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 training (HEAT). In addition, Conciliation Resources has different insurance policies in place to support staff travelling to, or In, conflict zones.
To mitigate financial risk and insecurity, as well as dependency on any single donor, Conciliation Resources aims to have a broad donor base, both for the organisation as a whole and for each programme. Conciliation Resources is also continuing to seek and secure long-term funding both institutionally, and for programmes. In 2018,. Conciliation Resources held its cash funds across three banks. CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES
Structure, Governance and Management (continued)
Fundraising Activities
Conciliation Resources' approach to fundraising continues to evolve. In 2018, our income was almost entirely derived from institutional sources. We did not contact members of the public asking them to support the organisation. We also did not work with professional fundraisers and there was no. fundraising carried out on our behalf. Donations from members of the public totalled less than 1% of income in 2018. Our fundraising team works with institutional donors as wefl as trusts and foundations. In 2018, we did not hold any fundraising events. Nevertheless, management and the fundraising team stay abreast of recognised public fundraising standards and we are registered with the Fundraising Regulator, showing ourcommitment to abide by the Code' of Fundraising Practice and the Fundraising Promise. We have a Complaints Policy that is available on our website,
Public Benefit Statement
The Trustees consider that they have complied with Section 17 of the Charities Act 2011 with regard to the guidance on public benefit published by the Charity Commission. The paragraphs below demonstrate ths public benefit arising through the Charity's activities.
Objectives and activities
Conciliation Resources is an independent international organisation working with, people in conflict to prevent violence, resolve conflicts and promote peaceful societies. We commit to providing our assistance, expertise and practical resources for the long-term. In addition, we take what we learn to government decision-makers and others working to end conflict, to improve policies and practice worldwide. Since 1996, Conciliation Resources has worked in partnership with local and. international civil society actors, helping people work together to'find their own solutions to the conflicts affecting them.
Our vision is a world where people work together to resolve conflicts and promote peaceful and inclusive societies.
Our mission is to provide practical support to help people affected by violent conflict achieve lasting peace, We draw on our shared experiences to improve peacebuilding policies and practice worldwide.
The Trustees have paid due regard to the Charity Commission's Guidance on Public Benefit when determining the activities of Conciliation Resources which has the purposes of:
"the advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity".
Our ambition (impact) is that by 2020 we will make significant and documented 'contributions to preventing and transforming violent conflicts and promoting peaceful and inclusive societies.
Conciliation Resources' Strategic Plan, "Partnering for Peace", sets out three goals with corresponding strategic outcomes:
1. Causes and drivers of conflict are peacefully transformed.
~ Relationships among and between communities and other parties to conflict are collaborative and constructive. ~ Formal and ihformal governance structures and processes in conflict-affected areas are more responsive to local priorities. t The legacies of violence are addressed in conflict-affected societies.
2. Approaches to building peace support inclusion.
People affected by conflict are leading the design and implementation of peace initiatives. ~ Greater access and representation for marginalised groups in peace processes and peacebuilding initiatives. ~ Programming undertaken by Conciliation Resources and other practitioners is gender-sensitive. ~ Armed conflict parties are better prepared to engage in non-violent conflict resolution. CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES
Objectives and activities (continued)
3. Policy is prioritising conflict prevention and peacebuilding.
~ Greater recognition at policy level of the need for and value of locally-owned non-violent and long-term conffict prevention and peacebuilding initiatives. ~ Greater political and financial investment in inclusive practice, and in people engaged in peacebuilding in conflict contexts, which builds both their capacity and influence. ~ A stronger evidence base for why and how peacebuilding is available to policymakers.
Our organisational values both support and underpin everything we do and seek to achieve:
Collaboration: We believe that everybody affected by conflict has a stake in peace. We work to create peaceful and inclusive change within societies in partnership with local people, to respond to violence, inequality, Injustice and exclusion.
Challenge: We believe that peace can only come about if people have a chance to better understand their conflict and if difficult conversations are held between allies and adversaries. We stand albngside those who, with courage and integrity, reach out across conflict divides.
Creativity: We believe that peacebuilding needs to be flexible and adaptive to the specific and evolving realities of each conflict context. We support innovative ways to influence change, and we share insights from people's lived experience globally to build collective knowledge and expertise. '
Commitment: We believe that building sustainable peace takes time. That's why we make long-term commitments to support just and resilient transitions from protracted conflict to lasting peace. Selected achievements in 2018
At Conciliation Resources, we believe that the communities directly affected by armed conflict are best placed to build and sustain peace. In such communities, courageous individuals work together to deal with violence and the damaging, effect it has on'their lives. To play a meaningful role, they must ensure that the communities' needs and situation are fully understood and represented in peacebuilding processes. While vital to building peace in their locality, they often work in isolation and lack the support, capacity and resources to do this well.
'in We work close partnership with a diverse range of over 40 local partners, with very different roles in society. From community-based media organisations to women's rights groups, from the business community to religious leaders. Our partners are exceptional people who have made difficult choices to challenge violence and work in their communities for a better future. In 201 8, we continued to work closely alongside them and other civil society organisatlons to develop their abilities as peacebuilders. We supported them to better understand the power of their work —promoting tolerance and sustainable solutions —and we encouraged them to learn practical lessons from other conflict situations. Our support also enabled them to engage with and influence their governments, often in fluid and challenging contexts.
During 2018 we continued our work implementing our Strategic Plan 2020, Parinering for Peace, which supports Conciliation Resources to incorporate an emphasis on results'while staying true to the ideals and conceptual basis of our peacebuilding mission and mandate. During the year we initiated planning for our 2024 Strategic Plan.
Goal 10 Causes and drivers of conflict are peacefully transformed,
As a result of our support, relationships, governance practices and structures, and legacies of violence, which are obstacles to sustainable peace, are addressed.
One of the fundamental aspects of our work is identifying and addressing the various underlying factors which lead to violence. In 2018, we continued to focus on initiatives which build connections and trust. We brought people with different perspectives together to find common solutions to the conflicts they face, and we transformed relationships damaged by conflict. CONCILIATION RESOIJRCES REPORT OF THE DIRECTORS AND TRUSTEES
Objectives and activities (continued)
In several regions, including in the Caucasus, South Asia and the Pacific, we connected civil society, officials and those working on conflict, through informal dialogue processes. This led to concrete progress on areas of mutual interest. For example, in relation to the Georgian-Abkhaz conflict, dialogue participants were able to agree common actions around the environment. While, in the Democratic Republic of Congo, we successfully built bridges between comtnunities and the national army, repairing relations broken after years of violence and mistrust.
