For the year ended 31 March 2018 - SOS Sahel International UK · STRUCTURE, GOVERNANCE AND...

ANNUAL REPORT AND ACCOUNTS

For the year ended 31 March 2018

Registered Charity Number 296311

Registered Company Limited by Guarantee Number 2100867 (England and Wales)

Report of Board of Directors

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SOS Sahel International UK - Company Limited by Guarantee Number 2100867 - Charity Registration Number 296311

CONTENTS

REPORTS

REPORT OF BOARD OF DIRECTORS ......................................................................................................... 3

BOARD OF DIRECTORS, MANAGEMENT AND ADVISORS ..................................................................... 3

STRUCTURE, GOVERNANCE AND MANAGEMENT ............................................................................... 4

LEGAL OBJECTIVES, STRATEGIC VISION & WAYS OF WORKING ........................................................... 5

ACHIEVEMENTS AGAINST STRATEGIC OBJECTIVES ............................................................................. 6

FINANCIAL REVIEW ............................................................................................................................ 10

INDEPENDENT AUDITORS REPORT ....................................................................................................... 13

ACCOUNTS

STATUTORY ACCOUNTS ........................................................................................................................ 16

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST MARCH 2018........................... 16

STATEMENT OF CASHFLOW FOR THE YEAR ENDED 31ST MARCH 2018 ............................................. 17

BALANCE SHEET AS AT 31 MARCH 2018 ........................................................................................... 18

ACCOUNTING CONVENTIONS AS AT 31 MARCH 2018 ...................................................................... 19

NOTES TO THE ACCOUNTS AS AT 31 MARCH 2018 ........................................................................... 21


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REPORT OF BOARD OF DIRECTORS

BOARD OF DIRECTORS, MANAGEMENT AND ADVISORS

BOARD OF DIRECTORS

Ian Barry (Chair)

Karen Twining Fooks (Vice-Chair)

Sheila McKenzie (Treasurer)

Jake Bharier (Company Secretary)

Sara Pantuliano

Adam Cooke

Maggie Buchanan-Smith (resigned 12th May 2017)

Hannah Bryce (resigned 16th January 2018)

Elise Dufief (appointed 17th October 2017)

Brendan Bromwich (appointed 17th October 2017)

Ian Cliff (appointed 16th January 2018)

HONORARY PRESIDENT

Lady Bingham of Cornhill

SENIOR MANAGEMENT

Linda Horgan (Director)

PRINCIPAL OFFICE AND REGISTERED ADDRESS

SOS Sahel International UK, The Old Music Hall, 106-108 Cowley Road, Oxford, OX4 1JE

AUDITORS

Critchleys Audit LLP, Beaver House, 23-38 Hythe Bridge Street, Oxford, OX1 2EP

BANKERS

The Royal Bank of Scotland, 36 St Andrew Square, Edinburgh, EH2 2YB


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STRUCTURE, GOVERNANCE AND MANAGEMENT

SOS Sahel International UK is a registered charity (no. 296311) incorporated under the Companies Act 2006

(registered no. 2100867). Its governing document is a Memorandum and Articles of Association originally

approved in December 1987 and last amended in January 2015.

The Board of Directors, who are also the charity’s Trustees, present the statutory report with the audited accounts

of SOS Sahel International UK for the year ended 31 March 2018.

THE BOARD OF DIRECTORS

All Directors are appointed in accordance with the Articles of Association.

The Board of Directors can have between five and fifteen members. There are currently nine directors, appointed

by the existing Board of Directors themselves. They may exercise all the powers of the charity, subject to the

Memorandum and Articles of Association and the Charities Act 2011. The Board of Directors elects a Chair from

amongst themselves.

The Board reviews its membership annually, to ensure that, as a whole, the Board has the skills and experience

to determine the policies of SOS Sahel International UK and to monitor the implementation of these policies.

Vacancies are advertised, and candidates undergo formal interviews. Procedures are documented for the

induction and training of new Board members, relating to their duties and obligations as directors and trustees.

Ongoing training for board members is available as required.

The number of Directors in office during the year is set out on page 3. No member of the Board of Directors had

any beneficial interest in any contract with SOS Sahel International UK during the year.

The Board of Directors holds the ultimate responsibility for all legal and financial matters transacted in the name

of the charity. The Trustees delegate much of this to the employees.

The Board approves a budget for income and expenditure each year. This provides a framework for the delegation

to employees of the power to act on financial matters.

The organisation has three full time employees. All employees are based at its office in Oxford, UK. The Director

of the organisation has the overall managerial and operational oversight of the charity. The Director reports to

the Chair of the Board.

The Board sets the salary for its staff. Annually, the Board reviews the salary scales taking into account prevailing

salary levels in the sector and reports on inflation and wages from the Office for National Statistics.


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LEGAL OBJECTIVES, STRATEGIC VISION & WAYS OF WORKING

OBJECTS

The objects for which the charity was established are ‘the relief of poverty, the advancement of education and

the promotion of health and hygiene through activities focusing on natural resource management … within the

countries forming the continent of Africa … particularly but not exclusively dryland areas, for the benefit of the

peoples of those countries.’

OUR VISION

Our goal is to see… “thriving sustainable communities across the Sahelian drylands that have control over the

decisions that affect their lives and the resources they need for a secure and fulfilling life.”

OUR MISSION

We work with our partners to seek long term, sustainable solutions to the poverty experienced by millions of

people across the drylands of the Sahel region of Africa.

OUR ROOTS

SOS Sahel International UK was established in the mid-1980s as a response to the devastating drought and famine

across the Sahel. Whilst we began as a response to an emergency situation, we have always had our roots in long-

term development, dedicated to relieving poverty of marginalised groups who live in the drylands of the Sahel.

