2019 - register-of-charities.charitycommission.gov.uk
TRANSCRIPT
Kingston Smith
Charity No: 1113868
Hand in Hand International
Report and Financial Statements
For the year ended 31 March 2019
Hand in Hand International
Contents of the financial statements
For the year ended 31 March 2019
Legal and administrative details
Objects and activities
Report of the 1rustees'
Report of the Independent Auditors
Statement of Financial Activities
Balance Sheet
Cash Flow Statement
Notes to the Financial Statements
3-7
8-11
12-14
15
16
17
18-27
Hand in Hand International
Legal and administrative details
For the year ended 31 March 2019
Status The organisation is a charity incorporated bytrust deed in England on 18'" February 2006.
Charity Number
Registered office and operational address
1113868
5'" Floor, Caparo House,101 —103 Baker StreetLondonW1U 6LN
Honorary officers Bruce Grant (Chairman)Percy Barnevik (Honorary Chairman)John BarrettMadhvi ChanraiCarsten JorgensonLars JosefssonPaola UgglaStephanie Whittier
Senior officers Dorothea Amdt —Chief ExecutiveAmalia Johnsson —Head of ProgrammesBob Cooke —Chief Finance Officer
Auditors Kingston SmithChartered AccountantsRegistered AuditorsDevonshire House60 Goswell RoadLondonEC1M 7AD
Hand in Hand International1rustees' ReportFor the year ended 31 March 2019
OBJECTIVES AND ACTIVITIES
Aims, issues you tackle, changes you seek to make
Joblessness is among the greatest threats to human flourishing today. Only conflict, climatechange and water crises pose a graver risk, according to the World Bank. And 7.5 million
respondents to the United Nations My World Global Survey rank 'job opportunities' third ontheir list of collective priorities.
They' re right to worry. In the next 10 years the global economy will need to create 600 million
jobs, according to the International Labour Organization. It won't be the formal sector thatprovides them. More than 3 billion people work informally in agriculture, day labour andhousehold enterprises, according to the World Bank. In Hand in Hand operating countries suchas Kenya, as few as 10 percent of people work in formal employment. In India, 51 percent ofpeople are self-employed, many informally.
Traditionally, the informal sector has been viewed with suspicion —as a source of unregulated,unstable enterprise. We see it differently —as a source of potential. Only by ernpoweringmillions of would-be entrepreneurs to launch their own businesses, boost their own incomesand seize their own destinies does the world have a chance to beat poverty.
Let's get to work.
Strategies for achieving aims
Here's how we' re helping. First, we create community groups made up mostly of women who
support each other, save together and learn together. Next, we train group members todevelop small businesses that make the most of their skills and potential. As a third step,entrepreneurs are provided with access to microloans that, with support from fellow groupmembers, are almost always paid back. Finally, we help entrepreneurs scale up their businesses
by connecting them to value chains and larger markets.
How we measure success
Hand in Hand updated our Theory of Change this year, making two notable changes to the way
we think and talk about our programmes. First, we repositioned women's economic
empowerment, once conceived as a consequence of our work creating jobs, at the very centre
of our model. Before, we asked: how can we train as many women as possible to run their own
businesses, and how can we make those businesses as profitable as possible? Now, we also
want to know: how can we address the specific barriers faced by women entrepreneurs such
as restricted mobility and expectations around 'women's work"?
At the same time, we broadened our focus from sustainable to resilient jobs —not just long-
lasting, but able to stand up to climate change.
Both changes could, from the outside, be mistaken as minor, but both will have far-reaching
implications on the way we deliver and measure our programmes. Work is ongoing to finalise a
Hand in Hand InternationalTrustees' ReportFor the year ended 31 March 2019
set of indicators —in line with the UN Sustainable Development Goals —that reflect both
changes. Broadly speaking, however, we expect to adopt the following types of metrics:
W en's o r en
~ Increased mobility and input into household expenditure~ Improved perception of abilities and self-worth
Pr it ! a dr silient nter r'
~ Average percent change in enterprise(s) income from baseline~ Enterprise(s)' survival rate after 12 months after training completed~ Diversification and intensification of enterprises from baseline (to boost climate
resilience)
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Hand in Hand regularly commissions external programme evaluations from independent
researchers. This year, two such reports were published: an end-term review of our biggest-
ever programme in Afghanistan, joint-funded with UK aid from the British people, and a mid-
term evaluation of one of our biggest programmes in Kenya, joint-funded by the IKEA
Foundation.
Significant activities
Within the network, Hand in Hand International (the UK registered charity) concentrates onfive significant activities that support our longer-term job creation targets.
1.2.3.4.5.
Raising fundsDemonstrating resultsSharing knowledgeBuilding capacityCommunicating effectively
These five areas complement each other. Results and knowledge gained from programmeimplementation and evaluation are critical for effective fundraising and supporting new andcurrent partners. Capacity building is critical for programme expansion. And effectivecommunication is important for fundraising, attracting new partners and advocating foreffective job creation policies.
Our focus, of course, is on fundraising. But in order to make our fundraising more effective, wealso work in other areas to fund and support our partners: programme evaluation, impactassessment and analysis that validate results and help us learn; disseminating results, lessonslearned and other forms of knowledge; capacity building; and preparing more effectivecommunication and marketing materials.
ACHIEVEMENTS AND PERFORMANCE
Network-wide, Hand in Hand created and enhanced 561,662 jobs in 2018-'19.
Hand in Hand InternationalTrustees' ReportFor the year ended 31 March 2019
Here in the UK at Hand in Hand International, we set ourselves the following goals in last year' sTrustees' Report:
~Fd
Hand in Hand International raised US $5.8 million in 2018-'19. 1n addition, we helped other Hand
in Hand network members secure US $0.9 million from European donors including Sida, the
Swedish International Development Agency, and CAFOD, the Catholic international
development charity. Together, these figures were 9 percent lower than planned. Currency
movements, sector-wide stagnation and a lower-than-expected fundraising returns
contributed to the shortfall.
We are grateful for the continued and renewed support of our Patrons, Trustees and many ofour donors, including the IKEA Foundation and Deutsche Gesellschaft fur Internationale
Zusammenarbeit (GIZ), the German government's development agency, and the Heinz Family
Foundation. We would also like to thank Applied Value and Google UK.
~Pt N
Partnerships are a central plank in Hand in Hand's Strategic Plan (2017-2021), enabling us toreach scale, lower our costs, avoid duplication and focus on what we do best: creating jobs. In
the past, we' ve tended to help partners boost their beneficiaries' incomes, but this year we setout to do something different: agree two "game-changing" partnerships that would
significantly increase our impact on women's economic empowerment.
In December we teamed up with CARE, whose Every Voice Counts programme aims to givewomen in Afghanistan more influence in political processes at the local and national levels.What would happen, we wondered, if we combined Hand in Hand's economic empowermentwith CARE's political empowerment? Would women who have been part of a politicalempowerment programme, and who also received business training and enterprise support,demonstrate higher economic and political empowerment than women who have been part ofa political empowerment programme only or an economic empowerment programme only?
By tracking three cohorts of women each —those who receive political empowerment training,those who receive economic empowerment training, and those who receive both —over aperiod of two years, that's exactly what we hope to find out. At the same time, we aim tocreate 990 jobs.
In Tanzania, we joined with Cartier Philanthropy and the US-based international Center forResearch on Women to boost women's economic empowerment by involving a group that-on this subject, anyway —almost always goes overlooked: men. Launched in March, theprogramme aims to train 600 women to create and manage their own enterprises while
changing attitudes that stop them from earning an income in the first place. When the projectconcludes in 2022, the lessons we learn will feed into a 'male engagement toolkit' beingdeveloped by ICRW, Cartier Philanthropy and other partners and shared sector-wide.
Bi r r aa cr sall r r in rie
Hand in Hand InternationalTrustees' ReportFor the year ended 31 March 2019
Outlined above under "how we measure success", this year's efforts to collect bigger, betterdata returned to first principles, with an update of our underlying Theory of Change. Work is
underway to finalise a set of indicators, in line with the SDGs, that best capture our two newpriorities —women's economic empowerment and resilient livelihoods —in addition to moretraditional metrics such as household income.
or eu a
This year, Hand in Hand year launched best-in-class training in Kenya, producing new and
improved training manuals for 1raining Officers throughout the country. The manuals take full
advantage of everything we' ve learned since launching in Kenya in 2010, as well as the mostup-to-date learning sector-wide.
At its core, our training remained broadly the same. But thanks to the review, it will also be:
~ better adapted to micro-entrepreneurs as opposed to SMEs;
~ better adapted to low levels of literacy among particularly older, rural members;~ better geared towards assessing members' learning; and
~ more interactive
The new manuals are currently being piloted in Kenya, with rollout in Tanzania scheduled for
later this year.
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1his year, Hand in Hand pledged to share our entrepreneurs' inspiring stories with readers
across the globe. Thanks in no small part to Frozan, an 18-year old beekeeper from Afghanistan
whose profile by Thomson Reuters went viral (by sector standards, anyway), that's exactly
what happened. Charting her rise from schoolgirl to businesswoman, Frozan's story was picked
up by outlets as geographically and topically diverse as Al Jazeera, the Daily Mail, the New
York Post, BBC Persia and Russia's Sputnik News. By the time it was done circulating more
than 350 million potential readers had been reached, making 2018-'19 our most successful year
ever for earned media.
PLANS FOR FUTURE PERIODS
Future, aims, objectives and activities planned
Hand in Hand International's priorities for the coming financial year, set during our annual
strategic review, are:
~Fd ii ~
Secure at least one multi-year women's economic empowerment programme worth at least US$1M
This goal reflects Hand in Hand's commitment to work more systematically with women,enshrined in our Theory of Change, by implementing programmes that more explicitly targetthe multi-dimensional barriers women face every day.
Hand in Hand InternationalTrustees' ReportFor the year ended 31 March 2019
Female participation in Hand in Hand programmes has always been high. Securing a women' seconomic empowerment programme worth at least US $1m is about leveraging thisparticipation to achieve more sustained, life-changing, enterprise-boosting impacts for womengroup members: improving how women entrepreneurs are perceived in their communities, forexample, or increasing male engagement in household work, thereby freeing up women to dopaid work.
Grow our income originatingin Euros or CHF by 15percent
With political uncertainty the new and ongoing norm, we anticipate significant currencyfluctuations in 2019-'20. Already, more than 75 percent of our income is in currencies otherthan G13P. To help spread the risk and continue to strengthen our donor base away from theUK, we' re targeting 15 percent growth in income originating in Euros or Swiss francs.
To get there, we' ll register and set up a not-for-profit organisation in Germany, with its main
objective to raise funds.
~P*
Ensure half of our new pr ogrammes seek to adjust for the additional barriers that women face inrunning an enterprise; and the other half go even further in reducing those barriers.
Although fernale participation in Hand in Hand programmes is high, some of our programmeslack a consistent approach for supporting female members specifically. Introducing processesand tools to ensure this is the case will allow us to more consistently reach a broaderconstituency of women, and help them achieve even greater success in most of ourprogrammes.
Under this goal we commit to at least 50 percent of our new programmes being gendersensitive, meaning they will include adjustments to compensate for the additional barrierswomen face when running an enterprise. This could include introducing childcare optionslinked to Hand in Hand training to allow more young women to participate, or ensuring thattraining is held at times compatible with domestic tasks. We further commit that up to 50percent of our programmes will be gender transformative, meaning they will not simply adjustfor the constraints women currently face, but proactively seek to reduce them. This couldmean supporting women to take leadership roles in their communities or Self-Help Groups, orengaging men in domestic work to allow women to invest more time in growing theirbusinesses.
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Roll out a set ofindicators that clearly measure how competitive we arein improving families'income AND women's economic empowerment, across all maj or programmes.
Work is underway to design and roll out a new set of indicators to reflect our changedobjectives, expressed in our Theory of Change. (See 'How we measure success' on page 2 fordetails. ) At the same time, we' ll continue to work with independent evaluators to understandhow our programmes are working, and how they could be working better. In 2019-'20, weexpect external evaluators to publish six such studies.
Hand in Hand InternationalTrustees' ReportFor the year ended 31 March 2019
STRUCTURE AND GOVERNANCE
The Trustees present their report and the audited financial statements for the year ended 31
March 2019.
Governing Document
The charity was incorporated by trust deed on 18 February 2006 and registered as a charity on
that date.
Recruitment and Appointment of Trustees
As set out in the Trust Deed, the Board of Trustees nominates the Chair of the Trustees. TheBoard has powers to appoint additional Trustees as it considers in-line with skills required.
Induction and Training of New Trustees
New Trustees are considered on the basis of any gaps in the skills of the board. They areinvited to meet the existing Trustees and senior members of staff and familiarise themselveswith the work of Hand in Hand International. Further training is provided on an on-going basisin line with the identified needs of Trustees. Trustees sign a conflict of interest declaration eachyear.
Public Benefit statement
The Trustees confirm they have complied with Section 17 of the Charities Act 2011 to have dueregard to the Charity Commission's general guidance on public benefit, "Charities and PublicBenefit".
Risk Management
The Trustees have a duty to identify and review the risks to which the charity is exposed and
to ensure appropriate controls are in place to provide reasonable assurance against fraud anderror. The Trustees have assessed the major risks to which the charity is exposed, in particularthose relating to operational areas of the charity, its investments and finances. A written risk
register is in place and reviewed at every Board meeting. This lists the key risks the Charity
faces and puts in place mitigating controls. The Trustees believe that by monitoring reservelevels, by ensuring controls exist over key financial systems and by examining the operationaland business risks faced by the charity, they have established effective systems to mitigatethose risks.
Investment Policy
Hand in Hand International receives income for ongoing projects over a three to five year timehorizon and budgets to expend all anticipated income, except for retaining a prudent amountin reserves. It has no permanent endowment and provides for capital expenditure within its
budget.
Hand in Hand InternationalTrustees' ReportFor the year ended 31 March 2019
Consequently the Trustees do not consider it prudent to invest income for the longer term. Itspolicy is to retain funds as cash and place them on bank deposit at the best rates available.
Remuneration of Staff
Last year the Charity committed to implement the recommendations of the NCVO Inquiry onExecutive Pay published in April 2014. As a result the Charity updated its remuneration policyand is pleased to make the disclosures below.
The governing principles of the Charity's remuneration policy are as follows:
~ To ensure delivery of the Charity's objectives~ To attract and retain a motivated workforce with the skills and expertise necessary for
organisational effectiveness~ That remuneration should be equitable and coherent across the organisation~ To take account of the purposes, aims and values of the Charity~ To ensure that pay levels and pay increases are appropriate in the contexts of the
interest of our beneficiary
Senior Executive Remuneration
In relation to deciding remuneration of the Charity's senior executives, the Charity considersthe potential impact of remuneration levels and structures of senior executives on the widerCharity workforce and will take account of the following additional principles:
To ensure that the charity can access the types of skills, experiences and competencies that it
needs in its senior staff, the specific scope of these roles in the Charity and the link to pay.The nature of the wider employment offer made to senior employment where pay is one partof a package that includes personal development, personal fulfilment and association with thepublic benefit delivered. The Charity recognises that it is, on occasion, possible to attract seniorexecutives at a discount to public sector or private sector market rates.
In line with the recommendations of the NCVO Inquiry into Executive Remuneration publishedin April 2014, the charity has decided to disclose the remuneration of the Executive Teamcomprising the Chief Executive and the other executive directors of the Charity.
Remuneration for the year ended 31 March 2019 comprised salary and pension contributions.There are no other pecuniary benefits for senior or other staff at the Charity.
Going Concern
The trustees have assessed the use of going concern and have considered possible events orconditions that might cast significant doubt on the ability of the charity to continue as a goingconcern.
The Trustees have made this assessment for a period of at least one year from the date of theapproval of these financial statements. In particular, the trustees have considered the charity'sforecast and projections and have taken account of pressures on income. After makingenquiries the trustees have concluded that there is reasonable expectation that the Charity hasenough resources to continue in operational existence for the foreseeable future. The Charitytherefore continues to adopt the going concern basis in preparation its financial statements.
Hand in Hand InternationalTrustees' ReportFor the year ended 31 March 2019
REFERENCE AND ADMINISTRATIVE
Trustees
The 1rustees in office during the year were:
Mr. Bruce GrantMr. Percy BarnevikMr. John BarrettDr Madhvi Chanrai
Mr. Carsten Jorgensen (Appointed 7 March 2019)Mr. Lars G JosefssonMs. Rita Rakus (Resigned 5'" September 2018)Mrs. Paola UgglaMs. Stephanie Whittier
FINANCIAL REVIEW
Income fell to 64.4m in the year to 31 March 2019. This is a decrease of 15'Yo over the previousyear.
Our fundraising ratio has remained at 9.8%
Reserves Policy
Free unrestricted Reserves stand at E1,204,268 at 31 March 2019 (31 March 2018: 61,154,091)
The Trustees decided that reserves policy should be returned to 6 months core expenditure.This was achieved at the year-end.
We have set aside designated reserves of f1,376,986 and this is to cover commitments madeto existing partners for the years to come.
Restricted income and expenditure is shown in Note 15 to the accounts.
Fundraising
Hand in Hand does not employ third party fundraisers and does not fund raise with the generalpublic.
We follow the Charity Commission's and the Institute of Fundraising's guidance on bestpractice in fundraising.
During the year there were no complaints about fundraising.
Hand in Hand InternationalTrustees' ReportFor the year ended 31 March 2019
Trustees' Responsibilities in relation to the Financial Statements
The trustees are responsible for preparing the Trustees' Report and the financial statements in
accordance with applicable law and United Kingdom Accounting Standards.
(United Kingdom Generally Accepted Accounting Practice. )
Charity law requires trustees to prepare financial statements for each financial year which give
a true and fair view of the state of the affairs of the charity and of its income and expenditure
for that period. In preparing these financial statements, the trustees are required to:
~ select suitable accounting policies and then apply them consistently;
~ observe the methods and principles of the Charities SORP;~ make judgements and estimates that are reasonable and prudent;
~ state whether applicable accounting standards, including FRS 102, have been followed,
subject to any material departures disclosed and explained in the financial statements~ state whether a Statement of Recommended Practice (SORP) applies and has
been followed, subject to any material departures which are explained in the
financial statements;~ prepare the financial statements on the going concern basis unless it is
inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with
reasonable accuracy at any time the financial position of the charity and enable them toensure that the financial statements comply with the Charities Act 2011. They are also
responsible for safeguarding the assets of the charity and hence for taking reasonable stepsfor the prevention and detection of fraud and other irregularities.
Day to day management of the charity is delegated to Dorothea Amdt, Nick Aveling, I3ob
Cooke and Amalia Johnsson.
Appointment of Auditors
Kingston Smith was reappointed as auditor during 2018/19 and have indicated their willingnessto continue in office.
Approved by the Trustees and signed on their behalf by:
8 ratChairman Hand in Hand International ll June 2019
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HAND IN HAND INTERNATIONAL
Opinion
We have audited the financial statements of Hand in Hand International for the year ended 31 March2019 which comprise the Statement of Financial Activities, the Balance Sheet, and the Cash FlowStatement and notes to the financial statements, including a summary of significant accounting policies.The financial reporting framework that has been applied in their preparation is applicable law and UnitedKingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard Applicable in
the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
~ give a true and fair view of the state of the charity's affairs as at 31 March 2019, and of itsincoming resources and application of resources, for the year then ended;
a have been properly prepared in accordance with United Kingdom Generally AcceptedAccounting Practice; and
~ have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) andapplicable law. Our responsibilities under those standards are further described in the Auditor'sResponsibilities for the audit of the financial statements section of our report. We are independent ofthe charity in accordance with the ethical requirements that are relevant to our audit of the financialstatements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) requireus to report to you where:
~ the trustees' use of the going concern basis of accounting in the preparation of the financialstatements is not appropriate; or
~ the trustees have not disclosed in the financial statements any identified material uncertaintiesthat may cast significant doubt about the charity's ability to continue to adopt the going concernbasis of accounting for a period of at least twelve months from the date when the financialstatements are authorised for issue.
Other information
The other information comprises the information included in the annual report, other than the financialstatements and our auditor's report thereon. The trustees are responsible for the other information. Ouropinion on the financial statements does not cover the other information and, except to the extentotherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If
we identify such material inconsistencies or apparent material misstatements, we are required todetermine whether there is a material misstatement in the financial statements or a materialmisstatement of the other information. If, based on the work we have performed, we conclude that thereis a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires usto report to you if, in our opinion:
~ the information given in the Trustees' Annual Report is inconsistent in any material respect with
the financial statements; or~ the charity has not kept adequate accounting records; or~ the financial statements are not in agreement with the accounting records and returns; or~ we have not received all the information and explanations we required for our audit.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement set out on page [x], the trustees areresponsible for the preparation of the financial statements and for being satisfied that they give a trueand fair view, and for such internal control as the trustees determine is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due to fraud orerror.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless the trustees either intend to liquidate the charity or to ceaseoperations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144' of the Charities Act 2011 and report in
accordance with regulations made under section 154 of that Act.
Our objectives are to obtain reasonab(e assurance about whether the financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditor's report thatincludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that anaudit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintainprofessional scepticism throughout the audit. We also:
~ Identify and assess the risks of material misstatement of the financial statements, whether dueto fraud or error, design and perform audit procedures responsive to those risks, and obtainaudit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk ofnot detecting a material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or theoverride of internal control.
~ Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purposes of expressingan opinion on the effectiveness of the charity's internal control.
~ Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the trustees.
~ Conclude on the appropriateness of the trustees' use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related toevents or conditions that may cast significant doubt on the charity's ability to continue as a
' If a charity which is below the thresholds where a charity audit is required decides to have its accounts audited voluntarily, theauditor is appointed under section 145 of the Charities Act 2011.
13
going concern. If we conclude that a material uncertainty exists, we are required to drawattention in our auditor's report to the related disclosures in the financial statements or, if suchdisclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However, future events or conditionsmay cause the charity to cease to continue as a going concern.
~ Evaluate the overall presentation, structure and content of the financial statements, includingthe disclosures, and whether the financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
Use of our report
Devonshire House60 Goswell RoadLondonEC1M 7AD
This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 ofthe Charities Act 2011. Our audit work has been undertaken so that we might state to the charity'strustees those matters we are required to state to them in an auditor's report and for no other purpose.To the fullest extent permitted by law, we do not accept or assume responsibility to any party other thanthe charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we haveformed.
V~,0 (~/i/ i
6ie4 toeStatutory auditor
Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
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Hand in Hand International
Balance Sheet
As at 31 March 2019
Fixed AssetsTangible Assets
Current AssetsLong term debtorsDebtorsCash at bank and in hand
Note
860,9791,083,9762,202,5394,147,494
20196
40,973
20186
48,492
801,019249,887
2,911,5063,962,412
Creditors: Amounts duein one year 10 47,513 124,529
Net current assets 4,099,981 3,837,883
Net assets 12 4,140,954 3,886,375
FundsRestricted fundsUnrestricted funds:Designated fundUnrestricted funds
Total funds 15
1,518,727
1,376,9861,245,241
4,140,954
1,306,806
1,376,9861,202,583
3,886,375
The notes on pages 18 to 27 form part of these accounts.
Authorised for issue and approved by the Trustees on 11 June 2019.
~rc G Bgt
Chairman
Hand in Hand International
Cash flow statement
As at 31 March 2019
Cash flows from operating activities
2019f
254,579
20188
(239,060)
Net income/(expenditure) for the yearAdjustments for:
Interest ReceivedDepreciation of fixed assetsLoss on disposal of fixed assets
Decrease/(Increase) in debtorsIncrease/(Decrease) in creditors
(1,213)10,615
(894,049)(77,016)
(1,898)11,437
246,54462,357
Net cash (used in) operating activities (707,084) 79,380
Cash flows from investing activitiesPurchase of tangible fixed assetsProceeds from sale of fixed assetsInterest received
(3,096)
1,213
(1,622)
1,898
Net cash from investing activities (1,883) 276
Change in cash and cash equivalents in theyearCash and cash equivalents at beginning ofyear
(708,967)
2,911,506
79,656
2,831,850
Cash and cash equivalents at end of theyear
2,202,539 2,911,506
Hand in Hand International
Notes to the financial statements
For the year ended 31 March 2019
l. Accounting policies
a) The financial statements have been prepared in accordance with the Financial Reporting Standardapplicable in the UK and Republic of Ireland (FRS102).The company is a public benefit entity for the purposes ofFRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its
financial statements in accordance with the Statement of Recommended Practice applicable to chanties preparingtheir accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland
(The FRS102 Charities SORP), the Companies Act 2006 and Charities Act 2011. The financial statements have beenprepared in sterling, which is the functional currency of the company. Monetary amounts in these accounts havebeen rounded to the nearest pound. The financial statements have been prepared on the historical cost convention,modified to include certain financial instruments at fair value. The principal accounting policies adopted are set outbelow.
Going concern
The trustees have assessed whether the use of going concern is appropriate and have considered possible events orconditions that might cast significant doubt on the ability of the charitable company to continue as a going concern.The trustees have made this assessment for a period of at least one year from the date of the approval of thesefinancial statements. In particular, the trustees have considered the charitable company's forecasts and projectionsand have taken account of pressures on fee income. After making enquiries, the trustees have concluded that therea reasonable expectation that the charitable company has adequate resources to continue in operational existencefor the foreseeable future. The charitable company therefore continues to adopt the going concern basis in
preparing its financial statements.
b) All income is recognised when there is entitlement to the funds, the receipt is probable and the amountcan be measured reliably. Donations and grants, including grants in respect of major items of refurbishment,
improvements or the purchase of fixed assets are recognised in in the Statement of Financial Activities when
receivable. Where income is received in advance of meeting any performance-related conditions there is notunconditional entitlement to the income and its recognition is deferred and included in creditors as deferred incomeuntil the performance-related conditions are met.
c) Gifts in Kind are included as donated income at market value at the time of receipt.
d) Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT
which cannot be recovered. Expenditure is recognised once there is a legal or constructive obligation to transfereconomic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlementand the amount of the obligation can be measured reliably.
The majority of costs are directly attributable to specific activities. Certain shared costs are apportioned toactivities in furtherance of the objects of the charity and raising funds. Office costs and property related costs areapportioned on the proportion of floor area occupied by the activity. Staff costs and office costs are allocated in thesame proportion as directly attributed staff costs. Costs incurred for the management of the charitable company'sassets, organisational management and compliance with constitutional and statutory requirements are treated assupport costs and allocated to chantable activities.
e) Depreciation is provided at rates to write off the cost of each asset by equal annual instalments over theirexpected useful lives as follows.
Office equipmentLeasehold improvements
4 years10 years
Assets costing more than ES00 are capitalised.
18
Hand in Hand International
Notes to the financial statements (continued)
For the year ended 31 March 2019
f) Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meetsthese criteria is charged to the fund.
g) Unrestricted funds are donations and other incoming resources receivable or generated for
the objects of the charitable company.
h) Designated funds are also unrestricted funds but have been designated by the trustees for a particular purposeand includes the net book value of tangible fixed assets used by the charitable company in its operationalactivities.
i) Rental payments under operating leases are charged as expenditure as incurred over the term of the lease.
j) The charitable company operates a defined contribution pension scheme. The assets of the scheme are heldseparately from those of the charitable company in an independently administered fund.
The pension cost charge represents contributions payable under the scheme by the chantable company tothe fund. The charitable company has no liability under the scheme other than for the payment of thosecontributions.
k) Monetary assets and liabilities in foreign currencies are translated into sterkng at the rates of exchange rulingat the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchangeruling at the date of transaction. Exchange differences are taken into account in arriving at the net incoming
resources for the year.
Critical accounting estimates and areas of judgement
I) In the wew of the trustees in applying the accounting policies adopted, no judgements were required that havea significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions
made carry a significant risk of material adjustment in the next financial year .
Other financial instruments
m) Cash and cash equivalents
Cash and cash equivalents include cash at banks and short term deposits with a maturity of three months orless.
n) Debtors and Creditors
Debtors and creditors receivable or payable within one year of the reporting date are carried at theirtransaction price. Debtors and creditors that are receivable or payable in more than one year and not subjectto a market rate of interest are measured at the present value of the expected future receipts or paymentdiscounted at a market rate of interest.
19
Hand in Hand International
Notes to the financial Statements (continuedl
For the year ended 31 March 2019
2. Donations
Restricted UnrestrictedE E
DesignatedE
2019Total
f
General Donations 3,498,487 920,543 4,419,030
3,498,487 920,543 4,419,030
Included within General Donations are Gifts-in-Kind of E22,893 (2017:E107,171) the corresponding expenditure
is included in support costs (Note 4).
RestrictedE
Unrestricted DesignatedE f
2018Total
E
Grants Received:The Department forInternational Development(GPAF —IMP -108)General Donations
440,191
2,208,498 2,527,340
2,648,689 2,527,340
440,1914,735,838
5,176,029
3 Net ExpenditureThe support costs of the charity were:
DepreciationAuditor's Remuneration:
AuditAccountancy
Operating lease payments
2019f
10,615
8,840
86,640
2018E
11,437
8,540
86,640
20
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Hand in Hand international
Notes to the financial statements (Continued)
For the year ended 31 March 2019
5. Staff Costs and numbers
Salaries and wagesSocial security costsPension contribution
2019
615,63264,60029,801
710,033
2018E
582,116
55,13426,288
663,538
The number of employees earning over f60,000 in the year is as follows:
E80,000 - E90,000E90,000 - E100,000
2019Nos
2018Nos
2
Pension costs in relation to this employee amounted to f5,996 (2017/18: 17,279).
The average weekly number of employees (full time equivalents) during the year was asfollows:
Operational programmesFundraising and publicityManagement and administration
2019Nos3.08.01.3
12.3
2018Nos3.07.31.3
11.6
In addition many volunteers assisted us with our work during the year.
Key management personnel include the Trustees, Chief Executives (and senior staff reportingdirectly to the Chief Executives). The total employee benefits of the Charity's key managementpersonnel were f171,944 (2017/18:E218,661).
No trustee received any remuneration or other employment benefit during the financial year.(2017/18 —Nil).
E373 was reimbursed to I trustee for directly incurred travel expenses during 2018/19 (2017/18:2 trustees, E360).
6. Taxation
The charitable company is exempt from corporation tax as all its income is charitable and is
applied for charitable purposes.
23
Hand in Hand international
Notes to the financial statements (Continuedl
For the year ended 31 March 2019
7. Tangible fixed assets
CostAt 1"April 2018Additions in yearRemove depreciated items
As at 31 March 2019
Leaseholdimprovements
E
49,991
49 991
Officeequipment
E
43,8613,096
(18,111)
28,846
TotalE
93,8523,096
(18,111)
78,837
DepreciationAt 1"April 2018Additions in yearRemove depreciated items
As at 31 March 2019
9,9984,999
14,997
35,3625,616
(18,111)
22,867
45,36010,615(18,111)
37,864
Net book value:At 31 March 2019
34,994 5,979 40,973
At 31 March 2018 39,993 8,499 48,492
All fixed assets are used to fulfil the charity's objects.
8. Long term debtors
Rent DepositEnterprise incubation funds
2019E
43,320817,659
860,979
2018E
43,320757,699801,019
These loans have been made to Hand in Hand Eastern Africa to enable them to make micro-
loans to beneficiaries.