Significantly, after supporting the peace negotiations between the Government of Ethiopia and the Qgaden National Liberation Front throughout the six years of negotiations, a peace agreement was signed. At the same time our work with community-based peace structures in northeast Nigeria, the Democratic Republic of Congo, the Central African and the Philippines, enabled communities to resolve disputes. These dialogue platforms Republic, northern Kenya — provided space for community members to air their views and concerns, address conflict and advocate for peace in their communities and with those holding power.
In both Mindanao, in the Philippines and in Bougainville, Papua New Guinea, we worked to promote the peaceful vote conduct of referendums. In the Philippines, this included undertaking awareness-raising ahead of the Januaty 2019 on the Bangsamoro Organic law; and in Bougainville, we supported continued conflict transformation and analysis in preparatiori for the referendum on political status later in 2019. In northeast Nigeria, youth peace platforms led community discussions to promote peace in the lead-up to the 2019 presidential and regional elections.
We also worked on history and memory in relation to conflict, particularly in the Caucasus and Colombia. We continued to gather personal testimonies, documents and photographs relating to the Georgian-Abkhaz conflict, and Armenian and Azerbaijani participants began a similar initiative. In Europe, Diaspora Woman —a group supported by Conciliation Resources involving Colombian women living in European cities —was asked to partner with and contribute testimonies to, the newly formed Colombian Truth Commission.
Goal 2: Approaches to building peace support inclusion
As a result of our engagement, expertise and resources, peacebuilding and conflict prevention practice is more inclusive.
different In order for peace to be sustainable, it is vital to include people from a wide range of backgrounds, and with perspectives and experiences, in finding solutions to conflict. In 2018, we supported the participation of numemus groups often excluded from processes to build peace —including women, youth, armed groups, displaced people and indigenous communities.
Working closely and collaboratively with partners from the communities affected by conflict, we were able to ensure that approaches to addressing violence responded to the realities on the ground. We increased our focus on involving young people in peacebuilding in many places, but in particular in the Democratic Republic of Congo, northeast Nigeria, Somali regiorial state (Ogaden) and Bougainville, Papua New Guinea. the In all contexts, we worked with women to support their active participation in building peace. This included introduction of women-only listening spaces in Nigeria, training for displaced and refugee women in South Sudan, continued work with indigenous women in Colombia and further progress in relation to the rights of 'half-widows' in Kashmir. In addition, we launched an exciting new network —Women Mediators across the Commonwealth, bringing together women from across Commonwealth countries from varied backgrounds and with different expe'riences of mediation for mutual support and collaborative advocacy.
We continued to make progress in improving how sensitive our work is to issues connected to gender and conflict. We also advised others, including the IJN, EU, Germany, Sweden and the UK, on how to ensure a gendered dimension is integrated into peacebuilding approaches and conflict analysis. As part of our work on the topic of inclusion, we explored the experience of gender and sexual minorities, and masculinities in peacebuilding.
with In a number of places, but particularly in relation to the Colombian and Ogaden conflicts, we worked directly refugees and diaspora communities to ensure they were able to input their views into the peace processes. At the same time, technical support and guidance we provided to the Ogaden National Liberation Front, and members of other armed groups, helped them to make the transition from armed to political opposition. CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES Objectives and activities (continued)
Goal 3: Poflcy is priorltlslng conflict prevention and peacebuilding,
As a result of our efforts, relevant policymakers at international, national and regional levels make investments in long- term, non-violent approaches to preventing armed conflict and building peace, and in those working for peace in conflict contexts.
The number snd complexity of violent conflicts are increasing. We need more investment in, and political commitment to, long-term approaches to preventing conflict and building peace. Governments in particular, should pursue policies that prtoritise peacebuilding, learn from past actions and take on board the views and experiences of people living in regions of conflict. In 2018, our research, communications and analysis, including through our Accord series, presented evidence of effective approaches to addressing conflict.
In total we produced 31 publications, films and infographics, as well as numerous blog posts and articles, which highlighted learning, expert opinion and case studies to.show how policymakers and others can improve their responses to conflict. In particular, we explored ways to make peacebuiiding more inclusive and analysed our experience of working in partnership. Our reports documenting the views of youth in conflict regions fed into the Progress Study on UN Security Council Resolution 2250 on Youth Peace and Security. We also supported discussion on this with UK government officials and parliamentarians. In addition, we launched Accord editions on the steps needed to move towards peace in Afghanistan and how to address conflict in borderland regions.
We communicated with policymakers in the UK, EU and UN to feed insights and lessons from our work into their thinking . and decision-making. Working directly with the UK government, banks and other NGOs, we continued to lead work on the counter-terrorism impact legislation has on the operations of NGOs in fragile countries, Through this, collectively we were successful In securing an exemption for humanitarian aid in new government counter-terrorism and border security legislation. In all regions, we connected communities impacted by war and violence with policymakers, politicians and other decision-. makers. This helped to ensure policies and decisions relating to conflict are informed by the perspectives of people experiencing conflict.
We also began an exciting new four-year programme, Smart Peace, leading an innovative international consortium of think-tanks NGOs, and research organisations. Smart Peace explores how we can improve the way peacebuilding and in particular, dialogue, adapts to shifting political processes and opportunities —through joint conflict analysis, rigorous evaluation and learning. I essons from this work will be used to help governments and others improve how they address conflict challenges.
