Tiri (the-governance-accesslearning-

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3 Tiri (the-governance-accesslearning- network) Annual Report and Accounts 30 September Company Registration Number (England and Wales)

4 Contents Reports Legal and administrative information 1 Directors report 2 Independent auditors report 9 Accounts Statement of financial activities 11 Balance sheet 12 Principal accounting policies 13 Notes to the accounts 15 Tiri

5 Legal and administrative information Directors Shazadi Beg Jeremy Powys Carver Jonathan James Corballis Andrew Lumsdaine Karney Eugene Cotran Rickie Sankar Registered office 12 New Fetter Lane London EC4A 1AG Telephone Website Company registration number (England and Wales) Auditors Buzzacott 12 New Fetter Lane London EC4A 1AG Bankers HSBC Bank Poultry & Princes Street P.O Box 648 London EC2P 2BX Tiri 1

6 Directors report period to 30 September The trustees present their first statutory report together with the accounts of the Tiri (the-governance-access-learning- network) (referred to throughout the remainder of this report as Tiri) for the period ended 30 September. The accounts have been prepared in accordance with the accounting policies set out on page 14 of the attached accounts and comply with the company s memorandum and articles of association. As the company undertakes activities of a wholly charitable nature, and has initiated registration as a charity, the accounts have been prepared in accordance with the principal requirements of Statement of Recommended Practice on Accounting and Reporting by Charities issued in October Principal aims and objects Tiri is a not-for-profit NGO founded in London in Tiri works with a growing global network of specialists, academics, institutions and organisations across a wide range of countries committed to working collectively and individually to raise integrity standards in both public and private institutions. Tiri and its partners believe that by doing so successfully they will assist processes of sustainable development and the reduction of poverty. Tiri was formed in October 2003 out of the recognition that the time for talking about the importance and need to fight corruption has now moved on to the determined reduction and control of corruption by the application of practical knowledge and skills. The time had come to foster a broad-based, global movement against corruption with the high degree of professionalism needed to address the challenges of sustainable reform. Tiri s work programme was from the outset developed in close collaboration with key institutions and personalities throughout the anti-corruption movement and was carefully tailored to meet the needs they felt and expressed. Tiri was established to act as a catalyst, reacting swiftly to changing needs, and building on and reinforcing the skills and experiences in the field. Tiri operates in the firm belief that sustainable solutions can only really be found in the countries involved. Overwhelmingly, Tiri s programmes and expenditures will be carried out in the field. Tiri will be supported by a minimal staff based in a city located on an international crossroads. Tiri and its partners are committed to working collectively and individually to raise integrity standards everywhere, and in both public and private institutions, in the belief that by so doing successfully they will assist processes of sustainable development and the reduction of poverty. The Objects and the Powers of Tiri are set out in more detail in the Memorandum of Association of 2 September Tiri 2

7 Directors report period to 30 September Review of Activities and Achievements In the first period, Tiri s activities concentrated in the main on programme development and fund raising. After a meeting with the President and Chairman of the Open Society Institute in New York, Tiri obtained an initial 6-month seed funding grant as well as a commitment to fund up to one third of Tiri s programme related expenditures. This commitment was made in early October 2003, on the eve of the launch of the organisation. Tiri s work programme can be divided into four broad categories: (a) the facilitation and support of specialised policy networks; (b) the provision and development of capacity building and advice; (c) the development and support of sustainable tools to measure and monitor reforms; and (d) the development and research for appropriate training materials and policy studies. In the first year, the achievements included the following specific areas of activity: A. Policy Networks Judicial Integrity Group Members of the Judicial Integrity Group include chief judges from a dozen common and civil law countries who developed the landmark Bangalore Principles of Judicial Integrity in The Principles have been cited in numerous judgements but have, above all, been the basis for judicial integrity reforms led by the senior judiciary in several countries in Asia and Africa. Cambridge Group of Election Commissioners The Cambridge Group have met annually under the auspices of the Malaysian Centre for Commonwealth Studies at Cambridge University since The Group is composed of chief election commissioners and senior electoral officials from the major democracies of the South. Tiri facilitates the network to support the transfer of knowledge and experiences between members of the Group and other concerned professionals. B. Capacity Building and Advice Public Integrity Education Network (PIEN) PIEN was launched in jointly with the Central European University in Budapest. PIEN networks academics and expert practitioners from more than thirty countries. The objective of the network is to facilitate the introduction of effective, policyoriented training and teaching programmes on public integrity at leading universities and training institutions. In the past year, more than 400 students have taken part in training sessions and courses offered by PIEN members. In the coming year this number is likely to double. PIEN facilitates the development of courses, training of trainers, development and dissemination of teaching materials and tools, etc. Tiri also provided intensive training sessions with department directors and permanent secretaries in Nigeria, and top government officials and members of the cabinet in the Philippines. Tiri 3

