iDE UK 2014 Annual Report

ANNUAL REPORT& ACCOUNTS

2014

The Board of Trustees of International Development Enterprises UK (iDE UK), who are the directors for the purposes of company law, present their statutory report together with the financial statements of iDE UK for the year ended 31 December 2014. The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purposes of the Companies Act 2006.

The financial statements have been prepared in accordance with the accounting policies set out on pages 41 and 42 of the attached financial statements and comply with the charitable company’s memorandum and articles of association, applicable laws and the requirements of the Statements of Recommended Practice on “Accounting and Reporting by Charities” (SORP 2005).

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TRUSTEES’ REPORT CONTENTS

iDE Global At a Glance 5iDE Global Performance 6iDE Global Highlights 7iDE UK At a Glance 8Letter from the Chair 9Achieving Our Mission 10Our work in 2014 11Investment in Mining: Opportunities for Farmers in Zambia 12Agriculture and Nutrition in Nepal and Bangladesh 14Training Farm Business Advisors 16Delivering Sanitation in Burkina Faso 18Life Saving Anti-diarrheal Kits 20Food and Income for Refugees 22Building Safer Lives In Ethiopia 24Building Resilience and Adaptation to Climate Extremes and Disasters 26Our Next Steps 28Financial Review 30Structure and Governance 32 Management Of Risk 34Trustees’ Responsibilities Statement 36Independent Auditors Report 37Statement Of Financial Activities 39Balance Sheet 40Principal Accounting Policies 41 Notes to the Financial Statements 43

iDE UK Annual Report and Accounts 2014

Charity registration number 1087417

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IN 2014 IDE

HELPED OVER ONE MILLION PEOPLE

LIFT THEMSELVES OUT OF POVERTY



U K R E G I S T E R E D C H A R I T Y N U M B E R 1 0 8 74 7 1

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Our Annual Report and Accounts show how the donations we receive are making a difference to the farmers and rural entrepreneurs iDE UK works with across the globe.



I D E G L O B A L AT A G L A N C E

Our mission is to create income and livelihood opportunities for the rural poor. We use a business or

market-based approach to design, market and distribute agriculture, water and health technologies that increase

incomes and improve lives.

To create income and livelihood opportunities for one million people

To achieve an average annual income increase of £125 per family

To increase the income of our clients by at least ten times the amount that we invest

S C A L E

I M PA C T

C O S T

E F F E C T I V E N E S S

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2 0 1 4 G L O B A L S T R AT E G I C O B J E C T I V E S



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I D E G L O B A L P E R F O R M A N C E



I D E G L O B A L H I G H L I G H T S

Farm Business Advisors trained to provide seeds and fertiliser to smallholder farmers in Zambia.

Latrines sold to poor rural people in Cambodia in past two years.

Water filters sold in Cambodia through iDE created social enterprise, Hydrologic - saving 171 families from the grief of losing a child to diarrhoea-related illness.

1 0 0 , 0 0 0

4 8 , 0 1 2

1 9 7

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i D E A R O U N D T H E G L O B E

UKUSA

CANADA

BURKINA FASO

GHANA

ETHIOPIA

ZAMBIA

MOZAMBIQUE

NEPAL

BANGLADESH

CAMBODIA

VIETNAM

HONDURAS

NICARAGUA



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I D E U K AT A G L A N C E

Charitable Income 2013Total Income £2.6 million

Charitable Expenditure 2013Total Expenditure £2.7 million

97.3% Project Grants2.3% Donations0.4% Consultancy

99% Charitable activities0.3% Fundraising0.6% Governance

Charitable Income 2014Total Income £ 2.3 million

Charitable Expenditure 2014Total Expenditure £2.5 million

95.9% Project Grants3.3% Donations0.8% Consultancy

99.1% Charitable activities0.3% Fundraising0.6% Governance



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L E T T E R F R O M T H E C H A I R

It is a great privilege to present the annual report for iDE UK in 2014, a year in which the organisation innovated in bold new directions. For the first time we began implementing a sanitation marketing programme in Burkina Faso and trained local entrepreneurs to sell affordable anti-diarrheal kits in Zambia. We also piloted new technologies and approaches which assist smallholder farmers to adapt to the impacts of climate change and we created The Design Expo 2014, a one week, online celebration of innovative product, service and business model designs that transform poor peoples’ lives, in collaboration with Business Fights Poverty. I would like to thank our funding partners and in particular everyone who gave during the BBC Radio 4 Appeal with Andrew Marr and The Big Give Christmas Challenge - without you none of this would have been possible. iDE UK is proud to be part of a global family of iDE organisations that are collectively ranked No 30 in the Global Journal’s Top 100 NGOs in 2013. Since iDE began it has reached over 20 million people in eleven countries in Africa and Asia. I feel confident that together with my hard-working board, whose members willingly roll up their sleeves and get stuck in, our small and dedicated staff, and our funding partners, we will continue to achieve our strategic objectives in 2015.



iDE seeks to play a leading role in the fight against rural poverty, so that the 70% of the poorest people on our planet that survive by farming on small plots

of land can lead more prosperous, dignified lives. We are striving to create a world in which rural people have enough food to meet basic nutritional needs

and clean water to prevent diseases and water-borne illnesses.