2018 in Numbers
Reached 5,403 young people across 8 contexts Worked with 31 women's groups Supported 112 local peace structures across 8 different countries Engaged with 15 armed groups Supported the signing of 1 peace agreement Worked with 73 partners Focused on 16 conflict contexts Produced 31 publications and films, which were downloaded or watched 72,178 times Trained 256 community leaders in peacebuilding and community dialogue in Bougainville Accompanied 50 journalists in the Democratic Republic of Congo, Jammu and Kashmir, and the Caucasus Held 170 youth-led dialogue events in northeast Nigeria on Boko Harem and the conflict CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES
Publications and Other Resources Produced in 2018
Multimedia outputs
Film: Community engagement in the Philippines htt s://www. c-r.or /news-and-views/multimedia/film-communit -en a ement- hili ines
Film: Engaging armed groups in the pursuit of peace htt s://www. c-r.or /news-and-views/multimedia/flilm-en a in -armed- rou s- ursuit- eace
Film: Inclusive and sustainable justice in Afghanistan htt s://www. c-r.or /accord/af hanistan/institutionalisin -inclusive-and-sustainable-'ustice-af hanistan-h brid
Film: Inclusive politics as a path to peace htt s://www. c-r.or /accord/af hanistan/inclusive- olitics- ath- eace
Film: Incremental peace in Afghanistan htt s://www. c-r.or /news-and-views/multimedia/flilm-incremental- eace-af hanistan
Film: Peace at the hard edge of conflict htt s://www, outube. com/watch? v=VMvNu59hwE8
Film: Peacebuilding in Tunisian border regions: a missing piece of the transition process htt s://www. c-r.or /accord/borderlands-and- eacebuildin -insi ht/tunisia
Film: People's perspectives on building peace in northeast Nigeria htt s://www. c-r.or /news-and-views/multimedia/flilm- eo les- ers ectives-buildin - eace-northeast-ni eria
Film: President Najibullah and the National Reconciliation Policy htt s://www. c-r.or /accord/af hanistan/ resident-na'ibullah-and-national-reconciliation- olic
Film: Things that make for peace (Peter Price) htt s://www. c-r.or /news-and-views/multimedia/film-thin s-make- eace
Film: What makes an effective peacebuilding partnership? htt s://www. c-r.or /news-and-views/multimedia/flilm-what-makes-effective- eacebuildin - artnershi
Film: Women's participation in peace talks in Afghanistan htt s://www. c-r.or /accord/af hanistan/esca in - hosts- ast-womens- artici ation- eace-talks-af hanistan
Infographic: Community peace structures: where we work htt s://www. c-r.or /where-we-work/ eace-hard-ed e-conflict
Infographic: Talking to armed groups htt s://www. c-r.or /news-and-views/multimedia/info ra hic-talkin -armed- rou s
Video: Launch event: Incremental peace in Afghanistan, Accord (Issue 27) htt s;//www. outube. com/watch?v=AI3i's4eY Q&t=1s
Video: Women Mediators across the Commonwealth —Atia Anwer Zoon htt s://www. outube. com/watch?v=9V LaMDQ oo8t=
Video: Women Mediators across the Commonwealth - Elizabeth Solomon htt s://www, outube. com/watch?v=VQ fedTcU Q&t=
10 CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES
Publications and Other Resources Produced in 2018 (continued)
Video; Women Mediators across the Commonwealth - Mossarat Qadeem htt s://www. outube. com/watch?v=x 17MtHlwgo&t=
Publications
Accord: Incremental peace in Afghanistan htt s://www. c-r.or /resources/accord-incremental- eace-af hanistan
Accord Insight: Borderlands and peacebuilding htt s://www. c-r.or /accord/borderlands-and- eacebuildin -insi ht
Accord Policy Brief: 10 steps for peace in Afghanistan htt s://www. c-r.or /resources/10-ste s- eace-af hanistan
Accord Spotlight: Gender in political transition: Bougainville's peace process htt s://www. c-r.or /resources/ ender- olitical-transition-bou ainvilles- eace- rocess
Accord Spotlight: Gendered political settlements: Examining peace transitions in Bougainville, Nepal and Colombia htt s://www. c-r.or /resources/ endered- olitical-settlements
Accord Spotlight: Navigating inclusion in peace transitions: Beyond elite bargains htt s://www. c-r.or /resources/navi atin -inclusion- eace-transitions
Afghanistan: youth perspectives on peace and security htt s://www. c-r.or /resources/af hanistan- outh- ers ectives- eace-and-securi
Annual Report 2017 htt s://www c-r.or /resources/annual-re ort-2017
Partnership in peacebuilding: Lessons from Conciliation Resources' practice htt s://www. c-r.or /resources/ artnershi - eacebuildin
South Sudan: youth perspectives on peace and security htt s://www. c-r.or /resources/south-sudan- outh- ers ectives- eace-and-securi
Through our eyes: People's perspectives on building peace in northeast Nigeria htt s://www. c-r.or /resources/throu h-our-e es
Youth aspirations for peace and security htt s://www. c-r.or /resources/ outh-as irations- eace-and-securi
Youth perspectives on peace and security: the Georgian-Abkhaz context htt s://www. c-r.or /resources/ auth- ers ectives- eace-and-securi - eor ian-abkhaz-context-0
Financial Review
During 2018, Conciliation Resources consolidated internal structures and processes, particularly those related to programme sustainability, while maintaining substantial reserves. These reserves will be slightly reduced through investment in programmes and support infrastructure over the next few years. The Statement of Financial Activities shows a surplus of F44,605 (2017 —deficit of 8431,102) for the year and total funds available stand at f1,837,739 (2017 —E1,793,134). CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES
Financial Review (continued) 'new' Conciliation Resources income has increased to 85,990,171 (2017 - E5,121,186) retlecting the addition of two thematic programmes to the organisation and a small increase in the size of most geographic teams. The level of deferred income, funds received from donors although not yet recognised as income against which programme expenditure can be matched increased to 61,403,488 (2017 —F772,622); see note 15. A contract by contract level review informs the decision as to whether income should be recognised in the current year or whether it is recognised as deferred income (further information is included in Note 1 —Income Recognition).
2018 saw continued uncertainty as the implementation ot' the 2016 UK referendum on membership of the European Union remained unresolved. The degree of hostility toward the UK aid budget, and complex shifts toward nationalist politics in some European countries have further contributed to the changing nature of peacebuilding funding. Increasingly donor funds are allocated to short term projects instead of providing strategic flexibility over a longer period. Conciliation Resources continues to plan, adapt and adjust to these changing and emerging trends. The ability to recover organisational support costs at an appropriate level remains a challenge at a time when external requirements are becoming increasingly complex, costly and time consuming to manage.
Conciliation Resources is fortunate to have the support of the Swedish International Development Cooperation Agency (Side) for the period 2016 —2019. This continues the longstanding and much valued relationship between our two organisations,
Principal Financial Management Policies
Conciliation Resources has a financial regulations policy set up and reviewed in consultation with the Board of Trustees. This sets out the, allocation of financial management responsibilities, identifying lines of reporting for all aspects of operations, including controls, with the delegation of authority and responsibilities clearly defined. Conciliation Resources uses a nominal ledger codirlg system for all financial transactions.