Historically, SOS Sahel UK was an umbrella organisation with country programmes across select countries in the

Sahel; our first and largest country programme was in Sudan, but we also worked in Ethiopia, Kenya, Niger and

Mali. However, with a dedication to grassroots, African-led development we began a long and difficult process of

organisational transformation, supporting our partners to become independent nationally registered NGOs. SOS

Sahel UK no longer implements projects but works with and for our independent national partners who work with

some of the poorest and most vulnerable people in the world.

WHERE & HOW WE WORK

The Sahel – the band of drylands spanning west to east across the African continent on the southern border of

the Sahara Desert – contains many of the world’s poorest and most marginalised people, who face the realities

of not only living in poverty but in extremely harsh environmental conditions. The region has experienced

recurrent drought every few years since the 1980s, which has devastated harvests, economies and traditional

farming ecosystems. Coping strategies for many livelihood groups are increasingly under stress, and a

convergence of climate, conflict and economic shocks has caused the number of food insecure people in the

region at crisis and emergency levels to increase. It is in this context that our partners work in Sudan, South Sudan

and Ethiopia.

The political, social and economic environment of each of these countries is by no means stable. Each comes with

its own unique challenges - protracted conflicts, political unrest, spiralling cost of living, involuntary migration and

displacements, and in the case of South Sudan an increasing risk of famine. Climate change and environmental

fluctuations, such as El Nino/ La Nina, compound the challenges in these countries, and make it harder for

communities to continue living through their traditional means.

We work with independent national organisations as we believe that locally generated knowledge and solutions

are key to solving local development challenges. Our partners are skilled, committed, local organisations that

share our values and are rooted in our history. We support them to be strong, effective, sustainable & inclusive

organisations that deliver effective programmes that target vulnerable communities and improve lives. Our

current partners are: SOS Sahel Sudan, SOS Sahel Ethiopia, and SOS Sahel South Sudan.


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In view of this, the Board of Directors is more than satisfied that our work is for public benefit, consistent with the

Charity Commission guidance on public benefit.

THEORY OF CHANGE

We will support civil society organisations to improve their performance and strengthen their organisations to

accelerate impact…

by mobilising funding and other resources, supporting the generation of learning and evidence, and

providing capacity building support…

to help sustain strong, effective, sustainable and inclusive partner organisations, which have stronger

foundations from which to grow…

that will deliver effective programmes that target vulnerable communities in order for them to become

strengthened sustainable and resilient communities.

ACHIEVEMENTS AGAINST STRATEGIC OBJECTIVES

SOS Sahel International UK’s current strategy runs from March 2017 to March 2020, covering three financial years.

Our strategic objectives and progress against them in this, our first year of the current strategy, are as follows:

STRATEGIC OBJECTIVE ONE: EFFECTIVE PARTNERSHIPS

We will work with our partners to develop both their and our robust governance, financial, institutional,

environmental and technical capacity and systems. We will also collaborate with networks and preferred strategic

partners in our countries of operation, in the UK, and globally, in order to achieve greater programme impact and

more stable funding and other resources.

Progress

In order to increase the capacity of our partners to access grants from institutional donors, this year SOS Sahel UK

have supported our partners SOS Sahel Sudan and SOS Sahel Ethiopia with funding applications including concept

notes, full proposals and expressions of interest for various donors and funding rounds. We have supported eight

different applications, five for SOS Sahel Sudan and three for SOS Sahel Ethiopia.

We have also been building the capacity of our partner SOS Sahel South Sudan to look for funding opportunities.

The Director, Linda Horgan, visited Juba and worked the Director of SOS Sahel South Sudan, accompanying him

to visit potential donors and investigating funding opportunities. The Directors of SOS Sahel Sudan and SOS Sahel

Ethiopia also joined Linda to support SOS Sahel South Sudan.

In order to strengthen the financial capacity of our partner SOS Sahel Sudan, SOS Sahel UK’s Finance Manager,

Morris Mpokosa, has visited the organisation both in Khartoum and at project level in the Red Sea State. This

financial capacity building has included supporting the team to develop a strengthened organisational financial

system, which he will continue to support throughout the strategic period.

In order to support the organisational leadership capacity of our partners, the Director of SOS Sahel UK has kept

in regular contact with the Directors of our Sudanese, Ethiopian and South Sudanese partners remotely

throughout the year, with approximately monthly one on one phone calls. In March 2018 the SOS Sahel Directors

from each organisation attended a network meeting in Juba, South Sudan. This invaluable contact allows each

organisation to share experiences, knowledge and grievances, strengthening our partnerships and encouraging

mutual learning.


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In order to create and share links with like-minded strategic partners, SOS Sahel International UK staff have

attended BOND meetings (conferences and group meetings), and have had informal conversations with other

organisations, such as Tree Aid and IDE. SOS Sahel UK have paid the membership for CELEP, the Coalition for

European Lobbies for Eastern Africa Pastoralism, on behalf of ourselves and our partners. This allowed Salih

Eldouma, the Director of SOS Sahel Sudan, to attend the CELEP conference in Brussels, which was a very useful

way to gather information, share experiences and network.

STRATEGIC OBJECTIVES TWO: INCREASED SCALE AND INCOME

We want to continue to grow our programme of work delivering tangible positive changes to the lives of families

and communities in rural Sahel. To achieve this, SOS Sahel UK will need to target key areas for income growth,

both for our partners and ourselves.

We will assist with supporting efforts to secure funding for all of our core partners in our current 3 countries of

operation (Sudan, South Sudan and Ethiopia) as well as looking at the potential to re-engage with other

organisations in order to increase impact.

Progress

Our main task is to raise funds for our partners’ sustainability. As described earlier, we have engaged in 8 funding

applications at different stages throughout the year. During this period, we have continued to fundraise for

matched funding for an ongoing project implemented by SOS Sahel Ethiopia (Resilient Economies and Livelihoods

Project), and were successful in raising £16,000 during the year for this project from UK Trusts and Foundations.

