UK Report 2018 Contents

“Pragmatic, adaptive, BRAC can now play any game, whether using for-profit or non-profit approaches, to face and challenge systems of inequity.

said NGO Advisor 4 – 5 About BRAC 20 BRAC Priority – Eradicating extreme poverty in its review of BRAC 6 A message from BRAC UK leadership 21 BRAC Priority – Youth and Skills ˮ 7 – 9 BRAC UK Projects – Education and 22 BRAC Priority – Disability Inclusion Empowerment 23 BRAC Priority – Safeguarding 10 – 14 BRAC UK Projects – Equitable Economic 24 Update on our 5 year strategy Development 25 – 30 Structure, Governance and Management 15 – 17 BRAC UK Projects – Wellbeing and 31 – 33 The Auditors opinion In 2018 BRAC was ranked as the number one NGO Resilience 34 Finances: Statement of financial activities in the world for the third consecutive year by the 18 A summary of BRAC UK’s projects 35 Finances: Balance sheet Geneva-based NGO Advisor, an independent media in 2018 36 Finances: Statement of cash flows organisation committed to highlighting innovation, 19 BRAC Priority – The Rohingya Crisis 37 – 49 Notes to the financial statements impact and governance in the non-profit sector.

5 About BRAC BRAC’s Programmes BRAC reaches 120 million people in 11 countries

Ultra Poverty Education and Youth Health We implement a large-scale poverty Our education and skills To meet the needs of vulnerable BRAC is a global leader in BRAC employs more than 110,000 graduation programme to reach development programmes support communities, we developed our developing and implementing people in 11 countries, with a the poorest people and help them youth from backgrounds of poverty essential healthcare programme, cost-effective, evidence based total global expenditure of more achieve a sustainable livelihood from cradle through career. facilitated through a network of programmes to assist the most than £750 million. More than 75% in two years. To address extreme We prepare them for fulfilling community health workers. We marginalised people in extremely percent of its budget in Bangladesh poverty globally, we advise and train futures through early childhood deliver community-based services, poor, conflict prone, and post- is self-financed through its own governments, nonprofits, and UN development, pre-primary, primary, with a focus on maternal and child disaster settings. These include activity, including social enterprises entities to adapt and implement our and secondary schools, adolescent health, infectious diseases, nutrition, initiatives in education, healthcare, and microfinance. However, much approach. Studies show BRAC’s empowerment, skills development, family planning, mental health, microfinance, women’s and girls’ of BRAC’s most important work— methodology significantly improves and higher education at BRAC non-communicable diseases, empowerment, agriculture, human including its schools, healthcare, the income and well-being of University. and much more. and legal rights, and more. ultra-poor graduation programme, participants for years after they and most of its programmes outside complete the programme. 1.1M children currently enrolled 100M people receive health Bangladesh—remains reliant on in BRAC schools services outside donors. 1.9M households completed the programme in Bangladesh

UK Where we work Afghanistan Netherlands Pakistan

Agriculture Financial Inclusion Social Enterprises We provide inputs such as seeds With 7 million borrowers, we are one Our social enterprises are designed and fertilizer, and training for of the world’s largest microfinance to help people in poverty by USA Nepal farmers to improve their yields and providers. Access to financial creating access to markets. These Bangladesh profits. We link supply chains that services is an essential tool, businesses are also structured Myanmar enable farmers to access markets especially for women in poverty. to be financially sustainable. Our and sell their goods at a higher Microfinance works in tandem with enterprises include a high-end BRAC USA and BRAC UK price, with the goal of improving other programmes to increase fashion retailer that sources from Philipines are independent affiliates. food security and nutrition while clients’ economic independence. rural artisans and a dairy company also fostering economic growth. Our mobile money platform, bKash, that purchases milk from women Stichting BRAC International is one of the largest in the world, farmers. is the registered office of Liberia South Sudan 620K farmers trained and reaching more than 28 million clients. BRAC International, based Tanzania equipped 76% of BRAC’s budget in the Netherlands. Sierra Leone Uganda 7M microfinance clients in Bangladesh is self-financed

6 7 BRAC UK Projects A message from Education and Empowerment BRAC UK leadership BRAC UK aims to enable out of school children to access quality education and reintegrate into mainstream school, and empower adolescent girls.

2018 was a challenging but rewarding year for BRAC UK with our continued response to the Rohingya Crisis, one of the foremost humanitarian crises of our time. We also secured a number of exciting new projects, whilst some of our older projects came to an end. The Rohingya Crisis BRAC is proud to have delivered the largest and most comprehensive civil society response to the Rohingya Crisis to date. We have more than 4,200 full-time staff and volunteers in Cox’s Bazar, including more than 1,600 from the Rohingya population and 1,900 from host communities. Our response has been rapid, flexible and inclusive, providing holistic services to ensure the day-to-day living needs are met and promoted livelihood/self-reliance opportunities for the long-term well-being energy to Tanzania through solar meet their needs. It is a wonderful of the population affected. lighting whilst providing livelihood example of a large development Education BRAC’s ‘one room-one teacher’ Tanzania. BRAC UK continues BRAC UK has secured significant opportunities for young women. organisation working with a Disabled BRAC UK projects seek to community-based school model, to build on this work and expand donations to support our Similarly, we are bringing industry Persons Organisation (DPO) to enable children to access quality BRAC UK supports innovations to additional countries. BRAC’s response from the World Memon specific skills training to Nepal ensure people with disabilities are education and be reintegrated into in sustainable education models practical approach to realising Organisation, Vitol Foundation through our partnership with also included. mainstream schooling. BRAC UK and developments in Public Private the rights of marginalised people and Cartier Philanthropy amongst Signify, therefore making the youth 2019 is going to be an exciting supports the scaling of education Partnerships to help schools through ‘barefoot’ legal services others, and we thank them for their of Nepal most employable whilst year for BRAC UK, as we look services with a particular focus graduate from grant funding. and advice and information generous support. increasing the number of skilled to implement these innovative on post-conflict countries, which services has gained recognition electricians in the country. projects and create life changing have limited government capacity Empowerment in Bangladesh. There is significant Innovation at BRAC We are also innovating through opportunities for the world’s poor. to educate all children of school BRAC has successfully developed need for similar services in The most striking aspect of our new partnership. For example, we are age. Interventions are time limited a ground-breaking model that other BRAC countries, and projects are the innovative solutions working with Humanity & Inclusion Lewis Temple whilst we work with governments has been proven to impact the BRAC UK supports the process they provide to long established to ensure BRAC’s programmes Chief Executive and and local organisations to build life chances of adolescent girls of developing these services problems. The WESOLVE project, provide services and solutions which Simone Sultana, capacity and resources to provide currently working in South Sudan, and adapting them to fit for example, is going to bring clean include people with disabilities and Chair of Trustees education themselves. Building on Uganda, Sierra Leone and local contexts.

8 9 Sustainable primary Sustainable Early school education Childhood Development in Bangladesh in Tanzania

BRAC launched the Shishu Niketon Our project addresses the is low quality, under-resourced, by developing a ‘Hub & Spoke’ programme in 2014, as a new significant gaps in Early Childhood unregulated and inaccessible to business model for the provision of initiative piloting a cost-sharing Development (ECD) services in most children from low-income low-cost, high quality and scalable model of primary education. It Tanzania. ECD is critical for every households, with no state provision play-based ECD - improving the seeks to target families whose level child’s development; under- for 3-5 year olds. In spite of this, cognitive, physical, socio-emotional of income makes them ineligible for stimulation can have a negative demand continues to grow with and language development of BRAC’s existing non-formal primary impact on physical, emotional, a willingness to pay for low-fee children aged 3-5 from low income schools, yet who are unable to cognitive and intellectual advances ECD services, especially in Dar es families in Dar es Salaam. afford private schooling. later in education and life and can Salaam. Enrolment in pre-primary The ‘Hub’ is BRAC’s social In 2017, BRAC UK received funding lead to primary school drop-out and education is increasing significantly business - comprised of premium from the UBS Optimus Foundation exam failure. (41.6% between 2015-16), driving quality, affordable, early childhood to further develop this model by There are 7.6 million children in a proliferation of low-cost private ‘Play Labs’ or play-based ECD piloting a quality, regulated, and low Tanzania aged between 0 and schools in Dar es Salaam. centres that provide children with: cost primary school model in urban 6. Resource constraints and low This project, where the initial R&D (1) a unique play-based curriculum; Bangladesh. Specifically BRAC, quality services severely affect phase is being funded by the Vitol (2) quality, child-friendly, stimulating established 15 multi-room primary their access to much needed ECD Foundation in 2019, catalyses the spaces; (3) passionate & creative schools on rental premises with the services. The Tanzanian ECD sector ECD private sector in Tanzania, ‘play leaders’ who are trained to aim of breaking-even after three approximately 30 children per class). The project has so far achieved facilitate play and; (4) parent & years of operation. BRAC has developed an innovative excellent results in child learning, community engagement. These multi-room schools provide curriculum that builds extra-curricular parent and child satisfaction, quality The social business, ‘the Hub’ affordable (500 Taka or £4.50 per lessons (music, art, sport), computer of teacher instruction and drop-out. benefits from two income streams; month) and accessible education aided learning, and recognised 95% of children passed their annual small fees charged to parents for children, with teachers and best pedagogical practices into the exams at the end of 2018, 100% of children from low-income administrators who are held government curriculum. Teachers of parents and children surveyed households to attend Play Labs, accountable for the quality of are intensively trained and monitored reported that they were satisfied and; the provision of quality instruction and learning outcomes. by BRAC, supervised by the Head with the quality of instruction assurance, technical assistance The schools are located in District Teachers and accountable to and 92% of teachers assessed (in play-based learning & business towns closer to underserved parents. Pupil performance and demonstrated the ability to management) and finance, communities than existing public progress and educational outcomes practice child centred learning delivered to ‘Spokes’ (private ECD and private schools Each school are assessed by through annual techniques - up from 80% in businesses). offers six years of quality education cognitive tests. This helps BRAC 2017. In total, 1752 children were This is a unique, exciting solution (1 year pre-primary), in seven to track child progress and identify enrolled in the schools at the end aimed at improving the lives of room rented buildings designed which pupils need extra teacher and of 2018, which is ahead of the 3-5 year-olds from low-income for 232 children (making peer support. yearly target. households in Tanzania, by ensuring they get the quality ECD they deserve. Project Code: BD003 Project Code: TZ003 Project Name: Shishu Niketon - Fee Paying Schools Project Name: Playful learning for young children in Tanzania Donor: UBS Optimus Foundation Donor: Vitol Foundation Partner(s): BRAC Bangladesh Partner(s): BRAC Tanzania

10 11 BRAC UK Projects: Equitable Economic Development Eradicating extreme BRAC UK aims to increase the incomes of millions of people through access to financial services and poverty in Uganda livelihood support. The aim is to ensure at least one third of target clients are categorised as ‘ultra-poor.’

