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Charity number: 1056731 Company number: 3213889

Medair UK TRUSTEES’ REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011

PKF (UK) LLP


Medair UK TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 31 DECEMBER 2011

CONTENTS Page DIRECTORS, OFFICERS & REGISTERED OFFICE

2

TRUSTEES’ REPORT INTRODUCTION Chair’s Introduction

3

INPUTS Legal Basis, Objects & Principal Activity, Organisational Values, Related Parties Structure, Governance & Management Recruitment of Trustees Contribution of Volunteers Cost of Operation

4 5 5 6 6

OUTPUTS 2011 Operations

7

OUTCOMES Performance Against 2011 Targets & Targets for 2012 Financial Position Future Plans Awards & Memberships

8-9 9 9 10

IMPACT Selection of Beneficiaries, Beneficiary Accountability Core Competencies Field Visit Report Somalia/Somaliland Afghanistan

11 11-13 14-15 16-17 18-19

POLICIES & RISK Restricted & General Funds Reserves Ethical Investment Environmental Stewardship Risk Management Trustees

21 21 21 22 22 22

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

23

INDEPENDENT AUDITOR’S REPORT

24

STATEMENT OF FINANCIAL ACTIVITIES

25

BALANCE SHEET

26

NOTES TO THE FINANCIAL STATEMENTS

27-32

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Medair UK DIRECTORS, OFFICERS & REGISTERED OFFICE

TRUSTEES F Alldridge S Ash P L Doyle J Eyre K I Frost E M Hughes J R C Ingram N R S Longworth K Osborn J Rey A Stobart

(Appointed 04/10/2011)

(Resigned 17/11/2011) (Appointed 04/10/2011)

COMPANY SECRETARY P Doyle

SENIOR STAFF B M Paine

Development Director

COMPANY NUMBER

CHARITY NUMBER

3213889

1056731

REGISTERED OFFICE Unit 3 Taylors Yard 67 Alderbrook Road London SW12 8AD Tel.: 020 8772 0100 Fax: 020 8772 0101 Web: www.medair.org Email: united.kingdom@medair.org

BANKERS

AUDITORS

HSBC 1 High Street Harpenden Hertfordshire AL5 2RS

PKF (UK) LLP Farringdon Place 20 Farringdon Road London EC1M 3AP

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Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

INTRODUCTION CHAIR’S INTRODUCTION

Dear Friend, On behalf of the Board of Medair UK, I am pleased to present our Report and Accounts for 2011. We hope that you find the information easily accessible, showing how resources were turned into life-saving help for the world’s most vulnerable people. The accounts show that overall income to Medair UK fell in 2011 compared with 2010. This reflects a number of factors, primarily a change to manage some European Commission grants directly between Medair (Switzerland) and the Commission, without Medair UK. We welcome this move to simplify without reducing the overall benefit. The relative cost of generating funds rose accordingly. This fall in institutional income was accompanied by a fall in income from private donors. However, for a small team to raise over £470,000 in such a challenging economic climate remains a strong fundraising performance – and allowed Medair UK both to grant income to vital humanitarian projects, and to end 2011 in a strong financial position. We are pleased to record a strong performance in 2011 in other important measures, including the generation of applications from potential field staff, and Board membership with two trustees welcomed, both of whom have excellent and relevant experience. Pages 14-19 of this report demonstrate why all of this is so important: the world’s most vulnerable people – those who need most help, but so often get the least – face very real challenges just to survive. With the support of many generous people, churches, companies, trusts and other organisations, Medair UK has this year continued to provide the people, funding and prayer needed to deliver life-saving help where it’s most needed. Our heartfelt thanks go to all our supporters. It is also my privilege to lead the Board’s thanks for the exemplary service of two of our number. > Firstly, we wish to recognise the contribution of Esther Hughes, my predecessor as Chair. Under Esther’s leadership, the Board has continued to grow in both skill and effectiveness and I have been pleased to take over at such a time as this. > We also wish to thank Joshua Rey who, after more than 10 years as a Trustee of Medair UK, stepped down from the Board in November. Also a former Chair of the Board, Joshua first worked with Medair in the field and brought that understanding and passion, together with his extremely keen insight to our discussions – often bringing pithy clarity to complex matters. The Board, the charity and those we serve are immeasurably better off for Esther and Joshua’s contributions and we thank them heartily. Please get in touch, attend an Open Evening or consider applying to work with us if you would like to join us in serving the most vulnerable. Thank you,

Fiona Alldridge Chair of the Board fiona.alldridge@medair.org -3-


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

INPUTS LEGAL BASIS Medair UK is registered in England and Wales, both as a charity (no. 1056731) and a company limited by guarantee (no. 3213889). It is governed by a Memorandum and Articles of Association dated 19th June 1996. OBJECTS & PRINCIPAL ACTIVITY Medair UK’s objects are to relieve human need, hardship and suffering in whatever parts of the world particularly by means of mobilising and deploying human and material resources to provide appropriate relief and aid to distressed populations, without racial, political or religious discrimination. In keeping with this and paragraphs (g), (h) and (k) of its Memorandum and Articles of Association, Medair UK pursued these objects through the provision of resources in support of the multisectoral relief and rehabilitation projects co-ordinated by Medair (Switzerland). During 2011, Medair (Switzerland) co-ordinated field operations in Afghanistan, D.R. Congo, Haiti, Madagascar, Somalia/Somaliland, Sudan, South Sudan and Zimbabwe. In setting objectives and planning activities, Medair UK’s Directors and Officers have given careful consideration to the Charity Commission’s general guidance on public benefit and, in particular, its supplementary benefit guidance on prevention or relief of poverty. An overview of the significant activities and achievements undertaken in order to carry out the charity’s aims of providing relief and aid without discrimination to some of the world’s most vulnerable, and bringing their needs to the attention of the wider public, can be found in the Outputs, Outcomes and Impact sections of this report. ORGANISATIONAL VALUES Integrity – We strive to live out our values and principles consistently at every level of the organisation, and in every location – from the most remote team to international headquarters. Our desire is that, as we work together, our attitudes, words, and actions will be true to Medair’s vision and character. Hope – We seek to bring hope to people devastated by crisis and caught in apparently hopeless situations. Together with the communities we serve, we strive to make sustainable improvements and increase their capacity to build a better future. Compassion – We desire to relieve human suffering in times of crisis, disaster, and conflict. We seek out people who are the most vulnerable, come alongside them and offer practical support through relief and rehabilitation initiatives. Accountability – We are committed to best practices in our management and operations, pursuing excellence in all that we do. We make ourselves accountable to our supporters, our staff, and those we serve, and seek input from them to help us improve our activities and procedures. Dignity – We believe that each person has been made in God’s image and is therefore uniquely valuable and worthy of highest respect. Consequently, we reach out to all in need, irrespective of their race, gender, religion, age, or nationality. Wherever possible, we personalise our assistance, taking individual needs and circumstances into account, and respecting the dignity and independence of the people we serve. Faith – Because we follow Jesus Christ, who taught that our highest goal is to love God and to care for those in need, we are motivated to care for those who suffer. Our faith inspires us to give our best in all circumstances. By faith, we pray for wisdom when facing difficult decisions, and for courage to live and work in demanding and often dangerous situations. RELATED PARTIES Medair UK is a Medair affiliate office, co-operating with Medair (Switzerland) through an Affiliation Agreement, which governs this relationship. Medair (Switzerland) is a registered charity in the Swiss Canton of Vaud, with offices at Chemin du Croset 9, 1024 Ecublens, Switzerland. There are other Medair affiliate offices located in France, Germany, the Netherlands and the United States. -4-


