Trócaire, Maynooth, Trócaire, 50 King Street, Belfast, BT1 Co. Kildare, Ireland 6AD, Northern Ireland For the financial T: +353 (0)1 629 3333 T: +44 (0) 2890 808030 TRUSTEES’ REPORT year ended F: +353 (0)1 629 0661 F: +44 (0) 2890 808031 E: [email protected] E: [email protected] 28 February 2018 www.trocaire.org AND CONSOLIDATED FINANCIAL STATEMENTS
Villagers of Nyarugeti village in Rwanda with the crops they are growing in community gardens supported by Trócaire. (Photo: Alan Whelan / Trócaire) OUR VISION Trócaire envisages a just and peaceful world where people’s dignity is ensured and rights are respected; where basic needs are met and resources are shared equitably; where people have control over their own lives and those in power act for the common good. We believe in the dignity and inalienable human rights of each person, regardless of their culture, ethnicity, gender or religion. As we work to achieve our vision, we practice the following values, both within our programmes and our relationships: solidarity, perseverance, accountability, participation and courage.
To realise our vision, we work in partnership with local communities to deliver real change. Partnership means working HOW WE with individuals, communities and local organisations to help bring about the change they want to see in their lives. Fundamentally, partnership is about solidarity, respect and WORK empowerment. Our theory of change works at four different levels: • Empowering women and men to secure their basic rights • Mobilising communities and engaging leaders to build sustainable and resilient communities Annabel Butler (3), left, from • Strengthening civil society to challenge injustice Meath and Ruth Finneran (4) from Roscommon launching • Influencing those in power to create a fairer and more the Lenten Appeal. (Photo: Mark Stedman) sustainable world. 2 | Preface Trócaire Annual Report 2017/18 | 3 CONTENTS PAGE
SECTION 1: WHO WE ARE Chairman’s message 04 Executive Director’s message 06 Our work at a glance 08 Where we work 10
SECTION 2: WHAT WE DO Goals for a Just World Goal 1: Human rights & democratic space 14 Goal 2: Equitable access to and use of resources 17 Goal 3: Women’s empowerment 20 Goal 4: Protection of human dignity in humanitarian crises 23 Goal 5: People and leaders in Ireland acting for a just world 26
Goals for a Stronger Trócaire Goal 6: Innovation, learning and improvement 30 Goal 7: Effective partnerships 32 Goal 8: Increased scale and income 34 Goal 9: An accountable and effective organisation 36
SECTION 3: HOW WE’RE RUN Structure, governance and management 41 Financial review 57 Independent auditor’s report 63 Consolidated statement of financial activities 66 Consolidated balance sheet 67 Consolidated cash flow 68 Trust statement of financial activities 69 Trust balance sheet 70 Trust cash flow 71 Notes to the financial statements 72 Appendix 1: Charitable expenditure by country 99 Appendix 2: Top 50 grants to partners 100 Trustees and other information 102
Katherine Kalula, who helps to organise women’s empowerment workshops and trainings in Salima District, Malawi. (Photo: Bazar Productions/Trócaire) 4 | Chairman’s Message MERCY IN ACTION It is 45 years since the Bishops’ Conference of Ireland established an agency to tackle injustice overseas.
That agency was Trócaire and its In Ireland, the work Trócaire work is as relevant today as it carries out, particularly in was in 1973. schools, has helped to shape the views of Irish people over Performing the duties of Chair generations. Compassion, of Trócaire is an honour. I am understanding and support for immensely proud of what the people in the developing world agency achieves. Last year are integral parts of Irish culture. alone 2.8 million people living in We should be very proud poverty and exclusion received of this. I have no doubt that vital support and assistance Trócaire has played a significant from Trócaire. role in fostering this culture of Trócaire is the Irish for compassion. ‘compassion’ and that simple I am constantly impressed by message continues to guide the the dedication and courage of work it performs in over twenty Trócaire’s staff. The work they do countries throughout Africa, would not be possible without Asia, Latin America and the the support of the public, but Middle East. the public should know that their Pope Francis speaks of the donations are in good hands. In Ireland, the work need to never lose sight of As Chair, I work closely with our compassion, solidarity and Trócaire carries out, senior staff and also my mercy. He reminds us, “today colleagues on the Board and the particularly in schools, we cannot be satisfied with various sub-committees of the simply being aware of the has helped to shape the Board to ensure the organisation problems faced by many of our is being run appropriately and views of Irish people brothers and sisters”. We must effectively. I have every faith over generations. act on this knowledge to create that this is the case. Huge effort a world free from injustice and goes into ensuring transparency, suffering. accountability and impact.
The work Trócaire performs The stories told in this report are around the world is mercy in testament to the important work action. Parishes around the being done by Trócaire and to its country offer support for this impact. work on an ongoing basis. That support was increased last July when a national church William Crean collection raised €5m for Bishop of Cloyne Trócaire’s east Africa emergency Chair of the Board of Trócaire appeal. It was heartening to see Javier (12) pictured on the such a strong response from community football pitch that has been destroyed by flooding near San parishes to a dreadful situation. Pedro Sula, Honduras. Trócaire is working with local partners to help residents of this coastal community who are losing their home to rising sea levels. (Photo: Frank McGrath) 6 | Executive Director’s message Trócaire Annual Report 2017/18 | 7
areas to more integrated and We are also continuing to development. Irish Aid has long holistic programming. This deepen our engagement been regarded as a global leader A NEW PLAN FOR recognises that people face with communities in Ireland. in development and its support multiple and often intersecting Working with schools, parishes for Trócaire is vital. challenges. Our work must and other groups in Ireland NEW CHALLENGES respond by helping people is fundamental to Trócaire’s This October I will retire from to overcome these multiple work. That engagement builds Trócaire, having worked for The world is rapidly changing. Technology is changing how we interact, challenges. an understanding of global the organisation in a variety of justice throughout Ireland. It roles since 1991, including as both with each other and also with the wider world. Last year was the first full year of also generates the support Executive Director for the last implementation of the new plan that makes our work overseas five years. I want to pay tribute following significant realignment to Trócaire’s teams around Amid the positive benefits of 2017 was marked by a significant possible. of staff and programming to the the world whose dedication, these developments comes the growth in the numbers of people new priority programme areas. Last year was a year of commitment and courage helps dangers of misinformation and affected by the intersection of The financial year 2017/18 was incredible generosity from the to transform the lives of the the deliberate spreading of fear. drought and conflict. This was the first full year operating under Irish public. A total of €29.1m world’s most vulnerable people. This has profoundly impacted at its most alarming in South the new approach. was donated to our work. That Leading that team has been the structures which govern the Sudan and Somalia, where was underlined by donations of a great privilege. The person world. millions hovered close to famine. I am hugely encouraged by the €8.7m to our Lenten Appeal, an charged with leading Trócaire A national church collection progress we are making against Populism has led to an increase increase of €1.3m from 2016. over the coming years will inherit greatly bolstered Trócaire’s each goal area. Our programmes in xenophobia and a retreat from These donations are the lifeblood a strong and dynamic team that response to this crisis, helping overseas are delivering real and values of justice, compassion of our work. Much of this creates real change around the to keep people alive throughout tangible impact in the lives of and solidarity. Autocratic leaders support is driven by parishes. In world. Somalia, South Sudan, Kenya the poorest and most vulnerable. have become emboldened in particular, I want to pay tribute and Ethiopia. Last year, 2.8 million people’s their disregard for human rights. to clergy around the country lives were touched and improved The freedom and space for civil The reality of widespread who do so much to promote and by the support given to them society organisations to operate On a more positive note, an support Trócaire at parish level. displacement and conflict has by Trócaire. That is the core of is tightening in many countries. increased focus on gender grown significantly over the our work and, ultimately, it is I also want to acknowledge the This should be a concern for inequality, culminating in the course of 2017. The year saw the measure by which we judge strong support for our work everybody. Like a free press, a #MeToo movement, has created an unexpected growth in the ourselves. from Irish Aid, the Government’s free civil society is fundamental more discussion on structural Éamonn Meehan number of people forced by programme for overseas Executive Director to democracy. conflict or drought to move into inequalities facing women around the world. There is a Clear efforts are being made to other extremely fragile areas. We have seen people flee South renewed focus on tackling undermine the human rights cultural norms that have for mandate of the UN system. The Sudan and taking refuge in the Democratic Republic of Congo, a so long left women vulnerable incumbent High Commissioner to violence and abuse, while country itself wracked by conflict for Human Rights, Zeid Ra’ad Al also acting as a barrier to full and brutal violence. Hussein, has stated he will not economic, social and political be seeking a second term, citing The most worrying development participation. concern that his voice would has been the absence of be silenced in an age when the In 2016, Trócaire launched a protection for civilians trapped in United States and other world new strategic plan to guide our conflict zones. Syria and Yemen powers are retreating from their work through the new contexts are two pressing examples of historical commitment to human in which we find ourselves. conflicts where civilians are rights. The plan centred on the three being deliberately targeted – focus areas: Resource Rights, either through attack or forced US President Donald Trump has Women’s Empowerment starvation – by powerful states. also withdrawn US funding to and Humanitarian Response. International Humanitarian UNRWA, the UN agency set up Underpinning all of these areas Law forbids the targeting of to assist Palestinian refugees. is a belief that human rights civilians but this is being flouted This was ‘punishment’ for should be central to everything Palestinian rejection of the time and time again with no we do. reckless decision by the US repercussions. The UN Security Recently arrived Rohingya refugees shelter at a reception area in southern to recognise Jerusalem as the Council is hopelessly politicised It set out a clear ambition to Bangladesh. capital of Israel. and not fit for purpose. move from distinct thematic (Photo: Tommy Trenchard / Caritas) institutional OUR WORK funding grants 8% public AT A GLANCE donations In 2017/18 Trócaire’s work improved the lives of 2.8 million people Kumba, age 7, (left) and her sister in some of the poorest countries in the world. Fatu, Freetown, Sierra Leone. (Photo: Mark Stedman)
HUMAN RIGHTS €4.8m spent 526,400 people supported directly Overseas programmes institutional public RESOURCE RIGHTS funding grants 8% engagement €16.2m spent public fundraising 633,700 people supported directly donations WOMEN’S EMPOWERMENT €14.3m spent 161,000 people supported directly EXPENDITURE INCOME TOTAL EXPENDITURE: €71.1m HUMANITARIAN TOTAL INCOME: €75m Overseas programmes: €62.8m €26.8m spent Institutional funding and grants: €45.8m Fundraising: €5.7m 1,374,400 people supported directly Public Engagement: €2.6m Public donations:Overseas €29.1m programmes public engagement fundraising 10 | Where we work Trócaire Annual Report 2017/18 | 11
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13 14 22 23 20 12 16 17 24 19 18 09
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04 WHERE Impact figures throughout this report relate to direct beneficiaries of our work. They are 11 based on data collected in communities through WE WORK partners and validated by programme teams with adjustments made for double counting across Approximate number of people supported listed in grants. We are constantly refining and improving brackets beside country name our approach to data collection in order to make these impact figures as accurate as possible.
AFRICA ASIA AND THE MIDDLE EAST 1. Democratic Republic of Congo (69,000) 12. Myanmar (50,400) 2. Ethiopia (1,107,400) 13. Israel / Occupied Palestinian 3. Kenya (389,200) Territories (9,000) SOME EXAMPLES OF OUR WORK IN 2017/18 4. Malawi (140,800) 14. Pakistan (120,100) We also provided • 22,465 people in southern Ethiopia received agricultural support to overcome drought 5. Rwanda (39,300) 15. Syria / Lebanon humanitarian assistance in: • 28,046 people in Pakistan were supported by our work tackling gender-based violence 6. Sierra Leone (46,900) (72,500 including 900 19. Philippines (17,500) refugees in Serbia) • 192,782 people in Somalia were provided with healthcare and food support 7. Somalia (192,800) 20. India (4,000) • 35,793 people in Myanmar were provided with shelter, food and humanitarian aid 8. South Sudan (90,100) CENTRAL AMERICA 21. Iraq (57,400) 9. Sudan (131,100) 16. Guatemala (56,500) 22. Nepal (600) • 1,527 people in Gaza received psychosocial counselling 10. Uganda (14,600) 17. Honduras (10,500) 23. Bangladesh (5,900) • 60,151 people in Malawi were supported to increase food production 11. Zimbabwe (123,700) 18. Nicaragua (21,800) 24. Yemen (900) Reference: Marlin map Belfast boxer Carl Frampton and his wife Christine teamed up with Trócaire to support our Christmas Appeal. Carl and Christine are pictured here with mothers at St. Mary’s Primary Health Clinic in the town of Kalokol, northern Kenya. In this area mothers and their children are caught up in a food crisis brought on by prolonged drought. (Photo: Justin Kernoghan/Trócaire) 14 | Strategic Goals Trócaire Annual Report 2017/18 | 15 GOAL 1: HUMAN RIGHTS AND DEMOCRATIC SPACE
Outcome 1: 2017 saw an increase in the Our programmes respond to National governments and worrying trend of civil society human rights violations in a organisations – NGOs, human number of ways: international duty bearers rights activists – being denied • Providing human rights adopt policies to promote the freedom to operate and training to people democratic and transparent speak freely. This trend spread experiencing abuses significantly and deepened processes that protect and across Trócaire’s countries of • Protecting human rights fulfil the rights of people operation. defenders with legal aid, psychosocial support, living in poverty. Our programmes under Goal physical accompaniment One are focused on nine and access to emergency countries: Guatemala, Honduras, protection services The plaintiffs in the Sepur Zarco Litigation supported by establishing the programmes in Outcome 2: case in Guatemala – which Trócaire resulted in an Israeli line with the new strategic plan. Kenya, Malawi, Nicaragua, Israel/ • Advocating for stronger The rights of people who Palestine, Pakistan, South Sudan resulted in the successful High Court ruling that the Good progress has been made legal protection for human prosecution of Guatemalan Civil Administration must and this will be built on further are marginalised and and Zimbabwe. rights activists. vulnerable to human rights military leaders for crimes now give families two weeks over the coming years. Each of these countries are There are strong examples against humanity during the civil notice before their home is violations are respected challenging environments for across countries of progress war - received the International to be demolished. This is a Looking ahead human rights organisations. For Human Rights Award from the pivotal development, allowing and protected. being made against this goal The human rights landscape example, a severely restrictive Human Rights Association of families time to mount legal area. For example, in Honduras remains fragile and susceptible NGO bill is currently being Spain. Trócaire has supported challenge. This meant that 2,600 people benefited from to deterioration in many debated in Guatemala; Israel the plaintiffs for many years. 1,979 Palestinians were able to our support under this goal area countries where we work. has restricted foreign funding continue living in their homes. last year. Legal defence was Elections or political transitions for Israeli NGOs and denied Further positive developments provided for 34 cases involving in many countries have led entry for some international were seen with the roll-out of All of Trócaire’s programmes human rights defenders. These to spikes in insecurity and an organisations; while in Honduras a national compensation policy are implemented through cases resulted in improvements, increased potential for conflict. there have been efforts to for survivors of the Chixoy local partner organisations. including release from prison. Local politics will continue criminalise social protest. Massacre in Guatemala, in Partners operating human rights We supported 66 monitoring and which over 400 people were programmes display enormous to determine shifts in the documentation initiatives related 2017 saw an increase Individuals and organisations killed in 1982. Trócaire has long courage to defend communities human rights situation. At an who challenge government to human rights violations advocated for compensation for from abuses, often putting international level, threats to in the worrying policy are subjected to violence, against women and indigenous survivors. themselves at great risk to do multilateralism have emboldened defamation and imprisonment. groups. so. repressive regimes. This is trend of civil society The focus of the programme a worrying trend, one which At least 18 human rights Our bonded labour programme in Israel/Palestine is to support may continue to have negative organisations – NGOs, defenders were killed in in Pakistan supported 8,284 Progress Honduras and Guatemala families at risk of being forcibly repercussions both for local human rights activists people working in ten brick These programmes seek last year. In addition, over 30 displaced in the West Bank human rights activists and also kiln clusters. This programme to defend human rights by – being denied the demonstrators were killed through legal protection. We also for international agencies such provides literacy classes for challenging impunity and by state forces in Honduras support services and human as Trócaire. freedom to operate adults, supports children’s addressing power imbalances following the disputed rights support for people in Gaza enrolment in schools, and between citizens and state. and speak freely. Presidential election last enduring the ongoing siege creates workers groups While fighting for individual November. that has crippled the economy to advocate for minimum and effectively imprisoned victories in the short-term, wages and implementation of two million people. Over these are long-term goals forced labour and child labour 1,500 people in Gaza received that will require perseverance Above: Trócaire and local organisations held legislation. peace rallies in Nairobi’s Kibera slum in the psychosocial counselling through and commitment over many run-up to the 2017 general election to help our programmes last year. years. A focus for this year was reduce ethnic tensions. (Photo: Thom Pierce) 16 | Case Study Trócaire Annual Report 2017/18 | 17 JAILED FOR GOAL 2: SPEAKING OUT EQUITABLE ACCESS TO AND USE OF Abelino Chub Caal has been imprisoned since February 2017 under RESOURCES false criminal charges because of his role defending the rights of Outcome 1: People living People need to have access Advocacy on the National Land indigenous communities in Guatemala. to and control over natural Law in Myanmar resulted in in poverty, particularly resources to be able to provide the Kachin State Parliament He is a member of the Guillermo Defenders are charged with rural women, benefit from food and income. However, committing to reclaim land Toriello Foundation and CUC serious criminal offences that the sustainable use and states are failing in their duty to seized by companies and (The Committee for Peasant require mandatory pre-trial management of natural protect these rights for many of redistribute it to the original the world’s poorest people. owners and landless farmers. Unity), which advocate for detention, enabling long periods resources. access to land and housing. in detention without evidence We work with communities to The Supreme Court in Honduras Trócaire supports both of these having been produced. Outcome 2: People living ensure they have the right to declared six articles of the organisations. Abelino was held in pre-trial in poverty exercise their access and manage water and General Mining Law to be land resources. We also offer unconstitutional, while a Abelino acted as a mediator for detention until May of this year right to access and control indigenous communities fighting when a judge forwarded his case training, support and equipment community in Tolupan village for their land rights against for full trial. Abelino is charged natural resources. to ensure they can grow food succeeded in blocking attempts landlords and mining companies. with land grabbing and arson. and earn an income. to cut down their forests. There is no evidence against Much of this work is done in the Interventions to improve soil Human rights defenders in him. Guatemala are often subjected context of worsening climate moisture and water access to death threats, harassment, This strategy of criminalisation change, which is changing through capture, storage and stigmatisation, arbitrary aims to intimidate and silence. rainfall patterns and leading to distribution management were detention, and even murder. erratic weather. successfully initiated in seven Far away from his home and countries: DRC, Guatemala, The exceptionally high level people for over a year, Abelino is This goal is core to our work Kenya, Malawi, Nicaragua, of impunity enjoyed by the in good spirits. “I am imprisoned in 14 countries: DRC, Ethiopia, Rwanda and Zimbabwe. In perpetrators increases the risk for pleading for justice and Guatemala, Honduras, Kenya, Kenya 450 people, of whom 251 for defenders. defending my people,” he said. Malawi, Myanmar, Nicaragua, are women, learned soil water “My deprivation of liberty is a Pakistan, Rwanda, Sierra Leone, conservation skills and dug 27 The campaign against Abelino sign of the inability of the State South Sudan, Uganda and rainwater harvesting ponds. follows a well-established authorities to resolve the social Zimbabwe. pattern of criminalisation of In Kenya and Rwanda, Trócaire conflict. I deeply thank everyone We had notable success in human rights defenders in who has supported me.” We work with supported 51 communities to Guatemala. some countries on long-term map their natural resources. Below: People march in support of Abelino objectives around securing Chub Caal (pictured inset). communities to These maps have increased ensure they have the communities access to land. community awareness of their For example, seven resources and will inform their communities in Guatemala “I am imprisoned for right to access and management plans. In Uganda, manage water and achieved official registration as over 4,000 people formed pleading for justice indigenous communities. This Natural Resource Management and defending my land resources. grants them legal status and the groups, producing 63 resource ability to access supports. maps. people” 18 | Strategic Goals Trócaire Annual Report 2017/18 | 19 FLOURISHING GARDENS IN RWANDA In drought-prone regions of Progress Looking ahead southern Ethiopia, 22,465 We have seen excellent We will continue to train Rwanda is one of the most densely populated countries in Africa. people received support to progress against this goal area, communities and partner increase resilience to climate despite it being relatively new organisations on issues linked change, including through the With over 11 million people With the help of Trócaire the to some communities. Our to agroecology and crop distribution of seeds and farming living in a country smaller than community has built 23 water traditional livelihoods work – diversification. Training has equipment. Munster, access to land and tanks. These tanks harvest seeds, tools, irrigation – has already been provided for water is a big problem. rainwater from the roofs of We train communities on taken on more of a rights-based some partners not familiar houses. Each tank has capacity agroecological techniques. approach. with this approach and this Many communities struggle to for 10 cubic metres of water. Agroecology is an approach to work will continue. grow sufficient food from their The work remains vulnerable to These water tanks make it food production that prioritises small plots of land. But the outside factors, such as armed Through our partners we will possible for people to water the the health of the land and soil community in Nyarugeti village conflict, droughts and floods. also continue to fight for land gardens. over short-term production has implemented a strikingly Where these factors exist, they rights, particularly in Latin needs. Intensive farming effective solution. Francine Mukandamage planted have impacted on the success of America, as well as advocating focused on single crops can onions and cabbages. So programmes. in Ireland for tougher do long-term damage to Nyarugeti has been transformed successful has it been that she international action on climate by improved access to water, land. Agroecology promotes Similarly, an unsupportive and now sells surplus produce at the change. flourishing kitchen gardens and, sustainable farming and crop sometimes destructive political local market. She now has extra above all, a renewed sense of diversification. and economic atmosphere income for school fees, supplies community. exists for smallholder farming, and clothes. She also has money In Nicaragua, 8,943 farmers, pastoralists and indigenous for a wider variety of foods. mostly female, were trained The village is teeming with 65 people in some countries. on crop diversification and ‘kitchen gardens’, each with “It used to be a lot more difficult This often manifests itself in agroecology. The proportion of a corresponding water tank. to get water,” she says. “There land grabs by government or families with crop diversification The kitchen gardens, so-called was a 30 minute walk to get to private sector. This political The immense sense of rose from 22 per cent to 32 per because they are built directly the water point and often when environment heightens the need cent in this group. outside houses and near the I got there, there were long for programming in this area. community pride in this cooking area, are usually built queues and arguments.” Our work with rural communities project is palpable. with a mix of compost, rocks, to improve food production bamboo and wires or sticks. The immense sense of benefited 60,151 people in community pride in this project Malawi, 30,712 people in Sierra is palpable. Leone and 16,537 people in Rwanda. People are very happy about the health benefits of the Advocacy in Rwanda by In Nicaragua, 8,943 new foods they are growing. our partner organisations farmers, mostly female, Cyprien Rwamdamga, Chairman contributed to a weakening of of Nyarugeti’s village water the central government’s ‘one were trained on crop committee, says: “We have seen region, one crop’ rule, allowing diversification and an improvement in nutrition. for more drought-resistant crops Eating vegetables has made to be grown in drought-prone agroecology. a big difference. I didn’t know areas. myself before how important it was to eat things like carrots! We have got good education on that.”