All project expenditure is checked against budget and authoi. ised by the appropriate budget-holder, who is responsible for ensuring that expenditure remains within budget. It is then double-checked by two authorised signatories before any payment is made.
An annual planning process is carried out by all budget-holders covering their proposed work for the upcoming period along with a fundraising plan, financial budget and cashf low, This information is reviewed by the Executive Management Team and cross-organisational functions, such as monitoring and evaluation and finance: A consolidated report is presented to the Board of Trustees for their endorsement at the final Board meeting of the year.
Each month the Finance Team meets with budget-holders to discuss the respective management'accounts and changes in planned activities that may impact the annual finances or cashf low. This is consolidated into a reforecast of expected income and expenditure for the year and ie presented, half-yearly, to the Board of Trustees for their further endorsement.
Conciliation Resources operates in four main currencies, Australian dollar, Euro, US dollar and Pound Sterling. In 2018, we also held accounts in Swedish Krona and Norwegian Krone. An account is held in each currency. Exchange rate risk is considered on a project and organisational level on a rolling basis. Currency exchange rates are monitored by the Chief Operating Officer, who works with the Finance Team to ensure that incoming funds are deposited into the appropriate account, and transfers are made in a timely manner. Projects that are planned based on income in a foreign currency carry an element of risk that is identified and responded to at the project planning phase.
Funding to partners is made in a currency that is agreed with the partner, to reduce exchange rate risk to the partner without creating unreasonable risk to Conciliation Resources. Overseas expenditure is predominantly in USD.
Principal Funding Sources
The principal funding sources for the charity are currently grant income and donations mainly from governments and charitable organisations. Further details of funding are provided in notes 2 and 3 to the Finanbial Statements.
12 CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES Financial Review (continued)
Investment Powers and Policy
Conciliation Resources received income through donations, grants, project income and other sources. Conciliation Resources plans its activities over one, three and five-year time horizons and budgets to use all anticipated income. The only funds that Conciliation Resources holds that are not expendable within 12 months of receipt are reserves and any grants or contracts for activities over a longer period. Consequently, its policy for investment is to retain funds as cash and them place on bank deposit, or on deposit with the COIF Charities Deposit Fund at the best rate available. Reserves Policy
Conciliation Resources aims to keep a prudent working balance of unrestricted operating reserves equalling six months core' operating costs to cover future contractual liabilities, mainly staff'salaries and rent (estimated at f700,000 In 2018 and 8612,000 in 201 7).
The unrestricted funds balance at the year-end was F1,837,739 of which 61,784,371 was the unrestricted reserves balance and 653,368 was the designated staff contingency fund balance.
The goal of building these unrestricted operating reserves is balanced against the need of specific programme areas. The Board of Trustees keeps the reserves policy under regular review.
Plans for the Future
Conciliation Resources aims to continue following prudent resource management that allows sustainable continuation of our aims and objectives across our areas of work. The recent growth of the organisation has both necessitated and resulted in beneficial investment in systems and processes. During this year, the organisation learnt how to respond to financial and regulatory shifts within a changing donor environment. The organisation will take that learning into our strategic planning for 2020-2025, ensuring resources are allocated to their best effect to further peacebuilding outcomes while ensuring the sustainability and efficiency of the organisation.
Trustees' Responsibilities in Relation to the Financial Statements
The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.
Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and app1icable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its income and expenditure for that period, In preparing these financial statements, the Trustees are required to:
~ select suitable accounting policies and then apply them consistehtly;
~ observe the methods and principles in the charities' SORP;
~ make judgements and estimates that are reasonable and prudent
~ state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
~ prepare the financial statements on the going concer'n basis unless It is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
13 CONCILIATION RESOURCES REPORT OF THE DIRECTORS AND TRUSTEES
Statement of Disclosure tb Auditor
In accordance with company law, the Company's Directors certify that:
~ so far as they are aware, there is no relevant audit information of which the Company's auditor is unaware; and
~ as the Directors of the Company they have taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the Charity's auditor is aware of that information.
Auditor
PKF Littlejohn LLP was reappointed as auditor to the Company during 2010 and have indicated their willingness to continue in office. of This report has been prepared in accordance with the special provisions relating to small companies within Part 15 the Companies Act 2006.
Approval This report was approved by the Board of Directors and Trustees on ~May 2019 and signed on its behalf. dd;~~~ D Good Director and Trustee INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONCILIATION RESOURCES Opinion
We have audited the financial statements of Conciliation Resources (the 'charitable company') for the year ended 31 December 2018 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ire/and (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
~ give a true and fair view of the state of the charitable company's affairs as at 31 December 2018 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; ~ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 'and ~ have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable conipany in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these i equirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
~ the trustees' use of the going concern basis ot accounting in the preparation of the financial statements is not appropriate; or ~ the trustees have not disclosed in the financial statements any identified material, uncertainties that may cast significant doubt about the chaiitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The other information comprises the information included in the report of the directors and trustees, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not 'cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial'statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there Is a material misstatement in the financial statements or a material misstatement of the other information. If,
15 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONCILIATION RESOURCES
Other information (continued)
based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit
~ the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report,
We have nothing to 'report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
~ adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ~ the financial statements are not in agreement with the accounting records and returns; or ~ certain disclosures of trustees' remuneration specified by law are not made; or ~ we have not received all the information and explanations we require for our audit; or ~ the trustees were not entitled to prepare the financial statements in accordance with the small companies' regime and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of, company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from matedial misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accoungng unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will. always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
16 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CONCILIATION RESOURCES
Auditor's responsibilities for the audit of the financial statements (continued) Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone, other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: hft //www. frc or .uk/auditorsres onsibilities. This description forms part of our auditor's report.