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

STRUCTURE, GOVERNANCE & MANAGEMENT In 2011, Medair UK’s Board of Trustees (who are also Directors for the purposes of company law) oversaw the work of a Development Director, two Development Managers, a Finance & Support Services Manager, an Administrator (new role) and volunteers, delegating responsibility for day-to-day decision-making to the former.

RECRUITMENT OF TRUSTEES Before appointing (a) new Trustee(s), existing Trustees carry out a self-assessment process to identify areas for development, and expertise desirable in new Board members. The Trustees consider the attributes they believe to be most relevant in ensuring that the Trustee body is best able to serve the charity’s beneficiaries. Following a self-assessment exercise in the second quarter of 2011, the Board pursued the following process for the recruitment and appointment of a new Trustee(s): 1. Solicit expressions of interest through existing supporter network and other public advertisements. 2. Applicants receive skills and person specifications, requirements of a Medair UK Trustee (including eligibility criteria), overview of Medair UK’s Objects and activities, request for CV and letter of motivation. 3. Shortlist applications and invite shortlisted applicant(s) to meet one to three existing Trustees. 4. Invite approved applicant(s) to attend and observe next Board meeting. 5. Reconfirm applicant’(s’) willingness to stand as Medair UK Trustee. 6. Existing Trustees vote to appoint successful applicant(s) at next Board meeting. 7. Continue comprehensive Trustee induction process, including founding, financial and planning documents, Charity Commission approved literature and meetings with all staff. During 2011, one Trustee resigned and two new Trustees were recruited, appointed and inducted. In addition, policies and procedures for the ongoing development of the Board were further improved, including a review of ‘fit and proper persons’ requirements, and the development of a Governance Manual. The 2012 Operating Budget provides for further investment in Governance training and development, including travel to review the work of Medair (Switzerland) in person. -5-


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

CONTRIBUTION OF VOLUNTEERS Throughout 2011, Medair UK’s operations were ably and generously supported by volunteers. Details of the areas in which volunteers assisted are shown below, together with an indicative value of the salary which would have been payable to waged workers carrying out the same work. Volunteer role Fundraising Recruitment of field staff Administration Total

Hourly value £12.00 £12.00 £12.00

Hours donated 56 239 86 381

Total £672 £2,868 £1,032 £4,572

The Trustees and staff are extremely grateful to all the volunteers who gave their time and skills during the year, without whose contribution Medair UK would not have functioned as effectively or fully as it did. COST OF OPERATION Medair UK’s total operating expense for 2011 is summarised below. Direct costs represent expenses attributed directly to key activities (e.g. staff time and appeal mailing costs etc.). Indirect costs represent expenses attributed to activities in support of key activities (e.g. accounting and office costs). Once direct costs have been allocated, indirect support costs are apportioned to Charitable Activities, Cost of Generating Funds, and Governance. The basis for apportionment is staff and volunteer time spent on each activity. It is by this method that Medair UK calculates its fundraising return on investment (ROI), reported below under Outcomes. Activity Fundraising Recruitment of field staff Prayer coordination EC grant management Support of field staff Other activities in support of Medair (Switz.) Governance (inc. audit) Total

Direct costs £172,171 £30,550 £1,020 £95 £1,378 £1,590 £13,824 74%

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Indirect costs £51,450 £18,124 £825 £124 £903 £1,199 £4,008 26%

Total £223,621 £48,674 £1,845 £219 £2,281 £2,789 £17,832 £297,261


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

OUTPUTS 2011 OPERATIONS In 2011, Medair UK sought to enable and support field operations co-ordinated by Medair (Switzerland) by pursuing the following key aims and achievements:

1. Raising funds from individuals and organisations Medair UK appealed directly to individuals, churches and other organisations for funds to meet our charitable objects. Fundraising approaches were made via post, email, internet, social media, telephone and in person. In seeking to develop the value of the relationships it already enjoys with its supporters, Medair UK produced and disseminated newsletters (Medair News) and targeted appeal mailings (focused during this period on Haiti, Somalia/Somaliland, South Sudan and Zimbabwe in particular). In addition, email and other fundraising methods were used and evaluated and staff and Trustees made numerous presentations to groups and individuals in person. In seeking to acquire new supporters, Medair UK attended and spoke at events and churches and otherwise pursued a strategy of networking, largely via its Board of Trustees and returned field staff.

2. Acting as legal partner in the receipt and disbursement of humanitarian grants made by the European Commission Medair UK represented Medair (Switzerland) in acting, under a Framework Partnership Agreement, as legal partner with the European Commission for grants established in previous periods. For each grant received, a binding Project Implementation Agreement had been made between Medair UK and Medair (Switzerland) and the full value of the grant disbursed from the former to the latter, as received. Medair (Switzerland) then co-ordinated all operational activities in the field and provided regular progress, expenditure and impact reports to Medair UK and the Commission. As agreed with Medair (Switzerland), the number and value of the grants Medair UK facilitated reduced in this period.

3. Recruitment of field staff on behalf of Medair (Switzerland) Medair UK attended, exhibited and presented at events and churches and placed recruitment advertisements with targeted publications and web sites. Opportunities were also communicated via email, social media, and a series of Open Evening events. These actions aimed to encourage appropriate candidates to apply to attend the Relief and Rehabilitation Orientation Course (ROC) run by Medair (Switzerland) as a means of both selection and initial training of field staff.

4. Encouraging and resourcing prayer support Prayer partners were recruited through departing field staff and at events and churches. Monthly prayer reports and urgent requests from each country programme were forwarded by email to prayer partners throughout the UK.

