Report of the Trustees and Financial Statements · Report of the Trustees Letter from the Chair 2...

Report of the Trustees and Financial Statements

For the year ended 31 March 2015

Contents

Report of the Trustees

Letter from the Chair 2

Objectives and activities 3

Living our values 4

The numbers at a glance 6

Achievements and performance 8

Plans for the future 2015-16 22

Financial review 24

Structure, governance and management 26

Independent auditor’s report 30

Statement of financial activities 32

Balance sheet 33

Cash flow statement 34

Notes to the financial statements 35

Organisational details 52

Photography: Annie Bungeroth, Lucasz Cholewiak, Luis Eduardo Galdieri, Paul Green, Nick Harrop, Nikola Ivanovski, Sam McElwee, Louise Norton, Kieran O’Brien, Pascale Palmer, Simone Pinto, Simon Rawles, Shareef Sarhan, Sarah Smith-Pearse, St Saviour’s Primary.

Report of the Trustees

Letter from the ChairThe year has again shown the many strengths of CAFOD, working among some of the poorest people in the world. While poverty may arise through natural causes, it is all too often the result of the injustices of human conflict and politics.

I was privileged to visit CAFOD partners in two places where the poverty of the people exists precisely because of our inhumanity to each other: Cambodia and Palestine.

Cambodia still feels the impact of Pol Pot’s regime and a new generation is scarred by those years of terror. As always with CAFOD’s partners on the ground I found real determination to make progress, with communities committed to the well-being of their members and embracing opportunities provided by the generosity of CAFOD supporters. I spent a day with amputees who are helping one another. There is still a very long way to go before the extensive minefields of the war are completely cleared. A third of all casualties are children. CAFOD supports enterprises which provide work for people affected by this tragedy, and I met families who have adapted methods of farming to provide rich crops which are not only enough for their own needs but which can be traded.

Palestine seems, politically, to be at an impasse. Yet people’s lives continue. Gaza City suffered appalling damage during the brief war last summer with some urban areas completely reduced to ruins by targeted missile attacks, which left 1,700 orphans. It was particularly good to see CAFOD working alongside Islamic Relief to provide essential supplies for those made homeless and assisting in the rebuilding of schools. CAFOD’s experience in advocacy plays an important role in the Occupied Palestinian Territories in identifying breaches of international humanitarian law and promoting human rights. CAFOD also supports initiatives which build cooperation and understanding across faith communities.

This has been a difficult as well as an effective year for CAFOD. We have undertaken a wide-ranging review of our work. Changes to CAFOD’s organisational structures and roles are significant and not without pain. But they will help us shape the way we work for the next generation and reflect a deep commitment to the mandate and mission entrusted to us.

This report demonstrates the range of work that is made possible by the generosity of so many people across England and Wales. Supporters can be confident of the difference that is being made in the lives of our sisters and brothers in very practical ways. Thank you for whatever way you contribute to CAFOD’s mission - and be proud of what you help to achieve.

Rt Rev John ArnoldBishop of Salford, Chair of the Trustees

As always with CAFOD’s partners on the ground I found real determination to make progress.”

2 CAFOD Trustees Report 2014/2015

Objectives and activities

Our visionOur vision is a world transformed to reflect the Kingdom of God – a world where:

the rights and dignity of every person are respected

all have access to basic needs in life

women and men share equally in shaping their societies and our world

the gifts of creation are nurtured and shared by all for the common good

the structures that shape people’s lives are just, and enable peace.

Our missionCAFOD is the official aid agency of the Catholic Church in England and Wales, and part of the global Caritas Internationalis (CI) family. Together with our partners and the global Caritas family we:

work with poor and disadvantaged communities in the global South to overcome poverty and bring about sustainable development and wellbeing

protect lives and relieve suffering during emergencies; reduce the risks to vulnerable communities that result from conflict and natural disasters

raise awareness and understanding of the causes of poverty and injustice to inspire a commitment to lasting change

challenge those with power to adopt policies and behaviour that promote social justice and end poverty.

To fulfil this fourfold mission we raise funds and mobilise action from the Catholic community and beyond.

Our values

Our activitiesWe work in more than 40 countries worldwide; supporting over 400 partners who work with local communities in the global South. We work on behalf of the Catholic community in England and Wales who commit to building a more just and equitable world through prayer, action, giving and reflection. We are a member of Caritas Internationalis; a group of over 160 Catholic sister agencies across the world, known as ‘the helping hand of the Church’. Together we strive to eradicate poverty, to address and challenge its root causes and to empower people to bring about change for themselves. Our strategic framework, ‘Just One World 2010-2020’, sets out how we intend to make our vision a reality.

3CAFOD Trustees Report 2014/2015

Compassion

Hope

Dignity

Sustainability

Partnership

Solidarity

Stewardship

Living our values

CompassionCAFOD supporters gave £474,000 after

550 children and 1,700 adults in Gaza were killed in the July 2014 conflict

with Israel. Part of this aid has rebuilt bombed-out kindergartens.

HopeIn the Philippines we helped build typhoon-resistant houses. “When Caritas came, we knew there was hope,” says Romila, who lost her home in Typhoon Haiyan. “We will rise again.”

DignityIn Kambia, Sierra Leone, 60 trained

volunteers are providing safe and dignified burials for victims of Ebola, to give families

a chance to honour their loved ones.


SustainabilityIn Kenya a green energy project has so

far reached 200,000 people through solar powered lighting, fridges, water pumps

and purifiers.

Partnership“Our relationship with CAFOD is not

just another donor, we get solidarity, commitment and staff support.” Jorge Castro of Pastoral Social, Guatemala.

StewardshipResearch amongst Mass-going Catholics showed that 88 per cent of supporters trust us “a great deal” or “quite a lot”.

SolidarityTwenty thousand actions by individuals, schools and parishes across all Catholic dioceses were collected as part of our One Climate, One World campaign.


60.5%

24%

10%

5%

0.5%

We received £56 million

We spent £53.6 million

Our supporters in England and Wales were exceptionally generous this year, with both time and money. Donations reached £34 million, including £5 million for Lent Fast Day, matched pound for pound by the UK government. In addition, we were entrusted with a further £5.7 million to respond to emergencies such as the Ebola outbreak and the conflict in Gaza and Iraq. On behalf of all the people we reach, thank you for your support.

Donations 60.5%Government and institutions 24%Emergency appeal donations 10%Caritas 5%Interest and other income 0.5%

International development 42%Disaster relief 32.5%Fundraising and governance 12.5%Advocacy and campaigning 7.5%Development education 5.5%

Latin America and Caribbean

135 grants11 countries


The numbers at a glance

42%

12.5%

7.5%

5.5%

32.5%

Africa


Asia and Middle East


Global, policy and education

62 grants

Grants to our partners around the world


Living simply

Holy Apostles in Pimlico has been presented with the livesimply award by Dame Shirley Williams. The community supports nearly 50 different parish projects. A recycling system has been set up on church premises, and the church has swapped to low-energy light bulbs and made energy efficiency improvements. Flourishing plants show that their care for the environment. There is regular reflective work on Catholic Social Teaching and what it means to live sustainably.

Holy Apostles is a beacon of the community and demonstrates very strongly your commitment to living in solidarity with others.”

JON STRICKLIN-COUTINHO,

liveSIMPLY ASSESSOR

Achievements and performanceCAFOD’s strategic framework ‘Just One World’ sets out four aims for our work to 2020; here we report back on some of the main outcomes to date.

Aim 1Increasing power and influence so that the poorest and most disadvantaged communities are able to influence the decisions, resources and systems that affect them, and have governments, institutions and global structures that are just and accountable.

Speaking out about the environment

Outcome: We will enable a strong Catholic voice to speak out on the impact of climate change on the poorest communities, contributing to international and domestic political action to tackle climate change and its impacts.

We launched a major new campaign One Climate One World in September 2014, and the response so far has been inspirational.

Climate change is the single biggest threat to reducing poverty, since extreme weather events can throw development back by years. Our new campaign invites each of us to make personal lifestyle changes to live more sustainably, while calling on UK party leaders to protect the most vulnerable from climate change and to support the transition from polluting fossil fuels to sustainable energy.

The timing has been designed to bring climate change to the forefront of public consciousness as the world’s leaders gather to debate the issue throughout 2015. The surge of commitment to the campaign proves how important this subject is to our supporters. So far, 20,000 people have pledged personal action

20,000 people have pledged

personal action to tackle

climate change.


to tackle climate change, inspired by our campaign guide, website, media work and schools materials, as well as face to face through our hardworking regional volunteers. Action has already been taken by individual supporters from every diocese and from two thirds of all parishes.

Around 250 parishes held collective signings of our climate change petition cards. In addition, over 1,500 supporters were introduced to the campaign during 28 supporter events between July and November 2014.

In schools, 177 students and accompanying teachers have been trained on faith, poverty and climate change. Across three dioceses, 240 students were supported to debate these issues, while over 500 secondary school teachers participated in training and resource sessions, deepening their understanding of what Catholic social teaching tells us about listening to the cry of the earth and the poor.

Complementing the campaign we have been actively promoting the livesimply parish initiative which began in 2006 and is supported by 80 Catholic organisations. A further eight parishes achieved the national award this year, for putting their faith into action through living more simply, sustainably and in solidarity with the world’s poor.

CAFOD led widespread pre-election engagement of political parties, through chairmanship of the British Overseas Aid Group (BOAG) and our lead position on the steering group of the Climate Coalition, a network of over 100 UK organisations with 11 million supporters.

There was a breakthrough in cross-party commitment on climate change when in February 2015 the Climate Coalition’s Show the love campaign led to the valentine’s Day Agreement signed by the Prime Minister and the leaders of both the Labour and Liberal Democrat parties. This bound their respective party leaders to specific policy objectives around climate change. We played an integral part in this process, ensuring that discussions were held at the highest levels of Westminster to achieve coordinated action across the political parties.

Influencing global decisions

Outcome: We will successfully influence the United Nations Sustainable Development Goals agreement process, enabling the voices of our partners to be heard at national and international levels.

The Sustainable Development Goals (SDGs) are international goals that will set the blueprint for development work over the next 15 years. They will be agreed upon at a meeting at the UN in September 2015, the same year that governments come together to agree a new global deal to tackle climate change. Combined, they make 2015 a crucial moment for the future of development.

The principle of participation, as outlined in Catholic Social Teaching, is particularly important for our work on the goals. People living in poverty want and should have a say in their own future and to be ‘artisans of their own destiny’, as the papal encyclical Populorum Progressio says. Thus participation has been a focus of CAFOD’s discussions at UN level over the last three years. Papers we produced were acknowledged in UN high level meetings. The importance of participation was picked up in the UN Secretary General’s synthesis report on the post-2015 development agenda, as well as in

When I think about my children and how different their futures might be as a result of climate change, it makes me determined to do something about it.”

DAvID HAREWOOD, ACTOR AND

CAFOD AMBASSADOR


various key briefing papers and consultations prepared by the United Nations Development Programme.

We have continued to play a pivotal role in the Steering Committee of Beyond 2015, the key civil society coalition on the goals, helping produce clear positions on participatory implementation and monitoring of the new SDGs at national and local level.

To help our partners get their voices heard, we have set up a global working group of 19 Catholic sister agencies on behalf of Caritas Internationalis. Representing Africa, Asia, Latin America, North America and Europe, we met our target of at least ten of the group being involved in long-term relationships with their governments on the new Sustainable Development Goals.

Caritas Ghana, for example, presented to the Ghanaian Parliament in February, and is supporting the Ghanaian Bishops’ Conference meeting with Catholic MPs to discuss post-2015 issues in May 2015. In Zimbabwe, a multi-stakeholder partnership between government and civil society is being convened by Caritas, along with other organisations.

