Medair UK Trustee Report and Financial Statements

Company number: 3213889 Charity registration number: 1056731

Medair UK

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2007

PKF (UK) LLP

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Medair UK ANNUAL REPORT

31 DECEMBER 2007 CONTENTS Page DIRECTORS, OFFICERS & REGISTERED OFFICE 2 TRUSTEES’ REPORT INTRODUCTION Chairman’s Introduction 3 INPUTS

Legal Basis, Objects & Principal Activity, Related Parties 4 Structure, Governance & Management 4 Recruitment of Trustees 5 Contribution of Volunteers 5 Cost of Operation 5 OUTPUTS 2007 Operations 6 OUTCOMES Performance Against 2007 Targets & Targets for 2008 7-8 Financial Position 8 Future Plans 8 Awards & Memberships 9

IMPACT Impact in the Field 10 Madagascar 10-12 Pakistan 13-15 Southern Sudan 16-18 POLICIES & RISK Restricted & General Funds 19 Reserves 19 Ethical Investment 19 Environmental Stewardship 19 Risk Management 20 Trustees 20

STATEMENT OF TRUSTEES’ RESPONSIBILITIES 21 INDEPENDENT AUDITORS’ REPORT 22 STATEMENT OF FINANCIAL ACTIVITIES 23 BALANCE SHEET 24 NOTES TO THE FINANCIAL STATEMENTS 25-30

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Medair UK DIRECTORS, OFFICERS & REGISTERED OFFICE

TRUSTEES K I Frost N R Harris E M Hughes J R C Ingram Appointed 4th October 2007 T W Lewis J Rey A C Tanswell SECRETARY K I Frost SENIOR STAFF B M Paine Development Director (previously Development Manager) COMPANY NUMBER CHARITY NUMBER 3213889 1056731 REGISTERED OFFICE Unit 3 Taylors Yard 67 Alderbrook Road London SW12 8AD Tel.: 020 8772 0100 Fax: 020 8772 0101 Web: www.medair.org Email: [email protected] BANKERS HSBC 1 High Street Harpenden Hertfordshire AL5 2RS AUDITORS PKF (UK) LLP Farringdon Place 20 Farringdon Road London EC1M 3AP

Medair UK TRUSTEES’ REPORT

YEAR END 31 DECEMBER 2007

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INTRODUCTION CHAIRMAN’S INTRODUCTION

Welcome to the Medair UK Trustees’ report and financial statements for the year ended 31st December 2007. This has been a period of significant growth and other achievement, in which we renewed and strengthened our focus on relieving human hardship and suffering around the world. With this in mind, this year’s report adopts a new structure, tracing the transformative work of Medair UK from inputs through to impact. As well as seeking to provide the most transparent account of the year’s activities, this format also reflects the logical steps in our strategy, planning and evaluation. I hope you will find this report both informative and compelling and, whatever your interest in seeking it out, will consider joining with us in this work. Together with my colleagues on the Board, staff and volunteer roll of Medair UK, I remain available to you for questions or discussion,

Joshua Rey Chairman, Medair UK [email protected]



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INPUTS LEGAL BASIS Medair UK is a registered charity (no. 1056731) and a company limited by guarantee (no. 3213889). It is governed by a Memorandum and Articles of Association dated 19th June 1996. OBJECTS & PRINCIPAL ACTIVITY Medair UK’s objects are to relieve human need, hardship and suffering in whatever parts of the world particularly by means of mobilising and deploying human and material resources to provide appropriate relief and aid to distressed populations, without racial, political or religious discrimination. In keeping with paragraphs (g), (h) and (k) of its Memorandum and Articles of Association, the charity pursued these objects through the provision of human and material resources in support of the multisectoral relief and rehabilitation projects co-ordinated by Medair (Switzerland). During 2007, Medair (Switzerland) co-ordinated field operations in Afghanistan, D.R. Congo, Indonesia, Madagascar, Pakistan, Sudan and Uganda. RELATED PARTIES Medair UK is an independent Medair ‘affiliate’ office, co-operating with Medair (Switzerland) through a Memorandum of Understanding, which governs this relationship. Medair (Switzerland) is a registered charity in the Swiss Canton of Vaud, with offices at Chemin du Croset 9, 1024 Ecublens, Switzerland. There are other Medair affiliate offices located in France, Germany, the Netherlands and the United States. STRUCTURE, GOVERNANCE & MANAGEMENT In 2007, Medair UK’s Board of Trustees (who are Directors for the purpose of company law) oversaw the work of a Development Director, Finance & Administration Officer and volunteers, delegating responsibility for day-to-day decision-making to the former.



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RECRUITMENT OF TRUSTEES Before appointing a new Trustee(s), existing Trustees carry out a self-assessment process to identify areas for development and expertise desirable in new Board members. The Trustees consider the attributes they believe to be most relevant in ensuring that the Trustee body is best able to serve the charity’s beneficiaries. Following a review of its membership in the second quarter of 2007, the Board pursued the following process for the recruitment and appointment of a new Trustee(s): 1. Solicit expressions of interest, primarily through existing supporter network. 2. Applicants receive skills and person specifications, requirements of a Medair UK Trustee (including

eligibility criteria), overview of Medair UK’s Objects and activities, request for CV and letter of motivation. 3. Shortlist applications and invite shortlisted applicant(s) to meet 2-3 existing Trustees. 4. Invite approved applicant(s) to observe next Board meeting. 5. Reconfirm applicant’(s’) willingness to stand as Medair UK Trustee. 6. Existing Trustees vote to appoint successful applicant(s) at next Board meeting. 7. Continue comprehensive Trustee induction process, including founding, financial and planning documents, Charity Commission approved literature and meetings with all staff. During 2007, 1 new Trustee was recruited, inducted and appointed and none resigned. In addition, policies and procedures for the ongoing development of the Board were further improved. Accordingly, the 2008 Operating Budget provides for investment in Governance training and development, including travel to review the work of Medair (Switzerland) in person. CONTRIBUTION OF VOLUNTEERS Throughout 2007, Medair UK’s operations were ably and generously supported by volunteers. Details of the areas in which volunteers assisted are shown below, together with an indicative value of the salary which would have been payable to waged workers carrying out the same work.

