Concern Annual Report 2007 by Concern Worldwide

2007

Annual Report and Accounts Concern Annual Report and Accounts 2007

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Concern Worldwide

Northern Ireland

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USA

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Concern is a member of Alliance2015.

Cover image A Gabbra pastoralist in north east Kenya. Photographer: Gideon Mendel.

Concern has signed the Dochas Code of Conduct on images and messages.

Contents

Foreword 3 Concern’s identity, vision, mission and values 5 Legal and administrative information 7 Where we work/Country overview 11 Report of Council Overseas programmes 33 Advocacy 56 Development education and events 59 Policy development and programme technical support 60 Fundraising 62 Review of financial outcome 64 Governance, risk management and other issues 68 Statement of Council members’ responsibilites 71 Independent auditors’ report 73 Annual accounts 75

The dramatic increase in flooding and river erosion for the past twenty years has caused many people living on the shrinking silt island of Aralia, in the Haor flood plain of north east Bangladesh, to lose their homes. Photographer Gideon Mendel

Foreword

Since its foundation in 1968, Concern’s core focus has been on improving the lives of the poorest people in the poorest countries. Over the past forty years, economic growth has lifted hundreds of millions of people out of poverty. The world now has its largest ever population with the smallest percentage living in extreme poverty.

But this is little consolation for those who remain stuck in the poverty trap. In 2007, Paul Collier, an economist who worked with the World Bank, wrote an insightful book “The Bottom Billion”. It described the reality for the poorest billion people on the planet who, in the main, live in countries in conflict, or failed states with corrupt or weak governance; countries with feeble economies and low tax revenues which depend on aid; countries affected by the burden of disease and under resourced public health systems. This sounds familiar to people in Concern. We work in countries with these characteristics; the ‘bottom billion’ represents the core of our target group. Hunger goes hand in hand with extreme poverty. Some 900 million people go to bed hungry every night. Less than 10% of these suffer from extreme malnutrition, the kind of hunger which leads to the terrible images of starvation we associate with famine and which accounts for the deaths of 1-2 million children annually. But the majority suffer from chronic malnutrition, the kind of hunger that stunts hundreds of millions of children, physically and mentally, each year. The kind of hunger that, along with preventable diseases, leads to ten million children dying each year. This is the world Concern has been dealing with, and helping to make a somewhat better place, over the past forty years.

But through 2007, and gathering pace in the early months of 2008, the poorest people have been affected by another insidious threat to their lives and livelihoods; rapidly rising food prices. The price of rice, the most basic of foods for the bulk of humanity, has doubled between the first quarter of 2007 and 2008. The increasing number of food riots in poor, and even in middle income countries, shows how the very existence of millions of poor people without proper access to food has become more precarious.

Beyond what we do in our own programme, we are advocating for policy change, at national and international level, to bring greater urgency and more effective action in the fight against hunger. We have entered into a unique partnership, involving Concern, the Washington based International Food Policy Research Institute (IFPRI), a world leader in food and nutrition research, and the Kerry Group, Ireland’s largest food company. Together we will carry out a programme of action research, based on Concern’s programmes in the field. We will gather the evidence from these programmes and work with our partners to develop policy recommendations.

Concern was founded to respond to the terrible famine in Biafra, in Eastern Nigeria in 1968. In the intervening decades, we have been present whenever extreme poverty tipped into famine: Bangladesh and Ethiopia in the 1970s; Ethiopia and Sudan in the 1980s; Somalia and Sudan in the 1990s; and Niger in the first decade of the 21st century.

In October 2008, we will host a major international conference on hunger in Dublin. Kofi Annan will be the keynote speaker and will head a panel of international leaders, each of whom have the passion and the influence to help win the fight against hunger.

It is no surprise that a core part of our work continues to respond to acute malnutrition and find new and better ways of alleviating chronic hunger. This 2007 Annual Report provides many such examples.

We are using the programme for our 40th anniversary to thank many people; the supporters from the public, our volunteers, governments and other donors. We acknowledge yet again the commitment and talent of our staff across the organisation.

In recent years, we have pioneered, in association with Valid International, an improved way of dealing with acute malnutrition – Community Therapeutic Care (CTC). We are proud that, in May 2007, the UN adopted this approach as international best practice and encouraged national governments to build it into their public health systems.

We remain committed to the values, the courage and the imagination of the founders of Concern, because the need is still there, we have the responsibility and the privilege to do what we can to meet that need and to release the potential of the poorest to work for a better future.

We are tackling the root causes of hunger. Our health and livelihoods programmes aim to improve the basic health of communities and provide people with pathways out of poverty. Education of girls and women, which is central to our education programme, is key to any long term strategy to improve food security at the household level. We are investigating different types of improved nutrition in our HIV and AIDS programme which will lengthen peoples’ lives.

Tom Arnold Chief Executive Concern Worldwide

Concernâ&#x20AC;&#x2122;s identity, vision, mission and values

Our identity Who we are Concern Worldwide is a non-governmental, international, humanitarian organisation dedicated to the reduction of suffering and working towards the ultimate elimination of extreme poverty in the worldâ&#x20AC;&#x2122;s poorest countries.

Our vision for change A world where no-one lives in poverty, fear or oppression; where all have access to a decent standard of living and the opportunities and choices essential to a long, healthy and creative life; a world where everyone is treated with dignity and respect.

Our mission What we do Our mission is to help people living in extreme poverty achieve major improvements in their lives which last and spread without ongoing support from Concern.

Our Values What guides our work

» All governments have responsibility for poverty elimination. Most of the poverty endured by countless numbers of people living in the developing world cannot be solved without changed national and international social, economic and political structures. Concern engages in advocacy to this end.

Concern’s core values derive from a single central value: Extreme poverty must be targeted. The quality of our overall endeavour must ultimately be measured by its contribution to the rapid elimination of the extreme form of poverty defined by the United Nations as “absolute poverty”. Our other values, stated below, are subsidiary to this central value:-

» Emergencies call for rapid response. We value the importance of being able to respond quickly, effectively and creatively to people unable to meet their basic needs, especially in sudden onset emergencies.

» Respect for people comes first. Poverty, no matter how extreme, reduces people’s choices - not their competence and abilities. Respect is shown to all people with whom we engage; and in particular in our overseas work, we respect the integrity and dignity of the poor with whom we work.

» Democracy accelerates development. Lack of equity in the distribution of power within and between societies retards the struggle against absolute poverty. Participatory democratic environments are the most favourable settings in which states, markets and people can together solve the problem of global poverty.

» Gender equality is a prerequisite for development. The establishment of equality of opportunities between men and women is fundamental to both the achievement of fairness and to poverty elimination.

» The environment must be respected. The destruction of the environment poses a major threat to our target groups. We acknowledge the importance of protecting the earth’s environment and the need to ensure that our development and advocacy work promotes the concept of environmental responsibility and the conservation of natural resources and their sustainable management.

» Development is a process, not a gift. Development is a process that occurs in people and is achieved by them at their pace, either on their own or with outside facilitation. We hold as a fundamental tenet that people living in absolute poverty have, in varying degrees, personal capacities, local resources and external opportunities for their own selfdevelopment. It is imperative that our work builds on these resources.

» Good stewardship ensures trust. We hold money in trust for all of our donors and for their intended beneficiaries. This creates a responsibility to ensure we are accountable and to give value for money both to our donors and to our project participants. » Experience is the best teacher. Our current policies, strategies and practices have been developed through our learning over the years. We value the ongoing process of learning and of participating in networks with other organisations to share experiences and learn from them.

» Greater participation leads to greater commitment. At home and overseas participation in decision-making leads to a greater and more sustained commitment to achieving developmental objectives. We believe in a high level and quality of participation by the poor in decision-making about development initiatives taken in partnership with them.

Legal and Administrative Information

Legal Status

Branches The work of the organisation in the developing world is carried out through branches located in the countries of operation.

Concern is the registered name of Concern Worldwide, an Irish company incorporated under the Companies Act, 1963, which is limited by guarantee, with no share capital.

Related Organisations Concern Worldwide (US) Inc. is a related, though operationally independent, organisation based in New York which supports the mission of Concern Worldwide by providing financial and human resources for programmes, recruiting expatriate staff, and raising awareness of Concern Worldwide and its mission. Concern Worldwide (US) Inc. is not controlled by Concern and, therefore, is not consolidated in the results of Concern.

Organisation Group Companies Concern undertakes relief and development work through its overseas branches, it also engages in advocacy and fundraising. Concern’s activities are carried out in association with its subsidiary, Concern Worldwide (UK), (“Concern UK”), which engages in fundraising, development education and advocacy work in the United Kingdom. Concern has two other active subsidiaries; Concern Charity Trading Limited, which is registered and operates in Ireland, it raises funds for Concern’s overseas work by carrying out retail trading and provides logistical and other support to fundraising activities; and, Angkor Mikroheranhvatho Kampuchea (AMK) Limited, which is incorporated in Cambodia, and is engaged in the provision of micro credit to rural communities in that country. Concern also has one wholly owned dormant subsidiary undertaking, Africa Concern Limited.

Concern remains a member of Alliance2015, in conjunction with five major European NGO’s – HIVOS (the Netherlands), IBIS (Denmark), Deutsch Welthungerhilfe (German Agro-Action), CESVI (Italy) and People in Need (Czech Republic). The Alliance seeks to implement joint programmes, to coordinate advocacy and campaigning work, and to negotiate as a group with co-funders in areas where there is a convergence of interests.

Concern Worldwide (UK) has three wholly-owned dormant subsidiaries, Concern Worldwide (Northern Ireland), Children’s Aid Direct and Trading for Concern Worldwide (UK) Charity Limited.

Council Members The following were members of the Council at the date on which the financial statements were approved:

(iv) Jim Miley stood down as Company Secretary and was replaced by Frances O’Keeffe.

Solicitors McKeever Rowan 5 Harbourmaster Place IFSC Dublin 1

Chairperson: Mr. Jim Miley

Officers and Other Information

Auditors KPMG Chartered Accountants 1 Stokes Place St. Stephen’s Green Dublin 2

Ms. Evanna Barry Mr. Eamonn Corcoran Ms. Anne Cummins Mr. Patrick McManus Mr. Martin Meehan Mr. Eamonn Moore Mr. Brendan Duffy Mr. Nick North Professor David Gwynn-Morgan Mr. Paddy Harte Mr. P.J. Howell Mr. Tom O’Higgins Ms. Frances O’Keeffe Ms. Mary Humphreys Mr. Chinedu Onyejelem Mr. Paul Jeffcutt Ms. Nora Owen Ms. Sally-Anne Kinahan Mr. David Regan Mr. Ged King Mr. Mark Shinnick Mr. Tom Lavin Mr. John Treacy Ms. Mary Liston Since the last AGM: (i) Paul Delahunty, Shaun Henry, Elinor Jenkins, John McCarthy and Ms. Marie O’Haire resigned as Council members. (ii) Paddy Harte, Chinedu Onyejelem and John Treacy were appointed as Council members. (iii) David Regan stood down as Chairperson and was replaced by Jim Miley.

Officers Mr. Jim Miley - Chairperson Ms. Evanna Barry Mr. Brendan Duffy Professor David Gwynn-Morgan Ms. Mary Humphreys Ms. Frances O’Keeffe Ms. Nora Owen Mr. David Regan, Mr. Eamonn Moore and Ms. Marie O’Haire resigned as Officers during the year and were replaced by Professor David Gwynn-Morgan and Ms. Nora Owen Financial Committee Mr. Brendan Duffy Mr. Brian Canavan Mr. Eamonn Corcoran Ms. Vivienne Jupp Ms. Sally-Anne Kinahan Mr. Ged King Ms. Eileen Quinn Mr. Michael Tutty Monitoring and Evaluation Committee Ms. Catherine Corcoran Mr. Patrick McManus Ms. Marie O’Haire Mr. David Regan Audit and Risk Committee Mr. Paul Jeffcutt Mr. Cyril Maybury Mr. Tom O’Higgins Mr. Mark Shinnick Secretary Ms. Frances O’Keeffe Principal Bankers Bank Of Ireland 2 College Green Dublin 2

Registered Office 52-55 Lower Camden St. Dublin 2 Registration No. 39647 Executive Management Team Mr. Tom Arnold Chief Executive Mr. Paul O’Brien Overseas Director Mr. Howard Dalzell Policy & Evaluations Director Mr. Anthony Brennan Human Resources Director Ms. Caroline Hickson Fundraising Director Mr. Jim Hynes Finance Director Mr. John Maxwell Corporate Services Director Ms. Lyndall Stein UK Executive Director

South Sudan, 2007. Photographer: Liam Burke/Press 22

Where we work/ country overview

In 2007, Concern worked in 30 countries as follows:

During 2007 we opened a new programme in Chad and closed our operations in Sri Lanka and Indonesia. As can be seen from the above listing; we continued to choose our countries of operation from the poorest countries on earth as measured by the UN Human Development Index; in addition our countries of operation spanned a variety of contexts from more secure developing countries to fragile, insecure states and states struggling with serious internal conflict.

Afghanistan Angola Bangladesh Burundi Cambodia Chad Democratic Republic of Congo Ethiopia Haiti India Indonesia Kenya Democratic People’s Republic of Korea Lao People’s Democratic Republic Liberia Malawi Mozambique Nepal Niger Pakistan Rwanda Sierra Leone Somalia Sri Lanka Sudan, North and South Tanzania Timor Leste Uganda Zambia Zimbabwe

In the course of the year we estimate that Concern programmes reached 9 million people directly and 29.5 million people indirectly. Within the countries where we operated our work focussed on our five core organisational programmes which comprise; Health; Education; Livelihood security; HIV and AIDS and Emergencies. Details of work undertaken in each programme are set out in the section titled ‘Overseas Programmes.’

Where we work

Afghanistan Amid continued insecurity in many areas, Concern worked in partnership with the nationwide government-run National Solidarity Programme (NSP), which aims to strengthen governance at the grassroots and help communities manage their own development. Our programmes focused on education, water and environmental health, secure livelihoods and emergencies. By involving the government, ensuring community ownership, and working closely with all stakeholders, these programmes will help bring about positive attitudinal change. Some key achievements: »

The number of communities where we are rolling out NSP increased by 70 to 322. These communities are gaining access to electricity, better healthcare, improved communications, access to markets, cleaner water sources and educational infrastructure. Some 4,400 families benefited from eight major water supply systems, four rehabilitated natural springs, and more than 100 new or renovated wells. We also helped build 2,094 individual family pit latrines, and promoted improved hygiene and sanitation practices to more than 12,500 people.

More than 14,000 people benefited from new school buildings with separate latrines for girls and boys, drinking water facilities and new teaching and learning materials. We also helped set up a district-level education taskforce to look into issues of access and quality education.

We helped 1,477 women and girls start earning a decent living again in kitchen gardens, nurseries, bakeries, and livestock activities.

The Concern programme area in Afghanistan is prone to floods. To mitigate against this we have undertaken flood protection measures including the building of walls, dams, bunds and a footbridge. We also delivered disaster preparedness and response training to 20 community development committees.

Angola

Statistical Information

In Angola, we work with rural populations where more than 95% of people rely on subsistence agriculture, focusing mainly on food security and sustainable farming solutions. We continued to shift our focus from emergency relief to long-term development, giving people the skills and expertise they need to break the cycle of dependency and uplift their communities. One of our main achievements in 2007 was setting up 45 community management groups, which organised people to demand and realise their rights and develop their own plans for their future. Other work included education, HIV and AIDS and emergency drought mitigation. Some key achievements: »

We set up a distance learning project for 200 teachers, to increase the academic level of rural teachers. All the preparation work was completed, and everything put in place for the new academic year.

We distributed 805 goats to 407 people in 41 village credit schemes. This was the first year of our goats project, which aims to improve the food security of 4,500 poor and vulnerable households over four years.

We targeted 57 villages to develop levels of HIV and AIDS awareness after assessments showed that less than 40% of the population had adequate knowledge of HIV transmission or prevention or the impacts of HIV and AIDS on livelihoods.

5,975 families each received 5kg of bean seed and 20g of carrot, onion and cabbage seeds to address potential food gaps resulting from erratic rainfall in January/February. This gave people enough seeds to maintain their normal cycle of food.

Total expenditure: E1.7m

Total expenditure: E4m

Afghanistan Area 652,000 sq km Population 25.1m GDP per Capita n/a Infant Mortality (per thousand births) 165 Life Expectancy 42.9 Living with HIV and AIDS n/a Literacy Rate 28% Access to safe water 39% Human Development Rank n/a Global Hunger Rank/Index* n/a Angola Area 1,247,000 sq km Population 16.1 m GDP per Capita US$2,058 Infant Mortality (per thousand births) 154 Life Expectancy 41.7 Living with HIV and AIDS 3.7% Literacy Rate 67.4% Access to safe water 53% Human Development Rank 162 (out of 177) Global Hunger Rank/Index* 91/24.50 Sources: UNDP Human Development Report 2007 *IFPRI 2007

Bangladesh This year will be remembered for emergencies in Bangladesh: a cold wave in January and mudslides in June killed 246 people; devastating floods throughout the summer destroyed crops and killed 916; then Cyclone Sidr hit in November, leaving almost 3,500 dead. In the wake of widespread devastation, Concern led intensive relief operations, distributing food and other essential items to thousands of families. We also continued to work on education, health, livelihoods and HIV and AIDS throughout the year. One of our highlights was successfully drawing the attention of the national education forum to the need for a flexible school calendar in areas prone to recurrent flooding.

Burundi

Statistical Information

With the swearing in of a new ‘ethnically balanced’ government at the end of the year, most observers agree that Burundi is no longer in a humanitarian crisis. However, a significant number of problems remain, including the widespread lack of basic foodstuff. In 2007, we changed the focus of our work from emergencies to community-based, long-term development, mainly in the areas of health, nutrition, education and livelihoods. We also started working with our first local partner, APECOS, which supports orphans infected and affected by HIV and AIDS. Some key achievements: »

Our catch up classes for school dropouts enabled 1,198 children to return to formal education.

Some key achievements: »

24,620 children in 75 schools benefited from a new project to improve the quality of and access to education. We also trained more than 3,700 teachers and school management committee members.

We helped train 257 community health workers and 257 traditional birth attendants; 11,266 children and 2,967 pregnant women have benefited from health education activities in their communities.

We reached 1.35 million people through primary healthcare and community-based nutrition projects. The prevalence of severe underweight decreased in all project areas from 26.2% in 2002 to 11.7% in 2007.

We helped train 36 staff from 12 health centres to diagnose malnutrition and monitor growth. As a result, 1,981 malnourished children have been treated in their own communities. We also distributed 6,500 insecticidetreated mosquito nets; most pregnant women and under fives now count on this protection against malaria.

More than 36,200 people (almost half of them women and adolescent girls) developed new vocational skills and received entrepreneurial training. The average household income in our project areas almost doubled from US$35 to US$65 per month. We raised awareness of HIV and AIDS transmission and prevention among local organisations, sex workers, adolescents, community health volunteers, health committee members, religious leaders and municipality health staff in many of our existing projects. We now ensure that HIV and AIDS is a part of all new projects.

Total expenditure: E6.5m

In partnership with the Food and Agriculture Organisation and the Institute of Agronomic Sciences of Burundi, we distributed 900,000 cassava cuttings that are resistant to the mosaic virus, which has attacked this main food crop in recent years. This is expected to boost household food production and reduce prolonged hunger gaps. We also established two community seed/food stores for safe post-harvest storage to significantly minimise these losses.

