Annual Report and Accounts

ANNUAL REPORT AND ACCOUNTS 2017-2018 CONTENTS Welcome from the Chair and Chief Executive 3 Welcome from the Chair and Chief Executive 4 Trustees’ and Directors’ Annual Report Welcome to Practical Action’s annual report for 2017/18. I’m delighted to present to you this overview of Practical Our work directly helped 2.1 million people in their struggle Action’s work during the 12 months running up to April 25 Strategic Report for better lives in the past year. A further 4 million people 2018. You can also read our financial statements, which 28 Trustees’ Administrative Report benefited indirectly from our activities. This was achieved show our financial activity during the year. thanks to the generosity of our donors and supporters, who 34 Independent Auditor’s Report contributed £32 million to fund our vital work. In our 2016/17 report, we introduced our new strategy and 36 Financial Statements our ambition to make a positive change to the lives of 7.5 In our 2016/17 report, we highlighted the increasing million people over three years. The data in this year’s report importance of working with partners to deliver our work demonstrates that we’re on track to exceed our target. On effectively. You’ll find many examples of collaborative working page 5, you’ll find out how we measured the impact of our throughout this year’s report. On page 19 we explore our work to track its effectiveness and sustainability. Meanwhile, collaboration with UNHCR, the UN’s Refugee Agency. This stories throughout the report show the difference we make new project, supported by the IKEA Foundation, helps through the eyes of the people whose lives we help improve. long-term refugee communities in Jordan and Rwanda find practical and sustainable solutions to getting vital access to We promised further emphasis on energy work in our 2016/17 energy. Our unique experience puts us in a strong position to report, and we went on to spend £7.9 million on our energy help solve some of the problems displaced people face. access programme. You can find out more about this, and what it means to the people benefiting from it, on pages 8 Trust in charities among the UK public has declined following to 11. In line with our strategic plan, our other focus areas recent high-profile safeguarding scandals and investigations were food and agriculture, urban water and waste and disaster into forceful tactics used by some charity fundraisers. risk reduction. Focusing on where we could make the biggest We have strong policies and difference, both in the type of work board oversight in key areas we did and the geographical areas like safeguarding and data we worked in, played a big part protection. These make sure in our success. that we keep the trust of the people and communities we On a recent trip to Zimbabwe, I work with, our supporters and visited a solar energy project that our staff. You can find out has improved many lives. It has more about our approach to opened up sustainable, renewable safeguarding on page 25. energy to farms, schools, clinics and businesses. It has powered Women living in poverty often a whole community. I met my face barriers to discovering colleagues in Zimbabwe who and using the solutions and were responsible for the design knowledge that can improve their lives. This was a challenge and delivery of the project. Our Zimbabwe office is one of we identified in our 2016/17 report. This year, we’ve done our 12 offices around the world. In these offices, our staff more to integrate women’s needs and aspirations into our collaborate with communities, private sector companies, work. We’ve appointed a Global Gender Advisor based in other development organisations and governments to achieve Herma makes liners for cook stoves at a factory in Kisumu. She’s also our Nairobi office to support all countries in ensuring that lasting change. secretary of a local support network for female entrepreneurs. Both gender equality is at the forefront of our activities. And for initiatives are supported by Practical Action. the first time, we’re reporting gender pay global data for our I look forward to leading Practical Action as we continue staff on page 29. to learn from both our successes and the challenges we face. We’ll also learn from others and inspire governments, The Trustees’ and Directors’ Annual and Strategic Reports, together with Practical Action achieved so much last year through the companies, the private sector and donor organisations to work the Trustees’ Administrative Report (being the Companies Act Directors’ application of practical ingenuity, skill at working with together. All with the shared ambition of enabling people Report), comprise the Trustees’ Annual Report for the purposes of the I attended training from communities, sharing knowledge widely and informing and living in poverty to improve their lives. Charities Act 2011 and the Companies Act 2006. Practical Action and decided to inspiring wider change. My thanks to all the donors and join a network to help sell my supporters who made it possible. And my thanks to the Numbers in the Trustees’ and Directors’ Annual and Strategic Report staff whose high level of engagement and skill is evident. products. I have gone very far, I section of this document have been rounded. I’m proud to be Chair of such a valuable, effective and have a child in college through motivated organisation. what I’m doing here. I’ve gained Paul Smith Lomas Chief Executive so many skills from Practical Front cover image: Kalchi, who lives in Bajura in Nepal, tends the crops Action, I’m very happy.” growing on her farm. Our irrigation project improved the productivity of her Herma, an entrepreneur in Kisumu, Kenya land and the quality of its harvest. Helena Molyneux Chair of Trustees

2 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 3 CONTENTS Welcome from the Chair and Chief Executive 3 Welcome from the Chair and Chief Executive 4 Trustees’ and Directors’ Annual Report Welcome to Practical Action’s annual report for 2017/18. I’m delighted to present to you this overview of Practical Our work directly helped 2.1 million people in their struggle Action’s work during the 12 months running up to April 25 Strategic Report for better lives in the past year. A further 4 million people 2018. You can also read our financial statements, which 28 Trustees’ Administrative Report benefited indirectly from our activities. This was achieved show our financial activity during the year. thanks to the generosity of our donors and supporters, who 34 Independent Auditor’s Report contributed £32 million to fund our vital work. In our 2016/17 report, we introduced our new strategy and 36 Financial Statements our ambition to make a positive change to the lives of 7.5 In our 2016/17 report, we highlighted the increasing million people over three years. The data in this year’s report importance of working with partners to deliver our work demonstrates that we’re on track to exceed our target. On effectively. You’ll find many examples of collaborative working page 5, you’ll find out how we measured the impact of our throughout this year’s report. On page 19 we explore our work to track its effectiveness and sustainability. Meanwhile, collaboration with UNHCR, the UN’s Refugee Agency. This stories throughout the report show the difference we make new project, supported by the IKEA Foundation, helps through the eyes of the people whose lives we help improve. long-term refugee communities in Jordan and Rwanda find practical and sustainable solutions to getting vital access to We promised further emphasis on energy work in our 2016/17 energy. Our unique experience puts us in a strong position to report, and we went on to spend £7.9 million on our energy help solve some of the problems displaced people face. access programme. You can find out more about this, and what it means to the people benefiting from it, on pages 8 Trust in charities among the UK public has declined following to 11. In line with our strategic plan, our other focus areas recent high-profile safeguarding scandals and investigations were food and agriculture, urban water and waste and disaster into forceful tactics used by some charity fundraisers. risk reduction. Focusing on where we could make the biggest We have strong policies and difference, both in the type of work board oversight in key areas we did and the geographical areas like safeguarding and data we worked in, played a big part protection. These make sure in our success. that we keep the trust of the people and communities we On a recent trip to Zimbabwe, I work with, our supporters and visited a solar energy project that our staff. You can find out has improved many lives. It has more about our approach to opened up sustainable, renewable safeguarding on page 25. energy to farms, schools, clinics and businesses. It has powered Women living in poverty often a whole community. I met my face barriers to discovering colleagues in Zimbabwe who and using the solutions and were responsible for the design knowledge that can improve their lives. This was a challenge and delivery of the project. Our Zimbabwe office is one of we identified in our 2016/17 report. This year, we’ve done our 12 offices around the world. In these offices, our staff more to integrate women’s needs and aspirations into our collaborate with communities, private sector companies, work. We’ve appointed a Global Gender Advisor based in other development organisations and governments to achieve Herma makes liners for cook stoves at a factory in Kisumu. She’s also our Nairobi office to support all countries in ensuring that lasting change. secretary of a local support network for female entrepreneurs. Both gender equality is at the forefront of our activities. And for initiatives are supported by Practical Action. the first time, we’re reporting gender pay global data for our I look forward to leading Practical Action as we continue staff on page 29. to learn from both our successes and the challenges we face. We’ll also learn from others and inspire governments, The Trustees’ and Directors’ Annual and Strategic Reports, together with Practical Action achieved so much last year through the companies, the private sector and donor organisations to work the Trustees’ Administrative Report (being the Companies Act Directors’ application of practical ingenuity, skill at working with together. All with the shared ambition of enabling people Report), comprise the Trustees’ Annual Report for the purposes of the I attended training from communities, sharing knowledge widely and informing and living in poverty to improve their lives. Charities Act 2011 and the Companies Act 2006. Practical Action and decided to inspiring wider change. My thanks to all the donors and join a network to help sell my supporters who made it possible. And my thanks to the Numbers in the Trustees’ and Directors’ Annual and Strategic Report staff whose high level of engagement and skill is evident. products. I have gone very far, I section of this document have been rounded. I’m proud to be Chair of such a valuable, effective and have a child in college through motivated organisation. what I’m doing here. I’ve gained Paul Smith Lomas Chief Executive so many skills from Practical Front cover image: Kalchi, who lives in Bajura in Nepal, tends the crops Action, I’m very happy.” growing on her farm. Our irrigation project improved the productivity of her Herma, an entrepreneur in Kisumu, Kenya land and the quality of its harvest. Helena Molyneux Chair of Trustees

2 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 3 Trustees’ and Directors’ Annual Report THE YEAR IN NUMBERS

WE ARE PRACTICAL ACTION In 2017-2018 we… £30.1 • Worked on the ground on 118 million projects in 11 countries. Our projects Practical Action is a global innovator. but change-makers across the world focussed on energy access, food and 94p out of every £1 spent on charitable We inspire people to discover and who want to make a lasting difference. agriculture, urban water and waste and spent directly on charitable activities* activities adopt ingenious, practical ways From individuals, to partners, private disaster risk reduction to free themselves from poverty enterprises of all sizes and governments. • Shared practical ‘how-to’ information and disadvantage. Our breadth of expertise and skills gives with individual farmers, entrepreneurs We work alongside communities to us influence beyond our size. Practical and development practitioners 2.1 million people help people find practical solutions Action Consulting is our technical, • Reduced people’s vulnerability to benefitted directly from our work to poverty. Our solutions are human research, knowledge and communication climate change in scale and can be understood, arm. It offers a range of specialist • Unlocked economic opportunities that A further 4 million people More than 35,000 managed and sustained locally. Our services, adding rigour and know-how allowed whole communities to thrive ways of working can be scaled up to our project work. It also provides benefitted indirectly from our work people made a donation to us • Mobilised wider public engagement and transferred to other parts of the expertise to a global development and in the countries where we world. This means that our simple and private sector client list. Practical Action worked and globally There were inventive solutions achieve large-scale Publishing is another well-respected sustainable change. To achieve this long- Practical Action entity. It commissions • Published materials which provided OVER TWO MILLION term change, we inspire people to work new articles and titles in emerging areas practical knowledge, shared global downloads of our together. Not only poor communities, of practice and research. research and stimulated discussion • Inspired students and young people – technical resources 3 million as the decision-makers of tomorrow people visited our websites • Advised development agencies and We supplied books or others through our consulting services digital knowledge to Through this work with Practical Action everything has • Linked with the private sector – changed. Our solar water pump has changed our lives globally, nationally and locally of countries in dramatically. When I saw water coming out from the pump for • Advised governments and policy the first time I cried tears of happiness.” makers through our advocacy efforts. 94% the world Altayeb, a resident of Kweim village, North Darfur, Sudan

156,000 118 Practical Action projects teachers and educators visited our schools pages were active in 11 countries

* We explain what we mean by ‘charitable activities’ on page 39. CALCULATING OUR REACH

In our 2016/17 report, we highlighted work. This offers an accurate insight Kisumu County Council working group. the increasing importance of working into the true impact of our collaborative, We’ve also written policy briefs which with partners to deliver our work holistic approach. inform better decision making. These effectively and maximise its impact. activities mean that many more people This collaborative working was a central Some people who are benefiting directly in the city benefit from the wider impact theme to the new strategy we embarked from our work are Rose and her pupils of the project. on in 2017/18. In order to effectively (page 17). We’ve worked with Rose measure the impact of this approach, to set up a health club at her school. This is the power of indirect impact. we’ve changed the way we calculate Here, she teaches children the benefits The people we collaborate with directly the number of people who benefit of washing their hands frequently. The become our ambassadors and are able from our work. children pass on their knowledge to to increase the impact of our work. their families at home. As a result, their Then, through our policy, consulting, People in the North Darfur village of Kweim at a solar water pump. We distinguish between the people families benefit indirectly from our work. publishing and education work, we It was installed as part of a Practical Action project. we work with directly and those who Meanwhile, we’ve conducted public extend our reach further. benefit from the wider impact of our health campaigns and established the

4 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 5 Trustees’ and Directors’ Annual Report THE YEAR IN NUMBERS

156,000 118 Practical Action projects teachers and educators visited our schools pages were active in 11 countries

* We explain what we mean by ‘charitable activities’ on page 39. CALCULATING OUR REACH

4 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 5 OUR GLOBOAULR R GELOBACHAL REACH

We work on theW ger owuonrdk aocnr otshse Agfrroiucna,d Aascirao sasn dA fLriactain, Asmiae raicnad. LTaotginet hAemr,e wricea’v.e T eongaebthleedr, mweill’vioen esn oafb peledo pmleill tio ns of people to make lasting, pmosiaktiev el acshtianngg,e p toosi tthiveeir clhivaensg. eF rtom th peiort alitvoe sfa. rmFroemrs pino tPaetoru f atrmo secrhso ionl Pcheirlud rteon s icnh tohoel cshluilmdrse nof in the slums of Bangladesh. WeB afoncgulasd oens hw. hWeere f othceurse ’osn g wrehaeteres tt hneereed’s agnrde awtees ct anne emda akned t hwee b cigange msta dkief ftehre nbcieg.g eTshte dsief faerree nthce. These are the areas of energya areccase sosf, efnoeodrg ya nadcc aegsrsic, uflotuodre ,a nudrb aagnr iwcualtteurr ea,n dur wbaans twe aatnedr adnisda swtaesr treis akn rde dduiscatsiotner. risk reduction.

We share our exWpeer isehnacree aonudr experriteisnec eth arnoudg exh pouert iCsoen tshurlotuinggh, oPuurb Clisohnisnugl tainngd, PPruabcltiischainl gA nasnwde Prsr ascetrivciacle As.n sSwhearsin sge rvices. Sharing

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Countries whereCountries where Energy Energy Practical Action Practical worked Action worked Urban water Urban water and sanitation and sanitation

Food and agriculture Food and agriculture

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6 6 Practical Action TrustePesra’ cAnticnaul aAcl Retiopno Trtr usandtee Accs’ Anounnualts 2R0eport17/1 8and Accounts 2017/18 92,0 92,0 OUR GLOBOAULR R GELOBACHAL REACH 00 00

We work on theW ger owuonrdk aocnr otshse Agfrroiucna,d Aascirao sasn dA fLriactain, Asmiae raicnad. LTaotginet hAemr,e wricea’v.e T eongaebthleedr, mweill’vioen esn oafb peledo pmleill tio ns of people to make lasting, pmosiaktiev el acshtianngg,e p toosi tthiveeir clhivaensg. eF rtom th peiort alitvoe sfa. rmFroemrs pino tPaetoru f atrmo secrhso ionl Pcheirlud rteon s icnh tohoel cshluilmdrse nof in the slums of 0 0 0 0 Bangladesh. WeB afoncgulasd oens hw. hWeere f othceurse ’osn g wrehaeteres tt hneereed’s agnrde awtees ct anne emda akned t hwee b cigange msta dkief ftehre nbcieg.g eTshte dsief faerree nthce. These are the 0 0 , , areas of energya areccase sosf, efnoeodrg ya nadcc aegsrsic, uflotuodre ,a nudrb aagnr iwcualtteurr ea,n dur wbaans twe aatnedr adnisda swtaesr treis akn rde dduiscatsiotner. risk reduction. 7 7 7 7 2 2 Asia Asia 0 0 We share our exWpeer isehnacree aonudr experriteisnec eth arnoudg exh pouert iCsoen tshurlotuinggh, oPuurb Clisohnisnugl tainngd, PPruabcltiischainl gA nasnwde Prsr ascetrivciacle As.n sSwhearsin sge rvices. Sharing

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Latin AmericaLatin America 999,000 999,000

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630,000 630,0007 7 6 1,059,000 1,059,0006 Key Key 3,000 3,000 Countries whereCountries where Energy Energy Practical Action Practical worked Action worked 31,000 31,000 Urban water Urban water and sanitation and sanitation

Food and agriculture Food and agriculture

Disaster risk reduction Disaster risk reduction

6 6 Practical Action TrustePesra’ cAnticnaul aAcl Retiopno Trtr usandtee Accs’ Anounnualts 2R0eport17/1 8and APccracountticasl 20Act1io7/1n T8rustePresa’ ctiAncnalu aAl cRtionepor Ttru asnteed Acs’ cAnounntsual 20Re1p7o/rt1 8a nd Accounts 2017/18 7 7 ENERGY ACCESS WHAT WE’VE SUCCESS STORY ACHIEVED 938 million people are without any We focused our efforts on encouraging This year we have… Violet’s successful retail business form of electricity. 3 billion people cook inclusive markets and businesses. with wood and charcoal because they ‘Inclusive’ ventures are those that • Reduced household air pollution by 285,000 people benefiting Violet is married with three grown-up solar lamps, making sustainable, don’t have clean fuel. This exposes give people living in poverty better helping people get improved cooking directly from our work improving access children and lives in the village of renewable light available to the people them to deadly smoke fumes. We opportunities to buy and sell products. stoves and simple smoke hoods. to modern, sustainable energy services Mashaba in Gwanda, Zimbabwe. This in her community. These can reduce indoor smoke area of the country is largely rural and provide practical power in the form of This results in more jobs and affordable “After electrification my income was renewable, locally-sourced, sustainable products and services for poor levels by up to 80% much of it has no electricity supply. A further 490,000 people 50% higher. I am able to stock more energy solutions. These allow people to communities. Our work has put us in • Enabled the installation of solar- benefiting indirectly from our The lack of electricity was a challenge because of electricity and the demand is lift themselves out of poverty. a position to encourage policy shifts powered fridges, cooking stoves, water energy access work for Violet when she left her job in higher. People like cold drinks and I can towards integrated, pro-poor national pumps and small-scale wind energy healthcare to open her own grocery now sell meat and yogurt that I keep in This year, we continued our work planning. This includes support for systems. These enable people to use enabling people to diversify their income shop. She chose to change her career a refrigerator. Now we see much more off-grid energy systems, clean cooking sustainable, renewable forms of energy £7.9 million spent on our streams by training them on how to in the hope that she would be able to people from other places buying things and energy beyond the household. energy access programme make and sell clean fuel for stoves. We • Influenced multiple private sector save some money for her retirement, but from us like the soft drinks and people With our successful track record companies to think harder about helped them to get the electricity they her fledgling business was hampered can buy solar lamps from the energy in these areas of work, we’re well- integrating productive and sustainable needed to expand their businesses. because she was unable to use kiosk. My brother’s son was using one of placed to help governments with their energy access into their work fridges or freezers. them to write assignments.” We made electricity available to more design and delivery. • Implemented KnowledgePoint, people and reduced the smoke they “It was so hard to work without The positive impact that this project a collaboration with WaterAid, made when cooking. This improved their Our goal is to work directly with 2.5m electricity because people wanted has had on Violet’s life isn’t limited to EngineerAid and other third sector health and well-being. people to help them access energy and quality food and drinks. The business improving her shop. It’s also helped allies. This innovative forum provides lift themselves out of poverty by 2020. was very low. Income was very low due her become more connected to her technical guidance to people working in development and aid. to lack of electricity.” community, allowed her to improve her home and given her new ambitions As part of our project to bring for the expansion of her business. sustainable, renewable energy to rural In rural Zimbabwe, women often communities, we collaborated with face restrictions when it comes to local authorities to help install a solar- Sujan’s bakery business was earning their own money and running powered mini-grid in the area. Violet struggling before a micro-hydro businesses. Now, as a successful immediately saw business improve, plant was installed in Gorkha as business owner, Violet is an inspiration with people visiting her shop from part of a Practical Action project. to those around her. increasingly further afield to buy He uses electricity from the plant refrigerated products. She’s also selling to power new equipment.

With the money I have made already I have built a house on the back of the shop. With the cash my plans are to buy a car to ferry the goods and to assist others like senior citizens and participate in the development of the community. Thanks to this project I am more financially secure.”

