Mr K Al-Nahyan
Mr S Al-Nuami
Dr H Nagi
Mr M Yousef
Mr I Zahida
Chief Executive Officer Mr Othman Moqbel
Solicitor Johns and Saggar 16 High Holborn London WC1 6BX
Bankers National Westminster Bank Plc 9/11 Precinct Centre Oxford Road Manchester M13 9NX
Auditors Haines Watts Leicester LLP Hamilton Office Park 31 High View Close Leicester LE4 9LJ
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Independent Auditors' Report to the Members of
Human Appeal International
We have audited the financial statements of Human Appeal International for the year ended 31 December 2014, set out on pages 14 to 30. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our 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 auditors' 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 its members as a body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of trustees and auditors
As explained more fully in the Trustees' Responsibilities Statement set out on page 3, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees' Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
give a true and fair view of the state of the charitable company's affairs as at 31 December 2014 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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HUMAN APPEAL INTERNATIONAL
GROUP STATEMENT OF FINANCIAL ACTIVITIES AND INCOME AND EXPENDITURE ACCOUNT
For the year ended 31 December 2014
Note Unrestricted
Restricted
Total
Funds
Funds
2014
£
£
£
Incoming resources
Incoming resources from generated funds
- Voluntary income 2 6,417,090
12,672,344
19,089,434
- Activities for generating funds 3 -
2,113,322
2,113,322
- Investment income 4 13,647
-
13,647
Other incoming resources 5 10,648
-
10,648
Total incoming resources 6,441,385
14,785,666
21,227,051
Resources expended
Costs of generating funds
Costs of generating voluntary income 6 1,769,735
1,711,737
3,481,472
Charitable activities 7,8 404,949
13,460,182
13,865,131
Governance cost 11 41,183
-
41,183
Total resources expended 2,215,867
15,171,919
17,387,786
Net incoming/(outgoing) resources
4,225,518
(386,253)
3,839,265
Transfers
Gross transfers between funds 24 (2,486,000)
2,486,000
-
Net movement in funds
1,739,518
2,099,747
3,839,265
Reconciliations of funds Total funds brought forward -
-
-
Total funds carried forward 24 1,739,518
2,099,747
3,839,265
All incoming resources and resources expended derive from continuing activities.
The charity has no recognised gains or losses for the year other than the results above.
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Human Appeal International Group Cash flow Statement for the Year Ended 31 December 2014
2014 £ Reconciliation of net outflow to net cash flow from operating
activities
Net income and resources 3,839,265
Reconciliation to cash generated from operations
Depreciation 30,761 Decrease/(Increase) in debtors (1,538,957) Increase/(decrease) in creditors 3,325,116 5,621,185 Capital expenditure and financial investment
Purchase of tangible fixed assets (1,139,478) (1,139,478)
Net increase/(decrease) in cash 4,481,707 Cash at bank and in hand as at 1 January 2014 - Cash at bank and in hand at 31 December 2014 4,481,707
Reconciliations in net funds 01-Jan-14
Cash flow
Non - Cash Movement 31-Dec-14
£
£ £ £ Cash at bank and in hand -
4,481,707 - 4,481,707
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Human Appeal International Notes to the Financial Statements for the Year Ended 31 December 2014
1 Accounting policies
a. Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities (SORP 2005)', issued in March 2005, applicable accounting standards and the Companies Act 2006.
b. Consolidation and group financial statements
Human Appeal International is a charitable company limited by guarantee. Its main activities are delivering emergency aid to parts of the world affected by natural or unnatural disasters and setting up various development projects that help empower people in need.
The group financial statements consolidate those of Human Appeal International and its charity fund Appel Humanitaire International in France. The results of Appel Humanitaire International have been incorporated on a line-by-line basis in accordance with current legislation.
Human Appeal International has taken advantage of section 408 of the Companies Act 2006 and paragraph 397 of the SORP and has not included its own income and expenditure account in the financial statements.
Note 15 also gives the full details of the income and expenditure of the Appel Humanitaire International, a charity fund in France.
The charity’s overseas field offices are established as separate independent legal entities in their own jurisdictions and, consequently, their results are not included within these consolidated financial statements.
c. Transfer of Assets and Liabilities Human Appeal International changed its legal structure at the close of 31st December 2013 from a Trust to a
Charitable company, as such the previous organisation (Charity number: 1005733) transferred its
operations and assets to the new charitable company on the 01 Jan 2014 (Charity No: 1154288 and
Company Registration Number: 08553893). As such the assets and liabilities of the previous entity were
transferred to the charitable company at book value.
d. Fund accounting policy
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.
Restricted 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.
