cafod reports of the trustees and financial statements 2013 - 2014
TRANSCRIPT
Report of the Trustees and Financial Statements
For the year ended 31 March 2014
Contents
Report of the trustees pages 2 -30
Letter from the Chair page 2
The year in pictures page 4
Objectives and activities page 6 Achievements and performance page 8
CAFOD’s priorities for 2014-15 page 21
Financial review page 25
Structure, governance and management page 28
Auditors’ report page 31
Statement of financial activities page 33
Balance sheet page 35
Cash flow statement page 36
Notes to the financial statements pages 37 - 52
Organisational details page 53
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Letter from the Chair
CAFOD believes working in partnership with local organisations is the best way of expressing the Catholic community’s solidarity with the worlds’s poorest and most disadvantaged people. Last year we saw many powerful examples of how partnership can bring about the change needed for people’s lives and livelihoods to flourish.
During my recent visit to the Philippines in the aftermath of Typhoon Haiyan I witnessed how CAFOD worked as a key part of Caritas Internationalis’ global network of agencies. With the vast knowledge, network of contacts, volunteers and relationships held by our Caritas sister agency in the Philippines, we were able to focus our response efforts with speed and sensitivity, reaching devastated communities within days. CAFOD secured money from the British Government’s Rapid Response Fund and offered its emergency expertise.
In our advocacy work, we listened to communities and asked them what should replace the Millennium Development Goals (MDGs) after 2015. These discussions helped form our negotiations with the UN High Level Panel and the Open Working Group on Sustainable Development Goals. We continue to learn so that our work may be all the more effective.
This year our work with local partners and communities really made tangible differences for so many. For example, in Afghanistan, women started working together to set up small businesses. In Zimbabwe children no longer had to walk 7km to collect water before beginning their long walk to school. In Bangladesh communities were better equipped to deal with flooding and in Brazil the land is now better protected from illegal logging. Developments such as these are evident in all 40 countries where CAFOD has partners.
The value of solidarity and working together is most evident in the people and communities I meet. When I travelled to Brazil I met CAFOD partners tackling the appalling housing conditions of the favelas in São Paulo. I met a no-nonsense lady called Maria who was living in one of the occupations – a derelict building taken over for housing. Maria worked hard to give her children a good life, holding
We were able to focus our response efforts with speed and sensitivity, reaching devastated communities within days.
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Acting in solidarity is the only way we can bring about a world transformed by Gospel values, which can build the Kingdom of God.
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down a job and keeping her small flat clean and tidy, but she needed cancer treatment in a hospital that was miles away. The authorities told her she wouldn’t be able to look after her children. Maria’s neighbours, in a wonderful act of generosity and compassion, took her children in.
A crisis or humanitarian disaster experienced by any part of our human family is a concern and a responsibility of each and every one of us. Therefore acting in solidarity is the only way we can bring about a world transformed by Gospel values, which can build the Kingdom of God. I am proud of the way CAFOD, on behalf of the Catholic community, plays its distinctive part and proud, too, of every person who so generously makes its work possible.
Rt Rev John ArnoldAuxiliary Bishop in Westminster, Chair of trustees
The year in pictures
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What we spent…
What we received…£36m of our income was raised by our supporters
£24mLong-term international developmentWe spent £24m on projects to help people find a way out of poverty. It included help to women and men to get safe drinking water, to set up small businesses, to grow crops despite drought and floods, and to support people who have HIV and AIDS..
£15m Disaster and emergency reliefWe spent £15m on helping people who had been affected by disasters, providingsafe spaces for children, food and water, shelter and emergency hygiene packs.
Fred Uttley took on an epic 1,000 mile cycle ride to raise money and awareness.
£0.3m came from interest and other income
£12mcame from the UK Government and other institutions
“Together, we can be powerful enough to achieve great things.” Caroline Flint MP, Shadow Secretary of State for Energy & Climate Change
Women regularly come together in savings groups in Afghanistan. Here, supported by Caritas USA, they learn numeracy and business skills.
Bangladesh: Preparing fordisasters is key. Sabita Biswas, from Bangladesh, with a rainwater collection system.
Philippines: After Typhoon Haiyan, we provided buckets, towels, soap and water purification tablets.
Ethiopia: Giving people like Philipos Funto from Ethiopia the tools and knowledge they need helps them grow crops despite a changing climate.
Syria: More than one million children fled Syria as refugees and we helped provide child-friendly spaces where they could escape their daily difficulties.
Brazil: In São Paulo, thousands of people were helped to access basic services, housing programmes, electricity and sanitation.
South Sudan: More than 850,000 people left their homes as a result of the conflict We provided items such as toilets, emergency shelter kits, and kitchen materials.
£3mcame from Caritas members and other Catholic agencies
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£6mFundraising & GovernanceWe spent £6m on the costs of raising income and on the general running of the charity.
10,000 people bought world gifts last year.
Campaigners deliver signatures to the Houses of Parliament in May urging David Cameron to act against world hunger.
£4m AdvocacyOur Hungry for change campaign helped build momentum behind securing £2.7 billion by G8 countries to tackle malnutrition between now and 2020.
Pupils from St Alban’s Catholic Primary School working on responsibility for the world, and ways they could help take care of it.
£3m EducationWe spent £3m on educating and mobilising Catholic schools and parishes reaching hundreds of thousands of children, young people and adults, sharing information on the causes of poverty and injustice in the world.
Expenditure – in 2013/14 we spent £51m
n International Development (47%)
n Disaster Relief (28%)
n Development education (5%)
n Advocacy and campaigning (8%)
n Generating funds & governance (12%)
5%
8%
12%
47%
28%
Objectives and activities
n Our vision is a world transformed to reflect the Kingdom of God – a world where:
> the rights and dignity of every person are respected
> all have access to basic needs in life
> women and men share equally in shaping their societies and our world
> the gifts of creation are nurtured and shared by all for the common good
> the structures that shape people’s lives are just, and enable peace.
n Our mission
CAFOD is the official aid agency of the Catholic Church in England and Wales, and part of the global Caritas Internationalis (CI) family. Together with our partners and the global Caritas family we:
> work with poor and disadvantaged communities in the global South to overcome poverty and bring about sustainable development and wellbeing
> protect lives and relieve suffering during emergencies; reduce the risks to vulnerable communities that result from conflict and natural disasters
> raise awareness and understanding of the causes of poverty and injustice to inspire a commitment to lasting change
> challenge those with power to adopt policies and behaviour that promote social justice and end poverty.
To fulfil this fourfold mission we raise funds and mobilise action with the Catholic community and beyond.
n Our values
> Compassion > Hope
> Dignity > Sustainability
> Partnership > Solidarity
> Stewardship
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CAFOD is the official aid agency of the Catholic Church in England and Wales, and part of the Caritas Internationalis family.
n Activities
In fulfilling our mission we work in more than 40 countries worldwide. The majority of our work is done in partnership with local communities in the global South, with sister agencies across the world and with the Catholic community in England and Wales. Together with our partners we strive to reduce the impact of poverty, to address and challenge its root causes and to empower people to bring about change for themselves.
n Progressing our priority areas in 2013/14
Our strategic framework, Just One World, provides a focus for our work up to 2020. It sets out four aims:
Increasing power and influence, so that women and men in the poorest and most disadvantaged communities are able to influence the systems, decisions and resource allocations that affect them and have governments, institutions and global structures that are just and accountable.
Promoting sustainable development, so that women and men in the poorest and most disadvantaged communities have access to the essential services and resources they need to live sustainably and with dignity.
Achieving peace, security and recovery, so that women and men in the poorest and most disadvantaged communities live in a safe and secure environment and are able to minimise, survive and recover from crises.
Building our partnerships in the Catholic community, so that Catholics in England and Wales are inspired to challenge global poverty through prayer, action and giving; so transforming their own lives.
Our mission impels us to work with the poorest and most disadvantaged communities in Africa, Asia, Latin America and the Middle East. The following pages provide an update on the progress we made towards these aims with the support of our partners during 2013/14.
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Together with our partners we strive to reduce the impact of poverty, to address and challenge its root causes and to empower people to bring about change for themselves.
Aim 1
Aim 2
Aim 3
Aim 4
Aim 1
Achievementsand performance
Increasing power and influence of women and men in the poorest and most disadvantaged communities
n What we set out to achieve this year
A fairer food systemIn 2013/14 we aimed to further our policy objectives on finance, tax, transparency and land, and achieve public engagement on the deep-rooted issues of food and hunger.
Joined-up campaigning Last year, as a founding member of the Enough Food for Everyone IF… campaign, CAFOD joined with 200 organisations to urge Prime Minister David Cameron to use the G8 meeting in June 2013 to make positive, long-lasting changes to the failing global food system.
Through our own Hungry for Change campaign we also asked the Prime Minister for better aid for small-scale farmers and better accountability on the part of global food companies. Thousands of CAFOD supporters took part in activities and lobbied MPs to raise awareness on the issue of world hunger through Hungry for Change picnics, with more than 60,000 supporters signing demands for action. Our religious lobby of Parliament in May saw more than 50 MPs, including the leader of the Labour party and Ministers from The Department for International Development, meet 250 religious sisters and clergy, while around 45,000 people – including thousands of CAFOD supporters of all ages from across England and Wales – attended the Big IF rally in Hyde Park.
Our activity helped build crucial momentum behind the following changes.
Transparency on tax and tackling corruptionOverseas territories and Crown dependencies agreed to share tax information in June 2013. If this agreement is honoured, developing countries can collect the money they are owed by companies operating within their borders and use it on infrastructure investment, including agriculture. The commitment by the UK to create a register of beneficial owners – where companies supply information on who really owns, controls and benefits from companies – was a step forward.
The Nutrition for Growth event in June secured £2.7 billion to tackle malnutrition between now and 2020; however, it fell short by failing to deliver new policy commitments to address small farmers’ needs.
While it is not possible to gauge precisely the impact of our advocacy and campaigning work on these decisions, the dozens of meetings we had with MPs, government ministers, advisers and EU officials, and CAFOD’s
Thousands of CAFOD supporters took part in activities and lobbied MPs to raise awareness on the issue of world hunger, with more than 60,000 supporters signing demands for action.
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lead role coordinating the IF coalition’s media work kept vital pressure on the need to act.
Inspiring new supportersSince June 2013, CAFOD has seen over 7,800 new CAFOD supporters taking campaign actions – many on the issue of hunger. Rita Belletty of Portsmouth diocese said: “I organised many card signings in my parish because this is an issue that matters deeply to me and thousands of others like me. Together we’ve called out for justice in solidarity with our brothers and sisters around the world who go to bed hungry every night. By joining together, we are so much more powerful.”
n Post-2015 Sustainable Development Goals
We planned to take a lead role in the post-2015 process to decide what succeeds the Millennium Development Goals through promoting the issues prioritised by people living in poverty. We supported wider Catholic networks to engage in lobbying and advocacy work to influence both national governments and the UN High Level Panel on the post-2015 Development Agenda.