Violet, a business owner in Mashaba, Zimbabwe

The electricity is much better and much more reliable. As a result, my business has almost tripled in size.” Violet in her grocery shop. Sujan, a baker in Gorkha, Nepal

8 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 9 ENERGY ACCESS WHAT WE’VE SUCCESS STORY ACHIEVED 938 million people are without any We focused our efforts on encouraging This year we have… Violet’s successful retail business form of electricity. 3 billion people cook inclusive markets and businesses. with wood and charcoal because they ‘Inclusive’ ventures are those that • Reduced household air pollution by 285,000 people benefiting Violet is married with three grown-up solar lamps, making sustainable, don’t have clean fuel. This exposes give people living in poverty better helping people get improved cooking directly from our work improving access children and lives in the village of renewable light available to the people them to deadly smoke fumes. We opportunities to buy and sell products. stoves and simple smoke hoods. to modern, sustainable energy services Mashaba in Gwanda, Zimbabwe. This in her community. These can reduce indoor smoke area of the country is largely rural and provide practical power in the form of This results in more jobs and affordable “After electrification my income was renewable, locally-sourced, sustainable products and services for poor levels by up to 80% much of it has no electricity supply. A further 490,000 people 50% higher. I am able to stock more energy solutions. These allow people to communities. Our work has put us in • Enabled the installation of solar- benefiting indirectly from our The lack of electricity was a challenge because of electricity and the demand is lift themselves out of poverty. a position to encourage policy shifts powered fridges, cooking stoves, water energy access work for Violet when she left her job in higher. People like cold drinks and I can towards integrated, pro-poor national pumps and small-scale wind energy healthcare to open her own grocery now sell meat and yogurt that I keep in This year, we continued our work planning. This includes support for systems. These enable people to use enabling people to diversify their income shop. She chose to change her career a refrigerator. Now we see much more off-grid energy systems, clean cooking sustainable, renewable forms of energy £7.9 million spent on our streams by training them on how to in the hope that she would be able to people from other places buying things and energy beyond the household. energy access programme make and sell clean fuel for stoves. We • Influenced multiple private sector save some money for her retirement, but from us like the soft drinks and people With our successful track record companies to think harder about helped them to get the electricity they her fledgling business was hampered can buy solar lamps from the energy in these areas of work, we’re well- integrating productive and sustainable needed to expand their businesses. because she was unable to use kiosk. My brother’s son was using one of placed to help governments with their energy access into their work fridges or freezers. them to write assignments.” We made electricity available to more design and delivery. • Implemented KnowledgePoint, people and reduced the smoke they “It was so hard to work without The positive impact that this project a collaboration with WaterAid, made when cooking. This improved their Our goal is to work directly with 2.5m electricity because people wanted has had on Violet’s life isn’t limited to EngineerAid and other third sector health and well-being. people to help them access energy and quality food and drinks. The business improving her shop. It’s also helped allies. This innovative forum provides lift themselves out of poverty by 2020. was very low. Income was very low due her become more connected to her technical guidance to people working in development and aid. to lack of electricity.” community, allowed her to improve her home and given her new ambitions As part of our project to bring for the expansion of her business. sustainable, renewable energy to rural In rural Zimbabwe, women often communities, we collaborated with face restrictions when it comes to local authorities to help install a solar- Sujan’s bakery business was earning their own money and running powered mini-grid in the area. Violet struggling before a micro-hydro businesses. Now, as a successful immediately saw business improve, plant was installed in Gorkha as business owner, Violet is an inspiration with people visiting her shop from part of a Practical Action project. to those around her. increasingly further afield to buy He uses electricity from the plant refrigerated products. She’s also selling to power new equipment.

Violet, a business owner in Mashaba, Zimbabwe

The electricity is much better and much more reliable. As a result, my business has almost tripled in size.” Violet in her grocery shop. Sujan, a baker in Gorkha, Nepal

8 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 9 SHARING KNOWLEDGE FEATURED PROJECT Making mini grids proﬁtable

A green mini grid is an electricity grid We identified a challenge early on in the production for cows so they make more From darkness to light that runs on a sustainable energy source, Kenya project. Developers were struggling milk. We also developed new household Many rural areas in Zimbabwe and such as solar. It operates independently to establish a financially viable model and small business financial services Malawi are, like the area Violet lives from the country’s primary, national because they couldn’t sell all the energy products. These enabled people to in, deprived and isolated. They’re not electricity grid. As well as leading on the they generated. Meanwhile, community buy new equipment and set up small connected to the national electricity creation of the Green Mini Grid facility members wanted to use more energy but businesses. More widely, due to our grid and are unlikely to ever be o in Kenya, we’re influential in the sector didn’t have the money or skills to do so. successful policy work, the tools we ge l n connected because they are so remote. a more generally. We work directly with We worked with communities to develop helped create and develop are now being an t

S communities and developers as well as business plans that made good use of the standardised across Kenya. An example Even if they were connected, it would o d

r contributing to wider strategic thinking. new energy. These included chilling milk of how our holistic approach delivers

cost too much for most people living a o

d to improve prices and reduce spoilage. large-scale impact. E

there to use the electricity. We took / n o

i Another strategy was mechanising feed a fresh look at this problem. We t c A

identified a solution that was affordable l and offered sustainable renewable ic a Pr ac t energy to the people who needed it. ©

Violet is one of many people in INNOVATING THROUGH TECHNOLOGY rural Zimbabwe and Malawi who has benefited from our Sustainable Safer cooking saves lives Energy for Rural Communities project. This project is supported by the Many people in the developing world find firewood they rely on for fuel exposes One of the ways we’ve helped people European Union, the OPEC Fund for it difficult to collect enough fuel to cook them and their children to deadly smoke to overcome these challenges is by Poor People’s Energy Outlook International Development and the with. Gathering fuel is generally done fumes. Household smoke kills more introducing more fuel-efficient stoves. 2017 looks at the mix of Global Environment Facility Small by women and it’s fraught with dangers. people globally than tuberculosis, AIDS These are both affordable and easy to technologies and funding needed Grants Programme. Our partners Women risk being attacked and even and malaria combined. use. They burn less wood, which means to achieve energy goals. are SNV Netherlands Development raped during their search for firewood. fewer risky trips for firewood and less Organisation, Debane Trust in Aside from this immediate danger, the dangerous smoke during cooking. We’ve Zimbabwe, Hivos, Churches Action in also developed low-smoke briquettes, Relief and Development (CARD) and which are easy to make and store. We Environment Africa in Malawi. The INSPIRING DEBATE Damaris makes low-cost, low- show people how to make them from project began in 2015 and is due smoke cooking fuel out of locally- affordable, locally-available materials. As to end in 2019, with a total amount Poor People’s Energy Outlook available materials after receiving well as making briquettes for their own of £5.6 million being spent. A new training from Practical Action. use, people can make money by selling solar mini-grid is powering irrigation Our flagship publication, Poor People’s them. Thousands of families in Sudan, systems that help farmers survive Energy Outlook, engages people and Kenya, India and Nepal now have clean droughts, grow food and sell surplus organisations. It influences policies The energy access sector is in dire kitchens, clean lungs and more money to crops to earn a living. Alongside this that improve the lives of people without spend on essentials. project’s successes, there have also electricity. This ground-breaking resource need of this kind of been technical challenges, caused is the result of collaboration between empirical analysis.” by the size of the mini-grid and the our consulting, publishing and policy Dr Sebastian Groh, North South cutting-edge nature of the technology teams. The 2017 edition was funded University, Bangladesh used. The biggest of these lies in by a £218,000 project fund from the balancing the amount of energy Department for International Development. generated with the amount of energy It considers how best to finance national integrated energy plans for Bangladesh, recently, we were asked to take part in a that’s used. These challenges have At first, I was an installer of caused delays in the delivery of parts Kenya and Togo. The report looks at the Government-supported working group on mix of technologies and funding needed integrated energy planning. Participants stoves. Now I am making my of the project, but we’re committed to own briquettes. I am making overcoming these. to achieve national and global goals. It included the World Bank and other global also explores the roles of civil society and authorities. It opened up discussions with my own money and I’m feeling the private and public sectors in making the global energy and services group, Engie. very empowered.” this a reality. They asked for our advice on how to make Damaris, an entrepreneur in Kisumu, Kenya energy accessible and affordable to people This series of publications, along with the living in poverty. supporting policy briefs, has influenced decision-making at the highest level. Most

10 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 11 SHARING KNOWLEDGE FEATURED PROJECT Making mini grids proﬁtable

S communities and developers as well as business plans that made good use of the standardised across Kenya. An example Even if they were connected, it would o d r contributing to wider strategic thinking. new energy. These included chilling milk of how our holistic approach delivers cost too much for most people living a o d to improve prices and reduce spoilage. large-scale impact. E there to use the electricity. We took / n o i Another strategy was mechanising feed a fresh look at this problem. We t c A identified a solution that was affordable l and offered sustainable renewable ic a Pr ac t energy to the people who needed it. ©

10 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 11 FOOD AND AGRICULTURE WHAT WE’VE SUCCESS STORY ACHIEVED 800 million people are undernourished, a consortium of organisations, called methods, helping them to protect Nara Bahadur’s bountiful harvest despite an increase in global food Access to Capital for Rural Enterprise. their own future. production. Most of the world’s hungry The consortium’s intention was to 996,000 people benefiting Nara Bahadur is in his late forties and back. Doing this menial work for so live in rural households. The changing match small businesses in poor rural directly from our work to improve the lives with his wife and children in Jumla many years away from his family also climate makes people even more areas with international investors. We This year we have… productivity of their land or livestock in the Karnali region of Nepal, one of took its toll on his mental health. the remotest parts of the country. vulnerable. Farmers struggle to cope in collaborated with small businesses • combined agroecology and our We reintroduced affordable, traditional the face of severe droughts and other to help them create business plans knowledge of markets to create A further 643,000 people Nara Bahadur found it impossible to seed varieties into the local area. extreme weather events. and investment bids. We worked with opportunities for people. They’ve been benefiting indirectly from our food and make a living by growing vegetables on We trained Nara Bahadur on simple investors, highlighting the advantages of helped to use natural resources in We’ve implemented solutions that agriculture work his farm. He wasn’t able to afford good irrigation techniques he could use investing in these fledgling businesses. a more productive and sustainable combine traditional agriculture practices quality seeds and he didn’t know how to ensure a bountiful and nutritious Unfortunately, the complexity and way and to get a better price for with advances in technology and to store his harvest so that it would stay harvest. We provided training on storage volatility of the economies in the their surplus food £11.8 million spent on science. We use innovative approaches fresh. The produce he took to market methods, which helped prevent his countries we worked in, which included our food and agriculture programme • worked with smallholder farmers, the was low-quality and didn’t raise enough produce from being spoiled by the that maximise harvests while protecting Sudan and Zimbabwe, meant that private sector and the Government to money to pay for life’s necessities. elements or pests. Nara Bahadur is the soil and other natural resources. business plans were tricky and time introduce new ways of working. These now able to support his family through This approach is often referred to as consuming to create and investors were To provide for his family, Nara Bahadur help people to use renewable energy vegetable farming. ‘agroecology’. Our work also enabled reticent about investing. After learning technologies such as solar-powered spent several years working across the people to use renewable energy and lessons and forging partnerships that border in India as a porter. The job was The fresh fruits and vegetables that Nara data about the weather. This enabled irrigation, which can dramatically will be beneficial in future, the project increase the size of their harvests hard work, poorly paid and he had to Bahadur sells at market are improving them to cope better with the changing ended in 2017/18 without securing any spend long periods of time away from the health of his community. They’re climate and improve their resilience to investment deals. • collaborated with communities to give his home and loved ones. also stimulating the local economy. droughts and floods. smallholder farmers the information In the meantime, we’re working with and knowledge they need to farm their Our goal is to work directly with 2.5m “I didn’t like the way I was treated by the local markets and authorities that Alongside our successes, there has been people on sustainable agriculture land and adapt to the changing climate my employers in India – they didn’t disappointment. In 2015 we joined Nara Bahadur deals with to promote • Influenced national policy. Our respect me. The work was hard. I had to the spread of these practices and approach to increasing the harvests carry heavy items on my back to multi- drive inclusive and sustainable growth. I’m excited to be part of the training programme on better of farms on sandbars has been storey buildings.” At last, Nara Bahadur is able to look included in the Bangladesh National methods of farming introduced by Practical Action. It has Nara Bahadur has permanent scarring forward to the future. He even has Agriculture Policy 2018. allowed me to become more independent financially.” on his forehead from the straps he had ambitions to expand his business by to use to secure the heavy loads on his leasing more land where he will grow Anastacia, a farmer in Gwanda, Zimbabwe vegetables to sell.

I could barely afford salt and oil for my family. I am grateful because I can now afford education and good food. I am now able to manage nutritious food and vegetables for my family.”

Nara Bahadur, a farmer in Jumla, Nepal

Anastacia presents some of her farm’s surplus crop, which she plans to sell at a local market. Nara Bahadur on his vegetable farm.

12 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 13 FOOD AND AGRICULTURE WHAT WE’VE SUCCESS STORY ACHIEVED 800 million people are undernourished, a consortium of organisations, called methods, helping them to protect Nara Bahadur’s bountiful harvest despite an increase in global food Access to Capital for Rural Enterprise. their own future. production. Most of the world’s hungry The consortium’s intention was to 996,000 people benefiting Nara Bahadur is in his late forties and back. Doing this menial work for so live in rural households. The changing match small businesses in poor rural directly from our work to improve the lives with his wife and children in Jumla many years away from his family also climate makes people even more areas with international investors. We This year we have… productivity of their land or livestock in the Karnali region of Nepal, one of took its toll on his mental health. the remotest parts of the country. vulnerable. Farmers struggle to cope in collaborated with small businesses • combined agroecology and our We reintroduced affordable, traditional the face of severe droughts and other to help them create business plans knowledge of markets to create A further 643,000 people Nara Bahadur found it impossible to seed varieties into the local area. extreme weather events. and investment bids. We worked with opportunities for people. They’ve been benefiting indirectly from our food and make a living by growing vegetables on We trained Nara Bahadur on simple investors, highlighting the advantages of helped to use natural resources in We’ve implemented solutions that agriculture work his farm. He wasn’t able to afford good irrigation techniques he could use investing in these fledgling businesses. a more productive and sustainable combine traditional agriculture practices quality seeds and he didn’t know how to ensure a bountiful and nutritious Unfortunately, the complexity and way and to get a better price for with advances in technology and to store his harvest so that it would stay harvest. We provided training on storage volatility of the economies in the their surplus food £11.8 million spent on science. We use innovative approaches fresh. The produce he took to market methods, which helped prevent his countries we worked in, which included our food and agriculture programme • worked with smallholder farmers, the was low-quality and didn’t raise enough produce from being spoiled by the that maximise harvests while protecting Sudan and Zimbabwe, meant that private sector and the Government to money to pay for life’s necessities. elements or pests. Nara Bahadur is the soil and other natural resources. business plans were tricky and time introduce new ways of working. These now able to support his family through This approach is often referred to as consuming to create and investors were To provide for his family, Nara Bahadur help people to use renewable energy vegetable farming. ‘agroecology’. Our work also enabled reticent about investing. After learning technologies such as solar-powered spent several years working across the people to use renewable energy and lessons and forging partnerships that border in India as a porter. The job was The fresh fruits and vegetables that Nara data about the weather. This enabled irrigation, which can dramatically will be beneficial in future, the project increase the size of their harvests hard work, poorly paid and he had to Bahadur sells at market are improving them to cope better with the changing ended in 2017/18 without securing any spend long periods of time away from the health of his community. They’re climate and improve their resilience to investment deals. • collaborated with communities to give his home and loved ones. also stimulating the local economy. droughts and floods. smallholder farmers the information In the meantime, we’re working with and knowledge they need to farm their Our goal is to work directly with 2.5m “I didn’t like the way I was treated by the local markets and authorities that Alongside our successes, there has been people on sustainable agriculture land and adapt to the changing climate my employers in India – they didn’t disappointment. In 2015 we joined Nara Bahadur deals with to promote • Influenced national policy. Our respect me. The work was hard. I had to the spread of these practices and approach to increasing the harvests carry heavy items on my back to multi- drive inclusive and sustainable growth. I’m excited to be part of the training programme on better of farms on sandbars has been storey buildings.” At last, Nara Bahadur is able to look included in the Bangladesh National methods of farming introduced by Practical Action. It has Nara Bahadur has permanent scarring forward to the future. He even has Agriculture Policy 2018. allowed me to become more independent financially.” on his forehead from the straps he had ambitions to expand his business by to use to secure the heavy loads on his leasing more land where he will grow Anastacia, a farmer in Gwanda, Zimbabwe vegetables to sell.

I could barely afford salt and oil for my family. I am grateful because I can now afford education and good food. I am now able to manage nutritious food and vegetables for my family.”

Nara Bahadur, a farmer in Jumla, Nepal

Anastacia presents some of her farm’s surplus crop, which she plans to sell at a local market. Nara Bahadur on his vegetable farm.

12 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 13 FEATURED PROJECT SHARING KNOWLEDGE CONSULTING Bigger harvests for smallholder farmers FOR CHANGE Knowledge is power

In some of the poorest districts of Nepal, may be of low quality and not well suited to (SEDA) Nepal. The project started in 2016 Many farmers in poorer regions get by opportunities and financial services. We smallholder farmers struggle to produce local conditions. and is due to continue until 2019. As part New irrigation technology on very little money and are vulnerable base our advice on research and our enough food to feed their families. of this project, we’ve upgraded water mills in the pipeline to unforeseen setbacks. They need to be experience of small-scale agricultural Isolation, poor infrastructure and erratic The European Union and Jersey Overseas to extract more water for consumption, able to improve their farming methods practice. We also draw on the expertise rainfall make the situation worse. Most Aid are supporting us with funding to help crops and livestock. We’ve reintroduced In parts of Rwanda and Kenya, conveniently and without having to of other trusted organisations. This open people are dependent on farming. Many address these problems. The project is traditional seed varieties that suit the local a lack of good irrigation systems resort to taking out large loans. In South sharing of knowledge using an accessible men, like Nara Bahadur, migrate to India called BICAS, which stands for Building environment. They also produce a bountiful means that crops often don’t get America, online resources and mobile channel is particularly valuable to for work, leaving women to manage families Inclusive and Sustainable Growth Capacity and valuable harvest. We’ve trained existing enough water to grow properly. We phone applications are a good way of female farmers and those who belong and farms on their own. Good seeds are of Civil Society Organisations in Agriculture small businesses so they can expand have a wealth of experience when it supporting farmers. This is because many to minority ethnic groups. These are the foundation of a successful harvest, but and Forest Sectors. Our partners in the and diversify into the buying and selling comes to approaching this kind of of them already use the internet and own people who find it more difficult than they are often not available to smallholder project are Saipal Development Society, of these seeds. This improves their own problem with innovative solutions. mobile phones or smartphones. others to get hold of the knowledge they farmers. Instead, farmers must buy Human Resource Centre and Sustainable prospects and those of the farmers they Our knowledge puts us in strong need to be successful. For these people, expensive seeds from further afield. These and Equitable Development Academy work alongside. position to work in partnership with Through Practical Answers, our our information portals are a powerful other experts to improve things for grassroots knowledge service, we source of partnerships and knowledge. struggling farmers. coordinate six sector-specific agricultural They also complement our project Dinanath with his family, outside their small business, Rishi Veterinary Farm. information portals in South America. work on the ground. This year, we began a partnership On these portals, we collate trustworthy Due to the new seed business with Azur Innovation, a research, resources about things like cooperative development and consultancy my customer base has company. They specialise increased drastically by sixty in technology creation and percent and my profit has risen management. They also share our Rosalba maintains the cocoa dryer by more than twenty per cent. passion for innovative solutions. as part of a project supported by Farmers were reluctant to use Together, we consulted and surveyed Practical Action. the new seeds at first, but when manufacturers, distributors, they saw the benefits they financiers and customers. We were interested.” identified a pump engine that uses the expansion and contraction of gas Dinanath, a business owner in to drive a piston, and found a variant Nawalparasi, Nepal that is extremely reliable. We’re now working with Azur Innovation to build a prototype. This solution has the potential to increase the amount of water getting to acres of crops in poor areas of Kenya and Rwanda. This will result in more bountiful harvests and a brighter future for people who are reliant on farming for EDUCATION their food and livelihoods. Teaching children about global food challenges

To continue to combat global poverty, to fill the need for materials around Thank you for sending through we need to make sure that the next food security and provenance. We your new resources, they look generation has the desire and the skills developed a set of materials based great, clear, user-friendly, and to continue our work. We work with on our agriculture work that explores very well presented. I would be schools across the UK to help young how people in different countries very happy to signpost these on people see how innovative solutions grow and buy food. These were our website and in our teacher can ease poverty and change lives. immediately recommended and shared by influential teachers and educators. training sessions.” Last year, a new GCSE subject called The Food Teachers Centre, a UK We want to demonstrate that as groups of women, we can Food Preparation and Nutrition was network of over 4,000 teachers, went Gill Taylor, a design and technology take our business forward. Partnership should be where introduced in the United Kingdom. on to recommend our materials in their subject advisor in Cambridge, UK women work in more areas.” We recognised this as an opportunity training programme. Rosalba, member of the Association of Entrepreneurial Women of Tucupi, Bolivia

14 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 15 FEATURED PROJECT SHARING KNOWLEDGE CONSULTING Bigger harvests for smallholder farmers FOR CHANGE Knowledge is power

14 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 15 URBAN WATER AND WASTE WHAT WE’VE SUCCESS STORY ACHIEVED Karen, outside the community Rose’s school health club centre where she teaches people benefiting Rose has been teaching at Pandpieri clean water or adequate sanitation, her community about good 141,000 directly from our work to improve Primary in Obungu, a slum in the so increasing their awareness of hygiene practices. access to clean water, sanitation and Kenyan city of Kisumu, for 16 years. health issues and the importance of waste services The school has more than a thousand handwashing has been crucial. pupils aged between three and 15. The children Rose teaches grow up “The health club taught children to A further 540,000 people surrounded by human waste. Due to have their own personal water bottles benefiting indirectly from our urban the lack of clean water and sanitation, instead of using their dirty hands to water and waste work many of them have suffered from the drink directly from the tap. Before, sometimes fatal effects of ongoing children didn’t use soap when washing diarrhoea, which prevent the gut from their hands. Children have been taught £2.1 million spent on our effectively absorbing nutrients. to make soap at school. They even urban water and waste programme sell surplus to sustain the club. When “Children would suffer from diarrhoea the children go to the toilet, they now and stomach aches. There was a time wash their hands with soap. The health when there was a cholera outbreak and club do demonstrations at assembly one of our staff members passed away.” for proper handwashing to the rest of the school.” As part of our work in Kisumu, we’ve helped the school to set up a health The children learn about hygiene club. This club teaches children about through dance and singing, as well as the importance of good hygiene. Rose more traditional methods. This mix of teaches at the new health club and teaching styles helps keep their interest. believes it’s been extremely valuable They’re picking up the new messages Through the support of Practical Action, I was trained to This year we have… for the children in her care. Most of quickly and are taking them home to become a community health volunteer. I feel that my work these children live in homes without inspire the rest of their families. has had a major impact in the community. I am proud to say • Improved access to safe drinking that Practical Action also installed water points and this has water and sanitation services for communities in Odisha in India, with reduced water borne diseases.” the support of H&M Foundation, who donated £1 million to help us Karen, a Community Health Volunteer in Nyalenda, Kenya build improved toilets and waste Rose at Pandpieri Primary School treatment systems • Promoted a community-led holistic I have a little boy of my own, he approach to sanitation with is only 5 years old. He has seen Clean drinking water, proper sanitation This year, we continued our work to get partners and local governments. handwashing demonstrations and adequate sewage disposal are basic drinking water, sanitation and waste We demonstrated best practice and and now at home, he tells human needs. But many millions of services to people living in slums and developed innovative technologies for me, no it’s not done this people still find it difficult to get these other poor urban areas. We focused our clean water and waste management way! It’s really impacting on things. More than half of the world’s efforts on delivering safely-managed population live in urban centres. The sanitation and water and on improving • Provided education about menstrual children, they can now show hygiene to young girls and women, number living in slums is increasing by hygiene behaviour. We encouraged other children how to do it while breaking taboos on the subject, 10% every year. Over a third of people decision-makers to plan and budget for the right way.” through regular radio broadcasts and living in the developing world don’t have waste management in a way that’s more free health consultations Rose, a teacher in Obungu, Kenya decent sanitation facilities. In urban inclusive of informal waste workers and slums, lack of household sanitation is delivers a better service. • Worked with national and city a particular issue for women. Pollution governments to make sure that people and inadequate handwashing facilities Our goal is to work directly with 1.3m on low incomes are included in make transmission of water-borne people to help them get clean water, sanitation planning toilets and waste disposal by 2020. diseases such as cholera more likely. • Collaborated with high-level policy makers, particularly in the UK, Kenya, Bangladesh and Nepal. We highlighted the needs of the urban poor and influenced national policies relating to urban water and waste.

