The HALO Trust (a companylimited by guarantee) Annual reportand financial statements Companynumber 2228587 Charityregistration numbers 1001813and SC037870 31March 2010 The HALO Trust (a companylinrited by guarantee) Companynumber 2228587 Annual repod and financialstatements 3l March2010

Contents

Trustees'annual repoft I StatementofTrustees'responsibilities in respect ofthe Trustees'Report and the financialstatements l3 IndependentAuditors' Report to the membersofThe HALO Trust l4 Statementof fi nancial activities l6 Balancesheet 17 Cashflow statement I8 Notes l9 TheHALO Trust (a compaoylimited by guarantee) Companynumber 2228587 Armualrcport andfnancial statemeots 3l March2010 Trusteest antrual report

The Trustees,who are also directorsofThe HALO Trust for the purposesof the CompaniesAct 2006, present their annualreport andthe audiiedfinancial statementsfor the y€axended 3l March 2010.

Reference and administrative information

Charity Name TheHALO Trust

Charity registrationnumbers l00l8l3 andSC037870

Company registration number 2228587

Businessaddress Carronfoot Thomhill Dumfriesshire DG3 5BF

Directors and Trustees A L Grinling (Chairman) A J M Lowther-PinkertonMVO MBE T P McMullen Dr D T Plesch (resigned13 November2009) A J G Wight OBE MC LVO M R MertonFCA ACT (appointed13 May 2010)

Chief Executive G N J Willoughby

Secretary N Fraser

Registeredoffice t25 BorougbHigh Steet London SEI lNP

Auditors KPMG LLP l9l WestGeorge Street Glasgow G22LJ

Bankers Royal Bank of Scotlandplc 36 St Andrew Square Edinburgh ET122YB

Legal advisors HarbottleAssociates AndersonStrathem WS 2 KentishBuildings 48 CastleStreet 125Borough High Street Edinburgh London EI123L){ SE1INP

Investment advisors CazenoveCapital Management Limited EdinburghQuay 133Fountainbridge Edinburgh EH3 9QG 'l he IIALO Trust (a compatrylintited by guarantee) Companynumber 222[i587 Annual reportand linancialslatements 3l March2010 Trustees'annual report (continued)

Structure

The companyis a register€dcharity (registered in Englandand Wales- No. 1001813and - No. SC037870) incorporatedunder the CompaniesAct 2006 as a companylimited by guarantee(Company number 2228587), and its govemingdocuments are its Memorandunand ArticlesofAssociation. Eachofthe membershas undertaken to contributethe sumoff100 in the eventofthe companybeing insolvent on windingup whilst he/sheis a member,or within oneyear after he/she ceases to be a member.The companyis managedon behalfof the membersby a Board ofTrustees.

Governanceand Management

Governance

Potentialnew Trusteesare initially identifiedand appointedby currentTrustees and serveuntil the next Annual GeneralMeeting at which the Membersof the companywill eitherconfirm or rejecttheir appointment.Once appointed,Trustees serve for three years at which point they must retire and offer themselvesfor re-election. In addition,the company'sArtictes ofAssociation require one third ofthe servingTrustees to retjrefiom office at each Annual GeneralMeeting. The retiringTrustees are eligiblefor re-election.The Trusteeswho servedduring the yearare shown on pagel.

Potentialnew Trusteesare selectedaccording to specific skills they possessthat would benefit the overall managementand directionof the organisationas a whole. For example,given the natureof someof the countries HALO operatesin security of our staff is a major concern;as such, one of the Trusteeshas a backgroundin related issuesand is able to provide appropriateadvice and guidance. Other Trusteeshave skills relatedto the legal environment,financial issues,politics and internationaldevelopment. Once agreementon the potential new Trustee hasbeen reached an informalapproach is madeto ascertainwhether the individualwould wish to undertakewhat is in essencea significantresponsibility.

Trusteeinduction comprisesan initial two day intensiveperiod at the UK headquaftersin south west Scotland. This two day period is designedto give the new Trustee both a thorough briefing on the range and breadth of HALO operationsand a clear understandingof their own legal and administrativeresponsibilities arising out of their position on the Board. Operational issues are dealt with by a combination of staff drawn liom the senior managementteam with the administrativeaspects of their responsibilitiesarising from legislationand regulation covered by the Chief Executive and Finance Director. In addition, Trusteesare free to consult the organisation's legal advisors should they feel it appropriate. Trusteesare also expectedto undertakeat least one country visit every two yearsto ensurethey maintain a clear understandingofthe operationalprocess and environment.

The threeor four meetingsofthe Boardheld each year also allow the communicationof changesin regulationand ensurcthat the Trusteesare kept up to date. In addition to the formal meetings,information and reports are sent to Trusteeson a bi-monthlybasis.

Disclosureof information to auditors

The Trusteeswho held office at the date of approval of this Trustees' report confirm that, so far as they are each aware, there is no relevant audit information of which the company's auditors are unaware;and each Trustee has taken all the stepsthat he ought to have taken as a director to make himself aware ofany relevantaudit information and to establishthat the company's auditorsare awareofthat information. TheHALO Trust (a companylimited by guarantcc) Companynumber 2228587 Annuarrepon and rina'Ti"il,jiffii[

Trustees'annual report (continued)

Management

The Trusteesare responsible for the strategicdirection ofthe organisationand the charityis organisedin the way the Trusteesthink mostsuitable at the time - currentlyHALO and its alliedorganisation, The HALO Trust(USA), Inc. ("HALO USA"), employover 7,500indigenous mineclearers and 40 expatriatemanagers and technicians, all spread across HALO'S international programmes.The UK headquartersare staffed by one director, five regional desk officers (SE Asia, Central Asia, Caucasus& Balkans,Horn of Afiica, and SouthemAfrica), three other desk/project officers covering logistics/support,Weapons & Ammunition Disposal (WAD), and mechanical,and also a finance/administratjon deparlment under a Finance Director -all of whom travel around and co-ordinate the overseaswork and liaisewith governmentsand sponsors.

This headquarlersis also responsiblefor the separateday-to-day management of HALO USA operations.

Operational decision making in respect of programme managementis delegatedby the Trustees to the Chief Executiveand seniormanagement with strategicissues being reserved for Boarddecisiorr. For example,expansron of an in-country programme would not normally require Board oversight as, once sufficient finance was in place, the additional work would be undertaken. However, expansion into new areas of operation that might be substantiallydifferent from that currently being undertakenwould be reservedfor the Board in the light of advice tiom the seniormanagement team.

The Trusteesbenefited from qualifying third pady indemnity provisions in place during the financial y€ar and at the dateofthis report.

Risk management

The Trusteeshave identified the major strategicrisks that HALO is exposedto and have establishedcontfols ard action to minimise potential adverseoutcomes. Risk is a significant part ofdaily operationsfor HALO and is thus accordedconsiderable management time- As far as possible,the Trusteeshave ensuredthat all operationaldsks to staff, assetsand third partieshave beenexamined and appropriateplans put in place to managethis risk. Examples include ensuringthat all staff are insuredagainst injury and death,continuous training and review of staff and skill sets necessaryto undertake clearanceoperations safely, appropriatethird pafiy and businessinsurance, vehicles have necessarymine protection fitted, and regular monitoring visits by senior management,finance staff and UK- basedmedical advisors.

The Trusteesalso actively review the major financial risks which the charity faces on a regular basis and believe that maintaining free reservesat the levels stated,combined with ongoing review of the controls over key financial systemscaried out through audit programmes,will provide sufficient resourcesin the eventofadverse conditions.

The Trusteesconsider the following to be the main risks faced by the organisation; o Interruption/discontinuanceofdonor funding a number ofmulti-year programmefunding agreementsare now in place with donor govemments; o Security of working environmentsand staff fortnightly securit)' assessmentsare carried out and reportedto headquarte$; . Key stafltumover - successionplaming and staffandjob rotation are regularly reviewed; and r Financial managementsystem integrity - comprehensiveand frequent systemreviews are undertakenallied to strong intemal control and check processes. The HALO Trust (a conlpanylinited by guarantcc) Cornpanynumber 2228587 Annual reportand linancialstatenlents 3l March2010

Trustees' annual report (continued)

Objectivesand activitiesfor the public benefit

Objectives

The charifj/is a non-political,non-religious, British charity whose main objectiveis the reliefof poverty,sickness, sufferingand distressincluding the removalof the debrisof war. HALO providesmineclearance, engineering and medicalsupport, and also assists other re lief organisations and monitorsprogrammes in a post-conflictenvironment. 'getting HALO's policy is to concentrateits effortson pure mineclearance mines out of the ground,now', on weapons,ammunition and bomb disposaland provingground safe for roadmovement or rehabilitation- and being flexible enough to use its very considerablehuman and equipment assetsfor emergency disaster relief where necessary.Its policy is to avoid all unnecessarydistractions that so often cluttercharitable operations - such as publicrelations, advertising, symposiums and conferences, and bumbling bureaucracies.

