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Conciliation Resources CONCILIATION RESOURCES . DIRECTORS' AND TRUSTEES' REPORT AND ACCOUNTS FOR THE YEAR' ENDED 31 DECEMBER 2018 CONCILIATION RESOURCES CONTENTS Page Legal and Administrative Details Report of the Directors and Trustees 4-14 Report of the Independent Auditor 15-17 Statement of Financial Activities (Including the Income and Expenditure Account) 18 Balance Sheet 19 Statement of Cash Flows 20 Notes to the Financial Statements 21-37 CONCILIATION RESOURCES COMPANY INFORMATION Directors and Trustees Right Reverend P Price (Chair) —resigned 17 September 2018 Mr D Donoghue (Chair) —appointed 19 November 2018 Ms D Good Ms K Hayward Mr A Peck (Treasurer) Ms A Kilrnurray Ms R Marsden Ms M Parlevliet Mr M van Bellinghen Ms T Bajwa —appointed 18 February 2019 Mr G Graham - appointed 18 February 2019 Ms D Pillai - appointed 18 February 2019 Ms J Kernp- appointed 18 February 2019 Mr C Cavanaugh —resigned 17 September 2018 Ms M Davis —resigned 17 September 2018 Ms K Fearon —resigned 17 September 2018 Company Secretary Mr T Hansen —appointed 10 September 2018 Michael Waterson —resigned 1 February 2018 Executive Management Tdam Mr J Cohen —.Executive Director Mr M Watersod —Chief Operating Officer —resigned 1 February 2018 Mr T Hansen —Chief Operating Officer —appointed 22 January 2018 Dr K Tomlinson —Director of Programmes —appointed 22 January 2018 Dr T Dumasy —Director of Policy 6 Learning —appointed 20 August 2018 UK Company Number 03196482 UK Charity Number 1055436 UK VAT Number 249002623 Registered Office Burghley Yard 106 Burghiey Road London NW5 1AL Auditor PKF Littlejohn LLP 1 Westferry Circus Canary Wharf London E14 4HD Bankers Royal Bank of Scotland 40 Islington High Street London N1 8XJ COIF Charity Deposit Funds 80 Cheapside London EC2V 6DZ Triodos Bank Brunel House 11 The Promenade Bristol BS8 3NN 3 CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES The Directors and Trustees present their report and audited accounts of the charity for the year ended 31 December 2018. The Directors and Trustees have adopted the provisions of the Statement of Recommended Practice "Accounting and Reporting by Chadties" ("SORP") in preparing the annual report and financial statements of the charity. Structure, Governance and Management Governing Document Conciliation Resources is a Company limited by guarantee without share capital. The Company was incorporated on 9 May 1996 and is a registered charity constituted as a limited company under the Articles of Association. The charity registration number is 1055436'and the company registration number is 03196482. Organisation Conciliation Resources is governed by a Board of Trustees, which meets four times a year. Financial and management reports are provided quarterly to the Board of Trustees, including information on restricted and unrestricted funds. In 2018 the Executive Management Team (EMT) was expanded from two to four, the Executive Director and the Chief Operating Officer being joined by the Director of Programmes and Director of Policy and Learning. The EMT meets weekly. The EMT continues to be supported by a Senior Leadership Team made up of senior staff from across Conciliation Resources. This group meets every two months, receives a regular finance update, reviews strategy and discusses areas of cross-organisational working to identify ways In which Conciliation Resources can operate more efficiently and effectively. During 2018, Conciliation Resources added two new Programmes Teams, 'Smart Peace' and 'Women Mediators across the Commonwealth'. Alongside growth in existing teams, this contributed to signifigant growth of staff cohort and budget year on year. Each Programme Director is responsible for the management of their area of work and the organisation actively provides opportunities for mutual support and learning. Each Programme Director is assisted by project staff and very occasionally volunteers. In addition to its in-house staff, Conciliation Resources works closely with external consultants. The Monitoring and Evaluation Team has merged into the re-named the Accord, Policy and Learning team. On the Support side, the Fundraising Team has been restructured and merged with the Communications Team in'recognition of the crossover of their areas of work. Pay and remuneration for key management personnel is set by reference to the grading and salary structure which was externally reviewed and benchmarked in 2017. The Board of Trustees sets the pay of the Executive Management Team, with reference to the grading and salary structure applied to all Conciliation Resources staff. Any pay increase for key management personnel, as with all staff, is comprised of two elements, a cost of living adjustment and a spine point adjustment. Conciliation Resources is based in