The Ultra-Poor Graduation into sustainable livelihoods. asset packages, some youth have Microfinance businesses, grow their livelihoods farms for their livelihoods. They approach is a comprehensive Working together, these dropped out, leaving 1620 active BRAC uses micro-finance as the and cope with crisis. provide 80 per cent of the food in time-bound, sequenced set of interdependent interventions youth remaining. Monitoring based entry point into communities, sub-saharan Africa and South and interventions targeted at creating lead to strong outcomes at the on a sample of participants shows utilising our network of sustainable Ultra Poor Graduation Southeast Asia. A focus on enabling sustainable economic and social household level including increased that 89% of the participants are micro-finance branches to provide BRAC UK focuses onsupporting smallholder farmers to increase progress in the lives of Pagethe most 9 - Vitol caseor improved study assets, food security, proficiently applying all the skills education, health and livelihood the scaling of BRAC’s ultra-poor their productivity and profits has a marginalised who live under savings and financial inclusion, acquired through livelihoods training services at low cost. Building on graduation approach that has been dramatic impact on poverty and is the extreme poverty line. The health outcomes, social integration to their enterprises and are therefore BRAC’s unmatched experience proven to enable the very poorest the foundation for rural economic approach includes livelihood and productive skills. likely to graduate from ultra-poverty in the provision of micro-finance to climb out of extreme poverty growth. BRAC UK supports training, consumption stipends, In 2018 the project made strong by the end of the project. services BRAC UK supports the and stay out. initiatives that assist smallholder asset transfers, savings and social progress in delivering life skills development of new financial farmers - especially women – integration working in tandem to and technical skills training; services and products that enable Agriculture to improve their productivity promote sustainable livelihood consumption stipends; enterprise the very poorest to access the 1.5 billion of the world’s poor live in and access to markets for options for the ultra- poor. selection; asset transfer; savings finance they need to develop rural areas and rely on smallholder their produce. Pioneered by BRAC, it has has and financial education; and social been scaled up in Bangladesh integration. Collectively these where it has graduated 1.9 million components provide the ‘big push’ households since 2002. It has also that participants need to graduate been piloted in 8 other countries. from ultra-poverty. Please see page 20 for more So far the programme has been information on the approach itself. successful in increasing participants This Ultra-Poor Graduation project, capacity to increase their income funded by Cartier Philanthropy, is through enhanced agriculture and a pilot project designed to address livestock productivity as well as the unique needs of 1650 ultra-poor petty trading. However it has not youths in Luwero and Kiryandongo been without its challenges. For © Philanthropy/Andrea Cartier Borgarello districts of Uganda. It combines example, BRAC initially focused support for immediate needs, on youth, but young people are such as consumption stipends, extremely mobile, especially in with longer term investments in Lowero district, and frequently travel life skills and livelihood technical to Kampala to seek even precarious

© Philanthropy/Andrea Cartier Borgarello training, asset transfers, enterprise job opportunities. development, savings and planning As a result, among the 1,650 for the future to transition ultra-poor participants who received youth and their families technical livelihood training full

Project Code: UGA001 and UGA002 Project Name: Targeting the Ultra-Poor: Graduation Programme in Uganda Donor: Cartier Philanthropy, Medicor Foundation Partner(s): BRAC Uganda

12 13

Logotype quadri - LOGO-CARTIERPHILANTHROPY-CMYK - C30 M100 Y88 K36 Livelihoods opportunities and clean energy to Tanzania

WE SOLVE stands for ‘Women Entrepreneurship through the Solar Value chain for Economic development in Tanzania.’ The project aims to tackle the twin problem of (1) the lack of employment and economic opportunities for women in rural Tanzania, and (2) the lack of access to clean energy, especially for rural Tanzanians. It involves a unique global partnership between BRAC – the world’s largest development organization, Solar Sister – a non- profit that trains and supports with additional investment enterprise who have trained 1,200 women to deliver clean energy from Signify (the company). Solar Sister Entrepreneurs (SSEs) to rural African communities. and We are piloting and testing in Tanzania alone, are selling Signify (formerly known as Philips an innovative business and Signify and other quality solar Lighting) - a global company technology model delivered in products to their families, offering high quality, reliable partnership which is specifically friends and communities. and safe lighting products. designed to overcome the current 3) For those who cannot afford The partners are committed to market barriers that considerably to purchase the solar products piloting and testing an innovative limit sales and jobs growth in last directly, BRAC Microfinance is business and technology model mile solar lighting value chains, and offering a new solar loan product, committed to creating clean, safe catalyse the sustained growth of the enabling clients to buy solar jobs for women in rural areas whilst Tanzanian solar lighting sector. products, therefore improving simultaneously improving the lives To overcome current market their living conditions and earning of numerous people living in dimly lit barriers, we have segmented the potential. With 146 branches conditions in rural Tanzania. value chain: in 109 districts in Tanzania, The project is funded by 1) Signify brings its range of high BRAC already has a robust the Ministry of Foreign Affairs quality, reliable and safe lighting microfinance network in place in Denmark (Danida) and products to the Tanzanian market. to assist with the mission the Signify Foundation, 2) Solar Sister, a not for profit social to light up rural Tanzania.

Project Code: TZ001 and TZ002 Project Name: WE SOLVE

Eradicating extreme poverty in Uganda Donor: Danida, Signify Foundation Partner(s): Solar Sister, BRAC Tanzania © Cartier Philanthropy/Andrea Borgarello

15 BRAC UK Projects: Well-being and Resilience BRAC UK aims to provide millions of people with access to essential and reproductive, maternal and newborn health services and reduce diarrhoeal disease by enabling access to hygienic sanitation and clean water.

Health WASH BRAC UK enables people to 48,000 rural women and reaching BRAC has achieved impressive access essential and reproductive, 110 million people in Bangladesh. scale in enabling people to access maternal and newborn health BRAC UK has supported the drinking water and hygenic services, reduces diarrhoeal piloting of new models of health sanitation (WASH) in Bangladesh - disease by enabling people to services such as the Manoshi with over 60 million people access hygienic sanitation and project in Sierra Leone, which reached in the last ten years. clean water. BRAC has a strong provides safe delivery centres So far, BRAC’s WASH work has track record in innovation in health and referrals to women giving only been in Bangladesh and there services in Bangladesh, from the birth in slum environments. is an exciting opportunity to apply Oral Rehydration work in the 1980s BRAC UK focuses on scaling the lessons learnt and experience that dramatically reduced child successful models and developing from Bangladesh to the other deaths from diarrhoeal disease to sustainable approaches and countries where BRAC works. the Shasthya Shebika community business models that support health worker model – employing healthcare delivery.

Livelihood opportunities and clean energy in Tanzania

17 Improving the health of vulnerable women, A Tech Challenge prize to combat the adolescent girls, and Fall Armyworm invasion children in South Sudan

In Juba, BRAC used a grass- with community leaders and The Fall Armyworm is an insect The Challenge Prize Centre with the Challenge finalists; promote roots level approach to not least government officials to encourage that is native to tropical and at Nesta builds capability and and share news of the Challenge to strengthen the understanding and and promote utilization of RMNCH subtropical regions of the Americas. evidence on this approach. So its networks and through its other access to sexual and reproductive services by women in their In the absence of natural control far it has attracted over 7000 appropriate Ugandan outreach health rights and information, communities. or good management, it can cause problem-solving innovators to its opportunities to increase awareness but also sought to improve the On July 8 2016, conflict arose significant damage to crops. It challenges. In this case, they were of the Challenge. BRAC also provision of reproductive, maternal, in Juba, severely compromising was first detected in Central and commissioned to implement the provided technical human newborn and child health (RMNCH) BRAC’s ability to implement the Western Africa in early 2016 and has Digital Development for Feed the resources from its current services available and raise project activities, leading to the quickly spread across virtually all of Future’s (“D2FTF”) Fall Armyworm Uganda team to participate in the greater awareness of sexual and downscaling of the scope and scale Sub-Saharan Africa. 44 countries Tech Prize. BRAC UK Programme Co-Creation Event, including an reproductive health rights. of the project. Though the original have been affected resulting in Director Nick Virr and West agricultural specialist, and an The project’s key activities target of primary beneficiaries to be damage to an area of more than Africa Programmes Lead Laura Agri-finance specialist with focused on: reached was set at 90,240 women 22 million square kilometres. It Ketteringham travelled to Uganda experience in lending to business • Training 120 Community Health and 5,760 girls of reproductive age created an estimated $13 billion in in July to facilitate the expert and agri-business in Uganda. Promoters (CHP) to provide door- and 13,440 children under 5, the crop losses with African smallholder carousel sessions for I-to-l feedback step RMNCH information, services target was revised to 20,000 women farmers being the most affected. and referrals to government health and 5,000 girls of reproductive age still be considered a great success. BRAC UK was invited to help facilities. CHPs also successfully and 9,000 children Under the age of In fact, on delivery of the project, a facilitate a challenge prize set up community health 5 (23% of the total population). total of 174% of beneficiaries were discussion, organised by Nesta, awareness sessions and ‘mother Despite being downscaled, the actually reached. which sought digital tools and to mother groups’. project actually exceeded revised On completion of the project in approaches that provide timely, • Training and equipping 4 Mobile target expectations successfully Juba, the BRAC team collaborated context-specific information that Nurses in order to facilitate ensuring that 24,076 women with government stakeholders enable smallholder farmers and health extension services in the and 12,374 adolescent girls had in establishing more effective those who support them to identify, most remote, hard-to-reach enhanced access to appropriate government health facilities, for treat, and track incidence of fall communities. RMNCH information; 13,888 example, opting to train local armyworm in Africa. • Developing a network of 120 children under five were seen by staff and equipping them with Challenge prizes are an innovative Youth Health Mentors who Mobile Nurses & Community Health the appropriate tools, rather than solution to development challenges, provided health and life skills Promoters, and 5,400 Children directly implementing the project offering rewards to whoever can messages targeted specifically under 5 were referred to health ourselves. This is just one way first or most effectively meet a at youth through Youth Health facilities for treatment. It is clear that we hope to ensure the long-term defined challenge. By taking Forums. even in the face of the challenges sustainability of the project in South the form of a public competition, • Conducting advocacy meetings met along the way, the project can Sudan for years to come. they aim to engage the broadest community of problem-solvers. Project Code: SS003 and SS004 Project Name: Improving the RMNCH of vulnerable women, Project Code: UGA003 adolescent girls, and their children in South Sudan Project Name: Fall Armyworm Tech Prize Donor: DFID, Big Lottery Fund Donor: USAID Partner(s): BRAC South Sudan Partner(s): NESTA