The HALO vision is to continueto strengthenits role as the biggestindependent mineclearance operator in the world, while ensu ng the overall prioriq/ of ellective and efficient seryice delivery to the local populations in countriesthat are affected by the debris of war. In order to achieve its objectives,HALO strives to maintain the higheststandards of servicedelivery and expand wherever and whenever resources will allow in the fieldsof:

. Mineclearance- allow teamsto provide clearancebased on priofity humanitarianneed; . Explosive Ordnance Disposal (EOD) - provide specialist servicesto destroy or safely remove any items of unexplodedordnance which remainsas debrisof war (now referredto "ERW" - ExplosiveRemnants of War); and . Weapons& Ammunition Disposal(abbreviated to "WAD") to enabledisarmament, demobilisation and reintegration of fomer combatantsand the disposal of surplus stockpiles of weapons and ammunition in supportof variouspeace processes.

The Trustees confim that they have refered to the guidance contained in the Charity Cornmission's general guidanceon publicbenefit when reviewing HALO's aimsand objectives and in planningfuture activities.

Activities 'humanitarian The whole concept of mineclearance' was introduced to the international community by The HazardousAreas Life-support Organisation (HALO) in 1988.

During the year 2009/10, HALO conductedmineclearance and associatedprogrammes in , Cambodia, Angola, Mozambique,Georgia, , Nagorno Karabakh,, Kosovo, Sri Lanka and Colombia.

In briel, the fall in our recordedexpenditure off2.5m mainly reflects the additional funds expendedin the prevrous year to set up operationsin West Afghanistanand in Ceorgia. Approximately 85,000 landmineswere clearedand 600,000items ofUnexploded Ordnance (UXO) duringthe year. Theseresults are all highly commendable.

During the period, HALO projectswere sponsoredby the Govemmentsof:

. Austria; . Belgium; . Canada; r CzechRenublic: r Finland; . Cermany; o lreland; . Japan; r TheNetherlands: . Norway; . Switzerland; . (Foreign& CommonwealthOffice and the Departmentfor IntemationalDevelopment); TheHALO Trust (aconrpany lirrlited by guarantee) Companynumber 2228587 Annuarreport and ,'naTi"ilT:iTlt

Trustees' annual report fcontinued)

Activities kontinued) andalso by r EuropeanCommission Humanitarian Aid Office(ECHO) and EuropeAid Co-operationOffice (AIDCO); . The ReeceFoundation: . Associationfor Aid and Relief(AAR) Japan; . Tokyo DistrictofRotary International; . ActiefondsMrjnen Ruimen (AMR); . UnitedNations Intemational Children's Emergency Fund (UNICEF); and . UnitedNations Development Programme (UNDP) andUnited Nations Mine Action Service(UNMAS); andnumerous generous private .

Of note,the Covernmentsof Ireland,Finland and The Netherlandscontinued their "block" fundingscheme, as has the UK Governmentthrough the auspicesof the Departmentfor IntemationalDevelopment (DFID), which allows HALO more fieedom to allocateclearance funds betweencountries in responseto any emergencyrequirements.

Achievements and performance

It is often very difficult, for HALO to set meaningful performancetargets in relation to operationaloutput, as to a largedegree it is impossibleto ascertainwhere the needfor serviceswill arisenor the magnitudeof the problem once identified. These difficulties are inherent in the nature of clearanceoperations as all too often maps and recordsno longerexist, personnel involved in establishingminefields have subsequently been killed in the conflict and shiftingfront lineshave led to the sameground being mined on more than one occasion.Furthermore, the sfategic clearanceand developmentplans of the countrieswe work in, and their provincial and district plans, will take primacy and theseplans are subjectto quite frequent change.

Operationalperfomance within the year was strongly aheadof expectationsand is all the more remarkablegiven the nature and scale of the problems facing, sometimesremote, communities. HALO continuesto ensurethat all available resourcesare targeted to where they will do the most humanitarian good. The following paragraphs outline the detailedoperational performance and benefitsachieved from our work.

In the financialyear 2009/10 the HALO teamsdestroyed a total of 85,406mines and 567,786UXO. In addition, over 1,000,000rounds of smallarms ammunition were destroyed.

The 7,500staff working for HALO are suppoted by 137 "heavy" mechanicalunits and a fufther40 mechanical ancillary systems- from vegetationcutters to roller attachments.HALO'S total transport fleet has 1,330 vehicles, excludingtrailers.

Includingour clearancefigures from the 1990s,HALO UK and HALO USA clearancefigures lbr mines and ordnancereached 12,011,440 by 3l March 2010,in additionto destroyinga staggering48,464,165 rounds of small armsammunition and 131,218weapons (from assaultrifles to tanks).

Whilst achieving the clearancefigures noted above,HALO was able, in accordancewith our objectives,to achieve the following resultswithin the year freeing up land and accessto local communitiesfor agriculture"housing, water and other redevelopmentprojects necessary to help reconstructtheir lives and livelihoods:

. minecfearanceoperations retumed over 2,70'7 hectares (2,634 in 2008/09) of former minefields to local DoDulations: over 28,050people (51 ,644 in 2008/09)received Mine RiskEducation; 2,808Battlefield, Mineclearance and Explosive Ordnance Disposal tasks (1,803 in 2008/09)were completed; anq BattfefieldArea Clearanceteams cleared over 14,577hectares of land(12,795 in 2008/09)of unexplodedand abandonedammunition. TheHALO Trust (aconpany lilnited by guaranlce) Cornpanynurnber 2228587 Annuarreporr and rinaTi"il*:iHlt

Trustees'annual report fcontinued)

Achievementsand performance(conlinued)

HALO's prioritiesfor 2009/10were set out in the 2009 annualrepoft; these are noted below togeth€r with progress made on eachobjective:

. Expand mineclearanceacross the south and centreof Mozambique,so that the poorestvillages can be lifted out of extremepovefty - and surveythe Mozambique/Zimbabweborder to identifythe impactof mineson rural communitieseach side ofthe border;

Progress- programme expandedto 374 stqlf, with clearance undertqkenin Mttputo and Teteprovinces, and the survey of the Mozambique/ Zimbawe border cctmpleted.

. Expandnrine and clusterbomb clearance in Kosovoso thatthe ruralcommunities can develop through forestry, agricultureor indeedincome generating tourismi

Progress- clearanceteams found well over 100 mines qnd cluster bombs during the year, I 0 years after the conflict.

. Continueto expandclearance operations in Afghanistan,particularly in and aroundthose villageswhere agriculturaldevelopment is mosthampered by landmines;

Progress - while the number of ammunition clearance te.tmsreduced slightly, we increasedthe nunber oJ mineclearanceleqms out in the villages, taking ottr stalJinglevels to over 3,600.

. Continu€to expandWAD operationsin Angola to assistnational disarmament, and expandmineclearance to allow greateragr'cultural activity in the farmland and also better marketing ofgoods on the road network which is cunentlyinhibited by mines;

Progress HALO's weapons disposal teams worked in every pro.,,incein Angola, while the mineclearance teamsmored into a 5'' prot,ince, Huilq, despiteshortage of donorfunds. Clearanceof mined roqds continued. . Sustain and preferably expand or quicken mineclearancein Cambodia to reduce casualtiesand allow food productionto increase- andcomplete a new baselinesurvey ofNW Cambodia; - Progress mineclearancewas suslained at full capacity, even thctughdonor funding becamevery tight. The f.rst phase ofthe BaselineSuwey was compleled,while the secondphqse awaits the Cambodian(ioyernment's go ahead.

r Renew clearancein Sri Lanka in responseto the movementof lDPs following the considerablechange in the military-political landscapeafter the early 2009 advancesofthe Sri Lankan army; Progress HALO made particular progress in clearing ground ahead of IDP rcturn to both the Vanni qnd Jalfna areas, using 600 re-empk'yed deminers.

. Develop a sounderfunding platform for Nagorno Karabakh's mineclearanceand clusterbombclearance - so that larger areascan be ploughedand cultivated; Progress- Fundingwas sustained,but not increasedas we had hoped.

. Deploy new Dual Sensor detectorsto quicken up mineclearancein Somaliland and Angola where minimal metal anti-tank mines impact on communities,and detectordeployment was delayed in 2008/09; Progress deployment of Dual sensor detectors to Somqlil.lnd was again delayed due to export licence control Ji.om the USA, through triqls v,ere runwith two systems in Angola on a variety of ground conditions. . Completethe re-surveyofSomaliland; Progress - completed.