Helping partners speak out

Outcome: We will enable the voices of our international partners and the Church to be heard by decision-makers.

Our partners and the Church have been at the forefront of advocating for change on behalf of the poorest communities. They have been influential in a range of national and international debates of critical importance.

At a climate change conference in December 2014 in Lima, Peru, the Church took a strong role urging a deal on cutting carbon emissions, ahead of the 2015 papal encyclical on human ecology. We worked closely with our Peruvian partner CEAS (Bishops’ Social Action Commission), and with fellow Catholic development agencies CIDSE (International Cooperation for Development and Solidarity) and Caritas Internationalis to help plan a high-level meeting of bishops and government officials during the conference.

UN and state officials from key countries attended and bishops from around the world presented the experiences of their communities. In association with our sister agencies we supported bishops to produce a statement raising the moral urgency of action on climate change. This gained considerable media attention, being the first time bishops from each continent have spoken out on climate change together.

Elsewhere in Latin America, we are working with partners in Colombia to engage with their government, the UK and the UN over business and human rights. In May 2014, successful lobbying by our partner HAY in Brazil led to the removal of all large-scale farmers from the Ajarani region 22 years after it was recognised as Yanomami Indigenous Territory.

From Africa, we brought together Archbishop Edward Tamba of Freetown in Sierra Leone and officials from the UK Foreign and Commonwealth Office to discuss gender-based violence. This is just one example of many meetings we organised between British ministers, MPs and our partners from countries including the Democratic Republic of Congo, Central African Republic, Syria and Lebanon.

Our water comes from the ice. How will we live when there is no more ice?”

vILLAGERS IN LAKE PARóN, PERU,

WHERE GLACIERS ARE MELTING


Aim 2Promoting sustainable development so that the poorest and most disadvantaged communities have access to essential services and the resources they need to live sustainably, with dignity.

Accessing basic needs

Outcome: The communities we support will increase access to essential resources and these will be available equally to women, men and children.

We have far surpassed our global water programme targets. This global water programme was match funded by the UK government. The three-year results to April 2015 show:

353,787 people have improved access to clean water (target 220,000)

156,672 people have improved sanitation services (target 98,000)

We helped 25 partner organisations to build and take care of sanitation infrastructures over the period (target 16 partners).

Additionally, our partners have been urgently getting safe water and sanitation to communities in crisis in the Philippines, Gaza, South Sudan and Central African Republic amongst others.

Giving a voice to women

Enabling women to be more involved in decisions about water supply is key. In Africa alone, people spend 40 billion hours every year walking for water. Women and children usually bear this burden. Decisions on where water is accessed and how to manage water supplies can revolutionise the lives of women, freeing time to contribute in other ways. The Gender and Water initiative is now running in 17 countries, with some very positive results.

In Kenya, women on water committees are increasingly self-confident, and management of water resources is improving. “CAFOD’s partner has taught us how to look after the water and protect it from pollution,” as one female member says.

Food security

We are striving to reach our target of 95,000 households with initiatives enabling access to food. In Niger our partner CADEv (Caritas Développement Niger) has saved many lives through nutrition centres. Over the year the centres have treated over 10,000 malnourished children and 2,015 pregnant women and

We have seen a remarkable change because women are now part of the water committees.”

PARTNER EMERGENCY OFFICER,

KENYA


Bringing water sources nearer to homes has benefits far beyond the obvious. In areas where the ‘Gender through Water and Sanitation’ programme was carried out in DRC, most water points were far from villages, meaning women and girls had to walk miles. Unfortunately most

rape cases take place during these lonely journeys. The programme has brought water points closer to over 100 communities, reducing sexual violence and the fear that women feel. Time saved has also meant better school attendance for girls.

mothers of young babies. Support activities included cooking demonstrations, malnutrition screening, hygiene and breast feeding practices.

Drought-resistant seeds are supporting families in Amudat, Uganda. We funded Caritas Moroto to set up women’s groups with training on seed selection, planting and handling of crops.

In Brazil, the support our partner CPT Joao Pessoa gave to communities has ensured 400 families (aprox 1,271 people) remained on their land and are still producing agricultural products.

Building livelihoods

Outcome: More women and men in programmes supported by us will tell us they are able to make a decent living, access fair markets and meet the needs of their families.

During the year we worked on households having improved access to food and income, including many initiatives developing small enterprises. Supporting women to start businesses can be a very effective way to boost struggling families. In Ethiopia the ‘Women in Self Help’ project showed considerable progress in its second year, with 24 new women’s groups established and 59 existing groups strengthened.

In Bangladesh, we funded livelihood projects which reached approximately 7,800 people. For example, partner USS Jessore is supporting 900 farmers to grow potatoes in traditionally unseasonal periods.

Women and men affected by HIv in Kampala, Uganda are finding not only free medical help and counselling but entrepreneurship training and start-up funds through Nsambya Home Care. From grandmothers caring for extensive orphan families, to HIv positive teenagers, new skills are providing ways to make a dignified living. The project currently reaches over 12,000 people.

I’m not really sure how I would have survived without this support from Caritas Moroto. My household is now food secure.”

PAULINA CHEPOTOPOLEL, UGANDA

Life in Darfur

The Hamadia camp in Darfur hosts more than 68,000 internally displaced people, forced from their homes by conflict. CAFOD’s partner Norwegian Church Aid (NCA) are creating farming cooperatives where people work together and contribute to the rental of the land in a savings system.

Mohammed’s* village was burned down six years ago. On his co-operative plot of land, he now grows enough food for his family and earns money on top. (*Name changed on request)

In the first days when I arrived here, I had nothing. Those were dark days, not being able to provide for my family. I’m content now that my hands are busy growing food. I feel proud when I survey my crops.”

MOHAMMED, HAMADIA CAMP,

DARFUR, SUDAN


A farmer in Darfur

Helping partners grow

Outcome: Partners will increase their capacity to deliver positive change through programmes and services prioritised by them and the communities they serve.

Helping partners plan their own development is a critical part of our work. This sometimes means identifying skills we can provide, but it also involves partners sharing skills and methods with each other. Over the last year, with our support, partners have developed their skills in a variety of ways including: working with women, ensuring the safety of children, advocacy and media skills, operating safely in insecure environments, financial and strategic planning, reporting, and recruiting staff.

Water clean enough not to endanger health is critical. Our Peruvian partner Suma Marka has had a significant impact in training four CAFOD partners in Peru and Bolivia around how to develop water monitoring. As a result, these organisations are now working to help draft public policies on community participatory water monitoring. In Cambodia, CAFOD supported Srer Khmer in sharing technical skills with fellow CAFOD partner Banteay Srei to help a network of 160 farmers with home gardening, rice cultivation and small animal raising.

Accountability

We are committed to communities having more influence over project decisions. The year has brought encouraging results. In Cambodia, we supported our partner Development and Partnership in Action to increase community participation by including children and people with disabilities in the design and delivery of projects. In Central America we supported an exchange between partners in Nicaragua and Guatemala to learn from our partner, John XXIII Institute’s experience of setting up ways to deal with feedback from the communities they serve. Caritas Quiché and the Parish of Chiquimula have established ways for community members to suggest improvements to their work.

In Sudan, we helped to train our partner SIDO (the Sub-Saharan International Development Organization) on how to share information about their activities with community members and get feedback on improving their work. This led to creating information boards where people can offer ideas and comments. The training and follow up activities have been acknowledged as good practice by the Humanitarian Aid Commission.

Despite such successes, internal reviews revealed problems with the accuracy of data from our accountability monitoring tools and systems. We are now addressing them by improving processes for collecting information. An independent evaluation has also been commissioned so we can better understand and demonstrate how we have contributed to improving accountability to communities.

Through our roles on the boards of People in Aid and the Humanitarian Accountability Partnership (HAP), we played a key role in bringing together different standards on accountability; especially with regard to communities hit by disasters. This culminated in the global launch of the Core Humanitarian Standard on Quality and Accountability in December 2014. The initiative has gained support from national and international organisations.

In Cambodia, children and

people with disabilities are

helping design projects.


Aim 3Achieving peace, security and recovery so that the poorest and most disadvantaged communities live in a safe and secure environment, and are able to minimise, survive and recover from crises.

Responding to emergencies

Outcome: We will respond in a timely and effective manner to new and ongoing emergencies and we will support partners and affected communities before, during and after a crisis.

This year we received 37 requests from sister agencies around the world to manage emergency programmes. Many of the emergencies which have faced us this year have been complex and unfolded gradually, such as the Ebola outbreak in Guinea, Sierra Leone and Liberia, and the fighting across Iraq. We have been able to stand beside long-term partners and increase support as the momentum of the crisis has gathered.

Our supporters have been outstandingly generous in response to our two emergency appeals, for Ebola and for the Gaza crisis following hostilities in July 2014.

Fighting Ebola

In the worst-ever outbreak of Ebola, records show that 27,000 people had been infected and over 11,000 had died. By early May 2015, the World Health Organization declared Liberia Ebola-free, but new cases in Sierra Leone remain a major concern. We received a total of £4 million for the emergency: £1.7 million direct from supporters, £1.1 million from the Disasters Emergency Committee and £1.2 million from the Department for International Development.

In an unprecedented mobilisation, CAFOD’s partners and their networks of volunteers played a pivotal role in fighting the spread of the disease. Over 170,000 people received vital information about disease prevention, through the extraordinary efforts of 8,683 trained church volunteers, including priests and

Heroes of Ebola

In Sierra Leone, Joy Foday, 27, is one of the Kambia Safe and Dignified Burial Team. “I joined the burial team, because I wanted to serve my country. I can’t expect people from the UK and the USA to save us, I too can help get rid of this Ebola disease.”

“It is traumatic to bury someone who once had a full life, to hear the cries

of the family, to see their tears. But we are there to do the job well, to do it safely, and to give dignity to the deceased person and their family. Every day, my friends send a reflection to my mobile phone; I read this, and it gives me strength to do the work, and I feel closer to God because I know that he is protecting me.”

JOY FODAY, SIERRA LEONE

The key to survival is to keep our humanity intact.”

BISHOP ANTHONY BORAWAH,

CARITAS LIBERIA, ON THE

EBOLA CRISIS


imams. Outbreak prevention kits were distributed to 995 places of worship. Partners took food and household items to quarantined families living in isolation, and teams of volunteers were trained to carry out safe and dignified burials, to minimise contagion risk (see box below left). We carried out this work as part of an alliance with faith-based organisations World vision and Catholic Relief Services (CRS).

The humanitarian work of CAFOD and the Caritas Network has been widely recognised within the UK NGO arena. The work of CAFOD, CRS and World vision in Sierra Leone on the Ebola Response received the BOND Humanitarian Award for safe burial. Our humanitarian response progamme in Syria together with the amazing work of Bishop Antoine Audo of Aleppo was also nominated and commended. This is a real accomplishment and shows the scale, reach, professionalism and recognition of the work undertaken by CAFOD and our partners.

Gaza, Iraq and other emergencies

In Gaza, our supporters reached out with donations of £474,000 to people affected by the July/August 2014 conflict. A petition for peace was signed by 25,000 Catholics from 300 UK parishes. In Gaza, local labourers from vulnerable households earned income by working to rehabilitate damaged kindergartens, helping themselves and the community at the same time. Farmers from 204 families joined a programme to rescue their farmland, including levelling land damaged by conflict. Also in Gaza, partner organisation IRPAL (Islamic Relief Palestine) gave out family hygiene kits, benefiting 78,000 people.

In Iraq, escalating violence has left 5.2 million people in need of aid. The extremist group known as Islamic State has taken control of large swathes of three provinces. Religious minorities, including Christians, Yazidis and Turkmen, have been attacked. We received spontaneous donations of over £150,000 for Iraq. Despite considerable difficulties and danger, our Church partners are assisting thousands of homeless people with food, essential household goods, shelter, sanitation facilities, and psychosocial support.

