2014 Trustees’ Report and Accounts - ActionAid UK · Corporate directory 49 ActionAid is part of ... Asia and Latin America, to ... 4 ActionAid Trustees’ Report & Accounts 2014

1 ActionAid Trustees’ Report & Accounts 2014

Greg Funnell/ActionAid

Wai Wai, 7, at school in a village in the dry zone, Myanmar. Families have to walk up to two hours to get water. This means many children have to drop out of school to help at home.

ACTIONAID 2014 ACTION FOR CHANGETrustees’ Report & Accountsfor the year ending 31 December 2014

CONTENTS

A message from our chair 3

Trustees’ statement 4

Strategic report 5

Governance, leadership 23 and trustee declaration

Independent auditor’s report 26 to ActionAid members

Statement of financial activities 27

Balance sheet 28

Cashflow statement 29

Notes forming part of the 30 financial statements

Corporate directory 49

ActionAid is part of ActionAid International.

We are a leading international charity working in over 45 countries. We support people in extreme poverty. We fight for their rights and for lasting change.

ActionAid is a registered charity in England and Wales (274467) and Scotland (SC045476) and a company limited by guarantee, registered in England and Wales (01295174).

Lianne Milton/Panos/ActionAid

Samira, 8, lives in Mare slum, Brazil. Her mother forbids Samira and her siblings to play outside because it is dangerous. ActionAid International and its partner have created safe places for children to play and enjoy time with their families.


ActionAid is part of ActionAid International. We support the struggle of the poorest people in developing countries for equality, justice and human rights. With our supporters, we help them escape poverty and discrimination and live in dignity. This can't be achieved by quick fixes, so our commitment is long-term.

This year, ActionAid International responded to global emergencies and gave long-term support to impoverished communities.

Farmers need land and water but many of the poorest and most marginalised people don’t have these natural resources. We work with poor farmers to achieve long-term change. For example, together with our partner Children and Women’s Development Centre we have worked with the fishing community in Trapang Sangke in Cambodia. We helped them get their fishing rights recognised and to improve their fishery. After many years work their fishing incomes finally reached sustainable levels in 2014.

In many developing countries public services are non-existent or hang by a thread. This is partly because multinational corporations have avoided paying their fair share of taxes, depriving poor countries of money for essential public services like health, schooling, transport and social infrastructure.

Since 2008 ActionAid has played a leading role in a global tax campaign, supporting poor countries to hold governments and companies to account. For example, ActionAid research showed that Barclays was promoting tax havens to companies investing in Africa. Using this evidence campaigners forced the company to stop promoting offshore tax havens and the UK government to stick to its pledge to work towards global tax reforms.

Every day, millions of women worldwide are subjected to rape, domestic violence and harmful traditional practices such as female genital mutilation. ActionAid International supports women to challenge violence wherever it occurs. For example, in the Brazilian city of Recife, where sexual tourism is rife, ActionAid International is working with local organisations to provide therapy and

education so that vulnerable girls gain self-confidence and independence.

Tragically, more than 58 million children worldwide are not in school. ActionAid International is working with more than 5,000 schools in Africa, Asia and Latin America, to tackle problems such as overcrowded, poorly equipped classrooms and untrained teachers.

According to UNESCO and UNICEF, Nigeria has more children out of school than any other country in the world. With our Nigerian partners, ActionAid International set up Girls Clubs in 120 schools across 15 states. The clubs are producing confident girls, determined to complete their education. Simon Abigail, a 16-year-old club member told us ‘My message to world leaders is that they should give money for the progress of education – to show love – they should encourage girls to come to school.’

Every year we see another health emergency, conflict or natural disaster. Overwhelmingly those affected live in the poorest countries. ActionAid International is working with the most vulnerable communities to help them withstand natural disasters and to adapt to climate change over the long term.

Our response to the Ebola crisis in 2014 was swift and effective. With 18 years’ experience in Liberia and 26 in Sierra Leone, we were already trusted by communities. With funds raised in the UK and other federation countries, ActionAid International educated 250,000 people in Ebola prevention, provided food and clothes to 500 quarantined families, education packs to children in their homes and essential supplies to medical centres.

Our Communication Officer, Christal Da Thong, who returned to Liberia to help during the outbreak, says ‘Seeing the impact of ActionAid’s work has made a huge difference to me. It makes me proud that my team has helped over 200,000 people affected by Ebola in Liberia.’

As chair of ActionAid I too feel proud of ActionAid International’s achievements in improving the lives of the poorest people throughout the world every day, which it can only do with its supporters.

Margaret Casely-Hayford (Chair)

A MESSAGE FROM OUR CHAIR


ActionAid International and Farmer's Development Centre have been working on an organic hog rearing project on Cebu which is recovering from the after-effects of typhoon Haiyan. The income Marifa earns helps pay for her children's university fees and school fees for her grandchild.

ActionAid is a UK registered charity and also a company, limited by guarantee. We are governed by a board of trustees who are also considered directors under company law. The trustees have taken note of the Charity Commission’s guidance on public benefit. ActionAid has made grants of just over £44 million to both ActionAid International and to ActionAid International federation members to assist country programmes deliver against our ambitious strategy and strengthen our international federation. Please refer to note 6 in the accounts for the detail.

We also undertake charitable activities in the UK in pursuit of our global mission. Examples of our achievements, both in the UK and internationally, are set out below.

The trustees present their statutory report with the financial statements of ActionAid for the year 2014. The trustees’ report has been prepared in compliance with the Charities Act 2011 and is also a directors’ report as required by Section 415 of the Companies Act 2006.

Financial statements have been prepared in accordance with the accounting policies and comply with the charitable company’s Memorandum and Articles of Association (last amended December 2014), applicable laws and requirements of Accounting and Reporting by Charities: Statement of Recommended Practice (SORP 2005).

TRUSTEES' STATEMENT

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Delivering on our global mission

ActionAid is part of ActionAid International - a leading international charity working in over 45 countries. We work with the poorest people in the world, so that they can change their lives for good.

Our local staff provide immediate hands-on support to women and children – the most vulnerable – who are living on the margins of survival. Together we demand action at local, national and international level.

We don’t walk away until we’ve achieved lasting change.

STRATEGIC REPORT

Strategic Objective 1 Promote sustainable agriculture and control of natural resources for people living in povertySee page 6

Strategic Objective 2 Advance the political influence of people living in poverty to hold governments and companies accountableSee page 9

Strategic Objective 3 Improve the quality of public education for all children and support young people to become drivers of change towards a poverty-free planetSee page 11

Strategic Objective 4 Build the resilience of people living in poverty to conflicts and disasters and respond to disasters with people-centred, rights-based alternativesSee page 13

Strategic Objective 5 Ensure that women and girls break the cycle of poverty and violence, build economic alternatives and claim control over their bodies See page 16

Note: When we talk about ActionAid International, we mean all the countries in our federation, or when we talk about work in a specific country, ActionAid International refers to efforts of our local staff and partners. When we talk about ActionAid, we mean work carried out by our staff and partners in the UK.

The evidence cited in this report (pages 6 to 18) relates to ActionAid International and its partners’ work around the world in 2014, which has been delivered with resources raised throughout the federation. This report is based on the evidence and analysis available in April 2015. If you want to know more about the federation and its approach please refer to ActionAid International: Working with partners, page 20).


Promote sustainable agriculture and control of natural resources for people living in poverty

The world produces enough food for everyone, yet one person in eight still goes to bed hungry. Half of those going hungry are small-scale farmers in developing countries who work tirelessly, but often can’t afford to feed their children. As a result, one in six children - roughly 100 million - in developing countries are underweight. ActionAid International works with communities across Africa, Asia and the Americas, supporting them to grow food, claim land that is rightfully theirs and adapt to climate change.

In many of the countries where ActionAid International works, land grabs by companies or that are the result of government activity are a significant and growing problem. ActionAid International’s global campaign ‘Land for’ challenges public policy that promotes land grabs, exposes questionable land deals and helps the affected communities to be heard nationally and internationally.

As part of the ‘Land for’ campaign, ActionAid International Cambodia has worked with communities affected by land grabs caused by the sugarcane Economic Land Concession Scheme in Oddar Meanchey province. With our support these communities have documented land grabs and generated national and international awareness. In 2014, the Royal Government of Cambodia announced a ministerial committee to address the impact of the sugar cane concessions. It also established a working group to identify and reconcile disputed claims related to the sugarcane plantations and to monitor any remedial action recommended by the committee. The working group asked ActionAid International Cambodia to help gather information from the affected communities.

Women often face discrimination when they assert their right to land. In northern Uganda many people are returning to their land following a lengthy, regional conflict, but women are losing out. ActionAid International Uganda has been supporting smallholder farming in the region with seed bank schemes and training since 2009. We established a land justice centre and mobile clinics that provide information, legal support and mediation to women

who have lost their land. Over 540 people have attended the mobile clinics and 550 have visited the centre. Our trained paralegals are supporting more than 50 cases and already three women have regained their land. ActionAid International Uganda is also raising awareness of women’s land rights through theatre and community debates, by training community members to settle land disputes and protect women’s rights, and by distributing livestock and seeds so that land remains in use. ActionAid International Uganda is gathering evidence to improve policy to secure women’s land rights nationally.

“I was able to reclaim my three acres of land which I have now planted with cassava, maize and pigeon peas… it will help me pay school fees, store for seeds and home consumption; had ActionAid not intervened, I don’t know where I would be by now with my seven children”. Christine Ogwete, 47, from Minakulu Sub-County in Oyam District, Uganda

In Haiti, because people live far from their farms it is difficult for women to take part in farm work. Around 70% of people rely on farming so women are severely disadvantaged. ActionAid International Haiti, along with local partner Peasant Movement of Acul du Nord, supports a ‘near home’ gardens project so that women can grow food and earn money while caring for their children. Women are also learning to use natural fertilisers, which reduces farming costs.

Promoting women’s control over land and other natural resources

85,500 women tell us they have more control over natural resources like land

50,600 women whose husbands and local leaders now support them being able to control land and other natural resources

2,300 organised women’s groups working to claim their rights and legal entitlement to land

Numbers have been rounded and have been extracted from country reports

STRATEGIC OBJECTIVE 1


“I have enough to reinvest in other business like buying chicks to grow and sell when the weather is not good for planting.” Kekette Simone, near home garden project, Haiti

Overexploitation of natural resources reduces food production. ActionAid International Cambodia and its partner Children and Women’s Development Centre in Cambodia (CWDCC) have lobbied to restore collective fishing rights in Cham fishing communities in Kampot province. In 2009, after these rights were restored, they set up the Trapang Sangke Community Fishery. ActionAid International Cambodia and CWDCC are helping the community to create a nursery and to plant and protect new mangroves from illegal fishing. In 2014, catches increased to the extent that the community became self-sustaining.

