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ANNUAL REPORT & FINANCIAL STATEMENTS

ANNUAL REPORT & FINANCIAL STATEMENTS ACTION AGAINST HUNGER (UK) LIMITED YEAR ENDED 31 DECEMBER 2018 ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER FOR A WORLD FREE FROM HUNGER FOR FOOD.
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ANNUAL REPORT & FINANCIAL STATEMENTS ACTION AGAINST HUNGER (UK) LIMITED YEAR ENDED 31 DECEMBER 2018 ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER FOR A WORLD FREE FROM HUNGER FOR FOOD. AGAINST HUNGER AND MALNUTRITION. FOR CLEAN WATER. AGAINST KILLER DISEASES. FOR CHILDREN THAT GROW UP STRONG. AGAINST LIVES CUT SHORT. FOR CROPS THIS YEAR, AND NEXT. AGAINST DROUGHT AND DISASTER. FOR CHANGING MINDS. AGAINST IGNORANCE AND INDIFFERENCE. FOR FREEDOM FROM HUNGER. FOR EVERYONE. FOR GOOD. FOR ACTION. AGAINST HUNGER. Cover: A mother and her child in Mali who have received support from an Action Against Hunger trained Community Health Worker. Lys Arango for Action Against Hunger 2 ACTION AGAINST HUNGER (UK) LIMITED CONTENTS WELCOME 04 OUR GLOBAL REACH AND IMPACT IN DIRECTORS' REPORT 07 OUR STRATEGIC PRIORITIES 08 STRATEGIC REPORT 09 THANK YOU 25 THE YEAR AHEAD 26 FINANCIAL PERFORMANCE 27 RISK STATEMENT 27 STRUCTURE, GOVERNANCE AND MANAGEMENT 29 STATEMENT OF DIRECTORS' RESPONSIBILITIES 31 INDEPENDENT AUDITORS' REPORT 32 FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 34 STATEMENTS OF FINANCIAL POSITION 35 CONSOLIDATED STATEMENT OF CASH FLOWS 36 NOTES TO THE FINANCIAL STATEMENTS 37 REGISTERED OFFICE: 6 MITRE PASSAGE, LONDON SE10 0ER THE COMPANY IS REGISTERED IN ENGLAND NO AND WAS INCORPORATED ON 16 JUNE THE COMPANY IS A REGISTERED CHARITY NO (ENGLAND AND WALES) AND FROM APRIL 2018 IN SCOTLAND, SC SCOPE OF REPORT: Action Against Hunger (UK) Limited is part of an international network that operates under the name of Action Against Hunger, with head offices in Paris, Madrid, New York, Toronto, New Delhi and London. Each Action Against Hunger member is legally independent but shares a common mandate, values, operating principles, quality standards and strategy. The narrative sections of this report refer to those activities for which Action Against Hunger in the UK has management responsibility. ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER WELCOME In 2018, Action Against Hunger UK became a member of the Disasters Emergency Committee (DEC). The DEC brings together 14 leading UK aid charities and the mainstream media to respond collectively when poor countries are hit by major disasters. It is an organisation trusted by the British public to raise money and to get communities the help they need. Membership of the DEC has been an ambition of the organisation for many years. The Action Against Hunger international network has been a humanitarian organisation since its creation 40 years ago, with responses to rapid, slow-onset and protracted crises at the core of its operations. Action Against Hunger UK is part of this international network, with Action Against Hunger sister organisations headquartered in France, Canada, India, Spain and the USA. Together, we have programmes in 47 countries. In 2018, we assisted more than 21 million people, with 7,646 staff and a global income of more than 424 million. In 2018, Action Against Hunger UK raised and assigned over 37m of assistance for support to the most vulnerable populations especially malnourished children and those affected by conflict and violence in Northern Nigeria, the Democratic Republic of Congo and Yemen, and in Bangladesh, where the Rohingya populations have taken refuge following violence in Myanmar. Through our DEC membership, we can continue to build and strengthen our ability to respond quickly and at scale to multiple simultaneous emergencies. We sincerely hope that you will be able to support our DEC appeals when crises strike, so that we can help as many people as possible in the crucial first days and weeks of a disaster. Thank you, in advance, for your generosity. Over the years, we broadened our approach to include resilience and development interventions to enable us to respond more effectively to the needs of vulnerable communities and to mitigate the risks of future food and nutrition crises. 