In 2015 world leaders will agree the framework to replace the Millennium Development Goals (MDGs). Their decisions will affect the lives of millions of people.
As a member of Participate, a global initiative to bring the voices of people living in poverty into the post-2015 debate, CAFOD worked with four partners in Bolivia, Uganda, Zimbabwe and the Philippines to help ordinary people share their daily reality. The global research involved 1,420 people in 56 poor communities and provided a wealth of insight on very practical, achievable suggestions to be fed into the post-2015 agenda. The research has been used in discussions with the UN High Level Panel on the post-2015 Development Agenda, and the Open Working Group on Sustainable Development Goals.
n Influencing change through the Church
Caritas Internationalis (CI) – a federation of Catholic sister agencies (including CAFOD) in 160 countries and territories – works on behalf of poor communities to eradicate poverty and injustice. As part of this federation, CAFOD coordinated a Caritas Internationalis Task Force on the post-2015 Sustainable Development Goals, helping partners speak with a unified voice and increase their lobbying power with national governments.
The Catholic Church is a key actor in global efforts to reach a climate agreement – an expectation expressed in discussions at the Warsaw UN Conference of the Parties in December 2013. CAFOD contributed to this through its work with CIDSE (the Catholic network of development agencies in Europe, Australasia and North America) and Caritas Internationalis, which has enabled the Church to have a clear moral voice at key points in the climate negotiations.
Through the CAFOD-supported Peace in the Great Lakes Region initiative, the Anglican and Catholic churches of Rwanda, Burundi and the Democratic Republic of Congo (DRC) continued their joint advocacy work for peace in the region.
...research has been used in discussions with the UN High Level Panel on the post-2015 Development Agenda.
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The initiative, involving the Catholic, Episcopalian, and Diocesan justice and peace commissions in the three countries empowers border communities to solve their conflicts non-violently. This year, conflict resolution and open days for women from Goma (in DRC) and Giseny (in Rwanda) enabled them to be at the forefront of advocating for peace and creating long-lasting cooperation. Many other international organisations joined the initiative this year by contributing financially and offering technical expertise to the campaign.
n Communities influencing decision-makers
In 2013/14, increasing the influence of partners and communities on local and national policies continued to be a core objective.
It can be difficult for poor and marginalised communities to come together and hold decision-makers to account for legislation affecting their livelihoods and futures, so this year we directly supported over 25 partners in 14 countries through staff advocacy accompaniment and through partners using our Voice and Accountability toolkit.
In one of the poorest regions of Paraguay, CAFOD’s funding and coordinated accompaniment enabled three partners to work with communities in influencing government policy to ensure secure livelihoods. Representatives from 49 small farmers’ organisations took part in meetings with government authorities. Partners reported that 182 community members (over half of whom were women) successfully asked for livelihood support, with 200 families receiving help to improve their agriculture through technology and better production techniques.
Through two CAFOD partners in São Paulo, Brazil, 3,100 disadvantaged families increased their access to basic services and housing programmes, 556 families received support in accessing electricity and 702 received basic sanitation. This was enabled by CAFOD’s support to strengthen 142 local community groups. Through funding and accompaniment, CAFOD supported strategic planning, monitoring and evaluation, community research, communications, advocacy and media support, and work to involve more women in the groups. The work gained a high profile in the São Paulo media, while in the UK the issue received national coverage following a CAFOD visit by celebrity Jo Joyner as part of a series of features on Daybreak breakfast television.
It is estimated that 60 per cent of Swaziland’s population live on less than US$1 a day. It also has one of the world’s highest rates of people living with HIV. In a challenging context where other funders were leaving, CAFOD decided to support partners in Swaziland with both funding and technical advice. Our partner, the Swaziland Coalition of Concerned Civic Organisations (SCCCO) continued to empower thousands of citizens to document the problems affecting their communities. Efforts culminated in the annual People’s Parliament which brings around 5,000 people together to debate these issues. The resulting recommendations inform policy discussions with senior traditional and government authorities. Communities are now more confident in holding meetings with authorities, and making their demands known. SCCCO also conducted successful human rights advocacy at the African Commission on Human and People’s Rights (ACHPR).
In São Paulo, 3,100 disadvantaged families increased their access to basic services and housing programmes.
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Poverty and disability are inextricably linked, and people with disabilities are often among the poorest of the poor. The World Bank estimates that disabled people make up 15–20 per cent of poor communities in developing countries. Action on Disability and Development (ADD) Bangladesh empowers people living with disabilities to advocate for their rights, and more than 20,000 people with disabilities are organised by ADD into self-help groups. The groups have provided evidence used by ADD to shape post-2015 sustainable development debates. The ADD Country Director took part in talks with the Bangladesh government on drafting a disabilities law in Bangladesh and on local government budget allocations for disability resources. CAFOD supports ADD Bangladesh with programme accompaniment, helping to secure institutional funding and specialist advocacy strategic advice.
In Brazil, indigenous communities continued to be threatened with violence, disease and by rivers polluted by mercury used in the extraction of gold. CAFOD partner Hutukara Yanonami Association received reports from communities of illegal gold mining local and lobbied the indigenous affairs agency, the Public Prosecutor and the federal police. As a result, in February 2014 the authorities launched an operation to arrest 200 miners operating illegally in the territory. The operation destroyed 20 illegal mining rafts and one aircraft landing strip.
Poverty and disability are inextricably linked, and people with disabilities are often the poorest of the poor.
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Aim 2
Promoting sustainable development to enable access to essential services and resources for the poorest and most disadvantaged
n What we set out to achieve this year
Access to safe waterWe aimed to help 221,000 more women and men to have access to clean water and 98,000 women and men to have improved sanitation by April 2015.
We are on track to deliver the three-year targets set for our global water programme which was match funded by the Department for International Development (DFID). The two-year results show:
> 188,793 women and men now have access to clean water;> 67,119 women and men have access to improved sanitation;> 143,514 women and men have access to knowledge and means for
improved hygiene;> 41,968 women and men have access to a sustainable, year-round water
supply for household, economic or ecological uses.
CAFOD-funded partner Caritas Bangladesh distributed rainwater harvesting systems to 50 female-headed households. Recently widowed Shefali Haldar lives in Mongla with her son Dipok, who is physically disabled. Getting a clean drink of water was a challenge, because they depended on pond water for drinking and suffered water-borne diseases as a result. By receiving a tank to collect rainwater purified by a solar UV ray system, Shefali’s family now have pure and safe water for drinking. “I am happy to be able to turn on a tap so close to home and to be sure that I have safe water for drinking. I am grateful to Caritas Bangladesh for helping my family and me.”
In Zimbabwe, CAFOD worked with five partners on water projects and improving health and hygiene. Twelve new boreholes were successfully drilled and 34 were repaired, giving 15,300 people access to safe drinking water. A further 16,990 people gained better access to clean water through improvements to supply dams and new pipelines. The communities have a central role in managing the water supply, with 83 water point committees set up. Women account for 60 per cent of committee members.
Peace of mind: Siamuloba piped water scheme“My name is Martha and I am 80 years old. I had to walk 15 kilometres in search of water. I could not travel every day because my legs were so sore. I scraped plates and pots instead of washing them. The community called me ‘Musamba niwa’ [meaning ‘I only bath when it rains’]. I felt like an outcast. In 2013 CAFOD’s Church partner, Caritas Hwange, helped establish a piped water scheme and train village health workers. I now fetch water 200 metres away. I have more time to do gardening, farming and keep my home clean. I now have peace of mind unlike before when I felt unwanted by everyone. I thank God for CAFOD and its partner CARITAS Hwange.”
I now have peace of mind unlike before when I felt unwanted by everyone. I thank God for CAFOD...
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Before this water well was constructed I was growing vegetables only during the rainy season. I can now grow vegetables two-three times a year...
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n Sustainable food and income
In 2013/14 we aimed to encourage individual and community enterprise, and provide ways in which families have a dependable food supply throughout the year.
Planning for the future can only happen when there is enough to eat and where it is possible to raise an income. Last year, CAFOD supported partners in 20 countries, reaching 90,575 households with a focus on food security and 33,863 with a focus on small enterprises. Moreover, 18,163 households across 13 countries reported improved livelihoods last year thanks to an increase in food, income or other assets as a result of CAFOD programmes.
“I can grow vegetables throughout the year using water.”For their livelihoods, farming communities in Taza Garba in southern Ethiopia grow cereal crops using seasonal rain from the rivers once a year, and keep livestock. But in the past three years drought has affected the area.
CAFOD partners helped communities to build their own wells to help grow and irrigate vegetables. Philipos Funto is one of the farmers supported with materials and advice. After the well was constructed he started growing different vegetables on quarter of a hectare in his garden.
Philipos says: “Before this water well was constructed I was growing vegetables only during [the] rainy season which is once a year. I can now grow two-three times a year using water from this well. I produce different vegetables for our own consumption and to sell at the local market.”
In two districts in Sierra Leone, partners introduced 720 people to a poultry management scheme and a further 120 people were trained to use a variety of food production techniques. Meanwhile, CAFOD funding, training and mentoring for partners enabled the Savings and Internal Lending Community Projects programme in Liberia and Sierra Leone to help women set up their own small businesses.
Partners in Afghanistan helped 318 women in savings groups across 15 communities to double their savings compared to the previous year. The women say that CAFOD-funded support for business planning, profit analysis and numeracy training helped with their success.
In Zambia, the year’s targets were exceeded by partners who reached a total of 3,877 people with saving and lending activities – 3,489 were active members of 320 savings and loan groups. Some members used savings and loans to start their own businesses and buy livestock. CAFOD provided training of trainers programmes on savings and lending and supported people in engaging different members of the community in the schemes – for example, groups in Monze, Ndola and Lusaka involved people living with HIV.
n Valuing the dignity of all
In 2013/14 we continued to enable marginalised people to play a full and active part in community and public life.
To me life is now much better and more promising than before... I feel loved and wanted in society.
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Supporting people living with HIVThis year we continued to support faith leaders in addressing the stigma experienced by people living with HIV, and to work with communities to challenge discriminatory behaviour and attitudes. As a result, people living with HIV are becoming more accepted and involved in social, family and religious activities. Together with the Global Network of People Living with HIV, we implemented a project to reduce the stigma experienced by people living with HIV in Zambia, Kenya and Ethiopia. Greater numbers of people are now getting tested for HIV, clergy are speaking out against stigma, and faith leaders are proactively working with heath organisations to provide information on HIV to their congregations.
Alice from Kisuani, Kenya says: “To me, life is now much better and more promising than before. My faith leader always manages to inform the congregation about what the scriptures say on love, care and looking after the sick, orphans and the widows. I feel loved and wanted in society. The congregation has also changed its attitude towards those infected. The church members now no longer sympathise and instead see me like any other who is not infected.”