18 19 A summary of BRAC UK’s projects in 2018 BRAC Priority – Responding to the Bangladesh programme to provide livelihoods adolescent girls, and their children BD001 Working with children opportunities for young women in in Central and Eastern states in Some of our key achievements, at risk in the slums of Dhaka, Nepal. Funded by DFAT, BRAC UK South Sudan. till August 2018, include: Bangladesh is part of a consortium contract • Averted potential risk of This project has improved the life awarded to Palladium. Tanzania Rohingya Crisis waterborne diseases through chances of children at risk in urban NP002 Empowering Girls TZ001 WE SOLVE the provision of safe and slums in Dhaka by improving the as Lighting and Electrical Bringing solar lighting to rural dignified sanitation support health of children and their families, Technicians in Nepal Tanzania whilst creating job and access to clean water to improving the children's education Solar electrician training for opportunities for women over 400,000 people. and facilitating communication Nepali girls who are enrolled entrepreneurs through a partnership • Completed 1 million consultations about the risks slum children face. in BRAC Nepal’s Empowerment with Signify and Solar Sister. and referrals through a BD002 Graduation as Resilience and Livelihood for Adolescents TZ003 Playful learning for young comprehensive community- Research study undertaken (ELA) clubs. children in Tanzania based health and nutrition service together with the Institute of Providing sustainable Early delivery network. Development Studies and funded by Sierra Leone Childhood Development services • Kept more than 43,150 children the Economic and Social Research SL003 Pull Slum Pan Pipul, (ECD) to Tanzania through a low safe, many of which who Council (ESRC). It assessed the Freetown cost fee paying mechanism. were highly traumatised and progress of our targeting the Ultra BRAC provided improved unaccompanied, and supported Poor Graduation programme in knowledge of, and access to, Uganda their cognitive, emotional, and each of its three dimensions, being sexual and reproductive health UGA001 Targeting the Ultra- physical growth through a material, social, and psychological services across 10 slums Poor: Graduation Programme in network of 234 child friendly well-being. in Freetown. Uganda spaces, in both camps and host BD003 Bangladesh BEP SL004 Pigs Value Chain An ultra-poor graduation pilot communities. Schools – UBS Programme project aiming to address extreme • Facilitated protection support to 15 high quality, low-cost, fee-paying This project raised the productivity poverty in Central Uganda through more than 71,370 people in the schools, called Shishu Niketon's, in and incomes of 832 poor, small- a a youth targeted Graduation camps through psychosocial district towns/upazila headquarters scale farmers through improved pig programme. counselling and a network of 5 around Mymensingh, Rangpur, and production, processing, marketing UGA004 Disability Inclusive community centres and 7 women Bogra districts in Bangladesh. and income generation in 25 rural Graduation friendly spaces. BD010 Rohingya Crisis communities in five districts in The preparation phase of a disability The Rohingya are one of the most and most comprehensive civil BRAC UK raised funds to support Sierra Leone. inclusive ultra-poor graduation persecuted people on earth. society response to date, from Drawing on more than 45 years BRAC’s humanitarian response project to be implemented in They have faced prejudice and the early stages of the emergency of experience working with local to citizens of Myanmar that were South Sudan Northern Uganda, this involved a persecution over a long period of through to the current period, where communities in Bangladesh, forced to flee into the Cox’s Bazar SS002 Providing quality primary disability inclusive workshop. time, resulting in one of the largest we are now considering the longer- including 35 years in Cox’s area of neighbouring Bangladesh. education to out-of-school UPGI Ultra Poor Graduation humanitarian crises of our time. term needs of approximately half a Bazar, and the strong working children Global Initiative The Rohingya fled to Bangladesh million people. We have more than relationships we have built over Multi-Country This project provided children with A partnership with the Ultra Poor to escape state-sanctioned 4,200 full-time staff and volunteers time with the Government of MC001 Disability Inclusive free and flexible school courses, Graduation Initiative, an entity set persecution and communal violence in Cox’s Bazar, including more than Bangladesh at local and national Development tailored to their circumstances, up by BRAC to provide technical in Myanmar in three previous 1,600 from the Rohingya population levels, our response has been a Commercial contract for Disability with the aim being to prepare assistance to organisations waves: 1992, 2012 and 2016. While and 1,900 from host communities. collaboration with the government, Inclusive Development (DID) children to return to the formal implementing Ultra-Poor Graduation significant numbers returned to Our response has been rapid, United Nations agencies, local and awarded to Sightsavers. BRAC primary school system. programmes. Myanmar, some remained each flexible and inclusive. international organisations and, UK is part of the consortium and SS003 and SS004 Improving the time. In late August of 2017, virtually Since launching our response most importantly, members of the is receiving funding for work in RMNCH of vulnerable women, without warning, over half a million activities on September 10, 2017, communities affected themselves. Bangladesh, Uganda and Nepal. adolescent girls, and their people arrived in Bangladesh over we have provided holistic services BRAC UK would like to thank children in South Sudan a span of four weeks, bringing to ensure the day-to-day living needs the World Memon Organisation, Nepal Improving the reproductive, the total Rohingya population in are met and promoted livelihood/self- Vitol Foundation and Cartier NP001 PRAGATI maternal, new-born, and child Bangladesh to one million. reliance opportunities for the long-term Philanthropy for their generous Funding to develop a large scale health of vulnerable women, BRAC has delivered the largest well-being of the population affected. and timely support.

20 21 BRAC Priority – Can we BRAC Priority – eradicate extreme poverty Youth and Skills for the next generation?

Poverty rates across the globe are access decent work opportunities falling. In almost every region of in the informal sector. the world, the poorest of the poor Skills Training for Advancing are working to change their futures Resources (STAR) is a large-scale for the better. Eradicating global successful on-the-job apprenticeship poverty in our lifetime has never model that delivers the skills that been a more achievable goal. The employers need in the shortest time World Bank marks 2030 as the frame possible. Apprentices are target year to end extreme poverty, paired and placed under the guidance defined as living on less than the of a master craftsperson who already equivalent of $1.90 a day. BRAC run their own businesses and have offers support to those living in been trained on competency based ultra-poverty, a term for the lower training techniques. half of the 1.2 billion people in the world who subsist on far less. How it works BRAC has pioneered a graduation Formal structure – Learners are programme to lift people out of work-ready in six months, through the harshest conditions of ultra- a combination of theoretical and on poverty. The programme has been the job training. implemented and adapted with Certified – Aligned with the new great success across countries several criteria over the course systems through linkages with, As the global economy continues for all women and men by 2030. National Technical and Vocational and regions. Scaled up further and of 24 months. Criteria vary given for example, productive safety net to recover we are seeing slower Qualifications framework: All replicated internationally, it should the social and geographic context programmes, input transfers, and growth, widening inequalities, and STAR – Skills Training for learners get nationally certified. be part of a global strategy to of the programme. For example, the agriculture sector, as seen in not enough jobs to keep up with Advancing Resources Trade Specific Education eradicate extreme poverty. graduation criteria can include: Ethiopia’s Productive Safety Net a growing labour force. According Both young people and businesses – Specific terminologies, Programme (PSNP). to the International Labour in Bangladesh are facing a skills practical skills and basic English What is Ultra Poor Graduation? • Multiple sources of income By mainstreaming BRAC’s Organization, more than 204 million crisis. 2 million young people enter conversation skills are included. Ultra Poor Graduation is a • Cash savings Graduation Approach, Governments people were unemployed in 2015. the workforce every year but 75% of Soft skills – Entrepreneurship, comprehensive, time-bound, • No childhood marriage in the can realize their social protection, The SDGs promote sustained business leaders claim that skilled rights and social issues, labour integrated and sequenced set of family protective and preventive functions, economic growth, higher levels workers are scarce. Most young rights, financial literacy and gender interventions that aim to enable • School-aged children are going as well as maximize their promotive of productivity and technological people end up with irregular jobs. equality are taught once per week. extreme and ultra-poor households to school and transformative potential to lift innovation. Encouraging 79% of Bangladesh’s workforce is Social inclusion and decent to achieve key milestones towards people out of poverty in a sustained entrepreneurship and job creation employed by the informal sector. work – Employers are supported sustainable livelihoods and Ultra Poor Graduation not way at scale. are key to this. BRAC has a Skilling Bangladesh’s youth to meet BRAC-promoted work socioeconomic resilience, in order only ensures upward economic BRAC is providing the technical methodology for providing young will unlock the potential of standards. All marginalised groups to progress along a pathway out of mobility, but that it is also and most assistance and resources — people with the skills and support future generations and create are included. extreme poverty. importantly addresses structural from programme design and they need to gain employment opportunities for better jobs. In Demand-driven – Trades are Graduation occurs when root causes of poverty, inequality, tools to on-site training — to and will implement these to parallel, working with employers selected based on local market households achieve economic and and vulnerability Graduation can be enable governments and other help achieve full and productive to improve the quality of jobs will demands and all trainees are social advancement measured by integrated within social protection implementers to achieve this. employment, and decent work, ensure that people are able to connected with job opportunities.

