FOR THE YEAR ENDED31 MARCH 2013

INCOME AND EXPENDITURE STATEMENTFOR THE YEAR ENDED 31 MARCH 2013

CONTENTS

Page

Statement of management responsibilities

Auditor's report 2-3

Income and expenditure statement 4

Notes to the income and expenditure statement 5 - 10

Total budget and actual expenditure analysis 11

Tilitonse budget and actual expenditure analysis 12

GRAHAM CARR iiCertified Public Accountants

~~h.14E1INTERNATIONAL

AUDITOR'S REPORTTO THE MANAGEMENT OF

ScopeWe have audited the income and expenditure statement of Theatre for a Change - Malawi for theyear ended 31 March 2013 and a summary of significant accounting policies and other explanatoryinformation as set out on pages 4 - 12.

Management's responsibility for the income and expenditure statementManagement is responsible for the preparation and fair presentation of the income and expenditurestatement in accordance with applied accounting principles and for such internal controls asmanagement determines is necessary to enable the preparation and fair presentation of the incomeand expenditure statement that is free from material misstatement, whether due to fraud or error.

Auditor's responsibilityOur responsibility is to express an opinion on the income and expenditure statement based on ouraudit. We conducted our audit in accordance with International Standards on Auditing. Thosestandards require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance whether the income and expenditure statement is free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the income and expenditure statement. The procedures selected depend on the auditor's judgment,including the assessment of the risks of material misstatement of the income and expenditurestatement, whether due to fraud or error. In making those risk assessments, the auditor considersinternal control relevant to the entity's preparation and fair presentation of the income andexpenditure statement in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluating the overallpresentation of the income and expenditure statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.

IADL house, 2nd Floor, City Centre IP.O.Box 898 Lilongwe Malawi

Tel: (+265) 01-775-763 /01-775-764 /01-775-836, Fax: 01-775-762, E-mail: lilongwe@grahamcamnw.comGraham Carr is a member ofNexia Tntenlatiollal, a worldwide network of independent accounting firms

Partners: C.M.C Banda-Lilongwe, D. Ngwira(Mrs)-Blantyre. Offices in Lilongwe and Blantyre .•

GRAHAM CARR i iCertified Public Accountants

~~h.:411INTERNATIONAL

OpinionIn our opinion: -

• All necessary supporting documents, records and accounts have been kept in respect to alltransactions.

• The income and expenditure statement has been prepared in accordance with consistentlyapplied Accounting Principles and give a true and fair view of the financial transactions andposition of Theatre for a Change in Malawi as at 315t March 2013.

Graham Carr

28th June 2013

INCOME AND EXPENDITURE STATEMENTFOR THE PERIOD FROM 1 APRIL 2012 TO 31 MARCH 2013

GBP MK MKNote 2013 2013 2012

RestatedIncomeOpening balance 55,675 33,789,447 16,315,956Funding received 3 428,903 260,305,253· 204,822,343Other income 4 87,664 53,203,964 2,950,938

Available income 572,241 347,298,664 224,089,237

Expenditure

Administration and support costs 5.1 58,984 35,797,782 30,959,601Programme activities 5.2 356,143 216,146,838 157,481,774Capital expenditure 5.3 811 492,335 1,858,415

Total expenditure (415,938) (252,436,955) (190,299,790)

Unspent funds 156,303 94,861,709 33,789,447

Represented by:

Cash and bank balances 6 73,715 44,738,488 4,517,597Receivables 7 83,132 50,453,424 30,307,269Payables 8 (544) (330,203) (1,035,419)

156,303 94;861,709 33,789,447

,- J ~The income and expenditure statement has been approved by the Board on ... ~1.. \"~j~e.-•.. LiJ.D ...,. and issigned on its behalf by:

\

I'JBOARD CHAIRMAN

THEATRE FOR A CHANGE

NOTES TO THE INCOME AND EXPENDITURE STATEMENTFOR THE YEAR ENDED 31 MARCH 2013

1 ORGANISA TION INFORMATION

VISIONTheatre for a Change wants to see marginalised and vulnerable groups empowered with knowledge,awareness, and skills to positively transform their lives and the lives of others at local, national, andinternational levels.

MISSIONTheatre for a Change seeks to improve the quality of life of marginalised and vulnerable groupsthrough active, participatory tools that promote positive behaviour change and advocacy offundamental human rights.

Behaviour ChangeTo equip marginalised and vulnerable groups with the knowledge and skills to positively change theirbehaviours and those of others.

AdvocacyTo promo.te gender and sexual rights of marginalised and vulnerable groups among policy and decisionmakers at local, national, and international levels.

GOAL IN MALA WITo reduce the risk of HI V infection among marginalised and vulnerable groups.