Volunteer role Hourly value Hours donated Total Fundraising £12.00 154½ £1,854 Recruitment of field staff £12.00 50½ £606 Prayer coordination £12.00 70 £840 Pastoral care for field staff £12.00 128 £1,536 Total 403 £4,836

The Trustees and staff are extremely grateful to all the volunteers who gave their time and skills during the year, without whose contribution Medair UK would not have functioned as effectively or fully as it did. COST OF OPERATION Medair UK’s total operating expense for 2007 is summarised below. Direct costs represent expenses attributed directly to key activities (e.g. staff time and appeal mailing costs etc.). Indirect costs represent expenses attributed to activities in support of key activities (e.g. accounting and office costs). The apportionment of indirect costs was tracked against staff time throughout the year. It is upon this method that Medair UK calculates its fundraising return on investment (ROI), reported below under Outcomes.

Activity Direct costs Indirect costs Total Fundraising £32,256 £24,134 £56,390 Recruitment of field staff £8,412 £6,667 £15,079 Prayer coordination £2,191 £3,555 £5,746 EC grant management £2,202 £2,640 £4,842 Support of field staff £2,675 £4,500 £7,175 Other activities in support of Medair (Switz.) £3,121 £3,730 £6,851 Governance (inc. audit) £7,509 £1,502 £9,011 Total 56% 44% £105,094



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OUTPUTS 2007 OPERATIONS In 2007, Medair UK sought to enable and support field operations co-ordinated by Medair (Switzerland) by pursuing the following key aims and achievements: 1. Acting as legal partner in the receipt and disbursement of humanitarian grants made by the European

Commission

Medair UK represented Medair (Switzerland) in acting, under a Framework Partnership Agreement, as legal partner with the European Commission. As lead partner, Medair UK formally applied for and received grant funding from the Commission. For each grant received, a binding Project Implementation Agreement was made between Medair UK and Medair (Switzerland) and the full value of the grant disbursed from the former to the latter, as received. Medair (Switzerland) then co-ordinated all operational activities in the field and provided regular progress, expenditure and impact reports to Medair UK and the Commission.

2. Raising funds from individuals and organisations

Medair UK appealed directly to individuals, churches and other organisations for funds to support the programmes co-ordinated by Medair (Switzerland) a) in general and b) in the D.R. Congo and Sudan in particular. Fundraising approaches were made via post, email, internet and in person. In seeking to develop the value of the relationships it already enjoys with its supporters, Medair UK produced and disseminated newsletters (Medair News) and targeted appeal mailings. In addition, email and other fundraising methods were used and evaluated and staff and Trustees made numerous presentations to groups and individuals in person. In seeking to acquire new supporters, Medair UK attended and spoke at events and churches and otherwise pursued a strategy of networking, largely via its Board of Trustees and returned field staff. A series of weekend events were held, to connect with, update and encourage returned field staff, who subsequently received guidance and support on how best to approach their networks. All of this activity was supported by press releases which were issued to national and regional media and partner organisations.

3. Recruitment of field staff on behalf of Medair (Switzerland)

Medair UK attended, exhibited and was presented at events and churches and placed recruitment advertisements with targeted publications and web sites. Opportunities were also communicated via email. These actions aimed to encourage appropriate candidates to apply to attend the Relief and Rehabilitation Orientation Course (ROC) run by Medair (Switzerland) as a means of both selection and initial training of field staff.

4. Encouraging and resourcing prayer support

In partnership with Medair (Switzerland), a new network for prayer support was firmly established. Prayer partners were recruited through departing field staff and at events. Monthly prayer reports and urgent requests from each country programme were forwarded by email to prayer partners throughout the UK.



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OUTCOMES PERFORMANCE AGAINST 2007 TARGETS & TARGETS FOR 2008 1. Maintain and develop relationship as legal partner with the European Commission.

2007 Target 1: Maintain positive and fruitful relationship with European Commission. 2007 Performance 1: New FPA signed; new EC grant agreements signed to a total value of €6,619,117. In 2007, Medair UK’s partnership with the European Commission was renewed and extended once again, including the signature of a new Framework Partnership Agreement (FPA) with the European Commission Humanitarian Aid department (ECHO), which remains valid until 31st December 2012. In addition, following ECHO’s extensive annual partners assessment exercise, Medair UK (in partnership with Medair (Switzerland)) was selected for the group of most reliable partners, with a risk level indicating that there should be a decrease in administrative burden. This is seen as a great achievement and will allow further gains in efficiency. During 2007, 9 new grant agreements and 2 grant extensions were signed to a combined value of €6,619,117 (£4,532,705). In all, Medair UK facilitated 11 EC-funded programmes across Africa and Asia and disbursed a total of €4,453,765 (£3,049,894) to Medair (Switzerland) accordingly. 2007 Target 2: Ensure smooth transition of administration of future ECHO grants to Medair to new Belgian office (therefore no UK financial target in 2007). 2007 Performance 2: All new ECHO grants operating via Belgian office. In 2007, Medair (Switzerland) signed its first FPA with ECHO, meaning that new ECHO grants to Medair are administered without the involvement of Medair UK. ECHO grants agreed prior to this FPA will continue to be administered via Medair UK. This switch accounts for the significant reduction in Medair UK’s income. No steps have been planned or taken to transition administration of EuropeAid grants from Medair UK.

2008 Target 1: Maintain positive and fruitful relationship with European Commission. 2. Grow private / voluntary income.

2007 Target: Raise £335,000 or more in private income. 2007 Performance: Total private income raised £330,370 In total, £33,795 was received in donations restricted to specific programmes and £256,821 in unrestricted donations. These figures were increased by £4,317 and £35,437 respectively by reclaiming tax on eligible donations through the Gift Aid scheme. With total private income just 1% under target, fundraising performance in 2007 was extremely strong, representing 140% growth year on year. In fact, the target for donations received was exceeded, but a lower than anticipated use of Gift Aid meant the overall target was narrowly missed. These outcomes were achieved, despite the facts that there were no highly-publicised emergencies / disasters to which Medair responded in 2007 and many of the fundraising approaches pursued in 2007 (such as networking and soliciting legacies) are long-term investments. In addition to the above, the following notable successes were recorded during 2007: • 88% of private income was unrestricted, enabling it to be applied flexibly, as most needed; • The number of active major donors grew from 30 to 56, an increase of 73%; • Income from regular giving grew to £49,756, an increase of 48% year on year; • Medair UK was judged to be the no. 1 ranked ‘religious’ charity by Intelligent Giving; • A new fundraising database was procured and implemented; • In surpassing £300,000 in private income, Medair UK achieved the first of 3 required years’ at this

income level for application to join the Disasters’ Emergency Committee.