22 23 BRAC Priority – BRAC Priority – Disability Inclusion Safeguarding

Inclusiveness is one of BRAC’s core This statement is in response to the customs, culture and laws of from Sexual Exploitation and values and it has always focused cases of sexual misconduct in the the country they are working in, Abuse (PSEA). These are given on supporting those experiencing aid sector. BRAC UK received a and not become involved in any life through measures such as poverty, illiteracy, disease, and request for information from the religious, political, illegal or other the establishment of a dedicated social justice. For over 40 years, Secretary of State for International issues that are inappropriate for Gender Training Group responsible BRAC has been empowering Development and submitted a staff or for BRAC to be associated for creating awareness and building communities to harness their own response on 26th February 2018. with. BRAC provides staff with the the capacity of its employees on the human and material resources to Below is a summarised version of necessary information and training prevention of sexual harassment, rise out of poverty. However, while that response: about the law, customs and culture gender violence and early marriage BRAC recognises the existing and BRAC UK attaches great of the country where they will be and also the setting up of 26 local potential contributions made by importance to safeguarding and working. This includes information Sexual Harassment Elimination persons with disabilities to the have put in place robust policies about business practices, customs, Teams located across Bangladesh overall well-being and diversity and procedures. The organisation etiquette, any risk of harassment, providing primary support, of their communities, historically, is unaware of any serious incidents discrimination or violence based on necessary information and caring its efforts at disability inclusion, that it should have reported related gender, sexuality, ethnicity, religion for survivors and witnesses. like many other mainstream to projects it has raised resources or disability. Staff personal actions However, BRAC is a global organisations, have been ad-hoc. private sector in order to ensure 2. To test, replicate and scale for or managed. while working abroad will be subject organisation with a complex Over the last decade, BRAC has the long-term sustainability of ‘disability inclusive graduation’ The majority of people working to the law of the country they are structure and we recognise that this increasingly recognized the need these mainstreaming approaches. as an effective approach for the with BRAC in the field are working in. can pose challenges. Discussions to systematically and consistently economic empowerment of ultra women. We have over 110 million BRAC UK aims to create an open, around global governance continue include people with disability in As part of the above strategy, poor people with disabilities. programme participants worldwide transparent and safe working to evolve within the BRAC Global all of our work. BRAC formalized BRAC recognizes the need to build and the majority of them are women environment where staff feel able to family. The BRAC UK board and this commitment in a pledge made partnerships to strengthen our BRAC’s major development and girls from the poorest and the speak up, as they are often the first executive will be liaising with in its Strategic Plan, 2016 – 2020 capacity to mainstreaming disability programmes are at different stages most marginalised communities. people in the Charity to witness any BRAC and BRAC International as to mainstream disability inclusion inclusive in its programming. in the implementation of Disability Empowering them and eliminating type of wrongdoing. We strongly a matter of priority to review our across its programmes, which reach Over the last decade it has built Inclusion, but a brief summary of harassment and abuse are core encourage staff to come forward safeguarding policies to ensure they over 138 million people every year. partnerships with specialist the progress is outlined throughout organisational and programmatic and report incidents and concerns are up to the mark. BRAC’s strategy for mainstreaming disability focused organizations, the rest of this document. priorities for BRAC and have been to senior staff and to trustees and to More broadly, we look forward disability inclusion is three-fold: Disabled People's Organisations, for over four decades. have open lines of communication to a nuanced debate in the sector the private sector and government BRAC UK is also strongly to facilitate the raising of such around global governance issues, 1. Work with disability-focused to achieve this. This includes committed to providing a safe concerns. Indeed, there has been especially relating to safeguarding. organizations to pilot and test a partnership with Humanity & and trusting environment for our a concerted effort to allow staff to mainstreaming approaches and Inclusion, which came into effect in staff, volunteers, beneficiaries have a direct line to trustees when document learnings. 2018 and has the following goals: and anyone else the organisation and if required and this has been 2. Scale-up of proven has contact with. BRAC UK’s utilised on numerous occasions. mainstreaming approaches within 1. To enhance BRAC’s ability to expectations around conduct are Outside of the UK, BRAC in BRAC large-scale development integrate disability inclusion detailed in our staff handbook and Bangladesh has in place a Code programmes. organizationally and in its policy documents such as the child of Conduct, Sexual Harassment 3. Build partnerships with relevant economic empowerment, health protection policy. BRAC UK expects Elimination (SHE) Policy and UN Government agencies and the and education programmes. staff to respect and comply with standard policy on Protection

24 25 An update on our Structure, Governance 5 year strategy and Management

During early 2015 BRAC UK developed a five-year strategy covering the period 2015 to 2020. The table below summarises our fundraising performance against the goals set out in the strategy.

The Trustees present their report and the audited 5 year strategy Funding secured

Fundraising Direct Supported Total financial statements for the year ended 31 December Year target £m £m £m £m 2018. The financial statements comply with current 2015 5.0 2.6 1.0 3.6 statutory requirements, the memorandum and articles of 2016 7.0 1.9 5.6 7.5 association and the Statement of Recommended Practice 2017 10.0 0.3 10.6 10.9

2018 13.0 4.4 0.7 5.1 – Accounting and Reporting by Charities (SORP 2015).

Total to 31 35.0 9.2 17.9 27.1 December 2018

2019 target 15.0 0.0 0.0 15.0

Total actual + target 50.0 9.2 17.9 42.1

Structure, Governance The board of trustees maintain Management and Management a board skills matrix to identify The Chief Executive Officer (CEO) BRAC UK has made good Bangladesh, BRAC International successfully embedded its role Structure skills and experience gaps. They reports to the trustees and is progress towards achieving its and the country programmes within the BRAC global family of The organisation is a charitable then undertake the selection and responsible for the day-to-day 5 year funding target of £50m to secure funding that goes to organisations. We thank BRAC company limited by guarantee, appointment of new trustees to management of the organisation. between 2015 and 2018, securing them directly. and BRAC International for their incorporated on 2 May 2006 the board. The appointment of The staff management team a total of £27m between April The revenue from the funding generous support of BRAC UK and registered as a charity on trustees is made on the basis of a that reports to the CEO consists 2015, when the new strategy secured will be received over during this period by underwriting 20 July 2006. The company was vote of the board. All trustees are of a Director of Programmes, was approved by the Board, and a number of years, specific to a large portion of BRAC UK’s established under a memorandum inducted in BRAC UK's projects and Finance and Resources Manager, December 2018. This table shows each individual grant agreement, core costs. of association which established procedures. They are supported to Communications & Marketing the position as at 31st December and does not relate directly to In 2019 BRAC, BRAC International, the objects and powers of the attend BRAC International board Manager and a Strategic 2018, when this report was the income reported as received BRAC UK and BRAC USA will charitable company and is meetings at least once in their Partnership Manager. Key prepared. The funding secured is annually in the financial statements. be working together to develop governed under its articles term and to visit BRAC UK country decisions, such as approving the allocated between direct funding, The 5-year fundraising target for a global strategy for the period of association. programmes to become familiar organisational strategy, annual where the funds raised come BRAC UK is very ambitious, and up until 2030. BRAC UK will also with the work on the ground every budget and appointment of the directly through BRAC UK and with a year left of the strategy be working to develop a renewed Governance 3 years. All Trustees give their time CEO are made by the Trustees. the contracts are managed period we can see it may not be and refreshed strategy for BRAC UK BRAC UK is governed by a board voluntarily and receive no benefits The CEO appoints and manages by BRAC UK, and supported reached. However, BRAC UK has to align with the new global strategy of trustees, who are responsible from the charity. Any expenses the staff of the organisation and funding, where BRAC UK provide achieved an impressive period and to achieve greater impact over for setting the strategy of the reclaimed from the charity are set decides on the efficient use of the resources to support BRAC of growth and since 2015 has the next three years. organisation and its governance. out in note6 to the accounts. resources to achieve plans and 

26 27 

Structure, Governance and Management

targets. These resources are detailed and BRAC International staff to Achievements and Fundraising Disclosures period to 31 December 2018 was Standards (United Kingdom in BRAC UK’s Annual Plans. agree priorities for programme performance in the delivery The below paragraphs are written £2.6m (2017 £1.8m). The breakdown Generally Accepted Accounting activity and fundraising. BRAC of public benefit in accordance with the Charities of that income is as follows: £2.1m Practice). Company law requires Remuneration Policy UK has a Memorandum of BRAC is committed to creating (Protection and Social Investment) restricted and £0.5m unrestricted the Trustees to prepare financial The Human Resources sub- Understanding (MOU) signed with opportunities for people living in Act of 2016. - BRAC UK raises (2017 £1.3m: £0.5m respectively). statements for each financial committee is responsible for BRAC International and BRAC poverty. BRAC was founded in the majority of its funds through BRAC and BRAC International year which give a true and fair setting the pay and remuneration which defines the funding support Bangladesh in 1972 by Sir Fazle engagement with institutions and continued to contribute to BRAC view of the state of affairs of of the staff of BRAC UK and makes that will be provided towards the Hasan Abed, and today is a global foundations. The public fundraising UK’s core expenditure, investing in the charitable company and recommendations to the Board. core costs of BRAC UK. This leader in developing cost-effective, activities undertaken are through the capacity to raise more funding. of the incoming resources and A salary structure with 6 grades, MOU also details the funding and evidence-based poverty innovations online donations via the bracuk. The income received from BRAC application of resources, including reviewed and updated in 2018, is programme activity targets that in extremely poor, conflict-prone net website, occasional events and International and BRAC was a major the income and expenditure, of used to set salary levels for staff. BRAC UK is expected to achieve and post-disaster settings. These appeals through media partners. factor in BRAC UK’s stability and the charitable company for that In November every year the HR each year. include programmes in education, BRAC UK does not use professional ability to achieve its core operations. period. In preparing these financial Committee reviews the inflation healthcare, microfinance, girls’ fundraisers or involve commercial The total expenditure in 2018 was statements, the Trustees are rate as published by the Office for empowerment, agriculture, human participators. Any email newsletters £2.2m (2017 £2.2m), of which £1.6m required to: National Statistics and agrees any Objectives and Activities and legal rights, social enterprises, with fundraising call to actions related to restricted funds and inflationary pay increase for the The Trustees’ review the aims, a bank, a university, and the world’s have a clearly marked method £0.6m to unrestricted funds (2017 • Select suitable accounting staff. The HR Committee undertakes objectives and activities of the largest mobile money platform. In of unsubscribing. Any member £1.7m: £0.5m respectively). Total policies and then apply them benchmarking exercises of peer charity each year. This report looks 2016, BRAC employed more than of the public who unsubscribes unrestricted expenditure in 2018 consistently; international charities of a similar at what the charity has achieved 100,000 people in 11 countries, with is automatically removed from increased marginally compared • Observe the methods and size by reviewing reports prepared and the outcomes of its work a total global expenditure of about BRAC UK’s subscription list. to the previous financial period, principles in the Charities SORP; by charity specialist organisations. within the last twelve months. The $1.1 Billion. BRAC is also unique There have been no complaints in line with increased costs. BRAC • Make judgements and estimates Trustees’ report the success of among the world’s major non-profits about our fundraising activities UK’s organisational growth plan that are reasonable and prudent; Affiliations each key activity and the benefits in that its overall budget is largely in 2018. BRAC UK has signed up for the 5 year strategy incorporates • State whether applicable UK BRAC UK is part of the wider BRAC the charity has brought to those self financed. In Bangladesh, where to the Fundraising Regulator and investment for staff skills and Accounting Standards and global family of organisations. The groups of people that it is set up BRAC was founded and the location adheres to the fundraising code capacity. The total funds held by statements of recommended basis for BRAC UK using the BRAC to help. The review also helps the of its global headquarters, BRAC of practice. We are committed BRAC UK at 31st December 2018 practice have been followed, brand in the European market is Trustees’ ensure the charity's aims, financed 76% of its $682 million to fundraising in a way that is is £1.2m (2017 £0.7m), £0.4m relates subject to any material departures an agreement that defines the objectives and activities remained average annual national budget respectful, open, honest and to restricted funds and £0.8m disclosed and explained in the parameters for use of the brand. focused on its stated purposes. from 2011 to 2015 from its own accountable to the public. unrestricted (2017 £0.3m: £0.4m). financial statements; and Whilst BRAC UK is an independent, The Trustees’ have referred to socially-responsible businesses. • Prepare the financial statements self-governing organisation, it is the guidance contained in the BRAC UK works as part of the Financial Review Statement of the on the going concern basis unless closely integrated into the BRAC Charity Commission's general international BRAC family to raise The 2018 financial year was responsibilities of Trustees it is inappropriate to presume global family and devotes its guidance on public benefit when awareness and funds for this successful for BRAC UK, with The Trustees (who are also directors that the charity will continue in support to funding projects that are reviewing the charity's aims and low cost, high impact approach 7 active projects running in six of BRAC UK for the purposes of operation. implemented by BRAC and BRAC objectives and in planning its future through developing partnerships countries. Income overall has company law) are responsible for The Trustees are responsible International. BRAC UK observes activities. In particular, the Trustees’ in Europe with non-governmental increased was in line with expected preparing the report of the Trustees for keeping adequate accounting the BRAC and BRAC International consider how planned activities organisations, academics, research plans, as some new projects have and the financial statements in records that disclose with board meetings and the BRAC UK will contribute to the aims and institutes, the private sector and commenced during the year. The accordance with applicable law reasonable accuracy at any time the staff closely cooperate with BRAC objectives that have been set. governments. total income for BRAC UK in the and United Kingdom Accounting financial position of the charitable 