Through sharing the success of this work, similar projects are now planned for Myanmar and southern Africa. Leading the way to safeguard childrenOver the past few years CAFOD has been committed to supporting partners across the world to develop policies to safeguard children in their work. Our partner organisation, Mary Barreda, is proud to be one of the first organisations in Nicaragua to have its own Child Protection policy – a notable achievement in a context where children are subject to violence and a lack of rights.
Aim 3
Achieving peace, security and recovery from crises for the poorest and most disadvantaged
n What we set out to achieve this year
CAFOD made three public appeals for emergency funds during the year: for the Philippines, Syria and South Sudan.
Typhoon Haiyan hit the Philippines on 8 November 2013 and was one of the most powerful ever to make landfall. It left at least 5 million people homeless. In a country where 80 per cent of the population is Catholic, the local Church and members of the Caritas Internationalis federation played a lead role in the emergency response. Our work with Church partners included:
> delivering food packs and shelter kits to devastated communities; > preventing the spread of disease by providing more than 100,000
people with emergency hygiene kits, as well as supplying clean water and building safe latrines;
> helping thousands of people earn an income through ‘cash-for-work’ schemes and through providing tools, seeds and fishing boats.
Over the coming months we will rebuild permanent homes and schools, help people find new ways of earning a living, and ensure that communities are better prepared for future disasters. Thanks to the generosity of the Catholic community and the British public, our appeal has raised almost £8 million.
We have raised more than £3 million since we launched our appeal for Syria in March 2013, enabling our church partners to deliver food, water, shelter, medical supplies, clothes and blankets to families in Syria, Lebanon, Jordan, Turkey and Iraq. Within Syria, the extensive community networks of the Church, even as a minority faith, mean that it is well placed to provide aid in some of the worst hit and most inaccessible areas of the country. The humanitarian situation in Syria will continue to be disastrous for the foreseeable future.
Fighting between the government and rival political factions in South Sudan left at least 4 million people in need of aid. Churches provided shelter for those fleeing the violence, and we also supplied food, water, sanitation, household items and health services. CAFOD has, to date, provided nearly £1 million in financial support since the crisis began and will continue to support our South Sudanese church partners throughout this ongoing conflict.
Over the year we responded to conflicts in the Central African Republic and the Democratic Republic of Congo, drought in Uganda and Namibia, floods in Cambodia and Bolivia, a cyclone in India, an earthquake in Pakistan, a cholera outbreak in Sierra Leone and floods and displacement in Sudan. We have closed our programmes in response to the Haiti earthquake and the Pakistan floods of 2010, but continue to be ready to respond to new emergencies in both countries. We are also continuing our emergency programmes in the Horn and East Africa, Niger and Darfur, among others.
Supporters have donated more than £3 million to our appeal for Syria.
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As a member of Caritas Internationalis, CAFOD is part of a federation whose pooled resources enable the swift delivery of resources to the point of need...
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n Increasing cooperation
In 2013/14 we planned to strengthen collaboration with Caritas Australia, Catholic Relief Services (US), and Trócaire (Ireland) by mid 2013 with a joint work plan. We also planned to build on our links and secure new funding relationships with Caritas Internationalis agencies.
As a member of Caritas Internationalis, CAFOD is part of a federation whose pooled resources enable the swift delivery of resources to the point of need during emergencies. CI also allows member agencies to work to their strengths and thereby make a better impact.
An agreement has been signed by CAFOD and its sister agencies in the United States, Ireland and Australia that will result in sharing resources, coordinated emergency responses and collaboration on long-term programmes. Coordination at this level means we are able to employ one person (instead of each recruiting separately) to advise on protecting vulnerable people during crises. Strategic alliances with our USA and Irish sister agencies also allowed us to have a more diversified response to typhoon Haiyan in the Philippines. The relationship has also enabled a coordinated support strategy in the Middle East so that we can support displaced populations within Syria and refugees in Lebanon, Jordan and Turkey more effectively.
n Improving standards
In 2013/14 we played a key role in shaping the way UK and global networks mount humanitarian responses to emergencies.
CAFOD plays a lead role in the Start Network, a network of the 19 largest agencies in the UK seeking to strengthen the humanitarian aid system. After a two year pilot, START formally launched this year as a network to coordinate the work of these agencies, and liaise with the Department for International Development on behalf of members. CAFOD has also been actively engaged in the development of the Core Humanitarian Standards, which will provide a common standard for the whole sector and enhance the quality and effectiveness humanitarian assistance globally.
n Working with vulnerable people
In 2013/14 we planned to reduce the vulnerability of poor communities in emergencies, and protect them while seeking help.
Reducing riskLast year, over 545 community groups carried out disaster risk reduction action across 14 countries – an increase of one fifth on the previous year. These actions also feed into local and national government plans.
The child-friendly spaces project has been a real success. They are only supposed to come to the spaces twice a week but some want to come every day.
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People’s safety and dignityProtecting people in emergency situations is a vital component of our work. CAFOD staff supported partners to be more accountable to affected communities, involve more women and protect children and vulnerable adults as emergency action unfolds. We have worked with sister agencies on joint standards and practices to ensure the safety and dignity of people in emergency responses.
Action on protecting people has been a key part of our work in the Philippines, Central African Republic and the Democratic Republic of Congo. We have also worked on these issues with partners in Turkey and Jordan as part of our response to the Syria crisis.
One specific area has been the development and improvement of child-friendly spaces. Over 1.4 million children have fled Syria as refugees – more than the total number of children in Catholic schools in England and Wales. CAFOD was able to deploy one of our emergency response officers to provide training and guidance on child-friendly spaces, and on how to ensure that safety and dignity concerns are integrated into all aspects of their refugee response activities.
Ahmed, a Syrian refugee from Aleppo, is now volunteering with a CAFOD partner in Turkey. He said: “The child-friendly spaces project has been a real success. They are only supposed to come to the spaces twice a week but some want to come every day. We need to give these kids happiness. It’s the one thing we can do.”
Aim 4
Building partnerships in the Catholic community in England and Wales
n What we set out to achieve this year
Giving generouslyIn 2013/14 we hoped that income from supporters would continue to grow, with the number of individual regular donors increasing from 38,900 to 39,850. We wanted to deepen our relationships with Catholic parishes.
Reaching new supportersIn the year ending March 2014, donations from supporters stood at £35.6 million. This was 6 per cent higher than the previous financial year and included significant amounts raised in response to emergency appeals, as well as some particularly generous legacy gifts. We give our heartfelt thanks to all supporters who have given so generously of their time or money during the past year.
Supporters who give on a regular basis increased to 41,000 this year. The rise in regular givers was double our original target.
Through our three emergency appeals last year we engaged 3,639 new supporters – a fifth of all new donors. Sponsored running events continue to attract 18-30 year olds and 30-40 year olds – with both groups accounting for half of participants. Half of all those signing up for events go on to take further actions for CAFOD. An increasing use of social media around events supported this engagement, helping us deepen relationships with over 1,500 participants.
Lent and Harvest Fast DaysLent 2014 focused on the lives and families of Mohammed and Samai, two boys from Kenema diocese in Sierra Leone. With CAFOD and Caritas Kenema’s help, Mohammed and Samai’s community has transformed an abandoned diamond mine into fertile farmland. Patrick Jamiru, Director of Caritas Kenema, visited the UK in February 2014 and spoke to CAFOD supporters and volunteers in eight Catholic dioceses. He made the local headlines when he met Middlesbrough United footballer Kei Kamara. Staff and volunteers made 1,350 visits to schools and parishes during Harvest and Lent, and our two Fast Days raised over £3.8 million.
n Recruiting a network of advocates for global justice
In 2013/14 we committed to nurturing more advocates in the Catholic community for CAFOD’s work. We wanted to inspire 350 young leaders to reach out to a further 50,000 children, adults and young people, and enable 180,000 children in Catholic primary schools to learn about global justice and CAFOD’s work.
Supporters who give on a regular basis increased to 41,000 this year. The rise in regular givers was double our original target.
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I am part of the CAFOD group at college and I have been learning all about the fantastic work they do. I believe it is extremely important and this is why I’m acting for such a great cause.
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Young people lead the wayOur 2013/14 targets were exceeded with more young people responding to our call to take the lead with CAFOD. An impressive 388 young people organised activities and events to invite a whole host of people to support CAFOD. These young ambassadors reached out to a staggering 96,000 people, with more than 37,000 of those taking action.
One of the young ambassadors at Cardinal Newman College, Preston said, “I enjoyed taking part in the Great Manchester Run last year so much that I am running it again this year. I am part of the CAFOD group at the college and I have been learning all about the fantastic work they do. I believe it is extremely important and this is why I’m acting for such a great cause.” CAFOD staff and volunteers worked with teachers, chaplains and youth leaders to run training programmes and young leader events to promote young leadership across England and Wales.
Two inspirational young leaders from CINEP-Click Project in Colombia raised the profile of their work to show how it is possible to make the transition from armed conflict to peace by visiting the UK and working with over 1,500 young people. Their message of building a tolerant society was shared with two strong advocates for peace, Margaret and Barry Mizen from south London, who lost their son Jimmy in a violent knife attack when he was just 16 years old.
Excellence in schoolsOur target of enabling 180,000 children to learn about global justice through the Religious Education syllabus was exceeded by more than 30 per cent. The numbers of schools registered with the scheme suggest that as many 290,000 children are learning about faith, their global world and CAFOD during the summer term. Our work in schools continues to appeal to teachers and pupils alike. Unique visitors to CAFOD’s education pages increased by 55 per cent last year, with positive coverage throughout the year in educational publications and websites such as the Times Educational Supplement online, Guardian Teacher Network, Catholic Education Service, Geographical Association, The Global Dimension, Education Today and Pearson Fronter.
Focus on volunteeringPart of CAFOD’s mandate is to be the Catholic community’s expression of solidarity with the poorest communities worldwide. Our work is the Catholic community’s work, and our relationship demands that we listen and enable those who support us to have their own voice and make their own contribution.
We increased our focus on volunteering, with a strong emphasis on volunteering in schools and creating volunteer placements for young adults: last year we had 243 active and trained education volunteers. Our volunteers helped CAFOD make 2,500 visits to primary and secondary schools. We also work with the Society of the Holy Child Jesus to place eight young adults in full-time placements in parishes, schools and Catholic diocesan centres to raise awareness of CAFOD and global issues. This scheme is in its fifth year and three quarters of all graduates have remained active with CAFOD. We also established eight media volunteer placements for young adults over the past year, and these volunteers contributed to a significant rise in CAFOD’s social and local media profile.
‘Tour de Fred’ was a project inspired by volunteer Fred Utley, who rode his bike around England and Wales during June 2013, stopping at a parishes, schools, cathedrals or local CAFOD offices in 22 Catholic dioceses. The project was particularly successful in terms of media and profile, reaching a potential audience of 300,000 through local press and 400,000 through radio. It was a great opportunity to respond to the vision and enterprise of a key volunteer, who raised more than £13,000 for CAFOD.