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Overall in 2007, alongside its other activities, Medair UK invested £56,390 in income generation and achieved a 5.9 average return on investment (ROI). ROI is calculated for income generated from private sources using a cost apportionment method. Once direct costs have been allocated, indirect support costs are apportioned to Charitable Activities, Cost of Generating Funds, and Governance. The basis for apportionment is staff and volunteer time spent on each activity. ROI is the total generated funds divided by the sum of directly allocated and apportioned indirect costs of generating funds.

It should also be noted that a proportion of this expenditure relates to income expected to be received in future periods, such as legacies and other major gifts.

2008 Target: Raise £500,000 or more in private income.

3. Solicit ROC applications from potential field staff.

2007 Target: Medair (Switzerland) receives at least 50 ROC applications from the UK. 2007 Performance: Medair (Switzerland) received 62 ROC applications from the UK. 2007 was also a very successful year in field staff recruitment terms. Of 62 UK applicants, 25 attended the ROC, 22 passed and were subsequently registered as available. At year end, 9 had joined field projects. UK staff continued to represent the largest group (30%) of all international field staff in 2007.

2008 Target: Medair (Switzerland) receive at least 50 ROC applications from the UK.

4. Reinvigorate and grow the UK Medair supporter network.

2007 Target: 1,000 active contacts. 2007 Performance: Contact list cleaned, with 343 active donors and 241 active prayer partners. Despite the significant growth in income and the establishment of the prayer network, the development of Medair UK’s active contacts list was below target in 2007. Not meeting this target is a reflection of the movement of 392 one-time donors who gave once at an event in 2006, as well as there not having been any highly-publicised emergencies / disasters to which Medair responded in 2007.

2008 Target: 1,000 active contacts across donors, ambassadors and prayer supporters.

FINANCIAL POSITION As set out above, successful fundraising amongst very generous supporters delivered significantly increased income from private sources during 2007. Medair UK was therefore able to replenish unrestricted reserves to the desired level, whilst continuing activities and investment in fundraising for income in future periods. This affirms the appropriateness of the long-term fundraising strategies instigated in previous financial periods. At the end of the period, Medair UK remained in a healthy financial position, holding free reserves of approximately £56,000, which it expects to maintain during the next 12 months. Free reserves comprise general unrestricted funds less fixed asset and rent deposit funds. FUTURE PLANS In keeping with discussion above, fundraising shall remain Medair UK’s focus. Medair UK’s medium-term fundraising objective is to raise £500,000 per year in unrestricted funding on an ongoing and sustainable basis. This will represent a significant step change in the level of support Medair UK provides in serving the needs of those caught in crises in Africa, the Middle East, and Asia. During late 2007 and early 2008, plans were developed to work towards this key target. This will involve the recruitment of additional fundraising staff during 2008.



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AWARDS & MEMBERSHIPS Intelligent Giving From June 2007, Intelligent Giving has ranked Medair UK 1st among 196 ‘religious’ charities, and second among 247 international charities, behind only Oxfam. This assessment places Medair UK in the top 10 out of the 1,500 UK charities reviewed. The mission of Intelligent Giving is to help people give happily and with confidence. Their objective is to increase standards within the charity sector, reassuring people that their donations are being put to use wisely and accountably. Fundraising Standards Board Medair UK joined the Fundraising Standards Board (FRSB) ahead of its public launch in February 2007. The FRSB is the body for self-regulation of fundraising in the UK. The FRSB scheme is open to all fundraising organisations and members agree to adhere to the highest standards of good practice with their fundraising and a Fundraising Promise. They demonstrate membership of the scheme by using the tick logo on their fundraising materials. By participating in the scheme charities are both advertising their commitment to best fundraising practices and giving the public the comfort of a 'safety net' provided by a robust complaints system. At the time of writing, Medair UK has not received any complaints. ImpACT Coalition Medair UK also joined the ImpACT (Improving Accountability, Clarity and Transparency) Coalition of charities during 2007. The Coalition works together to improve public trust and confidence in the sector, its values and the way charities work. The Coalition aims to raise awareness among the general public of the nature and activities of modern charities, to focus the public debate on the benefits charities bring, rather than on the costs of running them and to improve the standards of transparency and accountability within the sector, communicating with clarity and openness. As soon as the ImpACT Coalition toolkit is available, Medair UK intends to conduct a further review of its accountability and transparency. ISO Medair was the first humanitarian NGO to become ISO 9001:2000 certified at worldwide level. This includes the activities and operations of Medair UK, as well as those of other affiliate offices, headquarters and field operations. Medair UK’s on-going certification requires not only the maintenance of defined quality processes, but also its commitment to continuous improvement.



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IMPACT IMPACT IN THE FIELD In providing these resources, Medair UK played a key role in enabling Medair (Switzerland) to bring life-saving relief and rehabilitation to the most vulnerable people in disasters, conflict areas, and other crises in 2007. The following examples describe a sample of what was achieved. MADAGASCAR “Medair arrived quickly to the place where we were located, even though we thought it to be inaccessible. Thanks to this intervention, we avoided the epidemics of diarrhoea that so often have killed our youngest children.” – Hery Anginilaoka, Antakotako Commune, Maroantsetra District • Frequent cyclones cause extensive damage and flooding • Over 70 percent of population live in poverty • Very limited access to safe water • Five cyclones or tropical storms struck in 2007

Population 18,606,000 GNI per capita US$ 880 Life Expectancy (M/F) 56/60 Child Mortality (per 1,000) 115* Maternal Mortality (per 100,000) 550 Total Beneficiaries in 2007 150,000 Medair Personnel (IRS/NRS) 6/60 Funding Partners Sources: World Health Statistics, 2007. World Health Organisation. * 2008 State of the World’s Children Report, UNICEF (2006 stats)

EuropeAid (Water Facility) ECHO French Embassy (DGCID) SDC (Swiss Government) UNICEF Swiss Embassy

Good Water in Stormy Weather Every year, cyclones and tropical storms batter Madagascar with destructive flooding, and perpetuate a debilitating cycle of poverty for its most vulnerable residents.

The people in the remote northeast of Madagascar are all too familiar with the threat of cyclones. So last March, when Madame Gisèle heard a warning that a cyclone was approaching, she and her family decided to stay right where they were.

Unfortunately, that warning was confirmed with a vengeance on the morning of 15 March. Cyclone Indlala ripped across the island with 265 km/h winds, causing flooding that submerged entire villages.