Total expenditure: E1.4m

Bangladesh Area 144,000 sq km Population 153.3 m GDP per Capita US$423 Infant Mortality (per thousand births) 54 Life Expectancy 63.1 Living with HIV and AIDS <0.1% Literacy Rate 47.5% Access to safe water 74% Human Development Rank 140 (out of 177) Global Hunger Rank/Index* 103/28.40 Burundi Area 28,000 sq km Population 7.9 m GDP per Capita US$106 Infant Mortality (per thousand births) 114 Life Expectancy 48.5 Living with HIV and AIDS 3.3% Literacy Rate 59.3% Access to safe water 79% Human Development Rank 167 (out of 177) Global Hunger Rank/Index* 118/42.37

By comparison Ireland Area 70,000 sq km Population 4.1 m GDP per Capita US$48,254 Infant Mortality (per thousand births) 5 Life Expectancy 78.4 Living with HIV and AIDS 0.2% Literacy Rate 99% Access to safe water 100% Human Development Rank 5 (out of 177) Sources: UNDP Human Development Report 2007 *IFPRI 2007

Where we work

Cambodia While the World Bank praised Cambodia’s growing economy in 2007, they also warned that the gap between rich urban centres and poor rural communities is increasing. To help combat this, Concern continued to support communities to improve their access to food and increase their household assets through a series of education, forestry, livelihoods and microfinance projects. One of the biggest changes we observed in our programme areas was people’s ability to send their children to school, while communities – particularly the poorest members in target villages – are also taking a more active part in local planning.

Chad

Statistical Information

Growing instability and conflict has caused huge displacement in Chad, with more than 700,000 people affected in 2007. Concern began working here in July, taking a strong role managing four camps for internally displaced people, coordinating the work of the different agencies involved and enhancing the effectiveness of the assistance provided. We also help the people living in the camps to organise and represent themselves to the international community and local authorities. In 2008, we will look at longer-term ways of helping people increase their income sustainably, including tree nurseries and seed and tools projects.

Some key achievements: »

More than 125,000 people benefited directly and a further 181,000 indirectly from our natural resource management work, which will help improve the longterm livelihoods of rural communities.

Many community members have identified changes in their capacity to earn a living after participating in our livestock-raising, integrated farming and small business projects.

We helped many landless families secure user access to common land for short-term rice growing during the dry season, vegetable production and temporary residence. Communities have also successfully participated in public forums to gain support against illegal logging and land encroachment issues.

Some key achievements: »

We worked closely with camp committees in all four sites, helping people discuss issues, represent their own needs and advocate for support from the humanitarian community and local authorities. Whilst some of these committees were established before we started working here, we facilitated the creation of others, such as youth groups and mixed committees.

Concern facilitated regular site coordination meetings to improve the quality and extent of the assistance being provided in the camps. Our site managers were also actively engaged in mediation and problem-solving between the different parties and agencies in the camps.

Microfinance - AMK Concern is a 100% shareholder in Angkor Microfinance Kampuchea (AMK), a licensed Microfinance Institution (MFI) operating in Cambodia. AMK originated from a Concern community development programme and obtained a licence from the Cambodian Central Bank in 2004. AMK has grown rapidly in the last 3 years and currently extends loans to over 120,000 people, with the total loan portfolio valued at over €7 million. In 2007 expenditure was €1.5 million. AMK is recognised as an industry leader, recently winning the CGAP Financial Transparency Award for the 2nd year in a row and being ranked the best performing MFI in Cambodia and the 18th globally in the 2007 MIX Global 100: Rankings of Microfinance Institutions.

In July and August we distributed 8,637 plastic sheets, 2,670 blankets, and 1,110 mats to 8,637 households in 96 villages before the onset of the rainy season. A further 20,500 blankets were later distributed. These items helped reduce the vulnerability of families affected by heavy flooding during the rainy season, increasing their capacity to cope.

Total expenditure: E1.4m

Total expenditure: E3.4m

Cambodia Area 181,000 sq km Population 14 m GDP per Capita US$440 Infant Mortality (per thousand births) 98 Life Expectancy 58 Living with HIV and AIDS 1.6% Literacy Rate 73.6% Access to safe water 41% Human Development Rank 131 (out of 177) Global Hunger Rank/Index* 100/27.57 Chad Area 1,280,000 sq km Population 10.1 m GDP per Capita US$561 Infant Mortality (per thousand births) 124 Life Expectancy 50.4 Living with HIV and AIDS 3.5% Literacy Rate 25.7% Access to safe water 42% Human Development Rank 170 (out of 177) Global Hunger Rank/Index* 105/29.90 Sources: UNDP Human Development Report 2007 *IFPRI 2007

DR Congo Despite widespread unrest and insecurity in the west and east, there were nonetheless important steps towards peace. The south remained calm, and people continued to return to their homes and restart agricultural actitivies. However, in the east the deteriorating security situation meant we had to suspend some of our work and have been unable to resume normal activities. Against this backdrop, Concern’s programmes focused on livelihood support and addressing malnutrition through community therapeutic care (CTC), and we continued to work closely with the Ministry of Health, training their staff on the new CTC approach and HIV and AIDS.

Ethiopia During 2007 Ethiopia’s food security situation improved due to favourable weather conditions and adequate rainfall. Although there was an increase in food production for the third consecutive year, 1.36 million people still needed emergency food assistance. We responded to several regional and local emergencies, and provided support to vulnerable communities – including women, orphans, children and people living with HIV. Some key achievements: »

Over 5,500 children received basic primary education. A radio programme highlighting the importance of education, particularly for girls, was transmitted in rural areas, and encouraged parents to send their children to school.

Awareness raising sessions trained mothers to recognise signs of malnutrition in children, and led to more families seeking medical help for sick children. Overall 2,270 children were provided with nutritional support through our nutrition programme.

Over 3,500 poor and vulnerable people in Addis Ababa received support to develop small businesses. 3,300 people in rural areas received cash payments to help them through the ‘hungry’ season, meaning they could stay on their land to tend crops rather than having to search for work elsewhere or sell their assets.

Some key achievements: »

To help people earn a more secure living, we provided farming training for 2,976 people, while 2,406 received livestock and 45,652 seeds and tools.

Road and bridge rehabilitation improved access to markets, while the construction work provided an income for 4,540 people.

To help returnees harvest enough food to eat and re-establish their homes, we distributed emergency food rations to 25,810 returnees; seeds and tools to 21,125; and non-food items to 57,000 people in 59 villages.

The number of children being treated through the CTC approach as part of the nutrition programme increased from 4,402 in 2006 to 6,385 in 2007, and there was a decrease in the levels of acute malnutrition and mortality throughout the programme area

8,286 people who benefited from our health and livelihoods work also received information on HIV and AIDS and related issues. »

Total expenditure: E4.4m

Statistical Information

Drinking water and crop irrigation supplies were improved to over 12,000 people in Wollo district. Journey times to fetch water fell from an average of 2 ½ hours to 30 minutes. Improved irrigation meant people were able to plant earlier and many households doubled their crop production. Working with five partner organisations in urban and rural areas, we reached 14,000 people through our HIV programme. Over 10,000 people attended sessions to increase awareness of HIV and 1,000 people living with HIV received care, counselling and financial support.

Total expenditure: E4.3m

DR Congo Area 2,345,000 sq km Population 58.7 m GDP per Capita US$123 Infant Mortality (per thousand births) 129 Life Expectancy 45.8 Living with HIV and AIDS 3.2% Literacy Rate 67.2% Access to safe water 46% Human Development Rank 168 (out of 177) Global Hunger Rank/Index* 117/41.17 Ethiopia Area 1,104,000 sq km Population 79 m GDP per Capita US$157 Infant Mortality (per thousand births) 109 Life Expectancy 51.8 Living with HIV and AIDS 0.9 – 3.5% Literacy Rate 35.9% Access to safe water 22% Human Development Rank 169 (out of 177) Global Hunger Rank/Index* 114/33.67

150 million children in the world suffer from chronic malnutrition.

Where we work

Haiti While 2007 was a largely peaceful year for Haiti, social tensions reamin and the country is still extremely vulnerable to natural disasters. The 2007 season was particularly tough, with Hurricane Dean in August, heavy rains and floods in October and November and an out-of-season tropical storm in December. Concern was among the first agencies to respond to these emergencies, immediately distributing blankets, hygiene and kitchen kits to 1,450 families. We also continued our work on health, water, livelihoods and HIV and AIDS. In response to an EU request, we contributed to a new urban rehabilitation programme, providing conflict-management training to a dedicated core of 15 young people from destitute urban environments, who have so far trained more than 1,000 youths in at-risk neighbourhoods.

India In the face of violence between people and the government over the forced acquisition of land for industry, we continued to help poor people to strengthen, support and build up their capacity to demand greater accountability of their government institutions. Our biggest highlight was being part of the Janadesh march, when more than 25,000 landless persons travelled 350km from Gwalior to Delhi to demand their right to land. After massive international coverage, the government announced the establishment of a national land reform committee. Throughout the year, we continued to focus on HIV and AIDS, and to help poor and marginalised people earn a secure living and cope with and prepare for natural disasters. Some key achievements: »

We achieved some success in securing guaranteed employment (and wages) for the rural poor, ensuring that these funds/resources were not siphoned off through corruption and ‘leakage’.

To counter stigma and discrimination around HIV and AIDS, we organised a photographic exhibition in five districts, targeting different groups – including college students, hospitals, women’s groups and slum populations. We also organised events around World Aids Day to raise awareness among young people.

Some key achievements: »

More than 16,000 children benefited from our school health programme, while 12,230 benefited from new school infrastructure and equipment.

Our health work improved the lives of 8,787 people, particularly women and children. Thanks to a new maternity ward in Saut d’Eau, over 40% of deliveries were assisted by a trained traditional birth attendant or midwife in 2007, up from 15%.

Better access to credit, training and activities such as goat breeding and poultry production have helped more than 12,000 people earn a better, sustainable living.

3,241 people have better access to quality water resources. We also created, restructured or trained 11 water management committees.

Our HIV and AIDS work helped 46,633 people access treatment, testing and counselling. We work particularly with young people, and fight discrimination against people living with HIV and AIDS.

Statistical Information

Our tsunami recovery programme came to an end in December 2007, after helping more than 25,000 families through a range of activities including revolving loans. Four times our original target benefited from such loans, which we expect will continue to revolve and multiply.

In the aftermath of the monsoon floods, we distributed emergency relief materials to 10,000 affected families in Bihar and helped 14,000 families in Orissa rebuild their homes and livelihoods.

Total expenditure: E3m

Total expenditure: E5m

Haiti Area 28,000 sq km Population 9.3 m GDP per Capita US$500 Infant Mortality (per thousand births) 84 Life Expectancy 59.5 Living with HIV and AIDS 3.8% Literacy Rate 54.8% Access to safe water 54% Human Development Rank 146 (out of 177) Global Hunger Rank/Index* 98/26.97 India Area 3,288,000sq km Population 1,134.4 m GDP per Capita US$736 Infant Mortality (per thousand births) 56 Life Expectancy 63.7 Living with HIV and AIDS 0.9% Literacy Rate 61% Access to safe water 86% Human Development Rank 128 (out of 177) Global Hunger Rank/Index* 94/25.03.2008 Sources: UNDP Human Development Report 2007 *IFPRI 2007

Kenya Political unrest in the run-up to the December 2007 elections provided the backdrop to our work in Kenya. Although there was an overall improvement in rain conditions that increased people’s access to food, localised floods and droughts affected our programme areas and our work which focused on livelihoods, nutrition, health, education and HIV and AIDS. On the strength of a joint government/Concern evaluation of one of our emergency nutrition programmes, we were invited to participate in a working group to develop national malnutrition treatment guidelines combining community-based management with existing in-patient guidelines and international recommendations.

DPR Korea The political situation continued to improve throughout 2007: the leaders of North and South Korea issued a joint declaration that included development and cooperation in social sectors and established a permanent peace. The suspension of INGO operations was lifted, helping us improve accessibility and implement new projects. While our focus remained on health – particularly water and sanitation – and livelihood security, we also responded to the emergency needs of people affected by the August floods, which left 221 dead and tens of thousands in temporary shelters. Some key achievements: »

Some 200,000 people benefited from our work in DPRK in 2007: that is 1% of the total population.

18,675 families got access to clean water, either through household connections or communal tap stands. We also built 483 new latrines – improving sanitation in schools and colleges, communities and individual homes.

We trained 46 local technicians on welding, pipe work, electrical pumps and motors and gravity-fed systems to ensure all water systems are sustainable. In total 80,000 people directly benefited from our water and sanitation work.

Our winter wheat seed multiplication project has increased the long-term availability of high-quality winter wheat seed, thus ensuring people have secure and sustainable access to food.

83,000 people benefited from our emergency response to the floods. We helped restore access to water, sanitation and healthcare facilities, and improve hygiene awareness. We also provided construction materials for communities to rebuild damaged or destroyed houses, bridges and grain stores, as well as seed to replace vegetables washed away by the floods.

Some key achievements: »

36,502 people benefited from our education programme which included support to 269 schools in our rural education project. We also helped provide formal primary education to extremely poor children in three urban slum areas.

3,000 children aged 3-11 benefited from a new project with Lea Toto, a local partner providing paediatric antiretroviral care. Activities include training for 21 health workers on nutritional care for HIV-positive children and outpatient therapeutic care for severe acute malnutrition.

Our livelihoods programme began its transition from emergency to long-term development in four districts. Since October, a total of 14,745 people have benefited from a variety of incomegenerating activities and disaster risk reduction planning.

We reached 27,537 people through our HIV and AIDS prevention, treatment and care activities, particularly focusing on young people and high-risk adults. We also supported 18 peer education clubs for behaviour change communication among children aged 9-14.

Following localised flash floods in January 2007, we helped 150 families rebuild their homes in areas less prone to flooding.

Total expenditure: E1.9m

Total expenditure: E2.5m

Statistical Information Kenya Area 583,000 sq km Population 35.6 m GDP per Capita US$547 Infant Mortality (per thousand births) 79 Life Expectancy 52.1 Living with HIV and AIDS 6.1% Literacy Rate 73.6% Access to safe water 61% Human Development Rank 148 (out of 177) Global Hunger Rank/Index* 86/20.97 DPR Korea Area 121,000 sq km Population 23.6 m GDP per Capita n/a Infant Mortality (per thousand births) 42 Life Expectancy 66.8 Living with HIV and AIDS n/a Literacy Rate n/a Access to safe water 100% Human Development Rank n/a Global Hunger Rank/Index* 83/20.00

Where we work

Lao PDR While the political and security situation in Lao remained stable in 2007, the disparity between rich and poor continued to grow. With this backdrop, Concern continued to work on health and livelihoods while developing a new civil society strengthening programme and a stand-alone HIV and AIDS project. We were also instrumental in establishing a microfinance working group with 11 key operators and practitioners, which played a role in promoting policy dialogue with the government, training, coordination, and exchanging information and best practice. Some key achievements: »

29,598 people benefited from our livelihoods programme which included natural resource management; food production and processing; and improved access to markets.

36,809 people benefited from health activities, including improved nutrition for under fives; health education; and water and sanitation.

Mobile health outreach made health services more accessible, available, and appropriate for communities, and brought immunisations; growth monitoring; and reproductive health, outpatient, and pharmacy services to 30 villages. Communities have started to plan how they can reduce the incidence rate of preventable diseases and malnutrition.

As well as supporting HIV-positive groups and promoting HIV awarenessraising activities, we provided financial and technical support to the national network of positive people. In response to an acute food shortage in one of our project areas, we distributed 154 tonnes of unmilled rice to 1,896 people in six villages, establishing community-managed rice banks for people to return a portion of the distributed rice next year, depending on the yields of their rice harvest.

Total expenditure: E1.7m

Liberia

Statistical Information

As post-war recovery continues in Liberia, Concern laid positive foundations in 2007 for advancing its transition from emergency to longer-term development programmes. As well as working on livelihoods, HIV and AIDS and rehabilitating refugees, we formed part of a five-member NGO consortium which supports the government in the water and sanitation sector. The establishment of the consortium – uniting the five organisations in their efforts to deliver water facilities and training; promote health and hygiene; and manage garbage – has been hugely successful and may be used as a model for future NGO coordination. Some key achievements: »

We helped 373 farmers improve their agricultural practices through 14 farm field schools. In December, 20 Concern-supported farmers won seven prizes at the National Agricultural Fair, including first places for best livestock, tuber, rice and most productive fishing group, and third place for most productive female farmer.

We provided tools and seeds for 250 peri-urban farmers in three slum communities, and helped 250 HIV-positive people earn a living and improve their diets on a six-acre farm.

80,859 people benefited from our health programme in 2007 – this includes health and hygiene promotion; HIV and AIDS awareness; latrines, wells and pipework construction and maintenance; and drainage clearance.

We continued to support returning refugees as they rebuilt their communities destroyed by 14 years of civil war. Many lack basic infrastructure such as roads, schools, health clinics, markets, and water and sanitation facilities.

Following heavy rainfall and subsequent flooding in August, we distributed 2,472 mosquito nets, benefiting 350 pregnant women and 2,172 children under five.

Total expenditure: E3.7m

Lao PDR Area 237,000 sq km Population 5.7 m GDP per Capita US$485 Infant Mortality (per thousand births) 62 Life Expectancy 63.2 Living with HIV and AIDS 0.1% Literacy Rate 68.7% Access to safe water 51% Human Development Rank 130 (out of 177) Global Hunger Rank/Index* 89/23.23 Liberia Area 111,000 sq km Population 3.44 m GDP per Capita n/a Infant Mortality (per thousand births) 157 Life Expectancy 44.7 Living with HIV and AIDS 2-5% Literacy Rate 51.9% Access to safe water 61% Human Development Rank n/a Global Hunger Rank/Index* 113/33.00 Sources: UNDP Human Development Report 2007 *IFPRI 2007

Malawi Concern continued to lead the institutionalisation of community therapeutic care (CTC) in 2007 and further increased the geographical coverage of CTC. The national government has shown its commitment and desire to incorporate CTC, attracting official visits from Rwanda, Ethiopia and Zimbabwe. Our rights-based livelihood programme continued to show great progress, too, establishing strong partnerships with civil society organisations. We maintained our reputation for innovation in humanitarian response: our Dowa emergency cash transfer (DECT) programme received a very positive evaluation, and was endorsed by Hilary Benn – then UK Minister for International Development. Other Concern programmes in southern African now regard cash transfers as a viable solution, and the Swaziland government has shown interest in the programme.

Mozambique Mozambique was once again pummelled by natural disasters in 2007 – more than 250,000 families were affected by flooding, the south suffered its third drought in five years, and cyclone Favio destroyed the crops of more than 50,000 households. As well as quickly responding to these disasters, we increased our efforts to work directly with poor communities on disaster risk reduction, livelihoods and social protection, as well as our focus on HIV and AIDS. At a national level, we gave technical support to the National Disaster Management Institute, helping to design disaster risk and recovery training and manuals, and using them to train 16 disaster management committees. Some key achievements: »

59,874 people in three provinces benefited from our education work in 2007. School councils are better structured and now plan, monitor and implement activities to improve quality and access to education. School attendance has increased and dropout rates have reduced – particularly among girls.

2,400 people and 46 civil society organisations have benefited from our livelihoods work, which helps people gain access to water, technical farming expertise or cash for non-food needs.