8 Directors report period to 30 September Review of Activities and Achievements (continued) B. Capacity Building and Advice (continued) Advice to governments and NGOs Tiri s senior staff and members have more than two decades of experience in working closely with governments on their anti-corruption reforms. Since 2003, these efforts have included work with senior public officials in Guatemala, Kenya, Nicaragua, Nigeria, Pakistan, Palestine, Panama, Philippines, and Timor Leste. Tiri also provided advice incountry to NGOs in Serbia, Indonesia, Chile, as well as most of the above-mentioned countries. C. Monitoring and Measuring Reforms United Nations Organisational Integrity Survey Tiri advised the UN on the development of a UN-specific organisational integrity survey. This was the first survey of its kind conducted among the organisation s Secretariat staff of more than seven thousand to provide a benchmark for internal organisational integrity reforms. The results of the survey were published in 2003 and are available through the UN. Indonesia Corruption Perceptions Index Tiri assisted TI-Indonesia in the development, piloting and implementation of the country s first comprehensive corruption perceptions index based on both perceptions and experiences of small, medium and large companies. The survey, to be repeated biannually, provided the benchmarks for significant reforms aimed at improving the business environment in Indonesia. D. Training Materials and Policy Studies Corruption Case Law Reporter and Corruption Prosecutors Handbook The Case Law Reporter is a biannual publication that contains the most up-to-date reference and judgements for case law on corruption throughout the common law system. It is produced in partnership with the Commonwealth Legal Education Association and the Commonwealth Association of Magistrates. A Corruption Prosecutors Handbook was prepared for the United Nation s Global Programme Against Corruption in a network involving the International Association of Prosecutors. The Handbook is designed to be a practical guide in the training of investigators and prosecutors of corruption cases. Tiri 4

9 Directors report period to 30 September Corruption in Post-War Reconstruction: Confronting the Vicious Circle This policy study is the first report of its kind to focus attention on the particular problems and opportunities for corruption in post-war reconstruction. It contains case studies from several countries. The report was jointly published in 2005 with the Lebanese Transparency Association and UNDP. The publication received quite extensive international media coverage. Tiri 5

10 Directors report period to 30 September Reserves policy and financial position Reserves policy The Board is in the process of examining the requirement of establishing a target level of unrestricted reserves in order for the company to have adequate working capital to respond to unforeseen shortfalls in cash resources in the future. The current proposal is that the company s target level of unrestricted free reserves is equivalent to 6 months annual expenditure on core funding. Based on the values as at 30 September the level of free reserves should be approximately 76,172. Financial position The balance sheet shows total funds of 60,360. General funds of the company at 30 September total 49,755. These funds are represented by tangible fixed assets with a net book value of 4,129 and free reserves of 45,626. The directors consider that this level of free reserves falls short of their desired level as set out in the company s reserve policy above. This shortfall has been taken into account by the directors who anticipate, given that this is the first financial period of the company, that the desired level of free reserves will be met over the next three years. Also included in total funds is a restricted fund balance of 10,605. This balance will be used in the next accounting period, and its use restricted to specific purposes. Full details of these restricted funds can be found in note 9 to the accounts together with an analysis of movements in the year. Risk management The directors are presently considering the company s risk assessment which highlights the major risks to which the company is exposed, in particular those relating to the specific operational areas of the company and its finances. The directors will review the risk assessment on a periodic basis to ensure that they are aware of all business risks of the company and that they are satisfied that the control procedures are adequate to mitigate these risks. The company s assets Acquisitions and disposals of fixed assets during the year are recorded in the notes to the accounts, and as at 30 September the net book value of fixed assets held by the company was 4,129. Tiri 6