Children find their fairtrade feetAs a result of a successful partnership with online retailer Sock Shop, CAFOD promoted the concept of fair trade by launching a competition for primary schoolchildren to design a fair-trade themed sock. The company agreed to manufacture and market the winning design, and CAFOD produced a complementary range of activity and learning materials to help children learn more about the idea of fair trade. The competition was an outstanding success, receiving over 6,000 entries from 142 schools. The selection of a short-list and winner – made by a panel of judges led by actress Jo Joyner – generated excellent regional and social media coverage.
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CAFOD produced a complementary range of activity and learning materials to help children learn more about the idea of fair trade.
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CAFOD’s priorities for 2014-2015
Our four key aims continue to be the focus as we look towards 2020. The following priorities reflect our analysis of where and how we can make the greatest impact during the coming year.
Aim 1
Increasing power and influence so that the poorest and most disadvantaged communities are able to influence the decisions, resources and systems that affect them, and have governments, institutions and global structures that are just and accountable.
1.1 We will have enabled a strong Catholic voice to speak out on the impact of climate change on the poorest communities, contributing to international and domestic political action to tackle climate change and its impacts.
Indicators 1.1.1 The UK general election
demonstrates an interest in international development issues especially around climate change and poverty, with evidence of our supporters participating in discussions and high-level hustings with parliamentary candidates in the run-up to the general election.
1.1.2 A visible commitment by individuals in the Catholic community to lifestyles that support living simply.
1.1.3 Evidence of cross-party commitment to tackle the impact of climate change on the poorest people in manifestos, statements by senior political figures, and through international processes.
1.2 We will have successfully influenced the United Nations Sustainable Development Goals (SDGs, set to succeed the MDGs) agreement process, enabling the voices of our partners to be heard at national and international levels.
Indicators 1.2.1 CAFOD’s role in the post-2015
SDG Framework will have enabled stronger cooperation across Caritas Internationalis, with member agencies active in sustainable development goal discussions internationally as a result of CAFOD leading the network’s engagement.
1.2.2 Evidence of sister agencies and partners lobbying governments at national, regional and international levels.
1.2.3 No less than 10 national governments will have engaged in discussions with Catholic sister agencies on the SDGs.
1.3 We will have enabled the voices of our international partners and the Church to be heard by decision-makers.
Indicators 1.3.1 Our partners and the communities
they serve report that CAFOD’s support increases their confidence in negotiating with decision-makers, with evidence of more partners using our Community Voice and Accountability toolkit.
1.3.2 The Symposium of the Episcopal Conferences of Africa’s (SECAM) ability to influence structures and decision-makers at regional and international level will be strengthened as a result of CAFOD’s financial and expert support.
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Aim 2
Promoting sustainable development so that the poorest and disadvantaged communities have access to essential services and the resources they need to live sustainably, with dignity.
2.1 The communities we support will have increased access to essential resources and these will be available equally to women, men and children.
Indicators 2.1.1 A total 221,000 women and men
will have access to clean water and 98,000 women and men to have improved sanitation between April 2012 and April 2015.
2.1.2 No less than 16 partners and projects will be resourced to construct and maintain improved sanitation infrastructure during 2014 and 2015.
2.1.3 More partners and projects supported by CAFOD will see an increased commitment to empowering women to participate in decisions about water resources.
2.1.4 95,000 households will be reached through CAFOD-supported initiatives, with a focus on enabling access to food.
2.2 More women and men in programmes supported by us will tell us they are able to make a decent living, access fair markets and meet the needs of their families.
Indicators 2.2.1 Approximately 18,000 households
will report improved ongoing access to food and income as a result of our support through our partners.
2.2.2 Support to partner organisations will result in women and men affected by HIV reporting an improved quality of life.
2.2.3 At least 16,000 households are reached by CAFOD-supported initiatives focused on developing small enterprises.
2.3 Partners will have increased capacity to deliver positive change through programmes and services prioritised by them and the communities they serve.
Indicators 2.3.1 We will see an increase in
agreements jointly developed with partners on how to strengthen their work over the next three years. We will also have accompanying evidence on the difference this support makes.
2.3.2 Partner organisations are enabled to be more accountable to the poor and disadvantaged communities they serve, with up to 40 partners meeting reaching agreed accountability standards.
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Aim 3
Achieving peace, security and recovery so that the poorest and most disadvantaged communities live in a safe and secure environment, and are able to minimise, survive and recover from crises.
3.1 We will have responded in a timely and effective manner to new and ongoing emergencies and we are able support partners and affected communities before, during and after a crisis.
Indicators 3.1.1 CAFOD response/surge teams will
have been deployed to support partners within 24 hours of CAFOD’s decision to respond.
3.1.2 We will have increased requests from sister agencies for support from CAFOD to lead and manage designated emergency programmes.
3.1.3 CAFOD expertise will be used by Caritas Internationalis members and partners in water sanitation, hygiene and protection.
3.2 Our advocacy efforts will have helped deliver change in action or positions on humanitarian issues.
Indicators3.2.1 There will be evidence of change
in both individual emergency responses and broader emergency issues. Measurements will be both qualitative and quantitative.
3.3 CAFOD’s key partners’ capacity will be strengthened, enabling them to better respond to and manage emergencies.
Indicators3.3.1 Twelve partners will have conducted
humanitarian capacity self-assessments and re-assessments, with individual capacity development action plans agreed in DRC, Niger, Mano River region, Kenya, Uganda, Sudan, South Sudan, Mozambique, Zimbabwe, Malawi, Indonesia, Cambodia and Myanmar.
3.4 We will have strengthened our strategic alliances and built collaborative ways of working to enable more effective responses to crises and better support to communities.
Indicators3.4.1 By 2020 a minimum of 50 per cent
of our emergency response will be in collaboration. Such collaboration will result in strengthened responses to communities and will secure greater funds.
3.4.2 Partners in no less than 10 countries will have been equipped to implement ways of reducing the damage caused by disasters.
Aim 4
Building our partnerships in the Catholic community.
4.1 Trust and loyalty will have been built by improving our understanding of, and responsiveness to, supporters.
Indicators 4.1.1 Clear measures to help us
understand trust and loyalty will be in place by 2015.
4.2 We will have increased reach and engagement with potential supporters in the Catholic community.
Indicators 4.2.1 We will have maintained our young
leader network in the Catholic community at current levels.
These leaders will reach a further 40,000 to 60,000 people through their activities.
4.2.2 We will have increased the number of new supporters who choose to give, pray, act and/or volunteer.
4.3 We will have increased engagement with current supporters.
Indicators 4.3.1 2,600 additional new regular givers
will be inspired to commit to the work of CAFOD.
4.3.2 We will have increased the number of active supporters on our database.
4.4 Numbers of volunteers will have been maintained and their activity will have increased.
Indicators 4.4.1 Numbers of volunteers will have
been maintained at 4,000.4.4.2 70 per cent of parishes will have one
active volunteer.4.4.3 46 per cent of all Catholic schools
across England and Wales will have been visited by a volunteer.
4.5 Income generation has increased in ways consistent with Catholic values.
Indicators 4.5.1 Supporter income will have
increased from £26.5 million in 2013/14 to £27.9 million in 2014/15.
5.1 We will have improved the stewardship of resources to enable more efficient and effective delivery of our aims.
Indicators 5.1.1 Newly developed guidance and
evidence gathered on stewardship will be steering our action in relation to financial and environmental assets.
5.1.2 The quality and effectiveness of our people management will have been more systematically monitored Our monitoring will have identified ways of meeting and improving staff management standards.
5.2 Our communications are better targeted, distinctive and timely.
Indicators 5.2.1 Rapid communication of emergencies
will support increased engagement by our supporters during times of crisis.
5.2.2 We will have increased our reach to potential supporters on key global issues through our public relations initiatives.
5.2.3 We will see a continued rise in social media engagement with CAFOD by our supporters.
5.3 The impact of CAFOD and partners’ work is more systematically evidenced.
Indicators 5.3.3 An ‘evidencing framework’ is in place
to inform regular collection and analysis of evidence.
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In support of Aims 1-4
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Financial review
n Income and expenditure
This year, CAFOD raised £51.3m – with over two thirds received from supporters who donated a total of £35.6m. This hugely generous support from the Catholic community of England and Wales was supplemented by a further £3m received from Caritas Internationalis and other Catholic agencies, and £12.4m received as grants from governments and other institutional donors to finance CAFOD programmes.
The total income received in 2013/14 is a 5 per cent increase on the previous year – an excellent result given the tough financial times.
Total income from supporters was 6 per cent higher than last year, thanks mainly to the wonderfully generous responses to the Syria Crisis and the Philippines’ Typhoon Haiyan crises. These appeals raised £1.95m and £4.8m respectively. Excluding income received for emergencies, a total of £26.7 million was raised from supporters in 2013/14. This was in line with the budget set by the trustees at the start of the year. When compared to funds raised in 2011/12 and 2012/13, it is important to note that the income in those years was boosted by an exceptional response to the 50th anniversary Lent 2012 Fast Day and the UK government’s matched giving programme.
At a time when many charities report a reduction in donations due to the squeeze on household incomes, it is encouraging and important that the support from the Catholic community of England and Wales has not slackened and continues to be the bedrock of CAFOD’s charitable work.
CAFOD’s international work also attracts funding from a wider range of Caritas Internationalis, governmental and institutional donors. Income from these sources grew rapidly in the years to 2011/12 but then fell back sharply due to the greater competition for limited governmental and institutional funds. This funding enabling CAFOD’s partners to scale up work and, following a renewed focus, the amount raised in 2013/14 was 4 per cent up on the previous year.
During 2013/14 CAFOD spent over £51.5m – slightly up on the previous year.
09/10 10/11 11/12 12/13 13/14Income £m £m £m £m £m
General donations and legacies 25.7 29.2 30.1 31.4 26.7
Emergency appeal donations 7.0 8.3 9.2 2.2 8.9
Donations from supporters 32.7 37.5 39.3 33.6 35.6
Caritas, governmental and other institutional donors 15.8 18.1 21.3 14.8 15.4
Trading and interest earned 0.6 0.3 0.4 0.4 0.3
Total incoming resources 49.1 55.9 61.0 48.8 51.3
At At 31/03/13 31/03/14 £’m £’m
General fund
Stablisation fund 9.0 9.0
Free reserves 1.2 0.5
10.2 9.5
Designated funds
Fixed assets fund 6.0 5.8
Programme fund 9.8 7.6
15.8 13.4
Restricted funds
General donation funds 0.4 0.3
Emergency appeal funds 3.2 7.1
Caritas and other Catholic agencies 1.3 0.3
Government and institutional grants 0.0 0.1
4.9 7.8
Permanent endowment 0.4 0.4
Total funds and reserves 31.3 31.1
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Just over 12 per cent of total spend related to the costs of generating funds and governance, leaving 88 per cent to be spent on CAFOD’s charitable activities.
Expenditure of £38.4m (75 per cent of total expenditure) was spent on international development and disaster relief programmes, and £6.7m (just over 13 per cent of total expenditure) on development education, advocacy and campaigning programmes seeking to address the root causes of poverty.