Some key achievements: »

The DECT programme came to an end, after helping more than 10,000 households cover the food gap created by a localised drought until the following harvest. The monthly cash payments were tailored to household size and index-linked to local market prices. Our CTC programmes have increased in number, and a strengthened referral system at community level, with volunteers actively finding and referring cases of malnourished children, has resulted in fewer children being admitted to nutritional rehabilitation units. We initiated the first phase of a new livelihoods programme benefiting 30,000 poor households which aims to address the root causes of poverty by improving agricultural production, natural resource management and access to markets while strengthening civil society organisations to help people advocate for their rights.

Working with nearly 150 activists and community leaders and 5,000 vulnerable people, we have helped improve HIV and AIDS care and prevention and are addressing sensitive issues including unequal gender relations, cultural taboos, stigma, death and household dynamics.

In the aftermath of serious floods in the country, we set up temporary resettlement camps, distributed food, clothes, blankets and soap to over 6,500 and provided school materials to over 1,000 children.

Total expenditure: E2.9m

We organised debates, plays and discussions focused on human rights, gender and equality issues to increase the awareness of people’s rights, equality, roles and responsibilities.

Total expenditure: E3.4m

Statistical Information Malawi Area 118,000 sq km Population 13.2 m GDP per Capita US$161 Infant Mortality (per thousand births) 79 Life Expectancy 46.3 Living with HIV and AIDS 14.1% Literacy Rate 64.1% Access to safe water 73% Human Development Rank 164 (out of 177) Global Hunger Rank/Index* 91/24.50 Mozambique Area 802,000 sq km Population 20.05 m GDP per Capita US$335 Infant Mortality (per thousand births) 100 Life Expectancy 42.8 Living with HIV and AIDS 16.1% Literacy Rate 38.7% Access to safe water 43% Human Development Rank 172 (out of 177) Global Hunger Rank/Index* 102/27.97

900 million people in the world do not have enough to eat.

Where we work

Nepal While political and security uncertainty affected Concern in Nepal, our implementing partners have been able to adapt well to the changing circumstances. A new field office has allowed us to work more closely with partners, and we have seen an increase in confidence among the communities we work with as the objectives of our programmes are being felt. In 2007 we focused our work on livelihoods, water and sanitation and nutrition. Some key achievements: »

Our food for work and food for training programmes have helped protect the livelihoods of food insecure communities in crisis situations. These programmes ensure communities have enough to eat while creating or rehabilitating basic community assets and providing vital skills training. Almost 14,000 people in 29 districts received rice in return for community-based work or training, which included:

49 food-for-training projects: vegetable gardening; goat training; orchard development; livestock development; and HIV and AIDS awareness.

Despite some delays caused by climate and other natural factors, we expect to have provided safe drinking water supplies and sanitation facilities to more than 7,500 people in 14 communities by March 2008 (three months behind schedule). This work directly contributes to reducing the potential of outbreaks of health epidemics, and aims to positively change hygiene behavioural practice. We also started a pilot CTC nutrition project in three distinct geographical areas to improve child health and nutrition.

Statistical Information

2007 saw the resurgence of a low-intensity insurgency conflict in the Agadez region of northern Niger, bordering Concern’s area of operation in Tahoua region. Lack of access to food and chronic malnutrition characterise the area and during 2007 we continued to focus on our community therapeutic care (CTC) nutrition management programme. We worked closely with the government on both primary education and health – particularly on integrating CTC into Ministry of Health structures, and are helping them harmonise and steer policy on health implementation and CTC programming. We have also entered a three-year disaster risk reduction consortium with four partners, which we will apply to both food and health programmes. Some key achievements: »

127 food-for-work projects: school rehabilitation or construction; drinking water projects; mule or foot trails; surface irrigation schemes; reclamation of terraces; river training; and bridge rehabilitation

Niger

31,722 children have benefited from our education work. We work with the Ministry of Education and other partners to increase and improve education infrastructure, which will help ensure that all children, particularly girls, have access to primary school. We have also helped train 1,363 teachers and 1,656 school management committee members.

Through our CTC programme we are supporting 13 rural clinics, with a catchment of 280,000, in the treatment of acute, moderate and severe malnutrition. Whilst the global acute malnutrition rate is down to 8-12% from 19.5% in May 2005, work remains to be done and Concern has started to focus on the fundamental causal factors of malnutrition.

We are also developing a new public health programme, which will seek to reduce maternal and child mortality by improving health and caring practices at the community level, increasing sustainable access to public health and hygiene infrastructure and helping to improve the quality of health services.

Total expenditure: E3.2m

Total expenditure: E1m

Nepal Area 140.800 sq km Population 27.1 m GDP per Capita US$272 Infant Mortality (per thousand births) 56 Life Expectancy 62.6 Living with HIV and AIDS 0.5% Literacy Rate 48.6% Access to safe water 90% Human Development Rank 142 (out of 177) Global Hunger Rank/Index* 90/24.30 Niger Area 1,267,000 sq km Population 13.3 m GDP per Capita US$244 Infant Mortality (per thousand births) 150 Life Expectancy 55.8 Living with HIV and AIDS 1.1% Literacy Rate 28.7 Access to safe water 46% Human Development Rank 174 (out of 177) Global Hunger Rank/Index* 112/32.67 Sources: UNDP Human Development Report 2007 *IFPRI 2007

Pakistan It was a turbulent year for Pakistan on both the political and security fronts. Demonstrations and bombings throughout the year led to President Musharraf declaring a State of Emergency in November. Cyclone Yemyin hit the south in June, bringing with it devastating floods which left hundreds dead and hundreds of thousands homeless. Against this chaotic background, Concern continued to work in three provinces, focusing on livelihood security, primary healthcare, and emergency preparedness and response.

Rwanda While Rwanda’s overall political and security situation remained stable, the country still faces major challenges in agriculture, population growth and income distribution. Working with national NGOs, Concern continued to help the government consolidate its district annual plans for livelihoods, health, education and HIV and AIDS, significantly contributing to national development priorities. Some key achievements: »

Some key achievements: »

In the aftermath of the cyclone, we distributed food and non-food items to almost 25,000 people. We also rebuilt 400 traditional shelters, rehabilitated irrigation structures, tube wells and hand pumps, distributed seed and reclaimed land. To ensure communities are better prepared for future disasters, we also built flood protection structures and raised homesteads. 65,613 people benefited from improved water and sanitation facilities, including pumps, water supply schemes, distribution systems and household latrines. These have not only had a significant impact on people’s health and wellbeing, but have also lessened the burden on women, who no longer have to transport water over long distances. Our strategy of training and equipping community members as traditional birth attendants has improved care for women and infants while providing much-needed income. In Balochistan alone we estimate this will contribute towards 3,000 to 5,000 safer births over the coming years. Our livelihoods security programme has helped train 202,589 people in a broad range of vocational skills which will enable them to look forward to a more secure future. We provided disaster risk and recovery (DRR) training for 300 people from 26 villages. Group work at end of each training session resulted in the formulation of a DRR action plan.

Statistical Information

116,131 children and 1,864 teachers benefited from our education work: the pilot schools in our primary education programme averaged increased enrolment rates of 18.4% and reduced drop-out rates of 9%. By comparison, other schools’ enrolment increased by 8.6%, and drop-outs increased by 3.9%.

We helped 3,153 people earn a more secure living, through seeds and tools for homestead gardens; training in improved farming techniques, animal husbandry and small business; and access to small grants.

8,747 people benefited from our HIV and AIDS work, including prevention and support in food production and earning a living. We raised awareness among 170 key community and church leaders about their role in fighting against HIV and AIDS, and trained 49 peer counsellors from each target group.

The community therapeutic care (CTC) nutrition pilot project treated 91 under-fives for severe malnutrition and complications such as malaria, TB and HIV. We also trained 32 district health staff in treatment of severe acute malnutrition, supervision and monitoring. We helped communities elect 4,452 health workers, who will provide the backbone of a communityintegrated management of child illness programme. They screened, treated and referred 73,357 children with fever, treating 90% within 24 hours of symptoms appearing.

Total expenditure: E1.5m Total expenditure: E6m

Pakistan Area 804,000 sq km Population 158.1 m GDP per Capita US$711 Infant Mortality (per thousand births) 79 Life Expectancy 64.6 Living with HIV and AIDS 0.1% Literacy Rate 49.9% Access to safe water 91% Human Development Rank 136 (out of 177) Global Hunger Rank/Index* 88/22.70 Rwanda Area 23,000 sq km Population 9.2 m GDP per Capita US$238 Infant Mortality (per thousand births) 118 Life Expectancy 45.2 Living with HIV and AIDS 3.1% Literacy Rate 64.9% Access to safe water 74% Human Development Rank 161 (out of 177) Global Hunger Rank/Index* 97/26.27

Where we work

Sierra Leone The overall situation in Sierra Leone continues to improve, with the first elections since UN peacekeepers left two years ago passing off relatively peacefully. Nevertheless, many challenges remain, and almost five years after the end of the war, 70.2% of the population still lives in grinding poverty. Concern continued to shift our work from rehabilitation to longterm development, focusing on access to food, earning a sustainable living, and improving water and sanitation. An evaluation revealed that the hunger gap among families where we work has been reduced from five months to two, and that malnutrition has decreased considerably.

Somalia Despite the increasingly challenging and dangerous situation in Somalia in 2007, Concern continued to provide vital support to many vulnerable people. As one of the few aid agencies still operating inside the country, we assisted some of the one million people forced to flee Mogadishu because of fighting. Alongside this we provided support to people in the south of the country through our education, livelihoods, water and sanitation and HIV programmes. Some key achievements: »

Over 8,000 children from poor families, 37% of whom were girls, were provided with primary education. 264 teachers received training and over 40,000 text books were distributed to schools. In addition 22 schools were repaired or rebuilt.

Over 2,500 families increased crop production as a result of improved irrigation, access to better seeds and fertilisers, and training on improved farming techniques.

Fifteen wells were constructed or repaired and eight boreholes were drilled, providing almost 4,000 families with safe drinking water. The time taken to fetch clean water was reduced from five hours to ten minutes for many families, reducing the burden on women and girls responsible for the task of water collection.

An information campaign to raise awareness of HIV was broadcast through three radio stations and one television station.100 young people were trained as HIV peer educators and at the end of the year 240 people took part in a commemoration of World AIDS Day.

Kits containing essential items such as soap, blankets and mosquito nets were distributed to over 70,000 people displaced by fighting in Mogadishu.

Some key achievements: »

17,433 children and 418 teachers in 66 schools benefited from our education work, as did 462 school management committee members. With many teachers unqualified, we have been providing in-service training to complement our distance learning project. Both contribute to teacher quality and quantity, giving them greater security and credibility.

Some 22,687 people in 228 villages and six urban slums benefited from our health work, which focused on mother and child health, nutrition, water and environmental health, and HIV and AIDS.

The prevalence of moderate and severe malnutrition among children declined from 13% to 3% in an area covered by our community-based therapeutic care (CTC) nutrition pilot project.

11,000 households in 229 villages benefited from our livelihoods work. This included distributing seed to 1,400 families and agricultural training for 3,000 farmers; improving access to markets; vocational training for young people; and improving natural resource management.

Total expenditure: E2.8m

Statistical Information

Total expenditure: E2.5m

Sierra Leone Area 72,000 sq km Population 5.6 m GDP per Capita US$216 Infant Mortality (per thousand births) 165 Life Expectancy 41.8 Living with HIV and AIDS 1.6% Literacy Rate 34.8% Access to safe water 57% Human Development Rank 177 (out of 177) Global Hunger Rank/Index* 115/35.17 Somalia Area 638,000 sq km Population 8 m GDP per Capita n/a Infant Mortality (per thousand births) 133 Life Expectancy 47 Living with HIV and AIDS n/a Literacy Rate n/a Access to safe water 29% Human Development Rank n/a Global Hunger Rank/Index* n/a Sources: UNDP Human Development Report 2007 *IFPRI 2007

Sudan North Three years after the signing of the comprehensive peace agreement, progress towards sustainable peace continues, with the notable exception of Darfur. Strengthened collaboration between both governments, the United Nations and NGO partners resulted in increased capacity to deliver basic services and address emergencies. Against this background, Concern focused on improving access to food, livelihoods, water and healthcare in Abyei – an area that serves as a social and economic bridge between north and south. Our emergency West Darfur programme had considerable success despite the numerous obstacles and impediments to working in the area.

Sudan South Despite ongoing political tensions in 2007, the government made some progress towards implementing the comprehensive peace agreement and establishing infrastructure, and large numbers of displaced people returned home. Concern focused on meeting the basic needs of returnees and poor communities through livelihoods, health (including malnutrition), education and HIV and AIDS programmes. We worked closely with the government, developing an integrated healthcare/ nutrition programme and handing over a new, fully equipped education office and six primary schools to the government. Some key achievements:

Some key achievements:

7,255 children in 25 primary schools benefited from new materials, while we provided training for 375 teachers, PTA members and government education staff. These schools have seen a 66.7% increase in enrolments since November 2006, and girls now constitute 31.5% of the school-going population.

We improved water and environmental health for 69,208 people, by building or refurbishing boreholes, wells, pumps and pit latrines; establishing and training water committees; and promoting improved hygiene and sanitation practices.

Our farming and livestock projects, petty trade support and skills development for local partners helped 193,020 people earn a more secure living. We also helped 17,320 returnee households regain their food selfreliance by distributing seeds, locally made tools and/or fishing equipment.

We used drama, folklore, dance, song, and video to raise HIV and AIDS awareness among 33,096 youths, traders, women, community leaders, teachers and others.

We helped community health workers treat 2,618 children and 464 adults – mostly pregnant and breast-feeding women – for moderate to severe malnutrition and provided stabilisation care to 585 severely malnourished children.

In Darfur »

175,000 people – including newly displaced families – received emergency relief items

Our nutrition work reached 236,188 people, and has succeeded in reducing malnutrition indicators to below internationally agreed minimum standards

Nearly 180,000 people accessed improved water and sanitation, vastly reducing the prevalence of hygienerelated diseases

31,780 people are earning a more secure living.

In the rest of North Sudan: »

Concern’s livelihood/ food security programme reached some 11,550 poor people through a variety of projects – including distributing seeds, seedlings, tools and small livestock; building a seed bank and training a committee to manage it; animal traction training; forming and strengthening village development committees; and support and training for local partners.

7,800 people directly benefited from our water and sanitation work; there is also increased awareness of the link between sanitation and health.

We supported two primary health centres serving 2,200 people with new equipment, training for traditional birth attendants and improved facilities.

Total expenditure: E5.6m

Total expenditure: E6.2m

Statistical Information Sudan Area 2,506,000 sq km Population 36.9m GDP per Capita US$760 Infant Mortality (per thousand births) 62 Life Expectancy 57.4 Living with HIV and AIDS 1.6% Literacy Rate 60.9% Access to safe water 70% Human Development Rank 147 (out of 177) Global Hunger Rank/Index* 95/25.60

Hunger and poverty claim 25,000 lives every day.

Where we work

Tanzania Concern continued to implement programmes in five poor regions, focusing on livelihoods, in particular food security; and health, including access to safe water and reducing the burden of environmental health-related problems amongst refugee and rural populations. We continued to address HIV and AIDS policy issues on a national level, working closely with the government and others. Our governance programme also made considerable progress, particularly on the production and marketing of cashew nuts by poor farmers. Early indications show that changes to the marketing process should ensure that farmers receive a better price for their cashew nuts, and reduce opportunities for middlemen to exploit them.

Timor Leste Amid continuing insecurity, a new president and parliament were elected in 2007. With more than 10% of the population still displaced and southeast Asia’s highest malnutrition rates, the new government is under pressure to deliver tangible benefits to the poor and ensure long-term stability. Concern’s work focused on livelihoods security and health, and we negotiated a pilot communitymanaged acute malnutrition project with the Ministry of Health and UNICEF, due to start in early 2008.

Tanzania Area 945,000 sq km Population 38.5 m GDP per Capita US$316 Infant Mortality (per thousand births) 76 Life Expectancy 51 Living with HIV and AIDS 6.5% Literacy Rate 69.4% Access to safe water 62% Human Development Rank 159 (out of 177) Global Hunger Rank/Index* 96/26.13

Some key achievements:

Timor Leste Area 19,000 sq km Population 1.1 m GDP per Capita US$358 Infant Mortality (per thousand births) 52 Life Expectancy 59.7 Living with HIV and AIDS <0.2 Literacy Rate 50.1% Access to safe water 58% Human Development Rank 150 (out of 177) Global Hunger Rank/Index* 85/20.60

5,344 people have directly benefited from our livelihoods programme and now have a more secure living. Components of the programme included access to seeds and tools, new irrigation or nursery systems, poultry raising, farming training and the development of demonstration farms.

We arranged for farmer leaders, local partners and government staff to visit other projects in neighbouring districts and further afield to learn about sustainable farming practices. They are now applying these technologies at home.

Some key achievements: »

We continue to run refugee care operations in one camp, home to 25,758 individuals, where we have reduced water-borne diseases with safe water and improved sanitation. We have particularly focused on reducing the incidence of malaria by mobilising communities to reduce mosquito breeding sites and promoting the use of mosquito-repellent plants. 77,647 people benefited from the effective implementation of district ward-level water and environmental health plans. Concern will continue working closely with the government, advocating for prudent spending of the meagre resources available and for realistic, achievable pro-poor policies. To address the lack of dependable access to food among poor households, we have helped over 13,000 people improve farming practices. The results have already been positive with better than average harvests being achieved in 2007. Rights awareness training has encouraged poor and vulnerable citizens to participate in their own development and governance. Key village committees have been established, and there is increased recognition of equal rights for all at the community level.

Statistical Information

To help improve health and nutrition, we ran cooking demonstrations and training in water purification methods for 1,970 women and girls and health and nutrition education for 600 women.

28,713 people have directly benefited from flood mitigation support, drought mitigation works, early warning systems, education and advocacy and awareness-raising.

We provided emergency nutrition for 2,741 children under 5 and 1,358 pregnant and breast-feeding women. As well as training mothers on better hygiene and feeding practices, we helped community outreach workers raise awareness of these issues through home visits.

Total expenditure: E1.4m

Total expenditure: E2.1m

Sources: UNDP Human Development Report 2007 *IFPRI 2007

Tsunami Response On 26 December 2004, South Asia, South East Asia and Somalia were hit by a series of tsunamis. Thousands of people were killed and millions of survivors lost their homes and livelihoods. In response to this disaster we opened two new country programmes in Indonesia and Sri Lanka. An important aspect of both interventions was the preparation of exit strategies to ensure timely and responsible withdrawal from both countries.

Indonesia We ceased operations to implement programmes directly in June 2007 but we continue to operate through partner agencies.

Uganda Despite a government-rebel agreement to cease hostilities, the likelihood of a negotiated and lasting peace is low. Nevertheless, people moved from the old displacement camps to new transit or early return sites, and Concern continued to provide support to them in all three situations. The main focus of our work remained on livelihoods and HIV and AIDS, while we also responded to emergencies, working with displaced people in the north and in response to heavy flooding in the east.

Uganda Area 241,000 sq km Population 28.9 m GDP per Capita US$303 Infant Mortality (per thousand births) 79 Life Expectancy 49.7 Living with HIV and AIDS 6.7% Literacy Rate 66.8% Access to safe water 60% Human Development Rank 154 (out of 177) Global Hunger Rank/Index* 78/20.97

Some key achievements:

Indonesia Area 1,919,440 sq km Population 226 m GDP per Capita US$1,302 Infant Mortality (per thousand births) 28 Life Expectancy 69.7 Living with HIV and AIDS 0.1% Literacy Rate 90.4% Access to safe water 77% Human Development Rank 107 (out of 177) Global Hunger Rank/Index* 54/11.57

Over 79,000 people have benefited from our livelihoods work, which included better access to markets; food production and processing; community and natural resource management.