4 ACTION AGAINST HUNGER (UK) LIMITED This is particularly true in the Sahel region, an area at high risk of seasonal food crises and famines with some of the highest population growth forecasts in the world and experiencing significant effects from climate change. In 2018, Action Against Hunger projects in Mali were supported by the People s Postcode Lottery, the innocent foundation and restaurant chain Carluccio s; and a Teenage Nutrition for Change programme in Senegal was supported by UK Aid match funding. We have an ongoing commitment to deliver high-quality assistance, supported by constant investment in our research, monitoring, evaluations and learning capacities, and in our nutrition expertise. As a result, Action Against Hunger is well respected by its peers for its technical excellence, particularly in the area of undernutrition. Over the past 20 years, Action Against Hunger UK has nurtured a powerful base of relationships and financial support from many areas of the food and hospitality industry. We proudly count high profile chefs, Michelin starred restaurants, high street chains, influencers, industry bodies, restaurateurs, as well as passionate customers and foodies among our supporters. Focusing this passionate audience around a common call to action has proved to be a powerful vehicle for engaging the food-loving public in our cause and vision to end child hunger. THANK YOU. PAUL WILSON CHAIRMAN, ACTION AGAINST HUNGER UK ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER OUR GLOBAL REACH AND IMPACT IN 2018 CANADA UK BELGIUM GERMANY FRANCE ITALY SPAIN SOUTH CAUCASUS AFGHANISTAN USA HAITI GUATEMALA NICARAGUA LEBANON OCCUPIED PALESTINIAN TERRITORY EGYPT MAURITANIA MALI CHAD SENEGAL TURKEY SYRIA IRAQ JORDAN NEPAL MYANMAR PAKISTAN GAMBIA SIERRA LEONE LIBERIA IVORY COAST VENEZUELA COLOMBIA PERU BURKINA FASO NIGERIA NIGER CAMEROON CENTRAL AFRICAN REPUBLIC YEMEN BANGLADESH SUDAN ETHIOPIA SOUTH SUDAN SOMALIA INDIA UGANDA KENYA TANZANIA DEMOCRATIC REPUBLIC OF THE CONGO MALAWI MADAGASCAR ZIMBABWE PHILIPPINES CAMBODIA INDONESIA IN 2018, THE ACTION AGAINST HUNGER INTERNATIONAL NETWORK HELPED 21.2 MILLION PEOPLE IN 47 COUNTRIES WORLDWIDE, 1 MILLION MORE THAN IN MILLION PEOPLE HELPED WITH NUTRITION AND HEALTH 8.9 MILLION PEOPLE REACHED WITH WATER, SANITATION AND HYGIENE 2.7 MILLION PEOPLE SUPPORTED WITH FOOD SECURITY AND LIVELIHOODS 172 PROJECTS DELIVERING MENTAL HEALTH AND CARE PRACTICES 6 ACTION AGAINST HUNGER (UK) LIMITED DIRECTORS' REPORT FOR ALMOST 40 YEARS, ACROSS NEARLY 50 COUNTRIES, ACTION AGAINST HUNGER HAS LED THE GLOBAL FIGHT AGAINST HUNGER. WE SAVE THE LIVES OF MALNOURISHED CHILDREN. WE ENSURE PEOPLE IN NEED CAN ACCESS CLEAN WATER, FOOD, TRAINING AND HEALTHCARE. WE ENABLE ENTIRE COMMUNITIES TO BE FREE FROM HUNGER. The directors of Action Against Hunger (UK) Limited hereafter referred to as Action Against Hunger UK present their annual report and audited accounts for the year ended 31 December 2018, and confirm they comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, regulations 6 and 8 of the Charities Account (Scotland) Regulations 2006 as amended in 2010, and the Charities Statement of Recommended Practice ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER Lys Arango for Action Against Hunger Anguri, 35, has 6 children and lives in Baran, India. India has the highest numbers of malnutrition children in the world. OUR STRATEGIC PRIORITIES We know that hunger and undernutrition are preventable. In a world in which conflict, natural disasters, poverty and threats to natural resources present significant challenges, our strategic plan has a bold vision to increase our impact and influence. We set out to relieve the consequences of hunger, tackle its causes and change the way it is addressed. Together with our global partners, in 2018 we worked hard to