. Completeclearance ofcluster bombs in the villagesnorth ofGori in Georgia,following the shortwar ofAugust 2008, and endeavourto commenceclearance in SouthOssetial Progress - completed. 'lhe I IALO Trust (a companylimited by guarantee) Companynumber 2228587 Annuarrcport and t*Ti"il'iis'];lt;

Trustees'annual report (continued)

Achievements and perfor mance (conlinu ed)

. Continueclearance in the UpperKodori ValleyofAbkhazia; - Progress continuedclearance, tNith completion .t'brecast in nid 20I 0. . Reyiewthe clearancepriorities in Colombiafollowing the invitationfrom the govemmentin Bogota. Progress - reviews of priorities continued throttgh ground surveys,.fornal legal registration qnd a Memorandum of Understanding both signed, with clearance decisions pending the new post-etection Presidentialdeqee in nid-.lune 2010.

. Aim to havea similaror greaternumber of deminersemployed at year end March 2010 as at October2008 whenthe globalcredit crunch crunched provingthat HALO canride out an economicrecession and continue to assistthe mostimpoverished communities. Progress achieved! Over 7,500stalfstill employedat the end ofMarch 2010.

ln respectof its overallgovernance and direction HALO hascontinued to follow bestpractice and retained the focus on all strandsof the operationand thereforeremains the largestand most efficientindependent operator in the world.

The main developmentsin 2009/10have been our expansionin Sri Lankato makesafe numerous vilJages for the return of lDPs post-conflict,the completion of cluster bomb clearancearound Gori in Georgia, and the completion of surveysin Somalilandand the Mozambique/Zimbabweborder.

As with each year, trying to summariseprogrammes in just a few paragraphsis hard and gives little credit to the thousandsofHALO staffwho have plugged away on their handsand kneesfor little financial reward - they are not forgotten,on the contrary,we honour them. Many ofour deminersin Afghanistan,Cambodia and Angola have now workedday-in, day-out on the minefieldsfor morethan l5 years,while deminersin Somalilandand elsewherehave worked for more than l0 years. Theirs is an achieyementsurely unmatched in history with our day-to-day clearanceoperations having exceeded the cornbinedduration of bothtwentieth century World Wars.

The HALO Trusl (USA), Inc.

Followingthe formationof The HALO Trust (USA), Inc. by The HALO Trust, HALO USA continuesro grow throughuse of Americanfunding (some$21 million in 2009/10). The financialresults of HALO USA are not included here. Both organisationscomplement each others activities and work together in the field in an efforl to cleareven more minesaround the world, Co-ordinationand continuityis providedbv the Chief Executivealso holdingoffice as the Presidentofthe HALO USA BoardofTrustees.

Afghanistan

Afghanistancontinues to be our largestprogramme, with more than 3,500 Afghan staff. HALO teamsare clearing old front lines betweenthe Northem Alliance and the - lront lines that ran through the fertile and highly populated Shomali valley, through the intensive irigated farming districts of Kunduz and Takar, over the higher rain-fed wheat plains and along the ridges usedby villagers for grazing their sheep.Clearance ofthe sectorof front line closestto Bagramhas beenaimost finished, which has allowed rnanyteams to redeploy back to the highly impactingminefields laid in both the Najibullahperiod (1989-92) which includedinter-Mujahideen fighting in the Chorband Valley that links Parwan and Bamyan provinces, and minefields from the Soviet occupation(1979-89). Meanwhilewe havespread HALO's geographicalArea of Operationswest into HeratProvince - where funding provided for an additional 550 deminers to be trained and deployed during 2009. The disarmament (DDR) progmmmethat HALO assiststhe UN's ANBP (Afghan New BeginningsProgramme) has changedemphasis from redundantbulk ammunitionand agedstockpile disposal to more detailedsurveys of smallercaches that could be used by anti govemment elementslor Improvised Explosive Devices (lEDs) - as the larger stockpileshave mostly been destroyed. The upsurge in fighting has restricted HALO's ability to expand into other new provrnces, however there is still so much high priority humanitarianclearance in our curent areasof work that our teams do not needto move intoareas ofpoorer security. The HALO Trust (a conpany limitcd by guarantcc) Conpany numbcr2228587 Annuarreport a'd linaTi"rii:i"]"Jl:

Trustees' annual report (continued)

Achievementsand performance(conlinued)

Cambodi(

Cambodiais still one of the mostmine affectedcountries in the world, and HALO hasmanaged to maintain1,000 localstaff, even though the collapseof Europeancurrencies against the US dollarhas put considerablepressure on our localbudgets. On theground HALO continuedmain clearance work in Battambang,Banteay Meanchey, Krong Pailinand Oddar Meanchey provinces, and HALO averageda clearanceof3,000 mr'nesa month. The vastmajority of civilian minescasualties occur in the villagesthat lie in, or nearto the K5 bordermine belts,and this is where HALO concentrateseffofi. Work was interruptedby a borderdispute with Thailand,particularly in the Preah Viheartemple area howeverHALO's teamswere ableto be diveftedinto equallyhigh priority clearancein the communesset back a few kilometresfrom the borderwhere long abandonedbut minedVietnamese bases are now being inhabitedand farmed by families moving from other pats of Cambodiaand desperatefor land.

Mozambique

HALO's BaselineSurvey Assessmentof Southernand Central Mozambiqueidentified over 500 minefields requiring clearance,and also discoveredextensive mining around mined pylon lines leading from South Africa into Maputo,and Rhodesianlaid defensivemine beltsbeside and straddlingthe Mozambique/Zimbabweborder. During 2009/10HALO teamscleared dense mined areas along the pylons,and also embarkedon clearanceof mine belts around the Cahora Bassadam complex in Tete province. Mozambique has an Ottawa Mine Ban Treaty target for completionof mineclearanceby 2014, but will not reachthat target unlessHALO can increasethe numberof deminingteams deployed an increaseconstrained simply by shortageoffunding.

Angola

Angola,along with Afghanistan,Cambodia and Colombia,is one of the four most mined countriesin the world. HALO had to shrinkits numbersofdeployed deminers from 1,200down to 900 duringthe year,due the impactof exchangerate moves in the lastquafer ofthe financialyear, and the lossofthree key donors- the Swiss,Dutch and JapaneseGovernments while the much promised EC funding failed to go through its bureaucratichoops in time for deminersto be retained.High priority clearancecontinued across the provincesof CuandoCubango, Bie, Huamboand Benguela- andinitial interventioninto Huila. HALO continuedto clearon averagea thousandmines eachmonth. We continuedthe developmentof mechanicalsystems to clearminimal metal mines from roads,and this was augmentedin 2009 with testing of a new vehicle mounted Ground PenetratingRadar. While clearance progressis notable, it is still too soon to forecasta completion date for clearanceprovince by province and any furtherdrop in deminingteam numbers due to the EC fundingdelays will havea directimpact on futuretimeframes for achievingclearance out in the mostmined rural communities.Even if demjnernumbers do tail off in mid-2010, HALO will be workinghard to ensurethat by 201I the numberswill be backup to levelsofaround 1,200.

Somslih.nd

HALO is still the only minecleamnce organisation conducting humanitarian mineclearanceand unexploded ordnancedisposal in Somaiiland. HALO believesthat with the increasedcapacif and sustainedfunding, it is possible to clear the majority of high and medium priority minefields in Somaliland in the next three years. The introduction of new Dual Sensordetectors may quicken up clearanceeven futher. HALO is under some political pressureto introduce demining assetsthrough Puntlandor down to Mogadishu,but security conditions still do not allow the running of any projectsthat we thought would be a wothwhile useof donor funds.

Abkhazia

For muchofthe summerand Autumn of2009 the HALO teamscleared the 30 minefieldsidentified du ng the2008 survey in the Upper Kodori valley, with enough progress(due to lack of seasonalsnow) to suggesttheir clearance mayjust be completedduring 2010. A few small and lower priority tasksremain on lower ground,but are being kept back in caseUpper Kodori teamsare hamperedby poor weatherat higher altitudes. TheHALO Trust (acompany limitcd by guarantee) Conrpanynumber 2228587 Annualrepon and financial statemcnts 31March 2010

Trusteest annual report (continued)

Achievements and per for mance (conli nued)

Georyia

With the cessationof hostilitiesbetween Georgia and Russiain mid-August2008, HALO was askedby the Tbilisi Governmentand the intemationaldonor communityto surveyand conductemergency clearance of any mlnes, unexplodedordnance and clusterbombs in the affectedvillages north of Gori. HALO establishedinitial survey teams,and then 24 clearanceteams that deployedas the Russianarmy movednorth away from the conflictzone. HALO alsoestablished an informationdata base and service that was used by all the supportreliefagencies. By the end of 2009 all clearancehad beencompleted, with a forecasttimeframe of final clearancerequirements over the early Summermonths of2009. In early2010 HALO had re-locatedmechanical and manualclearance teams to minedareas around a numberoffomter Sovietbases.