In Hery Anginilaoka’s village, he and his family



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were sheltering at a neighbour’s house. However, the high winds blew the roof away, forcing them to crawl under a table for several hours. There, they watched in fear as the floodwaters rose higher and higher.

“It was as if the sea entered the house,” said Hery. “We had to evacuate to a small hill, in spite of the wind which became more and more strong. It was terrifying!”

Meanwhile, the storm’s fury convinced Madame Gisèle to flee as well, taking her three children to higher ground in the hills.

For the next week, people throughout the region were stranded on hilltops, without food or access to safe water. In some villages, people lived on their roofs for over five days, surrounded by brown water that became their kitchens, their bathrooms, and their toilets.

“Because of the contamination of the water, the risk to fall seriously sick was unavoidable,” reported Hery.

Reaching the stranded thousands Our Medair teams mobilised as quickly as possible to deliver vital aid to the displaced thousands in Maroansetra District. However, transportation in Madagascar is never an easy task. There are no paved roads in the rural areas where we work, only muddy tracks with bridges made from tired wooden planks. Our teams use heavy-duty 4x4 vehicles, and still our drivers require an abundance of expertise and courage just to travel the roads. Of course, many villages can’t even be accessed by roads, requiring hours of walking or boat travel. And obviously, when the island is flooded, affected communities become even harder to reach. After Indlala struck, we swiftly decided that pirogues or flat-bottomed boats offered the best chance of accessing the stranded thousands. Despite the challenges, our teams reached all of the affected villages quite quickly, providing 10,000 families with immediate help. “We were so happy to see the Medair boats with the first help!” said Madame Gisele. “They were the first ones to come to the village. For us, the arrival of Medair meant that we were not forgotten.” The cyclone season in 2007 was particularly devastating. Even before Indlala struck, a series of storms had caused severe flooding in the capital city of Antananarivo, displacing 25,000 of its poorest residents into overcrowded and unhygienic camps. Medair partnered with UNICEF to install temporary latrines and hand-washing facilities in the camps, and to distribute important items to help improve hygiene and safe water access. The success of Rano Tsara As important as these emergency responses were, they represented only a small portion of Medair’s work in Madagascar this past year. Our main project in 2007 was called Rano Tsara, or Good Water, a project that involves establishing partnerships with local actors to help them face future disasters self-sufficiently, and to improve their living conditions over the long term. The Rano Tsara project focuses on working with local partners to construct water points, provide latrines,



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improve hygiene behaviour, and prepare for future cyclones. In 2007, it was a tremendous success, expanding from three to six communes in Maroantsetra District, and two more in Fénérive-Est District, both part of the Analanjirofo Region. With this kind of expansion, there is a real opportunity to bring safe water and sanitation to thousands of the poorest people on the island. The catastrophic floods proved to be a profound test for Medair’s methods and the validity of our work with Rano Tsara. Over the last few years, we had worked with local actors to build over 350 water points in Maroantsetra that were designed to be “flood-proof.” So when the floodwaters retreated this year, we had a real-world opportunity to find out whether our water systems were living up to their name. Our investigation revealed that while every open well in the region had become contaminated, nearly all of our flood-proof water points were in perfect working order, producing clean and safe water that required no disinfection. “The most vulnerable people on this island continually are affected by flooding that contaminates their drinking water, destroys their belongings, and keeps them from progressing toward prosperity,” said Christophe Roduit, Medair’s Country Director. “But if we can continue to achieve long-lasting results like we did this year, we have faith that a brighter future lies ahead.” Names of beneficiaries have been changed. Water & Sanitation – Emergency relief statistics 24 displaced person camps equipped with latrines and hand-washing facilities 1,300 open wells disinfected 2,410 homes and 123 tents disinfected to promote the return of displaced people 16,029 buckets distributed 1,890 jerricans distributed 15,049 water purification solutions distributed 13,834 soaps distributed 50,000 people in 6 communes received emergency hygiene promotion, plus many more within the

displaced person camps Water & Sanitation – Rehabilitation statistics 70 new flood-proof water points built, equipped with Canzee hand pumps 250 family latrines installed 11,000 metres of evacuation channel rehabilitated 15 bridges rebuilt 6 communal authorities and 35 community associations trained in the management of water

infrastructures 3 local enterprises trained in water and sanitation constructions 1 local NGO trained in project management, water & sanitation, and community participation. 4 emergency committees trained in cyclone management. 35 women’s associations trained in hygiene promotion 18 hygiene promotion campaigns 10,000 people reached by the hygiene promotion activities



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PAKISTAN “We highly appreciate Medair’s efforts to work in difficult terrain and hard weather conditions... (It) was a great contribution... helping to ensure a bright future for our next generations.”

– Raja Tariq Mehmood, Programmes Manager, Poonch District Reconstruction Unit (DRU) • Massive earthquake in October 2005:

• 73,000 dead • 128,000 injured • 3 million without shelter

• Mountainous and impoverished areas suffered the most damage • Over 80 percent of the population in remote Poonch

district were affected • Hundreds of government schools damaged or destroyed

Population 157,935,000 GNI per capita US$ 2,350 Life Expectancy (M/F) 61/62 Child Mortality (per 1,000) 97* Maternal Mortality (per 100,000) 500 Total Beneficiaries in 2007 4,004 Medair Personnel (IRS/NRS) 4/17 Funding Partners Sources: World Health Statistics, 2007. World Health Organisation. * 2008 State of the World’s Children Report, UNICEF (2006 stats)

Dorcas Aid International EO Metterdaad Red een Kind Tearfund NZ Woord en Daad ZOA Refugee Care

Rebuilding from the Ruins In an instant, the earthquake made widows or orphans of many Pakistani women, who then faced the harsh reality of having to earn an income in order to survive and care for their families. Safia Jabeen was just 21 years old on that terrible October day in 2005. The quake killed her husband and destroyed her home, changing the course of her life forever. She and her young child were left to grieve, without a place to live or a source of income to sustain them. In remote and mountainous Poonch District where Safia lived, our Medair teams launched an urgent emergency response just days after the earthquake. We distributed thousands of tents and temporary shelters to protect the most vulnerable from the winter elements. “I had no house, but Medair gave me a shelter which was very nice,” said Safia. “I lived in it in peace. I spent the whole winter season in it.” However, what Safia needed most was a way to generate some income. Unfortunately, there were very few opportunities for unskilled women workers