Legal Status

Theatre for a Change Malawi is a registered NGO in Malawi (Reg. No. 8557), and forms part of aPartnership Agreement with other Theatre for a Change branches in Ghana and the UK. Theatre for aChange Malawi is registered with CONGOMA, the Council for Non-Governmental Organisations inMalawi (Reg. No. C429/2009) .

Programme Activity and ImpactTheatre for a Change Malawi uses innovative, ambitious and impactful approaches to HIV preventionamong at risk groups in Malawi, teachers, young people in school, sex workers, the police and the

By training teachers in teacher training colleges in Malawi, they seek to promote health seekingbehaviours among the student teachers, and equip them with the skills to be able to hand these on to thechildren they go on to teach. Theatre for a Change's education strategy is to place young Malawiangraduates who they have trained and accredited into Teacher Training Colleges where they canpositively impact on their peers both during Life Skills on the curriculum and after school. These youngteachers are then posted to Primary Schools where Theatre for a Change helps them to implementinnovative approaches to HIV prevention among the children they teach. Theatre for a Change is alsorunning an Interactive Radio Programme to enable primary school teachers, parents and children tocommunicate more effectively about HIV and sexual and reproductive health.

NOTES TO THE INCOME AND EXPENDITURE STATEMENT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2013

Programme Activity and Impact (continued)

By training a core group of sex workers to become peer facilitators with young people involved in sexwork, Theatre for a Change reduces the risk of HIV transmission between sex workers and their clients.They are running a behaviour change programme where these peer facilitators work with younger sexworkers and enable them to make sex work safer and to find alternative means of income generation.Theatre for a Change are also running an advocacy programme, where sex workers perform theirstories to policy makers with a view to promoting their rights and catalysing institutional and policyreform.

Theatre for a Change also has a Child Protection Project for children who are being sexually exploited,and a project with the Police and the Army, to help reduce their risk of HI V infection.

Theatre for a Change achieves their success through an innovative, participatory, physical methodologywhere the learner's physical, personal and social experience is the starting point for the educationalprocess.

Theatre for a Change partners include The British Council, Comic Relief, Tilitonse, Aids Fonds, AnnieLennox, VSO, Christian Aid and GIZ.

Theatre for a Change is an accredited centre through The Open College Network for deliveringeducational training.

The impact of their programmes is measured and published every year - for more information on theirimpact please see http://www.tfacafrica.com/What-we-do/Monitoring-Evaluation-Learning.

2 Accounting policies

The principal accounting policies, which are set out below have been consistently followed in allmaterial respects.

2.1 Basis of preparation

The report has been prepared on the basis of cash accounting which IS a comprehensive basis ofaccounting as modified by the inclusion of payables and receivables.

2.2 Income

The main income represents donations - further details can be found in Note 3. All income received inthe period has been shown in the income and expenditure statement.

2.3 Expenditure

These represent all expenditure incurred during the period.

NOTES TO THE INCOME AND EXPENDITURE STATEMENT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2013

2.4 Property, plant and equipment

Capital expenditure is expensed in the project books in the period in which the payment for such itemsis made. There is no provision for depreciation.

3 Funding received2013 2013 2012

MK MKChristian Aid GBP 200,000 87,719,772 50,234,680Tilitonse 47,154,658Comic Relief GBP 71,903 43,469,901 24,817,933Medicor GBP 81,613 21,913,201 34,725,260GiZ 18,999230 19,312227Anonymous donor GBP 23,783 13,754,185AIDS Fonds Euro 21,762 8,164,861 1,615,970Saving Grace GBP 12,000 5,812,941 3,067,220PACT 5,500,808 5,026,563VSO 5,339,700Ellen Rathbone Charitable GBP 1500 648,000Oakdale Trust GBP 1000 515,885Bryan Guiness Charitable Trust GBP 1000 430,000Dishma Charitable Trust GBP 1000 430,000Private donation GBP 772 355,511Bonus trust GBP 200 96,600Ferguson Trust 24,674,650Annie Lennox Foundation 12,269,583DFID 5,416,227UNICEF 5,065,608National Aids Commission 3,721,176OSISA 4,106,460British Council 298,537Prior year adjustment 10,470,249

260,305,253 204,822,343

4 Other incomeExchange gain 49,032,998 2,652,995Proceeds from sale of assets 3,000,010Contributions to Tfac house 349,500 49,000Contributions from UN Women 156,000Bank interest 665,456 248,943

53,203,964 2,950,938

- 7 -

NOTES TO THE INCOME AND EXPENDITURE STATEMENT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2013

5 EXPENDITURE2013 2012MK MK

5.1 Administration and support costs

Staff Costs 13,674,159 13,442,314Bank charges 606,999 429,309Office stationery 1,248,986 1,784,029Insurance 1,154,839 1,406,141Audit and legal 505,350 463,896Advertisements 1,738,800 360,307Transport 472,797 1,895,419Publicity and marketing 66,358 2,750,000Telephone/Internet 2,835,414 3,062,066Office & Accommodation Costs 8,360,407 4,587,902Other Support Costs 5,133,673 778,218