Nagorno Karabaklr

The programme continued with a slightly reduced number of staff down to around 200 staff - deployed with manualand mechanicalminecleamnce teams, and alsobattle area clearance (BAC) teams. Fundingremains hard to find, which sadly meansHALO will probably be working in Karabakh for anotherthree or so years, rather than expandingin sizeand hence being able to significantlyreduce the yeals that mines still impacton communities-The "losers"are ofcourse the localpopulation, who will be at risk ofdeathand injury for longer,and be unableto safely ploughtheir land. However,the existingfunds were utilisedto the bestof our abilities,we managedto increase manual clearancefrom 460 hectaresto 600 hectaresand Battle Area Clearanceof clusterbombs from 2.000 hectares to over4.000 over lhe lasrtr,t o years.

Kosovo

During 2009/10HALO workedevery month, had teamsdeployed on a numberof differentsites, and although or despitethe siteshaving beenpartially clearedby other agencieseight yearspreviously, the HALO teamsstill cleared over 100mjnes and cluster bombs - which was lessthan the previousyear. However, none ofthese hazardous items were in "remote" forests- but were all in high priority village areas. Furthermore"the UN changedtheir policy and also stated to use a similar figure to HALO's for outstandingtasks in Kosovo. HALO's programmewas supported financiallyby key privatefoundations, though was joined by the SwissCovernment as pan of a globalcommrtment to deslro)clusrer bombs and landmines.

Sri Lanka

In the fi$t three months of 2009 the Sri Lankan army made very considerableadvances against the LTTE and capturedthe whole of the Vanni region, forcing the LTTE into a small slither of land of perhapsfour squaremiles nearMullitaivu. As the LTTE withdrew,they took with themmuch ofthe civilianpopulation. The battlefielddefeat of the LTTE then resultedin a surgeof IDPSacross the nofih ofthe country and a need for the governmentto decide where safeto let them settle.HALO was taskedto make safethe mined ground as fast as possible.During 2009 and early 2010 HALO recruitedand trained additional deminers(taking the number ofstaffto 600) and imporled extra mechanicalclearance systems. By the end of March 2010 HALO was having to design new work plans and further expansionof leams, as yet more IDPS retumedto the Vanni and Jaffna -moving aheadof the mainstream developmentagencies.

Colombit

In 2008/09Colombia had the highestnumber of minescasualties anywhere in the world, and aisohas 2-4 million IDPs waiting to leave the cities and retum to the rural areas.In June 2009 the Colombian Government formally invited HALO to start a large mineclearanceprogramme "as soon as possible",as a trial run aheadof inviting orner agenciesto start work. HALO registeredas an NGO in Colombia and then signed an MOU for surveying. This enabledHALO to carefullyassess the minesproblem through numerous villages in Montesde Maria and Eastern Antioquia. Actual stafi of clearancewas delayed,pending the correct legal PresidentialDecree, likely to be signed straight after the June 2010 elections. HALO is committed to providing Colombia with as many teams as it can, recognisingthat Colombia has to expandits capacityfrom some9 governmentclearance teams to over 100teams, if it is to havea chanceofclearinq mines ahead of IDP resettlement. Thc fIALO Trust (a companylimited by guarantee) Companynumber 2228587 Annual reportand linancialstatemeDts 3 I lvlarch2010

Trustees' annual report (continued)

Financial review The financialstatements of the charitycan be found on pages16 to 29. Thesefinancial statements have been preparedin accordancewith current statutoryrequirements and the charity's goveming document.

The appiicationofthe chadB/'sfunds are detailed in notestwo andfour on pages21 and22.

Overseasprogramme contracts with major donon l'requentlycover periods out of line with the UK financialyear. This is becauseall donors,be they govemments,or independentcharities based in the UK, Japan or The Netherlandsrequest HALO conductshumanitarian mineclearance for a givenperiod, normally six, l2 or l8 months. End datesfor theseprogrammes rarely fit into the financial year, which results in large amountsof committed funds being carried forward from one year to the next.

The strongresult for 2009/10is reflectedin incomeof !2lm and expenditureof f20.5m for the year. Allof our majordonors have continued to supportour work with 84 contractsrunning during the financialyear, approximately half of which continue to the new financial year. Full details or our work in each programme are given in the Achievementsand Performancesection above.

All HALO's supportfrom govemments,large donon etc hasbeen explained in the financial statements.

Funding and reserves Total unrestrictedfunds at 3l March 2010 weref.;7,476,000 compared with €6,560,000at 31 March 2009. The Trusteesconsider HALO's free reservesto be f4,122,000(2009: t3,233,000)reflecting the resourcesreadily available fbr charitable use: full details of HALO's reserves are shown in notes 14 and 15 of the financial statements.

The Trusteesconsider this level of reservesto be in line with HALO's strategy. This level of free reser.resallows HALO to respondquickly to emergencyhumanitarian situations, stafi mineclearancein new areaswhile the donor base is established,continue mineclearancein areaswhere there are gaps in donor funding allowing continuity of teams and continuation of humanitarianaid. and to meet non-donor funded closure costs once areasare declared mine liee. The increasein the level ofreservesheld will enablecontinued support of programmeswhere required.

Duringthe yearended 3l March2010, HALO's reservessupported start up costsin Colombiaand teams in Angola during the funding gap resulting from delaysin the new EC contract.

On a programmeby programmebasis (held as restrictedfunds) the Trusteesconfirm the charity has sufficient assets availableto enableit to meet its obligationsas they fall due.

The majority of HALO's funds are held in cash with the charity's bankers,The Royal Bank of Scotlandplc; minimal funds are held in eachprogramme.

Investments

The performanceofthe investmentsis continually monitored and reported on a quarterly basis. Performanceis measuredagainst the following indices:FTSE 100 and FTSE All-World (ExcludingUK). In additionto these measuresthe InvestmentManagers will provide regional benchmarksin order to compareregional returns.

The relative performanceagainst the benchmarksabove is provided below:

2009/r0 o/oChange

lnvestmentPofifolio 31.6 FTSEIOO 44.1 FTSEAll-World (ExUK) 44.4 FT Gilts5-15 Years -4.'l

l0 -fhe HALO'l rust (a colnpanyli$ited by guaraDtee) Companynumber 2228587 Annualreport and iinar"rxi:i"l'r1[

Trustees' annual report (continued)

Financial review (co nt in ued) InYestments(continued) Over the periodunder review, the portfolio gained329o in capitalterms. The FTSE 100and the FTSE All World (ex UK) equity indices gained 45%oand 449/orespectively, whereas the FTSE A Govemment 5-15 index (fixed income)fell by 5%. The assetallocation as at 3l March2010 was 34% exposedto fixed income;5% to property; 3oloto absolutereturn assets, 20lo to cashand 58% to equities.The UK equityexposure in isolationgained 48% and the UK fixed incomegained l5%. Both ofthese major areastherefore outperformed their indices.

The Trusteeshave reviewed the investmentpolicy during the year and have agreedthat the level of risk and retum setout in the currentpolicy continuesto be appropriate.Should further funds be availablethen the Trusteesmay seekto augmentinvestments where appropriate.

Plans for future periods

Lookingahead, FIALO will continueto maintainour standardsand strive for moreefficient and effective operations. In line with our charitableobjectives and to ensuremaxjmum public benefitfrom our activities,the major projects that HALO will undertakein the immediatefuture will continueto aim at casualtyreduction, and have added emphasison enablinggreater levels offood productionfrom mine-impactedcommunities:

. Continuemineclearance across the southand centreof Mozambique,so that the poorestvillages can be lifted out ofextreme poverty and startclearance on the Mozambique/Zimbabweborder minefields; . Continuemine and clusterbombclearance in Kosovo so that the rural communitiescan develop through forestry, agricultureor indeedincome generatingtourism; . Continueto expandclearance operations in Afghanistan,particularly in and around those villageswhere agriculturaldevelopment is most hamperedby landmines; . ContinueWAD operationsin Angolato assistnational disarmament, and when EC fundingfinally materialises then expand mineclearanceto allow greater agricultural activity in the farmland and also better marketing of goods on the road network which is curently mined; o Sustain and preferably expand or quicken mineclearancein Cambodia to reduce casualtiesand allow food productionto increase andcomplete the secondphase ofthe baselinesurvey ofNW Cambodia; . Endeavourto expandclearance in Sri Lankain responseto the movementoftens ofthousands of IDPs; r Endeavour to continue clearancein Nagorno Karabakh's mineclearanceand clusterbombcleamnce - so that larger areascan be ploughedand cultivated,though funding looks tighter than ever; . Deploy new Dual Sensordetectors to quickenup mineclearancein Somalilandand Angola where minimal metalanti-tank mines impact on communities,and detector deployment was delayed in2009ll0; . R€view the need for clearancein Ethiopia, pafiicularly thoseminefields straddlingthe Somalilandborder; . Continueto clearthe Georgiaminefields remaining around old Sovietbases that are now impactingon local communities,and endeavourto commenceclearance in SouthOssetia; . Completeclearance in the UpperKodori Valley ofAbkhazia; . Start full clearanceoperations in Colombia following the invitation from the govemment in Bogota; . Ensurethat the threat imposedby landmineson so many impoverishedvillages around the world is still known to the public and govemmentsin the more wealthy countri€s who may be able to contribute to humanitarian mineclearance. . Aim to have a similar or greater number of trained and equipped deminers employed at the year end March 2011 as at October 2008 when the global credit crunch crunched- proving that HALO can ride out a global economicrecession and continueto assistthe most impoverishedcommunities.

ll TheIIALO Trust (a companylimited by guarante€) Compay nunber 2228587 Amual reporta[d fllancial statenents 3l March2010 Trusteesoannual report (continued)

Auditon

Pursuantto Section487 ofthe CompaniesAct 2006, the auditorswill be deemedto be reappointedand KPMG LLP will thereforecontinue in office.

