For the financial TRUSTEES’ REPORT year ended AND CONSOLIDATED 29 February 2020 FINANCIAL STATEMENTS Human rights defender Maria Felicita Lopez (31) Front cover image: Hala Sanak (14), who plays for from the Lenca community in Honduras, one of Gaza’s first-ever schoolgirls’ football club, enjoying the many people in the country facing the threat a Gaelic football skills training session on the beach of violence and intimidation for standing up for her with Armagh’s All-Ireland winner Oisín McConville. community’s right to land and natural resources. Oisín was in Gaza to promote Trócaire’s 2019 (Photo: Simon Burch) Christmas Appeal. (Photo: Garry Walsh/Trócaire) OUR VISION & VALUES Trócaire envisages a just and peaceful world where: • People’s dignity is ensured and rights are respected • Where basic needs are met and resources are shared equitably • Where people have control over their own lives • Where those in power act for the common good We support people regardless of ethnicity, religion, gender or any other facet of identity.
Our work is guided by five values: Solidarity – we stand in support of people facing injustice. Perseverance – we do not give up. Accountability – we are accountable to our donors and the communities we work with. Participation – we believe everybody has the right to participate in decisions that affect them. Courage – we will be brave. We practice these values in our programmes, partnerships and relationships. TABLE OF CONTENTS
SECTION 1: WHO WE ARE SECTION 2: WHAT WE DO How we work 5 Goals for a Just World Message from the Goal 1: Human rights and democratic space 16 Chair of the Board 7 Goal 2: Equitable access to and use of resources 20 Message from the CEO 8 Goal 3: Women’s empowerment 24 Our work at a glance 10 Goal 4: Protection of human dignity in humanitarian crises 28 Where we work 12 Goal 5: People and leaders in Ireland acting for a just world 32 Goals for a stronger Trócaire
Madris Mginya and her children (L-R) Goal 6: Innovation, learning and improvement 36 Eric (8), Joy-Faith (6), Alex (7), Julius (12) and Eugene (16) at their home in eastern Goal 7: Effective partnerships 38 Kenya. Madris and her family featured in the 2020 Trócaire Lenten Appeal. They live Goal 8: Increased scale and income 42 in a region of Kenya that has been badly affected by climate change and drought. Goal 9: An accountable and effective organisation 44 (Photo: Gary Moore) SECTION 3: HOW WE’RE RUN Structure, governance and management 46 Appendix 1: Charitable expenditure by country 115 Financial review 72 Appendix 2: Top 50 grants to partners 116 Independent auditor’s report 80 Trustees and other information 118 Consolidated statement of financial activities 83 Consolidated balance sheet 84 Consolidated cash flow statement 85 Trust statement of financial activities 86 Trust balance sheet 87 Trust cash flow statement 88 Notes to the financial statements 89 4 | How We Work Trócaire Annual Report 2019/20 | 5
HOW WE WORK We believe real change can be delivered only by working in partnership with local communities affected by poverty and injustice.
Partnership means working We measure our impact against with individuals, communities these four levels. and local organisations to In Ireland, we work with help bring about the change communities north and south to they want to see in their lives. educate, inspire and motivate Fundamentally, partnership is people to take action in the about solidarity, respect and name of global justice. empowerment. Our work is funded by the Irish We believe that to bring about public and institutional donors, change we must work at four including the Irish government different levels: through Irish Aid. • Empowering women and men to secure their basic rights In Ireland, we work • Mobilising communities with communities and engaging leaders to build sustainable and north and south to resilient communities educate, inspire and • Strengthening civil society motivate people to to challenge injustice and take action in the tackle poverty name of global • Influencing those in power to create a fairer and more justice. sustainable world. Nzuva Sitwaminya Pendeza, Coordinator of our partner organisation CVAP in Bunia, Democratic Republic of Congo. Trócaire, with Irish Aid support, has been funding programmes to halt the spread of the ebola virus. (Photo: Garry Walsh / Trócaire) Trócaire Annual Report 2019/20 | 7 MERCY IN ACTION – A MESSAGE FROM THE CHAIR Since the turn of the century, the global maternal mortality rate has declined by 37 per cent, while the mortality rate for under-5s has dropped by 47 per cent.
Those statistics alone tell a sisters by helping 2.5 million powerful story of the impact aid people over the past year. and development has had in the poorest corners of our world The stories of progress and over recent decades. While we impact lift our hearts. However, are rightly focused on those as you will read in this report, who still live in unacceptable there are many more great conditions, it is important to challenges to overcome. remember the many millions Conflicts and climate change of people who have been threaten to undo much of the supported to lift themselves out progress that has been made. of poverty and towards brighter, Too many people live in hunger. better futures. Too many people live under the threat and reality of violence. It is a source of pride and great satisfaction to know that Trócaire With so much polarisation has played a role in this. and divisiveness prevalent in today’s political world, we must In 1973, the Bishops of reflect on the challenges facing and impact of Trócaire. I would Ireland issued a pastoral letter marginalised and excluded also like to thank my fellow on development. This letter groups. In the words of Pope Bishops for their continued established Trócaire. The letter Francis, “Loving our neighbour support for Trócaire’s work, as read: means feeling compassion for well as the countless clergy the sufferings of our brothers and parishioners around Ireland “The earth and its good things and sisters, drawing close to who are the driving force behind belong to all the people of the them, touching their sores and Trócaire. earth and no nation has the right sharing their stories, and thus to build its own prosperity upon manifesting concretely God’s Finally, I want to pay tribute to the misery of others. It is our tender love for them.” Trócaire’s staff around the world, Christian duty as individuals to many of whom are frontline share our wealth and to help Trócaire’s work is grounded in workers playing an enormously our needy brothers. It is equally Catholic social teaching, which important role in the lives of our Christian duty to demand stresses the dignity of each vulnerable communities. that the political authorities person and their inalienable representing us act always human rights, along with their The stories in this report are, with justice and responsibility responsibilities, regardless of as always, testament to the towards less fortunate countries culture, ethnicity, gender or important work being done in and be prepared to use all religion. the name of the Catholic Church means necessary for this end.” in Ireland. As Chair, I would like to Almost 50 years on, Trócaire acknowledge my fellow board continues to fulfil those duties, members for their time and William Crean responding to the humanitarian expertise in helping to ensure Bishop of Cloyne needs of our brothers and the transparency, accountability Chair of the Board of Trócaire 8 | Preface MESSAGE FROM THE CEO Writing this in summer 2020, the period covered in this Annual Report – March 2019 to February 2020 – feels like a different world.
As the 2019/20 financial year millions from their homes, drew to a close, Covid-19 was while the worsening impacts regarded as a localised outbreak of climate change are forcing in Wuhan, China. Within weeks people from rural areas into of the financial year ending, it cities and across borders. exploded into a global pandemic that has utterly changed all of our In Central America, the disregard lives. for human rights is making it unsafe for people to stay in The Covid crisis has profoundly their homes. In Honduras I met changed Trócaire’s work. with communities struggling The virus has highlighted the to protect their rights against structural inequalities that exist. hugely powerful forces. Nine People living in poverty have members of the Tolupan been unable to take preventative community have been jailed for measures such as hand washing, protecting their land from logging social distancing and remote companies. working. They lack the most basic of services and depend Protecting communities from heavily on income from daily corporate exploitation was the labour. Our programmes and the theme of our ‘Making A Killing’ contexts in which they operate report, launched in February shifted dramatically in response 2019. Throughout 2019, we to the new reality. campaigned in Ireland in The Covid crisis has support of a binding UN Treaty This crisis has had a devastating on Business & Human Rights. effect on families already living profoundly changed This campaign has made good in poverty and facing food progress, with Ireland now Trócaire’s work. The insecurity. We are committed actively engaged in the UN to supporting our partners and virus has highlighted process and the issue featuring the communities they serve as the structural in several general election party they deal with these long-term manifestos. inequalities that exist. impacts. This campaign is rooted in the People living in poverty Throughout this, we must experiences of communities, continue to support communities have been unable particularly in Central America to face the huge range of where our partners are routinely to take preventative challenges that pre-date targeted for opposing corporate measures such as this Covid era and that are activities that negatively affect compounded by it. hand washing, social people’s access to land and distancing and remote Last year saw the continuation water. In 2016 Berta Cáceres of mass displacement. Long- was murdered for such working. running wars in countries such opposition. Last December, her as Syria and Yemen have driven family received some sense of Trócaire Annual Report 2019/20 | 9
justice when seven men were I also want to thank our compliance with charity law and jailed for her murder. It was institutional funders, in to fulfil best practice in NGO an honour to spend time with particular Irish Aid. Irish Aid is governance. Berta’s daughter, Bertita, when recognised as a global leader she visited Ireland in February in development and their These changes will further 2020 to launch Trócaire’s Lenten commitment to funding our enhance Trócaire. Undoubtedly, Appeal. work is vitally important. we face challenging times. The lasting impacts of the Covid-19 We took enormous We do not take the support of pandemic will only become clear encouragement last year from the public or institutional donors in the months ahead. Our loyal the emerging Climate Strike for granted. We invest significant supporters and our incredibly movement. This movement, time and energy on ensuring our committed teams around the powered by young people all governance structures are robust world will continue to play a vital over the world, is a clear sign and can be trusted. Last year we role in the lives of the poorest that the next generation is won three governance awards and most vulnerable. determined to push for greater for our financial reporting and climate action to protect the risk management processes. world. Trócaire joined young people on the streets of Dublin, We have continued to Derry and Belfast as they made strengthen Trócaire from a their voices heard. governance perspective. Last year, we introduced a Board Our programmes Our programmes around the Diversity Policy to encourage around the world world brought support and and facilitate greater diversity in relief to 2.5 million people. our governance structure. This is brought support and That figure is a testament to very timely given the increased relief to 2.5 million the commitment of the Irish awareness of deeply rooted public to the work of Trócaire. I issues of social inclusion facing people. That figure want to thank our supporters all ethnic minorities. is a testament to the over Ireland, north and south, for their continued generosity. We have also changed our legal commitment of the In particular, the support of status from a trust to a company Irish public to the work parishes, clergy, volunteers and limited by guarantee. This legal lay people continues to drive our change will make it easier to of Trócaire work. access funding, to demonstrate
Caoimhe de Barra with Blanca Soto from the indigenous Tolupan community in Honduras. Dozens of her community have been killed for protecting their land. Blanca’s life is under threat. Nine Tolupan leaders are currently Caoimhe de Barra speaks with President of Ireland Michael D. Higgins and his wife Sabina at imprisoned for their opposition to a logging the Bloom festival in Dublin, June 2019. Trócaire’s garden at Bloom highlighted the risks facing company operating on their land. (Photo: human rights defenders around the world. (Photo: Garry Walsh / Trócaire) Giulia Vuillermoz / Trócaire) Nasteho, Nasro and Sacdiyo, students at a Trócaire-funded primary school in Gedo, Somalia. (Photo: Eyeris Communications)
OUR WORK AT A GLANCE In 2019/20 Trócaire’s work improved the lives of 2.5 million people in some of the poorest countries in the world.
HUMAN RIGHTS WOMEN’S €3.6m spent EMPOWERMENT 78,000 people €12.7.m spent supported directly 185,000 people supported directly
RESOURCE RIGHTS HUMANITARIAN €15.5m spent €25.6m spent 370,000 people 1,795,000 people supported directly supported directly €64m €67m
€64m €67m
INCOME TOTAL INCOME: €64m €64m Institutional funders and grants: €41m Public donations: €23m
EXPENDITURE TOTAL EXPENDITURE: €67m €67m Overseas programmes: €58m Fundraising: €6m Public Engagement: €3m 12 | Where we work
01 01 02 02 03 03
09 09
WHERE 20 20 WE WORK In 2019/20 we funded partners in 18 countries around the world.
The approximate number of people directly supported in each country is listed in brackets beside the country name.
CENTRAL AMERICA 9. Sierra Leone (46,000) We also funded humanitarian 1. Guatemala (59,000) 10. Somalia (218,000) assistance in: 2. Honduras (44,000) 11. South Sudan (12,000) 19. Bangladesh (400) 3. Nicaragua (47,000) 12. Sudan (384,000) 20. Ecuador (200) 13. Uganda (176,000) 21. Eritrea (7,000) AFRICA 14. Zimbabwe (78,000) 22. Greece (3,000) 4. Democratic Republic of Congo (379,000) ASIA & MIDDLE EAST 23. India (3,000) 5. Ethiopia (609,000) 15. Lebanon / Syria (12,000) 24. Indonesia (7,000) 6. Kenya (48,000) 16. Myanmar (87,000) 25. Mozambique (2,000) 7. Malawi (181,000) 17. Israel / Palestine (21,000) 26. Philippines (700) 8. Rwanda (38,000) 18. Pakistan (38,000) 27. Yemen (21,000) Trócaire Annual Report 2019/20 | 13
22
15
17 15 18
19 23 16
27 26 12 21
10 11 05
13 06 24 08 04
07
25 14
IMPACT FIGURES THROUGHOUT THIS REPORT RELATE TO PEOPLE DIRECTLY SUPPORTED BY OUR WORK.
For example, they will have participated in a project activity or will have increased access to food because a member of their household has participated in the project. For each person reached directly, many more would be reached indirectly through advocacy and community mobilisation. Our figures are based on data collected in communities by our partners through a variety of means, including registration sheets and community consultations. The figures are validated by Trócaire with adjustments made to avoid double-counting across Goal areas. The data is input into Salesforce at project level and rolled up to grant and country level to facilitate country and global calculations of reach. Standardised indicators (global indicators) are also used to assess impact across a number of priority areas and are included in the chapters on Goals 1-4. Throughout this report impact figures have been rounded to their nearest thousand.
Trócaire’s perma-garden project helps South Sudanese refugees living in Palabek refugee camp in Uganda grow food. Perma-gardens combine components of permaculture and bio-intensive agriculture to maximize production on a small amount of land. Lakot Linda arrived in Palabek in 2017 with her four grandchildren. She is the sole provider for the entire family. Thanks to this project, the family can grow their own food. (Photo: Sarah Fretwell). 16 | Strategic Goals GOAL 1: THE HUMAN RIGHTS OF MARGINALISED WOMEN AND MEN ARE RESPECTED AND DEMOCRATIC SPACE IS PROTECTED
Outcome 1: National In order for people to lift and psychosocial support and governments and themselves out of poverty and physical accompaniment to create better futures, they must protect their human rights. international duty bearers be able to express their basic While the overall picture for adopt policies to promote human rights. People have to protection of human rights be able to live free from fear of democratic and transparent and democratic space is violence by the State or other processes that protect and bleak in many countries, powerful forces, and they must Trócaire’s partners continue to fulfil the rights of people have access to justice. living in poverty. courageously defend people’s Last year, our work under this human rights. goal area supported 78,000 The situation facing HRDs in people in six countries: Outcome 2: The Central America is particularly Guatemala, Honduras, worrying. In Honduras and rights of people who Nicaragua, Palestine, Pakistan Guatemala, people working to are marginalised and and Zimbabwe. defend the environment, land vulnerable to human rights 2019 saw significant challenges rights and indigenous rights are violations are respected to democratic space and the particularly at risk. and protected. protection of human rights. In 2019 HRDs in both Governments increasingly countries faced criminalisation, This work supports the Sustainable clamped down on rights, intimidation and the threat – Development Goals, including: reduced space for civic action and reality – of violence. This and de-legitimised the work of threat is aggravated by impunity human rights defenders. and a lack of access to justice. Responding to the deteriorating Honduras is currently the second most dangerous place situation, in 2019/20 we in the world to defend human increased our support for rights (Frontline Defenders partner activities protecting and 2020). In 2019 our support to supporting human rights. These these HRDs included security actions included documenting trainings, providing legal support human rights violations, and speaking out publicly in accessing legal aid, taking While the overall their defence. picture for protection strategic legal cases, supporting Human Rights Defenders In Palestine, the Israeli State of human rights and (HRDs) and providing psycho- continued to deploy legislation democratic space social support for victims. and policies to constrict freedom of movement, access Our programmes in Guatemala, is bleak in many to judicial remedies and access Honduras and Palestine to land. This is in a context countries, Trócaire’s supported 33,330 people where right-wing voices are partners continue to directly (18,348 women and exerting ever greater influence courageously defend 14,982 men). These activities in Israeli public and political life. ranged from awareness raising people’s human rights. and capacity building training, Globally, last year saw our to litigation, advocacy, legal partners almost double the Trócaire Annual Report 2019/20 | 17 number – from 122 to 212 - • In Guatemala, legal support Looking forward: of legal cases being taken in was provided resulting in The COVID-19 crisis is defence of human rights. With the release of indigenous expected to contribute to a Trócaire’s support, our partners HRD Abelino Chub Caal further deterioration of human undertook 118 legal challenges from pre-trial detention rights. The crisis has led to an against forced displacement in April 2019. Abelino had increased militarisation in some in Palestine. These cases have spent more than 2 years countries, while some minority allowed hundreds of people in prison on charges of groups have been wrongly to remain on their land. Fifty- aggravated land-grabbing, blamed for spreading the virus. four legal cases were taken in arson and illicit association, Human Rights Defenders have Honduras on behalf of victims for trying to protect his been left vulnerable due to a of human rights violations, with community’s ancestral lack of protection and access to a further 40 in Guatemala. lands. He was fully the courts. absolved of all charges. Examples of impact under this (See page 39) In Ireland, we will continue Goal include: with two campaigns aimed • In Honduras, 2,600 HRDs at supporting human rights • In Gaza, 764 women gained new knowledge and overseas. Trócaire will continue survivors of violence were trained in techniques to push for the implementation received appropriate to defend human rights of the Occupied Territories Bill legal services, while 439 and measures for their own to ban trade with occupied women and 294 men security and protection. and boys received mental territories. We will also health supports. • 261 actions to access campaign for Ireland to support justice and assert people’s the UN Treaty on Business and • 3,484 Palestinian women civil, political and social Human Rights. and men received legal rights were supported in representation or psycho- Honduras. social support.
Madelime David (40) and her son Nevian Antwan Nuñez David (9) arm-wrestling in the porch in front of their house. Madelime is a human rights defender and member of the Honduran Black Fraternal Organisation, OFRANEH. She has faced threats and imprisonment for her role in defending her community’s access to ancestral land. Honduras is the second most dangerous place in the world to defend human rights. (Photo: Giulia Vuillermoz / Trócaire) 18 | Strategic Goals AFTER 18 YEARS, PALESTINIAN FARMERS GAIN ACCESS TO THEIR LANDS
Ever since an illegal Israeli settlement was built on Muhammad and Salim Sabah’s land 18 years ago, the Israeli military have prevented the family from accessing their lands, south of Bethlehem in the West Bank.
Yet due to a successful legal misery for Palestinian families action through Trócaire’s partner like the Sabah family. organisation Haqel, Muhammad and Salim were last year able Yet these families can use the to enter their agricultural land law to try and demand their again. rights. Despite the challenges, in many cases Trócaire’s legal “Even if our people were killed projects manage to get farmers here, we would come back,” back on their land. says Muhammad. “It’s like the air for us. We used to live here For over a year, Trócaire’s local for many, many years.” partner organisation Haqel has taken legal action with the Israeli The Israeli settlement of Ma’aleh authorities on behalf of the Rehavam was established in Sabah family. Haqel demanded 2001 on their land. This is a that the families access painful memory for the farmers. their lands and be protected. Palestinian farmers Muhammad Sabah (58) and Salim Sabah (67). (Photo: Garry Walsh / Prior to that, their families lived Following the filing of a legal Trócaire) on 90 acres of land here and petition, the Israeli army finally grew wheat and barley. withdrew its opposition.
Since the establishment of the After almost two decades, the Israeli settlement, settlers used Israeli army allowed the farmers firearms and dogs to prevent the to enter their lands again. With farmers from accessing the land. their land in bad shape, they brought tractors and began to “We came with our sheep and plough the fields. They plan on we were violently attacked,” cultivating wheat for the next says Muhammad of an attempt harvesting season. he and Salim made to visit the land. Salim says he was pushed “Hope is always here. We always to the ground and threatened wanted to keep the land and with a gun. we never lost hope,” they say. However the threat of violence The experience of the Sabah is still real and they will need the family is not unique. There are protection of the Israeli army to over half a million Israeli settlers continue to access the land. now living in illegal settlements built on Palestinian land in the West Bank. These settlements – illegal under international law – continue to expand and create Trócaire Annual Report 2019/20 | 19
PROTECTING HUMAN RIGHTS 6 COUNTRIES 78,000 PEOPLE
Number of people directly supported per country*
Guatemala: 15,000 Pakistan: 5,000
Honduras: 4,000 Palestine: 13,000
Nicaragua: 1,000 Zimbabwe: 39,000
*All figures rounded to their closest thousand
Total Number of Actions
4000
3500
3000
2500
2000
1500
1000
500
0 Palestine Honduras Guatemala Zimbabwe
Baseline 2017 2018 2019
This graph charts the number of actions taken in defence of human rights. Actions range from legal support to psycho-social care. 20 | Strategic Goals GOAL 2: EQUITABLE ACCESS TO AND USE OF RESOURCES
Outcome 1: People living A lack of access to basic Other countries, including in poverty, particularly resources such as land, food Nicaragua and Malawi, saw and water traps millions of a slight worsening of food rural women, benefit from people in extreme poverty. security. These are likely the sustainable use and We work with communities linked to extreme weather management of natural to ensure they have access (Malawi) and political insecurity to land and water, as well as (Nicaragua). DR Congo saw a resources. the knowledge and equipment slight improvement for male- necessary to provide income headed housesholds, but a and food for their families. slight worsening for female- Outcome 2: People living headed households. Much of this work focuses on in poverty exercise their building community resilience to It should be noted that even right to access and control the impacts of climate change, in countries that have seen natural resources. which is changing rainfall improvements, food security patterns and leading to erratic continues to be ranked as This work supports the Sustainable weather. Stressed. Development Goals, including: Last year, our programmes A key aim of our work is to under this Goal area supported diversify the diets of families 370,000 people in 13 countries. we work with. This is to remove over-reliance on one The last year has been a crop. The diversity of diets challenging one for many among communities we communities we work with. work with was measured East and Southern Africa in seven countries in 2019. experienced prolonged drought, Families in four countries (DR which was compounded Congo, Guatemala, Nicaragua by unprecedented locust and Uganda) were showing plagues (Kenya, Ethiopia and increased diversity in their diets South Sudan) and Cyclone due to the interventions of Idai (Zimbabwe, Malawi). Our Trócaire and our partners. Three work supporting sustainable countries (Malawi, Rwanda and agriculture and community Zimbabwe) showed lower levels management of natural of diversity. This was largely resources helped communities attributed to the impact of El We work with prepare for these threats, Nino and Cyclone Idai. respond to them, and re-build communities to ensure after. Our programmes also focus they have access to on diversifying income sources We use an index to rank the so people are not overly reliant land and water, as well food security of communities on crop production. In 2019, as the knowledge and against four levels: 1) Secure, we measured income levels 2) Stressed, 3) Crisis, 4) equipment necessary in four countries (Malawi, DR Emergency. Last year saw Congo, Nicaragua, Zimbabwe). to provide income and improvements to the food Income had risen in all except food for their families. security levels in several Zimbabwe, where high levels of countries, including Uganda, inflation are causing hardship. Guatemala and Zimbabwe. Trócaire Annual Report 2019/20 | 21
Across those four countries we This includes legal actions to Lockdowns and economic crises have seen an average increase gain title to land, protection will combine to harm the poorest of 35 per cent of women from land grabbing, community members of society the most. engaging in income-generating consultations, and participation activities. Greater economic in international platforms to Assisting communities to independence is closely related raise profile. navigate and recover from the to women’s ability to have impacts of this crisis will be a influence over decisions at In Guatemala, partner key focus of our work in 2020/21. organisations succeeded in household and community level, We also anticipate that the influencing six national policies to the likelihood of their children Covid-19 crisis will impact on and laws relating to rural remaining in school for longer, people’s access to resources. development, land, biodiversity, and to their ability to protect As governments attempt to conservation and gender. In themselves and their families rebuild, it is likely that land Myanmar, two communities in from the risk of disaster. grabs will intensify. We will Kachin state were successfully ensure appropriate supports Outcome 2 focuses on securing able to prevent a rock-mining (legal, psychosocial, advocacy) access to resources, particularly project in a community forest are available for partners and land. Often, particularly in they are collectively managing community members who are Central America, communities and conserving. are subjected to land grabs or engaged in the protection and defence of their resource rights. are denied access to land by Looking ahead powerful forces, including State The Covid-19 crisis is likely and private enterprise. to significantly worsen food John Ireri (26) inspects a passion fruit tree A total of 362 actions to obtain security levels in many countries at Kyenire Demo farm in Ishihara, eastern Kenya. Increasing crop diversity is a key goal access to natural resources took as families lose their livelihoods of Trócaire’s work with farming communities. place across seven countries. and access to their land. (Photo: Gary Moore) 22 | Strategic Goals CREATING A BUZZ IN NICARAGUA: ECO- FRIENDLY FARMING AND ‘STINGLESS’ BEES
The blue house of Everth and Selena sits in the middle of a blooming garden. It is surrounded by flowers of different colours, fruit trees, wild animals and the smell of clean air. Yet ten years ago this land was barren and poor.