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like her. Then one day in 2007, she heard about a new sewing centre being opened in upper Kathiara. At the centre, she was amazed to discover that Medair was providing women with sewing equipment and skills training so that they could earn a living. “Machines, chairs, clothes, and all other materials were free from Medair!” said Safia. “I did not pay any fees. I learned sewing, cutting, and hand-embroidery, and now I am able to do tailoring work.” Restoring livelihoods The sewing project in Kathiara was just one part of a broader Medair initiative to restore the livelihoods of people affected by the quake. In previous years, we had given water buffaloes to families and provided people with seed distributions. However, in 2007, we decided to target our efforts specifically at women who were unable to support themselves or their families. Working in close partnership with the local NGO NRSP (National Rural Support Programme), Medair opened sewing centres in 12 different locations in Poonch. Over the year, there were almost 320 students in the programme, who learned not only how to make clothes for themselves and their families, but also gained valuable income-generating skills. For 20-year-old Zohra Sharif, the sewing centre created new opportunities for her, and gave her a new perspective on life. “This centre made me think and believe that I can do something myself, and help my family with an income,” said Zohra. “I am very happy with its support.” An ambitious school reconstruction project Another of our major achievements in 2007 was the reconstruction of 11 earthquake-resistant primary and middle schools in remote areas. This was an enormous challenge for us because of the logistical problems of conducting such a significant engineering project in difficult mountainous terrain. The weather didn’t help either, with the worst monsoons in 15 years causing landslides and road blockages that inhibited access to sites and filled in foundations that had already been dug. Despite the delays, the last of the schools was fully completed in October, an event that was celebrated with a grand opening ceremony. “It was a very exciting time for the students, teaching staff, and the whole community,” said Hylton Cannon, Medair’s Pakistan Country Director. “There was a huge crowd attending, giving out garlands of flowers, yes even to the men, and what joy in their faces! Suddenly all of the struggles we’d had to get to that point seemed worth it.”



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Medair departs from Pakistan

The end of October marked the conclusion of Medair’s programme in Pakistan. All of our objectives were successfully completed, and our beneficiaries and the authorities were very happy with the quality of our work.

“We are leaving almost exactly two years after the earthquake, and have achieved a huge amount in that short time,” said Mark Screeton, Medair’s Desk Officer for Pakistan. “The population is stabilised, people have shelter, and the government is slowly getting up to speed, with long-term development plans which will take years and years to realise. Our mandate is fulfilled.”

As for Safia we left her working on a sewing project for her neighbour and getting paid for her work. “I am very pleased to have received such support from Medair,” she said. “Now I can easily survive.” Names of beneficiaries have been changed. Water & Sanitation – Rehabilitation statistics 11 schools provided with a protected water supply 8,801 feet of piping installed, along with concrete tanks and source protection 50 toilets and hand-washing facilities for the 11 schools Shelter & Infrastructure – Rehabilitation statistics 11 earthquake-resistant schools built and furnished with desks, chairs, and benches 45 classrooms and 22 offices in the schools 1,230 students and 35 teachers served by the schools 12 sewing centres established 318 women received training in sewing and business methods 21 women trained to be sewing centre teachers 120 sewing machines, 60 embroidery machines, plus other furniture provided 2,400 (approx.) family members supported by the sewing project students and teachers



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SOUTHERN SUDAN "I'm very encouraged because you are training women to take care and protect the borehole. Your training is good, can you do more?"

– Nyanyul Akonjok, Village Water Committee • Recovering from longest running civil war in Africa, which ended in 2005 • Fragile peace, with pockets of insecurity • Very few functioning social services • Some of the world’s worst social indices for nutrition, education, access to water, mother/child health, and

outbreaks of disease • Millions of displaced persons • Severe flooding in 2007

Population 36,233,000 GNI per capita US$ 2,000 Life Expectancy (M/F) 57/62 Child Mortality (per 1,000) 89* Maternal Mortality (per 100,000) 590 Total Beneficiaries in 2007 298,813 Medair Personnel (IRS/NRS) 28/210 Funding Partners Sources: World Health Statistics, 2007. World Health Organisation. * 2008 State of the World’s Children Report, UNICEF (2006 stats)

UNDP UNICEF ECHO OFDA (US government) DFID via Arcadis (UK government) BuZa (Dutch government) Tearfund UK

On the Move In December, Medair sent a medical team to assist a group of approximately 6,000 nomadic Mbororo people who were in a precarious position, stricken with poor health and marginalised in a remote area of Southern Sudan. Sudan is home to millions of displaced people as a result of the civil war, with many living in the north now beginning to return to their southern homes. However, group movements bring a heightened tension that can lead to violence, as travelling populations exacerbate the strain on the minimal services and resources that exist. The Mbororo people are originally from West Africa, but certain groups have been travelling through Sudan – and surrounding countries – for decades, grazing their thousands of head of cattle on the land. However, with resources so scarce in Southern Sudan, local communities became increasingly hostile to them, perceiving that their cattle were destroying precious crops. As a result, the Government of Sudan



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granted them land in the Blue Nile state, which many Mbororo claim as their territorial heritage, and where they could safely settle. However, the journey was going to take them almost a year to complete. The nomadic lifestyle had certainly taken a physical toll on the Mbororo. Without reliable access to safe water or health facilities, many of them suffered from severe cases of preventable disease. They had never received vaccinations, and over half of the population was infected with scabies. From Emergency Response... When Medair was informed about their plight, and asked to provide emergency assistance, we began working to set up a mobile health clinic, and in less than two weeks had vaccinated more than 1,200 children and adults against meningitis, measles, and polio. Our team also provided health and hygiene training, and distributed hundreds of bottles of medicinal lotion to eradicate the outbreak of scabies. “We are so grateful for all your help, and especially the vaccinations,” said Abdalla Mohamed, one of the Mbororo chiefs. “Now we feel much safer to travel towards the north.” This emergency response was just one of many effective actions taken by Medair in 2007. Our emergency response teams, based in 2007 in Loki, were able to respond rapidly to emergencies across Southern Sudan. We carried out seven disease outbreak interventions, a malnutrition response, and several emergency water & sanitation responses. After severe flooding in Fashoda county, Medair and Tearfund staff spent hours trekking through swamps that rose as high as their waists in order to provide emergency health care to isolated villages. The residents greeted them with looks of absolute shock, having never expected to see an NGO travel to assist them through flooded, snake-infested swamps. “Medair is a very committed organisation,” said local resident Eg Chol Deng. “They care about people, and act fast.” ...To Rehabilitation We have been an active participant in Southern Sudan since 1992, providing emergency relief and rehabilitation to the most vulnerable. In 2007, we were the only NGO providing primary health care in Melut County, one of the most underserved areas in the country. We continued to expand our health coverage, with several new permanent and temporary clinics established. Meanwhile, our WatSan teams dug new boreholes at depths of 90 to 100 metres, installed hand pumps, dug wells, and set up surface water treatment systems during emergencies in many locations in need. With every project, our Medair teams conducted training to build capacity in health and hygiene promotion and in the maintenance of water systems, fostering a sense of ownership that facilitates the hand-over of systems to the local communities.



