Table of A WORD FROM THE CHAIRMAN & CEO 4 INTRODUCTION 6 ABOUT US 8 THE FORGOTTEN REFUGEES 10 OUR PROJECT 14 OUR PARTNERS 20

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2 2 ETHAR ANNUAL REPORT Table of Contents A WORD FROM THE CHAIRMAN & CEO 4 INTRODUCTION 6 ABOUT US 8 THE FORGOTTEN REFUGEES 10 OUR PROJECT 14 OUR PARTNERS 20 VOLUNTEERS, RESERVE POLICY & FUNDING TYPES 22 COMMUNICATION & RISK MANAGEMENT 23 FINANCIAL REVIEW 24 ACCOUNTS 28 ACKNOWLEDGMENTS 38

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4 4 ETHAR ANNUAL REPORT A Message from the Chair of the board & ceo of ethar 2016 marked Ethar Relief 10 year s anniversary of dedicated work with the forgotten Eritrean refugees. As the suffering of the Eritrean Refugees continue in its 6 decay now, Ethar continue to be at the front line providing much needed emergency relief support to thousands of Widows, Orphans, Elderly and needy people. The focus on was Education, as we believe that Education is the best support we can give these forgotten refugees and empower them for a brighter future. With the generous donation from funders and Friends of Ethar, and great partnership with number of charitable organisations, Ethar was able to build a secondary boarding school for the Orphan girls. This was one of many projects including: water well, mobile clinic, orphans sponsorship and thousands of food packs distribution which making positive impact on the life of these refugees. Ethar s work in 2016 was extended to the IDPs from Yemen, which find themselves in the middle of civil war; Ethar was able to deliver thousands of food packs and medical care in many towns including Sanaa, Hudaida and Taiz. Our vision is to ensure that every child in the Horn of Africa (refugee camps in Eastern Sudan and in all regions that Ethar is actively covering to be) given the opportunity to live a dignified life and have access to Education. Our plan in has been is to continue focusing on Education. We plan to expand on our school-feeding programme; open few more secondary schools and ensure that as many Orphans as possible have access to Secondary and higher Education. Our donors and Volunteers are the heart and soul of this wonderful work in these forgotten areas. Their continuous support will ensure that there is a better future for the Orphans and children of the Refugee camp. This report highlight the growth and progress Ethar achieved in the past 12 months; breaking for the first time the One-million-pound barrier. This is testimony to collaboration between all parties including our Board of trustees, Staff, Volunteers, Supporters, Donors, Grant givers and our partners on the field. We always believe that together we can make huge difference and ensure that the forgotten refugees are always remembered. Abdulkadir Naib Chair of the Board Sultan Omar Executive Director

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6 6 ETHAR ANNUAL REPORT Introduction Although tremendous progress has been made by Ethar Relief, the unresolved humanitarian situation in Eritrea unrelentingly continues and the country is still ranked among the top 10 poorest in the world. Eritrea continues to suffer from famine, drought, and political unrest, which has led to the creation of one of the world s largest refugee populations. Since its establishment 10 years ago, Ethar Relief has taken a leading role in raising international awareness and delivering essential aid to these refugees. Ethar has actively engaging with a wide range of stakeholders to ensure that the forgotten victims are helped and supported, and their stories are heard. Ethar is one of the very few organisations providing aid to Eritrean refugees in East Sudan, a region which has seen an enormous influx of refugees from the Eritrean and Ethiopian war. There are now over 350,000 refugees who live in camps and suffer from sub-human conditions, creating the world s largest refugee camp in one area. Although the number of Eritrean refugees exceeds half a million in East Sudan, there are thousands more living under very difficult circumstances in Yemen, Djibouti and Ethiopia. They lack the most basic necessities such as shelter, clean drinking water and food, and access to essential services such as hospitals and schools is virtually non-existent.