Alastair Duke (Senior Statutory Auditor) 1 Westferry Circus For and on behalf of PKF Littlejohn LLP Canary Wharf Statutory Auditor London E14 4HD '3 2ti19 i /ffgg
17 CONCILIATION RESOURCES STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 DECEMBER 2018
Unrestricted 'Restricted Total Total Notes Funds Funds 2018 2017 6 8 f Income and endowments from:
Donations and legacies 2 1,052,912 1,052,912 1,252,489 Charitable activities 3 23,500 4,909,743 4,933,243 3,865,223 Investments 4 4016 4,016 3,474
Total Income and endowments 1,080,428 4,909,743 5,990,171 5,121,186
Expenditure on:
Raising funds 5 153,786 153,786 202, 144 Charitable activities 6 805,921 4,985,859 5,791,780 5,350,144
Total expenditure 959,707 4,985,859 . 5,945,566 5,552,288
Net income i (expenditure) 9 120,721 (76,116) 44,605 (431,102) Transfers between funds 19 (76,116) 76,116
. Net Movement in Funds 44,605 44,605 (431,102)
Reconciliation of Funds:
Total funds, brought forward 1,793,134 1,793,134 2,224, 236
Total funds carried forward 19 1,837,739 1,837,739 1,793,134
The Statement of Financial Activities also complies with the requirement for an Income 8, Expenditure Account under the Companies Act 2006.
All income and expenditure derives from continuing activities.
The Statement of Financial Activities includes all gains and losses recognised duting the year.
The notes on page 21 to 37 form part of these Financial Statements.
18 CONCILIATION RESOURCES BALANCE SHEET AT 31 DECEMBER 2018
Notes 2018 2017
Fixed Assets
Intangible assets 12 18,376 33,077 Tangible assets 13 73,713 70,241 Current Assets
Debtors 14 1,032,542 1,091,678 Cash at bank and in hand 2,742,503 1,837,247
3,775,045 2,928,925 Creditors: Amounts Falling Due Within One Year 15 (1,937,399) (1,148,383)
Net Current Assets 1,837,646 1,780,542
Provisions 18 (91,996) (90,726)
Total Net Assets 1,837,739 1,793,134
Charity Funds
Unrestricted funds —General 19 371 — 1,784, 1,739,766 Designated 19 53,368 53,368 Restricted funds
1,837,739 1,793,134
The financial statements were approved and authorised for issue by the Board of Directors and Trustees ord~ay 2019 and were signed on its behalf by:
D Good (Director and Trustee)
... T Hansen (Company Secretary)
Company Registration No. 03196482
The notes on pages 21 to 37 form part of these Financial Statements.
19 CONCILIATION RESOURCES STATEMENT OF CASH FLOWS AT 31 DECEMBER 2018
Notes 2018 2017 E f
Cash flow from operating activities 22 913,348 (1,626,158)
Net cash flow provided by operating activities 913,348 (1,626, 158)
Cash flow froin investing activ)ties Payments to acquire tangible fixed assets (25,055) (10,380) Interest receivable 4,016 3,474
Net cash flow used in investing activities (21,039) (6,906)
Change in cash and cash equivalents in the year 892,309 (1,633,064)
Cash and cash equivalents at 1 January 1,837,247 3,469,345
Change in cash and cash equivalents due to exchange rate movements 12,947 966
Cash and cash equivalents at 31 December 2,742, 503 1,837,247
Cash and cash equivalents consists of:
Cash at bank and in hand 2,742,503' 1,837,247
Cash and cash equivalents at 31 December 2,742,503 1,837,247
The notes on pages 21 to 37 form pari of these Financial Statements.
20 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018
1. Summary of significant accounting policies
The slgnlticant accounting policies applied in the preparation of these financial statements are set out below, The accounting policies have been applied consistently throughout the year and in the preceding year, unless otherwise stated.
Basis of Preparation of Accounts and General Information
Conciliation Resources is a charitable company in the United Kingdom. In the event of the charity being wound the up, liability in respect of the guarantee is limited to 21 per member of the charity. The address of the registered office is given in the chadity information on page 2 of these financial statements. The nature of the charity's operations and principal activities are given on page 6.
The charity constitutes. a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the United Kingdom and Republic of . Ireland (FRS the Charities 102), Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2016.
The financial statements have been prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the charity. Going Concern
The Trustees consider that the use of the going cohcern basis is appropriate. The organisation continues to transition financially from the previous funding through the Department for International Development managed, Programme Partnership Agreement which ended on 31 December 2016. The Civil Society Review in 2016 set the parameters for the future relationship between the UK Government and civil society organisations and outlined four funding instruments of which Conciliation Resources is eligible to apply for two, UK Aid Direct and UK Aid Connect. Funding through UK Aid Connect has been successful. Smart 'peace is a 4-year programme for strategic conflict resolution. Working in up'to six fragile and conflict-affected contexts, the programme would be conducted by a specialist consortium, led by Conciliation Resources, in partnership with international Crisis Group, the Centre for Humanitarian Dialogue, The Asia Foundation, ETH Zurich, Behaviourai Insights Team and Chatham House. There has been a reduction in availability of unrestricted funding and this affects the operational flexibility in responding to opportunities, meeting increasing compliance requirements as weg as prefinancing, from internal the resources, mobiTisation of programme work funded through reimbursement by a donor. The Trustees believe that the current pipeline of funding applications will yield a number of funding awards in the coming months that will contribute funding towards programme work as well as organisational support costs,
The Trustees consider that the plans in place to adjust the organisational structure to the resources'available, in the event that this should prove necessary, and the reserves held to support this, are currently adequate and that Conciliation Resources will continue in operational existence for the foreseeable future. Income Recognition
All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income, after any performance conditions have been met, when the amount can be measured reliably and when it is probable that the income will be received.
' 21 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018
1. Accounting Policies (continued)
Income from donations, including gifts and grants that provide core funding or are of general nature, are recognised on receipt, unless there are conditions attached to the donation that have to be satisfied before entitlement can be obtained. In this case income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
The charity receives grant income, including government grants, which provides funding to support its activities. Income from government grants and other grants are recognised at fair value when the charity has an entitlement to it, when performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement conditions are not met then these amounts are deferred.
Investment income is recognised on a receivable basis.
Volunteers and Donated Services and Facilities
Where services that would normally be purchased from suppliers are provided to the charity free of charge, this contribution is Included as both income and expenditure in the financial statements at an estimate of the value of the contribution to the charity. There were no such donations during the year.
During 2018, the charity had 3 volunteers who provided 25 days of unpaid support working on various event and administrative tasks.