Further details of each fund are disclosed in note 24.
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Continued Notes to the Financial Statements for the Year Ended 31 December 2014
e. Incoming resources
Voluntary income including donations and grants that provide core funding or are of a general nature is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.
Incoming resources from tax reclaims are included in the statement of financial activities at the same time as the gift to which they relate.
Investment income is recognised on a receivable basis.
Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract.
f. Gifts in Kind
Gifts in kind for use by the charity are included in the accounts at their approximate market value at the date of receipt. Gifts in kind for distribution are included in the accounts at their approximate market value at the date of distribution. g. Resources expended
Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Costs of generating funds are the costs associated with attracting voluntary income.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
h. Governance costs
Governance costs include costs of the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters.
i. 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.
j. Fixed assets
Individual fixed assets costing £500 or more are initially recorded at cost.
k. Depreciation
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:
Land & Buildings Over 50 years
Plant and machinery Over 15 years
IT Equipment Over 5 years
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Continued Notes to the Financial Statements for the Year Ended 31 December 2014
l. Investment properties
Certain of the charity's properties are held for long-term investment, as follows:
No depreciation is provided in respect of investment properties and they are revalued annually. The surplus or deficit on revaluation is transferred to the revaluation reserve unless a deficit below original cost, or its reversal, on an individual investment property is expected to be permanent, in which case it is recognised in the statement of financial activities account for the year.
m. Investments
Fixed asset investments are included at market value at the balance sheet date.
Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the statement of the financial activities in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on the market value at the year end.
n. Foreign currencies
Transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the closing rates at the balance sheet date and the exchange differences are included in the statement of financial activities.
o. Operating leases
Rentals payable under operating leases are charged in the statement of financial activities on a straight line basis over the lease term.
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Continued Notes to the Financial Statements for the Year Ended 31 December 2014
2 Voluntary income
Unrestricted
Restricted
Total
Funds
Funds
2014
£
£
£
Donations and legacies
Appeals and donations
2,119,084
10,914,256
13,033,340
Gift Aid tax reclaimed
1,697,648
-
1,697,648
Donated goods
-
864,099
864,099
Donated assets for use by the charity
2,600,358
893,989
3,494,347
6,417,090
12,672,344
19,089,434
3 Activities for generating funds
Unrestricted
Restricted
Total
Funds
Funds
2014
£
£
£
Events Income
Appeals and donations
-
2,113,322
2,113,322
4 Investment income
Unrestricted
Restricted
Total
Funds
Funds
2014
£
£
£
Income from investment properties
9,000
-
9,000
Interest on cash deposits
4,647
-
4,647
13,647
-
13,647
5 Other incoming resources
Unrestricted
Restricted
Total
Funds
Funds
2014
£
£
£
Other income
Foreign currency gains/(losses)
10,648
-
10,648
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Continued Notes to the Financial Statements for the Year Ended 31 December 2014
6 Costs of generating voluntary income Unrestricted
Restricted
Total
Funds
Funds
2014
£
£
£
Donations and legacies
Fundraising costs
28,527
28,704
57,231
Publicity costs
221,133
228,134
449,267
Event costs
989,484
1,056,927
2,046,411
Wages and salaries
258,300
266,480
524,780
Printing, postage and stationery
26,452
27,291
53,743
Advertising
49,117
50,672
99,789
Support costs allocated
196,722
53,529
250,251
1,769,735
1,711,737
3,481,472
7 Analysis of charitable activities
International
Total
Relief
2014
£
£
Grant funding of activities
11,221,747
11,221,747
Fundraising costs
24,226
24,226
Publicity costs
195,058
195,058
Event costs
892,030
892,030
Employment costs
405,856
405,856
Printing, posting and stationery
29,924
29,924
Advertising and promotion
42,768
42,768
Employment costs
299,409
299,409
Establishment costs
123,288
123,288
Repairs and maintenance
1,863
1,863
Office expenses
315,585
315,585
Subscriptions and donations
28,993
28,993
Cleaning
4,437
4,437
Motor expenses
58,920
58,920
Travel and subsistence
136,569
136,569
Bank charges
59,849
59,849
Depreciation of tangible fixed assets
24,609
24,609
13,865,131
13,865,131
P a g e | 22
Continued Notes to the Financial Statements for the Year Ended 31 December 2014