We have also been successful in securing matched funding for a Sand Dam project in Sudan, which was part

funded by a local Oxford Church (St Mary’s, Iffley), and by UK Trusts and Foundations., We have, too, linked

partners to all relevant in-country funding opportunities as they arise.

During the network meeting in Juba, SOS Sahel International UK’s Director met with various stakeholders and

donors to look for opportunities for SOS Sahel South Sudan and promote its work. Alongside the Directors of SOS

Sahel Sudan and SOS Sahel Ethiopia, she met the SOS Sahel South Sudan board and discussed the future of the

organisation and how it could be supported by the network.

In order to support our own sustainability, we have continued to look for funding opportunities. We have also

continued to raise funds from trusts and individual donors in the UK, in order to cover our overhead costs.

Photos: Resilient Economies and Livelihoods Project- communities building conservation structures and receiving plants and other inputs

STRATEGIC OBJECTIVE THREE: INNOVATION, LEARNING AND IMPROVEMENT

We need to build the evidence base for our partners’ work, in terms of what has been learnt and the difference it

is making. This means making greater use of data to demonstrate the value of our insights and experience and

ensuring that the results of our partners’ work are widely communicated and shared. We will support our partners

to invest in monitoring and evaluation and research so that they can demonstrate what works and potential


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pitfalls. We want to deliver greater benefits for our partners’ beneficiaries and at the same time become even more

effective. We need to invest in the capacity of our partners.

Progress

In order to facilitate the documentation of learning, we have maintained relationships with research

organisations, such as the University of Liverpool. SOS Sahel International UK submitted a joint proposal with SOS

Sahel Ethiopia and Professor Janet Hooke at the University of Liverpool, for the Darwin initiative. The Director has

attended conferences and seminars in the UK, sharing information relevant to our partners in order to enhance

learning, involvement and share opportunities.

SOS Sahel UK also has a re-designed website, so that it is better able to reflect its own and its partners’ work

effectively. During the Director’s visits to Sudan, she went to South Kordofan to meet communities benefitting

from sand dam projects. The evidence of the impact of sand dams from this visit, along with descriptions of our

other projects, has been documented on our new website (https://sahel.org.uk/partners/sos-sahel-

sudan/eltamraya-story), social media and newsletters.

This year, we also welcomed a student from Sudan who received a Marshal Papworth scholarship for an

agricultural short course in Moulton College, UK (April- June 2017). The student, Tahani Alphaki, works at the

Ministry for Agriculture in Port Sudan and engages with SOS Sahel’s agricultural smallholder’s project as part of

her work. She found the course extremely rewarding, and has already began training her co-workers and farmers

from the local community in Port Sudan what she has learned. Regrettably, a number of other scholarship

recipients were not granted visas from the UK Government and so were unable to attend the course

Photos: Tahani Alphaki with her certificate (left) and during a garlic planting training session in the Red Sea State (right).

CURRENT PROGRAMMES

PROGRAMME Agricultural and Fishery Production by Smallholders in Red Sea State

IMPLEMENTING PARTNER SOS Sahel Sudan DONOR The European Union

SOS SAHEL UK’S ROLE Lead Partner, Grant Manager DESCRIPTION This five-year project is in its final stages, with a no cost extension ending in

November 2018. The project has supported farmers and fishermen with technical packages, which combine training with new inputs and technologies. The farmers and fishermen are linked to private sector suppliers to purchase the new inputs (partially funded by the project through a voucher system), and are then given practical training and support to increase their productivity and bargaining power, with support also given to producer organisations. The project has so far supported 4,135 beneficiaries out of a total target of 4,500.

https://sahel.org.uk/partners/sos-sahel-sudan/eltamraya-story

https://sahel.org.uk/partners/sos-sahel-sudan/eltamraya-story


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PROGRAMME Sand Dam Programme

IMPLEMENTING PARTNER SOS Sahel Sudan DONOR Kadugli sand dams: St Mary’s Church Iffley, Beatrice Laing Trust, SMB Trust , Open

Gate Trust, Roger Vere Foundation, N Smith Charitable Trust, AS Charitable Trust, Fulmer Charitable Trust (2016-2017); St Mary’s Church (Oxford), Westcroft Trust, Eleanor Rathbone Trust, Fulmer Charitable Trust, Open Gate Trust, Blandford Lake Trust, N Smith Charitable Trust (2017-2018) Rashad sand dam: Guernsey Overseas Aid Commission North Darfur sand dams: Guernsey Overseas Aid Commission

SOS SAHEL UK’S ROLE Lead Partner, Grant Manager DESCRIPTION Since 2010, we have been supporting SOS Sahel Sudan to build sand dams in rural

locations across Sudan but primarily in South Kordofan State. This year, we completed three dams (started in the previous year), one in South Kordofan State and two in North Darfur. We also commenced the construction of two dams, both in South Kordofan State. Sand dams provide reliable, clean water year round for drought prone rural villages. They are simple, low-cost and low-maintenance water harvesting structures. Constructed across a seasonal sandy riverbed, they cause sand to accumulate behind the dam during the rainy season when it would usually be washed away. The sand stores rain water, raising the water table and improving the fertility of its surrounding environment. The beauty of sand dams is that they conserve water in a way that encourages the long-term sustainability of ecosystems and water supplies.