16 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 17 URBAN WATER AND WASTE WHAT WE’VE SUCCESS STORY ACHIEVED Karen, outside the community Rose’s school health club centre where she teaches people benefiting Rose has been teaching at Pandpieri clean water or adequate sanitation, her community about good 141,000 directly from our work to improve Primary in Obungu, a slum in the so increasing their awareness of hygiene practices. access to clean water, sanitation and Kenyan city of Kisumu, for 16 years. health issues and the importance of waste services The school has more than a thousand handwashing has been crucial. pupils aged between three and 15. The children Rose teaches grow up “The health club taught children to A further 540,000 people surrounded by human waste. Due to have their own personal water bottles benefiting indirectly from our urban the lack of clean water and sanitation, instead of using their dirty hands to water and waste work many of them have suffered from the drink directly from the tap. Before, sometimes fatal effects of ongoing children didn’t use soap when washing diarrhoea, which prevent the gut from their hands. Children have been taught £2.1 million spent on our effectively absorbing nutrients. to make soap at school. They even urban water and waste programme sell surplus to sustain the club. When “Children would suffer from diarrhoea the children go to the toilet, they now and stomach aches. There was a time wash their hands with soap. The health when there was a cholera outbreak and club do demonstrations at assembly one of our staff members passed away.” for proper handwashing to the rest of the school.” As part of our work in Kisumu, we’ve helped the school to set up a health The children learn about hygiene club. This club teaches children about through dance and singing, as well as the importance of good hygiene. Rose more traditional methods. This mix of teaches at the new health club and teaching styles helps keep their interest. believes it’s been extremely valuable They’re picking up the new messages Through the support of Practical Action, I was trained to This year we have… for the children in her care. Most of quickly and are taking them home to become a community health volunteer. I feel that my work these children live in homes without inspire the rest of their families. has had a major impact in the community. I am proud to say • Improved access to safe drinking that Practical Action also installed water points and this has water and sanitation services for communities in Odisha in India, with reduced water borne diseases.” the support of H&M Foundation, who donated £1 million to help us Karen, a Community Health Volunteer in Nyalenda, Kenya build improved toilets and waste Rose at Pandpieri Primary School treatment systems • Promoted a community-led holistic I have a little boy of my own, he approach to sanitation with is only 5 years old. He has seen Clean drinking water, proper sanitation This year, we continued our work to get partners and local governments. handwashing demonstrations and adequate sewage disposal are basic drinking water, sanitation and waste We demonstrated best practice and and now at home, he tells human needs. But many millions of services to people living in slums and developed innovative technologies for me, no it’s not done this people still find it difficult to get these other poor urban areas. We focused our clean water and waste management way! It’s really impacting on things. More than half of the world’s efforts on delivering safely-managed population live in urban centres. The sanitation and water and on improving • Provided education about menstrual children, they can now show hygiene to young girls and women, number living in slums is increasing by hygiene behaviour. We encouraged other children how to do it while breaking taboos on the subject, 10% every year. Over a third of people decision-makers to plan and budget for the right way.” through regular radio broadcasts and living in the developing world don’t have waste management in a way that’s more free health consultations Rose, a teacher in Obungu, Kenya decent sanitation facilities. In urban inclusive of informal waste workers and slums, lack of household sanitation is delivers a better service. • Worked with national and city a particular issue for women. Pollution governments to make sure that people and inadequate handwashing facilities Our goal is to work directly with 1.3m on low incomes are included in make transmission of water-borne people to help them get clean water, sanitation planning toilets and waste disposal by 2020. diseases such as cholera more likely. • Collaborated with high-level policy makers, particularly in the UK, Kenya, Bangladesh and Nepal. We highlighted the needs of the urban poor and influenced national policies relating to urban water and waste.

16 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 17 FEATURED PROJECT EDUCATION INSPIRING Total sanitation in Kisumu DEBATE Not so fantastic plastic The waste generated by disposable Kate Hanson, a biology teacher at Culloden training programme as part of the Girls Thousands of people like Rose are healthier is being given to builders and people who plastic products is a major problem in the Academy in Scotland, is one of the teachers into Global STEM project. This EU-funded because of our improvements to drinking empty the waste pits. A safer start in life developing world because there’s often who has used this resource. Our materials project aims to engage more school water, sanitation and waste services. We This year, we published a briefing We’re continuing our work in Kisumu no easy way to dispose of it. One of our were just what she had been looking for students and especially girls in STEM helped Kisumu residents get handwashing paper called A safer start in life: through our Safe Pair of Hands project, popular education resources in the UK to engage her students in global issues (science, technology, engineering and facilities and clean water as part of our handwashing and child health in which will start in the 2018/19 financial is the Plastics Challenge. This makes and encourage them to take action. Kate maths) subjects and subsequently in STEM KisumuSAN project. This project was Kisumu, Kenya. In it, we outline the year. Our Safe Pair of Hands campaign pupils aware of the impact of plastic on delivered several challenges, including Beat related careers. We reached over 1,000 principally funded by Comic Relief and situation of handwashing and child raised £1.2 million in public donations people around the world, as well as on the Flood and Stop the Spread to her class. teachers with our training during the year. our main partners were Umande Trust health in informal settlements in for this project. This was a UK Aid the environment. She also helped us develop an on-line and Kisumu Urban Apostolate Programme Kisumu. We then explore how we and Match appeal in partnership with the (KUAP). We’ve strengthened relationships our partners are addressing it and Department for International Development with local authorities so that residents of what others need to do. We call for a (DFID), who doubled slums now play a role in decision-making. clearer understanding of the barriers the value of all UK Meanwhile, 120 community volunteers are to better hand hygiene among children donations we received. championing better sanitation, under the under five and their carers. At the the I really liked that the As a result, the appeal supervision of public health officers. Also, same time, we endorse community Plastics Challenge helped raised £2.4 million. technical training and business coaching action to address wider environmental pupils understand the global sanitation challenges. We encourage impact of plastics.” greater recognition of the link between diarrhoea, malnutrition Kate Hansen, a Practical Action trainer Sara outside the toilet we helped and diminished life prospects. We and biology teacher at Culloden Academy, her build on her property as part stress the significance of hygiene Inverness of our project in Kisumu. and handwashing in breaking this cycle. We also call for greater funding for hygiene programmes by national governments and donors.

Briefing papers like this one are a Pupils at Culloden Academy show the work they produced as part of the key tool when it comes to engaging Plastics Challenge. partners and local governments. They have the potential to influence policy at a local and national level. In Kenya, we’re part of a group of organisations contributing to the new Sanitation FEATURED PROJECT Policy for Kisumu County. This policy goes a long way to recognising the Our work with refugees role that the informal sector plays in We’re seeing the highest levels of shelters in Cox’s Bazar, in neighbouring filtration system and results in safe delivering a good service. displacement on record, with nearly Bangladesh. Agencies have constructed sanitisation of waste. This stops the 70 million people uprooted and over toilet facilities and drilled boreholes spread of sickness and disease and 20 million refugees worldwide. Conflict for drinking water. This managed the keeps families healthy. This solution and war has forced families to flee from immediate crisis, but now the refugees is just one of the ways we’re helping their homes, leaving behind everything need longer-term solutions. to support refugee communities. and setting up new lives, often in We’re also working in partnership with camps. Lack of basic services and We have a wealth of experience UNHCR, the UN’s Refugee Agency, on infrastructure keeps them dependent creating innovative solutions to the the Renewable Energy for Refugees on aid. It affects their health and problems faced by people living in project. This project is supported by the forces them to put careers, aspirations poverty. This puts us in a unique IKEA Foundation, which is providing position to contribute to solving and personal development on hold. over €8 million in funding between Refugees are often in these situations the wider problem of long-term April 2017 and September 2020. displacement. We devised portable Before, my tenants said they wouldn’t pay their rent because for a long time, with no safe home The work is helping refugees and to return to. Nearly a million people faecal sludge management units made their host communities in Jordan and there was no toilet. I couldn’t afford one. Now I’ve been able of steel with waterproof protection at to build a toilet and things are better.” belonging to the Rohingya community Rwanda to access finance, training and have fled persecution in Myanmar. the camps in the Ukhyia area of Cox’s sustainable energy technology. Bazar. The technology uses a simple Sara, a landlord in Kisumu, Kenya They’re now living in makeshift

18 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 19 FEATURED PROJECT EDUCATION INSPIRING Total sanitation in Kisumu DEBATE Not so fantastic plastic The waste generated by disposable Kate Hanson, a biology teacher at Culloden training programme as part of the Girls Thousands of people like Rose are healthier is being given to builders and people who plastic products is a major problem in the Academy in Scotland, is one of the teachers into Global STEM project. This EU-funded because of our improvements to drinking empty the waste pits. A safer start in life developing world because there’s often who has used this resource. Our materials project aims to engage more school water, sanitation and waste services. We This year, we published a briefing We’re continuing our work in Kisumu no easy way to dispose of it. One of our were just what she had been looking for students and especially girls in STEM helped Kisumu residents get handwashing paper called A safer start in life: through our Safe Pair of Hands project, popular education resources in the UK to engage her students in global issues (science, technology, engineering and facilities and clean water as part of our handwashing and child health in which will start in the 2018/19 financial is the Plastics Challenge. This makes and encourage them to take action. Kate maths) subjects and subsequently in STEM KisumuSAN project. This project was Kisumu, Kenya. In it, we outline the year. Our Safe Pair of Hands campaign pupils aware of the impact of plastic on delivered several challenges, including Beat related careers. We reached over 1,000 principally funded by Comic Relief and situation of handwashing and child raised £1.2 million in public donations people around the world, as well as on the Flood and Stop the Spread to her class. teachers with our training during the year. our main partners were Umande Trust health in informal settlements in for this project. This was a UK Aid the environment. She also helped us develop an on-line and Kisumu Urban Apostolate Programme Kisumu. We then explore how we and Match appeal in partnership with the (KUAP). We’ve strengthened relationships our partners are addressing it and Department for International Development with local authorities so that residents of what others need to do. We call for a (DFID), who doubled slums now play a role in decision-making. clearer understanding of the barriers the value of all UK Meanwhile, 120 community volunteers are to better hand hygiene among children donations we received. championing better sanitation, under the under five and their carers. At the the I really liked that the As a result, the appeal supervision of public health officers. Also, same time, we endorse community Plastics Challenge helped raised £2.4 million. technical training and business coaching action to address wider environmental pupils understand the global sanitation challenges. We encourage impact of plastics.” greater recognition of the link between diarrhoea, malnutrition Kate Hansen, a Practical Action trainer Sara outside the toilet we helped and diminished life prospects. We and biology teacher at Culloden Academy, her build on her property as part stress the significance of hygiene Inverness of our project in Kisumu. and handwashing in breaking this cycle. We also call for greater funding for hygiene programmes by national governments and donors.

18 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 19 DISASTER RISK REDUCTION WHAT WE’VE ACHIEVED The number of people at risk of protect against the long-term effects of disasters has tripled over the past disaster by 2020. decade. In the same time-frame, 714,000 people benefiting recovery costs have quadrupled. Most of directly from our work improving the people affected live in the world’s This year we have… resilience to disasters poorest countries. Women, people with disabilities and the elderly are • Introduced appropriate training and A further 2.3 million people particularly vulnerable. The changing technologies and simple design changes. These allowed families to benefiting indirectly from our disaster climate makes disasters in many areas risk reduction work more likely and more extreme. dramatically lessen the impact of flooding on their homes and livelihoods We’ve connected disaster risk • Implemented simple yet effective £5.2 million disaster risk management and preparedness with risk ideas to improve the livelihoods of reduction programme reduction. We’ve identified and put in communities struggling to cope with place practical, sustainable technologies extreme weather conditions such as that people are using to reduce the drought and freak freezes impact of disasters on their lives. • Encouraged aid agencies to embrace This year we continued to develop the goal of rebuilding houses to be Adelaida with some of the children she cares for at the crèche. early warning systems and community- more resilient than they were before. based planning. We helped vulnerable This helps families, communities, communities to get insurance and social networks and local markets Mothers leave their children here, knowing they will be looked after.” vital goods and services. As well as emerge from crises more capable to demonstrating the material impact of cope and adapt to future threats Adelaida, a resident of Cuatro de Mayo, Peru disaster risk reduction on people’s lives • Used digital technologies to give and livelihoods, we also addressed people earlier warnings about floods. critical policy issues. In Bangladesh alone we sent text messages to 56,000 people, left SUCCESS STORY Our goal is to work directly with 1.2m 124,000 voice messages and installed people to help them prepare and 56 digital message boards. Adelaida’s crèche

Adelaida runs a crèche in the village “After the floods, Practical Action In the critical days following the flood of Cuatro de Mayo, in the province of helped us with the process of cleaning disaster, the crèche housed more than Piura, in the north of Peru. and rebuilding our homes. We formed 30 children, from newborns to eight- 22 brigades from the whole community year-olds. With their children safe in In the summer of 2017, floods related and there were many women in these the crèche, parents can concentrate Every monsoon, our land to the El Niño climate phenomenon hit brigades. Then we saw that these on rebuilding their homes and, with gets flooded, and we used the area. More than 350 families living women had nowhere to leave their our help, protecting them from future to lack clean drinking water in Cuatro de Mayo had their homes children while they were working on the disasters. Flooding is likely to happen because our hand pumps got flooded. A few people managed to save cleaning and rebuilding of houses. From more often because of the changing some of their belongings but many submerged in flood waters for here came the idea of a crèche.” climate, but we’re putting flood homes were completely destroyed with forecasting systems in place. These will more than a week. Now that we families losing everything. The crèche is open from 8am until 1pm have the new pump, we don’t allow people to prepare themselves and and is in the middle of the village, so protect their homes and families. need to worry about drinking In the aftermath of the floods, Adelaida it’s easy for people to get to. Two other water during the monsoon wanted to do anything she could women work with Adelaida to look after Adelaida has seen a new spirit of and we are making the best to rebuild her community and help the children. Organised childcare is solidarity emerge in Cuatro de Mayo use of it in other months of people protect against future disasters. new to some of them, but we made since the flooding. Our work has not the year as well.” She teamed up with us as part of the professional training available to help only helped rebuild and disinfect houses Zurich Flood Resilience Alliance. This them in their roles. and provided clean drinking water, it Phoolbashni, a resident of is a partnership of ten organisations, has allowed women like Adelaida the Dakshin Sahipur, Nepal which include businesses, academic “To be able to do our work in the best opportunity to take an active role in institutions and development agencies. way, we learned how to treat children, improving the lives of those around her. We set out to help people to cope in the how to entertain them and how to keep The new skills they’ve learned have also immediate aftermath of the flood as well them calm while they waited for their Phoolbashni collects water from the new elevated water pump, made them better able to cope with the as learn new skills to help them become mothers to return from work.” installed as part of a Practical Action project. aftermath of future disasters. more resilient to future ones.

20 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 21 DISASTER RISK REDUCTION WHAT WE’VE ACHIEVED The number of people at risk of protect against the long-term effects of disasters has tripled over the past disaster by 2020. decade. In the same time-frame, 714,000 people benefiting recovery costs have quadrupled. Most of directly from our work improving the people affected live in the world’s This year we have… resilience to disasters poorest countries. Women, people with disabilities and the elderly are • Introduced appropriate training and A further 2.3 million people particularly vulnerable. The changing technologies and simple design changes. These allowed families to benefiting indirectly from our disaster climate makes disasters in many areas risk reduction work more likely and more extreme. dramatically lessen the impact of flooding on their homes and livelihoods We’ve connected disaster risk • Implemented simple yet effective £5.2 million disaster risk management and preparedness with risk ideas to improve the livelihoods of reduction programme reduction. We’ve identified and put in communities struggling to cope with place practical, sustainable technologies extreme weather conditions such as that people are using to reduce the drought and freak freezes impact of disasters on their lives. • Encouraged aid agencies to embrace This year we continued to develop the goal of rebuilding houses to be Adelaida with some of the children she cares for at the crèche. early warning systems and community- more resilient than they were before. based planning. We helped vulnerable This helps families, communities, communities to get insurance and social networks and local markets Mothers leave their children here, knowing they will be looked after.” vital goods and services. As well as emerge from crises more capable to demonstrating the material impact of cope and adapt to future threats Adelaida, a resident of Cuatro de Mayo, Peru disaster risk reduction on people’s lives • Used digital technologies to give and livelihoods, we also addressed people earlier warnings about floods. critical policy issues. In Bangladesh alone we sent text messages to 56,000 people, left SUCCESS STORY Our goal is to work directly with 1.2m 124,000 voice messages and installed people to help them prepare and 56 digital message boards. Adelaida’s crèche

20 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 21 Local flood evacuators, trained by Practical Action, assist an elderly resident FEATURED PROJECTS INNOVATING THROUGH TECHNOLOGY during an evacuation drill. Building ﬂood resilience Building back better

Cuatro de Mayo, where Adelaida lives, was In 2015, a massive earthquake hit We’re working in partnership with countless lives is Compressed Stabilised one of the communities in Piura that was Nepal. Homes were destroyed and communities, private sector and the Earth Blocks. These special bricks most badly damaged by the recent floods. lives were lost. Reconstruction is a big Government to rebuild the homes are an affordable, sturdy alternative We built latrines and distributed water challenge because Nepal’s extreme lost. We help people identify the most to traditional bricks. They have an tanks and pots for cooking. Funding from landscape and lack of infrastructure affordable and available materials interlocking structure that can withstand the Poul Due Jensen Foundation has also makes it difficult to get the right tools and technologies. We enable local earthquake tremors and they provide provided health kits that include mosquito and machinery to where they’re needed. organisations to train entrepreneurs, then shelter from the monsoon rains. They nets and water containers to help limit the Vital construction materials have not help them get finance, start construction don’t need to be fired in kilns and can spread of disease. Flood risk is increasing been available or affordable. Villages businesses and flourish. With locally- be manufactured locally in most places. due to growing populations, unsustainable deserted by years of economic migration appropriate technologies and enabling This reduces transportation costs and farming practices and climate change. had no stone-masons, builders or markets, we have demonstrated that provides employment. However, building resilience allows engineers to do the work. Three years rebuilding the parts of Nepal damaged vulnerable populations to continue to thrive on, many rural families still live in by the earthquake is possible. One even during a disaster. temporary shelters. innovative solution that is improving

Floods affect the lives of around 250 million people each year. The poorest communities suffer most because repeated floods undermine their potential to develop. This traps them in a poverty cycle. We’re collaborating with Zurich Insurance Group and the Z Zurich Foundation, as well as Previously we did not have adequate knowledge for flood other experts in this field, on phase 1 monitoring. We have now learned about flood risk, the of the Zurich Flood Resilience Alliance. vulnerabilities in our communities and flood monitoring. The This phase of the project started in 2013 task force members coordinate mock exercises so that we are and ends in 2018. Zurich are supporting well prepared before the flood hits our community.” it with funding of £7.2 million. As part of the collaboration, we’re building the Roma, a resident of Kailali district, Nepal resilience of vulnerable populations in Nepal, Bangladesh and Peru. We work with people to increase their understanding of risk and build flood resilience into lives and livelihoods. Zurich’s risk expertise as I’ll rebuild my own family’s a global insurer makes them a valuable Prem makes Compressed home with blocks like the Stabilised Earth Blocks in a SHARING KNOWLEDGE partner in our work helping people reduce ones I’m making now.” the impact of floods on their communities. factory that was set up with support from Practical Action. Flood resilience portal Prem, a brick maker in Rasuwa, Nepal

There’s a lot of information about find and put in place ways of building disaster risk reduction out there but resilience to flooding. it’s not standardised. It isn’t always INFLUENCING POLICY organised or presented in a way that’s Through the portal, we focus on the useful to the people who need it. We’ve regions and countries most affected by Wider impact created the Flood Resilience Portal to flooding. We then learn which information fill this knowledge gap and help to get and resources are the most useful to In our disaster risk reduction work, we’ve broadcasts. In the 2017 monsoon, people expertise. The projects are being run by the the right information out to the right people and adapt these so that they can influenced many local authorities and used these enhanced warnings, giving Department for International Development people at the right time. Practitioners on be used globally. Thousands of people are governments. This has allowed us to make them 7-hour, rather than 2-hour warning and the Natural Environmental Research the ground now have the most locally- already using the portal. These include wide-scale changes to improve the lives of rising waters. Council. In the last year, we reviewed relevant flood risk reduction resources local government personnel, community- of people living in areas at risk of flooding existing best practices in user-centred We are the only non-academic partner to and examples of best practice. People based organizations and national and and other disasters. The Government of landslide early warning systems globally. be invited to take part in two four-year can share knowledge, innovation and international development agencies. Nepal has adopted our innovative work We’ve also built partnerships with national landslide early warning projects. This learning. They can work together to extending early warning lead times in technical agencies, assessed user needs flood-prone areas. This includes the use of is testament to the esteem we’re held and priorities and began designing pilot satellite technologies and community radio in by academic institutions due to our projects in India and Nepal. on-the-ground experience and technical