The report was approvedby the Trusteesand signedon their behalfby: fr\ e&ilil,\ / ) \rLr

A Grinling Trustee Chief Executhte

125Borough High Steet London SEI lNP

29 June2010 TheIIALO Trust (a companylimited by guaranteo) Companynumber 2228587 Annualreport and financi"r*:i%1t

Statementof Trust€es' responsibilitiesin respect of the TrusteesoAnnual Report and the financial statements

The trusteesare responsiblefor preparingthe Trustees'Annual Report and the financial statementsin accordance with applicablelaw and regulations. Company law requiresthe trusteesto preparefinancial statementsfor each financial year. Under that law they are required to prepaxethe financial statementsin accordancewith UK Accounting Standardsand applicable law (UK GenerallyAccepted Accounting Practice).

Under company law the trusteesmust not approvethe financial statementsunless they are satisfiedthat they give a true and fair view ofthe stateofaffairs ofthe charitablecompany and ofthe excessof income over expenditurefor that period. In preparingthese financial statements,the trusteesare requiredto:

. selectsuitable accounting policies and then apply them consistentl), . makejudgementsand estimatesthat are reasonableand prudent; . state whether applicable UK Accounting Standardshave been followed, subject to any material departures disclosedand explainedin the financial statements;and . prepare t}Ie financial statementson the going concern basis unless it is inappropriateto presume that the charitablecompany will continue its activities.

The trusteesare responsiblefor keeping adequateaccounting records that are sufficient to show and explain the charitablecompany's transactions and disclose with reasonableaccumcy at any time the financial position of the charitablecompany and enablethem to ensurethat the financial statementscomply with the CompaniesAct 2006. They have generalresponsibility for taking such stepsas are reasonablyopen to them to safeguardthe assetsofthe charitablecompany and to preventand detectftaud and other irregularities.

The trusteesare responsiblefor the maintenanceand integdty ofthe corporateand financial information included on the charitablecompany's website. Legislation in the UK goveming the preparationand disseminationof financial statementsmay differ from legislationin otherj urisdictions.

1l KPMGLLP

191West GeorgeStreet Glasgow G2 2LJ UnltedKingdom

IndependentAuditors' Report to the trusteesand membersof The HALO Trust

We haveaud ited the flnancialstatements of The HALO 1'rustfor the yearended 3 I March20 I 0 setout on pagesl6 to 29. Theseflnancial statements have been prepared under the accounting policies set out therein. This reportis madesolely to the charitablecompany's members, as a body,in accordancewith sections495 and496 of the CompaniesAct 2006, and to the charity'strustees, as a body, in accordancewith section44 (l)(c) ofthe Charitiesand TrusteeInvestment (Scotland) Act 2005 and regulation10 of the CharitiesAccounts (Scotland) Regulations2006. Our audit work has beenundertaken so that we might stateto the membemand the charity's trusteesthose matterswe are required to stateto them in an auditor'sreporl and for no other purpose.To the fullest extentpermitted by law, we do not acceptor assumeresponsibility to anyoneother than the charity,its membersas a body and its trusteesas a body, for our audit work, for this report or for the opinionswe have formed. Respectiveresponsibilities of trusteesand auditors The trustees'(who are also the directon of the company for the purposesof company law) responsibilitiesfor 'l'Iustees' preparing the Annual Report and the financial statementsin accordancewith applicable law and UK AccountingStandards (UK CenerallyAccepted Accounting Practice) and for being satisfiedthat the financial statemenlsgive a trueand fair view areset out in the StatementofTrustees Responsibilities on page13. We have been appointedas auditors under section44 ( l)(c) of the Charitiesand Trusteelnvestment (Scotland)Act 2005 and underthe CompaniesAct 2006 andreport to you in accordancewith thoseActs. Our responsibilityis to audit the financial statementsin accordancewith relevant Iegal and regulatory requirements and lntemational Standardson Auditing(UK and Ireland).

We report to you our opinion as to whether the financial statementsgive a true and fair view, have been properly preparedin accordancewith UK Generally Accepted Accounting Pmctice and have been preparedin accordance with the CompaniesAct 2006, the Charitiesand TrusteeInvestment (ScotJand) Act 2005 and regulation8 of the CharitiesAccounts (Scotland) Regulations 2006. We also reportto you whetherin our opinion the information givenin the Trustees'AnnuaiRepod is consistentwith the financialstatements. In additionwe repon to you if, in our opinion,the charitablecompany has not keptadequate and proper accounting records,if the charitablecompany's statement of accountare not in agreementwith theseaccounting records, if we havenot receivedall the infonnationand explanationswe requirefor our audit,or if certaindisclosures of trustees' remunerationspecified by law are not made. We read the Trustees'Annual Report and consider the implications for our report if we become aware of any apparentmisstatements within it. Basisof audit opinion We conductedour audit in accordancewith InternatjonalStandards on Auditing (UK and lreland)issued by the Auditing PracticesBoard. An audit includes examination,on a test basis,of evidencerelevant to the amountsand disclosuresin the financial statements.It also includes an assessmentofthe significant estimatesand judgments made by the trustees in the prcparation of the financial statements,and of whether the accounting policies are appropriateto the charitablecompany's circumstances, consistently applied and adequatelydisclosed. We planned and performed our audit so as to obtain all the information and explanationswhich we considered necessaryin order to provide us with sufficient evidenceto give reasonableassurance that the financial statements are free from material misstatement,whether causedby fraud or other irregularity or error. ln forming our opinion we also evaluatedthe overall adequacyofthe presentationof information in the financial statements.

t4 IndependentAuditorsn Report to the trusteesand membersof The HALO Trust (continued)

Opinion In our opinion: . tlle financial statementsgive a true and fair view of the stateofthe charitablecompany's affairs as at 3l Maxch 2010 and of its incoming resourcesand applicationof resources,including its income and expendifi[e, for tlle yearthen ended; . the fnancial statementshave been properly preparedin accordancewtth UK GenerallyAcceptedAccounting Practice; . the firnancialsatements have been preparedin accordancewith the CompaniesAct 2006, the Charities and TrusteeInvestrnent (Scotland) Act 2005 andregulation 8 ofthe CharitiesAccounts (Scotland) Regulations 2006; and . the informationgiven in the Trustees'AnnualReport is consistentwith the fmancial statements. Xl,--\-\ ._..- 9f Watt (Senio9SttrfutoryAuditory for and on bfflf of KPMG LLP, StatutoryAuditor CharteredAccountants KPMG LLP is eligible to act as an auditor in termsofsection 1212ofthe CompaniesAct 2006 13Julv 2010

IJ TheHALO Trust (a companylimited by guarantee) Companylumb€r 222858? Aryual reportand fnancial statem€nts 3l Mareh2010

Statement of financial activities (including an income and expenditureaccount) lor the year ended31 March 2010

Utlrestricted Restricted 20t0 2009 funds funds Total Total Incomingresources f000 f000 t000 t000 Incoming rcsourcesfrom generdedfunds Voluntary income 121 20,655 20,782 23,090 Investnent income 147 l5 162 343 Other incomingresources 133 133

Total incomingrcsourcas 407 20,670 21977 .23,433

Resourcesoxpended Cost of gen€ratingflrnds: inv€stment maragemencosls 7 78 Charitableactivities 773 19,569 20342 22,966 Govemancecosts )< 25 29

Total resourcesexpended 80s 19569 20374 23,003

Net incomingresources before transfers (3e8) 1,101 103 430 Grcsstransfers betweetr funds 1,050 (1,0s0)

Net incomingresources before other racognisedgsins and losses 652 5l 703 430

Other recognisedgains and lossos Gainv(losses)on investmentassets 264 (304)

Net movementsin funds 916 5t 126

Reconciliationof funds Balancebrought forward at I April 2009 6,560 45 6,60s 6,4'19

Balancecaried forward at 3l March 2010 7,476 96 ', <1'' 6,605

All ofthe charity's activities are continuing.