In November 2014, we visited Bangladesh to assess Caritas Bangladesh’s flash flood response project. Families had received food and relief supplies within seven days of our funds being released.

Buddhist violence against Muslims is a worrying concern in Myanmar. We enabled Buddhist youth and faith leaders to meet together in November to address tensions in their areas. Meanwhile increased fighting in Northern Myanmar has led to 120,000 displaced people since 2011. Through our support, communal halls, new shelter units and kitchen units were constructed across four displacement camps, providing facilities for more than 3,000 people.

Advocacy for change

Outcome: Our advocacy efforts will help deliver change in action or positions on humanitarian issues.

Since a military coup in March 2013 the Central African Republic (CAR) is now experiencing a complex humanitarian emergency marked by violence and insecurity. We have directly engaged in advocacy, both through support to Caritas Centrafrique (CAR) and in the UK. We facilitated a number of debates in parliament and successfully increased the level of international attention given to the crisis. In September 2014 a 10,000 strong UN peacekeeping operation was deployed.

25,000 UK supporters signed a

petition for peace in Gaza.


Over the past year we have led a critical piece of research aimed at resolving longstanding global humanitarian financing challenges. This work has already been heralded as ‘system changing’ and has led to our working closely with senior leadership within the UN, governments, NGO and partners/civil society. The research will be used in the run up to the World Humanitarian Summit in 2016 and beyond.

Strength in a crisis

Outcome: CAFOD’s key partners’ capacity will be strengthened, enabling them to better respond to and manage emergencies.

To continue to strengthen our partners, 15 organisations across eight countries have completed self-assessments around their emergency preparedness, exceeding our target of 12. The partners now have action plans in place, and technical support has been provided. Humanitarian Leadership training was piloted in Kenya and an emergency simulation took place in Zimbabwe. Partners responded to emergencies in Mozambique, Malawi, Democratic Republic of Congo and Cambodia, and said afterwards that they felt their response was swifter and better organised than before.

We have been encouraged by positive feedback from accountability workshops conducted in the Philippines and capacity building projects for partners in Syria. Across the Middle East, grants totalling £220,000 provided staff training and IT equipment for six partners across four countries: Syria, Lebanon, Jordan and Turkey. A total of 866 staff benefited from training on a wide range of skills, from monitoring and evaluation to organisational policy and finances.

In Myanmar we worked with five Catholic sister organisations to support Caritas Myanmar to develop human resource and finance management systems across all 16 dioceses.

Working together to achieve more

Outcome: We will strengthen our strategic alliances and build collaborative ways of working to enable more effective responses to crises and better support to communities.

When a crisis unfolds, the number of charities offering help can be huge. People’s generosity is great. But for those on the frontline, dealing with so many different organisations can be overwhelming. Co-operation is the way forward, and we aim to have 50 per cent of emergency response provided in collaboration by 2020. Engagement in the Philippines, Darfur, and Central African Republic is close to half of overall committed spend. Our response to the crisis in Gaza is a collaborative engagement with CRS and Islamic Relief.

Another vital aspect of disaster relief is to prepare communities to withstand future crises. In the Philippines, when Typhoon Hagupit struck in December 2014, it tested the preparations our partners had carried out since the devastating Typhoon Haiyan a year before. Communities had been successfully supported to develop early warning systems. Emergency supplies were pre-positioned before Typhoon Hagupit hit, and the homes that were built on Samar island following Haiyan held up to the storm. This was one of ten countries where we funded partners to be better prepared for disasters.


Families are desperate and frustrated. But the support and encouragement has been a positive result of the crisis. We feel that we are not alone and that gives us strength.”

NABIL NISSAN, CARITAS IRAQ

Aim 4Building our partnerships in the Catholic community, so that Catholics in England and Wales are inspired to challenge global poverty through prayer, action and giving, so transforming their lives.

Building trust with supporters

Outcome: Trust and loyalty will be built by improving our understanding of, and responsiveness to, supporters.

We would not exist without the trust and support of the Catholic community. A research project, run in collaboration with Scottish sister agency, SCIAF (Scottish Catholic International Aid Fund), highlighted the regard individuals have for our work. The survey indicated that 88 per cent of supporters trust us ‘a great deal’ or ‘quite a lot’. More than 70 per cent of Mass-going Catholics interviewed said they were aware of our work. We plan to continue conducting occasional research to deepen our understanding of what supporters value about their relationship with communities around the world through CAFOD.

Young people leading the way

Outcome: We will increase reach and engagement with potential supporters in the Catholic community.

This year we have seen the energy of young people who are passionately motivated to share stories about our work. The urgency of the themes behind our One Climate One World campaign has so far motivated 20,000 regular and new supporters to act and pray.

Our incredibly active network of young leaders and young volunteers has been a source of inspiration to all of us. Between them they have reached 75,000 people in the wider Catholic community with messages supporting our work for social justice and climate awareness.

Young leaders reached 75,000

people with messages about

CAFOD’s mission.

Flame draws 8,000

Our messages were spread to 8,000 attendees at the biennial Catholic young people’s event ‘Flame’. There was a strong presence of 35 of our young leaders. Three CAFOD gap year volunteers spoke about their UK experience reaching out to supporters and about the projects they visited in Zimbabwe and Nicaragua. Stage presentations showed our work in the Middle East.

Director of CAFOD Chris Bain said, “I was overwhelmed by the passion,

energy, and commitment of the young people I met at Flame.”

As the crowd dispersed at the end, we felt that all our flames were burning brighter.”

NATHANIEL FERNANDES, ST JOSEPH’S,

READING (LEFT OF PHOTO)


The number of newly registered young leaders in 2014/15 stands at 200 young people aged 11-23, who have been engaged in our mission to challenge poverty and injustice and their causes. Across six dioceses, 153 sixth formers have been supported to take a lead and encourage others to participate in our mission. We worked with groups of young volunteers in Catholic youth residential centres who reached an estimated 25,000 young people with messages of global justice and faith. A further 25 dedicated young bloggers have communicated monthly to their networks.

Young people met with their parliamentary candidates in many constituencies on global issues in the run-up to the UK general election. As a result, one MP went on to raise questions about the UN commitment to action on climate change in Prime Minister’s Questions.


Long term commitment

Outcome: We will increase engagement with current supporters.

Engagement with supporters occurred in many ways across all of our UK work, with particular energy focused around the emergency appeals, campaigning, young leaders work, schools work and Fast Days. There was an especially strong response to the Gaza crisis. As well as donating money, more than 25,000 CAFOD supporters from over 300 parishes signed a petition calling for the UK Foreign Secretary to push for a just and lasting peace. In reply, the Foreign Office wrote: “We are clear that a political solution is required to the current crisis in Gaza if we are to avoid this suffering happening again. I can assure you all UK effort is focused to that end.”

Exceeding our target, a total of 4,788 additional new regular givers committed to supporting our work, bringing to 38,531 the number of donors who give through a direct debit or standing order.

Volunteering with CAFOD

Outcome: We will maintain numbers of volunteers and their activity will have increased.

Throughout England and Wales our committed volunteers continued to act in solidarity in different creative, prayerful and inspiring ways; everything from

CAFOD gap year

Over the year, 10 of CAFOD’s gap year volunteers delivered over 300 different outreach activities. Mary Palmer of Hexham and Newcastle diocese who travelled to Zimbabwe with CAFOD has reached 2,300 people locally so far this year through 35 activities in her diocese. “We talk with other young people and encourage them to recognise their potential,” she says.

There’s still more to do – it’s just the beginning!”MARY PALMER


putting solar panels on the church roof, to making marmalade, lobbying MPs and climbing Mt. Kilimanjaro.

We are delighted that 4,147 people offered to remain registered as a CAFOD volunteer in 2014-2015, an increase compared with last year. We now have at least one active volunteer in 65 per cent of parishes and one in five parishes have more than a single volunteer.

Looking ahead, our five year volunteer Strategy, to be completed July 2015, will help inform the development of volunteer roles, policies and procedures, best practice in recruitment and support, celebrating the work of volunteers and how volunteers are represented within CAFOD.

This year we have visited just over 32 per cent of Catholic schools (734) This is on a par with average visits over the last five years, but lower than our original target. During the academic year 2013/14 we had a total of 216 active and trained schools volunteers.

Compassionate response

Outcome: Income generation will increase in ways consistent with our Catholic values.

Thanks to the generosity of the Catholic community, our supporter income, excluding emergency donations reached £34 million. This figure is well ahead of our target of £27.9 million. We received an exceptional single gift of £3.5 million. The Lent 2015 appeal has reached the £5 million mark and it will allow us to claim an additional pound from the UK government for every pound donated by supporters. In addition, our supporters responded with great compassion to emergencies, especially Ebola, Gaza and Iraq. We received a total of £5.7 million emergency income.

These gifts, alongside all the time and energy dedicated by volunteers and supporters, demonstrate the trust placed in us by the Catholic community. We could hope for no better motivation as we continue our work for global justice and the common good.

Showing the love

volunteers from the West Wight CAFOD Committee held a special stall at a volunteer Fair in March 2015 to encourage people to volunteer for CAFOD and take campaign action. Pupils of St Saviour’s primary in Totland Bay (left) and Holy Cross primary in East Cowes created giant hearts with individual lifestyle pledges to tackle climate change.

Meanwhile Lent Fast Day inspired all kinds of fundraisers in parishes and schools, with hunger lunches, bake-offs and even a half marathon. Eight-year-old Sam of St Joseph’s parish in Malvern was motivated by learning about a boy called Martin in Myanmar, whose village was devastated by a cyclone. So Sam raised over £300 at a bring and buy sale; this will be doubled by the UK Government to £600.

In support of Aims 1-4Stewardship

Outcome: We will have improved the stewardship of resources to enable more efficient and effective delivery of our aims.

We have developed an organisation-wide stewardship action plan in relation to people, finances and environmental resources. We have logged over 60 different activities to enable more effective stewardship. We have also developed a ‘7Es’ framework. The framework goes beyond the traditional ‘3Es’ (economy, efficiency and effectiveness) and includes principles of equity, endurance, engagement and endeavour. The framework enables our values to shape our project and programme review.

Strategic review

Last year we undertook a strategic review of all our operations. Underlying costs were taking an increased percentage of our income. Inflation in the global South was also steadily decreasing the value of our funding to international partners. We wanted to ensure that in an increasingly unpredictable financial environment, we have the right priorities and approaches to continue to respond on behalf of the Catholic community to the concerns of poor communities across the world, in the most effective way and within our means.

We took into account a world where humanitarian crises are more frequent and protracted, inequality is growing and chronic poverty can sometimes seem intractable. Yet it is also a world where the influence of the Church on the world stage is increasing and the voice of the Church and our partners in the global South is more confident. Partners want to share their expertise more with others who experience the same challenges of poverty and injustice. Catholics in England and Wales treasure their close links with the work that we do, and also want as many resources as possible to go to the poorest and most disadvantaged.

We decided to make changes to better reflect our current context with a renewed commitment to growth in resourcing our international partners. We are privileged to work alongside skilled, experienced and visionary leaders in the communities and partnerships we support.

However, in order to make more long-term funding available to our international partners, we have had to make difficult decisions about cutting back elsewhere. We have made savings of £3million from our core organisational costs so we can invest in more time-bound projects. We believe that the changes will enable us to achieve our mission more effectively.


Effective communications

Outcome: Our communications are better targeted, distinctive and timely.

Our work, and the work of our partners, has featured across the whole range of public media this year. Interviews on BBC Radio 4, BBC World Service and BBC World Tv highlighted CAFOD and the outstanding work of our partners in Sierra Leone and Liberia in response to the Ebola outbreak.