So how do we do it?

iDE UK collaborates with the iDE international family of organisations, including members in the USA and Canada and eleven country programmes in order to (1) improve access to productive water and agriculture innovations

to increase food production and incomes; (2) improve access to drinking water and sanitation innovations to prevent disease, helping families lead

healthier, more productive lives; (3) strengthen the capacity of local small-scale enterprises so that they can serve the rural poor and (4) improve our

impact on women and men and empower women to take advantage of market opportunities.

The global iDE team has set three strategic objectives to understand the scale, impact and cost-effectiveness of our work. In this Annual Report we aim to set out the progress and contribution iDE UK has made towards these objectives

in the past 12 months.

ACHIEVING OUR MISSION

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The next section summarises our achievements and how we are contributing to our three strategic objectives:

1. To create income and livelihood opportunities for one million people

2. To achieve an average annual income increase of £125 per family

3. To increase the income of our clients by at least ten times the amount that we invest

O U R W O R K I N 2 0 1 4

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The WIN (Wealth creation through Irrigation in the North-Western Province) Project is a collaborative effort between

the European Union and the mining company Barrick Lumwana. WIN is stimulating the private sector to serve

farmers in the horticulture value chain and creating market linkages so that farmers can take advantage of increasing investment in the mining sector as increased demand for fresh produce. The project’s ultimate aim is to raise the incomes of 4,000 farming households by an average of

£205 per year on a sustainable basis.

INVESTMENT IN MINING: OPPORTUNITIES FOR FARMERS IN ZAMBIA

PROJECT FUNDER PROJECT AIM

To increase incomes in the North-Western Province of Zambia using irrigated horticulture.

PROJECT DATE

2012 - 2015

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Now halfway through the project we are on track to reach our targets with 3,220 smallholder farming households entering commercial horticulture production, earning on average an additional £237 per year for their hard work. Each farm household benefits from being connected to a network of 40 Farm Business Advisors (FBAs) which means they can access the services they need to improve production. FBAs are local entrepreneurs that earn commission from the private sector for selling a range of agricultural inputs like fertiliser and providing advice to farmers. Farmers can also buy inputs through tiny shops located in the heart of farmer communities owned by 30 small-scale agro-dealers trained during the project.

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A D D I T I O N A L I N C O M E P E R Y E A R

£237FA R M B U S I N E S S A D V I S O R S

T R A I N E D

40A G R O - D E A L E R S

T R A I N E D

30H O U S E H O L D S R E A C H E D

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Smallholder farmers in both Nepal and Bangladesh lack access to improved agricultural technologies and markets.

The result is that smallholder farming communities are characterised by low productivity, food and nutritional insecurity, and high levels of poverty. To address this

situation, iDE with funding from the European Commission, led the multi-partner Agriculture and Nutrition Extension

Project (ANEP) which began in 2011 and ended in December 2014. The project aimed to use technologies and markets to improve food security and nutrition of 60,000

poor households, and for 75% of these households to increase household income by £50 per year.


To use transformative technologies and markets to improve food security and nutrition in Nepal and Bangladesh.

PROJECT DATE

2011 – 2014

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Agriculture and Nutrition in Nepal and Bangladesh



The project met or surpassed all its major goals. In total ANEP helped 65,634 smallholder farm households (over 300,000 people) across Bangladesh and Nepal to increase agricultural productivity, incomes, food security and nutrition through increased access to technologies and knowledge about healthy food. Smallholder farm families across Nepal and Bangladesh now have food for an extra four months per year and the prevalence of underweight children under five years old has decreased significantly by more than 14% in Bangladesh and 20% in Nepal. In addition farmers have gained an additional £256 per year - over five times the target. The project also developed strong links between the private sector selling technologies and the farmers, which means that the results of the project are being sustained into 2015 and beyond.

A D D I T I O N A L I N C O M E P E R Y E A R

£256C O S T E F F E C T I V E N E S S

1 :8A D D I T I O N A L F O O D S E C U R E

M O N T H S P E R FA M I LY

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H O U S E H O L D S R E A C H E D

65,634



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Despite decades of development initiatives, 84% of small-scale farmers in Zambia still live in poverty. iDE knows that farmers

need training, access to low-cost technologies, access to finance and the ability to link to markets to earn higher incomes and help

themselves out of poverty. This project is training 200 Farm Business Advisers (FBAs) who are small-scale, independent

entrepreneurs who typically support between 80 and 120 farmer clients in accessing inputs, credit and markets – linking them to

private sector, value chain actors on a commission or fee earning basis and at the same time providing support and advice to

farmers.