16 TheHALO Trust (a aoulparylimited by guarmice) Conpany!un$€r 2228587 Annualrcport and financial statem€nts 3l March2010 Balancesheet il March 2010

Note 2010 20w

s)00 r000 t000 t000

Fixed sssets Tangibloassets 9 1m 186 Invesfnents 10 1,08s 788

r27s 974 Current assets Stock 591 801 Debtors 11 3,055 2,673 Cashat bank 5,450 7,466

9,096 10,940 Creditors: amountsfalling due within one year t2 (2,s60) (4,94s)

Net currcnt assetN 6,536 5,995

Total assetsless currcDt liabilities 7,811 6,969

Provisionsfor liabilities 13 (23e) (364)

N€t assets ,f 41, 6,605

Futrds Unrestictedfunds General 724 6,560 Rcvalualionreservo 234

7,{t6 6,560 Reshictodfirnds t4 96 45

Total funds 15 7,512 6 605

The financial statementswere approvedby tle Board ofTrusteeson 29 June2010 andwere signedon its behalfby: +aU,1 A Grinling nustue

17 TheIIALO Trust (a companylimited by gmrantee) Companynumber 2228587 Anrual repodard financialstiatemqrts 3l March2010

Cash flow statement For the lear ended 31 March 2010 2010 2009 t000 t000

Net cash(outflowyinflow from operatit|gactivities 18.1 (2,W3) (3,6',15)

Returnson inyestmentsand servicingoffinance Interestreceived 162 806

Capital expenditureand financialinyestments Paymentsto acquirelangible fixed assets Proceedsfrom salosoftangible lxed assets Paymentsto acquireinvestments Proceedsfrom salesof investments

(8s) (4e)

(Decreaseyincreasein cash 18.2 (2,016) (2,918) Cashused to increaseliquid resowces Cashfrom liquid resources (rze) 1,825

Movementin cashin period (2,r45) (r,093)

Note l8 forms an integal part ofthis cash flow statement.

l8 The HALO Trust (a companylimited by guarantee) Companynumber 2228587 Annualreport and linancialstatements 3l March2010

Notes (forming parl of the financial stalements)

Accountingpolicies The followingaccounting policies have been applied consistently in dealingwith itemswhich areconsidered materialto the financialstatements.

Basisof prcparalion

The financialstatements have been prepared in accordancewith applicableaccounting standards and under the h;storicalcost accountingrules modified for the revaluationof certainfixed assetsand in accordancewith the CharitiesAct 1993,the CompaniesAct 2006 and the Statementof RecommendedPractice: Accounting and Reporting by Charities issued in February2006, except for the non-recognitionof donated assets(see donationsand gifts below). Accordingly, the arangementsand headingshave been adaptedas provided for in The Largeand Medium-sized Companies and Groups (Accounts and Reports)Regulations 2008, Schedule I, Parll.

After making enquiries,the Trusteeshave a reasonableexpectation that the charitablecompany has adequate resourcesto continuein operationalexistence for the foreseeablefuture. Accordingly, they continueto adopt the going concem basisin preparingthe annualreport and financial statements. Funds

Fundsare classifiedas either restrictedfunds or unrestrictedfunds, definedas follows:

Restrictedfunds are fundssubject to specificconditions, which may be declaredby the donorsor with their authorityor createdthrough legal processes, but still within the wider objectsofthe chadty.

Unrestrictedfunds are expendableat the discretionofthe Trusteesin furtheranceofthe objectsofthe charity If part of the unrestrictedfunds are earmarkedat the discretion of the trusteesfor a particular purpose,they are designatedas a separatefund. This designationhas an administrativepurpose only and does not legally restrict the Trustees' discretion to apply the fund. The revaluation reserve,representing the net unrealised gainson investmentsis shown as a separatecomponent of unrestrictedfunds.

Where contractsaccounted for within restricted funds include contributionstowards headquart€rscosts, an appropriatetransfer is made of these contributions between restrjcted and unrestrictedfunds. Transfers betweenunrestricted and designatedfunds are consideredand implementedwhen required.

Voluntary income - grsnls from internationd au rorilies Incomefrom the United Nationsand variousnational govemments is recognisedas voluntaryincome irr restricted funds when receivable. The proportion recognisedas incoming resourcesat the year end is equivalentto the field projectexpenditure at that date as it is consideredthat this is when the funding conditionshave beenmet; income not yet receivedis included in accruedincome and where income received is in excessof incomerecognised this is includedin deferredincome.

Voluntur! income - donslions and gifls

All donationsand gifts are included within incoming resourcesunder either restrictedfunds or unrestricted funds accordingto the terms under which the donationor gift is made.

Donationsand gifts in kind are brought into the financial statementsat their market value to the charity.

Donatedassets used in overseasprojects are not recognisedas incoming resourcesby the chariry, principally due to the difficulty in ascertainingan appropriatevalue for those assets. Had the assetsbeen recognised, they would also be included in resourcesexpended on overseasprojects.

t9 The LIALO IT!Ni (a conpany lin;ted by guaranlee) Companynumber 2228587 Annual reportand linancialstatemcnts 31 March2010

Notes (continued) I Accounting policies (continued)

Resources erpended All monies and assetstransferred to countries in which the charity is engagedin charitable projects are chargeddirectly to field projectexpenditure and includedunder charitable activities. Where this expenditure is funded by donors it is restrictedexpenditure as all donor contractsare included within restricted funds; otherfield projectexpenditure is includedin unrestrictedfunds.

Costsof managingand administeringthe charityinclude all administrationcosts ofthe charityincluding the costsofthe headoffice in the UK and aretreated as unrestrictedexpenditure. A propoftionofthese costs, basedon the ratioof the total incomeof The HALO Trustand The HALO Trust(USA), lnc. is rechargedto The HALO Trust(USA) Inc. Thosecosts which meetthe definitionofCovernance costs are includedin that category; all other managementand administration costs are included in support costs under charitable expenditure.

Assetsacquired for specificprojects are charged to that projectin line with the termsofthe project. These assetswill normallybe fully utilisedwithin the periodofthe project(normally six to I2 months).At the end of a specifrcproject any such assetsmay be transferredto other projectswith the consentof the donor or may be reclaimedby the projectdonor. The charityretains a full list ofall suchassets.

Tangible fLted assets Tangible fixed assets,with a value greaterthan t1,000, having a value to the businessgreater than one year, otherthan those acquired for the purposeofspecific projects, are capitalised.

Depreciationis provided using the following ratesand basesto write olf the cost or initial values,less residualvalues, oftangible assets over their estimated useful lives

Freeholdbuildings l5 years Leaseholdproperties 207ostraight line or overthe periodofthe leaseifshorter Fixturesand fittings and office equipment 25% straightIine Motor vehicles 25%oreducing balance

SIock

Stock representsitems purchasedby the charity for use in overseasprojects where at the time ofpurchase the individualproject has not beenidentified.

All stock is held at lower of costand net realisablevalue; where stock is held outwiththe UK provisionis madeuntil the item is chargedto an individual project.

Foreign exchange

Monetary assetsand liabilities denominatedin foreign currencjesare re-translatedmonthly into sterling at the ratesofexchange prevailing at the start ofeach month. Tmnsactionsin foreign currenciesare recordedat the date of the transactionsand translatedto sterling at the monthly rate. At the year end, monetary assetsand liabilities are translatedto the actualrate on the last day ofthe year.

The net exchangegain or loss for the year is includedin the statementof financialactivities as either incoming resourcesor resourcesexpended. Where gains or lossesarise from early receipt ofdonor funding theseare included within voluntary income; net gains or losseson currency transactionsis included within resourcesexpended on charitableactivities.

Postret i r eme nt b en elils

The company contributesto personal pension plans on behalf of certain employeesof the ch ity. The amount chargedin resourcesexpended represents the contributions payableto those plans in respectofthe accountingyear.

Pensionpayments are madeto a lormer trusteeofthe charib/. A provision has beensetaside for the payment of this pension basedon the estimatedlife of the individual basedon the latestmortality tables; adjustments are made to the provision on an annualbasis for changesin mortality tablesand for paymentsmade.

20 TheHALO Trust (acompany limited by guarantee) Companynumber 2228587 Annualreport and financial statements 31March 2010

Notes (continued) I Accounting policies (continued)

Inveslmenls

Fixed asset investmentsare stated at market value. Unrealised gains and lossesrepresent the difference betweenthe market value at the beginning and the end of the financial year, or if purchasedin the year the differencebetween cost and market value at the end ofthe financial year. Realisedgains and lossesrepresent the difference betweenthe proceedsand the market value at the start of the year or cost if purchasedin the year.