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Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

OUTCOMES PERFORMANCE AGAINST 2011 TARGETS & TARGETS FOR 2012

1. Maintain and develop relationship as legal partner with the European Commission. 2011 Target: Maintain positive and fruitful relationship with European Commission (albeit at likely reduced level of income). 2011 Performance: During 2011, Medair UK facilitated 3 EC-funded programmes across Africa and Asia and disbursed a total of €97,647 (£84,738) to Medair (Switzerland) accordingly.. No new EC grant agreements were signed. In late 2007, Medair UK’s partnership with the European Commission was renewed and extended once again, including the signature of a new Framework Partnership Agreement (FPA) with the European Commission Humanitarian Aid department (ECHO), which remains valid until 31st December 2012. In addition, following ECHO’s extensive annual partners assessment exercise, Medair UK (in partnership with Medair (Switzerland)) was selected for the group of most reliable partners, with a risk level indicating that there should be a decrease in administrative burden. This is seen as a great achievement and will support further gains in efficiency. In full agreement with Medair (Switzerland), Medair UK’s role in facilitating EC grant agreements is being reduced, where possible. Medair UK will continue to facilitate existing grants and any future grants, where required, but the Board expects this role and the associated income to reduce significantly. 2012 Target: Maintain positive and fruitful relationship with European Commission (albeit at likely reduced level of income).

2. Grow private / voluntary income. 2011 Target: Raise £550,000 or more in private income. 2011 Performance: Total private income raised £473,804. In total, £155,799 was received in donations restricted to specific programmes and £269,478 in unrestricted donations. These figures were increased by £13,603 and £34,924 respectively, by reclaiming tax on eligible donations through the Gift Aid scheme. In addition, the following notable successes were recorded in 2011: x The number of active major donors grew by 9%; x The number of regular (mainly monthly) donors grew by 16%; x 64% of private income was unrestricted, enabling it to be applied where most needed; Overall in 2011, alongside its other activities, Medair UK invested £223,621 in income generation and achieved a 2.1 average return on investment (ROI). ROI is calculated for income generated from private sources using a cost apportionment method. Once direct costs have been allocated, indirect support costs are apportioned to Charitable Activities, Cost of Generating Funds, and Governance. The basis for apportionment is staff and volunteer time spent on each activity. ROI is the total generated funds divided by the sum of directly allocated and apportioned indirect costs of generating funds. It should also be noted that a proportion of this expenditure relates to income expected to be received in future periods, such as legacies and other gifts which are not reflected in this year’s ROI. 2012 Target: Raise £550,000 or more in private income. -8-


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011 3. Solicit applications to Medair’s Relief & Rehabilitation Orientation Course (ROC) from potential field staff. 2011 Target: Medair (Switzerland) invites at least 25 UK applicants to the ROC. 2011 Performance: Medair (Switzerland) invited 26 UK applicants to the ROC. 2011 was a very successful year in field staff recruitment terms. Of 307 UK applicants, 26 attended the ROC (32% of all attendees). At year end, 16 had joined field projects. UK-sourced staff continued to represent the largest group of all international field staff. In addition to this, 84 applications for HQ vacancies at Medair (Switzerland) and 362 applications for specific field vacancies were received from UKbased candidates during the year. 2012 Target: Medair (Switzerland) invites at least 25 UK applicants to the ROC. 4. Reinvigorate and grow the UK Medair supporter network. 2011 Target: 4,000 active contacts across donors, ambassadors and prayer supporters. 2011 Performance: 3,268 active contacts (1,688 contactable donors, 840 prayer partners, and 740 new contactable non-donors at 31st December). The development of Medair UK’s supporter network failed to meet its target in 2011 because planned donor acquisition activities were postponed due to lack of available funds for this investment. 2012 Target: 4,000 active contacts across donors, ambassadors and prayer supporters.

FINANCIAL POSITION Thanks to fundraising amongst very generous supporters in 2011, Medair UK was able to maintain a good level of reserves (see page 21), whilst continuing activities. This affirms the appropriateness of the long-term fundraising strategies instigated in previous financial periods. At the end of the period, Medair UK remained in a healthy financial position, holding free reserves of approximately £106k which it expects to draw on as working capital during the next 12 months. Free reserves comprise general unrestricted funds less fixed asset and rent deposit funds and are subject to Medair UK’s Ethical Investment Policy (see page 21).

FUTURE PLANS Fundraising shall remain Medair UK’s focus. Medair UK’s medium-term fundraising objective is to raise at least £500,000 per year in unrestricted funding on an ongoing and sustainable basis. This will represent a very significant contribution in serving the needs of those caught in crises in Africa, the Middle East, and Asia. It is expected that the majority of this income will be sourced via channels which Medair UK has already been developing, but additional fundraising plans are also in place for 2012 in the areas of legacies and other new income streams.

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Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011 AWARDS & MEMBERSHIPS

Fundraising Standards Board Medair UK remained a member of the Fundraising Standards Board (FRSB), having joined ahead of the FRSB’s public launch in 2007. The FRSB is the body for self-regulation of fundraising in the UK. The FRSB scheme is open to all fundraising organisations and members agree to adhere to the highest standards of good practice with their fundraising and a Fundraising Promise. They demonstrate membership of the scheme by using the tick logo on their fundraising materials. By participating in the scheme charities are both advertising their commitment to best fundraising practices and giving the public the comfort of a 'safety net' provided by a robust complaints system. At the time of writing, Medair UK has not received any complaints.

ImpACT Coalition Medair UK also remained a member of the ImpACT (Improving Accountability, Clarity and Transparency) Coalition of charities during 2011. The Coalition works together to improve public trust and confidence in the sector, its values and the way charities work. The Coalition aims to raise awareness among the general public of the nature and activities of modern charities, to focus the public debate on the benefits charities bring, rather than on the costs of running them and to improve the standards of transparency and accountability within the sector, communicating with clarity and openness.

ISO Medair was the first humanitarian NGO to become ISO 9001:2000 certified at worldwide level. This includes the activities and operations of Medair UK, as well as those of other affiliate offices, headquarters and field operations. Medair UK’s on-going certification requires not only the maintenance of defined quality processes, but also its commitment to continuous improvement.

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Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

IMPACT The provision of resources from Medair UK played a key role in enabling Medair (Switzerland) to provide lifesaving relief and rehabilitation to the world’s most vulnerable people in 2011. The following pages highlight principles, practice and examples of impact from country programmes coordinated by Medair (Switzerland) that have received funds from Medair UK over the course of the year (including EC grants and private donations). SELECTION OF BENEFICIARIES Medair seeks out the neediest, most vulnerable and neglected people in some of the most remote and hostile regions on earth. During 2011, the International Team met to consider prayerfully who and where were the world’s most vulnerable people. By combining two key European Commission reports, the Global Needs Assessment and the Forgotten Crises Assessment, with other information, Medair identified its beneficiaries – the most urgently needy, most forgotten people on earth. BENEFICIARY ACCOUNTABILITY At Medair, we make ourselves accountable to the people we serve. We involve beneficiaries in the design, implementation, and monitoring of our relief and rehabilitation projects. Our teams prioritise building positive relationships with local communities in order to understand their real needs. We work with beneficiaries, not instead of or in spite of them. We listen to their needs and respond. In this way, we help people recover from their crisis with dignity, with integrity, and with hope for a brighter future.