28 29 

Structure, Governance and Management

company and enable them to financial developments, strategic will be mitigated through the to day business and to protect Auditors ensure that the financial statements annual organisational objectives development of a range of new from the risk of unanticipated Sayer Vincent LLP was appointed comply with the Companies Act and changes in the external funding relationships in addition shocks. This target is reviewed at as the charitable company's auditor 2006. They are also responsible environment. Each risk item is to DFID and the EU. least annually to ensure it remains during the year and has expressed for safeguarding the assets of the analysed according to its perceived relevant to the realities of current its willingness to continue in that charitable company and hence for potential impact and likelihood of operations and the associated risks. capacity. The report of the Trustees taking reasonable steps for the occurrence, together with actions Reserves Policy The unrestricted reserves at year has been prepared in accordance prevention and detection of fraud that either have been or will be The Board of Trustees has end stood at £0.4m (2017 £0.4m), with the special provisions and other irregularities. In so far as taken in mitigation. It is reviewed determined that BRAC UK requires equating to 7 months’ of our core applicable to companies subject the Trustees are aware: quarterly and amended accordingly. unrestricted reserves to be held for operational costs for the year. to the small companies’ regime. The Trustees are satisfied that the following purposes: The Trustees remain committed Approved by the Trustees on 22 • There is no relevant audit there are procedures in place to spend donor funds in line with May 2019 and signed on their information of which the commensurate with the size of • To fund unexpected expenditure, strategic priorities for BRAC UK behalf by: charitable company’s auditor these and other identified risks to e.g. if projects overrun, or and the wider BRAC family. These is unaware; and prevent or manage their effects. unplanned events occur reserves will be spent in accordance • The Trustees’ have taken all steps These procedures include active • To fund shortfalls in income if with plans for BRAC UK, and the that they ought to have taken to review and improvement and expected levels are not reached budget for 2019 includes an amount Simone Sultana Director make themselves aware of any investment in capacity, systems and • To fund working capital of up £0.1m to be used to support and Trustee (Chair) relevant audit information and processes, to ensure fundraising • To allow Trustees resources and BRAC UK core costs. to establish that the auditor is and grant management priorities time to act in an unforeseen BRAC UK also holds restricted Ultra Poor Graduation: Amina is a aware of that information. are met and the acceptance of risks emergency situation within reserves, representing funds graduate of the ultra-poor graduation that cannot be avoided. BRAC UK. received for specific project work. programme and lives in a village in The Trustees are responsible for This money will be held as At the end of 2018 restricted funds Faridpur of south-central Bangladesh. the maintenance and integrity of the Key risks identified identified unrestricted funds, and will be held was £0.8m (2017 £0.3m). Now an entrepreneur with three small corporate and financial information by the trustees in 2018 were: sufficient to enable the organisation These funds will be distributed in businesses, she once survived on less included on the charitable • The financial sustainability of to deal with any one or more of 2019 in line with donor restrictions. than only 25 cents per day from working company's website. Legislation in BRAC UK. This will be mitigated the above. BRAC UK will not The report has been prepared in in a brick field. She now earns her income the United Kingdom governing the through the careful building of accumulate a level of reserve accordance with the duty set out in from her nursery, her livestock, and a small preparation and dissemination of reserves, developing a robust funding that is greater than that the Charities Act 2006. grocery shop she runs in her locality. financial statements may differ from business plan and maintaining which it judges necessary to legislation in other jurisdictions. strong partnership with BRAC provide financial security. The Board and BRAC International. of Trustees have set an unrestricted Risk Management • Safeguarding incidents. This will reserves target of between two The BRAC UK Board identifies the be mitigated through improving and three months of planned core key risks facing the organisation, the policy, processes and culture operational costs, equivalent in which are documented in a risk of safeguarding throughout BRAC 2018 to approximately £0.3m. The register and then discussed with UK’s operations and partnerships. Trustees believe that this balances and approved by the Trustees. • External economic and political the need to apply funds to BRAC The risk register is updated to environment in the context of UK’s mission, whilst ensuring there reflect recent operational and the UK’s exit from the EU. This are sufficient funds to run our day

30 31 Promoting gender equality: Rasheda is a field organiser for BRAC’s gender quality action learning programme in Bangladesh. She hosts courtyard meetings for community members, addressing violence against women and promoting gender equality. Auditor's Opinion

Opinion accordance with International when the financial statements are We have audited the financial Standards on Auditing (UK) authorised for issue. statements of BRAC UK (the (ISAs (UK)) and applicable law. ‘charitable company’) for the year Our responsibilities under those Other information ended 31 December 2018 which standards are further described in The other information comprises comprise the statement of financial the Auditor’s responsibilities for the the information included in the activities, balance sheet, statement audit of the financial statements trustees’ annual report other than of cash flows and notes to the section of our report. We are the financial statements and our financial statements, including a independent of the charitable auditor’s report thereon. The summary of significant accounting company in accordance with trustees are responsible for the policies. The financial reporting the ethical requirements that are other information. Our opinion on framework that has been applied in relevant to our audit of the financial the financial statements does not their preparation is applicable law statements in the UK, including cover the other information and, and United Kingdom Accounting the FRC’s Ethical Standard and except to the extent otherwise Standards, including Financial we have fulfilled our other ethical explicitly stated in our report, we do Reporting Standard 102 The responsibilities in accordance with not express any form of assurance Financial Reporting Standard these requirements. We believe that conclusion thereon. In connection applicable in the UK and Republic of the audit evidence we have obtained with our audit of the financial Ireland (United Kingdom Generally is sufficient and appropriate to statements, our responsibility is Accepted Accounting Practice). provide a basis for our opinion. to read the other information and, in doing so, consider whether In our opinion, the financial Conclusions relating the other information is materially statements: to going concern inconsistent with the financial ● Give a true and fair view of the We have nothing to report in statements or our knowledge state of the charitable company’s respect of the following matters obtained in the audit or otherwise affairs as at 31 December 2018 in relation to which the ISAs (UK) appears to be materially misstated. and of its incoming resources and require us to report to you where: If we identify such material application of resources, including ● The trustees’ use of the going inconsistencies or apparent its income and expenditure, for concern basis of accounting in material misstatements, we are the year then ended the preparation of the financial required to determine whether ● Have been properly prepared in statements is not appropriate; or there is a material misstatement accordance with United Kingdom ● The trustees have not disclosed in the financial statements or a Generally Accepted Accounting in the financial statements any material misstatement of the other Practice identified material uncertainties information. If, based on the work ● Have been prepared in that may cast significant doubt we have performed, we conclude accordance with the requirements about the charitable company’s that there is a material misstatement of the Companies Act 2006 ability to continue to adopt of this other information, we are the going concern basis of required to report that fact. Basis for opinion accounting for a period of at least We have nothing to report We conducted our audit in twelve months from the date in this regard.

33 Auditor's Opinion Auditor's Opinion

Opinions on other matters ● Certain disclosures of trustees’ using the going concern basis of As part of an audit in accordance uncertainty exists related to 3 of Part 16 of the Companies Act prescribed by the Companies remuneration specified by law are accounting unless the trustees with ISAs (UK), we exercise events or conditions that may 2006. Our audit work has been Act 2006 not made; or either intend to liquidate the professional judgment and cast significant doubt on the undertaken so that we might In our opinion, based on the work ● We have not received all the charitable company or to cease maintain professional scepticism entity’s ability to continue as a state to the charitable company's undertaken in the course of the information and explanations we operations, or have no realistic throughout the audit. We also: going concern. If we conclude members those matters we are audit: require for our audit; or alternative but to do so. ● Identify and assess the risks of that a material uncertainty exists, required to state to them in an ● The information given in the ● The trustees were not entitled Auditor’s responsibilities material misstatement of the we are required to draw attention auditor’s report and for no other trustees’ annual report for the to prepare the financial financial statements, whether in our auditor’s report to the purpose. To the fullest extent financial year for which the statements in accordance with for the audit of the due to fraud or error, design related disclosures in the financial permitted by law, we do not accept financial statements are prepared the small companies’ regime financial statements and perform audit procedures statements or, if such disclosures or assume responsibility to anyone is consistent with the financial and take advantage of the small Our objectives are to obtain responsive to those risks, and are inadequate, to modify our other than the charitable company statements companies’ exemptions in reasonable assurance about obtain audit evidence that is opinion. Our conclusions are and the charitable company's ● The trustees’ annual report has preparing the trustees’ annual whether the financial statements sufficient and appropriate to based on the audit evidence members as a body, for our audit been prepared in accordance with report and from the requirement as a whole are free from material provide a basis for our opinion. obtained up to the date of our work, for this report, or for the applicable legal requirements to prepare a strategic report. misstatement, whether due to The risk of not detecting a auditor’s report. However, future opinions we have formed. Matters on which we fraud or error, and to issue an material misstatement resulting events or conditions may cause Responsibilities of trustees auditor’s report that includes our from fraud is higher than for the entity to cease to continue as are required to report As explained more fully in opinion. Reasonable assurance one resulting from error, as a going concern. by exception the statement of trustees’ is a high level of assurance, but fraud may involve collusion, ● Evaluate the overall presentation, In the light of the knowledge and responsibilities set out in the is not a guarantee that an audit forgery, intentional omissions, structure and content of the Jonathan Orchard understanding of the charitable trustees’ annual report, the trustees conducted in accordance with ISAs misrepresentations, or the financial statements, including (Senior statutory auditor) company and its environment (who are also the directors of (UK) will always detect a material override of internal control. the disclosures, and whether the obtained in the course of the audit, the charitable company for the misstatement when it exists. ● Obtain an understanding of financial statements represent For and on behalf of Sayer we have not identified material purposes of company law) are Misstatements can arise from fraud internal control relevant to the the underlying transactions and Vincent LLP, Statutory Auditor misstatements in the trustees’ responsible for the preparation of or error and are considered material audit in order to design audit events in a manner that achieves Invicta House, 108-114 Golden annual report. the financial statements and for if, individually or in the aggregate, procedures that are appropriate in fair presentation. Lane, LONDON, EC1Y 0TL being satisfied that they give a true they could reasonably be expected the circumstances, but not for the We have nothing to report and fair view, and for such internal to influence the economic decisions purpose of expressing an opinion We communicate with those in respect of the following control as the trustees determine is of users taken on the basis of these on the effectiveness of the entity’s charged with governance regarding, matters in relation to which the necessary to enable the preparation financial statements. internal control. among other matters, the planned Companies Act 2006 requires us of financial statements that are ● Evaluate the appropriateness of scope and timing of the audit and to report to you if, in our opinion: free from material misstatement, accounting policies used and the significant audit findings, including ● Adequate accounting records whether due to fraud or error. reasonableness of accounting any significant deficiencies in have not been kept, or returns In preparing the financial estimates and related disclosures internal control that we identify adequate for our audit have not statements, the trustees are made by the trustees. during our audit. been received from branches not responsible for assessing the ● Conclude on the appropriateness visited by us; or charitable company’s ability to of the trustees’ use of the going Use of our report ● The financial statements are not continue as a going concern, concern basis of accounting This report is made solely to the in agreement with the accounting disclosing, as applicable, matters and, based on the audit evidence charitable company's members as records and returns; or related to going concern and obtained, whether a material a body, in accordance with Chapter