Expenditure Recognition
All expenditure is accounted for on an accruals basis, Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
~ Raising funds are those costs incurred in attracting voluntary contributions and donations, and those incurred in trading activities that raise funds and do not include the costs of disseminating information in support of the charitable activities;
~ Expenditure on charitable activities includes expenditure associated with the main objectives of the charity and include both direct costs and support costs relating to these activities; and
~ Other expenditure represents those items not falling into the categories above, Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Support costs allocation
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, communications costs, governance costs, and project management costs, They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to each programme activity based on the size of the programme expenditure as a proportion of the total expenditure on charitable activities and raising funds.
The analysis of these costs is included in note 7.
Intangible Assets
Intangible assets are stated at cost less accumulated amortisation and are amortised on a straight-line basis over their useful lives. The useful lives of intangible assets are as follows:
Computer software 5 years
22 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018 1, Accounting Policies (continued)
Tangible Fixed Assets and Depreciation
Tangible fixed assets are stated at cost less depreciation. The cost of minor additions or those costing less than 2900 are not capitalised. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on a straight line basis:
Computer Equipment 3 years Office Furniture & Fittings 3 years Leasehold 10 years Leasehold Improvements 3 years Provisions
Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.
Funds
Unrestricted general funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for specific purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are monies raised for, and their use restricted to, a specific purpose or donations subject to donor- imposed condiTions. The cost of raising and administering such funds is charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statbments. Employee Benefits
iAihen employees have rendered service to the charity, shoit-t'erm employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The charity operates a defined contribution pension plan for the benefit of its employees. Contdibutions are expensed as they become payable. Tax
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010. It therefore meets the definition of a charitable company for UK corporation tax purposes. Foreign Currency
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rate of exchange ' ruling at the balance sheet date. Transactions in foreign currencies are initially recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Financial Activities. Operating lease agreements
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis over the pediod of the lease.
23 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018
2. Income from donations and grants Total Total 2018 ' 2017 8 8
Donations 1,831 37,106 Grants 1,051,081 1,215,383
1,052,912 1,252,489
100% (2017: 100%) of unrestricted grants is attribut'able to geographical areas outside the United Kingdom.
Income from donations and legacies was 81,052912 (20f7-81,252489) of which 81,052,912 (20f 7-ff,2f 7489) was attributable to unrestricted funds and Enil (20f 7 - 835,000) was attributable to resdcted funds.
Grant income includes E1,051,081 (2017 - Ef,215,383) of government grants receivable in the year. These grants were awarded as follows: Total Total 2018 2017 8 8
Federal Department of Foreign Affairs, Switzerland 162,621 144,104 Swedish International Development Co-operation Agency 809,495 995,291 Represented by Irish Aid 78,965 75,988
1,051,081 . 1,215,383
3. Income from Charitable Activities Total Total 2018 2017 8 E
Grants 4,909,743 3,829,536 Other charitable income 23,500 . 35,687
4,933,243 3,865,223
Income fram charitable activities was 84,933,243 (207 7- E3,865,223) of which F4,909,743 (2017- 83,829,536) was attributable to restricted funds and 823,500 (20f7- 635,687) was attiibutable to unrestricted funds.
24 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018
3. Income from Charitable Activities (continued)
Grant income includes 84,338,728 (2017 - E3,224, 280) of government grants receivable in the year. The * government grants received are identified by a below:
Total Total 2018 2017' 8 8 Accord, Policy, Practice
Joseph Rowntree Charitable Trust, UK * 28,593 40;846 Ministry of Foreign Affairs, Finland * 8,360 European Uhlon 106,074 74127 Peace Nexus Fund 4,977 "UK Aid * 579,997 383,208 Federal Department of Foreign Affairs, Switzerland
719,641 506,541 Caucasus * European Union 219,619 178,179 ' UK Foreign and Commonwealth Office * 403,687 Federal Department of Foreign Affairs, Switzerland 858 * 166, 51,656 UK's Conflict, Stability and Security Fund 434,036
820,513 633,522
West Africa
National Endowmerit for Democracy, USA 30,285 11,841 Institute of De.elopment Studies, iUK 06 5s3 * Federal Minister " for Foreign Affairs, Germany 395,409 217,427 Minister for Foreign Trade and Development, Netherlands 7,657 Commonwealth Fellowship * 2,360 European Union 8,491
433,351 256,662
East and Central Africa * UK Foreign and Commonwealth Office 304,472 * 86,717 European Union 239,440 445,059 Folke Bernadotte Akademin 111,200 151,116 Australian Embassy's Direct Aid Programme * 28,675 French Embassy in Central Africa Republic 6,193 11,228
661,305 722,795
25 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 3'I DECEMBER 2018 3. Income from Charitable Activities (continued) Total Total 2018 2017 Horn of Africa 6 6
Zivik instiiut fur Auslandsbeziehungen 237,351 169,665 * Federal Minister for Foreign Affairs, Germany 128,535 Robert Bosch Riftung 30,419 * Federal Department of Foreign Affairs, Switzerland 79,108
365,886 279,192
South Asia
Commonwealth Fellowship 18,550 Ploughshares Fund 38,613 Misereor 26,258 * European Union 547,334 770,100
573,592 827,263
Pacific
* Department of Foreign Affairs and Trade, Australia 447,349 . 239,171 Misereor 84,011 19,173 ' " UK Foreign and Commonwealth Office 20, 180 58,302 * European Union (16,797) 293,362
534,743 610,008
Philippines and Colombia * British Embassy (Manila) FCO 13,919 * Department of Foreign Affairs, Canada 136,131 105,076 * European Union 141,932 (188,978)
291,982 (83,902)
Cross Regional Project
* UK Foreign and Commonwealth Office 233,570 * UK Aid 276,820 United Nations Population Fund (1,660) 77,455
508,730 77,455
' Total grants 4,909,743 3,829,536
85% (2017- 93%) Of grants within charitable activities is attributable to geographical areas outside the United Kingdom. CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 201&
4. Income from investments Tot'al Total 2018 2017 8 6
Bank interest 4,016 3,474
Income from investments was F4016 (2017-83474) of which all (2017—a//) was attributable to unrestricted funds. 5. Costs of raising funds Total Total 2018 2017 f E Salaries and staff costs 109,455 143,913 Direct costs 6,110 5,811 Support costs 38,221 52,420
153,786 202, 144
All. F153,784 (2017 - F204, 144) of the above costs were attributable to unrestricted funds. LO (O 0 g O Ct Xl
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'0 m DJ W CO ~ CO (0 (A O CD Ql O $ N 0 CO PJ (0 CO f M IA Is 0 4 O CB N IA (0 m (I N CII m' co PJ co Ol.— GI 0 fG 0 C (G C (G d (0 (G m '0 C E . '0 IG In C CQ m '0 IU 0 Gl m O O (G 8 Zl +0 0 0 , 0 0 0.C!. 0 f Gl ID CO 2 Q O Q. I UJ PD P. '0 Gl K m 0 (D z m C Z m Di CI( 0 0 0 m m 0 I- mg c C o~ ID m ~m 0 8 -v 0 o~w CI. ID 0 0 m v) E 0 0 gm0 O oommm 0 0 (D 0 O & u Q IU Z (QQ. Q. O (0 0R V CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEII/IENTS YEAR ENDED 31 DECEIT/IBER 2018
8. Governance costs 2018 2017 6
Board Costs 13,174 15,493 Governance Training 1,674 1,920 Auditors' remuneration 10,419 10,488 Accountancy fees 20,440 Legal fees 4,034 3,519
29,301 51,860
9. Net income for the year
The net income is stated after charging: 2018 2017 8
Depreciation of tangible fixed assets 21,583 39,752 Amortisation of intangible fixed assets 14,701 14,700
Operating lease rentals 139,313 142,685 Audit's remuneration — Statutory audit 9,000 8,740 Under/(over) accrual of prior year audit fee (138) Grant audits 12,770 23,640 Foreign Exchange Translation (Gains)/Losses 27,670 36,103
10. Trustees' and key management personnel remuneration and expenses
Expenses reimbursed for airfares, t;avel, telephone, hospitality and accommodation totalling 65,397 (2017 - 64,846) were paid on behalf of eight (2017 —seven) trustees.