On the Dhanusha plains in Nepal farmland has been increasingly degraded and yields have significantly reduced despite the introduction of technical fixes such as chemical fertilisers and

genetically modified seeds. ActionAid International Nepal established 12 farmers groups to train 269 farmers in climate-resilient sustainable agriculture, which helped the soil to recover its fertility.

“I grew 150 kilos of tomatoes in 3 months, using the organic methods I learnt in ActionAid’s training sessions. My tomatoes are tasty and sell well at market. My last crop earned me NRs 5,000 (£40) and my harvests keep on increasing.” Prem Bahadur Pakhrin, Boudha Farmers’ Group, Nepal

We’ve been highly effective in making communities, and particularly women, aware of women’s rights to land and in several countries this led to greater retention of farming land by women. However, we still have a long way to go to ensure that due process for land ownership and transfer is implemented by all traditional, local and national authorities where we work. There were signs of progress in Kenya and Nepal, but little government support in Bangladesh, Brazil and Tanzania.

STRATEGIC OBJECTIVE 1 CONTINUED

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A member of the Trapang Sangke Community Fishery drying shrimp in Kampot, Cambodia. Fishing incomes have risen to a sustainable level of $5-10 per day. ActionAid Cambodia and partner CWDCC have also helped the community develop a new ecotourism resort.


Our ground-breaking work on climate-resilient sustainable agriculture is gathering pace. Our approach combines gender equality, soil conservation, water management, bio-diversity, livelihood diversity, processing and enhancing market access. However, in some cases we have not drawn all these threads of work together and therefore our approach is not as holistic as intended.


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130,000 people trained in climate-resilient sustainable agriculture

270,000 farmers practicing climate-resilient sustainable agriculture

10,000 farmers groups developing climate-resilient sustainable agriculture in their area


Smallholder women farmers in Pantasma, Nicaragua, grow traditional varietals of crops. ActionAid International and partner FUMDEC's 'creole' seed project strengthens women's producer organisations, improves food and nutrition security and increases local income.


Advance the political influence of people living in poverty to hold governments and companies accountable

The OECD estimates that every year poorer countries lose three times more to tax havens than they receive in all overseas aid from rich countries. Corporate tax dodging allows some of the world’s biggest businesses to avoid paying their fair share of tax, depriving governments of funds for vital services like schools, healthcare and water. ActionAid International campaigns to change the policies and practices of governments and companies to make sure that developing countries can raise their fair share of corporate tax revenues. We also work with local people to track public money and make sure it is being spent in the right way.

ActionAid has been campaigning to make big companies pay their fair share of tax in poor countries since 2008. Our research showed how Barclays was promoting tax havens to companies investing in Africa. This was helping companies avoid paying tax in some of the world’s poorest countries. In 2014 ActionAid mobilised activists from all over the world to target Barclays through email, Facebook and Twitter. We also staged protests at the Barclays AGM in London in April. As a result, Barclays was persuaded to stop marketing the benefits of tax havens to companies operating in Africa and to disclose more information about how its tax principles apply to its business – a partial but important victory.

ActionAid International activists in Zambia and the UK worked together when allegations emerged of tax dodging by Konkola Copper Mines, a Zambian mining company owned by the UK-listed corporation, Vedanta. Campaigners in Zambia led a street protest demanding that the company respond to these allegations. To support this action, more than 6,000 supporters in the UK emailed Vedanta Chairman Anil Agarwal. The activism generated a lot of media attention and the Zambian government committed to a review of the company’s financial declarations.

Social security payments can be an important lifeline provided by governments for their poorest

and most vulnerable citizens. In Nepal, a significant number of people do not receive social security owed to them due to government corruption. In 2014 ActionAid International Nepal worked with communities in Dhanusha district to increase their understanding of their rights and to help to organise and deliver a petition to the local authorities in Janakpur. After the petition was delivered, more than 175 of the most vulnerable local people had their social security allowances reinstated after an interruption of nearly two years.

Communities in remote areas are rarely heard by governments. As a result, there are high levels of underdevelopment and poverty and little resilience to emergencies. In Myanmar, ActionAid International’s Fellows Programme has helped young leaders in 458 villages and 60 townships into work placements with a host community. Fellows help to identify needs, to shape and drive development work and hold their government to account. Using ActionAid International’s participatory planning approach Reflect, fellows have helped communities collect data, analyse their current situation and plan for change. These materials are gathered into village books. The books are then used by the communities to shape ActionAid International Myanmar’s community work and to lobby local government for additional community development. Each community’s village book is unique and tailored to their needs. In 2014 communities prioritised work on disaster preparation and planning, water supply, income generation and education.

Challenging corruption and promoting fair tax collection

33 tax justice coalitions and campaigns

1,000 local governments are becoming more accountable to their communities

25initiatives helping communities to monitor tax revenue and improvements to their public services




“There are so many children and there is no school in the village… the village leader and I networked with the Education Department… We received the funding from government’s poverty alleviation programme for the construction of primary school. ActionAid also supported an extension of the school building. As a result, parents became interested in education and now the children can get education in their village” Naw Po Po Htwe, ActionAid fellow, Myanmar

ActionAid International works with poor and marginalised people to hold businesses operating in their countries to account. In Punjab province in central Pakistan, ActionAid International and its partners estimate that over 10,000 unregistered brick kilns are operating. Hiding in peri-urban areas, operators flout labour laws, bond workers through debt and employ children. With local partners, ActionAid International has tackled this issue on several fronts. Together we ran a successful campaign to force the provincial government to pay operators the minimum wage. Workers’ wages were raised an average of 72%. We also supported


the legal cases of 240 indebted kiln workers. Half of these cases have been resolved and the workers have been freed from debt and they have been paid compensation. We have also set up informal schools at the kilns. These offer accelerated versions of the national curriculum to help children who have never or rarely been to school to escape from a life in the kilns and receive an education.

We have helped a number of local communities build viable alternative economic models such as cooperatives. We’re helping to address public service ‘gaps’ into which women fall. We’re piloting approaches in Bangladesh,Uganda and Vietnam to increase civic engagement and positively influence national development strategies and talking to regional institutions, such as the Africa Platform on Social Protection. But we need to do more to ensure that national and international policies help and do not hinder the development of economic alternatives. We also need to do more to help rebalance the current dramatic power and economic inequalities which keep people and countries poor.

Søren Bjerregaard/ActionAid

Daniel Orogo, 26, is an Activista member and founder of Langata Youths Network in Kibera, Kenya. The group campaigns against forced evictions and for tax justice.


Improve the quality of public education for all children and support young people to become drivers of change towards a poverty-free planet

Worldwide more than 58 million children are not in school. Of those in school, 250 million children cannot read by grade 4 because the quality of their education is too poor. ActionAid International campaigns to extend access to education and works with parents, students, teachers, unions and governments to improve the quality of education provided. Our Promoting Rights in Schools initiative focuses on ensuring that schools are free, safe, relevant, non-discriminatory, properly equipped and staffed with trained teachers.

A founding member of the Global Campaign for Education in the UK, ActionAid manages the ‘Send My Friend to School’ campaign. In 2014, the campaign focused on children with disabilities who make up one third of all children who miss out on school. In the UK, 97% of MPs received messages from 4,300 schools, 500,000 children took part in the campaign and 90 MPs went ‘back to school’ to discuss the actions they could take. After sustained pressure from Send My Friend to School campaigners and others, the UK government pledged up to £300 million for global education over the next four years, and the Secretary of State for International Development made a commitment to place disability at the forefront of discussions on the post-2015 agenda.

ActionAid International works with over 5,000 schools across Africa, Asia and Latin America, helping children get the free, quality education they are entitled to. This might involve simple, practical solutions like helping parents to grow food in school gardens or programmes to tackle overcrowded and poorly-equipped classrooms, untrained teachers, hidden school fees and violence in schools.

In Vietnam, ActionAid International installed a water filtration system in two schools in Hao Binh province, where we have been working since 2007. Previously, the schools had to prepare and charge for filtered water at a fee that was unaffordable to the local community. Now water is free to 80

teachers and 400 schoolchildren. Children’s health and attendance have improved as children do not have to drink untreated water or go thirsty. In other schools supported by ActionAid and partners, children are actively involved in decorating classrooms to improve the school environment, which enhances their sense of belonging to their school.

In Bangladesh, ActionAid International has set up regional Education Watch Groups of parents, teachers, community leaders and local government officers. Groups monitor the quality of education, ensure teachers and students attend school regularly and make sure local government provides basic services such as classrooms, drinking water, toilets, text books and trained teachers.

“We produced a report of all the problems in our schools that we presented to the local government. So far, six schools have… new classrooms… tube-wells to provide clean drinking water, and latrines [have been] repaired. Also 63 teachers have received training on new teaching skills such as child-focused education.” Shefali Begum, member, Education Watch Group, Bangladesh

For millions of children, particularly girls, discrimination or violence in or around school leads to poor performance, absenteeism or dropping out completely. For many, this can result in early marriage, poverty or criminal activity. Since 2009, ActionAid International has worked with partner Redes de Desenvolvimento da Maré (Redes) in the Mare slums in Rio de Janeiro in Brazil. Residents and their children regularly witness violence but the brutality of street gangs and police pacification teams increased in 2014 in the lead up to Brazil’s hosting of the World Cup.

3,300 schools have improved to better meet children’s education rights

95,700 young people mobilised and taking sustained action to tackle poverty and injustice




Redes provides safe places for children to play, spend time with their families and get help with schoolwork. With Redes we supported education and cultural activities, including capoeira, graffiti art, and cooking classes.

Activista is ActionAid International’s global youth network involving thousands of young people in 23 countries, in campaigning on a variety of issues including tax justice, lower school fees, employment and sustainable agriculture. In Greece, Actionteens produced a video on xenophobia and racism as part of their human rights campaigning. ActionAid International’s popular Girls Clubs provide a fun environment with a serious purpose and helps to bring together young people. Working with local partners ActionAid International Nigeria has established a network of Girls Clubs. Since 2010, Girls Clubs have opened in 120 schools in 15 states, including Chibok, recently devastated by the abduction of 223 girls by Boko Haram. The clubs have helped produce a generation of confident girls


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determined to succeed in their education. The girls discuss health and education and encourage other children to attend school and their parents to enrol them. The kidnapping makes it harder for the girls to persuade others to go to school but they are not giving up.