TRAINING FARM BUSINESS ADVISORS


To lift over 20,000 smallholder farmers out of poverty over the next two years.

PROJECT DATE

2014 - 2016

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In 2014 the team trained 195 FBAs which represents 98% of the end-of-project target of 200 FBAs. Of these, 138 active FBAs reached and served 11,825 smallholder farmers. The farmers are enthusiastic about the FBA service - 96% of smallholder farmers were willing to recommend FBA services to someone else.

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FA R M E R S S E R V E D

11 ,825FA R M E R S AT I S FA C T I O N

96%F B A S T R A I N E D

195



In 2014 we started implementing our first Water, Sanitation and Hygiene project in Burkina Faso in

partnership with Eau Vive. Funded by the European Union, the ‘Sanya Kagni’ project is using Human Centred Design to develop low-cost hygienic latrines for rural households in Burkina Faso and training masons to build and sell these

latrines to 500 rural customers.


Improving access to water and sanitation in 10 communities of Burkina Faso.

PROJECT DATE

2014 - 2017

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Delivering Sanitation in Burkina Faso



By listening to rural customers the team has already developed two affordable, hygienic latrine designs which retail for around £60, which is very low cost in Burkina. The next step involves training masons to build and sell these latrines to rural customers. For example iDE trained concrete business owner Mr Ibrahim Barry (pictured) and he has just received over 200 orders, which means that 1000 rural people now have access to a clean and sanitary place to go to the loo.

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“ONLY 6% OF RURAL PEOPLE IN BURKINA

FASO HAVE ACCESS TO IMPROVED SANITATION

FACILITIES” YENI YARO, IDE BURKINA FASO

32203220D E L I V E R

S A N I TAT I O N

DIRECTOR OF WASH



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Coca-Cola seems to get everywhere in developing countries, yet life-saving medicines don’t. Why? In these same places, 1 in 9 children die before their 5th birthday

from simple preventable causes like dehydration from diarrhoea. That’s more than 16 times the average for developed regions (1 in 152). Diarrhoea is the second biggest killer of under 5 children responsible for more

deaths than HIV/AIDS, malaria and measles combined. In 2014 we began a joint project with ColaLife which aimed

to answer this question. Together we investigated the best ways to take ColaLife’s award winning anti diarrheal kit – Kit

Yamoyo, the ‘Kit of Life’ – to scale across Zambia.

LIFE SAVING ANTI-DIARRHEAL KITS


To design and implement a ‘scaling up’ of sales and distribution of Kit Yamoyo – an award winning anti-diarrhoea kit across Zambia.

PROJECT DATE

Jan - June 2016

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ColaLife’s original award winning idea was to fit Kit Yamoyo (pictured) between bottles in Coca-Cola crates. However this is not the key driver of sales. Instead it is ensuring that mothers can measure the medicine correctly and making sure that profit is made by everyone involved in getting the kits into the hands of mothers. This includes the local company making the kits, the distributor, the wholesaler and the small shops in hard-to-reach rural areas. Together with ColaLife we built upon this distribution model to ensure lifesaving anti-diarrhoeal kits can get into the hands of Zambian mothers/carers who need them. Academics estimate that 3 lives are saved for every 1,000 kits distributed.

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SIMON (AGED 1)

WITH A KIT YAMOYO



Some of the highest levels of poverty and hunger in Zambia occur in Meheba Refugee settlement, the

largest refugee settlement in Zambia. In 2014 we began a three year project with support from the innocent

foundation to increase the food security, incomes and resilience of 800 vulnerable households. The innocent foundation - the foundation arm of innocent drinks – is a long-term supporter and we are excited to continue

this fantastic partnership.


To improve income generation for 800 vulnerable farming households in the Meheba Refugee Settlement in the North-Western Province of Zambia.

PROJECT DATE

2014 - 2017

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Food and Income for Refugees



In 2014 the project made excellent progress by recruiting 475 smallholder farming households and training 325 farmers who are now participating in the production of high value fresh vegetables and field crops. The project has also made strong progress towards long term sustainability by strengthening the role of private sector service provision for smallholder farmers. iDE has trained four Farm Business Advisers (FBAs) who are linking farmers with small loans to buy farm inputs such as seed and fertiliser, in addition to providing technical advice. iDE has also trained two small-scale agro dealers who are selling a range of affordable farm inputs through tiny shops located in the heart of Meheba Refugee Settlement.

“I really enjoyed meeting the team and so many of your

fantastic FBAs and farmers and I feel inspired by the

stories I heard. The innocent foundation is very proud to

support you.”

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FA R M B U S I N E S S A D V I S O R S T R A I N E D

4A G R O - D E A L E R S

T R A I N E D

2H O U S E H O L D S R E A C H E D

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KAT E F R A N K S - I N N O C E N T F O U N D AT I O N M A N A G E R



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Wolaita and South Omo provinces in Ethiopia are renowned for their extraordinary tribes and rich culture.