CORE COMPETENCIES Emergency Relief

When emergencies strike, Medair teams respond rapidly to save lives and reduce the suffering of families in crisis. Examples of emergencies we responded to in 2011: > Cyclone Bingiza in Madagascar > 18 suspected outbreaks of disease in West Darfur, Sudan > Landslides, floods, and acute malnutrition in Afghanistan > Earthquake recovery in Haiti > Severe drought and acute malnutrition in Somaliland > Mass displacement due to conflict in D.R. Congo > Hundreds of thousands of returnees and displaced people in South Sudan Case Study: South Sudan Our South Sudan emergency response teams (ERTs) responded to major crises across the country in 2011, including disease outbreaks, families displaced by regional violence, and hundreds of thousands of returnees who poured over the border from Sudan into the newly independent South Sudan. As thousands gathered in makeshift camps in Apata, water emerged as their most urgent need. People waited for two to three hours just to fill one can of water. In response, our ERT installed a multi-tap distribution system at the main borehole, allowing up to six people to collect water at once. “When we drove back to the site the day after installing the system, the results were clear from afar,” said Medair’s Tim Liptrot. “Instead of a long line of 100 people with jerry cans, there were just a few people gathered around the new tap stand.”

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Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011 Rehabilitation

After the most urgent emergency needs are met, Medair remains committed to helping communities recover from crisis with dignity and with hope for the future. We work alongside local residents to increase their knowledge and skills and to improve the quality of their essential services. Case Study 1: Madagascar In Madagascar’s remote villages, most people live in great poverty. Their suffering is made worse due to recurring cyclones that kill their livestock, destroy their crops, and damage their few possessions. To promote long-lasting change, Medair forms partnerships with local communities to help them carry out projects that will reduce the risk of future disasters and improve the quality of essential services. With a helping hand from Medair, community members do most of the work themselves, developing new skills and gaining a sense of ownership that enhances the long-term impact of the work. “I will just tell you the truth,” said R. Johnny Patrick, District Chief of Maroantsetra. “Thanks to Medair, there have been a lot of changes: better access to safe, clean water, better preparation for cyclone warnings, and awareness on how to take care of infrastructure. I hope for the continuation of the partnership with Medair and that, in a few years, the population will be able to take care of themselves.” Case Stufy 2: Food Assistance Project - Afghanistan In April 2011 Medair launched a food assistance project to assist flood-affected communities living in remote communities in Bamyan province. The primary objective of the project was to give beneficiaries the means to replace the harvest that had been lost in the floods. Beneficiaries were invited to participate in cash-for-work (CFW) activities so they could buy food and other essential items. CFW activities included restoring flood damaged agricultural land and building disaster risk reduction (DRR) structures to reduce the impact of future flooding. Community participation Medair worked closely with community representatives and beneficiaries throughout the planning and implementation of the food assistance project. During the initial needs assessment stage, beneficiaries were consulted about their most pressing needs and how much money they needed to earn to bridge their food gap. With oversight from the project manager and senior Medair staff, community leaders and heads of Community Development Committees identified floodaffected families that were eligible to participate in CFW activities according to the donor’s criteria. Community Development Committees, in consultation with Medair’s field foreman, decided what CFW activities should be undertaken. Some communities decided to concentrate on road repair, while others focused on restoring damaged agricultural land and irrigation. In all cases, the selection of the project was based on what the community felt would best benefit them. Medair also ensured that women were given the opportunity participate in the programme. Female beneficiaries prepared gabion cages which were used to build dams and retaining walls, and also participated in paid health and hygiene training. An important component of the programme was providing financial assistance to families unable to participate in CFW activities. The local community worked with Medair staff to identify vulnerable families – widows, the infirmed, mother and child headed households – who desperately needed special assistance. Medair would not have been able to identify these families without the participation of the community. Sharing of information and complaints handling: Although Medair utilised signboards to communicate project information, the vast majority of beneficiaries were illiterate. Instead, information sharing and complaint handing was achieved through a “hands on” approach by the project manager and senior Medair staff. Medair’s project manager met regularly with beneficiaries, heads of Community Development Committees, - 12 -


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011 and village elders and leaders, to ensure open dialogue about the project and to review the conduct of Medair’s field staff. At a community lunch, organised by various village leaders and representatives, the project manager had the opportunity to share about Medair’s mission, mandate and values, and explained Medair’s commitment to beneficiary accountability. Senior management regularly travelled to the project area and spent significant time with beneficiaries. Surveys were conducted to acquire valuable feedback that helped direct the implementation of the project. Furthermore, Medair’s field communication officer conducted numerous interviews with beneficiaries – in their homes, at project locations, and in mosques – and recorded beneficiaries’ thoughts on the impact of the project and any ideas or concerns they wanted to share. By maintaining close and open relationships with beneficiaries, Medair staff were able to address any complaints that arose, and the information that was received ensured the project fulfilled the needs and expectations of beneficiaries. Training and sustainability Recognising that communities in southern Bamyan remained vulnerable to flooding, Medair offered training in land management and disaster risk reduction so that beneficiaries would have the capacity to mitigate against future disasters without external assistance. Beneficiaries were shown how to effectively employ small cascading dams and gully plugs to reduce the force and volume of flood waters. Medair then supplied villages with shovels, spades, wheelbarrows, and pickaxes so they would have the tools to construct their own disaster risk reduction structures. One of the great successes of the project was seeing motivated communities eagerly putting their training into practice, and begin building their own disaster risk reduction structures, entirely independent of Medair. Over time, as more structures are put into place, and as communities commit to improved land management practices, food security in the area will improve, and the impact of future flooding will be reduced.

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Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011 FIELD VISIT REPORT - ZIMBABWE By Ben Paine, Medair UK’s Development Director In October 2011 I visited Medair’s work in Zimbabwe. It’s always a privilege to travel. But to speak with people we’re helping, to witness their tenacity – and that of our team as they deliver life-saving care to thousands of people – was humbling and fantastically encouraging. Gokwe is a sprawling town of over 25,000 people in the Midlands province of northwestern Zimbabwe. On its western edge lies the neighbourhood of Njelele. It was here that I met Luwis Ncube. Luwis and her six children, including five-month-old Lionel, used to live on the other side of Gokwe in a house with mains water and electricity. But when rent became too high, the family moved here. And so now, while Luwis keeps a happy family home, there’s no running water and no electricity. They were a cheerful, friendly family. Luwis’ daughter Florence told me about school. She was learning European history, and her English class was discussing Animal Farm. And she had exams! But fetching water during the day was interrupting her school work—there’s no tap near the house. And it’s unsafe to fetch water at night. “We’ve seen Medair help elsewhere in Gokwe,” says Luwis. “We’re thankful to their supporters for what they’ve done. We’re very grateful. They’re helping us so much.” And she was right—the impact of the wells has been huge. There used to be no protected water sources here, so waterborne diseases were common. Just three years ago, there were deaths from cholera. Thousands of people now have safe water for the first time – and it was great to share in some of their celebrations! I also met Edson Nyashanu, our WASH (Water, Sanitation and Hygiene) Project Officer in the area. Over the six years Edson has been working with charities in Zimbabwe, he’s seen the difference safe water makes to communities many times – and he wants that for Gokwe too: “I want to see

each and every person in Gokwe having access to safe water.” Edson and his team share their expertise so that long into the future—after Medair has finished its work— communities have the skills to build and rehabilitate their waterpoints. Communities appoint their own ‘water committee’, whose members are trained on how best to manage each new waterpoint. There’s a great sense of ownership—it’s ‘our waterpoint’—and a committee keeps it going. Tools and equipment are donated at the end of the project to ensure sustainability. And the community learns good hygiene practises—a whole package to eliminate waterborne diseases—what Edson calls “Community-based management.” - 14 -