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“We thank Medair so much for the training we have had,” said participant Mary Majok after an intervention. “We will take the knowledge we have acquired to our community members so that together we can improve our village.” Klaas van Mill, Medair’s Country Director for Southern Sudan, was pleased with the overall programme results in 2007. “We had our challenges, that’s for sure, what with the pockets of insecurity and a very intense rainy season that brought major floods,” said Klaas. “But overall, security improved in the region this year, and we enjoyed a number of positive organisational developments. Our greatest achievement was probably the continued growth of our health care coverage, highlighted by the jubilant opening of our permanent PHCC (primary health care centre) in Melut Town.” As for the Mbororo, just one month after our intervention, some of them had already travelled as far as Juba. Our staff were gratified to see how much the group’s health situation had improved in such a short time. As they continue their trek to the north, we are monitoring the situation in case further assistance is required, just as we assist thousands of the most vulnerable on their restorative journey toward a better life. Names of beneficiaries have been changed. Health – Emergency relief statistics 23 emergency assessments 14 disease outreach interventions 1 malnutrition response 193,990 beneficiaries served through case management, vaccination campaigns, distributions, and

health and hygiene promotion Health – Rehabilitation statistics 1 Primary Health Care Centre constructed and opened 5 Primary Health Care Units under construction, 4 of them opened 59,697 beneficiaries 167 health staff trained at PHCC in Melut County 305 community members received training to assist with health care Water & Sanitation – Emergency relief statistics 8 Emergency Water Treatment Systems installed 105 latrines 41,100 beneficiaries Water & Sanitation – Rehabilitation statistics 6 boreholes and 5 hand-dug wells 4,026 beneficiaries 23 water committees trained or refreshed (5 members in each) 68 health and hygiene promoters trained or refreshed USE OF FUNDS Further information is available in the Medair Consolidated Annual Report 2007, available here: http://www.medair.org/annual_report.



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POLICIES & RISK

RESTRICTED AND GENERAL FUNDS Any funds accepted from private or institutional donors which provide for a specific restriction will always be honoured. These funds are recorded as restricted funds and are accounted for separately. All such funds allocated for specific field operations, are transferred in their entirety to Medair (Switzerland) for use in the appropriate programme. All undesignated funds will first be used to meet operational needs of Medair UK, according to a pre-approved budget. In 2007, these operational needs were 3.1% of incoming resources. In accordance with the Policy on General Funds, the Trustees designated £27,946 of surplus unrestricted funds at the year end to be transferred to Medair (Switzerland) in furtherance of Medair UK's charitable objectives. The full amount was disbursed to Medair (Switzerland) in January 2008. RESERVES The charity aims to hold free reserves that would enable operational and fundraising activities to continue for a period of six months should there be a significant drop in funding. The Trustees believe that £56,000 would be adequate for this purpose. At the time of writing, free reserves held amount to £56,000. Free reserves comprise general unrestricted funds less fixed asset and rent deposit funds. The Trustees intend to maintain reserves at this level over the course of 2008. Both the policy and its implementation shall be under regular scrutiny. ETHICAL INVESTMENT The charity does not currently hold any investments other than the free reserves detailed above. These reserves are held on deposit in a high interest, instant access bank account. If in future periods the Trustees consider it prudent to hold investments over and above the level of desired reserves, the following ethical investment policy shall be reviewed and applied: The Charity Commission has stated that “Trustees should not invest in companies pursuing activities which are directly contrary to the purpose of the trust or the charity”1. Further, that a strategy of avoidance may be appropriate if investment in a particular type of business could “conflict with the charity’s aims,… hamper its work, either by making potential beneficiaries unwilling to be helped because of the source of the charity’s money, or by alienating supporters”, or even if it could be considered inappropriate “on moral grounds”, provided that the Trustees are satisfied that this would not involve a “risk of significant financial detriment”2. In accordance with this guidance and the charity’s aims, the Trustees deem it inappropriate to invest in businesses involved in, or associated with the following sectors: • Arms trade; • Tobacco; • Child labour. Therefore, as and when Medair UK makes investments, a negative filter will be applied in assessing investment opportunities. Both the policy and its implementation shall be under regular scrutiny. ENVIRONMENTAL STEWARDSHIP In keeping with the charity’s Christian ethos, Medair UK seeks to be a ‘good steward’, not only of its funds, but also of the planet. This is accomplished in the following practical ways: • Sourcing supplies and services from renewable sources e.g. recycled stationery; • Minimising waste and maximising that which is recycled;

1 Sparkes, R. (1995), The Ethical Investor. (London: Harper Collins). 2 Charity Commission (2004), CC14: Investment of Charitable Funds.



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• Avoiding unnecessary printing – storing documents in electronic form wherever possible; • Switching off electrical appliances and lights whenever not in use. Both the policy and its implementation shall be under regular scrutiny. RISK MANAGEMENT Medair UK is committed to the highest standards of integrity, quality and professionalism in all aspects of its work. Throughout 2007, the Trustees and staff continued to review the demands on the organisation and ensured the mitigation and management of the risks it faces. To this end, the Trustees and senior staff reviewed the Medair UK Risk Register at each of their meetings, agreeing and tracking actions accordingly. During 2007, highly-assessed risks included those of: • Inappropriate media management – in the absence of a full-time Media Officer at either Medair UK or

Medair (Switzerland); • Breach of European Commission contracts – during transition of new ECHO grants to Medair (Switzerland). In the first case, revised protocols were put in place and additional conference calls were held to ensure common understanding amongst all parties. In the second, relevant staff from Medair UK and Medair (Switzerland) met, reviewed, agreed and communicated respective roles and responsibilities. TRUSTEES New Trustees are appointed by ordinary resolution and unanimous consent of sitting Trustees. J Rey and A C Tanswell are also Trustees of Medair (Switzerland), which has eleven Trustees in total. J R C Ingram is also a Director of Medair (Switzerland). Each of the Directors has confirmed that, so far as they are aware, there is no relevant audit information of which the company's auditors are unaware, and that they have taken all the steps that they ought as a director, to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The Trustees did not receive any fees in the current or preceding year. Details of expenses reimbursed can be found in the audited financial statements. The Trustees and staff of Medair UK sincerely thank its volunteers, donors and other partners, whose generous support throughout 2007 has enabled it to respond to so much human suffering.