Total 35,797,782 30,959,601

5.2 Programme activities

Workshop materials 18,392,593 12,590,025Programme staff costs 69,002,486 69,353,441Training costs 5,086,200 841,400Transport costs 20,265,239 21,028,473Programme staff accommodation 10,471,715 7,203,260Monitoring and evaluation 23,205,270 7,835,612Monitoring and evaluation staff costs 12,310,174 3,754,905Medical insurance 1,946,800 3,259,841Other programmes 17,652,411 19,444,941Vehicle Costs inc. Fuel 14,267,860 2,614,496Programme stationery 23,546,090 9,555,380

Total 216,146,838 157,481,774

5.3 Capital expenditureOther equipment 492,335 1,858,415

492,335 1,858,415

NOTES TO THE INCOME AND EXPENDITURE STATEMENT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2013

2013MK

2012MK

Tilitonse project kwacha bank accountMain Kwacha AccountGBP AccountCash held #PACT-Kwacha Account

28,596,4058,643,4897,206,003

292,591

3,283,5661,018,886

173,46941,676

Theatre for a Change - UK(£77,027.25)**Prior year adjustment -UK(£39,658.47)Staff Operational AdvancesPrepayments

3,114,800590,077

14,022,82410,296,780

5,987,665

** Relate to balance of funds received through Theatre for a Change UK but not remitted to Malawi asat year end

8 Payables

AccrualsPay As You Earn TaxStaff welfare fund

NOTES TO THE INCOME AND EXPENDITURE STATEMENT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2013

Comic reliefAids FondsSaving GraceAnnie LennoxOSISATilitonseChristian AidMedicorGIZAnonymousVSOPACTUN WomenOtherUnrestricted

OpeningBalance

MK23,965,916

(815,750)72,000

9,898,4931,613,303

41,6762,014,899

MK43,469,901

8,164,8615,812,941

47,206,18387,719,77221,913,20118,999,23013,754,185

5,339,7005,511,421

2,475,99753,141,827

MK(20,126,349)

(7,796,985)(5,884,941)(9,898,493)(1,613,303)

(24,342,213)(88,998,122)(21,913,201)(26,556,385)

(5,339,700)(5,553,097)(2,014,899)(1,944,738)

(30,454,531)

(252,436,957)

Closingbalance

MK47,309,468

(447,874)

22,863,9701,057,000

(6,841,675)13,754,185

531,25916,635,376

Note: Only Tilitonse has a designated bank account, all the other donors uses the pool account. Thistable has been included for information purposes only.

10 Prior period adjustment

Unspent funds bought forward per pnoryear financial statementsPrior period adjustment

2013MK

2012MK

APPENDIX TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2013

IncomeOpening balanceFunding receivedOther incomeExchange gain

Budget ActualMK MK

33,789,447 33,789,447260,367,390 260,305,253

4,000,000 4,170,96649,032,998

298,156,837 347,298,664

VarianceMK

62,137(170,966)

(49,032,998)

ExpenditureLocal travel and transportationMeeting and training costCommunicationProject monitoring costOther Programme CostsIndirect costs

19,021,163 20,265,239 (l,244,076)18,654,330 18,392,593 261,737

2,902,667 2,835,414 67,25333,987,462 35,515,444 (1,527,982)

112,946,028 142,465,897 (29,519,869)33,652,544 32,962,368 690,176

221,164,194 (252,436,955) (31,272,761)

94,861,709

INCOME AND EXPENDITURE STATEMENT - TILITONSEFOR THE PERIOD FROM 1 APRIL 2012 TO 31 MARCH 2013

TOTAL REVISED YEAR 1 BUDGETBUDGET ACTUAL BALANCE

MK MK MK

Income

Funding received 73,001,181 47,154,658 25,846,523Bank interest 51,525 (51,525)

Available income 73,001,181 47,206,183 25,794,998

Indirect personnel costsStaff costs

Direct programme costsBehaviour ch;~nge workshops and training forfemale sex workersNetwork activitiesRadio broadcastsBehaviour change workshops and training for PoliceLegistrative theatre with policeOpen days with Police and stakeholdersLegistrative theatre

17,561,000 7,904,034 9,656,9662,767,912 922,100 1,845,8125,402,200 1,131,577 4,270,623

25,368,200 9,182,440 16,185,760845,300 196,000 649,300

2,567,867 1,266,700 1,301,1672,205,819 466,000 1,739,819

56,718,298 21,068,851 35,649,447

3,275,361 549,255 2,726,106

73,001,181 24,342,213 48,658,968

22,863,970

Indirect costsOverheads

Represented by

Bank balanceAmount refundable to TfaC main account

28,596,405(5,732,435)

22,863,970