“Being a member of the Girls Club has inspired me to help others… I also visit girls with disabilities who can’t get to school. I give them advice, show them how to write their names and read with them.” Precious Luka, 15, Girls Club leader, Nigeria

Our education rights programmes and development work improved local schools and empowered communities to call for better policy at local and national level. But we need to do more work with secondary schools. Also, we fell short of our ambition to boost youth-led activism in 2014, partly due to social, and political instability in the Middle East, where we are trying to build projects with young people. We still have a lot to do to change entrenched negative attitudes towards young campaigners if we are to reach our target of supporting five million young activists across the federation by 2017.

Students at Konkon School in Ghana. The school is supported by ActionAid and parents and students are actively involved in the school's running. The school has a girls club to support girls' education.


Build the resilience of people living in poverty to conflicts and disasters and respond to disasters with people-centred, rights-based alternatives

Emergencies and conflicts are major factors preventing people from moving out of poverty. They disproportionately affect the poorest in society, particularly women. ActionAid International works with communities at risk from natural disasters to increase their resilience. When humanitarian emergencies occur we respond swiftly and stay to help the communities affected to recover. Over the years we have built an excellent reputation on the ground for our long-term, rights-based approach – we believe that communities know their situations best which is why their perspectives inform all our emergency response and disaster risk reduction work.

In 2014, ActionAid International responded to disasters in 19 countries with fast, practical, hands-on support. Many of these emergencies were not reported in the UK press.

ActionAid International’s response to Ebola has been swift and effective. We have been in Liberia and Sierra Leone since 1996 and 1988 respectively. Communities know and trust ActionAid International, which is particularly important as there were high levels of anxiety and suspicion, in the early stages of the epidemic. ActionAid International in Liberia and Sierra Leone helped over 400,000 people affected by Ebola. We provided emergency food packages to 500 quarantined families and trained over 348 volunteers to raise awareness by running public health campaigns and educating 250,000 people in Ebola prevention. The volunteers also gave education packs to children unable to go to school and supplied detergents, disinfectants and protective clothing to 58 medical centres.

In 2014, renewed conflict broke out in Gaza between the Occupied Palestinian Territories and Israel. The UN estimates that 400,000 children will be in need of psychosocial support. ActionAid International has worked in Gaza since 2007, supporting women and young people. We are

helping children to overcome trauma through counselling, art and drama, and we support women to rebuild their lives by providing food, household supplies and enterprise starter kits. In the UK, we mobilised 12,000 people to take action and called on the UK government to push for a ceasefire. We joined the UN and other NGOs to call for an end to the blockade and ongoing occupation, without which there will be no lasting solution. ActionAid International stands in solidarity with all people whose rights are being violated, whoever they are.

“We are strong people, we will rebuild these memories. We just need some help right now whilst we have nothing.” Aleh Assad, Gaza, Occupied Palestinian Territories

ActionAid International is committed to helping communities improve their ability to cope with conflicts and emergencies long after the initial rush of emergency aid. In 2014, we worked in many areas where people, particularly women, are still trying to rebuild their lives years after devastating emergencies and conflicts.

ActionAid International continued to work in the Philippines, building the resilience of people after the devastating Typhoon Haiyan in 2013. It provided cash for work schemes to create local jobs, trained volunteers to provide psychosocial support to traumatised people, built sustainable homes and disaster-resilient shelters, kept women and girls safe by creating safe places for them to gather and educated local people in their rights.

44,000 people gained the skills to reduce risks and build resilience to emergencies and conflicts

29new or existing conflicts and emergencies responded to

over 1,000,000 people affected by conflicts or emergencies helped




In Cebu, local women have been key to the rehabilitation and reconstruction work by ActionAid International and our local partner, the Farmers’ Development Centre. This work involves identifying evacuation centres, training in disaster resilience, and building livelihoods through a kitchen garden programme, which diversifies local diets and income sources. Communities responded well to further typhoons in 2014. When Typhoon Ruby struck in December, there were efficient evacuations and rapid assessments of needs in the aftermath.

Since 1996, ActionAid International has worked in Haiti, through successive emergencies including hurricanes Gustav, Hanna and Ike in 2008 and the earthquake in 2010. In 2014, we continued to provide long-term psychosocial support, mitigating the effect of missed schooling on children and building the capacity of communities to respond to future disasters.

ActionAid International also focuses on prevention. In northwest Cambodia, with our local partner Ockenden and the Provincial Water and Meteorological Authority, we helped the local community to install a flood early warning system. The innovative system is a combination of low and high technology. It was set up using GPS technology to install water gauges, with high water markers made of local and readily available bamboo. The village disaster management committee will observe the gauges and alert the authorities when water levels are high, which will in turn trigger a mobile phone alert to community members. The system has been approved for other villages in the district.

“This will help the village be ready to move fast during flooding and escape any flooding.” Tam Noram, Chief of Beng Voang village, Cambodia, on the flood early warning system


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Randa Nusri Helis pictured with her children Ahmed, 13 and Yathrab, 9, in the grounds of Shifa hospital in Gaza where they were living after their home was destroyed.


The quality of our humanitarian work improved in 2014 as we supported communities to shape our responses, and to be better prepared for future emergencies. We are also starting to change the way states are thinking about the links between resilience to climate change and smallholder agriculture. But raising money to respond to smaller scale emergencies continues to be a challenge. Also, there is still not enough money being committed by states and donor organisations to support sustainable climate change solutions, and southern farmers – one of the groups most affected by climate change – still have too little influence in decisions that affect the distribution of what money there is.


Community organisations able to access resources to build resilience to emergencies and conflicts

437 community organisations

95 women-led or women-centred community organisations


Iye attends a hand-washing and Ebola awareness session put on by ActionAid volunteer Hawa Jalloh. Hawa has been a volunteer since 2007.

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Ensure that women and girls can break the cycle of poverty and violence, build economic alternatives and claim control over their bodies

In many countries around the world, women and girls are fighting a daily battle for the most basic of human rights. Millions are denied the right to essential services such as education and healthcare, cannot own land or property and have limited chances to earn a living and shape their own lives. On top of this, violence against women is a worldwide problem of epidemic proportions that affects one in three women and girls in their lifetime. ActionAid International puts women’s rights at the heart of everything we do. We campaign for lasting change and support women and girls to understand their rights and take an active role in finding solutions to the challenges they face.

ActionAid supported a women’s rights activist from Afghanistan to attend the London Development Conference on Afghanistan. We worked with her and other Afghani women’s rights activists and networks, and together our advocacy secured a number of changes to the outcomes document from the Conference, including strong commitments to retain the Ending Violence Against Women Law. ActionAid worked with ActionAid International Nepal to research how women’s rights are being addressed by social movements, such as those focusing on labour or land rights. This research has informed innovative programming that will seek to build the capacity and leadership of a leading Nepalese women’s network, including building dialogue with other social movements around women’s rights.

In Ofla, northern Ethiopia, one of the worst affected areas of the 1984 famine, poverty is still deeply entrenched, with thousands of women unable to supply their families’ most basic needs. ActionAid International has supported women in new goat and sheep rearing enterprises, and has helped them set up savings and credit cooperatives through which they can manage their money. 3,000 goats and sheep have been distributed to 750 women and in 2014, their offspring were given to a brand new

cohort. Some women have saved enough to buy additional shares in their cooperatives.

“My life has changed so much since I joined the cooperative. I gained sheep and later on I was able to access credit… I started running a small rural restaurant, which has enabled me to increase my shares in the cooperative… I have bought additional shares in the name of my daughter. My children and I are now leading a much better life.” Genet Fekadu, member of the Negatu Abreha saving and credit cooperative, Ethiopia

Women and young girls are particularly vulnerable to exploitation in under-regulated export economies. In Cambodia, campaigning by ActionAid International’s local partner, Workers Information Centre (WIC) sent a powerful message directly from the workers - 80 to 90% of whom are women - to the Cambodian government, factory owners and large multinational fashion brands. They called for an end to short-term contracts that deny women maternity leave and low wages that mean women cannot eat properly. In 2014, due to these and other strikes and protests, which led to a violent crackdown by government security forces and the imprisonment of several male garment workers, major fashion retailers came out in support of higher wages. Rates of pay have increased but still fall below a living wage, and ActionAid International and WIC continue to support the workers’ campaigning.

483 community-led initiatives to protect women and girls from harmful traditional practices such as FGM

151,000 women mobilised to challenge violence and harmful traditional practices in areas that ActionAid International works

236 ActionAid International programme areas that have structures to address violence against women and girls




Following ActionAid International’s research on the impact of women’s unpaid care work in 2013, the government in Rwanda allocated more funding to building safe water sources and children’s centres, and distributing energy saving stoves. These investments seek to reduce the number of hours women spend on social and family tasks and help them balance the demands of earning a living and providing unpaid care. The government has also increased the agriculture budget by 13% to support female smallholder farmers who make up 82% of farmers in the country.

ActionAid International also supports women to challenge rape and sexual exploitation and violence, in schools, homes and on the streets, including traditional practices such as female genital mutilation (FGM). We add our voice to the voices of local women, strengthening their ability to change male attitudes and behaviour.

In Somaliland, ActionAid International supported women’s coalitions that are helping their communities to take part in local and national politics and to demand their rights. In 2014, women’s coalitions pressed the government to institute a minimum 10% quota for women in government positions. Women are also being empowered through basic literacy and numeracy classes, tailoring skills and business skills training.


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Helping women to earn money

66,000 women involved in activities to help them earn an income

47,000 women with more financial control and greater powers of negotiation


Najba works in Shas Pul village, Bamyan, Afghanistan, in a paralegal centre to fight violence against women. Since the village is far from Bamyan city women cannot travel to report cases here and it is important to have a paralegal centre in the village.


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The city of Recife on the east coast of Brazil, which hosted the 2014 World Cup, has one of the highest rates of commercial sexual exploitation of children. As exploitation was likely to increase around the World Cup, ActionAid International supported local organisations to protect girls at risk of entering into sex work. Through a programme of education and training, girls are developing self-esteem and skills, and family strengthening sessions are raising awareness of risks to children and are providing support and protection. We also tackled the behaviour of tourists, launching the campaign “Não Brinque com Meu Direito” (Don’t Play With My Rights).

FGM has far-reaching negative effects on girls’ physical, social and emotional wellbeing and can lead to early marriage, school drop-out, haemorrhaging, trauma, physical disability and even death. In Uganda, in 2014, ActionAid International

implemented a project which taught girls and women about reproductive health and ways of actively resisting FGM. Using drama and radio broadcasts, girls took up the challenge of changing the attitudes of parents and elders in the community.