22 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 23 Local flood evacuators, trained by Practical Action, assist an elderly resident FEATURED PROJECTS INNOVATING THROUGH TECHNOLOGY during an evacuation drill. Building ﬂood resilience Building back better

22 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 23 INSPIRING A COMMUNITY OF SUPPORT Strategic Report

Thanks to the generosity of our include due diligence, mystery shopping, incredible supporters and partners, call listening, results evaluation and PUBLIC FUNDRAISING CHALLENGES, RISKS AND UNCERTAINTIES we raised over £32 million this year. a right to audit. Joanne Smith, who IN NUMBERS Over £10 million of this amount was has extensive fundraising management A significant proportion of our income which will help us cope with any risks in the long term sustainability of our in the form of unrestricted donations experience, joined us as a Trustee to comes from institutional donors such as the short-term. Meanwhile, our ongoing work. They also affect the safety and new members of the and legacies, given mostly by the UK strengthen the Board in its fundraising 2,700 the EU and DFID. There are a number of diversification of income sources will security of our own staff. We manage public supporting us public. This was £1 million more than governance role. factors that could result in this income provide long-term financial robustness. this risk by considering disaster risks our fundraising target. We’re thankful to decreasing. Not least, Brexit is likely in all our work, using local knowledge everyone who donated to our work, and Our Supporter Promise is our public to limit our ability to partner with, and It’s vital our staff and partners build and maintaining strong emergency and commitment to supporters that we £2.9 million from trust with the communities they work to the members of our Chair’s Circle for supporters remembering us in their access grants from, the EU. To mitigate security procedures. will behave in a way that’s respectful, with by upholding high standards of their continued support. will this risk, we’re already partnering with honest and accountable. Our in-house EU-based agencies and hope to access behaviour. We strive to embed high In May 2018, new data protection Alongside our relationships with supporter care team answers day-to- EU funds with them. standards in the culture of our teams legislation came into force that aims to individual donors, we work with day queries about fundraising from our £3 million from supporters around the world and we work with protect people’s privacy by introducing businesses, trusts and philanthropists. supporters and we have a complaints making a regular gift Brexit also has the potential to partner organisations to ensure their new responsibilities around how personal We’re very grateful for their generosity. procedure for investigating complaints. negatively affect the UK economy. Much safeguarding standards match ours. In data is processed. We identified that Last year, over 250 charitable trusts, We received 79 complaints relating to of our income is in pounds sterling, 2017 we adopted a new complaints our privacy information and some of foundations and companies supported our fundraising activities in 2017/18. £14.4 million total while much of our expenditure is in and whistleblowing policy. Our staff and our fair processing notices inadequately us. These included Bill & Melinda The most common complaints were income from donations and legacies other currencies. A weaker pound would partners have a confidential channel to represented the range of data processing Gates Foundation, Charles Stewart that our mailings were too frequent and therefore negatively affect our spending raise concerns or report misconduct to activities we undertake. We reported Mott Foundation, EKOenergy, H&M that a mailing was contained within a potential in many of the countries the highest level. We’re also working with this to the Information Commissioner’s Foundation, IKEA Foundation, Poul non-biodegradable outer wrapper. We £2.1 million we work in. Meanwhile, a weaker UK BOND, the UK network for organisations Office. We then rectified things and Due Jensen Foundation, Swedish received no serious complaints relating spent on fundraising and supporter economy may result in fewer and working in international development. the Information Commissioner’s Office Postcode Lottery and Zurich Insurance to our fundraising activities in 2017/18. services lower donations from UK supporters. We’ve committed to a range of measures was satisfied that our new notices Group. Jersey Overseas Aid, an Furthermore, institutional donors are to improve safeguarding and build trust were suitable. independent international aid agency, We’ve focused on attracting new constantly reviewing their priorities, across the sector. We didn’t receive any also supported us. supporters and encouraging regular which may not always align with ours. reports of safeguarding events during the Our ability to deliver projects on time giving, legacy gifts and multi-year This has prompted us to engage with reporting period. and to budget is frequently hampered grants. We still have work to do when Our fundraising philosophy new donors in a propositional way to by their complexity and scope. Relying it comes to attracting new donors to excite them about the work we do. Many of the countries we work in on multiple partners to deliver different We subscribe to The Fundraising the organisation. In 2017/18, 35,000 are prone to disasters or political parts of projects adds additional Regulator and adhere to the Codes of supporters donated to us, which is down In another important political instability. Last year, floods affected complexity and interdependencies. Fundraising Practice which cover all on the 2016/17 figure of 37,700. We development, the USA’s intention to communities in Peru. Two years after We are tackling these challenges aspects of voluntary income generation expect our investment in our websites withdraw from the Paris Agreement on the Nepal earthquake, many people by investing in new training and in the UK. We’re also members of and other digital platforms to give us climate change may reduce funding for are still living in temporary housing. management systems. These will allow the Institute of Fundraising. We’ve new ways of doing this. Despite the disaster risk reduction work. To mitigate Disasters such as these can affect us to track our work, and the work of our developed a Fundraising Compliance challenges, our fundraising performance these risks, we’ve built strong reserves, the communities we work with and partners, more effectively. Handbook and a Fundraising Policy. this year has allowed us to continue These cover current fundraising to invest in securing income in future regulations, data protection, accepting years. We’re confident that 30% of our LOOKING TO THE FUTURE and refusing donations, protecting public donation target for 2018/19 is vulnerable people and complaints already secured thanks to pledges from Many exciting new partnerships are changing products such as cook stoves We’re investing heavily in our websites, procedures. For all fundraising staff, committed givers. We’ve also secured currently in the beginning stages. and solar lamps. digital publishing formats and other long-term and short-term objectives pledges and contracts from institutions, These include large-scale partnerships, digital platforms. This includes our include knowledge and understanding trusts and major partners. such as our collaboration with the The introduction of more off-grid Practical Answers mobile application. of these documents and of the Codes of renewable energy sources remains a key Information relating to challenges, risks IKEA Foundation. This promises to Digital technologies are becoming Fundraising Practice. When working with goal area in the coming year. Increasingly, and uncertainties, as well as a financial deliver sustainable, affordable energy more widespread. This makes them an a third party or partner organisation for this links closely to our goals around review of Practical Action’s performance to refugees and displaced people increasingly good way of reaching a wide fundraising purposes, we have various food and agriculture, where successful in 2017/18 are included in the following in Jordan and Rwanda. Equally audience of people who can benefit ways of making sure they follow our own irrigation and processing of produce relies high standards of ethical practice. These Strategic Report. important are collaborations that see from our work, as well as potential us convening many small organisations on a trustworthy energy source. We’ll also partners. Reaching new audiences will and businesses to achieve change. be continuing our work with refugees. be an important activity for us in itself The Global Distributors Collective is We know that our experience working in over the next year. We’ll be looking at one such initiative. This collaboration poor areas around the world puts us in a how we talk about our work and how we aims to improve people’s access to life- unique position to help solve the problem present ourselves as an organisation in of long-term displacement. order to expand our reach and impact.

24 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 25 INSPIRING A COMMUNITY OF SUPPORT Strategic Report

24 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 25 FINANCIAL REVIEW SUMMARY OF INCOME AND EXPENDITURE 2017/18

Our Finance and Services in each of the last four years. The • Foreign exchange: support our Director, John Lockett, reviews our growth was largely driven by Southern programming in the short-term if finances over 2017/18. Africa where we’re managing large the pound and/or other currencies Total annual income £m 2017/18 £m energy and agriculture programmes. in which we receive income lose 2017/18 saw continued growth in significant value. our charitable expenditure, up £1.8m 35 Pension scheme actuarial gain • Business continuity: support on the previous year to just over £30 core activities, such as business million. Our total income for 2017/18 We closed our defined benefit pension 30 development, in the event that we was £32.2 million, which is £1m scheme to contributions in 2002. In

miss grant funding targets. s less than the previous year. However, the past year, the pension scheme 25 deficit has reduced substantially due to the underlying trend remains positive illio n

(the previous year’s income included deficit reduction payments made and Post balance sheet events m 20 the Zayed Energy Prize and strategic changes to actuarial assumptions on In May 2018, we sold Bourton Hall partnership funding from DFID). Our member life expectancy. The result is an for £2.3m and leased it back on 15 operational income and expenditure actuarial gain, and thus an increase in a 6-month agreement cancellable were close to balanced. reserves, of £0.5m. with 1 months’ notice. We signed a 10 Donations £11.5 (36%) new lease agreement for premises in Legacies £2.9 (9%) Grants £13.1 (41%) Income and expenditure Balance sheet and reserves Rugby, which started in September for 5 a 10-year period. The annual rental 27.4 30.9 26.2 30.0 26.0 30.0 33.2 32.2 Consultancy £3.7 (12%) Our unrestricted income from donations Our total reserves at the end of the commitment will be £103k. 0 Investment & Other £1.0 (3%) and legacies, primarily from UK-based financial year were £11.6m, made up 2011 2012 2013 2014 2015 2016 2017 2018 supporters, was up 16% in the of £1.2m restricted reserves, £1.9m years ending 31 March year, with the UK Aid-Match appeal designated reserves and general funds Policy for grants performing particularly well. Our long- of £8.5 million. Our reserves are £0.9 We work in partnership with a number standing supporters continue to be million above the maximum level of organisations globally and this is Total expenditure on charitable activities £m 2017/18 £m very loyal to us. permitted by our reserves policy, which an important part of our work. During (including fundraising and governance) requires us to hold no more than £7.6 the financial year we granted £5m to 35 Income directly from the UK Department million. This is a consequence of higher our partners to support the delivery of for International Development (DFID) than budgeted fundraising income our programmes in order to meet our 30 was sharply down in the year. This is in the year and the pension scheme objectives. Due diligence is carried out attributable to Strategic Partnership actuarial gain. Reserves will be further prior to any agreement being made and 25 support of £3.6m per annum coming increased by the sale of the UK office, we track and monitor funds against the to an end in December 2016, as which completed in May 2018. We’ve on s agreed deliverables. ll i 20 DFID closed this funding stream for i

budgeted for an operational deficit of m all organisations, and the conclusion £1.8m in 2018/19 and further deficits Looking forward 15 of some major programmes. DFID in future years, which will leave reserves continued to be an important supporter at the lower end of the target range We face significant financial challenges 10 of our work being the ultimate funders given growth expectations. and risks in common with all UK NGOs Charitable activities £30.1 (94%) for FAO and ZOA led consortia, amongst - our ability to continue to access EU

5 1 We require funds for the funding post-Brexit remains uncertain, . Fundraising £2.1 (6%) others, and we expect some increase in 0

23.8 25.9 22.9 23.3 22.2 25.1 direct funding for new programmes in following purposes: UK public fundraising is likely to remain 28.4 3 0 2018/19. Income directly from the EU challenging and economic uncertainty Working capital: £2.6 million. These 2011 2012 2013 2014 2015 2016 2017 2018 was stable year-on-year and accounted may generate significant exchange rate funds are required to provide working for 11% of total income. Year-on-year volatility. We’re nevertheless targeting years ending 31 March cash and pre-financing for normal growth has come from a range of other continued growth in charitable work operations during the course of the year. sources in line with our strategy to and expenditure. We’re successfully diversify our income base. Between £2.6 and £5.0 million are held diversifying our income sources and in contingency against the following updating our systems to meet tightening We explain what we mean by ‘charitable activities’ on page 39. Our fundraising expenditure was down principal risks: donor compliance demands. We’ve slightly to £2.1 million in the year. built strong reserves and will use these This report, which incorporates the Trustees’ and Directors’ Annual and Strategic Report, was approved by the Board on • Fundraising: honour expenditure We continue to develop and test new to support our programmes, invest in 21 November 2018 and signed on their behalf by commitments made, in the event approaches and intend to increase our growth and strengthen our organisational that fundraising targets are missed. investments in fundraising once we are capabilities over the coming years. confident that these new approaches • Grant repayment: to be able to repay will generate good returns. donors if there were a failure on grant conditions or inject additional Helena Molyneux Our charitable spend was up to £30.1 money into projects to meet them. Director million and has now grown significantly

26 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 27 FINANCIAL REVIEW SUMMARY OF INCOME AND EXPENDITURE 2017/18

miss grant funding targets. s less than the previous year. However, the past year, the pension scheme 25 deficit has reduced substantially due to the underlying trend remains positive illio n

5 1 We require funds for the funding post-Brexit remains uncertain, . Fundraising £2.1 (6%) others, and we expect some increase in 0

26 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 27 directors. She also manages a guarantee Practical Action has a from discrimination or harassment and Trustees’ Administrative Report global donor insight initiative for 10 Membership (currently 45 Members). with consideration of any disability. large international organisations. They attend and vote at our Annual She has 28 years of voluntary General Meetings on matters such as We openly consult with staff on matters HOW WE MANAGE OUR AFFAIRS fundraising experience. re-appointing Board members and the important to our activities and keep auditors and on any changes to our people updated through weekly all-staff Articles of Association. meetings in each office and a range of The Board of Trustees does not exceed 18. Any Trustee arising from negligent acts, errors or About our organisation digital communications. A confidential appointed during the year holds office omissions. The insurance provides cover Practical Action is a Charity and Our Board is responsible for the staff survey is conducted every two years until the next AGM when he/she stands up to £5,000,000 on any one claim and a company limited by guarantee overall management and control of the Charity governance code to monitor key drivers of, and guide for re-election by the Membership but the cost for the period ended 31 March (registered in England and Wales) organisation and meets four times a The Trustees are aware of the new efforts to improve, staff engagement. does not count as part of the rotation 2018 was £3,500 (2017: £2,750). and has a Membership. The Board of year. Trustees are not remunerated and guidance and during the coming year Our 2017 survey recorded award- for that year. At March 2018, there Trustees governs the organisation in receive no benefits from the organisation plan to undertake a review to produce winning levels of employee engagement were 13 Trustees. line with its Articles of Association, New trustees other than the fact that Practical Action recommendations and an action in all of our offices. pays for Trustee Indemnity Insurance for plan to ensure that the charity takes vision, mission and values which align We agree and implement an individual We’re pleased to welcome two new its Trustees. They are allowed to claim positive steps towards working in line with our main charitable objective induction programme and provide in trustees to Practical Action – Waleed Global gender pay data as for travel and accommodation expenses with the Code in all ways where it is which is: to benefit the public through depth reading materials as a welcome Elbashir Elobeid and Joanne Smith. in attending meetings. There are two practicable to do so. at 5 April 2017 “the advancement of education and pack for each new Trustee, covering all Waleed Elbashir Elobeid is Sudanese. committees of the board: Although we don’t fall within scope of the relief of poverty by the promotion aspects of the role and the organisation. He’s currently an Adviser in the United the regulatory requirement to report and advancement (in ways that are We encourage all Trustees to attend Remuneration, equal opportunities Arab Emirates Foreign Assistance The Finance, Audit and Risk Committee our gender pay gap information, in charitable) of knowledge of technical, external training events and seminars and staff engagement Department, within the Ministry of oversees matters of financial control and line with our commitment to equality, economic and social science and for to enhance their skills and experience, Foreign Affairs and International performance, external and internal audit Our remuneration policy is based transparency and accountability, we’re other charitable purposes beneficial to provide greater understanding of their Cooperation. He has 25 years of and organisational risk and has oversight on an ambition to recruit and retain disclosing our global gender pay data. the community”. legal responsibilities and discuss experience in development and of our fundraising plans and activities. skilled staff who are paid fairly but This is the first time we’ve collected emerging issues affecting the sector. Practical Action’s overall aim is to humanitarian work. This includes primarily motivated to work with us this data and we’ll continue to learn Training includes induction days to meet The Nomination and Remuneration contribute to the eradication of poverty two years as Sudan Country Director because of our mission. We aim to pay how best to interpret it and use it to senior management and key employees Committee (name to change to the in developing countries by developing for Practical Action between staff at a level close to the relevant improve our practices. to familiarise themselves with the Organisation Committee) reviews the and using technology, sharing knowledge 2012 and 2014. market median, normally similar organisation. They also attend workshops composition of the Board and its and influencing others. We work closely organisations and equivalent roles in As a global organisation, our and visit international programmes committees and subsidiary companies with some of the world’s poorest people Joanne Smith has worked as an the local employment market, using commitment to diversity and inclusion to develop their knowledge of our as well as overseeing the Trustee – using technology in the areas of international fundraising consultant a fair and transparent pay system applies everywhere we operate, so programme work. recruitment process, oversees the energy access, food and agriculture, for the last decade. She’s developed free from individual bias. We aim for we measure our pay gap globally, terms and conditions of employment urban water and waste and disaster risk investment programmes in the UK and equitable remuneration for all employees i.e. we consider all employees In accordance with normal commercial of the Strategic Leadership Team and reduction, to fight poverty and change internationally. She coordinates the regardless of sex, race, religion, caste, based in all offices. If we follow the practice, we’ve purchased insurance to considers reports from our International their lives for the better. We explain International Fundraising Leadership tribe, belief, age, marital status, standard calculations stipulated by protect trustees and officers from claims Remuneration Committees. our objectives, activities over this past Forum for international fundraising pregnancy, caring responsibilities, the regulations, our global pay gap would be as follows: year and future plans in the Trustees’ The Board delegates day-to-day decision sexual orientation, gender or disability. Management remuneration committees and Directors’ Annual and Strategic making and operations to the Chief Mean: Women are paid are accountable for determining pay Report on pages 4–27. Executive and the 12 directors forming 25% more than men the Strategic Leadership Team which scales, benefit packages and cost-of- The Trustees are appointed and are includes seven regional/country directors living awards based on a consideration Median: Women are paid elected or re-elected for a term (usually who are responsible for managing of benchmarking surveys, local inflation, 16% more than men three years), according to procedures set our international programmes and recruitment and retention experience, out in our Articles of Association, which This data is based on local currency to consulting practices. affordability and financial performance, is our governing document. Trustees employment market trends, and any GBP exchange rates as at April 2017. can serve for up to a maximum of nine other relevant factors pertaining to years (except for the Chair, Vice Chair Our decision-making processes the local context. The remuneration or Treasurer, who can continue to be a The Board has a formal schedule committees are accountable to Globally, 39% of our employees are Trustee for a maximum of 12 years). of matters which are reserved for the Nomination and Remuneration women. The most significant driver of Trustee recruitment is conducted by consideration and approval at Board Committee, which is also responsible for the gender pay gap is the markedly the Nomination and Remuneration level. Included on this list are approval approving Executive Directors’ and Chief different number of men and women Committee, the name of which is to be of the charity’s objectives and strategic Executive Officers pay. in different locations. In particular, the changed to the Organisation Committee. aims and business plans, approval of high proportion of women employed in We have an equal opportunities policy group policies, the appointment and our UK office (70% of the UK workforce We place advertisements on our website, and are committed to promoting equality removal of Trustees, Members and the are women), where salaries are relatively in selected publications and on a variety of opportunity for all staff and job Chief Executive, approval of the Annual high, and the relatively low proportion of sector websites. The Board may applicants. We aim to create a working Report and Accounts, and expenditure of women employed in locations where appoint a person to be a Trustee either beyond the Chief Executive’s delegated environment in which all individuals are New trustees Waleed Elbashir Elobeid and Joanne Smith salaries are lower. Looked at location to fill a vacancy or as an additional authority. As a company limited by able to make best use of their skills, free Trustee as long as the total number by location, there’s a mixed picture,