PROGRAMME Resilient Economy and Livelihood Project (RESET phase 2)

IMPLEMENTING PARTNER SOS Sahel Ethiopia (in a consortium of 5 NGOs) DONOR Primary funder 90% (direct to the consortium): European Union

Matched funding raised (through SOS Sahel UK): Bryan Guinness Trust, Northwick Trust, Paget Trust, Martin Wills Wildlife Maintenance Trust

SOS SAHEL UK’S ROLE Raising matched funds, Grant manager for those funds DESCRIPTION SOS Sahel Ethiopia is working in Southern Ethiopia with some of the most

vulnerable communities in the region in order to help them conserve and restore their natural environment. In four districts of Wolayta Zone, Southern Ethiopia, SOS Sahel Ethiopia is working as part of a consortium on the three-year Resilient Economy and Livelihoods Project. This area of the country is extremely vulnerable to the effects of climate change and recurrent drought, which has exacerbated food insecurity. SOS Sahel Ethiopia’s role in the project is to build the resilience of communities by helping them to restore and conserve their natural environment, whilst promoting measures that increase the production of sustainable crop and livestock systems. They are also helping to diversify livelihood opportunities outside of agriculture through investment in off-farm and non-farm income generating opportunities, in order to ease the pressure on land, improve incomes and reduce the vulnerability of the target population. The project is 90% funded by the European Union – directly through the consortium - however SOS Sahel UK are raising matched funds on behalf of SOS Sahel Ethiopia.


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FINANCIAL REVIEW

REVIEW OF RESULTS

SOS Sahel International UK had an income of £936,986 for the year ending 31 March 2018 (2017: £2,095,050).

The organisation’s principal funding sources (as detailed in note 1 on page 21) included governmental

organisations, other grant-making bodies, charitable organisations, and individuals. The decrease in income for

the year was related to pre-financing receipts for continuing projects that had been received during the previous

year.

Total expenditure was £943,841 for the year ended 31 March 2018 (2017: £2,162,553). The decrease in the

expenditure is due to one project in Sudan ending in 2017. The relative proportion of spending on “overheads”

has increased compared to the previous year.

The cost of generating funds was equivalent to 2% of total income for the year. Governance costs were equivalent

to 1% of total income for the year. The governance costs are now regarded as part of support costs. Thus, 97% of

income was available for spending on charitable activities.

There was an overall deficit of £6,855 for the year (2017: deficit £67,503). For unrestricted funds, there was a

deficit of £51,531 for the year (2017: surplus of £31,822). As a result of the deficit, the unrestricted reserves

decreased during the year ended 31 March 2018 to £254,013 (2016: £305,544). A large part of the decrease was

due to an online fraud of £28,287 that occurred during the year. We are still seeking to recover this money

The results for the year are shown in the statement of financial activities on page 16 and the cash flow statement

for the year at page 17. The financial position at the end of the year is shown in the balance sheet on page 18.

RESERVES LEVEL AND RESERVES POLICY

The Board of Directors of SOS Sahel UK maintains unrestricted reserves sufficient to meet the organisation’s

working capital requirements and to meet any temporary shortfall in funds arising from unforeseen exposure to

foreign exchange losses and other unforeseen costs, so as to enable SOS Sahel International UK to continue to

meet its charitable objectives. The organisation’s working capital requirements are considered to be the

equivalent of three months of unrestricted expenditure plus the equivalent of an additional month to cover any

temporary shortfall.

The Board of Directors reviews this reserves policy and the level of unrestricted reserves required annually as part

of the budget-setting process.

Restricted reserve funds of £66,286 (2017: £21,610) represent unspent funds received from donors who have

specified certain conditions for their use. These funds are fully covered by matched assets (see note 15). The

Board of Directors anticipates that these funds will be expended on their related projects.

The General fund has no restrictions on its use, unlike restricted funds, which must be used for specified purposes.

Within this, designated funds have been set aside by the Board of Directors for specific areas of charitable work.

This year the Board of Directors reviewed the designated funds and agreed to maintain s them at the level of last

year. The designated funds are a cash flow contingency of £50,000, and a contingency for foreign exchange

difference of £100,000.

The undesignated general fund was £104,013 at 31 March 2018 (2017: £155,544). Total unrestricted funds

(general and designated) were £254,013 at 31 March 2018 (2017: £305,544).

The Board of Directors is satisfied that there are sufficient reserves held at the year-end to avoid an unacceptable

level of disruption to the organisation in the event of a downturn in future income. For this reason, the Board of

Directors continues to adopt the going concern basis in preparing the accounts.


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The funding environment for the work of SOS Sahel International UK and its African partners is currently in a state

of flux and uncertainty, in particular as a consequence of Brexit. The undesignated general fund of £104,012 gives

us financial security for approximately 2 years which gives us time and flexibility to work on securing further

funding for our partners and for our own sustainability.

ARRANGEMENTS FOR SETTING THE PAY FOR KEY MANAGEMENT PERSONNEL

The Director of the charity was recruited by the Board of Directors and reports to the Chair of the Board. The

Board approves the pay and remuneration packages of the Director and other staff based on recommendations

of its human resources subcommittee. The HR subcommittee reviews salaries and benefits annually, using data

on prevailing salary levels in the sector and published statistics on annual changes of wages and prices.

RISK MANAGEMENT

The Board of Directors has reviewed the major risks to which the charity is exposed, in particular those related to

the operations, finances, reputation and business of SOS Sahel International UK, and systems have been

established to manage those risks. A detailed risk register is approved by the Board of Directors and reviewed

each year: this includes assessments of the likelihood and impact of major risks in all areas of the charity’s

operations. Risks are monitored and reported to the Board of Directors, and their management is reviewed at

quarterly meetings of the Board of Directors.

In the current year, the Directors identified 3 major risks affecting the organisation and agreed specific measures

of addressing them.

Description of risk Measures taken to address the risk

Over-dependence on EC funded projects in Sudan -

approximately 95% of project portfolio.

The organisation will aim at diversifying to other

donors i.e. DFID and other regional donors

The decrease in restricted income due to major

projects coming to an end without being replaced

with new projects.