In 2014 we’ve seen some positive shifts in the way women’s economic and social contribution is valued in their households and in their communities. We have helped to shift attitudes to what is considered ‘women’s work’. However, women still feel obliged to stick to traditional occupations like sewing and hairdressing. Gender-based violence and harmful traditional practices also continue to be a challenge, particularly where violence against women and girls is considered ‘normal’. While some governments are amending or enacting new legislation, and more people are reporting incidences, perpetrators are still too often going unpunished.


A group of new mothers celebrate their newborn daughters at a Beti Utsav celebration, organised by ActionAid India in Bhalswa. Celebrations like this help to tackle the high social value of giving birth to boys rather than girls in India.


ActionAid's future plans are shaped by our mission and role in ActionAid International. In 2015 we will focus on raising money to deliver our global mission, campaigning to help tackle the underlying causes of poverty and strengthening our federation.

We fund work that changes lives for goodIn 2015 we will:• raise funds for work that transforms the lives

of people living in poverty;• build resilience of poor and excluded

communities to conflicts and disasters;• respond to humanitarian emergencies in a way

that builds local capacity and supports the long-term recovery of the community;

• help women to earn money and determine how their families’ and communities’ resources are used.

Take action for long-term changeIn 2015 we will:• campaign to end violence against women and girls;• continue to work with our partners in the Global

Campaign for Education to campaign for free, high quality education for every child;

• work with young people to tackle poverty and injustice;

• continue to campaign for tax justice across the world so that governments in poor countries have the revenue they need to fund development;

• rally supporters in the UK to push for legislation to cut down on corporate tax dodging.

Make ourselves stronger globallyIn 2015 we will:• play our full role in governance of the federation

through active participation in the International Assembly;

• work with colleagues across the federation to strengthen our systems, processes and ways of working so that we are even more effective in delivering on our mission and strategy;

• support other countries to raise funds from institutional donors;

• take on delegated responsibility on behalf of the federation for shaping our policy responses to emergencies and conflicts and raising funds from institutional donors for humanitarian work.

FUTURE PLANS

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The island of Malalison in the Philippines has no access to basic health facilities. ActionAid and its local partner consulted with the women on the island and they decided that they wanted a boat ambulance. The boat has basic medical equipment and can be used free of charge.


ActionAid International became a federation in 2003. By working together as a global partnership we know we can have a stronger impact.

Rather than emphasise the traditional divide between rich countries which raise funds and poorer ones which spend them, we choose to recognise the more complex modern reality, and strive to work together in a spirit of equality, democracy and accountability.

Within the countries in which the federation works, we seek to build partnerships with local organisations that share our values and mission. These organisations are deeply rooted in their communities, helping ensure that our work is relevant and effective.

We listen to the communities where we work and help them take action to address the causes of poverty and injustice in their community. We work with others to advocate and campaign on issues that communities face at local, national and international levels.

ActionAid is part of the ActionAid International federation. ActionAid raised £44 million in 2014 for other parts of the federation to deliver our shared global mission and strategy. The majority of this directly funded international programmes and projects, managed by our country offices and their local partners. The money raised also includes a grant of £7 million that we make to our International Secretariat. The secretariat manages the implementation of our global strategy and helps all federation members to work effectively. It includes our overall programme and humanitarian response teams, and all central quality control functions, as well as sharing learning and experience between different parts of the world, spreading best practice, and capacity development. We also lend staff members to the secretariat so their knowledge and skills can support the whole federation.

In the UK ActionAid raises awareness of development issues and campaigns in solidarity with people in other countries to help tackle the underlying causes of poverty.

ACTIONAID INTERNATIONAL: WORKING WITH PARTNERS

In San Carlos Alzatate, Guatemala, women who once lacked confidence to leave their homes are now learning to keep bees and produce honey, supported by ActionAid and partner ASODEMNA or New Dawn Women's Association.

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IncomeIn 2014 ActionAid’s income remained steady, dropping only 1% from 2013 to £62.8 million. This followed a 7% increase in 2013.

There were strong performances in a number of areas. For the second year running we successfully delivered an AidMatch appeal (“She Can”) where all income raised was matched by the UK Government. We met all of our targets for this appeal and four times more people gave to this appeal than to the 2013 appeal. Income from ECHO also increased (by29% to £5.2 million) including projects for disaster preparedness in Cambodia and Myanmar. We now have a balanced portfolio of income for both emergency relief projects and longer-term resilience work.

Our appeals for emergencies in the Philippines, Gaza, Syria and for the Ebola crisis were all effective. We were particularly proud of our response to Ebola. We committed early, contacted our supporters quickly and maintained high levels of publicity despite fluctuating media coverage.

Acquiring new supporters continues to be a challenge in the UK donor market, which is struggling to return to pre-2010 levels. The number of supporters who give a regular financial gift dropped by 5% to 128,358 and committed-giving income dropped by 2% to £33.8 million. However ActionAid still has an incredibly loyal supporter base and we are grateful for their continued backing for our fight against poverty and injustice.

ExpenditureActionAid spent £63.3 million in 2014, 88% on charitable activities (2013: 84%). Our charitable activities included supporting children to get a quality education, prioritising women’s rights, working with smallholder farmers on ending hunger, responding to emergencies and conflicts and tackling unjust tax and economic systems. This increase in spending is partly due to the spending of funds in 2014 that were accumulated in 2013 for emergency work.

In 2014, we spent 11% of our total income on raising additional money. We always carefully monitor the effectiveness of our fundraising investment and this low ratio reflects the decision to suspend some investment while a plan to improve our supporter acquisition programme took effect.

The proportion of expenditure on charitable activities, fundraising, governance and support costs changed between 2013 and 2014, as a result of adjustments in the way that we allocate costs. Further details can be found in the notes to the accounts.

ReservesReserves are funds that we are yet to spend. More detail on the classification of reserves can be found in section 1 of the notes to the accounts on accounting policies. Our supporters and donors expect that their money will help us to realise our vision in an appropriate timeframe and for this reason we do not hold excessive reserves.

Our restricted reserves represent funds received and designated for specific project work.

Our policy is to retain a minimum of 2.6 months of planned annual expenditure as general fund reserves. Our trustees believe that this balances the need to apply funds to our mission whilst ensuring there are sufficient funds to run our day-to-day business, to pre-finance some projects funded by the European Union and to protect us from unanticipated shocks.

Our general reserves are above the minimum level set by our policy and increased at the end of 2014 because income from DFID was received earlier than anticipated. These funds will be distributed in the early part of 2015.

Grant making policyWe grant our funds to the ActionAid International Secretariat for wider disbursement to the federation’s country programmes and their partners, according to the management agreement that exists between ActionAid and ActionAid International.

On occasion we make grants to other carefully selected charities where it is deemed that this is the most effective way of delivering our charitable aims.

ActionAid International’s financesThese accounts reflect the financial performance of the UK charity, which is a member of the ActionAid International federation. To find out more about ActionAid International’s work or finances, see: www.actionaid.org

FINANCIAL REVIEW


Trustees have identified and reviewed the major strategic, business and operational risks faced by the charity and are satisfied that reasonable steps are being taken to mitigate exposure and impact. Major risks identified are:• the hostile media and political environment, for

example, challenges from MPs and the press on charities’ right to campaign, and the Lobbying Act, 2014;

• the impact of the economic environment on our ability to raise funds cost-effectively and the implications of reduced resources available to deliver our strategy;

• in a time of austerity, the negative shift in the public’s perception of international development;

• the nature of any funding mechanism replacing DFID’s current PPA in 2016;

• fraudulent and / or inefficient spending in a campaign, programme or project within federation entities ActionAid donates to.

Mechanisms to identify, manage and mitigate the impact of risk include the annual planning process and maintaining a risk register which senior managers and trustees reviewed and updated during the year.

We have also paid particular attention to the management of certain financial risks over 2014 including credit checking, foreign exchange and liquidity to comply with Companies Act 2006 disclosure requirements.

How was the money spent?The chart below shows our 2014 expenditure split between raising funds, our charitable work and governance.

ActionAid has made grants to ActionAid International to assist country programmes deliver against our ambitious strategy and to strengthen our global federation. We also undertake activities in the UK in pursuit of our global mission.

Where does our money come from?We receive income from a number of sources and the proportions have not changed significantly from 2013, with committed giving from individuals as the largest element.

Funding from individuals is the best guarantee of our true independence as a charity.

Income (£m) 2014 2013

■ Committed Giving 33.8 34.6

■ Appeals, individuals and legacies 6.3 6.1

■ NGOs, Trusts and Companies 6.1 7.7

■ DEC 3.3 3.0

■ Government and EU (including DFID PPA) 13.2 12.2

■ Other 0.1 0.1

TOTAL 62.8 63.7

Expenditure (£m) 2014 2013

■ Raising funds 7.2 9.0

■ Governance 0.2 0.2

■ Charitable activities 55.9 48.4

TOTAL 63.3 57.6

0.1

2014 Total£62.8m

33.8

6.3

6.1

3.3

13.2

0.27.2

55.9

2014 Total£63.3m

PRINCIPAL RISKS AND UNCERTAINTIES

FINANCIAL REVIEW CONTINUED


Our accountability to those living in poverty is as important to us as the confidence our supporters have in us and how we use our resources.

The ActionAid Board of Trustees ActionAid’s Board of Trustees is charged with ensuring a sharp focus on our mission and values. We set the strategic direction, check our progress against strategy, ensure that we are financially sound so that our important work in communities around the world is sustainable, and make certain that we are compliant with all the relevant laws and regulations. We take seriously our responsibility to safeguard funds entrusted to us to change for good the lives of people living in poverty in the countries where we work. We have a zero tolerance policy on fraud and corruption.

The board delegates day-to-day decision-making and operations to the Executive Director and the Senior Leadership Team. The board meets formally at least four times a year, in addition to holding a two-day retreat to consider ActionAid’s strategic direction given the changing context in which international development charities operate.

There are four sub-committees of the board.

The Performance, Finance & Audit Committee is responsible for assurance oversight of the highest standards of integrity, financial reporting and internal control. In addition to reviewing organisational performance and results against plan, the committee also makes certain that ActionAid’s systems of financial control comply with Charity Commission guidelines and provide reasonable assurance against material misstatement or loss.

The Governance & Board Development Committee has responsibility for good governance according to the relevant Codes of Good Practice, considers governance issues, assesses the board’s composition and is responsible for the recruitment, training and induction of new trustees. The committee also oversees the annual governance review and manages the board development plan, which sets clear objectives for the board’s work plan and development.

The Remuneration Committee monitors the external environment in relation to remuneration, sets the overall salary policy accordingly and ensures that the Senior Leadership Team

implements the policy. The committee also sets the remuneration of the CEO and directors.

The Annual Remuneration Statement for 2014 that is approved by the Committee can be found below.