34 35 Statement of financial activities

For the period ended 31 December 2018

2018 2017 Unrestricted Restricted Total Unrestricted Restricted Total Note £ £ £ £ £ £

Income from: Donations and legacies 2 16,586 14,810 31,396 29,968 34,891 64,859 Charitable activities BRAC UK Core 3 477,646 - 477,646 456,877 - 456,877 Bangladesh 3 - 1,135,221 1,135,221 - 501,688 501,688 Nepal 3 - 106,423 106,423 Sierra Leone 3 - 5,000 5,000 - 65,717 65,717 South Sudan 3 - 30,726 30,726 - 359,593 359,593 Tanzania 3 - 346,936 346,936 Uganda 3 - 420,027 420,027 - 159,946 159,946 BRAC global initiatives 3 - 74,418 74,418 - 151,176 151,176 Investments - - - 361 - 361

Total income 494,232 2,133,561 2,627,793 487,206 1,273,011 1,760,217

Expenditure on: Raising funds 4 31,458 - 31,458 23,683 - 23,683 Charitable activities BRAC UK Core 4 285,618 - 285,618 315,515 - 315,515 Bangladesh 4 101,454 672,490 773,944 44,284 558,991 603,275 Nepal 4 42,512 97,368 139,880 13,802 - 13,802 Sierra Leone 4 18,793 18,754 37,547 34,123 254,869 288,992 South Sudan 4 7,893 143,284 151,177 32,439 396,814 429,253 Tanzania 4 17,502 232,125 249,627 - - - Uganda 4 43,215 302,262 345,477 23,963 375,355 399,318 BRAC global initiatives 4 14,594 134,317 148,911 55,228 63,811 119,039

Total expenditure 563,038 1,600,600 2,163,638 543,037 1,649,840 2,192,877

Net income / (expenditure) for the year (68,806) 532,961 464,155 (55,831) (376,829) (432,660)

Transfers between funds 15 15 (15) - (31,993) 31,993 - Other gains/losses 15 42,623 - 42,623 (22,528) - (22,528)

Net income / (expenditure) (26,168) 532,946 506,778 (110,352) (344,836) (455,188)

Net movement in funds (26,168) 532,946 506,778 (110,352) (344,836) (455,188)

Reconciliation of funds: Total funds brought forward 419,655 287,053 706,708 530,007 631,889 1,161,896

Total funds carried forward 393,487 819,999 1,213,486 419,655 287,053 706,708

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 15 to the financial statements.

36 37 Balance sheet Statement of cash flows

Company no. 5802246 For the period ended 31 December 2018 As at 31 December 2018

2018 2017 Note 2018 2017 Note £ £ £ £ £ £ £ £ Fixed assets: Cash flows from operating activities Tangible assets 11 4,710 7,557 Net cash provided by operating activities 16 198,819 (552,818)

4,710 7,557 Cash flows from investing activities: Dividends, interest and rents from investments 537 361 Purchase of fixed assets (1,380) (2,286)

Current assets: Net cash provided used in investing activities (843) (1,925) Debtors 12 210,727 186,311 Cash at bank and in hand 1,187,793 947,194 Change in cash and cash equivalents in the year 197,976 (554,382)

1,398,520 1,133,505 Cash and cash equivalents at the beginning of the year 947,194 1,524,104 Liabilities: Change in cash and cash equivalents due to Creditors: amounts falling due within one year 13 189,743 434,354 exchange rate movements 42,623 (22,528)

Net current assets 1,208,776 699,151 Cash and cash equivalents at the end of the year 1,187,793 947,194

Total assets less current liabilities 1,213,486 706,708

Total net assets 1,213,486 706,708

The funds of the charity: 15 Restricted income funds 819,999 287,053 Unrestricted income funds: General funds 393,487 419,655

Total unrestricted funds 393,487 419,655

Total charity funds 1,213,486 706,708

Approved by the trustees on 22 May 2019 and signed on their behalf by Simone Sultana, Chair.

38 39 • Other expenditure represents those items not falling • Furniture, Fixtures and Equipment 25% into any other heading • Computer Equipment 25% Notes to the • Leasehold Improvements 25% Irrecoverable VAT is charged as a cost against the • Website 25% activity for which the expenditure was incurred. l) Cash at bank and in hand Financial statements i) Allocation of support costs Cash at bank and cash in hand includes cash and Resources expended are allocated to the particular short term highly liquid investments with a short activity where the cost relates directly to that maturity of three months or less from the date of For the period ended 31 December 2018 activity. However, the cost of overall direction and acquisition or opening of the deposit or similar administration of each activity, comprising the account. Cash balances exclude any funds held on salary and overhead costs of the support functions behalf of service users. are apportioned on the following basis, which is an 1. Accounting policies Income from government and other grants, whether estimate of the amount attributable to each activity, m) Creditors and provisions a) Statutory information 'capital' grants or 'revenue' grants, is recognised based on the number of projects in each country of Creditors and provisions are recognised where the BRAC UK is a charitable company limited by when the charity has entitlement to the funds, any operation during the year. charity has a present obligation resulting from a guarantee and is incorporated in England and Wales. performance conditions attached to the grants have past event that will probably result in the transfer been met, it is probable that the income will be Support and governance costs are re-allocated to of funds to a third party and the amount due to The registered office address and principal place of received and the amount can be measured reliably each of the activities on the following basis which settle the obligation can be measured or estimated business is 19 Wootton Street, LONDON, SE1 8TG. and is not deferred. is an estimate, based on staff time, of the amount reliably. Creditors and provisions are normally attributable to each activity recognised at their settlement amount after allowing b) Basis of preparation Income received in advance of the provision of a for any trade discounts due. The financial statements have been prepared in specified service is deferred until the criteria for income • BRAC UK core charitable activities 13% accordance with Accounting and Reporting by recognition are met. • Bangladesh charitable activities 40% n) Financial instruments Charities: Statement of Recommended Practice • Nepal charitable activities 13% The charity only has financial assets and financial applicable to charities preparing their accounts in f) Interest receivable • Sierra Leone charitable activities 3% liabilities of a kind that qualify as basic financial accordance with the Financial Reporting Standard Interest on funds held on deposit is included when • South Sudan charitable activities 3% instruments. Basic financial instruments are initially applicable in the UK and Republic of Ireland (FRS receivable and the amount can be measured reliably • Uganda charitable activities 13% recognised at transaction value and subsequently 102) (effective 1 January 2015)– (Charities SORP FRS by the charity; this is normally upon notification of the • Tanzania charitable activities 13% measured at their settlement value with the 102), the Financial Reporting Standard applicable interest paid or payable by the bank. exception of bank loans which are subsequently in the UK and Republic of Ireland (FRS 102) (March Governance costs are the costs associated with measured at amortised cost using the effective 2018) and the Companies Act 2006. g) Fund accounting the governance arrangements of the charity. These interest method. Restricted funds are to be used for specific costs are associated with constitutional and statutory Assets and liabilities are initially recognised at purposes as laid down by the donor. Expenditure requirements and include any costs associated with the o) Pensions historical cost or transaction value unless otherwise which meets these criteria is charged to the fund. strategic management of the charity's activities. BRAC UK is dealing with its pension arrangements stated in the relevant accounting policy or note. through the NEST pension scheme. After successful Unrestricted funds are donations and other incoming j) Operating leases completion of a new staff memberís probationary c) Public benefit entity resources received or generated for the charitable Rental charges are charged on a straight line basis period, BRAC will contribute up to 4% per annum The charitable company meets the definition of a purposes. over the term of the lease. into our selected pension scheme, NEST, provided public benefit entity under FRS 102. the employee will meet (or exceed) this amount. Designated funds are unrestricted funds earmarked k) Tangible fixed assets d) Going concern by the trustees for particular purposes. Items of equipment are capitalised where the The scheme is compatible with legislation introduced The trustees consider that there are no material purchase price exceeds £500. Depreciation costs in October 2012 that requires all employers to offer a uncertainties about the charitable company's ability h) Expenditure and irrecoverable VAT are allocated to activities on the basis of the use workplace pension scheme to its employees, which to continue as a going concern. Expenditure is recognised once there is a legal or of the related assets in those activities. Assets are BRAC UK was required to comply with by February constructive obligation to make a payment to a third reviewed for impairment if circumstances indicate 2017. The trustees do not consider that there are any party, it is probable that settlement will be required their carrying value may exceed their net realisable sources of estimation uncertainty at the reporting and the amount of the obligation can be measured value and value in use. p) Foreign currencies date that have a significant risk of causing a material reliably. Expenditure is classified under the following Monetary assets and liabilities in foreign currencies adjustment to the carrying amounts of assets and activity headings: Where fixed assets have been revalued, any excess are translated into sterling at the rates of exchange liabilities within the next reporting period. • Costs of raising funds relate to the costs incurred by between the revalued amount and the historic cost ruling at the balance sheet date. Transactions in the charitable company in inducing third parties to of the asset will be shown as a revaluation reserve in foreign currencies are translated into sterling at the e) Income make voluntary contributions to it, as well as the cost the balance sheet. rate of exchange ruling at the date of transaction. Income is recognised when the charity has of any activities with a fundraising purpose Exchange differences are taken into account in entitlement to the funds, any performance conditions • Expenditure on charitable activities includes the costs of Depreciation is provided at rates calculated to write arriving at the net incoming resources for the year. attached to the income have been met, it is probable delivering services and other international development down the cost of each asset to its estimated residual that the income will be received and that the amount activities undertaken to further the purposes of the value over its expected useful life. The depreciation can be measured reliably. charity and their associated support costs rates in use are as follows:

40 41 Notes to the Financial statements continued 2. Income from donations 2018 2017 Unrestricted Restricted Total Unrestricted Restricted Total £ £ £ £ £ £ Individual Donations 16,586 14,810 31,396 29,968 34,891 64,859