The Trustees and SOS Sahel International UK team

have taken measures to source new high impact

projects by recruiting a Director and developing a new

three year strategy.

Telephone and internet fraud The Trustees have undertaken new control steps to

tighten controls on our banking and online payments

ONLINE FRAUD INCIDENT

Recently charities in the UK have been targeted by fraudsters and scammers resulting in the loss of huge sums of

money. We were also victims of fraud which resulted in the organisation suffering a loss of £28,287 of its

unrestricted funds. To date all attempts to recover the funds have not been successful. The incident was reported

to the relevant authorities: the police, the Charity Commission and the auditors. The trustees have instituted new

control measures to reduce the risk of fraud in future.

STATEMENT OF DIRECTORS RESPONSIBILITY

The directors are responsible for preparing the annual report and accounts in accordance with applicable law and

regulations.

Company law requires the directors to prepare accounts for each financial year. Under that law, the directors

have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards and applicable law).


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Under company law the directors must not approve the accounts unless they are satisfied that they give a true

and fair view of the state of affairs of the charity and of the incoming resources and application of resources of

the charity for that period. In preparing these accounts, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity

will continue in operation.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and

enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of

fraud and other irregularities.

At the time the financial statements are approved, the directors confirm:

a) that there is no relevant audit information of which the auditors are unaware, and

b) that they have taken all the steps they ought to have taken to make themselves aware of any relevant

audit information and to establish that the auditors are aware of that information.

The report has been prepared in accordance with FRS 102, the Charities SORP (FRS 102) and the Small Companies

Regime under Section 419(2) of the Companies Act 2006

Signed on behalf of the Board of Directors:

Ian Barry

Approved by the board on: 13th September 2018

Independent Auditors Report

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INDEPENDENT AUDITORS REPORT

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOS SAHEL INTERNATIONAL

UK

OPINION

We have audited the accounts of SOS Sahel International UK (the “Charity”) for the year ended 31 March 2018

which comprise the Statement of Financial Activities, the Statement of Cash Flows, the Balance Sheet and notes

to the accounts, including a summary of significant accounting policies. The financial reporting framework that

has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including

Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland

(United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

give a true and fair view of the state of the Charity’s affairs as at 31 March 2018 and of its income and

expenditure for the year then ended;

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

Practice;

have been prepared in accordance with the requirements of the Companies Act 2006.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable

law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit

of the accounts section of our report. We are independent of the Charity in accordance with the ethical

requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and

we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the

audit evidence we have obtained 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) require us to

report to you where:

the trustees’ use of the going concern basis of accounting in the preparation of the accounts is not

appropriate; or

the trustees have not disclosed in the accounts any identified material uncertainties that may cast

significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting

for a period of at least twelve months from the date when the accounts are authorised for issue.


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OTHER INFORMATION

The trustees are responsible for the other information. The other information comprises the information included

in the annual report other than the accounts and our auditor’s report thereon. Our opinion on the accounts does

not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not

express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the accounts 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 to determine whether there is a material misstatement in the

accounts or a material misstatement of the other information. If, based on the work we have performed, we

conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the trustees’ report (incorporating the directors’ report) for the financial year

for which the accounts are prepared is consistent with the accounts; and

the trustees’ report (incorporating the directors’ report) have been prepared in accordance with

applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the company and its environment obtained in the course of

the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006

requires us to report to you if, in our opinion:

sufficient accounting records have not been kept;

the accounts are not in agreement with the accounting records and returns;

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

we have not obtained all the information and explanations necessary for the purposes of our audit.

the trustees were not entitled to take advantage of the small companies’ exemptions in preparing the

directors’ report and from the requirement to prepare a strategic report.

RESPONSIBILITIES OF THE TRUSTEES

As explained more fully in the trustees’ responsibilities statement (set out on page 11&12), the trustees are

responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for

such internal control as they determine is necessary to enable the preparation of accounts that are free from

material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the Charity’s ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic

alternative but to do so.


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AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE ACCOUNTS

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit 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 the aggregate, they could reasonably be expected to

influence the economic decisions of users taken on the basis of these accounts.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting

Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

USE OF OUR REPORT

This report is made solely to the Charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity’s members those

matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s members as a

body, for our audit work, for this report, or for the opinions we have formed.

Colin Mills (Senior Statutory Auditor)

For and on behalf of Critchleys Audit LLP (Statutory Auditor)

Oxford

Statutory Accounts

16


STATUTORY ACCOUNTS

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST MARCH 2018

(incorporating income and expenditure)

Notes Unrestricted funds

£

Restricted funds

£

Total funds 2018

£

Unrestricted funds 2017

£

Restricted funds 2017

£

Total Funds 2017

£ Income and endowments from: Donations and legacies 1 66,994 828,998 895,992 74,307 1,839,962 1,914,269 Interest earned on bank deposits 518 518 1,800 1,800

67,512 828,998 896,510 76,107 1,839,962 1,916,069 Other 2 3,280 37,197 40,476 38,252 140,729 178,981

Total income 70,792 866,194 936.986 114,359 1,980,691 2,095,050

Expenditure on: Raising Funds 3 16,503 16,503 14,874 14,874 Charitable activities 4 Sudan 59,965 773,478 833,443 34,998 1,932,049 1,967,047 Ethiopia 31,746 42,797 74,543 23,332 140,083 163,413 South Sudan 14,109 5,243 19,352 9,333 7,886 17,219

105,820 821,518 927,338 67,663 2,080,016 2,147,679

Total Expenditure: 122,323 821,518 943,841 82,537 2,080,016 2,162,553

Net income / (expenditure) (51,531) 44,676 (6,855) 31,822 (99,325) (67,503) Transfers between funds

Net movement in funds (51,531) 44,676 (6,855) 31,822 (99,325) (67,503) Total funds brought forward at 1 April 2017

305,544 21,610 327,154 273,722 120,935 394,657

Total funds carried forward at 31 March 2018

254,013 66,286 320,299 305,544 21,610 327,154

All operations are ongoing. All recognised gains and losses in each of the two years are included above.