Although CAFOD’s income has held up remarkably well since the beginning of the credit crunch, it remains aware of the growing economic pressures on individuals and public finances and the potential for this to reduce the level of income next year. In light of this it continues to work hard to secure the resources needed for our charitable programmes.
A summary of income and expenditure is shown on page 27 in the format required by the Charity Commission’s Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities”, and these financial statements comply with this SORP and also CAFOD’s trust deed and all applicable laws.
n Financial position and reserves policy
CAFOD’s trustees review the charity’s reserves policy each year, ensuring a balance between spending on the immediate needs of charitable programmes and setting aside a reserve to protect CAFOD by providing time to adjust to any sudden, large-scale operational challenges in our overseas work or changing financial circumstances in the amount of funds available. The level of CAFOD’s reserves and details of the other individual funds
09/10 10/11 11/12 12/13 13/14Expenditure £m £m £m £m £m
Cost of generating funds and governance 6.3 6.3 6.1 6.3 6.3
Charitable activities
International development programme 18.3 22.4 25.1 26.2 23.9
Disaster relief programme 19.0 12.1 18.1 12.3 14.6
Development education 2.9 2.8 2.8 2.8 2.8
Advocacy & campaigning 3.2 3.2 3.2 3.5 3.9
Total resources expended 49.7 46.8 55.3 51.1 51.5
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CAFOD holds are provided in notes 10 and 11 to the financial statements. These funds and reserves are amounts held at 31st March 2014 in accordance with our investment policy.
At 31 March 2014, CAFOD held total funds and reserves of £31.3m, very slightly less than the previous year.
At 31 March 2014 CAFOD held £9.5m general funds – £9m held as a stabilisation fund (an amount the trustees agree to hold back to limit any potential disruption associated with financial risks CAFOD faces from its operation) and £513,000 additional “free reserves” which the trustees will allocate to programmes in 2014/15.
CAFOD also held £13.4m designated funds – £5.8m set aside to fund the fixed assets that are required for CAFOD’s operations and £7.6m to be spent in the coming two years on specific programme activities.
At the end of the year CAFOD also held £7.8m of restricted funds, including balances from the Philippines Typhoon Haiyan and Syria crisis appeals, which will be spent on the continuing emergency response.
n Investment policy
The objective of CAFOD’s investment policy is to maintain high liquidity whilst ensuring maximum security by avoiding risk to capital, meeting ethical standards and achieving the best possible return within these limiting parameters.
To meet this objective, investments are made in sterling deposits with financial institutions that hold a high security rating, ordinarily spreading the total invested across fixed terms from overnight to 12 months and limiting the amount invested with any one financial institution. In response to the increased risks caused by the credit crunch, CAFOD has only made deposits with UK domiciled banks and cash is deposited for shorter periods than in the past to enable it to react more quickly to issues with particular banks. As well as Sterling deposits, CAFOD maintains balances in sterling, US dollars and euros for transactional purposes to cover ongoing expenditure. These “transactional” balances are held on instant access either in accounts with the Royal Bank of Scotland or in a shared investment fund managed by the Royal Bank of Scotland, depending on the daily interest rates available.
There is also a permanent endowment fund of £439,000, the capital element of which is held in perpetuity and from which the income is applied to CAFOD’s work. To maintain the capital value of this fund, meet its ethical standards and achieve the best possible return, this fund is invested in an ethical UK common investment fund.
CAFOD’s investment policy is reviewed by the Finances Committee, acting as an investment sub-committee, and approved by the trustees annually. The Finances Committee, reporting to the trustees, monitor investment performance and compliance with investment policy quarterly and the trustees have confirmed the Finance Committee’s opinion that the objectives of CAFOD’s investment policy were met during the year.
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Structure, governance and management
n Registration and constitution
CAFOD, the Catholic Agency for Overseas Development, is a registered charity (number 285776) under the Charities Act 1993 and is governed by a trust deed dated 29 September 1982 and deeds of variation dated 28 September 1984, 11 October 2000, 21 February 2009 and 12 March 2009.
CAFOD is the official overseas development agency of the Catholic Church in England and Wales. It has its origins in the action of Catholic women’s organisations that held the first ‘Family Fast Day’ in 1960. Subsequently, in 1962, CAFOD was formally established by the Bishops of England and Wales to address the concern of the Catholic community about the needs and problems of developing countries.
n Trust deed
The objectives set out within the trust deed are standard charitable objectives to allow CAFOD to undertake the full range of charitable activities. These objectives are: the relief of poverty throughout the world, the advancement of education throughout the world, the advancement of the Christian religion throughout the world, the relief and prevention of sickness, disease and physical or mental disability throughout the world, and such other charitable purposes anywhere in the world as are for the benefit of the United Kingdom community.
n Board of trustees
CAFOD is governed by four foundation trustees and a wider group of trustees, who form CAFOD’s board of trustees (and who together are referred to as ‘the trustees’ below).
Foundation trustees are appointed by the existing foundation trustees with their appointment ratified by the standing committee of the Bishops’ Conference of England and Wales. The foundation trustees hold a limited number of reserved powers, including the appointment of other trustees and the power to amend CAFOD’s trust deed. All other powers, including the establishment of specialist committees (including a finances committee, a human resources committee and an international programmes committee) and general responsibility for the running of CAFOD are vested with the full board of trustees.
The board of trustees meets formally four times a year, together with the corporate leadership team. One of these quarterly meetings takes place over a residential weekend, to allow time for a deeper understanding of CAFOD’s programme of work. Trustees have an induction programme and some chair specialist committees and involve themselves with the work of different sections, international regional teams and diocesan offices to ensure that collectively they have the overview necessary for the proper governance of CAFOD.
The whole trustee body brings a wide range of skills and experience from a variety of backgrounds including finance, government and the charity sector, as well as from the Catholic community.
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n Decision-making
The board of trustees is the custodian of CAFOD’s vision, mission and values; they approve strategy, structure, corporate plans and budgets, and ensure the organisation is effective and accountable. The trustees appoint the director of CAFOD and have delegated to the director and management of CAFOD the responsibility for the approval of grants to partners. Grants are made within agreed strategies and programmes of work on the basis of proposals that are subject to formal appraisal, approval, monitoring and evaluation.
n Risk management
As an annual process, the trustees formally identify the major risks to which the charity is exposed, assess the likelihood of these risks materialising and the probable level of impact. To ensure that the controls on which they rely are effective, the trustees have mandated the CAFOD Finances Committee to oversee a risk-based internal audit function.
n Public benefit reporting
The trustees have taken account of the statutory reporting duty introduced in 2009 to illustrate how in practice the activities of CAFOD meet the legal public benefit requirement. In this respect, the trustees have noted and paid due regard to all the Charity Commission’s statutory guidance that is relevant to our mission, and have highlighted in this report examples of CAFOD’s activities that illustrate how our work fulfils its mission and the significant benefits it brings to:
> individuals and communities in poverty overseas, irrespective of their race, religion or creed;
> teachers, youth workers, students and pupils involved in teaching and learning about global poverty and injustice and its causes;
> the Catholic community in England and Wales in expressing its faith in action in response to global poverty and injustice issues.
The trustees give their time voluntarily and receive no private benefits from CAFOD.
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n Trustees’ responsibilities in respect of the financial statements
The trustees are responsible for preparing the Report of the trustees and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year that give a true and fair view of the state of affairs of the charity and the group, and of the incoming resources and application of resources of the group for that period. In preparing these accounts, the trustees are required to:
> select suitable accounting policies and apply them consistently;> observe the methods and principles in the Statement of Recommended
Practice (Accounting and Reporting by Charities) (the Charities’ SORP);> make judgements and estimates that are reasonable and prudent;> state whether applicable United Kingdom Accounting Standards have
been followed, subject to any material departures disclosed and explained in the accounts; and
> prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity 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 charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.
CAFOD’s trustees are grateful to the dedicated services of its staff and many volunteers. Without their generous commitment, it would be impossible for CAFOD to carry out its programme of work and achieve its goals.
Approved by the trustees on 3 July 2014 and signed on their behalf by:
The Right Reverend John Arnold – Chair of trustees3 July 2014
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Independent auditor’s report to the trustees of CAFOD
We have audited the financial statements of CAFOD for the year ended 31 March 2014, which comprise the group statement of financial activities, the group balance sheet, the group cash flow statement, the principal accounting policies 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 trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and with regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for our audit work, for this report, or for the opinions we have formed.
n Respective responsibilities of trustees and auditor
As explained more fully in the statement of trustees’ responsibilities in respect of the financial statements, set out in the report of the trustees, the trustees are responsible for the preparation of financial statements which give a true and fair view.We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 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 (APB’s) Ethical Standards for Auditors.
n Scope of the audit of the financial statements
An 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 charity’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 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 inconsistencies we consider the implications for our report.
n Opinion on the financial statements
In our opinion the financial statements:
> give a true and fair view of the state of the group and charitable parent’s affairs as at 31 March 2014 and of the group’s incoming resources and application of resources 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 Charities Act 2011.
n Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
> the information given in the report of the trustees is inconsistent in any material respect with the financial statements; or
> sufficient accounting records have not been kept; or> the financial statements are not in agreement with the accounting
records and returns; or> we have not received all the information and explanations we require
for our audit.
Crowe Clark Whitehill LLP – Statutory Auditor, London 28 August 2014
Crowe Clark Whitehill LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
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Consolidated Statement of Financial Activitiesfor the year ended 31 March 2014
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Consolidated Statement of Financial Activitiesfor the year ended 31 March 2014 (incorporating an income and expenditure account)
Unrestricted Restricted Total TotalFunds Funds 2014 2013
Notes £000 £000 £000 £000
Incoming resources from generated fundsVoluntary incomeDonations from supporters – general 22,628 4,053 26,681 31,407Donations from supporters – emergency appeals 1c 916 7,987 8,903 2,172Government and institutional income 1b 7,438 4,959 12,397 11,113Caritas and other Catholic agencies 1a 27 2,940 2,967 3,657
Activities for generating income:Trading and other income 69 - 69 85
Investment income: Interest earned 252 18 270 369
Total incoming resources 31,330 19,957 51,287 48,803
Cost of generating fundsFundraising trading costs 2 47 - 47 62Costs of generating voluntary income 2 5,632 207 5,839 5,869
Charitable activitiesInternational development 2 16,506 7,432 23,938 26,170Disaster relief 2 5,322 9,220 14,542 12,314Development education 2 2,761 54 2,815 2,800Advocacy and campaigning 2 3,784 127 3,911 3,531
Governance costs 2 367 - 367 344
Total resources expended 34,419 17,040 51,459 51,090
Net (outgoing)/incoming resources 4 (3,089) 2,917 (172) (2,287)
Unrealised investment gains - 9 9 48
Net movement in funds (3,089) 2,926 (163) (2,239)
Funds at the start of the year 25,962 5,353 31,315 33,554
Funds at the end of the year 22,873 8,279 31,152 31,315
CAFOD did not change any of its principal activities during the above financial years and there were no gains and losses other than those included above. Restricted funds above include permanent endowment funds with a current value of £439,000; see note 11. All of the charity’s activities were derived from continuing operations.