8 Details of charitable activities
Activities
Grant funding
Support costs
Total
undertaken
of activities
allocated
2014
directly
£
£
£
£
International Relief
1,589,862
11,221,747
1,053,522
13,865,131
9 Support costs
Donations and
International
Governance
Total
legacies
Relief
2014
£
£
£
£
Employment costs
74,668
299,409
-
374,077
Establishment costs
24,128
123,288
-
147,416
Repairs and maintenance
466
1,863
-
2,329
Office expenses
78,896
315,586
-
394,482
Subscriptions and donations
998
28,993
-
29,991
Cleaning
1,109
4,437
-
5,546
Motor expenses
14,730
58,920
-
73,650
Travel and subsistence
34,142
136,569
-
170,711
Legal and professional costs
-
-
20,672
20,672
Bank charges
14,962
59,849
-
74,811
Depreciation of tangible fixed assets
6,152
24,609
-
30,761
250,251
1,053,523
20,672
1,324,446
10 Grant making
Projects
Activity
£
General
International Relief
55,900
Education
International Relief
455,155
Orphans
International Relief
2,106,502
Emergencies
International Relief
4,466,880
Food
International Relief
2,932,690
Income Generation
International Relief
252,286
Medical
International Relief
303,150
Safe Water
International Relief
461,629
Shelter
International Relief
187,555
11,221,747
P a g e | 23
Continued Notes to the Financial Statements for the Year Ended 31 December 2014
11 Governance costs
Unrestricted
Restricted
Total
Funds
Funds
2014
£
£
£
Trustee meetings
497
-
497
Trustee expenses
7,500
-
7,500
Auditors' remuneration
7,200
-
7,200
Legal and professional costs
25,986
-
25,986
41,183
-
41,183
The Trustees received no remuneration during the year. The Trustees expenses consists of travel costs only.
12 Net incoming resources
Net incoming resources is stated after charging/(crediting):
2014
£
£
Hire of plant and machinery -
49,399
operating leases
The audit of the charity's annual
accounts
7,200
7,200
Foreign currency gains
(10,648)
Depreciation of owned assets
30,761
P a g e | 24
Continued Notes to the Financial Statements for the Year Ended 31 December 2014
13 Employees' remuneration
The average number of persons employed by the charity during the year
was as follows:
2014
Number
Average number of employees
77
The aggregate payroll costs of these persons were as follows:
2014
£
Wages and salaries
1,150,991
Social security
84,044
1,235,035
No employee received remuneration in excess of £60,000 per year.
Senior employees
During the year, defined contribution pension contributions on behalf of these staff amounted to £nil.
14 Taxation
The company is a registered charity and is, therefore, exempt from taxation.
15 Results of the Charity Fund in France
Total
2014
£
Income
239,619
Expenditure
(79,260)
Surplus / Deficit
160,359
Appel Humanitaire International is a fund in France set up and controlled by Human Appeal International. All funds raised in France are allocated to Human Appeal International projects.
P a g e | 25
Continued Notes to the Financial Statements for the Year Ended 31 December 2014
16 Group Tangible assets
Plant and
Freehold land
machinery
Fixtures, fittings
Total
and building
including motor
and office
vehicles
equipment
£
£
£
£
Costs
Additions
369,554
16,799
181,121
567,474
At 31 December 2014
369,554
16,799
181,121
567,474
Depreciation
Charge for the year
8,920
4,200
17,641
30,761
At 31 December 2014
8,920
4,200
17,641
30,761
Net Book Value
At 31 December 2014
360,634
12,599
163,480
536,713
17 Charity Tangible assets
Plant and
Freehold land
machinery
Fixtures, fittings
Total
and building
including motor
and office
vehicles
equipment
£
£
£
£
Costs
Additions
369,554
16,799
178,977
565,330
At 31 December 2014
369,554
16,799
178,977
565,330
Depreciation
Charge for the year
8,920
4,200
17,641
30,761
At 31 December 2014
8,920
4,200
17,641
30,761
Net Book Value
At 31 December 2014
360,634
12,599
161,336
534,569
The charity tangible assets additions include gifted assets of £448,843 (Freehold land & Buildings £369,554 and
Fixtures and fittings & Office Equipment £79,289).
P a g e | 26
Continued Notes to the Financial Statements for the Year Ended 31 December 2014
18 Investments held as fixed assets
Investment
properties
£
Market value
Additions
572,004
Net book value
As at 31 December 2014
572,004
All investment assets were held in the UK.
Basis of valuation
Management have assessed the value of the Investment properties and are satisfied that the cost of the investment buildings reflect market value. This is based on the general understanding of the market trend by Management.
2014 19 Debtors
Group
Charity
£
£
Other debtors
1,532,387
1,531,579
Prepayments and accrued income
6,570
6,570
1,538,957
1,538,149
20 Creditors
2014
Group
Charity
£
£
Trade creditors
2,874,601
2,867,066
Other creditors
386,781
476,058
Accruals and deferred income
28,734
7,203
3,290,116
3,350,327
21 Members' liability
The charity is a private company limited by guarantee and consequently does not have
share capital. Each of the members is liable to contribute an amount not exceeding £10
towards the assets of the charity in the event of liquidation.
