sciaf 2012 typesigned accounts

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Company number: SC197327Charity number: SC012302

SCOTTISH CATHOLIC INTERNATIONAL AID FUND(COMPANY LIMITED BY GUARANTEE)

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2012



FINANCIAL STATEMENTSFOR YEAR ENDED 31 DECEMBER 2012

CONTENTS Page

Company information 1

Directors’ Report 2

Independent Auditors’ Report 9

Statement of Financial Activities 11

Balance Sheet 12

Cash Flow Statement 13

Notes to the financial statements 14



Company Information

Charity Name: Scottish Catholic International Aid Fund

Charity registration number: SC012302

Company registration number: SC197327 (Scotland)

Registered Office and 19 Park CircusOperational address: Glasgow

G3 6BE

Board of DirectorsHis Eminence K. P. Cardinal O’Brien (Chairman) (retired 4 March 2013)Right Rev P. A. Moran (President)Most Rev M. J. Conti (retired 7 November 2012)Right Rev I. Murray (retired 13 December 2012)Most Rev P Tartaglia (appointed 8 February 2012)Right Rev J. A. Toal (appointed 8 February 2012)

Right Rev S. Robson (appointed 20th March 2013)

Secretary

McSparran McCormick, Solicitors

Senior Management Team

Patricia Chalé Executive Director (appointed 1 December 2012 and left 2May 2013)

Philippa Bonella Head of Communication and EducationLorraine Currie Head of International ProgrammesDonna Ulijn Head of Central Services

Finance & Audit Committee

Eleanor Taylor (Chair) (Resigned 4 February 2013)Suzanne BunnissPaul McCormickThis committee has been disbanded

Auditors: Grant Thornton UK LLP, 95 Bothwell Street, Glasgow, G2 7JZ

Solicitors: McSparran McCormick, Solicitors, Waterloo Chambers,19 Waterloo Street, Glasgow, G2 6AH

Bankers: Royal Bank of Scotland, Glasgow Charing Cross Branch,9 Clifton Place, Glasgow, G3 7JU

Bank of Scotland, PO Box 1000, BX2 1LB

Santander, 9 Nelson Street, Bradford, West Yorkshire, BD1 5AN

Co-operative Bank, 1 Balloon Street, Manchester, M60 4EP

Clydesdale Bank, 1 Woodside Crescent, Glasgow, G3 7UL

Investment Newton Investment Management Ltd., 2 Festival Square, Edinburgh, EH3Managers: 9SU

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Report of the Directors for the year ended 31 December 2012

The directors present their annual report and audited financial statements for the year ended31 December 2012.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Scottish Catholic International Aid Fund (“SCIAF”) is a company limited by guarantee,incorporated in Scotland (registration number 197327) on 18 June 1999 and is also a Scottishcharity registered with the Office of the Scottish Charity Regulator (charity reference number SC 012302). SCIAF is the official international aid and development agency of the CatholicChurch in Scotland. The memorandum and articles of association govern SCIAF and haveremained unchanged since incorporation.

Organisational structure

The directors are responsible for the overall control of the charity. The directors give their

time freely and receive no remuneration or other financial benefits. Most Rev M. J. Contiretired as a director on 7 November 2012, Right Rev I. Murray retired on 13 December 2012and His Eminence K. P. Cardinal O’Brien retired on 4 March 2013. Two new directors wereappointed on 8 February 2012: Most Rev P Tartaglia and Right Rev J.A. Toal. The Right RevS.Robson was appointed on 20th March 2013.

The directors meet quarterly together with Senior Management Team and are responsible for overseeing the alignment between SCIAF’s vision, mission and values with its operationalactivities. They approve organisational strategy including annual work plans and budgets toensure it is accountable and effective.

The day-to-day management of the organisation and implementation of plans are delegatedto the Senior Management. This includes the implementation, monitoring and evaluation of

development programmes, support for overseas partners, fundraising, education andadvocacy.

Patricia Chalé was appointed as Executive Director on 1 December 2012. She left theorganisation on 2nd May 2013.

Recruitment and appointment of directors

The existing directors are responsible for the nomination of new directors. In selecting newdirectors, we seek to identify qualified and committed people. All directors are formallyappointed by the Bishops’ Conference of Scotland which is a permanently constitutedassembly of the eight Scottish Roman Catholic Diocesan and retired Bishops.

Induction and training of directors

Following appointment, new directors are briefed by the Board and management. They arealso given the opportunity to visit partner organisations in SCIAF’s areas of work. They aregiven a copy of the Memorandum and Articles of Association and introduced to SCIAF’svision, mission, values and its operational activities including annual work-plans and budgets .

Finance & Audit Committee

The members of the Committee are detailed on page 1. The key responsibilities of theCommittee are to advise the Board on the financial implications of the Board’s strategic andfinancial decisions and to monitor the integrity of SCIAF’s internal and external financialstatements. The members of the Committee are appointed independently from the Board.

This committee has been disbanded and a new committee will be set up in 2013 where theChair of the Committee will also be a Board member.

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Report of the Directors for the year ended 31 December 2012 (continued)

Risk Management

SCIAF’s risk register identifies the major risks by area of activity, the nature of those risks, the

likelihood of the risks happening and the measures taken to manage them. The directorsreview this risk register at least annually at their meetings. The aim of this review is to ensuredirectors are satisfied that systems are in place, or arrangements are in hand, to mitigate allsignificant risks. SCIAF’s current key risks relate to generation of institutional income and thesubsequent compliance and Governance. These areas are being actively managed.

Financial risk management objectives and policies

SCIAF’s operations expose it to a variety of financial risks that include the effects of changesin credit risk, liquidity risk, foreign exchange risk and interest rate risk. SCIAF does not usederivative financial instruments to manage interest rate or foreign exchange costs and assuch, no hedge accounting is applied.

a) Price risk: SCIAF is exposed to price risk as a result of its operations. However,given the size of its operations, the cost of managing exposure to price risk exceedsthe potential benefits.

b) Credit risk: SCIAF’s income is mainly either from donations which does not have acredit risk or from public bodies which are viewed by the directors as being low creditrisk. The amount of exposure is reassessed regularly by the Board.

c) Liquidity risk: SCIAF maintains short-term cash that is designed to ensure that it hassufficient funds for its operations.

d) Variable interest - rate risk: placement of cash is regularly monitored.