London, with staff travelling regularly to areas covered by our programmes throughout the world. Recruitment anrt Appointment of Trustees As set out in the Articles of Association, the Board of Trustees of Conciliation Resources riominates the Chair of the Trustees. The Board of Trustees has power to appoint additional Trustees as It considers necessary and regularly reviews the required skills and the organis'ational policy underlying the role of the board of Conciliation Resources. The Trustees in office in 2018 and up to the date of this report are set out on page 2. The Trustees are also the directors and members of the Company with their financial liability limited by guarantee to F1 per member. CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES Structure, Governance and Management (continued) We are very fortunate to have on our Board trustees with a depth of experience and understanding of charity management, and of peacebuilding. During 2018, successful open recruitment processes took place for a Chair and Trustee positions. The Board welcomes Ambassador David Donoghue as our new Chair and expresses its thanks to The Right Reverend Peter Price for his service. Trustee induction and Training The Trustees maintain a good working knowledge of chadty and company law and best practice through training sessions provided internally and by external consultants. During the four Board meetings in 2018, two training sessions were held on Governance and Safeguarding respectively. New Trustees are given copies of the Articles of Association, supporting information on Conciliation Resources on its work and relevant organisational policies, and hold meetings with key staff from across the organisation. These meetings provide access to staff for each new Trustee in order to find out more about Conciliation Resources. At the same time it provides a chance for staff to understand some of the experiences and strengths that are available to them, and more broadly across Conciliation Resources, at Board level. As part of the on-going development of each Trustee's understanding of Conciliation Resources and its work, when training is not scheduled, on the morning of each Board meeting sessions are arranged between Trustees and staff at which key topics or areas of work are explored and insights shared. In early 2019, this was supplemented by an organisational retreat where staff and Trustees contributed to strategic planning. Related Parties and Coilaborations In 2018 trustee payments foi the reimbursement of expenses totalled L'5, 397 (2017 - f4, 846) Conciliation Resources has close working relationships with other charities and organisations (local and internatiorial) with which It cooperates in pursuit of its charitable objectives. This includes collaboratiye project partnerships, consortium initiatives and cooperative networks. 2018 saw four large consortium projects: ~ The DFID funded 'Smart Peace' consortium is led by Conciliation Resources, working with The Asia Foundation, International Cris'is Group, Centre for Humanitarian Dialogue, Behavioural Insights Team, Chatham House and ETH Zurich. The programme applies a new integrated process of strategic analysis, design, evaluation and adaptation in order to identify and unblock sticking points preventing peaceful change. ~ The Global Security Rapid Assessment(GSRA) consortium includes ourselves, International Alert and Saferworld. It is funded by DFID and runs from May 2017 through to March 2020. This is a practice-research consortium looking at how to support peaceful, inclusive change. ~ The Political Settlements Research Programme (PSRP) includes ourselves, University of Edinburgh, Rift Valley Institute, Institute of Strategic Studies and the Transitional Justice institute (University of Ulster) and is funded by DFID. 2018 was the last year of a four year programme. ~ The "Harnessing independent early warning expertise to bddge the warning-response gap and enhance conflict prevention" consortium Includes ourselves, International Crisis Group and Saferworld. This is an EU (ICSP) funded consortium. 2018 was the second year of a 3 year programme. llfianagement of risks Major risks to which the charity is exposed (goyernance, operational, financial and external), as identiTied by the Trustees, are compiled in a 'Risk Register' and reviewed at least bi-annually or more frequently as needed. As the nature of Conciliation Resources' work involves countries affected by conflict, the security situation in these countries is more frequently reviewed and Conciliation Resources seeks to take all appropriate steps to avoid undue risk to staff and project partners. Systems developed to mitigate these risks include staff safety and security policies and guidelines and hostile environment
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