People in Nyarugeti proudly display the produce at one of the village gardens (Photo: Alan Whelan/Trócaire) 20 | Strategic Goals Trócaire Annual Report 2017/18 | 21
Members of a women’s savings and loans group in southern Malawi GOAL 3: conduct their weekly meeting under a tree to record their savings. WOMEN’S EMPOWERMENT (Photo: Bazar Productions)
Outcome 1: Women, Women and girls continue to In Myanmar, 7,008 men and particularly young women, face significant inequality around women received training on the world. Women remain under- women’s empowerment. are participating in formal represented in all spheres of life and informal decision in many countries. In some countries we have encouraged partner making at all levels. Our women’s empowerment organisations to implement programmes work with quota systems within the Outcome 2: Women are communities in 13 countries: community structures. For free from violence and its DRC, Ethiopia, Guatemala, example, in DRC a 70 per cent associated risks. Honduras, Kenya, Malawi, women’s quota was introduced Myanmar, Nicaragua, Pakistan, for community level structures. Rwanda, Sierra Leone, Uganda This led to a number of cases and Zimbabwe. where men shared household duties and cared for children We work at multiple levels to while women were engaged in build women’s participation: other activities. with individual women to build their confidence and skills, with The other area of our women’s households and communities to empowerment work focuses build positive attitudes for gender on reducing violence against equality, and with civil society women. This work focuses In Guatemala, 2,005 survivors and institutions to address power on Uganda, Kenya, Malawi, Progress Looking ahead of violence are receiving legal imbalances. Zimbabwe, Sierra Leone, Women’s empowerment The coming year will focus on and psychosocial support, an Honduras, Guatemala, Pakistan involves deep, long-term change. strengthening the foundations Communities where we work increase from 223. Attitudes and Nicaragua. Some contexts have extremely that have been built. Our focus have seen positive shifts in towards gender-based entrenched views relating to will remain on the two core attitudes towards women’s Our gender-based violence violence also improved in the gender norms, to the extent that objectives: building participation participation in decision-making. programme in Pakistan, which communities where we work, even asking basic questions of and reducing violence. To do this An example of this is Ethiopia, includes refuges for affected with 47 per cent of men and communities is met with severe we will further build in-roads into where the number of men in women, supported 28,046 27 per cent of women now resistance. This highlights the communities and train both men communities where we work people. opposed to violence, an increase importance of finding the right and women at local level. showing positive attitudes from eight per cent and 23 per Almost 1,400 people entry points to address gender towards female participation cent respectively. We will also further build (814 women, 581 men) in inequality. trebled from 277 to 863. advocacy at a national level. This Malawi accessed medical or In Zimbabwe, 66 community We have established new can be challenging for women’s In Sierra Leone, 60 per cent of psychosocial outreach services. leaders are playing an active partnerships and set up empowerment programming as men we work with reported Sixty-seven per cent of women role in addressing gender-based Communities where structures within communities some cultures remain resistant positive attitudes towards and 76 per cent of men we work violence. This is an increase from to support women’s to women’s participation. Like we work have seen women’s participation in local with in Malawi now believe it 40 who had previously engaged. empowerment. We have also other rights-based programming, structures, an increase from 39 is wrong to commit violence A total of 303 survivors of positive shifts in trained partner organisations changing these cultural norms per cent. More than 60 women against women, an increase violence in Sierra Leone were on Trócaire’s Women’s will not happen within one attitudes towards ran as candidates in the Sierra from 61 per cent and 75 per cent provided with medical fees, legal Empowerment Framework,a programme cycle. However, Leone elections last year, 80 per respectively. advice, psychosocial support or women’s participation methodology to help women by operating at both local and cent of whom had been trained other support. A further 1,360 address and overcome power national level we can continue in decision-making. in women’s groups formed by people received these services imbalances that affect their lives. pushing for progress. Trócaire. in Nicaragua. 22 | Case Study Trócaire Annual Report 2017/18 | 23 ‘NOW I CAN HELP WOMEN GOAL 4: DEFEND THEIR RIGHTS’ PROTECTION OF HUMAN DIGNITY IN HUMANITARIAN CRISES Some people are born to be leaders, and Victorina Gómez (25) is one of them. Outcome 1: Communities Humanitarian crises were felt response is ongoing and we will affected by crises receive in every one of the regions continue to support affected Victorina (pictured left) was born Victorina also has difficulties with where Trócaire works in 2017/18, communities. in a poor rural area in northern the police. timely, accountable and mostly driven by conflict and Our humanitarian programmes Nicaragua where women do not needs-based humanitarian insecurity. in Somalia reached 192,782 have many chances to act as “If a woman comes to make a assistance that protects We are providing humanitarian people with healthcare and food leaders. complaint on Friday, police tell her to come on Monday because their safety, dignity and assistance in 17 of our core support. This was greatly helped Since 2013 she has been the car is used for other more fundamental human rights. programme countries: DRC, by Irish Aid, who in November participating in training with important cases,” she says. Ethiopia, Guatemala, Honduras, shipped 75 tonnes of aid – Trócaire´s partner CESESMA to “That way the aggressor has Outcome 2: Communities, Kenya, Lebanon/Syria, Malawi, including tents, mosquito nets sharpen her skills as a leader. time to escape.” Myanmar, Nicaragua, Pakistan, and water tanks – to Somalia for and particularly women, are Rwanda, Sierra Leone, Somalia, distribution through Trócaire’s Thanks to this, Victorina now Victorina expects other leaders better resourced to prepare South Sudan, Sudan, Uganda programmes. helps to prevent violence in her to commit themselves to prevent for, withstand and recover and Zimbabwe. community. She also knows violence and acknowledge it as a The war in Syria continues better how the law protects the public problem not as a domestic from crises and disasters. In addition, we provided to have devastating impacts. rights of children, teenagers and issue. humanitarian support to people We supported the distribution women living with violence. in seven countries where we do of food and other vital aid to She has achieved some victories. not have ongoing programmes: 65,000 people in Syria, the For her, violence in Nicaragua For example, she managed Philippines, Serbia (Syrian vast majority of whom - 48,022 is a problem not addressed at a to introduce the issue of refugees), Iraq, Nepal, India, people - were in Aleppo. A deep enough level. violence against women into Bangladesh and Yemen. This further 6,000 Syrians living in debates organised by the local support is in response to Lebanon were supported. “Violence is not just hitting,” authority about social assistance specific humanitarian needs. she says. “If the husband takes schemes. We provided food aid in nine the family money, he doesn’t Over the course of 2017/18 countries: Pakistan, Somalia, care about the wife’s health. If Her challenge now is keeping Trócaire responded to severe DRC, Myanmar, Rwanda, he yells at her, that is violence adults, teenage women and Over the course of drought in Ethiopia, Kenya, Lebanon, Ethiopia, Sudan and “Now I can help too. I want to make other people youth informed. 2017/18 Trócaire Somalia and South Sudan. This South Sudan. In addition, seeds aware that violence is a priority response was supported by and tools were distributed to women and children Thanks to the training she issue. responded to severe over €5m in donations from the 23,039 individuals in South received, Victorina has also made to defend their rights. Irish public through a national Sudan, DRC, Pakistan, Somalia “Now I can help women and other important decisions in drought in Ethiopia, church collection held in July. and Ethiopia. Thanks to my training I children to defend their rights. her own life and she is studying Kenya, Somalia and These donations have enabled Thanks to my training I was business administration. was appointed a legal South Sudan. us to so far bring support to In DRC, cash for work helped appointed a legal counsellor. 73,400 people across the region. communities boost livelihoods counsellor...” Now I can guide women and Examples of our emergency activities by building fish ponds children on accessing justice.” response include the supply of and irrigation channels for agricultural production. But Victorina faces many clean water to 4,800 people in challenges. As a young female one region of Ethiopia, food aid In Myanmar 35,793 people were leader, she usually deals with for 4,500 people in northern reached with humanitarian aid, male leaders who do not believe Kenya, and seeds and tools for including shelter, food, water in women’s abilities. approximately 20,000 people in and sanitation. South Sudan. This emergency 24 | Strategic Goals Trócaire Annual Report 2017/18 | 25 ‘NOW WE FEEL SAFE’ Programmes in DRC, Lebanon, Progress Looking ahead Myanmar, Pakistan and Rwanda We are developing emergency When conflict resumed in Kachin State, northern Myanmar, after a reached 15,775 (8,280 female, Responding to drought and preparedness plans and capacity 7,495 male) individuals with conflict in east Africa will 17-year ceasefire, many people sought refuge in makeshift camps. at country level to ensure quick psychosocial support. continue to be a major part of response to sudden crises the programme for the next Almost seven years later, they are still there. We also responded to sudden and effective responses to twelve months. We will also be needs following incidents such protracted crises. increasing our response to the as mud slides in Sierra Leone crisis in Yemen. Grants to local Lahpai Hkawn Nan (32) lived been worrying for my daughters’ In particular, our work has and an earthquake in Guatemala. agencies in Yemen supported with her three children and safety at all times.” focused on the protection In these cases Trócaire provided 900 people in 2017/18 but this grandfather before the conflict of women and girls in emergency relief, including food will be increased as needs resumed. With support from Irish Aid, emergencies. Displacement and housing, to affected people. continue to worsen. Trócaire provided a new shelter puts women at increased risk They had to flee their village for Lahpai and her family, along Where displaced people are of violence and abuse. As A renewed outbreak of violence with only a few belongings. Her with others in the camp. arriving into areas where the well as providing expertise in in eastern DRC has led to youngest was only two months existing population is already emergency situations to reduce widespread displacement. We old. “This was the only happy vulnerable (for example, Somalia the risks faced by women, we are responding and will continue moment for me since I became and Rwanda), programmes have also trained partners and to support people in the area They arrived at a camp in July displaced,” she says. “The new were broadened to include sister agencies to improve their through food and other aid. 2011. Families were living in shelter has two rooms with host communities to lessen the capacity. overcrowded communal halls an attached kitchen and it has possibility of tension between and makeshift shelters. space to store our belongings. communities. We have a feeling of safety by “There are many problems with having windows and a door in Trócaire’s ability to access some living in makeshift shelters,” our shelter. Now we are staying areas of need was restricted Lahpai says. “There was no in a shelter which is well covered through restrictions on travel, private place. In the summer and much better than before. due both to violence and it was too hot and in the rainy Preparing food for my children government restrictions. Access The war in Syria continues to have devastating season the floor and walls and grandfather is easier than to certain areas of Somalia and impacts. We supported the distribution of food got wet. I feared that it would before. Children also have space South Sudan is restricted, while damage the health of my to play near our shelter.” only local staff have access to and other vital aid to 65,000 people in Syria. children and my grandfather. certain regions of Pakistan. The rooms was not safe. I had
“Preparing food for my children and grandfather is easier than before. Children also have space to play near our shelter.”
Lahpai Hkawn Nan at her shelter. 26 | Strategic Goals Trócaire Annual Report 2017/18 | 27
Trócaire was instrumental in the volunteer programme, online, while media interviews two pieces of climate change bringing to seven the number GOAL 5: generated coverage across a legislation progressing through of dioceses involved by the end range of titles, including UTV, of 2018/19. Dáil Éireann. The Fossil Fuel TV3, Newstalk and the Irish PEOPLE AND LEADERS IN IRELAND Divestment Bill and the Climate Independent. Our advocacy on climate Emergencies Bill were both change and Palestine will developed as a result of our ACTING FOR A JUST WORLD continue, as we push for campaigning. Looking ahead meaningful action from Irish Lent 2018 saw the launch of politicians, including pushing Trócaire made a submission a three-year Development Trócaire has a dual mandate: to Cert subject, Politics and for legislation on fossil fuels Outcome 1: The Irish public to the Citizens’ Assembly Education learning cycle around provide assistance to vulnerable Society. and settlement goods to be is informed, engaged and deliberation on climate the Sustainable Development people overseas and to engage change and encouraged our enacted. We continued to build links Goals. This will continue next takes action on the root the Irish public on the root supporters to do likewise. The with universities. For example, year, supported by the launch of causes of global injustice. causes of poverty and injustice. Assembly adopted many of our the Trócaire Society won Best a new animation series aimed at Progress recommendations. primary school children. Outcome 2: The Irish Working with communities in New Society at the Queen’s Our outreach work in Ireland Ireland to encourage solidarity University Students’ Union continues to be an integral We released a documentary, The World Meeting of Families, Catholic Church continues to with the world’s poor is central awards. part of Trócaire’s mandate. ‘This Is Palestine’ hosted to be held in Dublin in to our work. Much of this work Initiatives aimed at bringing tackle the issues of global by Riverdance director John August 2018, will be a unique is focused on engaging the We also engage in an ongoing global justice issues to church, poverty and injustice. McColgan, to mark the fiftieth opportunity to bring messages Catholic church and schools on basis with church groups, schools, political and general anniversary of the occupation of global justice to the Catholic justice issues. providing resources and support public audiences have yielded Outcome 3: The Irish of the West Bank. The community in Ireland. We to encourage deep engagement excellent results. This can documentary was watched over launched the Romero Award Government, Northern We work with schools on issues such as climate be seen across a range of 500,000 times online and was in conjunction with the event. Ireland Assembly, UK throughout the year, producing change. measures, from the number featured in several festivals. These awards will celebrate Irish educational resources, of teachers engaging with Government, the EU, and During Lent Trócaire speakers schools and families who have supporting teachers and running Our ‘Home Truths’ installation, our resources through to addressed masses in 131 undertaken a learning journey on other international duty workshops for students to which replicated a demolished engagement levels with our parishes, while a further 55 global justice. bearers adopt policies educate the next generation Palestinian home, was brought work on digital channels. about how they can help to parishes were reached during and take action – both around the country, while we We will continue to expand our In particular, our policy and build a just world. Last year the east Africa emergency also supported the Occupied volunteer programme, with a advocacy work contributed domestically and within our Development Education appeal in July. In total, these Territories Bill, introduced into particular focus on the west significantly to several pieces resources were downloaded activities saw us speak directly international forums – that the Seanad by Senator Frances of Ireland. Dublin, Galway and of legislation being introduced from the Trócaire website over with an estimated 165,000 contribute significantly Black. Down & Connowr will also join into the Oireachtas. 23,000 times. In addition, 10,840 parishioners. towards global social teachers received our climate Traditional and digital media Lent saw Josiane justice. change resources during Lent. channels continue to play a vital Umumarashavu travel to Ireland. role for engaging the public Our Schools for a Just World Josiane was the face of our on global justice issues. Our programme brings students and 2004 Lenten campaign and creative use of digital media saw teachers from multiple schools now, having graduated from over three million engagements to a ‘Trócaire day’ in one central university, works for Trócaire with Trócaire on social channels location. This cluster model in Rwanda. Josiane spoke of last year, while our engagement increases our reach and also the transformational change with traditional media drove Lent saw Josiane deepens engagement. Trócaire’s support had on her life. our campaigns and ensured Umumarashavu travel We introduced Learning for Limerick became the fourth prominent media coverage for to Ireland. Josiane was a Just World, a global justice diocese to join our Volunteer issues such as climate change, the face of our 2004 education module co-designed programme, following on from displacement and conflict. with the Loreto Schools Kerry, Cloyne and Armagh. We One particularly successful Lenten campaign and Network, for 1st and 2nd year now have 120 volunteers across initiative saw Belfast boxer students as part of the new these four dioceses. now, having graduated Carl Frampton travel to Kenya Junior Cycle framework. from university, works At a policy level, our two major in support of our Christmas We also developed our Global advocacy campaigns related Appeal. Videos of Carl at Trócaire for Trócaire in Rwanda. Josiane Umumarashavu, who featured on the 2004 Lenten box, visited Ireland in February. Voices podcast on environmental to climate change and the projects in Nairobi and Turkana She is pictured here with St Colmcille’s student Lucia Conroy Garcia (8). sustainability for a new Leaving occupation of Palestine. were viewed 496,000 times (Photo: Mark Stedman/Trócaire) 28 | Strategic Goals
2FM’s Bernard O’Shea and Keith Walsh with Daoud Eid Bsesat Jahalin, a farmer on the outskirts of Jerusalem whose We couldn’t do it community is under threat of house demolition to facilitate further illegal settlement expansion. without you (Photo: Eoghan Rice / Trócaire) People all over Ireland donate their time and money to support Trócaire’s work. From organising cake sales to signing petitions, people in Ireland do what they can to support our call for a just world. This support is what makes Trócaire possible.
RTÉ’s Joe Duffy and Fr. Brian D’Arcy at the Gala Christmas concert in aid of Trócaire held in Mount Argus church. (Photo: Barry Cronin)
Left: Pupils from 1st Class in Scoil Bhride, Kathy Seaver (12) from Milverton School, Edenderry, proudly present money raised for Skerries, Co. Dublin pictured in Trocaire’s Trócaire to Fr. McEvoy. (Photo: Ms Cooney) show garden at the Bloom festival in Phoenix Park. The garden highlighted the struggle for land rights in central America. Bottom left: Trócaire brought the ‘Home (Photo: Mark Stedman) Truths’ installation around Ireland to illustrate the aftermath of a home demolition in the West Bank. Between 2006 and February 2017, at least 1,785 Palestinian homes were demolished in the West bank, causing 7,909 people – including at least 4,113 children – to lose their homes. (Photo: Mark Stedman)
Below: Ross Malone (7) and his younger brother James (2) from Kildare supporting the Trócaire Lenten campaign in Maynooth. (Photo: Mark Stedman)
Participants at Trócaire’s Climate Change Challenge, which teaches young people about the threats caused by climate change. (Photo: David O’Hare / Trócaire) 30 | Strategic Goals GOAL 6: INNOVATION, LEARNING AND IMPROVEMENT
Outcome 1: An Creating maximum positive 12-14 years olds for use in post- environment of innovation change in the lives of women primary schools. This game will and men requires a commitment be the first time we have used and research is cultivated to continuous improvement video game technology to bring within Trócaire’s across all our work, in Ireland global justice issues to young programmes. and internationally. We use people. results-based management We will follow this with Outcome 2: An integrated across our work to ensure constant learning and further research into ‘digital country approach built on improvement. development education’ to a foundation of rights and understand how teachers are Integration of our programmes is using digital tools in classrooms empowerment is adopted central to how we are improving and extend the reach of across Trócaire programme and innovating. Integrating our development education through countries. programmes increases our digital learning. impact in the communities we Outcome 3: Trócaire support. Progress engages in evidence- We undertake research at local We are embedding a culture of based decision making and level to constantly improve our continuous learning, innovation continuous learning and programmes. For example, we and improvement into our work, are innovating in the area of both internationally and also in improvement. food production by pioneering Ireland. We have established an agroecological approaches, often Innovation group to drive this marrying this new approach with culture of innovation throughout traditional approaches. the organisation.