What is less well known is that 40% of the population suffer from chronic food insecurity due to a lack of rain. Farmers struggle to grow enough to eat by cultivating by hand and more than half the households we are working

with do not own an ox to plough their land. Drought, shortages of feed and water for livestock, and animal health

problems are causing disease and death of livestock. In 2014 we started a major EU funded consortium project with NGOs including Vita, Cartias, African Medical and Research Foundation and local partners to address this

problem.

BUILDING SAFER LIVES IN ETHIOPIA


To help 12,000 smallholder farmers and herders in Ethiopia to manage the impacts of drought better.

PROJECT DATE

2014 - 2017

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In 2014 we have made strong progress by:

• Helping farmers access loans to buy high quality seed and irrigation pumps

• Training local entrepreneurs to sell agricultural inputs like high quality seed and fertiliser to farmers

• Training herders and farmers in livestock rearing using an ‘improved breed’ scheme

• Providing an animal health service

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D E L I V E R

F O O D S E C U R I T Y

Severe floods, landslides, drought and other extreme climate events are occurring with increasing frequency in the hills

and plains of Nepal; preventing millions of vulnerable people, especially women and children, from improving their lives and health. In response, an iDE UK-led consortium of non-profit organisations ran an innovative 6 month research programme to field test a range of climate-change adaptive approaches

and technologies. The pilot programme was funded under the UK Department for International Development’s Building

Resilience and Adaptation to Climate Extremes and Disasters (BRACED) programme.


To field test innovative technologies and approaches which help poor and vulnerable farming households in Nepal build resilience to the impacts of climate change and disasters

PROJECT DATE

Feb - July 2014

Building Resilience and Adaptation to Climate Extremes and Disasters

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The project demonstrated that investments in climate smart approaches and technologies, like flood walls, multiple use water systems and drip irrigation kits can change the lives of many smallholder farmers. As a result DFID awarded iDE UK a multi-million pound grant in January 2015 to help half a million poor and vulnerable people in rural Nepal build their resilience to climate change impacts like floods and drought.

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Shyama points to where the water reached after the Rapti River burst its banks

in 2013. Now the house is protected against flash flooding by a community

built flood wall.

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Plan, win and deliver excellent quality programmes.

P R O G R A M M E S

F U N D R A I S I N G

O R G A N I S AT I O N A LD E V E L O P M E N T

Our Next Steps

Strengthen programme planning and financial management capacity.

Build strategic funding partnerships across Europe.

Ensure quality control on all programmes by enhancing staff capacity in monitoring and evaluation.

Build unrestricted income through multiple fundraising channels.

Develop consulting services in gender and climate change adaptation

Build our capacity in managing projects to deliver results and ensure compliance with donor requirements.

Build our capacity to ensure gender equitable outcomes for all our programmes.

Build our capacity to promote innovative approaches to climate-smart agriculture for smallholder farmers.

The following outlines the actions from our business strategy for 2015 – 2017 which we will take to achieve this goal:

Our Goal is to enable 2.4 million poor rural women, men and children in the developing world to live healthier, more prosperous and

productive lives by end of 2017.

Promote gender equitable outcomes in all our programmes and improve our capacity to facilitate climate change resilience programmes.

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FINANCIAL REVIEW

iDE UK’s income declined somewhat in 2014 compared with 2013, but the charity made a surplus on its Unrestricted funds of £53,261, which when added to the prior

year deficit of £61,842, enabled the deficit to reduce substantially to £8,581.Fundraising performance to date gives the Trustees the confidence that this deficit

is on course to be reduced and eliminated.

Major new funding partnerships were established, including that with the Swedish International Development Cooperation Agency (Sida), providing £2m for a project in Zambia. In addition, we were in discussions with the UK Government Department for International Development (DFID) to undertake a multi-million pound climate-

change project in Nepal, which was won and confirmed in January 2015.

In 2014 the European Commission commissioned an independent audit of the first nine months of the Agriculture and Nutrition Extension Project in Nepal and

Bangladesh. At the end of 2013 we disclosed a contingent liability in respect of unresolved costs on the project, and considerable progress has been made to resolve

our differences. At the date of this report, there is still a contingency reserve of £15,028, which we are negotiating and expect to be reduced further before this

matter is concluded.



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iDE UK Trustees and Organisational structure

iDE UK is an international, non-governmental, non-religious organisation registered as a charity in 2001. The organisation is also constituted as a company limited by guarantee and is governed by a Memorandum and Articles of Association signed in 1999.