Nicaragua is very vulnerable The produce they grow is to climate change and many profitable, the work is fully poor indigenous farmers are organic and their own resources struggling to grow enough crops allow them a healthy, varied and to make a decent standard of balanced diet. living. Everth and Selena’s farm not A decade ago, the land where only has coffee, fruit trees, Everth and Selina live had vegetables, fish tanks, pigs been mostly dedicated to and hens, but they also keep livestock farming and basic bees. They have 25 boxes of grain cultivation. As a result, the common bees and four boxes family cut down all the trees and of ‘stingless’ wild bees. These left the land barren and poor. bees, which are sacred to the indigenous Mayan people, Thanks to Trócaire´s local partner are the wild bees of Central organisation ADDAC, Everth America. They are particularly and Selena have adopted a new Everth and Selena Castro with their children, special because of their small Hellen (2) and Everth (6). (Photo: Giulia approach to their farm, which size and their even smaller Vuillermoz / Trócaire) has completely transformed stingers. their fortunes. These friendly bees don’t Everth and Selena began produce as much honey as to implement organic and common bees do, but the quality sustainable approaches. Agro- of the honey is much higher ecology is an alternative way because of its healing properties. of farming that makes the best The production of honey use of nature’s goods while not enriches the food security of the damaging these resources. family and earns a small profit through sales. In addition, the They received planting stock couple produce pollen – which is to transform the dry land into used as natural medicine for flu a diversified farm. They were and sore throat – and eye drops. also trained on soil and water conservation. Later, Everth “I always had the desire to joined experience exchange commit to something different, meetings where he had the to generate change and to be an chance to learn alternative ways example for my family and in my of working and taking care of community,” says Everth about the land. their remarkable farm. Trócaire Annual Report 2019/20 | 23
ENHANCING RESOURCE RIGHTS 13 COUNTRIES 370,000 PEOPLE
Number of people directly supported per country*
DR Congo: 12,000 Honduras: 3,000 Myanmar: 18,000
Ethiopia: 69,000 Kenya: 30,000 Nicaragua: 20,000
Guatemala: 11,000 Malawi: 79,000 Pakistan: 13,000
Rwanda: 17,000 Food security amongst male-headed households
3.5 Sierra Leone: 40,000 3
2.5 Uganda: 57,000 2 1.5 1.5 Zimbabwe: 8,000 1 0.5 *All figures rounded to their 0 closest thousand Uganda Nicaragua Guatemala DR Congo Zimbabwe Malawi Rwanda
Food security amongst female-headed2017 2018 2019households
4 This index ranks food 3.5 security on four levels: 3 1) Secure 2.5 2.5 2) Stressed 2 2 3) Crisis 1.5 1.5 4) Emergency 1 0.5 The lower the number, the greater the food security. Uganda Nicaragua0 Guatemala DR Congo Zimbabwe Malawi Rwanda Uganda Nicaragua Guatemala DR Congo Zimbabwe Malawi Rwanda
2017 2018 2019 24 | Strategic Goals GOAL 3: WOMEN’S EMPOWERMENT
Pascaline Kabagene (43), Ayesha Machosi (37), and Jose Ngongo (61), members of the protection committee in Butiaba, eastern DR Congo. The committee supports survivors of sexual and gender-based violence, providing psycho-social support as well as assistance seeking medical and legal support. Cases of sexual violence are incredibly common in region and many perpetrators are never brought to justice. (Photo : Garry Walsh / Trócaire)
Outcome 1: Women, In many countries around the Under Outcome 1, women particularly young women, world, women and girls are are supported to overcome denied a voice and are at risk inequality and have a say in are participating in formal of violence. Not only does this decisions that affect their and informal decision threaten their physical safety, it lives. We undertake a range making at all levels. also limits their ability to learn, of activities to support this, develop and lead their lives to including rights training, the fullest of their potential. literacy education and the Outcome 2: Women are The inequality and under- establishment of women’s free from violence and its representation of women and savings groups. associated risks. girls in the countries where We provide educational support Trócaire works continues to be and also facilitate women’s a challenge. Our programmes This work supports the Sustainable return to education, either by Development Goals, including: support women’s empowerment making them more financially at family, community and independent or by providing national level. childcare solutions that allow a Last year, this work was carried return to school. out across 14 countries and Our programmes have supported 185,000 people. increasingly supported the establishment of women-only Trócaire Annual Report 2019/20 | 25
The largest risk factor for women in 2020/21 is the impact of the Covid-19 crisis. The severe economic impact the crisis will have in already poor communities is likely to put women at risk.
spaces for sharing and learning. • In Malawi, 6,609 people condone this violence rose in These spaces allow for shared received support through Guatemala, Malawi and Sierra learning and support in a safe a national Freephone Leone at rates of between one and supportive environment. helpline operated by one and 15 per cent. of Trócaire’s partners In Myanmar, for example, to support survivors of Looking ahead women who have participated violence. in these spaces now have a A number of factors are likely to better understanding of their • In Zimbabwe, 261 contribute to a rise in violence right to participate in decision- survivors accessed against women in 2020/21. making within the household quality health services, Continued economic and and community. Many of these 323 survivors accessed political instability in countries women feel more prepared to counselling services and such as Zimbabwe are likely to challenge traditional norms and 211 survivors sought legal make women more vulnerable. practices and are getting ready services. The threat of annexation in the to stand for local governance West Bank is likely to lead to positions in the upcoming • In Palestine, 629 female increased tension and threats election. survivors of violence against women. received either legal or We track attitudes of both mental health support. The largest risk factor for women and men towards women in 2020/21 is the impact women becoming involved in In tandem with this practical of the Covid-19 crisis. The decision-making in community support, we also work to create severe economic impact the structures. In Sierra Leone, safer societies for women crisis will have in already poor for example, 83 per cent of and girls. This means tackling communities is likely to put women and 71 per cent of men attitudes and perceptions. women at risk. have positive attitudes towards Trócaire and our partners As well as continuing to provide women’s participation in these engage with both men and support services, we will also structures. These results are women to change attitudes continue to advocate for national significant increases from that condone violence against policy change. Advocating for 47 per cent and 39 per cent women. the rights of women is also a respectively in 2017. We track attitudes towards key component of our work. A Outcome 2 supports women violence against women through cabinet review of Sierra Leone’s and girls at risk of Sexual and community surveys. Overall, Gender Equality and Women Gender Based Violence (SGBV) in 2019 we saw increasing Empowerment Bill is expected as well as survivors of violence. rates of people – women and in 2020. Trócaire has been Key strategies to provide men – who believe it is wrong heavily involved in advocating this support include access to commit violence against for this Bill’s introduction. to services (medical, legal, women. Worryingly, however, psychosocial). Examples of this the number of people who work from last year include:
• In DR Congo, 705 women/ girls and 29 men/boys The inequality and under-representation of benefited from medical women and girls in the countries where Trócaire and psychological care for experiences of SGBV. works continues to be a challenge. 26 | Strategic Goals ZIMBABWE CHURCH LEADERS SPEAK OUT ON VIOLENCE AGAINST WOMEN
Almost seven in ten women in Zimbabwe experience some form of violence in their lifetime. To tackle this crisis, Trócaire joined together with Church leaders in Zimbabwe in a national SpeakOut! campaign.
This campaign was ground Faith plays an extremely Women and Girls symposiums breaking. For the first time it important role in the lives of also took place as part of the united the four main Churches people in Zimbabwe, with over campaign, where 469 women of Zimbabwe (the Evangelical 84 per cent of the population of and girls along with 67 men Fellowship of Zimbabwe, the Zimbabwe being a member of were able to access important Zimbabwe Catholic Bishops a Church. There is huge trust in information around sexual and Conference, the Zimbabwe faith leaders. The campaign used gender-based violence. Women Council of Churches and the voice and influence of these were provided with a safe space UDACIZA) to collectively come leaders to begin a conversation to highlight their experiences and together to speak about Sexual about SGBV in churches, faith challenges, as well as getting and Gender Based Violence spaces and the wider community information on support services. (SGBV). across Zimbabwe. The SpeakOut! campaign is part Launched in December 2019, of a wider SASA! Faith project the campaign resulted in which engages communities and significant media coverage in faith leaders to address violence newspapers and on television against women. SASA! Faith has and radio stations. It was also shown significant success to accompanied by a billboard date in addressing knowledge campaign. and attitudes in Zimbabwe.
Social media was used to bring At the beginning of the the campaign to people online, programme, only 26 per cent with video messages of church of men and 29 per cent of leaders reaching thousands women in target communities of people through Facebook believed it was wrong to commit and Twitter. Short videos also violence against women. As spread through the WhatsApp a result of activities like the platform, which is very popular in SpeakOut! campaign, this has Zimbabwe. now dramatically increased to 83 per cent of men and 66 per The campaign initiated important cent of women. The higher rate conversations in communities amongst men is replicated in around balancing power in the many countries and is reflective family and supporting non-violent of the unequal power dynamics, and positive relationships. with men holding more power to change decisions. The SpeakOut! campaign brought together over 2,000 The SASA! Faith programme people to events in four districts in Zimbabwe has also engaged in Zimbabwe. These events saw over 790 leaders to date to play Rev Kenneth Mtata, General Secretary of Zimbabwe Council of Churches speaking women publicly speaking out an active role in addressing to the Zimbabwe media during the national about the abuse they endured at violence against women in their campaign launch. Photo : Tsvangirayi Mukwazhi / Trócaire the hands of their partners. communities. Trócaire Annual Report 2019/20 | 27
SUPPORTING WOMEN 14 COUNTRIES 185,000 PEOPLE
Number of people directly supported per country*
DR Congo: 8,000 Malawi: 37,000 Rwanda: 7, 000
Ethiopia: 5,000 Myanmar: 9,000 Sierra Leone: 22,000
Guatemala: 5,000 Nicaragua: 2,000 Uganda: 27,000
Honduras: 9,000 Pakistan: 18,000 Zimbabwe: 21,000
Kenya: 15,000 Palestine: 1,000 *All figures rounded to their closest thousand
Percentage of women involved in decision-making in informal spaces at community-level
80
70
60
50
40
30
20
10
0 Rwanda Guatemala Myanmar Ethiopia
2017 2019 28 | Strategic Goals GOAL 4: PROTECTION OF HUMAN DIGNITY IN HUMANITARIAN CRISES
Outcome 1: Communities In 2019/20 we provided Our response is particularly affected by crises receive humanitarian assistance focused on strengthening to 1.8 million people in 27 protection of women and timely, accountable and countries. In terms of number girls in humanitarian settings, needs-based humanitarian of people reached, our largest preventing and responding assistance that protects humanitarian programmes were to sexual and gender-based in Ethiopia (520,000 people) violence in emergencies and their safety, dignity and and in the South Kordofan providing specialised care to fundamental human rights region of Sudan (383,000 women, girls and other at- people), followed by D.R. Congo risk groups in conflict areas. (365,000), Somalia (218,000) This is a core focus of our Outcome 2: Communities, and Myanmar (67,000). humanitarian response in DR Congo, Lebanon, Myanmar, and particularly women, are As well as responding in better resourced to prepare Somalia, South Sudan, Uganda countries where we have a and Ethiopia. for, withstand and recover long-term presence, our role from crises and disasters in the Caritas network allows Conflict and political instability us to support the delivery of continued to be the primary This work supports the Sustainable humanitarian relief elsewhere. drivers behind Trócaire’s Development Goals, including: Last year, examples of such humanitarian interventions in countries included Yemen, India 2019/20. and Mozambique. The impact of decades-long The humanitarian assistance we conflict on infrastructure and provide is targeted to support services continues to be felt in those most in need and is South Sudan. Our humanitarian delivered in a way that protects response there supported safety, dignity and human 12,000 people with emergency rights. We are committed to aid last year. humanitarian principles and to Core Humanitarian Standards. With the war in Syria entering The level of its tenth year, an upsurge in humanitarian need The level of humanitarian violence in Idlib province in the need globally rose yet again in north-west caused nearly one globally rose yet 2019, with the highest levels million people to be displaced. again in 2019, with of forcibly displaced people on Our humanitarian programmes record (71 million; UNHCR). An supported 4,600 people in Syria the highest levels of estimated 130 million people and 8,000 Syrian refugees in forcibly displaced experienced crisis level food Lebanon. insecurity (WFP). people on record (71 Responding to the catastrophic million; UNHCR). An As well as tracking the reach conflict in Yemen, which has of our programmes, we also been marked by widespread estimated 130 million track community satisfaction. violations of international people experienced Community surveys across humanitarian law, we supported eight countries showed an emergency food distribution and crisis level food average satisfaction rate of 89 safe water supplies for 21,000 insecurity (WFP). per cent with the quality of our people. response. Trócaire Annual Report 2019/20 | 29
Nasra Mohamed and her newborn baby receive a baby kit gift from Dr. Abdi at Trócaire’s health centre in Dollow, Somalia. Trócaire. Trócaire’s clinics provides medical care to 19,000 people each month in this conflict-affected region of Somalia. (Photo: Eyeris Communications / Trócaire)
As well as providing aid to Nicaragua and Guatemala with Looking ahead people displaced by long-running a cash/voucher response for Covid-19 is present in all conflicts, we also responded food, along with hygiene kits and countries where Trócaire to localised ethnic conflict in agricultural support. provides support. Responding countries such as Ethiopia. We to the drastic humanitarian worked with Irish Aid to provide Our humanitarian response impact of the virus is a core support to 33,000 people focuses mostly on providing focus for 2020/21. Trócaire’s displaced by ethnic conflict in the shelter, food, sanitation response varies from funding Oromia region of Ethiopia. This and protection. In Somalia public health messages to the support included providing water, and Sudan, however, our distribution of soap, water and hygiene and sanitation facilities, humanitarian programmes are hygiene products. We also as well as direct cash support. focused on providing primary health care. Much of this work support quarantine facilities and Last year also saw significant is focused on supporting people health centres. responses to natural disasters experiencing malnutrition. The immediate health and climatic shocks. The impact In Somalia, we provided this implications of Covid-19 in the of Cyclone Idai was felt across support to 20,000 malnourished developing world are likely to Mozambique, Malawi and people. In the South Kordofan be severe. Under-testing and Zimbabwe. Working through region of Sudan, 3,000 children under-reporting mean the virus our partners, Trócaire provided and pregnant women received is likely to be far more prevalent support to 39,000 people across supplementary feeding. in developing countries than the region. This support included official statistics indicate. As shelter, food and other vital Ebola continued to circulate well as the immediate danger equipment. in DR Congo in 2019/20. Our hygiene and water programmes, to health, restrictions on Severe drought affected combined with public health movement and the economic countries along the Central training and messaging, crisis will have a devastating American dry corridor as 2019 focused on keeping vulnerable impact on people’s food marked the fifth consecutive communities safe. Our Ebola security. The health risks are year of drought and the second programmes began in eastern likely to remain for quite some consecutive year of failed DR Congo in 2018. In June 2020 time, but these longer-term crops. Over 10,000 people the outbreak in that region was impacts will be felt long after were supported by Trócaire in declared over. the immediate crisis ends. 30 | Strategic Goals PREVENTING THE SPREAD OF EBOLA IN DRC
In the thick jungles of the Ituri region of the Democratic Republic of Congo, bees are buzzing around Alundo Matope as he tends to his beehives.
Alundo is from the indigenous Working with local partners Mbuti group that have Caritas Wamba and CVAP, we traditionally lived in the forest have worked with leaders like and have been historically very Alundo to build community marginalised. Eating forest outreach and education animals leaves them particularly activities, as well as tackling open to contracting the Ebola misinformation. Alundo has used disease, which like Covid-19 his influence to inform people initially spread from infected to wash their hands, not touch animals to humans. dead bodies, and to stop hunting wild animals in the forest. Education levels tend to be low in Mbuti communities, and Hand washing stations have they are often neglected by been provided for the local government services. As Ebola community to improve hygiene. has devastated this area of DR Children in the community sing Congo, Mbuti communities are and drum along to songs about
Mado Apula (14) from the Mbuti village often left behind in prevention Ebola and they know all the of Bahaha, washes her hands to prevent efforts. Sanitation can be poor in words off by heart. With the the spread of ebola. (Photo: Garry Walsh / Trócaire) these communities, which also help of Alundo’s leadership, the means Ebola can spread easily. fight against Ebola is working in their village. Tackling Ebola in the DR Congo has been extremely challenging, Alundo’s two boxes of beehives and the outbreak has persisted have also been provided through for over 18 months. The country the Trócaire project. As a result, is one of the poorest in the he no longer searches the forest world, affected by decades for wild honey. of conflict, with a very weak healthcare system. Over 2,200 Thankfully, due to the efforts of people have lost their lives to communities like Alundo’s, the the Ebola virus since the latest Ebola virus has now largely been outbreak began. Tragically, contained in DRC. The outbreak two-thirds of those who have in the east of the country, where contracted Ebola have died. Alundo lives and where Trócaire works, was declared over in Trócaire programmes have been June 2020.” helping to prevent the spread of the disease. We have provided hand-washing stations, water tanks, latrines, and water pumps to provide safe water to people. Trócaire Annual Report 2019/20 | 31
DELIVERING HUMANITARIAN SUPPORT 27 COUNTRIES 1,795,000 PEOPLE
Number of people directly supported per country*
Bangladesh: 1,000 India: 3,000 Mozambique: 2,000
DR Congo: 366,000 Indonesia: 7, 000 Nicaragua: 23,000
Ecuador: 1,000 Honduras: 27,000 Palestine 7, 000 4.5 4 Eritrea: 7, 000 Kenya: 3,000 Philippines: 1,000 3.5 3 Ethiopia: 520,000 Lebanon: 8,000 Rwanda: 8,000 2.5 2 Greece: 3,000 1.5Malawi: 65,000 Sierra Leone: 1,000 1 Guatemala: 21,000 0.5Myanmar:67,000 Somalia: 218,000 0 DR Congo Uganda Somalia Myanmar Lebanon Community satisfaction with South Sudan: 12,000 humanitarian support provided 2018 2019
4.5 Sudan: 384,000 4 3.5 Syria: 5,000 3 2.5 Uganda: 13,000 2
1.5 Ye men: 21,000 1 0.5 Zimbabwe: 11,000 0 DR Congo Uganda Somalia Myanmar Lebanon
This graph charts community satisfaction with humanitarian aid *All figures rounded to their 2018 2019 being provided, from 0 (very dissatisfied) to 4 (satisfied). closest thousand 32 | Strategic Goals GOAL 5: People and Leaders in Ireland Acting for a Just World
Outcome 1: The Irish public Trócaire’s dual mandate means and to take action in support of is informed, educated and that as well as providing support global justice. Much of this work to people in the developing is undertaken by volunteers, all takes action on the root world, we also focus on of whom receive comprehensive causes of global injustice. educating and engaging people training from Trócaire staff about in Ireland on global injustice. the organisation’s work, values Engaging with the public in and mission. Outcome 2: The Irish Ireland on issues of global We now have 140 active Catholic Church continues justice is core to our mission and mandate. volunteers north and south who to tackle the issues of deliver presentations, talks and global poverty and injustice. Last year we spoke with and events, enabling us to reach engaged approximately 230,000 more people around the country people face-to-face across the with our justice message. This work supports the Sustainable Development Goals, including: island of Ireland on issues of Volunteers were also active in global justice. This engagement supporting our campaign on took place through a range of Business and Human Rights by activities, from film screenings contacting politicians in their and local events, to visits to own constituencies. We have parishes and organising stands seen particular growth in our at major events such as Bloom, volunteer programme in the the Féiles in Derry and Belfast, West of Ireland, allowing us and the National Ploughing to participate in events such Championships. as the Galway Food and Craft
Síofra Manning and Mia Conlon from Holy Festival and Galway Christmas Child Killiney show their game, ‘The Real The purpose of this engagement market, as well as growing our Game of Life’, at the Trócaire Game Changers is to deepen people’s outreach in schools and parishes, competition, which asks schools around understanding of the issues Ireland to design games based on global including Gaeltacht parishes. justice themes. (Photo: Garry Walsh / Trócaire) facing communities overseas As a Church agency, working with parish groups and priests around the country is central to our work. Last year we reached 30 per cent more people through mass talks in parishes, increasing the number of people who heard directly about our Lenten campaign. In 2019 we also ran a climate action initiative during the Season of Creation. We organised workshops and mass talks, and engaged with Laudato Sí parish groups in their grassroots climate action work.
Our Development Education programme has influenced generations of Irish people and continues to be core to Trócaire Annual Report 2019/20 | 33 our mandate. We delivered The business & human rights ensuring we are to the fore of professional development campaign featured in our Lent efforts to keep global justice workshops to 1,381 educators, campaign, which saw popular central to Irish media debate. supporting them to bring global RTÉ broadcaster John Creedon Our digital media footprint justice issues to classrooms and travel to Guatemala. John met continues to grow, with over youth settings across Ireland. with human rights defender 1,250,000 engagements with our Our new Game Changers game Abelino Chub Caal, who was social media accounts last year. design competition received over at the time imprisoned on false 90 entries from primary, post- charges. A few months later he Looking ahead primary schools, as well as youth was freed and visited Ireland, Covid-19 began impacting on groups from across the island. where he was presented with our work in the first few weeks Game Changers allows young Trócaire’s Romero Award by of 2020/21. Trócaire took an people to explore issues such as John Creedon. early decision to cancel all human rights, climate justice and face-to-face outreach on public the SDGs through game-based John was one of a number of health grounds. This will see learning. Our new Youth Action high-profile personalities to work a significant reduction in the Panel was formed in 2019, with Trócaire in 2019. Comedian number of people reached by providing direction on the needs Deirdre O’Kane and former All- face-to-face outreach in 2020/21. of development education in the Ireland winner Oisin McConville However, it has allowed us to youth space. both travelled to Gaza with us, while 2FM and RTÉ broadcaster explore new ways to engage Our advocacy and campaigning Keith Walsh travelled to Malawi with people online. work with the public focuses to highlight the importance of In summer 2020 we will on a range of issues, from the the Sustainable Development undertake reviews of our need for climate action and Goals. Meanwhile, broadcaster outreach programmes to ensure the protection of human rights and author Colm O’Regan they are appropriately adapted to the impacts of war. In 2019 hosted our podcast, ‘The World we launched a new campaign Etc.’. for a blended approach of calling on the Irish and UK virtual and face-to-face public Governments to support a UN Media, both traditional and engagement. Summer 2020 Binding Treaty on Business and digital, continues to be centrally will also see us launch a new Human Rights. This campaign important to how we promote Trócaire website. This is being is rooted in the experiences messages of global justice to a done to improve user experience of communities we work with wide audience. In 2019 Trócaire and also to reduce cost by overseas, particularly indigenous maintained the highest media moving to an improved Content communities in Central America share of voice in the sector, Management System. who face regular violence, intimidation and land grabs from business owners.
Through advocacy and campaigning, we push for policy change in support of global justice. As a result of our campaigns, the issue of 230,000 372,000 42,000 Business & Human Rights people through unique website resources featured on several political party face-to-face visits downloaded general election manifestos, while the Irish Government has begun to engage with the UN Treaty process. Our continued support of the Occupied Territories Bill has kept this issue to the fore of Irish political m debate. 3,229 1.25 160 140 media reports social media parishes volunteers engagements spoken at 34 | Strategic Goals A BIG THANK YOU FROM THE TRÓCAIRE TEAM! People all over Ireland donate their time and money to support Trócaire’s work. From organising cake sales to signing petitions, people all over the island do what they can to support our call for a just world. This support is what makes Trócaire possible.
1 2
3 4
5
1. Comedian and actress Deirdre O’Kane visiting Gaza with Trócaire. Deirdre has raised tens of thousands of euro for Trócaire projects in Gaza through the annual St. Patrick’s Day comedy event in the Three Arena, which she organises. (Photo: Mark Stedman) 2. Emmet Devlin stands beside a photo of himself at Trócaire’s ‘Faces of Resistance’ exhibition in Dublin’s Powerscourt Centre. Emmet is a Trócaire volunteer involved within our campaign for an international treaty on business & human rights. Previously, Emmet was involved in campaigns for better wages and conditions for Pacific Island workers in Auckland and for workers on tea estates in Sri Lanka, India and Indonesia. (Photo: Garry Walsh / Trócaire) Trócaire Annual Report 2019/20 | 35
6 7
8 9
10 3. Ciara Mehari (8) from Co. Kildare, Aoibhínn gives a Gaelic football training session to Casey (9) from Co. Kildare and Danni young Palestinian refugees in the Aida Dwan (10) from Co. Wicklow launch the refugee camp in Bethlehem. (Photo: Garry 2019 Trócaire Lenten Appeal by standing Walsh / Trócaire) alongside the pictures of the girls who 7. The Wrafter Family Band and George featured on the Trócaire box. Patricia (8) Murphy sing Christmas songs at the GPO from Uganda, Maria (9) from Guatemala to support One4All’s Trócaire Christmas and Maya (10) from Syria have each lost their homes – from violent eviction by big gift card. (Photo: Garry Walsh/Trócaire) corporations, lack of land rights for women 8. Allannah Ní Lonnargáin (left) and Anna Ní and war. (Photo: Mark Stedman) Athairne, both from Limerick, were two 4. President of Ireland Michael D. Higgins of the winners at the 2019 Trócaire/Poetry attending the memorial service for Sally Ireland competition. (Photo: Garry Walsh O’Neill, who worked for Trócaire for over / Trócaire) three decades before her untimely death 9. Micheál Martin, then leader of the in Guatemala in March 2019. President opposition and now Taoiseach of Ireland, Higgins led tributes to Sally, who was a visits the Trócaire Bloom garden, which close personal friend. (Photo: Garry Walsh highlighted the damage being done to / Trócaire) the land of indigenous people in Central 5. 2FM’s Keith Walsh lends a hand on the America by large corporations. (Photo: farm with Patricia (36) in Zomba, Malawi. Garry Walsh / Trócaire) Patricia is one of many farmers in the 10. Sr. Bridget Tighe in Jerusalem with area to have been supported by Trócaire Christmas cards sent to her by Trócaire to improve crop production. (Photo: Alan supporters in Ireland. Originally from Whelan / Trócaire) Sligo, Sr. Bridget has supported vulnerable 6. Armagh’s All-Ireland winner and communities in the Middle East for over professional counsellor Oisín McConville 25 years (Photo: Garry Walsh / Trócaire) 36 | Strategic Goals GOAL 6: INNOVATION, LEARNING AND IMPROVEMENT
Outcome 1: An environment Research, innovation and research report documenting of innovation and research is learning are core to how Trócaire the experiences of women goes about its work. We believe candidates in the 2018 national cultivated within Trócaire’s in analysing the problem and elections in Sierra Leone. programmes. potential solutions to ensure we The report documents the are having the highest levels of challenges facing women impact. and provides a number of key recommendations to help NGOs Outcome 2: An integrated In March 2019, Zimbabwe and and the political system to Malawi were badly impacted country approach built on better support and encourage by Cyclone Idai. Trócaire a foundation of rights and women into politics. This responded to the cyclone by research was not only widely empowerment is adopted distributing emergency relief to disseminated in country, it was communities affected. After the across Trócaire programme also presented at the Political passing of the initial crisis, we countries. Science Association of Ireland developed two research papers, 2019 conference and has been one for each country, looking at used as core reading material how to build resilience to these for undergraduate Gender and Outcome 3: Trócaire disasters. engages in evidence- Development Studies students in NUI Maynooth. based decision-making and The papers highlighted the importance of agro-ecological Our women’s empowerment continuous learning and practices for preparing work focuses on changing communities for climate improvement. social norms at family and shocks. These papers are community levels to address examples of how Trócaire gender inequality and create reflects on situations to gather an environment for women to learnings to inform future participate in decision-making. actions. Last year, we also To support this work we have launched a research project developed a novel set of ten jointly with the International social norm principles and a set Institute for Environment and of resources called Masidama, Development (IIED) to support which means ‘thinking our programming to address differently’ in Limba, one of the specific constraints and the indigenous languages of opportunities for women-headed northern Sierra Leone. households. We also encourage a culture of We undertook several other innovation in our programmes. research projects in our One such innovation in 2019/20 countries of operation. In was our use of agro-ecology Nicaragua, for example, we have to support South Sudanese worked with partners to develop refugees in the Palabek camp in projects analysing the strategies northern Uganda. Working with women use to obtain access to our partner, Africa Women Rising land. (AWR), we have developed In March 2019 we launched perma-gardens as part of ‘On the Campaign Trail’, a our humanitarian response. Trócaire Annual Report 2019/20 | 37
Perma-gardens combine resources and moving all our Agusti (33) tends to his perma-garden in the Palabek camp for South Sudanese refugees components of permaculture materials online for people to in Uganda. Trócaire’s partner African Women and bio-intensive agriculture to download. Rising won the 2019 Permaculture Magazine prize for “creative long-term solutions to help maximize production on a small solve the food security problems”. (Photo: amount of land. It is designed to Looking forward Sarah Fretwell) work in both the rainy and dry Summer 2020 will see us seasons. AWR won the 2019 develop a new strategic plan. Permaculture Magazine prize for As part of this process, we are “creative long-term solutions undertaking research into all the to help solve the food security factors – internal and external problems” in the Palabek – that impact and influence our settlement. Perma-gardens work. This research is critical Innovations can also be seen in for the development of a new combine components of our work in Ireland. 2019 saw plan to guide Trócaire over the permaculture and bio- the launch of our new podcast, coming years. Our new plan will ‘The World Etc.’, bringing voices guide Trócaire through a rapidly intensive agriculture to from our programmes to Irish changing world. maximise production audiences in a new way. We are on a small amount of also using digital technology to innovate in our outreach, moving land. away from printing physical 38 | Strategic Goals GOAL 7: EFFECTIVE PARTNERSHIPS
Outcome 1: Trócaire Partnership is fundamental to We use the Partner Capacity has diverse, relevant our values, beliefs and ways or Assessment & Support working. We strongly believe Framework (PCAS) to guide our and institutionally strong that our role as a northern NGO approach to partner capacity portfolios of partners that is to support local organisations strengthening. This tool allows can deliver innovative and in the developing world and us to analyse the capacity, help them flourish. We do not strength and sustainability of a impactful programmes in an impose solutions or deploy large partner organisation, showing accountable manner. teams of Irish staff or volunteers us on which area they require to implement programmes. most support. Rather, we identify local In Myanmar we used PCAS to Outcome 2: Trócaire is organisations already working to improve their communities and strengthen two partners, the working in collaboration do what we can to strengthen Kachin Conservation Working with networks and and support their work. Group (KCWG) and the Htoi Gender and Development preferred strategic Our work with our partners Foundation. As a result of this partners in our countries goes far behind a funding work, KCWG developed a five- of operation, in Ireland and relationship. We partner with year strategic plan, a theory of globally, in order to achieve local organisations to provide change and an organisational technical support, strengthen risk register. Htoi, meanwhile, greater programme impact, performance and maximise were supported to strengthen more stable funding and impact. their monitoring and evaluation. greater policy influence. As a result of this extra support, We work with over 400 Htoi has reported feeling more partners of varying type, size, confident to present projects capacity and experience. They to new donors due to a clear include community-based articulation of the change they organisations, local and national desire through the use of a logic NGOs, missionaries, civil model and results framework. society networks, cooperatives and social movements. A We see the nature of list of Trócaire’s 50 largest partnership evolving over partnerships by grant size is the coming years. Trócaire included on page 116. is committed to localisation, which is the process of shifting Approximately one-third of power towards greater local our partners are Catholic leadership of humanitarian Church organisations. The and development processes. remaining partners are a A key part of this is building diverse mix of faith-based the capacity of our partners to and secular organisations. enable them to access funding A significant number of streams independently of Trócaire’s partnerships are Trócaire. fostered through the Caritas Internationalis Confederation, of which we are a member. Trócaire Annual Report 2019/20 | 39
For example, we have worked with Karuna Mission Social Solidarity (KMSS) in northern Myanmar since 2012. Last year, our focus has been on enabling KMSS to take up management of a large multi-year grant as a primary recipient, under the Humanitarian Assistance and Resilience Programme (HARP). This ambitious and important step has seen a fundamental shift in the partnership between KMSS and Trócaire.