Trócaire’s work around self- Looking ahead We use results-based stigma is an example of innovation in our programming. In 2018 we will launch the management across Working with survivors of Trócaire Innovation Awards our work to ensure gender-based violence and to recognise and celebrate women living with HIV in innovation in all its forms constant learning and Zimbabwe, our programme uses – whether large or small. improvement. Inquiry-Based Stress Reduction Importantly, we also celebrate (IBSR) to tackle self-stigma. ‘failures’ as an opportunity for This leads to improved mental learning and improving. The health, well-being and quality of inaugural Trócaire Innovation life for the women. This is the Awards will seek submissions first time this approach has been from our programmes around applied to HIV and gender-based the world. violence in a developing country.
Innovation has also been evident in our work in Ireland. For example, in autumn 2018 we will Esther Chegem from northern Kenya. launch a role-play video game for Esther received food aid from Trócaire in response to a drought and hunger crisis that gripped the region. (Photo: Aidan O’Neill) 32 | Strategic Goals Trócaire Annual Report 2017/18 | 33
Kumba and sister Fatu from Freetown, Sierra Leone. Kumba featured on the 2018 Trócaire GOAL 7: box. Her family home and many others were destroyed when a devastating landslide hit EFFECTIVE PARTNERSHIPS in August 2017. (Photo: Kipp Wettstein)
Outcome 1: Trócaire Partnership is core to the DNA has diverse, relevant of Trócaire. Our way of working is built around establishing and institutionally strong strong partnerships with local portfolios of partners that organisations and working with can deliver innovative and them to make a positive impact in the lives of their community. impactful programmes in an As well as funding local accountable manner. programmes, we offer technical support to build the capacity Outcome 2: Trócaire is of partners and strengthen working in collaboration their knowledge, expertise and impact. with networks and preferred strategic We strongly believe in partnership and in allowing partners in our countries local communities to design of operation, in Ireland and and guide the change they globally, in order to achieve want to see in their lives. We greater programme impact, advocate strongly for increased funding and recognition for local more stable funding and organisations. greater policy influence. Working alongside civil society, church and institutional partners and networks strengthens our work, increases our knowledge and extends our reach into communities in need of support.
In 2017 we diversified the type of partnership we engage in, including building links with academic partners in Myanmar, Our localisation research with We work with a diverse range Progress Looking ahead DRC and Lebanon. The portfolio partners in Myanmar and of partners across our public We are working with an ever- We will further diversify our We strongly believe of national partners expanded DRC - ‘More than the Money: engagement and advocacy increasing number of partners partnerships by building further to include partners with a wider Localisation in Practice’ - work in Ireland. Examples in partnership and to deliver excellent programmes links with academic institutions range of technical ability, most has energised partners to include Stop Climate Chaos, the and greater impact. and also extending private in allowing local notably in protection of women engage in discussions on how National Youth Council of Ireland, sector partnerships. communities to design and girls in both Lebanon and localisation can work, increasing Eco Schools, Dóchas, AFRI and One challenge has been the and guide the change Myanmar. engagement between national Social Justice Ireland. ability of some partners to scale and international actors on up programmes while also Consortium Guidelines were At a global level Trócaire is they want to see in humanitarian financing. complying with institutional produced in 2017 to direct the a member of both Caritas donor requirements. We work their lives. establishment and management On a funding basis we are Internationalis and CIDSE, with partners in these instances of consortia. working with new institutions to contributing proactively to the to help them overcome support programmes overseas work of both federations. challenges. (see Goal 8). 34 | Strategic Goals Trócaire Annual Report 2017/18 | 35 GOAL 8: INCREASED SCALE AND INCOME
Outcome 1: Trócaire has The financial year 2017/18 was A major focus for the year Institutional funding is an area public awareness of overseas approved, nine are pending, 28 increased and diversified one of Trócaire’s most successful was developing and launching we have invested in over recent development issues as domestic declined and one withdrawn. in terms of income. This was in a new fundraising strategy years and this investment concerns continue to dominate institutional funding part due to an investment in a based on strong storytelling to is reaping rewards in terms media discussions. Trócaire Looking ahead income. new fundraising strategy and emphasise the importance of of our ability to secure and won Best Use of Data Insight an increased focus on securing Trócaire’s work. The resulting manage large grants. We and Research at the National We will further embed ‘Until Outcome 2: Public income institutional grants. ‘Until Love Conquers Fear’ have an Institutional Funding Fundraising Awards for the ‘Until Love Conquers Fear’ into our engagement with the Irish is increased with an campaign was launched as part team spread throughout our Love Conquers Fear’ campaign. Our public fundraising amounted of our Christmas appeal and country teams, supported by public to build connection emphasis on attracting new to €29.1m. The Lenten campaign subsequently the 2018 Lenten an Institutional Funding unit in Institutional funding was also and resonance with our donors and dependable continues to be the largest appeal. Ireland. remarkably strong in 2017/18. work. Trócaire’s projected campaign with €8.7m raised. We attracted the support unrestricted income for income sources and on This was an increase of €1.3m This new approach aims to build of several new institutional 2018/19 is €22m. deepening engagement and from 2017, driven in part by a stronger connection from the Progress donors over the course of the growing income amongst media focus on famine in South public to our work. Launching We experienced one of our most year, including Porticus, the We will also further build our Sudan throughout the duration this new strategy required an successful years for income. The International Land Commission, capacity at an institutional existing supporters. of the campaign. initial investment. However, launch of ‘Until Love Conquers the Kenneally Family Foundation, funding level, ensuring we our expenditure on fundraising Fear’ is helping to build a Vastenactie and the Start are properly sized to secure, Our Committed Giving continues to generate strong stronger connection between Network. In total during manage and report against new programme raised €4.6m, while results. the public and our work. This 2017/18, Trócaire made 81 donor grants. Tax and Gift Aid generated is in the context of reduced applications, of which 43 were €1.8m. Legacies contributed For every €1 spent on €3.7m for this period which fundraising and marketing was a significant increase on activities an average of €5.12 previous amounts owing to was raised from the Irish public. some gifts of exceptional value. Trócaire Gifts and the Trócaire Our institutional fundraising also 2017/18 2016/17 2015/16 2014/15 Christmas appeal raised €2.1m. continues to perform strongly. Income from institutional Donations to humanitarian funders continued to grow Public donations €29.1m €22.2m €24.9 m €23m crises contributed €5.5m. The significantly in 2017/18, resulting vast majority of this - €5m - in €45.8m worth of grants being Lent €8.7m €7.4m €8.3 m €8m A major focus for the was raised by a national church awarded to Trócaire. collection held in response year was developing Irish Aid remains our largest to hunger in east Africa. We Christmas €2.1m €2.1m €1.9m €1.9m and launching a are extremely grateful for institutional funder, with €20.2m new fundraising the support of the Bishops’ provided to Trócaire. strategy based on Conference in organising this The UK Government, through Committed Giving €4.6m €4.8m €5.3m €5.1m emergency fundraising appeal. the Department for International strong storytelling Development (DFID), provided Public fundraising rose by €7m. Humanitarian €5.5m €0.9 m €2.8 m €1.2m to emphasise the While approximately €4.5m €6.2m to support Trócaire’s work. importance of of this was in response to humanitarian need, general Institutional funding €45.8m €40.1m €40.5m €34.8m Trócaire’s work. donations rose by 11 per cent, from €21.3m to €23.6m. 36 | Strategic Goals Trócaire Annual Report 2017/18 | 37 GOAL 9: AN ACCOUNTABLE AND EFFECTIVE ORGANISATION
Outcome 1: Trócaire Trócaire has a responsibility to Significant progress on CHS based on feedback from the We seek to recruit the highest Progress be accountable to the people and safeguarding was made communities. In Pakistan, calibre of staff who reflect our can be held to account Success against this goal who fund, support, participate with the roll-out of complaints community members fed into values and ensure maximum requires embedding certain by our key stakeholders and work in our programmes. handling mechanisms in nine the budgeting process and their impact in our work. We are behaviours and processes in for delivery of our As part of our commitment to countries. We apply numerous recommendations were built committed to developing staff our culture. We are making accountability, we began the other accountability processes into the project plan. to their full potential and are commitments to them. good progress to bring process of obtaining certification at community level, including proactive in terms of supporting accountability to the fore of under the Core Humanitarian participant feedback, community Our high standard of this through learning and Outcome 2: Trócaire is our work. Standards (CHS) on Quality meetings and community accountability was recognised development initiatives. an efficient and effective and Accountability in 2017. A project committees throughout by being granted ‘triple lock’ organisation which gets self-assessment was carried our programmes. status by the Charities Institute We operate a performance Looking ahead of Ireland, reflecting our management system to help out in Ireland, Zimbabwe The Quality and Accountability the best value from our Meaningful engagement with adherence to best practice generate a culture of high and Guatemala. The findings Improvement Plan will financial resources. communities can lead to a in transparent reporting, performance. We also joined the helped shape a Quality and be implemented in 2018 changing of programme focus. good governance and ethical Great Place to Work initiative to Accountability Improvement with oversight from the Outcome 3: Trócaire For example, we altered the fundraising. engage staff on how to further Plan. Accountability Steering Group. design of shelters in Myanmar improve organisational culture continues to attract and We will also roll out a People and efficiency. retain skilled, motivated, Strategy to further develop and empowered staff. Ensuring staff, partners and and motivate staff, as well as beneficiaries are safe from implementing an action plan exploitation or abuse is a priority. based on the Great Place to We have continued to strengthen Work results. We have set our safeguarding processes, a target of a five per cent including providing training for reduction on our total carbon staff and partner organisations on emissions figures for 2018/19. implementing and monitoring our safeguarding policies.
We are committed We are committed to climate to developing staff justice and to reducing our to their full potential impact on the environment. We have been quantifying our and are proactive in carbon footprint since 2016. terms of supporting Focusing on flights, paper usage, road travel and energy use, we this through learning are attempting to reduce our and development carbon footprint. This policy is now embedded into our initiatives. annual planning and budgeting processes.
Janvier Ngabo, who works with Trócaire partner IPFG, working in communities in Rwanda to develop ways to improve food production. (Photo: Alan Whelan/Trócaire) 38 | Preface Trócaire Annual Report 2017/18 | 39
A man sweeps the rubble on a street in Aleppo, Syria. The war in Syria is now in its eighth year. Working with local partners, Trócaire brought aid and supplies to 65,000 people in Syria, as well as a further 7,000 Syrian refugees who have fled the country. (Photo: Patrick Nicholson/Caritas) 40 | Structure, Governance and Management Trócaire Annual Report 2017/18 | 41 STRUCTURE, GOVERNANCE AND MANAGEMENT
REGISTRATION AND The Trustees during the financial CONSTITUTION year 2017/2018 were as follows; Trócaire is the overseas Archbishop Eamon Martin development agency of the (Chair) Catholic Church in Ireland. It is a registered charity in the Republic Archbishop Diarmuid Martin of Ireland (charity number CHY 5883), granted charitable status Archbishop Kieran O’Reilly under Sections 207 and 208 of Archbishop Michael Neary the Taxes Consolidation Act 1997 and with a Charities Regulatory Bishop John Kirby Authority Number 20009601. Bishop William Crean Trócaire was established to express the concern of the Irish Bishop Noel Treanor Catholic Church for injustice in the developing world. Trócaire is The Trustees meet annually to governed by a Trust Deed dated receive the annual report and 18 December 1973, as amended audited financial statements of on 14 June 2001 and 19 October Trócaire. Other meetings take 2010. place as required. The last AGM was held on 21st June 2017. A further joint meeting of the TRUSTEES AND BOARD Trustees and the Board took Trustees are appointed by the place on 20th October 2017. This Episcopal Conference. There meeting was held to review are seven Trustees, each of and enhance the governance whom must be an Archbishop arrangements of Trócaire. or Bishop of the Irish Hierarchy. The Board meets formally six The Trustees appoint a Board times a year. One of these consisting of up to 14 members meetings takes place over a to advise and assist them in residential weekend to allow the governance of Trócaire. time for the members of the The members of the Board are Board to develop a deeper subject to retirement by rotation, understanding of the work having held office for three years of Trócaire both in Ireland consecutively. No member of and overseas. Trustees and the Board other than a Trustee Board members undergo or an ex-Officio Member shall an induction programme to hold office for longer than six ensure that collectively they consecutive years. have the overview necessary for the proper governance of the organisation, and ongoing Daniel Gasimba, a member of the training is arranged whenever Turengere Ibidukikige Cooperative in Rwanda. (Photo: Alan Whelan / Trócaire) a need is identified. They also 42 | Structure, Governance and Management Trócaire Annual Report 2017/18 | 43 travel overseas to view our work Bishop William Crean has in Financial Services with director of Clancourt Group, a supporter of the 30% Club. based NGO. She has recently first hand. served as Chairman of Trócaire Aviva, in Communications property development company. Fiona is Chair of the Organisation been appointed as a lay member since March 2013. He was with Eircom and in Grocery In 2014 Deirdre completed a and Human Resources of the Mental Health Tribunals The Board are selected based ordained Bishop of Cloyne in with Mars Ireland. Gerry has Masters in Theology receiving Committee of Trócaire’s Board. established under the 2001 on their skills and experience to January 2013. Well rooted in previously held positions as First Class Honours for her Mental Health Act. assist and advice the Trustees the spiritual heritage of his non-executive Chairman of thesis entitled: ‘On Charity and Harry Casey is an ex- in their governance of Trócaire. native Kerry, he is committed Eircom Phonewatch, Ireland’s Justice - The writings of Benedict offio member of the Board Monica McWilliams is Emeritus The Trust Deed stipulates that to dialogue between faith leading residential home security XVI and his contribution to representing the Irish Professor of Women’s Studies there should be two ex-officio and modern culture. He was company and is a former Catholic Social Teaching’. Episcopal Conference. He based at the Transitional Justice members of the Board; the a founder director of Radio Director of the Eircom Employee studied Philosophy, English, Institute, University of Ulster Bishop Donal McKeown is the Executive Director of Trócaire Kerry. He served for two years Share Ownership Trust. Gerry Theology and Education at and is currently a Commissioner Bishop of Derry. He is chairman and the Secretary to the Irish as Chairperson of ARENA is an accountant (FCMA), a The Pontifical University of on the Independent of the Episcopal Commission Episcopal Conference. (Adult Religious Education member of the Institute of Ireland and NUI Maynooth and Reporting Commisson for the for Worship, Pastoral Renewal National Association). Prior to Taxation in Ireland (AITI) and did his postgraduate studies disbandment of paramilitary In line with good governance and Faith Development, his appointment to Cloyne he a member of the Marketing in Rome. He worked for 18 groups in Northern Ireland. practice, the Board agreed on Chairman of the Council for years as a secondary teacher She was formerly the Chief th served as curate of Glenbeigh Institute of Ireland (MMII). 9 April 2018 that the governing Pastoral Renewal and Adult Faith and Killorglin and he has served Also, he holds Non-Executive in St. Patrick’s Classical School, Commissioner for Human documents should be altered Development, Member of the as Parish Priest in Castlegregory/ Directorships at Trócaire and the Navan, Co. Meath and also Rights and an oversight so that the Executive Director Council for Education. Before his Cloghane and in Cahersiveen. He Carmichael Centre for Voluntary served as diocesan adviser Commissioner for Prison Reform would not be a member of the appointment as Bishop he had a is a graduate of Maynooth and Groups. Gerry chairs the for post primary catechetics in in Northern Ireland. She co- Board. 23-year career as a teacher. This Pontifical Gregorian University, Funding and Public Engagement the diocese of Meath. He is founded the Northern Ireland included teaching at St. Patrick’s currently Executive Administrator Women’s Coalition, a cross The following are the profiles for Rome. Committee of Trócaire’s Board. College, Knock, teaching at of the Commissions and community political party and the Board during the financial Chris Queenan is a retired Sandra Lawler is a Founder his alma mater St MacNissi’s Agencies of the Irish Episcopal was the Coalition’s negotiator year 2017/2018: senior executive with global Director of the Alternatives College, Garron Tower as well Conference. at the multi-party peace talks experience in Banking and Group, a successful business as involvement with youth in Northern Ireland. She is a Consumer Finance. Chris has that was set up in 2000 and programmes. He has served as Rosemary McCreery has had signatory of the Belfast/Good extensive global governance provides flexible marketing, Dean of the Seminary which was a long and varied career in Friday Agreement and was experience. In his most recent digital and leadership talent situated in St Malachy’s College, international development with an elected member of the role with GE Capital (GECIFC) solutions. Sandra and her co- Belfast and later as President of UN agencies. She has worked in Northern Ireland Legislative Chris led the internal audit founder were finalists in the St. Malachy’s College. He has Togo, Madagascar and Indonesia Assembly from 1998 to 2003. function, providing independent Ernst & Young Entrepreneur a Master’s degree in Business with governments to develop She has undertaken a range of assurance to the US Audit of the Year, were previous Administration specialising UNICEF-supported programmes international projects in conflict Committee and Management recipients of the Image/Sunday in educational management. of cooperation intended to situations including working Board. The function comprised Times Female Entrepreneur of Bishop McKeown stepped down improve the health and well- with women on the Afghan 150 auditors across 12 countries the Year and won the Chambers from the Board in November being of women and children. In High Peace Council and the covering consumer and Ireland Best SME CSR Award for 2 0 1 7. Romania she helped to develop Syrian Opposition Negotiating commercial activities with assets their CSR initiative, Marketing for a programme focused on child Committee. She has published Fiona Tierney is currently the of approx. $90bn. Chris is a Change. Sandra is a member of protection. Rosemary served as widely on domestic violence, Chief Executive Officer of the member of the Audit Committee the Institute of Directors and the Director of the Cambodia Office human security and the role of Public Appointments Service, Institute and the Institute of Marketing Institute of Ireland. of the UN High Commissioner women in conflict situations and where she has successfully Chartered Accountants in She speaks fluent French. for Human Rights from 1998- her work has been recognised repositioned the organisation Ireland. Chris chairs the Audit 2000. In 2000 she returned to by the John F. Kennedy ‘Profiles and overseen the introduction of and Risk Committee of the Deirdre Kenny is a non- UNICEF to head the office for in Courage’ award and the Frank a new process of appointments Trócaire Board. practising solicitor.She has Russia, Ukraine and Belarus until Cousins Peace Award. Monica to State Boards. Fiona has a extensive experience in acting 2003. Rosemary was appointed is the recipient of an honorary career history of successful Gerry Culligan is Commercial for charities. During a sabbatical UN Assistant Secretary doctorate for her work on leadership in senior executive Director, Iarnród Éireann/Irish from her law career she has General for Human Resources domestic violence from Lesley positions in both the private and Rail since January 2012 with volunteered with SPIRASI at Management in 2003. Rosemary College, Massachusetts. responsibility for delivering their Centre for the care of public sector. She is a member retired from the UN in 2007 profitable revenue growth survivors of torture. She also of the Civil Service Management and has continued to work Carmel Flynn is a member of and enhancing customer spent three months in Italy Board, and a Chartered Director internationally in the field of the Society of the Sacred Heart. experiences. Gerry has over supporting the Community of the Institute of Directors. She child rights and child protection, She began her international work 25 years commercial and Cenacolo, an addiction service. is a member of the Board of the mainly in sub-Saharan Africa. in Uganda teaching in a school financial experience across a She was a director of the IMI and of Trocaire, is on the She served on the Board and as run by the order, where she number of industries, holding Community Cenacolo house in committee of the International Chair of the International Service later served as Headmistress. senior Executive Director roles Knock. She is a non-executive Women’s Forum and is a strong for Human Rights, a Geneva- She completed a Masters in 44 | Structure, Governance and Management Trócaire Annual Report 2017/18 | 45 the US and returned to Uganda and a Higher Diploma in overseas. This included the The following table shows attendance at the Board meetings during the year: to teach at the university and Philosophy and in Community allocation of resources to was then asked to become Leadership. Conall is Chair of development and humanitarian Board Meetings Head of a secondary school in the International Programmes programmes and securing Bishop William Crean (Chairperson), 6 out of 6 Rosemary McCreery (joined the board in June 2017), 4 out of 4 Karamoja, the poorest part of the Committee of the Board of co-financing from the Irish Christopher Queenan, 6 out of 6 country and a place experiencing Trócaire. government, the EU and others. Harry Casey, 6 out of 6 Margot Lyons (retired from the board in June 2017), considerable violence and civil In 2002 Éamonn was appointed 1 out of 2 conflict. There and elsewhere Éamonn Meehan first joined Deputy Director and Head of Sandra Lawler, 6 out of 6 Sr Geraldine Henry (retired from the board in June she has continuous involvement Trócaire staff in 1991 as Trócaire’s Ireland Division with Gerry Culligan, 5 out of 6 Programme Manager for the 2017), 2 out of 2 in the congregation’s work for responsibility for fundraising and Conall O’Caoimh, 5 out of 6 Justice, Peace and Integrity of Southern Africa Region. In this marketing, communications, Fionnuala Waldron (retired from the board in June Deirdre Kenny, 5 out of 6 2017), 2 out of 2 creation. In 1998 she returned role, he managed the day-to- development education, policy to Ireland but in 2006 spent day running of Trócaire’s work and campaigns. Éamonn Fiona Tierney, 3 out of 6 Bishop Donal McKeown (retired from the board in in South Africa, Mozambique, time in Indonesia, again in became Executive Director of Monica McWilliams, 2* out of 6 November 2017), 0 out of 4 Angola, Zambia and Zimbabwe. formal education, including Trócaire in October 2013. Sr Carmel Flynn (joined the board in June 2017), Eamonn Meehan (Executive Director), 6 out of 6 teaching in an Islamic university. In 1996 he became Head of 4 out of 4 Sr. Carmel co-ordinates a the International Division, *absent from one meeting due to being overseas on Trócaire business committee in the Sacred Heart responsible for Trócaire’s work Congregation which provides funding to development projects of the congregation around the Mahama Refugee camp in Kirke district, Eastern Rwanda. (Photo: Alan Whelan/ world and is also promoting Trócaire.) their policies on Safeguarding Children world-wide. She is also the congregation’s liaison with Misean Cara for programmes in Kenya and Uganda. The order has 4,000 sisters working in 42 countries worldwide. Carmel is also involved in an internal governance project which is restructuring their leadership.