28 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 29 directors. She also manages a guarantee Practical Action has a from discrimination or harassment and Trustees’ Administrative Report global donor insight initiative for 10 Membership (currently 45 Members). with consideration of any disability. large international organisations. They attend and vote at our Annual She has 28 years of voluntary General Meetings on matters such as We openly consult with staff on matters HOW WE MANAGE OUR AFFAIRS fundraising experience. re-appointing Board members and the important to our activities and keep auditors and on any changes to our people updated through weekly all-staff Articles of Association. meetings in each office and a range of The Board of Trustees does not exceed 18. Any Trustee arising from negligent acts, errors or About our organisation digital communications. A confidential appointed during the year holds office omissions. The insurance provides cover Practical Action is a Charity and Our Board is responsible for the staff survey is conducted every two years until the next AGM when he/she stands up to £5,000,000 on any one claim and a company limited by guarantee overall management and control of the Charity governance code to monitor key drivers of, and guide for re-election by the Membership but the cost for the period ended 31 March (registered in England and Wales) organisation and meets four times a The Trustees are aware of the new efforts to improve, staff engagement. does not count as part of the rotation 2018 was £3,500 (2017: £2,750). and has a Membership. The Board of year. Trustees are not remunerated and guidance and during the coming year Our 2017 survey recorded award- for that year. At March 2018, there Trustees governs the organisation in receive no benefits from the organisation plan to undertake a review to produce winning levels of employee engagement were 13 Trustees. line with its Articles of Association, New trustees other than the fact that Practical Action recommendations and an action in all of our offices. pays for Trustee Indemnity Insurance for plan to ensure that the charity takes vision, mission and values which align We agree and implement an individual We’re pleased to welcome two new its Trustees. They are allowed to claim positive steps towards working in line with our main charitable objective induction programme and provide in trustees to Practical Action – Waleed Global gender pay data as for travel and accommodation expenses with the Code in all ways where it is which is: to benefit the public through depth reading materials as a welcome Elbashir Elobeid and Joanne Smith. in attending meetings. There are two practicable to do so. at 5 April 2017 “the advancement of education and pack for each new Trustee, covering all Waleed Elbashir Elobeid is Sudanese. committees of the board: Although we don’t fall within scope of the relief of poverty by the promotion aspects of the role and the organisation. He’s currently an Adviser in the United the regulatory requirement to report and advancement (in ways that are We encourage all Trustees to attend Remuneration, equal opportunities Arab Emirates Foreign Assistance The Finance, Audit and Risk Committee our gender pay gap information, in charitable) of knowledge of technical, external training events and seminars and staff engagement Department, within the Ministry of oversees matters of financial control and line with our commitment to equality, economic and social science and for to enhance their skills and experience, Foreign Affairs and International performance, external and internal audit Our remuneration policy is based transparency and accountability, we’re other charitable purposes beneficial to provide greater understanding of their Cooperation. He has 25 years of and organisational risk and has oversight on an ambition to recruit and retain disclosing our global gender pay data. the community”. legal responsibilities and discuss experience in development and of our fundraising plans and activities. skilled staff who are paid fairly but This is the first time we’ve collected emerging issues affecting the sector. Practical Action’s overall aim is to humanitarian work. This includes primarily motivated to work with us this data and we’ll continue to learn Training includes induction days to meet The Nomination and Remuneration contribute to the eradication of poverty two years as Sudan Country Director because of our mission. We aim to pay how best to interpret it and use it to senior management and key employees Committee (name to change to the in developing countries by developing for Practical Action between staff at a level close to the relevant improve our practices. to familiarise themselves with the Organisation Committee) reviews the and using technology, sharing knowledge 2012 and 2014. market median, normally similar organisation. They also attend workshops composition of the Board and its and influencing others. We work closely organisations and equivalent roles in As a global organisation, our and visit international programmes committees and subsidiary companies with some of the world’s poorest people Joanne Smith has worked as an the local employment market, using commitment to diversity and inclusion to develop their knowledge of our as well as overseeing the Trustee – using technology in the areas of international fundraising consultant a fair and transparent pay system applies everywhere we operate, so programme work. recruitment process, oversees the energy access, food and agriculture, for the last decade. She’s developed free from individual bias. We aim for we measure our pay gap globally, terms and conditions of employment urban water and waste and disaster risk investment programmes in the UK and equitable remuneration for all employees i.e. we consider all employees In accordance with normal commercial of the Strategic Leadership Team and reduction, to fight poverty and change internationally. She coordinates the regardless of sex, race, religion, caste, based in all offices. If we follow the practice, we’ve purchased insurance to considers reports from our International their lives for the better. We explain International Fundraising Leadership tribe, belief, age, marital status, standard calculations stipulated by protect trustees and officers from claims Remuneration Committees. our objectives, activities over this past Forum for international fundraising pregnancy, caring responsibilities, the regulations, our global pay gap would be as follows: year and future plans in the Trustees’ The Board delegates day-to-day decision sexual orientation, gender or disability. Management remuneration committees and Directors’ Annual and Strategic making and operations to the Chief Mean: Women are paid are accountable for determining pay Report on pages 4–27. Executive and the 12 directors forming 25% more than men the Strategic Leadership Team which scales, benefit packages and cost-of- The Trustees are appointed and are includes seven regional/country directors living awards based on a consideration Median: Women are paid elected or re-elected for a term (usually who are responsible for managing of benchmarking surveys, local inflation, 16% more than men three years), according to procedures set our international programmes and recruitment and retention experience, out in our Articles of Association, which This data is based on local currency to consulting practices. affordability and financial performance, is our governing document. Trustees employment market trends, and any GBP exchange rates as at April 2017. can serve for up to a maximum of nine other relevant factors pertaining to years (except for the Chair, Vice Chair Our decision-making processes the local context. The remuneration or Treasurer, who can continue to be a The Board has a formal schedule committees are accountable to Globally, 39% of our employees are Trustee for a maximum of 12 years). of matters which are reserved for the Nomination and Remuneration women. The most significant driver of Trustee recruitment is conducted by consideration and approval at Board Committee, which is also responsible for the gender pay gap is the markedly the Nomination and Remuneration level. Included on this list are approval approving Executive Directors’ and Chief different number of men and women Committee, the name of which is to be of the charity’s objectives and strategic Executive Officers pay. in different locations. In particular, the changed to the Organisation Committee. aims and business plans, approval of high proportion of women employed in We have an equal opportunities policy group policies, the appointment and our UK office (70% of the UK workforce We place advertisements on our website, and are committed to promoting equality removal of Trustees, Members and the are women), where salaries are relatively in selected publications and on a variety of opportunity for all staff and job Chief Executive, approval of the Annual high, and the relatively low proportion of sector websites. The Board may applicants. We aim to create a working Report and Accounts, and expenditure of women employed in locations where appoint a person to be a Trustee either beyond the Chief Executive’s delegated environment in which all individuals are New trustees Waleed Elbashir Elobeid and Joanne Smith salaries are lower. Looked at location to fill a vacancy or as an additional authority. As a company limited by able to make best use of their skills, free Trustee as long as the total number by location, there’s a mixed picture,

28 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 29 with gender pay ratios varying from Nepal as a branch office of Practical We are also affiliated with two locally- strategies, aims and activities they have preparing the Trustees’ Annual Report prevention and detection of fraud and 18% in favour of women to 38.7% Action Consulting Limited in order registered overseas entities carrying the put in place are for the public benefit and Accounts (which includes the other irregularities. in favour of men. to comply with local government Practical Action name. Practical Action and this is fundamental to all areas of Annual and Strategic Report as well requirements to deliver a particular is registered as an International Non- our operation in undertaking current as the Trustees’ Administrative Report In accordance with company law, as the We’re satisfied to report that our most three year project for Agriculture Governmental Organisation in Kenya activities, planning future activities and being the Companies Act Directors’ company’s directors, we certify that: senior global leadership team is made Commercialisation and Trade. and has a board made up of two Kenya measuring outcomes. The Trustees’ and Report) for each financial year, which • So far as each director is up of 50% women and 50% men. nationals plus three directors nominated Directors’ Annual and Strategic Report give a true and fair view, in accordance aware, there is no relevant audit However, outside the UK, women are Practical Action Consulting Limited has by Practical Action in the UK. Two of explains in detail the main activities with United Kingdom Generally information of which the company’s under-represented at senior management expanded its legal footprint by locally these Practical Action nominees are from undertaken by the organisation this Accepted Accounting Practice, of the auditors are unaware. level and we believe there is more registering a number of development the Executive and the other is a Practical year – focusing on our work with the state of affairs of the Charity and Group • Each director had taken all the steps we can do to address this in some consultancy subsidiaries under the Action Trustee. As Practical Action poor women and men in developing and of the results of the Group for that (such as making enquiries of other of our offices. Practical Action Consulting name (the exerts significant influence and control countries where we have country and period. In preparing those financial directors and the auditors and any trademark being licensed from Practical over this entity, for accounting purposes regional programmes. statements, the Trustees are required to: other steps required by the director’s We’re committed to improving inclusion Action). These subsidiaries have been this entity is included in the Group’s • Select suitable accounting policies duty to exercise due care, skill and and our actions will include: set up to further the aims and objectives consolidated accounts as a branch and then apply them consistently; diligence) that he or she ought to • Identifying potential barriers that of the parent company: Risk management office. The Practical Action Foundation have taken in his or her duty as a inhibit women and men from joining The Board has undertaken an annual • Follow applicable accounting • Practical Action Consulting Private was incorporated in Delhi as a locally director, in order to make himself or and progressing within the global risk review at Group, Country and standards, subject to any Limited – a private limited company registered not-for-profit company. All the herself aware of any relevant audit Practical Action team Regional level and is satisfied to confirm material departures disclosed registered in Nepal. Practical Action directors are Indian nationals not directly information and to establish that that the risks to which the organisation and explained in the notes to the • Supporting the professional Consulting Limited in the UK has a connected to Practical Action nor does the company’s auditors are aware of is exposed are properly identified, financial statements; development and internal 51% majority shareholding Practical Action have a shareholding that information. reviewed and evaluated. Mitigation • Make sound judgments promotion of our people • Practical Action Consulting (India) in this not-for-profit company. It is strategies are in place for all key risks and estimates that are • Strengthening an awareness Private Limited – a private limited therefore not included in our Group Note: Relevant information is defined and these are continually monitored to reasonable and prudent; of gender issues in our company registered in India. It is consolidated accounts. Practical Action as: “information needed by the ensure compliance with management’s team and creating a working wholly owned by Practical Action and Practical Action Consulting Limited • Prepare the financial statements company’s auditors in connection with risk appetite. The Group has a well- environment where people Consulting Limited in the UK (based in UK) work with the Practical on the going concern basis, unless preparing their report”. established system of internal controls feel included regardless of any Action Foundation. it is inappropriate to presume • Practical Action Consulting Limited which are used to govern operations. personal characteristic that the charitable group will Auditors – a private company limited by In February 2018 Practical Action The Internal Audit function assesses • Recognising the diversity of the continue in operation. guarantee registered in Malawi. registered a branch office of Practical the adequacy and effectiveness of these A resolution will be proposed at the contexts we work in and tailoring our Practical Action Consulting Limited Action in Rwanda, in order to comply controls through a risk based Internal The Trustees confirm that they have Annual General Meeting that our approaches accordingly. in the UK is one of the two with local government requirements Audit programme. All business areas complied with the above requirements in current auditors Crowe U.K. LLP members of the company to deliver the Renewable Energy are evaluated at least once in every two preparing the financial statements. be re-appointed as auditors of the Subsidiaries and • Practical Action Consulting for Refugees (RE4R) project. This year period. The Finance, Audit and organisation for the ensuing year. Bangladesh Limited – a private Risk Committee reviews all reports and The Trustees are responsible for associated organisations branch office is fully controlled by The Trustees are pleased to present the limited company registered in receives Group wide bi-annual updates maintaining proper accounting records, The Charity has two wholly owned Practical Action. Trustees’ Report and Accounts for the Bangladesh on 10 April 2016. It on progress of agreed action points. which disclose with reasonable accuracy trading subsidiaries registered in Charity for the year ended 31 March is wholly owned by Practical Action at any time the financial position of the England and Wales: How our activities 2018, which have been prepared in Consulting Limited in the UK Charity and enable them to ensure that deliver public beneﬁt Trustees’ responsibilities for the the financial statements comply with accordance with the Charity Statement Practical Action Publishing Limited • Practical Action Consulting S.A.C. – ﬁnancial statements the Companies Act 2006. Trustees are of Recommended Practice – SORP publishes and distributes books and a private limited company registered The public benefit of our activities The Trustees (who are also directors also responsible for safeguarding the 2015 and the Companies Act 2006. journals, mainly to development in Peru on 19 May 2016. Practical is summarised on page 4. During of Practical Action for the purposes assets of the Charity and the Group and professionals, practitioners, and Action Consulting Limited in the UK 2017/18, we worked with local partners of company law) are responsible for hence for taking reasonable steps for the researchers worldwide. These activities holding 49% minority shareholding across Asia, Africa and Latin America are in line with Practical Action’s to improve the lives of 2.1 million charitable objectives. Practical Action has two dormant people, through 118 projects in 11 subsidiaries held in order to protect our countries. The Trustees have read Practical Action Consulting Limited previous company names: Intermediate the Charity Commission’s Summary provides development consultancy Technology Development Group Limited Guidance PB1, PB2 and PB3 for services to governments, NGOs, aid (CRN 1017062) and Intermediate Charity Trustees on the Public Benefit agencies and the private sector, on Technology Publications Limited (CRN Requirement and have discussed as a energy access, food and agriculture, 6424984). ATS Property Holdings (Pvt) Board the main principles contained urban water and waste and disaster was established as a private limited within the Guidance. They consider risk reduction. It operates offices in company registered in Sri Lanka in that they have complied with the the UK, Eastern, Southern and West order to purchase Practical Action’s duty (set out in Section 17(3) of the Africa, South Asia and Latin America. office premises there. It was deemed Charities Act 2011) to have due regard The Rwanda and West Africa offices appropriate to do this through a locally to public benefit guidance published have been registered locally as branches registered, wholly owned subsidiary rather by the Commission. In exercising their of Practical Action Consulting Limited. than the Charity itself, and we are at powers and duties as Trustees, the This year we have also registered present still holding this for this purpose. Board considers that the organisation’s

30 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 31 with gender pay ratios varying from Nepal as a branch office of Practical We are also affiliated with two locally- strategies, aims and activities they have preparing the Trustees’ Annual Report prevention and detection of fraud and 18% in favour of women to 38.7% Action Consulting Limited in order registered overseas entities carrying the put in place are for the public benefit and Accounts (which includes the other irregularities. in favour of men. to comply with local government Practical Action name. Practical Action and this is fundamental to all areas of Annual and Strategic Report as well requirements to deliver a particular is registered as an International Non- our operation in undertaking current as the Trustees’ Administrative Report In accordance with company law, as the We’re satisfied to report that our most three year project for Agriculture Governmental Organisation in Kenya activities, planning future activities and being the Companies Act Directors’ company’s directors, we certify that: senior global leadership team is made Commercialisation and Trade. and has a board made up of two Kenya measuring outcomes. The Trustees’ and Report) for each financial year, which • So far as each director is up of 50% women and 50% men. nationals plus three directors nominated Directors’ Annual and Strategic Report give a true and fair view, in accordance aware, there is no relevant audit However, outside the UK, women are Practical Action Consulting Limited has by Practical Action in the UK. Two of explains in detail the main activities with United Kingdom Generally information of which the company’s under-represented at senior management expanded its legal footprint by locally these Practical Action nominees are from undertaken by the organisation this Accepted Accounting Practice, of the auditors are unaware. level and we believe there is more registering a number of development the Executive and the other is a Practical year – focusing on our work with the state of affairs of the Charity and Group • Each director had taken all the steps we can do to address this in some consultancy subsidiaries under the Action Trustee. As Practical Action poor women and men in developing and of the results of the Group for that (such as making enquiries of other of our offices. Practical Action Consulting name (the exerts significant influence and control countries where we have country and period. In preparing those financial directors and the auditors and any trademark being licensed from Practical over this entity, for accounting purposes regional programmes. statements, the Trustees are required to: other steps required by the director’s We’re committed to improving inclusion Action). These subsidiaries have been this entity is included in the Group’s • Select suitable accounting policies duty to exercise due care, skill and and our actions will include: set up to further the aims and objectives consolidated accounts as a branch and then apply them consistently; diligence) that he or she ought to • Identifying potential barriers that of the parent company: Risk management office. The Practical Action Foundation have taken in his or her duty as a inhibit women and men from joining The Board has undertaken an annual • Follow applicable accounting • Practical Action Consulting Private was incorporated in Delhi as a locally director, in order to make himself or and progressing within the global risk review at Group, Country and standards, subject to any Limited – a private limited company registered not-for-profit company. All the herself aware of any relevant audit Practical Action team Regional level and is satisfied to confirm material departures disclosed registered in Nepal. Practical Action directors are Indian nationals not directly information and to establish that that the risks to which the organisation and explained in the notes to the • Supporting the professional Consulting Limited in the UK has a connected to Practical Action nor does the company’s auditors are aware of is exposed are properly identified, financial statements; development and internal 51% majority shareholding Practical Action have a shareholding that information. reviewed and evaluated. Mitigation • Make sound judgments promotion of our people • Practical Action Consulting (India) in this not-for-profit company. It is strategies are in place for all key risks and estimates that are • Strengthening an awareness Private Limited – a private limited therefore not included in our Group Note: Relevant information is defined and these are continually monitored to reasonable and prudent; of gender issues in our company registered in India. It is consolidated accounts. Practical Action as: “information needed by the ensure compliance with management’s team and creating a working wholly owned by Practical Action and Practical Action Consulting Limited • Prepare the financial statements company’s auditors in connection with risk appetite. The Group has a well- environment where people Consulting Limited in the UK (based in UK) work with the Practical on the going concern basis, unless preparing their report”. established system of internal controls feel included regardless of any Action Foundation. it is inappropriate to presume • Practical Action Consulting Limited which are used to govern operations. personal characteristic that the charitable group will Auditors – a private company limited by In February 2018 Practical Action The Internal Audit function assesses • Recognising the diversity of the continue in operation. guarantee registered in Malawi. registered a branch office of Practical the adequacy and effectiveness of these A resolution will be proposed at the contexts we work in and tailoring our Practical Action Consulting Limited Action in Rwanda, in order to comply controls through a risk based Internal The Trustees confirm that they have Annual General Meeting that our approaches accordingly. in the UK is one of the two with local government requirements Audit programme. All business areas complied with the above requirements in current auditors Crowe U.K. LLP members of the company to deliver the Renewable Energy are evaluated at least once in every two preparing the financial statements. be re-appointed as auditors of the Subsidiaries and • Practical Action Consulting for Refugees (RE4R) project. This year period. The Finance, Audit and organisation for the ensuing year. Bangladesh Limited – a private Risk Committee reviews all reports and The Trustees are responsible for associated organisations branch office is fully controlled by The Trustees are pleased to present the limited company registered in receives Group wide bi-annual updates maintaining proper accounting records, The Charity has two wholly owned Practical Action. Trustees’ Report and Accounts for the Bangladesh on 10 April 2016. It on progress of agreed action points. which disclose with reasonable accuracy trading subsidiaries registered in Charity for the year ended 31 March is wholly owned by Practical Action at any time the financial position of the England and Wales: How our activities 2018, which have been prepared in Consulting Limited in the UK Charity and enable them to ensure that deliver public beneﬁt Trustees’ responsibilities for the the financial statements comply with accordance with the Charity Statement Practical Action Publishing Limited • Practical Action Consulting S.A.C. – ﬁnancial statements the Companies Act 2006. Trustees are of Recommended Practice – SORP publishes and distributes books and a private limited company registered The public benefit of our activities The Trustees (who are also directors also responsible for safeguarding the 2015 and the Companies Act 2006. journals, mainly to development in Peru on 19 May 2016. Practical is summarised on page 4. During of Practical Action for the purposes assets of the Charity and the Group and professionals, practitioners, and Action Consulting Limited in the UK 2017/18, we worked with local partners of company law) are responsible for hence for taking reasonable steps for the researchers worldwide. These activities holding 49% minority shareholding across Asia, Africa and Latin America are in line with Practical Action’s to improve the lives of 2.1 million charitable objectives. Practical Action has two dormant people, through 118 projects in 11 subsidiaries held in order to protect our countries. The Trustees have read Practical Action Consulting Limited previous company names: Intermediate the Charity Commission’s Summary provides development consultancy Technology Development Group Limited Guidance PB1, PB2 and PB3 for services to governments, NGOs, aid (CRN 1017062) and Intermediate Charity Trustees on the Public Benefit agencies and the private sector, on Technology Publications Limited (CRN Requirement and have discussed as a energy access, food and agriculture, 6424984). ATS Property Holdings (Pvt) Board the main principles contained urban water and waste and disaster was established as a private limited within the Guidance. They consider risk reduction. It operates offices in company registered in Sri Lanka in that they have complied with the the UK, Eastern, Southern and West order to purchase Practical Action’s duty (set out in Section 17(3) of the Africa, South Asia and Latin America. office premises there. It was deemed Charities Act 2011) to have due regard The Rwanda and West Africa offices appropriate to do this through a locally to public benefit guidance published have been registered locally as branches registered, wholly owned subsidiary rather by the Commission. In exercising their of Practical Action Consulting Limited. than the Charity itself, and we are at powers and duties as Trustees, the This year we have also registered present still holding this for this purpose. Board considers that the organisation’s

30 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 31 CORPORATE DIRECTORY TRUSTEES

Legal and administrative details Practical Action is a charitable company and so its directors are also its Trustees for the purpose of charity law. The Trustees serving during the year and since the year-end were as follows: Charity name: Auditors: Helena Molyneux (Chair) Practical Action. Practical Action Crowe U.K. LLP, Nomination and Remuneration Committee is a company limited by guarantee St Bride’s House, 10 Salisbury Square, Roger Clarke (Vice Chair) Helena Molyneux (Chair) and is a Charity. London, EC4Y 8EH Nigel Saxby-Soffe (Hon Treasurer) Nigel Saxby-Soffe Mary Chadwick (resigned 27 July 2017) Charity number: 247257 Bankers: Roger Clarke Barclays Bank plc, North Street, Rugby, Waleed Elbashir Elobeid (appointed 29 September 2017) Company number: 871954 Warwickshire, CV21 2AN Valerie Jolliffe Finance, Audit and Risk Committee Imran Khan Nigel Saxby-Soffe (Chair) Registered office: Solicitors: The Robbins Building, 25 Albert Street, Bates Wells and Braithwaite, 10 Queen Brenda Lipson Mary Chadwick (resigned 27 July 2017) Rugby, Warwickshire, CV21 2SD Street Place, London, EC4R 1BE James Smith Valerie Jolliffe Joanne Smith (appointed 29 September 2017) Joanne Smith (appointed 29 September 2017) Ian Thornton Graham Young Executives Paul Turner (resigned 29 September 2017) Veronica Walford (resigned 27 July 2018) Secretary Chief Executive Group Director for Practical Action South Asia Director Helena Wayth Pat Adey (resigned 15 June 2018) Paul Smith Lomas Consulting Limited and Practical Action Achyut Luitel Graham Young John Lockett (appointed 15 June 2018) Publishing Limited Fundraising, Marketing and Greg Beeton – Managing Director Southern Africa Director Communications Director Kudzai Marovanidze Rachel Hudson East Africa Director This report, which incorporates the Directors’ Report, Trustees’ Administrative Report and Strategic Report, was approved by the Latin America Director Farida Bulhan-Aliwa Board on 21 November 2018 and signed on their behalf by Finance and Services Director Alfonso Carrasco John Lockett Sudan Director (resigned May 2018) Muna Eltahir International Director West Africa Director Amy Mina Bangladesh Director Mattia Vianello Hasin Jahan (appointed 1 February 2018) Helena Molyneux Policy and Practice Director Director Astrid Walker-Bourne

Members of the Senior Leadership Team. Members of the Board of Trustees.