BY ORDER OF THE BOARD Secretary 2008

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Medair UK The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company law requires the Trustees (as Directors for the purpose of company law) to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the surplus or deficit of the charitable company for that period. In preparing those financial statements, the Trustees are required to: • select suitable accounting policies and then apply them consistently; • make judgements and estimates that are reasonable and prudent; • state whether applicable accounting standards have been followed, subject to any material departures

disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

company will continue in business. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MEDAIR UK

We have audited the financial statements of Medair UK for the year ended 31 December 2007 which comprise the statement of financial activities, the summary income and expenditure account, the balance sheet, and the related notes. The financial statements have been prepared under the accounting policies set out therein. This report is made solely to the charity's members, as a body, in accordance with section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditors The responsibilities of the trustees (who are also the directors of the company for the purposes of company law) for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom accounting standards ('United Kingdom Generally Accepted Accounting Practice') are set out in the statement of trustees' responsibilities. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared in accordance with the Companies Act 1985. We also report to you whether in our opinion the information given in the trustees' report is consistent with the financial statements. In addition we report to you if, in our opinion, the charity has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding trustees' remuneration and other transactions is not disclosed. We read the trustees' report and consider the implications for our report if we become aware of any apparent misstatements within it. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charity's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion: • the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted

Accounting Practice, of the state of the charity's affairs as at 31 December 2007 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• the financial statements have been properly prepared in accordance with the Companies Act 1985; and • the information given in the trustees' report is consistent with the financial statements. PKF (UK) LLP London, UK Registered auditors 2008

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Medair UK STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2007 Unrestricted Restricted Total Total Notes Fund Fund 2007 2006 £ £ £ £ Incoming resources From generated funds: Donations, gifts and legacies 292,258 38,112 330,370 137,849 Interest receivable 1,038 - 1,038 666 From charitable activities: Grants receivable for humanitarian aid 2 - 3,049,894 3,049,894 3,983,076 Other incoming resources 769 - 769 2,359 Total incoming resources 294,065 3,088,006 3,382,071 4,123,950 Resources expended Costs of generating funds 3 56,390 - 56,390 35,778 Charitable activities: 3 Humanitarian aid grants transferred - 3,049,894 3,049,894 3,983,076 Donations transferred 137,756 36,477 174,233 62,683 Donations paid for staff support - - - 3,481 Other charitable activities 39,693 - 39,693 55,917 Governance costs 3 9,011 - 9,011 5,846 Total resources expended 242,850 3,086,371 3,329,221 4,146,781 Net incoming / (outgoing) resources 51,215 1,635 52,850 (22,831) for the year Transfers (2,052) 2,052 - - Net movement in funds 49,163 3,687 52,850 (22,831) Balance brought forward at 1 January 2007 49,031 104 49,135 71,966 Balance carried forward at 31 December 2007 98,194 3,791 101,985 49,135 All gains and losses recognised in the year are included in the Statement of Financial Activities, and are derived from continuing activities.

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Medair UK BALANCE SHEET

AS AT 31 DECEMBER 2007

2007 2006 Notes £ £ £ £

FIXED ASSETS Tangible assets 4 11,124 3,518 CURRENT ASSETS Debtors 5 924,092 1,224,093 Cash at bank and in hand 6 256,854 376,619 1,180,946 1,600,711 CREDITORS: Amounts falling 7 due within one year Due to associated undertaking (243,616) (720,883) Other creditors (846,469) (834,211) (1,090,085) (1,555,094) NET CURRENT ASSETS 90,861 45,617 NET ASSETS 101,985 49,135 RESERVES 8 Restricted funds 3,791 104 Unrestricted funds General 70,248 49,031 Designated 27,946 - 98,194 49,031 TOTAL FUNDS 101,985 49,135 The financial statements were approved by the Board and authorised for issue on 2008 Signed on behalf of the Trustees ………………………………. ……………………………….

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Medair UK NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2007 1 ACCOUNTING POLICIES

1.1 Accounting convention

The financial statements are prepared under the historical cost convention and in accordance with applicable accounting standards and the Statement of Recommended Practice Accounting and Reporting by Charities issued by the Charity Commission in March 2005.

1.2 Incoming resources

Income is taken to the credit of the Statement of Financial Activities on an accruals basis. Restricted grant income is credited to incoming resources when the charitable company is entitled to receipt of the grants, measured by reference to the stage of completion of the projects funded.

1.3 Resources expended

Grants transferred to Medair (Switzerland) are included as expenditure when the grant is recorded as income. This means restricted grant income is matched with an equivalent amount in resources expended. Restricted donations are included as expenditure when remitted to Medair (Switzerland). All other resources expended are included as expenditure on an accruals basis. Direct costs represent expenses attributed directly to key activities (e.g. staff time and appeal mailing costs etc.). Indirect costs represent expenses attributed to activities in support of key activities (e.g. accounting and office costs). The apportionment of indirect costs was tracked against staff time throughout the year. Governance costs are the cost associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

1.4 Tangible fixed assets and depreciation Tangible fixed assets costing more than £500 are capitalised and depreciated by equal annual instalments over their estimated useful life as follows: • Office equipment: 5 years; • Computer equipment: 3 years.

1.5 Foreign exchange

Grant income received in foreign currency and grants and donations transferred to Medair (Switzerland) are accounted for at the average rate of exchange in the year. Monetary assets and liabilities are translated into sterling the rate of exchange ruling at the year end.

1.6 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

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YEAR ENDED 31 DECEMBER 2007

1 ACCOUNTING POLICIES (continued)

1.7 Operating lease rentals

Rentals relating to operating leases are charged to expenditure as incurred. 1.8 Pension costs

The charity contributed an agreed percentage of the salary to the personal pension plan of one of its permanent employees. The pension provider is selected by the individual employees and thus the pension scheme is independently administered by, and the funds are held by, recognised pension companies. The pension cost charge (note 3) represents contributions payable by the charity to the pension fund.