A prominent photo gallery in Guardian online showcased our relief and recovery work in the Philippines, marking the two year anniversary of Typhoon Haiyan. The crisis in Syria and our role through Catholic networks in the region was highlighted by a Sunday Telegraph comment piece by Syrian Bishop Audo. An interfaith letter was published in the independent focusing on Syrian refugees seeking safe haven in the UK. These, and many other articles and interviews, demonstrated the incredible resilience of communities plunged into emergencies.

Eight celebrities joined in the Climate Coalition ‘Show the Love’ film about climate change, including two CAFOD supporters – David Harewood and Dermot O’Leary. Tweets from the two stars mentioning CAFOD reached 2.8m followers. The film was viewed 675,000 times and featured on the Guardian online, Telegraph Online, Mirror Online, ITv News Online, Huffington Post UK and Catholic Universe, reaching an audience of approximately 20m. David Harewood was also interviewed on Guardian Global Development (reaching 42.6m monthly visitors), mentioning his 2009 trip to Kenya with CAFOD.

Our online engagement continued to increase, with 140,000 users on CAFOD’s website each month and more than 22,000 followers on Twitter and Facebook. Over the year, followers of our main Twitter account increased by 15 per cent, while Facebook increased by 26 per cent.


CAFOD’s website received 140,000

visits every month.

Climate change and the Church

We secured a front page article in the Observer quoting CAFOD on the Pope’s upcoming encyclical. It was the most-read story that week on the paper’s webpage, and prompted follow-up pieces in the independent, the New York Times and on Fox News. It was shared 125,000 times.

Coverage of the Catholic Bishops’ statement on climate change during

the UN Climate Conference in Lima in December 2014 was secured in the BBC and Financial Times.

In January 2015 the Holy Father commented on climate change while visiting the Philippines, and the Daily Mail online quoted CAFOD on the impact that the changing climate is having on poor communities there.

Aim 1

Increasing power and influence so that the poorest and most disadvantaged communities are able to influence the decisions, resources and systems that affect them, and have governments, institutions and global structures that are just and accountable.

Participating internationally

CAFOD partners and Catholic networks will participate in the United Nations Sustainable Development Goals process and have a voice in formulating the goals and their implementation.

We will have evidence of the range of partners and church networks participating in the implementation and monitoring mechanisms at national level.

Tackling climate change

Our partners and the communities they serve will influence climate change debates in national and international fora, to achieve a commitment to tackling climate change in the run up to the United Nations Conference of Parties meeting in December 2015.

With the global Catholic family, we will have contributed to the debate on poverty and climate from a faith perspective, with evidence of this perspective influencing public discussions.

Humanitarian advocacy

CAFOD and its partners will achieve specific changes to humanitarian policy, which will improve the lives of people affected by emergencies.

Through our advocacy efforts we will have successfully contributed to a shift in practice or policy in three countries.

Partner influence

CAFOD partners and the communities they serve will influence regional policy and structures.

Citizens, particularly women, will be influencing changes as a result of the funding, training, tools and accompaniment CAFOD offers partners across Latin America, Africa, Asia and the Middle East.

Aim 2

Promoting long term positive change, so that women and men in the poorest and most disadvantaged communities live sustainably and with dignity.

A decent livingWe will contribute to the growth in the number of poor people from hazard prone or marginalised communities who have access to essential resources.

We will increase our support to partners in Bangladesh, Kenya, Myanmar and Zimbabwe over three years, so that 20,000 additional smallholder farmer households are using more sustainable farming methods.

Partners in Bangladesh, Bolivia, Brazil, Ethiopia, Myanmar, Peru, Sudan and South Sudan will enable communities to influence decisions on essential resources.

Peace buildingCAFOD partners will contribute to building community and national structures for peace, inclusion and reconciliation.

Catholic networks will play a key role in peace building with a focus on the Democratic Republic of Congo, Burundi, Rwanda, Nigeria and Myanmar.

CAFOD partners will continue to protect the civil and political rights of communities and promote peace.

Harnessing skillsWe will support partners to gain greater access to expertise and resources drawing on expertise already present in the global South.

CAFOD partners will report they are better equipped to bring about change with the communities they serve.

We will assess the impact and quality of CAFOD’s work that enables partners to be more accountable to the communities they serve.

Effective partnerships A highly effective partnership approach will be consistently applied to our development work.

We will see an increase in country strategies jointly developed with CAFOD’s strategic partners. We will also have evidence on the difference this support makes.

Plans for the future 2015-16Our forward plan sets out how we wish to make further progress towards our four aims. After a period of strategic reflection we have committed to prioritising three enablers, which we believe will deliver our aims more effectively:

Shifting power and influence to the global South.

Strengthening our partnerships internationally and amongst our dedicated volunteers in the Catholic community.

Increasing collaboration with like-minded agencies to overcome poverty and injustice.


Aim 4

Building our partnerships in the Catholic community so that Catholics in England and Wales are inspired to challenge global poverty through prayer, action and giving, so transforming their own lives.

Reaching out

We will reach out to potential supporters in the Catholic community.

We will increase the number of supporters who choose to campaign with and donate directly to CAFOD to 100,000.

We will launch a scheme to support 180,000 pupils aged 11-14 to learn about global issues in Catholic secondary schools by 2018.

Strengthening relationships

We will ensure continuing engagement with our existing supporters.

Between 2,100 and 2,200 parishes will maintain their commitment to CAFOD’s mission.

1,500 Catholic primary schools will register with CAFOD, enabling pupils to learn about the link between faith and a fairer world for poor communities.

Volunteering

We will maintain the number of volunteers and their activity will have increased.

60-65 per cent of parishes across England and Wales will have at least one active volunteer.

We will maintain the number of volunteers at 4,150.

200 young people will be trained to take leadership action with CAFOD.

Wealth sharing

Income generation will increase in ways consistent with our Catholic values.

Supporters will generously donate £29.5 million exclusive of emergency appeals.

We will raise £9.2 million from institutional donors and our sister Caritas networks exclusive of emergency appeals.

Aim 3

Achieving peace, security and recovery so that the poorest and most disadvantaged communities live in a safe and secure environment, and are able to minimise, survive and recover from crises.

Improving our response

We will respond to new and ongoing emergencies in a timely and effective manner.

Our staff will be deployed to support partners no less than 24 hours after we have made a decision to respond.

Our expertise will be used by our partners and Catholic sister agencies in water, sanitation, hygiene and protection.

Stronger partners

CAFOD partners will have greater organisational capacity to respond to and manage emergencies.

Ten partners will complete emergency preparedness plans and test these through emergency simulations.

Five new partners will complete capacity self-assessments, and will formulate plans to develop their ability to respond to emergencies.

We will prioritise partners affected by conflict and vulnerable to natural disasters.

Collaborating effectively

We will strengthen our emergency response through strategic alliances so that we can support communities more effectively.

We will be successful in coordinating a joint emergency response with sister agencies in five countries.

We will increase the income available for emergency responses.

In support of Aims 1-4 We will complete a first phase of financial changes to reduce long-term core spend by £3 million and we will allocate flexible, time-limited investment to achieve strategic initiatives.

We will develop a three year strategy so that staff are better equipped to contribute to changed ways of working to achieve our strategic aims.

We will heighten due diligence procedures in countries under government sanction and at a greater risk of terrorism.


Financial reviewIncome and expenditureIn 2014/15 we raised £56 million, a 9 per cent increase on the previous year. Over two thirds of this was received from supporters who donated a total of £39.7 million. This hugely generous support was supplemented by a further £3 million received from Caritas and other Catholic agencies and £13 million received as grants from governments and other institutional donors.

10/11 11/12 12/13 13/14 14/15

Income £m £m £m £m £m

General donations and legacies 29.2 30.1 31.4 26.7 34.0

Emergency appeal donations 8.3 9.2 2.2 8.9 5.7

Donations from supporters 37.5 39.3 33.6 35.6 39.7

Caritas, governmental and other institutional donors 18.1 21.3 14.8 15.4 16.0

Trading and interest earned 0.3 0.4 0.4 0.3 0.3

Total incoming resources 55.9 61.0 48.8 51.3 56.0

Supporter income was 12 per cent higher than last year, boosted by a single gift of £3.5 million, and £2.3 million received for the West Africa Ebola crisis appeal. This enables the Trustees to make a further allocation to the programme funding for the coming two years. However, with fewer appeals this year, overall supporter appeal donations were below 2013/14 levels. All other general income categories were at or above target and exceeded last year’s levels.

General donations and legacies from supporters form the foundation of funding for our work. When there are reports from many charities of a reduction in donations due to the squeeze on household incomes, it is encouraging that the support from the Catholic community of England and Wales has not faltered. Our international work also attracts funding from a wider range of Caritas, governmental and institutional donors. Income from these sources grew rapidly to a peak in 2011/12 but then fell sharply due to greater competition for limited governmental and institutional funds. These funds continue to recover steadily, enabling an increase in our international development and disaster relief programmes. During 2014/15 CAFOD was able to spend £53.6 million – a 4 per cent increase on the previous year.

10/11 11/12 12/13 13/14 14/15

Expenditure £m £m £m £m £m

Cost of generating funds and governance 6.3 6.1 6.3 6.3 6.7

Charitable activities

International development programme 22.4 25.1 26.2 23.9 22.5

Disaster relief programme 12.1 18.1 12.3 14.6 17.5

Development education 2.8 2.8 2.8 2.8 2.9

Advocacy and campaigning 3.2 3.2 3.5 3.9 4.0

Total resources expended 46.8 55.3 51.1 51.5 53.6


We ensure just over 12 per cent of total expenditure relates to the costs of generating funds and governance, leaving 88 per cent for our charitable activities. £40 million (75 per cent of total expenditure) was spent on international development and disaster relief programmes and £6.9 million (just under 13 per cent of total expenditure) on development education, advocacy and campaigning programmes.

A summary of income and expenditure is shown on p.32 in the format required by the Charity Commission’s Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities”. These financial statements comply with this SORP, with CAFOD’s trust deed and all applicable laws.

Financial position and reserves policy

The Trustees review CAFOD’s reserves policy each year, ensuring a balance between spending on the immediate needs of charitable programmes and setting aside a reserve to protect our work, by providing time to adjust to any sudden large scale operational challenges in our overseas work or to changing financial circumstances in the amount of funds available.

The level of reserves and details of the other individual funds CAFOD holds are provided in notes 10 and 11 to the financial statements. These funds and reserves are amounts held at 31 March 2015 in accordance with our reserves policy. At 31 March 2015, we held total funds and reserves of £33.6m – £11.2m general funds; £16.1m designated by the Trustees for specific purposes; £5.8m restricted funds in hand and a permanent endowment fund of £0.5m.

At 31 March 2015, general funds are made up of a £9m stabilisation fund (the amount the Trustees agree to hold back to limit any potential disruption associated with financial risks) and £2.2m additional “free reserves” increased from last year as a result of the exceptional single gift, which will be allocated to specific programmes in 2015/16.

We also held £16.1m designated funds at the balance sheet date - £5.8m set aside to fund the fixed assets required for CAFOD’s operations and £10.3m already assigned by the Trustees to be spent in the coming two years on specific programme activities.

At the end of the year we also held £5.8m of restricted funds, including balances from the ongoing Ebola, Philippines typhoon and Syria emergency response programmes.

General funds Stabilisation fund 9.0 9.0

Free reserves 0.5 2.2

General funds total 9.5 11.2

Designated funds Fixed assets fund 5.8 5.8

Programme fund 7.6 10.3

Designated funds total 13.4 16.1

Restricted funds General donation funds 0.3 0.6

Emergency appeal funds 7.1 4.8

Caritas and other Catholic agencies 0.3 0.3

Government and institutional grants 0.1 0.1

Restricted funds total 7.8 5.8

Permanent endowment 0.4 0.5

Total funds and reserves 31.1 33.6

At March 14

£m

At March 15

£m


Investment policy

The objective of our investment policy is to maintain high liquidity whilst ensuring maximum security by avoiding risk to capital, meeting ethical standards and achieving the best possible return within these limiting parameters.