32 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 33 CORPORATE DIRECTORY TRUSTEES

Members of the Senior Leadership Team. Members of the Board of Trustees.

32 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 33 Independent Auditor’s Report to the Members of Practical Action

Opinion with these requirements. We believe that determine whether there is a material • the parent company financial Misstatements can arise from fraud the audit evidence we have obtained is misstatement in the financial statements statements are not in agreement or error and are considered material We have audited the financial sufficient and appropriate to provide a or a material misstatement of the other with the accounting records if, individually or in the aggregate, statements of Practical Action for basis for our opinion. information. If, based on the work we and returns; or they could reasonably be expected the year ended 31 March 2018 have performed, we conclude that • certain disclosures of trustees’ to influence the economic decisions which comprise the Consolidated there is a material misstatement of this remuneration specified by law of users taken on the basis of these Statement of Financial Activities, Conclusions relating other information, we are required to are not made; or financial statements. the Group and Company Balance to going concern report that fact. Sheets, the Consolidated Cash Flow • we have not received all the A further description of our We have nothing to report in respect information and explanations we Statement and notes to the financial We have nothing to report in this regard. responsibilities for the audit of the statements, including a summary of of the following matters in relation require for our audit. financial statements is located on the significant accounting policies. The to which the ISAs (UK) require us to Financial Reporting Council’s website at: Opinions on other financial reporting framework that has report to you where: Responsibilities of trustees www.frc.org.uk/auditorsresponsibilities. matters prescribed by the been applied in their preparation is • the trustees’ use of the going As explained more fully in the trustees’ This description forms part of our applicable law and United Kingdom concern basis of accounting in Companies Act 2006 responsibilities statement set out on auditor’s report. Accounting Standards, including the preparation of the financial In our opinion based on the work page 31, the trustees (who are also the Financial Reporting Standard 102, the statements is not appropriate; or undertaken in the course of our audit directors of the charitable company Use of our report Financial Reporting Standard applicable • the trustees have not disclosed • the information given in the for the purposes of company law) in the UK and Republic of Ireland This report is made solely to the in the financial statements any trustees’ report, which includes the are responsible for the preparation (United Kingdom Generally Accepted charitable company’s members, as a identified material uncertainties that directors’ report and the strategic of the financial statements and for Accounting Practice). body, in accordance with Chapter 3 of may cast significant doubt about the report prepared for the purposes of being satisfied that they give a true Part 16 of the Companies Act 2006. group’s or the charitable company’s company law, for the financial year and fair view, and for such internal In our opinion the financial statements: Our audit work has been undertaken so ability to continue to adopt the going for which the financial statements control as the trustees determine is • give a true and fair view of the state that we might state to the charitable concern basis of accounting for a are prepared is consistent with the necessary to enable the preparation of of the group’s and the charitable company’s members those matters period of at least twelve months financial statements; and financial statements that are free from company’s affairs as at 31 March from the date when the financial material misstatement, whether due to we are required to state to them in 2018 and of the group’s incoming • the strategic report and the statements are authorised for issue. fraud or error. an auditor’s report and for no other resources and application of directors’ report included within the purpose. To the fullest extent permitted resources for the year then ended; trustees’ report have been prepared In preparing the financial statements, by law, we do not accept or assume Other information in accordance with applicable • have been properly prepared the trustees are responsible for assessing responsibility to anyone other than the legal requirements. in accordance with United The trustees are responsible for the the group’s or the charitable company’s charitable company and the charitable Kingdom Generally Accepted other information. The other information ability to continue as a going concern, company’s members as a body, for our Accounting Practice; and comprises the information included Matters on which we are required disclosing, as applicable, matters audit work, for this report, or for the • have been prepared in accordance in the annual report, other than the to report by exception related to going concern and using opinions we have formed. the going concern basis of accounting with the requirements of the financial statements and our auditor’s In light of the knowledge and unless the trustees either intend to Companies Act 2006. report thereon. Our opinion on the understanding of the group and liquidate the charitable company or to financial statements does not cover the the charitable company and their cease operations, or have no realistic other information and, except to the environment obtained in the course Basis for opinion alternative but to do so. extent otherwise explicitly stated in our of the audit, we have not identified We conducted our audit in accordance report, we do not express any form of material misstatements in the [strategic Kerry Brown with International Standards on Auditing assurance conclusion thereon. report or the] directors’ report included Auditor’s responsibilities for the Senior Statutory Auditor for and on (UK) (ISAs (UK)) and applicable within the trustees’ report. behalf of law. Our responsibilities under those In connection with our audit of the audit of the ﬁnancial statements Crowe U.K. LLP standards are further described in the financial statements, our responsibility We have nothing to report in respect Our objectives are to obtain reasonable Statutory Auditor Auditor’s responsibilities for the audit is to read the other information and, in of the following matters in relation to assurance about whether the financial Black Country House of the financial statements section of doing so, consider whether the other which the Companies Act 2006 requires statements as a whole are free from Rounds Green Road our report. We are independent of the information is materially inconsistent us to report to you if, in our opinion: material misstatement, whether due to group in accordance with the ethical with the financial statements or our Oldbury • the parent company has not kept fraud or error, and to issue an auditor’s requirements that are relevant to our knowledge obtained in the audit or B69 2DG adequate accounting records, or report that includes our opinion. audit of the financial statements in otherwise appears to be materially returns adequate for our audit have Reasonable assurance is a high level 7 December 2018 the UK, including the FRC’s Ethical misstated. If we identify such material not been received from branches not of assurance, but is not a guarantee Standard, and we have fulfilled our other inconsistencies or apparent material visited by us; or that an audit conducted in accordance ethical responsibilities in accordance misstatements, we are required to with ISAs (UK) will always detect a material misstatement when it exists.

34 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 35 Independent Auditor’s Report to the Members of Practical Action

34 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 35 Financial statements

Consolidated and charity balance sheets at 31 March 2018 Consolidated statement of ﬁnancial activities for the year ended 31 March 2018 (incorporating the income and expenditure statement) Group Charity

2018 2017 2018 2017 Total Total Note £’000 £’000 £’000 £’000 Unrestricted Restricted 2018 2017 FIXED ASSETS Note £’000 £’000 £’000 £’000 Intangible assets 7 4 10 - - INCOME AND ENDOWMENTS FROM: Tangible assets 7 2,207 2,246 2,166 2,233 Donations and legacies 3 10,676 3,710 14,386 12,406 Investments 8 721 8,065 721 7,517 Charitable activities 3 3,659 13,135 16,794 18,915 Programming investments 8 - - 243 243 Investments 3 27 4 31 42 Total fixed assets 2,932 10,321 3,130 9,993 Other income 3 936 6 942 1,824 CURRENT ASSETS TOTAL INCOME AND ENDOWMENTS 3 15,298 16,855 32,153 33,187 Stock 9 196 155 - - RESOURCES EXPENDED Debtors 10 6,123 7,862 5,451 7,364 Expenditure on raising funds 4 2,050 - 2,050 2,843 Cash at bank and in hand 11, 19 10,950 4,245 10,701 4,182 TOTAL EXPENDITURE ON RAISING FUNDS 2,050 - 2,050 2,843 Total current assets 17,269 12,262 16,152 11,546 Creditors: amounts falling due Expenditure on charitable activities: 12 (8,449) (10,329) (7,719) (9,233) Energy access 4 4,068 3,804 7,872 5,167 within one year Food and agriculture 4 3,698 8,062 11,760 10,373 Net current assets 8,820 1,933 8,433 2,313 Creditors: amounts falling due after more than Urban water and waste 4 518 1,603 2,121 2,197 13 (11) (17) (11) (17) one year Disaster risk reduction 4 1,828 3,398 5,226 4,832 Provisions for liabilities and charges 14 (43) (367) (32) (367) Knowledge broking 4 2,174 84 2,258 3,596 Other 4 846 62 908 2,216 Net assets before pension liability 11,698 11,870 11,520 11,922 TOTAL EXPENDITURE ON Defined benefit pension scheme liability 17 (120) (765) (120) (765) 13,132 17,013 30,145 28,381 CHARITABLE ACTIVITIES Net assets after pension liability 11,578 11,105 11,400 11,157 TOTAL EXPENDITURE 4 15,182 17,013 32,195 31,224 FUNDS Net (loss)/gain on investments 8 (6) - (6) 9 Restricted 15 1,158 1,316 1,158 1,316 NET INCOME/(EXPENDITURE) 110 (158) (48) 1,972 Unrestricted fixed assets 15 1,335 1,321 1,302 1,321 Actuarial gain on defined benefit Revaluation reserve 15 595 601 595 601 17 521 - 521 221 pension scheme Pension reserve 17 (120) (765) (120) (765) General funds 8,610 8,632 8,465 8,684 NET MOVEMENT IN FUNDS 630 ( 158) 473 2,193 Unrestricted funds net of pension liability 15 10,420 9,789 10,242 9,841 Balance brought forward 1 April 2017 9,789 1,316 11,105 8,912 Total Funds 15 11,578 11,105 11,400 11,157 Fund balances carried forward as 15,16 10,420 1,158 11,578 11,105 at 31 March 2018 The net surplus for the financial year dealt with in the financial statements of the parent charity was £244k (2017 - £2,430k) The notes on pages 39 to 63 form part of these financial statements. The notes on pages 39 to 63 form part of these financial statements.

The financial statements were approved by the board on 21 November 2018.

H. Molyneux N. Saxby-Soffe Trustee Trustee

36 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 37 Financial statements

The financial statements were approved by the board on 21 November 2018.

H. Molyneux N. Saxby-Soffe Trustee Trustee

36 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 37 NOTES ON FINANCIAL STATEMENTS

Practical Action is a company registered various sources of income and planned recognised gross at the time of receipt. Consolidated cash flow statement for the year ended 31 March 2018 and incorporated in England and Wales, expenditure. We have a reasonable Gifts in Kind – Donated goods and 2018 2017 limited by guarantee, without share expectation that we have adequate services are recognised in the financial Note £’000 £’000 capital and governed by its Articles of resources to continue in operational statements, as both income and Association dated 21 February 1966, existence for the foreseeable future. expenditure, at a reasonable estimate Cash flows from operating activities: as amended on 19 October 1995, 16 We believe that there are no material of their value in the period in which Net cash (used in)/provided by operating activities 18 (319) 3,132 October 1997 and 27 September 2012. uncertainties that call into doubt they are donated. Cash flows from investing activities: The company registered a change in the charity’s ability to continue. The name on 25 September 2009 with financial statements have therefore been Dividends, interest and rents from investments 31 51 Resources expended registration number 871954. The prepared on the basis that the charity is Expenditure is accounted for on an Purchase of property, plant and equipment (351) (499) company was registered as a charity a going concern. accruals basis and is recognised when Purchase of Investments - (350) with the Charity Commission on 26 there is a legal or constructive obligation April 1966. The principal address Net cash provided by (used in) investing activities (320) (798) Basis of consolidation to pay. Expenditure on charitable and registered office is The Robbins The consolidated financial statements activities includes the direct cost of Cash flows from financing activities: Building, 25 Albert Street, Rugby, incorporate the results of Practical planning, staffing and operating both Warwickshire, CV21 2SD. The principal Repayments of borrowing 6 (30) Action and all of its subsidiary UK and overseas activities. It also activity is to use technology to challenge Net cash provided by (used in) financing activities 6 (30) undertakings as at 31 March 2018 includes support costs, which represent poverty in developing countries and using the acquisition method of costs of providing the infrastructure and enable communities to build on their Change in cash and cash equivalents in the reporting period (633) 2,304 accounting. The results of subsidiary organisational services that support the skills and knowledge to produce undertakings are included from charitable activities. It also includes Cash and cash equivalents at the beginning of the reporting period 11,835 9,531 sustainable and practical solutions, thus the date of acquisition. Dormant governance costs. Cash and cash equivalents at the end of the reporting period 19 11,202 11,835 improving their lives and protecting the companies are excluded. world around them. The organisation is a Public No statement of financial activities is Basis of allocation of costs The notes on pages 39 to 63 form part of these financial statements. Benefit Entity. presented for the charitable company The majority of costs are directly alone as the results of the subsidiary attributable to specific charitable 1. Accounting policies companies are separately identified activities. The remaining support costs within the group accounts and the relate to more than one activity and are The financial statements have charitable company is exempt from apportioned across charitable activities been prepared under the historical presenting such a statement under and fundraising costs based on the level cost convention as modified by the section 408 of Companies Act 2006. of expenditure of these activities. revaluation of fixed asset investments, The group net income includes and are in accordance with applicable net income from the charitable law, the Companies Act 2006, Fundraising costs company itself of £244k (2017: net applicable accounting standards and This is the money we spend on activities income £2,430k). the 2015 Statement of Recommended to generate donations and legacies, Practice (‘SORP’) for Accounting and including the costs of keeping donors Reporting by Charities. Income and endowments informed about our work and the Income is accounted for on an accruals administration of gifts. Costs are made The financial statements have been basis in the period in which the charity up of the salaries of people working in prepared in accordance with Financial is entitled to income where the amount our fundraising, marketing and supporter Reporting Standard 102 (FRS 102). can be measured with reasonable care teams and the direct costs of running fundraising campaigns. They The following principal accounting certainty. Where the entitlement to do not include the costs of bidding policies have been applied: project or grant income is performance related the income is recognised when for grants and contracts shown in the the conditions for entitlement have been financial statements as income from Going concern fulfilled. Legacies are recognised when charitable activities. We have set out in the Trustees’ report receipt is reasonably certain and the a review of financial performance and amount is quantifiable. We recognise Governance costs the charity’s reserves position. We have a legacy when the executors have Governance costs consist of the statutory adequate financial resources and are determined that a payment can be made and organisational costs of operating as well placed to manage the business following the agreement of the estate’s a charitable company. risks. Our planning process, including accounts, or on notification by the financial projections, has taken into executors that payment will be made. The costs are made up of a percentage consideration the current economic Where funds are received net of tax, of salaries for management, company climate and its potential impact on the and tax is recoverable, the income is secretarial/legal costs, internal and

38 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 39 NOTES ON FINANCIAL STATEMENTS

38 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 39 external audit costs, meeting costs Investments liabilities (allocated to other recognised Unrestricted funds 2. Critical accounting for strategic leadership team and gains and losses). Investments are shown at market The Trustees, at their discretion, judgements and key sources trustees (including travel costs) and an value. Unrealised and realised may set aside funds to cover specific apportionment of support costs. The difference between the market of estimation uncertainty investment gains or losses are shown value of the assets of the scheme and future costs. Such funds are shown as net on the face of the statement of designated funds within unrestricted the present value of accrued pension In the application of the charity’s Fixed assets financial activities. funds. Where the Trustees decide liabilities is shown as an asset or liability accounting policies, which are described such funds are no longer required Tangible fixed assets are stated at cost on the balance sheet. in Note 1, Trustees are required to for the purposes intended, they may less any provisions for depreciation and Stocks make judgements, estimates and The group also operates a defined be released by transfer to general impairment. Impairments are calculated Stocks are stated at the lower of cost or assumptions about the carrying values contribution pension scheme. unrestricted funds. Unrestricted funds such that the carrying value of the net realisable value. of assets and liabilities that are not Contributions to this scheme are which are not designated are held in tangible fixed assets is the lower of its readily apparent from other sources. The charged to the statement of financial accordance with Practical Action’s cost compared with the higher of its net estimates and underlying assumptions Debtors activities in the year in which they reserves policy. In order to monitor this realisable value and its value in use. are based on historical experience and become payable. policy, funds represented by functional Debtors are measured at cost less other factors that are considered to be All fixed assets costing more than £500 fixed assets are identified separately any impairment. relevant. Actual results may differ from are capitalised. The cost of fixed assets on the face of the balance sheet within Financial instruments these estimates. which have been acquired and held in unrestricted funds. Cash at bank and in hand The charity only has financial assets the UK and International programmes The estimates and underlying Cash is represented by cash in hand and financial liabilities of a kind that is their purchase cost, together with any assumptions are reviewed on an and deposits with financial institutions qualify as basic financial instruments. Operating leases incidental expenses on acquisition. on-going basis. Revisions to accounting repayable without penalty or notice Basic financial instruments are The annual rentals on operating leases estimates are recognised in the period Depreciation is provided to write off the of not more than 24 hours. Cash initially recognised at transaction value are charged to the statement of financial in which the estimate is revised if the cost, less estimated residual values, of equivalents are highly liquid investments and subsequently measured at the activities on a straight line basis over the revision affects only that period, or in all fixed assets, except freehold property that mature in no more than 3 months settlement value, with the exception term of the lease. the period of the revision and future spread evenly over their expected from the date of acquisition and that are of bank loans which are subsequently periods if the revision affects the current useful lives. It is calculated at the readily convertible to known amounts measured at amortised cost using the Taxation and future periods. following rates: of cash with insignificant risk of effective interest rate method. Practical Action is a registered charity change in value. and as such is potentially exempt from The key sources of estimation 33.3% per annum Motor vehicles Foreign currencies uncertainty that have a significant straight line taxation of its income and gains to the Creditors and provisions Transactions in foreign currencies are extent that they fall within the charity effect on the amounts recognised in the financial statements are described Computer 33.3% per annum Creditors and provisions are recognised recorded using the rate of exchange exemptions in the Corporation Taxes in the accounting policies and are equipment straight line where the charity has a present ruling at the time of the transaction. Act 2010 or Section 256 Taxation of summarised below: Fixtures and 20.0% per annum obligation resulting from a past event Monetary balances held at the year-end Chargeable Gains Act 1992. No tax fittings straight line that will probably result in the transfer are retranslated at the rate prevailing at charge has arisen in the year. of funds to a third party and the amount that date. No provision is made against Pension liabilities Freehold property 100 years Irrecoverable VAT is chargeable due to settle the obligation can be balances held which could not readily be The charity recognises its liability to its to the projects using the partial measured or estimated reliably. Creditors converted to sterling as these are only defined benefit pension scheme which exemption method. Intangible assets and provisions are normally recognised held to be used in the short term in that involves a number of estimations as Intangible assets are stated at cost less at their settlement amount after allowing country. Gains or losses on translation of disclosed in the Pensions note 17. any provisions for amortisation and for any trade discounts due. foreign currencies are treated as credits/ Grants charges to the project for which the impairment. Impairments are calculated We work in partnership with a number Project issues provision such that the carrying value of the currency is held. of organisations globally and this Pension costs The charity recognises its intangible asset is the lower of its cost partnering is an important part of our The pension costs for the defined potential liability as disclosed in compared with the higher of its net Restricted funds work. We have a policy in place for benefit pension scheme are treated in Provisions note 14. working with partners, due diligence realisable value and its value in use. accordance with FRS 102. The following Where funds are received for specific purposes set out by the donor or implied is carried out prior to any agreement All intangible assets costing more elements are charged to the SOFA; the by the terms of appeal, these are shown being made and a memorandum of than £500 are capitalised. The cost service cost of pension provision relating as restricted income in the statement of understanding is agreed where funds of intangible assets which have been to the period, together with the cost financial activities. Expenditure for the are tracked and monitored against the acquired and held in the UK and of any benefits relating to past service purposes specified is applied against the agreed deliverables. International programmes is their (allocated to staff costs); the net return income and any amounts unexpended at purchase cost, together with any on financing which is a charge equal the balance sheet date are shown within incidental expenses on acquisition. to the increase in the present value of the scheme liabilities and a credit restricted funds. Deficits at the balance Amortisation is provided to write off the equivalent to the charity’s long-term sheet date represent amounts expended cost, less estimated residual values, of expected return on assets (allocated in advance of anticipated funding. all intangible assets. It is calculated at to staff costs); and the actuarial gain 20.0% per annum on a straight line or loss on the scheme’s assets and basis.