Similarly, in Sierra Leone we have supported a number of local partners to become direct recipients of EU funding, with Trócaire taking on a technical support role. This is an evolution of the partnership approach where partners are supported to access and manage funding streams as opposed to Trócaire being the lead grant recipient.
Looking forward We believe the role of international NGOs is changing. As well as building the capacity of our partners, we are committed to assisting them to access funds independently of us. This commitment to localisation will be central to our work in 2020/21 and beyond.
We have also been engaging extensively with partners on the formulation of our new strategic Guatemalan activist Abelino Chub Caal being awarded Trócaire’s 2019 Romero Award in Cork. The Romero award, named in honor of the late Oscar Romero, is given in recognition of outstanding plan. The plan, which will be human rights work by a Trócaire partner. Abelino was wrongfully imprisoned for over two years released in early 2021, will have due to his efforts to defend the land rights of indigenous Guatemalan communities before being cleared of all charges. partnership at its heart. (Photo: Gerard McCarthy) 40 | Strategic Goals PARTNERSHIP IN ACTION
116 partners responded anonymously to a Trócaire survey requesting feedback on our approach to partnership.
Our relationship with Trócaire has made us To what extent (1 meaning never more prepared to manage the changes in and 10 meaning always) does foreign aid or other external shocks that are Trócaire act on the feedback you beyond our control and others provide?
71% agree 96% scored 6 or higher 17% neither agree nor disagree 11% disagree
We also sought their opinions on an anonymous basis...
On our partnership: On the importance of “Trócaire respects our opinions and supports us in localisation… applications for funding” “Aid in the hands of local organisations leads “Trócaire requests us to present action plans and to efficient and effective use of resources budgets. They do not force any activity but accept the because of lower operational costs. The local local reality and assists the effort. Trócaire treat its NGOs also know more about the local needs of partners as equal. We do not feel like we are a junior the people.” partner.” “Localisation can only have positive effect. It “Trócaire has built our organisational capacity through will create ownership feeling and will empower continuous capacity building. We have managed to communities and Civil Society development establish better policies like the financial, procurement actors.” and safe-guarding guidelines.” “The overhead costs of local organizations are “All Trócaire decisions are made after assessments are lower than international ones. Therefore the made on the ground. So partner organisations have possible impacts of local NGOs will be greater ample opportunity to give feedback. They are also even with little funds.” urged to do so regularly.” “This [localisation] positively helps the “We consider Trocaire as strategic partners because communities to be sustainable and to be of their strong focus on institutional capacity fully dependent on themselves rather than development and flexibility. They strongly believe in outsiders.” equal footing in partnership.” “It will promote community ownership of “Trocaire shows us a lot of respect and does not programmes and this will foster sustainability. interfere with our work by overburdening us with It will also promote capacity strengthening reports, meetings, check-ins, etc. They let us do our among the local organisation.” work with an appropriate amount of contact and “It will enable the local partners to address reporting relative to the size of the most recent grant directly the needs of the community without we received.” outside influence.” Stella Muithe in Chikwawa, Southern Malawi. Her village is one of five that are now accessing safe water thanks to a solar powered pump providing water to 900 households. This project is funded by the Scottish Government in collaboration with Trócaire, SCIAF and CADECOM Mangochi. (Photo: Alan Whelan/Trócaire) 42 | Strategic Goals GOAL 8: INCREASED SCALE AND INCOME
Outcome 1: Trócaire has In 2019/20 we raised thanking and reporting back on increased and diversified approximately €64m from the powerful human impact of the Irish public and our the generosity of people across institutional funding institutional funding partners. the island, as well as showing income. We experienced a slight dip them how they can help. in funding from both sources, which is reflective of a very While our major campaigns all Outcome 2: Public income competitive and difficult performed very well, we did fundraising environment. record an overall decrease in our is increased with an public income. This is accounted emphasis on attracting new We continue to record huge for by a dip in legacies – from donors and dependable levels of support from the a record high in 2018/19 - income sources and on Irish public. We are extremely and relatively low levels of grateful for the support we humanitarian donations. There deepening engagement and receive all over Ireland, north was one humanitarian appeal in growing income amongst and south. Public donations are 2019/20 following the impact of existing supporters. the life-blood of Trócaire and Cyclone Idai in southern Africa. without this support we would not be able to do what we do. From an institutional perspective, Overall public income was at we received €40.7m from 99% of income achieved in institutional funding partners in 2018/19. 2019/20 (2018/19: €45.8m). This breaks down as: Both of our major public fundraising campaigns • €29.6m from governmental performed very well. Our organisations (2018/19: 2019 Lenten Appeal saw €32m) €8.3m donated by the public. • €5.8m from other funders This represented a 10 per (2018/19: €7.6m) We are extremely cent increase on the 2018 campaign. The Christmas • €5.3m from the Caritas grateful for the support Appeal, meanwhile, saw €2.3m network (2018/19: €6.2m) we receive all over donated. This was very close to the 2018 Appeal, which saw the Of the €29.6m secured from Ireland, north and highest ever level of Christmas governmental organisations, south. Public donations donations. €21.7m of this was from Irish Aid (2018/19: €21.5m). The are the life-blood of The support of monthly donors majority of this (approximately Trócaire and without held steady on €4.4m (2018/19: €17m) was allocated for long- €4.4m). While last year saw over term development work under this support we would €0.91m donated to Trócaire in the Irish Aid Programme Funding not be able to do what response to direct mail letters, scheme, with the remainder which represents a 22 per cent (approximately €5m) allocated we do. increase on the previous year of towards emergency response. €0.88m. This breakdown mirrored the allocations between Across our donor development and humanitarian communications we further in 2018/19. increased our emphasis on Trócaire Annual Report 2019/20 | 43
The Irish Government continues Looking forward We are anticipating a drop in to be Trócaire’s single largest income in 2020/21 as a result. The Covid-19 crisis hit during donor, contributing 34 per cent However, a more dramatic fall the early weeks of the 2020/21 of total organisational income. in income has been mitigated financial year. The current Irish Aid’s continued support is already by early actions and year is expected to be a very vital and we are grateful for the agility. We will continue to strive challenging one from an income strong relationship that exists. to make the most of all funding perspective. The likelihood of opportunities in 2020/21. There is further analysis of our an economic recession will 2019/20 income in the Financial limit public donations, while the Digna, who featured on the Trócaire box in Review section on page 72. prospect of cuts to government 2011, pictured with her mother and father, aid budgets will also affect Carmen and Carlos. Today, she is 13-years-old and doing well at school. Her dream is to own overseas development her own hair salon. (Photo: Giulia Vuillermoz / organisations. Trócaire)
2019/20 2018/19 2017/18 2016/17 2015/16
General public donations €21.9m €22.0m €23.6m €21.3m €22.1m
Lent €8.3m €7.6m €8.7m €7.4m €8.3m
Christmas €2.3m €2.3m €2.1m €2.1m €1.9m
Committed Giving €4.4m €4.4m €4.6m €4.8m €5.3m
Legacies €3.8m €4.6m €3.3m €2.8m €2.8m
Other public fundraising €3.1m €4.6m €4.9m €4.2m €3.8m
Humanitarian appeals €1.0m €1.2m €5.5m €0.9m €2.8m
Institutional funding €40.7m €45.8m €45.8m €40.1m €40.5m 44 | Strategic Goals GOAL 9: AN ACCOUNTABLE AND EFFECTIVE ORGANISATION
Outcome 1: Trócaire can be Accountability is one of Safeguarding is an area we held to account by our key Trócaire’s core values, and it is have invested heavily in over one we try to embed throughout recent years. The people we stakeholders for delivery of our work and our relationships, work with need to know that our commitments to them. with donors, supporters, they are safe and protected. As communities and each other. an organisation, we must be accountable to them. While it has always been a Outcome 2: Trócaire is cornerstone of our work, a In 2019/20 we continued to train an efficient and effective renewed focus on accountability and support staff and partners organisation which gets in the current strategic plan on safeguarding policies and has seen us make strides processes. Encouraging a the best value from our towards further improving culture of accountability, within financial resources. our processes. While the Trócaire and amongst our trend is being increasingly partners, inevitably leads to demanded by funders, Trócaire’s increased demands for further Outcome 3: Trócaire commitment to accountability support. We have now put in and transparency is being driven place a surge mechanism to continues to attract and by our own internal culture and assist with investigations or to retain skilled, motivated a belief in being accountable to allow Country Directors to focus and empowered staff. communities, partners, funders on investigations. and each other. We also commissioned This annual report is in itself an external review of our a key accountability and safeguarding work to determine transparency mechanism. its effectiveness. This review, We ensure our annual report conducted by GCPS Consulting, includes all key financial endorsed the “clear and information relating to how we robust” framework of policies generate and spend funding, and procedures and the high as well as reporting on issues levels of compliance with best such as fraud and safeguarding. international practice. There While it has always In 2019 we won two major is further commentary on been a cornerstone of awards – the Carmichael Centre safeguarding on page 66. Good Governance Award and our work, a renewed the Chartered Accountants of Internally, we have also focus on accountability Ireland Award – for the quality of improved accountability. our annual report. With continued support from in the current Strategic Transparency International (TI) Plan has seen us There are further details on Ireland, a new Whistleblowing the range of regulatory and (Protected Disclosures) Policy make strides towards voluntary codes that Trócaire was approved in August further improving our adheres to and the other 2019. Through TI’s Integrity processes that it engages with at Work programme, Trócaire processes to strengthen accountability on received training and support in page 68. strengthening an organisational Speaking Up culture. Trócaire Annual Report 2019/20 | 45
We are also committed to processes through use of a Looking ahead reducing the impact of our multi-annual financial framework. Our intention is to gain external activities on the environment We have also adopted the Value certification of our accountability through our GLAS initiative. In for Money (VfM) framework. In culture through the Core 2019 we recalculated our carbon line with the UK Department Humanitarian Standards (CHS), footprint using updated methods for International Development’s which is the internationally in partnership with a carbon (DFID) definition, we understand recognised accountability specialist. We are now more VfM as the maximisation of standard for the development confident in our carbon footprint each euro spent to improve and humanitarian sector. We figures and will use our 2019 programme participants’ lives. made good progress in 2019 data and carbon footprint as our See page 76 for further details. against 75 actions required for new baseline. Attracting, retaining and certification. We will continue to Our total emissions in 2019 motivating staff is a key push for this goal in 2020/21. were 1,796 tonnes. Our data outcome under this Goal area. Reducing our carbon emissions collection has been disrupted For the last number of years will be a key focus for 2020/21 by the Covid crisis, but for 2019, we have been taking part in the and beyond. The Covid crisis we expect flights to make up 76 Great Place to Work process to per cent of our footprint, with ensure we are doing just that. has led to a sharp reduction energy making up 10 per cent, In 2019 Trócaire was officially in our aviation emissions, road travel nine per cent, and certified as a Great Place to and we are developing our paper five per cent. Work following an analysis of carbon management strategy the staff survey results. accordingly. We are working Regarding effective use towards an ambitious target of of resources, we have 50 per cent reduction on our strengthened our budgetary 2019 footprint by 2030.
Trócaire’s team in Myanmar. We seek to motivate and empower staff across the world. In 2019 Trócaire was recognised as one of the top 25 medium-sixed Great Places to Work in Ireland. 46 | Structure, Governance and Management Report of the Trustees Structure, Governance and Management
REGISTRATION AND offices with the appropriate and best practice CONSTITUTION national authorities in the governance standards. countries where it operates. Trócaire is the overseas These country offices are A new Company Limited by development agency of the branches of Trócaire. Guarantee called Trócaire was Catholic Church in Ireland. It is a established on 21 November registered charity in the Republic Throughout this Annual Report 2019 following the consent of of Ireland (charity number CHY financial information, activity the Episcopal Conference. Its 5883), granted charitable status reports and narrative information company number is 661147. It under Sections 207 and 208 of refers to the activity of the is registered with the Charities the Taxes Consolidation Act 1997 whole group except where Regulatory Authority in Ireland and with a Charities Regulatory specifically stated otherwise. and its charity number is Authority Number 20009601. The Trócaire (Northern Ireland) 20204842. It has a charity tax Annual Report is published exemption and its tax exemption Trócaire was established to separately and is available to number (CHY number) is express the concern of the Irish view on the Trócaire website. CHY22508. Catholic Church for injustice in the developing world. Trócaire is The seven members of the governed by a Trust Deed dated POST YEAR END new company are the same 18 December 1973, as amended RESTRUCTURE individuals as the seven trustees on 14 June 2001, 19 October During the year, the board and of Trócaire, the Trust. The thirteen 2010 and 5 December 2019. trustees of Trócaire agreed to a directors of the new company legal restructure which would are the same individuals as GROUP STRUCTURE change Trócaire from being a the thirteen directors (board Trust to be a Company Limited members) of Trócaire, the Trócaire (Northern Ireland) is by Guarantee. The key reasons Trust. A transfer agreement a subsidiary of Trócaire. It is a for the incorporation of Trócaire was made between the Trust registered charity in Northern as a Company Limited by and the company to transfer all Ireland (Charity Commission Guarantee are as follows: operations, assets, contracts, Number NIC 103321) and it is a liabilities, branches and its Company Limited by Guarantee • To make it easier to access subsidiary [Trócaire (Northern registered in Northern Ireland funding (certain funding Ireland)] from the Trust to the (Company Number NI021482). streams are available to company on 1st March 2020, The directors and members companies but not to and this took place after the of Trócaire (Northern Ireland) Trusts); year end for this Annual Report. agreed amendments to that It is expected that Trócaire “the company’s Memorandum & • To make it easier to receive Trust” will wind-up in 2021. Articles of Association during property as a donation and the year, but these were not to manage such gifts; Throughout this report the completed until after the year • To make it easier to register term “Trócaire” is used for end (3rd April 2020), as they country offices (a company the operations and activities were pending approval from is a more recognised of both organisations. In the the Charity Commission for th structure globally); period up to 29 February 2020, Northern Ireland. the operations and activities • To make it easier to comply took place in the Trust and its Trócaire registers its country with current charity law subsidiary. From 1st March Trócaire Annual Report 2019/20 | 47
2020 onwards the operations and activities took place in the Company Limited by Guarantee and its subsidiary. In most instances in this report it isn’t necessary to distinguish between the two organisations as the management of the operations and activities continued without interruption after the transfer. In certain instances, such as in the disclosure notes of the financial statements, it is necessary to specifically refer to Trócaire “the Trust” and Trócaire “the company limited by guarantee”
TRUSTEES AND BOARD Trustees are appointed by the Episcopal Conference. There are seven trustees, each of whom must be an Archbishop or Bishop of the Irish Hierarchy. The trustees appoint a board Ma Soe from Kyone Sein village receives a water bucket from Trócaire’s partner ALARM consisting of up to 14 members following flooding. (Photo: Lawi Nyan) to advise and assist them in The trustees meet annually to of the work of Trócaire both in the governance of Trócaire. receive the annual report and Ireland and overseas. The members of the board are audited financial statements subject to retirement by rotation, The Trust Deed stipulates that of Trócaire. Other meetings having held office for three years there should be one ex-officio take place as required. The consecutively. No member of member of the board, the last AGM was held on 26 June the board other than a trustee or Executive Administrator of the 2019. The trustees also met an ex-officio member shall hold Commissions and Agencies of on 18 November 2019. At the office for longer than six years. the Irish Episcopal Conference. November meeting, the trustees It also provides for two bishops The trustees during the financial approved the establishment to be board members, including year 2019/2020 were as follows; of a new Company Limited by the Chair of the Board. The Guarantee called Trócaire. They Director of Corporate Services Archbishop Eamon Martin approved the transfer of assets serves as Secretary to the (Chair) and operations of Trócaire to this Board. new company as referred to in Archbishop Diarmuid Martin the Post Year End Restructure The following are the profiles for Archbishop Kieran O’Reilly note above. The Trust Deed the board during the financial provides that the CEO is the year 2019/2020: Archbishop Michael Neary Secretary to the Trustees. She Bishop William Crean has Bishop John Kirby is assisted in this role by the Director of Corporate Services. served as Chairman of Trócaire (Retired October 2019) since March 2013. He was Bishop William Crean The board schedules six formal ordained Bishop of Cloyne in meetings a year. One of these January 2013. He was a founder Bishop Noel Treanor meetings takes place over director of Radio Kerry. He served a weekend to allow time for for two years as Chairperson of Bishop Dermot Farrell the members of the board to the Adult Religious Education (Appointed October 2019) develop a deeper understanding National Association (ARENA). 48 | Structure, Governance and Management
He served as curate of Glenbeigh consumer finance. In his most Ireland. He was previously non- and Killorglin and he has served recent role with GE Capital Chris executive Chairman of Eircom as Parish Priest in Castlegregory/ led the internal audit function, Phonewatch and Director of Cloghane and in Cahersiveen. providing independent assurance the Eircom Employee Share He is committed to dialogue to the US Audit Committee and Ownership Trust. Gerry is a Non- between faith and modern Management Board. The function Executive Director of Carmichael, culture. comprised 150 auditors across 12 a leading specialist training and countries covering consumer and support body for non-profits in Archbishop Kieran O’Reilly commercial activities with assets Ireland. Gerry chairs Trócaire’s SMA is the Archbishop of of approx. $90bn. Chris is a Funding and Public Engagement Cashel & Emily. After ordination member of the Audit Committee Committee. as a priest he served for two Institute and the Institute of years in pastoral ministry in Chartered Accountants in Ireland. Sandra Lawler is the founder the Archdiocese of Monrovia, director of the Alternatives Liberia. In 1980 he was sent to Conall O’Caoimh is a founder Group, a business that was set the Pontifical Biblical Institute, of Value Added in Africa (VAA), up in 2000 and provides flexible Rome, where he obtained his an Irish registered charity. marketing, digital and leadership Licentiate in Sacred Scripture. He VAA’s mission is to build a talent solutions. Sandra and her was subsequently Professor of channel into European markets co-founder were finalists in the Biblical Studies at the seminary for African-made value-added Ernst & Young Entrepreneur of in Ibadan, Nigeria. From 1990 to goods. Previously Conall worked the Year, were previous recipients 1995 he was a member of the as a consultant to many Irish of the Image/Sunday Times Provincial Council of the Irish NGOs on projects relating Female Entrepreneur of the Year Province of his congregation. In to strategic planning, project and won the Chambers Ireland May 1995 he was elected Vicar evaluation, policy, training, Best SME CSR Award for their General and in 2001, Superior consortium building and funding. CSR initiative, Marketing for General of the Society of African He was Chair of the Debt and Change. Sandra is a member Missions, serving two terms. Development Coalition at the of the Institute of Directors, the He serves in a variety of roles, time of the Jubilee Campaign. Marketing Institute of Ireland. including Episcopal Secretary, He received ministerial She is also a mentor with Social Chairman of the Council of appointments to the National Enterprise Ireland. Missions and Member of the Trade Advisory Forum and on the Standing Committee. National Consultative Committee Rosemary McCreery had a long career in international Harry Casey is an ex- on Racism and Interculturalism. development with UN agencies. officio member of the He has degrees in Economics With UNICEF, she worked in board representing the Irish and Politics and in Liberation Togo, Madagascar, Indonesia Episcopal Conference. He Theology; an MA in Development and Romania to develop studied Philosophy, English, Studies and a Higher Diploma in programmes to improve the Theology and Education at Philosophy and in Community health and well-being of women The Pontifical University of Leadership. and children and their protection. Ireland and NUI Maynooth and Gerry Culligan has been Rosemary served as Director did his postgraduate studies Commercial Director of Iarnród of the Cambodia Office of the in Rome. He worked for 18 Éireann/Irish Rail since 2012 UN High Commissioner for years as a secondary teacher with responsibility for revenue Human Rights from 1998-2000. in St. Patrick’s Classical School, growth, customer experiences In 2000 she returned to UNICEF Navan, Co. Meath and also and marketing and sales to head the office for Russia, served as diocesan adviser for operations. He is also responsible Ukraine and Belarus until 2003. post primary catechetics in the for Rosslare Europort and the Rosemary was appointed UN diocese of Meath. He is currently Rail & Road Freight divisions of Assistant Secretary General for Executive Administrator of the the company. Gerry has over 30 Human Resources Management Commissions and Agencies of years commercial, financial and in 2003. After retiring from the the Irish Episcopal Conference. management experience across UN in 2007, she continued to Chris Queenan is a retired a number of industries, holding work internationally in the field of senior executive with global senior Executive Director roles child rights and child protection. experience in banking and with Aviva, Eircom and Mars She served for six years on Trócaire Annual Report 2019/20 | 49 the board and as Chair of the and education with both Irish and Emma Murray is a Partner with International Service for Human international NGOs. Currently, PricewaterhouseCoopers LLP Rights, a Geneva-based NGO. Annette works for the National (PwC) and is audit partner for She has served since 2016 as a Council for Curriculum and a number of businesses and lay member of the Mental Health Assessment (NCCA) where charities in the United Kingdom Tribunals established under she has been responsible for and Ireland. She trained as the 2001 Mental Health Act. developing and supporting the a chartered accountant with Rosemary became a member curriculum in Leaving Certificate PwC in Northern Ireland from of the International Programme Politics and Society as well as 2000, became a member of Advisory Committee in 2014 junior cycle Religious Education, Chartered Accountants Ireland and now chairs that committee. Civic Social and Political in 2005 and a Fellow in 2015. During 2018 and 2019 she also Education (CSPE), Philosophy Emma has worked as part of the chaired on an interim basis and Wellbeing. She also serves in Assurance practice of PwC for the Organisation and Human an advisory role with Worldwise almost 18 years and in addition Resources Committee and the Global Schools and Irish Aid spent two years within Business Nominations Committee. In early Civil Society and Development Recovery Services dealing with 2020, Bishop Crean appointed Education Unit. businesses in financial distress. Rosemary as the Deputy Chair of Emma’s primary role is as a the board. David Donoghue was one of the ‘Responsible Individual’ who Irish Government’s negotiators provides assurance to companies Sister Carmel Flynn is a for the Good Friday Agreement. in the areas of external audit member of the Sacred Heart He has served as Irish with a focus on compliance with Congregation. She began her Ambassador in Russia, Germany regulatory standards, governance international work in Uganda and Austria. From 2001 to 2004 and internal control. Emma was teaching in a school run by the he was the Director General appointed vice chair of Chartered order, where she later served as of Ireland’s development co- Accountants Ireland – Ulster headmistress. She completed a operation programme (Irish Aid) Society in June 2020 and has Masters in the US and returned and oversaw in this capacity a been a main committee member to Uganda to become head of a programme growing significantly for five years. secondary school in Karamoja, in budget allocation and thematic the poorest part of the country and geographic range. He also Karen Dillon is Chief Risk and a place experiencing served as Political Director from Officer, AIB Merchant considerable violence and civil 2009 to 2013, a post which gave Services and is a Fellow conflict. She later spent a year him responsibility for Ireland’s Chartered Accountant. She is in Indonesia, including teaching overall foreign policy. From 2013 a risk professional, corporate in an Islamic university, before to 2017 David was the Permanent governance and regulatory returning to Ireland. Sr. Carmel Representative of Ireland to the specialist across financial chairs a committee in the Sacred United Nations in New York. At services within Ireland and the Heart Congregation which the request of the President of UK. Karen trained as a Chartered provides funding to development the General Assembly, he served Accountant with KPMG from projects around the world. as co-facilitator (with Kenya) for 2000, became a member of the She is also the congregation’s the UN negotiations which led to Chartered Accountants Ireland liaison with Misean Cara for the adoption of the 2030 Agenda in 2004 and a Fellow in 2014. programmes in Kenya and for Sustainable Development in Karen has held many senior Uganda. 2015. He also served as co- roles across assurance, risk and facilitator (with Jordan) for the remediation positions across Annette Honan taught as a post- negotiations which produced KPMG, AIB plc, RBS and Ulster primary teacher before becoming the New York Declaration on Bank for the past 19 years. Karen engaged in justice education full- large movements of refugees has been a Director and lecturer time, firstly as Education Officer and migrants, adopted at a for the Institute of Chartered with the Columban Justice and special summit in September Accountants for the past four Peace office, Dalgan Park, and 2016. David retired from the Irish years. Karen chairs the Audit later as Coordinator of Education Foreign Service in September and Risk Committee of Trócaire’s and Campaigns with Trócaire 2 0 1 7. board. (1995-2002). She has extensive experience working in advocacy 50 | Structure, Governance and Management
Matt Walsh is Executive Director of Human Resources for Allergan in Ireland. Prior to joining Allergan Matt was Director of Corporate Affairs with Trócaire. Matt has held senior HR positions in two high profile start-ups in biotechnology and hi-tech sectors. He was Associate Director of HR with Pfizer BioPharma (previously Wyeth BioTech) in Grange Castle in Clondalkin, HR Site Director for Xerox Europe in Dundalk and HR Manager for TEAM Aer Lingus and FLS Aerospace. He has also held various management roles in HR, organisational development and training and finance with Coca- Cola in Drogheda. Matt holds an MBA and an MSc in Human Resource Development and is a member of the Chartered Institute of Personnel and Development (CIPD). Matt chairs the Organisation and Human Resources Committee of Bertita Caceres, daughter of murdered human rights defender Berta Caceres, takes Trócaire’s Trócaire’s board. business and human rights campaign to Stormont. Photo: Justin Kernoghan)
The following table shows attendance at the board meetings during the year:
Name Appointed Latest possible Eligible for Board retirement Reappointment Attendance
Bishop William Crean March 2013 N/A N/A 6/6 Archbishop Kieran O’Reilly March 2019 N/A N/A 3/4 Harry Casey October 2004 N/A N/A 6/6 Rosemary McCreery June 2017 June 2023 June 2020 6/6 Christopher Queenan June 2013 June 2019 N/A 2/2 Conall O’Caoimh June 2015 June 2021 N/A 6/6 Gerry Culligan June 2016 June 2022 N/A 5/6 Sandra Lawler June 2016 June 2022 N/A 6/6 Sr Carmel Flynn June 2017 June 2023 June 2020 4/6 Annette Honan June 2018 June 2024 June 2021 5/6 David Donoghue June 2018 June 2024 June 2021 4/6 Emma Murray June 2018 June 2024 June 2021 5/6 Karen Dillon June 2019 June 2025 June 2023 4/4 Matt Walsh June 2019 June 2025 June 2023 4/4 Trócaire Annual Report 2019/20 | 51
There are five committees of the • An independent review on risk management. Their work board. Each committee meets of Trócaire’s safeguarding included the following: a number of times a year to arrangements and • Support and advice on provide specialised advice to management of cases; the board. Board committees annual financial planning, are made up of both board • Scoping and developing monitoring and review and members and external members a new HR Management on multi-annual financial with broad and deep experience Information System; forecasting and planning; in their specialised area who • Supporting the Great Places • Review and updating of volunteer their time to advise to Work Initiative in Trócaire. Trócaire’s policies and Trócaire. Each committee is In 2019 Trócaire was procedures on fraud, theft, chaired by a board member. recognised as one of the corruption and bribery; Committee members attend an top 25 medium sized Great induction programme and visit • Support on the Places to Work in Ireland; our programmes overseas on management of risks occasion. The committees are: • Support and advice on cost connected with Brexit containment measures and in particular the Euro/ (1) The Organisation and including voluntary Sterling currency risk; Human Resources Committee redundancy processes is responsible for giving advice to • Examining in detail implemented by Trócaire the board and management on Information Security and during the year. organisational structure, human Data Protection risks resources and the allocation (2) The Audit and Risk including actions and plans of resources to ensure the Committee assists the board by to mitigate these risks; objectives of the strategic plan independently reviewing financial • Overview of internal and are achieved within the approved statements and the effectiveness budget. external audits, with a focus of our internal controls. This on continuing to improve During the year, the Organisation Committee monitors the the quality of the Annual and Human Resources effectiveness of the external Report as well the Annual Committee had oversight and and internal audit functions and Report for Trócaire (Northern input into a number of key assists the board in determining Ireland). strategic and operational projects the nature and extent of the risks including: it is willing to take in achieving its strategic objectives. • An independent review of the Human Resources, During the last financial year, Learning & Development the Audit & Risk Committee Division; continued to have a major focus
(1) ORGANISATION & HUMAN RESOURCES COMMITTEE MEMBERS
Name Appointed Latest possible Eligible for Committee retirement Reappointment Attendance
Rosemary McCreery June 2018 June 2019 N/A 1/1 (Interim Chair)
Matt Walsh (Chair) October 2015 October 2021 N/A 4/4
Nicola McCracken May 2017 May 2023 May 2020 4/4
David Cagney March 2019 March 2025 March 2022 3/3
John Corbett March 2019 March 2025 March 2022 2/3
Lorraine Kenny March 2019 March 2025 March 2022 2/3 52 | Structure, Governance and Management
(2) AUDIT & RISK COMMITTEE MEMBERS
Name Appointed Latest possible Eligible for Committee retirement Reappointment Attendance
Karen Dillon (Chair) May 2017 May 2023 May 2020 5/5 Chris Queenan (Chair June 2013 June 2019 N/A 2/2 retired) Donal Flynn January 2015 January 2021 N/A 3/5 Fergal Power January 2015 January 2021 N/A 4/5 Yvonne Hill January 2015 January 2021 N/A 5/5 Denis Murphy May 2017 May 2023 May 2020 5/5 John Farrelly August 2019 August 2025 August 2022 3/3
(3) The International • Governance: During the year, the key Programmes Advisory The committee oversees focus areas for IPAC were Committee (IPAC) fulfils an the implementation of the Country Operating Model advisory, governance and Trócaire’s programme Review, strategic risks under supporting role: work in line with the its remit (including security organisational strategic plan and safeguarding in overseas • Advisory: The committee and reports on this to the programmes) and a focus on provides advice to the board. institutional funding strategies Director of the International and progress. Division and the Director of • Understanding of the field the Strategy, Programmes work of Trócaire and its Above: Flora Wanjeru, one of the beekeepers at the Kyenire Demo farm, a Trócaire-funded and Advocacy Division on impact on communities. project teaching agro-ecological farming policy and strategy. practices. (Photo: Gary Moore) Trócaire Annual Report 2019/20 | 53
(3) INTERNATIONAL PROGRAMMES ADVISORY COMMITTEE MEMBERS
Name Appointed Latest possible Eligible for Committee retirement Reappointment Attendance
Conall O’Caoimh (Chair May 2013 May 2019 N/A 2/2 retired) Rosemary McCreery December 2014 December 2020 N/A 4/4 (Chair) David Donoghue December 2018 December 2024 December 2021 3/4 Nata Duvvury October 2017 October 2023 October 2020 3/4 Sr Denise Boyle December 2018 December 2024 December 2021 4/4 Harry Goddard June 2019 June 2025 June 2022 4/4 Jane Anne McKenna December 2019 December 2025 December 2022 1/1
(4) The purpose of the Funding & Public Engagement Committee is to oversee the development, implementation and evaluation of the public fundraising and public engagement strategies. During 2019/2020 this committee oversaw the development of strategy for the Public Engagement and Fundraising and Marketing divisions. The committee provided expertise and insights in relation to return on investment and demonstration of impact across the Ireland-facing work.