To meet this objective, investments are made in Sterling deposits with financial institutions that hold a high security rating, ordinarily spreading the total invested across fixed terms from overnight to 12 or 24 months and limiting the amount invested with any one financial institution. In response to the increased risks caused by the credit crunch, we have restricted our deposits to UK domiciled banks and restricted the maximum deposit period, to enable it to react more quickly to issues with particular banks.

As well as sterling deposits, we maintain balances in US dollars and euros for transactional purposes to cover ongoing expenditure. These “transactional” balances are held on instant access either in accounts with the Royal Bank of Scotland, or in a shared investment fund managed by the Royal Bank of Scotland, depending on the daily interest rates available.

There is also a permanent endowment fund of £478,000, the capital element of which is held in perpetuity and from which the income is applied to our work. To maintain the capital value of this fund, meet its ethical standards and achieve the best possible return, it is invested in an ethical UK common investment fund.

CAFOD’s investment policy is reviewed by the Finance Committee, acting as an investment sub-committee, and is approved by the Trustees annually. The Finances Committee, reporting to the Trustees, monitor investment performance and compliance with investment policy quarterly and the Trustees have confirmed the Finance Committee’s opinion that the objectives of CAFOD’s investment policy were met during the year.

Structure, governance and managementRegistration and constitutionCAFOD, the Catholic Agency for Overseas Development, is a registered charity (number 285776) under the Charities Act 1993 and is governed by a Trust Deed dated 29 September 1982 and deeds of variation dated 28 September 1984, 11 October 2000, 21 February 2009 and 12 March 2009.

CAFOD is the official overseas development agency of the Catholic Church in England and Wales. It has its origins in the action of Catholic women’s organisations that held the first ‘Family Fast Day’ in 1960. Subsequently, in 1962, CAFOD was formally established by the Bishops of England and Wales to address the concern of the Catholic community about the needs and problems of developing countries.

Board of Trustees CAFOD is governed by four Foundation Trustees and a wider group of Trustees, who form our Board of Trustees (and who together are referred to as ‘the Trustees’ below).


Foundation Trustees are appointed by the existing Foundation Trustees with their appointment ratified by the standing committee of the Bishops’ Conference of England and Wales. The Foundation Trustees hold a limited number of reserved powers, including the appointment of other Trustees and the power to amend CAFOD’s trust deed. All other powers, including the establishment of specialist committees (including a finances committee, a human resources committee and an international programmes committee) and general responsibility for the running of CAFOD are vested with the full Board of Trustees.

The Board of Trustees meets formally four times a year, together with the corporate leadership team. One of these quarterly meetings takes place over a residential weekend, to allow time for a deeper understanding of CAFOD’s programme of work. Trustees have an induction programme and some chair specialist committees and involve themselves with the work of different sections, international regional teams and diocesan offices to ensure that collectively they have the overview necessary for the proper governance of CAFOD.

The whole Trustee body brings a wide range of skills and experience from a variety of backgrounds including finance, government and the charity sector, as well as from the Catholic community. In the last year we are delighted to have recruited three new Trustees.

Decision making The Board of Trustees is the custodian of CAFOD’s vision, mission and values; they approve strategy, structure, corporate plans and budgets and ensure the organisation is effective and accountable. The Trustees appoint the Director of CAFOD and have delegated to the Director and management of CAFOD the responsibility for the approval of grants to partners. Grants are made within agreed strategies and programmes of work on the basis of proposals that are subject to formal appraisal, approval, monitoring and evaluation.

Risk management As an annual process, the Trustees formally identify the major risks to which the charity is exposed, assess the likelihood of these risks crystallising and the probable level of impact. To ensure that the controls on which they rely are effective, the Trustees have mandated the CAFOD Finances Committee to oversee a risk-based internal audit function. Following on from this process, the Trustees believe that they have established systems to mitigate all significant risks.

Public benefit reporting The objectives set out within the Trust Deed are standard charitable objectives to allow CAFOD to undertake the full range of charitable activities. These objectives are:

the relief of poverty throughout the world

the advancement of education throughout the world

the advancement of the Christian Religion throughout the world

the relief and prevention of sickness, disease and physical or mental disability throughout the world


and such other charitable purposes anywhere in the world as are for the benefit of the United Kingdom community.

The Trustees have taken account of the statutory reporting duty introduced in 2009 to illustrate how in practice the activities of CAFOD meet the legal public benefit requirement. In this respect, the Trustees have noted and paid due regard to all the Charity Commission’s statutory guidance that is relevant to our mission, and have highlighted in this report examples of CAFOD’s activities which illustrate how our work fulfils its mission and the significant benefits it brings to:

individuals and communities in poverty overseas, irrespective of their race, religion or creed

teachers, youth workers, students and pupils involved in teaching and learning about global poverty and injustice and its causes

the Catholic community in England and Wales in expressing its faith in action in response to global poverty and injustice issues.

The Trustees give their time voluntarily and receive no private benefits from CAFOD.

Trustees’ responsibilities in respect of the financial statements The Trustees are responsible for preparing the report of the Trustees and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources of the group for that period. In preparing these accounts, the Trustees are required to:

select suitable accounting policies and then apply them consistently

observe the methods and principles in the Statement of Recommended Practice (Accounting and Reporting by Charities) (the Charities’ SORP)

make judgements and estimates that are reasonable and prudent

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and

prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of financial information included on the charity’s website. Legislation in the United Kingdom


governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

Incorporation of CAFOD Charities in England and Wales can be constituted under a range of legal structures; including being governed under a trust deed and as a charitable company.

The complexity and scale of CAFOD’s work has increased over the years and the Trustees have taken the decision to update the current legal structure of CAFOD; changing from the current trust structure to a charitable company structure.

As well as being more appropriate for the size and nature of CAFOD’s work, this will provide practical benefits:

a clearer legal structure that will be more readily understood by those CAFOD has dealings with (funders, international governments and regulators, partner organisations, suppliers and other key stakeholders), making it easier to set up agreements and other contracts, and

a more appropriate governance framework, which includes relevant limits on the liability of Trustees.

To make this change, the Trustees have:

set up a new charitable company (incorporated as a company limited by guarantee with company number 9387398) with the same name, objects and Trustees as the existing CAFOD Trust

registered the new charitable company with the Charity Commission of England and Wales (with charity number 1160384), and

passed a resolution to transfer the operations and assets of the current CAFOD trust to the new CAFOD charitable company.

From 1 April 2015, CAFOD operates under the new charitable company and new charity registration.

CAFOD’s Trustees are grateful to the dedicated service of its staff and many volunteers. Without their generous commitment, it would be impossible for CAFOD to carry out its programme of work and achieve its goals.

Approved by the Trustees on 9 July 2015 and signed on their behalf by:

The Right Reverend John Arnold – Chair of Trustees

9 July 2015


Independent auditor’s report to the Trustees of CAFOD

We have audited the financial statements of CAFOD for the year ended 31 March 2015, which comprise the group statement of financial activities, the group balance sheet, the group cash flow statement, the principal accounting policies and the related notes.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the Trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and with regulations made under Section 154 of that Act. Our audit work has been 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 charity and the Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees and auditor As explained more fully in the statement of Trustees’ responsibilities in respect of the financial statements, set out in the report of the Trustees, the Trustees are responsible for the preparation of financial statements which give a true and fair view.

We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the report of the Trustees to identify material inconsistencies with the


audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material inconsistencies we consider the implications for our report.

Opinion on the financial statements In our opinion the financial statements:

give a true and fair view of the state of the group and charitable parent’s affairs as at 31 March 2015 and of the group’s incoming resources and application of resources for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Charities Act 2011.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

the information given in the report of the Trustees is inconsistent in any material respect with the financial statements; or

sufficient accounting records have not been kept; or

the financial statements are not in agreement with the accounting records and returns; or

we have not received all the information and explanations we require for our audit.

Crowe Clark Whitehill LLP

Statutory Auditor, London, 9 July 2015

Crowe Clark Whitehill LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.



Consolidated statement of financial activities for the year ended 31 March 2015 (incorporating an income and expenditure account)

Unrestricted Restricted Total Total Funds Funds 2015 2014 Notes £000 £000 £000 £000 Incoming resources from generated funds Voluntary income Donations from supporters – general 28,843 5,109 33,952 26,681

Donations from supporters – emergency appeals 1c 437 5,307 5,744 8,903

Government and institutional income 1b 7,483 5,766 13,249 12,397 Caritas and other Catholic agencies 1a 140 2,592 2,732 2,967 Activities for generating income: Trading and other income 111 - 111 69

Investment income:

Interest earned 200 18 218 270 Total incoming resources 37,214 18,792 56,006 51,287 Cost of generating funds Fundraising trading costs 2 25 - 25 47 Costs of generating voluntary income 2 5,862 227 6,089 5,839 Charitable activities International development 2 14,089 8,447 22,536 23,938 Disaster relief 2 5,590 11,900 17,490 14,542 Development education 2 2,830 61 2,891 2,815 Advocacy and campaigning 2 3,834 180 4,014 3,911 Governance costs 2 535 20 555 367 Total resources expended 32,765 20,835 53,600 51,459 Net incoming/(outgoing) resources 4 4,449 (2,043) 2,406 (172) Unrealised investment gains - 39 39 9 Net movement in funds 4,449 (2,004) 2,445 (163) Funds at the start of the year 22,873 8,279 31,152 31,315 Funds at the end of the year 27,322 6,275 33,597 31,152

CAFOD did not change any of its principal activities during the above financial years and there were no gains and losses other than those included above. Restricted funds above include permanent endowment funds with a current value of £478,094; see note 11. All of the charity’s activities were derived from continuing operations.

Consolidated balance sheet as at 31 March 2015

2015 2014 Notes £000 £000 Fixed assets Tangible assets 7a 11,290 11,229

Investments 7b 4,018 3,979 15,308 15,208 Current assets Stock 24 17 Debtors and prepayments 8 3,114 2,086 Short term cash deposits 18,525 17,847 Bank and cash in hand 2,583 2,466

24,246 22,416 Creditors Amounts falling due within one year 9 (5,957) (6,472) Net current assets 18,289 15,944

Net assets 33,597 31,152

REPRESENTED BY: Unrestricted funds General funds 10 11,149 9,513 Designated fixed asset fund 10 5,830 5,769 Designated programme fund 10 10,343 7,591 Restricted funds General donation funds 11 577 308 Emergency appeal funds 11 4,809 7,050 Caritas and other Catholic agencies 11 272 344 Government and institutional grants 11 139 138 Permanent endowment 11 478 439

Total funds and reserves 33,597 31,152 The financial statements were approved and authorised for issue by the trustees on 9 July 2015 and signed on their behalf by:

The Right Reverend John Arnold Janet Marie Wilkinson ACA Chair of the Trustees Honorary Treasurer


Trustees

Consolidated cash flow statement for the year ended 31st March 2015

2015 2014 Notes £000 £000 Cash inflow/(outflow) from operating activities A 990 (1,782) Returns on investments Interest received and investment income 218 270 Capital expenditure and financial investment B (413) (99) 795 (1,611) Management of liquid resources Increase/(decrease) in short term deposits (678) (271) Increase/(decrease) in cash at bank and in hand C 117 (1,882)

Notes to the consolidated cash flow statement for the year ended 31 March 2015 A. Reconciliation of net incoming resources to net cash inflow from operating activities 2015 2014 £000 £000 Net incoming/(outgoing) resources per Statement of Financial Activities 2,406 (172) Depreciation charge 363 377 Net gain on disposal of tangible fixed assets (11) (3) Interest receivable and investment income (218) (270) (Increase)/decrease in stock (7) 10 (Increase)/decrease in debtors (1,028) 638 Decrease in creditors (515) (2,362) Cash inflow/(outflow) from operating activities 990 (1,782)