40 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 41 external audit costs, meeting costs Investments liabilities (allocated to other recognised Unrestricted funds 2. Critical accounting for strategic leadership team and gains and losses). Investments are shown at market The Trustees, at their discretion, judgements and key sources trustees (including travel costs) and an value. Unrealised and realised may set aside funds to cover specific apportionment of support costs. The difference between the market of estimation uncertainty investment gains or losses are shown value of the assets of the scheme and future costs. Such funds are shown as net on the face of the statement of designated funds within unrestricted the present value of accrued pension In the application of the charity’s Fixed assets financial activities. funds. Where the Trustees decide liabilities is shown as an asset or liability accounting policies, which are described such funds are no longer required Tangible fixed assets are stated at cost on the balance sheet. in Note 1, Trustees are required to for the purposes intended, they may less any provisions for depreciation and Stocks make judgements, estimates and The group also operates a defined be released by transfer to general impairment. Impairments are calculated Stocks are stated at the lower of cost or assumptions about the carrying values contribution pension scheme. unrestricted funds. Unrestricted funds such that the carrying value of the net realisable value. of assets and liabilities that are not Contributions to this scheme are which are not designated are held in tangible fixed assets is the lower of its readily apparent from other sources. The charged to the statement of financial accordance with Practical Action’s cost compared with the higher of its net estimates and underlying assumptions Debtors activities in the year in which they reserves policy. In order to monitor this realisable value and its value in use. are based on historical experience and become payable. policy, funds represented by functional Debtors are measured at cost less other factors that are considered to be All fixed assets costing more than £500 fixed assets are identified separately any impairment. relevant. Actual results may differ from are capitalised. The cost of fixed assets on the face of the balance sheet within Financial instruments these estimates. which have been acquired and held in unrestricted funds. Cash at bank and in hand The charity only has financial assets the UK and International programmes The estimates and underlying Cash is represented by cash in hand and financial liabilities of a kind that is their purchase cost, together with any assumptions are reviewed on an and deposits with financial institutions qualify as basic financial instruments. Operating leases incidental expenses on acquisition. on-going basis. Revisions to accounting repayable without penalty or notice Basic financial instruments are The annual rentals on operating leases estimates are recognised in the period Depreciation is provided to write off the of not more than 24 hours. Cash initially recognised at transaction value are charged to the statement of financial in which the estimate is revised if the cost, less estimated residual values, of equivalents are highly liquid investments and subsequently measured at the activities on a straight line basis over the revision affects only that period, or in all fixed assets, except freehold property that mature in no more than 3 months settlement value, with the exception term of the lease. the period of the revision and future spread evenly over their expected from the date of acquisition and that are of bank loans which are subsequently periods if the revision affects the current useful lives. It is calculated at the readily convertible to known amounts measured at amortised cost using the Taxation and future periods. following rates: of cash with insignificant risk of effective interest rate method. Practical Action is a registered charity change in value. and as such is potentially exempt from The key sources of estimation 33.3% per annum Motor vehicles Foreign currencies uncertainty that have a significant straight line taxation of its income and gains to the Creditors and provisions Transactions in foreign currencies are extent that they fall within the charity effect on the amounts recognised in the financial statements are described Computer 33.3% per annum Creditors and provisions are recognised recorded using the rate of exchange exemptions in the Corporation Taxes in the accounting policies and are equipment straight line where the charity has a present ruling at the time of the transaction. Act 2010 or Section 256 Taxation of summarised below: Fixtures and 20.0% per annum obligation resulting from a past event Monetary balances held at the year-end Chargeable Gains Act 1992. No tax fittings straight line that will probably result in the transfer are retranslated at the rate prevailing at charge has arisen in the year. of funds to a third party and the amount that date. No provision is made against Pension liabilities Freehold property 100 years Irrecoverable VAT is chargeable due to settle the obligation can be balances held which could not readily be The charity recognises its liability to its to the projects using the partial measured or estimated reliably. Creditors converted to sterling as these are only defined benefit pension scheme which exemption method. Intangible assets and provisions are normally recognised held to be used in the short term in that involves a number of estimations as Intangible assets are stated at cost less at their settlement amount after allowing country. Gains or losses on translation of disclosed in the Pensions note 17. any provisions for amortisation and for any trade discounts due. foreign currencies are treated as credits/ Grants charges to the project for which the impairment. Impairments are calculated We work in partnership with a number Project issues provision such that the carrying value of the currency is held. of organisations globally and this Pension costs The charity recognises its intangible asset is the lower of its cost partnering is an important part of our The pension costs for the defined potential liability as disclosed in compared with the higher of its net Restricted funds work. We have a policy in place for benefit pension scheme are treated in Provisions note 14. working with partners, due diligence realisable value and its value in use. accordance with FRS 102. The following Where funds are received for specific purposes set out by the donor or implied is carried out prior to any agreement All intangible assets costing more elements are charged to the SOFA; the by the terms of appeal, these are shown being made and a memorandum of than £500 are capitalised. The cost service cost of pension provision relating as restricted income in the statement of understanding is agreed where funds of intangible assets which have been to the period, together with the cost financial activities. Expenditure for the are tracked and monitored against the acquired and held in the UK and of any benefits relating to past service purposes specified is applied against the agreed deliverables. International programmes is their (allocated to staff costs); the net return income and any amounts unexpended at purchase cost, together with any on financing which is a charge equal the balance sheet date are shown within incidental expenses on acquisition. to the increase in the present value of the scheme liabilities and a credit restricted funds. Deficits at the balance Amortisation is provided to write off the equivalent to the charity’s long-term sheet date represent amounts expended cost, less estimated residual values, of expected return on assets (allocated in advance of anticipated funding. all intangible assets. It is calculated at to staff costs); and the actuarial gain 20.0% per annum on a straight line or loss on the scheme’s assets and basis.

40 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 41 3. Income and endowments 3. Income and endowments (cont.)

An analysis of group income by donors contributing over £250,000 is given below: Total Total

Unrestricted Restricted 2018 2017 Total Total £’000 £’000 £’000 £’000 Unrestricted Restricted 2018 2017 £’000 £’000 £’000 £’000 Donations and legacies Donations 7,749 3,710 11,459 10,027 Bill & Melinda Gates Foundation - 502 502 530 Legacies* 2,927 - 2,927 2,379 Christian Aid - 427 427 217 Total donations and legacies 10,676 3,710 14,386 12,406 DFID 94 1,618 1,712 6,876 European Environment Programme (EEP) 369 - 369 - Charitable activities European Community - 3,489 3,489 3,407 Grant income - 13,095 13,095 14,886 Food and Agriculture Organisation (FAO) - 2,217 2,217 646 Consultancy income 3,659 40 3,699 4,029 Global Resilience Partnership - 408 408 - Total charitable activities 3,659 13,135 16,794 18,915 German Technical Cooperation Agency (GTZ) - 330 330 391 Investments IKEA Foundation - 408 408 - Rental 23 - 23 23 Jersey Overseas Aid - 338 338 - Interest 4 4 8 19 Oxford Policy Management - 250 250 - Total investments 27 4 31 42 United Nations Development Programme 173 710 883 222 United Nations Environmental Programme - - - 1,058 Other USAID - 294 294 346 Publishing 586 - 586 355 Zayed Energy Prize - - - 1,206 Other income 350 6 356 1,469 ZOA - 1,150 1,150 - Total other 936 6 942 1,824 Zurich Insurance Company Ltd and its Z Zurich Foundation 170 1,439 1,609 1,561 Other (donations under £250k) 14,492 3,275 17,767 16,727 TOTAL 15,298 16,855 32,153 33,187

*Approximately £311k of residual and £129k of reversionary legacies had been notified to the charity before 31 March 2018have but not been TOTAL 15,298 16,855 32,153 33,187 recognised as income in the year as they do not meet the SORP FRS102 income recognition criteria.

Gifts in Kind During the year ended 31 March 2018, Practical Action received no gifts in kind.

Volunteers Practical Action does not have a volunteer programme. Volunteer requests are dealt with on an individual basis. In the year an individual volunteered in the major partnership fundraising department.

42 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 43 3. Income and endowments 3. Income and endowments (cont.)

An analysis of group income by donors contributing over £250,000 is given below: Total Total

Gifts in Kind During the year ended 31 March 2018, Practical Action received no gifts in kind.

42 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 43 4. Total resources expended 4. Total resources expended (cont.)

Grants Direct Support Total Total Total Total payable costs costs 2018 2017 2018 2017 £’000 £’000 £’000 £’000 £’000 Total expenditure on charitable activities (inclusive of support costs) £’000 £’000 Fundraising: - 1,914 136 2,050 2,843 Charitable activities: Charitable activities: East Africa 2,072 2,188 Energy access 959 6,391 522 7,872 5,167 Latin America 4,666 4,874 Food and agriculture 2,659 8,322 779 11,760 10,373 South Asia 5,071 4,762 Urban water and waste 555 1,425 141 2,121 2,197 Southern Africa 5,037 3,226 Disaster risk reduction 817 4,063 346 5,226 4,832 Bangladesh 4,065 3,240 Knowledge broking 69 2,039 150 2,258 3,596 Sudan 2,716 3,822 Other 3 424 30 457 1,786 West Africa 329 184 Governance - 373 78 451 430 International programme work 5,738 5,655 Governance costs 451 430 Total expenditure on charitable activities 5,062 23,037 2,046 30,145 28,381 TOTAL EXPENDITURE ON CHARITABLE ACTVITIES 30,145 28,381 TOTAL RESOURCES EXPENDED* 5,062 24,951 2,182 32,195 31,224 International programme work includes our Global Policy, Practical Action Consulting and Practical Answers knowledge work.

*Total resources expended include £82k of costs relating to irrecoverable VAT in the UK. During the year ended 31 March 2018, Practical Action made grants to partner organisations. Grants payable to partner organisations are considered to be part of the costs of activities in the furtherance of the objects of the charity because much of Support costs represent the costs for the Chief Executive, Marketing and Communications, Finance, HR, Facilities and Services the charity’s programme activity is carried out through grants to partner organisations that support long-term, sustainable benefits and Information Technology for the Head office. These are allocated across the charitable activities in proportion to direct cost. for a community, which are monitored by the charity. This represents the most appropriate view of the support costs for Practical Action. Total Total 2018 2017 2018 2017 Support costs £’000 £’000 Grants to partners greater than £200k £’000 £’000 CEO’s Office* 94 113 HIVOS 212 238 Marketing and Communications 188 211 Rangpur Dinajpur Rural Services 228 9 Finance 676 607 SEDA Nepal 265 228 IT 459 464 Sudan Vision 229 107 HR 305 228 Sustainable Agricultural Technology 467 30 Facilities and Services 460 337 Uttara Development Program Society, Dhaka 307 - Other 3,354 4,769 TOTAL 2,182 1,960 TOTAL 5,062 5,381 * CEO’s Office support costs excludes internal audit, company secretarial, board support, business planning, legal and compliance costs which form part of governance costs under direct costs. 2018 2017 2018 2017 External audit costs £’000 £’000 Governance costs £’000 £’000 Fees payable to company's auditors for the audit of the annual accounts 50 53 Salaries 97 95 Fees payable to company's auditors for the audit of the Company secretarial/legal costs 42 13 10 10 company's subsidiaries pursuant to legislation Internal and external audit costs 164 199 Fees payable to the company's auditors for the audit of the Meeting expenses (including trustees travel) 70 36 23 60 company's oversees branches Apportionment of support costs 78 87 TOTAL AUDIT FEES 83 123 TOTAL 451 430 Tax services 4 5 Other services 49 50

TOTAL NON-AUDIT FEES 53 55

44 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 45 4. Total resources expended 4. Total resources expended (cont.)

TOTAL NON-AUDIT FEES 53 55

44 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 45 5. Employees 5. Employees (cont.)

2018 2017 Salaries and benefits of the Strategic Leadership Team (SLT), the organisation’s senior executives, are overseen by the Board’s Staff costs £’000 £’000 Nomination and Remuneration Committee in line with the policy and principles for all staff pay. These are considered by the Wages and salaries 10,920 10,018 Committee annually. Social security costs 909 901 The Trustees receive no remuneration for their services. Expenses reimbursed to Trustees during the year amounted to £4,638 Pension costs (employee benefit scheme) 91 101 (2017: £3,165), which related to travel and refreshment costs for meetings, telephone and postage. Pension (stakeholder scheme) 460 380 Expenses were reimbursed to seven Trustees (2017: ten Trustees). Staff end of service costs* 462 385 Redundancy, ex gratia and termination costs 99 - Indemnity insurance is provided for Trustees at a cost of £3,500 (2017: £2,750).

Total emoluments of employees 12,941 11,785

Other staff costs 246 383 6. Net income from trading subsidiaries and summary balance sheets

The results of the principal trading subsidiaries are summarised below: TOTAL STAFF COSTS 13,187 12,168

*In order to meet local employment regulations, ‘end of service’ payments are made to employees in country programmes whenthey leave employment PAC with Practical Action. The amount of the payments are determined by the salary and length of service of the employees. Staffend of service costs Practical PAC India PAC Nepal PAC Malawi Bangladesh PAC Peru Practical change each year based on the accrued entitlement. Action (Subsidiary (Subsidiary (Subsidiary (Subsidiary (Subsidiary Action Consulting of PAC UK) of PAC UK) of PAC UK) of PAC UK) of PAC UK) Publishing 2018 2018 2018 2018 2018 2018 2018 Average number of full time equivalent employees Average number of employees £’000 £’000 £’000 £’000 £’000 £’000 £’000

2018 2017 2017 2016 Income 2,541 117 426 346 264 4 682 Number Number Number Number Expenditure (2,476) (120) (372) (362) (244) (4) (684) East Africa 31 36 East Africa 31 36 Net profit/(loss) 65 (3) 54 (16) 20 - (2) Latin America 93 104 Latin America 93 104 Income per subsidiary accounts 2,541 117 426 346 264 4 682 South Asia 91 95 South Asia 91 95 Less: interest receivable ------Southern Africa 60 41 Southern Africa 60 41 Less: grants from parent charity (230) - - - - - (96) Bangladesh 101 99 Bangladesh 101 99 Sudan 70 74 Sudan 70 74 2,311 117 426 346 264 4 586 UK 107 95 UK 112 101 Expenditure per accounts (2,476) (120) (372) (362) (244) (4) (684) Less: group charges 130 - - - - - 60 Total 553 544 Total 558 550 Less: Gift Aid ------(2,346) (120) (372) (362) (244) (4) (624)

During the year employees earning more than £60,000 pa fell into the following bands: Net effect on group results (35) (3) 54 (16) 20 - (38) for the year 2018 2017 Number Number £60,001 – £70,000 2 4 Summary Balance Sheet £70,001 – £80,000 4 4 Fixed Assets 66 - 5 37 5 - 4 £80,001 – £90,000 1 - Net current assets/(liabilities) 21 (62) 166 (117) 25 12 (26) £90,001 – £100,000 1 1 Net Assets/(liabilities) 87 (62) 171 (80) 30 12 (22) The CEO during the year earned a salary of £91,884.

Benefits are accruing to six (2017: six) higher-paid employees under Practical Action’s stakeholder pension scheme, which is Called Up share capital - 33 35 - 10 13 - open to all eligible employees. Employer contributions of £48,546 (2017: £45,911) have been made into this stakeholder Profit & loss account 87 (95) 136 (80) 20 (1) (22) scheme for these higher-paid employees. Within Practical Action’s Employee Benefits Scheme, benefits are accruing for one Surplus/(deficit) on shareholder 87 (62) 171 (80) 30 12 (22) (2017: one) higher-paid employee. funds

Key management personnel is a term used by FRS 102 for those persons having authority and responsibility for planning, directing and controlling the activities of the charity, directly or indirectly, including any director (whether executive or otherwise) of the charity. This definition includes trustees and those members of staff who are the senior management personnel to whom the trustees have delegated significant authority or responsibility in the day-to-day running of the charity. For Practical Action, our Strategic Leadership Team (SLT) consists of those executives listed on page 32. In 2017/18 the total cost of SLT was £884k (2016/17 £844k). In 2017/18 this represented 13 people (2016/17 13 people).

46 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 47 5. Employees 5. Employees (cont.)

Total emoluments of employees 12,941 11,785

Other staff costs 246 383 6. Net income from trading subsidiaries and summary balance sheets

The results of the principal trading subsidiaries are summarised below: TOTAL STAFF COSTS 13,187 12,168

46 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 47 6. Net income from trading subsidiaries and summary balance sheets (cont.) 7. Intangible and tangible assets

PAC Total Practical PAC India PAC Nepal PAC Malawi Bangladesh PAC Peru Practical Intangible fixed assets £’000 Action (Subsidiary (Subsidiary (Subsidiary (Subsidiary (Subsidiary Action Group cost Consulting of PAC UK) of PAC UK) of PAC UK) of PAC UK) of PAC UK) Publishing 2017 2017 2017 2017 2017 2017 2017 At 1 April 2017 27 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Additions - Income 2,856 91 463 20 - - 449 At 31 March 2018 27 Expenditure (2,997) (114) (417) (122) - - (465) Net profit/(loss) (141) (23) 46 (102) - - (16) Amortisation At 1 April 2017 17 Income per subsidiary accounts 2,863 91 463 20 - - 449 Charge for the year 6 Less: interest receivable ------At 31 March 2018 23 Less: grants from parent (233) - - - - - (94) charity Net Book Value (NBV) 2,630 91 463 20 - - 355 At 31 March 2017 10 Expenditure per accounts (2,997) (114) (417) (122) - - (465) At 31 March 2018 4 Less: group charges 108 - - - - - 58 Less: Gift Aid 357 ------Freehold and Furniture (2,532) (114) (417) (122) - - (407) Leasehold Motor Computer and other property vehicles equipment equipment Total Net effect on group results for Tangible fixed assets £’000 £’000 £’000 £’000 £’000 98 (23) 46 (102) - - (52) the year Group cost or valuation At 1 April 2017 1,840 1,563 1,432 937 5,772 Additions - 179 136 36 351 Summary Balance Sheet Disposals - (52) (8) (22) (82) Fixed Assets 69 - 8 - - - 10 At 31 March 2018 1,840 1,690 1,560 951 6,041 Net current assets/(liabilities) (51) (53) 114 (102) - - (30) Net Assets/(liabilities) 18 (53) 122 (102) - - (20) Depreciation At 1 April 2017 10 1,414 1,244 858 3,526 Called Up share capital - 38 39 - - - - Charge for the year 37 152 156 34 379 Profit & loss account 18 (91) 83 (102) - - (20) Disposals - (52) (5) (14) (71) Surplus/(deficit) on shareholder 18 (53) 122 (102) - - (20) funds At 31 March 2018 47 1,514 1,395 878 3,834

Net Book Value (NBV) As at 1 April 2017 1,830 149 188 79 2,246 As at 31 March 2018 1,793 176 165 73 2,207

All of the charity’s fixed assets are held primarily for direct charitable use.

As permitted by the transitional provisions of FRS 102, freehold property with a historic cost of £1,078,211 was revalued to £1,600,000 at 31 March 2016 based on a prudent assessment of market value. The charity has elected not to adopt a policy of revaluation of tangible fixed assets. The charity will retain the valuation as deemed cost and will not update that valuation. There is therefore a revaluation reserve relating to freehold property of £521,789.

NBV NBV 2018 2017 Tangible fixed assets of the subsidiary undertakings £’000 £’000 Motor Vehicles - - Computer equipment 41 5

48 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 49 6. Net income from trading subsidiaries and summary balance sheets (cont.) 7. Intangible and tangible assets

Net Book Value (NBV) As at 1 April 2017 1,830 149 188 79 2,246 As at 31 March 2018 1,793 176 165 73 2,207

All of the charity’s fixed assets are held primarily for direct charitable use.

NBV NBV 2018 2017 Tangible fixed assets of the subsidiary undertakings £’000 £’000 Motor Vehicles - - Computer equipment 41 5

48 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 49 8. Investments 8. Investments (cont.)

Group Charity The following were subsidiary undertakings at the end of the year and have all been included in the consolidated financial 2018 2017 2018 2017 statements, except Dormant Companies: £’000 £’000 £’000 £’000 Proportion of voting Cash investments Country of rights and ordinary Incorporation share capital held Nature of business Cash investments 252 7,590 252 7,042 Practical Action Consulting Limited Consultants for agriculture and Common Investment Fund 469 475 469 475 England 100% (Reg No 00952705) industry Investment bonds 32 51 32 51 Practical Action Publishing Limited Impairment provision (32) (51) (32) (51) England 100% Publishers and booksellers (Reg No 01159018) Intermediate Technology Publications Limited TOTAL 721 8,065 721 7,517 England 100% Publishers and booksellers (Dormant Company Reg No 06424984) Intermediate Technology Development Group Developers of agriculture and Programme investments England 100% Limited (Dormant company Reg No 01017062) industrial machinery Capital loans to subsidiaries - - 224 224 ATS Property Holdings Private Limited (Dormant Property purchase, lease Sri Lanka 100% Programme investments - - 19 19 company Reg No, Sri-Lanka PV 6894) moveable, immoveable property Practical Action Consulting Private Limited 51% PAC, Consultants for agriculture and TOTAL - - 243 243 Nepal (Reg No Kathmandu, 117858/070/071) 49% PA staff industry Capital loans are interest bearing, secured by fixed and floating charges and have no fixed repayment period and Practical Action Practical Action Consulting (India) 99.7% PAC Consultants for agriculture and does not intend to recall the loans in the next four years. Private Limited (Reg No, Delhi, CIN India -.3% PAC staff industry U74999DL2014FTC272886 Practical Action Consulting Limited Consultants for agriculture and Malawi 100% Reconciliation of Common investment fund: £’000 (Reg no. 14654) industry Historical cost 396 Practical Action Consulting 99% PAC Consultants for agriculture and Bangladesh Bangladesh Limited (Reg no. C-130198/2016) 1% PA staff industry Opening balance at 1 April 2017 475 Practical Action Consulting 49% PAC Consultants for agriculture and Peru Additional investment - S.A.C Limited (Reg No 20601238200) 51% PA staff industry Recognised loss (6)

Closing balance at 31 March 2018 469 9. Stock

Group Charity 2018 2017 2018 2017 £’000 £’000 £’000 £’000 Finished goods 159 143 - - Work in progress 37 12 - -

BALANCE SHEET TOTAL 196 155 - -

50 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 51 8. Investments 8. Investments (cont.)

Closing balance at 31 March 2018 469 9. Stock

Group Charity 2018 2017 2018 2017 £’000 £’000 £’000 £’000 Finished goods 159 143 - - Work in progress 37 12 - -

BALANCE SHEET TOTAL 196 155 - -

50 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 51 10. Debtors 13. Creditors: amounts falling due after more than one year

Group Charity Group Charity 2018 2017 2018 2017 2018 2017 2018 2017 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Trade debtors 1,640 1,623 1,314 1,183 Bank loan: unsecured Prepayments & accrued income 3,119 4,992 2,614 4,794 1-2 years 10 4 10 4 Amounts owed to the charity by the group - - 216 350 2-5 years - - - - Other debtors 1,364 1,373 1,307 1,163 More than 5 years - - - - Charges for bad debt - (126) - (126) Other creditors: unsecured TOTAL 6,123 7,862 5,451 7,364 1-2 years 1 13 1 13 2-5 years - - - - More than 5 years - - - - 11. Cash at bank & in hand The balance held at year-end includes £3.2m of project specific funds which are held in project specific bank accounts. TOTAL 11 17 11 17

The unsecured bank loan forms a credit fund for loans to beneficiaries of the charity to finance small scale hydro-electric 12. Creditors: amounts falling due within one year schemes in Peru.