7 ETHAR ANNUAL REPORT 7 There are now over 500,000 refugees who live in the camps and suffer in sub-human conditions.

8 8 ETHAR ANNUAL REPORT ABOUT US Ethar Relief provides humanitarian relief to the forgotten Eritrean refugees in East Sudan and Yemen through projects supporting Education, Water & Sanitation, Shelter, Health and Orphan Sponsorship, as well as offering Emergency Food Provision. Since our launch 10 years ago we have transformed lives and empowered communities in many refugee camps, giving hope to refugees who have continued to struggle for almost 50 years. OBJECTIVES & ACTIVITIES OBJECTIVES: Our primary focus is to provide a comprehensive package of humanitarian assistance to people in the Horn of Africa, specifically (but not exclusively) Eritrean refugees in Sudan and neighbouring countries. We also support refugees originating from the region who reside in the United Kingdom. Our aims include: a) To alleviate the suffering of refugees by providing emergency aid such as food, clean water supply and medical provisions. b) To combat the long-term effects of poverty by setting up educational institutions and student sponsorship which develop academic, practical and psychological skills. c) To empower women, designing our programmes to ensure they have greater opportunities and choices through education and employment, enabling them to participate in the positive development of their communities. ACTIVITIES: One of the greatest challenges, in addition to delivering aid, is raising awareness of the long-ignored crisis in the region. To this end, the Ethar management team and volunteers have conducted proactive media and public awareness campaigns through TV interviews, information drives, fundraising, and awareness programmes. These initiatives have proved supportive of our programmes in the field. PROGRAMMES : Ethar Relief has continued to implement humanitarian programmes and fund charitable activities in conjunction with its partners in Sudan & Yemen. Highlights of these include: Distributing food during the month of Ramadan and providing Qurbani Establishing a local mosque and secondary school for boys in Um-Ghargoor Supporting displaced individuals and families in Yemen in the form of food parcels Providing orphan sponsorship to over 500 children in Yemen FUNDRAISING : In order to sustain ongoing projects and create new programmes in response to developing challenges, Ethar has several active concurrent strategies to raise funds. Over the course of this year, major fundraising campaigns were carried out, raising a considerable amount of income during the Ramadan and Qurbani period. The Executive Team continued to promote the cause of Eritrean refugees in Sudan on various TV programmes, and in other forums and networks globally.

9 ETHAR ANNUAL REPORT 9 Trustees Mr Abdulkadir A Naib (chair) Mr Abdulrahman Saleh Mahmud (secretary) Mr Iddriss Sayed Abdulkader (treasurer) Miss Hanan Basher Mr Mohammed Juma Bakhit Mr Abdelsalam Mohamed Ali MR Sultan Omar MR Saeed ABDELRAHMAN CEO coo CONSULTANTS Mr Nesredin Haghamed (IRW- CEO) Dr Saoud Mohammed (senior lecturer university of Westminster) ACCOUNTANT Abdullah Mohamud ACMA,CGMA Chartered Management Accountant Almanaar 244 Acklam Road, London, W10 5YG AUDITOR Shareef & Co - Statutory Auditor Stoney Lane, Birmingham B25 8YP BANKERS NATWESTBANK 308 HARBOURNE ROAD, BIRMINGHAM, B15 3AA Al-Rayan Bank 394 Coventry Rd, Birmingham, B10 0UF Charity registration number: England & Wales

10 10 ETHAR ANNUAL REPORT The forgotten refugees... a story of continued suffering For thousands of children, dreams of a normal life end at the refugee camp. Here is why: Eritrean refugees survive on the absolute minimum living standard, with the majority receiving for only enough sustenance to cover 3 days in a week. Thousands of families are now entering their third generation of living exclusively in a refugee camp. There are over 14 refugee camps in East Sudan, 3 refugee camps in Yemen, more than 6 refugee camps in Ethiopia, and thousands scattered across Djibouti, with the majority receiving little or no support or international aid. The UNHCR has significantly reduced its support to these vulnerable refugees, and the subsequent aid vacuum leaves thousands on the brink of starvation, disease and death. As they grow up, thousands of desperate young people from these camps risk everything to try and migrate to Europe, Israel, or other nearby stable countries. This leaves them open to extreme danger, trafficking and exploitation, with the majority suffering death, kidnap, torture, rape and slavery.