In Kampala, we continued working closely with local government, strengthening the capacity of six parish development committees to participate in community project planning, implementing and monitoring. As a result, they implemented at least three water and sanitation projects.

10,138 people have directly benefited from our HIV and AIDS work – this included voluntary counselling and testing; vocational skills training; awareness raising; and strengthening herbal medicine provision and home care for people living with HIV and AIDS.

We continued to work with displaced people living in camps in the north. More than 133,000 people benefited from our water and sanitation work there, and another 9,240 received an income boost through our cash-forwork project.

Some key achievements: Our main focus in Indonesia was on the island of Simeulue where we built 1,094 homes from sustainable wood sources, engineered to withstand significant seismic activity. »

In Banda Aceh we cleaned and restocked damaged schools and provided students with new uniforms and books. Three months after the disaster, children were able to return to school. For over 18 months we provided clean water and sanitation facilities to over 9,000 people in Banda Aceh and Aceh Besar.

Total expenditure: €2.0m

Sri Lanka We concluded our operations in March 2007. Some key achievements: We worked in partnership with local organisations and together built 5,490 temporary houses in five districts which was almost 10% of the total national requirement. »

We worked with local lawyers and replaced 9,443 birth certificates, 330 marriage certificates and 194 land deeds.

Statistical Information

In the aftermath of the floods, we distributed water purification materials, blankets, mosquito nets and plastic sheeting to 8,221 people; while our work rehabilitating roads and schools benefited 14,017 people.

Total expenditure: €3.7m

We provided training and small loans to people to help them get a livelihood and return to a self sufficient lifestyle. More than 60% of the beneficiaries were women.

Sri Lanka Area 65,610 sq km Population 19.1 m GDP per Capita US$1,196 Infant Mortality (per thousand births) 12 Life Expectancy 71.6 Living with HIV and AIDS <0.1% Literacy Rate 90.7% Access to safe water 79% Human Development Rank 99 (out of 177) Global Hunger Rank/Index* 69/16.60

Total expenditure: €0.5m 31

Where we work

Zambia Although Zambia was quiet on the political front and the economy is performing well, poverty levels remain high, particularly in rural areas. Concern expanded its operations into two new districts in 2007, and started working with five new partners. We focused mainly on livelihoods, HIV and AIDS and nutrition. We also responded to exceptionally high and early flooding of the Zambezi river. Some key achievements: »

We helped 32,671 people have more secure livelihoods, through skills development and other support and services. Monitoring has shown that among people who benefited from our projects – including training in new farming techniques; better access to markets; honey production; fish and poultry farming – incomes have increased on average by 19.6%. We provided support and services for 2,049 people living with HIV, while also developing the skills and capacity of individuals and organisations working with HIV and AIDS. We helped establish 20 support groups, which started vegetable and herb gardens to provide members with dietary supplements and herbal remedies.

We started working with new local partners on HIV projects, promoting voluntary counselling and treatment for young people, awareness raising through drama, peer educator training and anti-stigma clubs.

1,722 households received cash grants to replace items lost in the floods, giving them the flexibility to decide what to prioritise. We also trained 3,178 households in new farming techniques, distributed seeds and tools to more than 19,000 people, and helped communities clear canals, reducing their future vulnerability to flash floods and opening up new land for cultivation.

Total expenditure: E2.0m

Zimbabwe

Statistical Information

Although the economy had not completely collapsed, the overall situation deteriorated significantly in 2007. This led to a decline in coverage and quality of the national health, education and social sectors while erratic rains and lower levels of commercial production meant there was a food deficit. Against this background, we continued to focus on improving livelihoods for the most vulnerable populations, while 33,226 people benefited from the first full year of our HIV and AIDS programme.

Zambia Area 752,000 sq km Population 11.5 m GDP per Capita US$623 Infant Mortality (per thousand births) 102 Life Expectancy 40.5 Living with HIV and AIDS 17% Literacy Rate 68% Access to safe water 58% Human Development Rank 165 (out of 177) Global Hunger Rank/Index* 108/31.10

Some key achievements:

Zimbabwe Area 390,000 sq km Population 13.1 m GDP per Capita US$259 Infant Mortality (per thousand births) 81 Life Expectancy 40.9 Living with HIV and AIDS 20.1% Literacy Rate 89.4% Access to safe water 81% Human Development Rank 151 (out of 177) Global Hunger Rank/Index* 93/24.83

140,014 people benefited from our livelihoods work, which included conservation farming, nutrition gardens, training, and seed and fertiliser distribution. The first half of the current season progressed well and there is potential for good crop yields next year.

We helped communities rehabilitate and dig 28 boreholes and 29 wells. In areas where boreholes are not viable, we installed three sand abstraction pumps, giving communities year-round access to water for irrigation and safe household use.

We set up 24 Stepping Stones and Reflect (STAR) circles, where 650 people meet regularly to discuss the underlying causes of HIV transmission such as gender imbalances, gender-based violence and cultural practices and make up action plans to address these.

We started work with three mission hospitals to provide outreach HIV prevention services in 22 isolated areas, and provided HIV and AIDS training for 87 community workers and 38 health centre staff.

In partnership with the World Food Programme, our vulnerable group feeding programme targeted 186,595 people with insufficient crop production, no livestock or other sources of income.

Total expenditure: E4.5m

Report of the Council

The Council of Concern Worldwide presents its report and consolidated financial statements for the year ended 31 December 2007.

Programme

Expenditure 2007 â&#x201A;Źâ&#x20AC;&#x2122;m

Health

27.4

Basic education

13.4

Livelihood security

36.5

HIV and AIDS programming Emergency response and preparedness

5.3 24.5

Total overseas expenditure 107.1

Overseas Programmes

The overall objectives and activities of each programme in 2007 are detailed in the following pages. Concern programmes result in measurable outcomes. Outcomes are however difficult to aggregate at organisational level. This is largely because project/programmes are very context specific i.e. they are designed to address specific local needs in local conditions and hence aggregation can be very difficult.

In describing the programmes we have; outlined objectives and activities and the main targets which we have achieved during the year; summarised the conclusions from programme reviews and evaluations; and provided a case study to illustrate the type of work that we do in each programme. Further examples of the specific work done in each country is contained in the country narratives.

Our expenditure was as follows:

Overseas Programmes Concern’s work in 2007

To achieve our mission we work in developing countries where our programmes comprise both long term development work and responses to emergency situations. Watching a drama on Aids performed by students at Concern Basic education APEAL project (advancement of primary education and adult literacy) in Teacane primary school, Nampula, Mozambique, supported by DEPFA bank. Photographer: Dara Mac Dónaill, Irish Times.

We also seek to address the root causes of poverty through our advocacy and development education work. Each of these types of work is described separately in the following pages.

A child dancing at the Concern district development project in Mavile Village, Ribawe district, Mozambique, supported by DEPFA bank. Photographer: Dara Mac D贸naill, Irish Times.

Health Supporting lives

In 2007 Concern implemented projects and programmes in the health sector in 17 countries. The objective of the health programme is to contribute to the achievement of health and nutrition security of the poor within the context of the health related Millennium Development Goals - reducing child mortality, improving maternal health, combating HIV and AIDs, malaria and other diseases and ensuring environmental sustainability.

The table below details the range of activities conducted in 2007: Sub Programme

Activities

Nutrition

Community Therapeutic Care (supplementary feeding activities), growth monitoring, targeted demonstrative therapeutic feeding, micronutrients supplementation, de-worming, referrals, nutrition education, economic opportunity enhancement, development of community/district level nutrition management committees

Mother Child Health

Provision of equipment, training of traditional birth attendants

Water Supply and Sanitation

Construction of water delivery systems, drainage, wells, solid waste management, construction of latrines, health and hygiene awareness raising and training, vector control

Outcomes

In our view the main achievements of our health programmes during 2007 were as follows: » We expanded the Community Therapeutic Care/Community Management of Acute Malnutrition (CTC/CMAM) programmes as planned (in Malawi and Ethiopia), and integrated emergency CTC/ CMAM programmes into existing government health systems. New CTC/CMAM programmes were developed in Timor Leste, Haiti, North Sudan, Burundi and Bangladesh, and a new Mother and Child Care programme is planned in Niger. » The Child Survival Programme (CSP) was expanded in Rwanda from one to six districts. We also documented lessons learnt in the programme (which now operates in 5 countries), in partnership with country offices and local partners.

» In the Democratic People’s Republic of Korea and Nepal we expanded the water supply and sanitation programmes.

The studies/evaluations also indicated some areas that could be improved, the main ones being the need:

» We consolidated and expanded current partnerships in the health sector. With Valid International, we are identifying further research objectives. We expanded relationships with RAISE and the Centre for Sustainable Urban Development at Columbia University, and began a new relationship with the International Food Policy Research Institute (IFPRI), in the areas of nutrition, food security, HIV and Livelihoods.

» to ensure that efforts to increase usage and demand for health care are carefully managed so that they run in close parallel with work aimed at increasing the capacity of heath services to respond to such demand.

During 2007 we conducted evaluations of eight country programmes in order to ensure that they were meeting our heath programme objectives. Overall the outcomes were very positive and showed that significant lasting impacts were being achieved.

» for high quality research and documentation to ensure the ultimate success of our health programmes. » for intensive upfront training in the initial phase of programmes and for creative ways to provide regular technical support and review/ monitoring. We will endeavour to build these insights into our programme design and ongoing programme work in 2008.

The table below details the beneficiaries reached in 2007 by sub programme: Female Mother and Child Health Nutrition Water Supply and Sanitation Total

405,325 191,110 307,818 904,253

Direct Male Total Female 347,330 752,655 134,583 325,693 282,398 590,216 764,311 1,668,564

Indirect Male

Total

556,696 456,288 1,004,976 953,372 639,010 491,162 2,200,682 1,900,822

1,012,984 1,958,348 1,130,172 4,101,504

Health Case study

Musabila Aziza is 15 years old and lives in a village in Maniema province, in the centre of the Democratic Republic of Congo (DRC). Musabila has a one-month old baby but during her pregnancy she fell ill and became malnourished. It is a common problem In DRC many mothers, children and pregnant women suffer from malnutrition, caused by a lack of protein and vitamins, or by diseases such as malaria, measles or diarrhoea. Traditionally, people suffering from malnutrition are treated in Therapeutic Feeding Centres (TFCs), where they stay for about a month. However, in Maniema province villages are very remote, making the delivery of health services very difficult. There are only a few TFCs in the area and for most people they are hard to reach, and treatment is expensive. As a result, many mothers wait for as long as possible before seeking treatment for themselves or their children, which can result in complications. There are other problems too since a month-long stay in a TFC can have serious consequences for food production. Women - who are primarily responsible for agricultural production - have to leave their fields in order to get treatment for themselves or their children, risking their harvest. So, to address these issues, Concern introduced the Community-based Theraputic Care (CTC) programme in five health zones of Maniema. The programme enables mothers to get a supply of supplementary enriched food for their children or themselves, meaning they can treat malnutrition at home.

This means they do not have to leave their fields for a long period of time and can carry on with their daily work. When Musabila went to a health centre to seek treatment for malnutrition she was referred to the Supplementary Feeding Centre in Mingana, where she was given a supply of foil-sealed high protein, vitamin enriched food to help her recover. Her husband works in a mine and only returns every three months. With the traditional treatment Musabila would have had to leave her fields untended while she sought treatment in a TFC. With the CTC approach, she will receive supplementary food and check-ups every two weeks for the next six months. She will return straight home after each check up, meaning she will be able to maintain her fields, and hopefully grow enough food to feed her family. Musabila also receives education and training from nurses at the centre when she goes for her check-ups. She receives information on how to ensure she and her child get a balanced diet, and training on good hygiene practices. She also receives information about prevention of sexually transmitted diseases, including HIV and AIDS, and the value of breast feeding. Musabila explains that this is particularly helpful as nobody has talked about these things with her before. Many young women do not talk to anyone about sex, pregnancy or breastfeeding, and so education provided by the health workers and community volunteers is extremely helpful in increasing knowledge and helping to change habits.

The programme enables mothers to get a supply of supplementary enriched food for their children or themselves. 39

Fatima SaĂŻd, aged 11, on her way to school. Fatima and her family have benefited from Concernâ&#x20AC;&#x2122;s irrigation programme. South Wollo, Ethiopia. Photographer:Caroline Irby

Basic education Helping people learn

In 2007 Concern implemented projects and programmes in the education sector in 12 countries. Concernâ&#x20AC;&#x2122;s education programme objective is to strengthen formal education provision among the poorer sections of society. We do this by addressing the obstacles that hinder access to and successful completion of formal primary education. All country programmes work with communities such as school management committees, parent teacher associations, school councils etc. to build their capacity and involvement in school management and an awareness of their right to an education.

The table below details the range of activities conducted in 2007:

Sub Programme

Activities

Primary Education (PE)

Support to community involvement in the provision of education e.g. catch up classes, formation of Parent Teacher Committees, parents as volunteer teachers/coaches. School construction, advocacy on obstacles to education for specific groups.

Non formal Education (NF)

Literacy training

Outcomes

We feel that the main achievements of the education programme during 2007 were as follows: » We started new education programmes in Angola, Malawi, and Afghanistan. » The lessons learned from education programmes from the 2005-2007 period were disseminated in a conference in October 2007. » We conducted a Global Education Workshop for Concern staff in 2007. » We successfully collaborated with partner agencies e.g. People in Need in Ethiopia and Ibis in Mozambique.

» We completed a review and analysis of educational institutions in 2007. » We completed an audit and analysis of existing education staff and competencies. During 2007 we conducted evaluations of seven country programmes in order to ensure that they were meeting our underlying objectives. Overall the outcomes were positive showing that real results were being achieved with significant lasting impacts. They also indicated a few areas that could be improved, the main ones being:

» The importance of having income generating activities running in parallel with education programmes in order to boost the attendance of vulnerable children. » The need to focus on linkages between other Concern sector programmes to better address the out of school factors of hunger, poverty and health that block children from attending school. » The importance of adequate basic infrastructure for teacher morale and productiveness. We will aim to incorporate these lessons into our work going forward.

The table below summarises the number of direct and indirect beneficiaries of our education programme during 2007: Female

Primary Education Non Formal Education Total

Direct Male Total Female

Indirect Male

Total

166,470 191,904 358,374 639,805 574,237 1,214,042 180,566 177,686 358,252 1,072,454 974,994 2,047,448 347,036 369,590 716,626 1,712,259 1,549,231 3,261,490

Education Case study

Habon Sheikh Abdirahman is a grade eight student from Mukaydumis village in the Lower Shabelle region of Somalia. Habon has just completed her schooling; she is one of an increasing number of girls in the region who have been able to access primary education through Concern Somalia’s Community Education Programme. The Community Education Programme provides basic primary education to children in Mogadishu and the Lower Shabelle region. It aims to increase the number of children and young people who are able to access primary schooling on a sustainable basis, and improve the quality of their education. The programme particularly focuses on increasing the number of girls who attend school. In the Lower Shabelle region, Concern supported over 5,000 children to access basic education in 2007. For these children from the districts of Kurtunwarey, Awdhegle, Qoryoley, Wanleweyn and Afgoye, attending school means that they are now able to read and write, and have had the opportunity to learn a variety of other subjects.

In rural areas, such as Habon’s village of Mukaydumis, girls are often expected to stay at home and look after their families, regardless of their education. But for Habon, things are a bit different. She is one of eight upper primary school pupils who have been recruited by Concern as adult education teachers. “I was lucky enough to get a part time job earning $30 per month. Tears of happiness filled my mother’s eyes when I brought my first wage home. Thanks to Allah and all who helped me study and work in my village”. The Community Education Programme is providing thousands of children in Somalia with the chance of a better future. During a community meeting the leader of Bananey village in Kurtunwarey District, Sheikh Bayadir Sheikh Abdurrahman, commented on the improvements the education programme has made in his village. “411 children of different grades now attend school in our village. One can easily recognize the contribution of the education programme towards improving the future for our children - their knowledge, conduct and thinking have improved. The provision of education saved our children from joining militia activities”.

I was lucky enough to get a part time job earning of $30 per month. Tears of happiness filled my mother’s eyes when I brought my first wage home.

Outside their home, built from eucalyptus trees and corrugated iron sheeting. Clockwise, from left: Zeneba Muhia, 29, Ahamed, 2, Fatima, 11, Saïd, 32, Mohammed, 7, Abdu, 4 and Alganesh, 6. Before Saïd’s involvement in the irrigation scheme, the family lived in a tukul – a mud hut. Photographer: Caroline Irby.

Livelihood security Giving people options

In 2007 Concern implemented projects and programmes in the livelihoods sector in 29 countries. All of our programmes are designed to meet the livelihood security programme objective to relieve the impact and/or reduce the incidence of poverty. We do this by supporting opportunities to increase livelihood options that lead to real improvements in peoplesâ&#x20AC;&#x2122; lives over the short and long term.

The table below details the range of activities conducted in 2007: Sub Programme

Activities

Natural Resource Management

Watershed management, Disaster Risk Reduction, emergency preparedness and mitigation, advocacy, CSO initiatives to increase community access and control over land, water and forest resources, livestock raising, integrated farming, crop diversification, rights awareness Improved crop production, improved livestock, horticulture and gardens, preservation and processing, forestry, fisheries, distribution of seeds, livestock and tools, construction of roads, paths, bridges, agricultural training, vocational and entrepreneurial skills training, shelter construction, agricultural systems, crop diversification. Irrigation, orchard development, terrace reclamation, food diversity exhibitions, demonstration plots Microfinance, support to micro enterprise, marketing, vocational training, enterprise development through grants and training, biogas plants, access to savings and credit, savings, small business training, market analysis Support to decentralisation, advocacy, institutional development, training, institutional support to small microfinance organisations, village level development planning, government budget allocation monitoring, support to mainstreaming gender, HIV and AIDS, DRR and Equality, accountability

Food Production and Processing

Market Interaction

Responsive Institutions

Outcomes

In our view the main achievements during 2007 were as follows: » We developed livelihoods programmes in two new countries, Kenya and Nepal. » A new innovative urban livelihoods programme on urban pavement dwellers was developed in Bangladesh and a programme on Urban Agriculture was developed in Liberia. » We initiated and organised joint Irish NGO learning and research on the role of decentralisation in poverty reduction. » The lessons from the cash transfer programme in Malawi were produced and

widely disseminated and cited. Strong links were maintained with the Institute of Development Studies (IDS) » International advocacy strategies on marginal farmers and social protection were developed and initiated. » We conducted two Global Livelihoods workshops: one on Natural Resources Management and one on Agriculture in Ethiopia and the UK respectively. During 2007 we conducted evaluations of seven country programmes in order to ensure that they were meeting our livelihood programme objectives. Overall the outcomes were very positive and indicated

that programmes were being effectively implemented. They also indicated areas that could be improved, the main ones being the need to: » adopt partnership models which are appropriate to the specific local context. » take a holistic approach i.e. look at and engage with wider dynamics not just to respond to immediate needs. » ensure that in mainstreaming equality we address strategic as well as practical needs. We will try to build these lessons into ongoing programmes.