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011 The work is good and the people whose lives it’s changing wanted to share their thanks and see us do even more. The urgency of their requests was heightened by the extraordinary conditions – dry and very, very hot (45°C in the shade). This is no place to try to pass through – let alone survive and raise a family – without water.

You can view more photos from my Zimbabwe trip at www.medair.org/visitingzimbabwe Programme Highlights Total beneficiaries: Internationally/Nationally Recruited Staff:

56,064 4/11

WASH: Rehabilitation • 45 new rural water points constructed, providing safe water to more than 18,000 people • 22 rural water points repaired, increasing quantity of safe water to more than 8,800 people • 10,800 children gained access to at least 3 litres of water/day through installation of rainwater harvesting systems at 12 schools • 180 trainers received training on public health and hygiene; 180 WASH clubs formed in communities and held regular meetings on hygiene practices • 276 people trained to serve on water point committees • 3 new 200-metre boreholes constructed in Gokwe town; 3 submersible pumps and equipment installed • 4 existing 200-metre boreholes had new submersible equipment installed • 3 30,000-litre water storage tanks installed • 12 pumps, motors, couplings, and electrical panels installed; 12 non-return valves fitted into booster pump stations and 8 non-return valves fitted to supply lines for boreholes • 14 flow meters fitted to inlet and outlet pipes • 3 new electrical lines installed to supply electricity to boreholes - 15 -


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011 SOMALIA/SOMALILAND Consecutive droughts have led to a deadly humanitarian crisis in Somaliland. Pastoralist families have lost their herds and exhausted their traditional coping mechanisms, forcing them to leave their villages and placing a serious burden on host communities. Somalilanders are facing high rates of malnutrition, low rates of vaccination, and very minimal health infrastructure to provide relief. Life in a Dry Land

With more than a million lives at risk in Somaliland, Medair launched a major new emergency response to the drought crisis that helped families stay in their remote communities rather than move to camps. “No other foreigners have ever been to this village,” said Sayneb Mohamed, her arms around her three-yearold son Jimcale. “We are too far away.” Indeed, few villages could be more remote than Gumburu Xangeyo, reachable only by driving for five hours on a treacherous dirt track. In September, Medair began delivering health, nutrition, and water, sanitation, and hygiene (WASH) to vulnerable communities scattered throughout the Sool and Sanaag regions. “Bringing aid directly to Somaliland’s remote villages means pastoralists aren’t forced to leave behind everything they have and move to displacement camps,” said Medair’s Ed Nash. Once a prosperous herder in Gumburu Xangeyo, Sayneb lost all of her livestock in the drought. Her son became so malnourished that he could hardly move. “He was close to death,” said Sayneb. “Many children died here before Medair arrived.” In October, Medair began making regular treks to Gumburu Xangeyo and 11 other villages in Sool and Sanaag to deliver a therapeutic feeding programme for malnourished children. “This project has saved the lives of our children,” said Sayneb. “Before, they were weak and unable to digest what little food the adults had to eat. The special food that Medair brings is good for the children.” In the village of Huluul, two-year-old Ahmed Mire lingered on the brink of death. We admitted him, along with more than 500 severely malnourished children this year, into the Medair-supported stabilisation centre in Burao. “Specially trained nurses and medical staff watched over Ahmed night and day, treating his illnesses and medical complications, and feeding him therapeutic milk and food,” said Medair’s Dr. Adele Cowper. “Despite the severity of his condition, Ahmed began to recover, regaining his appetite and putting on weight.” Integrated Relief In 2011, Medair continued to provide integrated health, nutrition, and WASH for people living in Burao’s displacement camps and host settlements. We supported 22 sites in and around Burao, and we began providing relief in rural areas in the south of the region. Across Somaliland, we vaccinated nearly 10,000 children and treated almost 8,000 children for malnutrition. Our hygiene promotion teams made a major impact, reaching more than 40,000 people and distributing 19,000 bars of soap. “I’ve seen a big change,” said Farah Jama Awl, a Medair-trained volunteer who teaches hygiene and hand-washing. “Before, maybe 30 percent took the message, but now I think it’s 100 percent.” Our teams also delivered health promotion demonstrations to more than 30,000 people, teaching women especially about breastfeeding, immunisation, general health care, and the importance of receiving skilled care in a maternal and child health (MCH) clinic when they are in labour. “Women are becoming more willing to deliver here,” said Maryam, a midwife at Kosaar MCH. “The attitude is changing.”

- 16 -


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011 A Precious Resource Water was a major part of our integrated response to the drought crisis. In 2011, our WASH team built 400 latrines and we provided water to more than 3,000 people in two camps through pipelines from Burao’s water supply. In the “15 May” camp, residents danced in celebration at the opening ceremony. “To have this water kiosk means happiness to us,” said Khadija Maoi. In remote communities, livestock herders have traditionally relied on storing rainfall in communal cisterns called berkads. However, with many berkads cracked and unable to store water, our WASH teams rehabilitated six berkads along with 16 shallow wells in 2011, securing reliable sources of water for families and their livestock. “When the rains came, and the water came into our berkad, we were very happy and excited,” said Mohamed Mohamed in Kaladhac village. “We felt like someone who has lost his precious possessions and then gets them back, or as if we were poor and suddenly became rich.”