The notes on pages 21 to 28 form part of these accounts.

Statutory Accounts

17


STATEMENT OF CASHFLOW FOR THE YEAR ENDED 31ST MARCH 2018

Notes Total funds 2018

£

Total Funds 2017

£ Cash Generated from operating activities Net cash flow provided by (used in) operating activities

18 (34,695) 485,030

Net Increase/(decrease) in cash (34,695) 485,030 Cash at Bank at the beginning of the year 1,080,519 595,489 Cash at Bank at the end of the year 19 1,045,824 1,080,519


Statutory Accounts

18


BALANCE SHEET AS AT 31 MARCH 2018

Notes 2018 £

2018 £

2017 £

2017 £

Fixed assets Tangible fixed assets Current assets Debtors 11 24,322 117,097 Cash at bank 1,045,825 1,080,519

Total current assets 1,070,147 1,197,616 Creditors: amounts falling due within one year 12 (749,848) (870,462)

Net current assets 320,299 327,154

Net assets 320,299 327,154

Represented by: Funds and reserves Restricted funds 13 66,286 21,610

General fund 104,013 155,544 Designated funds Cash flow contingency 50,000 50,000 Contingency for forex difference 100,000 100,000

150,000 150,000

Total unrestricted funds 14 254,013 305,544

Total charity funds 320,299 327,154

Approved by the Board of Directors and signed on its behalf by:

Ian Barry

Approved on: 13th September 2018


Statutory Accounts

19


ACCOUNTING CONVENTIONS AS AT 31 MARCH 2018

The accounts have been prepared under the historical cost convention, and in accordance with applicable

Accounting Standards, the Statement of Recommended Practice “Accounting by Charities” (2011) and the going

concern convention which the directors consider appropriate.

The format of the Income and Expenditure account has been adapted from that prescribed by the Companies Act

2006 to better reflect the special nature of the charity’s operations.

INCOME

Income is recognised in the period in which SOS Sahel UK is entitled to receipt and the amount can be measured

with reasonable certainty. Income is deferred only when SOS Sahel International UK has to fulfil conditions before

becoming entitled to it or where the donor has specified that the income is to be spent in a future period.

Gift aid income is included gross of attributable tax recoverable.

Donations received are credited to the statement of financial activities in the period in which they fall due.

Legacies, notified before the year-end, are accounted for when the amounts to be received can be measured with

reasonable certainty.

EXPENDITURE

Where members of staff carry out duties which fall into more than one category, costs, including related overhead

costs, have been allocated on the basis of estimates of time spent on their various duties. This will vary for each

activity according to the size and complexity of the programmes.

The expenditure on raising funds represent the costs of inducing others to make gifts of voluntary income to the

charity.

Charitable activities comprise direct expenditure incurred on charitable activities together with those support

costs incurred that enable these activities to be undertaken. This is through a combination of direct service

provision and grant funding of African partner organisations.

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves produce the output

of the charitable activity, such as accounting, and monitoring and evaluation.

Governance costs represent costs attributable to the governance arrangements of SOS Sahel UK and include

compliance with constitutional and statutory requirements and costs relating to strategic activities. The

governance costs are part of the support costs.

FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Assets and

liabilities denominated in foreign currencies are translated at the rate of exchange prevailing at the year end. Any

differences are included within the statement of financial activities in the period.

The main functional currency of the organisation is the GBP. The GBP is also the accounting and reporting

currency. The organisation receives its income in GBP, EURO and USD. In the year under review it did not receive

any income in USD. The organisation operates bank accounts denominated in GBP, EUR and USD.

Statutory Accounts

20


ACCOUNTING CONVENTIONS AS AT 31 MARCH 2018 (Continued)

TAXATION

The company is a registered charity and benefits from the exemptions from UK taxation on its income and capital

gains granted by section 505 of the Income and Corporation Taxes Act 1988.

TANGIBLE FIXED ASSETS

Tangible fixed assets in the UK are stated at cost less depreciation. Depreciation is calculated to write down the

cost in equal instalments over their expected useful lives. The cost of office and computer equipment is written

off over 3 years. Items of equipment purchased for Africa and items under £1,500 are not capitalised and are

written off in the year of purchase.

FUND ACCOUNTING

Unrestricted general funds are those funds which can be used in accordance with the charitable objectives of SOS

Sahel UK at the discretion of the Board of Directors.

Designated funds are funds set aside by the Board of Directors out of unrestricted general funds for specific future

purposes or projects.

Restricted funds can only be used for particular restricted purposes within the objects of SOS Sahel UK.

Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

OPERATING LEASES

Rentals applicable to operating leases, where substantially all of the benefits and risks of ownership remain with

the lessor, are charged to the statement of financial activities as incurred.

COMPLIANCE WITH FRS 102

The accounts have been prepared in accordance with FRS 102, the Charities SORP (FRS 102) and the Companies

Act 2006.

INFORMATION FOR PUBLIC BENEFIT

SOS Sahel International UK is a registered charity number 296311. It is a company limited by guarantee,

incorporated under the Companies Act 2006 registration number 2100867(England and Wales) and governed by

its Memorandum and Articles of Association. The charity is based in Oxford and its registered head office address

is The Old Music Hall, 106-108 Cowley Road, Oxford, OX4 1JE.