The table below details the beneficiaries reached in 2007 by sub programme:

Direct Male

Total

Natural Resource Management 532,402 378,480 Food Production/ Processing 457,423 403,353 Market Interaction 85,694 83,260 Responsive Institutions 530,221 854,906 Total 1,605,740 1,719,999

910,882 860,776 168,954 1,385,127 3,325,739

Female

Indirect Male

Total

1,494,354 1,581,325 3,075,679 895,306 870,022 1,765,328 756,836 751,758 1,508,594 3,850,048 4,287,883 8,137,931 6,996,544 7,490,988 14,487,532

Livelihood security Case study

A simple irrigation system funded and built by Concern with the help of the Ethiopian Government, is making a huge difference to hundreds of people in the South Wollo district of Ethiopia. Saïd Mohammed and his family are amongst the people benefiting from the system that channels much needed water to the local farmland. Three years ago, Saïd Mohammed’s small farm was little more than dusty land. There was no irrigation, his harvest was often poor and he had to sell his animals in order to feed his family through the year. Now instead of a single crop of sorghum grain to last the whole year Saïd is growing rows of tomatoes, sugar cane, maize, onion, chilli and mangoes. There’s even a small herd of animals that Saïd is fattening to sell. A river runs approximately 200 metres from Saïd’s two hectare plot. This river has been partially diverted into a channel that runs above the farmland. Gullies carry water from the channel onto the plots and these are plugged or released by the farmers depending on the needs of their crops. The irrigated farmland looks like an oasis amongst the dry, rocky slopes of the surrounding countryside.

Saïd used to rely on aid to feed his family. Now he produces more than enough food and can sell the surplus at market to earn some money. “We eat more vegetables now, from our land, and we’re able to buy a sheep for meat on Muslim holidays. I save a small amount of money for emergencies; otherwise, I buy animals when I have money, to fatten and sell.” Saïd’s five children are all robust and healthy-looking. Neither Saïd nor his wife, Zeneba, went to school but they intend to educate all of their children. Zeneba, aged 29, is as industrious as her husband. As well as looking after the children, she sells produce at a nearby market that takes place each week and recently joined a women’s group where she receives agricultural training. “The intention is to make sure women are productive in the land, since we share it, and that we have power.” There are twelve major river basins and eleven lakes across Ethiopia. An estimated 3.7 million hectares could be irrigated, making an incredible impact on farming in the area. Yet so far only four percent of this land has been irrigated.

We eat more vegetables now, from our land, and we’re able to buy a sheep for meat on Muslim holidays.

Aminata Ahamed (4) eating injera (flat bread) in Derka village, South Wollo, Ethiopia. Photographer: Caroline Irby.

HIV and AIDS Programming Our part in the response

Concern implemented direct HIV and AIDS programmes in 14 countries in 2007. HIV and AIDS interventions are integrated through programmes in the Education, Livelihood and Health sectors. Our HIV and AIDS programme aims to reduce the prevalence of HIV and the impact of AIDS on Concern target populations in all of our emergency and development projects.

The table below details the range of activities conducted in 2007: Sub Programme

Activities

HIV and AIDS

Treatment, care and support; prevention, awareness and information; Lobbying, advocacy and human rights, network development, organisational building/capacity building, research and development, Voluntary Counseling and Testing training Advocacy on HIV and AIDS mainstreaming, support to national HIV and AIDS networks, awareness and information.

HIV and AIDS mainstreaming

Outcomes

In our view the main achievements during 2007 were as follows:

» 80% of partners have their own HIV and AIDS mainstreaming strategies

» We have increased programme expenditure by 25% relative to 2006

» We commenced a major research project with the International Food Policy Research Institute (IFPRI), and the Kerry Group on the links between HIV and AIDS and nutrition.

» 16 countries developed specific HIV and AIDS advocacy initiatives. » Extensive Head Office advocacy initiatives were undertaken. » 70% of the partner agencies with whom we work received advice or support on HIV and AIDS issues which has allowed them to have a greater understanding of the relationship of HIV to their organisations, programmes, and the impact of HIV on communities and individuals.

» Ensure as far as possible that medical care is supplemented by some form of income generation activities so that basic needs are met and people can stay in their homes.

During 2007 we conducted evaluations/studies of six country programmes in order to ensure that they were meeting our HIV and AIDS programme objectives. Overall these results were very favourable, indicating that results were being achieved and that we were making good progress. They also indicated areas that could be improved, the main ones being the need to:

» Engage in Community Conversations i.e. discussion groups comprised of a cross section of community members which met periodically. These have the effect of reducing stigma and of alleviating many of the social disadvantages arising from HIV and AIDS. » Ensure that monitoring and evaluation systems and documentation and evidence based research are central to programme development. We will try to use these insights to improve ongoing work.

The table below details the beneficiaries reached in 2007: Female HIV and AIDS

Direct Male Total Female

168,369 162,073

330,442

3,714,043

Indirect Male

Total

3,943,826

7,657,869

HIV and AIDS Case study

Samuel Owino Arot lives in Ngalo village in Homa Bay, along the southern shores of Lake Victoria. Homa Bay has one of the highest HIV prevalence rates in Kenya – 24% of the district’s population is HIV positive. It is also one of the poorest districts in Kenya. Mr Owino retired as a clerk with the fisheries department in September 2001 after 30 years of service. He received a small lump sum retirement payment, and with this he was able to realise his life-long dream of becoming a small-scale farmer – growing tomatoes and kale. However, in early 2002 Mr Owino became unwell, suffering a painful rash on his skin. He spent what was left of his pension seeking treatment from private clinics and traditional medicine men. But his health continued to deteriorate and he was forced to sell his animals, including his oxen which he depended on to plough his land. Mr Owino agreed to take a HIV test and was diagnosed with advanced AIDS. He started a course of life saving Anti-Retroviral Drugs and was referred to one of Concern’s local partners, Women Fighting AIDS in Kenya (WOFAK), for treatment education, counselling and support with his food needs. Good nutrition is vitally important for people living with HIV and AIDS, particularly if they are taking Anti-Retroviral drugs, so the food rations he received from WOFAK were vital for his recovery. Mr Owino received a great deal of support from his wife, who looked after him and provided for the family when he was too ill to leave his bed.

As his health improved Mr Owino was eager to return to his work on the land. As a proud farmer he had found it very difficult to rely on food hand-outs and was keen to make his household self-sufficient once more. But his illness had taken its toll on his business; it was proving particularly hard to recover from the sale of his animals. In early 2006 WOFAK began providing seeds, fertiliser, tools and farming advice to HIV positive clients to enable them to grow their own food, and retain some sense of self-reliance. Mr Owino approached WOFAK for help to rebuild his livelihood. In January 2007 he received a small loan to buy fertiliser and seeds. He also received training and advice on improved farming techniques. In the last eight months Mr Owino has experienced a complete reversal of fortunes; he has paid back the money he received from WOFAK and has applied for a new loan to purchase a hand pump. He now hires a farm hand to assist on the farm and produces enough food to share with relatives and neighbours. He enjoys a new respect from the community; he is seen as productive and successful, and can even afford the luxury of a television and a mobile phone! He is now an advocate for ‘positive living’ - encouraging members of his village to go for Voluntary Counselling and Testing (VCT) to find out their HIV status. However, his heart remains on the farm. As he stands on his land he quips, ‘I will go to the house for a cup of porridge and come back and will not leave the shamba (garden) till sunset.’

‘I will go to the house for a cup of porridge and come back and will not leave the shamba (garden) till sunset.’ 51

Emergency response and preparedness Meeting urgent needs During 2007 Concern implemented 34 projects in emergency contexts in 20 countries. The range of programme activities was broad but reflected Concernâ&#x20AC;&#x2122;s emergency programme focus on the provision of reproductive and child health, environmental health (water and sanitation), nutrition, food security, shelter and related infrastructure inputs.

In 2007, 20 countries (out of 30) responded to an emergency, or continued to implement emergency/ rehabilitation projects that had commenced prior to 2007. We (either directly or through partners) assisted over 2.9 million people with emergency interventions in 2007. Drought and floods were the most common emergency to which we responded, but conflict still plays a major role as a trigger for emergency response interventions. Outcomes

Concern undertook three emergency evaluations in 2007. The emergency responses were evaluated in terms of

their timeliness, efficiency and appropriateness. The evaluations concluded that the projects were implemented effectively despite

facing considerable challenges. Targeting was robust and beneficiary involvement was appropriate to each context.

The table below details the range of activities conducted in 2007:

Country Sector/ Programme Activity Summary

Total Direct Beneficiaries

Pakistan

Cyclone Yemyin: Rehabilitation and distribution of food and non food items

Zambia

Severe flooding: Flood awareness, cash transfer, livelihoods recovery

DPRK

Flooding: Water supply and sanitation, infrastructure rehabilitation

DRC

Global Acute Malnutrition and conflict: Livelihoods recovery, school construction, Community Therapeutic Care

Niger

Global Acute Malnutrition: Community Therapeutic Care

Tanzania

Site management/Refugee Care: Water supply and sanitation

Uganda

Civil conflict/flooding: Water supply and sanitation, livelihoods recovery

164,949

Zimbabwe

Drought/Government Land Reforms: Food distribution

176,937

Liberia

Conflict/flooding: Water supply and sanitation, emergency rehabilitation

Kenya

Drought: Community Therapeutic Care, livelihoods recovery

8,628

Sth Sudan

Conflict: Shelter, supplementary feeding, livelihoods recovery

28,764

Ethiopia

Natural Disasters: Provision of fuel, seed distribution, emergency preparedness

Nth Sudan

Conflict: Water supply and sanitation, camp coordination, livelihoods recovery, Non-Food Items (NFIs) distribution, health and nutrition

448,889

Bangladesh

Natural Disasters: NFIs distribution, food distribution

788,391

India

Natural Disasters: Food distribution, NFIs distribution, shelter and livelihoods recovery

244,636

Chad

Conflict: Site management

Haiti

Natural Disasters: Food distribution, livelihoods recovery

Somalia

Drought/conflict: Water supply and sanitation, CTC, livelihoods recovery

Mozambique

Flooding: HIV and AIDS mitigation, education, food, NFIs

29,319

Malawi

Drought: Livelihoods recovery

50,845

189,711 83,000 111,735 23,429 25,758

96,239

3,948

38,000

Total

Concern aims not only to respond to emergencies as they arise but also to work with vulnerable communities to reduce the frequency and impact of disasters. In 2007 we conducted

67,360

7,765 360,142

2,948,445

a baseline assessment to establish awareness, knowledge and application of Disaster Risk Reduction as an approach and identify examples of good practice. The aim is to incorporate risk 54

analysis in all programme design in order to reduce vulnerability in our target group by helping them better manage risk. We will aim to implement the lessons learnt in 2008.

Emergency response and preparedness

Title

Case study

Kaltoumalives Florence Djimet in aissmall a 68brick year house old in Bbale village widow and isinone southwestern of the thousands Uganda. Herpeople of houseforced has three to flee rooms, theirthat villages contain when the one conflict wooden in neighbouring bench, a little chair and Darfur spilled two mats over in and to she eastern seems to have very Chad. Shefew and other her possessions. two daughters arrived at Gassire camp for internally Florence has displaced people six children (IDPs) and in Goz is separated Beida at the from endher ofhusband. 2006. When Although he doesn’t she first arrived live far there away, was he very doesn’t little look after help available her –for hethe haspeople anotherliving wife. Florence in the camp. therefore A fewhas organisations to look after her children were providing on her services own, and but the has only half an acre ofwere interventions land infrequent to farm. and and disorganised, and as Kaltouma “My life is very explained, nobody tricky”, ever says knew Florence. what “I have was happening. to wake up early in the morning and go to look for work in the village However, once Concern – digging for other peoplestarted and for managing the began food. I leave atcamps, 6 in thethings morning and to change for the better; the flow work until 1pm. Then I go out againofin information improved and people the afternoon. I don’t always find work knew what was going on. The though. people living in the camps began to learntoexactly what NGO I have find food for each my children (non-governmental organisation) on my own, there’s no-one else todid and theyme. alsoWe gotdon’t the opportunity support have any food to represent at thethat today so I amthemselves preparing water weekly coordination meetings that my children are going to have for Concern towater run. “Iwill take dinner. Atstarted least the putmy hat off to the Concern site managers something in their stomachs until later for intervening when we mightand find being some the foodlink to between and the organisations. eat beforeusbed.

Weanow As farmer, have I have the chance a very small to plot of land, itour express means opinions I can’tand grow bring enough foodissues our and I don’t to thehave attention access of to thegood seeds. I only have humanitarian organisations one hoe and working one machete, here”. Kaltouma so when said I goshe to hoped work forthat the people forwould Concern cash, continue the children its work can’t do anything as facilitators here. in We thecan’t camp grow as she enough. I have so that believes littlethis foodlink that between I cannotthe fend for my own people living family. in the camps and the NGOs is what is needed for better I wouldservice quality like to get provision. help to get seeds, to get more farming implements and As well acting assend site managers, to fix myas house and my children Kaltouma thatthat onewill of the first to school. said It is this improve actions my life. that Concern took was to distribute much needed plastic sheeting empty before the I feel as ifand my life hadsacks no meaning, onset of the season. The plastic because I amrainy giving my children sheeting wasactually used towe’re cover homes water, when meant to and protect them from the rain and be having food. But because I can’t the sacks were withthe sand get empty any food this is all I filled can give to be used as flood barriers in case children to keep them from crying for excessive rain. aofwhile. In 2007, Concern’s programme in Goz I feel alone and abandoned in the Beida reached approximately 38,000 world. No-one cares about my IDPs like Kaltouma in four camps. problems, apart from a few people in the village.”

We now have the chance to express our opinions and bring our issues to the attention of the humanitarian organisations working here.

Advocacy Ensuring the poor are heard

Advocacy

» Community Therapeutic Care/Community Management of Acute Malnutrition (CTC/CMAM), Nutrition and Health: Concern, in partnership with Valid International, played a major role in developing and advocating for CTC/CMAM. Research showed this approach improved coverage significantly in emergency situations. As a result, the United Nations endorsed a new policy for community management of acute malnutrition in May 2007. Concern programme experience is being used to influence national policies and strategies in Ethiopia, DR Congo, Kenya, Malawi, Niger, Sudan, Timor Leste, Nepal, Haiti, Bangladesh and Rwanda.

In 2007 Concern further developed its advocacy focus on Hunger and Emergencies and continued its ongoing work on MDGs and aid effectiveness. Hunger In 2007, we established the End Hunger Advocacy Strategy and streamlined our advocacy efforts under four themes: » Support for Marginal Farmers: Concern UK has been leading the ‘Unheard Voices’ campaign to highlight the neglect of marginal farmers in donor government policy. The UK government pledged to consider the facts presented in a forthcoming review in its Agriculture Strategy. Concern coordinated a submission from the Africa Small Farms Group – a UK NGO coalition – to the development Minister on this issue.

Led by the Chief Executive, Concern also engaged in macro-level hunger initiatives designed to promote hunger alleviation in international fora. In April 2007, Irish Aid invited the Chief Executive to join the Hunger Task Force (HTF). This panel of international experts and development advocates was established to guide the allocation of Irish overseas aid and to help make Ireland a leading advocate for hunger elimination on the world stage.

» Social Protection: Social Protection is a key strategic focus for Concern. While cash transfer schemes do not equate to social protection, Concern’s innovative and successful use of such schemes in Malawi provides useful learning on this possible mechanism for social protection. Concern is a member of a UK-based NGO coalition establishing a support fund for African civil society seeking to advance social protection.

At European level the Chief Executive chairs Concord’s European Food Security Group (EFSG) which works directly with the key strategic actors dealing with food security issues on the European stage – DG Development, Europe Aid, ECHO, & the European Parliament. This ongoing work necessitates strong relationships and solid evidence from the field to influence policy change in Europe. Over the past 12 months one particularly important lobbying area for the group was the European Commission’s new strategy for promoting agriculture in Africa, called Advancing African Agriculture. The Chief Executive continues to represent Concern in the Trans Atlantic NGO Food Aid Dialogue (TAFAD) which directly lobbies officials working on the re-negotiation of food aid at

» HIV and AIDS and Food Security: Concern has developed a strategic relationship with the International Food Policy Research Institute (IFPRI). IFPRI will work with Concern to ensure that programmes are designed to capture evidence for policy recommendations. Current research is analysing the link between HIV and AIDS and food security in Uganda, Malawi, and Zambia. 56

Halfway to 2015 Advocacy on MDG Commitments

the World Trade Organisation (WTO) and the Food Aid Convention (FAC). He was also appointed to IFPRI’s 2020 Advisory Board on hunger alleviation.

Halfway to the 2015 deadline for achievement of the Millennium Development Goals (MDGs), 2007 was an important year in which to review global commitments to achieving these goals. The annual 2015-Watch report, produced with our Alliance2015 partners, reviewed four years of EU development policy and examined commitments to the goals within the EU’s new Country Strategy Programmes. It found EC financial allocations to health and education lagging far behind promises made and a worsening situation in Africa where funding gaps are greatest. The 2015-Watch series continues to provide clear analysis of Europe’s performance as the largest donor in the world, and a basis for advocacy in support of stronger donor performance. In 2008, 2015-Watch will have a special focus on EU aid effectiveness in the context of the September review of the Paris Declaration.

Concern, IFPRI and Welthungerhilfe collaborated on the second edition of the Global Hunger Index (GHI). This publication maps out progress in eliminating hunger in the developing world. It advances on previous statistical indexes of hunger by including a composite of factors which represent the complex nature of hunger more adequately than previous measures.

Emergencies Concern’s second major international advocacy theme will be further developed as a strategy in early 2008. Work on humanitarian reform is channeled in part through the Chief Executive’s membership of the UN’s Central Emergency Response Fund and the participation of the Head of Overseas and the Head of Emergencies in European networks such as Voice and international networks such as ICVA and Interaction. Voice was the focal point for feedback into the European Union’s Humanitarian Reform process. Lobbying ensured the EU consensus has a strong basis in International Humanitarian Law and the need for a multitude of humanitarian actors.

2007 also marked the 50th anniversary of the European Union and saw much debate about Europe’s vision and values. Concern’s submission to the Forum on Europe set out our vision of Europe as a zone of decency which can and should be a leader in the achievement of the MDGs and the elimination of world hunger. Europe’s treaties which are rooted in shared positive values must translate into principled action both within and far beyond the European Union.

Romy & Pearse Clyne & Isabel Davidson all saying no to the temptation of sweets by the devil herself at the launch of the Concern Fast 2007. Photographer: Robbie Reynolds.

Tom Arnold, Chief Executive, Concern, Hugh Friel, Chief Executive, Kerry Group and Dr Joachim von Braun, Director General, IFPRI; at the launch of a new international research initiative to develop innovative policies and solutions to ease hunger and malnutrition which currently afflicts 900 million people globally. Photographer: Liam Burke Press 22.

From left: Sarah Hourigan, Loreto School, Clonmel; Alan Kavanagh, St Mark’s Community School, Tallaght; Roisín Keane, Loreto School, Clonmel; Richard Whelan, St Mark’s Tallaght; Raissa Perez, Dominican College, Sion Hill; Elaine Mooney, Sion Hill; Matthew O’Callaghan, Presentation College Bray; Micheál Kitt, Minister of State with responsibility for Overseas Aid; Gavin Walsh, Presentation College, Bray; Orlaith Power Loreto School, Swords; David Doyle, Oatlands College, Stillorgan; Ciara Keogh, Loreto School, Swords; Shane Lauritsh, Oatlands College. Photographer: Maxwells.

2007 Debate champions, Francis Dowling, Maura O’Connor, Nollaig O’Scannláin and Caoimhe Kenny from Athlone Community College. Photographer: Steve Ryan.

Ian Dempsey from Today FM congratulates Mary-Anne Fogarty, Nandi Ggibithole and Adie Bourke from Presentation Secondary School Thurles, for their fundraising efforts during the Concern Fast. Photographer: Robbie Reynolds.