RTÉ broadcaster John Creedon travelled with Trócaire to Guatemala as part of Lent 2019. He is pictured lighting a candle to remember indigenous people killed in the country’s genocide. (Photo: Ciarán Gallagher / Trócaire)
(4) FUNDING & PUBLIC ENGAGEMENT COMMITTEE MEMBERS
Name Appointed Latest possible Eligible for Committee retirement Reappointment Attendance
Gerry Culligan (Chair) June 2016 June 2022 N/A 3/4 Sandra Lawler June 2016 June 2022 N/A 4/4 Annette Honan October 2018 October 2024 October 2021 4/4 Bronagh Twomey May 2016 May 2022 N/A 3/4 Rachel Power May 2016 May 2019 N/A 2/2 Ronan Morris October 2016 October 2019 N/A 1/2 Salome Mbugua September 2019 September 2025 September 2022 1/2 Ruairi McKiernan April 2019 April 2025 April 2022 1/2 54 | Structure, Governance and Management
(5) NOMINATIONS COMMITTEE MEMBERS
Name Appointed Latest possible Eligible for Committee retirement Reappointment Attendance
Rosemary McCreery December 2019 June 2023 December 2022 2/2 (Chair)
Chris Queenan June 2013 June 2019 N/A 2/2
Harry Casey October 2004 N/A N/A 4/4
Matt Walsh May 2019 October 2021 N/A 3/3
Caoimhe de Barra October 2018 N/A N/A 4/4
(5) The Nominations BOARD OF DIRECTORS OF As noted on page 46 an updated Committee is responsible for TRÓCAIRE (NORTHERN constitution for Trócaire Northern ensuring that the board is of IRELAND) Ireland was prepared and sufficient size, composition approved during the year. After Trócaire Northern Ireland is a and diversity to discharge its approval of these changes by subsidiary of Trócaire. Before duties and responsibilities. the Charities Commission for June 2019 Trócaire (Northern The Nominations Committee Northern Ireland, the updated Ireland) had one external also provides oversight of the constitution was put in place volunteer director, Karen membership of other board by a resolution of the Company Gallagher, who chaired the Board committees and the board of Members on 3rd April 2020. of Directors. The remaining Trócaire (Northern Ireland), as directors were managers of the well as supporting the Chair and During the year the directors parent entity, Trócaire. These Deputy Chair in ensuring there of Trócaire (Northern Ireland) governance arrangements were are strong processes in place to provided oversight of the reformed during 2019. Four new support board effectiveness. operations of Trócaire Northern external volunteer directors were Ireland. There was a focus on During the year the Nominations recruited. In recruiting these induction for new directors. The Committee’s work included the candidates, a broad skillset directors oversaw improvements following tasks: was considered to support the to the financial statements governance of Trócaire Northern and Directors’ Report for the • Recruitment of two new Ireland. These new external company for 2018/2019. The board members; volunteer directors were joined directors reviewed strategic • Recruitment of an entirely by two members of the Trócaire risks to the organisation with a new Board of Directors for parent board who were also particular focus on Brexit-related Trócaire (Northern Ireland); appointed as directors of Trócaire risks. They reviewed Trócaire’s Northern Ireland. These two Ireland Strategy with a particular • Recruitment of members directors from the parent board focus on its applicability to and chairs across all board and the Chair of the Board of Northern Ireland. The directors committees as required; Directors of Trócaire Northern also reviewed the staffing Ireland were appointed as structure of Trócaire Northern • Assisting the development Company Members. The Head Ireland in light of both vacancies of a board diversity policy of Region for Trócaire Northern and voluntary redundancies. and setting targets under Ireland, Siobhan Hanley, serves this policy; as Company Secretary. • Assisting board training and induction. Trócaire Annual Report 2019/20 | 55
BOARD OF DIRECTORS TRÓCAIRE (NORTHERN IRELAND)
Name Appointed Latest possible Eligible for Board retirement Reappointment Attendance
Karen Gallagher (Chair) June 2016 June 2022 N/A 3/4 Sr Carmel Flynn June 2019 June 2025 June 2022 3/3 Emma Murray June 2019 June 2025 June 2022 2/3 Dr Satish Kumar June 2019 June 2025 June 2022 1/3 Martin O’Brien June 2019 June 2025 June 2022 3/3 Tiarnan O’Neill June 2019 June 2025 June 2022 2/3 Iris Pendergast June 2019 March 2020 N/A 1/3 Caoimhe de Barra October 2018 June 2019 N/A 0/1 Gus McNamara June 2010 June 2019 N/A 1/1 Eamonn Meehan February 2000 June 2019 N/A 0/1 Angela O’Neill March 2017 June 2019 N/A 1/1 De Guilio
BOARD AND COMMITTEE GENDER ALL-IRELAND PERSPECTIVE DIVERSITY In Irish society and globally, Trócaire is an all-Ireland During the year, the board women remain under- organisation. Although it is approved a Board & Committee represented in leadership roles. headquartered in the Republic Diversity Policy Statement. The As Trócaire’s programme work of Ireland, Northern Ireland is purpose of this policy statement includes a major focus on a major element of Trócaire’s is to ensure that diversity is gender equality and women’s support base. To ensure that considered when it comes to empowerment, it should seek Northern Irish society is the recruitment of new board strong representation of women reflected in the leadership of and committee members. It is at board and committee level. Trócaire, Trócaire should ensure also to ensure key objectives are that there are members of developed and key targets are The Nominations Committee its board and committees set, monitored, and reported on set a target range of between from Northern Ireland. The periodically. 40 per cent and 60 per cent Nominations Committee set female members of the board, that a minimum of one board Diversity in this instance is about committees and the Trócaire member should be from ensuring Trócaire has board and (Northern Ireland) board. Northern Ireland at all times. board committee members with different backgrounds, perspectives and experiences. Male Female This brings diversity of thought Trócaire Board (n) 7 6 which is vital at every level of the organisation. Trócaire Board (%) 54% 46%
The Nominations Committee is Trócaire (Northern Ireland) (n) 3 4 primarily responsible for setting targets for board and committee Trócaire (Northern Ireland) (%) 43% 57% diversity and ensuring that these are monitored. The Nominations Board Committees (n) 8 8 Committee has decided initially [excluding Board members] to focus on the three following areas of diversity: Board Committees (%) 50% 50% 56 | Structure, Governance and Management Trócaire Annual Report 2019/20 | 56
(l-to-r) Pauline Ciaita, Lucyline Lmbura and Madris Nginya with the savings lock box belonging to their savings and loan group in eastern Kenya. These groups are an important way to help women generate income. (Photo: Gary Moore)
There are currently two Trócaire from such ethnic backgrounds, BOARD RECRUITMENT board members from Northern and that Organisation and The Nominations Committee Ireland. Human Resources, Audit & Risk meets at least twice per year to Committee and the Trócaire identify and nominate candidates ETHNICITY (Northern Ireland) board should to the board as well as to review aim for at least one such As with many organisations proposed new members of board member. The aspiration agreed in Ireland, the vast majority of committees. The Nominations by the Nominations Committee board and committee members Committee considers the is that such recruitment at of Trócaire are of white Irish skillsets required by the board committee level would support ethnicity. Trócaire’s programme as well as the need for diversity the recruitment of at least one participants, partners and among board members. In member from such an ethnic country office staff are primarily advance of the June 2019 AGM, background to the board by from Latin America, Africa, the the Nominations Committee 2023. This timeframe was set Middle East and Asia. Trócaire identified two candidates based on the date of expected aspires to recruit a number of to fill the vacancies of one future board vacancies. board and committee members board member due to retire in whose ethnicity reflects the There is currently one director 2019 as well as to lead board diversity of the stakeholders that from a non-white Irish ethnic committees. it serves and the diversity of background on the board of Karen Dillon and Matt Walsh society in Ireland and Northern Trócaire (Northern Ireland) as were nominated and accepted Ireland. well as one such committee as new board members. These member from each of the The Nominations Committee nominations strengthened the Funding & Public Engagement agreed that the Funding & Public board by bringing in additional Committee and the International Engagement Committee and risk management, financial Programme Advisory the International Programme management, human resources, Committee. Advisory Committee should aim accountability and organisational to have at least two members managements skills and Trócaire Annual Report 2019/20 | 57 perspectives. Both candidates went through this induction and board members. In January had served as external volunteer programme on 4th and 5th 2020 Archbishop Eamon members of Trócaire board September 2019. This induction Martin (Chair of the Trócaire committees prior to this was also offered to existing Trustees, Archbishop of Armagh, appointment. On appointment, board and committee members. Primate of All Ireland) visited Karen Dillon took over the Chair Trócaire’s Country Office in of the Audit & Risk Committee A half-day formal training for all Nicaragua. Bishop Noel Treanor and Matt Walsh took over the board and committee members (Trócaire Trustee, Bishop of Chair of the Organisation & on charities governance provided Down & Connor), and Bishop Human Resources Committee. by Chartered Accountants Ireland Alan McGuckian (Bishop of th The nominees were considered took place 4 September 2019. Raphoe) travelled with Trócaire’s from a gender balance This training was co-designed International Director Sean Farrell perspective. with Chartered Accountants to Israel and Palestine as part Ireland specifically to meet the of the Holy Land Co-ordination Archbishop Kieran O’Reilly was needs of Trócaire. It focused group. also appointed to the board by both on the new Charities the Episcopal Conference to Governance Code as well as the replace Bishop Ray Field who Company Law requirements CHARITIES GOVERNANCE retired as a Bishop and board that would apply to Trócaire CODE member. Archbishop O’Reilly after the incorporation process. The board considered the new is also a trustee of Trócaire. His Training specific to Charities Law Charities Governance Code vocation and life experience in and Company Law in Northern at the AGM with the trustees the Society of African Missions Ireland is being sourced, and it as well as at board meetings. gives him a particular insight is intended that this would be A draft compliance record into the work of Trócaire. made available to the directors form demonstrating Trócaire’s This is one of three board Trócaire (Northern Ireland) in compliance with the code appointments which are outside 2020. was made available to board the scope of the Nominations members in September 2019 Committee. The other two are BOARD & TRUSTEE FIELD in advance of the board training the Chair of the Board and the VISITS referred to above. Executive Administrator of the Commissions and Agencies of Board members are afforded One of the core standards of the Irish Episcopal Conference, the opportunity to travel the code, Standard 4.1 states who is an ex-officio member. internationally with members of that charities should: “Decide if Trócaire’s executive leadership your charity’s current legal form team on one occasion during and governing document are fit TRAINING & INDUCTION their term. This is to view the for purpose. Make changes if A comprehensive day of implementation of programmes necessary, telling the Charities induction is offered to all and to meet with communities, Regulator in advance that you are new board members on their partners and local Trócaire staff. doing so.” appointment to Trócaire to give This supports board members new members an understanding to understand Trócaire’s work This was completed through of the breadth of Trócaire’s overseas and to fulfil their the incorporation processes. work and core operations. oversight responsibilities. A Following this restructure, the Induction is provided by the trip for two board members to compliance record form was executive leadership team as visit Trócaire in Somalia was updated for the governance well as other staff members. scheduled in 2019. However, of the new Trócaire Company The topics covered by induction this visit had to be cancelled for Limited by Guarantee. It was include: Trócaire’s strategic plan, security reasons. approved by the board of international programming, directors of this company on rd public engagement, fundraising In addition to the board visits, 3 April 2020. In approving this and marketing, finance, human Trócaire occasionally facilitates compliance record, the board are resources and risk. The three international visits to Trócaire satisfied that Trócaire is compliant new board members and the programmes for members of with the Charities Governance new committee members who the Irish Episcopal Conference, Code. were recruited in 2019/2020 which includes Trócaire trustees 58 | Structure, Governance and Management
GOVERNANCE the presence of the executive RISK MANAGEMENT AND EFFECTIVENESS REFORMS leadership team. The board also INTERNAL CONTROL held a dedicated session in An external independent There is a three-line approach October 2019 where they self- review of Trócaire’s board to internal control at Trócaire. evaluated board effectiveness. was carried out in 2017 by The first line is the policies, This self-evaluation has led to corporate governance consultant processes and procedures for changes in the structure and Noreen O’Kelly. Most of the the management of operations. content of meetings. The board recommendations from this The second line is the risk calendar for 2020 was developed report were implemented in management process, which based on this self-evaluation. 2017 and 2018. Ninety-one per seeks to identify gaps and This calendar allows for more cent of recommendations were exposures. The third line is the opportunity for the board to lead completed, with the remainder internal audit function, which on strategic matters. of recommendations either independently monitors these partially complete or recurring first two lines. tasks. This report, the Charities DECISION MAKING Trócaire has established a Governance Code and the board The trustees and board are the comprehensive risk management training continue to provide custodians of Trócaire’s vision, process to ensure the guidance for further governance mission and values. They approve organisation identifies, manages reforms. strategy, structure, annual plans and mitigates risks in line with and budgets and ensure the In addition to the reforms Trócaire’s risk framework. This organisation is effective and referenced above, the terms of risk management process is accountable. Terms of reference reference for the board Chair, an integral part of Trócaire’s for the board provide details on Deputy Chair and Nominations governance and management the functions currently delegated Committee were reviewed and systems. Risks are regularly by the trustees to the board. updated in order to clarify roles discussed and assessed at and responsibility for governance Each year at the AGM the board all levels in the organisation effectiveness reforms. and executive leadership team up to board and trustee level. make a detailed annual report to Trócaire was awarded a Good The board has private board- the trustees. The trustees appoint Governance Award in November only sessions at the start the CEO and have delegated 2019 for Best Governance and end of each meeting to a range of day-to-day decision- Improvement Initiative for its enable members to openly making powers to the CEO and work in strengthening risk discuss effectiveness without the executive leadership team. management.
Three Lines of Defence Model
Board/Committees (ARC)
Senior Management External Audit Regulator(s) 1st Line of Defence 2nd Line of Defence 3rd Line of Defence
Management of Risk Management operations function Policies and procedures Internal Audit Process risk management Compliance functions & internal controls
In the Three Lines of Defence Model, management control is the first line of defence in risk management and internal control, the various risk and compliance oversight functions established by management are the second line of defence, and independent assurance is the third Trócaire Annual Report 2019/20 | 59
The risk management process The areas of risk management HQ audits were also undertaken, begins with the trustees as they identified to focus on were including a review of Trócaire’s have primary responsibility for in communications, training risk management arrangements, risk management within Trócaire. and staff support for risk security (follow-up), creditor and They are aware of the major management. Implementation internal payments / transfers. risks and must be satisfied that of further risk management Audits of public income and control systems are in place to improvements in these areas are institutional funding also mitigate exposure. in progress. commenced during 2019/20 and will be completed in 2020. The risk management framework involves risk identification, INTERNAL AUDIT The internal audit plan for analysis, control, review and Trócaire has a dedicated Internal 2020/21 was initially agreed reporting. There are four levels Audit Unit. Its aims are as with Trócaire’s Audit & Risk of risk registers in place: follows: Committee in January 2020 organisational, divisional, country and included provision for and programme level, and • to provide independent overseas audits and a number Northern Ireland. Management assurance on governance, of HQ / corporate activities, at each level ensure that risk risk management and such as budgetary control and analysis is part of the decision- internal control processes; procurement. However, the plan making process. Significant risks • to provide a high quality has since been re-written in the are captured through the risk internal advisory service; light of Covid-19 and now has registers and escalated to the additional focus on the continuity next level of management. • to help develop the and control of critical processes organisation’s capacity with and risk management. Planned Board committees regularly regard to good governance, overseas audits are likely to be examine strategic risks and risk management and affected by travel restrictions. report their findings and internal control through recommendations to the board. education/awareness The service has been operating Risk reporting at board and training and related activity. with a reduced staff due to a committee level is carried out member of staff transferring to using heat maps and exception- The internal audit function also another unit during 2019 (due to based reporting to highlight provides important support and return to Internal Audit in January emerging risks, significant shifts advice to the organisation in 2021). and longer-term trends. Each its duty to prevent, detect and committee of the board has investigate allegations of fraud Fraud, Corruption and Bribery considered tolerance levels and or other financial wrongdoing. The Internal Audit unit also no-go areas for the strategic The Head of Internal Audit assists in investigating allegations risks. This work on risk tolerances and concerns of fraud or financial enables the board to maintain a reports directly to and has unrestricted access to the Chair wrongdoing by partners or risk appetite statement for the Trócaire staff and maintains a organisation. of the Audit & Risk Committee. The scope of Internal Audit’s register of cases. Preventing, The executive leadership team work spans across all Trócaire detecting, investigating and is responsible for developing geographic locations, all head responding to fraud, bribery and and executing the organisation’s office functions and Trócaire corruption is a priority for Trócaire. risk management process. The (Northern Ireland). Internal Trócaire adopts a zero-tolerance Director of Corporate Services audit’s work is not restricted approach and takes any allegation role encompasses the role to financial considerations; it seriously. Trócaire has a range of Chief Risk Officer who is embraces the range of risks of mitigations in place to reduce responsible for improving risk facing a modern NGO. the risk of fraud. The Fraud, management processes. Corruption and Bribery Policy During 2019/20, the Internal Audit was reviewed and a significant In May 2019 the executive unit undertook a series of audits update took place during the leadership team carried out a including overseas audits in year with detailed input from the risk maturity assessment to Honduras, Nicaragua, Democratic Audit & Risk Committee. determine ways to improve Republic of Congo and Sierra risk management in Trócaire. Leone. A number of corporate / 60 | Structure, Governance and Management
The nature of Trócaire’s operating operations was low. The table made to the Gardaí and Trócaire environment gives rise, on below provides more detail management provided a formal occasions, to allegations and on such losses in overseas written statement. The case concerns of fraud or other operations. is still under investigation financial wrongdoing. In such by the Gardaí. Trócaire has circumstances, the cases are Separately, in Ireland, Trócaire also made a complaint to investigated. The investigations experienced a loss of money due the Office of the Director of are typically resourced in-country, to the actions of a contractor Corporate Enforcement on this with assistance from internal during 2019/20 (net €59,606) who matter. Trócaire informed the audit, HR (where cases involve provided cash collection services donors connected with the staff) and the International to Trócaire. This contractor went affected funds and has sought Division. In 2019/20 financial year, into liquidation at a point when compensation for the remaining investigations into 14 cases of it still owed €73,397 to Trócaire. loss under its insurance policies. allegations or concerns of fraud The directors of the contractor or other financial wrongdoing admitted in submissions to the The loss of funds, including were completed. High Court that they wrongly Ireland and overseas losses, used client funds to meet their represents 0.09% of expenditure There is a process to ensure own cashflow needs. Trócaire in the year (2018/19: 0.03%). donors are informed about cases recovered €13,791 through the when they arise and following liquidation process. completion of investigations. The cases and investigations The contractor was registered The amount of fraud that have arisen during the with the Private Security or potential loss year do not point to a lack of Authority and had been organisational control; rather they engaged by Trócaire following verified from our reflect the environment in which a competitive procurement overseas operations Trócaire operates. process in 2016. When Trócaire learned of the misappropriation was low. The Head of Internal Audit of these funds, a report was provides an annual assurance statement to the Audit & Risk Committee. The table below Losses in overseas operations 19/20 18/19 summarises the number of Value of potential fraud/loss (including €2,425 €14,277 number of cases received unrecovered ineligible expenditure) and closed and prior year following investigations. comparisons Value of ineligible expenditure recovered €14,611 €11,251 Of the 12 cases received in following investigations (2018/19 figure the year, our own monitoring was €11,251) processes detected eight, with four coming to light via external Cases where partnerships terminated 1 5 following investigations sources. Cases where disciplinary action taken 1 1 The amount of fraud or potential (internal) loss verified from our overseas
Cases received and closed 19/20 18/19
Number of Open Cases c/f 5 3 Trócaire (3), Partner (2) – reported on in 2018/19 end Feb 2019 Annual Report New Cases received in year 12 16 Trócaire (1), Contractor (1), Partner (10) (Note: 2018/19 figures were 5 Trócaire and 11 Partner) Cases Closed in year 14 14 Trócaire (4), Contractor (1), Partner (9) following investigation Open Cases as at 29 3 5 Trócaire (0), Partner (3) February 2020 Trócaire Annual Report 2019/20 | 61
CONFLICTS OF INTEREST Spanish and French. A dedicated “We are courageous in our e-mail address is used up to struggle for a just world, In 2018/2019, Trócaire’s Conflict gather and record conflicts of speaking out strongly when we of Interest Policy was updated to interest across the organisation. campaign with and for others. reflect new guidance from the We encourage a culture of Charities Regulatory Authority creativity and innovation that as well as recent experiences RISK APPETITE STATEMENT enables us to take risks while of different units of Trócaire in In June 2019 the Trócaire acting responsibly to deliver our managing conflicts of interest. board approved a risk appetite goals.” There was no further update statement. This statement was to the Conflict of Interest reviewed and updated in April There are a number of Policy during the financial year. 2020. The statement sets out characteristics of Trócaire’s model The policy requires all Trócaire a vision of the approach that of work that determine the personnel including board and the organisation will take to inherent level of risk exposure of committee members, staff, managing our key areas of risk the organisation. These include: volunteers, partners and relevant in 2020/21. The board views risk Trócaire’s geographical scope, third parties to disclose actual appetite as the amount of risk its partnership model, the or potential conflicts of interest. they are willing to take or accept programme areas of its work and Trustees, board and committee to achieve the organisation’s its advocacy mandate. members, and the executive strategic objectives. The The risk appetite statement leadership team make annual statement is rooted in Trócaire’s articulates Trócaire’s risk position declarations of conflicts of values and is aligned to Trócaire’s across all of its identified interest. Guidance including strategic plan. worked examples have been strategic risks as well as prepared to assist managers Trócaire’s value of courage some additional risk areas. The and their teams in responding underpins its risk appetite. This following chart summarises the to conflicts of interest, and value is articulated in the current relative appetite levels for these these have been translated into strategic plan as follows: risk areas.