OBJECTIVES AND ACTIVITIES

Our mission

Inspired by the gospel call to build a just world, SCIAF challenges injustice by strengtheningpoor and oppressed people and by stimulating the Scottish public to share in our common

struggle for human dignity.

Our objectives

The objects set out in SCIAF’s Memorandum of Association enable SCIAF to undertake awide range of charitable activities including the relief of poverty, advancement of educationand the relief and prevention of sickness, disease, and physical and mental disabilityanywhere in the world.

The main focus of our work in developing countries is helping people to overcome hunger,

conflict, and disease; and responding to humanitarian disasters. We raise money in Scotlandto help people in Africa, Asia and Latin America find lasting solutions to poverty.

As well as providing practical support, we are passionate about challenging the underlyingcauses of poverty through education and advocacy. We aim to influence policy on issues likeunfair trade, debt and climate change, and raise awareness of the need for change throughour work in schools and parishes in Scotland.

SCIAF is the official aid agency of the Catholic Church in Scotland. We are part of CaritasInternationalis, the global network of Catholic agencies dedicated to ending poverty andworking alongside the world’s poorest people, whatever their faith.

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Strategies

SCIAF continues to support partner organisations in the most deprived countries in the world.We give priority to initiatives which focus on the needs and aspirations of people experiencingthe most extreme forms of poverty and oppression. We seek to provide integrated humandevelopment programmes which are effective and self-sustaining in the long term. Weprovide financial and technical support primarily to groups, with a strong emphasis on apartnership approach to programme design, implementation and organisational andprogramme development.

SCIAF also provides grants to organisations in the UK and overseas which help to educatethe Scottish public, raise awareness of the underlying causes of poverty and advocate for change.

SCIAF’s monitoring and evaluation framework helps us learn from and improve every element

of our work. The senior management team monitors progress and reports to the Board of Directors.

Use of volunteers

Volunteers are a hugely important resource in the work of SCIAF, at headquarters, incommunities around Scotland and overseas. Volunteers are involved in most of our activitiesand we are lucky to have over 200 people who gave an estimated 13,000 hours of energyand expertise to SCIAF in 2012. All volunteers working with children or other vulnerablegroups are checked with Disclosure Scotland as part of our child protection policy. During theyear we created a very active volunteer forum to improve our involvement of volunteers andwe are grateful for the input and suggestions made, which will stand us in good stead for thefuture.

ACTIVITIES AND ACHIEVEMENTS

How our activities deliver public benefit

SCIAF carries out a wide range of activities in pursuance of our charitable aims. Thedirectors consider that these activities, summarised below, provide benefit both to theCatholic and wider community in our projects in Asia, Latin America and Africa.

Working in partnerships to deliver development projects to help reduce poverty &injustice overseas

In 2012, SCIAF disbursed £2,910,122 to over 63 development projects delivered by 53 local

partners across 18 countries in Africa (South Sudan, Uganda, Burundi, DRC, Liberia, Malawi,Rwanda, Tanzania, Zambia, Zimbabwe), Asia (Cambodia, Burma, India) and Latin America(Brazil, Colombia, el Salvador, Haiti, Nicaragua). We continued to implement our new way of working as outlined in our policy, SCIAF’s Approach to International Development. This policyidentifies 3 thematic areas for our international development programmes, namely:sustainable livelihoods, peace building and access to justice, and HIV and AIDS. In addition,we work to six cross-cutting themes of gender, inclusion, climate change, HIV and AIDS,environment and disability. The number of people who benefited directly from our development programme in 2012 was 136,419, while 2,185,371 benefited indirectly. In 2012,successful applications to institutional donors ensured that we secured £1,453,469 for our development work overseas in addition to our voluntary income.

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Response to humanitarian crises in collaboration with our long term partners, sister agencies and Caritas Internationalis.

Additionally in 2012, SCIAF responded to humanitarian emergencies across the following 11countries: Ethiopia, Kenya, Nigeria, Malawi, Pakistan, Senegal, South Sudan, Burma, India,Chile and Haiti by implementing 48 projects through 32 partners. Our emergency budgetsupported an estimated 275,119 people directly, and 1,351,189 indirectly by meeting their immediate needs post emergency as well as early recovery initiatives. The majority of our East Africa emergency funds were channelled through our Joint Office in Addis Ababa,Ethiopia with our sister agencies CAFOD and Trocaire.

Education

This year, together with our team of 11 schools volunteers, the Outreach Team visited 128schools across Scotland. A working group began to develop a new Religious Educationresource based on the new RE syllabus for Catholic schools This is our Faith, jointly with

sister agencies Missio Scotland and Justice and Peace Scotland. We had a presence at theCaritas Awards ceremony for secondary school children and are planning further involvementfor next year.

An impact evaluation of our schools work was carried out, with some very positive feedbackand recommendations for future ways of working. Two partner visits to schools werearranged – from our Indian partner, the Association for People with Disabilities, and from our Nicaraguan partner, Special Families. Both sets of visits were well received and havedeepened relationships between schools and partners.

We continued to provide in-service training and continuing professional development toteachers on SCIAF’s work and international development. Our digital work continues to grow,with successful e-bulletins for teachers and pupils.

Lenten Campaign

Our WEE BOX, BIG CHANGE Lent campaign created global headlines again when superstar Susan Boyle launched the campaign at St Augustine’s High School in Edinburgh. The storieson our WEE BOX this year featured the great achievements of disabled people living inpoverty in India, given education, training and employment opportunities through our partner,the Association of People with Disabilities. The campaign was well-received, and a totalincome of £847,054 (2011: £959,031) was raised. This includes £582,074 (2011: £597,041)raised from dioceses across Scotland.

Advocacy

SCIAF’s advocacy work advances “our common struggle for human dignity” by seekingsolutions which will bring an end to poverty and injustice around the world.

SCIAF celebrated a major advocacy success in May, when the Scottish Governmentannounced the creation of a £3million Climate Justice Fund. The creation of such a fund hadfeatured in its manifesto for the 2011 Scottish Parliament elections, and was supported by our partners in the Stop Climate Chaos Coalition. This money, which is additional to the ScottishGovernment’s International Development Fund, will help people in developing countries adaptto the impact of climate change, and can be used as an example for other industrialisednations to follow.