Munster Rugby Coach Jim Williams, with is wife Megan and sons Ciarán and Ryan at the Building Unity Through Diversity Exhibition in Fitzgerald Park Cork. Photographer: Brian Keane, Digipix.

Primary school pupils parade on June 12th, World Day against Child Labour in Dublin City as part of Concern’s Stop Child Labour campaign. Photographer: Steve Ryan.

Development education and events

Development Education

from six schools across Ireland to the Irish Permanent Mission to the UN as well as a meeting at the UN itself with the Chef de Cabinet of the President of the General Assembly. Prior to leaving for the UN the group held meetings with Minister Micheál Kitt, TD, Minister of State at the Department of Foreign Affairs with special responsibility for Overseas Aid, Enda Kenny TD Leader of the opposition and Fine Gael Foreign Affairs spokesperson Billy Timmins, TD. (A full report on the visit is available on www.developmenteducation.ie).

Concern’s development education programme is comprised of 4 key elements; engagement with the formal education sector, public engagement, campaigning and technical and financial support to partner groups. Our focus in each of these areas is the concept of Active Citizenship which encapsulates many of the messages of Development Education while promoting the notion of global interdependence, personal responsibility and positive action for change.

Our support to 12 partner organisations here in Ireland provided resources for the renovation of the Wood of Life Exhibition, as well as the highly acclaimed www.developmenteducation.ie website, and ongoing engagement with third level students through student societies and development education courses.

During the year our Concern Debates programme engaged over 160 secondary schools in research and debate on global issues. In July, our National Champions, Athlone Community College visited Concern’s programme work in Haiti. Prior to the start of the new school year we hired an Education Training Officer to work with schools in preparation for the Debates as well as delivering workshops to both teachers (pre-service and inservice training) and students on a variety of global issues. Over 100 schools were visited as part of our schools outreach programme and we continued to pilot the Concern Know Your World Quiz with teams from across the country.

Events Concern’s ‘African Village’ made its annual visit to the National Ploughing Championships in Tullamore, Co. Offaly. The exhibition in one of the huts focussed on the effects of climate change in Kenya and Bangladesh. Children enjoyed using their creative talents to make kites as part of our Stop Child Labour campaign. Musical entertainment was provided by Motema a Congolese band and Oleku from Nigeria.

Our campaign work, particularly in the areas of Child Labour and Education for All as well as in the Stop Climate Chaos network, saw us calling for positive action across different sectors of Irish society in cooperation with colleagues from other NGO’s and Trade Union groups.

The Building Unity through Diversity project completed its second year. The outdoor exhibition of images from Uwe Ommer’s ‘1000 Families – a family album of planet earth’ took place in Fitzgerald Park, Cork. There were a number of seminars and workshops which explored this topic and Malaysian poet and human rights lawyer Cecil Rajendra was the main speaker at a poetry evening.

The International Day against Child Labour was marked by the launch of the Irish Task Force against Child Labour, a coalition of 12 groups dedicated to ending child labour through public awareness and international lobby.

The vision of the project which is funded by the EU and Irish Aid, is about challenging and changing the way ‘development’ is understood and communicated, creating space to allow people to think about and discuss issues of diversity and development against a positive backdrop. Visit www.buildingunity.eu to find out more about this project or watch live footage and feedback from participants.

A key area of our Development Education work promotes the Internationally agreed Millennium Development Goals, particularly in relation to Concern’s four programme areas; Education, Health, Livelihoods and HIV and AIDS. One of the high points of the year was a lobby group visit by twelve students 59

Policy development and programme technical support Nineteen policies including programming, approaches and Human Resource (HR) issues have been approved since 2003. During 2007 Concern has adopted a Policy on Relationships with other Institutions (Partnerships), an Extreme Poverty and HIV and AIDS policy and developed an Equality Implementation Strategy. It has also formed the Programme Quality group to build improved quality in programming and developed the Extreme Poverty Analytical Framework to ensure integration of all mainstreamed approaches.

Work methodologies and approaches

Roll out of all policies is taking place across the organisation through various mechanisms such as programme workshops, thematic workshops, advisor and management in-country support and cross country learning visits. In an organisation the size of Concern, it will take time for all countries to adopt and implement policies. This process will be continuously monitored.

All of these are expected to be widely disseminated in 2008.

Programme tools and guidelines During 2007 Concern worked on four major programme tools and guidelines. These are as follows: » The Organisational Planning, Monitoring and Evaluation Framework » The Project Cycle Management Process, » Human Resource Planning Tool » An Extreme Poverty Analytical Framework,

Regional meetings took place for all regions and along with management issues, the programme frameworks, cross cutting themes and approaches were presented and discussed at management level.

Working with partners In 2007, Concern has continued its move to a more partner-centred approach from a traditionally operational one. At the end of 2007, Concern was working with over 500 Civil Society partners in our countries of operation. This remains an incremental shift but is progressing apace. There has also been a slow but perceptible shift to conceptualising our support to partners within the parameters of a programme approach and to ensure that our partnerships are bound together by some common theme or focus area, while our partners retain their independence and ability to design and manage programmes which are appropriate to their local contexts.

Accountability Concern takes accountability seriously and during 2007 it developed an accountability framework. This is seen as the first step in a process in fulfilling the Humanitarian Accountability Partnership (HAP), international standard. Following a series of meetings during 2007 Concern began preparations for the HAP baseline survey in early 2008 as the first step in certification. Certification will allow Concern to demonstrate our achievements in accountability and the centrality of our beneficiaries in all our humanitarian work. Rights Based Approach (RBA) Concern adopted human rights as an organisational approach in its strategic plan. While we do not yet feel that we use a standard rights based approach, we have made progress in the practical application of the RBA principles. This work is ongoing.

Partnerships may involve Concern staff in joint operations, supporting and monitoring work, or funding local partners to deliver services. Grants paid to partner organisations contribute directly to our programmes by helping local organisations provide sustainable benefits for communities and are therefore considered part of furthering our own objectives. Concern monitors the usage of all grants in order to ensure that they are achieving their desired objectives. Ongoing and deepening relationships with government are presenting Concern with a number of opportunities for impacting on national policy. In many countries, Concern is moving slowly â&#x20AC;&#x153;upstreamâ&#x20AC;? to be more strategic in its engagements with government.

Fundraising

Activities to raise voluntary income

This ongoing support helps us to work sustainably in all of our projects, safe in the knowledge that there is a dependable source of funding available. We are tremendously grateful to everyone who has committed to support us in this way.

As always Concern Worldwide supporters provided the bedrock of support which makes our work possible. Each context we work in is unique and every community we work with has different and creative ideas about how to improve their particular situation. Because almost half of our income comes in the form of private donations, we have the flexibility and independence to respond to real needs identified by the people we work with, and work with them to develop creative and innovative solutions. In 2007, we raised €55.6 million across the UK and Ireland. We spent €13.2 million to raise this money, a cost ratio of 24%.

In 2007, 120 people left legacies of €2.9 million to Concern. With these funds we promise to fulfil the wishes of these bequests, as we work towards a world where no one is hungry. Special appeals were also funded by our generous donors, this was particularly true of our campaigns for Darfur and Somalia. The Concern tax campaign which is becoming an increasingly important source of income raised €3.6 million in Ireland and £1.5 million in the UK in 2007. Almost 11,000 people from Ireland and the UK bought Christmas gifts for their friends and family from our Positive Presents gift catalogue. Presents from pineapples to pumps contributed over €1 million towards our five global programmes; education, livelihoods, HIV and AIDS, health and emergencies. Further appeals during 2007 also raised money for projects in Rwanda, Malawi, Tanzania, Nepal and emergency funds for the floods in South Asia.

Last year, almost 10,000 new committed givers joined Concern. Concern’s existing committed supporters are responsible for one of the largest portions of income raised in 2007. Last year over 171,300 of our supporters in Ireland and the UK donated €23.8 million through their regular gifts every month. These people have also been contributing more money than ever before individually and becoming increasingly generous.

In 2007, Concern continued to work with a new generation of philanthropists who have been generously supporting a wide number of projects in a private capacity. Concern is extremely grateful for their continuing support. Corporate support was also very generous. Depfa Bank supported a number of livelihoods programmes in Rwanda, Mozambique, Cambodia, Sierra Leone and Liberia. Many companies and their staff provided support through payroll giving. ESB and its staff funded a variety of projects through their ‘ElectricAid’ programme including an education programme in Ethiopia and a water project in Laos. The Bank of Ireland staff also funded a variety of programmes, including health in Afghanistan and nutrition in Niger.

2007 also saw supporters across Ireland taking part in a range of activities such as sponsored swims, soccer marathons, plant shows and book sales. People all over the country, including primary and secondary schools took part in The Concern FAST, raising over €1.15 million in total. Our dedicated collectors continued their efforts despite some very bad weather. Concern also received many donations in lieu of wedding and birthday gifts. Some of our more intrepid supporters took part in abseils, skydives, dog-sledding and treks to Peru, China and the Himalayas all while raising vital funds. Once again, we are humbled by the generosity of our many supporters. At the heart of all Concern’s work is the belief that every person is vital to making a better world. Our greatest resource is peoples potential to bring about change and their commitment to do so. Both within the communities we work in, and in the countries which support that work. For forty years, people from all walks of life have valued and supported our work, and we honour the trust that is placed in us. Together we can help people who find themselves in less fortunate situations make their lives better.

E-fundraising and the web continue to a valuable resource for fundraising. In 2007 we established our first ‘My Concern’ web-site where participants in events like the Concern FAST can set up their own donations site where their families and friends can sponsor them. This proved to be very successful. Our trekkers and challenge participants networked through Facebook, sharing tips and ideas both for getting up those mountains and raising money. And we continued to develop our financial processes to make best use of new technologies and minimise the administrative costs of processing donations. Overall our income through the web increased by 20% from 2006, bringing in €1.7 million. Most importantly our website can bring donors ongoing news about the projects they support and the people we work with.

Review of financial outcome

Income

2006. This was mainly because there were a number of ongoing large emergencies in 2006 which elicited a significant response from the public while no new emergencies occurred on a similar scale in 2007. The fall is most apparent in income derived from Public Appeals and income from the Disasters Emergency Committee. Both of these sources are strongly influenced by the level of emergency activities.

The organisation’s total income in 2007 amounted to €116.4 million. While this was 4% lower than in 2006 it is considered a satisfactory achievement for a year in which there were no emergencies that attracted significant media or public attention. Total income came from three main sources; monetary grants from governments and institutional donors; donations of commodities for distribution; and, monetary donations from the public.

Receipts from the other categories of donation income were broadly satisfactory. We were particularly happy with the growth in income from corporates and major donors and with the fact that regular (or committed) giving now constitutes a significant portion of total income.

Grants Concern received a total of €56 million in grants from governments and institutional donors in 2007 – see note 1 to the financial statements for details. This represents an increase of 18% on 2006 and is the highest achieved to date by the organisation. The main increases were in income from the EU and from the Irish Government. This reflects a deliberate strategy to target available EU funding and the Irish Government’s ongoing commitment to both expand its overseas aid programme and to channel a significant portion of the programme through non-governmental organisations.

Expenditure Our total expenditure for the year was €125.8 million, made up as follows: €’m % Charitable expenditure 111.7 89% Fundraising (including trading) 13.4 10.5% Governance 0.7 0.5% 125.8 100%

Donated commodities Commodities donated to the organisation and distributed as part of its relief programmes were valued at €3.8 million in 2007, a substantial decrease from 2006. The main reason for the decrease was that the food distribution programmes in Zimbabwe (where the organisation distributed foodstuffs provided by the World Food Programme) were of shorter duration in 2007 than in the previous year.

Total expenditure on charitable activities in 2007 was €111.7 million, compared to the record spend of €113.5 million in 2006. The 2007 spend was considered very satisfactory and reflects significant increases in the scale of our development work which largely offset the fall off in spend on emergency response. Details of the work carried out are set out in previous sections of this report. The cost of generating voluntary income for 2007 totalled €13.4 million, a 4% drop from the 2006 level. Most of the decrease is attributable to a fall off in emergency fundraising campaigns.

Public donations Income from public donations in Ireland and UK reached €55.6 million – see note 1 to the financial statements. This total represented a fall of 13% on

and overall support expenditure is expected to remain at current levels.

Governance costs for 2007 amounted to €0.7 million (2006:€0.7m), or 0.5% of total expenditure. The increase of €87,000 relative to 2006 was largely due to the ongoing development of the internal audit and risk management function.

» Unrestricted reserves/Total income indicates the resources on which the group can draw in order to continue its work in the event of a downturn in income. We deliberately reduced this ratio during 2007, the year-end figure is however considered adequate and in accordance with our reserves policy. We would hope to broadly maintain this ratio going forward.

The total costs set out above of charitable activities, fundraising and governance include attributable support costs. Our total support costs for the year amounted to €11 million (see note 6 to the financial statements). In order to ensure successful results from our work, a high level of support services is required. The quality of support in turn depends heavily on highly trained, qualified and experienced staff. Our support services aim to maximise efficiencies whilst at the same time maintaining and improving quality standards.

Based on the above indicators we feel that financial performance was satisfactory for the year.

Reserves and financial position It is Concern’s policy to retain only sufficient reserves to safeguard the continuity of its overseas operations, thereby committing the maximum possible resources to its current programmes.

Key financial performance indicators There are a number of key financial performance indicators which, taken together, are used by management and Council as a measure of performance and financial strength. These are set out below: Indicator Return on fundraising spend Government and institutional income/charitable expenditure Support costs/total costs Unrestricted reserves/ total income

2007

2006

4.2

4.7

50%

42%

8.7%

7.5%

18%

21%

The total reserves of €28.9 million at 31 December 2007 are detailed in note 19 to the financial statements and fall into two categories: » Restricted funds (€7.6 million); these funds are tied to particular purposes, which arise because of restrictions on their use imposed by the donor at time of receipt or because the funds were collected in a public appeal to raise money for a particular purpose. It is the organisation’s policy to fully apply such funds for the purposes for which they were donated as quickly as possible. We expect that virtually all of the restricted funds held at the balance sheet date will be fully utilised in 2008.

» Return on fundraising spend essentially measures how much we get back for each Euro spent on fundraising. For 2007 the return was €4.2, this is considered satisfactory (the fall relative to 2006 being mainly due to a reduction in emergency income from the Disasters Emergency Committee (DEC)).

» Unrestricted funds these are of two types: » Designated funds (€21m); these are unrestricted funds which have been allocated by the Council for specific purposes and which are as a result not available for general usage. At the end of 2007 funds had been designated for three specific purposes as follows;

» Government and institutional income/Charitable expenditure indicates the proportion of our core work which we can get funded without reliance on public appeals. The 50% recorded in 2007 was considered a very good performance relative to prior years – the best yet achieved by the organisation.

o to cover the 2008 budgeted deficit. o to recognise that a portion of reserves is invested in the charity’s fixed assets and is not therefore available for other purposes.

» Support costs/Total costs illustrates how much of total expenditure is absorbed by essential but noncore activities and functions. The 8.7% achieved in 2007 is higher than 2006 because of investment in information technology and in programme technical support staff. The increase was planned

o to ensure the continuity of operations in the event of a temporary downturn in income. » General unrestricted funds (€0.04m); these represent funds which are available for the general purposes of the charity.

Council reviews the level of reserves held periodically. The last review was done in conjunction with the approval of the 2008 budget. At that time it was agreed that; the restricted reserves should be utilised as soon as reasonably possible; and, that the 2008 expenditure plans were expected to bring the unrestricted reserves to their optimum level. This conclusion is still felt to be valid, virtually all of the restricted reserves are expected to be utilised in 2008 and the organisation’s current aim is to maintain existing levels of unrestricted reserves.

As explained in note 24 to the financial statements, apart from the parent company and the above subsidiaries there are four other companies within the group. None of these four were operational in 2007, nor did they have material assets or liabilities at the balance sheet date.

Investment policy The bulk of Concern’s liquid reserves are placed in short term interest-bearing deposits, with maturity dates designed to satisfy Concern’s cash flow requirements, these deposits are placed with financial institutions authorised by Council, with investment thresholds determined by the ratings of each financial institution.

The Council believe that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason the Council continues to adopt the ‘going concern’ basis in preparing the accounts.

In addition to its deposits, the organisation has maintained a long-term investment with Irish Life Investment Managers. The investment is mainly held in an equities fund. The investment managers are required to apply ethical screening when making investment decisions; for example they may not invest in companies with significant interests in armaments, gambling, tobacco or other activities which are inconsistent with the values and objectives of the organisation. The performance of this investment has proved disappointing and the group has decided to dispose of the holding. 40% of the investment was sold in late 2007 and it is intended to dispose of the remainder as soon as the current volatility in the equity and bond markets eases.

Financial results of subsidiary companies In addition to the parent company, during 2007 there were three active subsidiary companies within the group: » Concern Worldwide (UK) which engages in fundraising, development education and advocacy work in the United Kingdom. 2007 was a successful year for this company, producing substantial net income for group activities. The year-end position of the company was satisfactory and it is expected to continue trading for the foreseeable future. » Concern Charity Trading Limited which engages in retail trading in order to generate income for overseas work and provides other support to fundraising campaigns. The company has decided to discontinue its retail operations and this decision is currently being implemented. The disposal of the one remaining retail unit is expected to take place in 2008, once that process is complete the trading company will become dormant.

Financial instruments, financial risk management policies, objectives and strategies The group finances its operations mainly from incoming resources and reserves. The financial instruments that arise from this activity comprise investments, cash and liquid resources. Other financial instruments such as debtors and creditors arise directly from normal operations. In addition, its subsidiary AMK Limited, has advanced micro loans to borrowers in rural Cambodia, and raised commercial borrowings in order to finance this lending. The group does not trade in derivatives or other financial instruments in the ordinary course of business.

» Angkor Mikroheranhvatho Kampuchea Limited, (AMK), which is incorporated in Cambodia, and is engaged in the provision of micro credit to rural communities in that country. This company is operated as part of the overseas work of the group rather than as one which aims to generate substantial revenue for the group as a whole. The results for 2007 were considered very satisfactory in that the company doubled the amount it has lent to beneficiaries and it was providing loans to over 120,000 people by the year-end. The company is expected to continue to operate for the foreseeable future.

» Foreign exchange risk. Much of the groups costs, particularly overseas costs, are denominated in US$ while most income is received in Euro and Sterling. A strengthening of the US Dollar against the Euro and Sterling could have a significant adverse effect on the group’s ability to deliver its planned programme of work. These currency risks are monitored on an ongoing basis and managed as deemed appropriate by utilising a combination of spot and forward foreign currency contracts.

The group’s policies for managing each of its main financial risks are broadly as follows: » Credit risk. Credit risk is the risk that: » The financial institutions in which liquid investments and cash at bank are held may default on the cash deposited. This is managed by the group by ensuring that cash and short term bank deposits are invested with institutions of the highest credit rating with limits on amounts held with individual banks or institutions at any one time.

» Liquidity risk. Liquidity risk is the risk that the group will be unable to meet financial commitments arising from the cash flows generated by its activities. The risk can arise from mismatches in the timing of cash flows relating to assets and liabilities. The group’s liquidity is managed by ensuring that sufficient cash and deposits are held on short notice, and by retaining sufficient reserves to cover short term fluctuations in income.