The ActionAid International Relationships Committee focuses on the relationships between ActionAid and the international policy, principles and governance structures.

The board chair and the committee chairs meet regularly as the Chairs Group to provide strong cohesive leadership and effective coordination.

The ActionAid board plays an active role in the ActionAid International Assembly, the top-level decision-making body in the federation. ActionAid International also appoints a representative to the ActionAid board with our agreement. The representative plays an invaluable, two-way role in ensuring effective communication. The AAI representative to the ActionAid board is the Chair of ActionAid Ghana. A member of the ActionAid board is also a member of the ActionAid International board.

Trustees, including the Chair, are recruited by open selection and are appointed for a three-year term, renewable for a further three years.

A skills audit allows us to maintain board diversity and skills that are appropriate to current and future challenges. There are regular governance reviews. Annual trustee appraisals ensure that trustees receive the information and development opportunities they need to make an effective contribution to ActionAid’s governance.

ActionAid International pays for Trustee Indemnity Insurance for the UK trustees.

Although it took place after the end of the financial year, ActionAid registered with the Office of the Scottish Charity Regulator in March 2015.

Trustee responsibilities for reporting and financial statementsThe trustees (who are also directors of ActionAid for the purposes of company law) are responsible for preparing the report of the trustees including the Strategic Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

GOVERNANCE, LEADERSHIP AND TRUSTEE DECLARATION


Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable company for that period. In preparing these financial statements, the trustees are required to:• select suitable accounting policies and then apply

them consistently;• observe the methods and principles in the

Charities SORP;• make judgements and 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; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial 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.

In so far as the trustees are aware:There is no relevant audit information of which the charitable company’s auditors are unaware; and the trustees have taken all steps that they ought reasonably to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website.

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Internal controlThe trustees have overall responsibility for ActionAid’s systems of internal control. Trustees recognise that systems of control can only provide a reasonable and not complete assurance against inappropriate or ineffective use of resources, or against the risk of errors or fraud.

Trustees remain satisfied that ActionAid’s systems provide reasonable assurance that the charity operates efficiently and effectively, safeguards its assets, maintains proper records and complies with relevant laws and regulations.

ActionAid operates a comprehensive accountability system. This includes annual planning, with plans approved by trustees and annual budgets. Trustees consider actual results compared with plans and forecasts, and non-financial performance data. Other controls include delegation of authority and segregation of duties. The internal audit function of ActionAid International reviews internal controls and submits reports to ActionAid’s Performance, Finance & Audit Committee.

Members guaranteeMembers of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2014 was 10 (2013 - 10).

AuditorsSayer Vincent LLP was reappointed as the charitable company’s auditor during the year. The firm is willing to continue in that capacity. The report of the trustees including the Strategic Report was approved by the trustees on 14 May 2015 and signed on their behalf by:

Margaret Casely-Hayford (Chair)

David Todd, FCA (Treasurer)

GOVERNANCE, LEADERSHIP AND TRUSTEE DECLARATION CONTINUED


1. SummaryThis is ActionAid’s annual governance statement for remuneration. The Director of People, Performance & Accountability and the Head of HR confirm that the organisation has complied with our salary policy during 2014.

There have been no compromise agreements, ex gratia payments, appeals or tribunals relating to employment or remuneration matters during the year.

2. Governance Arrangements for RemunerationThe Remuneration Committee of the Board of Trustees ensures that there is a formal transparent policy and process for setting the remuneration of all staff so that ActionAid can attract, retain and motivate individuals of the right quality while ensuring that salaries are fair and reasonable. This objective is achieved by ensuring that a robust pay and grading structure exists that is fit for purpose, consistently fair and is benchmarked at our targeted levels versus our chosen market (i.e. the not-for-profit and public sectors).

3. Remuneration Policies (Salary and Benefits)Remuneration policies on salaries and benefits were launched in early 2014. These were aligned to the organisation’s mission, vision and values but set within the objective context of the market place within which we operate. They are available for all staff to see and provide a transparent statement on how we deal with pay matters.

A key reference point from this (although not formally encapsulated in our salary policy) is the ratio between the highest and lowest paid employee – where we have achieved a commendable ratio across the whole organisation of 1:5.

We are an active member of the Charity Pay Club which meets twice yearly to share data/information and to benchmark salaries and benefits. We also use XpertHR and Croner to compare salaries with other organisations with a similar scope and scale. Taking data from a range of different sources produces a robust and consistent picture of the market in which we operate and allows us to identify the median level of base pay that others pay for similar roles at our job size level, functionality and location.

We are a Living Wage employer in both our Chard and London locations. In London we are also a London Living Wage employer. A summary of our remuneration policies is available on request.

4. Review of the YearExternal auditors reviewed the robustness of our governance arrangements relating to remuneration and we incorporated their recommendations and revised the terms of reference for the Board’s Remuneration Committee accordingly.

The Remuneration Committee met during 2014 to approve the new Remuneration Policies (Salary and Benefits) and discussed how to implement the NCVO guidelines on senior pay.

The annual pay negotiations with the Trade Union Side resulted in an agreed wage settlement of 2% (which was in line with our peer organisations).

Vacancies for Apprentices on the London Living Wage were advertised in job centres in order to give young people without higher educational qualifications an opportunity to enter the employment market on a reasonable level of base pay.

We successfully rose to the challenge of the major changes in pensions and have fully implemented auto enrolment.

5. Future PlansAs has already been agreed, a pension governance meeting will be held in 2015 and we will continue to benchmark salaries/benefits against other, similar organisations. This latter point will ensure that our pay provision remains objective, fair and consistent whilst also maintaining transparency.

ANNUAL REMUNERATION STATEMENT FOR 2014


We have audited the financial statements of ActionAid for the year ended 31 December 2014, which comprise the Statement of Financial Activities, Balance Sheet, 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 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 charitable company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditorsAs explained more fully in the statement of trustees’ responsibilities set out in the report of the trustees, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

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

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the report of the trustees including the Strategic Report

to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial 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 2014 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

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

Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the report of the trustees, including the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:• adequate accounting records have not been kept

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

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

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

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

Noelia Serrano (Senior statutory auditor) Date 15 May 2015

for and on behalf of Sayer Vincent LLP, Statutory Auditors 4th Floor, Invicta House, 108-114 Golden Lane, London, EC1Y 0TL

INDEPENDENT AUDITOR'S REPORT TO ACTIONAID MEMBERS


for the year ended 31 December 2014

STATEMENT OF FINANCIAL ACTIVITIES INCOME AND EXPENDITURE

Notes

Restricted funds £’000

Unrestricted funds£’000

Total2014

£’000

Total2013£’000

Incoming resources

Incoming resources from generated funds:

Voluntary income 2a 23,335 25,219 48,554 47,815

Activities for generating funds - 30 30 36

Investment income 2c - 30 30 19

Incoming resources from charitable activities:

Grants 2bi 13,681 463 14,144 15,752

Trading income from charitable activities 2bii - 33 33 40

Total incoming resources 37,016 25,775 62,791 63,662

Resources expended

Cost of generating funds:

Costs of generating voluntary income 4 37 7,200 7,237 8,999

Fundraising trading: costs of goods sold and other costs

4 - - - 1

Charitable activities 6 38,903 16,955 55,858 48,348

Governance costs 5 - 249 249 236

Total resources expended 38,940 24,404 63,344 57,584

Net (outgoing)/incoming resources for the year before transfers

(1,924) 1,371 (553) 6,078

Gross transfers between funds 15 (142) 142 - -

Net (outgoing)/incoming resources for the year before other recognised gains and losses

(2,066) 1,513 (553) 6,078

Exchange rate losses - (568) (568) (190)

Net (outgoing)/incoming resources for the year before other recognised gains and losses

(2,066) 945 (1,121) 5,888

Total funds brought forward at 1 January 7,416 7,307 14,723 8,835

Total funds carried forward at 31 December 5,350 8,252 13,602 14,723

The notes on pages 30-48 form part of these financial statements. There are no recognised gains and losses other than those shown above. Movements in funds are disclosed in notes 14 & 15 to the financial statement.

All incoming resources and resources expended derive from continuing activities

In 2014 ActionAid has re-analysed its allocation of expenditure between categories to better reflect the underlying nature of those activities. Figures for 2013 have also been re-analysed on the same basis but total income and expenditure are unchanged.


Notes2014

£’0002013

£’000

Tangible fixed assets 11 646 778

Current assets

Debtors 12 2,942 3,227

Cash at bank 15,225 16,316

Total current assets 18,167 19,543

Liabilities

Creditors: amounts falling due within one year 13 5,211 5,598

Net current assets 12,956 13,945

Net assets 13,602 14,723

Funds

Restricted funds

Income funds 15 5,350 7,416

Unrestricted funds

Designated funds 14 646 778

General funds 7,606 6,529

Total funds 13,602 14,723

as at 31 December 2014

BALANCE SHEET

Margaret Casely-Hayford David Todd, FCA(Chair) (Treasurer)

14 May 2015 Registered in England and Wales - company no. 01295174


Reconciliation of net (outgoing) / incoming resources to net cash inflow from operating activities

2014 £’000

2013£’000

Net (outgoing)/incoming resources before other recognised gains and losses

(1,121) 5,888

Depreciation 167 189

Decrease/(Increase) in debtors 285 (1,473)

(Decrease)/Increase in creditors (387) 431

Interest received (30) (19)

Net cash (outflow)/inflow from operating activities (1,086) 5,016

Cash flow statement

Net cash (outflow)/inflow from operating activities (1,086) 5,016

Interest received 30 19

Purchase of tangible fixed assets (35) (97)

Cash (outflow)/inflow before management of liquid resources (1,091) 4,938

(Decrease)/Increase in cash in the period (1,091) 4,938


CASHFLOW STATEMENT

Analysis of cash2013

£’000Cashflow

£’0002014

£’000

Cash at bank 16,316 (1,091) 15,225

Total cash and liquid resources 16,316 (1,091) 15,225


1. Accounting policiesBasis of accountingThese financial statements are prepared under the historical cost convention, and in accordance with the Companies Act 2006, Accounting and Reporting by charities: Statement of Recommended Practice and applicable Accounting Standards.

Trading SubsidiaryThere was no activity in the subsidiary undertaken in the year and therefore the accounts are not consolidated.

Country ProgrammesActionAid maintains legal ownership of a number of overseas country programmes which are no longer included in these financial statements. This treatment reflects the operational organisation of the programmes as their activities, assets and liabilities are under the direction of ActionAid International and are deemed to be ‘controlled’ by the ActionAid International board following internationalisation. Although assets may revert to ActionAid in the highly unlikely event that the internationalisation process is halted, the economic rights and obligations connected with country programmes have been transferred to ActionAid International under the terms of various formal agreements between the entities.