B. Cash flows: capital expenditure and financial investment Payments to acquire tangible fixed assets (439) (102) Receipts from sales of tangible fixed assets 26 3 Net cash outflow from investing activities (413) (99)

C. Analysis of changes in bank and cash in hand

At 1 April 2014 2,466 Increase in bank and cash in hand in the year 117

At 31 March 2015 2,583


Notes to the consolidated financial statements 31st March 2015

Accounting policies

• Basis of accounting The financial statements have been prepared under the historical cost convention as modified by the inclusion of investments at market value and in accordance with the requirements of the Charities Act 2011. Applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP 2005) have been followed in the preparation of these financial statements. On 1 April 2015 the activities and assets of CAFOD trust were transferred to the new CAFOD charitable company. Having considered CAFOD’s financial position and future plans, the activities were transferred to the new company as a going concern and so the financial statements have been prepared on the going concern basis. Further information is included on page 27 of the Trustees’ Report. • Basis of consolidation The group financial statements consolidate the financial statements of the charity and of its subsidiary undertaking, the CAFOD Trading Company Limited (see note 12). The results of the subsidiary are consolidated on a line by line basis. The charity has taken advantage of the exemptions available under FRS 8 not to disclose transactions with subsidiary undertakings. • Income All income is treated as unrestricted income and is available for expenditure approved by the Board unless the donor has specified the purpose or region in which the donation is to be spent, in which case it is treated as restricted income. Any amounts set aside for general administration and management on restricted funding contracts and on emergency appeals is treated as unrestricted income. All categories of income are credited to the Statement of Financial Activities in the year in which they are receivable. In respect of income from governments and other institutional donors this is when CAFOD can demonstrate entitlement to the income and has met the necessary conditions for its disbursement. Where only administrative requirements exist and other entitlement conditions are all satisfied, CAFOD will accrue the income. Any income restricted for expenditure in future years is deferred. Legacies are included in the Statement of Financial Activities when CAFOD is advised by the personal representative(s) of an estate that payment will be made or property transferred and the amount involved can be quantified. Income in kind:-food aid, agricultural inputs or other goods or services for which CAFOD accepts responsibility for distribution; is included in ‘Incoming resources from charitable activities’ at its market value when it is received within partner programmes, and as resources expended under ‘Charitable activities’ at the same value and time. • Resources expended Expenditure is included in the Statement of Financial Activities when incurred and includes attributable input VAT which cannot be recovered. Resources expended can be subcategorised as follows: Grants to partners:

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 partner programmes and comprise either cash funds transferred to the partners or in kind provision of goods and services procured on their behalf. Programme grants that have been approved but not yet disbursed at the balance sheet date are carried forward as programme creditors in the balance sheet.

32


29


Accounting policies (continued)

Activity and support costs:

Activity costs include the costs of the trading company and the costs of all teams in CAFOD other than Finance, Facilities, IT and Organisational Development and People functions, which are classified as support costs. Support costs are allocated to expenditure activity headings on the basis of the contribution the respective teams make to each activity. The expenditure activity headings are:

Costs of generating funds - Fundraising trading costs, the costs incurred in trading activities; Costs of generating funds - Costs of generating voluntary income, the costs incurred in attracting voluntary income; Charitable activities - international development, work with poor and disadvantaged communities in the global South to overcome poverty and bring about sustainable development and well-being; Charitable activities - disaster relief, work to protect lives and relieve suffering during emergencies and reduce the risks to vulnerable communities as a result of conflict and natural disasters; Charitable activities - development education, work to raise understanding of the causes of poverty and injustice to inspire a commitment to lasting change; Charitable activities - advocacy and campaigning, challenging those with power to adopt policies and behaviour that promote social justice and end poverty; Governance costs - includes the costs of internal and external audit, Board expenses and an apportionment of the salary costs of the senior executive team relating to time spent by them on the governance of CAFOD’s activities.

• Foreign currency translation Transactions in foreign currencies are translated at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rate of exchange on that date and any differences on exchange written off to the income and expenditure account.

• Pensions CAFOD operates four contributory money purchase pension schemes. Scheme funds are independent of CAFOD's finances and are administered by separate trustees for two schemes and by CAFOD trustees for two schemes. CAFOD's contributions are charged in the Statement of Financial Activities in the year in which they are made. One of the schemes that CAFOD is a member of is the Pensions Trust’s Growth Plan. The Growth Plan is a money purchase pension scheme which also has some historical guarantees. This is a multi-employer pension scheme for which it is not possible to identify separately the assets and liabilities of participating employers and, as such, CAFOD’s financial statements include pension costs payable in respect of this plan on a defined contribution basis. Further disclosures in relation to the Growth Plan are given in note 14. • Fixed assets Tangible assets costing £1,500 or more are capitalised. Depreciation on assets is charged from the date of first usage and provided on the straight line method at the following annual rates in order to write off each asset over its estimated useful life:

Leasehold land and buildings (subject to annual impairment review) 1-2% on cost Plant and machinery over 15 years

Computers, office furniture & equipment and motor vehicles 25% on cost

• Investments Investments are included on the balance sheet at their market value at the end of the financial year. Realised and unrealised gains and losses are credited, or debited, to the Statement of Financial Activities in the year in which they arise. Accounting policies (continued)






























































TrusteesTrustees


• Stock The cost of publications and promotional and educational material is written off in the year in which it is incurred. Stock held by the trading company for sale is shown at the lower of cost and net realisable value. • Fund accounting Designated funds comprise funds set aside out of unrestricted funds for specific future purposes. General reserves represent those monies that are freely available for application towards achieving any charitable purpose that falls within the charity's charitable objects. Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to conditions imposed by donors.

Endowment funds comprise monies that must be held indefinitely as capital. Income therefrom is credited to general funds and applied for general purposes unless under the terms of the endowment such income must be used for specific purposes in which case it is credited to restricted funds. • Operating leases Rentals payable under operating leases are charged to the SOFA as incurred over the term of the lease.

1. Incoming resources

1(a) Contributions from Caritas and other Catholic agencies were from:

2015 2014 £000 £000 Caritas Australia 389 548 Caritas Austria - 82 Caritas Belgium 33 (3) Caritas Denmark 38 - Caritas Germany 59 69 Caritas Italy 252 198 Caritas Japan 27 27 Caritas Korea 125 65 Caritas Luxembourg - 128 Caritas Aotearoa New Zealand 149 26 Caritas Norway 81 21 Caritas Spain 154 143 Caritas Switzerland 128 219 Catholic Relief Services 64 184 Cordaid - - Development & Peace 559 724 Scottish Catholic International Aid Fund 301 103 Sécours Catholique 170 92 Trócaire 125 247 Others 78 94

Caritas and other Catholic agencies

2,732 2,967 1(b) Government and institutional grants were from:

2015 2014 £000 £000


Notes to the Consolidated financial statements 31st March 2015

1. Incoming resources (continued)

1(b) Government and institutional grants were from:

2015 2014 £000 £000

Governmental: UK Government - DFID Programme partnership agreement 4,178 4,178 UK Government - DFID UK Aid Matched Funding 3,159 3,063 UK Government - DFID Typhoon Haiyan rapid response fund - 652 UK Government - DFID Emergency assistance Masisi DRC - 585 UK Government - DFID Hum. Assistance and protection DRC 606 - UK Government - DFID Sierra Leone 822 - UK Government - DFID Other 33 26 European Union 1,704 3,334 Government of Guernsey 99 40 Government of Isle of Man 36 53 Government of Ireland 262 - United Nations agencies 350 8 United Nations agencies (in kind) 29 -

Non-governmental: Big Lottery Fund Grant 132 - Christain Aid 28 - Comic Relief 198 15 HIVOS 75 84 Islamic Relief 301 50 Norwegian Church Aid 102 133 Norwegian Church Aid (in kind) 86 - START 528 - Others 492 73 Others (in kind) 29 - Positive Action for Children Fund - 103

Government and institutional programme grants 13,249 12,397

1(c) Donations from supporters in respect of emergency appeals can be analysed:

Unrestricted Restricted Total Total funds funds 2015 2014 £000 £000 £000 £000

Emergency appeals - direct 355 2,765 3,120 7,704 Emergency appeals - via DEC 82 2,542 2,624 1,199 Donations from supporters – emergency appeals

437 5,307 5,744

8,903













• Stock The cost of publications and promotional and educational material is written off in the year in which it is incurred. Stock held by the trading company for sale is shown at the lower of cost and net realisable value. • Fund accounting Designated funds comprise funds set aside out of unrestricted funds for specific future purposes. General reserves represent those monies that are freely available for application towards achieving any charitable purpose that falls within the charity's charitable objects. Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to conditions imposed by donors.

Endowment funds comprise monies that must be held indefinitely as capital. Income therefrom is credited to general funds and applied for general purposes unless under the terms of the endowment such income must be used for specific purposes in which case it is credited to restricted funds. • Operating leases Rentals payable under operating leases are charged to the SOFA as incurred over the term of the lease.

1. Incoming resources

1(a) Contributions from Caritas and other Catholic agencies were from:

2015 2014 £000 £000 Caritas Australia 389 548 Caritas Austria - 82 Caritas Belgium 33 (3) Caritas Denmark 38 - Caritas Germany 59 69 Caritas Italy 252 198 Caritas Japan 27 27 Caritas Korea 125 65 Caritas Luxembourg - 128 Caritas Aotearoa New Zealand 149 26 Caritas Norway 81 21 Caritas Spain 154 143 Caritas Switzerland 128 219 Catholic Relief Services 64 184 Cordaid - - Development & Peace 559 724 Scottish Catholic International Aid Fund 301 103 Sécours Catholique 170 92 Trócaire 125 247 Others 78 94

Caritas and other Catholic agencies

2,732 2,967 1(b) Government and institutional grants were from:

2015 2014 £000 £000






Unrestricted Restricted Total Total funds funds 2015 2014

£000 £000 £000 £000


437 5,307 5,744

8,903







£000 £000 £000 £000


437 5,307 5,744

8,903







£000 £000 £000 £000


437 5,307 5,744

8,903







£000 £000 £000 £000


437 5,307 5,744

8,903


2. Total resources expended

Activity Support Total Total Grants costs Costs 2015 2014

£000 £000 £000 £000 £000 Cost of generating funds Fundraising trading costs - 25 - 25 47 Cost of generating voluntary income - 5,237 852 6,089 5,839 Charitable activities International development 14,615 6,327 1,594 22,536 23,938 Disaster relief 13,165 3,550 775 17,490 14,542 Development education 100 2,321 470 2,891 2,815 Advocacy and campaigning 139 3,243 632 4,014 3,911 Governance costs - 516 39 555 367 Total resources expended 28,019 21,219 4,362 53,600 51,459

Amounts included as grants include both cash payments made to partners and in-kind goods and services procured by CAFOD on their behalf. Support costs are allocated on the basis of the full time equivalent number of staff contributing towards each activity and are categorised as follows:

2015 2014

£000 £000

Information technology 1,904 1,260

Human resources & organisational development 1,141 1,226

Financial management 722 1,037

Premises and facilities 595 604

Support costs 4,362 4,163 Governance costs are made up as follows:

2015 2014

£000 £000

Board training and meeting costs 8 8

Audit fees (UK and overseas) 75 67

Legal services 134 47

Internal audit 108 69

Strategic management and directorate 191 148

Allocated support costs 39 28

Governance costs 555 367



3. Grants payable in the furtherance of the charity’s objectives

Grants are funds made available to partner programmes, mainly comprising the transfer of cash funding but also including the provision of in kind goods and services procured by CAFOD on behalf of partners.