11 Directors report period to 30 September Directors Each director has taken responsibility for monitoring the company s activities in specific operational areas and constant regard is given to the skills mix of the trustees to ensure that the board of directors has all the necessary skills required to contribute fully to the company s development. The following directors were in office at 30 September and served throughout the period, except where shown. Director Appointed / Resigned F Galtung J Pope Appointed 2 September 2003 & resigned 7 April 2005 Appointed 2 September 2003 & resigned 7 April 2005 J Carver Appointed 2 September 2003 S Taylor Appointed 5 December 2003 & resigned 27 May J J Corballis Appointed 5 December 2003 S Beg Appointed 11 March E Cotran Appointed 21 June 2005 R Sankar Appointed 21 June 2005 A L Karney Appointed 21 June 2005 Company secretary Martin Tisne Appointed 15 July 2005 Rickie Sankar Appointed 5 September 2003 & resigned 15 July 2005 Senior executives Name Fredrik Galtung Jeremy Pope Position Chief Executive Executive Statement of directors responsibilities Company law requires the company to prepare accounts, which give a true and fair view of the state of affairs of the company at the end of the financial year and of its surplus or deficit for the financial year. In preparing accounts giving a true and fair view, the directors are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; and Tiri 7

12 Directors report period to 30 September prepare the accounts on the going concern basis unless it is inappropriate to presume that the company will continue in operation. Tiri 8

13 Directors report period to 30 September Statement of directors responsibilities (continued) The directors are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and which enables them to ensure that the accounts comply with the Companies Act The directors are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditors Buzzacott were appointed first auditors to the company, and will be proposed for reappointment in accordance with Section 385 of the Companies Act Approved by the Board and signed on their behalf by: Director J Carver Tiri 9

14 Independent auditors report 30 September Report of the independent auditors to the members of Tiri We have audited the accounts on pages 12 to 18 which have been prepared under the historical cost convention and the accounting policies set out on page 14. 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 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 company and the company s members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of directors and auditors As described on pages 7 and 9 the directors are responsible for the preparation of the directors report and accounts in accordance with applicable law and United Kingdom Accounting Standards. Our responsibility is to audit the accounts in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards. We report to you our opinion as to whether the accounts 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 directors report is not consistent with the accounts, if the company 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 other information contained in the directors report and consider whether it is consistent with the audited accounts. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the accounts. Our responsibilities do not extend to any other information. Basis of opinion We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the accounts. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the accounts, and of whether the accounting policies are appropriate to the company s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance as to whether the accounts 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 accounts. Tiri 10

15 Independent auditors report 30 September Opinion In our opinion the accounts give a true and fair view of the company s state of affairs as at 30 September and of its incoming resources and application of resources, including its income and expenditure, in the year then ended and have been properly prepared in accordance with the Companies Act Buzzacott Chartered Accountants and Registered Auditors 12 New Fetter Lane London EC4A 1AG Tiri 11

16 Statement of financial activities Period to 30 September Notes Unrestricted funds Restricted funds Total funds Income and expenditure Incoming resources Incoming resources from generating funds. Grants 1 278, ,816 Incoming resources from charitable activities. Fees 87,026 87,026 Other income:. Interest 1,121 1,121 Total incoming resources 88, , ,963 Cost of generating funds 6,957 52,062 59,019 Net incoming resources available for charitable application 81, , ,944 Charitable expenditure Cost of activities in furtherance of the charity s objectives. Capacity building 7, , ,328. Implementation and enforcement 22,793 37,611 60,404. Measurement ,133 18,833 Governance costs 7,019 7,019 Total charitable expenditure 31, , ,584 Total resources expended 2 38, , ,603 Net incoming resources before transfers, carried forward as fund balances at 30 September 49,755 10,605 60,360 Tiri 12

17 Balance sheet 30 September Notes Fixed assets Tangible assets 5 4,129 Current assets Debtors 6 39,250 Cash at bank and in hand 95, ,329 Creditors: amounts falling due within one year 7 78,098 56,231 Total net assets 60,360 Represented by: Funds Unrestricted funds 8 49,755 Restricted funds 9 10,605 60,360 Approved by the Board and signed on their behalf by: Director - J Carver Tiri 13