Fund accountingAll funds raised by ActionAid are used in the furtherance of its charitable objects. There are two types of funds as follows:• Restricted funds are raised on the basis of an agreement or understanding with the donors that their use

will be restricted to certain specified projects, activities or areas of operation. These restricted funds are accounted for separately.

• Unrestricted funds are those that are spent at the discretion of ActionAid’s trustees for use on any of the charity’s general charitable purposes. With the consent of the relevant donors, tax recovered through Gift Aid is generally treated as unrestricted.

Designated funds are unrestricted funds that have been set aside by the trustees for a specific purpose. ActionAid has one designated fund as at 31 December 2014, a fixed asset fund - the value of which represents the net book value of the fixed assets in the UK originally purchased from unrestricted funds.

The accounting for sponsorship and other committed giving income is in accordance with the information provided to supporters. For all child sponsorships commencing after 2003 income net of gift aid is restricted as follows: 20% is unrestricted; of the balance, 70% is restricted to benefit the community in which the child lives, 10% can be spent on wider activities in the same country,10% can be applied to international activities with the remaining 10% available to cover local sponsorships administration and information gathering.

ActionAid aims to make its income more flexible by encouraging supporters to transfer from child sponsorship to less restricted forms of giving over time such as Next Step. 20% of Next Step income is also unrestricted. Of the balance, 90% spent within the selected country, while 10% may be applied to international activities.

Incoming resourcesThe Statement of Financial Activities (SOFA) recognises incoming resources when ActionAid believes it is entitled to them, the income is judged virtually certain of receipt and the amount can be reliably quantified.


NOTES FORMING PART OF THE FINANCIAL STATEMENTS


Incoming resources continued Grants from the Department for International Development (DFID), Directorate General for Development Cooperation (EuropeAid) and European Commission Directorate General for Humanitarian Aid and Civil Protection (ECHO) are recognised when there is a formal agreement for their receipt and under this agreement ActionAid considers that all outstanding conditions relating to the receipt of income have been met and the amount of receipt can be ascertained with reasonable certainty.

Where donor specified conditions state resources received in the year must be spent in subsequent accounting periods, the resources are carried forward in creditors as deferred income under the terms of the agreement.

Gifts in kind are recognised when they relate to something that ActionAid would have paid for had they not been received for free and for which there is particular benefit. When this is the case, if the benefit to the charity is reasonably quantifiable and measurable, the gift in kind will be credited to income and debited to expenditure on the basis of the lower of a market-price valuation or the gross value to ActionAid and the corresponding expenditure is taken to the appropriate heading on the Statement of Financial Activities or is capitalised.

Legacy income is included in the Statement of Financial Activities when the charity is advised by the representative of an estate that payment will be made or property transferred, and the amount involved can be quantified.

Income is shown gross before any deduction of associated costs. An exception exists where sums are received from local fundraising groups in the UK net of direct expenses incurred by these groups. The amounts are not material in the context of ActionAid’s total income.

Resources expendedAll expenditure is accounted for on an accruals basis. Costs reported under each heading in the statement of financial activities reflect the allocation of activities directly attributable to that heading and an apportionment of support costs (see below).

The cost of generating funds represents expenditure incurred in the UK on raising funds from committed giving supporters, institutional donors, and other members of the public, but does not include the costs of disseminating information.

Charitable activities comprise:• Grants from ActionAid to ActionAid International to be spent on managing and delivering the long-

term development and emergency relief and rehabilitation projects in ActionAid International country programmes worldwide.

• Expenditure of funds received from the European Union for projects in country programmes.• Policy-influencing, campaigning and education work carried out in the UK and internationally.

Grants payable are accounted for when funds are transferred to the grant recipient, this being the point at which such funds become committed.

Governance costs are the costs associated with the governance arrangements of the charity. The costs included in this category relate to organisational administration and compliance with constitutional and statutory requirements.




Resources expended continued Support costs include expenditure on general management, payroll administration, budgeting and accounting, information technology, property management, communications, human resources and financing. Costs are allocated across the categories of the costs of generating funds and charitable expenditure. The basis of the cost allocation is staff numbers.

Irrecoverable VAT is not separately analysed and is charged to the SOFA when the expenditure to which it relates is incurred, and is allocated as part of the expenditure to which it relates. Tangible fixed assets and depreciation Tangible fixed assets costing more than £5,000 are capitalised and included at cost, including any incidental expenses of acquisition. Depreciation is calculated on a straight-line basis for the following categories of fixed assets: Office equipment: Computers 3 years Other equipment 5 years Leasehold improvements 15 years Leases Rentals applicable to operating-lease contracts, where substantially all the benefits and risks of ownership remain with the lessor, are charged to the statement of financial activities on a straight-line basis over the lease term.

Short-term bank deposits Short-term bank deposits are funds not instantly accessible at the balance sheet date. Pensions ActionAid contributes to a defined contribution pension scheme in the UK and contributions for the year are charged in the Statement of Financial Activities as they become due. Foreign currencies Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of transaction. All foreign currency balances have been translated at the exchange rate prevailing at the balance sheet date. Gains and losses on translation are included in the Statement of Financial Activities. Taxation and irrecoverable VAT As a registered charity, ActionAid is potentially exempt from tax on income and gains falling within Sections 466 to 493 of the Income and Corporation Taxes Act 2010 as its income is charitable and applied towards charitable purposes. In common with many other charities, ActionAid is unable to recover the majority of VAT that is incurred on purchases of goods and services in the UK. The amount of VAT that cannot be recovered is included within the appropriate underlying cost.




Related party disclosures The charity has taken advantage of the exemption that is conferred by Financial Reporting Standard 8: Related Party Disclosures, which allows it not to disclose transactions with group undertakings that are eliminated on consolidation. Related party transactions that do not fall within this exemption are detailed in note 18. Re-analysis of income, expenditure and activitiesIn 2014 ActionAid has re-analysed its allocation of costs between categories to better reflect the underlying nature of those activities. This change has allowed for the allocation of the costs of activities across more than one heading, for example the allocation of the salary costs of members of staff who work on both fundraising and programme work.

The figures for 2013 have also been re-analysed on the same basis but total income and costs are unchanged. The new analysis has also been used to inform the split of staff numbers in Note 8 to the accounts.

Small changes have been made to the allocation of income in notes 2 and 17 to accurately reflect income from various sources. These changes also correct mis-classification in the 2013 accounts.




2. Incoming resources



2 (a) Voluntary incomeRestricted

£’000Unrestricted

£’000

Total2014

£’000

Total2013£’000

Committed giving 18,399 15,384 33,783 34,599

Appeals and individual donors 1,973 2,281 4,254 4,432

Disasters Emergency Committee appeals - see below 2,941 369 3,310 3,027

UK government - Partnership Programme Arrangement (see note 17)

- 5,149 5,149 4,119

Legacies 22 2,036 2,058 1,638

Total voluntary income 23,335 25,219 48,554 47,815

Disasters Emergency Committee Appeals income

Pakistan Floods - - - 218

East Africa Crisis Appeal - - - 694

Syria Appeal 547 45 592 262

Philippines Typhoon Appeal 1,300 232 1,532 1,853

West Africa Ebola 705 49 754 -

Gaza 389 43 432 -

Total Disasters Emergency Committee 2,941 369 3,310 3,027

DEC is the umbrella body for the 13 leading charities in the UK responding to major international disasters. Its aim is to raise money cost effectively in the UK from the general public. The monies raised are distributed to the charities on the basis of an agreed formula reflecting the charities’ capacity and expertise.

All Emergency/ Non-emergency income by type - 2014Emergency

income

Non-Emergency

incomeTotal£’000

Incoming resources from generated funds:

Voluntary income 4,659 43,895 48,554

Activities for generating funds - 30 30

Investment income - 30 30

Incoming resources from charitable activities:

Grants (note 2bi) 5,181 8,963 14,144

Trading income from charitable activities (note 2bii) - 33 33

2014 Total 9,840 52,951 62,791

2013 Total 8,902 54,760 63,662

Emergency income fluctuates depending on the number and severity of emergencies. The non-emergency income figure shows how underlying income changes year on year.


2. Incoming resources



2 (b) Incoming resources from charitable activitiesRestricted


£’000

Total2014

£’000

Total2013£’000

(i) Grants

Grants from governments and other public authorities:

UK government (see note 17) 794 2 796 594

Europe Aid 1,197 65 1,262 2,812

ECHO 5,017 164 5,181 4,028

Government of Jersey 90 - 90 90

Government of Isle Of Man 25 - 25 20

Government of Guernsey 78 - 78 80

Dutch Ministry of Foreign Affairs (see note 17) 357 - 357 383

Others 225 27 252 74

Total grants from governments and other public authorities

7,783 258 8,041 8,081

Grants from companies, trusts and NGOs:

Big Lottery Fund (see note 17) 276 - 276 803

Comic Relief (see note 17) 317 - 317 485

Anonymous Trust 3,955 - 3,955 4,444

Other grants 1,350 205 1,555 1,939

Total grants from companies, trusts and NGOs 5,898 205 6,103 7,671

Total grants 13,681 463 14,144 15,752

(ii) Trading income from charitable activities

Sale of educational materials and fees for school talks - 33 33 40

Total income from charitable activities 13,681 496 14,177 15,792

(c) Investment income

Interest on deposits - 30 30 19


Restricted £’000

Unrestricted £’000

Total2014

£’000

Total2013£’000

Support costs comprise the following items:

Communications - 121 121 47

General management - 263 263 272

Finance 1 387 388 355

Human resources - 677 677 649

Information technology - 572 572 666

Office administration - 178 178 162

Performance and Accountability - 347 347 320

Property costs - 866 866 771

Supporter administration - 852 852 800

Total support costs 1 4,263 4,264 4,042

3. Support costs



Support costs have been allocated to the categories below on the basis of employee numbers working in each relevant area.