Cash and liquid resoarces

Cash,for the purposesofthe cashflow stat€ment,comprises cash in hand and depositsrepayable on demand, less overdrafts payable on demand. Liquid resourcesare current asset investmentswhich are disposable without curtailing or disrupting the businessand are either convertible into known amounts of cash at or closeto their carrying values. Liquid resourcescompdse term depositsof lessthan one year. Toxation

The HALO Trust is recognisedby HM Revenueand Customsas a charity for the purposesof section505 of the Income and Corporation Taxes Act 1988 and is therefore not subject to taxation on its chaxitable activities. The charity is able to reclaim all UK input VAT.

2 Charitableactiyities

The chariry's Trustees consider that there is only one activity (clearance of landmines and other small ordnance)which is carried out in various worldwide locations,although HALO will (with Donor authority) lend its resourcesto assistwith other emergencywork including opening up trade routesthrough crucial road clearanceand snow clearanceand assistingwith emergencyresettlement ofIDPs.

Supportcosts Activitiesundertaken directly (note4) Total (restricted) (unrestricted) (unrestricted) r000 J000

Afghanistan 8,869 (5) 251 9, 5 Angola |,593 17 46 1,656 Cambodia 2,268 9 64 2,341 Colombia t21 3 124 Georgia 497 2 t4 s13 Kosovo 430 ll t2 453 Mozarnbique 1,380 7 41 1,424 NagornoKarabakh 597 17 t'7 631 Somaliland 1,'183 (l) 5l 1,833 Sri Lanka 1,032 I 29 1,062 Weaponsand Anmunition Destruction (WAD) |,t20 1,152 Other 33 I 34

Total 19,569 212 561 20,342

All costswhich canbe directlyattributed to confactshave been allocated and are shown in restrictedfunds. otherfield projecl expenditureis shownin unrestrictedfunds. Supportcosts which principallyrelate to headquarterscosts cannot be allocatedto contractson a globalbasis due to specificcontract terms and are allocatedon thebasis ofactivity in eachcountry.

21 TheHALO Trust (a companylimited by guarant€e) Companynumber 2228587 Arnual reportand fnancial staiemelts 3l March2010

Noles bontimted)

Interestreceivable and similar income 2010 2009 s000 f000

Bank intercstrcceivable 48 264 Forcign exchangegains 91 66 Investmentincome t7

162 343

Includedwithin the f,48,000of interestreceivable and sirnilar incomeis f,l5,000 relatingto restrictedfimds (2008:t31,000).

Supportcosts 2010 2009 f000 f000

Supportstaf f romun€ration 48t 424 Pensionto former trustee l8l Adjustnents rclating to pensionobligations 3l Vehiclo and equipmentcosts 47 Communicationcosts l6 hoperty costs 44 49 TBvol costs t2 l9 Other supportcosts 6l 35 Ove$eassupport costs t6 Deprcciation 48 62 Rochargeto The IIALO Trust (USA) Inc (note 17) (200) (r66)

s6r 659

All supportcosts relate to charitableactivities.

Governancecosts 2010 2009 f,000 f,o00

Legal fees 3 Audit fee - extemalaudit 24 23 Board expenses I 3

25

22 TheHALO Trust (a companylimited by guarantee) Companynwnber 2228587 Annualreport and fnancial statem€nts 3l March2010

Notes (continued)

6 Trusteesand employees 2010 2009 c000 1000 Stalr costs Wages andsalaries r0p20 n,092 Sooialsecurity costs 128 126 Othercosts and pension costs 30 231

11,078 11,449 Rechargedto TheHALO Trust (USA) lnc (noteI 7) (474) (269)

10,604 I I,180

The figures include wagesand salary costsof local deminersand support staff incurred in the cormtriesin whichHALO undertakesprojects. During the year ended 3l March2010, approximately 4,850 (2009:5,414) local deminersand supportstaffwere employedby The HALO Trust.

Includerlwitlrin thesecosts is tNil f2009: f.I81,000) relatingto the pensionarrangements ofa former tustee. The averagemonthly number of persons(full-time equivalent) employedby The IIALO Trust during the year, excludinglocal deminersand supportsAfi is shownbelow. 2010 2009 Number Number

Dircctors Adminishation 6 5 Direct proj€ct personnel 30 34

No tustees received any remuneration in either the current or previous year. Expensesof f,1,000 (2009:t3,000)were paid to tlree (2009:t /e€) tustees for travel and accommodation. The numberof employeeswhose emoluments amounted to over 060,000in the year wasas follows:

2010 2009 Number Number

f160,001- fI70,000 I f 150,001- fl60,000 I t9q00l - t100,000 i I f80,001- f90,000 1 2 t7q00l - t80,000 3 t60,001- t70,000 I

The charity contributedf30,000 (2009: t27,000) to personalpension schemes on behalfof six (2009: six) emolovees. TheIIALO Trust (a companylimited by guarantee) Companynumber 2228587 Auual reportand fnancial st&tem€rts 3l March2010

Notes kontinued)

Net incoming resources Net incoming resources are stated after chaxging: 2010 2009 s,000 t000

Deprcciationand other amountswritten offtangible fixed assets 48 62 Auditors'rcmunerction Audit ofthesc financial statements 24 Amountsreceivable by the auditon andtheir associatesin respectof: Taxation ta All other services 30 4;

Transfer between funds Unrestricted Restricted Total c000 c000 f,000

Headquarterscosts 1,402 (r,402) Expendituresupport (352) 352

1,050 (1,050)

A transfer of f1,402,000 (2009: t2,039,000) was made from restricted to umestricted fimds for contributionsfiom donorsto the headquarterscosts of the Trust. Thesecontributions are specifiedin each of the contracts undertaken,at percentagesbetween 3olo and 7o/oof the total contract value. The contdbution is chargedas direct project expenditureto restrictedfirnds, then tansferred to umestricted funds in the statementof fmancial activities. The fansfer also includes foreign exchangetanslation differenceswhere contacts are completeand reported to donorsin currenciesother than sterling.

A transfer of t352,000 (2009: f387,000)was made from unrestrictedfunds to restrictedfimds to support expenditurewithin the year.

24 TheHALO Trust (acompany limited by guarantee) Companynumber 2228587 Annualreport and fnancial stat€ments 31March 2010

Notes (continued)

9 Tangible fixed assets Leasehold Freehold Fixtures,fittings Motor property property & officeequipment vehicles Total c000 t000 f000 f000 f.000 Cost At beginningofyear t,: 142 188 4'tI Additions : l0 6l 7l Disposals (6e) (50) (l te)

At endof year t36 6-' 199

Depreciation At beginningof year 109 9'l 285 Chargefor year 9 2l l8 48 Disposals (6e) (31) (100)

At endofyear 83 6l 233

Net book value At 3l March2010 53 l15 190

At 3l March2009 33 9l 186

All ofthe aboveassets are usedin the administrationofthe charity.

10 InYestments t000

Marketvalue at 31 March2009 788 Additionsat cost 331 Disposalsat marketvalue (268) Gainon r€valuation 234

Marketvalue at 3l Mafch2010 1,085

All ofthe investmentsare held on the UK stock exchanges.

The following investmentscomprise more than 5% ofthe portfolio: t000

ThomhillCapital Inc 89 UBSUS EquityFund Class B Acc 83 InvescoPerpetual Corporate Bond M&6 StategicCorporate Bond Sterling Class A Income '12 CazenoveUK CorporateBond Dist butionRetail 68 StandardLif€ UK EquityHigh IncomeInstitutional lncome 59 FindlayPark American Smaller Companies Sterling Class 55

25 The HALO Trust (acompany limited by guarantee) Companynumber 2228587 Annualreport and financial statements 3l March2010

Notes (continued)

1l Debtors 2010 2009 r000 f000

Amountsowed by theHALO Trust(USA) lnc tt2 OtherdebtoN tt7 18 Prepayments 115 203 Accruedincome 2,492 2,340

J,U55 2,673

12 Creditors: amounts falling due within one year 2010 2009 c000 r000

Tradecreditors 173 Taxationard socialsecurity 93 102 Oth€rcreditors l5 3 Accruals 213 280 Deferedincome 2,166 4,387

2,560 4,945

Deferredincome t000

At 31 March2009 4,387 Releasedduring the year (4,354) Arisingduring the year 2,133

At 31Maxch 2010 2,166

13 Provision for liabilities and charges Overseas Pension severance obligations liabilities Total t000 c000 9000

At 3l March2009 164 200 364

Utilisedin theyear (t'7) (211) (228) Providedin theyear 3l 9'1 r28 Foreignexchange adjustment (25) (25)

At 31 March2010 t7a 61 tlo

Pensionobligations relate to the pensionarrangements for a fonner trustee.

Overseasseyeraace liabilities relatc to provisions for seyeranceto omployeeswhen they leaye HALO in Somaliland.