We have continued to work with our partners overseas to strengthen the link betweennorthern and southern advocacy, and to build the capacity of partners to undertake advocacy

work in their own countries. We hosted the Advocacy Manager from the Association of People with Disabilities for a study visit during Lent. We continue to support the Jesuit Centre

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for Theological Reflection in Zambia and the Jesuit European Social Centre, and are pilotingnew approaches to advocacy research with partners in the DRC and India.

In August 2012, we joined a major coalition of aid and development agencies planning towork together throughout 2013 to address the root causes of hunger and poverty. We expectto play a key role and share in significant benefits as a result of the IF campaign .

Building support within the Scottish community

This year, staff, volunteers and our overseas partners visited over 70 Catholic parishes,thanking people for their support and communicating about the work that we do. We also heldtraining days around Scotland for parish contacts and diocesan ambassadors, enabling themto meet each other and SCIAF staff, and learn more about our work. This team of 148volunteer parish contacts, including 15 new recruits, and 7 diocesan ambassadors areespecially busy at Lent, in support of the SCIAF Lent campaign. We took advantage of thevisit of our Nicaraguan partner, Special Families, to hold two very successful supporter

events.

We launched our new website this year and have substantially increased the average timepeople spend on the site and the number of pages viewed. Traffic from social media sites toour website has increased by 500% on last year and supporters have fed back that the newwebsite is easier to use, in particular when making a donation. Providing a high standard of service to our supporters remained a core priority, with over 74,000 individual transactionsswiftly processed, and only 24 complaints, all of which were successfully resolved.

FINANCIAL REVIEW

Results for the year

The net outgoing resources before other gains and losses are £559,193 (2011 As restated:£674,105 outgoing). Staff costs have decreased in the year (as shown in note 7)due to a number of staff vacancies in the year including the Executive Director position which was vacant until December 2012. Staff costs will rise in 2013 asthe vacancies have now been filled.

There has been a change in accounting policy in respect of grants payable which has had theeffect of increasing reserves brought forward at 1 January 2012 by £303,127and of increasing the deficit for the year to 31 December 2011 by £3,335.

Principal funding sources

The charity’s main source of income is voluntary income from individuals through regular

donations, our Lenten campaign and legacies. Total voluntary income reached the sum of £3,712,438 (2011: £4,688,026). This represents a decrease from the previous year, as wasexpected, given the economic conditions and due to there being no large scale emergencyappeals in 2012. SCIAF also received £1,453,469 (2011: £1,554,226) of institutional fundingfor overseas relief and development.

Investment policy

SCIAF’s investment policy was developed by the Board of Directors to enable SCIAF tomaximise the potential income from funds held at any time, while minimising the risk of loss of value. Funds are split between corporate charity bonds, interest bearing current accounts andmedium term stock exchange investments. The latter are managed for SCIAF by NewtonInvestment Management Ltd, and investments are required to meet strict ethical guidelines,

consistent with the work and beliefs of SCIAF. At the end of 2012, the funds invested had a

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Report of the Directors for the year ended 31 December 2012 (continued

market value of £3,379,990 (2011: £3,229,263). The investment objective is to achieve abalanced return from income and capital growth over the long term. The Board compare theperformance of the fund against cash – the LIBID 7- day Index +3% and a composite of the

following indices: FTA Government All Stocks Index (49%), FTSE All Share Index (49%) andCash (2%). Over the year the portfolio outperformed its benchmark by 3% (SCIAF: 10.4%compared to Composite Benchmark of 7.4%) and the portfolio yield at the 31 December 2012was 3.6%.

Reserves policy

The directors review SCIAF’s reserves policy annually and monitor the level of reserves andthe financial position each quarter. Restricted reserves are generated when the supporter or donor organisation stipulates the area of activity in which the income has to be spent (for example where funds are received in response to a particular emergency or for a particular project overseas). SCIAF regularly pre-finances programme costs that will be covered bygovernment and other institutional programme grants, approving and paying out funds to local

partners, in advance of receiving funds from the donor. As a result negative balances ariseon particular restricted funds. At the end of 2012, restricted funds held amounted to £198,798(2011 As restated: £547,109) representing positive balances of £615,942 (2011: £1,353,434)and negative balances of £417,144 (2011: £806,325).

Unrestricted funds are generated when there are no restrictions imposed by the donor. SCIAFholds a minimum general reserve level of 6 months’ expenditure and up to a maximum of 12months. At the end of 2012, SCIAF had £8,215,037 (2011 As Restated: £8,221,235) inunrestricted funds of which designated funds amounted to £4,505,621 at 31 December 2012(2011:£4,283,477). As detailed in note 13, the Board has a policy to set aside contingencyreserves based on its expectation of the likelihood and impact of financial risks. Thesedesignated funds are to ensure that, in the wake of significant unexpected events, SCIAF cancontinue to respond rapidly to emergencies, can meet its planned future commitments to

current projects, and continue its operations. In accordance with this policy the Board has setthe level of the Operational Reserve Fund at £1,252,603 (2011: £1,000,000) which is 1 year’soperational costs. This reserve was fully funded.

The overseas aid reserve sets aside planned grant expenditure for the following year’sexpenditure base. Details of other specific reserves appear in note 13 to the accounts.

£3,709,416 (2011 As restated: £3,937,758) forms a general fund that the Board intends tospend on SCIAF’s work over the next 5 years. SCIAF continues to use this fund to directmore funds where they are most needed, but our concern to make sure that these funds arespent wisely has resulted in a longer period for consideration and evaluation before sums arecommitted for new projects and other work.

Plans for the future

2013 will be a period of strengthening the governance and operational capacity of SCIAF,consolidating work begun in 2012 in a range of areas. This will include, for example,diversification of the Board of Directors to include lay members with specific expertise.

We will further develop the quality of our international programmes, based on on-goingmonitoring and evaluation of their effectiveness. In addition, we aim to grow our educationand outreach focus, to improve the ability of the Scottish public to understand and addressthe long-term causes of poverty in the developing world.Our campaigning work will grow in 2013, with a focus on tackling the root causes of hunger which we expect will attract substantial numbers of new supporters. We will build our focuson education and our work with young people, taking advantage of the Year of Faith and

World Youth Day 2013, and launching our new resource for RE teachers.