Conall O’Caoimh is a founder of Value Added in Africa (VAA). VAA’s mission is to build a channel into European markets for African-made value-added goods. He is a consultant on development, particularly on livelihoods development, trade and strategy to achieve scale in development outcomes. Conall has worked extensively in Development Education, volunteer engagement and training and in the media. He received ministerial appointments to the National Trade Advisory Forum and on the National Consultative Committee on Racism and Interculturalism. Conall has degrees in Economics and Politics and in Liberation Theology; an MA in Development Studies 46 | Structure, Governance and Management
There are four committees of the Board each of which meets three or four times a year to provide specialised advice to the Board.
Board committees are made and programmes of management, the review of up of both Board members development. It also a number of Trócaire country and external members who supported the development programmes and oversight are not Board members. Each of an employee handbook of budgets. committee is chaired by a Board resource. (4) The purpose of the Funding member and comprises people (2) The Audit and Risk & Public Engagement with broad and deep experience Committee assists Committee is to oversee in their specialised area who the Board in fulfilling the development, volunteer their time to advise its responsibilities by implementation and Trócaire. Committee members independently reviewing evaluation of the public also attend an induction financial statements and fundraising and public programme and visit our the effectiveness of our engagement strategies. programmes overseas. internal controls. This In particular the Funding The committees are: Committee monitors the & Public Engagement effectiveness of the external Committee shall satisfy (1) The Organisation and and internal audit functions itself that “the fundraising Human Resources and assists the Board in and public engagement Milka Irungu, Trócaire’s Emergency Committee is responsible fulfilling its responsibilities strategies undertaken by Programme Coordinator, helps to register for giving advice to the Board the organisation support people for assistance at our centre in for determining the nature Somalia. (Photo: Allan Gichigi) and management in relation and extent of the risks it is the achievement of planned to organisational structure, willing to take in achieving its fundraising and public human resources and the strategic objectives. engagement objectives.” allocation of related financial EXTERNAL INDEPENDENT to form an Audit and Risk and nominated two new resources and support to During the last financial year In the 2017/18 financial year BOARD REVIEW Committee. This change was appointments to the Board (Sr the Audit & Risk Committee this committee oversaw the made as part of efforts to ensure Carmel Flynn and Rosemary ensure the objectives of the Trócaire commissioned also reviewed our approach development of a business there was no overlap between McCreery) to fill the positions strategic plan are achieved an external Independent to General Data Protection case and associated strategy the responsibilities of Board of three members retiring at the within the approved budget. Review of its Board which Regulation (GDPR), internal for additional investment in committees and to ensure all June 2017 AGM (Margot Lyons, was completed in April 2017. During the year, the controls specifically related Public Income Fundraising committees were adequately Sr Geraldine Henry and Fionnula This review recommended a Organisation and Human to the receipt of cash, which was recommended resourced. Waldron). range of changes to improve Resources Committee information security and by the committee and the effectiveness of Trócaire’s focused on oversight systems development. approved by the Board. This It is planned that the outstanding governance structures. A TRAINING & INDUCTION of safeguarding as the committee continues to recommendations will be (3) The International number of recommendations implemented during the financial safeguarding strategy oversee the deployment of A comprehensive day of Programmes Advisory for changes were made in year 2018/2019. rolls out into partner this strategy and the return induction is offered to all Committee fulfils an this report. Some of these organisations. The on investment. new board members on their advisory, governance recommendations were appointment to Trócaire to give Committee continued its BOARD RECRUITMENT and supporting role on The Board has two additional implemented immediately. new members an understanding oversight of headcount Trócaire’s international committees, comprised solely For example the structure and The Nominations Committee of of the breadth of Trócaire’s and salary budgets. The facing work. This committee of Board members, which meet content of board meetings was the Board meets on an ad hoc work and a good understanding Committee supported the is responsible for giving on an ad hoc basis as the need changed to give the board more basis when current or upcoming of Trócaire’s core operations. development of a people advice on the development arises. of a focus on strategic oversight Board vacancies are identified. Induction is provided by the strategy and implementation of Trócaire’s international rather than management. The Nominations Committee Executive Leadership Team as plan aligned to the outcomes They are the Nominations programme work and Reporting to Trustees has been is charged with identifying well as other staff members. of the strategic plan. This Committee which is charged monitoring the impact of this enhanced. suitably qualified candidates for The topics covered by induction included the development with identifying suitably qualified work. Board vacancies. Appointments include: Trócaire’s Strategic Plan, of a global HR model, Further changes were made candidates for appointment to are made to ensure that the International Programming, structure and systems. during the financial year During the year the main vacancies on the Board, and the Board has sufficient skill sets Public Engagement, Fundraising The committee supported 2017/2018. For example the areas of focus have been Remuneration Committee to support the governance of & Marketing, Finance, Human Finance and Investment the development of a Institutional Funding, an which sets the compensation Trócaire. During the financial Resources and Risk. succession planning strategy engagement with Irish structure for the Executive Committee has been merged year 2017/2018 the Nominations linked to talent management Aid as a key partner, risk Director. with the Audit Committee Committee identified 48 | Structure, Governance and Management Trócaire Annual Report 2017/18 | 49
The two new board members Meehan (Executive Director) the major risks to which the annual risk-based internal audit partners and relevant third who were recruited in 2017/2018 and Seán Farrell (International charity is exposed and must plan and receive regular updates parties to disclose actual or The proportion of Sr Carmel Flynn and Rosemary Director). be satisfied that control on progress throughout the potential conflicts of interest. McCreery went through this systems are in place to mitigate year with a summary of priority Annual declarations of conflicts Trócaire’s work induction programme on 19th DECISION MAKING exposure in accordance with the findings. of interest are made by Trustees, carried out by the organisation’s risk management October 2017. This induction The Trustees and Board are Board and committee members, programme was also offered approach. Internal Audit is governed by and the Executive Leadership Humanitarian Team the custodians of Trócaire’s the approved Audit Charter to new external members of vision, mission and values; they team. continues to grow. th Risk management at Trócaire and is resourced with two Trócaire committees on 6 approve strategy, structure, October 2017. The attendees is systematic, structured and full-time qualified professional This trend is forecast annual plans and budgets and timely. The risk management accountants and three to four PRINCIPAL RISKS AND were: Denis Murphy (Audit & to continue for the ensure the organisation is framework involves risk appropriately qualified and UNCERTAINTIES Risk Committee), Karen Dillon effective and accountable. The identification, analysis, control, experienced Guest Internal (Audit & Risk Committee) Nicola The top six risks and foreseeable future. Trustees appoint the Executive review and reporting. There are Auditors who volunteer their McCracken (Organisation & uncertainties facing Trócaire are Director of Trócaire and have four levels of risk registers in time to Trócaire. Internal Human Resources Committee) as follows: delegated a range of day-to- place: the organisational level Audit has full scope across all and Karen Gallagher (Trócaire day decision-making powers to risk register, the divisional Trócaire’s geographic locations, focuses on acceptance, which Northern Ireland Board). the Executive Director and the STAFF SECURITY & SAFETY: level risk registers, the country all functions of HQ and Trócaire seeks to build a safe operating Executive Leadership Team. The risk that external events and programme level risk Northern Ireland. environment through consent, BOARD & TRUSTEE FIELD registers and the Trocaire could lead to death, injury, The annual risk-based internal approval and cooperation VISITS RISK MANAGEMENT AND (Northern Ireland) risk register. kidnap or trauma of staff audit plan is approved by from local communities and Board members are afforded Management at each level members or others to whom INTERNAL CONTROL the Audit & Risk Committee authorities. This approach the opportunity to travel ensure that risk analysis is part Trócaire has a duty of care. There is a three line approach in January and prioritises continues to reap dividends and internationally with members of of the decision-making process. to internal control at Trócaire. audits based on risk to the Trócaire staff often work and is highly effective in allowing Trócaire’s Executive Leadership Significant risks are captured The first line is the policies, organisation. Internal audits live in unstable regions and Trócaire’s continued operations team in order to view the through the risk registers and processes and procedures for have either a country or countries. During 2017/2018 in some of the world’s most implementation of Trócaire’s escalated to the next level of the management of operations. thematic focus. During 17/2018 Trócaire staff visited several unstable security environments. programmes in the field and management. The second line is the risk internal audits focusing on high risk areas including Gaza to meet with communities, There is an organisational management processes which The Executive Leadership Team country programmes and (Occupied Palestinian Territories), partners and local Trócaire staff. security manual in place. Each seek to identify gaps and in Trócaire is responsible for internal controls were completed Iraq, Somalia and South Sudan. The last such trip for Board country office has a security exposures. The third line is the developing and executing the for Kenya, Malawi, Guatemala, members took place to Ethiopia The Organisation and Human plan and a visitor briefing for all internal audit function, which organisation’s risk management Somalia, Zimbabwe and Syria. In in June 2016 and the next one is Resources Committee new arrivals. All staff travelling independently monitors these process. The Director of addition the following thematic scheduled for the latter part of monitors this risk. Trócaire has to or working overseas must first two lines. Corporate Services’ role audits were completed: 2018. implemented comprehensive undertake security training encompasses the role of Chief Humanitarian Programme Trócaire has established before travelling. This training Risk Officer who is responsible Oversight, Procurement, Data safety and security management In addition to the Board visits, a comprehensive risk must be refreshed a minimum for improving risk management Protection, Safeguarding and policies to ensure that this Trócaire regularly facilitates management process of once every three years. processes within Trócaire. Security. risk is appropriately managed. international visits for which seeks to ensure the Trócaire has a full-time Global International travel must be members of the Irish Episcopal responsible people in the The Internal Audit function is Security Advisor who advises the approved in advance by the Conference which includes organisation identify, manage INTERNAL AUDIT also responsible for assessing Executive Leadership Team. In Executive Director. Trócaire Trócaire Trustees and Board and mitigate risks in line with The organisation has a dedicated and testing the adequacy each country office the Country has a crisis management plan members. The most recent Trócaire’s risk framework. This Internal Audit Unit comprised of and effectiveness of the risk Director is the security focal and crisis management team. such international bishops’ trip risk management process is qualified and experienced staff management policies, processes point. They are supported by the These were tested in a full day took place in November 2017 an integral part of Trócaire’s who report to the Chair of the and the controls in place to Global Security Advisor, the Head crisis simulation workshop in to Kenya. This visit was led by governance and management Audit & Risk Committee at least mitigate risk, the third line of of Region and the International December 2016. Bishop William Crean (Chairman systems. Risks are regularly four times per annum. defence. Director. The proportion of Trócaire’s work of Trócaire) and it included discussed and assessed at all carried out by the Humanitarian Bishop Denis Brennan (Diocese levels in the organisation up to Internal Audit reports to the Trócaire’s global security strategy CONFLICTS OF INTEREST Team continues to grow. This of Ferns), Bishop Fintan Board and Trustee level. Audit & Risk Committee on the has elements of protection, Monahan (Diocese of Killaloe) adequacy and effectiveness of Trócaire implements an deterrence and acceptance. trend is forecast to continue and Canon Michael McLoughlin The risk management process risk management and internal organisation-wide Conflict The strategy is most heavily for the foreseeable future. (Diocesan Administrator of the begins with the Trustees as controls and provides an annual of Interest policy. This Policy weighted towards acceptance, Humanitarian work by its very Diocese of Galway, Kilmacduagh they have primary responsibility assurance statement to the requires all Trócaire personnel with minor elements of nature often takes place in and Kilfenora). They were for risk management within Audit Committee. The Audit & including Board and committee protection and very little extremely dynamic and unstable accompanied by Éamonn Trócaire. They are aware of Risk Committee approves the members, staff, volunteers, deterrence employed. Trócaire security environments. The trend 50 | Structure, Governance and Management Trócaire Annual Report 2017/18 | 51 in 2017/18 saw humanitarian and safety incidents in which ongoing insurgency. The security CYBER SECURITY: the risk to cyber security in response SAFEGUARDING PEOPLE crises become both more Trócaire staff are involved. Any situation in Somalia is also that a cyber-attack causes to this risk. The IT Operations IN OUR PROGRAMMES & numerous and protracted. staff member who is involved in assessed as unlikely to see the integrity, availability and Team is leading a programme ACTIVITIES: the risk that This is predominantly due to an accident or security incident significant improvements in confidentiality of Trócaire of work to mitigate IT security persons (particularly children political and military unrest and or a ‘near miss’ is required to the short to mid-term. Ethiopia, information to be compromised focusing on systems, protocols, and vulnerable adults) can the negative effects of climate complete an Incident Report Honduras, Kenya, Sierra Leone policies and staff training. or that Trócaire personnel be exploited or abused by change. It is assessed that this Form. This form must be routed and Zimbabwe all saw unrest, During 2017/2018 Trócaire ICT our staff, people working on trend is likely to continue and through management at the for limited periods of time, cannot access systems to implemented a complete backup possibly worsen in the short to country level and forwarded to during 2017/18 due to political perform routine operations. strategy across all Trócaire our behalf, or by our partner mid-term. senior management at Trócaire upheavals. offices which enables data organisations. Ransomware continues to be a head office. recovery in the event of cyber- Trócaire believes that all The coming year 2018/19 will very serious threat. In May 2017 In recognition of this increasing attacks. Trócaire has enabled individuals have the right to one of the most widespread humanitarian workload and in Staff were involved in eight see the roll-out of a number of additional security measures and live with dignity and freedom malware attacks for years an effort to better mitigate the such incidents during the past initiatives designed to continue is currently deploying a cyber- from exploitation and abuse. It affected tens of thousands risks encountered, 2017/18 saw year. This number represents a improving Trócaire’s security security awareness training and is Trócaire’s policy to safeguard of computers in at least 100 the introduction of a process drop when compared to recent systems and procedures. Some education program to improve all individuals who are involved countries. A month later in for travel authorisation to years as detailed in table below. of the initiatives include: awareness of threats, change in or affected by its work from June 2017 another large scale Special Country Programmes One incident resulted in serious behaviours and reduce risks. risks of exploitation and abuse, • The introduction of an ransomware “Petya” hit various or visits to high risk locations physical injury to a third party and to ensure that the behaviour where Trócaire does not have a employee. The other incidents enterprise management users, particularly in Europe. Trócaire actively reviews and system to help standardise of all those working with country office. This process was were all relatively minor in Trócaire exposure to cyber upgrades its IT software, Trócaire meets the appropriate principally introduced to meet nature. All incidents are briefly security operations in the security risk rises as it develops systems and processes to field, capture incidents more standards. This risk is monitored the needs of the Humanitarian outlined in the table below. and is more dependent on mitigate risk relating to IT by Trócaire’s Organisation and Team, but can be utilised by efficiently and contribute information systems to operate management, cyber security The vast majority of Trócaire’s to training and situational Human Resources Committee other staff members as well. The in a more effective and efficient and data protection. It also which is a committee of process now results in a much security risk continues to awareness regarding the manner. At the same time there collaborates with other INGOs security situation in any Trócaire’s Board. more methodical and structured emanate from its overseas is a global proliferation of crime ensuring Trócaire is at the given country approach to assessing the risks operations. The security focused on digital processes. forefront of best practice in the Trócaire has had Child contexts that staff live and Safeguarding Policies for our of and preparing for travel to • Crisis management training sector and achieves value for operate in overseas continue to This risk is monitored by the Ireland and overseas work since high risk countries. The planning at both HQ level for senior money. process has become more be extremely challenging and Audit and Risk Committee. 