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12 12 ETHAR ANNUAL REPORT Our Projects As the Middle East becomes increasingly more unstable with war and hunger affecting more countries in the region, aid from the international community to our forgotten Eritrean refugees in Sudan and Yemen continues to diminish even further, increasing the level of hunger, poor nutrition, disease and famine. With hundreds of thousands trapped in these refugee camps which lack the basic necessities of life, Ethar has made every effort to reach out to maximum number of these unfortunate refugees. Eritrea; the second largest refugee producing country in the world, after Syria. Ethar is supporting over 100,000 refugees in Sudan & Yemen

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14 Proje 14 ETHAR ANNUAL REPORT Emergency Aid Over 500,000 of food aid was provided to the most needy and vulnerable people in East Sudan and Yemen. Our food pack distribution, hot meals, and nutritional supplies such as milk made huge differences to the lives of thousands of refugees across 18 refugee camps. Our family feeding program has been supporting over 500 families for the past 12 months, ensuring that the most vulnerable people continue to receive monthly food packs. Overall, more than 100,000 refugees and needy people have benefited from our emergency food aid. RAMADAN Ramadan has been another inspirational period for us, with our amazing donors and supporters raising 40% of our total income in the Ramadan 2015 appeal. These wonderful donations and grants helped us reach out to wide range of people in the refugee camps, and also extend this reach to rural areas. Ethar was able to provide hot meals (Iftar Sayem) and food packs in 14 refugee camps as we distributed Zakat and Sadaqa (cash grants) to over 50,000 refugees, orphans and needy people. Next Ramadan we hope to feed over 100,000 refugees

15 ETHAR ANNUAL REPORT 15 cts QURBANI Over 36,000 orphans, children and elderly peo- ple bene ted from our Qurbani Projects. The consumption of meat is very rare in the refugee camps and for hundreds this is often the only opportunity to enjoy meat and its nutritional benefits. Qurbani meat was distributed to over 14 refugee camps and 5 towns in Sudan and Yemen. It so amazing that people who are thousands of miles away from us, remember us and share their Qurani with our kids, may Allah accept from them a widow from the refugee camp. FAMILY FEEDING Our family feeding project delivers door-todoor food packs directly to 500 particularly needy families. It continues to grow year-onyear, and has ensured that these vulnerable families are guaranteed food on their table on a daily basis throughout the year. Thanks to continuous funding from our partner Charity Right, this project has preserved the dignity of hundreds of particularly marginalised families. Al-Hamdulillah, if it was not for this help, I would be begging from neighbours who have nothing to offer, I am always grateful for these continuous & generous donations Mr Mohammed, a beneficiary who also relies upon wheelchair assistance.

16 Proje 16 ETHAR ANNUAL REPORT School Meals Education Our School Meals project has made a huge impact on the attendance levels of students as well as their academic achievements. Funded by Charity Right, this project is ensuring that students regularly receive at least one daily meal in day-schools and 3 meals in boarding schools. Attendance in some schools has improved by 20% to reach 98%, and schools witnessed returns of tens of students who left in the past due to lack of food and the opportunity costs of education. To have 3 meals a day, it feels like heaven has opened its door to us headteacher of a Boarding school in Kassala in East Sudan At Ethar, we recognise that the long-term stability and development of the region as a whole will be achieved through the education of its inhabitants, and the widening of opportunities to develop themselves and their communities. We have taken a lead in bringing long-term hope and benefits to marginalised children by supporting 12 schools through the provision of meals, teachers salaries, books and building maintenance. The medium-term aim is to increase attendance to 90% through these measures. Ethar continues to support students in higher education and Hifz programmes, and is committed to the ongoing sustainability of all projects.