The Trustees who held office during the financial year and at the date of this report are set out on page 33. The Memorandum and Articles of Association allow for up to twelve Trustees to be appointed. New Trustees are sourced openly, and interviewed by at least two existing Trustees before being nominated for election to the Board. A mechanism for Trustee rotation after two terms of three years is in place. The company has a process of Trustee induction which includes training sessions, and provision of information related to the work of the company and Trustees’ roles and responsibilities. Where feasible, new Trustees also visit iDE UK’s programmes operating in the field and participate in international board meetings of iDE.

The Trustees meet face to face at least three times a year and hold additional meetings and teleconferences as required. Certain Trustees have responsibility for

monitoring or advising on activities in specific areas. The company’s Chief Executive is responsible for the day to day operations of the company and manages the staff of the company on behalf of the Trustees.

After five years of dedicated service iDE UK’s Chief Executive Lewis Temple left the organisation in September 2014. The Trustees recognise Lewis’ vital contribution in growing the organisation ten-fold to becoming the successful organisation it is today. Lewis was replaced as Chief Executive shortly thereafter by Lucy Hayter, an influential leader with 18 years international experience in the not for profit sector, leading organisations and large scale and complex programmes in Africa, Asia and the Middle East. In addition The Trustees also recognise the substantial contribution made by volunteers to iDE UK. It would not have been possible to achieve what has been achieved without their help and support.

iDE Global structure

iDE UK is a member of the International Development Enterprises (iDE) family of non-profit organisations. iDE itself is based in Denver, Colorado, USA.The Board of iDE meets twice per year, with at least two voting representatives from iDE UK.

Structure and Governance

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Through participation in the Board, iDE UK is an active contributor to international strategy. iDE UK Trustees participate in different sub-committees of the iDE Board, such as the Executive, Finance and Programme Committees, which meet through regular teleconferences. The Chief Executive of iDE UK also represents the UK on management and operational issues.

Role of iDE UK within iDE Global

iDE UK is directly engaged in developing, managing, monitoring, learning from and supporting initiatives funded by entities and individuals in the UK and European Union, so there is direct and clear accountability for those projects. Globally, iDE currently has country programmes in eleven countries in Africa, Asia and Latin America and employs over 800 staff. Of these, iDE UK directly supported projects in Bangladesh, Nepal, Ethiopia, Burkina Faso and Zambia in 2014.

iDE UK represents iDE within the countries of the European Union. It undertakes work and shares experience and learning from iDE’s work globally to inform the policy and practice of Governments and other development agencies. Within the iDE family iDE UK provides technical support on gender and climate change adaptation. In every country where it works, iDE UK collaborates with partner organisations to deliver its programmes, including the private sector, government and other NGOs. iDE UK participates in UK and European networks involved in international development work and is a member of the British NGO

network BOND.

Trustees, Advisors, Bankers

Trustees

• David Curry (Chair)• Michael Dent• David Rigby (Vice-Chair)• Jenny Rohde• Robert Silbermann (Treasurer)• Ingrid Stellmacher (stood down

March 2014)• Ruth Malleson (stood down

22/07/2015)• Craig Jones (app. 26/03/2015)

Chief Executive: Bryan Nielsen, interim. Appointed 7 September 2015

Registered office and principal operating address:2a Accommodation Road, London, NW11 8ED

Telephone: 020 8905 5597Website: www.ide-uk.orgE-mail: [email protected]

Company registration number: 03900606 (England and Wales)

Charity registration number: 1087417

Auditors: Sayer Vincent LLPInvicta House, 108-114 Golden Lane, London, EC1Y 0TL

Bankers: The Cooperative Bank plc, P.O. Box 250, Delf House, Skelmersdale, WN8 6WT

Solicitors: Bates, Wells & Braithwaite, 2-6 Cannon Street, London, EC4M 6YH

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MANAGEMENT OF RISK

The Trustees have established a risk register to identify and review potential risks, their potential impact and likelihood, and actions to be taken to prevent or mitigate

risk. Major activities, such as new programmes, are subject to a risk analysis. Potential risks fall into the following categories:

The Trustees review risks on an ongoing basis to ensure that adequate systems and procedures are in place to manage any risks identified. These include:

Regular review and reporting of major risks;Embedding risk analysis within operating procedures such as grant approval;

A clear structure of delegated authority and control; Regular reporting to Trustees between meetings; and

Establishment of reserves.

Where appropriate some risks are covered by insurance provision.

G O V E R N A N C E F I N A N C I A L O P E R AT I O N A L C O M P L I A N C E E X T E R N A L



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Trustees’ Responsibilities Statement

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The Trustees (who are also directors of International Development Enterprises (UK) for the purposes of company law) are responsible for preparing the Trustees’ report and 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 which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

• Select suitable accounting policies and then apply them consistently;

• Observe the methods and principles in the 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 financial statements; and

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

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

financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

• So far as the Trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and

• The Trustee has taken all the steps that he/she ought to have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. The Trustees are responsible for the maintenance and integrity of financial information included on the charitable company’s website.