16,586 14,810 31,396 29,968 34,89 64,859

3. Income from charitable activities 2018 2017 2018 2017 Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total Unrestricted Restricted Total £ £ £ £ £ £ £ £ £ £ £ £ BRAC International 391,000 - 391,000 456,814 - 456,814 Sub-total for South Sudan 4251 charitable activities - 30,726 30,726 - 359,593 359,593 Project contributions for Income from Cartier Foundation - 182,920 182,920 - 159,946 159,946 direct costs and overheads 86,068 - 86,068 - - - Income from Medicor Foundation - 211,986 211,986 - - - Other 578 - 578 63 - 63 Income from Nesta Foundation - 10,891 10,891 - - - BRAC global initiatives - 74,418 74,418 - 151,176 151,176 Income from Big Lottery Fund - 14,230 14,230 - -

Sub-total for BRAC UK Sub-total for charitable activities core charitable activities 477,646 74,418 552,064 456,877 151,176 608,053 in Uganda - 420,027 420,027 - 159,946 159,946 Income from DFID Disability Comic Relief - - - - 107,500 107,500 Inclusie Development - 13,388 13,388 - - ESRC (Economic & Social Income from Danida - 195,358 195,358 - - - Research Council) - 30,589 30,589 - - - Income from Signify Foundation - 59,275 59,275 - - - MedicorFoundation - 200,000 200,000 - - - Income from Vitol Foundation - 78,915 78,915 - - - Cartier Foundation - 395,225 395,225 - - - Vitol Foundation and Sub-total for charitable activities World Memon Organisation - 152,620 152,620 - 187,619 187,619 in Tanzania - 346,936 346,936 - - - British Asian Trust - 82,100 82,100 - - - UBS Optimus Foundation - 252,740 252,740 - 206,569 206,569 Total income from charitable activities 477,646 2,118,751 2,596,397 456,877 1,238,120 Other - 8,559 8,559 - - - Income from DFID Disability Inclusie Development - 13,388 13,388 - - -

Sub-total for charitable activities in Bangladesh - 1,135,221 1,135,221 - 501,688 501,688 Income from DFAT - 43,407 43,407 - - - Income from Signify Foundation - 63,016 63,016 - - -

Sub-total for charitable activities in Nepal - 106,423 106,423 - - - Income from Comic Relief - 5,000 5,000 - - - Income from GPAF/ UK Aid - - - - 65,717 65,717

Sub-total for charitable activities in Sierra Leone - 5,000 5,000 - 65,717 65,717 Income from GPAF/UK Aid - 30,726 30,726 - 169,002 169,002 Income from Comic Relief - - - - 24,885 24,885 Ramita and Sabita Income from Big Lottery Fund - - - - 165,706 165,706 during their electrical training in Nepal

42 43 Notes to the Financial statements cont.

Charitable activities 4a. Analysis of expenditure BRAC Sierra South UK Core Bangladesh Nepal Leone Sudan Tanzania Uganda BRAC Cost of Charitable Charitable Charitable Charitable Charitable Charitable Charitable global Governance Support 2018 2017 raising funds Activities Activities Activities Activities Activities Activities Activities initiatives costs costs Total Total £ £ £ £ £ £ £ £ £ £ £ £ £

Staff costs (note 7) 28,554 155,658 94,546 34,125 15,566 11,940 50,571 69,622 65,272 47,188 41,101 614,143 467,738 Training and recruitment - 4,374 ------4,374 14,489 Grants payments (note 5) - - 627,987 84,525 18,705 115,366 156,224 235,513 - - - 1,238,320 1,443,580 Programme activities - 31,807 11,788 8,162 - 20,560 29,476 21,177 82,937 - - 205,908 167,465 Office management - 80,878 167 168 51 85 455 6,264 703 - - 88,770 85,642 Fundraising expenditure 2,904 - 754 ------3,658 5,923 Audit & legal fees ------8,466 - 8,466 8,040

31,458 272,717 735,242 126,979 34,321 147,951 236,727 332,576 148,911 55,654 41,101 2,163,638 2,192,877

Governance costs - 7,420 22,261 7,420 1,855 1,855 7,420 7,420 - (55,654) - - -

Support costs - 5,480 16,440 5,480 1,370 1,370 5,480 5,480 - - (41,101) - -

- 12,901 38,702 12,901 3,225 3,225 12,901 12,901 - - 0

Total expenditure 2018 31,458 285,618 773,944 139,880 37,547 151,177 249,627 345,477 148,911 - - 2,163,638 2,192,877

Total expenditure 2017 23,683 315,515 603,275 13,802 288,992 429,253 399,318 399,318 119,039 - - 2,192,877

Charitable activities 4b. Analysis of expenditure BRAC Sierra South UK Core Bangladesh Liberia Leone Sudan Uganda BRAC Cost of Charitable Charitable Charitable Charitable Charitable Charitable global Governance Support 2017 raising funds Activities Activities Activities Activities Activities Activities initiatives costs costs Total £ £ £ £ £ £ £ £ £ £ £

Staff costs (note 7) 15,378 188,606 22,670 13,802 25,283 42,675 28,547 46,583 40,747 43,447 467,738 Training and recruitment - 11,134 175 - - 3,180 - - - - 14,489 Grants payments (note 5) - 23,158 546,414 - 220,000 319,938 334,070 - - - 1,443,580 Programme activities - 26,144 1,084 - 19,716 38,454 20,734 61,333 - - 167,465 Office management 3,312 56,312 1,520 - 3,672 4,685 5,806 962 9,373 - 85,642 Fundraising expenditure 4,993 - 930 ------5,923 Audit & legal fees ------8,040 - 8,040

23,683 305,354 572,793 13,802 268,671 408,932 389,157 108,878 58,160 43,447 2,192,877

Governance costs - 5,816 17,448 - 11,632 11,632 5,816 5,816 (58,160) - -

Support costs - 4,345 13,034 - 8,689 8,689 4,345 4,345 - (43,447) -

- 10,161 30,482 - 20,321 20,321 10,161 10,161 - - -

Total expenditure 2017 23,683 315,515 603,275 13,802 288,992 429,253 399,318 119,039 - - 2,192,877

44 45 8. Staff numbers

Notes to the Financial statements cont. The average number of employees (head count based on number of staff employed) during the year was as follows:

2018 2017 This is stated after charging: No. No. 5. Grant-making 2018 Grants 2017 Grants to institutions to institutions Raising funds 0.6 0.5 £ £ BRAC UK Core Charitable Activities 5.6 2.2 Bangladesh Charitable Activities 0.7 1.7 BRAC Bangladesh 627,987 546,414 BRAC global Charitable Activities 1.5 0.5 BRAC Nepal 84,525 - Liberia Charitable Activities - 0.2 BRAC Sierra Leone 18,705 220,000 Nepal charitable activities 0.4 - BRAC South Sudan 115,366 343,096 Sierra Leone Charitable Activities 0.3 0.6 BRAC Tanzania 76,390 - South Sudan Charitable Activities 0.1 0.5 BRAC Uganda 235,513 334,070 Tanzania charitable activities 0.2 0.5 Solar Sister 76,164 - Uganda Charitable Activities 0.4 0.5 Support 1.2 2.0 Others 3,670 - Governance 0.8 1.0

1,238,320 1,443,580 11.5 10.2

6. Net incoming resources for the year 9. Related party transactions 2018 2017 There are no related party transactions to disclose for 2018. This is stated after charging: £ £ The charity enjoys a close working relationship with BRAC and BRAC International who provide Depreciation 4,227 6,752 funding to enable the charity to carry out its Core Charitable Objectives (see the Trustees' Loss or profit on disposal of fixed assets - - Annual Report). The charity received £391,000 from BRAC and BRAC International during 2018 Operating lease rentals: (2017: £501,521). • Property 38,260 38,395 Auditor's remuneration, excluding VAT: • Audit 6,900 6,700 The funding was received to provide services, e.g. fundraising, BRAC profile raising globally and building capacity in other BRAC country offices, and has been included in the financial statements under incoming resources from charitable activities and global initiatives. 7. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel 2018 2017 10. Taxation Staff costs were as follows: £ £ The charitable company is exempt from corporation tax as all its income is Salaries and wages 501,669 392,416 charitable and is applied for charitable purposes. Social security costs 53,019 41,769 Employer's contribution to defined contribution pension schemes 12,414 7,360 Other staff costs - consultants and volunteers 47,043 26,193 11. Tangible fixed assets

614,144 467,378 Leasehold Fixtures Computer Improvements and fittings equipment Website Total £ £ £ £ £ 2018 2017 Cost No. No. At the start of the year 6,480 4,036 13,197 5,400 29,113 Additions in year - - 1,380 - 1,380 £60,000 - £69,999 - - At the end of the year 6,480 4,036 14,577 5,400 30,493 £70,000 - £79,999 - - £80,000 - £89,999 - - Depreciation £90,000 - £99,999 1 1 At the start of the year 6,480 3,153 9,110 2,813 21,556 Charge for the year - 588 2,290 1,350 4,227

The total employee benefits including pension contributions of the key management personnel were £224,798 (2017: At the end of the year 6,480 3,741 11,399 4,163 25,783 £193,852). Net book value The charity trustees were not paid or received any other benefits from employment with the charity in the year (2017: £nil). At the end of the year - 295 3,177 1,237 4,710 No charity trustee received payment for professional or other services supplied to the charity (2017: £nil). At the start of the year - 883 4,087 2,587 7,557 Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £481 incurred by two members in 2018 (2017: £968, three members) relating to attendance at meetings of the trustees. All of the above assets are used for charitable purposes.

46 47 Notes to the Financial statements cont.