Programme Highlights Total beneficiaries: Internationally/Nationally Recruited Staff:

166,017 7/49

Health and Nutrition: Emergency Relief x x x x

7,726 children treated for malnutrition 9,959 children vaccinated 19,521 people treated at 6 Medair-supported MCHs 1,346 births with a skilled birth attendant, either at an MCH or with a Medair-supported midwife, nurse, health worker, or maternal volunteer

Health and Nutrition: Rehabilitation x

30,676 people attended at least one health promotion event provided by trained health promoters in Burao

WASH: Emergency Relief x x

19,000 bars of soap distributed 1,412,000 litres of water trucked to 30 villages

WASH: Rehabilitation x x x x x x

400 latrines built 6 berkads and 16 shallow wells rehabilitated 2 camps connected to Burao water supply 30 villages received emergency truckloads of water (more than 1.4 million litres) 41,102 people attended hygiene promotion events 2,300 ceramic water filters distributed

Shelter and Infrastructure: Rehabilitation x

4 MCH clinics rehabilitated

- 17 -


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011 AFGHANISTAN In remote Afghan villages, many families live in severe poverty. Afghanistan has the world’s highest infant mortality rate and the second highest mortality rate for children under five. More than one in four of these deaths are caused by diarrhoea, an indication of the country’s poor sanitation and unsafe water. In 2011, drought pushed many impoverished families beyond their capacity to cope. Joy in Our Eyes

In 2011, Medair’s projects brought hope to some of the most isolated communities on earth. “This is the first time anyone has come to help us,” said Kabir, a 29-year-old farmer in Bamyan province, greeting us with a warm handshake. Kabir was hard at work building a Medair-supported reservoir near his house. “All the water we have comes from the spring,” he said. “Sometimes when I drink the unsafe water I get diarrhoea. My little son has been sick many times from the water.” In 2011, Medair ran water, sanitation, and hygiene (WASH) projects in 136 isolated villages in Bamyan and Badakhshan provinces. We were able to make a difference in so many villages because of the enthusiastic work of community members who gathered materials and carried out most of the labour while Medair staff provided training, supervision, and supplies. “Everyone is very motivated to contribute to this programme,” Kabir told us. “I helped dig out the place where this reservoir is being built, and helped provide stones and sand.” Over the course of the year, we witnessed the ways that safe drinking water can transform a village. “You have put the joy back in our eyes,” said 85-year-old Sufi Tayeb. “Things have changed so much here. This village is hundreds of years old and now, for the first time, we have clean water. Now no one gets sick because of the water.” Better Hygiene, Better Health In 2011, Medair health and hygiene training benefited more than 20,000 villagers. “No one has ever taught me about good health and hygiene before,” said Freba, a mother of three. “All of our children used to get sick often but since we have started practising what the hygiene promoter taught, we don't get sick as often.” When a Medair survey team travelled through southern Bamyan, they visited villages that had benefited from Medair WASH projects and those that had not. They were amazed at the difference. “In areas where Medair has not run its WASH programme, the villages were dirtier, the people looked sicker, and the children had eye infections and skin disease,” reported Medair’s Alan Service. “In these communities we found higher rates of malnutrition as well.” Nutrition in Badakhshan In 2011, we continued to provide nutritional support to malnourished women and children in Raghistan, and we expanded the programme into two new districts as well. In April, 18-month-old Fardin, malnourished and suffering from a high fever, was carried to the new Yawan clinic by his father, Danial. “We have a lot of confidence in Medair because we had heard last year about the work they were doing in other districts,” said Danial. “We know they are offering good care for the people.” In less than a month, Fardin’s health had dramatically improved. “Unbelievable! He has made a lot of improvement,” said Danial with a grateful smile. “My child was about to die, as we live in a remote area without anyone to help us. But now Medair has helped us and we are so proud to have them here.” - 18 -


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

Over the course of the year, Medair treated 599 children under five for severe acute malnutrition, and provided 1,510 moderately malnourished children and 3,085 pregnant and breastfeeding women with nutrient-rich food. We also recruited and trained more than 500 volunteers to teach families about better nutrition. Responding to Disasters In 2011, Medair partnered with two other NGOs to set up assessment, response, and disaster preparedness teams for five of Afghanistan’s most disaster-prone provinces. During the year, we monitored the nutritional status and the impact of drought in villages and provided emergency relief after landslides left 189 people homeless. We also ran a food assistance programme for flood-affected communities in Bamyan to enable more than 700 households to earn money for food while also helping restore damaged cropland, build roads, and mitigate the risk of future disasters. “We have witnessed the restoration and reconstruction of our lands,” said Fatemah, a young woman speaking at a special ceremony of appreciation. “We will never forget the kind help of Medair.” Programme Highlights Total beneficiaries: Internationally/Nationally Recruited Staff:

40,410 14/121

Health and Nutrition: Emergency Relief x x

2,109 malnourished children treated 3,085 malnourished women treated

Health and Nutrition: Rehabilitation x x x

545 volunteer nutrition promoters recruited and trained 9,721 women received nutrition training 88 local health workers trained

WASH: Rehabilitation x x x x x

30 wells dug and 122 water points constructed 435 latrines and 216 bathrooms built 96 hygiene promoters trained 152 water committees established 29 water mechanics trained

Shelter and Infrastructure: Emergency Relief x x

189 families received tents and other non-food items (NFI) 740 men and women participated in cash-for-work activities

Shelter and Infrastructure: Rehabilitation x x x x

195,670 square metres of agricultural land restored 37 springs restored; 32 streams cleared; 39 irrigation ponds restored 17 kilometres of road repaired 600 Disaster Risk Reduction (DRR) structures built; 645 people received DRR training

- 19 -


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

USE OF FUNDS Further information is available in the Medair Consolidated Annual Report 2011, available here: www.medair.org/annualreport

- 20 -


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

POLICIES & RISK RESTRICTED AND GENERAL FUNDS Any funds accepted from private or institutional donors which provide for a specific restriction will always be honoured. These funds are recorded as restricted funds and are accounted for separately. All such funds allocated for specific field operations, are transferred in their entirety to Medair (Switzerland) for use in the appropriate programme. All undesignated funds will first be used to meet operational needs of Medair UK, according to a pre-approved budget. In 2011, these operational needs were 54.4% of incoming resources.

RESERVES The charity aims to hold free reserves which would enable operational and fundraising activities to continue for a period of six months, or the charity to be wound up, should there be a significant drop in funding. After careful consideration, the Trustees believe that £100,000 would be adequate for this purpose. At the time of writing, free reserves held amount to £106,026. Given the seasonal nature of private fundraising, the Trustees have agreed that, in the course of a year, up to £50,000 of these reserves may be used as working capital. However, it is their intention that the charity replenishes its reserves to the full £100,000 and holds this amount at each year end. Free reserves comprise general unrestricted funds less fixed asset and rent deposit funds. The Trustees intend to maintain reserves at this level over the course of 2012. Both the policy and its implementation shall be under regular scrutiny.