17 ETHAR ANNUAL REPORT 17 cts Health Water Ethar continues to provide essential health programmes and medical aid distributions in a number of locations across the refugee camps. This includes the Al-Rahma Health Clinic in Karakora which is now serving over 7,000 refugees and local people. Our dental surgery in Kassala also provide free checks and treatment to the needy and refugees. Ethar also provided wheelchairs to tens of disabled individuals who expressed their joy at being able to mobilise around the camps and become more independent Tens of refugees also benefited from our gift of Sight project. Water quality is not only an important factor for drinking and to sustain life, it also has other crucial implications for health, hygiene and wellbeing in general. Therefore, providing clean and safe water along with improving sanitation remains a top priority for Ethar. We have invested in a campaign to raise awareness about the risks posed to thousands of children without clean water, and the dangers involved in children abandoning their education to hunt for water. Lack of water also has a limiting effect on the development of the refugee community as a whole. Ethar commits to build four mega-wells in four refugee camps over the next 2 years at a cost of 40k - 45k per well, benefiting over 60,000 refugees. We also commit to supporting the improvement of another four water stations in an additional four refugee camps.

18 Proje 18 ETHAR ANNUAL REPORT OPRPHANS There are over 5,000 orphans in urgent need for sponsorship in East Sudan, Yemen and the Horn of Africa. Their childhood has been snatched away from them as they lost beloved fathers to war, death in prisons and periodic waves of disease which sweep through refugee camps taking hundreds of lives. Most of these orphans experience an extremely difficult childhood, having made the dangerous journey to neighbouring countries and adapting to a new life in isolated camps lacking basic necessities such as water, food and security. Ethar, with generous funding from hundreds of individuals and many organisations, is sponsoring over 600 orphans. These sponsorships enable the orphans to gain a good education, feel secure, have healthy nutrition, cover basic medical care and support their social activities. Our focus is to enrich the lives of these orphans and give them a route out of poverty, instilling hope and dignity back in their lives.

19 ETHAR ANNUAL REPORT 19 cts Other projects Through generous donations, more sophisticated project designs, and suggestions from our supporters and well-wishers, Ethar has delivered a wide range of support to various groups of refugees which are outside the usual categories. These special projects include: Eid festive gifts Zakat distribution Sadaqah distribution Aqiqah sponsorship Fidya distribution Medical treatment Construction of shelters Repairing homes Building and maintaining mosques Installing drinking water fountains for schools Assisting hundreds of refugees by responding to their individual needs Small business start up pack Widow sponsorship Baby Survival Kit ( for new born babies & mums)

20 20 ETHAR ANNUAL REPORT Our Partners Our partnership with UWT is growing year on year, with both organisations focusing on delivering immediate relief to refugees in Yemen & East Sudan. UWT have provided us with funds to address emergency needs in Yemen, in addition to supporting our core projects, such as Education, Orphan Sponsorship in addition to seasonal projects. Charity Right are at the heart of providing food security for the poorest families, and also support school meals projects. Our strong partnership with Charity Right helped us provide daily meals for 6 Schools and monthly food parcels for 144 families. Looking forward, they aim to increase their support to 500 families and 10 schools in 2016 in partnership with Ethar.

21 ETHAR ANNUAL REPORT 21 Human Appeal International was one the first organisations to work with Ethar in Sudan, providing essential funding for our Orphan projects as well as our seasonal programmes. Idris Foundation partnership with Ethar is making positive impact on the education and health of thousands of children and desperate families. -IF-has contributed to number of successful projects including teacher training & schools refurbishment UKIM is working with Ethar to benefit our refugees through a range of programmes, including the Hifz Project and seasonal programmes. BAPA from Singapore continues to support our seasonal and educational projects, supporting our university students in Yemen was one of the key projects in our partnership.