26 TheIIALO Trust (a companylimited by gu.radee) Companynumber 2228587 Amual rcport alld financialstatements 3l March2010

Notes kontinued)

14 Restrict€dfunds Balanceat Transfers Balanco at 31 3l March2009 lncome Expenditure" betweenfunds March 2010 t000 f000 t000 t000 c000

Afghanistan 9,371 (9,5',74) 203 Angola 1,656 (1,687) 3l Cambodia 2,460 (2,443) (t7) Georgia 530 (s23) (7) Kosovo 459 (461) 2 Mozambique 1 444 (r,4s2) (e2) Nagomo Karabakh 623 (63e) l6 Somaliland 1,879 (t,937) 58 Sri Lanka 45 991 (l,083) 62 WAD I,157 (r,r72) l5 Residualcosts * 8l 8l

45 20,6'70 (20,97r) 96

: Thesefunds represontcosts, including redundancypaymonts, which have beenfunded but are not payablewithin the conhactperiod. Thisincludes the headquaxters costs transfer off,1,402,000 described in note8.

15 Unrestrictedfunds

Other Transfer Balanceat recognised fiom Balance at 3l March gainsand rcstricted 3l March 2009 Income Expenditure losses funds(note 8) 2010 f000 t000 f,000 t000 t000 c000 Designatedfands Angola 39 (3e) Colombia ll (l l) Kosovo l0 (4)

60 (54] 6 R€valuationreserve 234 234 Otherunrestricted funds 347 (751) 30 1,05; 7.236

6,560 40't (805) 1,050 7476

27 TheIIALO Trust (a companylimited by guamntee) Companynumber 2228587 Annualreport and financial statements 3l March2010

Notes (continued)

16 Analysis ofnet assetsbetwe€n funds Othercurent assetsless Provisions Acqued Defened liabilities for Fixed income income duewithin liabilities assets assets (liabilities) oneyear andcharges Total t000 t000 t000 r000 f000 f,o00 Restfictedfunds Afghanistan 634 (e30) 296 Angola 1,076 (5e) (1,017) Cambodia 217 (l6e) (48) Mozambique 6r (33) (28) Georgia 88 (276) 188 Kosovo (63) 63 Nagomo Kambakh Somaliland 84 (247) t63 Sd Lanka (38e) 404 WAD 332 (332) Residualcosts 8l

2,492 (2,r66) (230) 96 Unreslrictedfunds |,275 6,440 (239) 7,476

Total 1,275 2,492 (2,166\ 6,210 (239')

l7 Relatedparty transactions:transactions with The HALO Trust (USA),Inc. Trarsactions Outstandingat m year year end f000 f000

Costsr€charged (note 4) 200 239 Salarycosts recharged (note 6) 474 65 Otherexp€nses paid on behalfolTheIIALO Trust(USA), lnc. 1,418 (33)

2,092 271

28 Th€HALO Trust (a companylimited by guarantee) Companynumber 2228587 Annualreport and fmllcial statements 3l March2010

Notes kontinued)

18 Notesto th€ cashflow stat€ment

18.1 Reconciliationof operatingdeficit to net cashmovernent from operatingactivities 20to 2009 s000 f000

Net incomingresources before other recognisedgains and losses 703 430 lnterestreceivable (162) (806) Depreciatior chaqes 48 62 Decreasein stock 210 (Increase)in debtors (382) (287) (Decrease)in creditorsdue within one year (2J85) (3,s1l) (Decreaseyincreasein provisionsfor liabilities andcharges (12s) 364

Net cashoudlow from operatingactivilias (2,093) (3,675)

18.2 Reconciliation of net cashflcn, to movements in netfunds At I April At 3l March 2009 Cashflow 20lo f000 t000 c000

Cashat bank at in hand 4,602 (2,r45) 2,457 Liquid resources 2,h64 t29 2,93

Total 7,466 (2,016) 5,450

19 Contingentliabilities Under the terms of specific contractsentered into by the chaxity,certain assets purchased under contacts and cash balancesunspent may be refundableto donors. It is not consideredpractical to eslimatettre financial impact ofthis contingentliability.

20 Commitments Annual commitmentsunder non-cancellable opsrating leases are as follows:

2010 2009 Land and Landand Buildings buildings t000 t000 Operatingleases which expire: In more than five years

29

Appendix Pro forma US Dollar and Euro Accounts

The frnancialinformation presented within this appendixrepresents extracts from the financial statementspresented in US dollarsand Eurosand doesnot form part of the auditedfinancial statementsofthe company.

The following accountingpolicy hasbeen applied in the preparationofinformation in this appendix.

Monetaryassets and liabilities denominatedin currenciesother thanUS dollars/ Eurosare translaled into US dollars / Eurosat the ratesof exchangeprevailing at the balancesheet date. Incomeand expenditweitems axetanslated at the averagecxchange rates for the period. Exchangedifferences arising from the retranslationof openingreserves and for the differencebetween average and closing rates on the net result for the year are shownon the balancesheet as rehanslationdifferences in reserves. Pro forma US Dollar accounts Unaudited statementof financial activities (inclading an income and expenditure account) for the leat ended 31 March 2010

Un restricted Restricted 2010 2009 Funds funds Total Total Incomeand expenditure $000 $000 $000 $000 Incoming resources Vohmtary income 203 32,972 33,175 38,976 lnYestm€ntincome 235 24 t

Total incomingresources 650 32996 33,66

Rcsourcesexpended Cost of generatingfunds Investm€ntmanagement costs ll 1l l4 Charitableactivities r234 31339 32,473 38,766 Gov€mancecosts 40 40 49

Total resourcesexpended 1,28s 3r,239 32524 38,829

Net incoming(outgoing)resources before '726 transfers (63s) 1,757 1,122 Grosstransfers between funds 1,676 (r,676)

Net incoming/(outgoing)resources before otler recogrisedgains and losses 1,041 81 1,122 726

Othe! recognisedgainYlosses GainVlosseson investrnentassets 422 422 (513)

Net movementsin funds 1,63 81 1,544 213

Reconciliationof funds

Balancebrcught forward at beginningofyear 9,313 66 9379 12,924 Retranslationdifferences 492 (3) 489 (3,758)

Balancecaxried forwad at end ofyear 11268 144 lt,4l2 q ??q Pro forma US dollar accounts Unaudited balancesheet 31 March 2010

2010 2009 $000 $000 $000 $000

Fixed assets Targible assets 287 265 Inveshnents 1,634 I,l l9

\nr 1,384

Currgnt Nssets Stock 891 Debtors 4,603 ? ?s5 Cashat bank and in hand E,214 10,602

13t08 t5,534 Creditors: amountsfalling due within oneyear (3,8s8) (7,021)

Net current assets 9,8s0 8,513

Total assets tl,77l 9,897

Provisionsfor liabilities and charges (3s9) (5r8)

Net assets rrAr2 9,379

Funds Umestdcledfunds r091s 9,313 Revaluationreserve 353

rr268 9,313 Reshictednnds t44 66

Total funds 1rAr2 9,379 Pro forma Euro accounts Unaudited statementof financial activities (including an income and expenditure account) for the vear ended 31 Much 2010

Unrestricted Restricted 2010 2009 Funds funds Total Total Incomeand expenditure €000 €000 €000 €000 Incoming resources Voluntaryincome 143 23,476 27,616 Investmgntincome t66 l7 t83 4t0 Oth€rincoming resources 150 150

Totalincoming resources 459 23,3s0 23,809 28,026

Resourcesexpended Cost of generutingfunds Investmentmanagement costs 8 8 l0 Charitableactivities 873 22,105 22,978 27,46',1 Covemancecosts 28 28 35

Totalresources expended 22,105 23,014 27,512

Net incoming/(outgoing)resources before transfers (4s0) r24s 795 514 Grosstransfers between funds 1,187 (1,187)

Net incoming/(outgoing)resources before other recognisedgains and losses 737 58 195 514

Otherrecognised gains/losses Gains4-osseson investmentassets 298 298 (364)

Net movementsin lunds 1,035 58 1,093 150

Reconciliationof funds

Balancebrought forward 7,061 48 7,109 8,099 Retranslationdifferences 281 ) 283 (1,r40)

Balancecarlied forward 8,317 r08 8,485 7,109 Pro forma Euro accounts Unauditedbalance sheet 31 March 2010

2010 2009 €000 €000 €000 €000

Fixedassets Tangible assets 2r4 201 Investmonts 1,215 848

1,429 r,049

Current assets Stock 662 862 Debtors 3,423 2,876 Cashat bank and in hand 6,t06 8,036

l0,l9l |,774 Creditors:amounts falling due within one year (2,868) (5,322)

Net currert assets '1 arl 6,452

'7,501 Total assets 8,752

Provisionsfor liabilitiesand charges Q67) (392)

Net assets 8,485 7,109

Funds Unrestrictedfunds 8,115 7,061 Revaluationrcserve 262

8377 7,061 Restrictedfunds 108 48

Total funds 8,485 7,109