2006. In May 2016 Trócaire management, and at country Below: Trócaire’s work in Somalia reached dynamic. None of the countries Trócaire has employed an appointed a Global Safeguarding streamlined and standardised. level over 192,000 people last year. Senior management are now Trócaire routinely works in additional IT Engineer dedicated (Photo: Allan Gichigi) Advisor to drive safeguarding presented with a clearer picture could be said to have enjoyed • Implementation of practices across all of Trócaire’s of the risks associated with a a marked improvement in their recommendations resulting work both overseas and in visit and this helps to inform security climate during 2017/18. from an internal audit of Ireland. The safeguarding their decision-making process on Indeed, the security situations in Trócaire’s security processes documents were reviewed to whether to approve travel or not. Democratic Republic of Congo and procedures form the basis of an enhanced In addition, the staff member(s) and South Sudan worsened Safeguarding Architecture for • Formulation of a robust travelling are now in a much slightly during the year and all programme participants sexual violence policy. better position to provide fully appear unlikely to improve in (both adults and children). The informed consent. the near future. The operating Complaints Policy and other context in Somalia continues policies and practices (such as In an effort to continually to be extremely challenging. recruitment, code of conduct, improve its processes and This is principally due to the training) were also reviewed procedures Trócaire seeks to continued weakness of the and updated to reflect specific capture and learn from security central government and an The security contexts safeguarding considerations. that staff live and A suite of tools to support operate in overseas implementation and monitoring 2017/18 2016/17 2015/16 were also developed. continue to be Number of Number of Number of Throughout 2017/2018 the Global Incidents Incidents Incidents extremely challenging Safeguarding Advisor worked and dynamic. with teams overseas and in 8 12 10 Ireland to further strengthen Trócaire’s safeguarding practices with a particular focus on 52 | Structure, Governance and Management Trócaire Annual Report 2017/18 | 53 partner organisations. The PUBLIC INCOME GROWTH: a silver award for Best Direct The increased range and FRAUD, CORRUPTION AND organisations during country Country Director and in- The risk that Trócaire cannot Mail campaign and a gold award size of Trócaire’s institutional BRIBERY: The risk that audits. country Safeguarding Focal maintain or grow diverse for Best Use of Data Insight and donor portfolio brings with it fraud, corruption or bribery Persons received training and Research. a number of risks. Each donor Notwithstanding our control sources of public income at perpetrated by employees, environment the risk cannot guidance from the Global the levels necessary to meet has its own contractual and partners or others may Safeguarding Advisor on on- compliance requirements so a be eliminated as, according the organisation’s mandate and ATTRACT AND MANAGE adversely affect Trócaire’s going implementation and more diverse portfolio places to Transparency International, deliver on its objectives. INSTITUTIONAL FUNDING: monitoring. In 2017/2018 the a greater compliance burden relationship with donors, other Trócaire operates in 16 of the The risk that Trócaire fails to Global Safeguarding Advisor As shown on page 36 under on Trócaire. Trócaire must external stakeholders, or lead 60 most corrupt countries visited six countries providing Goal 8 - Increased Scale and attract and manage increased enhance the capacity of its to financial loss. in the world, including three of the worst five countries. training to Trócaire staff Income - 2017/2018 saw a levels of institutional funding country offices and partners Preventing, detecting, Poor financial management is and partner organisations. high level of donations from from diverse sources. in order to effectively deploy investigating and responding to common in capacity constrained Trócaire expects that all the Irish public. There were Trócaire received more income increased levels of donor funds. fraud, bribery and corruption is environments and where partner organisations share its specific factors that drove from Institutional Funding Most institutional funding for a priority for Trócaire. We adopt poor financial management safeguarding commitments. public income growth during sources in 2017/2018 than in humanitarian programmes are a zero tolerance approach and is prevalent an opportunity to In addition to ensuring that 2017/2018, including high levels any previous financial year. by their nature short-term. As take any allegation seriously. commit fraud arises. Trócaire’s own practice meets of donations by the public While Irish Aid remains Trócaire’s a result the level of this type Trócaire has a number of during Lent 2017 at a time when required standards, Trócaire largest institutional donor, institutional funding income can mitigations in place to reduce All frauds are included on the Trócaire and the Irish Catholic will continue to support Trócaire has been successful be quite volatile. the risk of fraud which are set Fraud Register and are reported partner organisations, through Church were highlighting the in building relationships with out below: Increased scale and complexity to the Audit and Risk Committee workshops and monitoring, as food crisis in East Africa. Trócaire new donors in recent years of funding arrangements periodically. Frauds are also they build capacity in this area. also received a number of long and currently has funding from • Fraud, Corruption and in the past three years has reported to donors in line with all outstanding legacy bequests over 35 institutional donors, in Bribery Policy, Conflict Overall accountability for put increasing pressure on specific donor requirements during the financial year. addition to significant funding of Interest Policy and a ensuring implementation country and HQ personnel, from Caritas and CIDSE member Whistleblowing Policy During 2017, we investigated of appropriate safeguarding There is a risk that 2017/2018 both in building relationships, organisations. This year has seen • Culture of fraud awareness eight (2016: 12) suspected measures (for children and public income levels may be the application processes and increased work in consortia with across the organisation cases of fraud. Approximately adults) lies with the Trustees. result of a once-off spike rather subsequently managing funding. other international agencies and 90% of reported frauds occur The Director of Human than sustained growth. Trócaire’s Some additional staff have • Strong Country Model with increased funding from new within partner organisations Resources is the Chief data indicates that its existing been recruited. For example, robust Internal Controls and sources, including multi-laterals, and arise as a result of theft, Designated Safeguarding Officer supporters are donating more Monitoring and Evaluation Governance arrangements pooled funds, USAID, and misappropriation and conflict who, with the support of the generously as the economic Officers to ensure impact philanthropic organisations. In • External, Internal and Donor of interest. Of the eight cases Global Safeguarding Advisor, is recovery continues. However measurement, Partnership the year there were 80 funding audits investigated in 2017, 75% (2016: responsible for ensuring that there isn’t clear evidence that Accountants to support partners applications prepared, with a • Training provided to staff 60%) were identified as a organisational policy is in place Trócaire has been successful in in financial management and win-rate of 60% and 89 active periodically on fraud result of our monitoring visits in accordance with national and attracting a substantial number efforts are being made to grants managed in the year. with the remaining through our of new supporters. Sustainable prevention and awareness international law, policy and best build additional staff costs into whistleblowing mechanism. public income growth should • Staff are required to sign practice. Each Country Director DfID (the UK Department for grant applications to ensure The investigations uncovered ideally be driven by a mix of up to our Code of Conduct is responsible for ensuring International Development) programme quality and effective a total loss of funds to fraud of increased generosity of existing which includes fraud that the policy is implemented remains a significant donor. grant management. New €17,000 (2016: €56,000). This supporters while securing new in Trócaire’s programme The 2019 UK exit from the EU approval processes have been • Partners are required to have loss of funds represents 0.02% supporters. countries. In 2017/2018 Trócaire causes some uncertainty for implemented to ensure more policies and procedures in of expenditure in the year (2016: became a member of Keeping this funding stream, although oversight and management of This risk is monitored by place to prevent and 0.09%). However, €9,000 of this Children Safe, an organisation in the short to medium term it risks. New guidance and toolkits the Fundraising & Public detect fraud was subsequently recovered of international and national is not expected to decline. The have been developed for new Engagement Committee. • Partners are subject to from partners. A case summary organisations working for Child changing nature of institutional ways of working in consortia Measures put in place to Minimum Requirements for each reported fraud is Safeguarding best practice funding, particularly the shift and work is ongoing to ensure mitigate this risk include for funding, capacity prepared which sets out the key worldwide. of some donors, from aid the organisation is prepared the development of a new assessments and findings and any lessons learned grants to commercial contracts for undertaking commercial Trócaire’s Safeguarding fundraising strategy - Until Love a minimum of for Trócaire. and funding consortia rather contracts. The International Commitment Statement Conquers Fear - and increased two financial monitoring than single entities, makes Programmes Advisory This supports the board and and policies are published investment in fundraising and visits annually to inspect institutional funding significantly Committee now monitors the executive leadership team on Trócaire’s website: marketing. This work during financial records more complex and requires institutional funding portfolio and to continuously monitor and www.trocaire.org/about/ 2017/2018 was recognised at new skills and competencies to institutional funding is now a • Risk based Internal actively monitor fraud risk. safeguarding the 2018 National Fundraising manage effectively and mitigate standing item on the agenda of Audit programme which Awards where Trócaire received greater levels of risk. every meeting. includes visits to partner 54 | Structure, Governance and Management Trócaire Annual Report 2017/18 | 55
TRUSTEES’ RESPONSIBILITIES operating and financial policies formulate standards of best Stakeholder Accountability IN RESPECT OF THE of the undertaking. practice in corporate governance Framework: FINANCIAL STATEMENTS applicable to the Development • We put our values into NGO sector with a view to The Trustees are required to COMMITMENT TO practice, respecting the strengthening the impact and prepare group and company STANDARDS IN FUNDRAISING rights and valuing the quality of Development NGO financial statements that give a PRACTICE contribution of our diverse work and enhancing stakeholder true and fair view of the state stakeholders. Trócaire is committed to the confidence in the sector. of the charity’s affairs and of standards contained within the • We work in partnership its income and expenditure for Statement of Guiding Principles Trócaire adheres to the Dóchas and solidarity with our each financial year. In preparing for Fundraising. The statement Code of Conduct on Images stakeholders and ensure the financial statements, the was developed by the Irish and Messages. This Code that decisions are made Trustees are required to select Charities Tax Reform Group and promotes good practice among by, or as close as possible suitable accounting policies, to exists to provide charities in overseas development and to, those most affected by apply them consistently and to Ireland with a Fundraising Code humanitarian organisations in them. make judgements and estimates of Practice. These standards how they represent the people • We are a transparent that are reasonable and prudent. were consulted on, revised and communities they serve organisation and endeavour The Trustees confirm that they and reissued by the Charities and the situations in which they to collaborate and share have complied with the above Regulator as the Guidelines for work. It requires signatories to information openly with requirements in preparing the Charitable Organisations on only use images and messages our stakeholders. financial statements. Fundraising from the Public. that respectfully and truthfully • We consult and listen to represent the people featured, The Trustees are responsible The purpose of the statement our stakeholders to ensure maintaining their dignity and for keeping proper accounting is to: that our work is informed communicating solidarity. by their active participation records which comply with • Improve the way charities and feedback. accounting standards and in Ireland raise their funds The combination of Trócaire’s which disclose, with reasonable adherence to the Irish • We strive to safeguard all • Promote high levels accuracy at any time, the Development NGOs’ Code our stakeholders against of accountability financial position of the charity. harm, abuse or exploitation and transparency by of Corporate Governance, its To ensure that proper books and and to have complaint organisations fundraising adherence to the Guidelines records are kept, the charity has handling arrangements in from the public for Charitable Organisations employed appropriately qualified on Fundraising from the Public place. • Provide clarity and personnel and has maintained and the fact that Trócaire • We work to ensure that assurances to donors and appropriate computerised publishes its Annual Report in all programmes are of the prospective donors about accounting systems. It is also compliance with the Charity highest quality in line with the organisations they responsible for safeguarding the SORP (Standard of Reporting international standards support. assets of the charity, and hence Practice under FRS102) means and best practice and can for taking reasonable steps for Trócaire meets the standards that Trócaire is considered demonstrate results which the prevention and detection of as set out in the Code of “Triple Locked” by the Charities bring positive changes in fraud and other irregularities. Practice and is fully committed Institute of Ireland. According people’s lives. to working with the relevant to the Charities Institute of The Audit Committee meets • We support our staff to agencies to maintain and Ireland “to actively demonstrate at least three times a year and learn, develop and innovate develop the highest standards openness, transparency and reviews the performance of the and to ensure that learning of fundraising methods in our integrity to its beneficiaries above responsibilities for the from our achievements sector. and donors a charity should Trustees. and our failures allows us be operating to the triple to continually improve. lock standards - transparent SUBSIDIARY UNDERTAKING COMMITMENT TO BEST PRACTICE IN CORPORATE reporting, good fundraising and In order to achieve these governance”. Trócaire (Northern Ireland) GOVERNANCE commitments Trócaire will be (charity number XR 10431) is a responsible, transparent and Trócaire is committed to the subsidiary undertaking. STAKEHOLDER participatory, seeking feedback standards contained within the and learning from our work. Subsidiary undertakings are Irish Development NGOs Code ACCOUNTABILITY those over which Trócaire of Corporate Governance as Trócaire makes the following Right: Olive Nyirambagijimana, 24 with exercises a significant influence, developed by Dóchas. The aim seven commitments to one year old son Kevin in southern being the ability to direct the of the code is to determine and our stakeholders under our Rwanda. (Photo: Alan Whelan/Trócaire) 56 | Structure, Governance and Management Trócaire Annual Report 2017/18 | 57
The results for the year are presented on page 66 in the form of a Consolidated Statement of Financial FINANCIAL Activities in order to comply with the Statement of Recommended Practice (SORP) Accounting and Reporting by Charities preparing their accounts in accordance with the Financial REVIEW Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
A detailed commentary on the financial results reflected in the 2018 Annual Report is set out on the following pages. The key risks facing the organisation are set out in the section on structure, governance and management on page 49.
Rugiatu (9) at her school in northern Sierra Leone. (Photo: Mark Stedman) 58 | Financial Review Trócaire Annual Report 2017/18 | 59
Of the €33m secured from Total Income Governmental organisations, Expenditure €20m of this was from Irish Aid. In addition to the Irish Aid raising charitable Programme Funding scheme, 8%funds activities €75M which accounted for €16m, 8% 92% €63M €66M Trócaire was allocated €4m from €58M Irish Aid towards emergency response. Due to the change in timing of Irish Aid’s Humanitarian Programme Plan funding, two contracts were included in Trócaire’s previous 2018 2017 2016 2015 charitable expenditure between • Expenditure in support financial year to 28 February charitable activities, Goals 1-5 of our programmes and 2017 resulting in a decrease and the cost of raising funds, goal 8partners 8% wassupport €17m, again costs 6% In 2018 we raised €75m, a €12m (19%) increase on the previous of €4m. The Irish Government detailed Goal 8. Our total expenditure at the same level as in continues to be Trócaire’s single financial year. This is our second highest level ever achieved. This was Expenditurefor the year was €71m which the previous year. This largest donor contributing goal 1 6% represents a €7m (11%) goal 5 3% expenditure is primarily 27% of the total organisational mainly due to the emergency response to the crisis in East Africa but increase over 2017 levels. spent in our countries of Income from Donations & Legacies income (38% in 2017). The UK operation and is focused on we also saw an increase in our unrestricted public funding. Government (DFID) contributed This is the highest level of (Public Funding) partner capacity building, €6m directly and an additional expenditure achieved in our goal 2 monitoring, evaluation and €1.7m through PSI as part of a history. 22% The Irish publicM very generously M Trócaire’s other publicM Of the totalM received from ensuring we maximise our €23 €21 €22 €22 consortium. donated €29m. This was a €7m campaigns also performed charitable activities of €46m Charitable activities spend impact. (32%) increase on the previous well. Income received through the was €65m (€60m in 2017) which • €33m has come • Ireland programme: year. Caritas Network increased by represents 92% (94% in 2017) • Restricted donations and from Governmental goal 4 Charitable activities also €4m, primarily as a response to of total expenditure. • Unrestricted public funding legacies were €5m higher organisations, similar to 36% includes expenditure on €6M the East Africa crisis. increased by €2m. The dueM to the public responseM the previousM year • Overseas programme: Goal 5, which is aimed Lenten campaign remains €1to the crisis in East Africa.€3 €1 at creating a greater • €7m came from agencies Contributions from agencies Grants to partner goal 3 19% Trócaire’s largest ongoing awareness of the causes of The charity and our beneficiaries and other groups (an and groups have increased by organisations have fundraising2018 campaign, 2017 2016 2015 world poverty and injustice give special thanks to all of our increase of €2m). €2m. Goal 8 of the strategic increased to €43m. This generating just under €9m. represents 61% of our total and how change can be Unrestricted Public Fundingdonors Restrictedwho have continuedPublic Funding plan aims to ensure a diversified This was an increase of • This was further spend, (59% in 2017). The achieved. The focus of to support our work during funding base as new donors and €1.3m. this goal is that people and challenging economic times. supplemented by €6m contracts were secured during Trustees consider this a from the Caritas network key performance indicator leaders(Investment in Ireland policy) are acting the financial year. Average Rate of Return Income from Charitable (an increase of €4m). and are satisfied with for a just world. Spend Activities of €46m is comprised Commodities donated and the level of grants being under this Goal was €3m 1.0% Income of funds received through distributed to Trócaire were given to partners. In the (€3m in0.7% 2017). 50 Institutional Funding. €133k. These donations in kind last financial year Trócaire0.6% Charitable Activities (Institutional Funding) were medical supplies for our worked with partners in Raising Funds 45 0.2% humanitarian work in Somalia over 20 countries. As in Spend on raising funds of less 40 and Sudan. the previous year Trócaire’s than €6m represented 8% (6% 35 largest programme is in Public income growth and the 2018 2017 in 2017) of total2016 expenditure. For2015 €46M Myanmar. Please see 30 M M ability to attract and manage every €1 invested in fundraising €40 €40 Appendix 1 for a full list and 25 €34M institutional funding are from the general public, spend on all of Trócaire’s Trócaire received €5.10 in return 20 among the principal risks and country programmes. uncertainties facing Trócaire and (€5.00 in 2017). The response 15 Spend on Goal 4, the to the East Africa appeal 2018 2017 2016 2015 further analysis is provided on protection of human dignity 10 contributed to the increased page 52. in Humanitarian crises is rate of return achieved in 2018. 5 Charitable Activities the largest programme A major focus for the year spend with €27m (€25m in 0 EXPENDITURE was developing and launching 2017). 2018 2017 2016 2015 The statement of financial a new fundraising strategy Institutional Funding Unrestricted Public Funding Restricted Public Funding activities shows the analysis of based on strong storytelling to 60 | Financial Review Trócaire Annual Report 2017/18 | 61
goal 8 8% support costs 6% Free Reserves INVESTMENT POLICY AND DEFINED BENEFIT PENSION detailed PERFORMANCE SCHEME DEFICIT As recommended by SORP Expenditure 2015, In order to ensure that The objective of the Investment The valuation of the pension goal 5 3% goal 1 6% the organisation has access Policy is to maintain high scheme at 28 February 2018, to funds it is necessary to liquidity while ensuring for the purposes of FRS102, n Goal 1: Human rights adjust unrestricted reserves by maximum security, meeting showed a funding deficit of and democratic space excluding Fixed Assets and the ethical standards and achieving €2.6m (2017: €2.9m). n Goal 2: Access and use Defined Benefit Pension Liability, the highest possible return goal 2 This deficit represents the of resources as it would be unlikely that the within these limiting factors. difference between the liabilities 22% organisation would be able to Investments will be undertaken n Goal 3: Women’s of the pension fund and the liquidate the fixed assets in a in a manner that seeks to ensure empowerment value of its underlying assets; timely manner. the preservation of capital in n Goal 4: Humanitarian: the overall portfolio, mitigating it does not represent an Free reserves as at 28 February against credit risk, interest rate immediate cash commitment, n Goal 5: People and goal 4 2018 are €20.4m. This is risk, currency risk and country as the cash flow required to leaders in Ireland acting equivalent to 6.5 months of risk. The interest earned is meet the €2.6m deficit relates for a just world 36% planned expenditure for 2018/19. applied to our work. to future pension contributions. n Goal 8: Increased scale This meets the Trustees policy of The valuation of the pension and income goal 3 19% holding free reserves in a range The primary mechanism for scheme’s assets under of 5 to 7 months of planned meeting the objectives is to FRS102 is different from the expenditure. invest in fixed interest deposits triennial actuarial valuation, emphasise the importance of support costs for the year resources, €30m (2017 - €29m) accounts, spreading the total which determines the pension Trócaire’s work. The resulting were €4.2m (€4m in 2017). is held in restricted funds, as Two items of note, which are invested and limiting the amount contributions required to reduce ‘Until Love Conquers Fear’ This represents 6% of our total the funds were donated for included in the unrestricted invested with any individual the deficit. campaign was launched as part expenditure, a similar level to the specific areas and activities. reserves at the 28 February financial institution. These of our Christmas appeal and previous financial year. Unrestricted funds of €19m 2018 are funds allocated to The triennial valuation was last Average Rate of Return (Investment policy) financial institutions are reviewed subsequently the 2018 Lenten (2017: €16m) are held in general programmes in South Sudan by the Audit & Risk Committee completed on the 28 February The chart above shows a more appeal. This new approach aims and designated funds. and Yemen of €1.1m. These and recommended to the 2018 and Trócaire has committed detailed breakdown of our to build a stronger connection 1.0% programmes which were due Board for authorisation. The to an annual contribution of expenditure. • In managing its from the public to our work. to commence in February management of the organisation €250k. 0.7% unrestricted reserves of Launching this new strategy 0.6% 2018 were delayed in order to will determine the level of funds Expenditure on Goals 6, 7 and 9 €19m, the organisation has FRS102 requires that the required an initial investment. ensure maximum programme and the period of investment which are Goals for a stronger an agreed policy of holding pension deficit should be shown However, our expenditure impact was achieved. Both with these institutions taking 0.2% Trócaire are intrinsically part of a contingency reserve in as a reduction in unrestricted on fundraising continues to programmes have now into account the day-to-day cash the Goals 1 to 5 and Goal 8. its Emergency Fund, to funds. generate strong results. commenced. flow requirements. cater for emergencies and The defined benefit pension The total costs2018 set out above in FINANCIAL2017 POSITION AND2016 to allow2015 the organisation The investment return in the scheme is closed to new relation to charitable activities to respond rapidly in RESERVES POLICY current year was in line with entrants and all future benefits and raising funds include such circumstances. The It is Trócaire’s policy It is Trócaire’s policy to maintain expectations having factored in have ceased. support costs. amount in this reserve at a prudent level of reserves to to maintain a prudent the rates currently offered in the 28 February 2018 is €0.5m. market. The Investment Policy Support Costs enable the charity to deliver on level of reserves to is reviewed by the Audit & Risk our commitments and mandate • The reserve in the enable the charity Committee and recommended Support costs are those costs and to ensure that we manage Development Programme to the Board for approval. which cannot be directly financial, governance and Fund stood at €17m. to deliver on our attributed and have been operational risk. An adequate This will be used to fund commitments and allocated in proportion to and working reserve policy programmes overseas to estimated benefits received. provides essential accountability further the objectives of mandate and to ensure These include costs such to our beneficiaries, institutional the organisation. that we manage as finance and logistics, funders, public supporters, and human resources, IT and other stakeholders and assures • The reserve in the General financial, governance communications, premises them that the charity’s activities Fund at the end of the and operational risk. and governance costs. These are sustainable. year amounted to €1.5m, services play a crucial role in of which €1m is invested providing core organisational Trócaire’s available resources at in fixed assets and is not support in the delivery of our the end of the year are €49m available for other use programme globally. Our total (2017 - €45m). Of the available 62 | Financial Review Trócaire Annual Report 2017/18 | 63