» The borrowers from AMK, our microfinance subsidiary, may default on their loan obligations. The amount of credit exposure in this regard is represented by the carrying amounts of the loan assets on the group balance sheet which is currently €1.47 million. In order to minimise the risk the group ensures that the subsidiary adheres strictly to the approved credit policy which is designed to ensure that the loan portfolio is strong and healthy and that credit risks are well diversified. » Interest rate risk. Interest rate risk exists when assets and liabilities attract interest rates set according to different bases or which are set at different times. The main campanies in the group i.e. Concern and its subsidiary Concern Worldwide (UK), have interest bearing financial assets. In general, rates on the cash and short term bank deposits that they hold are fixed for relatively short periods in order to match funding requirements while being able to benefit from opportunities due to movements in longer term rates. The only company in the group which has both interest bearing assets and liabilites is the microfinance subsidiary AMK Limited. It manages the resulting risk by setting its lending rates so that it can absorb fluctuations in its cost of funds and by maintaining sufficient reserves to cover any short term rate fluctuations.

Governance, risk management and other issues There are four committees of Council; Officers who along with the Chairman, act on behalf of Council between Council meetings (7 meetings in 2007); Finance which monitors the organisation’s financial systems and policies (7 meetings in 2007); Audit which monitors the audit and risk management systems (3 meetings in 2007); and, Monitoring and Evaluation which monitors the quality of Concern’s programme work (4 meetings in 2007). Membership of the Finance, Audit, and Monitoring and Evaluation Committees frequently includes specialists who are not members of the Council but who volunteer to use their expertise to assist the committees on an ongoing basis. A full listing of the members of each committee is included in the Legal and Administrative Information section of this report.

The Memorandum and Articles of Association signed on 29th May 1972 (and subsequently amended) represent the founding governance document of Concern. The Articles provide for a membership based organisation limited by guarantee with a governing Council elected from the membership. The Council is committed to maintaining the highest standards of corporate governance and has determined that the organisation should comply with the basic principles outlined in the “Principles of Good Governance and Code of Best Practice” (as adopted by the Irish Stock Exchange). As part of this policy an effective Council and a competent executive team head the organisation. Council members, all of whom are non-executive, are drawn from diverse backgrounds in business and the professions, and bring a broad range of experience and skills to Council deliberations. They are elected on a rotational basis for a term of three years at the Annual General Meeting. Council Members attend an induction course shortly after the Annual General Meeting to familiarise them with their statutory responsibilities, their role as Council members, the governance framework within Concern, Concern’s humanitarian work and the risk environment.

Organisational risk management and internal control The organisation has established a comprehensive risk management process in order to identify and rank all of Concern’s significant organisational risks, how these are managed and how they are reported and monitored. The Risk Manager is responsible for reviewing the risk management process and annually reporting his findings to Council. The purpose of the annual risk review is to provide confirmation that the organisation is not on an ongoing basis exposed to preventable unacceptable risks. In addition, it is to keep all relevant parties updated on any changes in the significant risks to which the organisation is exposed and the management controls that are in place to mitigate these risks.

There are clear distinctions between the roles of Council and the Executive Management Team to which day to day management is delegated. The principle that ‘management proposes’ and ‘Council decides’ and ‘management implements’ and ‘Council monitors’, forms the basis of Council and the Executive Management Team interaction. Matters such as policy, strategic planning, and budgets are prepared by the Executive Management Team for consideration and approval by Council. The members of Council cannot under the governing documents, receive remuneration for services to Concern and may only be reimbursed for incidental expenses claimed.

The major risks to which Concern is exposed have been ranked by likelihood and impact. Appropriate systems and procedures are in place to manage these risks and provide reasonable, but not absolute assurance against occurrence.

The major risks identified by the risk review are as follows:

Organisation structure and management style; In order to ensure that the organisation and management structures continue to be the most appropriate, they are kept under regular review at senior management and Council level.

High level corporate governance; The organisation needs to ensure that appropriate corporate governance structures and practices are in place, to reduce the risk of organisation failure and support the long term survival and success of Concern. Council regularly reviews the policies and structure of the organisation in order to ensure that they meet accepted good governance standards.

Working with partners; Concern has comprehensive and clear procedures in place to ensure that where the organisation works with and or through partner organisations, that the partner organisation selected are appropriate. In addition the procedures ensure that any selected partner is appropriately supported and the relationship between the two organisations is well managed.

Continuity of funding; The organisation has no guaranteed income. If Concern is to continue its work, it is entirely dependent on the goodwill of the public and on the relations it builds with governments and co-funders. In order to reduce the risk of significant fluctuations in income, the organisation aims to maintain geographically diverse sources of income, to foster public commitment to the developing world and to maintain good relations with institutional donors. It has also set aside a portion of reserves to reduce disruption in the event of a temporary fall in income.

Many of the above risks are further heightened by the difficult nature of communications, and the under-developed legal and financial infrastructure prevalent in some parts of the world where Concern operates. Council is however satisfied that systems are in place to monitor, manage, and mitigate Concernâ&#x20AC;&#x2122;s exposure to major risks.

Staff and volunteers

Effectiveness of expenditure; The organisation needs to be able to demonstrate that it is able to use resources effectively in order to achieve lasting results. Extensive systems have been put in place to monitor the quality of programme work.

Concern is dependant on a network of volunteers for many of its fundraising and development education activities. During 2008 the organisation hopes to strengthen the engagement of volunteers through new mechanisms whereby they can participate in the work and activities of the organisation.

Staff behaviour; Many of the environments in which we work are insecure and many more have cultures which differ in significant ways from our own. If the organisation is to work effectively its staff must build effective, lasting relationships with local communities.

The organisation acknowledges with gratitude the work of its staff and that of its volunteers at home and overseas, in 2007. The major achievements during the year are due to the dedication and belief of all of these people.

Staff security; Concern operates in regions where the political and social circumstances make the personal security of staff a major potential hazard. The value of human life and wellbeing makes this a priority risk issue to the organisation. In order to mitigate this risk, Concern operates comprehensive security management at multiple levels within the organisation.

Concern is an equal opportunities employer. The aim of its equal opportunities policy is to ensure that all people receive equality of opportunity regardless of gender, race, religion, disability, nationality, marital/family status or sexual orientation.

Major fraud and error; Significant errors or fraud could severely damage the organisations reputation as well as resulting in the loss of resources. The organisation has developed detailed financial management and reporting systems to mitigate this risk.

Political contributions There were no political contributions in 2007, which require disclosure under the Electoral Act, 1997.

IT security and continuity; In common with many organizations we are dependent on information which is stored electronically, the loss or damage of these systems would severely disrupt operations. The organisation has developed detailed IT policies and procedures designed to counter this risk.

Post balance sheet events There have been no events subsequent to the year end which require any adjustment to or additional disclosure in the 2007 financial statements.

Accounting records

» We will strive to attain the highest possible programme standards in each of the five organisational programmes and will specialise in aspects of each, based on evidence of what works best and has the greatest impact on poverty.

The Council members believe that they have complied with the requirements of Section 202 of the Companies Act, 1990 with regard to books of account by employing personnel with appropriate expertise and by providing adequate resources to the financial function. The books of account are maintained at the group’s registered office in 52-55 Lower Camden Street, Dublin 2.

» We will strive for greater integration and coherence between our programme work in the field and our fundraising, advocacy, communications and development education. » We will seek to use the opportunities which information and communications technology and the digital revolution provide, both in our programme work and in communicating that work to our public and to policy makers. We intend to make a strategic investment in this area.

Auditors The Auditors, KPMG, have agreed to continue in office under Section 160 of the Companies Act, 1963. A resolution proposing their reappointment will be put to the Annual General Meeting.

» We will develop an Active Citizenship programme in our donor countries to build long term support among our members, supporters and the wider public for our mission of ending extreme poverty.

Looking ahead In 2008, we will continue to implement the organisational Strategic Plan which will be the key organisational document providing direction to Concern up to 2011. This plan commits us to the following organisational objectives:

While the organisation is proud of its achievements we recognise that much remains to be done. With the help of our supporters, we will continue to work with the most vulnerable people in the world, to create real and lasting changes in their lives.

» We aim to grow the scale and quality of our programmes while remaining in the current number of countries (approx. 30). We have set a target of increasing spending on our overseas programmes by 10% per annum over the period of the plan.

On behalf of Council

» We re-confirm our commitment to focus on the five sectors adopted as core programmes in the last plan; livelihood security, primary health, primary education, emergency response and HIV and AIDS.

Jim Miley Chairperson

Statement of Council members’ responsibilities

The Council members are responsible for preparing the Council report and financial statements in accordance with applicable law and regulations. Company law requires the Council members to prepare group and parent company financial statements. Under that law the Council members have elected to prepare group and parent company financial statements in accordance with generally accepted accounting practice in Ireland, comprising applicable law and accounting standards issued by the Accounting Standards Board and promulgated by the Institute of Chartered Accountants in Ireland.

The Council members are responsible for keeping proper books of account which disclose with reasonable accuracy at any time the financial position of the parent company which enable them to ensure that the financial statements comply with the Companies Acts 1963 to 2006, They are also responsible for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities. The Council members are also responsible for preparing a Council report that complies with the Companies Acts 1963 to 2006.

The group and parent company financial statements are required by law to give a true and fair view of the state of affairs of the group and parent company and of the profit or loss of the group for that period.

The Council members are responsible for the maintenance and integrity of the corporate financial information included on the charitable group’s website. Legislation in Ireland governing the preparation and dissemination of financial statements may differ from legislation in other countries.

In preparing each of the group and parent company financial statements, the Council members are required to:

On behalf of Council

» Select suitable accounting policies and then apply them consistently; » Make judgements and estimates that are reasonable and prudent; » Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.

Jim Miley Council Member

Brendan Duffy Council Member

Aminata Ali, a Concern livestock and fuel-saving stove beneficiary, her youngest child Ilhan, aged 5, and Abdu, aged 12, at home in Abecha kebele, South Wollo, Ethiopia. Photographer: Caroline Irby

Independent Auditors’ Report to the Members of Concern Worldwide We have audited the group and parent company financial statements (“the financial statements”) of Concern Worldwide for the year ended 31 December 2007 which comprise the Consolidated Statement of Financial Activities, Consolidated and Company only Balance Sheet, the Consolidated Cash Flow Statement and the related notes. These financial statements have been prepared under the accounting policies set out therein.

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 Acts 1963 to 2006. We also report to you whether, in our opinion, proper books of account have been kept by the company and whether the information given in the Report of Council is consistent with the financial statements. In addition, we state whether we have obtained all the information and explanations necessary for the purposes of our audit, and whether the parent company financial statements are in agreement with the books of account.

This report is made solely to the company’s members, as a body, in accordance with section 193 of the Companies Act, 1990. 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.

We also report to you if, in our opinion, any information regarding Council members’ remuneration and transactions is not disclosed and, where practicable, include such information in our report. We read the Council Report and consider the implications for our report if we become aware of any apparent misstatements within it.

Basis of opinion

Respective responsibilities of council members and independent auditors

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) 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 significant estimates and judgments made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the group’s circumstances, consistently applied and adequately disclosed.

The company’s Council members are responsible for preparing the report of the Council and the financial statements in accordance with applicable law and the accounting standards issued by the Accounting Standards Board and promulgated by the Institute of Chartered Accountants in Ireland (Generally Accepted Accounting Practice in Ireland), are set out in the Statement of Council Members’ Responsibilities on page 71. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland).

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

that 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, in accordance with Generally Accepted Accounting Practice in Ireland, of the state of the group’s and parent company’s affairs as at 31 December 2007 and of the group’s deficit for the year then ended; » the financial statements have been properly prepared in accordance with the Companies Acts 1963 to 2006. We have obtained all the information and explanations which we considered necessary for the purposes of our audit. In our opinion proper books of account have been kept by the company. The company balance sheet is in agreement with the books of account. In our opinion the information given in the Council report is consistent with the financial statements.

KPMG 25 April 2008 Chartered Accountants Registered Auditors

Annual Accounts

Where our income came from

48%

Other income: €0.9m

Grants from governments/ co-funders: €56m

48%

Income from fundraising activities: €55.6m

Donations in kind: €3.8m

Total received: €116.3m 76

How your money was spent

11%

Fundraising (including trading): €13.4m

Development education: €4.6m

1% Governance: €0.7m

85% Relief & development:* €107.1m

Total spent: €125.8m 77

* includes utilisation of donated materials

Statement of Accounting Policies for the Year Ended 31 December 2007 The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the groupâ&#x20AC;&#x2122;s financial statements.

charitable activities in the year of acquisition and are not reflected in the company or consolidated balance sheet. Cash balances of branches and the microfinance subsidiary are included in the company and consolidated balance sheet.

Basis of preparation The financial statements are prepared in accordance with generally accepted accounting principles under the historical cost convention and comply with financial reporting standards of the Accounting Standards Board, as promulgated by The Institute of Chartered Accountants in Ireland.

The accounting policy on Savings & micro credit schemes, contains details on the consolidation of the micro credit related balances. Affiliated US Organisation Concern Worldwide (US) Inc. is a related, though operationally independent, company based in New York, which supports the mission of Concern Worldwide by providing financial and human resources for programmes, recruiting expatriate staff and raising awareness of Concern Worldwide and its mission. Concern Worldwide (US) Inc. is not controlled by Concern and, therefore, is not consolidated in the results of Concern.

The group has presented the statement of financial activities and the balance sheet in the format set out in â&#x20AC;&#x153;Accounting and Reporting by Charities - Statement of Recommended Practice (2005 SORP)â&#x20AC;?.

Basis of consolidation Group Companies The consolidated financial statements include the financial statements of Concern Worldwide and its subsidiaries, drawn up to 31 December each year. A full list of all subsidiaries is included in note 24.

Grants to meet operational costs of Concern Worldwide (US) Inc. are included in cost of charitable activities and costs of generating funds, and are expensed in the period when funds are transferred. Grants received from Concern Worldwide (US) Inc. to fund overseas projects are recognised in the same way as grants from other international co-funders.

Branches and microfinance subsidiary in the developing world The work of the organisation in the developing world is carried out through branches and one microfinance subsidiary located in the countries of operation. Expenditure on goods and services made on behalf of local branches or the microfinance subsidiary is expensed when the costs are incurred. Expenditure made directly by local branches or by the microfinance subsidiary is recognised by the group and included in resources expended on charitable activities when payments are made.

Incoming resources Incoming resources are recognised by inclusion in the statement of financial activities only when the group is legally entitled to the income, virtually certain of receipt and the amounts involved can be measured with sufficient reliability. Incoming resources from charitable activities (a) Grants from governments and other co-funders

The full cost of vehicles, equipment and other assets, incurred by branches and the microfinance subsidiary is included in resources expended on

Grants from governments and institutional donors, are recognised as income when the activities which 78

they are intended to fund have been undertaken, the related expenditure incurred, and there is reasonable certainty of receipt.

(b) Income from trading activities Income from trading activities represents income from sales of goods and from donations arising in the retail outlets managed by the group. All trading income is recognised once the group is legally entitled to the income, virtually certain of receipt, and the amounts can be measured with sufficient reliability.

Income due to Concern from governments and institutional sources but not yet received at year end is included in debtors in the balance sheet, and funds already received but not yet utilised are shown in creditors.

Gifts donated for resale are included as income when sold.

(b) Donated commodities Donated commodities distributed, and donated services utilised by the organisation as part of programmes designed, implemented, and managed by Concern Worldwide are valued and included in incoming resources in the year in which they are distributed.

Resources expended Resources expended are analysed between costs of charitable activities, costs of generating funds and governance costs. The costs of each activity are separately accumulated and disclosed, analysed according to their major components.

Local food products and non-food donations are valued at the estimated market price in their country of origin at the time of receipt.

Support costs, which cannot be attributed directly to one activity, are allocated to activities in proportion to estimated benefits received.

Donations of food aid, which are sourced outside of the area in which they are distributed, are valued at values provided by the donor.

The costs of public campaigns, together with related salary costs, which are undertaken to meet the dual purposes of raising funds and of promoting awareness of issues in the developing world, are split between costs of generating voluntary income and costs of charitable activities on the bases considered appropriate for each type of campaign.

Donated services are included in income at valuations which are estimates of the market value of the services provided. Incoming resources from generated funds (a) Voluntary income

Costs of charitable activities: comprise costs of overseas programmes and of development education and advocacy work together with related support costs. The policy for recognising expenditure on overseas relief and development programmes is set out under Basis of Consolidation - Branches and microfinance subsidiary in the developing world above. All other charitable expenditure is recognised on an accruals basis. Grants payable to partners in furtherance of the charityâ&#x20AC;&#x2122;s objects are recognised as monetary expenditure on charitable activities when payment is made to the partner organisation.

Voluntary income, which consists of monetary donations from the public (including legacies), and from corporate and major donors, together with related tax refunds, is recognised in the period in which the organisation is entitled to the resource, receipt is virtually certain, and when the amount can be measured with sufficient reliability. In the case of monetary donations from the public this income is generally recognised when the donations are received; with legacies it is when we receive confirmation of unconditional entitlement to the bequest, the activities which it is intended to fund have been undertaken and the related expenditure incurred; whereas, with tax refunds it is when claims are compiled and submitted to the revenue authorities for reimbursement.

Donated commodities, distributed by the organisation as part of programmes designed, implemented, and managed by Concern Worldwide are included as costs of charitable activities in the year in which they are distributed.

Grants from corporate and major donors which are subject to significant restrictions or reporting requirements are recognised when the group is legally entitled to the income; virtually certain of receipt; the amounts can be measured with sufficient reliability; the activities which they are intended to fund have been undertaken, and the related expenditure incurred.

Costs of generating funds: comprise the costs incurred in fundraising and in retail trading activities. Fundraising costs include the costs of advertising, producing publications, printing and mailing fundraising material, staff costs in these areas and an appropriate allocation of central overhead costs. Trading costs include the costs of running our retail 79

Fund accounting

outlet. All costs of generating funds are recognised on an accruals basis.

Concern maintains various types of funds as follows:

Governance costs; represent the salaries, direct expenditure and overhead costs incurred on the strategic as opposed to day to day management of the charity, and on compliance with constitutional and statutory requirements. All governance costs are recognised on an accruals basis.

Restricted Funds Restricted funds represent grants, donations and legacies received which can only be used for particular purposes specified by the donors. Such purposes are within the overall aims of the organisation.

Savings and micro credit schemes

Unrestricted Funds Unrestricted funds consist of General Funds and Designated Funds.

Community based schemes As part of its overseas activities the group provides funds for savings and micro credit schemes either directly to individual members of local communities or via local community groups. Responsibility for managing these schemes may be retained by the group until such time as it is possible to transfer the management of the schemes to the local community.

General Funds represent amounts which are expendable at the discretion of Council in furtherance of the objectives of the charity. Such funds may be held in order to finance working capital or to finance start-up of new programmes. Designated Funds represent amounts that Concern may at its discretion set aside for specific purposes, which would otherwise form part of the general reserves of the organisation. Specifically, Concern sets aside funds so that it can protect its ongoing programme of work from unexpected variations in income, to finance fixed assets for on-going use by the charity and to cover future planned deficits.

The net cost of contributions to these schemes is included in resources expended on charitable activities. No asset relating to onward loans to community members is reflected in the group balance sheet as the proceeds from such loans are not considered recoverable from a group perspective and are expected to remain and be re-invested within the community.

Tangible fixed assets

Microfinance subsidiaries In certain limited circumstances, generally where the banking system is underdeveloped, the group may establish subsidiaries to ensure that savings and credit facilities are available to its targeted populations. Ownership and the responsibility for managing these institutions are generally retained by the group until such time as it is possible to ensure that the services can be independently provided. The group currently owns one such institution, Angkor Mikroheranhvatho Kampuchea Limited (AMK), a wholly owned subsidiary of the group which operates in Cambodia, (see Note 11).

