Human Appeal International Annual Trustees Report & … · Human Appeal International changed its legal structure at the close of 31st December 2013 from a Trust to a Charitable company,

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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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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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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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


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


55,900

Education


455,155

Orphans


2,106,502

Emergencies


4,466,880

Food


2,932,690

Income Generation


252,286

Medical


303,150

Safe Water


461,629

Shelter


187,555

11,221,747

P a g e | 23


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


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


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


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


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


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


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


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

Documents

Human Appeal International Annual Trustees Report & … · Human Appeal International changed its legal structure at the close of 31st December 2013 from a Trust to a Charitable company,