further reduce and prevent hunger and undernutrition among the most vulnerable people in 47 countries. OUR FIVE GOALS, SET OUT IN OUR STRATEGIC PLAN, ARE: GOAL 1 GOAL 2 GOAL 3 GOAL 4 GOAL 5 Reduce mortality in children under five years of age. Reduce the prevalence of chronic and acute undernutrition. Increase the coverage of programmes to treat severe acute malnutrition. In emergencies, ensure people s unmet humanitarian needs are covered, where they are within our areas of expertise. Provide reliable evidence and expertise to improve national and international strategies on undernutrition. OUR UK OBJECTIVES IN 2018 Our annual objectives set out what we need to achieve each year in the context of our fiveyear strategy. In setting these objectives and planning our activities, Action Against Hunger UK s directors give careful consideration to the Charity Commission s general guidance on public benefit. Our objectives in 2018, all of which we met, were: TO RAISE A MINIMUM OF 15M TO SUPPORT HUMANITARIAN PROGRAMMES. TO APPLY TO BECOME A DEC MEMBER, COMPLETING A SELF-ASSESSMENT AGAINST THE CORE HUMANITARIAN STANDARD. TO EVIDENCE A RANGE OF COST-EFFECTIVE, HIGH-QUALITY SOLUTIONS TO COMBAT SEVERE ACUTE MALNUTRITION (SAM) AND TO USE THESE STRATEGICALLY IN OUR PROGRAMMES IN 10 COUNTRIES. TO CONDUCT A MID-TERM REVIEW OF THE 2020 INTERNATIONAL STRATEGY. TO REACH 100,000 SUPPORTERS AND RAISE 4M FROM PRIVATE SOURCES. TO FULLY COMPLY WITH GENERAL DATA PROTECTION REGULATION (GDPR) AND FOLLOW CHARITY COMMISSION GUIDANCE IN PROVIDING A SAFE ENVIRONMENT FOR THE PEOPLE WE ASSIST AND FOR OUR STAFF. 8 ACTION AGAINST HUNGER (UK) LIMITED STRATEGIC REPORT TACKLING MALNUTRITION WHY FOCUS ON NUTRITION? According to The State of Food Security and Nutrition in the World report of September 2018, one in every nine people in the world is going hungry. Global hunger is returning to levels seen 10 years ago challenging the Sustainable Development Goal of Zero Hunger by The key factors are climate change, conflict and economic changes. More than 50 million children under the age of five were suffering from acute malnutrition in 2018, and 16.6 million were affected by severe acute malnutrition. Acute malnutrition is one of the greatest challenges to child survival in the world today. Every day, around 15,000 children under the age of five lose their lives. Undernutrition contributes to nearly half of all these deaths. It puts the vulnerable, especially babies and young children, at greater risk of dying from common infections. Children with the most severe form of acute malnutrition are nine times more likely to die from infections such as diarrhea, dysentery, respiratory infections and measles. 56 million children under the age of five are projected to die between 2018 and ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER Christophe da Silva for Action Against Hunger Children are weighed and measured at an Action Against Hunger led malnutrition screening centre in Haiti. Dietary supplements are also distributed. FOR A WORLD FREE FROM HUNGER In 2018, more than 20 million people in Yemen were in desperate need of help, with 14 million on the brink of starvation and reliant on food aid. While in Bangladesh, a million Rohingya refugees from Myanmar continue to find safety in cramped living conditions in 34 camps in Cox s Bazar. In so many food crises, mothers are undernourished and shocked this can affect how they breastfeed their babies. There are things that can be done. We provide safe shelter, privacy, nourishment and reassurance so that mums can continue to breastfeed successfully. Malnutrition is measurable: a tape placed around a child s upper arm can quickly show which children are in danger. Where communities are trained to use the tape, and treatment is available, lives can be saved with a simple product. With such straightforward diagnosis and treatment, Action Against Hunger is determined to reach, treat and cure as many people as possible to bring down the global statistics. Poor nutrition in the first years