KEY PERFORMANCE The above indicators are POLITICAL CONTRIBUTIONS considered satisfactory and in INDICATORS There were no political INDEPENDENT AUDITOR’S REPORT TO THE line with the expectations of the Below are key financial contributions which require trustees. performance indicators which disclosure under the Electoral MEMBERS OF TRÓCAIRE are reported on by management Act 1997. as a measure of performance FINANCIAL RESULTS OF Report on the audit of the consolidated financial statements. and financial strength. SUBSIDIARY AUDITORS In addition to the parent • Grants to partners is a Deloitte Ireland LLP is eligible OPINION ON THE law and FRS 102 “The Financial of the consolidated company, Trócaire holds a measure of how much of and has expressed a willingness CONSOLIDATED FINANCIAL Reporting Standard applicable in financial statements is not subsidiary Trocaire Northern our funds is spent by our to continue in office. the UK and Republic of Ireland” appropriate; or Ireland. In the 2018 year, Trocaire STATEMENTS OF TRÓCAIRE partner organisations in issued by the Financial Reporting Northern Ireland generated an In our opinion the consolidated the field. Trócaire works Council (“the relevant financial • the trustees have income of GBP£10.3m, and financial statements: with a diverse, relevant reporting framework”). not disclosed in the had expenditure of GBP£7.6m Signed on behalf of the consolidated financial portfolio of partners that • give a true and fair view of with total funds of GBP£7.4m. trustees: Basis for opinion statements any identified can deliver innovative and the assets, liabilities and The year-end position of the Eamon Martin material uncertainties that impactful programmes in financial position of the company was satisfactory and William Crean We conducted our audit in may cast significant doubt an accountable manner. charity as at 28 February it is expected to continue in accordance with International about the charity’s ability Date: 27/06/18 2018 and of the incoming Standards on Auditing (Ireland) 2018 2017 operation for the foreseeable to continue to adopt the resources and application future. (ISAs (Ireland)) and applicable going concern basis of of resources for the 61% 59% law. Our responsibilities under accounting for a period financial year then ended; those standards are described of at least twelve months POST BALANCE SHEET and below in the “Auditor’s • Support costs as a from the date when the EVENTS responsibilities for the audit of % of total expenditure • have been properly consolidated financial There have been no events the financial statements” section shows how much of total prepared in accordance statements are authorised subsequent to the year-end that of our report. expenditure is absorbed with the relevant financial for issue. require any adjustment to, or by essential but noncore reporting framework. We are independent of the additional disclosure in, the 2018 Other information activities and functions. charity in accordance with the financial statements. The financial statements we ethical requirements that are The trustees are responsible 2018 2017 have audited comprise: relevant to our audit of the for the other information. The 6% 6% GOING CONCERN • the Consolidated financial statements in Ireland, other information comprises Set out above is a review of Statement of Financial including the Ethical Standard the information included issued by the Irish Auditing in the Trustees’ Report • Return on fundraising Trócaire’s financial performance Activities; and Accounting Supervisory and Consolidated Financial spend is how much we and the general reserves • the Consolidated Balance Authority, and we have fulfilled Statements for the financial year get back for every €1 position as at February 28, Sheet; our other ethical responsibilities ended 28 February 2018, other invested. 2018. Based on the results for the year, the year-end financial in accordance with these than the consolidated financial • the Consolidated Cash 2018 2017 position and the approved 2019 requirements. We believe statements and our auditor’s Flow Statement; that the audit evidence we report thereon. Our opinion €5.10 €5.00 budget, the Trustees believe that the charity has adequate • the Trust Statement of have obtained is sufficient and on the consolidated financial resources to continue in Financial Activities; appropriate to provide a basis for statements does not cover the • Unrestricted reserves is a operational existence for the our opinion. other information and, except to measure in months of how foreseeable future. The Trustees • the Trust Balance Sheet; the extent otherwise explicitly much resources Trócaire Conclusions relating to going stated in our report, we do not believe that there are no material • the Trust Cash Flow has available to draw down concern express any form of assurance uncertainties that call into doubt Statement; on in order to continue Trócaire’s ability to continue in We have nothing to report in conclusion thereon. its work in the event of an operation. Accordingly, Trócaire • the related notes 1 to respect of the following matters In connection with our audit economic downturn. continues to adopt the going 20, including a summary in relation to which ISAs (Ireland) of the consolidated financial concern basis in preparing the of significant accounting 2018 2017 require us to report to you statements, our responsibility financial statements. policies as set out in note where: is to read the other information 1. 6.5 5.5 and, in doing so, consider months months • the trustees’ use of the The relevant financial reporting going concern basis of whether the other information framework that has been applied accounting in preparation is materially inconsistent in their preparation is the Irish with the consolidated 64 | Auditor’s Report Trócaire Annual Report 2017/18 | 65 financial statements or our Auditor’s responsibilities for • Obtain an understanding • Evaluate the overall Matters on which we are knowledge obtained in the the audit of the consolidated of internal control relevant presentation, structure and required to report by exception audit or otherwise appears financial statements to the audit in order to content of the financial to be materially misstated. design audit procedures statements, including Based on the knowledge and If we identify such material Our objectives are to obtain that are appropriate in the disclosures, and understanding of the charity inconsistencies or apparent reasonable assurance the circumstances, but whether the consolidated and its environment obtained material misstatements, we are about whether the financial not for the purpose of financial statements in the course of the audit, we required to determine whether statements as a whole are free expressing an opinion on represent the underlying have not identified material there is a material misstatement from material misstatement, the effectiveness of the transactions and events in misstatements in the trustees’ in the consolidated financial whether due to fraud or error, charity’s internal control. a manner that achieves fair report. and to issue an auditor’s report statements or a material presentation. We have nothing to report in misstatement of the other that includes our opinion. • Evaluate the Reasonable assurance is a appropriateness of • Obtain sufficient respect of the provisions which information. If, based on the require us to report to you if, work we have performed, we high level of assurance, but is accounting policies used appropriate audit not a guarantee that an audit and the reasonableness of evidence regarding the in our opinion, the disclosures conclude that there is a material of directors’ remuneration and misstatement of this other conducted in accordance with accounting estimates and financial information of ISAs (Ireland) will always detect related disclosures made the charitable activities transactions specified by law are information, we are required to not made. report that fact. a material misstatement when by the trustees. within the group to it exists. Misstatements can express an opinion on We have nothing to report in this arise from fraud or error and • Conclude on the the consolidated financial regard. are considered material if, appropriateness of the statements. The group For and on behalf of Deloitte individually or in the aggregate, trustees’ use of the auditor is responsible for Ireland LLP Responsibilities of trustees they could reasonably be going concern basis of the direction, supervision expected to influence the accounting and, based and performance of the Deloitte & Touche House, As explained more fully in on the audit evidence Earlsfort Terrace, Dublin 2 the Trustees’ Responsibilities economic decisions of users group audit. The group taken on the basis of these obtained, whether a auditor remains solely Statement, the trustees are material uncertainty Kevin Sheehan responsible for the preparation financial statements. responsible for the audit exists related to events or opinion. Date: 27/06/18 of the consolidated financial As part of an audit in accordance conditions that may cast statements and for being with ISAs (Ireland), we exercise significant doubt on the We communicate with those satisfied that they give a true professional judgment and charity’s ability to continue charged with governance and fair view, and for such maintain professional scepticism as a going concern. If we regarding, among other matters, internal control as the trustees throughout the audit. We also: conclude that a material the planned scope and timing determine is necessary uncertainty exists, we are of the audit and significant to enable the preparation • Identify and assess required to draw attention audit findings, including any of consolidated financial the risks of material in our auditor’s report to significant deficiencies in statements that are free from misstatement of the the related disclosures internal control that the auditor material misstatement, whether consolidated financial in the consolidated identifies during the audit. due to fraud or error. statements, whether financial statements or, due to fraud or error, This report is made solely to In preparing the consolidated if such disclosures are design and perform audit inadequate, to modify our the Trustees of Trócaire, as a financial statements, the procedures responsive body. Our audit work has been trustees are responsible for opinion. Our conclusions to those risks, and obtain are based on the audit undertaken so that we might assessing the charity’s ability audit evidence that is state to the Trustees those to continue as a going concern, evidence obtained up to sufficient and appropriate the date of the auditor’s matters we are required to state disclosing, as applicable, matters to provide a basis for to them in an auditor’s report related to going concern and report. However, future our opinion. The risk of events or conditions may and for no other purpose. To the using the going concern basis of not detecting a material fullest extent permitted by law, accounting unless the trustees cause the entity (or where misstatement resulting relevant, the group) to we do not accept or assume either intend to liquidate the from fraud is higher responsibility to anyone other charity or to cease operations, or cease to continue as a than for one resulting going concern. than the Trustees of Trócaire as a have no realistic alternative but from error, as fraud may body, for our audit work, for this to do so. involve collusion, forgery, report, or for the opinions we intentional omissions, have formed. misrepresentations, or the override of internal control. 66 | Financial Statements Trócaire Annual Report 2017/18 | 67
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES CONSOLIDATED BALANCE SHEET FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018 AS AT 28 FEBRUARY 2018
Unrestricted Restricted Total Unrestricted Restricted Total 2018 2017 Funds Funds 2018 Funds Funds 2017 Notes €’000 €’000 Notes €’000 €’000 €’000 €’000 €’000 €’000 Income from: FIXED ASSETS Tangible fixed assets 8 867 938 Donations and legacies 3.1 23,030 6,112 29,142 21,182 1,064 22,246 ______Charitable activities 3.2 - 45,803 45,803 - 40,114 40,114 Investment Income 3.3 60 - 60 141 - 141 CURRENT ASSETS Stock 9 324 - TOTAL INCOME 23,090 51,915 75,005 21,323 41,178 62,501 Debtors 10 31,338 31,301 Cash at bank and on short term deposit 11 28,690 24,838 Expenditure on: Short term investments 12 1 1 Raising funds 4 (5,602) (88) (5,690) (4,459) (69) (4,528) ______Charitable activities 5 (14,723) (50,686) (65,409) (18,717) (41,081) (59,798) 60,353 56,140
TOTAL EXPENDITURE (20,325) (50,774) (71,099) (23,176) (41,150) (64,326)
Net income/ CREDITORS (Amounts falling due within one year) 13 (9,560) (8,952) 2,765 1,141 3,906 (1,853) 28 (1,825) (expenditure) ______
Other recognised NET CURRENT ASSETS 50,793 47,188 gains/ (losses):
Exchange (loss)/gain Retirement benefit scheme liability 18 (2,577) (2,869) on consolidation of (189) 9 (180) (549) (16) (565) ______subsidiary Actuarial gain on TOTAL NET ASSETS 49,083 45,257 valuation of retirement 18 100 - 100 305 - 305 ______benefit scheme
FUNDS OF THE CHARITY NET MOVEMENT IN 2,676 1,150 3,826 (2,097) 12 (2,085) Restricted funds 15 30,312 29,162 FUNDS
Unrestricted funds 16 18,771 16,095 Reconciliation of ______funds
Fund Balances at TOTAL FUNDS 49,083 45,257 beginning of ______the financial year 15/16 16,095 29,162 45,257 18,192 29,150 47,342
FUND BALANCES The financial statements were approved by the Board of Trustees on 27/06/18 and signed on its behalf AT END OF THE 14 18,771 30,312 49,083 16,095 29,162 45,257 FINANCIAL YEAR by: Eamon Martin, William Crean
There are no other recognised gains or losses other than those listed above and the net movement in funds for the financial year. All income and expenditure derives from continuing activities. 68 | Financial Statements Trócaire Annual Report 2017/18 | 69
CONSOLIDATED CASH FLOW STATEMENT TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018 FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
2018 2017 Unrestricted Restricted Total Unrestricted Restricted Total Note €’000 €’000 Funds Funds 2018 Funds Funds 2017 Notes €’000 €’000 €’000 €’000 €’000 €’000 Cash flows from operating activities Income from: Donations and Net cash from/(used in) operating activities 17 4,098 (7,635) legacies 3.4 15,739 4,601 20,340 14,642 834 15,476 Charitable activities 3.5 - 42,870 42,870 - 36,922 36,922 Cash flows from investing activities Investment Income 3.6 45 - 45 91 - 91 Purchase of fixed assets (306) (157) Interest received 60 141 TOTAL INCOME 15,784 47,471 63,255 14,733 37,756 52,489 ______
Net cash used in investing activities (246) (16) Expenditure on: ______Raising funds 4 (4,321) (88) (4,409) (3,739) (69) (3,808) Charitable activities 5 (12,248) (45,728) (57,976) (10,561) (36,525) (47,086) Change in cash and cash equivalents in the financial year 3,852 (7,651) ______TOTAL EXPENDITURE (16,569) (45,816) (62,385) (14,300) (36,594) (50,894) Cash and cash equivalents at the beginning of the financial year 24,839 32,490 Net (expenditure)/ income (785) 1,655 870 433 1,162 1,595 ______Cash and cash equivalents at the end of the financial year 28,691 24,839 ______Other recognised gains
Analysis of cash and cash equivalents: Actuarial gain Cash at bank and on short term deposit 28,690 24,838 on valuation of 18 100 - 100 305 - 305 Short term investments 1 1 retirement benefit scheme ______Total cash and cash equivalents 28,691 24,839 ______NET MOVEMENT IN FUNDS (685) 1,655 970 738 1,162 1,900
Reconciliation of funds Fund Balances at beginning of the financial year 15/16 12,193 27,511 39,704 11,455 26,349 37,804
FUND BALANCES AT END OF THE 11,508 29,166 40,674 12,193 27,511 39,704 FINANCIAL YEAR
There are no other recognised gains or losses other than those listed above and the net movement in funds for the financial year. All income and expenditure derives from continuing activities. 70 | Financial Statements Trócaire Annual Report 2017/18 | 71
TRUST BALANCE SHEET TRUST CASH FLOW STATEMENT AS AT 28 FEBRUARY 2018 FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
2018 2017 2018 2017 Notes €’000 €’000 Note €’000 €’000
FIXED ASSETS Cash flows from operating activities Tangible fixed assets 8 615 489 Net cash used in operating activities 17 (588) (3,816) ______615 489 Cash flows from investing activities ______Purchase of fixed assets (306) (157) CURRENT ASSETS Interest received 45 91 Stock 9 324 - ______Debtors 10 32,189 30,020 Net cash used in investing activities (261) (66) Cash at bank and on short term deposit 11 19,622 20,471 Short term investments 12 1 1 ______52,136 50,492 Change in cash and cash equivalents in the financial year (849) (3,882) ______
CREDITORS (Amounts falling due within one year) 13 (9,500) (8,408) Cash and cash equivalents at the beginning of the financial year 20,472 24,354 ______Cash and cash equivalents at the end of the financial year 19,623 20,472 NET CURRENT ASSETS 42,636 42,084 ______
Retirement benefit scheme liability 18 (2,577) (2,869) Analysis of cash and cash equivalents: ______Cash at bank and on short term deposit 19,622 20,471 TOTAL NET ASSETS 40,674 39,704 Short term investments 1 1 ______Total cash and cash equivalents 19,623 20,472 FUNDS OF THE CHARITY ______Restricted funds 15 29,166 27,511 Unrestricted funds 16 11,508 12,193 ______TOTAL FUNDS 40,674 39,704 ______
The financial statements were approved by the Board of Trustees on 27/06/18 and signed on its behalf by: Eamon Martin, William Crean 72 | Financial Statements Trócaire Annual Report 2017/18 | 73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
ACCOUNTING POLICIES