22 22 ETHAR ANNUAL REPORT VOLUNTEERS, GENERAL & DESIGNATED FUNDS (UNRESTRCITED) Volunteers founded Ethar and have always been its backbone. Ethar continues to benefit from a vast and committed network of volunteers who support its activities, further its causes, raise funds and contribute to essential work. Most volunteers make a regular commitment ranging from a few hours to a full working week. They come from a diverse range of backgrounds and contribute a wide variety of experience and expertise - some with professional skills, and others through generally donating portions of time and effort. Ethar is dedicated to developing, supporting and motivating its volunteers, and the trustees are grateful for their ongoing tireless support. RESERVE POLICY These funds are tied to particular purposes, as specified by the donor or as identified at the time of a public appeal. At 31 March 2016, unspent restricted funds were 158,669; any deficit on restricted funds has been reimbursed by transferring funds from the General fund. These deficit balances have arisen on projects where total expenditure has exceeded income or previous years funds were allocated to the General fund (unrestricted). As there are no plans for further fundraising to reimburse the additional expenditure, general funds (unrestricted) have been used to cover the deficit. Gift Aid Ethar endeavours to only use funds claimed from Gift Aid to fund its admin costs. The trustees have approved that up to 10% of the cash donated can be used to cover administration costs. General funds with the balance of 56,416 were available at the end of the financial period. General funds are unrestricted and not designated for a particular purpose, giving greater flexibility in responding to the needs of refugees as and when needed. Going forward, more attention will be paid into developing fundraising campaigns for general unrestricted funds. Designated funds are unrestricted funds that have been allocated by the Trustees for particular purposes. There were no designated funds at the end of the financial year. RESTRICTED FUNDS The charity has a reserve policy of 15,000. This takes into account the charity s current commitments to donors, staff, beneficiaries and creditors. This policy will be revised and improved in a manner commensurate with Ethar s rapid growth and possible commitments from employing full time staff. The management has worked hard to improve communication between staff and volunteers at all

23 ETHAR ANNUAL REPORT 23 COMMUNICATING WITH STAFF & VOLUNTEERS ETHAR management has worked hard to improve the communication between staff and volunteers in order to create a smooth and efficient operating environment. As the charity gains more experience and increases its support resources, more formal communications policy and channels will be developed. This in turn would help to get the best out of staff and volunteers without causing stress or inconvenience. Poor results against agreed objectives Inadequate revenue funding in the short, medium and long term RISK MANAGEMENT ACTION Inadequate funds to meet the high demand for support and aid to target groups TOTAL FOR CURRENT ASSETS Regular reports by the Executive Director to the Trustees, Annual review prior to annual planning process Fundraising strategy is being planned. Fundraising strategy will be developed to include widening sources of income. Funding Strategy to include funds for employing paid staff and volunteers Executive Director & Trustees Trustees and Executive Director Executive Director Executive Director

24 24 ETHAR ANNUAL REPORT ERITREA AND THE HORN OF AFRICA RELIEF REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2016 The trustees present their report with the financial statements of the charity for the year ended 31 March The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' issued in March REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number Principal address 467 Coventry Road Birmingham West Midlands B10 0TJ Trustees Trustees Mr Abdulkadir A Naib Chairman Mr Abdulrahman Saleh Mahmud Secretary Mr Iddriss Sayed Abdulkader Treasurer Mr Mohammed Juma Bakhit Mr Abdelsalam Mohamed Ali Mr Saeed Ibrahim Abdelrahman - resigned 31/5/2015 Miss Hanan Basher - appointed 31/5/2015 Auditors Shareef & Co Statutory Auditors Stoney Lane Yardley Birmingham West Midlands B25 8YP STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity. The Charity is governed by a Trust Deed dated 6 February The Board of Trustees comprises 6 members, who appoint, appraise and dismiss an Executive Director, who runs the Charity on a daily basis. Recruitment and appointment of new trustees New trustees are appointed as necessary by the existing trustees. Risk management The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. OBJECTIVES AND ACTIVITIES Objectives and aims The main objective of the Charity is to provide humanitarian assistance to people in the Horn of Africa. FINANCIAL REVIEW Reserves policy The Charity has a reserves policy of 15,000.

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26 26 ETHAR ANNUAL REPORT REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF ERITREA AND THE HORN OF AFRICA RELIEF We have audited the financial statements of Eritrea and the Horn of Africa Relief for the year ended 31 March 2016 on pages five to twelve. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective January 2015) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities). This report is made solely to the charity's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under Section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditors As explained more fully in the Statement of Trustees Responsibilities set out on page two, the trustees are responsible for the preparation of the 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 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 misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: - give a true and fair view of the state of the charity's affairs as at 31 March 2016 and of its incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and - have been prepared in accordance with the requirements of the Charities Act 2011.