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

Auditors: Sayer Vincent LLP were re-appointed as the charitable company’s auditors during the year and have expressed their willingness to continue in that capacity.The report of the trustees has been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime.

Approved by the Trustees on 22 September 2015 and signed on their behalf by:

Name: David Maurice CurryTitle: Chair

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Independent auditors’ report – to the members of International Development Enterprises (UK)

We have audited the financial statements of International Development Enterprises (UK) for the year ended 31 December 2014 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 charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees and auditors

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

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

Scope of the audit of the financial 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 charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the report of the trustees to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at

INDEPENDENT AUDITORS REPORT

3838

31 December 2014 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

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

Emphasis of matter – Going Concern

In forming our opinion, we have considered the adequacy of the disclosures made in the principle accounting policies for the financial statements regarding the future financing of the charity and the application of the going concern basis in preparing the financial statements. The charitable company has negative unrestricted funds of £8,581 at the end of the year. These conditions, along with the other matters explained in the principle accounting policies section, indicate the existence of a material uncertainty, which may cast significant doubt about the charitable company’s ability to continue as a going concern. As set out on page 29, the trustees believe that on the basis of anticipated sources of income, the charity remains a going concern. The financial statements do not reflect any adjustments that would result if the charity were unable to continue as a going concern. Our audit opinion is not qualified in this respect.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the report of the Trustees 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:

• Adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us

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

• Certain disclosures of trustees’ remuneration specified by law are not made

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

• The trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemption in preparing the report of the trustees and take advantage of the small companies’ exemption from the requirement to prepare a strategic report

Jonathan Orchard (Senior statutory auditor)

29 September 2015

for and on behalf of Sayer Vincent LLP, Statutory Auditors

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Independent Auditors Report



3939

STATEMENT OF FINANCIAL ACTIVITIESY E A R T O 3 1 D E C E M B E R 2 0 1 4

Total TotalUnrestricted Restricted 2014 2013

funds funds funds fundsNotes £ £ £ £

Income and expenditureIncoming resourcesIncoming resources from generated funds. Voluntary income 1 76,253 - 76,253 59,637 . Interest received 65 65 135

Incoming resources from charitable activities 2 155,547 2,026,953 2,182,500 2,523,038

Consultancy and other income 16,803 - 16,803 9,643

Total incoming resources 248,668 2,026,953 2,275,621 2,592,453

Resources expended 3

Cost of generating funds 4,583 2,087 6,670 8,251

Charitable activities 180,830 2,341,651 2,522,481 2,694,288 Governance 4 9,994 4,275 14,269 16,223 Total resources expended 195,407 2,348,013 2,543,420 2,718,762

Net movement in funds 53,261 (321,060) (267,799) (126,309)

Balances brought forwardat 1 January 2014 (61,842) 991,085 929,243 1,055,552

Balances carried forward

at 31 December 2014 (8,581) 670,025 661,444 929,243

All of the charity’s activities derived from continuing operations during the above two financial periods. The charity has no recognised gains and losses other than those shown above and therefore no separate statement of total recognised gains and losses has been presented.

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Balance Sheet

Y E A R T O 3 1 D E C E M B E R 2 0 1 4

Notes 2014 2014 2013 2013 £ £ £ £

Fixed assetsTangible assets 7 816 1,072

Current assetsDebtors 8 154,936 1,103,107 Cash at bank and in hand 935,904 128,524

1,090,840 1,231,631 Creditors: amounts falling duewithin one year 9 (430,212) (293,135)within two years - (10,325)

Net current assets 660,628 928,171

Total net assets 661,444 929,243

Represented by:Funds and reservesIncome funds: Restricted funds 10 670,025 991,085 Unrestricted funds General fund 11 (8,581) (61,842)

661,444 929,243

Approved by the Trusteesand signed on their behalf by:

Trustee: David Curry, Chair Approved on: 22nd September 2015Company registration number: 03900606



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PRINCIPAL ACCOUNTING POLICIES

Y E A R T O 3 1 D E C E M B E R 2 0 1 4

Basis of accounting

The financial statements have been prepared under the historical cost convention and in accordance with the requirements of the Companies Act 2006 and applicable accounting standards. The Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP 2005) has been followed in these financial statements.

Going Concern

The financial statements have been prepared on a going concern basis. This is based on actual performance to September 2015 and projections to September 2016. The key projections relate to a number of initiatives and proposals that have been achieved, are currently in the pipeline or under donor consideration. Over the past several years, iDE UK has diversified the number of projects, which means that there are now a larger number of opportunities available to the charity. Although not all of the income proposals in the pipeline will be successful, a sufficient number of them are expected to be which will ensure adequate resources are available for the charity to meet its targets.