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Consolidated Balance Sheet as at 31 March 2014
2014 2013Notes £000 £000
Fixed assetsTangible assets 7a 11,229 11,504
Investments 7b 3,979 3,97015,208 15,474
Current assetsStock 17 27Debtors and prepayments 8 2,086 2,724Short-term cash deposits 17,847 17,576Bank and cash in hand 2,466 4,348
22,416 24,675Creditors
Amounts falling due within one year 9 (6,472) (8,834)Net current assets 15,944 15,841
Net assets 31,152 31,315
REPRESENTED BY:
Unrestricted fundsGeneral funds 10 9,513 10,152Designated fixed asset fund 10 5,769 6,044Designated programme fund 10 7,591 9,766
Restricted fundsGeneral donation funds 11 308 419Emergency appeal funds 11 7,050 3,195Caritas and other Catholic agencies 11 344 1,290Government and institutional grants 11 138 19
Permanent endowment 11 439 430
Total funds and reserves 31,152 31,315
The financial statements were approved and authorised for issue by the trustees on 3 July 2014 and signed on their behalf by:
The Right Reverend John Arnold Charles Reeve-Tucker FCAChair of trustees Honorary Treasurer
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Consolidated cash flow statement for the yearended 31st March 2014
2014 2013Notes £000 £000
Cash outflow from operating activities A (1,782) (4,041)
Returns on investmentsInterest received and investment income 270 369
Capital expenditure and financial investment B (99) (305)
(1,611) (3,977)Management of liquid resources
(Increase)/decrease in short term deposits (271) 384
Decrease in cash at bank and in hand C (1,882) (3,593)
Notes to the consolidated cash flow statement for the year ended 31 March 2014
A. Reconciliation of net incoming resources to net cash inflow from operating activities
2014 2013£000 £000
Net outgoing resources per Statement of Financial Activities (172) (2,287)Depreciation charge 377 281Net gain on disposal of tangible fixed assets (3) (5)Interest receivable and investment income (270) (369)Decrease in stock 10 9Decrease/(increase) in debtors 638 (271)Decrease in creditors (2,362) (1,399)
Cash (outflow) from operating activities (1,782) (4,041)
B. Cash flows: capital expenditure and financial investmentPayments to acquire tangible fixed assets (102) (324)
Receipts from sales of tangible fixed assets 3 19
Net cash outflow from investing activities (99) (305) C. Analysis of changes in bank and cash in hand
At 1 April 2013 4,348Decrease in bank and cash in hand in the year (1,882)
At 31 March 2014 2,466
37
Notes to the Consolidated financial statements 31st March 2014
Accounting policies
(a) Basis of accountingThe financial statements have been prepared under the historical cost convention as modified by the inclusion of investments at market value and in accordance with the requirements of the Charities Act 2011.Applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP 2005) have been followed in the preparation of these financial statements.
Having reviewed the financial position and future plans for the charity, the trustees have a reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt a going concern basis in preparing the financial statements.
(b) Basis of consolidationThe group financial statements consolidate the financial statements of the charity and of its subsidiary undertaking, the CAFOD Trading Company Limited (see note 12). The results of the subsidiary are consolidated on a line by line basis. The charity has taken advantage of the exemptions available under FRS 8 not to disclose transactions with subsidiary undertakings.
(c) IncomeAll income is treated as unrestricted income and is available for expenditure approved by the Board unless the donor has specified the purpose or region in which the donation is to be spent, in which case it is treated as restricted income. Restricted income includes all monies received as a result of emergency appeals. All categories of income are credited to the Statement of Financial Activities in the year in which they are receivable. In respect of income from governments and other institutional donors this is when CAFOD can demonstrate entitlement to the income and has met the necessary conditions for its disbursement. Where only administrative requirements exist and other entitlement conditions are all satisfied, CAFOD will accrue the income. Any income restricted for expenditure in future years is deferred. Legacies are included in the Statement of Financial Activities when CAFOD is advised by the personal representative(s) of an estate that payment will be made or property transferred and the amount involved can be quantified. Income in kind:-food aid, agricultural inputs or other goods or services for which CAFOD accepts responsibility for distribution – is included in ‘Incoming resources from charitable activities’ at its market value when it is received within partner programmes, and as resources expended under ‘Charitable activities’ at the same value and time.
(d) Resources expended
Expenditure is included in the Statement of Financial Activities when incurred and includes attributable input VAT which cannot be recovered. Resources expended can be subcategorised as follows:
Grants to partners:
Grants are charged to the Statement of Financial Activities when they have been approved and where a binding commitment has been made to the partner organisation. Grants represent funds made available to partner programmes and comprise either cash funds transferred to the partners or in kind provision of goods and services procured on their behalf. Programme grants that have been approved but not yet disbursed at the balance sheet date are carried forward as programme creditors in the balance sheet.
Activity and support costs:
Activity costs include the costs of the trading company and the costs of all teams in CAFOD other than Finance, Facilities, IT and Organisational Development and People functions, which are classified as support costs. Support costs are allocated to expenditure activity headings on the basis of the contribution the respective teams make to each activity.
38
Notes to the Consolidated financial statements 31st March 2014
Accounting policies
(d) Resources expended (continued)
The expenditure activity headings are:Costs of generating funds – Fundraising trading costs, the costs incurred in trading activities; Costs of generating funds – Costs of generating voluntary income, the costs incurred in attracting voluntary income; Charitable activities – international development, work with poor and disadvantaged communities in the global South to overcome poverty and bring about sustainable development and well-being;Charitable activities – disaster relief, work to protect lives and relieve suffering during emergencies and reduce the risks to vulnerable communities as a result of conflict and natural disasters; Charitable activities – development education, work to raise understanding of the causes of poverty and injustice to inspire a commitment to lasting change; Charitable activities – advocacy and campaigning, challenging those with power to adopt policies and behaviour that promote social justice and end poverty; Governance costs – includes the costs of internal and external audit, Board expenses and an apportionment of the salary costs of the senior executive team relating to time spent by them on the governance of CAFOD’s activities.
(e) Foreign currency translation Transactions in foreign currencies are translated at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rate of exchange on that date and any differences on exchange written off to the income and expenditure account.
(f) PensionsCAFOD operates four contributory money purchase pension schemes. Scheme funds are independent of CAFOD's finances and are administered by separate trustees for one scheme and by CAFOD trustees for two schemes. CAFOD's contributions are charged in the Statement of Financial Activities in the year in which they are made. One of the schemes that CAFOD is a member of is the Pensions Trust’s Growth Plan.The Growth Plan is a money purchase pension scheme which also has some historical guarantees. This is a multi-employer pension scheme for which it is not possible to identify separately the assets and liabilities of participating employers and, as such, CAFOD’s financial statements include pension costs payable in respect of this plan on a defined contribution basis. Further disclosures in relation to the Growth Plan are given in note 15.
(g) Fixed assets Tangible assets costing £1,500 or more are capitalised. Depreciation on assets is charged from the date of first usage and provided on the straight line method at the following annual rates in order to write off each asset over its estimated useful life:
Leasehold land and buildings (subject to annual impairment review) 1-2% on costPlant and machinery over 15 yearsComputers, office furniture and equipment and motor vehicles 25% on cost
(h) InvestmentsInvestments are included on the balance sheet at their market value at the end of the financial year. Realised and unrealised gains and losses are credited, or debited, to the Statement of Financial Activities inthe year in which they arise.
39
Notes to the Consolidated financial statements 31st March 2014
Accounting policies (continued)
(i) StockThe cost of publications and promotional and educational material is written off in the year in which it is incurred. Stock held by the trading company for sale is shown at the lower of cost and net realisable value.
(j) Fund accounting Designated funds comprise funds set aside out of unrestricted funds for specific future purposes. General reserves represent those monies that are freely available for application towards achieving any charitable purpose that falls within the charity's charitable objects. Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to conditions imposed by donors.
Endowment funds comprise monies that must be held indefinitely as capital. Income therefrom is credited to general funds and applied for general purposes unless under the terms of the endowment such income must be used for specific purposes in which case it is credited to restricted funds.
(k) Operating leasesRentals payable under operating leases are charged to the SOFA as incurred over the term of the lease.
1. Incoming resources
2014 2013£000 £000
1(a) Contributions from Caritas and other Catholic agencies were from:Caritas Australia 548 798Caritas Austria 82 207Caritas Belgium (refund) (3) 285Caritas Denmark - 51Caritas Germany 69 -Caritas Italy 198 -Caritas Japan 27 29Caritas Korea 65 33Caritas Luxembourg 128 177Caritas New Zealand 26 -Caritas Norway 21 -Caritas Spain 143 108Caritas Switzerland 219 59Catholic Relief Services 184 (7)Cordaid - 340Development & Peace 724 694Scottish Catholic International Aid Fund 103 460Sécours Catholique 92 242Trócaire 247 91Others 94 90Caritas and other Catholic agencies 2,967 3,657
40
Notes to the Consolidated financial statements 31st March 2014
(1) Incoming resources (continued)
1(b) Government and institutional grants were from:
2014 2013£000 £000
Governmental:UK Government – DFID Programme partnership agreement 4,178 4,178UK Government – DFID UK Aid Matched Funding 3,063 3,063UK Government – DFID Typhoon Haiyan rapid response fund 652 -UK Government – DFID Emergency assistance Masisi DRC 585 -UK Government – DFID Governance and Transparency Fund - 1,100UK Government – DFID Other 26 643UK Government – Other - 50European Union 3,334 833Government of Japan - 78Government of Guernsey 40 -Government of Isle of Man 53 30United Nations agencies 8 105United Nations agencies (in kind) 251
Non-governmental:Comic Relief 15 224HAP International/People in Aid/ The Sphere Project - 272HIVOS 84 84Islamic Relief 50 -Norwegian Church Aid 133 92Positive Action for Children Fund 103 -Others 73 110
Government and institutional programme grants 12,397 11,113
1(c) Donations from supporters in respect of emergency appeals can be analysed:
Unrestricted Restricted Total Totalfunds funds 2014 2013£000 £000 £000 £000
Emergency appeals – direct 916 6,788 7,704 797Emergency appeals – via DEC - 1,199 1,199 1,375
Donations from supporters – emergency appeals 916 7,987 8,903 2,172
41
Notes to the Consolidated financial statements 31st March 2014
2. Total resources expended
Activity Support Total TotalGrants costs costs 2014 2013
£000 £000 £000 £000 £000
Cost of generating fundsFundraising trading costs - 47 - 47 62Cost of generating voluntary income - 5,035 804 5,839 5,869
Charitable activitiesInternational development 15,630 6,778 1,530 23,938 26,170Disaster relief 10,308 3,491 743 14,542 12,314Development education 77 2,284 454 2,815 2,800Advocacy and campaigning 184 3,123 604 3,911 3,531
Governance costs - 339 28 367 344
Total resources expended 26,199 21,097 4,163 51,459 51,090
Amounts included as grants include both cash payments made to partners and in-kind goods and services procured by CAFOD on their behalf. Support costs are allocated on the basis of the full-time equivalent number of staff contributing towards each activity and are categorised as follows:
2014 2013
£000 £000
Information technology 1,260 1,384
Human resources & organisational development 1,226 1,217
Financial management 1,073 1,047
Premises and facilities 604 506
Support costs 4,163 4,154
Governance costs are made up as follows:
2014 2013
£000 £000
Board training and meeting costs 8 7
Audit fees (UK and overseas) 67 62
Legal services 47 47
Internal audit 69 48
Strategic management and directorate 148 151
Allocated support costs 28 29
Governance costs 367 344
42
Notes to the Consolidated financial statements 31st March 2014
3. Grants payable in the furtherance of the charity’s objectives
Grants are funds made available to partner programmes, mainly comprising the transfer of cash funding but also including the provision of in kind goods and services procured by CAFOD on behalf of partners.