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We will continue to actively communicate our work and build our social media presence. Wewill increase the number of volunteers who give time to support our work, and will workclosely with our consultative volunteer forum to finalise new policies to ensure SCIAF is

‘volunteer friendly’.

Statement of Directors’ responsibilities

The directors are responsible for preparing the Directors’ Report and the financial statementsin accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year.Under that law the directors have elected to prepare the financial statements in accordancewith United Kingdom Generally Accepted Accounting Practice (United Kingdom AccountingStandards and applicable law). Under company law the directors must not approve thefinancial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources,

including the income and expenditure, of the charitable company for that period.

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgments and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to

any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is

inappropriate to presume that the charitable company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient toshow and explain the charitable company’s transactions and disclose with reasonableaccuracy at any time the financial position of the company and enable them to ensure that thefinancial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors confirm that:

• so far as each of the directors is aware there is no relevant audit information of

which the charitable company’s auditor is unaware; and

• the directors have taken all steps that they ought to have taken as directors to make

themselves aware of any relevant audit information and to establish that thecharitable company’s auditor is aware of that information.

The directors are responsible for the maintenance and integrity of the corporate and financialinformation included on the company’s website. Legislation in the United Kingdom governingthe preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The directors for the purposes of charity law who served during the year and up to the date of this report are set out on page 1.

Approved by the directors and signed on their behalf by:

Rt. Rev. P.A. MoranPresident4 June 2013

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Independent auditor's report to the directors and members of the Scottish CatholicInternational Aid Fund

We have audited the financial statements of the Scottish Catholic International Aid Fund for the year ended 31 December 2012 which comprise the Statement of Financial Activities, theBalance Sheet, the Cash Flow Statement and the related notes. The financial reporting

framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company's directors and members, as a body, inaccordance with section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act2005 and under Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has beenundertaken so that we might state to the charitable company's directors and members thosematters we are required to state to them in an auditor’s report and for no other purpose. Tothe fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its directors and members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor

As explained more fully in the Directors’ Responsibilities Statement set out on page 8, thedirectors (who are also the trustees of the charitable company for the purposes of charity law)are responsible for the preparation of the financial statements and for being satisfied that theygive a true and fair view.

We have been appointed as auditor under section 44(1)(c) of the Charities and TrusteeInvestment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordancewith regulations made under those Acts.

Our responsibility is to audit and express an opinion on the financial statements inaccordance with applicable law and International Standards on Auditing (UK and Ireland).Those standards require us to comply with the Auditing Practices Board’s (APB's) EthicalStandards for Auditors.

Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB's websiteat www.frc.org.uk/apb/scope/private.cfm.

Opinion on financial statementsIn our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31

December 2012 and of its incoming resources and application of resources, including itsincome and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted

Accounting Practice; and• have been prepared in accordance with the Companies Act 2006, the Charities and

Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts(Scotland) Regulations 2006 (as amended).

Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Directors’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

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Independent auditor's report to the directors and members of the ScottishCatholic International Aid Fund (continued)

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report

to you if, in our opinion:

• the charitable company has not kept proper and adequate accounting records or returns

adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Diana PennySenior Statutory Auditor for and on behalf of Grant Thornton UK LLPStatutory Auditor, Chartered AccountantsEdinburgh

6 June 2013

Grant Thornton UK LLP is eligible to act as an auditor in terms of section 1212 of theCompanies Act 2006.

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STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITUREACCOUNT)FOR THE YEAR ENDED 31 DECEMBER 2012

Unrestricted

Funds

Restricted

Funds

TotalFunds

2012

TotalFunds

(As restated)

2011Note £ £ £ £

Incoming resourcesIncoming resources from generating

fundsVoluntary income

Lenten income 582,074 - 582,074 597,041Individual donations 2,050,554 583,370 2,633,92

43,603,071

Legacies 491,440 5,000 496,440 487,914

Total voluntary income 3,124,068 588,370 3,712,438

4,688,026

Activities for generating fundsSale of goods & resources 17,412 - 17,412 59,799Investment income 125,870 - 125,870 133,176

Bank interest 39,567 3,239 42,806 29,693Total incoming resourcesfrom generated funds 3,306,917 591,609 3,898,52

64,910,694

Total incoming from charitable activitiesInstitutional funding – overseas relief and development

2 148,835 1,304,634 1,453,469

1,554,226

Total incoming resources 3,455,752 1,896,243 5,351,995

6,464,920

Resources expended

Costs of generating fundsFund raising and advertising 3 582,676 - 582,676 704,077Cost of managing investments 20,067 - 20,067 19,092

Costs of charitable activitiesInternational programmes 5a 2,197,807 2,405,806 4,603,61

35,667,847

Information and education 5b 293,811 - 293,811 248,259 Advocacy and communication 5c 389,617 - 389,617 473,186

Governance costs 5d 21,404 - 21,404 26,564

Total resources expended 3,505,382 2,405,806 5,911,188

7,139,025

Net outgoing resources beforetransfers (49,630) (509,563) (559,193) (674,105)Transfers between funds (161,252) 161,252 - -

Net outgoing resources before other gains and losses (210,882) (348,311) (559,193) (674,105)Gains on investment assets 499 - 499 62,722Movement in investment valuation 204,185 - 204,185 (34,248)

Net movement in funds (6,198) (348,311) (354,509) (645,631)Total funds brought forward (as restated- see Note 1) 8,221,235 547,109 8,768,34

49,413,975

Total funds carried forward 13 8,215,037 198,798 8,413,835

8,768,344

The Statement of Financial Activities includes all gains and losses in the year. All incoming resources and resources

expended derive from continuing activities.The accompanying notes form part of the financial statements.

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BALANCE SHEETAs at 31 December 2012

2012 2011(As

restated)

Note £ £Fixed AssetsTangible assets 9 395,552 403,082Investments 10 3,379,990 3,229,263

3,775,542 3,632,345

Current AssetsDebtors 12 1,195Other debtors 108,165 103,965Prepayments and accrued income 200,550 139,615Cash on deposit and on hand 4,394,735 4,960,024

4,703,462 5,204,799Current liabilities: amounts falling due within one year 11 (65,169) (68,800)

Net Current Assets 4,638,293 5,135,999

Net Assets 8,413,835 8,768,344

Reserves:

Unrestricted Reserves 13 8,215,037 8,221,235Restricted Reserves 13 198,798 547,109

8,413,835 8,768,344

Approved and authorised for issue by the Board of Directors on 4 June 2013 and signed onits behalf by

Rt Rev Peter Moran (President)Director

The accompanying notes form part of the financial statements.