Restricted £’000


Total2014

£’000

Total2013£’000

Costs of generating funds (see note 4) - 1,432 1,432 1,543

Charitable activities (see note 6) 1 2,831 2,832 2,499

Total support costs 1 4,263 4,264 4,042


Costs of generating voluntary incomeRestricted


£’000

Total2014

£’000

Total2013£’000

Committed giving 17 3,939 3,956 5,575

Other voluntary income 3 1,370 1,373 1,442

Total costs of generating voluntary income 20 5,309 5,329 7,017

Costs of generating grant income 17 459 476 439

Support costs allocated (see note 3) - 1,432 1,432 1,543

Trading - - - 1

Total costs of generating funds 37 7,200 7,237 9,000

4. Costs of generating funds



Based on the above information and the incoming resources in note 2, the ratio between direct fundraising costs (excluding support costs allocated) and the income generated for each major area of voluntary income is as follows:

Total2014

%

Total2013

%

Committed giving 12% 16%

Other voluntary income 9% 11%

Overall voluntary income 11% 15%

Restricted £’000


Total2014

£’000

Total2013£’000

External audit fees - 38 38 28

Legal & professional fees - 17 17 31

Other (including trustee expenses) - 28 28 21

Apportionment of staff time - 166 166 156

Total governance costs - 249 249 236

5. Governance costs


Restricted £’000


2014£’000

2013£’000

Charitable grants to ActionAid International 31,526 7,916 39,442 34,025

ActionAid International (grants in kind representing support costs incurred on behalf of ActionAid International)

- 683 683 606

Charitable Grant to Other ActionAid 399 360 759 369

Remittances to country programmes for EU projects 3,311 - 3,311 3,837

Total grants to ActionAid International and ActionAid country programmes

35,236 8,959 44,195 38,837

Grants to partner organisations 3,308 - 3,308 1,062

Total grants (see note 7) 38,544 8,959 47,503 39,899

Expenditure incurred in the UK for EU projects (86) 88 2 395

UK Programme work 441 3,950 4,391 4,412

Programme support 3 1,127 1,130 1,143

Charitable activities 38,902 14,124 53,026 45,849

Support costs allocated (note 3) 1 2,831 2,832 2,499

Total Charitable activities 2014 38,903 16,955 55,858 48,348

Total Charitable activities 2013 32,706 15,642 48,348

6. Charitable activities



Total directcharitable activity

To see how ActionAid International allocates resources, including those raised in the UK, across the strategic themes refer to the ActionAid International Financial Report and Accounts.


Total 2014 £’000

Total 2013

£’000

Latin America and the Caribbean

Brazil 1,353 545

Ecuador 94 99

Guatemala 446 464

Haiti and Dominican Republic 515 560

Nicaragua 95 100

Peru 213 227

2,716 1,995

7. Grants to ActionAid International and ActionAid country programmes



Restricted funds:

Total 2014 £’000

Total 2013

£’000

Africa

Burundi 602 658

Democratic Republic of Congo 917 61

Ethiopia 1,823 1,030

Ghana 1,660 920

Kenya 1,647 2,400

Lesotho 247 288

Liberia 129 116

Malawi 1,048 1,036

Mozambique 497 617

Nigeria 1,252 594

Rwanda 519 477

Senegal 248 270

Sierra Leone 759 783

Somaliland 396 430

South Africa 285 298

Tanzania 162 277

The Gambia 959 991

Uganda 1,164 1,436

Zambia 162 143

Zimbabwe 196 177

14,672 13,002

Restricted funds:

Total 2014 £’000

Total 2013

£’000

Asia

Afghanistan 601 566

Bangladesh 653 750

Cambodia 433 451

China 173 238

India 2,763 3,542

Myanmar 466 482

Nepal 699 607

Pakistan 801 974

Palestine 606 -

Philippines 2,074 -

Vietnam 451 563

Syria 509 567

10,229 8,740


Total2014

£’000

Total2013£’000

Charitable grant to other ActionAid 399 369

ActionAid International - projects involving more than one country 3,909 2,852

Remittances to country programmes for EU projects 3,311 3,837

Total restricted funds 35,236 30,795

Unrestricted funds:

ActionAid International (cash grants) 6,996 6,579

Country Programmes (grants designated as part of Department for International Development Programme Partnership Arrangement)

920 857

Unrestricted charitable grants to ActionAid International 7,916 7,436

ActionAid affilliates 360 -

ActionAid International (grants in kind representing support costs incurred on behalf of ActionAid International)

683 606

Total unrestricted funds 8,959 8,042

Total grants to ActionAid International and ActionAid country programmes

44,195 38,837

Grants to partner organisations:

Action Contre La Faim 154 -

ADRA Deutschland 246 -

Christian Aid 286 -

Concern Universal 176 -

Concern Worldwide 134 336

Dan Church Aid 210 -

Help Age 129 -

Islamic Relief 189 195

Oxfam 639 152

People in Need 203 -

Peuples Solidaires - 111

Plan International 362 -

Save the Children 122 -

UN Habitat 142 -

Restricted grants (individually under £100,000) 316 268

Total restricted grants to partner organisations 3,308 1,062

Total grants 47,503 39,899

7. Grants to ActionAid International and ActionAid country programmes continued




Total remuneration of employees (full-time and part-time) was:Total 2014

£’000Total 2013

£’000

Gross wages and salaries 6,619 6,333

Social security costs 678 646

Pension contributions 556 473

Total 7,853 7,452

The number of staff whose emoluments are greater than £60,000 are shown below

2014Number

2013Number

£60,001 - £70,000 7 3

£70,001 - £80,000 1 1

£80,001 - £90,000 1 -

£90,001 - £100,000 1 1

Total 10 5

Total2014

Total2013

The average full time equivalent number of employees during the year was:

Charitable activities 78 67

Fundraising 42 47

Support staff 45 46

Total 165 160

8. Particulars of employees



The average number of staff in the year was 176 (2013: 171)

ActionAid’s Executive Director was the highest paid employee in the year and received the following remuneration in 2014: £92,665 salary (2013: £91,927). In addition £9,312 (2013: £9,114) was paid into a defined contribution pension scheme on his behalf. The remuneration of the Directors of ActionAid fall within the following bands; £60,001 - £70,000 - Director of Finance and Central Resources and the Director of Communications; £70,001 - £80,000 - Director of Policy, Advocacy and Campaigns, and the Director of People, Performance and Accountability; £80,001 - £90,000 - Director of Fundraising.

Of those employees who earned £60,000 or more during the year (as defined above) employer contributions were made to defined contribution pension schemes in respect of ten (2013: five) employees. During the year this amounted to £71,291 (2013: £43,552).

ActionAid has an expenses policy in place which controls what can and cannot be claimed by trustees, staff and volunteers. Expenses can only be claimed if they have been incurred for valid and necessary business purposes. They will only be paid if they are on the approved list of allowable expenses, have been authorised and have supporting documentation. Inevitably ActionAid incurs significant costs on overseas trips but travel must always be by the most cost effective method. All trips are for valid business reasons and ActionAid is constantly seeking new ways to avoid overseas travel and find alternative ways to communicate and manage the business.

In 2014 Richard Miller, the Executive Director incurred costs of £5,865 (2013: £5,897).

For more information on the principles and implementation of our remuneration policies, please see the Annual Remuneration Statement for 2014 (page 24).


Leasehold improvements

£’000

Office equipment

£’000Total£’000

Cost

At 1 January 2014 609 1,005 1,614

Additions - 35 35

At 31 December 2014 609 1,040 1,649

Depreciation

At 1 January 2014 139 697 836

Charge for year 41 126 167

At 31 December 2014 180 823 1,003

Net book value

At 31 December 2014 429 217 646

At 31 December 2013 470 308 778



9. Trustees’ remuneration No remuneration or other payments have been made to the trustees of ActionAid for their services as board members or for other services provided to the organisation in 2014 or 2013. The most significant element of trustees’ expenses is the cost of visits to country programmes but also includes attendance at board meetings (both ActionAid and ActionAid International). In 2014, 7 trustees incurred a total of £8,230 (2013: £6,746 was paid to ten trustees) through expenses reimbursed and costs incurred by ActionAid on their behalf.

2014£’000

2013£’000

Net incoming resources are stated after the following charges:

Operating lease rentals - property 544 423

Auditor's remuneration - statutory audit current year 34 33

Auditor's remuneration - statutory audit prior years (2) (12)

Auditor's remuneration - other services (VAT review) - 3

10. Incoming resources before transfers

11. Tangible fixed assets

All tangible fixed assets held by the charity and the group are for furtherance of charitable objectives and not for investment purposes.


Balance as at 1 January

2014 £’000

New designa-

tions£’000

Utilised in the year

£’000

Balance as at 31

December 2014

£’000

Designated funds

Tangible fixed assets fund 778 35 (167) 646

14. Designated funds



2014£’000

2013£’000

Accrued income 2,712 1,928

Other debtors 30 47

Prepayments 171 45

Tax recoverable 10 1,189

Amounts due from employees 19 18

Total debtors 2,942 3,227

12. Debtors

Amounts due from employees represents floats for overseas visits forming part of the employee’s role and season ticket loans.

2014£’000

2013£’000

Amounts falling due within one year:

Interest-free loans 63 63

Trade creditors 521 587

Accruals 797 852

Other creditors 200 -

Amounts due to ActionAid International 2,929 3,906

Taxation and social security 209 173

Deferred income 492 17

Total creditors 5,211 5,598

13. Creditors

Designated tangible fixed assets fund: The fund for fixed assets represents the net book value at the balance sheet date of unrestricted tangible fixed assets. This fund is not therefore available for current expenditure, as the assets are used in the day to day operation of the charity.


15. Restricted funds



Balance as at 1

January 2014 £’000

Income£’000

Transfers£’000

Expenditure£’000

Balance as at 31

December 2014

£’000

Africa 135 16,524 - 15,907 752

Asia 2,741 13,181 5 13,410 2,517

Latin America and the Caribbean 32 2,710 - 2,742 -

International projects and other funds 4,508 4,601 (147) 6,881 2,081

Total restricted funds 7,416 37,016 (142) 38,940 5,350

Restricted funds: Restricted funds held by ActionAid at the start and end of the year include funds for European Union funded projects. ActionAid also holds funds for a small number of projects or activities which are managed by ActionAid directly. All other incoming resources are granted to ActionAid International on receipt as ActionAid International is the entity within the ActionAid family which holds and manages the vast majority of restricted funds.

The expenditure in the table above includes direct payments made to country programmes for EU funded projects. At the year end date some funds sent directly to country programmes may not have been entirely spent.

In 2014, the regional split of restricted reserves has been analysed in a different way to allow for a more accurate allocation of funds between regions. This has allowed a more accurate allocation where funds have been utilised in more than one geographic location in a single project, particularly in the case of EC projects. However, the overall restricted fund balances at the end of 2013 have not changed. As a result of this, the opening balances for Africa region have decreased by £68k, for Asia region have increased by £233k, for Latin America and the Caribbean have increased by £9k and for International projects and other funds have decreased by £174k. In addition, the Africa opening balance has been further reduced and the Asia balance increased by £84k as a result of a misallocation of a remittance relating to the EC Empowering Women, Girls project in Tanzania to Thailand in a previous year.