Analysis by region 2014 2014 2013 2013no. of
grants £000no. of
grants £000
Africa 228 15,700 283 16,130Latin America and Caribbean 141 4,456 140 6,119Asia and Middle East 135 5,143 129 4,342Global, policy and education 77 900 69 890
Total grants 581 26,199 621 27,481
A list of grants is available from: Director of Finance and Services, CAFOD, Romero House, 55 Westminster Bridge Road, London, SE1 7JB.
Analysis by sector 2014 2014 2013 2013no. of
grants £000no. of
grants £000
Conflict resolution 32 917 31 1,010 Economic advocacy 57 1,343 65 1,504 Education 43 397 47 655 Disaster relief 114 10,316 98 8,560 Health 32 1,989 24 1,213 HIV/AIDS 54 1,845 68 2,085 Human rights 132 3,507 155 4,180 Sustainable livelihoods 117 5,885 133 8,274
Total grants 581 26,199 621 27,481
43
Notes to the Consolidated financial statements 31st March 2014
3. Grants payable in the furtherance of the charity’s objectives (continued)2014 2014 2013
Africa no. of grants £000 £000Burundi 1 18 86Central African Republic 1 29 -Chad - - 20Democratic Republic of Congo 35 1,811 1,623Egypt 2 20 -Eritrea 4 1,602 1,699Ethiopia 6 749 1,607Kenya 24 1,806 1,061Liberia 4 230 375Malawi 4 145 218Mali - - 20Mauritania - - 60Mozambique 18 852 869Namibia 1 20 -Niger 4 288 629Nigeria 7 667 181Rwanda 2 40 234Sierra Leone 9 457 289Somalia - (9) 602South Sudan 22 883 1,275Sudan 11 2,341 2,082Swaziland 3 203 116Tanzania 3 164 185Uganda 11 697 340Zambia 16 935 784Zimbabwe 28 1,486 1,349Multi-country 12 266 426
Africa 228 15,700 16,130
44
Notes to the Consolidated financial statements 31st March 2014
3. Grants payable in the furtherance of the charity’s objectives (continued)
2014 2014 2013Latin America and Caribbean no. of grants £000 £000Bolivia 21 478 440Brazil 29 1,272 1,314Colombia 10 538 457El Salvador 6 154 171Guatemala 11 511 449Haiti 6 319 1,969Honduras 6 150 139Mexico 4 95 97Nicaragua 8 256 334Paraguay 3 55 83Peru 16 327 371Multi-country 21 301 295
Latin America and Caribbean 141 4,456 6,119
Asia and Middle East 2014 2014 2013no. of grants £000 £000
Afghanistan 6 109 686Bangladesh 12 263 395Cambodia 14 349 296East Timor 5 59 132India 1 50 -Indonesia - - 115Iraq 1 31 -Israel 3 66 64Jordan 3 155 -Lebanon 6 433 173Myanmar 18 325 208Pakistan 8 286 1,165Philippines 16 1,721 278Sri Lanka 17 287 472Syria 10 576 60Thailand 1 20 25Turkey 2 35 15West Bank and Gaza 5 290 167Multi-country 7 88 91
Asia and Middle East 135 5,143 4,342
45
Notes to the Consolidated financial statements 31st March 2014
4. Net (outgoing)/incoming resources for the year
Net (outgoing)/incoming resources are stated after charging/(crediting) the following:
2014 2013
£000 £000
Depreciation of tangible fixed assets 377 281
Auditor’s remuneration: UK audit – CAFOD 32 31
Auditor’s remuneration: UK non audit –CAFOD 3 3
Auditors remuneration: audit – CAFOD Trading 2 2
Profit on sale of tangible fixed assets (3) (5)
Operating leases: land and buildings 255 272
5. Employees and trustees The average full-time equivalent (FTE) number of employees employed during the year and their cost can be broken down as follows:
Cost2014
FTE2014
Cost2013
FTE2013
£000 No. £000 No.Generating funds 3,590 89 3,510 90International development 4,810 169 4,337 163Disaster relief 2,535 82 2,236 78Development education 1,985 50 1,934 50Advocacy and campaigning 2,703 67 2,332 60Governance 221 3 214 3
15,844 460 14,563 444
Total employee costs by expense category were:
2014 2013
£000 £000
Salaries 13,522 12,571
Employer's social security costs 1,202 1,084
Employer's pension contributions 1,120 908
15,844 14,563
Included in the above staff costs are costs relating to redundancy and compensation for loss of office of £25,756 (2013: £96,524).
In addition to these employees, CAFOD relied on the services of 2,700 parish-based volunteers, 300 school volunteers and some 100 volunteers engaged in work outside their parishes. CAFOD also recruited and employed an average of eight international humanitarian programme staff (2013: eight) at a cost of £304,000 (2013: £313,000) who were seconded to partners’ relief operations and hosted a further two people (2013: 2) employed by AB Colombia costing £70,000 (2013: £68,000).
The trustees do not receive any remuneration for their services. CAFOD paid the cost of travel for three trustees (2013: eight trustees) to attend quarterly board meetings and for the
46
Notes to the Consolidated financial statements 31st March 2014
accommodation of all trustees at the annual residential board meeting, and also paid the costs for three trustees to visit CAFOD programmes during the year (2013: five). Together, this cost a total of £7,774 (2013: £13,264).
The number of other employees whose emoluments (excluding employer’s pension contributions) amounted to over £60,000 in the year was as follows:
2014 2013
No. No.
£60,001-£70,000 4 3
£70,001-£80,000 2 2
£80,001-£90,000 - 1
£90,001-£100,000 1 -
The highest paid employee, the Director of CAFOD, received remuneration for the year of £90,464 (2013: £88,258). Pension contributions of £50,844 (2013: £40,861) were made for the six (2013: five) higher paid employees in the year. Employer’s pension contributions include £29,004 (2013: £32,307) paid to pension schemes, the trustees of which are the same as the Foundation trustees of CAFOD.
6. TaxationCAFOD is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities. All of its income falls within the various exemptions available to registered charities.
7. Fixed assets
7a) Tangible fixed assets
Leasehold land and
buildings
Office equipment
Motorvehicles
Total
£000 £000 £000 £000CostAt 1 April 2013 11,533 679 704 12,916Additions - 65 37 102Disposals - (154) (57) (211)At 31 March 2014 11,533 590 684 12,807DepreciationAt 1 April 2013 386 561 465 1,412Charge for the year 211 69 97 377On disposals - (154) (57) (211)At 31 March 2014 597 476 505 1,578
Written down valuesAt 31 March 2014 10,936 114 179 11,229At 1 April 2013 11,147 118 239 11,504
As at 31 March 2014, CAFOD had no capital commitments (2013: nil). Leasehold land and buildings includes Romero House (net book value at 31 March 2014: £10.5m) which is used as CAFOD’s head office and The Stableyard (net book value at 31 March 2014: £0.4m) which is leased to another international development charity at less than market value.
47
Notes to the Consolidated financial statements 31st March 2014
7. Fixed assets (continued)
7b) Investments
2014 2013£000 £000
Sterling deposits 3,540 3,540Permanent endowment fund 439 430Investments 3,979 3,970
The permanent endowment fund is invested in CCLA Charities Ethical Investment Fund Income Units at a historic cost as at 31st March 2014 of £449,024 (2013: £449,024). The movement on investments during the year was:
2014£000
Market value brought forward 430Unrealised gain 9Market value carried forward 439
CAFOD also owns the entire £3 share capital of The CAFOD Trading Company Limited (Company Registration No. 989846), details of which are included in note 12 below.
8. Debtors and prepayments Group
2014Group
2013£000 £000
Interest receivable 50 73Taxation recoverable 511 681Accrued income 1,031 1,490Prepayments 178 119Other debtors 316 361Debtors and prepayments 2,086 2,724
Included in accrued income above is amount of £110,000 (2013: £62,000) relating to legacies.At the balance sheet date, CAFOD also had entitlement to a number of material legacies from estates for which the administration had yet to be finalised. The future income from these legacies is estimated at £3,300,000 (2013: £3,685,000).
9. Creditors falling due within one year Group
2014Group
2013£000 £000
Programme creditors 5,112 7,643Taxation and social security 318 300Other creditors and accruals 959 788Interest free loans from supporters 83 103Creditors due within one year 6,472 8,834
Other creditors and accruals include pension contributions of £294,884 (2013: £280,830).Programme creditors represent grants approved that are yet to be paid to partners. Some grants for partners are approved in principle for two or three years. Second and third year grants represent planned future commitments, but are not recognised as a liability when they are approved, as payment is conditional upon satisfactory progress. As at 31 March 2014
48
Notes to the Consolidated financial statements 31st March 2014
planned future commitments under formal multi-year funding cycle approvals amounted to £7.2m (2013: £7.0m).
10. Unrestricted reserves and funds
Balance Incoming Resources Balance1 Apr 13 resources Transfers expended 31 Mar 14
£000 £000 £000 £000 £000
General fundsStabilisation fund (in cash) 3,540 - - - 3,540Stabilisation fund (in fixed assets) 5,460 - - - 5,460Free reserves 1,152 31,330 (3,431) (28,538) 513
10,152 31,330 (3,431) (28,538) 9,513
Designated fundsFixed asset fund 6,044 - (275) - 5,769Programme fund 9,766 - 3,706 (5,881) 7,591
25,962 31,330 - (34,419) 22,873
General funds: General funds are unrestricted funds in hand, over and above those set aside for designated purposes. These are held either because more general income has been received than was expected or because budgeted expenditure has not been incurred. The trustees have established a policy to spend any general reserves on CAFOD’s programme and partners promptly, taking the opportunity to meet existing needs or invest for the future, whilst ensuring that any further commitments which the expenditure generates are sustainable.