12. Debtors 15a. Movements in funds (current year) At 31 2018 2017 At 1 January Income Expenditure December £ £ 2018 & gains & losses Transfers 2018 £ £ £ £ £ Trade debtors 73,370 157,884 Restricted funds: Other debtors 7,875 7,875 BD001 Bangladesh Education-Comic Relief 36,229 - (32,707) - 3,522 Prepayments 17,355 13,337 BD002 Bangladesh Education - ESRC 3,635 30,589 (34,225) - Accrued income 112,128 7,215 BD003 Bangladesh BEP Schools - UBS 28,423 252,740 (222,868) - 58,295 210,727 186,311 BD010 Bangladesh donations/grants- Rohingya crisis 4,813 853,314 (382,690) - 475,437 MC001 Multi country Sightsavers Disability Inclusive Development - DFID - 13. Creditors: amounts falling due within one year proposal development - 26,777 (26,777) - - 2018 2017 NP001 Nepal PRAGATI project £ £ proposal preparation- DFAT - 43,407 (37,517) - 5,890 NP002 Nepal Girls Empowerment Trade creditors 19,955 20,928 through Lighting Entrepreneurship - Taxation and social security 1,788 10,481 Signify Foundation - 63,016 (59,851) - 3,165 Other creditors 145 4,602 SL003 Sierra Leone Health-Comic Relief 8,344 5,000 (13,344) - - Accruals 167,855 398,343 SL004 Sierra Leone Pig Value Chain - 189,743 434,354 DFID/UKAid 5,410 - (5,410) - - SS002 South Sudan Education 2 -www Comic Relief 42,637 - (42,637) - - SS003 South Sudan Health - DFID/UK Aid 26,301 30,725 (57,026) - - 14a. Analysis of net assets between funds (current year) SS004 South Sudan Health - Big Lottery Fund 43,636 - (43,621) (15) - TZ001 Tanzania WeSolve - Danida - 195,358 (181,190) - 14,168 General Total TZ002 Tanzania WeSolve - Signify Foundation - 59,275 (24,158) - 35,117 unrestricted Restricted Funds TZ003 Tanzania ECD - Vitol Foundation - 78,915 - - 78,915 £ £ £ UGA001 Uganda TUP - Cartier Foundation 260 182,920 (178,929) - 4,251 UGA002 Uganda TUP - Medicor Foundation - 211,986 (98,212) - 113,774 Tangible fixed assets 4,710 - 4,710 Net current assets 388,777 819,999 1,208,776 UGA003 Uganda Fall Army Worm Challenge - Nesta Foundation - 10,891 (10,891) - - Net assets at the end of the year 393,487 820,014 1,213,486 UGA004 Uganda Disability Inclusive Graduation project preparation - Big Lottery Fund - 14,230 (14,230) - - UPGI Ultra Poor Graduation Global Initiative 87,365 74,418 (134,317) - 27,466

14b. Analysis of net assets between funds (prior year) Total restricted funds 287,053 2,133,561 (1,600,600) (15) 819,999

General Total Unrestricted funds: unrestricted Restricted Funds General funds 419,655 536,855 (563,038) 15 393,487 £ £ £ Total unrestricted funds 419,655 536,855 (563,038) 15 393,487 Tangible fixed assets 7,557 - 7,557

Net current assets 412,098 287,053 699,151 Total funds 706,708 2,670,416 (2,163,638) - 1,213,486 Net assets at the end of the year 419,655 287,053 706,708

Foreign exchange gains/losses Funding for some projects is transacted through foreign curency bank accounts – namely US dollars, Australian dollars, Danish Krone, Euro – and therefore the project funds themselves do not suffer foreign exchange gains and losses. However, the bank balances are held in BRAC UKís accounts in the home currency of GBP and revalued on a monthly basis, and transactions are revalued at the exchange rate at the date of transaction as per the SORP requirements. This causes exchange gains and losses to be accounted for, and these are included in the unrestricted general funds.

48 49 marginalisation of adolescent girls in Kavrepalanchowk Lighting to create inclusive and sustainable economic growth Notes to the Financial statements cont. District, Nepal. Girls receive empowerment and employment and productivity (SDG8), generation of new income (SGD1) opportunities through the holistic project approach and and new decent, green and appropriate employment and communities will receive access to lighting services and livelihoods for women (SDG8,5) in rural Tanzania. 15b. Movements in funds (prior year) At 31 products. At 1 January Income Expenditure December Tanzania ECD - Vitol Foundation 2017 & gains & losses Transfers 2017 Sierra Leone Health-Comic Relief The project aims to catalyse the ECD private sector in £ £ £ £ £ (PSPP - Pull Slum Pan Pipul Project) Tanzania, by developing a ëHub & Spokeí business model Restricted funds: Improving sexual and reproductive health and creating for the provision of low-cost, high quality and scalable BD001 Bangladesh Education-Comic Relief 10,308 107,500 (81,579) - 36,229 sustainable livelihoods for youth in Freetown Slums in Sierra play-based ECD - improving the cognitive, physical, socio- BD002 Bangladesh Education - ESRC 85,204 - (81,569) - 3,635 Leone. emotional and language development of children aged 3-5 BD003 Bangladesh BEP Schools - UBS - 206,569 (178,146) - 28,423 from low income families in Dar es Salaam. BD010 Bangladesh donations/grants- Sierra Leone livelihood-DFID/UKAid-GPAF-INN-075 Rohingya crisis - 222,510 (217,697) - 4,813 Reducing Poverty and hunger of Vulnerable People (Majority Uganda TUP - Cartier Foundation SL003 Sierra Leone Health-Comic Relief 158,730 - (150,386) - 8,344 Women) through Improved Pig Production, Processing, The aim of the project is to reduce extreme poverty SL004 Sierra Leone Pig Value Chain - Marketing and Income Generation in 25 Rural Communities among youth (1500 direct beneficiaries - ages 18-35) in DFID/UKAid 44,176 65,717 (104,483) - 5,410 in Five Districts in Sierra Leone. the Luwero District and Karamaja sub-region, Uganda, SS002 South Sudan Education 2 through agribusiness programming and sequenced set of - Comic Relief 17,752 24,885 - - 42,637 South Sudan Education 1 & 2- Comic Relief interventions which include livelihood training, consumption SS003 South Sudan Health - DFID/UK Aid 104,413 169,002 (247,114) - 26,301 The programme addresses the acute lack of primary stipends, asset transfers, savings and social integration. SS003 South Sudan Health - DFID/UK Aid 26,301 30,725 (57,026) - - education right across South Sudan and gender SS004 South Sudan Health - Big Lottery Fund 27,630 165,706 (149,700) - 43,636 discrimination that causes people, particularly women, to Uganda TUP - Medicor Foundation UGA001 Uganda TUP - Cartier 183,676 159,946 (375,355) 31,993 260 remain in poverty. Match funding for the Cartier Foundation project above. UPGI Ultra Poor Graduation Global Initiative - 151,176 (63,811) - 87,365 South Sudan Health- DFID/UK Aid-IMP-128 Uganda Fall Army Worm Challenge - Nesta Foundation Total restricted funds 631,889 1,273,011 (1,649,840) 31,993 287,053 Improving the Reproductive, Maternal, Newborn and Child An innovation challenge fund, funded by the Nesta Health of Vulnerable Women,Adolescent girls and Chldren in Foundation to respond to the Fall Army Worm Challenge Unrestricted funds: Central and Eastern Equatoria States in South Sudan. in Africa. BRAC UK provided specific networking and General funds 530,007 464,678 (543,037) (31,993) 419,655 South Sudan Health-Big Lottery Fund facilitation services in Uganda to support the innovation Reaching the most vulnerable beneficiaries (in Yei County) challenge. Total unrestricted funds 530,007 464,678 (543,037) (31,993) 419,655 through doorstep services provided by community health promoters (CHPs) and mobile nurses. BRAC will provide Uganda Disability Inclusive Graduation project Total funds 1,161,896 1,737,689 (2,192,877) - 706,708 quality information on mother and child health, check the preparation - Big Lottery Fund health of mothers, new-borns and under-fives, review the A partnership with BRAC, Humanity and Inclusion and immunisation records of children and refer pregnant women NUWODU (a national Disability Persons Organisation) aimed Purposes of restricted funds to health facilities. at expanding socio-economic inclusion for 1500 ultra-poor Bangladesh Education - Comic Relief crisis, and is supporting BRAC's programmes on the beneficiaries, including people with disabilities, in Uganda. This programme improves the knowledge of, and access Bangladesh/Myanmar border. Tanzania - WeSolve - Danida and Signify Foundation to, maternal neonatal and child health services for women 'WE SolVE' - Women Entrepreneurship through the Solar Ultra Poor Graduation Initiative and their children plus other family members through the Bangladesh and Tanzania Sightsavers Disability Value chain for Economic development in Tanzania. A This funding is from BRAC International and is restricted to provision of local delivery centres. Inclusive Development - DFID commercial contract partnership between BRAC, Solar Sisters and Philips supporting the UPGI global branding iniative. "The Disability Inclusive Development Programme (DID) Bangladesh Education is DFIDís single largest investment in disability inclusion, Economic and Social Research Council and its flagship global programme in this sector. Under DID, A research study to assess the progress of our targeting BRAC UK is engaging with Sight Savers International to the ultra-poor programme in each of itís three dimensions, develop programmes in Bangladesh, Tanzania and Nepal being material, social, and psychological well-being. How the for a total of £1.6M. programme contributes to the resilience of women and their households is measured through their ability to maintain and Nepal - PRAGATI project preparation - DFAT improve their livelihoods. The PRAGATI design phase from August to December 2018 16. Reconciliation of net income to net cash flow from operating activities involved field visits and workshops with partners to design 2018 2017 Bangladesh BEP Schools - UBS Optimus and submit an investment proposal. Once approved, this £ £ Shishu Niketan - Low-cost fee paying schools in Bangladesh. programme will to deliver a AUD $25 million adaptive hybrid The low cost private school intervention will lead to the programme, working with partners, which seeks to combine Net income for the reporting period 464,155 (432,660) sustainable provision of affordable, quality education for market service delivery and direct intervention approaches to (as per the statement of financial activities) children from low-income backgrounds across Bangladesh. provide pro-poor market development outcomes for the most Depreciation charges 4,227 6,752 marginalised households in Karnali Province, Western Nepal. Dividends, interest and rent from investments (537) (36) (Increase)/decrease in debtors (24,416) Bangladesh - Rohingya crisis - Medicor Foundation, Increase/(decrease) in creditors (244,611) (203,543) Cartier Foundation, World Memon Organistion and Nepal - Girls Empowerment Through Lighting Individual donations: Entrepreneurship - Signify Foundation Net cash provided by operating activities 198,819 (552,132) This funding has been received in response to the Rohingya This project addresses the social and economic

50 51 17. Operating lease commitments

The charity's total future minimum lease payments under non-cancellable BRAC UK is the European affiliate of BRAC. BRAC UK works operating leases is as follows for each of the following periods: Property 2018 2017 to raise resources for BRAC programmes in Africa and Asia by £ £ developing partnerships with local and global organisations, donor agencies, academic and research institutions and More than five years - - 1 - 5 years - 10,500 governments. BRAC UK also raises awareness about BRAC’s More than five year 12,753 31500 cost-effective and evidence based poverty innovations which empower the poor in 11 countries. 12,753 42,000

18. Legal status of the charity BRAC UK is a registered charity (1115482) and company (5802246) The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1. Address: BRAC UK 19 Wootton Street London SE1 8TG

Office phone: +44 (0) 203 434 3073 Email: [email protected]

Trustees Solicitors Simone Sultana (Chair of Trustees) Howells Solicitors Alex Manu (Treasurer) Hallinans House Kate Kuper 22 Newport Road Jane Cooper Cardiff Peter Nicholas CF24 0TD Shameran Abed Robert Evans (term expired end of 2018) Auditor Sayer Vincent LLP Principal staff Chartered Accountants and Statutory Auditor Lewis Temple (Chief Executive) Invicta House Nick Virr (Programme Director) 108-114 Golden Lane Juliette Webb (Company Secretary) LONDON EC1Y 0TL Bankers HSBC 8 Victoria Street Westminster LONDON SW1H 0NJ 19 Wootton Street London, SE1 8TG +44 (0)20 3434 3073 [email protected] www.bracuk.net