The charities’ Trustee certify that all its activities are for Public Benefits to its beneficiaries in the Sahel region of

Africa

Statutory Accounts

21


NOTES TO THE ACCOUNTS AS AT 31 MARCH 2018

1. Donations and Legacies

Unrestricted funds

£

Restricted funds

£

Total funds 2018

£

Total Funds 2017

£ Governmental organisational grants European Union (EU) 754,932 754,932 1,753,233 State of Guernsey Overseas Aid Commission 19,929 19,929 50,599

774,861 774,861 1,803,833

Donations from trusts, corporates and other groups Anonymous Charitable Trust 20,000 20,000 20,000 AS Charitable Trust 1,000 Beatrice Laing Trust 4,180 Bryan Guinness Trust 8,000 Miss Jeanne Bisgood’s Charitable Trust 1,000 Bower Trust 500 500 The Blandford Lake Trust 5,000 5,000 Bryan Guinness Trust 8,000 8,000 Charities Advisory Trust 78 Cheltenham Tree Group 300 300 Anonymous Trust 300 Dingwall Trust 1,000 1,000 2,000 Fulmer Charitable Trust 1,500 1,500 Gestingthorpe Trust 200 200 Lady Yuen Peng McNeice Charitable Foundation 2,000 2,000 N. Smith Charitable Settlement 1,000 1,000 700 Northwick Trust 5,000 5,000 5,000 Anonymous 1,000 Open Gate Trust 2,000 2,000 2,000 Paget Trust 1,000 1,000 Eleanor Rathbone Trust 1,000 1,000 Rest Harrow Trust 100 Anonymous 500 SMB Trust 1,200 SOS Sahel UK 6,892 St Mary’s Church – Iffley, Oxford 14,679 14,679 10,180 Souter Charitable Trust 5,000 5,000 Quaker Disley 85 85 The Morel Trust 2,000 2,000 Martin Wills Wildlife Maintenance Trust 2,000 2,000 Miss WSH Wallace’s Charitable Trust 990

24,000 48,264 72,264 65,120

Donations from Individuals 42,994 5,873 48,867 45,317

Total Voluntary Income 66,994 828,998 895,992 1,914,269

2. Other Income

Unrestricted funds

£

Restricted funds

£

Total funds 2018

£

Total Funds 2017

£ Other income 3,280 3,280 21,154 Gain on foreign exchange 37,197 37,197 157,827

Total 3,280 37,197 40,476 178,981

Statutory Accounts

22


NOTES TO THE ACCOUNTS AS AT 31 MARCH 2018 (Continued)

3. Expenditure on Raising Funds

Unrestricted funds

£

Restricted funds

£

Total funds 2018

£

Total Funds 2017

£ Staff costs 10,934 10,934 9,617 Office running costs 3,043 3,043 4,007 Other costs 2,526 2,526 1,250

Total 16,503 16,503 14,874

4. Charitable Activities including grant funding of activities and activities directly undertaken

by the charity

Current year (2018)

Grant funding of activities

£

Staff costs

£

Support costs

£

Other costs

£

Total 2018

£ Sudan 701,677 37,544 82,247 11,975 833,443 Ethiopia 31,000 43,543 74,543 South Sudan 19,352 19,352

Total 732,677 37,544 145,142 11,975 927,338

Previous year (2017)

Grant funding of activities

£

Staff costs

£

Support costs

£

Other costs

£

Total 2017

£ Sudan 1,828,367 43,024 56,576 39,080 1,967,047 Ethiopia 125,695 37,718 163,413 South Sudan 15,087 2,132 17,219

Total 1,954,062 43,024 109,381 41,212 2,147,679

5. Grant funding of activities

Grantee location

Number of grants made

Total 2018

£

Total 2017

£ Darfur Development and Reconstruction Agency Sudan 297,677 SOS Sahel Sudan Sudan 5 701,677 125,695 SOS Sahel Ethiopia Ethiopia 1 31,000 1,530,691

Total 6 732,677 1,954,062

Statutory Accounts

23



6. Support costs

Unrestricted funds

£

Restricted funds

£

Total 2018

£

Total 2017

£ Staff costs 53,481 19,874 73,355 73,192 Office running costs 13,006 4,833 17,839 26,716 Governance costs 4,223 1,569 5,793 6,276 Fraud Loss 28,287 28,287 Other costs 6,822 13,047 19,869 3,196

Total 105,828 39,323 145,142 109,380

Support costs comprise specific direct support costs and an allocation of staff and office costs apportioned on the

basis of time spent on support activities.

7. Net income

This is stated after charging:

Unrestricted funds

£

Restricted funds

£

Total 2018

£

Total 2017

£ Auditors remuneration 6,000 6,000 6,000 Foreign exchange gains / (loss) (17,605) 37,197 19,592 157,827 Operating lease rentals – land and buildings 9,808 9,808 9,355

8. Staff costs and Board of Directors members’ remuneration

2018 UK-based

£

2017 UK-based

£ Wages and Salary 102,710 97,922 Social Security costs 10,796 10,155 Pension contributions 8,217 8,844

Total staff costs 121,723 116,921

The average number of employees (full time equivalent) for the year was:

2018 2017 UK based 3 3 Overseas 0 0

No employee received a salary of over £60,000 excluding retirement benefits (2017 – none). Total key

management personnel compensation for the year was £51,988 (2017 - £50,789) this is made up of £43,608

Gross Salary, £8,201 Employer National Insurance Contribution and £10,796 Employer Pension Contribution.

No member of the Board of Directors received any remuneration in respect of their services during the year (2017

– none). £266 was reimbursed to some Board of Directors in respect of travel expenses during the year (2017 –

£253).

SOS Sahel International UK made contributions to an occupational money-purchase pension scheme (the Flexible

Retirement Plan) administered by The Pensions Trust during the year. The cost represents amounts payable in

the year. The scheme assets are separate from the charity. The employer contribution was 8% of pensionable

earnings. The amount paid by SOS Sahel UK by way of contributions in the year was £8,217 (2017 – £8,844). The

outstanding contributions at the end of the year were £707 (2016 – £662).