of a child s life can also lead to stunted growth, impaired cognitive ability and poor school performance. Women and girls are disproportionately affected by malnutrition, yet few programmes are tailored specifically to their needs (for example increased risk of anaemia). Our programmes aim at empowering women around household resources, including nutritious food, as well as more broadly. We also reinforce antenatal care services so that iron supplements can be available for more pregnant women around the world. IN 2018, ACTION AGAINST HUNGER S SUPPORTERS AROUND THE WORLD ENABLED US TO HELP 8.7 million PEOPLE WITH NUTRITION AND HEALTH PROJECTS AND Rohingya mothers bring their babies to be screened for malnutrition at Action Against Hunger's emergency operations centre in a refugee camp in Cox's Bazar, Bangladesh. 10 ACTION AGAINST HUNGER (UK) LIMITED 2.7 million PEOPLE WITH FOOD SECURITY AND LIVELIHOODS PROJECTS Action Against Hunger GROWING OUR TREATMENT PROGRAMMES Action Against Hunger s SAM2020 Agenda sets out a call to reach more children with access to life-saving treatment for severe acute malnutrition by There is still much work to be done, for currently less than 25% of children who are in need every year are accessing treatment. Action Against Hunger UK supports the global efforts to scale-up treatment through leadership and technical support to generate evidence and uptake. GENERATING EVIDENCE AND UPTAKE NO WASTED LIVES No Wasted Lives is a coalition of partners committed to catalysing action for acute malnutrition. As a founding member, Action Against Hunger UK hosts the No Wasted Lives Secretariat Team who lead the research and technical activities of the coalition. In 2018, the UK Secretariat Team continued to support the generation and uptake of evidence across a range of programmatic solutions to improve the quality, effectiveness and costeffectiveness of treatment for acute malnutrition. OUR MOST IMPORTANT ACTIVITIES IN 2018: Leading the translation of the Global Research Agenda for Acute Malnutrition to initiate new research activities and funding from donors, and so filling critical gaps in the evidence. Working with our Action Against Hunger network and global partners to ensure robust research uptake strategies are in place to support uptake and use of emerging evidence. Providing technical support into the design and implementation of economic evaluations and cost-effectiveness studies in our key research on treatment, including the ComPAS study, C-Project Phase 2 in Mali, and the iccm Kenya. Leading the ComPAS follow-up study to assess longer-term body composition following combined and simplified treatment for acute malnutrition in Kenya. Working with the UK Operations Team and Action Against Hunger Network to update and expand the research section of the Knowledge Hub, ensuring the latest updates on key areas of research are publicly available. Expanding the State of Acute Malnutrition website, a platform for country and global level data, resources and updates on acute malnutrition. In 2018, based on user feedback, the site was upgraded and expanded, and more data visualisations are planned for ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER USING COVERAGE AND NUTRITION INFORMATION TO SCALE UP PROGRAMMES Action Against Hunger UK leads on providing coverage monitoring and nutrition information services to the Action Against Hunger network and stakeholders in the sector. This technical leadership is critical to ensuring that our efforts to scale-up treatment understand contextspecific barriers and boosters for treatment, and that they are effective. In 2018, Action Against Hunger had a goal to collect and use nutrition information to support strategic and coherent programming in 10 countries. By the end of the year we had: conducted coverage training for Action Against Hunger nutrition technical advisors in Paris provided both direct and remote support for coverage survey activities, including training, planning, implementation, analysis and reporting support to: Action Against Hunger South Sudan (Aweil East, Bentiu PoC and Juba) Action Against Hunger Cameroon Action Against Hunger Madagascar UNICEF Cameroon IRC Nigeria Action Against Hunger Bangladesh in the Rohingya refugee camps in Cox s Bazar provided additional technical support for broader nutrition information efforts, under our Long-Term Agreement (LTA) with UNICEF. These included: a one-day consultation on acute malnutrition to UNICEF HQ in New York review of the community based/integrated management of acute malnutrition (CMAM/IMAM) guidelines for Cambodia, Laos, Mongolia, Timor Leste, Malaysia, and Indonesia capacity building on SMART (nutrition survey) methodology in Bangladesh. FINANCING NUTRITION PROJECTS AND INCREASING PUBLIC SUPPORT In 2018, in partnership with the International Coalition for Advocacy on Nutrition (ICAN) UK members, Action Against Hunger developed policy and financial asks of the UK Government for the 2020 Nutrition for Growth Summit (N4G), which will be a key milestone for securing funding and policy commitments on nutrition. Alongside this, the group worked on a joint advocacy action plan towards N4G, to be implemented between This included producing and disseminating a joint briefing for UK Parliamentarians on financing malnutrition and promoting ambitious and effective policy responses to maximise the effectiveness of aid for nutrition, as well as convening meetings with senior decision makers, such as the Secretary of State s Special Adviser. Action Against Hunger will be scaling up its advocacy and campaign action towards N4G over ACTION AGAINST HUNGER (UK) LIMITED CASE STUDY Oumou Macalou, a 25 year old mum of four, lovingly hugs her little daughter Awa. A few weeks ago, Awa became very ill. She was listless and weak and didn t engage with her siblings anymore, Oumou says. Thankfully, she s getting better now. She is interacting with the nurses and takes everything in very attentively. She s even smiling every now and then. Awa was born blind. When her mum noticed that she was unwell, she took her to the nearest health centre, where she was diagnosed with lifethreatening malnutrition. The health workers immediately referred her to the Action Against Hunger-supported nutrition unit at the regional hospital in Kita. Not long ago, it was nearly impossible for mothers to get the urgent treatment they needed for their children, often because healthcare was too far away. Things changed when Action Against Hunger and the innocent foundation launched an ambitious research project with the potential to revolutionise the treatment of malnutrition, paving the way for health workers to treat malnourished children in their communities. By training community health workers to diagnose and treat children at home, rather than parents having to walk up to 40km to the nearest clinic every week for treatment, health workers can treat children in urgent need of care and also spot the early signs of malnutrition thus preventing children from getting seriously ill. Agao goes with her daughter to the Action Against Hunger outpatient treatment center (OTP) in Yargot, South Sudan. ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER Lys Arango for Action Against Hunger From now on, only children with medical or other complications have to be referred to the hospital and, thanks to the project, transport is now available. FOCUSING ON PREVENTION Our mission in fighting hunger includes preventing malnutrition before it happens. Through the work we do with the Action Against Hunger network globally, we contribute to improving the overall health, mental health, livelihoods, and water and sanitation of populations, especially those affected by crises and disasters. IDENTIFYING THE CAUSES OF MALNUTRITION We believe that to prevent malnutrition we need to understand the root causes of the problem. The Action Against Hunger network has developed the Link NCA methodology, with the support of leading researchers from Tufts University in M
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