27 ETHAR ANNUAL REPORT 27 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF ERITREA AND THE HORN OF AFRICA RELIEF 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. Shareef & Co Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act Stoney Lane Yardley Birmingham West Midlands B25 8YP 17 October 2017

28 28 ETHAR ANNUAL REPORT ERITREA AND THE HORN OF AFRICA RELIEF STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH Unrestricted Restricted Endowment Total Total fund fund fund funds funds Notes INCOMING RESOURCES Incoming resources from generated funds Voluntary income 2 226,230 1,013,740-1,239, ,419 RESOURCES EXPENDED Costs of generating funds Costs of generating voluntary income 3 72, ,588 35,639 Charitable activities 4 Grants payable - 1,060,507-1,060, ,642 Governance costs 6 3, ,000 1,552 Total resources expended 75,588 1,060,507-1,136, ,833 NET INCOMING/(OUTGOING) RESOURCES 150,642 (46,767) - 103,875 (77,414) RECONCILIATION OF FUNDS Total funds brought forward 56, , , ,815 TOTAL FUNDS CARRIED FORWARD 207, , , ,401

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30 30 ETHAR ANNUAL REPORT ERITREA AND THE HORN OF AFRICA RELIEF CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH Notes Net cash inflow/(outflow) from operating activities 1 108,710 (76,401) Capital expenditure and financial investment 2 - (2,311) 108,710 (78,712) Financing Increase/(decrease) in cash in the period 108,710 (78,102) Reconciliation of net cash flow to movement in net debt 3 Increase/(decrease) in cash in the period 108,710 (78,102) Change in net debt resulting from cash flows 108,710 (78,102) Movement in net debt in the period 108,710 (78,102) Net debt at 1 April 260, ,887 Net debt at 31 March 369, ,785

31 ETHAR ANNUAL REPORT 31 ERITREA AND THE HORN OF AFRICA RELIEF NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH RECONCILIATION OF NET INCOMING\(OUTGOING) RESOURCES TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES Net incoming\(outgoing) resources 103,875 (77,414) Depreciation charges Income attributable to endowment - (610) Decrease in debtors Increase in creditors 4, Net cash inflow/(outflow) from operating activities 108,710 (76,401) 2. ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT Capital expenditure and financial investment Purchase of tangible fixed assets - (2,311) Net cash outflow for capital expenditure and financial investment - (2,311) Financing Income attributable to endowment Net cash inflow from financing ANALYSIS OF CHANGES IN NET DEBT At Cash flow At Net cash: Cash at bank 260, , ,495 Total 260, , ,495

32 32 ETHAR ANNUAL REPORT ERITREA AND THE HORN OF AFRICA RELIEF NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH ACCOUNTING POLICIES Accounting convention The financial statements have been prepared under the historical cost convention, and in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), the Charities Act 2011 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities. Incoming resources All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Resources expended Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Fixtures and fittings - 25% on cost Taxation The charity is exempt from tax on its charitable activities. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Hire purchase and leasing commitments Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease. 2. VOLUNTARY INCOME Donations 1,239, ,677 Grants - 229,742 1,239, ,419 Grants received, included in the above, are as follows: Other grants - 229,742

33 ETHAR ANNUAL REPORT 33 ERITREA AND THE HORN OF AFRICA RELIEF NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH COSTS OF GENERATING VOLUNTARY INCOME Staff costs 19,007 17,837 Office and venue rents 12,123 - Telephone 2,717 1,194 Marketing & PR 7,098 4,355 Bank and other fees 4,639 4,620 Fees for raising funds 7,900 2,969 Building maintenance - 1,200 Professional fees Training and subscriptions Field support costs - 1,376 Accounts fees Printing and stationery 17,509 - Travel expenses Voluntary expenses Depreciation ,588 35, CHARITABLE ACTIVITIES COSTS Grant funding of activities Totals (See note 5) Grants payable 1,060,507 1,060, GRANTS PAYABLE Grants payable 1,060, ,642 The total grants paid to institutions during the year was as follows: Charitable grants 1,060, , GOVERNANCE COSTS Audit fees 3, Insurance ,000 1,552