Risk Appetite Levels
Courage in programming: Advocacy & campaigning on global justice Issues Courage in programming: Humanitarian response programming Courage in programming: Partnership work in line with our social justice High mandate Courage in programming: Innovation in programming to achieve quality impact Ambition to grow scale and mix of income: Maintenance and growth of public income and institutional funding Open Adaptivity to change Innovation to maintain Trócaire relevance Development & maintenance of ICT Systems
Securing the financial stability of Trócaire and maintenance of financial Cautious Reserves Reputation and public trust Adequate development & mobility of staff Information security & data protection Response to global events (e.g. Brexit, Covid-19) Low Compliance with regulation, codes of conduct, grants Maintaining strong church relations Staff security and controls & staff well-being (protection from excessive No workload) appetite Fraud, bribery and corruption management Safeguarding of people in programmes from risk of abuse 62 | Structure, Governance and Management
PRINCIPAL RISKS AND addressed in the risks below and reduced. At year end a plan was UNCERTAINTIES in the financial review section on agreed to close the remaining page 79. structural deficit over three years The top eight risks and in a manner which would keep uncertainties facing Trócaire are The description of this strategic Trócaire within its board-approved as follows: risk throughout the annual report range for free reserves while still has been prepared using the delivering on the mission of the 1. Covid-19: guidance issued by the Charities organisation and protecting its SORP Committee on 23rd March The risk an unprecedented stakeholders in so far as possible. 2020. global pandemic causes However, following the The Trócaire board and all major disruption to our emergence of Covid-19 and committees monitor and input employees and operations the beginning of restrictions into the Covid-19 risks specific impacting business continuity, on movement and economic to issues within their scope. The strategy, staff well-being, activity in Ireland in March overall business continuity plan public income, donor income, 2020, Trócaire developed a and movements in the Covid-19 cashflow and all front-line revised plan called ‘Securing risk register are presented and activities. the Organisation’s Future’. discussed with the board. Post- Scenarios were developed year end the board and many of Covid-19 emerged as a strategic based on the projected financial its committees held additional risk to Trócaire in the last two impact of the Covid-19 pandemic meetings to provide effective months of the financial year. on Trócaire in the five years governance oversight during the However, most of the disruption from 1st March 2020. As the Covid-19 crisis. to Trócaire occurred post-year first Covid-19 wave in Ireland end. After it was identified occurred during Trócaire’s as a strategic risk, a crisis 2. Sustainable Finances: Lenten campaign, which is management team was formed, the organisation’s flagship a Covid-19 specific risk register The risk that management fundraising and development was developed, and business and board fail to secure the education campaign, the continuity plans were created financial position of Trócaire in potential impacts on public or refreshed across all business a sustainable way income were very serious. The units. During the financial year, starting risks of economic disruption or The risks posed by the pandemic in July 2019, Trócaire leadership recession in Ireland, the UK, the are both immediate and long- identified a growth in the EU and globally creates risks to term. The immediate risks projected deficit compared to Trócaire’s institutional funding (i.e. were managed by the crisis the annual budget. Early budget funding from governments and management team. Longer reviews identified projected intergovernmental bodies). term risks were managed by income lower than budgeted The aim of the Securing the the executive leadership team. and projected expenditure higher Organisation’s Future plan is to The main impacts of Covid-19 than budgeted. It became clear secure financial sustainability are on staff health, security and that after a number of years, a while delivering on Trócaire’s wellbeing, financial sustainability structural deficit would persist mission and protecting its and on international programming unless action was taken. stakeholders. The plan uses and humanitarian work. The In response to these challenges the live multiannual financial latter is being mitigated through Trócaire developed a multi- framework to identify and a comprehensive pivoting of annual financial framework to manage financial risks. It programmes to prevent and plan finances for future years. builds on the work on financial address the effects of Covid-19 sustainability carried out during on health, food security, safety This was used to assist in the the 2019/20 financial year. It (e.g. risk of gender-based development of the 2020/2021 enables the leadership and violence; risk to human rights budget. There were a series of defenders) and civil society cost cutting exercises carried board of the organisation to space. out during the financial year. Two identify trends and specific risks, rounds of voluntary redundancies and to plan to manage these The impact of Covid-19 on post were initiated during the financial over several years, minimising balance sheet risks have been year and activity budgets were shocks to the organisation and Trócaire Annual Report 2019/20 | 63 ensuring financial and operational for budgeting and financial multilateral loans rather than sustainability. management. The Organisation developmental grants, which is a and Human Resources worrying trend. In addition to the overarching Committee has focused on risks, short term business staff-related cost reductions. The In 2019/2020 Trócaire received continuity risks in the area of Funding & Public Engagement €41m from Institutional donors, finance arose due to Covid-19, Committee and the International which is a decrease of €5m on including cashflow and the ability Programmes Advisory the previous year, primarily due to pay partners, suppliers and Committee have focused on to the ending of several grant staff. These risks were managed public income and institutional agreements in humanitarian post-year end without a major funding income respectively. work and a long-standing impact to date. Year-end financial grant in Myanmar now being reporting and external audit work given directly to Trócaire’s local was also impacted by Covid-19 3. Attract & Manage partner. This is very much in line restrictions resulting in extended Institutional Funding: with Trócaire’s support to the timeframes for reporting. The risk that Trócaire fails to localisation agenda – ensuring funding and decision-making In the financial review section attract and manage increased power shifts to local agencies. of this Annual Report there is levels of institutional funding While Irish Aid remains Trócaire’s further commentary on this from diverse sources. largest institutional donor, the risk under the heading Reserve Globally, Overseas Development Trends & Financial Sustainability EU and the UK government, on page 77. Aid (ODA) volumes continued along with significant funding to fall, with ODA to non-Least from Caritas and CIDSE member All board committees contribute Developed Countries (LDCs) organisations remain the top four to oversight of this risk. The Audit growing faster than ODA to donor categories in our portfolio. & Risk Committee consider LDCs. Much ODA to vulnerable Trócaire continues to build overall financial sustainability countries has been driven relationships with new donors in the context of their role by increases in bilateral and and currently has funding from
Comedian Deirdre O’Kane with Shayma Shafee and her 17-month-old daughter Nadia at their home in Gaza. Comic Relief concerts organised by Deirdre raised money to support Trócaire’s work in Gaza. (Photo: Mark Stedman) 64 | Structure, Governance and Management
35 institutional donors. Further term financial management and To mitigate the impact of details on institutional funding strategic planning processes. Covid-19 on income, Trócaire income for the year is income in has a strong fundraising and the section on Goal 8 – Increased The International Programmes marketing strategy which is Scale and Income on pages 42 Advisory Committee monitors consistently reviewed to ensure and 43. the institutional funding portfolio we are availing of all fundraising and institutional funding is a channels and activities that are Trócaire continues to have standing item on the agenda open to us, while at all times a strong partnership with of every meeting. The Audit monitoring our key performance Irish Aid. In 2019, an Irish Aid and Risk Committee monitors indicators (i.e. net income, return delegation visited Trócaire’s institutional funding as a on investment and long-term work in Honduras as part of its component of overall finances. donor value). monitoring of its programme grant funding. A key finding We will continue to monitor This risk is monitored by the from the visit was that “Trócaire institutional funding trends, Fundraising & Public Engagement plays a unique and effective including those relating to the Committee and is regularly role in defending human rights forthcoming merger between discussed by the board. The Audit in the complex and challenging DFID and the Foreign and and Risk Committee monitors operating environment of Commonwealth Office (FCO). public income as a component of Honduras. It works from a sound overall finances. strategic and policy basis and 4. Sustain Public Income: has a strong in-country team”. DfID (the UK Department for The risk that Trócaire cannot 5. Global Staff Wellbeing: International Development) maintain or grow diverse The risk that financial remains Trócaire’s second most sources of public income at cutbacks, loss of staff and significant donor, with grants in the levels necessary to meet redundancies results in Myanmar, Somalia, Kenya and its mandate and deliver on its excessive workload pressure Zimbabwe. objectives. / stress on staff, impacting In 2019 Trócaire continued to on staff well-being, causing As shown on pages 42 and 43 invest in its capacity to manage health risks, staff burn-out (Goal 8 - Increased Scale and commercial contracts from or harm, churn or difficulty in Income) 2019/2020 was a strong institutional donors, particularly year for donations from the Irish recruitment and retention. DFID, where there is substantial public. Trócaire exceeding its funding being channelled through During the reporting period, total public income fundraising this mechanism rather than pressures to meet increasing target by two per cent. This was traditional grants. The Standards donor compliance requirements very slightly behind 2018/19 & Compliance Unit within were compounded by the need (-1%). This was due to a better Trócaire, continued to support to implement tighter financial with building capacity on donor than expected performance controls internally and by post- compliance requirements and at Lent and income for our year end events (i.e. Covid-19). donor due diligence procedures emergency appeal for Cyclone Trócaire also has a strong which is growing as Trócaire Idai. There was an expected commitment to maintaining an acquires new donors and as decline in legacies as we had an appropriate balance between regulation increases across the unprecedented level of income spending on staffing and support sector. from legacies in 2018/19. costs and on expenditure such as grants to partners. This means There is intense competition for As noted above, risks to that there is increased pressure fundraising in the Irish market, institutional funding increased on staff at all levels in the both among international post-year end, due to the impact organisation to manage workload development agencies and from of Covid-19 on government within resource constraints. spending and on economic domestic focused charities. This forecasts. Risks related to competition increases fundraising In 2019/20, as noted above, institutional income were costs and reduces returns. operating budgets were identified through a revised Trócaire’s return on fundraising reduced, a voluntary redundancy landscape analysis and this has investment is better than the programme was implemented. been incorporated into the long- average rate for Irish charities. Covid-19 increased these Trócaire Annual Report 2019/20 | 65 pressures and changed both how security management policies to and / or job and are outlined staff had to work and the focus ensure that the risk to staff safety in the Security Training Policy. of their work. This resulted in and security is appropriately Training is provided by an external further pressure on staff well- managed. Trócaire has a full-time provider to ensure best practice being after the financial year end. Global Security Advisor who is achieved and online training advises the executive leadership for all inductees is mandatory. Trócaire has a range of team. In each country office the Refresher training is provided mitigations in place in response country director is the security in-house. Field staff receive their to this risk, including addressing focal point. They are supported training from selected suppliers the workload stresses that have by the Global Security Advisor, or from the Global Security arisen due to the reduction in the Head of Region and the Advisor (GSA) on a site visit. staffing numbers and Covid-19. International Director. This training must be refreshed Mitigations in place include a minimum of once every three Trócaire’s global security strategy resetting organisational priorities years. International travel must has elements of protection, and human resource processes be approved in advance by the deterrence and acceptance. The that enable people to revise CEO and is managed through strategy is most heavily weighted and reset realistic objectives, a stringent Travel Authorization towards acceptance, with that develop skills in stress Process specific to relevant risk minor elements of protection management and that offer categories. Post-year end, in and very little deterrence channels for assistance in light of the Covid-19 crisis, travel employed. Trócaire focuses on the event of difficulties with was tightly managed to ensure acceptance, which seeks to build workload and stress. Post-year staff safety and security and a safe operating environment end, managers were supported to prevent the transmission of to lead their teams through through consent, approval and cooperation from local Covid19. Trócaire has also worked crises through a programme communities and authorities. to secure access to limited of training, support and This approach continues to reap international and regional travel, coaching initiatives on change dividends and is highly effective including medical evacuation, management. A system for in allowing Trócaire’s continued should they be required. offering access to confidential operations in some of the external counselling support Trócaire has a crisis management world’s most unstable security is also available across the plan which outlines the process environments. The strategy is organisation. undertaken in times of crisis. underpinned by the Trócaire The plan and staff are exercised security policy document. annually in order to ensure staff 6. Staff Safety & Security: There is an organisational are aware of its contents and The risk that external events security manual in place providing crisis can be pre-practised. The or inadequate / failed internal templates and mitigations for most recent crisis exercised processes could lead to death, all staff. Each country office has included a detention of staff injury, illness, kidnap, or a security management plan (presumed kidnapping) in trauma of staff members or tailored to the specific risks in Ethiopia where both the others to whom Trócaire has a that country. Post-year end, with country team and the Crisis duty of care. the emergence of Covid-19, Management Team (CMT) in HQ all country security plans and were exercised simultaneously. Trócaire staff often work and business continuity plans were Thereafter, with the onset of live in unstable regions and completely revised to ensure Covid-19 the CMT was again countries. During the reporting staff safety and security in the exercised on a tabletop exercise period, many of Trócaire’s country context of the Covid-19 pandemic towards managing a medical programmes were affected by: and to enable continuity of evacuation within the restrictions conflict, civil unrest, political operations insofar as is safely imposed on travel. instability, and the outbreak of possible. communicable diseases including Trócaire has a contract with Key ebola, cholera and, post-year end, All staff travelling to or working Travel and as a result is part of Covid-19. overseas must undertake the Amadeus system of alerts. security training before travelling. Travelling staff and the GSA Trócaire has implemented The requirements are determined receive automated security comprehensive safety and by the level of risk in the country briefings before and during their 66 | Structure, Governance and Management period of travel. In addition, there 7. Safeguarding People from any gaps in the process and is a centralised reporting system abuse or exploitation make recommendations for that allows Trócaire management by staff or others who management consideration. to quickly view the location represent Trócaire: of staff who are travelling Key findings included: overseas to support a rapid The risk that persons “A clear and robust framework response to critical incidents. (particularly children and of policies and procedures In 2019, an internal audit of vulnerable adults) can was found to be in place to security was conducted and the be exploited or abused contribute to a safe environment recommendations continue to be by Trócaire staff, people and culture in Trócaire. A few implemented in 2020. An ECHO working on Trócaire’s clarifications and additions are commissioned audit firm also behalf, or Trócaire’s partner recommended, but these are reviewed the security processes organisations. minor and are not a reflection as part of their overall audit and on the rigour of the policy found the organisation to be Trócaire believes that all framework. The reviewers have compliant and in line with best individuals have the right to live found high levels of compliance practice. with dignity and freedom from with international safeguarding exploitation and abuse. It is standards to ensure that risks In an effort to continually improve Trócaire’s policy to safeguard all are identified, addressed and its processes and procedures individuals who are involved in mitigated. Governance and Trócaire seeks to capture and or affected by its work from risks responsibility for safeguarding is learn from security and safety of exploitation and abuse, and clearly marked out in policies and incidents. Any staff member to ensure that the behaviour of procedures...Where safeguarding who is involved in an accident all those working with Trócaire issues and cases have arisen, or security incident or a ‘near meets the appropriate standards. they have been addressed miss’ is required to complete Trócaire’s Safeguarding with sensitivity and a thorough an Incident Report Form. This Commitment Statement and approach. Steps have been taken form must be routed through policies are published on to ensure organisational learning management at the country Trócaire’s website: from some difficult and time- level and forwarded to senior https://www.trocaire.org/about/ consuming experiences.” management at Trócaire head safeguarding office. Recommendations from the External Review external review are the focus of This information is collated and the action plan for 2020. lessons learned are shared in Trócaire conducts annual audits case of more serious incidents of safeguarding to ensure Safeguarding Cases and briefed in detail to the that standards and progress executive leadership team, IPAC are being maintained. In May Trócaire takes all safeguarding and the board as required. Staff 2019 terms of reference for allegations, concerns or risks were involved in 42 incidents external safeguarding oversight seriously and ensures that there during the reporting period. Of were drawn up. GCPS was is appropriate follow-up on each these only one was extremely commissioned to undertake case. There were no confirmed serious. This was an abduction/ an initial review of Trócaire’s cases relating to Trócaire staff kidnapping resulting in the safe safeguarding arrangements in 2019/2020. Trócaire requires return of a national staff member and provide a report on the partner organisations to in Somalia. adequacy and effectiveness of report safeguarding cases to these arrangements, identifying Trócaire. We review response
2019/2020 2018/19 2017/18 2016/17 2015/16
Number of Number of Number of Number of Number of Incidents Incidents Incidents Incidents Incidents 42 11 8 12 10
Note: reporting procedures were changed in 2019, which has led to an increase in reporting. Previously staff had to be directly impacted. The current process includes the reporting of incidents in the vicinity that affect operations. Therefore from 2019/2020 onwards there is a greater scope of incidents that require reporting. Trócaire Annual Report 2019/20 | 67 mechanisms and if necessary trustees. The Director of ongoing work to reduce wider take appropriate actions. Human Resources is the Chief risks such as continuous efforts Designated Safeguarding to maintain, grow and diversify In the year 2019/20, Trócaire’s Officer who, with the support institutional funding streams. complaints mechanisms of the Head of Safeguarding, responded to four cases of is responsible for ensuring that Each committee of the board safeguarding concerns relating organisational policy is in place considers the Brexit risks related to a partner organisation. The in accordance with national and to their areas of focus, but overall following is the status/outcomes international law, policy and best Brexit risk updates are being in relation to the four cases: practice. Each Country Director provided to the Audit & Risk Committee as well as to the • 2 confirmed with both staff is responsible for ensuring that board. Brexit risks are also of members dismissed the policy is implemented in Trócaire’s programme countries. particular relevance to the board • 1 unconfirmed This risk is monitored by of Trócaire (Northern Ireland), and Trócaire’s Organisation and were discussed with them during • 1 ongoing Human Resources Committee. the financial year. Cases are reported to relevant bodies in keeping with 8. Brexit: TRUSTEES’ national legislation and other RESPONSIBILITIES IN The risk that Brexit could have requirements. RESPECT OF THE FINANCIAL a materially negative impact STATEMENTS Counter Modern Slavery and on the income of Trócaire Trafficking in Persons and/or that it could cause The trustees are required to uncertainty for the operation prepare group and company Trócaire welcomes The UK financial statements that give a Modern Slavery Act 2015 (as well of Trócaire as a north/south organisation. true and fair view of the state as donor requirements) and the of Trócaire’s affairs and of its duty it places on organisations, Trócaire has continued to income and expenditure for including Trócaire, to disclose monitor the potential risks from each financial year. In preparing publicly the steps they are taking the UK’s scheduled exit of the the financial statements, the to prevent modern slavery in European Union. As an all-Ireland trustees are required to select their own organisations and organisation Brexit poses specific suitable accounting policies, to in their supply chains. Trócaire risks to Trócaire. Trócaire brought apply them consistently and to considers that modern slavery together a cross-organisational make judgements and estimates and trafficking in persons Brexit risk committee and that are reasonable and prudent. both abuses and exploits an maintained a specific Brexit The trustees confirm that they individual and will therefore not risk register. Brexit-related risks have complied with the above tolerate this within any of our requirements in preparing the programmes or activities or by include: economic disruption, financial statements. any person representing Trócaire, currency fluctuation, regulatory divergence, and the impact on including partner organisations The trustees are responsible institutional funders including the whether within or external to our for keeping proper accounting EU & UK government. programmes and activities. We records which comply with are committed to continuing to Mitigations were put in place accounting standards and review, monitor and evaluate our where possible. A forward which disclose, with reasonable policies, procedures, agreements contract for sterling to euro was accuracy at any time, the and training to ensure modern entered into at the beginning financial position of the charity. slavery and trafficking in persons of the financial year to limit the To ensure that proper books and does not occur in Trócaire’s work. impact of currency fluctuations records are kept, Trócaire has Safeguarding governance and compared to the budgeted employed appropriately qualified risk management rate. Reforms of the legal and personnel and has maintained governance structures of Trócaire appropriate computerised Overall accountability for in Northern Ireland in part protect accounting systems. It is also ensuring implementation Trócaire from jurisdictional responsible for safeguarding of appropriate safeguarding divergence. Other Brexit-related the assets of the organisation, measures lies with the risks were in part mitigated by and hence for taking reasonable 68 | Structure, Governance and Management steps for the prevention and Trócaire meets the standards as COMMITMENT TO BEST detection of fraud and other set out in the code of practice PRACTICE IN CORPORATE irregularities. and is fully committed to working GOVERNANCE with the relevant agencies Trócaire is committed to the The Audit and Risk Committee to maintain and develop the standards contained within the reviews the performance of the highest standards of fundraising Irish development NGOs Code above responsibilities for the methods in our sector. Trócaire of Corporate Governance as Trustees. has developed charters to developed by Dóchas. The aim demonstrate its commitments of the code is to set standards SUBSIDIARY UNDERTAKING to its supporters. These are of best practice in corporate published on the Trócaire website Trócaire (Northern Ireland) governance applicable to the for both the Republic of Ireland (charity number XR 10431) is a sector to strengthen impact and and Northern Ireland and they are subsidiary undertaking. quality, as well as enhancing published on its website. stakeholder confidence in the Subsidiary undertakings are sector. those over which Trócaire We are a registered with the Fundraising Regulator Northern exercises a significant influence, Trócaire adheres to the Dóchas Ireland. Registration commits being the ability to direct the Code of Conduct on Images Trócaire to following the Code operating and financial policies of and Messages. This Code of Fundraising Practice and the the undertaking. promotes good practice among Fundraising Promise. overseas development and COMMITMENT TO humanitarian organisations in STANDARDS IN how they represent the people FUNDRAISING PRACTICE and communities they serve and the situations in which they Trócaire is committed to the work. It requires signatories to standards contained within the Ethical fundraising only use images and messages Statement of Guiding Principles Our board has adopted the that respectfully and truthfully for Fundraising. The statement represent the people featured, was developed by the Irish Guidelines for Charitable Organisations on Fundraising maintaining their dignity and Charities Tax Reform Group and communicating solidarity. exists to provide charities in from the Public. Staff, volunteers Ireland with a Fundraising Code and anyone else fundraising The combination of Trócaire’s of Practice. These standards on our behalf are fully trained adherence to the Irish were consulted on, revised on the requirements and we development NGOs’ Code and reissued by the Charities have implemented controls to of Corporate Governance, its Regulator as the Guidelines for ensure that all your fundraising adherence to the Guidelines Charitable Organisations on practices are fully in line with the for Charitable Organisations Fundraising from the Public. guidelines and any related Codes on Fundraising from the Public of Practice. We review and report and the fact that Trócaire The purpose of the statement is annually on compliance. publishes its Annual Report in to: Annual and Financial compliance with the Charities • Improve the way charities Reporting SORP (FRS 102) means that in Ireland raise their funds; Trócaire is considered ‘Triple Our charity prepares a trustees’ Locked’ by the Charities Institute • Promote high levels annual report and financial of Ireland. According to the of accountability statements in full compliance Charities Institute of Ireland, “to and transparency by with SORP (Statement of actively demonstrate openness, organisations fundraising Recommended Practice under transparency and integrity to its from the public; FRS 102) and makes them easily beneficiaries and donors a charity available to the public on our should be operating to the triple • Provide clarity and website. lock standards - transparent assurances to donors and reporting, good fundraising and prospective donors about governance”. the organisations they support. Trócaire Annual Report 2019/20 | 69
CHARITIES GOVERNANCE April 2020. The board is satisfied organisation and the Integrity CODE that Trócaire is compliant with all at Work pledge has been of the standards of the Charities displayed in Trócaire offices. A new mandatory Charities Governance Code, including the The Whistleblowing (Protected Governance Code was launched Disclosures) Policy was by the Charities Regulatory additional standards. reviewed and updated during Authority in Ireland in November the financial year with input 2018. All Irish registered charities INTEGRITY AT WORK from Transparency International are obliged to comply with PROGRAMME Ireland. Transparency this code by 2020. This is one In June 2018, the board International Ireland hosted of a range of voluntary and committed to Transparency Trócaire CEO Caoimhe de Barra mandatory codes of practice that International Ireland’s Integrity as a panellist at their annual Trócaire is subject to. The board at Work programme. This is an Integrity at Work Conference received detailed training on this held in Dublin in November 2019. governance code in September initiative promoting supportive working environments for 2019 delivered in association Complaints Handling & anyone reporting concerns with Chartered Accountants Feedback Ireland. Additional briefings on of wrongdoing. As part of this governance code were this programme, Trócaire has Trócaire maintains systems given to the board and trustees provided training to managers on to receive and respond to throughout the financial year. handling protected disclosures complaints and feedback from A Charities Governance Code and the Protected Disclosures its stakeholders in Ireland and Compliance Form for Trócaire (Whistleblowing) Policy has overseas. A complaint is a formal was prepared during the year. been reviewed. Support for communication where there is It was reviewed and approved staff speaking out has been an expectation of a response by the board at their meeting in communicated across the from Trócaire.
Catherine Kabuthi, Programme Co-ordinator for Ishihara Parish, a local partner supported by Trócaire in Kyenire, Kenya. Catherine is pictured in front of the produce cultivated at a farm run by the parish, which provides training to farmers on increasing crop yields in the face of climate change. (Photo: Ciarán Gallagher / Trócaire) 70 | Structure, Governance and Management
Feedback is a communication Complaints are received through seeks to close all complaints which does not necessarily imply many channels, including to the satisfaction of those that a response is expected. telephone, post, email and who contact them. Feedback is Complaints can be determined face-to-face. All complaints are often expressing admiration or as valid (i.e. relate to an issue centrally recorded in Trócaire’s support for Trócaire’s work and is which is Trócaire’s responsibility Salesforce system. They are acknowledged when appropriate. and is under our control) or assigned to the relevant staff not valid (i.e. not Trócaire’s member and our commitment UN Global Compact responsibility / not under our – as per our Supporters’ Charter On 13th May, 2019, Trócaire control). Complaints that are - is to resolve the issue within wrote to the UN Secretary- valid can be sensitive (e.g. 48 hours. Most complaints are General confirming that Trócaire relate to a breach of our Code of responded to and closed off on supports the ten principles Conduct, such as a suspected the day they are received. of the UN Global Compact safeguarding, data protection or with respect to human rights, fraud issue) or non-sensitive (e.g. We have weekly and monthly labour, environment and anti- relating to the quality of our work reports and dashboards corruption. Trócaire has pledged but not affecting the security, that highlight and display all to participate in and engage with safety or dignity of a person, complaints received from the UN Global Compact in the asset or data). the public. These reports and dashboards are circulated to following ways: Responding to Complaints in relevant staff and management 1. Develop guidance on our overseas programmes: to ensure visibility and oversight. implementing human rights During the financial year Trócaire Trends in complaints and due diligence in Ireland; continued to record progress in feedback are used to help 2. Promote the values of the implementation of country Trócaire to better engage with human rights, gender level complaints handling the Irish public. equality and indigenous mechanisms. Complaints were rights in business activities; recorded on the complaints’ logs In 2019/2020 Trócaire received 326 complaints in Ireland. This at country level. Each Trócaire 3. Provide guidance and number is reflective of the fact country office has dedicated recommendations to that Trócaire engages with a mechanisms for receiving and ensure human rights are large number of supporters and handling concerns. embedded in corporate potential supporters throughout practice, through research, In 2019/20, 12 cases of the year. The largest number of briefing papers and allegations or concerns of fraud these complaints (82 out of 326) advocacy; or other financial wrongdoing were classified as political. These were investigated, with five complaints were primarily about 4. Consider how the principles cases carried forward from the Trócaire participation in a “Rally can be further applied previous year. (See page 60) 4 Peace” in December 2019. This within our supply chains, Safeguarding complaints are rally was organised in support of with particular regards detailed on pages 66. diversity and inclusion in Ireland. to modern slavery and However, Trócaire’s presence trafficking in persons; Responding to complaints and was opposed by some people. feedback in Ireland: 5. Continue our commitment Forty-four complaints were to creating equality The Ireland-based Donors requests to be removed team seek to deal with the of opportunity and to from the Trócaire mailing list. eliminating all forms of complainant or person providing The third largest category of feedback in a professional and discrimination within the complaints were 17 contacts workplace. courteous manner and, in the from people waiting to receive case of a complaint, ultimately gift cards they had ordered (it A key requirement for resolve the issue to their can take up to seven days for participation in the Global satisfaction. Sensitive complaints gifts cards to be received after Compact is the submission of a are escalated directly to a senior order). Twelve complaints were Communication on Engagement manager. received concerning Trócaire’s (COE) that describes our door-to-door fundraising. Trócaire organization’s efforts to support Trócaire Annual Report 2019/20 | 71 the implementation of the ten Cultural Rights in the context harm, abuse or exploitation principles and to engage with of business activities and and to have complaint the Global Compact. Trócaire General Comment No. 16 on handling arrangements in supports public accountability State obligations regarding place.; and transparency, and therefore the impact of the business has committed to report on sector on children’s rights; and 6. We work to ensure that progress within two years of to implement the UN Guiding all programmes are of the highest quality in line with joining the Global Compact Principles. Stronger regulation is international standards and every two years thereafter needed internationally to provide and best practice and can according to the Global Compact a legal framework to ensure demonstrate results which COE policy. corporations do not violate bring positive changes in human rights in their operations. Through its work around people’s lives; the world, Trócaire staff and partners know that the actions STAKEHOLDER 7. We support our staff of irresponsible businesses are ACCOUNTABILITY to learn, develop and inwnovate and to ensure resulting in the displacement of Trócaire makes the following that learning from our communities, violent evictions, seven commitments to achievements and our pollution of land, destruction of our stakeholders under our failures allows us to livelihoods and loss of shelter, Stakeholder Accountability continually improve. with a disproportionate impact Framework: on women and indigenous To achieve these commitments 1. We put our values into communities. Killings of land, Trócaire will be responsible, practice, respecting the environmental and indigenous transparent and participatory, defenders are increasing year on rights and valuing the seeking feedback and learning year and human rights defenders contribution of our diverse from our work. are increasingly being labelled stakeholders; as terrorists and criminals. The In the prior financial year, 2. We work in partnership principles of the Global Compact 2018/2019, a paper was and solidarity with our stand in opposition to this developed to describe what stakeholders and ensure corporate impunity. accountability in our overseas that decisions are made programming means to Trócaire A fundamental shift in corporate by, or as close as possible and provides examples from accountability is needed to to, those most affected by across the organisation of address the adverse impacts of them; how various dimensions of corporations and this requires 3. We are a transparent accountability can be put into a multi-faceted approach. practice with our stakeholder Trócaire believes it is necessary organisation and endeavour to collaborate and share groups (e.g. communities we to develop a legally binding work with, local partners, staff, treaty on the activities of information openly with our stakeholders; volunteers and supporters). transnational corporations and While primarily aimed at Trócaire other business enterprises; 4. We consult and listen to staff and volunteers overseas, to implement existing human our stakeholders to ensure the paper will be useful to a rights obligations in relation to that our work is informed by wider set of interested parties. corporate activities, taking into their active participation and It is published on Trócaire’s account General Comment No. feedback; website and is available in 24 (2017) on State obligations English, Spanish and French. under the International Covenant 5. We strive to safeguard all on Economic, Social and our stakeholders against
Stronger regulation is needed internationally to provide a legal framework to ensure corporations do not violate human rights in their operations. 72 | Structure, Governance and Management
The results for the year are presented on page 83 in the form of a Consolidated Statement of Financial Activities. The financial statements comply with Financial Reporting FINANCIAL Standard 102 (FRS 102), which is the Financial Reporting Standard applicable to charities in Ireland and the UK for accounting and reporting in order to provide transparency and a true and fair view. REVIEW A detailed commentary on the financial results reflected in the 2019/20 Annual Report is set out on pags 73-79. The key risks facing the organisation are set out in the section on structure, governance and management on pages 62-67.