Analysis by region 2015 2015 2014 2014

no. of

grants £000 no. of

grants £000 Africa 266 15,446 228 15,700 Latin America and Caribbean 135 3,987 141 4,456 Asia and Middle East 114 7,838 135 5,143 Global, policy and education 62 748 77 990

Total grants 577 28,019 581 26,199

A list of grants is available from: Director of Finance and Services, CAFOD, Romero House, 55 Westminster Bridge Road, London, SE1 7JB.

Analysis by sector 2015 2015 2014 2014

no. of

grants £000 no. of

grants £000

Conflict Resolution 38 1,106 32 917 Economic Advocacy 102 1,420 57 1,343 Education 33 332 43 397 Disaster relief 103 13,166 114 10,316 Health 27 1,398 32 1,989 HIV/AIDS 44 1,902 54 1,845 Human Rights 117 3,238 132 3,507 Sustainable Livelihoods 113 5,457 117 5,885

Total grants 577 28,019 581 26,199


Notes to the consolidated financial statements 31st March 2015 3. Grants payable in the furtherance of the charity’s objectives (continued)

2015 2015 2014 Africa no. of grants £000 £000

Burundi 2 36 18 Central African Republic 1 25 29 Democratic Republic of Congo 45 1,308 1,811 Egypt 1 - 20 Eritrea 1 1,376 1,602 Ethiopia 5 1,030 749 Kenya 35 1,163 1,806 Liberia 7 313 230 Malawi 7 210 145 Mozambique 16 321 852 Namibia - - 20 Niger 10 322 288 Nigeria 11 224 667 Rwanda 2 43 40 Sierra Leone 16 2,139 457 Somalia - - (9) South Sudan 24 1,847 883 Sudan 14 1,769 2,341 Swaziland 5 67 203 Tanzania - - 164 Uganda 17 798 697 Zambia 8 589 935 Zimbabwe 28 1,619 1,486 Multi-Country 11 247 266

Africa 266 15,446 15,700



3. Grants payable in the furtherance of the charity’s objectives (continued)

2015 2015 2014 Latin America and Caribbean no. of grants £000 £000

Bolivia 20 495 478 Brazil 29 1,300 1,272 Colombia 16 707 538 El Salvador 6 166 154 Guatemala 11 338 511 Haiti 2 7 319 Honduras 5 98 150 Mexico - - 95 Nicaragua 9 232 256 Paraguay - - 55 Peru 15 333 327

Multi-country 22 311 301

Latin America and Caribbean 135 3,987 4.456

Asia and Middle East 2015 2015 2014 no. of grants £000 £000

Afghanistan 5 211 109 Bangladesh 12 263 263 Cambodia 15 414 349 East Timor - - 59 India - - 50 Iraq 2 75 31 Israel 4 100 66 Jordan 2 249 155 Lebanon 7 489 433 Myanmar 22 426 325 Pakistan 5 975 286 Philippines 10 3,626 1,721 Sri Lanka 17 590 287 Syria 3 120 576 Thailand - - 20 Turkey 1 48 35 West Bank and Gaza 3 68 290 Multi-country 6 184 88

Asia and Middle East 114 7,838 5,143



4. Net (outgoing)/incoming resources for the year Net (outgoing)/incoming resources are stated after charging/(crediting) the following:

2015 2014

£000 £000

Depreciation of tangible fixed assets 363 377

Auditor’s remuneration: UK audit - CAFOD 33 32

Auditor’s remuneration: UK non audit - CAFOD 7 3

Auditors remuneration: audit – CAFOD Trading 3 2

Profit on sale of tangible fixed assets (11) (3)

Operating leases: land and buildings 275 255

5. Employees and Trustees

The average full time equivalent (FTE) number of employees employed during the year and their cost can be broken down as follows: FTE Cost FTE Cost 2015 2015 2014 2014 No. £000 No. £000 Generating funds 88 3,886 89 3,590 International development 170 5,122 169 4,810 Disaster relief 82 2,761 82 2,535 Development education 50 2,117 50 1,985 Advocacy and campaigning 67 2,915 67 2,703 Governance 4 280 3 221 461 17,081 460 15,844

Total employee costs by expense category were:

2015 2014

£000 £000

Salaries 14,418 13,522

Employer's social security costs 1,298 1,202

Employer's pension contributions 1,365 1,120

17,081 15,844

Included in the above staff costs are costs relating to redundancy and compensation for loss of office of £194,988 (2014: £25,756).

5. Employees and Trustees (continued) In addition to these employees, CAFOD relied on the services of 2,402 parish-based

volunteers, 291 school volunteers and many engaged in work outside their parishes. CAFOD also recruited and employed an average of 9 international humanitarian programme staff (2014: 8) at a cost of £335,000 (2014: £304,000) who were seconded to partners’ relief operations and














4. Net (outgoing)/incoming resources for the year Net (outgoing)/incoming resources are stated after charging/(crediting) the following:

2015 2014

£000 £000

Depreciation of tangible fixed assets 363 377

Auditor’s remuneration: UK audit - CAFOD 33 32

Auditor’s remuneration: UK non audit - CAFOD 7 3

Auditors remuneration: audit – CAFOD Trading 3 2

Profit on sale of tangible fixed assets (11) (3)

Operating leases: land and buildings 275 255

5. Employees and Trustees

The average full time equivalent (FTE) number of employees employed during the year and their cost can be broken down as follows: FTE Cost FTE Cost 2015 2015 2014 2014 No. £000 No. £000 Generating funds 88 3,886 89 3,590 International development 170 5,122 169 4,810 Disaster relief 82 2,761 82 2,535 Development education 50 2,117 50 1,985 Advocacy and campaigning 67 2,915 67 2,703 Governance 4 280 3 221 461 17,081 460 15,844

Total employee costs by expense category were:

2015 2014

£000 £000

Salaries 14,418 13,522

Employer's social security costs 1,298 1,202

Employer's pension contributions 1,365 1,120

17,081 15,844

Included in the above staff costs are costs relating to redundancy and compensation for loss of office of £194,988 (2014: £25,756).

5. Employees and Trustees (continued) In addition to these employees, CAFOD relied on the services of 2,402 parish-based

volunteers, 291 school volunteers and many engaged in work outside their parishes. CAFOD also recruited and employed an average of 9 international humanitarian programme staff (2014: 8) at a cost of £335,000 (2014: £304,000) who were seconded to partners’ relief operations and


hosted a further 2 people (2014: 2) employed by AB Colombia costing £74,000 (2014: £70,000).

The trustees do not receive any remuneration for their services. CAFOD paid the cost of travel

for four trustees (2014: three trustees) to attend quarterly board meetings and for the accommodation of all trustees at the annual residential board meeting, and also paid the costs for two trustees to visit CAFOD programmes during the year (2014: three). Together, this cost a total of £7,211 (2014: £7,774).

The number of other employees whose emoluments (excluding employer’s pension contributions) amounted to over £60,000 in the year was as follows:

2015 2014

No. No.

£60,001-£70,000 3 4

£70,001-£80,000 2 2

£90,001-£100,000 1 1 The highest paid employee, the Director of CAFOD, received remuneration for the year of

£91,423 (2014: £90,464). Pension contributions of £59,803 (2014: £50,844) were made for the 6 (2014: 6) higher paid employees in the year.

Employer’s pension contributions include £31,224 (2014: £29,004) paid to pension schemes,

the trustees of which are the same as the Foundation trustees of CAFOD. 6. Taxation

CAFOD is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities. All of its income falls within the various exemptions available to registered charities.

Trustees TrusteesTrustees

Trustees

Trustees

Trustees

Notes to the consolidated financial statements 31st March 2015 7. Fixed assets

7a) Tangible fixed assets

Leasehold land and

buildings

Office equipment

Motor vehicles

Total

£000 £000 £000 £000 Cost At 1 April 2014 11,533 590 684 12,807 Additions - 339 100 439 Disposals - (80) (47) (127) At 31 March 2015 11,533 849 737 13,119 Accumulated depreciation At 1 April 2014 597 476 505 1,578 Charge for the year 212 56 95 363 On disposals - (80) (32) (112) At 31 March 2015 809 452 568 1,829 Net book value At 31 March 2015 10,724 397 169 11,290 At 1 April 2014 10,936 114 179 11,229

As at 31 March 2015, CAFOD had capital commitments of £213,840 related to the supporter database (2014: nil). Leasehold land and buildings includes Romero House (net book value at 31 March 2015: £10.4m) which is used as CAFOD’s head office and The Stableyard (net book value at 31 March 2015: £0.3m) which is leased to another international development charity at less than market value.

7b) Investments

2015 2014 £000 £000 Sterling deposits 3,540 3,540 Permanent endowment fund 478 439 Investments 4,018 3,979

The permanent endowment fund is invested in CCLA Charities Ethical Investment Fund Income Units at a historic cost as at 31st March 2015 of £449,024 (2014: £449,024). The movement on investments during the year was:

2015 £000 Market value brought forward 439 Unrealised gain 39 Market value carried forward 478

CAFOD also owns the entire £3 share capital of The CAFOD Trading Company Limited (Company Registration No. 989846), details of which are included in note 12 below.


Notes to the consolidated financial statements 31st March 2015 8. Debtors and prepayments

Group

2015 Group

2014 £000 £000 Interest receivable 43 50 Taxation recoverable 777 511 Accrued income 1,688 1,031 Prepayments 315 178 Other debtors 291 316 Debtors and prepayments 3,114 2,086

Included in accrued income above is an amount of £291,000 (2014: £110,000) relating to legacies. At the balance sheet date, CAFOD also had entitlement to a number of legacies from estates for which the administration had yet to be finalised. The future income from these legacies is estimated at £2,200,000 (2014: £3,300,000).

9. Creditors falling due within one year

Group

2015 Group

2014 £000 £000 Programme creditors 4,537 5,112 Taxtion and social security 335 318 Other creditors and accruals 1,032 959 Interest free loans from supporters 53 83 Creditors due within one year 5,957 6,472

Other creditors and accruals include pension contributions of £135,795 (2014: £294,884). Programme creditors represent grants approved that are yet to be paid to partners. Some grants for partners are approved in principle for two or three years. Second and third year grants represent planned future commitments, but are not recognised as a liability when they are approved, as payment is conditional upon satisfactory progress. As at 31 March 2015 planned future commitments under formal multi-year funding cycle approvals amounted to £7.1m (2014: £7.2m).

10. Unrestricted reserves and funds

Balance Incoming Resources Balance 1 Apr 14 resources Transfers Expended 31 Mar 15 £000 £000 £000 £000 £000

General funds Stabilisation fund (in cash) 3,540 - - - 3,540

Stabilisation fund (in fixed assets) 5,460

- - - 5,460 Free reserves 513 37,214 (10,074) (25,504) 2,149 9,513 37,214 (10,074) (25,504) 11,149 Designated funds Fixed asset fund 5,769 - 424 (363) 5,830 Programme fund 7,591 - 9,650 (6,898) 10,343 22,873 37,214 - (32,765) 27,322

10. Unrestricted reserves and funds (continued)



10. Unrestricted reserves and funds (continued)

General funds: General funds are unrestricted funds in hand, over and above those set aside for designated purposes. These are held either because more general income has been received than was expected or because budgeted expenditure has not been incurred. The trustees have established a policy to spend any general reserves on CAFOD’s programme and partners promptly, taking the opportunity to meet existing needs or invest for the future, whilst ensuring that any further commitments which the expenditure generates are sustainable.

The trustees have established a stabilisation fund to limit the risk of disruption to CAFOD’s charitable programme associated with the financial risks the organisation faces. Alongside the potential risks associated with the assets that CAFOD holds and with potential unforeseen costs, the trustees consider the main financial risk to be an unexpected downturn in budgeted general income. To cope with any unexpected downturn in budgeted general income without damaging the long-term programme commitments that CAFOD makes to its partners, CAFOD would need at least two years to adjust these programmes. Based upon a possible shortfall of 15 per cent in the budgeted general income and the need for two years to adjust programmes, the trustees have established the level of the Stabilisation fund at 30 per cent of the budgeted general income for the coming year.