Statutory Accounts

24



9. Taxation

SOS Sahel International UK is a registered charity and therefore is not liable to income tax or corporation tax on

income derived from its charitable activities, as it falls within the various exemptions available to registered

charities.

10. Tangible fixed assets

The Charity had no tangible fixed assets during the year under review.

11. Debtors

2018 £

2017 £

Grants and donations 14,679 113,749 Prepayments 2,202 2,057 Other Debtors 7,449 1,191

24,322 117,097

12. Creditors: amounts falling due in less than one year

2018 £

2017 £

Social security and other taxes 3,012 2,744 Accruals and Deferred income 38,049 186,659 Other creditors 708,787 681,059

749,848 870,462

Statutory Accounts

25



13. Restricted funds – 2017

The income funds of SOS Sahel International UK include restricted funds comprising the following grants and

donations held on trust to be applied for specific purposes:

Restricted funds - 2018

Balance at 1st April 2017

£

Income

£

Expenditure

£

Transfers

£

Balance at 31st March 2018

£ Sudan Sand dams in South Kordofan 8,892 50,223 (32,151) 26,965 Agricultural production by smallholders in Red Sea State

792,129 (752,807) 39,323

Sudan fund – for sand dams in Darfur 4,718 843 (5,561) - Ethiopia Reset project in SNNPR 8,000 23,000 (31,000) -

Total restricted funds 21,610 866,195 (821,518) 66,287

Restricted funds – 2017


£

Income

£

Expenditure

£

Transfers

£


£ Sudan Sand dams in South Kordofan 50,598 (41,706) 8,892 Agricultural production by smallholders in Red Sea State

1,576,165 (1,576,165)

Market monitoring in Darfur 317,798 (317,798) Sudan fund – for sand dams in Darfur 21,238 (16,520) 4,718

1,965,799 (1,952,189) 13,810 Ethiopia Reset project in SNNPR 8,000 8,000 Environmental rehabilitation in Southern Ethiopia

118,803 6,892 (125,695 -

118,803 14,892 (125,695) 8,000 South Sudan SOS Sahel South Sudan start up 2,132 (2,132) -

2,131 (2,132) - -

Total restricted funds 120,935 1,980,691 (2,080,016) - 21,610

Statutory Accounts

26



14. Unrestricted funds

Unrestricted funds - 2018


£

Income

£

Expenditure

£

Transfers

£


£ General funds 155,544 70,792 (122,323) 104,013 Designated funds Cash flow contingency 50,000 50,000 Contingency for forex difference 100,000 100,000

150,000 150,000

Total unrestricted funds 305,544 70,792 (122,323) - 254,013

Unrestricted funds - 2017


£

Income

£

Expenditure

£

Transfers

£


£ General funds 123,722 156,076 (124,254) 155,544 Designated funds Cash flow contingency 50,000 50,000 Contingency for forex difference 100,000 100,000

150,000 150,000

Total unrestricted funds 273,722 156,076 (124,254) - 305,544

Designated funds represent funds set aside by the Board of Directors out of unrestricted general funds as follows:

• The contingency for cash flow fund represents reserves intended to cover SOS Sahel International

UK’s working capital requirements and to meet any temporary shortfall in funds.

• The contingency for foreign exchange differences fund represents reserves intended to cover

foreign exchange losses and other potential unanticipated costs arising from funding under the

contractual requirements of the European Commission and other foreign currency denominated

grants.

Statutory Accounts

27



15. Analysis of net assets between funds

2018 Analysis

General funds

£

Designated funds

£

Restricted funds

£

Total

£ Cash 117,498 150,000 778,325 1,045,825 Current assets 9,654 14,668 24,322 Current liabilities (23,139) (726,709) (749,848)

104,013 150,000 66,286 320,299

2017 Analysis

General funds

£

Designated funds

£

Restricted funds

£

Total

£ Cash 178,881 150,000 751,638 1,080,519 Current assets 3,350 113,747 117,097 Current liabilities (26,687) (843,775) (870,462)

155,544 150,000 21,610 327,154

16. Leasing commitments

Operating leases

SOS Sahel International UK leases its office premises at The Old Music Hall, 106-108 Cowley Road, Oxford. Under

the terms of the lease, SOS Sahel International UK has an annual rental commitment of £10,348 (2017 – £9,637)

inclusive of service charges and rates, with a break clause of three months’ notice. The lease expires 31st March,

2020.

17. Capital commitments

At 31 March 2018 there were no outstanding commitments for capital expenditure (2017 – none).

18. Reconciliation of net income / (expenditure) to net cash flow from operating activities

31st March 2018

£

31st March 2017

£ Net income/ (expenditure) as per the SOFA

(6,856) (67,503)

Adjustments for (Increase)/(decrease) in debtors 92,775 409,442 Increase/(decrease) in creditors (120,614) 143,091

Net cash provided by (used in) operating activities

(34,695) 485,030

Statutory Accounts

28



19. Cash in hand and at the bank

31st March 2018

£

31st March 2017

£ Cash at bank (GBP) 222,824 509,271 Cash at bank (EUR) 822,836 571,064 Cash at bank (USD) 165 183

Net cash provided by (used in) operating activities

1,045,825 1,080,519

20. Funding commitments

SOS Sahel International UK has further commitments with SOS Sahel Sudan.

Project Partner Commitment Timeframe How commitments will be funded

Agricultural Production for Small holders Fishery and Farmers in the Red Sea State of Sudan

SOS Sahel Sudan EUR500,000 30 November 2018 Funding from the EC

21. Related party transactions

There were no related party transactions in the period.

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