Robersy (14) and Helen (six months), members of the Tolupanes community, one of Honduras’ most marginalised indigenous communities. For years this community has fought to remain on their ancestral land in the face of logging and mining operations. (Photo: Simon Burch) Trócaire Annual Report 2019/20 | 73
TOTAL INCOME
€75M €69M €64M €63M
2019/20 2018/19 2017/18 2016/17
INCOME largest annual fundraising Trócaire and our beneficiaries give campaign, generating €8.3m special thanks to all of our donors In 2019/20 we raised €64m, in the current year, an €0.7m who have continued to support a €5m (7%) decrease on the increase on the prior year. our work. previous financial year. 2017/18 We also saw success with was our second highest level direct mail fundraising, Charitable Activities of income achieved which was which was 22% ahead of mainly due to the response to Income from charitable activities the previous year. General the crisis in East Africa. There of €41m is comprised of funds donations and legacies were were no major new emergencies received through institutional lower in the current year in 2019/20 or prior financial year funding. offsetting the increase in resulting in a two-year fall in Lenten income. income. • €30m from governmental • Restricted donations and organisations; Public donations and legacies legacies were €1.1m which • €6m from agencies and other is similar to the prior year. The Irish public very generously There was no special appeal groups; donated €23m. This was a small during the current year. The • This was further decrease on the previous year. restricted donations relate supplemented by €5m from • Unrestricted donations and mainly to Cyclone Idai and the Caritas network. legacies was only marginally continued support for the lower than the previous refugee crisis. Of the €30m secured from year at €21.9m. The Lenten governmental organisations, campaign remains Trócaire’s €22m was from Irish Aid.
SOURCE OF INCOME
€46M €46M €41M €41M
€23M €22M €22M €21M €6M €1M €1M €1M
2019/20 2018/19 2017/18 2016/17
Charitable Activities Donations & Legacies Unrestricted Donations & Legacies Restricted 74 | Financial Review
TOTAL EXPENDITURE
€75M €71M €67M €64M
2019/20 2018/19 2017/18 2016/17
In addition to the Irish Aid dates of the annual funding for Part of the reason for this Programme Funding scheme, Trócaire main Irish progamme decline has been a decrease which accounted for almost grant from Irish Aid. in institutional funding and €17m, Trócaire was allocated related expenditure. Another over €5m from Irish Aid towards Charitable activities spend was connected reason is that in € € emergency response. The Irish 61m ( 70m in 2018/19) which some countries Trócaire is Government continues to be represents 91% (93% in 2018/19) supporting its partners to Trócaire’s single largest donor of total expenditure. During access institutional grants contributing 34% of the total the year, the Trócaire executive directly from donors, rather organisational income (31% in leadership team agreed an than through Trócaire. In the 2018/19). acceptable range of 90% to 95% last financial year Trócaire of Trócaire expenditure should be worked with partners in Goal 8 of the strategic plan on charitable activities. over 20 countries. Trócaire’s aims to ensure a diversified • Overseas programme: Grants largest programme is in funding base as new donors Somalia. Please see Appendix and contracts were secured to partner organisations have € 1 for a full list and spend during the financial year. Further decreased to 36m down from €47m in 2018/2019. on all of Trócaire’s country information on income is included programmes. Spend on Goal on page 42 and 43. Public income This represents 53% of our total spend (61% in 4, the protection of human growth and the ability to attract dignity in humanitarian crises, and manage institutional funding 2018/19). During the year, the executive leadership team is the largest programme are among the principal risks € € agreed an acceptable range spend with 26m ( 25m in and uncertainties facing Trócaire. 2018/19). There is more detail on these of 50% to 62% for grants to • Expenditure in support of our strategic risks on pages 62-67. partners. While this year’s level of grants to partners is programmes and partners within this range it is below was €21m, an increase of EXPENDITURE the benchmark of 60%, a €2m over the previous year. The statement of financial target which has been met activities shows the analysis of or exceeded in recent years. charitable expenditure between charitable activities, Goals 1-5 and the cost of raising funds, Goal EXPENDITURE 8. Our total expenditure for the year was €67m which represents 9% a €8m (11%) decrease over RAISING 2018/19 levels. The comparison FUNDS of expenditure levels to 2018/19 is in part impacted by a high CHARITABLE level of expenditure in the prior ACTIVITIES financial year primarily due to the East Africa crisis that arose 91% from a special appeal. It is also impacted by a change in the Trócaire Annual Report 2019/20 | 75
DETAILED
EXPENDITURE 8% Goal 1: Human rights and democratic space 8% Goal 2: Equitable access to and use of resources 4% Goal 3: Women’s empowerment Goal 4: Protection of human dignity in humanitarian crises Goal 5: People and leaders in Ireland acting for a just world GOAL 1-4 Goal 6: Innovation, learning and GOAL 5 improvement 80% Goal 7: Effective partnerships GOAL 8 Goal 8: Increased scale and income Goal 9: An accountable and SUPPORT effective organisation COSTS
• Ireland programme: investment in acquisition of of €305k. The increase is mainly Charitable activities also committed giving donors during due to increased investment includes expenditure on Goal the year. The full return on this required in safeguarding, 5, which is aimed at creating investment will take a number of standards & compliance, data a greater awareness of the years to be realised. Fundraising protection and information & causes of global poverty and performance is discussed further communications technology (ICT). injustice and how change on pages 42 and 43 under Goal 8 The investment in these areas can be achieved. The focus and on page 64 under Strategic allows us to meet regulatory and of this goal is that people and Risks. donor compliance requirements. leaders in Ireland are acting However, the percentage amount for a just world. Spend under The total costs set out above in has grown as overall expenditure this Goal was €3m (€3m in relation to charitable activities and has declined. 2018/19). raising funds include an allocation of support costs. Expenditure by Goal Raising Funds Support Costs Expenditure on Goals 6, 7 and 9 Spend on raising funds of €6m which are Goals for a stronger represented 9% (7% in 2018/19) Support costs, which are those Trócaire are intrinsically part of total expenditure. This is costs which cannot be directly of the Goals 1 to 5 and Goal within the agreed range of 5% attributed, have been allocated in 8. Success in these areas is to 10%. For every €1 invested proportion to estimated benefits monitored through balanced in fundraising from the general received. These include costs scorecard reporting with the key public, Trócaire received €3.70 in such as finance, compliance and developments set out on pages return (€4.10 in 2018/19). This is standards, human resources, ICT, 16 to 45. within the target range of €3.50 premises and governance costs. to €5 agreed by the executive These services play a crucial role leadership team. The rate of in providing core organisational return achieved is above the support in the delivery of our sector average (based on audited programme globally. Our total charity annual reports). support costs for the year were €5m (€5m in 2018/19). This The primary reason for the represents 8% of our total increase in expenditure and expenditure, an increase from 6% the decrease on the return on in the previous financial year. The investment is due to increased represents a monetary growth 76 | Financial Review ORGANISATIONAL VALUE FOR MONEY • Demonstrating our accountability to all our Accountability to all stakeholders- particularly stakeholders by design people living in poverty and Do our strategies, policies, systems and resources allow us Design & to address the 4Es? exclusion, partners, donors Proposal stage: DOES OUR and the Irish public; and PROPOSAL ACCOUNT FOR • Questioning, learning THE 4ES? and adapting systems, processes and programmes
What are our Value for Money PROGRAMMATIC to continually improve our principles? VALUE FOR MONEY impact.
Programmatic & Learning, Adaptation In practice, this means that: Organisational Learning, End of Implementation and Accountability Accountability to Programme stage: to programme donors and programme stage: ARE WE participants, • Organisationally: Trócaire participants DID WE DELIVERING partners and donors MAXIMIZE GREATEST must continuously ensure IMPACT? POSSIBLE IMPACT? that its policies, systems and
THE 4Es: procedures are updated and Economy, Efficiency, Effectiveness and Equity improved where needed, to ensure it is able to deliver VfM VALUE FOR MONEY Our ambition is to have VfM and is working in accordance considerations integrated into our to its VfM principles. During the financial year Trócaire existing systems and processes, • Programmatically: at developed and approved a Value therefore not duplicating work, different stages of the for Money policy together with but linking results and costs more programme cycle (whether toolkits and guidance to clarify effectively. The VfM framework it is a programme in the and embed value for money will be embedded within our global South, in Ireland or a across the organisation. Accountability Stakeholder campaign) it must integrate Framework and linked to our Trócaire’s understanding of and VfM analysis and use the monitoring, evaluation and commitment to Value for Money evidence generated to learning processes to encourage make decisions and adapt Trócaire’s understanding of VfM analysis in a more programmes. Value for Money (VfM) is systematic way. guided by our values: solidarity, The diagram above illustrates the participation, perseverance, Trócaire’s Framework and VfM framework, with the main courage and accountability. Principles of Value for Money purposes, the organisational This means that VfM in Trócaire Trócaire has adopted the framework as the enabling is a commitment to ensure renowned 4Es framework environment that sets out that impact is maximised and (Economy, Efficiency, principles, policies and systems resources managed in the most Effectiveness and Equity) according to the 4Es and, at appropriate way to enable change to communicate its VfM at the centre, the programmatic to happen. In line with the UK’s organisational level, in proposals approach to VfM, highlighting the Department for International and for reporting purposes. We key questions Trócaire aims to Development’s (DFID) definition, will also employ complementary answer at the different stages of Trócaire understands VfM as approaches when the purpose the programme cycle. ‘the maximization of each Euro is to generate learning to inform spent to improve programme strategic management decisions FINANCIAL POSITION AND participants’ lives’. We endeavour in our programmes. to have suitable policies, RESERVES POLICY procedures and tools in place to Trócaire’s VfM work is guided by It is Trócaire’s policy to maintain guide our organisational ways the three core principles: a prudent level of reserves to of working and our relationship • Ensuring that our investments enable the charity to deliver on with partners to deliver the produce the most sustainable our commitments and mandate changes we want to see which and positive change possible and to ensure that we manage account for VfM considerations within the different contexts financial, governance and throughout the organisation. that we work; operational risk. An adequate Trócaire Annual Report 2019/20 | 77 and working reserve policy Free reserves as at 29 February This showed a divergence of provides essential accountability 2020 are €20m. This is projected unrestricted income to our beneficiaries, institutional equivalent to six months of and expenditure. Unrestricted funders, public supporters, and planned expenditure for 2020/21 expenditure was projected to other stakeholders and assures based on the organisational rise above budgeted levels and them that the charity’s activities budget as approved by the board it was not clear that unrestricted are sustainable. Trócaire’s in February 2020. This meets the income targets would be met. available resources at the end trustees’ policy of holding free The projections were shared and of the year are €40m (2018/19 reserves in a range of a minimum discussed with the Audit & Risk - €44m). Of the available of five to a maximum of seven Committee and the board. A resources, €21m (2018/19 - months of planned expenditure. series of cost cutting measures €24m) is held in restricted Post-year end, consideration has were taken to reduce unrestricted funds, as the funds were been given by the board to the expenditure in the 2019/2020 donated for specific areas and potential need for a time-limited financial year. activities. Unrestricted funds of derogation to this policy to enable €19m (2018/19: €20m) are held the organisation to address the A multi-annual financial in general and designated funds. financial impact of Covid-19, by framework was developed with going below the five month floor a view to identifying the risk of • In managing its unrestricted temporarily. This is being kept structural deficits in unrestricted € reserves of 19m, the under review at board and Audit income and expenditure and to organisation has an and Risk Committee level. support short and medium-term agreed policy of holding a financial planning. This framework contingency reserve in its was used to guide the 2020/2021 Emergency Fund, to cater RESERVE TRENDS & budgeting process and to plan for emergencies and to allow FINANCIAL SUSTAINABILITY reductions in recurring costs out the organisation to respond Each year at the AGM the of unrestricted reserves, including rapidly in such circumstances. trustees review the level of voluntary redundancies. The amount in this reserve at restricted reserves to ensure In addition to the reserves 29 February 2020 is €0.5m. that funds donated or granted for position and related surplus/ • The reserve in the specific purposes are spent on a deficit projections, cash balances Development Programme timely basis. Due to the nature of are monitored closely. The most Fund stood at €17m. This will restricted reserves surpluses in significant inflows and outflows be used to fund programmes one year are usually balanced by of cash are largely predictable overseas to further the deficits in later years as surplus within the calendar cycle objectives of the organisation. funds received are spent down each year. Where necessary, over time. As such deficits in • The reserve in the General adjustments can be made to the restricted reserves such as Fund at the end of the size and frequency of partner those shown in 2018/2019 and year amounted to €1.5m, transfers in order to manage 2019/2020 do not threaten the of which €1m is invested cashflow during the low points of financial sustainability of the in fixed assets and is not this annual cycle. available for other use. organisation. Due to the control measures However, unrestricted reserves Free Reserves taken during the financial year are required to be maintained at unrestricted expenditure was As recommended by the specific levels in order to meet €22.4m, which was lower than Charities SORP (FRS 102), Trócaire’s reserves policy detailed the original budget for the year of in order to ensure that the above. As such recurring years of €23.6m. The unrestricted public organisation has access to deficits in unrestricted reserves income budget for the year was funds it is necessary to adjust could threaten the financial achieved (€21.9m), despite more unrestricted reserves by sustainability of Trócaire. pessimistic projections earlier in excluding Fixed Assets and the the year. Defined Benefit Pension Liability In August 2019 Trócaire carried out its first mid-year as valued under FRS102. It would Despite these successes in budget revision for 2019/2020 be unlikely that the organisation limiting the deficit in unrestricted focused on the first five would be able to liquidate the expenditure over income, there months of the financial year. fixed assets in a timely manner. was still a deficit for the financial 78 | Financial Review year. The budget approved by Committee and recommended to The triennial valuation was the board for 2020/2021 also the board for authorisation. The last completed on the 28 included a deficit. There is management of the organisation February 2019 and Trócaire further comment on financial will determine the level of funds have committed to an annual sustainability under the Principal and the period of investment contribution of €50k. Risks and Uncertainties section with these institutions taking into FRS102 requires that the pension of this Annual Report from pages account the day-to-day cash flow deficit should be shown as a 62 to 67. There is also comment requirements. reduction in unrestricted funds. on the post-year end emergence The investment return in the of Covid-19 as a global pandemic current year was in line with The defined benefit pension and its impact on financial expectations having factored in scheme is closed to new entrants sustainability in the Principal Risks the rates currently offered in the and all future benefits have and Uncertainties section on page market. ceased. 62 and in the post balance sheet events note on page 79. The Investment Policy is KEY PERFORMANCE reviewed by the Audit & Risk INDICATORS INVESTMENT POLICY AND Committee and recommended to PERFORMANCE the board for approval. The following are key financial performance indicators which are The objective of the Investment reported on by management as DEFINED BENEFIT PENSION Policy is to maintain high a measure of performance and liquidity while ensuring SCHEME DEFICIT financial strength. maximum security, meeting The valuation of the pension ethical standards and achieving scheme at 29 February 2020, for • Grants to partners is a the highest possible return the purposes of FRS102, showed measure of how much of our within these limiting factors. a funding deficit of €2.0m funds is spent by our partner Investments will be undertaken (2018/19: €1.3m). organisations in the field. in a manner that seeks to ensure Trócaire work with a diverse, the preservation of capital in This deficit represents the relevant portfolio of partners the overall portfolio, mitigating difference between the liabilities that can deliver innovative against credit risk, interest rate of the pension fund and the value and impactful programmes in risk, currency risk and country of its underlying assets; it does an accountable manner. risk. The interest earned is not represent an immediate cash • Support costs as a % of total applied to our work. commitment, as the cash flow expenditure shows how required to meet the €2.0m much of total expenditure The primary mechanism deficit relates to future pension is absorbed by essential for meeting the objectives contributions. The valuation of but noncore activities and is to invest in fixed interest the pension scheme’s assets functions. deposits accounts, spreading under FRS102 is different from • Return on fundraising spend the total invested and limiting the triennial actuarial valuation, is how much we get back the amount invested with any which determines the pension for every €1 invested. This individual financial institution. contributions required to reduce is total public income and These financial institutions are the deficit. can be affected (positively) reviewed by the Audit & Risk in years when a special emergency appeal occurs. • Unrestricted reserves is a AVERAGE RATE OF RETURN measure in months of how much resources Trócaire has 0.6% available to draw down on 0.3% in order to continue its work 0.2% 0.2% in the event of an economic downturn.
2019/20 2018/19 2017/18 2016/17 Trócaire Annual Report 2019/20 | 79
Grants to Partners as a % of total expenditure Support Costs as a % of total expenditure 2019/20 2018/19 2019/20 2018/19 53% 61% 8% 6%
Return on Fundraising Spend Unrestricted Reserves in months 2019/20 2018/19 2019/20 2018/19 €3.70 €4.10 6 months 6 months
With the exception of the level restructure. Further details of this throughout the world including of unrestricted reserves each restructure are set out on pages Trócaire. Trócaire, as a charitable of these financial KPIs has dis- 46 & 47 of the Annual Report. organisation, have recognised improved compared to prior years. the important role we have to Continuing cost reduction efforts Covid-19 play in this crisis. Management have put in place safety protocols and efforts to maintain income The second subsequent event levels are aimed at improving to ensure business continues was the emergence of Covid-19 these KPIs in future years. as normal whilst adhering to all as a global pandemic, where government policies in all the Government measures to deal locations Trócaire operate in FINANCIAL RESULTS OF with the pandemic, including globally. Management have also SUBSIDIARY business closures and travel instigated a cost reduction plan restrictions, were implemented In addition to the parent company, whilst maintaining all key essential from March 2020. Covid-19 is a Trócaire holds a subsidiary - services in light of the actual and non-adjusting post balance sheet Trocaire Northern Ireland. In the anticipated decrease in public and event. Further details about the 2019/20 year, Trocaire Northern institutional income in the coming impact of Covid-19 on Trócaire Ireland generated an income of year and future periods. Trócaire post year end is set out in the GBP£5.9m, had expenditure of has significant reserves to cope GBP£6.6m, with total funds of Principal Risks and Uncertainties with the reduction in income for GBP£4.8m as at the financial section of the Annual Report on the foreseeable future and will year end. The year-end position page 62. utilise these reserves to ensure of the company was satisfactory continuity of service to those that and it is expected to continue GOING CONCERN need it most. in operation for the foreseeable The consolidated financial future. statements have been prepared POLITICAL CONTRIBUTIONS on a going concern basis. As There were no political POST BALANCE SHEET disclosed in note 21, subsequent contributions which require EVENTS to the year-end Trócaire disclosure under the Electoral completed a group re-organisation Group restructure Act 1997. where the operations, assets Subsequent to the year-end, and liabilities of the Trust were st AUDITORS on 1 March 2020 Trócaire transferred to a newly established completed a group restructure Company Limited by Guarantee Deloitte Chartered Accountants where the operations, assets (CLG). The activities of Trócaire and Statutory Audit firm is eligible and liabilities of the Trust were continue to operate as a going and has expressed a willingness transferred to a newly established concern throughout this period to continue in office. Company Limited by Guarantee and subsequent to the financial (CLG). The impact of the re- year-end in the new legal entity. SIGNED ON BEHALF OF THE organisation was to incorporate TRUSTEES: the operations of Trócaire The Covid-19 global pandemic is previously operated through an unprecedented event that will Archbishop Eamon Martin the Trust. The continuity of the in some way touch everybody on Bishop William Crean charitable activities of Trócaire the planet. It has had a significant Date: 31st August 2020 was not impacted by this legal impact on all businesses 80 | Financial Review
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TRÓCAIRE Report on the audit of the financial statements
OPINION ON THE FINANCIAL BASIS FOR OPINION may cast significant doubt about the charity’s ability STATEMENTS OF TRÓCAIRE We conducted our audit in to continue to adopt the accordance with International In our opinion the consolidated going concern basis of Standards on Auditing (Ireland) financial statements: accounting for a period of at (ISAs (Ireland)) and applicable least twelve months from • give a true and fair view of law. Our responsibilities under the date when the financial the assets, liabilities and those standards are described statements are authorised financial position of the below in the “Auditor’s for issue. charity as at 29 February responsibilities for the audit 2020 and of the incoming of the financial statements” resources and application of section of our report. OTHER INFORMATION resources for the financial The trustees are responsible We are independent of the year then ended; and for the other information. The charity in accordance with the • have been properly prepared other information comprises ethical requirements that are in accordance with the the information included relevant to our audit of the relevant financial reporting in the Trustees’ Report financial statements in Ireland, framework. and Consolidated Financial including the Ethical Standard Statements for the financial year The financial statements we issued by the Irish Auditing ended 29 February 2020, other have audited comprise: and Accounting Supervisory than the financial statements Authority, and we have fulfilled and our auditor’s report thereon. • the Consolidated Statement our other ethical responsibilities of Financial Activities; Our opinion on the financial in accordance with these statements does not cover the • the Consolidated Balance requirements. We believe other information and, except to Sheet; that the audit evidence we the extent otherwise explicitly • the Consolidated Cash Flow have obtained is sufficient and stated in our report, we do not Statement; appropriate to provide a basis for express any form of assurance our opinion. • the Trust Statement of conclusion thereon. Financial Activities; CONCLUSIONS RELATING TO In connection with our audit • the Trust Balance Sheet; of the consolidated financial GOING CONCERN • the Trust Cash Flow statements, our responsibility Statement; We have nothing to report in is to read the other information • the related notes 1 to respect of the following matters and, in doing so, consider 21, including a summary in relation to which ISAs (Ireland) whether the other information of significant accounting require us to report to you is materially inconsistent policies as set out in note 1. where: with the consolidated financial statements or our The relevant financial reporting • the trustees’ use of the knowledge obtained in the framework that has been applied going concern basis of audit or otherwise appears in their preparation is the Irish accounting in preparation of to be materially misstated. law and FRS 102 “The Financial the financial statements is If we identify such material Reporting Standard applicable not appropriate; or inconsistencies or apparent in the UK and Republic of • the trustees have not material misstatements, we are Ireland” issued by the Financial disclosed in the financial required to determine whether Reporting Council (“the relevant statements any identified there is a material misstatement financial reporting framework”). material uncertainties that in the consolidated financial Trócaire Annual Report 2019/20 | 81 statements or a material AUDITOR’S • Obtain an understanding misstatement of the other RESPONSIBILITIES of internal control relevant information. If, based on the FOR THE AUDIT OF THE to the audit in order to work we have performed, we CONSOLIDATED FINANCIAL design audit procedures conclude that there is a material STATEMENTS that are appropriate in the misstatement of this other circumstances, but not for information, we are required to Our objectives are to obtain the purpose of expressing an report that fact. reasonable assurance opinion on the effectiveness about whether the financial of the charity’s internal We have nothing to report in this statements as a whole are free control. regard. from material misstatement, • Evaluate the appropriateness whether due to fraud or error, of accounting policies used RESPONSIBILITIES OF and to issue an auditor’s report and the reasonableness of TRUSTEES that includes our opinion. accounting estimates and Reasonable assurance is a As explained more fully in related disclosures made by high level of assurance, but is the Trustees’ Responsibilities the trustees. not a guarantee that an audit Statement, the trustees are conducted in accordance with • Conclude on the responsible for the preparation ISAs (Ireland) will always detect appropriateness of the of the consolidated financial a material misstatement when trustees’ use of the going statements and for being it exists. Misstatements can concern basis of accounting satisfied that they give a true arise from fraud or error and and, based on the audit and fair view, and for such evidence obtained, whether internal control as the trustees are considered material if, a material uncertainty determine is necessary individually or in the aggregate, exists related to events or to enable the preparation they could reasonably be conditions that may cast of consolidated financial expected to influence the significant doubt on the statements that are free from economic decisions of users charity’s ability to continue material misstatement, whether taken on the basis of these as a going concern. If we due to fraud or error. financial statements. conclude that a material In preparing the consolidated As part of an audit in accordance uncertainty exists, we are financial statements, the with ISAs (Ireland), we exercise required to draw attention trustees are responsible for professional judgment and in our auditor’s report to assessing the charity’s ability maintain professional scepticism the related disclosures in to continue as a going concern, throughout the audit. We also: the consolidated financial disclosing, as applicable, matters statements or, if such • Identify and assess the risks related to going concern and disclosures are inadequate, of material misstatement of using the going concern basis of to modify our opinion. Our the consolidated financial accounting unless the trustees conclusions are based on the statements, whether due either intend to liquidate the audit evidence obtained up to fraud or error, design and charity or to cease operations, or to the date of the auditor’s perform audit procedures have no realistic alternative but report. However, future responsive to those risks, to do so. events or conditions may and obtain audit evidence cause the entity (or where that is sufficient and relevant, the group) to appropriate to provide cease to continue as a going a basis for our opinion. concern. The risk of not detecting a material misstatement • Evaluate the overall resulting from fraud is presentation, structure and higher than for one resulting content of the financial from error, as fraud may statements, including the involve collusion, forgery, disclosures, and whether intentional omissions, the consolidated financial misrepresentations, or the statements represent the override of internal control. underlying transactions and 82 | Financial Review