When the construction of Romero House, CAFOD’s head office, was completed at a cost of just under £11m around half was funded from selling the previous head office and the remainder from using cash already held as the stabilisation fund. The trustees have agreed to hold some of this stabilisation fund in property on the understanding that if CAFOD ever needs to utilise these funds then it will take out a loan mortgaged on the new offices to release the necessary cash. CAFOD's bankers have signified their willingness in principle to provide such a loan.

Designated fixed assets fund: The fund for fixed assets represents the net book value at the balance sheet date of unrestricted tangible fixed assets, other than those covered by the stabilisation fund, as explained above. This fund is not therefore available for current expenditure, as the assets are used in the day to day operation of the charity.

Designated programme fund: The fund represents available funds which the trustees have designated for expenditure on specific programme activities within the detailed budget for the coming years.

11. Restricted funds

Balance Incoming Unrealised Resources 1 Apr 14 Resources Gain expended 31 Mar 15 £000 £000 £000 £000 £000

Restricted funds General donations & legacies 308 5,127 - (4,858) 577

Emergency appeal donations 7,050 5,307 - (7,548) 4,809

Caritas / Catholic agencies 344 2,592 - (2,664) 272 Government and institutions 138 5,766 - (5,765) 139

Permanent endowment Sr. Laura Tanti Foundation 439 - 39 - 478

Restricted funds 8,279 18,792 39 (20,835) 6,275







11. Restricted funds Balance Incoming Unrealised Resources 1 Apr 14 Resources Gain expended 31 Mar 15 £000 £000 £000 £000 £000























11. Restricted funds Balance Incoming Unrealised Resources 1 Apr 14 Resources Gain expended 31 Mar 15 £000 £000 £000 £000 £000






Trustees

Trustees

Trustees

Trustees

Trustees

Trustees

Notes to the consolidated financial statements 31st March 2015 11. Restricted funds (continued)

The balances on restricted funds represent those amounts received from donors for specified purposes or regions that had not been expended at the balance sheet date. As at 31 March 2015 the balances held were for the following purposes:

2015 2014 £000 £000 Africa Programme 2,177 1,725 Asia and Middle East Programme 3,356 5,995 Latin America Programme (93) (45) General Programme 357 165 Permanent endowment 478 439 Total restricted and permanent endowment funds 6,275 8,279

For programme grants from governments and institutions, the timing of receiving funds and

spending on programmes activities varies, with some programmes in surplus (with grants received in advance of being spent) and some in deficit (with funds received after being spent). The balance of funds from governments and institutions at 31 March 2015 is shown net with:

2015 2014 £000 £000 Programme grants in surplus 1,637 1,457 Programme grants in deficit DRC Programme (20) (589) Kenya Programme (332) (368) Lebanon Programme (4) (17) Nigeria Programme (58) (129) Sierra Leone (430) - Zimbabwe Programme (202) (60) Other programmes (452) (158)

Government and institutional grants 139 138

The Permanent Endowment relates to the Sister Laura Tanti Foundation for which CAFOD has received cumulative donations of £421,155 (2014: £421,155) held under trust deeds. The trustees of CAFOD hold this amount and its income in trust and will apply the income for the benefit of the poor as stipulated.


Notes to the consolidated financial statements 31st March 2015 12. Analysis of net assets between funds of the charity and trading company

Unrestricted

funds £000

Restricted

funds £000

Permanent endowment

funds £000

2015 Total

charity £000

2014 Total

charity £000

Fund balances at 31 March 2015 are represented by:

Tangible fixed assets 11,290 - - 11,290 11,229 Investments 3,540 - 478 4,018 3,979 Net current assets 12,492 5,797 - 18,289 15,944 Total net assets 27,322 5,797 478 33,597 31,152

CAFOD, the charity, owns the entire £3 share capital of The CAFOD Trading Company Limited

(Company Registration No. 989846), the principal activity of which is to carry out commercial activities for the benefit of the charity.

In addition to the above, there was £83,774 (2014: £97,336) owing from the CAFOD Trading Company to the charity as at 31 March 2015.

The turnover of the CAFOD Trading Company for the year was £67,200 (2014: £51,188). All the

profits of the company, which would otherwise be liable to corporation tax, are payable under Gift Aid to the charity, CAFOD. The gross payment for the year therefore amounted to £42,639 (2014: £3,866). This payment is considered to be a charitable contribution. The net assets of the company at 31 March 2015 were £3 (2014: £3).

13. Handling funds and accounting services for other agencies

CAFOD provides accounting and company secretarial support to Crosby Support Limited, a

company (number 2949213) formed by CAFOD supporters to operate a shop in Waterloo, Liverpool. The shop acts as a focal point for CAFOD supporters in the Liverpool area to meet and participate actively in CAFOD’s charitable aims, vision and values, locally. Since it began in 1993, Crosby Support Limited has donated £626,535 to CAFOD. Crosby Support Limited has its registered office at CAFOD’s head office, Romero House.

14. Pension costs The charity operates four contributory money purchase pension schemes. Scheme funds are

independent of the charity and are administered by CAFOD foundation trustees for two schemes and separate trustees for the other two schemes. For these schemes, CAFOD paid contributions at the basic rate of 10 per cent during the year and members paid contributions at a basic rate of 5 per cent during the year. For members with more than 10 years service, CAFOD paid 12.5 per cent and also matched any additional members’ contributions up to a maximum of 17.5 per cent in total.

One of the schemes that CAFOD participates in is the Pensions Trust’s Growth Plan, a multi-employer pension plan which is funded and is not contracted out of the state scheme. As at the balance sheet date there were 165 active members of the Growth Plan (31 March 2014: 171). CAFOD intends to continue to offer membership of the Growth Plan to its employees along with the Pension Trust’s Flexible Retirement Plan.

14. Pension costs (continued)



Unrestricted

funds £000

Restricted

funds £000

Permanent endowment

funds £000

2015 Total

charity £000

2014 Total

charity £000
















Unrestricted

funds £000

Restricted

funds £000

Permanent endowment

funds £000

2015 Total

charity £000

2014 Total

charity £000















Foundation Trustees for twoTrustees


14. Pension costs (continued) Contributions paid into the Growth plan up to and including September 2001 were converted to

defined amounts of pension payable from normal retirement date. From October 2001 contributions were invested in personal funds which have a capital guarantee and which are converted to pension on retirement, either within the growth plan or by the purchase of an annuity.

The trustee of the plan commissions an actuarial valuation every three years to determine the funding position of the plan by comparing the assets with the past service liabilities at the valuation date and the rules of the plan give the trustee the power to require employers to pay additional contributions in order to ensure that the statutory funding objective under the Pensions Act 2004 is met.

The triennial actuarial valuation results at 30 September 2014 are yet to be published. The

triennial actuarial valuation results at 30 September 2011 were finalised during the year ended 31 March 2013. The valuation of the plan was performed by a professionally qualified actuary using the Projected Unit Method. The market value of the Growth plan’s assets at the valuation date was £780 million and the plan’s technical provisions (i.e. past service liabilities) were £928 million. The valuation therefore revealed a shortfall of assets compared with the value of liabilities of £148 million, equivalent to a funding level of 84 per cent.

The valuation resulted in a proposed recovery plan being issued by the Actuary which sets out

the steps needed to make up the funding shortfall. Part of this recovery plan requires that participating employers including CAFOD will pay additional contributions over a ten year period to help eliminate the scheme’s current deficit. CAFOD’s additional contribution in respect of the year ended 31 March 2016 will be £75,432 and contributions for the following seven years will be this sum increased by 3% compound per year. CAFOD’s regular pension contributions for the year ended 31 March 2016 for all its pension arrangements are estimated to be £1,267,000 (2015: £1,270,000).

Following changes in legislation in September 2005 and November 2011, there is a potential

debt on the employer that could be levied by the plan’s trustee. The plan’s trustee’s policy was that the application of the potential debt only applied to employers with pre October 2001 liabilities in the plan. The Pensions Act 2011 extended this definition to include post October 2001 contributions. The debt is only due in the event of the employer ceasing to participate in the plan or the plan winding up.

CAFOD has been notified by the Pensions Trust of the estimated employer debt on withdrawal

from the plan based on the latest assessed financial position of the plan as at 30 September 2014. As of this date the estimated share of the employer debt for CAFOD was £2,798,873 (30 September 2013: £2,136,816).

In the opinion of CAFOD’s trustees, as CAFOD intends to continue offering membership of the plan and as they are unaware of any intention for the plan to be wound up, the debt is unlikely to crystallise in the foreseeable future and therefore no provision is required to be made in these financial statements.












Trustee’s

Trustees


15. Operating lease commitments

At 31 March 2015, CAFOD and CAFOD Group were committed to making the following

payments during the next year in respect of operating leases for land and buildings in England and Wales that expire as follows:

2015 £000

2014 £000

Within one year 16 16 In the second to fifth years inclusive 11 4 27 20

16. Foreign exchange forward contracts During the year CAFOD entered into foreign exchange forward contracts with the objective of

partially hedging currency exposure on future overseas expenditure. The fair value of these contracts is calculated at the balance sheet date by comparison between the rate implicit in the contract and the exchange rate at that date.

The contracts are to purchase US Dollars (USD) and sell Sterling (GBP) for a period of up to 12

months in duration, at USD/GBP rates between 1.46 and 1.67. At the balance sheet date, a purchase value of USD 9.5 million remained on these contracts representing approximately 41% of forecast USD correlated overseas charitable expenditure for 2015/16 that is not funded back to back in USD. The unrealised gain on these contracts at 31 March 2015 which has not been included in these financial statements was £344,000 (2014: unrealised loss £64,000).












Organisational detailsPrincipal and registered address Romero House 55 Westminster Bridge Road London SE1 7JB

Patron His Eminence, Cardinal Cormac Murphy-O’Connor

Foundation Trustees Right Reverend John Arnold (Chair) Right Reverend Kieran Conry (to 16 December 2014) Right Reverend John Sherrington (from 16 December 2014) Catherine Newman QC Mary Ney

Trustees Charles Reeve-Tucker FCA (Honorary Treasurer) (to 31 October 2014) Janet M Wilkinson ACA (Honorary Treasurer) (from 31 October 2014) John Darley (vice-Chair) Dominic Jermey OBE CvOLeslie Ferrar CvO FCA (to 3 July 2014) Joanne Rule MBEChristopher Knowles (to 4 December 2014) Margaret Mwaniki Fr James O’Keefe Fr Timothy Radcliffe OP (to 1 August 2014) Hugo Slim Megan Russell (from 4 December 2014)

Corporate leadership Chris Bain - Director Jacquie Heany - Organisational Development and People Jo Kitterick - Corporate Planning and Governance Tom O’Connor - Communities and Supporters Geoff O’Donoghue - International Programme James Steel - Finance and Services Neil Thorns - Advocacy Programme

Principal professional advisers Auditors: Crowe Clark Whitehill LLP, Salisbury Square, London

Solicitors: Bates Wells Braithwaite, Cannon Street, London

Bankers: Royal Bank of Scotland, Cavendish Square, London


CAFOD, Romero House, 55 Westminster Bridge Road, London SE1 7JB.

Tel: 020 7095 5670Email: [email protected]

cafod.org.uk

Registered charity number 285776

Printed on paper from well-managed forests

Report of the Trustees and Financial Statements · Report of the Trustees Letter from the Chair 2...

Documents

Transcript of Report of the Trustees and Financial Statements · Report of the Trustees Letter from the Chair 2...