Transfers: The net transfers figure is made up of two types of transaction:1) Transfers from restricted to unrestricted reserves (£289k) which all relate to outstanding balances on very

old, completed restricted projects. On investigation it has been concluded that all final donor reports have been submitted for these projects and no outstanding liability exists. Management concludes thereforethat the positive reserves balances arose as a result of previous mis-allocation of costs in the accounting system to unrestricted reserves rather than the correct project reserves. This transfer represents the correction of those previous mis-posting from prior years.

2) Transfers from unrestricted to restricted reserves of £147k which relates to the previous mis-posting of unrestricted expenditure to a restricted project. This transfer corrects that previous mis-posting.




Balance as at 31 December

2014 £’000

Balance as at 31 December

2013 £’000

The balances on restricted funds at the year end are made up:

EuropeAid and ECHO funded projects 2,293 3,125

Other projects managed by ActionAid 3,057 4,291

Total restricted funds 5,350 7,416

15. Restricted funds continued

Projects funded by the European Commission are generally development projects intended to run for several years; projects funded by the European Commission Humanitarian Aid Office are short term emergency relief projects. Projects may be based in one country or may be initiatives spanning a number of countries internationally. Fund balances may be negative when expenditure is made on a project that is expected to be reimbursed by a government or other agency, but where, at the end of the financial year, not all the conditions have been met that would justify this income being recognised within the accounts. This results in an excess of expenditure over income on some project funds at the year end point. The total deficit fund balances at the year end amounted to £0.4m (2013: £0.1m). The trustees consider that the likelihood of reimbursement is sufficient to justify carrying the deficit fund balances at the end of the year for all projects in deficit.

RestrictedIncome

£’000Designated

£’000General

£’000

Total 2014£’000

Fund balances at 31 December 2014 are represented by:

Tangible fixed assets - 646 - 646

Current assets 8,094 - 10,073 18,167

Current liabilities (2,744) - (2,467) (5,211)

Total funds 5,350 646 7,606 13,602

16. Analysis of net assets between funds




17. Grants receivedGrants received in 2014 from the UK Department for International Development:

2014£’000

2013£’000

Partnership Programme Arrangement (PPA) 5,149 4,119

Total voluntary income 5,149 4,119

Enhancing Community Resilience Programme (funds received through Christian Aid) 316 400

NGO Humanitarian Reform Project - 100

Ready for Anything DFID Aid Match 415 94

Braced Ethiopia development (Funds received through Christian Aid) 27 -

SHE-CAN DFID Aid match 31 -

Others 7 -

Total incoming resources from charitable activities 796 594

Total grants received from the UK Government 5,945 4,713

As per the Partnership Programme Arrangement with DFID, the amount of income due to ActionAid in DFID’s financial year of April to March is £4,119,005. However, during ActionAid’s financial year from January to December, five tranches were received due to the fact we received the final tranche of £1,029,751 for DFID finanical year 14/15 in December 2014, rather than in January as has happened previously. Under the provisions of the SORP we are required to recognise this income when we receive it. Expenditure of these grants has been in accordance with the terms agreed with DFID. The Partnership Programme Arrangement income represents 8% of ActionAid UK’s total income.

Grants received in 2014 from Comic Relief were as follows:2014

£’0002013£’000

Transforming Girls Education in Nigeria and Tanzania - 60

Reducing Sexual Exploitation of Girls In Recife, Brazil 156 223

Kenya HIV Aids CRF - 27

Empowering lesbian activists to create safer communities, South Africa 161 175

Total grants received from Comic Relief 317 485

Grants received in 2014 from the Big Lottery Fund were as follows:2014

£’0002013 £’000

Violence against Girls in schools (Multi country) - 657

Access to Justice for women in Liberia (Development Grant) 10 -Empowering women and girls in Somaliland to claim their rights (Somaliland) 113 140

Improving food security and economic opportunities for women farmers in Muko, Rwanda

143 6

Sign up! Mozambique (Development Grant) 10 -

Total grants received from the Big Lottery Fund 276 803




17. Grants received continuedGrant received in 2014 from The Dutch Ministry for Foreign Affairs was as follows;

2014£’000

2013 £’000

FLOW Women’s rights to sustainable livelihoods (Ghana & Rwanda) 357 383

18. Related party transactionsActionAid recognises ActionAid International and other members of the ActionAid group as related parties. Andrew Purkis is a trustee of ActionAid International. As noted in the constitution and governance section of the report of the Board of Trustees, ActionAid International is entitled to appoint one trustee to ActionAid’s Board. The designated Trustee is Marilyn Aniwa who is also the Chair of ActionAid Ghana. See page 23 on governance arrangements connecting ActionAid and related parties. Material transactions between the entities are shown below.

2014

£’0002013 £’000

Grants to ActionAid International 40,125 34,631

Grants to ActionAid Ghana - -Grants to other ActionAid Federation members 4,070 4,206

Total related party transactions 44,195 38,837

See note 7 for details of grants to ActionAid International.

See note 13 for creditor balances owed to ActionAid International at the balance sheet date.

19. Subsidiary undertakings ActionAid has one subsidiary undertaking:

ActionAid Enterprises Limited

A wholly owned subsidiary incorporated in Great Britain and registered in England and Wales (No. 5011412).

The total investment in the subsidiary is £1 (2013: £1).

There was no activity undertaken in the subsidiary in 2014.




20. Obligations under operating leasesThe charity had annual commitments at the year end under operating leases expiring as follows:

2014£’000

2013 £’000

In two to five years 69 -

After 5 years 524 481

Total obligations under operating leases 593 481

21. Contingent assets and liabilitiesActionAid originally set up most of ActionAid International’s country programmes and as such still owns the assets of those entities that have not subsequently become affiliates. Country programmes are now managed by ActionAid International rather than ActionAid. The change in accounting policy regarding country programmes in 2007 means that country programme assets are no longer included in these accounts. However, ActionAid retains the legal right to take back management of its country programmes from ActionAid International under a termination clause incorporated into the legal agreements in place over management of country programmes. Therefore ActionAid has contingent assets in the form of the assets held by those country programmes which were originally set up by ActionAid. No situation exists, or is anticipated to occur, whereby ActionAid would exercise its right to terminate the agreements with ActionAid International, however the legal position is stated here to give a full picture of the assets of ActionAid. It is not practical to estimate the value of assets which would revert to ActionAid control and would be included in the accounts. However, the funds held in ActionAid country programmes at the year end but not included in these accounts were £24.2m (2013: £22.7m). There also exist potential contingent liabilities for ActionAid relating to the country programmes which are legally owned by ActionAid. Such a liability would only impact ActionAid if ActionAid International had insufficient funds in hand to discharge the obligations of a country programme. ActionAid believes such a circumstance is improbable and any notional exposure cannot be reasonably estimated. ActionAid International has fully indemnified ActionAid against all actions, proceedings, claims, demands, costs and awards arising in respect of the activities of any ActionAid branch and country programme, and against all loss in relation to any assets it holds on trust for, or manages on behalf of ActionAid. As at the year end there were a number of projects on which funds are outstanding from the donor pending finalisation of donor audits. Amounts disallowed are generally insignificant as a proportion of overall project budgets and in any event these amounts are considered to be fully recoverable as they are covered by ActionAid International.


ActionAid is a full affiliate member of ActionAid International. ActionAid International is an association registered in The Hague (Netherlands) with its international secretariat and head office in Johannesburg, South Africa.

Board of trustees Date of appointment or resignation

Margaret Casely-Hayford Chair appointed as trustee June 2014, appointed as Chair November 2014

Patricia Whaley Vice Chair resigned as Hon Treasurer October 2014

David Todd Hon Treasurer appointed October 2014Marilyn Aniwa ActionAid International

representative on ActionAid Boardappointed March 2014

Catharine Brown appointed March 2015Colin Byrne appointed March 2015Alex Cobham appointed May 2015Rosalind Eyben ActionAid representative in the

International AssemblyGiles Fernando resigned March 2014Mike ForrestJane Esuantsiwa Goldsmith resigned as Vice Chair and from

Board June 2014Joanna Maycock appointed December 2014Frank McLoughlin CBE resigned March 2014John MonksGemma PetersAndrew Purkis OBE Also sits on the ActionAid

International Boardresigned as Chair November 2014

Jane Buckley Sander resigned March 2014

Governance & Board Development Committee Date of appointment or resignation

Rosalind Eyben interim Chair appointed June 2014 – February 2015Patricia Whaley Chair appointed February 2015Margaret Casely-Hayford resigned as Chair and from

committee June 2014Jane Esuantsiwa Goldsmith resigned as Chair and from

committee June 2014Giles Fernando Andrew Purkis OBE

CORPORATE DIRECTORY


AAI Relationships Committee

Rosalind Eyben ChairMarilyn Aniwa Margaret Casely-Hayford Jane Esuantsiwa Goldsmith co-optedAndrew Purkis OBE

Remuneration Committee Date of appointment or resignation

Andrew Purkis OBE Chair resigned December 2014Margaret Casely-Hayford Chair appointed December 2014

Patricia Whaley resigned October 2014

David Todd appointed October 2014

Further information about trustees is available on the ActionAid website www.actionaid.org.uk/about-us/uk-trustees.

CORPORATE DIRECTORY continued

Principal Officers• Richard Miller, Executive Director

(resigned March 2015)• David Alexander, Executive Director

(appointed March 2015)• Janet Convery, Communications Director• Judith Davey, People, Performance &

Accountability Director• Steve Eddy, Financial & Central Resources

Director• Helen McEachern, Fundraising Director• Nuria Molina, Policy, Advocacy & Campaigns

Director (on maternity leave from February to September 2014)

• Jenny Ricks, interim Policy Advocacy & Campaigns Director (from March to September 2014)

PatronHis Royal Highness, the Prince of Wales

Legal and Administrative Information

AuditorsSayer Vincent LLP 4th Floor, Invicta House108-114 Golden Lane, London, EC1Y 0TL

SolicitorsBates, Wells & Braithwaite LLP2-6 Cannon Street, London, EC4M 6YH

BankersThe Co-operative Bank plcCharity & Social Enterprise Banking4th Floor, Prescot Street, London E1 8AZ

Registered Office33-39 Bowling Green Lane, London, EC1R 0BJTel: 0203 122 0561E-mail: [email protected]: www.actionaid.org.uk

Performance, Finance & Audit Committee Date of appointment or resignation

David Todd Chair appointed October 2014Mike Forrest resigned March 2014Sue Logan co-optedJohn MonksGemma PetersPatricia Whaley resigned as Chair in October 2014

Documents

2014 Trustees’ Report and Accounts - ActionAid UK · Corporate directory 49 ActionAid is part of ... Asia and Latin America, to ... 4 ActionAid Trustees’ Report & Accounts 2014