The following accounting PRINCIPLES OF the income is accrued as a Trócaire may be liable for any The Board review the restricted Programme costs: Those policies are applied consistently CONSOLIDATION debtor in the balance sheet. disallowable expenditure- no income funds on an annual basis. costs, excluding grants to in dealing with items which provision or disclosure has been Where restricted public funds partners, which can be directly The consolidated financial are considered material to the Income reflected in the financial made in these accounts for remain unspent three years attributed to our overseas and statements include a 100% charity’s financial statements: statements includes; any such liabilities because the following receipt and the Board Ireland programmes. This consolidation of the financial likelihood is deemed remote and consider that funds exist which expenditure is primarily spent in statements of Trócaire’s • Donations and Legacies: immaterial. are surplus to requirements, an our countries of operation and BASIS OF PREPARATION subsidiary undertaking Trocaire donations from the appropriate transfer can be made is focused on partner capacity (Northern Ireland). The results public, corporates, trusts, The financial statements have Non-monetary donations to unrestricted funds. building, monitoring, evaluation and balance sheet of Trocaire legacies, major donors and been prepared in accordance utilised by the organisation as and ensuring we maximise (Northern Ireland) have been related tax refunds. with the Statement of part of programmes designed, In accordance with FRS102, the our impact. In Ireland our consolidated on a line by line Recommended Practice (SORP) • Charitable Activities; implemented, and managed defined benefit pension scheme programme work is aimed at basis. No separate income Accounting and Reporting Income from institutional by Trócaire are valued and is included with unrestricted creating a greater awareness of and expenditure account of by Charities preparing their donors which includes included in income in the year in funds. the causes of world poverty and the subsidiary undertaking has accounts in accordance with the Governments and other which they are received. These injustice and how change can be been presented, as permitted Financial Reporting Standard agencies and groups. donations are valued at the RESOURCES EXPENDED achieved. applicable in the UK and by paragraph 15.11 of SORP estimated market price at the Republic of Ireland (FRS 102). 2015. Trócaire is availing of the • Deposit income received time of receipt. All expenditure is accounted for Raising Funds exemption under FRS 102 (33.11) during the year. on an accruals basis and has Trócaire is a public benefit entity Related Party Disclosures not to been analysed between cost Costs of raising funds FUND ACCOUNTING as defined by FRS 102. disclose details of transactions Donations and Legacies of raising funds and charitable comprise the costs incurred with companies within the There are two types of funds activities. in fundraising, including the The consolidated financial • Monetary donations from Group. maintained as follows: costs of advertising, producing statements have been prepared the public are recognised Resources expended can be publications, printing and mailing on a going concern basis. The work of the organisation in as income when the Restricted funds represent subcategorised as follows: fundraising material and staff Following the Trustees review of the developing world is carried donations are received. income which can only be Charitable Activities costs. Trócaire’s results for the year, the out through branches of the used for particular purposes as • Legacy income is year-end financial position and Trust located in the countries of specified by donors. Support Costs recognised when Grants to partners: Grants the approved 2019 budget, the operation. All funds held by the confirmation of Unrestricted funds are are charged to the Statement Support costs are those costs Trustees believe that the charity branches are the legal property unconditional entitlement comprised of general funds of Financial Activities when which cannot be directly has adequate resources to of the Trust. Expenditure, assets to the bequest is received. and designated funds. General they have been approved and attributed and have been continue in operational existence and liabilities are included in the funds are expendable at the where a binding commitment allocated in proportion to for the foreseeable future and financial statements of the Trust. • Tax refunds are recognised discretion of the organisation has been made to the partner estimated benefits received. consequently believe there are when all legislative organisation. Grants represent INCOME in furtherance of the objectives These include costs such sufficient resources to manage requirements have been of the charity while designated funds made available to partners as finance and logistics, any operational or financial risks. met and the amounts Income is recognised when the funds are a portion of the and comprise either cash funds human resources, IT and There is no material uncertainty can be measured with organisation becomes legally unrestricted funds that have transferred to the partners or communications, premises and about the ability to continue. reasonable certainty. entitled to the funds, the income been set aside for a particular in kind provision of goods and governance costs. The support can be measured reliably and services procured on their The presentation currency of Charitable Activities purpose. costs have been allocated these financial statements is it is probable the funds will be behalf. Grants that have been as follows, 80% to overseas Euro (€). All amounts in the received. Grants from institutional donors Income is treated as being approved but not yet disbursed programme, 10% to Ireland financial statements have been are recognised when Trócaire general and unrestricted, unless at the balance sheet date are programme, and 10% to raising Where income has been rounded to the nearest €1,000. is legally entitled to the income a donor has specified the carried forward as approved funds. received in advance, it is and is fulfilling the conditions manner in which the donation is partner commitments in the deferred until the conditions are contained in the related funding to be spent, in which case it is balance sheet. met. Where income has not yet agreements which may be time treated as restricted income. been received, but all criteria for or performance related. recognition has been satisfied, 74 | Financial Statements Trócaire Annual Report 2017/18 | 75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
FOREIGN CURRENCIES For defined benefit schemes TANGIBLE FIXED ASSETS AND of purchasing as part of the significant. Creditors in countries Financial assets are recognised the amounts charged to charitable expenditure. of operation comprise accruals when and only when a) the The consolidated financial DEPRECIATION operating surplus are the costs and trade payables arising contractual rights to the cash statements are prepared in Euro. Tangible fixed assets costing arising from employee services from programme activities. flows from the financial asset €3,000 or more are capitalised SHORT TERM INVESTMENTS Transactions in foreign rendered during the financial Funds already received from expire or are settled, b) the and stated in the balance Current asset investments are currencies during the financial year and the cost of plan institutional donors that do not entity transfers to another party sheet at cost less accumulated stated at market value. year are translated at the rate of introductions, benefit changes, meet the criteria for recognition substantially all of the risks and depreciation. Depreciation is settlements and curtailments. as income, are shown in rewards of ownership of the exchange ruling on the date of calculated to write off the cost They are included as part of STOCKS creditors. financial asset, or c) the entity, the transaction. Foreign currency of the asset, other than freehold despite having retained some, balances at the balance sheet staff costs. The net interest property, over its expected Stocks consist of relief supplies but not all, significant risks date are translated at the rate of cost on the net defined benefit useful life at the following annual held pending distribution and FINANCIAL INSTRUMENTS exchange on that date. Any gain liability is charged to income and and rewards of ownership, has rates: are valued at the lower of cost Financial assets and financial or loss arising from a change expenditure. Re-measurement transferred control of the asset and estimated selling price less liabilities are recognised when in exchange rates subsequent comprising actuarial gains and • Leasehold property to another party. costs to sell, equivalent to its the entity becomes a party to to the date of a transaction is losses and the return on scheme Over term of lease net realisable value. the contractual provisions of the Financial liabilities are recognised included in the Statement of assets (excluding amounts • Freehold Property instrument. Financial liabilities only when the obligation Financial Activities. included in net interest on the 2% straight line method DEBTORS are classified according to the specified in the contract is net defined benefit liability) are substance of the contractual discharged, cancelled or expires. Debtors are recognised at PENSIONS recognised immediately in other • Computer installation arrangements entered into. the settlement amount due comprehensive income. 33.3% straight line method Trócaire operates both defined after any discount offered. All financial assets and liabilities OPERATING LEASE contribution and defined benefit Defined benefit schemes are • Fixtures, fittings and Prepayments are valued at are initially measured at Rentals applicable to operating pension schemes. funded, with the assets of equipment the amount prepaid net of any transaction price (including leases where substantially all the the scheme held separately 12.5% reducing balance trade discounts due. Debtors transaction costs), except for benefits and risks of ownership Defined Contribution Scheme from those of the charity, in method and prepayments in countries those financial assets classified remain with the lessor are Pension benefits are funded over separate Trustee administered of operation comprise balances as at fair value through profit charged to the Statement of • Motor vehicles the employees’ period of service funds. Pension scheme assets arising from programme or loss, which are initially Financial Activities (SOFA). 20% reducing balance by way of contributions from are measured at fair value activities. Income recognised measured at fair value (normally method the organisation and employees. and liabilities are measured by the Group from institutional the transaction price excluding Contributions are charged to the on an actuarial basis using the The Board reviews the funders, but not yet received at transaction costs), unless Statement of Financial Activities projected unit credit method. estimates of useful lives and year end, is included in debtors. the arrangement constitutes in the year in which they become Actuarial valuations are obtained residual values regularly, based a financing transaction. If payable. at least triennially and are on prices prevailing at the time CREDITORS an arrangement constitutes updated at each balance sheet of acquisition and based on their a financing transaction, the Defined Benefit Scheme Creditors and provisions are date. estimates. financial asset or financial liability recognised where the Group is measured at the present The defined benefit scheme Other long-term employee The carrying values of tangible has a present obligation value of the future payments was closed to new members benefits are measured at the fixed assets and Freehold resulting from a past event discounted at a market rate of on 1 September 2013. The present value of the benefit property are reviewed that will probably result in the interest for a similar instrument. defined benefit scheme is obligation at the reporting date. annually for impairment in transfer of funds to a third administered by Trustees and periods if events or changes party and the amount due to Financial assets and liabilities is independent of the charity’s in circumstances indicate the settle the obligation can be are only offset in the balance finances. Contributions are paid TAXATION carrying value may not be reliably measured or estimated. sheet when, and only when to the scheme in accordance No charge to corporation recoverable. Creditors and provisions there exists a legally enforceable with the recommendations of taxation arises as the Trust has are normally recognised at right to set off the recognised independent actuaries to enable been granted exemption under Tangible fixed assets held by their settlement amount amounts and the entity intends the Trustees to meet from the Sections 207 and 208 of the overseas locations are not after allowing for any trade either to settle on a net basis, scheme the benefits accruing Taxes Consolidation Act 1997. included in the tangible fixed discounts due and at their or to realise the asset and settle in respect of current and future Irrecoverable value added tax is assets in the balance sheet present value where the time the liability simultaneously. service. expensed as incurred. but expensed at the time value of money is deemed 76 | Financial Statements Trócaire Annual Report 2017/18 | 77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 3. INCOME FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
Unrestricted Restricted Total Unrestricted Restricted Total Group: Funds Funds 2018 Funds Funds 2017 € € € € € € 2. CRITICAL ACCOUNTING JUDGEMENTS 3.1 DONATIONS AND LEGACIES
AND KEY SOURCES OF ESTIMATION UNCERTAINTY General Donations & Legacies 9,725 570 10,295 8,911 117 9,028 Lenten Campaign 8,719 - 8,719 7,431 - 7,431 Special Appeals - 5,542 5,542 - 947 947 In the application of the DEFINED BENEFIT PENSION Committed Giving 4,586 - 4,586 4,840 - 4,840 entity’s accounting policies, SCHEME which are described in note Total Donations and The organisation has a defined 23,030 6,112 29,142 21,182 1,064 22,246 1, the Trustees are required to Legacies benefit pension scheme in make judgements, estimates operation for certain employees. and assumptions about the 3.2 CHARITABLE ACTIVITIES There are estimates with respect carrying amounts of assets and to certain key assumptions Contributions from Governments and similar bodies: liabilities that are not readily made in calculating the actuarial apparent from other sources. Irish Aid - 20,200 20,200 - 23,916 23,916 liability relating to the scheme UK Government, DFID - 6,236 6,236 - 4,617 4,617 The estimates and associated including the discount rate, EU & ECHO - 2,932 2,932 - 1,469 1,469 assumptions are based on inflation and mortality rates, Australian Aid - 2,028 2,028 - 1,336 1,336 historical experience and other as disclosed in note 18 to the UN Agencies - 380 380 - 512 512 factors that are considered to financial statements. US Aid - 295 295 - - - be relevant. Actual results may UN Agencies - goods in kind - 133 133 - 215 215 differ from these estimates. Development Grant Facility - 262 262 364 364 PROVISIONS (World Bank) - The estimates and underlying Trócaire’s activities encompass assumptions are reviewed on - 32,466 32,466 - 32,429 32,429 many foreign territories which an ongoing basis. Revisions can be subject to in-country Contributions from Caritas agencies: to accounting estimates are assessment locally in respect of recognised in the period in which SCIAF (Scotland) - 1,449 1,449 - 646 646 employment taxes and related the estimate is revised if the Cordaid (the Netherlands) - 1,301 1,301 - - - obligations. The Trustees review revision affects only that period Misereor (Germany) - 761 761 - 351 351 in-country potential liabilities or in the period of the revision Caritas Switzerland - 498 498 - - - and where necessary take and future periods if the revision professional advice, and make Secour Catholique (France) - 380 380 - 578 578 affects both current and future appropriate provision where Cafod (England and Wales) - 366 366 - 165 165 periods. required. Caritas New Zealand - 313 313 - 61 61 The following are the critical Caritas Spain - 280 280 - 300 300 judgements and estimations Development & Peace (Canada) - 223 223 - 140 140 that the Board of Trustees have Caritas Belgium - 200 200 - - - made in the process of applying Caritas Korea - 197 197 - - - the organisation’s accounting policies and that have the most Caritas Australia - 135 135 - 81 81 significant effect on the amounts Caritas Italy - 65 65 - 20 20 recognised in the financial Caritas Austria - 50 50 - - - statements: Caritas Taiwan - 33 33 - - - Caritas Germany - 30 30 - 57 57 Caritas France - 20 20 - - - Caritas Japan - 19 19 - 18 18 Caritas Hong Kong - 5 5 - - - Cáritas de Guadalajara (Mexico) - 5 5 - - - Caritas Relief Services (USA) - (11) (11) - 4 4
- 6,319 6,319 - 2,466 2,466 78 | Financial Statements Trócaire Annual Report 2017/18 | 79
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
3.2 CHARITABLE ACTIVITIES (CONTINUED) Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total Funds Funds 2018 Funds Funds 2017 Funds Funds 2018 Funds Funds 2017 € € € € € € € € € € € €
Contributions from agencies and groups: 3.3 INVESTMENT INCOME
PSI (DFID) - 1,695 1,695 - 1,506 1,506 Interest Receivable 60 - 60 141 - 141 TRACE - 986 986 - 709 709 ______Dreams - 539 539 - 894 894 TOTAL INCOME 23,090 51,915 75,005 21,323 41,178 62,501 IRF - 477 477 - - - ______Canadian Food & Grain Bank - 472 472 - 79 79 Comic Relief - 352 352 - 377 377 ACF International - 320 320 - 157 157 Trust: Palladium - 277 277 - - - 3.4 DONATIONS AND LEGACIES Human Dignity Foundation - 274 274 - 330 330 ASB Deutschland - 257 257 - - - Big Lottery Fund - 191 191 - 297 297 Unrestricted Restricted Total Unrestricted Restricted Total Oxfam - 177 177 - 337 337 Funds Funds 2018 Funds Funds 2017 Danish Refugee Council - 147 147 - - - € € € € € € Community Foundation for General Donations & - 106 106 - - 6,880 508 7,388 6,474 109 6,583 Ireland - Legacies Drivers of Food Choice - 101 101 - 149 149 Lenten Campaign 5,379 - 5,379 4,502 - 4,502 State of Guernsey OAC - 91 91 - 49 49 Committed Giving 3,480 - 3,480 3,666 - 3,666 Kenneally Intl Foundation - 85 85 - - - Special Appeals - 4,093 4,093 - 725 725 MSF - 82 82 - - - Bisschoppelijke Vastenaktie (BVA) - 60 60 - - - ______Total Donations and Bank of Ireland - 54 54 - 51 51 15,739 4,601 20,340 14,642 834 15,476 Legacies Porticus Foundation - 51 51 - - - ______Start Fund - 51 51 - - - Ashden Trust - 45 45 - - - Electric Aid - 40 40 - 26 26 3.5 CHARITABLE ACTIVITIES MCA - Honduras - 38 38 - 186 186 Action Aid International - 33 33 - - - Governments and similar - 30,129 30,129 30,605 30,605 Ford Foundation - 23 23 - - - bodies - International Land Coalition - 21 21 - - - Caritas agencies - 6,096 6,096 - 1,823 1,823 Fisher Foundation - 2 2 - 2 2 Agencies and groups - 6,645 6,645 - 4,494 4,494 Fondo ACI - - - - 75 75 ______Danida - - - - 55 55 World Health Organisation - - - - 55 55 Total Charitable Activities - 42,870 42,870 - 36,922 36,922 Direct Aid Programme - - - - 36 36 ______ICRC - - - - 20 20 IFRAH - - - - 14 14 3.6 INVESTMENT INCOME HIRDA - (1) (1) - - - Total Investment Income 45 - 45 91 - 91 Goal - (4) (4) - (98) (98) ______THET (DFID) - (24) (24) - (87) (87) TOTAL INCOME 15,784 47,471 63,255 14733 37,756 52,489 - 7, 01 8 7, 01 8 - 5,219 5,219 ______
Total Charitable Activities - 45,803 45,803 - 40,114 40,114 80 | Financial Statements Trócaire Annual Report 2017/18 | 81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
4. RAISING FUNDS EXPENDITURE 5. CHARITABLE ACTIVITIES EXPENDITURE
Goal 8: Increased scale and income Programme Support Total Total Group: Grants Costs Costs 2018 2017 €’000 €’000 €’000 €’000 €’000 Unrestricted Restricted Total Total Group: Funds Funds 2018 2017 Overseas Programme €’000 €’000 €’000 €’000 Strategic Plan 2016-2020 Goal 1: Human rights and democratic space 2,881 1,283 231 4,395 - Cost of generating donations and legacies 3,850 - 3,850 2,544 Goal 2: Equitable access to & use of resources 10,123 5,280 833 16,236 - Cost of generating Lenten Campaign 1,048 - 1,048 1,160 Goal 3: Women’s empowerment 8,872 4,645 745 14,262 - Cost of generating Special Appeals 3 87 90 66 Goal 4: Protection of dignity in humanitarian crises 19,732 5,534 1,516 26,782 - Cost of generating Committed Giving 281 - 281 354 International projects 530 134 40 704 - Support Costs (Note 6.1) 420 1 421 404 ______5,602 88 5,690 4,528 Strategic Plan 2006-2016 ______Building sustainable livelihoods - - - - 13,045 Promoting gender equality - - - - 6,234 Addressing HIV and AIDS 336 - - 336 3,093 Unrestricted Restricted Total Total Governance and human rights 70 - - 70 10,113 Trust: Funds Funds 2018 2017 Preparing for and responding to emergencies - - - - 24,582 €’000 €’000 €’000 €’000 ______42,544 16,876 3,365 62,785 57,067 Cost of generating donations and legacies 2,611 - 2,611 1,850 Cost of generating Lenten Campaign 1,048 - 1,048 1,160 Ireland Programme Cost of generating Special Appeals 3 87 90 66 Cost of generating Committed Giving 281 - 281 354 Goal 5: People and leaders in Ireland are acting for a just world 203 1,999 422 2,624 2,731 Support Costs (Note 6.1) 378 1 379 378 ______4,321 88 4,409 3,808 42,747 18,875 3,787 65,409 59,798 ______
Raising funds expenditure is comprised of the costs incurred in fundraising. These include the costs of Unrestricted Restricted Total Total Group: advertising, producing publications, printing and mailing fundraising material, staff costs in these areas, Funds Funds 2018 2017 €’000 €’000 €’000 €’000 and an appropriate allocation of support cost.
Overseas programme (Goals 1-4) 12,105 50,682 62,787 57,067 Ireland programme (Goal 5) 2,618 4 2,622 2,731 ______14,723 50,686 65,409 59,798 ______
Expenditure on charitable activities is analysed as shown above.
Further analysis of our overseas programme (by country) can be seen in Appendix 1 and a list of our 50 largest partner grants can be seen in Appendix 2. (Appendices are not covered by the audit report). 82 | Financial Statements Trócaire Annual Report 2017/18 | 83
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
5. CHARITABLE ACTIVITIES EXPENDITURE 6. SUPPORT COSTS (CONTINUED) 6.1 SUPPORT COSTS
Programme Support Total Total Group Trust Trust: Grants Costs Costs 2018 2017 2018 2017 2018 2017 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 Premises and facilities 1,283 1,022 890 7 74 Human resources, learning and development 812 989 811 989
Goals 1-4: Communications and Information technology 866 897 866 897 Finance, procurement and logistics 705 709 705 709 Overseas programme 39,427 13,290 3,034 55,751 44,838 Governance (see note 6.2) 542 428 520 411 ______Goal 5: 4,208 4,045 3,792 3,780 Ireland programme 187 1,659 379 2,225 2,248 ______Support costs which cannot be directly attributed have been allocated in proportion to estimated benefits received and are apportioned as follows: 39,614 14,949 3,413 57,976 47,086 ______• 80% to the Overseas programme (Goals 1-4) • 10% to Ireland programme (Goal 5) • 10% to Raising funds (Goal 8)
Unrestricted Restricted Total Total Group Trust Trust: Funds Funds 2018 2017 Analysed as follows: €’000 €’000 €’000 €’000 2018 2017 2018 2017 €’000 €’000 €’000 €’000 Overseas programme (Goals 1-4) 10,027 45,724 55,751 44,838 Overseas programme (Goals 1-4) 3,366 3,237 3,034 3,024 Ireland programme (Goal 5) 2,221 4 2,225 2,248 Raising funds (Goal 8) 421 404 379 378 ______Ireland programme (Goal 5) 421 404 379 378 12,248 45,728 57,976 47,086 ______4,208 4,045 3,792 3,780 ______
Group Trust 6.2 GOVERNANCE COSTS 2018 2017 2018 2017 €’000 €’000 €’000 €’000 Strategic management and directorate 348 282 342 277 Internal audit 137 93 137 93 Statutory audit fee* 57 53 41 41 ______542 428 520 411 ______
* In the current and prior financial year our auditors provided an external audit service only. 84 | Financial Statements Trócaire Annual Report 2017/18 | 85
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
7. STAFF COSTS 7. STAFF COSTS (CONTINUED)
The average number of employees in Ireland and overseas during the financial year was 465 (2017: 427). The number of employees whose total employee benefits (excluding employer social security contributions and pension costs) was greater than €60,000 is as follows:
The full staff profile is as follows: Group Trust Group Trust 2018 2017 2018 2017 Salary Range 2018 2017 2018 2017 Numbers Numbers Numbers Numbers Numbers Numbers Numbers Numbers Staff engaged in: €60,000 to €70,000 12 9 11 9 Overseas programme 370 332 367 327 €70,001 to €80,000 6 6 6 6 Management and support staff in Ireland 34 36 32 34 €80,001 to €90,000 4 3 4 3 Ireland programme 33 32 28 29 €90,001 to €100,000 1 1 1 1 Raising funds 28 27 24 23 €120,001 to €130,000 1 1 1 1 ______465 427 451 413 24 20 23 20 ______
The aggregate amounts paid to or on behalf of staff are The defined benefit pension scheme was closed to new entrants and accrual of benefits ceased with as follows: Group Trust effect from 1 September 2013. A revised defined contribution scheme was established with standard 2018 2017 2018 2017 employer contributions of 8-14% dependent on age. €’000 €’000 €’000 €’000 The Organisation and Human Resource Committee has the responsibility for approval and monitoring of Salaries 11,778 11,199 11,247 10,417 the organisation’s compensation strategy, its compensation framework, salary management processes Employer’s social security contributions 857 857 819 767 and benchmarking mechanisms to determine pay and benefits including pension arrangements of all Employer’s pension contributions – Defined Contribution staff below the Executive Director. The Executive Leadership Team have set Trócaire’s market reference Scheme 706 703 669 662 point to construct pay ranges and to benchmark remuneration around the median of the market having Severance Costs 82 166 82 120 regard to similar employment in the NGO sector as well as general business/public service sectors Employer’s pension contributions -– Defined Benefit where appropriate. Pay and conditions of the Executive Director are approved by the Remuneration Scheme 58 71 58 71 Committee ______Executive Director, Éamonn Meehan is paid a salary of €118,750 per annum (2017: €118,750), is a 13,481 12,996 12,875 12,037 member of the company pension scheme and has the use of a company car valued at €7,689 (benefit in ______kind).