The above are public benefit entity concessionary loans that are not repayable on demand and
were loaned to the beneficiary as part of the purposes of the charity's objects.
24
Hand in Hand International
Notes to the financial statements (Continued)
For the year ended 31 March 2019
9. Debtors
Accrued IncomeOther debtorsPrepayments
2019E
1,046,3222,410
35,2441,083.976
2018E
99,984113,77936,124
249,887
Other than prepayments all debtors are financial instruments. These have been measured atpresent value.
10. Creditors: amounts due within one year
Taxation and social securityAccrualsEnterprise Incubation Funds
2019E
19,72627,787
47.513
2018
16,55578,15629,818
124,529
Included within accruals is an amount of E725 (2016/17 E247) relating to employee pensions.
All creditors are financial instruments. These have been measured at present value.
12. Analysis of net assets between funds
2018/2019
Tangible fixed assetsCurrent assetsCurrent liabilities
Net assets as at 31March 2018
Restrictedfunds
E
1,518,727
1,518,727
DesignatedFunds
E
Unrestrictedfunds
E
40,9731,251,781(47,513)
Total fundsE
40,9734,147,494
(47,513)1,376,986
1,245,241 1,376,986 4,140,954
2017/18
Tangible fixed assetsCurrent assetsCurrent liabilities
Net assets as at 31
March 2017
Restrictedfunds
E
1,306,806
Unrestrictedfunds
E
48,4921,278,620(124,529)
DesignatedFunds
E
1,376,986
1,306,806 1,202,583 1,376,986
Total fundsE
48,4923,962,412(124,529)
3,886,375
25
Hand in Hand International
Notes to the financial statements (Continued)
For the year ended 31 March 2019
13. Related partiesThe following transactions were made during the years:
2019 2018ConnectedCharity
HiH Sweden
HiH EasternAfricaHiH EasternAfrica (Tz)HiH Afghanistan
HiH India
Friends of Hand
in Hand
Nature ofrelationship
Sisterorganisation
ImplementingPartnerImplementingPartnerImplementingPartnerImplementingPartnerSisteror anisation
Totaltransactionsin year
Balanceat yearend
Totaltransactionsin year
12
Balance atyear end
E110,766Debtor
E52,679Creditor
Nature oftransactions
Forwardingdonations/sharing
costsTransfer for
pro'ectsTransfer for
projectsTransfer for
pro'ectsTransfer for
rojectsDonations
Amalia Johnsson is Chair of Hand in Hand Eastern Africa and is also a trustee of Hand in Hand
Afghanistan and an employee of Hand in Hand International.
Dorothea Amdt is a Trustee of Hand in Hand Eastern Africa.
Bruce Grant and Dorothea Amdt are Trustees of Friends of Hand in Hand, a charity registeredin the United States of America.
Transactions with Trustees:During the year 2018/19 2 trustees donated (2017/18: I). These trustees donated a total ofE269,868 (2017/18: E360,000).In 2018/19 there were no donations from Companies related to trustees (2017/18 ENil).
14. Obligations under operating leases
Within 1 yearBetween 1-5
yearsBetween 5 and10 years
31 March 2019Land andbuildings
f79,420
99,275
178,695
Other31 March 2018
Land andbuildings
E
79,420
178,695
258,115
Other
26
Hand in Hand International
Notes to the financial statements (Continuedj
For the year ended 31 March 2019
15. Movements in funds
2018/2019
AfghanistanIndia
Kenya and Tanzania
Balance at1April 2018
E
98,49832,658
1,175,650
IncomeE
1,075,325
2,423,162
ExpenditureE
(638,355)(32,658)
(2,615,553)
Balance at31 March
2019E
535,468
983,259
1,306,806 3,498,487 (3,286,566) 1,518,727
Unrestricted funds
Designated funds1,202,583 921,756 (879,098)1,376,986
1,245,241
1,376,9863,886,375 4,420,243 (4,165,664) 4,140,954
2017/2018
AfghanistanIndia
Kenya and Tanzania
Balance at I
April 2017E
1,221,611
Income ExpenditureE E
870,156 (771,658)62,658 (30,000)
1,715,875 (1,761,836)
Balance at31 March
2018E
98,49832,658
1,175,650
1,221,611 2,648,689 (2,563,494) 1,306,806
Unrestricted funds
Designated funds1,026,8381,876,986
2,529,238 (2,353,493) 1,202,583(500,000) 1,376,986
4,125,435 5,177,927 (5,416,987) 3,886,375
More details of these reserves are given in the Trustees' Report.Designated funds are funds set-aside for expansion into new project areas and will be spentover the next few years.
27