The trustees have established a stabilisation fund to limit the risk of disruption to CAFOD’s charitable programme associated with the financial risks the organisation faces. Alongside the potential risks associated with the assets that CAFOD holds and with potential unforeseen costs, the trustees consider the main financial risk to be an unexpected downturn in budgeted general income. To cope with any unexpected downturn in budgeted general income without damaging the long-term programme commitments (detailed in note 10) that CAFOD makes to its partners, CAFOD would need at least two years to adjust these programmes. Based upon a possible shortfall of 15 per cent in the budgeted general income and the need for two years to adjust programmes, the trustees have established the level of the Stabilisation fund at 30 per cent of the budgeted general income for the coming year.
When the construction of Romero House, CAFOD’s head office, was completed at a cost of just under £11m around half was funded from selling the previous head office and the remainder from using cash already held as the stabilisation fund. The trustees have agreed to hold some of this stabilisation fund in property on the understanding that if CAFOD ever needs to utilise these funds then it will take out a loan mortgaged on the new offices to release the necessary cash. CAFOD's bankers have signified their willingness in principle to provide such a loan.
Designated fixed assets fund: The fund for fixed assets represents the net book value at the balance sheet date of unrestricted tangible fixed assets, other than those covered by the stabilisation fund, as explained above. This fund is not therefore available for current expenditure, as the assets are used in the day to day operation of the charity.
Designated programme fund: The fund represents available funds which the trustees have designated for expenditure on specific programme activities within the detailed budget for the coming years.
49
Notes to the Consolidated financial statements 31st March 2014
11. Restricted funds
Balance Incoming Unrealised Resources Balance1 Apr 13 Resources Gain expended 31 Mar 14
£000 £000 £000 £000 £000
Restricted FundsGeneral donations & legacies 419 4,071 - (4,182) 308Emergency appeal donations 3,195 7,987 - (4,132) 7,050Caritas/Catholic agencies 1,290 2,867 - (3,813) 344Government and institutions 19 5,014 - (4,895) 138Interest - 18 - (18) -
Permanent endowmentSr. Laura Tanti Foundation 430 - 9 - 439
Restricted funds 5,353 19,957 9 (17,040) 8,279
The balances on restricted funds represent those amounts received from donors for specified purposes or regions that had not been expended at the balance sheet date. As at 31 March 2014 the balances held were for the following purposes:
2014 2013£000 £000
Africa Programme 1,725 3,542Asia and Middle East Programme 5,995 457Latin America Programme (45) 538General Programme 165 386
Permanent endowment 439 430
Total restricted and permanent endowment funds 8,279 5,353
For programme grants from governments and institutions, the timing of receiving funds and spending on programmes activities varies, with some programmes in surplus (with grants received in advance of being spent) and some in deficit (with funds received after being spent). The balance of funds from governments and institutions at 31 March 2014 is shown net with:
2014 2013£000 £000
Programme grants in surplus 1,457 1,021Programme grants in deficitDRC Programme (589) (536)Kenya Programme (368) (134)Lebanon Programme (17) (120)Nigeria Programme (129)Zimbabwe Programme (60) (76)Other programmes (158) (136)
Government and institutional grants 138 19
The Permanent Endowment relates to the Sister Laura Tanti Foundation for which CAFOD has received cumulative donations of £421,155 (2013: £421,155) held under trust deeds. The trustees of CAFOD hold this amount and its income in trust and will apply the income for the benefit of the poor as stipulated.
50
Notes to the Consolidated financial statements 31st March 2014
12. Analysis of net assets between funds of the charity and trading company
Unrestrictedfunds£000
Restrictedfunds£000
Permanentendowment
funds£000
2014Total
charity£000
2014Trading
company£000
2014Total
group£000
Fund balances at 31 March 2014 arerepresented by:
Tangible fixed assets
11,229 - - 11,229 - 11,229
Investments 3,540 - 439 3,979 - 3,979Net current assets 8104 7,840 - 15,944 - 15,944
Total net assets 22,873 7,840 439 31,152 - 31,152
CAFOD, the charity, owns the entire £3 share capital of The CAFOD Trading Company Limited (Company Registration No. 989846), the principal activity of which is to carry out commercial activities for the benefit of the charity.
In addition to the above, there was £97,336 (2013: £64,046) owing from the CAFOD Trading Company to the charity as at 31 March 2014.
The turnover of the CAFOD Trading Company for the year was £51,188 (2013: £66,704). All the profits of the company, which would otherwise be liable to corporation tax, are payable under Gift Aid to the charity, CAFOD. The gross payment for the year therefore amounted to £3,866(2013: £3,806). This payment is considered to be a charitable contribution. The net assets of the company at 31 March 2014 were £3 (2013: £3).
13. Handling funds and accounting services for other agencies
CAFOD provides accounting and company secretarial support to Crosby Support Limited, a company (number 2949213) formed by CAFOD supporters to operate a shop in Waterloo, Liverpool. The shop acts as a focal point for CAFOD supporters in the Liverpool area to meet and participate actively in CAFOD’s charitable aims, vision and values, locally. Since it began in 1993, Crosby Support Limited has donated £595,000 to CAFOD. Crosby Support Limited has its registered office at CAFOD’s head office, Romero House.
14. Pension costsThe charity operates four contributory money purchase pension schemes. Scheme funds are independent of the charity and are administered by CAFOD foundation trustees for two schemes and separate trustees for the other two schemes. For these schemes, CAFOD paid contributions at the basic rate of 10 per cent during the year and members paid contributions at a basic rate of 5 per cent during the year. For members with more than 10 years service, CAFOD paid 12.5 per cent and also matched any additional members’ contributions up to a maximum of 17.5 per cent in total.
One of the schemes that CAFOD participates in is the Pensions Trust’s Growth Plan, a multi-employer pension plan which is funded and is not contracted out of the state scheme. As at the balance sheet date there were 171 active members of the Growth Plan (31 March 2013: 71).CAFOD intends to continue to offer membership of the Growth Plan to its employees along with the Pension Trust’s Flexible Retirement Plan.
Contributions paid into the Growth plan up to and including September 2001 were converted to defined amounts of pension payable from normal retirement date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the growth plan or by the purchase of an annuity.
51
Notes to the Consolidated financial statements 31st March 2014
14. Pension costs (continued)The trustee of the plan commissions an actuarial valuation every three years to determine the funding position of the plan by comparing the assets with the past service liabilities at the valuation date and the rules of the plan give the trustee the power to require employers to pay additional contributions in order to ensure that the statutory funding objective under the Pensions Act 2004 is met.
The triennial actuarial valuation results at 30 September 2011 were finalised during the year ended 31 March 2013. The valuation of the plan was performed by a professionally qualified actuary using the Projected Unit Method. The market value of the Growth plan’s assets at the valuation date was £780 million and the plan’s technical provisions (i.e. past service liabilities) were £928 million. The valuation therefore revealed a shortfall of assets compared with the value of liabilities of £148 million, equivalent to a funding level of 84 per cent.
The valuation resulted in a proposed recovery plan being issued by the Actuary which sets out the steps needed to make up the funding shortfall. Part of this recovery plan requires that participating employers including CAFOD will pay additional contributions over a 10-year period to help eliminate the scheme’s current deficit. CAFOD’s additional contribution in respect of the year ended 31 March 2015 will be £73,235 and contributions for the following eight years will be this sum increased by 3 per cent compound per year. CAFOD’s regular pension contributions for the year ended 31 March 2015 for all its pension arrangements are estimated to be £1,270,000 (2014: £892,000).
Following changes in legislation in September 2005 and November 2011, there is a potential debt on the employer that could be levied by the plan’s trustee. The plan’s trustee’s policy was that the application of the potential debt only applied to employers with pre October 2001 liabilities in the plan. The Pensions Act 2011 has this year extended this definition to include post-October 2001 contributions. The debt is only due in the event of the employer ceasing to participate in the plan or the plan winding up.
CAFOD has been notified by the Pensions Trust of the estimated employer debt on withdrawal from the plan based on the latest assessed financial position of the plan as at 30 September2013. As of this date the estimated share of the employer debt for CAFOD was £2,136,816 (30 September 2012: £2,605,873).
In the opinion of CAFOD’s trustees, as CAFOD intends to continue offering membership of the plan and as they are unaware of any intention for the plan to be wound up, the debt is unlikely to crystallise in the foreseeable future and therefore no provision is required to be made in these financial statements.
15. Operating lease commitments
At 31 March 2014, CAFOD and CAFOD Group were committed to making the following payments during the next year in respect of operating leases for land and buildings in England and Wales that expire as follows:
2014£000
2013£000
Within one year 16 27In the second to fifth years inclusive 4 4
20 31
52
Notes to the Consolidated financial statements 31st March 2014
16. Foreign exchange forward contracts
During the year CAFOD entered into foreign exchange forward contracts with the objective of partially hedging currency exposure on future overseas expenditure. The fair value of these contracts is calculated at the balance sheet date by comparison between the rate implicit in the contract and the exchange rate at that date
The contracts are to purchase US dollars (USD) and sell sterling (GBP) for a period of up to 12months in duration, at USD/GBP rates between 1.59 and 1.67. At the balance sheet date, a purchase value of USD 12.1 million remained on these contracts representing approximately 50per cent of forecast USD correlated overseas charitable expenditure for 2014/15 that is not funded back to back in USD. The unrealised loss on these contracts at 31 March 2014 which has not been included in these financial statements was £64,000 (2013: unrealised profit £201,000)
Principal and registered address
Romero House 55 Westminster Bridge RoadLondon SE1 7JB
Patron
His Eminence, Cardinal Cormac Murphy-O’Connor
Foundation trustees
Right Reverend John Arnold (Chair)Right Reverend Kieran Conry Catherine Newman QCMary Ney
Trustees
Charles Reeve-Tucker FCA (Honorary Treasurer)
John Darley (Vice-Chair)Dominic Jermey CVO OBELeslie Ferrar CVO FCAChristopher Knowles Margaret MwanikiFr James O’Keefe Fr Timothy Radcliffe OP Joanne RuleHugo Slim
Corporate Leadership
Chris Bain – DirectorJacquie Heany – Organisational Development and People Jo Kitterick – Corporate Planning and GovernanceTom O’Connor – Communities and Supporters Geoff O’Donoghue – International ProgrammeJames Steel – Finance and ServicesNeil Thorns – Advocacy Programme
Principal professional advisers
Auditors: Crowe Clark Whitehill LLP, Salisbury Square, LondonSolicitors: Bates Wells Braithwaite, Cannon Street, LondonBankers: Royal Bank of Scotland, Cavendish Square, London
Organisational details
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cafod.org.uk Romero House, 55 Westminster Bridge Road, London, SE1 7JB, United Kingdom.Email: [email protected] Telephone: 020 7095 5670
CAFOD is the official overseas development and relief agency of the Catholic Church in England and Wales.
Registered charity no. 285776
Printed on 100% recycled paper
Photographs: Simon Rawles, Dado Galdieri, Anne Bungeroth, Paul Green, Claudia Torres DPA, David Snyder