Income

Incoming resources are recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Incoming resources are

deferred only where the donor has imposed restrictions on the expenditure of resources which amount to pre-conditions for use which have not been met at the balance sheet date (e.g. the receipt in advance of a grant for expenditure in a future accounting period).Where grants are paid in arrears or based upon expenditure incurred, income is accrued to the extent that recovery from the funder under a confirmed funding arrangement is reasonably considered certain.

Grants from government and other agencies have been included as income from activities in furtherance of the charity’s objectives where these amount to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom of use, for example monies for core funding.

Resources Expended

Expenditure is included in the statement of financial activities when incurred and includes attributable VAT which cannot be recovered.

Resources expended comprise the following:

1. The costs of generating funds includes the salaries, direct costs and overheads associated with generating voluntary income.

2. The costs of charitable activities comprise expenditure on the charitable company’s primary charitable purposes as described in the Trustees’ report.

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Principal Accounting Policies

Y E A R T O 3 1 D E C E M B E R 2 0 1 4

3. Governance costs are the costs associated with the governance of the charitable company and its assets. Included within this category are costs associated with the strategic, as opposed to the day to day, management of the charitable company’s activities.

The majority of costs are directly attributable to specific activities. Certain costs are apportioned to activities as described in note 3.

Cash Flow

The financial statements do not include a cash flow statement because the charitable company is exempt from the requirement to prepare such a statement under Financial Reporting Standard 1, ‘Cash Flow Statements’.

Tangible Fixed Assets

All assets costing more than £500 are capitalised at cost including incidental expenses of acquisition.

Depreciation is provided at the following annual rates on a straight-line basis in order to write off the cost of each asset over its estimated useful life:

• Computer Equipment - 33.33%

Equipment used in operational programmes overseas is considered to have a useful economic life of one year or less. It is not

capitalised but is charged in full to charitable expenditure when purchased.

Fund Accounting

The general fund comprises those monies which may be used towards meeting the charitable objectives of the charity and applied at the discretion of the Trustees. Restricted funds comprise monies raised for, or which have their use restricted to, a specific purpose, or contributions subject to donor-imposed conditions.

Foreign Currency

Assets and liabilities are transferred into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Expenditure relating to restricted funds originally received in foreign currencies are translated at the same rate as the income was originally received. This reflects that no gain or loss is ultimately recognised on the project as project funds when received are retained in the original currency.

Leased assets

Rental applicable to operating leases, where substantially all the benefits and risks of ownership remain with the lessor, are charged to the statement of financial activities as incurred.



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NOTES TO THE FINANCIAL STATEMENTS

Unrestricted funds £

Restricted funds

£

Total2014

£

Total2013

£Donations 76,253 - 76,253 59,637

Unrestricted funds £

Restricted Funds

£

Total2014

£

Total2013

£Grants

. Swedish International Development Cooperation Agency

92,343

926,065

1,018,408 (836)

. European Commission 57,589 934,596 992,185 2,400,247

. Comic Relief 526 2,474 3,000 2,565

. The Innocent Foundation 1,990 21,850 23,840 -

. Miscellaneous Charitable Trusts - - - 2,067

. Charitable Aid Foundation (Mace Legacy) - - - 103,117

. BIF Bangladesh- Soil Testing - - - 15,878

. DFID

. Frankfurt Business School

. Big Lottery Fund

3,099 116,390 119,489 -- 10,645 14,933 -- 14,933 10,645 -

155,547 2,026,953 2,182,500 2,523,038

Activitiesundertaken Support Total Total

directly Costs 2014 2013£ £ £ £

Cost of generating funds 6,033 637 6,670 8,251 Charitable Activities. Nepal / Bangladesh 1,244,146 131,460 1,375,606 573,733 . Mozambique - - - 27 . Ethiopia 325,506 34,393 359,899 1,866,141 . Zambia 683,653 72,236 755,889 228,742 Other 28,117 2,971 31,088 25,645 Governance 12,905 1,363 14,268 16,223 2,300,360 243,060 2,543,420 2,718,762

1. Voluntary Income

2. Incoming resources from charitable activities

3. Resources expended

4444

Notes to the Financial Statements

Activitiesundertaken Support Total Total

directly costs 2014 2013£ £ £ £

Staff costs – UK 22,656 160,040 182,696 188,963Other expenses 2,277,704 83,020 2,360,724 2,529,799 2,300,360 243,060 2,543,420 2,718,762

Unrestricted Restricted Total Totalfunds Funds 2014 2013

£ £ £ £

International Board expenses 1,088 970 2,058 3,767 Auditor’s remuneration. Statutory audit services 7,000 - 7,000 6,304 . Statutory audit services - previous years 820 - 820 4,400

Other 1,086 3,305 4,391 1,752 9,994 4,275 14,269 16,223

Total Total2014 2013

£ £

Staff costs for UK employees during the year were as follows:Wages and salaries 165,848 170,696Social security costs 15,440 18,153Pension 1,408 114 182,696 188,963

3. Resources expended (continued) The expenditure above consists of the following principal costs:T

4. Governance

5. Information regarding employees and trustees

Support costs have been allocated based upon estimates of time incurred supporting each project. Other expenses includes amounts spent on hardware such as drip kits and treadle pumps as well as general operating expenses.