ETHICAL INVESTMENT The charity does not currently hold any investments other than the free reserves detailed above. These reserves are held on deposit in an instant access UK bank account. If in future periods the Trustees consider it prudent to hold investments over and above the level of desired reserves, the following ethical investment policy shall be reviewed and applied: The Charity Commission has stated that “Trustees should not invest in companies pursuing activities which are directly contrary to the purpose of the trust or the charity”1. Further, that a strategy of avoidance may be appropriate if investment in a particular type of business could “conflict with the charity’s aims,… hamper its work, either by making potential beneficiaries unwilling to be helped because of the source of the charity’s money, or by alienating supporters”, or even if it could be considered inappropriate “on moral grounds”, provided that the Trustees are satisfied that this would not involve a “risk of significant financial detriment”2. In accordance with this guidance and the charity’s aims, the Trustees deem it inappropriate to invest in businesses involved in, or associated with the following sectors: x Arms trade; x Tobacco; x Child labour. Therefore, as and when Medair UK makes investments, a filter will be applied in assessing investment opportunities. Both the policy and its implementation shall be under regular scrutiny.

1 Sparkes, R. (1995), The Ethical Investor. (London: Harper Collins). 2 Charity Commission (2004), CC14: Investment of Charitable Funds.

- 21 -


Medair UK TRUSTEES’ REPORT YEAR END 31 DECEMBER 2011

ENVIRONMENTAL STEWARDSHIP In keeping with the charity’s Christian ethos, Medair UK seeks to be a ‘good steward’, not only of its funds, but also of the planet. This is accomplished in the following practical ways: x Sourcing supplies and services from sustainable sources; x Minimising waste and maximising that which is recycled; x Avoiding unnecessary printing – storing documents in electronic form wherever possible; x Switching off electrical appliances and lights whenever not in use. Both the policy and its implementation shall be under regular scrutiny.

RISK MANAGEMENT Medair UK is committed to the highest standards of integrity, quality and professionalism in all aspects of its work. Throughout 2011, the Trustees and staff continued to review the demands on the organisation and ensured the mitigation and management of the risks it faces. To this end, the Trustees and senior staff reviewed the Medair UK Risk Register at each of their meetings, assessing and ranking risks according to their likelihood and potential impact, assigning responsibility and agreeing and tracking actions accordingly.

TRUSTEES New Trustees are appointed by ordinary resolution and unanimous consent of sitting Trustees. J R C Ingram is also Chief Executive Officer of Medair (Switzerland). Each of the Directors has confirmed that, so far as they are aware, there is no relevant audit information of which the company's auditors are unaware, and that they have taken all the steps that they ought as a director, to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The Trustees did not receive any fees or derive any benefits from the charity in the current or preceding year.

The Trustees and staff of Medair UK sincerely thank its volunteers, donors and other partners, whose generous support throughout 2011 has enabled it to respond to so much human suffering. BY ORDER OF THE BOARD

P DOYLE Company Secretary 2012

- 22 -


Medair UK STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including its income and expenditure, of the charity for the year. In preparing those financial statements the trustees are required to: x select suitable accounting policies and then apply them consistently; x observe the methods and principles in the Charities SORP; x make judgments and accounting estimates that are reasonable and prudent; x prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the requirements of the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

- 23 -


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MEDAIR UK We have audited the financial statements of Medair UK for the year ended 31 December 2011 which comprise the statement of financial activities, the balance sheet 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 charity's members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully in the statement of trustees' responsibilities, the trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditor under the Companies Act 2006 and report in accordance with 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 Ethical Standards for Auditors. 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 trustees' report and financial statements to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: x give a true and fair view of the state of the charity's affairs as at 31 December 2011 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; x have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and x have been prepared in accordance with the requirements of the Companies Act 2006. Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: x adequate accounting records have not been kept in respect of the charity, or returns adequate for our audit have not been received from branches not visited by us; or x the financial statements do not accord with the accounting records and returns; or x certain disclosures of trustees’ remuneration specified by law are not made; or x we have not received all the information and explanations we require for our audit.

Karen Thompson (Senior statutory auditor) for and on behalf of PKF (UK) LLP, Statutory auditor London, UK

- 24 -


Medair UK STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2011

Unrestricted Fund £

Restricted Fund £

Total 2011 £

Total 2010 £

304,402 4,388 30

169,402 -

473,804 30

588,325 67

2,997

(36,886) -

(36,886) 2,997

343,935 2,465

311,817

132,516

444,333

934,792

223,621

-

223,621

218,289

55,808 17,832

(36,886) 137,169 -

(36,886) 137,169 55,808 17,832

343,935 357,376 43,327 14,039

297,261

100,283

397,544

976,966

Net incoming / (outgoing) resources for the year

14,556

32,233

46,789

(42,174)

Net movement in funds

14,556

32,233

46,789

(42,174)

Balance brought forward at 1 January 2011

95,787

44,429

140,216

182,390

Balance carried forward at 31 December 2011

110,343

76,662

187,005

140,216

Notes

Incoming resources From generated funds: Donations, gifts and legacies Gifts in kind and donated services Interest receivable From charitable activities: Grants receivable for humanitarian aid Other incoming resources

2

Total incoming resources

Resources expended Costs of generating funds Charitable activities: Humanitarian aid grants transferred Donations transferred Other charitable activities Governance costs

Total resources expended

3 3

3

All gains and losses recognised in the year are included in the Statement of Financial Activities, and are derived from continuing activities.

- 25 -


Medair UK BALANCE SHEET AS AT 31 DECEMBER 2011 (Company number: 3213889)

2011 Notes FIXED ASSETS Tangible assets

4

CURRENT ASSETS Debtors Cash at bank and in hand

5 6

CREDITORS: Amounts falling due within one year Due to associated undertaking Other creditors

£

2010 £

£

1,192

£

2,124

248,686 205,632

337,886 99,221

454,318

437,107

(65,629) (202,876)

(187,200) (111,815)

(268,505)

(299,015)

7

NET CURRENT ASSETS

185,813

138,092

NET ASSETS

187,005

140,216

76,662

44,429

RESERVES Restricted funds Unrestricted funds General Designated

8

110,343 -

TOTAL FUNDS

95,787 -

110,343

95,787

187,005

140,216

The financial statements were approved by the Board and authorised for issue on Signed on behalf of the Trustees

F ALLDRIDGE

P DOYLE

- 26 -

2012


Medair UK NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011

1

ACCOUNTING POLICIES 1.1

Accounting convention The financial statements are prepared under the historical cost convention and in accordance with applicable accounting standards and the Statement of Recommended Practice Accounting and Reporting by Charities issued by the Charity Commission in March 2005.

1.2

Incoming resources Income is taken to the credit of the Statement of Financial Activities on an accruals basis. Restricted grant income is credited to incoming resources when the charitable company is entitled to receipt of the grants, measured by reference to the stage of completion of the projects funded.

1.3

Resources expended Grants transferred to Medair (Switzerland) are included as expenditure when the grant is recorded as income. This means restricted grant income is matched with an equivalent amount in resources expended. Restricted donations are included as expenditure when remitted to Medair (Switzerland). All other resources expended are included as expenditure on an accruals basis. Direct costs represent expenses attributed directly to key activities (e.g. staff time and appeal mailing costs etc.). Indirect costs represent expenses attributed to activities in support of key activities (e.g. accounting and office costs). The apportionment of indirect costs was tracked against staff time throughout the year. Governance costs are the cost associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

1.4

Tangible fixed assets and depreciation Tangible fixed assets costing more than ÂŁ500 are capitalised and depreciated by equal annual instalments over their estimated useful life as follows: x Office equipment: 5 years; x Computer equipment: 3 years.