The Trustees and members of the Board do not receive remuneration for their services as Trustees and The Executive Leadership Team (which is considered key management) remuneration, including members of the Board. Directly incurred expenses are reimbursed, if claimed, and amounted to € nil employers’ social security and pension contributions, is €785,685 (2017: €776,713). (2017: € nil). 86 | Financial Statements Trócaire Annual Report 2017/18 | 87
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
8. FIXED ASSETS 8. FIXED ASSETS (CONTINUED)
Group: Trust: Fixtures, Software Fixtures, Software fittings and Computer Motor Freehold Leasehold fittings and Computer Motor Freehold Leasehold equipment installation vehicles property property Total equipment installation vehicles property property Total €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000 €’000
COST: COST: Balance at 1 March 2017 318 1,852 26 709 6 2,911 Balance at 1 March 2017 117 1,841 26 263 6 2.253 Additions - 306 - - - 306 Additions - 306 - - - 306 Exchange difference (6) - - (16) - (22) Disposals - (128) - - - (128) Disposals - (128) - - - (128) ______Balance at 28 February 2018 117 2,019 26 263 6 2,431 Balance at 28 February 2018 312 2,030 26 693 6 3,067 ______DEPRECIATION: DEPRECIATION: Balance at 1 March 2017 71 1,671 18 - 4 1,764 Balance at 1 March 2017 269 1,681 18 - 5 1,973 Charge for year 5 167 2 5 1 180 Charge for year 8 167 2 10 - 187 Disposals - (128) - - - (128) Impairment - - - 176 - 176 ______Exchange difference (7) - - (1) - (8) Balance at 28 February 2018 76 1,710 20 5 5 1,816 Disposals - (128) - - - (128) ______
Net Book Value ______Balance at 1 March 2017 46 170 8 263 2 489 Balance at 28 February 2018 270 1,720 20 185 5 2,200 ______
Net Book Value Balance at 28 February 2018 41 309 6 258 1 615 Balance at 1 March 2017 49 171 8 709 1 938 ______
Balance at 28 February 2018 42 310 6 508 1 867 ______
• Leasehold property: The property in Cork is held under a 35 year lease dated 1 December 1987. • Freehold properties: Located at 12 Cathedral Street, Dublin 1 and 50 King Street, Belfast. • The impairment during the year relates to the freehold property at 50 King Street, Belfast. 88 | Financial Statements Trócaire Annual Report 2017/18 | 89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
9. STOCK 11. CASH AT BANK Group Trust AND IN HAND Group Trust 2018 2017 2018 2017 €’000 €’000 €’000 €’000 2018 2017 2018 2017 €’000 €’000 €’000 €’000
Funds held in: Value at 28 February 2018 324 - 324 - ______Parent Company 14,887 14,383 14,887 14,383 Trocaire Northern Ireland 9,068 4,367 - - Stocks consist of relief supplies held pending distribution and are valued at the lower of cost and net realisable value. Countries of operation 4,735 6,088 4,735 6,088 ______28,690 24,838 19,622 20,471 10. DEBTORS ______Group Trust 2018 2017 2018 2017 €’000 €’000 €’000 €’000 12. SHORT TERM INVESTMENTS Amounts falling due within one year: Group Trust Amounts due from subsidiary undertaking: 2018 2017 2018 2017 Trocaire (Northern Ireland) - - 1,616 1,040 €’000 €’000 €’000 €’000 Donor income accrued 28,172 28,004 27,572 25,868 Taxation refundable 1,632 1,522 1,507 1,379 Amounts falling due within one year: Other debtors/prepayments 1,073 1,316 1,033 1,299 Market value at 1 March 2017 and at Advertising prepaid 459 421 459 414 28 February 2018 1 1 1 1 Deposit income accrued 2 38 2 20 ______31,338 31,301 32,189 30,020 Historical Cost 1 1 1 1 ______
Included in donor income accrued is an amount of €0.06m (2017: €0.8m) relating to legacies and The short term investments held by Trócaire are Prize Bonds (State Savings) donated by a supporter. €28.1m (2017: €27.2m) due from institutional funders. Included in the institutional funders income accrued is Irish Aid Programme Funding and Irish Aid Humanitarian Programme Funding of €19.6m (2017: €19.5m).
Advertising prepaid of €0.5m (2017: €0.4m) relates to the Lenten fundraising campaign. 90 | Financial Statements Trócaire Annual Report 2017/18 | 91
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
13. CREDITORS 15. RESTRICTED FUNDS
Group Trust Group: 2018 2017 2018 2017 Balance at Balance €’000 €’000 €’000 €’000 beginning Incoming Resources at end of of year Resources Expended year Amounts falling due within one year: €’000 €’000 €’000 €’000 Approved partner commitments 6,395 5,632 6,395 5,632 Accruals 1,941 1,902 1,890 1,651 Institutional funding and donor Donor income deferred 500 492 500 215 advised funds 26,927 46,374 (48,538) 24,763 Trade creditors 483 701 483 695 Specific Funds: Payroll taxes 241 225 232 215 East Africa Appeal - 5,149 (1,404) 3,745 ______Syria and refugee crisis 2,169 155 (520) 1,804 9,560 8,952 9,500 8,408 South Sudan - 116 (116) - ______Yemen 7 38 (45) - Approved partner commitments Nepal 31 2 (33) - Grants are charged to the Statement of Financial Activities when they have been approved and where a Philippines 21 - (21) - binding commitment has been made to the partner organisation. Grants represent funds made available Food Crisis Appeal 7 - (7) - to partners and comprise either cash funds transferred to the partners or in kind provision of goods and Iraq - 2 (2) - services procured on their behalf. Grants that have been approved but not yet disbursed at the balance Occupied Palestinian Territory - 6 (6) - sheet date are carried forward as approved partner commitments in the balance sheet. Rohingya refugee crisis - 39 (39) - Donor income deferred Sierra Leone - 11 (11) - Somalia - 19 (19) - Income is deferred when it is received ahead of income recognition criteria being met. South Asia Floods - 4 (4) - ______29,162 51,915 (50,765) 30,312 14. ANALYSIS OF NET ASSETS ______BETWEEN FUNDS Trust: Institutional funding and donor Unrestricted Restricted Total Total advised funds 25,282 43,379 (43,939) 24,722 Funds Funds 2018 2017 €’000 €’000 €’000 €’000 Specific funds 2,229 4,093 (1,878) 4,444 ______
Net assets, after retirement benefit scheme deficit 17,904 30,312 48,216 44,319 27,511 47,472 (45,817) 29,166 ______Tangible fixed assets 867 - 867 938 The balances on the restricted funds represent amounts received from donors for specified purposes in ______response to specific appeals, which have not been expended at the balance sheet date. The balance on Fund balances at end of financial year 18,771 30,312 49,083 45,257 specified funds will be spent on relief and recovery. ______
In the opinion of the Trustees, sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with the restrictions imposed. The majority of funds are held in short term cash deposits to enable the charity to respond rapidly to unforeseen emergency situations. 92 | Financial Statements Trócaire Annual Report 2017/18 | 93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
16. UNRESTRICTED FUNDS 17. RECONCILIATION OF CHANGES IN RESOURCES
Group: TO CASH FLOW FROM OPERATING ACTIVITIES Balance at beginning Incoming Resources Balance at Group: 2018 2017 of year Resources Expended end of year €’000 €’000 € € € € Adjusted for: Designated Funds: Net income/(expenditure) for the financial year (as per SOFA) 3,906 (1,825) Depreciation 187 74 Development Programme 14,178 23,090 (20,414) 16,854 Impairment of property 176 - Emergency 467 - - 467 Loss on disposal of fixed assets - 83 ______Changes in stock (324) - 14,645 23,090 (20,414) 17,321 Defined Benefit Pension Scheme costs 58 71 Defined Benefit Pension Scheme contribution (250) (250) General Fund 1,450 - - 1,450 Interest and investment income receivable (60) (141) ______Increase in debtors (37) (4,667) 16,095 23,090 (20,414) 18,771 Decrease in creditors 608 (449) ______Exchange Gain (166) (531) Trust: ______Net cash from/(used in) charitable activities 4,098 (7,635) ______Designated Funds 10,743 15,784 (16,469) 10,058
General Fund 1,450 - - 1,450 Trust: 2018 2017 ______€’000 €’000 12,193 15,784 (16,469) 11,508 ______Adjusted for: Net income for the financial year (as per SOFA) 870 1,595 Depreciation 180 62 (a) Development Programme Fund Loss on disposal of fixed assets - 83 The Development Programme Fund is used to support relief and development programmes Change in stock (324) overseas, in partnership with local communities. Defined Benefit Pension Scheme costs 58 71 (b) Emergency Fund Defined Benefit Pension Scheme contribution (250) (250) Net movement with group undertakings (576) (840) The Emergency Fund is set aside out of general income to enable Trócaire to react in the event Interest and investment income receivable (45) (91) of a disaster or emergency for which resources may not be otherwise available. Increase in debtors (1,593) (3,670) Decrease in creditors 1,092 (776) Resources expended include the exchange difference arising on consolidation of subsidiary and the ______actuarial movement on the valuation of the defined benefit pension scheme as per the SOFA. Net cash used in charitable activities (588) (3,816) ______94 | Financial Statements Trócaire Annual Report 2017/18 | 95
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
18. RETIREMENT BENEFIT SCHEMES 18. RETIREMENT BENEFIT SCHEMES
Defined contribution schemes (CONTINUED)
The Trust operates a defined contribution retirement benefit scheme for all qualifying employees of Amounts recognised in the Group and Trust’s Statement of Financial Activities in respect of the defined Trócaire. The total expense charged to the statement of financial activities in the year ended 28 February benefit scheme is as follows: 2018 was €0.7m (2017: €0.7m). 2018 2017 € ’000 € ’000 Defined benefit schemes Net interest cost (58) (71) Following an in-depth review of the defined benefit scheme, the Trustees approved the closure of the ______st scheme to new entrants and that all future benefits would cease. This came into effect on 1 September (58) (71) 2013. A revised defined contribution scheme was established with employer contributions of 8-14% ______dependent on age. Amounts recognised in the Group and Trust’s Other Recognised Gains/Losses with the statement of The most recent actuarial valuations of scheme assets and the present value of the defined benefit financial activities in respect of the defined benefit scheme is as follows: obligation were carried out at 28 February 2018 by Mr Shane Wall, of Joseph G. Byrne Sons Consulting Actuaries Limited, who is a Fellow of the Institute of Actuaries. The present value of the defined benefit 2018 2017 obligation, the related current service cost and past service cost were all measured using the projected € ‘000 € ‘000 unit credit method. Actuarial loss (187) (582) Valuation at Return on plan assets (excluding amounts included in net interest costs) 287 887 2018 2017 ______100 305 Key assumptions used: ______Discount rate 2.00% 2.10% Total gain relating to defined benefit scheme 42 234 Future pension increase for service prior to 1 May 2007 5.00% 5.00% ______Future pension increase for service after 1 May 2007 3.00% 3.00% The amount included in the Group and Trust’s balance sheet arising from the Group and Trust’s Inflation 1.75% 1.75% obligations in respect of its defined benefit retirement benefit schemes is as follows: 2018 2017 Demographic assumptions: € ‘000 € ‘000
The key demographic assumptions used to calculate the retirement benefit liabilities under FRS102 at Present value of defined benefit obligations (14,637) (14,177) the beginning and end of the period were: Fair value of scheme assets 12,060 11,308 Valuation at ______2018 2017 Net liability recognised in the balance sheet (2,577) (2,869) Years Years ______Retiring today: Males 23.3 23.1 Movements in the present value of defined benefit obligations were as follows: Females 24.0 23.9 2018 2017 € ‘000 € ‘000 Retiring in 20 years: At 1 March 14,177 13,619 Males 25.5 25.4 Interest cost 298 299 Females 26.0 25.9 Actuarial loss 187 582 Benefits paid (25) (323)
______At 28 February 14,637 14,177 ______96 | Financial Statements Trócaire Annual Report 2017/18 | 97
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
18. RETIREMENT BENEFIT SCHEMES 20. FINANCIAL INSTRUMENTS (CONTINUED) The carrying value of the group’s financial assets and liabilities are summarised by category below:
Movements in the fair value of scheme assets were as follows: Group: 2018 2017 2018 2017 €’000 €’000 € ‘000 € ‘000 Financial Assets
At 1 March 11,308 10,266 Measured at undiscounted amount receivable Interest income 240 228 Donor income accrued 28,172 28,004 Return on plan assets (excluding amounts included in net interest cost) 287 887 Other debtors 1,073 1,316 Contributions from the employer 250 250 Deposit income accrued 2 38 Benefits paid (25) (323) ______At 28 February 12,060 11,308 Trust: ______2018 2017 €’000 €’000 The analysis of the scheme assets at the balance sheet date was as follows: Financial Assets
2018 2017 Measured at undiscounted amount receivable % % Fair value of assets Donor income accrued 27,572 25,868 Equity instruments 63.3 61.50 Other debtors 522 531 Debt instruments 36.7 38.50 Amounts due from subsidiary undertaking 1,616 1,040 Deposit income accrued 2 20 ______19. LEASE COMMITMENTS
Total future minimum lease payments under non-cancellable operating leases as follows:
2018 2017 €’000 €’000
Leasehold premises:
Within one year 416 416 Between one and five years 1,664 1,664 After five years 2,450 403 ______4,530 2,483 ______98 | Financial Statements Trócaire Annual Report 2017/18 | 99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018 SUPPLEMENTARY INFORMATION (NOT COVERED BY THE INDEPENDENT AUDITOR’S REPORT)
20. FINANCIAL INSTRUMENTS APPENDIX 1 – CHARITABLE EXPENDITURE BY COUNTRY (CONTINUED) FOR THE FINANCIAL YEAR ENDED 28 FEBRUARY 2018
Group: The following table shows the breakdown of charitable expenditure to overseas programme. This includes grants to partners, programme activities and support costs. 2018 2017 €’000 €’000 2018 2017 Financial Liabilities Country €’000 €’000
Measured at undiscounted amount payable 1 Myanmar 7,814 8,347 Approved partner commitments 6,395 5,632 2 Somalia 6,983 4,447 Trade creditors and accruals 2,424 2,604 3 Kenya 6,272 3,413 Donor income deferred 500 418 4 Pakistan 4,976 2,943 ______5 DRC 4,324 2,980 6 Ethiopia 3,986 4,448 7 Zimbabwe 3,715 4,399 Trust: 8 Honduras 3,009 3,053 2018 2017 9 Uganda 2,761 2,650 €’000 €’000 10 Malawi 2,709 3,416 Financial Liabilities 11 Rwanda 2,922 2,376 12 Guatemala 2,752 2,219 Measured at undiscounted amount payable 14 Sierra Leone 2,561 2,039 15 Nicaragua 2,250 2,507 Approved partner commitments 6,395 5,632 Trade creditors and accruals 2,373 2,346 16 Syria 1,717 1,477 Donor income deferred 500 215 13 Sudan 1,571 2,481 ______25 South Sudan 970 1,057 17 Occupied Palestinian Territory 858 556 18 Iraq 79 278 21. SUBSEQUENT EVENTS 19 Yemen 73 - 20 Nepal 49 273 21 India 30 13 There have been no significant events affecting Trócaire since the financial year end. 22 Bangladesh 22 - 23 Philippines 13 810 24 Ukraine 1 - 26 Eritrea - 129 27 Greece - 129 28 Haiti - 95 29 Serbia - 56 30 El Salvador - 6 Other countries and projects 368 470 ______Total overseas programme costs 62,785 57,067 ______100 | Supplementary Information Trócaire Annual Report 2017/18 | 101
APPENDIX 2 – TOP 50 GRANTS TO PARTNERS
Total Grants Partner Name Country €’000
1 Karuna Mission Social Solidarity- KMSS- National Office Myanmar 2,711 31 Caritas Rwanda Rwanda 215
2 Bishop Gassis Relief and Rescue Foundation Sudan 1,026 32 Blue Veins Pakistan 209
3 CAFOD Various 908 33 Metta Development Foundation Myanmar 205
4 Basmeh & Zeitooneh - A Lebanese Association Syria 853 34 NAG Myanmar 202
5 Pak Rural Development Program Pakistan 707 35 LAAR Humanitarian and Development Program Pakistan 199
6 Zimbabwe Lawyers for Human Rights Zimbabwe 633 36 Commission Episopale Justice et Paix Rwanda 195
7 Catholic Diocese of Lodwar Kenya 609 37 Programme Nourriture D´Abord DRC 191
8 Caritas Mahagi DRC 604 38 Pastoral Social San Marcos Guatemala 190
9 Catholic Diocese of Kitui Kenya 423 39 Strengthening Participatory Organization Pakistan 189
10 CRS Somalia 410 40 Solidarite feminine pour la paix et le developpement integral DRC 188
11 The Trust for Democratic Education and Accountability Pakistan 383 41 Friends of Lake Turkana Kenya 183
12 CCDA - Comité Campesino del Altiplano Guatemala 345 42 Club des Volontaires pour l´Appui aux Peuples autochtones DRC 182
13 Agency For Cooperation & Research In Development Ethiopia 341 43 Rwanda Development Organisation Rwanda 182
14 ECS-Apostolic Vicariate of Hosanna Ethiopia 340 44 CADECOM Mangochi Malawi 177
15 Adigrat Diocesan Catholic Secretariat - Mekelle Ethiopia 325 45 Legal Resources Foundation Kenya 170
16 Girl Child Network Kenya 325 46 Asociacion de Organismos No Gubernamentales de Honduras Honduras 169
17 Community Initiative Facilitations Assistance - Ethiopia Ethiopia 321 47 Cooperativa de Ahorro y Crédito Orfilia Vázquez Nicaragua 168
18 Caritas Wamba DRC 304 48 Commission Diocésaine Justice et Paix Bunia DRC 166
19 Aiming Change for Tomorrow (ACT) International Pakistan 292 49 Action for Development Ethiopia 161
20 Sodo Catholic Secretariat Ethiopia 287 50 Bridging Rural Integrated Dev and Grassroot Empowerment Myanmar 161
21 Association for Betterment and Development of Human Beings Pakistan 275
22 SAWA for Development and Aid Syria 274 Total Top 50 Grants to Partners 18,382
23 Relief Society of Tigray Ethiopia 271
24 ADEPES Asociacion de Desarrollo Pespirense Honduras 268 Other Grants to Field Partners 24,162
25 CASM Comision de Accion Social Menonita Honduras 261 Other Grants to Ireland Partners 203 26 Zimbabwe Peace Project Zimbabwe 245
27 Pakistan Village Development Program Pakistan 241 Total Grants to Partners 42,747 28 Diocese of Embu - Ishiara Parish Kenya 237
29 Research and Development Foundation Pakistan 236
30 Metta Development Foundation Myanmar 225 102 | Supplementary Information Trócaire Annual Report 2017/18 | 103
TRUSTEES AND OTHER INFORMATION
TRUSTEES OF TRÓCAIRE: Archbishop Eamon Martin (Chair) Funding & Public Engagement Committee Gerry Culligan (Chair) Archbishop Diarmuid Martin Ronan Morris Archbishop Michael Neary Bronagh Twomey Archbishop Kieran O’Reilly Rachel Power Bishop John Kirby Sandra Lawler Bishop Noel Treanor Bishop William Crean EXECUTIVE LEADERSHIP TEAM:
EXECUTIVE DIRECTOR: Éamonn Meehan Executive Director Éamonn Meehan Director of International Division Sean Farrell Director of Fundraising and Marketing Gwen Dempsey BOARD Bishop William Crean (Chair) Director of Public Engagement John Smith Harry Casey Director of Strategy, Programmes and Advocacy Finola Finnan Éamonn Meehan Director of Human Resources, L & D Joseph Shannon Prof Monica McWilliams Director of Corporate Services Michael Wickham Moriarty Fiona Tierney Chris Queenan Deirdre Kenny PRINCIPAL OFFICE: Maynooth Conall O’Caoimh County Kildare Gerry Culligan Sandra Lawler PRINCIPAL BANKERS: AIB Bank Margot Lyons (Retired Jun 2017) 7/12 Dame Street Bishop Donal McKeown (Retired Nov 2017) Dublin 2 Fionnuala Waldron (Retired Nov 2017) Bank of Ireland Sr. Geraldine Henry (Retired Jun 2017) Lower Baggot Street Rosemary McCreery (App June 2017) Dublin 2 Sr. Carmel Flynn (App Jun 2017)
AUDITORS: Deloitte Ireland LLP BOARD SUB COMMITTEES Deloitte & Touche House Earlsfort Terrace Audit & Risk Committee Chris Queenan (Chair) Declan Kenny Donal Flynn SOLICITOR: Philip Lee Yvonne Hill 7/8 Wilton Terrace Fergal Power Grand Canal Dock Denis Murphy Dublin 2 Karen Dillon
REPUBLIC OF IRELAND Organisation & Human Resource Committee Fiona Tierney (Chair) CHY Number: 5883 Eimear Kenny Charities Regulatory Authority Number: 20009601 Éamonn Meehan Matt Walsh Nicola McCracken NORTHERN IRELAND Company Number: Nl021482 International Programmes Advisory Committee Conall O’Caoimh (Chair) HMRC Number: XR10431 Su-Ming Khoo Charity Commission Number: NIC103321 Sr. Geraldine Henry Mairtin O’ Fainin Rosemary McCreery Deirdre Kenny Nata Duvvury Kevin Farrell