18 Principal accounting policies 30 September Basis of accounting The accounts have been prepared under the historical cost convention, and in accordance with the requirements of the Companies Act 1985 and applicable accounting standards. The directors have followed the principal requirements of the Statement of Recommended Practice Accounting and Reporting by Charities (SORP 2005) as they believe that, given the activities undertaken, this better presents a true and fair view of this company s activities and state of affairs than the format prescribed in Schedule IV to the Companies Act Incoming and expenditure Restricted income is recognised when received. All other income and non grantmaking expenditure is recognised on an accruals basis. Grants payable are recognised as expenditure when the commitment has been entered into. Tangible fixed assets All assets cashing more than 100 and with an expected useful life exceeding one year are capitalised. Depreciation is at the following annual rates in order to write assets off over their estimated useful lives: Computer equipment 50% per annum based on cost Restricted funds Income received for purposes specified by the donor are shown as restricted fund income in the statement of financial activities. Expenditure for the purposes specified is applied to the relevant fund and any unexpended amount at the balance sheet date is carried forward within restricted funds. Cash flow The accounts do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirement to prepare such a statement under Financial Reporting Standard 1 Cash flow statements. Foreign currencies Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds. Allocation of staff and overhead costs Staff and overhead costs are apportioned between projects and management and administration according to the amount of time spent by each member of staff on each respective activity. Tiri 14

19 Notes to the accounts 30 September 1 Grants receivable Restricted Stiftung Open Society 335,825 OSI Development Foundation 16,089 Less: deferred income Stiftung Open Society (73,098) 278,816 Total grants receivable 278,816 2 Resources expended Fundraising and programme development Capacity building Implementation & enforcement Measurement Governance Unrestricted. Direct project costs 1,721 12,994 14,715. Apportioned support costs.. Staff costs 6,957 6,221 9,799 22,977.. Computer costs Other office costs ,957 7,942 22, ,392 Restricted. Direct project costs 56,186 3,915 60,101. Apportioned support costs.. Staff costs 13,929 85,332 28,725 16,671 4, ,658.. Travel 30,427 30,427.. Research 4,997 4,997.. Computer costs 795 3,485 1, ,052.. Telephone 953 4,175 1, ,820.. Other office costs 506 2, ,930.. Audit 2,500 2,500.. Sundries 455 1, ,726 52, ,386 37,611 18,133 7, ,211 Total expenditure 59, ,328 60,404 18,833 7, ,603 Overheads and staff costs are apportioned to the various activities based on a percentage of staff time. The percentage of staff time spent on the different activities is done on the number of days worked on each activity out of the number of days worked in the period. Tiri 15

20 Notes to the accounts 30 September 2 Resources expended (continued) Included in the above are the following: Depreciation of tangible fixed assets 4,130 Auditors remuneration. Audit 2,500. Other services 1,528 Staff costs Wages and salaries 165,949 Social security costs 5, ,635 The number of employees who earned 60,000 per annum or more (including taxable benefits but excluding employer pension contributions) during the year was as follows: Number 60,000-69, ,000-79, Directors remuneration Directors emoluments 146,228 4 Taxation Tiri is currently applying to obtain registered charity status. Given the nature of its activities the company is not likely to be subject to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. Tiri 16

21 Notes to the accounts 30 September 5 Tangible fixed assets Computer equipment Total Cost or valuation Additions in the period 8,259 8,259 At 30 September 8,259 8,259 Depreciation Charge for year 4,130 4,130 At 30 September 4,130 4,130 Net book values At 30 September 4,129 4,129 6 Debtors Accrued Income 39,250 7 Creditors: amounts falling due within one year Deferred Income 73,098 Accruals 5,000 78,098 8 Unrestricted funds Incoming resources Resources expended At 30 September General purposes 88,147 (38,392) 49,755 Tiri 17

22 Notes to the accounts 30 September 9 Restricted funds Incoming resources Resources expended At 30 September Capacity building PIEN 110,383 (106,895) 3,488 Implementation and enforcement Latin America strategy 16,089 (8,972) 7,117 Seed funding - OSI 152,344 (152,344) 278,816 (268,211) 10, Analysis of net assets over funds Unrestricted funds Restricted funds Total funds Tangible fixed assets 4,129 4,129 Net current assets 45,626 10,605 56,231 49,755 10,605 60,360 Tiri 18

23 Notes to the accounts 30 September The cover design illustrates the three main phases in the global pro-integrity, anticorruption movement since the mid-1980s. The first phase, until the mid-1990s, was one of breaking the taboo and making the case for addressing corruption as an international issue. The second phase was one of international norm-setting culminating in the UN Anti-Corruption Convention in The third phase addresses the twin challenges of enforcement and implementation. Head Office tiri 3rd floor Downstream Building 1 London Bridge London SE1 9BG T: F: Middle East and North Africa Office tiri French Hill (Sheikh Jarrah) P.O. BOX Jerusalem T: F: info@tiri.org Designed by: Rena Karanouh Printed by: Creative ad Tiri 18