The total amount of employee benefits received by key management personnel during the year was 8315,911 (2017 —E/60, 6f7). The Charity considers its key management personnel to be the Executive Management Team.
30 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018
11.Staff costs and employee benefits
The total staff costs and employee benefits were as follows: 2018 2017 8 8
UK employee salaries 1,896,999 1,635, 172 Social security 198,337 175,831 Defined contribution pension costs 185,667 156,079
2,281,002 1,967,082
The number of employees who received total employee benefits (excluding employer pension costs and termination payments) of more than 260,000 is as follows:
2018 2017
680,001 to 290,000 F70,001 to 680,000 2 f60,000 to C70, 000 5
, During the year the charity paid 238,128 (2017-822,230) under a defined contribution pension scheme on behalf of the staff members/director earning over 660,000.
The average monthly number of employees and full time equivalent (FTE) during the year was as follows:
2018 2018 201'7 2017 Number FTE Number FTE
Executive Management Team 3.0 3.0 2.0 2.0 Accord, Policy, Practice 5.6 5,6 6.0 6.0
Caucasus 4,7 4.4 3.6 3.3 West Africa 2.6 2.6 3.3 3.3 East and Central Africa 3.0 3.0 2.4 2.3 Horn of Africa 1.7 1.7 13. 1.2 South Asia 3.0 3.0 3.2 3.2 Pacific 4.6 4.6 3.9 3.5 Philippines and Colombia 2.5 2.5 2.0 2.0 Cross Regional Project 1.1 1.1 0.0 0.0 Administrative, financial management and fundraising support 19.8 17.4 17.2
51.7 48.5 . 45.1 44.0
31 CONCILIATION RESOURCES NOTES TO TWE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018
12. Intangible fixed assets Computer Software Cost F
As at 1 January 2018 73,504 Additions
As at 31 December 2018 73,504
Amortlsatlon
As at 1 January 2018 40,427 Charge for the year 14,701
As at 31 December 2018 55,128
Net Book Values
As at 31 December 2018 18,376
As at 31 December 2017 33,0?7
' 13. Tangible Fixed Assets Leasehold Computer Furniture Improvements Equipment & Fittings Total 6 E F 6
As at 1 January 2018 316,564 98,330 47,081 461,975 Additions 23,173 1,882 25,055 Disposals (4 082t (1 56?t (5,649)
As at 31 December 2018 316,564 117,421 47,396 481,381
Depreciation
As at 1 January 2018 262,670 85,951 43,113 391,734 Charge for the year 8,702 10,624 2,257 21,583 Disposals (4,082) (1,567) (5,649)
As at 31 December 2018 271,372 92,493 43,803 407,668
Net Book Values
As at 31 December 2018 45, 192 24,928 3,593 73;713
As at 31 December 2017 53,894 12,379 3,968 70,241
32 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018 14. Debtors 2018 2017
Grants receivable 207,693 53'I,633 Other d'ebtors 57,329' 66,809 Prepayments and accrued income 333,920 263,128 Grants accrued 433,600 230,108
1,032,542 1,091,678
Other debtors includes a rent deposit of 232,500 (2017- f32,500) which is receivable in more than one year.
15. Creditors: Amounts Falling Due Within One Year 2018 ' 2017
Trade creditors 121,869 85,869 Social secudty & other taxes 64,048 50,216 Other creditors 100,475 102,060 Accruals 257,519 137,616 Deferred income (Note 18) 1,403,488 772,622
1,937,399 1,148,383
16. Operating leases
Total future minimum lease payments under non-cancellable operating leases are as follows:
2018 2017 8 6
Not later than one year 138,597 139,083 Later than one and not later than five years 527,522 536,119 Later than five years 32,500 162,500
698,619 837,702
' 17. Deferred Income 2018 2017
Balance as at 1 January 772,622 1,511,889 Amount released to income in the year (772,622) (1,511,889) Amount deferred in the year 1,403,488 772,622
Balance as at 31 December 1,403,488 772,622 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018
17. Deferred Income (continued)
2018 2017
LIK Foreign 8 Commonwealth Office 14,060 79,759 Department of Foreign Affairs, Canada 35,546 66,365 Commonwealth Fellowship 400 SIDA 669,421 Federal Minister for Foreign Affairs, Germany 4,677 Irish Aid 80,513 78,965 Robert Bosch Stiftung 4,452 European Union 153,184 202,988 Department of Foreign Affairs & Trade (Australia) 76,190 180,677 Misereor 52, 135 Folke Bernadotte Akademin 51,918 38,034 National Endowment for Democracy, USA 5, 142 Federal Department of Foreign Affairs, Switzerland 8,877 36,930 French Embassy in CAR 6,193 Zivik Institut fur Auslandsbeziehungen 5,957 15,879 DFID 32,649 Joseph Rowntree Charitable Trust , 10,638 5,481 Misereor 19,173 Minister for Foreign Trade and Development, Netherlands 184,907 Sasakawa Foundation 55,000
Balance as at 31 December 1,403,488 772,622
18. Provisions for liabilities 2018 2017
Balance as at 1 January 90,726 89,473 Additions during the year 1,270 1,253
Balance as at 31 December 91,996 90,726
The provision relates to the dllapidations expense expected for the London office lease.