34 34 ETHAR ANNUAL REPORT ERITREA AND THE HORN OF AFRICA RELIEF NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH TRUSTEES' REMUNERATION AND BENEFITS There were no trustees' remuneration or other benefits for the year ended 31 March 2016 nor for the year ended 31 March Trustees' expenses There were no trustees' expenses paid for the year ended 31 March 2016 nor for the year ended 31 March STAFF COSTS Wages and salaries 19,007 17,837 The average monthly number of employees during the year was as follows: Full time staff 1 1 Part time staff No employees received emoluments in excess of 60, TANGIBLE FIXED ASSETS Fixtures and fittings COST At 1 April 2015 and 31 March ,831 DEPRECIATION At 1 April Charge for year 504 At 31 March ,319 NET BOOK VALUE At 31 March ,512 At 31 March , CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Taxation and social security 1,331 - Other creditors 3, ,

35 ETHAR ANNUAL REPORT 35 ERITREA AND THE HORN OF AFRICA RELIEF NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE YEAR ENDED 31 MARCH MOVEMENT IN FUNDS Net movement in At funds At Unrestricted funds General fund 56, , ,058 Restricted funds Restricted 205,436 (46,767) 158,669 Endowment funds Endowment TOTAL FUNDS 262, , ,276 Net movement in funds, included in the above are as follows: Incoming Resources Movement in resources expended funds Unrestricted funds General fund 226,230 (75,588) 150,642 Restricted funds Restricted 1,013,740 (1,060,507 ) (46,767) Endowment funds Endowment TOTAL FUNDS 1,239,970 (1,136,095 ) 103,875

36 36 ETHAR ANNUAL REPORT ERITREA AND THE HORN OF AFRICA RELIEF DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH INCOMING RESOURCES Voluntary income Donations 1,239, ,677 Grants - 229,742 1,239, ,419 Total incoming resources 1,239, ,419 RESOURCES EXPENDED Costs of generating voluntary income Wages 19,007 17,837 Office and venue rents 12,123 - Telephone 2,717 1,194 Marketing & PR 7,098 4,355 Bank and other fees 4,639 4,620 Fees for raising funds 7,900 2,969 Building maintenance - 1,200 Professional fees Training and subscriptions Field support costs - 1,376 Accounts fees Printing and stationery 17,509 - Travel expenses Voluntary expenses Fixtures and fittings ,588 35,639 Charitable activities Charitable grants 1,060, ,642 Governance costs Audit fees 3, Insurance ,000 1,552 Total resources expended 1,136, ,833 Net income/(expenditure) 103,875 (77,414)

37 ETHAR ANNUAL REPORT 37 Yasin Ahmed is one of many students Ethar supported in Yemen through our educational projects, to enable them create their own stories and success

38 38 ETHAR ANNUAL REPORT ACKNOWLEDGMENTS ETHAR s achievement and success has been possible with the help and support of individuals and organisations. We therefore extend our appreciation to our many donors whose generosity has enabled us to come this far, our dedicated volunteers whom give to ETHAR without limits despite their work commitments, education and family life and to the organisations whom have stood by us for the past 10 years and continue to support our humanitarian work. We especially thank the following organisations; iswo Sudan s Refugee Affairs Commissioner All Mosques & Community Centres which supported Ethar Last but not least, we acknowledge our partners in the field, without whom our work would not be possible. We thank the management, volunteers and the trustees of Islamic Social and Welfare Organisation (ISWO) in Sudan and Ard Assidq in Yemen for their cooperation and dedication to our shared mission and goals.

39 ETHAR ANNUAL REPORT 39 Together... We can bring happiness and create better future for thousands of forgotten Eritrean Orphans

40 40 ETHAR ANNUAL REPORT 467 Coventry Road, Birmingham B10 0TJ United Kingdom Tel: E: