Oxfam International Tsunami Fund. Oxfam International Tsunami Fund Annual Report and Accounts. For the period ended 31 December 2005

Transcription

1 Oxfam International Tsunami Fund Annual Report and Accounts For the period ended 31 December

2 Index Legal and Administrative information 2 Report of the Board of Trustees 3 Independent Auditors report to the members 10 Statement of Financial Activities 12 Balance Sheet 13 Cash flow Statement 14 Notes to the Accounts 15 Supplementary Information 19 Accountants Report 20 Statement of Financial Activities 21 Balance Sheet 22 Cash flow 23 Notes 24 1

3 Legal and Administrative Information Trustees and advisors Oxfam International Charitable Fund was created and registered as a charitable company in the UK on 22 nd March 2005 as the vehicle for the management of tsunami funds received by all Oxfam affiliates. It was subsequently renamed Oxfam International Tsunami Fund. Registered office Oxfam International Tsunami Fund Suite Banbury Road Oxford OX2 7DL Board of Trustees Appointed 22 March 2005 Sylvia Borren Oxfam Novib (Netherlands) Barbara Stocking (Chair) Oxfam GB Ignasi Carreras Oxfam Intermon (resigned 1 July 2005) Appointed 10 August 2005 Ariane Arpa Intermón Oxfam (Spain) Paul Bendix Oxfam Germany Barry Coates Oxfam New Zealand Stefaan Declercq Oxfam-in-Belgium Robert Fox Oxfam Canada Andrew Hewett Oxfam Australia Ray Offenheiser Oxfam America Brian Scott Oxfam Ireland Pierre Veronneau Oxfam Quebec Chong Chan Yau Oxfam Hong Kong (resigned 1 February 2006) Key Officers Jeremy Hobbs Secretary to the Board Jonathan Saunders Company Secretary Fernando Almansa Chair of Tsunami Fund Management Team Secretariat Staff Caroline Billington Financial Controller Roy Probert Communications Coordinator Richard Wainwright Communications Administrator Auditors Saffery Champness Chartered Accountants Fox House 26 Temple End High Wycombe Bucks HP13 5DR Bankers National Westminster Bank Plc. 135 Bishopsgate London EC2M 3UR Oxfam International Tsunami Fund is a Company Limited by Guarantee number and a registered charity number John Sayer Oxfam Hong Kong (appointed 1 February 2006) 2

4 Report of the Board of Trustees For the period ended 31 December 2005 What is the Oxfam International Tsunami Fund? The Oxfam International Tsunami Fund (OITF) was set up in March 2005 to coordinate and manage the Oxfam International affiliates response to the tsunami. Oxfam International (OI) is a confederation of 12 affiliates working together with over 3,000 partners in more than 100 countries to find lasting solutions to poverty, suffering and injustice. With many of the causes of poverty being global in nature, the 12 affiliate members of Oxfam International believe they can achieve greater impact through their collective efforts. Adopting a rights-based approach to achieve social and economic justice, Oxfam engages in long-term development programmes, emergency response to humanitarian disasters, research, lobbying and campaigning. Oxfam affiliates ensure their work in emergencies is co-ordinated through the OI Humanitarian Consortium, which includes the Humanitarian Directors of the five biggest affiliates. The tsunami on 26 th December 2004, was a unique disaster, both in terms of the scale of the catastrophe and the public s overwhelming response to it. As a result, it was agreed that this coordination should be taken a step further by creating a common fund managing the donations received by all Oxfams, OITF. There are four main affiliates implementing programmes in the tsunami -affected region, with support from the other affiliates. The Fund helps facilitate communications and financial transactions between them, and ensures consistency of controls. All tsunami programming is implemented within the guidelines set down in the Oxfam International Tsunami Global Strategy and Accountability framework. All affiliates have agreed not to develop programmes outside of this. Structure of the Annual Report and Accounts The statutory accounts of OITF comprise the cash passed through the Fund either to or from affiliates, together with the operating expenses of the fund. The audit opinion is expressed in relation to these accounts. The Board have chosen to present supplementary pages consolidating the overall tsunami response by all affiliates to ensure accountability/transparency, but they emphasise that the programmes are under the control of the affiliates. An accountants report on the supplementary pages is provided on page 21 of the accounts. Each affiliate is responsible for ensuring a full audit opinion is sought on its annual accounts. Quarterly reports covering the full tsunami response are regularly produced and circulated; the 4 th quarterly report (for the period ending December 2005) can be found at encies/tsunami/index.htm A Financial Reconciliation Statement explaining the differences between the 4 th quarter reported figures and the 3

5 supplementary pages is available on our website. The objectives and activities of both the OI overall tsunami response and OITF are included in this Annual Report and Accounts. Management and structure The Board of OITF consists of the Executive Directors of the 12 affiliates. Its Secretary is the Executive Director of OI. As with OI in general, the Executive Directors of the 12 affiliates determine the Fund s overall management and formulate its policies. An Audit Committee has also been set up comprising two Executive Directors and three Finance Directors to ensure the financial and governance needs of the board are addressed between Board meetings. The Fund is managed by the Tsunami Fund Management Team (TFMT), which consisted initially of the OI Humanitarian Consortium and the two lead regional managers from the relevant regions. This management mechanism was reviewed by the Board and the composition of the TFMT amended to reflect the fact that the nature of our tsunami-related work has moved away from emergency to more developmental programming. The changes have broadened the skills and experience of the TFMT by increasing the representation of regional strategy teams and finance. TFMT reports to the Board at least twice a year. TFMT itself generally meets either by telecon or in person on a monthly basis. The main functions of the TFMT are to allocate OITF s resources and ensure that its work is managed, reported, and communicated in an effective, 4 accountable and transparent way. It also ensures quality assurance of the programmes through strong monitoring and evaluation of field work. When establishing the OITF it was agreed to have a single overarching response strategy. However, this does not affect the way in which the programme work, reflected in the supplementary pages, is delivered on the ground; this remains the responsibility of individual affiliates. Day-to-day running of the OITF is provided by a Secretariat comprising communications and finance specialists, supported by OI s infrastructure. The OITF is governed by a Memorandum and Articles of Association and our programmes and activities are under the scrutiny of audits and evaluations. Recruitment and induction of trustees Each member affiliate appoints a trustee to the Board and, as stated earlier, in all cases these are currently the Executive Directors of the affiliates and have senior management level experience. Each affiliate is a charity or its equivalent in its own jurisdiction, so the trustees all have experience of governance of not for profit organisations. Trustees are provided with written induction material, and trustees who come from a country with a different legal system are also provided with tailored material which explains the main differences between charities in the common law regulatory environment, to which OITF is subject, and their own system of rules. The Company Secretary offers individual inductions in person at Board meetings or between meetings remotely.

6 Delegation of authority Although day-to-day running of the charity is undertaken by the Secretariat, key decisions are presented to TFMT for approval. The TFMT determine the overall program approach, and the Secretariat supports the implementation. Updates of TFMT meetings are presented to the Board and decisions with specific statutory implications are approved by the Board. The Audit Committee reviews and discusses key financial and governance information and documents prior to presentation to the Board. The committee then makes recommendations to the Board. Authority and approval levels remain under constant review for appropriateness during the different stages of the life of the charity. Objectives and Activities OI s overall aims and objectives for the tsunami response The activities that Oxfam affiliates are conducting in tsunami-affected regions are governed by the following aims: Maximise relief work through operations and partners, and positioning Oxfam for the rehabilitation and development phases. Maintain proactive advocacy on aid levels and access, complemented by a longer-term approach focused on delivery and ensuring rebuilding/rehabilitation options for communities. Plan for country variation, longterm flexibility and phasing. Oxfam s response in each country will vary depending on needs and the local context. 5 Use funds flexibly across affected countries to ensure that aid reaches those most in need. OI must be prepared to back-load funds for the longer term and development projects. Build in innovation and scale-up to take advantage of the funds available, to avoid duplication and to have maximum impact. Ensure programmes fit with overall aid effort, through effective humanitarian assistance; monitoring international aid quantity and quality; and working with local governments to ensure efficient aid. Strategies for achieving OI s overall aims Wherever possible, Oxfam works with partner organisations, and engages in direct operational work only where appropriate. OI s primary concern is to operate in situations where it can be first on the ground; or where it can assist groups who would otherwise be bypassed or marginalized. All programmes have a clear approach to the impact of the tsunami on women and their rights, and they are evaluated against this. In its work, OI abides by the Red Cross Code of Conduct, the OI working principles and the Sphere Standards. The OI response was mindful of the need not to fuel any of the existing conflicts in affected countries. The main priorities identified for our work in tsunami-affected communities were: Public Health, Water and Sanitation Food Security and Restoration of Livelihoods Support for and advocacy on the restoration of social services Mainstreaming HIV/AIDS

7 Mainstreaming gender Disaster Management Shelter OI considers that tsunami victims are not only those who lost property and family, but people who rely on industries that were devastated, host communities who have taken in displaced persons, and all communities that have been affected. The rehabilitation effort and rebuilding of livelihoods should strive to go beyond the pre-tsunami situation. Nearby, but equally poor, communities not directly hit by the tsunami should also benefit from our development activities because delivering inequitable aid can lead to increased community tensions and violence. Objects of OITF The directors of the charity specified that its objects would be: To relieve poverty in countries affected by the tsunami of 26 December 2004, whether acting alone or in association with others including, but not limited to, affiliate members of Stichting Oxfam International, (a registered foundation under Dutch law no Oxfam International ), and in particular to promote the efficiency and effectiveness of the application of charitable resources raised in response to the tsunami through: Assisting in the coordination of the funding of relief and development work carried out by member organisations; Establishing a joint relief and development fund; Providing advice and guidance on best practice in achieving charitable purpose and; through providing a formal structure for monitoring the effective application of those charitable resources for the benefit of the public. 6 Specific aims and objectives of OITF Due to the expected 4-year lifespan of the Fund, its overall aims and its specific objectives for the year bear close similarities. They are to: Ensure the effective, transparent and phased transfer and allocation of funds to Oxfam and partner programmes in tsunami-affected regions, to allow for timely and high-quality interventions. Produce regular, accurate and transparent programme reports to ensure accountability to stakeholders. Set broad parameters of programme work, and ensure that these are in line with OITF s global strategy and accountability framework. Strategies for achieving specific OITF aims and objectives Some of the specific activities that occur to ensure that these objectives are achieved include: Maintain financial control through adequate tools, including the tracking of indicative and actual allocations. Consolidate project proposals and budgets from implementing teams to facilitate an overview of proposed programme plans. Continue monitoring financial control systems. Prioritise requests from different Oxfams on allocation or use of funds. Produce an external quarterly report containing financial and narrative programme information. Provide support and guidance for country teams on reporting and information flows.

8 Monitor the performance of implementing affiliates against OI financial management standards and advise if they represent a risk to Oxfam. Agree on common communications approach, key messages and advocacy priorities. TFMT to meet each quarter to review the above, approve allocations, review progress against targets and perform additional tasks where necessary. Achievements and performance against OITF strategies The OITF has created the necessary governance structures required under UK charities law, and established appropriate investment vehicles for funds received. An independent review of OITF management structures was conducted and its recommendations implemented. The OITF has succeeded in coordinating and facilitating the transfer of monies between affiliates, and maintaining an up-to-date grid of the proposed allocation and central approval of expenditure. The TFMT has used its management expertise to promote the efficiency and effectiveness of tsunami charitable funding. It has met on a quarterly basis to approve and allocate funding to programmes, and where necessary has met more often. The OITF has produced external quarterly reports with financial and narrative programme information to ensure accountability to stakeholders. In the first few months, when interest was greater, monthly external bulletins were 7 produced. All of these reports which detail the successes and challenges of OI s tsunami response, can be found at: gencies/tsunami/index.htm A communications strategy has ensured coherent and consistent messaging and profiling of OI s tsunami programmes. Monitoring and evaluations of our programme work has ensured we learnt important lessons which can be shared and are able to keep improving programming. Plans for future periods In light of the fact that the OITF was created with a limited purpose and for a limited period of time, future activities will be similar to activities already detailed. These include: ensuring the effective and transparent approval and allocation of funds; ensuring accountability to stakeholders through regular financial and programme reports; and ensuring that the tsunami response continues to conform to OI strategic thinking. In addition, over the next year, OITF plans to carry out a review of communications around the tsunami which will be used to improve communications around future programming. We will also continue to produce quarterly reports and advocacy papers if there is a need to highlight concerns raised in the field. The cash management policy should ensure that at the end of next year our cash holdings will be approximately $24m, held either directly or indirectly and invested in line with our investment policy. Other future plans include ensuring that:

9 The Fund s assets are safeguarded and accurately reported. The Fund continues to comply with charity governance. The Fund continues to look at appropriate management and staffing structures. Risks The trustees confirm that they have identified and reviewed the major risks to which the OITF is exposed and have ensured that systems and procedures have been established to manage them. To ensure that risks continue to be monitored, a risk register detailing major risks which could affect the OITF has been created. The TFMT and Audit Committee will include a review of the register as part of their standard agendas to reflect the priority given to this area The main risks that have been identified include: Governance and management, including organisational structure and conflicts of interest. Financial risks, including foreign currency and cash flow sensitivity. Risks to our reputation, including public perception and adverse publicity. Operational risk, including security of assets and supplier control. Law and regulation compliance risk including regulatory reporting requirements. Fundraising OITF does not engage in any active fundraising, as it was set up to manage funds already received by the various Oxfam affiliates. Voluntary income shown in the Statement of Financial Activities is cash received from affiliates who are not implementing programmes. Any fundraising costs that affiliates have 8 incurred were deducted before transferring the money to the OITF. Financial review In this first year of the Fund, overall income received and reflected in the supplementary pages of these accounts exceeded expenditure by $67.8m. Expenditure will be phased over 4 years and the majority of the income was received in the period immediately following the tsunami. Some affiliates have raised monies which have been spent in whole or in part on projects for which they have implementation responsibility. Other affiliates, who have no direct project responsibility, may pass their funds to the Fund for onward distribution or to implementing affiliates directly where approved by the Fund. The Fund has been responsible for passing some monies on during 2005, ($8.2m) but the focus has been on receiving funds ($37.3m) that will be allocated to meet future needs. Detailed cash planning is a key activity undertaken to support the charity s objective of ensuring effective use of resources. This, together with strong controls over the authorisation of project spend, will continue over the remaining life of the Fund. Given current activities, appropriate investment of funds held has been key, and an investment policy has been developed to reflect this. The key objectives are to ensure that funds are sufficiently liquid to be available to meet affiliate needs, risks are controlled and income is maximised. The investment policy considers the security and ethical policies of institutions it is proposed we use for holdings.

10 Reserves policy The trustees have adopted a reserves policy which they consider appropriate to ensure the continued ability of the Fund to meet its objectives. The lifespan of the Fund is expected to be limited and projects in the tsunami affected communities will be completed by the end of Any further activities after that period would form part of the affiliates ongoing work. The funds held either directly by OITF or within its affiliates should be sufficient to cover 6 months of programme expenditure. This policy will be reviewed annually and updated to reflect the maturity and lifespan of the fund as appropriate. At 31 December 2005 the reserves were $68m (of which $29m is held directly by OITF) which exceeds the planned programme expenditure to 30 June 2006 of $55m. Auditors Saffery Champness were appointed auditors to the charitable company and, in accordance with section 385 of the Companies Act 1985, a resolution proposing that they be re-appointed will be put to the Annual General Meeting. Statement of trustees responsibilities UK Company law requires the Board to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Fund as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure for the financial year. In preparing those financial statements, the Board have: Selected suitable accounting policies and applied them consistently. Made judgements and estimates that are reasonable and prudent. Prepared the financial statements on the going concern basis. The Board is responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Fund and enable them to ensure that the financial statements comply with the Companies Act 1985 and the Statement of Recommended Practice: Accounting and reporting by charities. They are also responsible for safeguarding the assets of the Fund and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This is the end of the Trustees report. It has been approved by the Board and was signed on its behalf on 5 September 2006 Barbara Stocking Chair Oxfam International Tsunami Fund 9

11 Independent Auditors Report to the Members We have audited the financial statements on pages 12 to 19. Respective responsibilities of trustees and auditors As described on page 9, members of the Board of trustees, who are directors for the purpose of company law and trustees for the purpose of charity law, are responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting standards. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). This report is made solely to the company s members, as a body, in accordance with Section 235 of the Companies Act Our audit work has been undertaken so that we might state to the company s members those matters we are required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company s members as a body, for our audit work, for this report, or for the opinions we have formed. We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act We also report to you if, in our opinion, the Report of the Board of Trustees is not consistent with the financial statements, if the charity has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors remuneration and transactions with the company is not disclosed. We read the Report of the Board of Trustees and consider the implications for our report if we become aware of any apparent misstatements within it or material inconsistencies with the financial statements. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charitable company s circumstances, consistently applied and adequately disclosed. 10

12 Independent Auditors Report to the Members (continued) We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion the financial statements give a true and fair view of the charitable company s state of affairs as at 31 December 2005 and of its incoming resources and application of resources, including its income and expenditure, for the period then ended and have been properly prepared in accordance with the Companies Act Saffery Champness Chartered Accountants Registered Auditors. Fox House 26 Temple End High Wycombe Buckinghamshire HP13 5DR 11

13 Statement of Financial Activities (Including Income and Expenditure Account) For the period ended 31 December 2005 Notes Restricted Funds $000 Incoming resources Voluntary income 2 37,301 Investment income 523 Total incoming resources 37,824 Resources expended 4 Costs of generating funds Investment management costs 6 Charitable activities Programme delivery 8,435 Governance costs 73 Other resources expended 21 Total resources expended 8,535 Net movement in funds 12 29,289 The notes on pages 15 to 19 form part of the financial statements. There are no recognised gains and losses other than those passing through the statement of financial activities. 12

14 Balance Sheet As at 31 December 2005 Note $000 Current Assets Debtors Cash at bank and in hand 10 29,082 Total current assets 29,575 Liabilities Creditors falling due within one year Net current assets 29,289 Total assets less current liabilities 29,289 Creditors falling due after more than one year - Net assets 29,289 Funds Restricted 12 29,289 Total Funds 29,289 Approved by the Board of Trustees on 5 September 2006 and signed on its behalf by: Barbara Stocking Chair of Oxfam International Tsunami Fund 13

15 Cash flow statement For the period ended 31 December 2005 Note $000 Net cash inflow from operating activities 10 29,082 Increase in cash 29,082 14

16 Notes to the accounts for the period ended 31 December Accounting policies The following accounting policies have been used consistently in dealing with items which are considered material in relation to the accounts. a. Basis of accounting The accounts have been prepared in accordance with Statement of Recommended Practice (2005) and the Companies Act The historic cost basis has been used and the accounts are stated in United States Dollars (USD) for consistency with Oxfam International, since this is the currency of the larger value investments and all planning is in USD. b. Income Incoming resources are recognised when the effect of a transaction or other event results in an increase in the charity s assets. Income is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability This generally results in the income of the fund being recognised on a cash basis. Voluntary income is the cash received from affiliates of Oxfam International for onward distribution in line with the approval processes of the Tsunami Fund Management Team. c. Expenditure Expenditure in relation to programme delivery represents amounts distributed to affiliates undertaking direct intervention in tsunami affected countries together with associated support costs. Governance costs include costs associated with activities which allow the charity to operate and to generate the information required for public accountability. Other resources expended represents an allocation of staff time for work on one off projects that do not fall into the above categories. d. Liabilities All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that category. The direct costs of the fund are all support costs in nature and have been allocated to activities on a basis consistent with use of resources as disclosed in Note 4 to the accounts. Although the charity holds monies that will be due to affiliates the specific recipients have not been identified nor funds guaranteed and hence no liability has been recognised at the balance sheet date. e. Fund Structure All monies received by the charity are treated as restricted in nature since they can only be forwarded to affiliates for use on pre approved projects in Tsunami affected communities. The reserves policy is included in more detail within the Trustees Report. 15

17 1. Accounting policies (continued) f. Foreign exchange Transactions in foreign currencies are included at the exchange rate in operation at the date of the transaction. Assets denominated in foreign currencies are converted at the year end exchange rate. Any differences are dealt with in the statement of financial activities. Realised gains or losses arise when transfers are made between different currency cash or investment accounts. Unrealised gains or losses arise from revaluing assets or liabilities held in currencies other than the United States Dollar. 2. Voluntary income Income was received as below: Total $000 Oxfam Canada 5,401 Oxfam Ireland Northern Ireland 644 Oxfam Ireland Republic of Ireland 1,035 Oxfam Hong Kong 2,199 Oxfam New Zealand 2,223 Oxfam America 20,000 Oxfam Quebec 972 Oxfam-in-Belgium 2588 Intermon Oxfam (Spain) 1,984 Third party donations 255 Historically some transfers were made directly between Oxfam affiliates. These do not form part of the statutory accounts. 3. Net incoming resources for the period This is stated after charging/(crediting) 37,301 Total $000 Auditors remuneration 14 Realised foreign exchange differences (134) 16

18 4. Total resources expended Activities undertaken directly Support costs Total $000 $000 $000 Investment management costs Programme delivery 8, ,435 Governance costs Other resources expended Total resources expended 8, , Support cost allocation Finance Communications Management Office Total & Legal and other $000 $000 $000 $000 $000 Investment management costs Programme delivery Governance costs Other resources expended Total support costs Basis for support cost allocation Finance and legal Specific costs and estimated allocation of time Communications Specific costs and estimated allocation of time Management Specific costs and estimated allocation of time Office and other In proportion to the spend arising from the above allocations Governance costs are made up as follows: $000 External audit 14 Secretariat costs 59 Total governance costs 73 17

19 6. Staff numbers and emoluments During the year an average of 2 people were employed by the charity none of whom earned over 60,000 ($100,000). $000 Salaries 102 Social security costs 24 Pension costs The organisation contributes to individuals personal pension schemes. The pension cost charge represents contributions by the organisation to such schemes which are recognised when they become payable. 7. Trustees emoluments and reimbursed expenses The trustees received no remuneration for their services. Indemnity insurance is provided for trustees: premiums paid during the year totalled $ Tax The charity is not expected to be subject to tax on its income or gains in any jurisdiction. HM Revenue and Customs have acknowledged that OITF is a charity for tax purposes, however, a claim will be made annually for exemption from UK tax on the grounds that it has charitable status and that all of its income and gains are applied to charitable purposes only. 9. Debtors: amounts falling due within one year $000 Other debtors 191 Accrued income Net Cash inflow from operating activities $000 Net Incoming resources 29,289 (Increase) in debtors (493) Increase in creditors , Creditors: amounts falling due within one year $000 Accrued expenses

20 12. Restricted Funds Oxfam International Tsunami Fund $000 Incoming resources 37,824 Outgoing resources (8,535) Fund balances carried forward 29, Analysis of net assets between funds As shown on face of balance sheet 14. Share capital The company is limited by guarantee and has no share capital. The liability of members is limited to the sum of 1 per member. 19

21 Supplementary Information Period ended 31 December 2005 The trustees have chosen to present the following supplementary financial information in respect to the global Oxfam tsunami response. The information on pages is provided for reasons of transparency and does not form part of the audited financial statements. It is based on consolidating the financial results of all the affiliates in relation to the tsunami response. An accountants report on the supplementary pages is provided on page 21 of these accounts. Each affiliate is responsible for ensuring a full audit opinion is sought on its annual accounts. Quarterly reports covering the full tsunami response are regularly produced and circulated; the 4 th quarterly report (for the period ending December 2005) can be found at A Financial Reconciliation Statement explaining the differences between the 4 th quarter reported figures and the supplementary pages is available on our website. 20

22 Supplementary Information Accountants Report to the Trustees The trustees of the Oxfam International Tsunami Fund are responsible for the preparation of the financial statements of the charitable company, including the supplementary information. The information included within the supplementary section of the financial statements is not required under applicable law. However, the trustees wish to summarise the financial position of the global tsunami response in order to give additional information to stakeholders. In our opinion the supplementary financial information on pages for the period ended 31 December 2005 has been properly extracted from the accounting records of each Oxfam affiliate and is presented in accordance with United Kingdom Generally Accepted Accounting Principles. The procedures we have undertaken do not provide all the evidence that would be required in an audit and consequently we do not express an audit opinion on the supplementary information. Saffery Champness Chartered Accountants. Fox House 26 Temple End High Wycombe Buckinghamshire HP13 5DR 21

23 Supplementary Information Statement of Financial Activities For the period ended 31 December 2005 Restricted Funds $000 Incoming resources Voluntary income 198,473 Investment income 2,714 Total incoming resources 201,187 Resources expended Costs of generating funds Investment management costs 6 Costs of generating voluntary income 3,144 Charitable activities Programme delivery 130,173 Governance costs 73 Other resources expended 21 Total resources expended 133,417 Net movement on funds 67,770 22

24 Supplementary Information Balance Sheet As at 31 December 2005 $000 Current Assets Debtors 493 Cash at bank and in hand 75,319 Total current assets 75,812 Liabilities Creditors falling due within one year 8042 Net current assets 67,770 Funds Restricted 67,770 Total Funds 67,770 Approved by the Board of Trustees on 5 September 2006 and signed on its behalf by: Barbara Stocking Chair of Oxfam International Tsunami Fund 23

25 Supplementary Information Net Cash inflow from operating activities For the period ended 31 December 2005 $000 Net Incoming resources 67,770 (Increase) in debtors (493) Increase in creditors 8,042 Increase in cash 75,319 24

26 Supplementary Information Notes The accounting policies followed are the same as those for the main charity accounts. However the following polices are only relevant to the supplementary information and are presented for clarity. a. Voluntary income Income is received by affiliates from public appeals, joint agency appeals, Governments and Corporates. Transfers between OITF and affiliates or between affiliates are eliminated on consolidation and not recognised as income or expenditure. b. Donated services or assets Where services are provided to the charity as a donation that would normally be purchased from 3 rd party suppliers, this contribution is valued and included in the financial statements using commercial rates. Assets given or loaned to the charity are recognised at market value. c. Expenditure Programme delivery comprises work in a number of sectors: $000 Public health, water and sanitation 27,099 Food Security 5,044 Restoration of livelihoods 46,278 Restoration of social services 9,519 Disaster Management 2,192 Shelter 18,157 Programme management & support 18,326 Other resources expended 3,558 Total 130,173 d. Foreign exchange Affiliates are fully responsible for programme implementation and manage the exchange differences between their functional currency and that of the countries in which they operate. OITF makes commitments to affiliates based on their needs in their functional currencies to allow stability of their management processes. To provide a common point of reference when managing the fund these commitments are translated into USD at a standard rate that will apply through the life of the fund. These rates have been used to provide the consolidated information in the supplementary pages. Realised exchange gains of $310k are included within expenditure and have arisen when funds are transferred between affiliates and/or OITF. 25

27 Note d. (continued) For the purpose of the consolidation a standard rate of exchange has been adopted to avoid any distortion of the figures due to the change in exchange rates. The trustees believe that this method most fairly reflects the actual financial position. If UK GAAP had been applied to the consolidation with transactions during the period translated at the rate prevailing for the month and the balance sheet translated at the year end rate, an unrealised translation loss of $5.8m would have arisen. e. Grants Grants are accounted for where the implementing affiliate has agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the implementing affiliate. 26