Company registration number: SC197327

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CASH FLOW STATEMENTFOR THE YEAR ENDED 31 DECEMBER 2012

2012 2011(As

restated)

Notes £ £Net cash outflow from operating activities 1 (546,534) (769,363)Return on Investments and servicing of finance 2 168,676 162,869Capital expenditure 2 (37,203) (11,655)Management of liquid resources 2 (150,228) 17,705

Decrease in cash in the period (565,289) (600,444)

Net cash resources at 1 January 4,960,024 5,560,468

Net cash resources at 31 December 4,394,735 4,960,024

1. Reconciliation of net movement in funds to net cash outflow from operatingactivities

2012 2011£ £

Net movement in funds (354,509) (645,631)Depreciation charges 34,193 26,775Loss on disposal of fixed asset 10,540 720Gain on investment assets (499) (62,722)Investment income (168,676) (162,869)Increase/(decrease) in debtors (63,952) 70,023Decrease/(increase) in creditors (3,631) 4,341

Net cash outflow (546,534) (769,363)

2. Analysis of cash flows for headings netted in the cash flow statement

2012 2011£ £

Returns on investments and servicing of financeInterest received 168,676 162,869

Capital expenditurePurchase of tangible fixed assets (37,203) (15,155)Proceeds on disposal of fixed assets - 3,500

Net cash outflow (37,203) (11,655)

Management of liquid resourcesPurchase of investments (1,019,374) (925,494)

Proceeds on disposal of investments 746,663 1,107,490Decrease/(increase) in cash held with broker 142,550 (145,199)Management fees (20,067) (19,092)

(150,228) 17,705

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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2012

1. Accounting policies

Basis of preparation

The financial statements have been prepared under the historic cost convention,(which ignores the effect of inflation or revaluation (except for investments) and dealswith original costs to SCIAF only), and in accordance with the Companies Act 2006and the Statement of Recommended Practice for Charities 2005 and Charities Accounts (Scotland) Regulations 2006 (as amended). The accounting policies haveremained unchanged from the previous year apart from the policy on grants payableas described below.

Prior year adjustment

There has been a change in accounting policy in respect of grants payable that has

resulted in a prior year adjustment which has had the effect of decreasing creditors atthe 31 December 2010 and 31 December 2011 by £306,462 and £303,127respectively. For many years SCIAF recognised the commitment in respect of thenext tranche of a multiple year grant, charging the statement of financial activity withthat commitment and showing the sum as a creditor. In the year to 31 December 2012, the directors decided it would be more appropriate to amend the policy toreflect that although the grant agreements have been approved in principle for multiple years with partner organisations, subsequent year’s payments are subject tosatisfactory progress. Consequently the liability should not be recognised untilevidence of this progress has been demonstrated. If this change in accounting policyhad not been implemented a further £245,906 would have been charged to thestatement of financial activity for the year ended 31 December 2012 with thatcommitment and showing the sum as a creditor as at 31 December 2012.

The effect of the adjustment on prior years is as follows:

Reserves£

As previously reported at 31 December 2010 9,107,513Restatement of creditor at 31 December

2010 306,462

As restated at 31 December 2010 9,413,975Deficit for the year ended 31 December 2010

as restated (645,631)

As at 31 December 2011 8,768,344

Deficit for the year ended 31 December 2011 (354,509) At 31 December 2012 8,413,835

Going concern

The financial statements have been prepared on a going concern basis. SCIAF hasa strong balance sheet with significant general reserves which will help SCIAF tocontinue to support its work in the longer term.

Fund structure

Unrestricted funds are available for use at the discretion of the directors infurtherance of the general objectives of the charity. Unrestricted funds includedesignated funds where the directors, at their discretion, have set aside resources for a specific purpose.

14




Restricted funds are funds which are to be used in accordance with specificrestrictions imposed by the donor or through the terms of an appeal.

Incoming resources

All incoming resources are recognised once the charity has entitlement to the incomeand the amount can be quantified with reasonable accuracy. The following specificpolicies are applied to particular categories of income:

Voluntary income and donations are included in the accounts as income when theyare receivable in accordance with the Statement of Recommended Practice for Charities 2005.

Legacies are included when the charity is advised by the personal representative of an estate that payment will be made and when the amount involved can bequantified.

Grant income from institutional funders is included in the accounts in the year in

which SCIAF is notified by the donor that it is satisfied all conditions have been met.

Sale of goods and resources:SCIAF sells Christmas cards on a sale or return basis with Traidcraft and provideseducational material on request for schools.

Grant expenditure

Expenditure on grants is included when the recipients have met SCIAF’s conditionsfor payment where grant agreements have been approved in principle for multipleyears with partner organisations, subsequent years’ payments are subject toevidence of satisfactory progress. Consequently the liability is not recognised untilevidence of this progress has been demonstrated.

Resources expended

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditureincludes any VAT, which cannot be fully recovered.

Expenditure incurred, which relates directly to any one cost category is allocateddirectly to that category. Expenditure, common to more than one cost category, isapportioned on a reasonable and consistent basis to the categories involved. Allocation to the cost categories is proportional to the number of full time equivalentstaff involved in each section. No apportionment applies to the costs of governance.

Costs of charitable activities compromise expenditure incurred in the fulfilment of

SCIAF’s main objectives.

Fundraising and advertising expenditure comprise costs incurred in encouragingpeople and organisations to contribute financially to the charity’s work and includessome media promotional costs.

Governance costs include those incurred in the governance of the charity and itsassets, are primarily associated with constitutional and statutory requirements andinclude its audit fees and costs linked to the strategic management of the charity.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks

of ownership remain with the lessor are charged against profits on a straight linebasis over the period of the lease.

15




Tangible fixed assets

Fixed assets (excluding investments) are stated at cost less accumulateddepreciation. The costs of minor additions or those costing below £500 are notcapitalised. Depreciation is provided at the following rates to write off assets over

their estimated useful life.

Heritable property 2% on reducing balanceFixtures and fittings 25% on reducing balanceComputer equipment 50% on reducing balanceMotor vehicles 25% on reducing balance

Investments

Investments have been included in the Balance Sheet at market value. The annualmovement in the market value is treated as an unrealised gain or loss and isincorporated within the General Unrestricted Fund.