Group Charity 14. Provisions 2018 2017 2018 2017 £’000 £’000 £’000 £’000 Balance at Provisions Provisions Balance at Trade creditors 805 844 615 501 1.4.17 created utilised 31.3.18 Payments received in advance 5,425 7,116 5,298 6,787 £’000 £’000 £’000 £’000 Accruals 665 726 604 648 Project issues 359 22 (359) 22 Taxation and social security 276 328 224 236 Rent 8 7 - 15 Other creditors 1,278 1,315 978 1,061 Redundancy - - - - Annual Leave Provision - 6 - 6 TOTAL 8,449 10,329 7,719 9,233 TOTAL 367 35 (359) 43

Payments received in advance represent grants received in advance of the period to which they relate. The analysis of such During the financial year, there was a clawback of funds to the value €135,134. Income was received and recognised in the payments is shown below: prior year relating to costs incurred on the PRISM project in Nepal but disallowed by the EU following final project audit. The clawbacks related to irrecoverable VAT, failure to follow the donor stipulated process on some procurements and unauthorised Group Charity variations to the approved budget to meet project deliverables. £’000 £’000 Balance brought forward 7,116 6,787 The remainder of the brought forward provisions were made with the expectation of needing to make repayments to donors in Sudan, following a range of accounting, budget management and compliance difficulties. However, controls, compliance and Released to income (7,116) (6,787) audit trails in Sudan are now much improved and the provision is no longer required and has been released. Received in year 5,425 5,298

BALANCE CARRIED FORWARD 5,425 5,298

52 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 53 10. Debtors 13. Creditors: amounts falling due after more than one year

The unsecured bank loan forms a credit fund for loans to beneficiaries of the charity to finance small scale hydro-electric 12. Creditors: amounts falling due within one year schemes in Peru.

BALANCE CARRIED FORWARD 5,425 5,298

52 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 53 15. Funds note 16. Total funds

Opening Closing Unrestricted Restricted 2018 2017 balance Incoming Expenditure balance funds funds Total Total 2017 resources and charges Transfer 2018 2018 £’000 £’000 £’000 £’000 2018 £’000 £’000 £’000 £’000 £’000 Fixed assets 2,013 198 2,211 2,256 Designated reserves Investments 721 - 721 8,065 Fixed asset fund 1,321 - - 14 1,335 Stock 196 - 196 155 Revaluation reserve 601 - - (6) 595 Debtors 4,167 1,956 6,123 7,862 Total designated reserves 1,922 - - 8 1,930 Cash at bank and in hand 6,524 4,426 10,950 4,245 Creditors: amount due within than 1 year (3,075) (5,374) (8,449) (10,329) Free reserves 7,867 15,298 14,667 (8) 8,490 Creditors: amount due after more than 1 year - (11) (11) (17) Provisions for liabilities and Charges (6) (37) (43) (367) Total unrestricted funds 9,789 15,298 14,667 - 10,420 Pension liability (120) - (120) (765) Energy access 98 3,695 3,804 - (11) TOTAL 10,420 1,158 11,578 11,105 Food and agriculture 240 7,708 8,062 - (114) Urban water and waste (115) 1,642 1,603 - (76) Disaster risk reduction 726 3,633 3,398 - 961 Unrestricted Restricted 2017 2016 Other 367 177 146 - 398 funds funds Total Total Total restricted funds 1,316 16,855 17,013 - 1,158 2017 £’000 £’000 £’000 £’000 Fixed assets 2,038 218 2,256 2,147 TOTAL FUNDS 11,105 32,153 31,680 - 11,578 Investments 8,065 - 8,065 4,214 Stock 155 - 155 117 Debtors 3,068 4,794 7,862 4,773 Transfers to the revaluation reserves represents a £6k decrease in the value of the Common Investment Fund in the year. Material fund balances carried forward are in respect of the Zurich Flood Resilience Programme. Cash at bank and in hand 778 3,467 4,245 5,433 Creditors: amount due within one year (3,542) (6,787) (10,329) (6,457) Creditors: amount due after more than one year - (17) (17) (47) Opening Closing Provisions for liabilities and charges (8) (359) (367) (175) balance Incoming Expenditure balance Pension liability (765) - (765) (1,093) 2016 resources and charges Transfer 2017 2017 £’000 £’000 £’000 £’000 £’000 TOTAL 9,789 1,316 11,105 8,912 Designated reserves Fixed asset fund 1,280 - 41 1,321 Revaluation reserve 592 - 9 601 Total designated reserves 1,872 - - 50 1,922

Free reserves 5,893 16,675 14,651 (50) 7,867

Total unrestricted funds 7,765 16,675 14,651 - 9,789

Energy access 118 2,845 2,865 - 98 Food and agriculture 295 7,096 7,151 - 240 Urban water and waste (21) 1,665 1,759 - (115) Disaster risk reduction 641 3,444 3,359 - 726 Other 114 1,462 1,209 - 367 Total restricted funds 1,147 16,512 16,343 - 1,316

TOTAL FUNDS 8,912 33,187 30,994 - 11,105

54 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 55 15. Funds note 16. Total funds

Free reserves 5,893 16,675 14,651 (50) 7,867

Total unrestricted funds 7,765 16,675 14,651 - 9,789

TOTAL FUNDS 8,912 33,187 30,994 - 11,105

54 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 55 17. Pension costs and FRS 102 17. Pension costs and FRS 102 (cont.)

The charity has accounted for pension costs in accordance with FRS 102. This scheme was closed to contributions in 2002. 2018 2017 c) Changes in the fair value of the scheme assets are as follows: £’000 £’000 Practical Action Employee Beneﬁts Scheme Opening fair value of scheme assets 10,892 9,325 The charity operates a defined benefits scheme in the UK. The scheme is a registered pension scheme under chapter 2 Part 4 of the Finance Act 2004. Contributions paid by the charity to the scheme during the year ending 31 March 2018 amounted Expected return 303 315 to £210,000. This contribution of £210,000 was determined by an independent qualified actuary, on the basis of the 2014 Actuarial gains (losses) - 1,394 triennial valuation, and was designed to eliminate the deficit over a seven year period from 2014. Employer contributions 210 210 Employee contributions - - The assets of the scheme are held separately from the assets of the charity, being represented by units in a segregated fund managed by an external investment manager. At 1 April 2014, the latest valuation date, the actuarial value of the schemes Benefits paid (353) (352) assets was 89% of the value of past service liabilities on an ongoing basis. The market value of the scheme’s assets at the Fair value of scheme assets at the year end 11,052 10,892 valuation date was £9,325,000, excluding money purchase AVCs.

In arriving at the 2014 actuarial valuation above, the following assumptions were adopted: 2018 2017 d) The amounts included within the statement of financial activities are as follows: £’000 £’000 2014 Current service cost (67) (69) Inflation assumption Interest on pension liabilities (322) (349) RPI 3.1% Expected return on scheme assets 303 315 CPI 2.4% Past service cost - - Salary increase assumption 4.6% Rate of increase in pensions in payment 3.1% Total amount charged within net (outgoing) resources (86) (103) Rate of increase in pensions in deferment 2.4% Actuarial gain 521 221 Investment return pre-retirement 5.0% Total amount charged to the statement of financial activities 435 118 Investment return post-retirement 4.1% Practical Action expects to contribute £210,000 to the defined pension scheme in 2017/18. The cumulative total of recognised actuarial losses is (£1,116k). A valuation has been performed in order to assess the disclosures required under FRS 102 as at 31 March 2018 by an independent qualified actuary.

2018 2017 2018 2017 £’000 £’000 a) The amounts recognised in the balance sheet are as follows: £’000 £’000 The actual return on the scheme assets in the year 303 1,709 Present value of funded obligations (11,172) (11,657) Fair value of plan assets 11,052 10,892 e) Principal assumptions at the balance sheet date (expressed as weighted averages) 2018 2017 Deficit (120) (765) Discount rate 2.6% 2.8% Amounts in the balance sheet: Expected return on scheme assets 2.6% 2.8% Rate of increase in salaries 4.5% 4.6% Liabilities (120) (765) Rate of increase of pensions in payment 3.0% 3.1% Assets - - Rate of increase of pensions in deferment 2.3% 2.4% Net liability (120) (765) Assumes life expectancy on retirements age 60: Retiring today - males 26.5 27.0 2018 2017 Retiring today - females 28.5 29.3 b) Changes in the present value of the defined benefit obligation are as follows: £’000 £’000 Retiring in 20 years - males 27.8 28.5 Opening defined benefit obligation 11,658 10,418 Retiring in 20 years - females 29.8 30.9 Service cost - 69 Interest cost 322 349 Employee contributions - - Actuarial (gains)/losses (521) 1,173 Benefits paid (286) (352) Defined benefit obligation at end of year 11,173 11,657

56 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 57 17. Pension costs and FRS 102 17. Pension costs and FRS 102 (cont.)

56 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 57 17. Pension costs and FRS 102 (cont.) 20. Contingent liabilities

The Charity has entered into an agreement with Barclays Bank to provide a bank guarantee to the value of Nepalese 2018 2017 Rupees 9,052,586 and USD 39,560 (£ 115,000) to the agency ‘Management Agribusiness innovation Centre’ (ABIC) as f) The amounts for the current and previous periods are as follows: £’000 £’000 stipulated in the contract PACT-49-SBC-CF-PACT-AF/S/QB5/27/2015 – Consultancy services Nepal, Project for Agriculture Defined benefit obligation 11,172 11,657 Commercialisation and Trade. Scheme assets 11,052 10,892 The Charity has signed a legal charge in respect of the bank guarantee, which represents the amount of the first tranche of (Deficit)/surplus (120) (765) funding provided by the donor, and funds will be held in a special Business Premium Account for the duration of the contract.

Change in assumptions 327 1,394 In fulfilment of other contractual requirements, the charity has entered into six agreements with Banco de Credito del Peru in Experience adjustments on scheme liabilities 194 87 support of charitable activities, resulting in contingent liabilities totalling £60,348. Experience adjustments on scheme assets - (1,260) The first agreement is to provide a bank guarantee to the value of S/. 62,934 (c. £13,822) as required by Programa Nacional Total gain/(loss) on STRGL 521 221 de innovacion para la competitividad y productividad (Peruvian donor) on the project – Furniture cluster development in the south of Lima, Peru.

2018 2017 The second agreement is to provide a bank guarantee to the value of USD 13,500 (c. £9,574) as required by the Inter-American Percentage of each major class of plan assets £’000 £’000 Institute for Cooperation on Agriculture (regional donor) on the project – Streamlining the market for certified stoves in producer organizations in the regions of Amazonas, Cajamarca and Piura. Equities and properties 35.1% 35.1% Property 8.9% 8.9% The third agreement is to provide a bank guarantee to the value of USD 13,500 (c. £9,574) as required by the Inter-American Bonds and gilts 54.8% 54.8% Institute for Cooperation on Agriculture (regional donor) on the project – Streamlining the market for certified stoves in producer Cash 1.2% 1.2% organizations in the regions of Arequipa, Cusco and Puno. The fourth agreement is to provide a bank guarantee to the value of S/. 3,911 (c. £ 859) as required by Programa Nacional From January 2011, the Government changed the inflation measure in respect of statutory minimum pension increases applying de Investigacion agraria (Peruvian donor) on the project – Rural promoters specialised in rehabilitation of organic coffee crops to pensions from RPI to CPI. A review of the Trust Deed and Rules has been undertaken which indicated that RPI should still be resilient to climate change in Jaen and San Ignacio. the measure for increasing pensions after retirement. However increases before retirement will be in line with CPI. The results and disclosures presented in this note are based on RPI for increases after retirement and CPI for increases before retirement. The fifth agreement is to provide a bank guarantee to the value of S/. 62,355 (c. £13,695) as required by Fondo Nacional de Capacitación Laboral y de Promoción del Empleo (Peruvian donor) on the project – Increasing employment and income of artisan family and textile weavers in province of Melgar, Puno.

18. Reconciliation of net income to net cash inﬂow from operating activities The sixth agreement is to provide a bank guarantee to the value of S/. 58,384 (c. £12,823) as required by Fondo Nacional de Capacitación Laboral y de Promoción del Empleo (Peruvian donor) on the project – Increasing competitiveness of cocoa 2018 2017 producers in Lamas, Region of San Martin. £’000 £’000 The charity won a court case relating to the ownership of its office building in Sri Lanka, but the verdict has been appealed Net income/expenditure (47) 1,971 by the other party. A rent provision to the value £142k made in previous years was released after the court case. No further Losses/(gains) on investments 6 (9) provision has been made after the appeal was lodged. The appeal is expected to continue for a number of years. Losses/(gains) on foreign Exchange 6 0 Dividends, interest and rents from investments (31) (51) Depreciation 379 377 Loss on the disposal of fixed assets 11 13 (Increase)/decrease in stocks (41) (37) Decrease/(increase) in debtors 1,738 (3,089) (Decrease)/increase in creditors and provisions (2,216) 4,064 Difference between the pension contributions and current service costs (124) (107)

Net cash provided by operating activities (319) 3,132

19. Analysis of cash and cash equivalents

2018 2017 £’000 £’000 Cash in hand 10,950 4,245 Cash held as part of investment portfolio (Note 9) 252 7,590

Total cash and cash equivalents 11,202 11,835

58 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 59 17. Pension costs and FRS 102 (cont.) 20. Contingent liabilities

Net cash provided by operating activities (319) 3,132

19. Analysis of cash and cash equivalents

2018 2017 £’000 £’000 Cash in hand 10,950 4,245 Cash held as part of investment portfolio (Note 9) 252 7,590

Total cash and cash equivalents 11,202 11,835

58 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 59 21. Big Lottery Fund 22. Department for International Development grants

The following are the restricted fund movements relating to grants from the Big Lottery Fund: 2018 2017 £’000 £’000 2018 Horticultural production Grants 1,552 2,847 and marketing for improved Sustainable lagoons livelihoods and livelihoods Total £’000 £’000 £’000 2018 Opening Balance - - - Contract/Component DFID Income Deferred from 16/17 - - - Number Funding Project funding details required by DFID £’000 £’000 Income Accrued from 16/17 - - - Pumpkins Against Poverty UK Aid Match 203559-152 495 Income Received in 17/18 - - - Safer Cities UK Aid Match 40082348 14 Income Accrued for 17/18 - - - PPEO 204343-106 (Previosuly 204343-104) 218 Supply Chain Strengthening of Construction TOTAL INCOME - - - 204857-104 825 Materials and Tools in Eartquake Affected Districts Expenditure - - - TOTAL 1,552 CLOSING BALANCE - - -

2017 Horticultural production and marketing for improved Sustainable lagoons livelihoods and livelihoods Total £’000 £’000 £’000 Opening Balance - - - Income Deferred from 15/16 - - - Income Accrued from 15/16 4 3 7 Income Received in 16/17 - (71) (71) 23. Commitments under operating leases Income Accrued for 16/17 - - - As at 31 March 2018, the group had commitments under non-cancellable operating leases as set out below: TOTAL INCOME 4 (68) (64) Expenditure (4) 68 64 2018 2017 Land and Land and CLOSING BALANCE - - - buildings buildings £’000 £’000 Operating leases which expire: Within one year 216 338 In two to five years 228 373 In over five years - -

TOTAL 444 711

The net income for the year has been stated after charging £417k (2017: £463k) for the hire of assets under operating leases.

60 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 61 21. Big Lottery Fund 22. Department for International Development grants

TOTAL 444 711

The net income for the year has been stated after charging £417k (2017: £463k) for the hire of assets under operating leases.

60 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 61 24. Related party transactions 26. Comparative statement of ﬁnancial activities for the year ended 31 March 2017 This is a breakout of the prior year statement of financial activities Practical Action Publishing Limited and Practical Action Consulting Limited are subsidiaries of Practical Action Group. Grants paid by the charity to the subsidiaries and gift aid received by the charity from the subsidiaries are disclosed in note 6. Total A management charge of £60k (2016/17 £58k) and payroll costs totalling £190k (2016/17 £185k) were also charged to Unrestricted Restricted 2017 Practical Action Publishing Limited by the charity. At the year end, Practical Action Publishing Limited owed the charity £NIL. Note £’000 £’000 £’000 A management charge of £130k (2016/17 £108k) and payroll costs totalling £664k (2016/17 £534k) were also charged to INCOME AND ENDOWMENTS FROM: Practical Action Consulting Limited from the charity. At the year-end, Practical Action Consulting Limited owed the charity £15k. Donations and legacies 3 9,141 3,265 12,406 Full declarations of interests are obtained from Trustees and Directors for their own activities outside of Practical Action Income from charitable activities 3 5,671 13,244 18,915 governance as well as those of their close family members and those entities which they control or in which they have a Income from investments 3 42 - 42 significant interest. In 2017/18 these related parties made donations in aggregate to Practical Action of £2,776. Other income 3 1,821 3 1,824

TOTAL INCOME AND ENDOWMENTS 3 16,675 16,512 33,187 25. Financial instruments RESOURCES EXPENDED Expenditure on raising funds 4 2,843 - 2,843 2018 2017 £’000 £’000 TOTAL EXPENDITURE ON RAISING FUNDS 2,843 - 2,843 Financial assets that are debt instruments measured at amortised cost 17,636 21,619 Financial liabilities that are debt instruments measured at amortised cost (3,094) (4,016) Expenditure on charitable activities: Financial Instruments measured at fair value through profit and loss 469 475 Energy access 4 2,302 2,865 5,167 Food and agriculture 4 3,222 7,151 10,373 The income, expense, gains & losses in respect of financial instruments are summarised below: Urban water and waste 4 438 1,759 2,197 2018 2017 Disaster risk reduction 4 1,473 3,359 4,832 £’000 £’000 Knowledge broking 4 3,404 192 3,596 Total interest income for financial assets measured at amortised cost 8 20 Other 4 1,199 1,017 2,216 Impairment losses on financial assets measured at amortised cost - - Total interest expense for financial liabilities held at amortised cost 1 1 TOTAL EXPENDITURE ON CHARITABLE ACTIVITIES 12,038 16,343 28,381

2018 2017 TOTAL EXPENDITURE 4 14,881 16,343 31,224 Gains/Loss on financial instruments measured at fair value through profit and loss £’000 £’000 Financial instruments measured at fair value at the start of the year: 475 116 Net gain on investment assets 8 9 - 9 (Loss)/Gain (6) 9 NET INCOME/(EXPENDITURE) 1,803 169 1,972 Purchases - 350 Financial instruments measured at fair value through at the end of the year 469 475 Actuarial (loss) on defined benefit pension scheme 17 221 - 221

NET MOVEMENT IN FUNDS 2,024 169 2,193

Balance brought forward 1 April 2016 7,765 1,147 8,912

Fund balances carried forward as at 31 March 2017 15,16 9,789 1,316 11,105

27. Post Balance Sheet Events On the 16th May 2018 Practical Action completed the sale of a freehold property, Bourton Hall. The sale value was £2.3m exclusive of VAT.

62 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 63 24. Related party transactions 26. Comparative statement of ﬁnancial activities for the year ended 31 March 2017 This is a breakout of the prior year statement of financial activities Practical Action Publishing Limited and Practical Action Consulting Limited are subsidiaries of Practical Action Group. Grants paid by the charity to the subsidiaries and gift aid received by the charity from the subsidiaries are disclosed in note 6. Total A management charge of £60k (2016/17 £58k) and payroll costs totalling £190k (2016/17 £185k) were also charged to Unrestricted Restricted 2017 Practical Action Publishing Limited by the charity. At the year end, Practical Action Publishing Limited owed the charity £NIL. Note £’000 £’000 £’000 A management charge of £130k (2016/17 £108k) and payroll costs totalling £664k (2016/17 £534k) were also charged to INCOME AND ENDOWMENTS FROM: Practical Action Consulting Limited from the charity. At the year-end, Practical Action Consulting Limited owed the charity £15k. Donations and legacies 3 9,141 3,265 12,406 Full declarations of interests are obtained from Trustees and Directors for their own activities outside of Practical Action Income from charitable activities 3 5,671 13,244 18,915 governance as well as those of their close family members and those entities which they control or in which they have a Income from investments 3 42 - 42 significant interest. In 2017/18 these related parties made donations in aggregate to Practical Action of £2,776. Other income 3 1,821 3 1,824

NET MOVEMENT IN FUNDS 2,024 169 2,193

Balance brought forward 1 April 2016 7,765 1,147 8,912

Fund balances carried forward as at 31 March 2017 15,16 9,789 1,316 11,105

27. Post Balance Sheet Events On the 16th May 2018 Practical Action completed the sale of a freehold property, Bourton Hall. The sale value was £2.3m exclusive of VAT.

62 Practical Action Trustees’ Annual Report and Accounts 2017/18 Practical Action Trustees’ Annual Report and Accounts 2017/18 63 Chandana tends her fish farms. The materials and training she’s received from Practical Action have allowed her small business to thrive.

64 Practical Action Trustees’ Annual Report and Accounts 2017/18 In spite of my husband being a fisherman, it used to be difficult for us to afford fish for household consumption. Now, not only can I sell the fish, but also keep some. I only used to do the household chores. Now I can support my husband with additional income.”

Chandana, a fish farmer in Jessore, Bangladesh

Practical Action Trustees’ Annual Report and Accounts 2017/18 65 Syndon from Manicaland in Zimbabwe, received training from Practical Action and now educates his community on making nutritious Head Office - UK food from locally-grown produce. +44(0)1926 634400 [email protected]

Bangladesh +88 02 9672683 [email protected]

Eastern Africa +254 20 2595 311 [email protected]

Latin America +511 441 2950 [email protected]

South Asia +00 977 1 4423 639 [email protected]

Southern Africa +263 4 776 107 [email protected]

Sudan +249 155662474 [email protected]

West Africa [email protected]

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