2 GRANT INCOME

Grants attributable to year 2007 2006 £ £ European Commission Humanitarian Aid Office 2,545,147 3,347,528 EuropeAid Cooperation Office 504,747 635,548 3,049,894 3,983,076 During the year, the European Commission Humanitarian Aid Office and EuropeAid Cooperation Office entered into grant agreements with the charity for €6,619,117 (£4,532,705) comprising the amounts set out in the note below. The grants were in support of aid projects in the countries shown below and are released in accordance with specified criteria over the course of the agreed project period. Revenue recorded in the Statement of Financial Activities is based on contracted grant monies attributable in the year to 31 December 2007. These have been included in the Statement of Financial Activities as follows: --------------------------------------------- Grants ------------------------------------------------ Awarded but not Awarded Awarded but not Attributable to year ending taken to income in taken to income 31 December 31 December at 31/12/2006 year at 31/12/2007 2007 2006

€ € € £ £

Afghanistan - 805,931 (494,257) 213,431 96,854 Angola - - - - 199,022 Democratic Republic of Congo 2,349,620 1,551,636 (2,214,638) 1,154,979 1,783,667 Madagascar - 1,781,870 (1,441,989) 232,747 - North and South Sudan - - - - 161,746 Pakistan - - - - 210,435 South Sudan 42,000 1,118,504 (250,992) 622,825 926,224 Uganda 130,500 1,361,176 (285,596) 825,912 605,128

2,522,120 6,619,117 (4,687,472) 3,049,894 3,983,076

As noted above grants are awarded in Euros and an average rate of €0.68479 to £1 has been used to calculate income attributable to the year.

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YEAR ENDED 31 DECEMBER 2007 3 RESOURCES EXPENDED Unrestricted Restricted Total Total Funds Funds 2007 2006 £ £ £ £ Cost of generating funds

Fund raising 56,390 - 56,390 35,778 Charitable activities Grants transferred to Medair (Switzerland) - 3,049,894 3,049,894 3,983,076 Donations transferred to Medair (Switzerland) 137,756 36,477 174,233 62,683 Donations paid for staff support - - - 3,481 Other charitable activities 39,693 - 39,693 55,917 177,449 3,086,371 3,263,820 4,105,157 Governance Auditors’ remuneration 5,956 - 5,956 5,846 Other governance costs 3,055 - 3,055 - Total resources expended 242,850 3,086,371 3,329,221 4,146,781

The principal components of resources expended are as follows: Other Total Total

Staff costs Depreciation costs 2007 2006 £ £ £ £ £ Cost of generating funds 32,335 2,035 22,020 56,390 35,778 Charitable activities 23,015 1,778 3,239,027 3,263,820 4,105,157 Governance costs 2,107 127 6,777 9,011 5,846 57,457 3,940 3,267,824 3,329,221 4,146,781 Staff costs Wages and salaries 51,054 48,302 Social Security costs 5,210 4,902 Pension costs 1,193 1,115 57,457 54,318 No employee earned £50,000 per annum or more. The average number of employees analysed by function was: 2007 2006 Management and administration of the charity 2 2

Trustees receive no remuneration for their services. Actual expenses may be reimbursed. During the year the charity reimbursed £nil in respect of trustees travel expenses (2006 £301).

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YEAR ENDED 31 DECEMBER 2007 4 TANGIBLE FIXED ASSETS Computer and office equipment Total £ £ Cost At 1 January 2007 4,170 4,170 Additions 11,546 11,546 At 31 December 2007 15,716 15,716 Depreciation At 1 January 2007 652 652 Charge for the year 3,940 3,940 At 31 December 2007 4,592 4,592 Net book value At 31 December 2007 11,124 11,124 At 31 December 2006 3,518 3,518 5 DEBTORS 2007 2006 £ £ Amounts recoverable from grant funders 914,141 1,216,117 Due from associated undertaking 23 744 Other debtors and prepayments 9,928 7,232 924,092 1,224,093 6 CASH AT BANK AND IN HAND

Included in cash at bank at 31 December 2007 was £163,895 (2006 - £333,556) which was received immediately before the year end in respect of grants which were transferred to Medair (Switzerland) in early January 2008.

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YEAR ENDED 31 DECEMBER 2007 7 CREDITORS 2007 2006

£ £

Amounts falling due within one year Due to associated undertaking 243,616 720,883 Restricted income payable to Medair Switzerland 165,895 333,597 Grants unearned or repayable 668,410 493,065 Other creditors 5,549 575 Other taxes and social security 1,648 1,474 Accruals 4,967 5,500 1,090,085 1,555,094 The amount due to associated undertaking consists of project funds receivable from grant funders by Medair UK and subsequently due to Medair (Switzerland) which implements all European sponsored humanitarian aid projects.

8 MOVEMENTS IN FUNDS Unrestricted Designated Restricted funds funds funds Total £ £ £ £ 1 January 2007 49,031 - 104 49,135 Net incoming resources for the year 51,215 - 1,635 52,850 Transfers between funds (29,998) 27,946 2,052 - At 31 December 2007 70,248 27,946 3,791 101,985

During the year, the composition of restricted and unrestricted funds was reviewed and the above transfer reflects the outcome of this review. In accordance with the Policy on General Funds, the Trustees designated £27,946 of surplus unrestricted funds at the year end to be transferred to Medair (Switzerland) in furtherance of Medair UK's charitable objectives. The full amount was disbursed to Medair (Switzerland) in January 2008.

9 ANALYSIS OF NET ASSETS BETWEEN FUNDS

The net assets are held for the various funds as follows: 2007 2006 Unrestricted Designated Restricted Total Total £ £ £ £ £

Tangible fixed assets 11,124 - - 11,124 3,518 Cash at bank 225,117 27,946 3,791 256,854 376,619 Other net current assets (165,993) - - (165,993) (331,002) 70,248 27,946 3,791 101,985 49,135

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YEAR ENDED 31 DECEMBER 2007 10 RELATED PARTY TRANSACTIONS

During the year the Charity made payments of £3,915,821 (2006 : £4,261,502) to Medair (Switzerland), a related charity registered in Switzerland. Medair (Switzerland) discharges the Charity’s charitable objectives on behalf of the Charity. There was an amount due from Medair (Switzerland) of £23 (2006: £744) at the date of these financial statements.

11 OTHER COMMITMENTS

At 31 December 2007, annual commitments under operating leases were as set out below: 2007 2006 Land and Land and buildings Other buildings Other

£ £ £ £ Operating leases which expire: Within two to five years 12,500 - 12,500 -

Documents

Medair UK Trustee Report and Financial Statements