Charges to the Statement af Financial Activities resulting from provisions during the year amount to E1,270 (20'16— 81,253) of which all (2017 - a/l) was attributable to unrestricted funds.
34 CONCiLIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018 19, Fund reconciliation 2018 Balance as Balance as at 01.01.18 Income Expenditure Transfer at 31.12.18 E 8 8 6 6 Restricted Funds: Charitable Activities: Accord, Policy, Practice 719,641 (720,683) 1,042 Caucasus 820,513 (820,513) West Africa 433,351 (436,252) 2,901 East and Central Africa 661,305 (661,072) (233) Horn of Africa 365,886 (365,886) South Asia 573,592 (575,096) 1,504 Pacific 534,743 (603,922) 69,179 Philippines and Colombia 29'1,982 (292,048) 66 Cross Regional Project 508,730 (510,387) 1,657
Total restricted funds 4,909,743 4,985,859 76,116 Designated Funds: Staff contingency fund 53,368 53,368
General Funds 1,739,766 1,080,428 (959,706) (76,116) 1,784,871
Total unrestdicted funds 1,793,134 1,080,428 (959,707) (76,116) 1,837,739
Total Funds 1,793,134 5,990,171 5,945,566 1,837,739'
Fund reconciliation 2017 Balance as Balance ps at 01.01.17 income Expenditure Transfer at 31.12.17 8 E 6 Restricted Funds: Charitable Activities: Accord, Policy, Practice 506,541 (506,541) Caucasus 40,751 648,522 (676,675) (12,598) West Africa 256,662 (331,954) 75,292 East and Central Africa 722,795 (711,641) (11,154) Horn of Africa 279,192 (279,488) 296 South Asia 847,263 (834,231) (13,032) Pacific 610,008 (616,180) 6,172 Philippines and Colombia 159,966 (83,902) (105,076) 29,012 Cross Regional Project 77,455 (77,455)
Total restricted funds 200,717 3,864,536 (4,139,241) 73,988 Designated Funds: Staff contingency fund 53,368 53,368
General Funds 1,970,151 1,256,650 (1,413,047) (73,988) 1,739,766
Total unrestdicted funds 2,023,5'l9 1,256,650 (1,413,047) (73,988) 1,793,134
Total Funds 2,224, 236 5,121,186 (5,552,288) 1,793,134
35 CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018.
19. Fund reconciliation 2018 (continued)
Purposes of Restricted Funds:
Restricted funds are funds which are subject to restrictions on use imposed by donors and are not available for use generally by Conciliation Resources. Restricted funds held by Conciliation Resources are used by Conciliation Resources to fulfil its objects and goals, in accordance with the terms and conditions specified by the sources of the relevant funds. Restricted funds are currently held for the Accord, Policy and Practice team to deliver informed, improved support for inclusive peace and transition processes and for the Programmes teams to support national and regional stakeholder dialogues, promote reconciliation in communities, to enhance prospects for lasting peace, ensure inclusive policy making and to support innovative paths to peace.
During the year, most funds received were performance related. In accordance with the accounting policy (see note 1), funds received and not recognised as income have been carried fonvard as deferred income (see note 17).
Duding the.year a number of grants came to an end and a final submission prepared to the donor. Any previouslv unrecognised overhead contributions were transferred to unrestricted reserves at the year end.
Purposes of Designated Funds -Staff Contingency Fund:
Designated reserve for unforeseen staff expenses, including maternity, paternity and redundancy costs.
Transfers between funds;
In 201 8 a number of projects concluded. Some of these required match funding from unrestricted reserves. As a result a transfer was made from unrestricted to restricted reserves.
20. Analysis of net assets between funds
General Designated Restricted Total Total ' Funds Funds Funds 2018 2017 1
Fixed assets 92,089 92,089 103,318 Cash 2,403,702 53,368 285,433 2,742,503 1,837,247 Other current assets / (liabilities) (619,424) (285;433) (904,857) (56,705) Provisions (91,996) '(91,996) (90,726)
1,784,371 53,368 1,837,739 1,793,134
21.Analysis of changes in net debt
At start Cash-Flows Foreign Other At end of year exchange non-cash of year movements changes
Cash 1,837,247 892,308 12,947 2,742, 503
As at 31 December 2018, Conciliation Resources had no net debt. CONCILIATION RESOURCES NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2018
22. Reconciliation of net expenditure to net cash flow from operating activities
2018 2017 8 8
Net (expenditure)/income for year 44, 605 (431,102)
Interest receivable (4,016) (3,474) Depreciation of tangible fixed assets 21,583 39,752 Amortisation of intangible fixed assets 14,701 14,700 (Increase)/decrease in debtors 59,136 (473,862) Increase/(decrease) in creditors and provisions 790,286 (771,206) Unrealised exchange rate loss on cash and cash equivalents (12,947) (966)
Net cash flow from operating activities 913,348 (1,626,158)
23. Pensions and other post-retirement benefits
Defined contribution pension plans
The Charity operates a defined contribution pension plan for its employees. The amount of contributions recognised as an expense during the year was 8185,667 (2017- Ef56, 079).
The pension expense has been charged to specific programmes where staff are engaged in particular activities. The pension expense Included with support costs has been allocated across the activities between unrestricted and . restricted funds in accordance with the accounting policy on page 22,
24. , Related party transactions
For the whole of the year, the charity-was under the control of the Directors and Trustees as shown on page 2.
There were no related party transactions during 2018. .
25. Financial Instruments
The charity holds a number of financial assets (for example debtors and cash) and financial liabilities (for example creditors and provisions for grants payable) which meet the definition of basic financial instruments'under the FRS 102 SORP. Details of the measurement bases, accounting policies and carrying values for these financial assets and liabilities are disclosed in the notes above.
37