4545


One employee earned between £60,001 - £70,000 per annum (2013 – one).

The average number of employees in the UK during the year was five (2013 – five).

No Trustee received any remuneration in respect of their service as Trustee during the year (2013 - £nil), and one Trustee (2013 - one) was reimbursed a total of £31.00 (2013 - £1,004) relating to travel and accommodation expenses.

6. Taxation

iDE UK is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

7. Tangible fixed assets

Computerequipment

£

CostAt 1 January 2014 8,025

Additions 543At 31 December 2014 8,568

DepreciationAt 1 January 2014 6,953Charge for year 799At 31 December 2014 7,752

Net book valuesAt 31 December 2014 816At 1 January 2014 1,072

46

Notes to the Financial Statements

2014 2013£ £

Funds held overseas by partners 1,589 140,184Grant income due from funders 120,863 -Prepayments and other debtors 23,328 13,906Accrued project income 9,156 949,017 154,936 1,103,107

2014 2013£ £

Other creditors and accruals 14,307 29,040Amounts due to implementing partners 415,905 264,095 430,212 293,135

2014 2013£ £

Other creditors and accruals - 10.325 - 10,325

8. Debtors

9. Creditors: amounts falling due within one year

Creditors: amounts falling due within 2 years



47


10. Restricted Funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants to be applied for specific purposes or in the following countries:

ResourcesAt 1 expended At 31

January Incoming and December2014 resources transfers 2014

£ £ £ £

Vietnam (Fertiliser Deep Placement) 7,208 (540) 6,668 -

Ethiopia (SMART) (188,104) 273,691 85,587 - Ethiopia (LIFT) - 20,847 14,933 5,914 Ethiopia (SAFE) - 251,612 239,613 11,999 Nepal/Bangladesh (ANEP) 1,115,853 340,161 1,195,677 260,337 Bangladesh (DFID Business Innovation Facility) 19,649 - 19,649 -

Pamela and Robert Mace Legacy (Gender) 50,200 - 45,697 4,503

Zambia (WIN) (18,331) 168,365 128,943 21,091 Zambia (ColaLife) - 44,278 44,278 -Zambia (SHARED) - 926,065 559,884 366,181 Organisational Development Initiative (UK) 4,610 2,474 7,084 -

991,085 2,026,953 2,348,013 670,025

Negative restricted fund balances represent spend on EU funded projects for which income is received once the final report is submitted.

11. Unrestricted Funds

At 1 At 31January Incoming Resources December

2014 resources expended 2014£ £ £ £

General fund (61,842) 212,386 195,407 (44,863)

Notes to the Financial Statements12. Contingent liabilities

The charity has continued its negotiations with the European Commission with respect to the contingent liability disclosed in the previous financial year’s financial statements. This has resulted in a reduction of the possible liability, by almost half, to a value of £15,028. Dialogue continues to take place between the charity and the European Commission, with a view of further reducing this amount before concluding the matter.

13. Analysis of net assets between funds

14. Operating lease commitments

At 31 December 2014, the charity had the following annual commitment under a non cancellable operating lease:

15. Related Party Transactions

During the year, Robert Silbermann was engaged as the interim Chief Executive and received £9,000 for the services provided. Robert Silbermann was a trustee of the charity prior to taking up the role but resigned his position whilst engaged by the charity.

The Board unanimously selected Robert Silbermann, the Treasurer, to act as the interim CEO. This was because of his extensive experience over 20 years of working as an interim in the charity sector, and also because of his knowledge of iDE UK and his immediate availability. A permanent Chief Executive has now been employed and since that date Robert Silbermann has been re-appointed as a trustee of the charity.

Unrestricted Restricted Totalfunds funds 2014

£ £ £

Fund balances at 31 December 2014are represented by:Fixed assets 816 - 816 Current assets 420,815 670,025 1,090,840 Creditors: amounts falling due within one year (466,494) - (466,494) (44,863) 670,025 625,162

Land and buildings 2014 £

2012 £

Operating lease which requires:. Within two to five years 15,420 15,420

4848



4949


16. Relationship with iDE International

Under an operational protocol with iDE International, iDE UK has undertaken to make financial contributions to iDE International in recognition of the project management support provided by iDE International. Given the current financial position of iDE UK, the trustees have decided that it is not possible for iDE UK to make such a financial contribution in relation to the 2014 financial year and no such payment is recognised in these financial statements. Discussions are on-going with iDE International to agree a basis on which iDE UK will compensate iDE International for the provision of project management support going forward, subject to iDE UK having sufficient unrestricted reserves.

Documents

iDE UK 2014 Annual Report