events in a manner that MATTERS ON WHICH WE ARE achieves fair presentation. REQUIRED TO REPORT BY
• Obtain sufficient appropriate EXCEPTION audit evidence regarding the Based on the knowledge and financial information of the understanding of the charity charitable activities within the and its environment obtained group to express an opinion in the course of the audit, we on the consolidated financial have not identified material statements. The group misstatements in the trustees’ auditor is responsible for the report. direction, supervision and performance of the group We have nothing to report in audit. The group auditor respect of the provisions which remains solely responsible require us to report to you if, for the audit opinion. in our opinion, the disclosures of directors’ remuneration and We communicate with those transactions specified by law are charged with governance not made. regarding, among other matters, the planned scope and timing Kevin Sheehan of the audit and significant audit findings, including any significant For and on behalf of Deloitte deficiencies in internal control Ireland LLP that the auditor identifies during Chartered Accountants and the audit. Statutory Audit Firm This report is made solely to Deloitte & Touche House, the Trustees of Trócaire, as a Earlsfort Terrace, Dublin 2 body. Our audit work has been Date: 31 August, 2020 undertaken so that we might state to the Trustees 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 Trustees of Trócaire as a body, for our audit work, for this report, or for the opinions we have formed. Trócaire Annual Report 2019/20 | 83
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2020
Unrestricted Restricted Total Unrestricted Restricted Total Funds Funds 2020 Funds Funds 2019 Notes €’000 €’000 €’000 €’000 €’000 €’000 Income from: Donations and legacies 3.1 21,873 1,046 22,919 22,013 1,157 23,170 Charitable activities 3.2 - 40,684 40,684 - 45,830 45,830 Investment Income 3.3 48 4 52 69 5 74
TOTAL INCOME 21,921 41,734 63,655 22,082 46,992 69,074
Expenditure on: Raising funds 4 (6,160) (21) (6,181) (5,527) (2) (5,529) Charitable activities 5 (16,203) (44,934) (61,137) (16,392) (53,329) (69,721)
TOTAL EXPENDITURE (22,363) (44,955) (67,318) (21,919) (53,331) (75,250)
Net (expenditure)/income (442) (3,221) (3,663) 163 (6,339) (6,176)
Other recognised (Losses)/gains:
Exchange gain/(loss) on (22) 21 (1) 184 25 209 consolidation of subsidiary Actuarial (loss) on valuation 18 (649) - (649) (57) - (57) of retirement benefit scheme Liabilities extinguished on 18 - - - 1,084 - 1,084 settlements during the year
NET MOVEMENT IN (1,113) (3,200) (4,313) 1,374 (6,314) (4,940) FUNDS
Reconciliation of funds Fund Balances at beginning of the financial year 15/16 20,145 23,998 44,143 18,771 30,312 49,083
FUND BALANCES AT END OF THE FINANCIAL YEAR 15/16 19,032 20,798 39,830 20,145 23,998 44,143
There are no other recognised gains or losses other than those listed above and the net movement in funds for the financial year. All income and expenditure derives from continuing activities. 84 | Financial Statements
CONSOLIDATED BALANCE SHEET AS AT 29 FEBRUARY 2020
2020 2019 Notes €’000 €’000 FIXED ASSETS Tangible fixed assets 8 526 696 ______CURRENT ASSETS Stock 9 447 543 Debtors 10 32,752 33,453 Cash at bank and in hand 11 21,977 26,668 Short term investments 12 1 1 ______55,177 60,665
CREDITORS (Amounts falling due within one year) 13 (13,903) (15,871) ______NET CURRENT ASSETS 41,274 44,794
Retirement benefit scheme liability 18 (1,970) (1,347) ______TOTAL NET ASSETS 39,830 44,143 ______FUNDS OF THE CHARITY Restricted funds 15 20,798 23,998 Unrestricted funds 16 19,032 20,145 ______
TOTAL FUNDS 39,830 44,143 ______
The financial statements were approved by the Board of Trustees and signed on its behalf by Archbishop Eamon Martin Bishop William Crean
Date: 31st August 2020 Trócaire Annual Report 2019/20 | 85
CONSOLIDATED CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2020
2020 2019 Note €’000 €’000 Cash flows from operating activities Net cash used in operating activities 17 (4,742) (2,096) Cash flows from investing activities Interest received 51 74 ______Net cash from in investing activities 51 74 ______Change in cash and cash equivalents in the financial year (4,691) (2,022) ______Cash and cash equivalents at the beginning of the financial year 26,669 28,691 ______Cash and cash equivalents at the end of the financial year 21,978 26,669 ______Analysis of cash and cash equivalents: Cash at bank and in hand 21,977 26,668 Short term investments 1 1 ______Total cash and cash equivalents 21,978 26,669 ______86 | Financial Statements
TRUST STATEMENT OF FINANCIAL ACTIVITIES FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2020
Unrestricted Restricted Total Unrestricted Restricted Total Funds Funds 2020 Funds Funds 2019 Notes €’000 €’000 €’000 €’000 €’000 €’000 Income from: Donations and legacies 3.4 15,717 866 16,583 15,673 986 16,659 Charitable activities 3.5 - 40,275 40,275 - 44,905 44,905 Investment Income 3.6 41 3 44 44 5 49
TOTAL INCOME 15,758 41,144 56,902 15,717 45,896 61,613
Expenditure on: Raising funds 4 (5,018) (20) (5,038) (4,368) (3) (4,371) Charitable activities 5 (10,356) (44,331) (54,687) (10,140) (51,061) (61,201)
TOTAL EXPENDITURE (15,374) (44,351) (59,725) (14,508) (51,064) (65,572)
Net (expenditure)/income 384 (3,207) (2,823) 1,209 (5,168) (3,959)
Other recognised gains/ (losses): Actuarial (loss) on valuation of 18 (649) - (649) (57) - (57) retirement benefit scheme
Liabilities extinguished on 18 - - - 1,084 - 1,084 settlements during the year
NET MOVEMENT IN FUNDS (265) (3,207) (3,472) 2,236 (5,168) (2,932)
Reconciliation of funds Fund Balances at beginning of the financial year 15/16 13,744 23,998 37,742 11,508 29,166 40,674
FUND BALANCES AT END OF THE FINANCIAL YEAR 15/16 13,479 20,791 34,270 13,744 23,998 37,742
There are no other recognised gains or losses other than those listed above and the net movement in funds for the financial year. All income and expenditure derives from continuing activities. Trócaire Annual Report 2019/20 | 87
TRUST BALANCE SHEET AS AT 29 FEBRUARY 2020
2020 2019 Notes €’000 €’000 FIXED ASSETS Tangible fixed assets 8 280 444 ______280 444 ______CURRENT ASSETS Stock 9 447 543 Debtors 10 32,303 35,237 Cash at bank and in hand 11 17,102 18,387 Short term investments 12 1 1 ______49,853 54,168 ______
CREDITORS (Amounts falling due within one year) 13 (13,893) (15,523) ______
NET CURRENT ASSETS 35,960 38,645
Retirement benefit scheme liability 18 (1,970) (1,347) ______TOTAL NET ASSETS 34,270 37,742 ______FUNDS OF THE CHARITY Restricted funds 15 20,791 23,998
Unrestricted funds 16 13,479 13,744 ______TOTAL FUNDS 34,270 37,742 ______
The financial statements were approved by the Board of Trustees and signed on its behalf by Archbishop Eamon Martin Bishop William Crean
Date: 31st August 2020 88 | Financial Statements
TRUST CASH FLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2020
2020 2019 Note €’000 €’000 Cash flows used in operating activities Net cash used in operating activities 17 (1,329) (1,284) Cash flows from/(used in) investing activities Interest received 44 49 ______Net cash from investing activities 44 49 ______Change in cash and cash equivalents in the financial year (1,285) (1,235) ______Cash and cash equivalents at the beginning of the financial year 18,388 19,623 ______Cash and cash equivalents at the end of the financial year 17,103 18,388 ______Analysis of cash and cash equivalents: Cash at bank and on short term deposit 17,102 18,387 Short term investments 1 1 ______Total cash and cash equivalents 17,103 18,388 ______Trócaire Annual Report 2019/20 | 89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2020
1. ACCOUNTING PRINCIPLES OF income has not yet been CONSOLIDATION received, but all criteria for POLICIES recognition has been satisfied, The consolidated financial the income is accrued as a debtor The following accounting statements include a 100% in the balance sheet. policies are applied consistently consolidation of the financial in dealing with items which statements of Trócaire’s Income reflected in the financial are considered material to the subsidiary undertaking Trocaire statements includes; charity’s financial statements: (Northern Ireland). The results and balance sheet of Trocaire • Donations and Legacies: donations from the public, BASIS OF PREPARATION (Northern Ireland) have been consolidated on a line by line corporates, trusts, legacies, The financial statements have basis. No separate income major donors and related tax been prepared in accordance and expenditure account of refunds. with the Charities SORP (FRS the subsidiary undertaking has • Charitable Activities; Income 102) –Accounting and Reporting been presented, as permitted from institutional donors by Charities: Statement of by the Charities SORP (FRS which includes Governments Recommended Practice 102) –Accounting and Reporting and other agencies and applicable to charities preparing by Charities: Statement of groups. their accounts in accordance Recommended Practice • Investment income, in the with the Financial Reporting applicable to charities preparing form of bank deposits, Standard applicable in the UK their accounts in accordance with received during the year. and Republic of Ireland (FRS the Financial Reporting Standard 102) “Charities SORP (FRS applicable in the UK and Republic Donations and Legacies 102)”. of Ireland (FRS 102). Trócaire is • Monetary donations from availing of the exemption under Trócaire is a public benefit entity the public are recognised as FRS 102 (33.11) Related Party as defined by FRS 102. income when the donations Disclosures not to disclose details are received. The consolidated financial of transactions with companies statements have been prepared within the Group. • Legacy income is recognised on a going concern basis. when confirmation of Following the Trustees review The work of the organisation in unconditional entitlement to of Trócaire’s results for the year, the developing world is carried the bequest is received. the year-end financial position out through branches of the • Tax refunds are recognised and the approved 2019 budget, Trust located in the countries of when all legislative the Trustees believe that the operation. All funds held by the requirements have been charity has adequate resources branches are the legal property met and the amounts can be to continue in operational of the Trust. Expenditure, assets measured with reasonable existence for the foreseeable and liabilities are included in the certainty. future and consequently believe financial statements of the Trust. there are sufficient resources Charitable Activities to manage any operational INCOME or financial risks. There is no Grants from institutional donors material uncertainty about the Income is recognised when the are recognised when Trócaire ability to continue. organisation becomes legally is legally entitled to the income entitled to the funds, the income and is fulfilling the conditions The presentation currency of can be measured reliably and contained in the related funding these financial statements is it is probable the funds will be agreements which may be time Euro (€). All amounts in the received. or performance related. financial statements have been rounded to the nearest €1,000. Where income has been received Trócaire may be liable for any in advance, it is deferred until disallowable expenditure - no the conditions are met. Where provision or disclosure has been 90 | Financial Statements made in these accounts for benefit pension scheme is costs of advertising, producing any such liabilities because the included with unrestricted funds. publications, printing and mailing likelihood is deemed remote and fundraising material and staff immaterial. RESOURCES EXPENDED costs. Non-monetary donations All expenditure is accounted for Support Costs utilised by the organisation as on an accruals basis and has part of programmes designed, been analysed between cost Support costs are those costs implemented, and managed of raising funds and charitable which cannot be directly by Trócaire are valued and activities. attributed and have been included in income in the year in allocated in proportion to which they are received. These Resources expended can be estimated benefits received. donations are valued at the subcategorised as follows: These include costs such estimated market price at the as finance and logistics, time of receipt. Charitable Activities human resources, IT and communications, premises and Grants to partners: Grants governance costs. The support FUND ACCOUNTING are charged to the Statement costs have been allocated of Financial Activities when There are two types of funds as follows, 80% to overseas they have been approved and maintained as follows: programme, 10% to Ireland where a binding commitment programme, and 10% to raising Restricted funds represent has been made to the partner funds. This allocation ratio is the income which can only be organisation. Grants represent same as that which was used in used for particular purposes as funds made available to partners the prior year. specified by donors. and comprise either cash funds transferred to the partners Unrestricted funds are or in kind provision of goods FOREIGN CURRENCIES comprised of general funds and services procured on their and designated funds. General The consolidated financial behalf. Grants that have been funds are expendable at the statements are prepared in Euro. approved but not yet disbursed discretion of the organisation at the balance sheet date are Transactions in foreign in furtherance of the objectives carried forward as approved currencies during the financial of the charity while designated partner commitments in the year are translated at the rate of funds are a portion of the balance sheet. exchange ruling on the date of unrestricted funds that have the transaction. Foreign currency been set aside for a particular Programme costs: Those balances at the balance sheet purpose. costs, excluding grants to date are translated at the rate of partners, which can be directly Income is treated as being exchange on that date. Any gain attributed to our overseas and general and unrestricted, unless or loss arising from a change Ireland programmes. This a donor has specified the in exchange rates subsequent expenditure is primarily spent in manner in which the donation is to the date of a transaction is our countries of operation and to be spent, in which case it is included in the Statement of is focused on partner capacity treated as restricted income. Financial Activities. building, monitoring, evaluation The Board review the restricted and ensuring we maximise income funds on an annual our impact. In Ireland our PENSIONS basis. Where restricted public programme work is aimed at Trócaire operates both defined funds remain unspent three creating a greater awareness of contribution and defined benefit years following receipt and the causes of world poverty and pension schemes. the Board consider that funds injustice and how change can be exist which are surplus to achieved. Defined Contribution Scheme requirements, an appropriate Pension benefits are funded transfer can be made to Raising Funds over the employees’ period of unrestricted funds. Costs of raising funds service by way of contributions In accordance with the Charities comprise the costs incurred from the organisation and SORP (FRS 102), the defined in fundraising, including the employees. Contributions are Trócaire Annual Report 2019/20 | 91 charged to the Statement of Other long-term employee Tangible fixed assets held by Financial Activities in the year in benefits are measured at the overseas locations are not which they become payable. present value of the benefit included in the tangible fixed obligation at the reporting date. assets in the balance sheet Defined Benefit Scheme but expensed at the time The defined benefit scheme TAXATION of purchasing as part of the was closed to new members charitable expenditure. No charge to corporation on 1 September 2013. The taxation arises as the Trust has defined benefit scheme is been granted exemption under SHORT TERM INVESTMENTS administered by Trustees and Sections 207 and 208 of the Current asset investments are is independent of the charity’s Taxes Consolidation Act 1997. finances. Contributions are paid stated at market value. Irrecoverable value added tax is to the scheme in accordance expensed as incurred. with the recommendations of STOCKS independent actuaries to enable Stocks consist of relief supplies the Trustees to meet from the TANGIBLE FIXED ASSETS AND held pending distribution and are scheme the benefits accruing DEPRECIATION valued at the lower of cost and in respect of current and future Tangible fixed assets costing net realisable value. service. €3,000 or more are capitalised and stated in the balance For defined benefit schemes DEBTORS the amounts charged to sheet at cost less accumulated operating surplus are the depreciation. Depreciation is Debtors are recognised at the costs arising from employee calculated to write off the cost settlement amount due after any services rendered during the of the asset, other than freehold discount offered. Prepayments financial year and the cost of property, over its expected useful are valued at the amount prepaid plan introductions, benefit life at the following annual rates: net of any trade discounts due. Debtors and prepayments in changes, settlements and • Leasehold property countries of operation comprise curtailments. They are included Over term of lease as part of staff costs. The net balances arising from programme interest cost on the net defined • Freehold and long leasehold activities. Income recognised benefit liability is charged property by the Group from institutional to income and expenditure. 2% straight line method funders, but not yet received at year end, is included in debtors. Re-measurement comprising • Computer installation actuarial gains and losses and 33.3% straight line method the return on scheme assets CASH AT BANK AND IN HAND • Fixtures, fittings and (excluding amounts included equipment in net interest on the net Cash at bank and in hand is 12.5% reducing balance defined benefit liability) are comprised of cash on deposit at method recognised immediately in other banks requiring less than three months’ notice of withdrawal. comprehensive income. • Motor vehicles 20% reducing balance These are carried at amortised Defined benefit schemes are method cost. funded, with the assets of the scheme held separately The Board reviews the estimates CREDITORS from those of the charity, in of useful lives and residual separate Trustee administered values regularly, based on Creditors and provisions are funds. Pension scheme assets prices prevailing at the time of recognised where the Group are measured at fair value acquisition and based on their has a present obligation and liabilities are measured estimates. The carrying values of resulting from a past event on an actuarial basis using the tangible fixed assets and Freehold that will probably result in the projected unit credit method. property are reviewed annually for transfer of funds to a third party Actuarial valuations are obtained impairment in periods if events or and the amount due to settle at least triennially and are changes in circumstances indicate the obligation can be reliably updated at each balance sheet the carrying value may not be measured or estimated. Creditors date. recoverable. and provisions are normally 92 | Financial Statements recognised at their settlement Financial assets are recognised to accounting estimates are amount after allowing for when and only when a) the recognised in the period in which any trade discounts due and contractual rights to the cash the estimate is revised if the at their present value where flows from the financial asset revision affects only that period the time value of money is expire or are settled, b) the or in the period of the revision deemed significant. Creditors in entity transfers to another party and future periods if the revision countries of operation comprise substantially all of the risks and affects both current and future accruals and trade payables rewards of ownership of the periods. arising from programme financial asset, or c) the entity, The following are the critical activities. Funds already despite having retained some, judgements and estimations that received from institutional but not all, significant risks and the Board of Trustees have made donors that do not meet the rewards of ownership, has in the process of applying the criteria for recognition as transferred control of the asset organisation’s accounting policies income, are shown in creditors. to another party. and that have the most significant Financial liabilities are recognised effect on the amounts recognised FINANCIAL INSTRUMENTS only when the obligation in the financial statements: specified in the contract is Financial assets and financial discharged, cancelled or expires. liabilities are recognised when DEFINED BENEFIT PENSION the entity becomes a party to SCHEME the contractual provisions of the OPERATING LEASE The organisation has a defined instrument. Financial liabilities Rentals applicable to operating benefit pension scheme in are classified according to the leases where substantially all the operation for certain employees. substance of the contractual benefits and risks of ownership There are estimates with respect arrangements entered into. remain with the lessor are to certain key assumptions made charged to the Statement of All financial assets and liabilities in calculating the actuarial liability Financial Activities (SOFA). are initially measured at relating to the scheme including transaction price (including the discount rate, inflation and transaction costs), except for mortality rates, as disclosed those financial assets classified 2. CRITICAL in note 18 to the financial statements. as at fair value through profit ACCOUNTING or loss, which are initially measured at fair value (normally JUDGEMENTS PROVISIONS the transaction price excluding AND KEY SOURCES Trócaire’s activities encompass transaction costs), unless OF ESTIMATION many foreign territories which the arrangement constitutes can be subject to in-country a financing transaction. If UNCERTAINTY assessment locally in respect of an arrangement constitutes In the application of the entity’s employment taxes and related a financing transaction, the accounting policies, which are obligations. The Trustees review financial asset or financial described in note 1, the Trustees in-country potential liabilities liability is measured at the are required to make judgements, and where necessary take present value of the future estimates and assumptions about professional advice, and make payments discounted at a the carrying amounts of assets appropriate provision where market rate of interest for a and liabilities that are not readily required. similar instrument. apparent from other sources. The estimates and associated Financial assets and liabilities assumptions are based on are only offset in the balance historical experience and other sheet when, and only when factors that are considered to be there exists a legally enforceable relevant. Actual results may differ right to set off the recognised from these estimates. amounts and the entity intends either to settle on a net basis, The estimates and underlying or to realise the asset and settle assumptions are reviewed on the liability simultaneously. an ongoing basis. Revisions Trócaire Annual Report 2019/20 | 93
3. INCOME
Group: Unrestricted Restricted Total Unrestricted Restricted Total Funds Funds 2020 Funds Funds 2019 €’000 €’000 €’000 €’000 €’000 €’000
3.1 DONATIONS AND LEGACIES
General Donations & Legacies 9,105 454 9,559 10,024 669 10,693 Lenten Campaign 8,343 - 8,343 7,575 - 7,575 Committed Giving 4,425 - 4,425 4,414 - 4,414 Special Appeals - 592 592 - 488 488 ______Total Donations and Legacies 21,873 1,046 22,919 22,013 1,157 23,170 ______
3.2 CHARITABLE ACTIVITIES
Contributions from Governments and similar bodies:
Irish Aid - 21,706 21,706 - 21,452 21,452 EU & ECHO - 2,654 2,654 - 4,196 4,196 Swedish Government, SIDA - 2,153 2,153 - 1,788 1,788 Australian Aid - 437 437 - 1,541 1,541 UN Agencies - 1,600 1,600 - 1,633 1,633 UK Government, DFID - 815 815 - 1,185 1,185 US Aid - 198 198 - 211 211
______- 29,563 29,563 - 32,006 32,006 ______Contributions from Caritas agencies: SCIAF (Scotland) - 2,333 2,333 - 2,638 2,638 Caritas Germany - 1,339 1,339 - 1,837 1,837 Caritas Relief Services (USA) - 1,185 1,185 - 615 615 Caritas France - 250 250 - 280 280 Misereor (Germany) - 176 176 - 657 657 Development & Peace (Can) - 32 32 - 53 53 Caritas Rwanda - 2 2 - - - Caritas Australia - 1 1 - 70 70 Secour Catholique (France) - (19) (19) - (80) (80) Cafod (England and Wales) - - - - 137 137 Caritas Austria - - - - 80 80 Caritas Spain - - - - 50 50 Caritas Belgium - - - - 50 50 Cordaid The Netherlands - - - - 44 44 Caritas Italy - - - - 20 20 Caritas Japan - - - - 4 4 Caritas Switzerland - - - - (244) (244) ______- 5,299 5,299 - 6,211 6,211 ______94 | Financial Statements
3.2 CHARITABLE ACTIVITIES (CONTINUED)
Unrestricted Restricted Total Unrestricted Restricted Total Funds Funds 2020 Funds Funds 2019 €’000 €’000 €’000 €’000 €’000 €’000
Contributions from agencies and groups:
PSI (DFID) - 2,239 2,239 - 1,921 1,921 TRACE - 1,090 1,090 - 1,158 1,158 Start Fund - 773 773 - 68 68 Canadian Food & Grain Bank - 453 453 - 424 424 Oxfam - 437 437 - 361 361 child welfare organisation of the catholic church in Germany - 300 300 - 160 160 Bisschoppelijke Vastenaktie - 150 150 - 60 60 Kenneally Int’l Foundation - 91 91 - 87 87 Porticus Foundation - 50 50 - - - Electric Aid - 46 46 - 34 34 Bank of Ireland - 45 45 - 46 46 State of Guernsey OAC - 44 44 - 45 45 Franciscan Sisters of Mary - 44 44 - - - Drivers of Food Choice - 28 28 - 9 9 ISHIARA Partnership Dam Project - Waterford Parish - 25 25 - - - IRF - 18 18 - 2,180 2,180 The Save the Children Fund - 13 13 - - - World Health Organisation - 12 12 - - - Human Dignity Foundation - 8 8 - 277 277 International Land Coalition - 4 4 - 57 57 ASB Deutschland - (1) (1) - 553 553 Danida - (2) (2) - - - Dreams - (20) (20) - 25 25 Palladium - (25) (25) - - - Lifes2good Foundation - - - - 100 100 Community Foundation Ireland - - - - 82 82 Danish Refugee Council - - - - 2 2 DGF - - - - (2) (2) MCA - Honduras - - - - (34) (34) ______- 5,822 5,822 - 7,613 7,613 ______
______Total Charitable Activites - 40,684 40,684 - 45,830 45,830 ______
3.3 INVESTMENT INCOME
Interest Receivable 48 4 52 69 5 74 ______TOTAL INCOME 21,921 41,734 63,655 22,082 46,992 69,074 ______Trócaire Annual Report 2019/20 | 95
Trust: Unrestricted Restricted Total Unrestricted Restricted Total Funds Funds 2020 Funds Funds 2019 €’000 €’000 €’000 €’000 €’000 €’000
3.4 DONATIONS AND LEGACIES
General Donations & 6,845 427 7,272 7,417 622 8,039 Legacies Lenten Campaign 5,524 - 5,524 4,889 - 4,889 Committed Giving 3,348 - 3,348 3,367 - 3,367 Special Appeals - 439 439 - 364 364 ______Total Donations and 15,717 866 16,583 15,673 986 16,659 Legacies ______
3.5 CHARITABLE ACTIVITIES
Governments and similar - 29,197 29,197 - 31,126 31,126 bodies: Caritas agencies - 5,298 5,298 - 6,211 6,211 Agencies and groups: - 5,780 5,780 - 7,568 7,568 ______Total Charitable Activities - 40,275 40,275 - 44,905 44,905 ______
3.6 INVESTMENT INCOME
Total Investment Income 41 3 44 44 5 49 ______TOTAL INCOME 15,758 41,144 56,902 15,717 45,896 61,613 ______96 | Financial Statements
4. RAISING FUNDS EXPENDITURE
GOAL 8: INCREASED SCALE AND INCOME
Unrestricted Restricted Total Total Group: Funds Funds 2020 2019 €’000 €’000 €’000 €’000
Cost of generating donations and legacies 4,185 - 4,185 3,473 Cost of generating Lenten Campaign 1,028 - 1,028 1,208 Cost of generating Committed Giving 362 - 362 361 Cost of generating Special Appeals 70 19 89 - Support Costs (Note 6.1) 515 2 517 487 ______6,160 21 6,181 5,529 ______
Unrestricted Restricted Total Total Trust: Funds Funds 2020 2019 €’000 €’000 €’000 €’000 Cost of generating donations and legacies 3,072 - 3,072 2,685 Cost of generating Lenten Campaign 1,028 - 1,028 941 Cost of generating Committed Giving 362 - 362 279 Cost of generating Special Appeals 70 19 89 - Support Costs (Note 6.1) 486 1 487 466 ______5,018 20 5,038 4,371 ______
Raising funds expenditure is comprised of the costs incurred in fundraising. These include the costs of advertising, producing publications, printing and mailing fundraising material, staff costs in these areas, and an appropriate allocation of support cost. Trócaire Annual Report 2019/20 | 97
5. CHARITABLE ACTIVITIES EXPENDITURE
Programme Support Total Total Group: Grants Costs Costs 2020 2019 €’000 €’000 €’000 €’000 €’000 Overseas Programme
Strategic Plan 2016-2020 Goal 1: Human rights and democratic space 2,227 1,166 256 3,649 4,966 Goal 2: Equitable access to & use of resources 8,733 5,781 1,059 15,573 19,338 Goal 3: Women’s empowerment 6,953 4,942 849 12,744 17,189 Goal 4: Protection of dignity in humanitarian crises 17,397 6,305 1,935 25,637 24,832 International projects 364 153 40 557 718 ______35,674 18,347 4,139 58,160 67,043 ______
Ireland Programme Goal 5: People and leaders in Ireland are acting for a just world 173 2,287 517 2,977 2,678 ______35,847 20,634 4,656 61,137 69,721 ______
Unrestricted Restricted Total Total Group: Funds Funds 2020 2019 €’000 €’000 €’000 €’000 Overseas programme (Goals 1-4) 13,228 44,932 58,160 67,043 Ireland programme (Goal 5) 2,975 2 2,977 2,678 ______16,203 44,934 61,137 69,721 ______
Expenditure on charitable activities is analysed as shown above.