P a g e | 27
Continued Notes to the Financial Statements for the Year Ended 31 December 2014
22 Operating lease commitments
As at 31 December 2014 the charity had annual commitments under non-cancellable
operating leases as follows:
Operating leases which expire:
Land & Buildings
Other
£
£
Within one year
13,915
11,177
Within two and five years
30,000
-
Over 5 years
30,000
-
73,915
11,177
23 Related parties
Controlling entity
The charity is controlled by the trustees.
P a g e | 28
24
Continued Notes to the Financial Statements for the Year Ended 31 December 2014
Analysis of funds
Balance as at
Total incoming
Total resources
Transfers
Balance as at
01-Jan-14
resources
expended
31-Dec-14
£ £ £ £ £
General Funds
Unrestricted income fund -
6,441,385
(2,215,867)
(2,486,000)
1,739,518
Restricted Funds
Education -
183,405
(483,281)
350,000
50,124
Emergencies
-
6,147,009 (6,435,091)
300,000
11,918
Food
-
2,713,310 (3,474,907)
1,500,000
738,403
Income Generation
-
217,073 (252,286)
36,000
787
Medical
-
1,079,684 (600,823)
-
478,861
Orphans
-
2,816,500 (2,951,555)
300,000
164,945
Safer Water
-
923,083 (700,834)
-
222,249
Shelter
-
705,602 (273,142)
-
432,460
-
14,785,666
(15,171,919)
2,486,000
2,099,747
-
21,227,051
(17,387,786)
-
3,839,265
P a g e | 29
Continued Notes to the Financial Statements for the Year Ended 31 December 2014
Designated funds
There are no designated funds during the period.
Unrestricted funds Donors do not specify a specific project or programme when donating money. The Trust management spend
this money based on where most needed.
Education Education projects in Lebanon, Palestine, Pakistan, Senegal and Somalia provided teaching equipment included
building and renovating schools as well as sponsoring individual students through university studies.
Emergency Emergencies projects saved lives in Pakistan, Gaza, Burma and Syria. Often in conflicts like Syria the effects
spread beyond into Lebanon and Jordan. In all places we provided people with shelter, food, winter kits, and medical treatment and provided for orphans.
Food Food projects delivered to people facing starvation and malnutrition in emergency situations such as in Syria,
Somalia and Pakistan as well as providing people with food during times of hardship. Usually the communities that we worked with also benefited from the generous contributions from our donors in times of festivals e.g. during Ramadan and Eid when special foods unavailable throughout the year to some such as meat were distributed.
Income Generation Income Generation gives the opportunity for the most needy to sustain themselves and their families
encouraging communities to prosper and live peacefully. These projects were implemented across the Middle East, Africa and Asia ranging from tailoring training courses for women in Macedonia to providing honey bee farms and olive trees to Palestinian farmers and poultry and sewing machines to single parent households in Pakistan and Bangladesh.
Medical Medical projects provide urgent live saving medical services around the world and helped build capacity of
local medical staff by providing mentoring and training programmes
Orphan Orphan sponsorship has helped some of the most vulnerable children stay in education and have access to
clean water, food and health services. We were also able to carry out special projects providing support to hard to reach orphans in Baluchistan and Syria.
Gifts – As well as providing aid to those who need it at times of disaster and to provide assistance to people in poverty, gifts are also distributed to orphans and children from deprived backgrounds during times of celebration worldwide.
The gifts allow the child to show and tell their friends about what they received during festivals and are more memorable to them than cash donations. Gifts also help the children feel that they were important enough to merit the time and trouble it took to buy the gift.
P a g e | 30
Continued Notes to the Financial Statements for the Year Ended 31 December 2014
Safe Water Safe Water provided clean water to communities in Asia and Africa through boreholes, wells and hand
pumps. In addition new innovative projects delivering safe water daily to 100,000 school children.
25 Transfers
Transfers are made from the general reserves to restricted funds to ensure sufficient funds are made available for ongoing programmes and projects.
26 Net assets by fund
Unrestricted
Restricted
Total Funds
Funds
Funds
2014
£
£
Tangible assets
536,713
-
536,713
Investments
572,004
-
572,004
Current assets
1,916,545
4,104,119
6,020,664
Creditors: Amounts falling due within one year
(1,285,744)
(2,004,372)
(3,290,116)
Net assets
1,739,518
2,099,747
3,839,265