Income from investments is credited to the Statement of Financial Activities in theyear in which it is due to be received.

Pensions

SCIAF offers employees the opportunity to join a Group Personal Pension Scheme towhich SCIAF also contributes. Contributions are charged to the Statement of Financial Activities in the year payable. The company has no liability for any schemeshortfall, neither would it benefit from any surplus.

Foreign currency

Transactions in foreign currencies are translated at the rate of exchange ruling on the

date of the transaction. Monetary assets and liabilities denominated in foreigncurrencies at the balance sheet date are translated at the rate of exchange on thatdate.

16




2. Incoming resources from charitable activities

2012 2011£ £

Restricted:Department for International DevelopmentEthiopia 16,215 214,022Sudan 80,172 103,438

European CommissionSudan 55,562 -Cambodia 25,675 70,481Ethiopia - 186,616 Africa – Great Lakes 295,134 338,692Thailand 188,730 -

Scottish Government

Kenya - 95,238Zambia 393,777 192,878Malawi 98,540 -India 150,829 102,853

States of GuernseyD R Congo - 35,420

1,304,634 1,339,638

Unrestricted 148,835 214,588

1,453,469 1,554,226

3. Fundraising and advertising costs

DirectCosts

DirectSuppor

t

IndirectSuppor

t

Total2012

Total2011

£ £ £ £ £Lenten campaign & real gifts 227,057 - 227,057 278,177Raffle - - - - 32,965Legacies 18,998 - - 18,998 17,633Salaries and other staff costs - 166,908 71,229 238,137 222,978Travel - 6,791 609 7,400 3,599 Advertising, publicity and donor recruitment 26,279 - - 26,279 51,070 Administration - - 31,830 31,830 30,784Rates, utilities, telephone andcleaning - - 10,586 10,586 10,350Professional fees - - 691 691 4,601IT costs - 8,041 7,264 15,305 33,628Unrealised (profit)/loss onforeign exchange - - (466) (466) 5,002Bank charges - - 6,068 6,068 12,573Volunteer costs - 703 88 791 717

272,334 182,443 127,899 582,676 704,077

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4. Grant expenditure

Grant expenditure represents grants paid or approved to partner organisations

responding to a wide range of humanitarian needs in the communities in which theywork. The major recipients of grants (those over £50,000) were:-

UnrestrictedFunds

RestrictedFunds

Total2012

Total (As

restated)

2011£ £ £ £

AFRICAEthiopiaJoint office with CAFOD

and Trocaire – for

distribution topartners

- - - 188,021

Relief Society of Tigray(REST)

- - - 152,839

ASE & ECC - SADCO - - - 116,356

Horn of AfricaJoint office with CAFOD

and Trocaire – for distribution topartners

- 341,000 341,000 -

Trocaire – for distributionto partners - - - 197,619

CAFOD – for distribution topartners 7,500 57,500 65,000 300,000Caritas Kenya - - - 50,000Diocese of Lodwar - - - 50,000Caritas Internationalis - - - 100,000

UgandaRadio Wa 54,704 - 54,704 -Comboni Samaritans 70,000 - 70,000 50,000St. Monica’s - 8,045 8,045 58,236

MalawiMangochi Cadecom 57,202 28,047 85,249 -

Trocaire – for distributionto partners 10,000 101,140 111,140 -

RwandaCommission EpiscopaleJustice et Paix 19,135 57,405 76,540 89,906

Democratic Republic of Congo

Codilusi 77,818 102,715 180,533 165,058Commission DiocesaineJustice et Paiz/BakavuDiocese 57,308 48,626 105,934 93,425

AJV 48,127 32,490 80,617 62,782Commission Diocesaine

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Justice et Paiz/UviraDiocese

6,083 69,197 75,280 91,264

SudanSudan Evangelical Mission 85,600 84,717 170,317 124,441

MRDA - - - 57,704CAFOD – for distribution topartners - - - 50,000Trocaire – for distributionto partners 48,771 - 48,771 50,000

Burundi Agakura 54,395 70,328 124,723 68,379

ZambiaDiocese of Livingston 7,828 49,354 57,182 51,016Caritas Mongu 4,027 50,973 55,000 -Jesuit Centre for

Theological Reflection 27,261 40,790 68,051 -Kasisi 12,913 198,010 210,923 110,493

SenegalCaritas Senegal 6,010 43,990 50,000 -

NigeriaCaritas Nigeria 49,641 359 50,000 -

Multi-CountryJesuit Refugee Service –for projects in Burundi,DRC, Sudan, Tanzania

and Zambia 2,596 62,404 65,000 100,000

ASIABurmaJesuit Refugee ServiceThailand - - - 173,801

CambodiaDPA 40 49,960 50,000 87,772Caritas Cambodia 204 53,129 53,333 89,486

IndiaCaritas India 14,100 166,804 180,904 221,952

PakistanTrocaire - - - 358,493

LATIN AMERICANicaraguaFedicamp - - - 62,041

HaitiInstitute of Technology & Animation - 411,980 411,980 76,060CAP 69,418 - 69,418 91,542Caritas Haiti - - - 100,000

Caritas Fort Liberte - - - 56,691

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Other grants less than£50,000 paid in the year 752,906 254,252 1,007,158 924,407

Total Grant Expenditure 1,543,587 2,383,215 3,926,802 4,619,784

Represented by:International development

grants 1,516,324 2,383,215 3,899,539 4,619,784 Advocacy grants 27,263 - 27,263 -

1,543,587 2,383,215 3,926,802 4,619,784

5. Costs of charitable activities

Expenditure recorded in the Financial Statements includes both the direct costs of carrying out activities and the direct and indirect costs of supporting these activities.