Further analysis of our overseas programme (by country) can be seen in Appendix 1 and a list of our 50 largest partner grants can be seen in Appendix 2. (Appendices are not covered by the audit report). 98 | Financial Statements
5. CHARITABLE ACTIVITIES EXPENDITURE (CONTINUED)
Programme Support Total Total Trust: Grants Costs Costs 2020 2019 €’000 €’000 €’000 €’000 €’000
Goals 1-4: Overseas programme 30,739 17,510 3,897 52,146 58,956
Goal 5: Ireland programme 173 1,881 487 2,541 2,245 ______30,912 19,391 4,384 54,687 61,201 ______
Unrestricted Restricted Total Total Trust: Funds Funds 2020 2019 €’000 €’000 €’000 €’000 Overseas programme (Goals 1-4) 7,817 44,329 52,146 58,956 Ireland programme (Goal 5) 2,539 2 2,541 2,245 ______10,356 44,331 54,687 61,201 ______Trócaire Annual Report 2019/20 | 99
6. SUPPORT COSTS
6.1 SUPPORT COSTS Group Trust 2020 2019 2020 2019 €’000 €’000 €’000 €’000
Human resources, safeguarding, learning and development 1,340 1,262 1,340 1,262 Information communications and technology 1,091 1,026 1,091 1,026 Premises and facilities 996 1,022 789 831 Finance 595 609 595 609 Governance (see note 6.2) 592 586 571 565 Standards and Compliance 559 369 485 369 ______5,173 4,874 4,871 4,662 ______
Support costs which cannot be directly attributed have been allocated in proportion to estimated benefits received and are apportioned as follows:
• 80% to the Overseas programme (Goals 1-4) • 10% to Ireland programme (Goal 5) • 10% to Raising funds (Goal 8)
Group Trust Analysed as follows: 2020 2019 2020 2019 €’000 €’000 €’000 €’000
Overseas programme (Goals 1-4) 4,139 3,900 3,897 3,730 Raising funds (Goal 8) 517 487 487 466 Ireland programme (Goal 5) 517 487 487 466 ______5,173 4,874 4,871 4,662 ______
6.2 GOVERNANCE COSTS Group Trust 2020 2019 2020 2019 €’000 €’000 €’000 €’000
Strategic management and directorate 401 388 393 383 Internal audit 137 141 137 141 Statutory audit fee* 54 57 41 41 ______592 586 571 565 ______
* In the current and prior financial year our auditors provided an external audit service only. 100 | Financial Statements
7. STAFF COSTS
The average number of employees in Ireland and overseas during the financial year was 471 (2019: 483).
Group Trust The full staff profile is as follows: 2020 2019 2020 2019 Numbers Numbers Numbers Numbers Staff engaged in: Overseas programme 366 382 366 379 Management and support staff in Ireland 41 39 38 37 Ireland programme 37 34 31 28 Raising funds 27 28 22 23 ______471 483 457 467 ______
Group Trust The aggregate amounts paid to or on behalf of staff are as follows: 2020 2019 2020 2019 €’000 €’000 €’000 €’000 Salaries 13,689 12,673 13,214 12,120 Employer’s social security contributions 1,023 947 979 900 Employer’s pension contributions – Defined Contribution Scheme 957 850 913 805 Redundancy Costs 724 72 658 72 Employer’s pension contributions -– Defined Benefit Scheme 24 47 24 47 ______16,417 14,589 15,788 13,944 ______
The Trustees and members of the Board do not receive remuneration for their services as Trustees and members of the Board. Directly incurred expenses are reimbursed, if claimed, and amounted to €741 (2019: € nil). During the year a voluntary redundancy scheme was made available to employees as part of a cost management programme. This resulted in the redundancy costs above in year. The number of employees whose total employee benefits (excluding employer social security contributions and pension costs) was greater than €60,000 is as follows:
Group Trust Salary Range 2020 2019 2020 2019 Numbers Numbers Numbers Numbers €60,000 to €70,000 20 12 18 11 €70,001 to €80,000 4 5 4 5 €80,001 to €90,000 3 6 3 6 €90,001 to €100,000 3 2 3 2 €100,001 to €110,000 1 1 1 1 €120,001 to €130,000 1 - 1 - ______32 26 30 25 ______Trócaire Annual Report 2019/20 | 101
7. STAFF COSTS (CONTINUED)
The defined benefit pension of all staff below the Chief The Executive Leadership scheme was closed to new Executive Officer. The Executive Team (which is considered key entrants and accrual of benefits Leadership Team have set management) remuneration, ceased with effect from 1 Trócaire’s market reference point including employers’ social September 2013. A revised to construct pay ranges and to security and pension defined contribution scheme benchmark remuneration around contributions, is €827,766 was established with standard the median of the market having (2019: €857,273). employer contributions of 8-14% regard to similar employment dependent on age. in the NGO sector as well as general business/public service The Organisation and Human sectors where appropriate. Pay Resource Committee has the and conditions of the Chief responsibility for approval and Executive Officer are approved monitoring of the organisation’s by the Remuneration Committee compensation strategy, its compensation framework, salary Chief Executive Officer Caoimhe management processes and de Barra is paid a salary of benchmarking mechanisms €125,000 per annum and is to determine pay and benefits a member of the company including pension arrangements pension scheme. 102 | Financial Statements
8. FIXED ASSETS
Group: Fixtures, Software fittings and Computer Freehold Leasehold equipment installation property property Total €’000 €’000 €’000 €’000 €’000 COST: Balance at 1 March 2019 312 1,859 263 444 2,878 Exchange difference 6 - - - 6 Disposals - (14) - - (14) ______
Balance at 29 February 2020 318 1,845 263 444 2,870 ______DEPRECIATION: Balance at 1 March 2019 276 1,705 10 191 2,182 Charge for year 5 154 5 5 169 Exchange difference 5 - - 2 7 Disposals - (14) - - (14) ______Balance at 29 February 2020 286 1,845 15 198 2,344 ______Net Book Value Balance at 1 March 2019 36 154 253 253 696 ______Balance at 29 February 2020 32 - 248 246 526 ______
• Leasehold properties: The properties are located at 50 King Street, Belfast and 9 Cook Street, Cork.
• Freehold property: Located at 12 Cathedral Street, Dublin 1.
Trócaire Annual Report 2019/20 | 103
8. FIXED ASSETS (CONTINUED)
Trust: Fixtures, Software fittings and Computer Freehold Leasehold equipment installation property property Total €’000 €’000 €’000 €’000 €’000 COST: Balance at 1 March 2019 117 1,848 263 6 2,234 Disposals - (14) - - (14) ______Balance at 29 February 2020 117 1,834 263 6 2,220 ______DEPRECIATION: Balance at 1 March 2019 81 1,694 10 5 1,790 Charge for year 5 154 5 - 164 Disposals - (14) - - (14) ______Balance at 29 February 2020 86 1,834 15 5 1,940 ______Net Book Value Balance at 1 March 2019 36 154 253 1 444 ______Balance at 29 February 2020 31 - 248 1 280 ______
• Leasehold properties: The property is located at 9 Cook Street, Cork.
• Freehold property: Located at 12 Cathedral Street, Dublin 1. 104 | Financial Statements
9. STOCK
Group Trust 2020 2019 2020 2019 €’000 €’000 €’000 €’000
Value at 29 February 2020 447 543 447 543 ______
Stocks consist of relief supplies held pending distribution and are valued at the lower of cost and net realisable value.
10. DEBTORS
Group Trust 2020 2019 2020 2019 €’000 €’000 €’000 €’000 Amounts falling due within one year: Amounts due from subsidiary undertaking: Trocaire (Northern Ireland) - - - 2,881 Donor income accrued 29,739 30,401 29,432 29,589 Taxation refundable 1,483 1,520 1,352 1,296 Other debtors/prepayments 1,075 1,016 1,065 959 Advertising prepaid 451 512 451 512 Deposit income accrued 4 4 3 - ______32,752 33,453 32,303 35,237 ______
Group figures include donor income accrued of €0.8m (2019: €0.5m) relating to legacies and €28.8m (2019: €29.9m) due from institutional funders. Included in the institutional funders income accrued is Irish Aid Programme Funding and Irish Aid Humanitarian Programme Funding of €20.6m (2019: €20.6m).
Advertising prepaid of €0.5m (2019: €0.5m) relates to the Lenten fundraising campaign. Trócaire Annual Report 2019/20 | 105
11. CASH AT BANK AND IN HAND
Group Trust 2020 2019 2020 2019 €’000 €’000 €’000 €’000 Funds held in:
Parent Company 10,373 10,230 10,373 10,230 Trocaire Northern Ireland 4,875 8,281 - - Countries of operation 6,729 8,157 6,729 8,157 ______21,977 26,668 17,102 18,387 ______
12. SHORT TERM INVESTMENTS
Group Trust 2020 2019 2020 2019 €’000 €’000 €’000 €’000 Amounts falling due within one year: Market value at 1 March 2019 and at 29 February 2020 1 1 1 1 ______Historical Cost 1 1 1 1 ______
The short-term investments held by Trócaire are Prize Bonds (State Savings) donated by a supporter. 106 | Financial Statements
13. CREDITORS
Group Trust 2020 2019 2020 2019 €’000 €’000 €’000 €’000 Amounts falling due within one year: Amounts due to subsidiary undertaking: Trocaire (Northern Ireland) - - 519 - Approved partner commitments 9,405 11,632 9,405 11,632 Accruals 2,814 1,965 2,296 1,632 Donor income deferred 752 1,226 752 1,226 Trade creditors 674 583 672 583 Payroll taxes 258 465 249 450 ______13,903 15,871 13,893 15,523 ______
Approved partner commitments Grants are charged to the Statement of Financial Activities when they have been approved and where a binding commitment has been made to the partner organisation. Grants represent funds made available to partners and comprise either cash funds transferred to the partners or in-kind provision of goods and services procured on their behalf. Grants that have been approved but not yet disbursed at the balance sheet date are carried forward as approved partner commitments in the balance sheet.
Donor income deferred Income is deferred when it is received ahead of income recognition criteria being met.
14. ANALYSIS OF NET CURRENT ASSETS BETWEEN FUNDS
Unrestricted Restricted Total Total Funds Funds 2020 2019 €’000 €’000 €’000 €’000 Net current assets, after retirement benefit scheme deficit 18,506 20,798 39,304 43,447 Tangible fixed assets 526 - 526 696 ______Fund balances at end of financial year 19,032 20,798 39,830 44,143 ______
In the opinion of the Trustees, sufficient resources are held in an appropriate form to enable each fund to be applied in accordance with the restrictions imposed. The majority of funds are held in short term cash deposits to enable the charity to respond rapidly to unforeseen emergency situations. Trócaire Annual Report 2019/20 | 107
15. RESTRICTED FUNDS
Group: Balance at Balance beginning Incoming Resources at end of of year Resources Expended year €’000 €’000 €’000 €’000
Institutional funding and donor advised funds 22,678 41,142 (43,579) 20,241
Specific Funds: Syria and refugee crisis 1,272 70 (786) 556 Cyclone Idai - 429 (428) 1 Indonesia 25 - (25) - East Africa Appeal 12 1 (13) - Rohingya refugee crisis 11 - (11) - Yemen - 51 (51) - Occupied Palestinian Territory - 27 (27) - South Sudan - 13 (13) - Somalia - 1 (1) - ______23,998 41,734 (44,934) 20,798 ______Trust: Institutional funding and donor advised funds 22,684 40,705 (43,155) 20,234 Specific funds 1,314 439 (1,196) 557 ______23,998 41,144 (44,351) 20,791 ______
The balances on the restricted funds represent amounts received from donors for specified purposes in response to specific appeals, which have not been expended at the balance sheet date. The balance on specified funds will be spent on relief and recovery. 108 | Financial Statements
16. UNRESTRICTED FUNDS
Group: Balance at beginning Incoming Resources Balance at of year Resources Expended end of year €’000 €’000 €’000 €’000 Designated Funds: Development Programme 18,228 21,921 (23,034) 17,115 Emergency 467 - - 467 ______18,695 21,921 (23,034) 17,998
General Fund 1,450 - - 1,450 ______20,145 21,921 (23,034) 19,032 ______Trust: Designated Funds 12,294 15,758 (16,023) 12,029 General Fund 1,450 - - 1,450 ______13,744 15,758 (16,023) 13,479 ______
(a) Development Programme Fund The Development Programme Fund is used to support relief and development programmes overseas, in partnership with local communities.
(b) Emergency Fund The Emergency Fund is set aside out of general income to enable Trócaire to react in the event of a disaster or emergency for which resources may not be otherwise available.
Resources expended include the exchange difference arising on consolidation of subsidiary and the actuarial movement on the valuation of the defined benefit pension scheme as per the SOFA. Trócaire Annual Report 2019/20 | 109
17. RECONCILIATION OF CHANGES IN RESOURCES TO CASH FLOW FROM OPERATING ACTIVITIES
Group: 2020 2019 €’000 €’000 Adjusted for: Net expenditure for the financial year (as per SOFA) (3,663) (6,176) Depreciation 169 172 Loss on disposal of fixed assets - 5 Decrease/(Increase) in stock 96 (219) Defined Benefit Pension Scheme costs 24 47 Defined Benefit Pension Scheme contribution (50) (250) Interest and investment income receivable (51) (74) Decrease/(Increase) in debtors 701 (2,115) (Decrease)/Increase in creditors (1,968) 6,311 Exchange Gain - 203 ______Net cash used in charitable activities (4,742) (2,096) ______
Trust: 2020 2019 €’000 €’000 Adjusted for: Net expenditure for the financial year (as per SOFA) (2,823) (3,959) Depreciation 164 166 Loss on disposal of fixed assets - 5 Increase in stock 96 (219) Defined Benefit Pension Scheme costs 24 47 Defined Benefit Pension Scheme contribution (50) (250) Net movement with group undertakings 3,400 (1,265) Interest and investment income receivable (44) (49) Decrease/(Increase) in debtors 53 (1,783) (Decrease)/Increase in creditors (2,149) 6,023 ______Net cash used in charitable activities (1,329) (1,284) ______110 | Financial Statements
18. RETIREMENT BENEFIT SCHEMES
Defined contribution schemes The Trust operates a defined contribution retirement benefit scheme for all qualifying employees of Trócaire. The total expense charged to the statement of financial activities in the year ended 29 February 2020 was €€0.9m (2019: €0.8m).
Defined benefit schemes Following an in-depth review of the defined benefit scheme, the Trustees approved the closure of the scheme to new entrants and that all future benefits would cease. This came into effect on st1 September 2013. A revised defined contribution scheme was established with employer contributions of 8-14% dependent on age.
The most recent actuarial valuations of scheme assets and the present value of the defined benefit obligation were carried out at 28 February 2018 by Mr Shane Wall, of Joseph G. Byrne Sons Consulting Actuaries Limited, who is a Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were all measured using the projected unit credit method.
Valuation at 2020 2019 Key assumptions used: Discount rate 1.00% 1.80% Future pension increase for service prior to 1 May 2007 5.00% 5.00% Future pension increase for service after 1 May 2007 3.00% 3.00% Inflation 1.00% 1.50%
Demographic assumptions: The key demographic assumptions used to calculate the retirement benefit liabilities under FRS102 at the beginning and end of the period were:
Valuation at 2020 2019 Years Years Retiring today: Males 23.5 23.4 Females 24.2 24.1 Retiring in 20 years: Males 25.7 25.6 Females 26.2 26.1 Trócaire Annual Report 2019/20 | 111
18. RETIREMENT BENEFIT SCHEMES (CONTINUED)
Amounts recognised in the Group and Trust’s Statement of Financial Activities in respect of the defined benefit scheme is as follows:
2020 2019 € ’000 € ’000
Net interest cost (24) (47) ______(24) (47) ______
Amounts recognised in the Group and Trust’s other recognised (losses)/gains within the Statement of Financial Activities in respect of the defined benefit scheme is as follows:
2020 2019 € ‘000 € ‘000 Actuarial loss (1,644) (45) Return on plan assets (excluding amounts included in net interest costs) 995 (12) ______(649) (57) ______Total loss relating to defined benefit scheme (673) (104) ______
The amount included in the Group and Trust’s Balance Sheet arising from the Group and Trust’s obligations in respect of its defined benefit retirement benefit schemes is as follows:
2020 2019 € ‘000 € ‘000 Present value of defined benefit obligations (11,233) (9,470) Fair value of scheme assets 9,263 8,123 ______Net liability recognised in the balance sheet (1,970) (1,347) ______
Movements in the present value of defined benefit obligations were as follows:
2020 2019 € ‘000 € ‘000 At 1 March 9,470 14,637 Interest cost 170 255 Actuarial loss 1,644 45 Benefits paid (51) (4,383) Liabilities extinguished on settlements - (1,084) ______At 29 February 11,233 9,470 ______112 | Financial Statements
18. RETIREMENT BENEFIT SCHEMES (CONTINUED)
Movements in the fair value of scheme assets were as follows:
2020 2019 € ‘000 € ‘000
At 1 March 8,123 12,060 Interest income 146 208 Return on plan assets (excluding amounts included in net interest cost) 995 (12) Contributions from the employer 50 250 Benefits paid (51) (4,383) ______At 29 February 9,263 8,123 ______
The analysis of the scheme assets at the balance sheet date was as follows:
2020 2019 % % Fair value of assets Equity instruments 37.1 37.5 Debt instruments 62.9 55.2 Other Assets 0.0 7.3
19. LEASE COMMITMENTS
Total future minimum lease payments under non-cancellable operating leases as follows:
2020 2019 €’000 €’000 Leasehold premises: Within one year 416 416 Between one and five years 1,534 1,586 After five years 1,596 1,960
______3,546 3,962 ______Trócaire Annual Report 2019/20 | 113
20. FINANCIAL INSTRUMENTS
The carrying value of the group’s financial assets and liabilities are summarised by category below:-
Group: 2020 2019 €’000 €’000 Financial Assets Measured at undiscounted amount receivable Donor income accrued 29,740 30,401 Other debtors 310 230 Deposit income accrued 4 2 ______
Trust: 2020 2019 €’000 €’000 Financial Assets Measured at undiscounted amount receivable Donor income accrued 29,432 29,589 Amounts due from subsidiary undertaking - 2,881 Other debtors 279 172 Deposit income accrued 3 - ______114 | Financial Statements
20. FINANCIAL INSTRUMENTS (CONTINUED)
Group: 2020 2019 €’000 €’000 Financial Liabilities
Measured at undiscounted amount payable
Approved partner commitments 9,405 11,632 Trade creditors and accruals 3,490 2,548 Donor income deferred 752 1,226 ______
Trust: 2020 2019 €’000 €’000 Financial Liabilities
Measured at undiscounted amount payable
Approved partner commitments 9,405 11,632 Trade creditors and accruals 2,968 2,215 Donor income deferred 752 1,226 Amounts due to subsidiary undertaking 519 - ______
21. SUBSEQUENT EVENTS
Group restructure Subsequent to the year-end on 1 March 2020, Trócaire completed a group restructure where the operations, assets and liabilities of the Trust were transferred to a newly established Company Limited by Guarantee (CLG). The impact of the re-organisation was to incorporate the operations of Trócaire previously operated through the Trust. The continuity of the charitable activities of Trócaire was not impacted by this legal restructure. Further details of this restructure are set out on page 46 & 47 of the Annual Report.
Covid 19 The second subsequent event was the emergence of Covid-19 as a global pandemic, where Government measures to deal with the pandemic, including business closures and travel restrictions were implemented from March 2020. Covid 19 is a non-adjusting post balance sheet event. Further details about the impact of Covid-19 on Trócaire post year end is set out in the Principal Risks and Uncertainties section of the Annual Report on page 63. Trócaire Annual Report 2019/20 | 115
SUPPLEMENTARY INFORMATION (NOT COVERED BY THE INDEPENDENT AUDITOR’S REPORT)
APPENDIX 1 – CHARITABLE EXPENDITURE BY COUNTRY FOR THE FINANCIAL YEAR ENDED 29 FEBRUARY 2020
The following table shows the breakdown of charitable expenditure to overseas programme. This includes grants to partners, programme activities and support costs.
2019/20 2018/19 Country €’000 €’000
1 Somalia 8,042 6,857 2 Democratic Republic of Congo 6,047 5,505 3 Malawi 5,262 4,112 4 Myanmar 5,048 6,289 5 Zimbabwe 3,945 3,786 6 Kenya 3,506 4,636 7 Ethiopia 2,769 5,145 8 Rwanda 2,783 3,462 9 Nicaragua 2,612 3,640 10 Guatemala 2,461 3,185 11 Honduras 2,390 3,770 12 Sierra Leone 2,361 2,695 13 Uganda 2,338 3,435 14 Pakistan 2,145 2,605 15 Lebanon 2,008 368 16 South Sudan 1,547 2,814 17 Sudan 1,444 799 18 Occupied Palestinian Territory 655 1,273 19 Mozambique 80 50 20 Yemen 49 250 21 Indonesia 25 48 22 India 11 30 23 Syria - 1,441 24 Greece - 30 25 Ecuador - 30 Other countries and projects 632 788 ______Total overseas programme costs 58,160 67,043 ______116 | Supplementary Information
APPENDIX 2 – TOP 50 GRANTS TO PARTNERS
Total Grants Partner Name Country €’000
1 Caritas St. Polten Pakistan 1,634
2 CAFOD South Sudan 1,013
3 Bishop Gassis Relief and Rescue Foundation South Kordofan 592
4 SAWA for Development and Aid Lebanon 535
5 Club des Volontaires pour l’Appui aux Peuples autochtones DRC 499
6 Caritas Wamba DRC 493
7 Community Initiative Facilitations Assistance - Ethiopia Ethiopia 488
8 Programme Nourriture D’Abord DRC 488
9 Zimbabwe Lawyers for Human Rights Zimbabwe 464
10 African Women Rising Uganda 428
11 Basmeh & Zeitooneh - A Lebanese Association Lebanon 416
12 KDG Myanmar 415
13 CADECOM MANGOCHI Malawi 382
14 CICOD Malawi 364
15 CADECOM ZOMBA Malawi 363
16 Karuna Mission Social Solidarity Myanmar 495
17 Churches Action in Relief and Development Malawi 331
18 Solidarite feminine pour la paix et le developpement integr DRC 317
19 Cordaid Various 315
20 Catholic Diocese of Lodwar Kenya 268
21 Thrive Gulu Uganda 253
22 Movimiento Comunal Nicaraguense - Somoto Nicaragua 251
23 Pan African Climate Justice Alliance Kenya 237
24 NAG Myanmar 233
25 Zimbabwe Peace Project Zimbabwe 232
26 Eagles Relief and Development Programme Malawi 227
27 CADEC / CARITAS Masvingo Zimbabwe 217
28 Bridging Rural Integrated Dev and Grassroot Empowerment Myanmar 215
29 Phan Tee Eain Myanmar 206
30 Caritas Mahagi DRC 206
31 Liverpool VCT Care & Treatment Kenya 204
32 Cadre D’Appui pour la Recherche des Solutions DRC 203 33 Adigrat Diocesan Catholic Secretariat - Mekelle Ethiopia 199 Trócaire Annual Report 2019/20 | 117
34 DIOCESIS DE QUICHE Guatemala 195
35 Society for Women and AIDS in Malawi Malawi 194
36 Ujamaa Pamodzi Africa Malawi 185
37 Forum des Mamans de l’Ituri DRC 183
38 Womens Legal Resources Centre Malawi 175
39 CADEC / CARITAS Bulawayo Zimbabwe 168
40 Women’s Forum for Human Rights and Democracy – Sierra L eSierra Leone 168
41 NUBA RELIEF REHABILITATION AND DEVELOPMENT South Kordofan 166 ORGANIZ
42 CADECOM CHIKWAWA Malawi 166
43 CARITAS - GIKONGORO Rwanda 166
44 Asociación Octupan “Lugar de los grandes caminos” Nicaragua 163
45 Cooperativa de Ahorro y Crédito Orfilia Vázquez Nicaragua 163
46 Oromia Pastoralist Association Ethiopia 160
47 Commission Diocésaine Justice et Paix Bunia DRC 160
48 Rwanda Development Organisation Rwanda 152
49 Catholic Relief Services Malawi Malawi 148
50 Asociacion de Organismos No Gubernamentales de Hondura Honduras 144
______
16,039 ______
Other Grants to Field Partners 19,476
Other Grants to Ireland Partners 159 ______
Total Grants to Partners 35,674 ______118 | Supplementary Information
TRUSTEES AND OTHER INFORMATION
TRUSTEES OF TRÓCAIRE: Archbishop Eamon Martin (Chair) Archbishop Diarmuid Martin Archbishop Michael Neary Archbishop Kieran O’Reilly Bishop John Kirby (Retired October 2019) Bishop Noel Treanor Bishop William Crean Bishop Dermot Farrell (Appointed October 2019)
CHIEF EXECUTIVE OFFICER: Caoimhe de Barra
BOARD Bishop William Crean (Chair) Archbishop Kieran O’Reilly Harry Casey Christopher Queenan (Retired June 2019) Conall O’Caoimh Gerry Culligan Sandra Lawler Rosemary McCreery Sr. Carmel Flynn Annette Honan David Donoghue Emma Murray Karen Dillon (Appointed June 2019) Matt Walsh (Appointed June 2019)
BOARD SUB COMMITTEES
Audit & Risk Committee Karen Dillon (Chair) Christopher Queenan (Retired June 2019) Donal Flynn Yvonne Hill Fergal Power Denis Murphy John Farrelly (Appointed August 2019)
Organisation & Human Resource Committee Matt Walsh (Chair) Rosemary McCreery (Retired June 2019) Nicola McCracken David Cagney (Appointed March 2019) John Corbett (Appointed March 2019) Lorraine Kenny (Appointed March 2019) Trócaire Annual Report 2019/20 | 119
International Programmes Advisory Committee Rosemary McCreery (Chair) Conall O’Caoimh (Retired May 2019) Nata Duvvury Sr. Denise Boyle David Donoghue Harry Goddard (Appointed June 2019) Jane Anne McKenna (Appointed December 2019)
Funding & Public Engagement Committee Gerry Culligan (Chair) Ronan Morris (Retired October 2019) Bronagh Twomey Rachel Power (Retired May 2019) Sandra Lawler Annette Honan Ruairi McKiernan (Appointed April 2019) Salome Mbugua (Appointed September 2019)
Nominations Committee Rosemary McCreery (Chair) Christopher Queenan (Retired June 2019) Harry Casey Caoimhe de Barra Matt Walsh (Appointed May 2019)
EXECUTIVE LEADERSHIP TEAM:
Chief Executive Officer Caoimhe de Barra Director of International Division Sean Farrell Director of Fundraising and Marketing Gwen Dempsey Director of Public Engagement John Smith Director of Strategy, Programmes and Advocacy Finola Finnan Director of Human Resources, L & D Joseph Shannon Director of Corporate Services Michael Wickham Moriarty
PRINCIPAL OFFICE: Maynooth County Kildare
PRINCIPAL BANKERS: AIB Bank 7/12 Dame Street Dublin 2
Bank of Ireland Lower Baggot Street Dublin 2 120 | Supplementary Information
AUDITORS: Deloitte Ireland LLP Chartered Accountants & Statutory Audit Firm Deloitte & Touche House Earlsfort Terrace Dublin 2
SOLICITOR: Philip Lee 7/8 Wilton Terrace Grand Canal Dock Dublin 2
Mason Hayes & Curran South Bank House Barrow Street Dublin 4
REPUBLIC OF IRELAND CHY Number: 5883 Charities Regulatory Authority Number: 20009601
NORTHERN IRELAND Company Number: Nl021482 HMRC Number: XR10431 Charity Commission Number: NIC103321
Trócaire, Maynooth, Trócaire, Co. Kildare, Ireland 9 Cook Street, W23 NX63 Cork, T12 F583 T: +353 (0)1 629 3333 T: +353 21 427 5622 F: +353 (0)1 629 0661 E: [email protected] E: [email protected]
Trócaire, 50 King Street, Trócaire, Belfast, BT1 6AD, 12 Cathedral Street, Northern Ireland Dublin 1, D01 E2F8 T: +44 (0) 2890 808030 T: +353 1 874 3875 F: +44 (0) 2890 808031 E: [email protected] E: [email protected] www.trocaire.org