1.5

Foreign exchange Grant income received in foreign currency and grants and donations transferred to Medair (Switzerland) are accounted for at the average rate of exchange in the year. Monetary assets and liabilities are translated into sterling the rate of exchange ruling at the year end.

1.6

Fund accounting General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objects of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

- 27 -


Medair UK NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011

1

ACCOUNTING POLICIES (continued) 1.7

Operating lease rentals Rentals relating to operating leases are charged to expenditure as incurred.

1.8

Pension costs The charity contributed an agreed percentage of the salary to the personal pension plan of four of its permanent employees. The pension provider is selected by the individual employees and thus the pension scheme is independently administered by, and the funds are held by, recognised pension companies. The pension cost charge (note 3) represents contributions payable by the charity to the pension fund.

2

GRANT INCOME Grants attributable to year

EuropeAid Cooperation Office

2011 £

2010 £

-

343,935

-

343,935

During the year, no new grants were added neither were there any modifications to the existing grants set out in the note below. The grants were in support of aid projects in the countries shown below and are released in accordance with specified criteria over the course of the agreed project period. Revenue recorded in the Statement of Financial Activities is based on contracted grant monies attributable in the year to 31 December 2011. These have been included in the Statement of Financial Activities as follows: Å----------------------------------------------------- Grants -------------------------------------------------------Æ Awarded but not taken to income at 31/12/2010

Awarded in year

Awarded but not taken to income at 31/12/2011

Reclaimed in year

€ EUR

€ EUR

€ EUR

£ GBP

£ GBP

-

-

-

(25,523) (16,982)

(22,149) (14,737)

(327) 165,908 204,447 (26,093)

-

-

-

(42,505)

(36,886)

343,935

€ EUR Angola D.R. Congo Madagascar Uganda

Attributable to year ending 31 December 31 December 2011 2010

As noted above grants are awarded in Euros and an average rate of £0.8678 to €1 has been used to calculate income attributable to the year.

- 28 -


Medair UK NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011 3

RESOURCES EXPENDED Cost of generating funds Fund raising Charitable activities Grants (refunded by) / transferred to Medair (Switzerland) Donations transferred to Medair (Switzerland) Other charitable activities

Governance Auditor’s remuneration Other governance costs

Total resources expended

Unrestricted Funds £

Restricted Funds £

Total 2011 £

Total 2010 £

223,621

-

223,621

218,289

-

(36,886)

(36,886)

343,935

55,808

137,169 -

137,169 55,808

357,376 43,327

55,808

100,283

156,091

744,638

6,000 11,832

-

6,000 11,832

6,000 8,039

17,832

-

17,832

14,039

297,261

100,283

397,544

976,966

The principal components of resources expended are as follows: Staff costs £

Depreciation £

Other costs £

Total 2011 £

Total 2010 £

128,617 31,451 7,430

625 257 49

94,379 124,383 10,353

223,621 156,091 17,832

218,289 744,638 14,039

167,498

931

229,115

397,544

976,966

6,000 931 14,200

6,000 2,378 12,500

145,456 15,099 6,943

111,018 11,590 4,316

167,498

126,924

Cost of generating funds Charitable activities Governance costs

Net incoming / (outgoing) resources are stated after charging: Auditor’s remuneration – audit Depreciation Operating lease rentals Staff costs Wages and salaries Social Security costs Pension costs

No employee earned £60,000 per annum or more.

- 29 -


Medair UK NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011 The average number of employees analysed by function was:

2011

2010

2 3

1 2

Computer and office equipment £

Total £

Cost At 1 January 2011 Additions

19,879 -

19,879 -

At 31 December 2011

19,879

19,879

Depreciation At 1 January 2011 Charge for the year

17,756 931

17,756 931

At 31 December 2011

18,687

18,687

Net book value At 31 December 2011

1,192

1,192

At 31 December 2010

2,124

2,124

2011 £

2010 £

158,827 878 88,981

282,512 608 54,766

248,686

337,886

Management and administration of the charity Fundraising and recruitment

Trustees receive no remuneration for their services. Actual expenses may be reimbursed.

4

5

TANGIBLE FIXED ASSETS

DEBTORS

Amounts recoverable from grant funders Due from associated undertaking Other debtors and prepayments

6

CASH AT BANK AND IN HAND Included in cash at bank at 31 December 2011 was £81,809 (2010 - £nil) which was received immediately before the year end in respect of grants which were transferred to Medair (Switzerland) in early January 2012.

- 30 -


Medair UK NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011

7

CREDITORS 2011 £

2010 £

65,628 81,809 93,198 17,377 4,492 6,000

187,200 95,312 5,874 4,120 6,509

268,504

299,015

Amounts falling due within one year Due to associated undertaking Restricted income payable to Medair Switzerland Grants unearned or repayable Other creditors Other taxes and social security Accruals

The amount due to associated undertaking consists of project funds receivable from grant funders by Medair UK and subsequently due to Medair (Switzerland) which implements all European sponsored humanitarian aid projects.

8

MOVEMENTS IN FUNDS

At 1 January 2011 Net incoming resources for the year

At 31 December 2011

9

Unrestricted funds £

Designated funds £

Restricted funds £

Total £

95,787 14,556

-

44,429 32,233

140,216 46,789

110,343

-

76,662

187,005

ANALYSIS OF NET ASSETS BETWEEN FUNDS The net assets are held for the various funds as follows:

Tangible fixed assets Cash at bank Other net current assets / (liabilities)

Unrestricted £

Designated £

Restricted £

2011 Total £

2010 Total £

1,192 47,161

-

158,471

1,192 205,632

2,124 99,221

61,990

-

(81,809)

(19,819)

38,871

110,343

-

76,662

187,005

140,216

- 31 -


Medair UK NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2011

10

RELATED PARTY TRANSACTIONS During the year the Charity made payments of £137,169 (2010: £1,157,683) to Medair (Switzerland), a related charity registered in Switzerland. Medair (Switzerland) discharges the Charity’s charitable objectives on behalf of the Charity. There was an amount due from Medair (Switzerland) of £878 (2010: £608) at the date of these financial statements. There was an amount due to Medair (Switzerland) of £65,628 (2010: £187,201) at the date of these financial statements.

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OTHER COMMITMENTS At 31 December 2011, annual commitments under operating leases were as set out below: 2011 Land and buildings £

14,200

2010 Other £

Land and buildings £

Other £

643

14,200

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Operating leases which expire: Between one to five years

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Medair UK Annual Report and Financial Statistics 2011