Direct support costs include essential integral staff-related costs including

recruitment, training and travel. Indirect costs are the common or shared costs

of the organisation such as property running and maintenance costs, telephone,

IT, stationery, postage and printing. These are allocated between the various

expenditure categories in proportion to the number of full-time equivalent staff

involved in the activities of each section. The following provides a

breakdown of these costs:

DirectCosts

DirectSuppor

t

IndirectSuppor

t

Total2012

Total (Asrestated)2011

£ £ £ £ £Internationalprogrammes (5a) 3,899,539 419,627 284,447 4,603,613 5,667,847Information andeducation (5b) 33,005 162,087 98,719 293,811 248,259 Advocacy andcommunication (5c) 101,894 199,819 87,904 389,617 473,186Governance (5d) 21,404 - - 21,404 26,564

4,055,842 781,533 471,070 5,308,445 6,415,856

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a) International programmes

DirectCosts

DirectSuppor

t

IndirectSuppor

t

Total2012

Total (Asrestated)

2011

£ £ £ £ £Grant expenditure 3,899,539 31,619 - 3,931,158 4,679,797Juba office costs - 2,120 2,849 4,969 43,156Ethiopia joint office

costs - - 40,955 40,955 71,414Salaries and other staff costs - 329,946 122,476 452,422 574,343Travel - 25,356 15,724 41,080 48,217 Administration - 655 29,679 30,334 30,193Unrealised(gain)/loss onforeign exchange

(808) (808) 12,802

Rates, utilities,telephone andcleaning - - 21,913 21,913 33,532Professional fees - 29,931 29,631 59,562 158,458IT costs - - 22,028 22,028 15,935

3,899,539 419,627 284,447 4,603,613 5,667,847of which:

Unrestricted 1,516,324 419,127 262,356 2,197,807 2,209,547Restricted 2,383,215 500 22,091 2,405,806 3,458,300

3,899,539 419,627 284,447 4,603,613 5,667,847

Professional fees include consultancy costs for overseas consultants working oninternational programmes.

b) Information and Education - unrestricted

DirectCosts DirectSuppor t

IndirectSuppor t

Total2012 Total2011

£ £ £ £ £Individuals 2,559 - - 2,559 -Schools 18,315 - - 18,315 12,664Parishes 1,845 - - 1,845 84Salaries and other staff costs - 142,825 65,558 208,383 191,494Travel - 7,184 562 7,746 8,509 Administration - 2,792 14,260 17,052 10,970Unrealised (gain)/loss on foreignexchange

- - (431) (431) 4,257

Rates, utilities, telephone and

cleaning - - 11,683 11,683 11,067Professional fees - - 378 378 3,915IT and social media costs - 9,286 6,709 15,995 5,299

21




Education grant memberships 10,286 - - 10,286 -

33,005 162,087 98,719 293,811 248,259

c) Advocacy and communication - unrestricted

DirectCosts

DirectSuppor

t

IndirectSuppor

t

Total2012

Total2011

£ £ £ £ £

Grant expenditure 27,263 - - 27,263 -Campaigning and policy 29,908 - - 29,908 114,842Media 44,723 - - 44,723 43,771Salaries and other staff costs - 146,078 57,872 203,950 218,960Travel - 25,990 496 26,486 34,583 Administration - 61 12,584 12,645 15,709Unrealised (gain)/loss onforeign exchange - - (380) (380) 4,856Rates, utilities, telephone,cleaning and repairs - - 11,076 11,076 12,622Professional fees - - 333 333 828Membership fees - 27,690 - 27,690 19,325IT costs - - 5,923 5,923 7,690

101,894 199,819 87,904 389,617 473,186

d) Governance

DirectCosts

DirectSuppor

t

IndirectSuppor

t

Total2012

Total2011

£ £ £ £ £Costs of Board meetings andoverseas travel 354 - - 354 952Professional fees 7,487 - - 7,487 13,732 Auditor’s remuneration - audit 12,240 - - 12,240 11,880

Auditor’s remuneration - non audit 1,323 - 1,323 -21,404 - - 21,404 26,564

6. Net outgoing resources for the year

This is stated after charging:

2012 2011

£ £Depreciation 34,193 26,775 Auditors’ remuneration 13,563 11,880Unrealised (gain)/loss on foreign exchange (2,085) 26,917

22




7. Staff costs2012 2011

£ £Wages and salaries 887,143 993,537Social security costs 85,361 93,998Pension costs 50,606 43,060

1,023,110 1,130,595

The average number of employees during the year was as follows:2012 2011

No NoManagement 3 3Overseas project support 10 14Education and information 4 5

Advocacy and campaigning 4 4Cost of generating fund 8 7 Administration and finance 8 7

37 40

Full time equivalent 31 35

Salary numbers include 3 staff working in our Sudan office until February 2012 whenthe office closed.

No director received remuneration for their services. Expenses incurred by directorsrelating to visits and meetings amounted to £354 (2011: £952).

SCIAF operates a Group Personal Pension Scheme, the assets of which are heldseparately in an independently administered fund. The charity’s contribution isbetween 7.5 per cent and 10 per cent of salary with staff making contributionsbetween 2.5 per cent and 4 per cent of salary to the scheme. 22 staff are membersof the scheme (2011: 16 staff). Included in staff costs are contributions paid or payable by SCIAF to the fund which amounted to £50,606 in 2012 (2011: £43,060).

8. Taxation

SCIAF is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s252 of the Taxation of Chargeable Gains Act 1992 to the extent thatthese are applied to charitable objectives. No charges have arisen in the Charity.

23




9. Tangible fixed assetsHeritabl

eproperty

Fixtures& fittings

Computer equipment

Motor Vehicles

Total2012

Cost: £ £ £ £ £ At 1 January 2012 484,450 90,140 192,934 31,577 799,101 Additions - 321 36,882 - 37,203Disposals - - (18,038) (31,577) (49,615)

At 31 December 2012 484,450 90,461 211,778 - 786,689

Depreciation: At 1 January 2012 111,783 83,264 179,387 21,585 396,019Disposals - - (17,490) (21,585) (39,075)Charge for the year 7,454 1,799 24,940 - 34,193

At 31 December 2012 119,237 85,063 186,837 - 391,137

Net book value

At 31 December 2012 365,213 5,398 24,941 - 395,552

At 31 December 2011 372,667 6,876 13,547 9,992 403,082

10. Investments

2012 2011£ £

Valuation at 1 January 2,921,127 3,021,309 Acquisitions 1,019,374 925,494Disposals (930,282) (991,428)Market valuation movement in year 204,185 (34,248)

3,214,404 2,921,127

Cash deposits 165,586 308,136Valuation at 31 December 3,379,990 3,229,263

All of SCIAF’s investments are held for unrestricted charitable purposes and areincluded at market value. The closing valuation includes cash uninvested held withinthe portfolio of £165,586 (2011: £308,136).

Analysis of investments at market value 2012 2011£ £

Listed investmentsUnited Kingdom bonds 1,542,672 1,481,584United Kingdom equities 844,769 883,601Overseas equities and bonds 790,090 516,847

Property 36,873 39,0953,214,404 2,921,127

24




Cash deposits 165,586 308,136

3,379,990 3,229,263

Historic cost 2,970,690 2,947,417

11. Current liabilities: amounts falling due within one year

2012

(Asrestated)

2011£ £

Trade creditors 11,889 25,692 Accrued expenses 53,280 43,108

65,169 68,800

Creditors have been restated following a prior year adjustment as explained in note 1.

12. Analysis of net assets between funds

UnrestrictedFunds

Restrictedfunds

Total2012

£ £ £Tangible fixed assets 395,552 - 395,552Investments 3,379,990 - 3,379,990Net current assets 4,439,495 198,798 4,638,293

Total net assets 8,215,037 198,798 8,413,835

13. Movement in funds

Fund Name

At1 Jan (as

restated)2012

Incomingresources

Resources

expendedTransfer

Gains

&losses

At

31 Dec2012

£ £ £ £ £ £Unrestricted:DesignatedOperationalReserveFund 1,000,000 - - 252,603 - 1,252,603EmergencyResponseFund 500,000 - - - - 500,000Property

MaintenanceReserveFund 100,000 - - (100,000) - -IT ReserveFund 200,000 - - (200,000) - -InvestmentRevaluationReserve 263,278 - - - 204,185 467,463Overseas AidReserve 2,220,199 - - 65,356 - 2,285,555

4,283,477 - - 17,959 204,185 4,505,621

General 3,937,758 3,455,752 (3,505,382) (179,211) 499 3,709,416

Totalunrestricted 8,221,235 3,455,752 (3,505,382) (161,252) 204,684 8,215,037

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RestrictedDonations 962,851 247,389 (1,000,165) 21,552 - 231,627Real gifts 390,583 344,221 (350,489) - - 384,315Government& institutions (806,325) 1,304,633 (1,055,152) 139,700 - (417,144)

TotalRestricted 547,109 1,896,243 (2,405,806) 161,252 - 198,798

Total funds 8,768,344 5,351,995 (5,911,188) - 204,684 8,413,835

Funds brought forward have been restated following a prior year adjustment asexplained in note 1.

The Operational Reserve Fund is, in the opinion of the directors, required to ensurethat SCIAF is able to continue operations in the event of dramatic unforeseen events,or significant fluctuations in the income or expenditure of SCIAF from year to year.The Board keeps this under review on a regular basis.

The Emergency Response Fund has been established to provide funds to enableSCIAF to make an immediate funding response, in the event of a major catastropheor emergency. In the light of the number and scale of major disasters in recent years,this reserve has been retained at £500,000 to allow SCIAF to be able to respondquickly and efficiently to emergencies as part of our strategic plan.

The Property Maintenance Reserve Fund and IT Reserve Fund had been establishedto spread the cost of these significant areas of expenditure over an appropriatenumber of years. The Board has determined that these designated reserves bereleased and all future costs of essential repairs and improvements to SCIAF’sphysical assets will be paid from the general fund.

The Investment Revaluation Reserve represents the unrealised increase in the valueof the stocks and shares held within the Investment portfolio, at the year-end.

The Overseas Aid Reserve is a provision for those Overseas Aid and DevelopmentGrants for 2013, which have not yet been formally committed to partners, but for which funding will be spent on overseas aid by 31 st December 2013.

The General Fund represents unrestricted income carried forward. The Board of Directors have agreed that the unrestricted funds available, other than those utilisedfor the provision of fixed assets, should be used to meet planned developmentprojects and other costs, over the next five years on a rolling basis.

b) Restricted Reserves

Restricted Reserves represent funds held for projects or programmes specified by thedonors and not yet disbursed at 31 December 2012. Restricted Reserves aregenerated when the supporter or donor organisation stipulates the area of activity inwhich the income has to be spent (for example where funds are sent in, in responseto a particular emergency or for a particular project overseas).

As at 31 December 2012, balances held were for the following purposes:

2012 2011£ £

Africa programme (198,899) (20,963) Asia programme 203,255 (117,422)Latin America programme 22,357 481,045Other 172,085 204,449

198,798 547,109

26




SCIAF regularly pre-finances programme costs that will be covered by government

and other institutional programme grants, approving and paying out funds to localpartners, in advance of receiving funds from the donor. As a result negative balancesarise on particular restricted funds. These programme grants are in deficit by£417,144 at 31 December 2012 as detailed below:

2012 2011

£ £Programme grants in surplus - -Programme grants in deficit:Great Lakes programme (107,997) (125,025)DPA programme - (57,006)JRS Thailand programme (26,660) (262,187)JRS Yei programme - (73,515)

REST programme (21,349) (21,349)SEM programme (48,484) (44,364) ASE-ECC programme - (26,491)Kulima programme (171,188) (162,086)Caritas India programme (38,866) (34,302)Malawi Trocaire programme (2,600) -

(417,144) (806,325)

14. Company status

The company is limited by guarantee. The members undertake to contribute amaximum of £1 each to the company’s assets should it be wound up.

15. Operating lease agreements

At 31 December 2012 the company had aggregate annual commitments under noncancellable operating leases for computer equipment as set out below:

2012 2011£ £

Operating leases which expire:Within 1 year - -Within 2 to 5 years 12,425 12,425 After 5 years - -

12,425 12,425

16. Commitments

27




At the year end, forward commitments in respect of signed grant funding agreementswith overseas partner organisations amounted to £374,592 (2011: £32,763). Thesegrants are conditional on receipt of satisfactory reports, and are subject to SCIAFhaving the appropriate funds available at the time when the grants fall due for payment. Because of these conditions, the grants have not been treated as creditors.

17. Related party

SCIAF is an agency of the Bishops Conference of Scotland which has a controllinginterest in SCIAF. All of SCIAF’s Board members are members of the BishopsConference and the Bishops conference has the power to appoint or remove thecharity trustees of SCIAF. There are no financial transactions between the BishopsConference of Scotland and SCIAF in the year (2011: £Nil).

sciaf 2012 typesigned accounts

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