Tangible fixed assets (except for assets of branches & the microfinance subsidiary in the developing world), are stated at cost less accumulated depreciation. Depreciation is calculated to write off the original cost of the tangible fixed assets, less estimated residual value, over their expected useful lives, at the following annual rates: Freehold premises: Office furniture: Office equipment: Computer equipment: Motor vehicles:

The costs of developing such subsidiaries are financed by contributions from the group and by external borrowings made directly to AMK by third parties.

3% 10% 20% 33% 20%

Depreciation is changed on a straight line basis from the date on which fixed assets are put into use by the group.

The net inputs by the group to these subsidiaries are included in resources expended on charitable activities. Where financing is provided by external lenders directly to the microfinance subsidiaries the full amount of the loans provided is recognised as a financial liability in the consolidated balance sheet. The financial asset which arises from the onward lending of such funds is reflected in the consolidated balance sheet as a debtor to the extent that such onward lending is expected to be recoverable by the group.

No depreciation is charged on assets under construction until construction is complete and the assets are ready for use. Provision is also made for any impairment of tangible fixed assets below their carrying amounts.

Foreign currencies

Liquid resources

The financial statements are prepared in Euro (€).

In the consolidated cash flow statement, liquid resources are the cash deposits at banks requiring more than 24 hours notice of withdrawal.

Transactions in foreign currencies are recorded in Euro at the rate ruling on the date of the transaction or at a contracted rate. Monetary assets and liabilities denominated in foreign currencies are translated into Euro at the year-end rate of exchange. The resulting gains and losses are dealt with in the consolidated statement of financial activities.

Pensions and other retirement benefits Pension contributions to defined contribution schemes are charged to the statement of financial activities as incurred.

The group’s net investment in its overseas subsidiary undertakings is translated at the rate ruling at the balance sheet date. The income and expenditure of overseas subsidiary undertakings are translated at the average exchange rate for the year. Exchange differences resulting from the retranslation of the opening balance sheets of the overseas subsidiary undertakings at closing rates, together with the differences on translation of the net income/ expenditure at average rates are dealt with through reserves and reflected in the consolidated statement of financial activities.

For defined benefit pension schemes the amount charged to the statement of financial activities is the actuarially determined cost of pension benefits which have been promised to employees that were earned during the year plus any benefit enhancements granted to members during the year. The expected return on the pension scheme’s assets during the year and the increase in the scheme’s liabilities due to the unwinding of the discount during the year are included under the appropriate expenditure heading in the statement of financial activities. Any difference between the expected return on assets and that actually achieved due to changes in assumptions or because actual experience during the year was different to that assumed, are recognised as actuarial gains and losses in the statement of financial activities.

Stocks Stocks comprise relief supplies held for transfer to overseas operations. Stocks are stated at cost, less provisions for obsolescence and any other diminution in value. Cost is the purchase price, net of any trade discount, plus any additional costs associated with bringing the items to their current location and condition.

The difference between the market value of the scheme’s assets and the actuarially assessed present value of the schemes’ liabilities calculated using the projected unit method, is disclosed as an asset/ liability in the balance sheet.

Investments

In order to reflect the unfunded liabilities for retirement benefits for overseas staff and for incapacitated staff, the actuarually determined present value of the liability is recorded in full in the balance sheet and it is increased for the cost of additional benefits earned during the year which is charged to the statement of financial activities. The unwinding of the discount is shown under the appropriate expenditure heading in the statement of financial activities. Changes to the liability as a result of changes in assumptions or because actual experience is different to that assumed are considdered to be an actuarial gain or loss and are included in the statement of financial activities.

Short term investments are stated at market value at the balance sheet date in accordance with the requirements of Accounting and Reporting by Charities - Statement of Recommended Practice (SORP 2005), any gains or losses arising on revaluation and disposals during the year are included in Other recognised gains and losses in the consolidated statement of financial activities.

Taxation No charge to current or deferred taxation arises as the group, with the exception of Concern Charity Trading Limited, has been granted exemption by the revenue authorities in Ireland and the UK. Irrecoverable value added tax arising in Ireland and the UK is expensed as incurred.

Leases Operating lease rentals are charged to the consolidated statement of financial activities on a straight line basis over the lease term.

Any taxes arising in, or as a result of overseas operations are included in the cost of direct charitable activities in the statement of financial activities.

Consolidated Statement of Financial Activities for the year ended 31 December 2007

Notes

Restricted Unrestricted

Total

Funds

2007

2006

€’000

Incoming resources Incoming resources from charitable activities - grants from governments and other cofunders

1(a)

55,983

47,469

- donated commodities

1(b)

3,778

8,876

1(c)

14,923

40,709

55,632

64,111

229

235

259

490

749

1,029

74,943

41,428

116,371

121,720

79,135

32,517

111,652

113,515

- cost of generating voluntary income

1,207

12,020

13,227

13,619

- cost of generating trading income

164

395

Governance costs

750

663

80,342

45,451

125,793

128,192

(5,399)

(4,023)

(9,422)

(6,472)

(8)

(214)

(222)

Incoming resources from generated funds - voluntary income - income from trading activities

Other incoming resources

1(d)

Total incoming resources Resources expended Charitable activities Costs of generating funds

Total resources expended Net outgoing resources before other recognised gains and losses

Other recognised gains and losses Exchange (loss)/gain on consolidation of foreign subsidiary Unrealised (loss)/gain on revaluation of investments

14(ii)

(122)

502

Actuarial (loss)/gain on defined benefit pension schemes

18(c)

(211)

1,700

(5,407)

(4,570)

(9,977)

(4,179)

Net movement in funds for the year

The notes on pages 86 to 108 form an integral part of these financial statements. On behalf of Council

Jim Miley Council Member

Brendan Duffy Council Member

Consolidated Balance Sheet at 31 December 2007

Notes

2007 €’000

2006 €’000

€’000

Fixed assets Tangible fixed assets

15,861

5,776

Current assets Stock

230

319

Debtors and prepayments

10,987

11,922

Investments

10,710

27,629

Cash at bank and in hand

7,958

8,933

29,885

48,803

(11,050)

(10,915)

Total current assets Creditors: amounts falling due within one year

Net current assets Creditors: amounts falling due after one year

18,835

37,888

(1,276)

(132)

33,420

43,532

18 (a)

(4,525)

(4,660)

28,895

38,872

Net assets excluding staff retirement liabilities Staff retirement liabilities Net assets including staff retirement liabilities Funded by: Restricted funds

7,584

12,991

Unrestricted funds

21,311

25,881

28,895

38,872

Total charity funds

The notes on pages 86 to 108 form an integral part of these financial statements. On behalf of Council

Jim Miley Council Member

Brendan Duffy Council Member

Company Balance Sheet at 31 December 2007

Notes

2007 €’000

€’000

2006 €’000

€’000

Fixed assets Tangible fixed assets

15,624

5,538

Current assets Stock

230

319

Debtors and prepayments

6,952

8,754

Investments

10,710

27,629

Cash at bank and in hand

6,357

7,090

24,249

43,792

(9,366)

(11,192)

Total current assets

Creditors: amounts falling due within one year

Net current assets

14,883

32,600

Net assets excluding staff retirement liabilities

30,507

38,138

(4,525)

(4,660)

25,982

33,478

Staff retirement liabilities

18 (a)

Net assets including staff retirement liabilities

Funded by: Restricted funds

7,584

12,173

Unrestricted funds

18,398

21,305

25,982

33,478

Total company funds

The notes on pages 86 to 108 form an integral part of these financial statements. On behalf of Council

Jim Miley Council Member

Brendan Duffy Council Member

Consolidated Cash Flow Statement for the year ended 31 December 2007

Note

Net cash outflow from operating activities

Return on investments (deposit interest received) Capital expenditure and financial investment

Net cash outflow before use of liquid resources and financing

2007

2006

€’000

(8,444)

(5,953)

778

749

(8,010)

(741)

(15,676)

(5,945)

Financing - net increase in debt

1,336

132

Management of liquid resources

13,276

5,826

(1,064)

(Decrease)/increase in cash and cash equivalents

Reconciliation of net cash flow to movement in net cash resources (including cash and liquid resources)

(Decrease)/increase in cash and cash equivalents

2007

2006

€’000

(1,064)

Cash flow from decrease in liquid resources

(13,276)

(5,826)

Change in net funds resulting from cash flows

(14,340)

(5,813)

Net cash resources at beginning of year Net cash resources at end of year

28,464

34,277

14,124

28,464

Notes forming part of the Financial Statements

1 INCOMING RESOURCES (a) Incoming resources from charitable activities grants from governments and other co-funders

Total

2007

2006

€’000

23,000

21,000

Irish Government Multi Annual Programme Scheme (MAPS) Other grants

7,203

6,170

British Government

2,987

3,610

10,252

5,593

Concern Worldwide (US) Inc.

6,232

6,480

UN Agencies

European Union

2,054

2,363

Danish Government

261

215

HIVOS

746

214

Swedish Government

364

Scottish Executive

314

Norwegian Government

125

385

Jersey Overseas Aid

488

116

1,957

1,297

55,983

47,469

Other

(b) Incoming resources from charitable activities donated commodities Donor

Commodity received

Donor origin

2007

2006

€’000

World Food Programme

Foodstuffs & freight

United Nations

2,811

6,466

UNICEF

Food & non food items

United Nations

303

1,200

Food and Agriculture Organisation

Seeds & materials

United Nations

138

340

United Nations High Commissioner for Refugees

Non-food items

United Nations

226

US Government

Non-food items

USA

191

112

Other donors

Various

251

532

3,778

8,876

Total

(c) Incoming resources from generated funds voluntary income Committed giving Legacy income Public appeals and events Corporate, major donors and trusts Disaster Emergency Committee (DEC)

2007

2006

€’000

23,825

22,218

2,928

4,254

20,770

24,367

7,698

5,267

411

8,005

55,632

64,111

Concern is a member of the Disaster Emergency Committee (DEC), which is an umbrella organisation for UK international NGO’s. It conducts advertising and public appeals for funds on behalf of its members. 86

Notes forming part of the Financial Statements

1 INCOMING RESOURCES (continued) Total

Total

2007

2006

€’000

Profit on disposal of leasehold interest

200

Profit on sale of donated shares

Profit on sale of tangible asset

748

777

749

1,029

(d) Other incoming resources

Deposit interest

2 EXPENDITURE ON CHARITABLE ACTIVITIES Expenditure on charitable activities can be analysed as shown below. Many of these programmes achieve results in more than one of these categories, but are analysed for this purpose under the principal category only. Programme

Own work Grants to partners

Distribution of donated commodities €’000 €’000

€’000

Total direct

Support (Note 6)

2007 Total

2006 Total

€’000

2,135

27,449

31,043

Health

22,138

3,176

25,314

Education

10,653

1,792

12,445

926 13,371

8,514

Livelihoods

22,057

11,096

33,153

3,363 36,516

36,655

HIV/AIDS Emergency Other Total overseas programme Development education and advocacy Total charitable expenditure

3,231

1,436

4,667

13,948

4,813

3,778

22,539

5,291

4,243

1,931 24,470

28,610

102

72,027

22,313

3,778

98,118

3,934

322

4,256

75,961

22,635

3,778

102,374

Staff Occupancy & other direct €’000 €’000

Total direct €’000

Support (Note 6) €’000

2,098

239

2,343

228

2,571

2,742

4,634

2,916

1,442

8,992

970

9,962

10,440

694

437

1,258 13,227

13,619

624 -

8,979 107,097 109,167 299

4,555

4,348

9,278 111,652 113,515

Full details of grants to partners are set out in Appendix 3.

3 COSTS OF GENERATING VOLUNTARY INCOME Campaigns €’000 Committed giving Public appeals and events Corporate, major donors and trusts

110

382

142

634

4,750

5,396

1,823

11,969

2007 Total €’000

2006 Total €’000

Notes forming part of the Financial Statements

4 GOVERNANCE COSTS

2007

2006

€’000

Staff costs

307

280

Legal & professional fees

271

262

Office & other costs

172

121

750

663

5 TRADING Concern Charity Trading Limited commenced trading in October 2000. The principal activity of the company is to raise funds from its charity shops to fund the humanitarian work of Concern Worldwide. The group has decided to discontinue its retail activities; two shops were closed in 2006 and the final one is expected to cease to be operated by the group in 2008.

6 SUPPORT COSTS Where support costs are attributable to a particular activity the costs are allocated directly to that activity. Where support costs are incurred to further more than one activity they are apportioned between the relevant activities based on the amount of staff time which each activity absorbs. The allocation of the main types of support costs is detailed below. Charitable Activities Overseas Development Cost of programmes education and generating advocacy voluntary income €’000 €’000 €’000

Governance

2007 Total

2006 Total

€’000

Overseas programme management

2,477

2,527

Overseas programme technical support

1,678

1,309 1,214

684

385

121

1,286

Organisational services and ICT

1,813

452

205

2,486

1,874

Human resources

1,191

105

1,309

1,027

Other support costs

1,136

187

316

127

1,766

1,683

Total support costs

8,979

299

1,258

466

11,002

9,634

Finance

7 OTHER INFORMATION

2007

2006

€’000

The deficit for the year is after charging/(crediting) the following items; Depreciation of tangible fixed assets Amortisation of goodwill Auditor’s remuneration (Profit)/loss on disposal of tangible fixed assets Reimbursement of expenses claimed by members of Council Payments under operating leases for premises used by the group

823

715

125

105

100

(1)

341

343

Notes forming part of the Financial Statements

8 TAXATION There is no charge to taxation in respect of the parent company and its UK subsidiary companies, as all these companies have been granted charitable exemption by the Revenue Authorities in Ireland and the UK. Concern Charity Trading Limited does not enjoy charitable exemption and is liable to corporation tax. A tax charge did not arise in this company in 2007 as the company donated its entire profits to the parent company and received relief from corporation tax for the donation. This reduced the company’s headline tax rate from 12.5% to nil. No deferred tax liability arose during 2007 (2006 - nil). During 2007 the group incurred irrecoverable VAT of €1.5m (2006 €1.41m) of which €1.24m was incurred in the Republic of Ireland and €0.26m was incurred in the UK.

9 STAFF (a) Numbers and costs The average weekly number of employees during the year in Ireland and the UK was 310 (2006:307). The aggregate payroll costs of these employees were as follows: 2007

2006

€’000

Wages and salaries

11,850

10,982

Social welfare costs

1,172

1,078

Other pension costs

1,158

900

14,180

12,960

Other pension costs include the current service cost of the defined benefit scheme, employer contributions to the defined contribution scheme (see note 18) and the cost of insurance policies that provide benefits in the event of the death or ongoing incapacity of staff members. In addition to the above the company employed a total of 3,386 staff in its overseas operations. Of these 3,182 are nationals of the countries in which they operate and 204 are international staff temporarily based in those countries. The cost of these staff members is included in the cost of charitable activities - see note 2. (b) Salary range A total of 4 employees (2006: 4), all of whom are based in Ireland and the UK, earned remuneration in excess of €95,000 p.a. as follows:

2007

2006

No. No. employees employees €95,001 to €105,000

€135,001 to €145,000

Remuneration includes salaries and benefits in kind but excludes employer pension scheme contributions. The number of employees whose remuneration was greater than €95,000 to whom retirement benefits were accruing under defined benefit schemes is 2 (2006:2). Contributions of 7.5% of salary were made by the company to defined contribution schemes for 2 (2006:2) members of staff who earned in excess of €95,000. (c) Remuneration of Council members None of the members of the Council of Concern received remuneration for their services. Expenses incurred in travelling to meetings, that were reimbursed to members amounted to €6,000 (2006 : €6,000).

Notes forming part of the Financial Statements

10 TANGIBLE FIXED ASSETS - GROUP Freehold Office furniture premises & equipment

Computer equipment

Motor vehicles

Building work in progress

Total

€’000

5,630

1,212

2,245

203

9,290

116

379

10,433

10,928 (18)

Cost At beginning of year Additions in year Disposals in year Exchange difference At end of year

(18)

(25)

(12)

(34)

(2)

(73)

5,605

1,316

2,590

183

10,433

20,127

3,514

Depreciation At beginning of year

957

758

1,654

145

Charge for year

169

113

514

823

(18)

Eliminated on disposals Exchange difference

(11)

(7)

(34)

(1)

(53)

1,115

864

2,134

153

4,266

At 31 December 2007

4,490

452

456

10,433

15,861

At 31 December 2006

4,673

454

591

5,776

Freehold Office furniture premises & equipment

Computer equipment

Motor vehicles

Building work in progress

Total

€’000

At end of year Net book value

TANGIBLE FIXED ASSETS - COMPANY

€’000

5,344

1,036

1,863

175

8,418

372

10,433

10,859

Cost At beginning of year Additions in year Disposals in year

(18)

5,344

1,090

2,235

157

10,433

19,259

At beginning of year

840

615

1,294

131

2,880

Charge for year

160

495

773

(18)

1,000

710

1,789

136

3,635

At 31 December 2007

4,344

380

446

10,433

15,624

At 31 December 2006

4,504

421

569

5,538

At end of year Depreciation

Eliminated on disposals At end of year Net book value

During 2007 the company purchased and began to renovate a building adjacent to its existing head office. Renovation work is underway and is expected to be completed during 2008. The company has capitalised the acquisition and renovation costs incurred in 2007 and will commence to charge depreciation as soon as the building is ready for occupation.

Notes forming part of the Financial Statements

11 Investment in microfinance operations conducted by AMK Limited During 2007 the company provided financing to its wholly owned subsidiary, Angkor Mikroheranhvatho Kampuchea Limited, (AMK), of €2.1million (2006: €1.8million) in exchange for ordinary share capital and for loan capital. The funds were provided solely in order to enable AMK to provide micro loans in rural Cambodia. During the year AMK used these funds, together with income generated from its own activities and borrowings from third parties in order to finance its operations. The results of AMK for the year ended 31 December 2007, stated in accordance with group accounting policies are as follows: 2007

2006

€’000

2,032

1,267

Expenditure (group inputs to loan fund and other operating expenses)

(3,576)

(3,220)

Net inputs by the group

(1,544)

(1,953)

Income (interest and fees receivable)

The net group inputs are included as part of Direct Charitable Expenditure in the consolidated statement of financial activities. The balance sheet of AMK at 31 December 2007, stated in accordance with the group accounting policies is as follows: 2007

2006

€’000

Loans financed from external borrowings

(i)

1,468

Cash at bank and in hand

(ii)

908

475

External borrowings

(iii)

(1,468)

(132)

908

343

Net assets

(i) The loans advanced by AMK are to borrowers in rural Cambodia. They are denominated in Cambodian Riels or Thai Baht and the average loan size is €60. Virtually all of the loans - which are repayable within terms of up to one year aim to provide capital to improve the livelihoods of small and marginal farmers. The loans advanced by AMK to its customers are considered recoverable by the group based on historical recovery trends. In the current year the estimated amount recoverable is €1.468 million which is included in the group Debtors and prepayments (see Note 13). The full loans outstanding of €1.468 million, plus interest earned of €0.1 million, are expected to be repaid in early 2008 and the proceeds will be available for re-lending. (ii) The AMK cash at bank and in hand is reflected in the group Cash at bank and in hand (see note 15).

Notes forming part of the Financial Statements

11 Investment in microfinance operations conducted by AMK Limited (continued) (iii) External borrowings received by AMK from third party financial institutions are reflected in the group Creditors (see notes 16 and 17). Details of the loans are as follows:

Lender

Principal amount local currency

Oikocredit

Principal amount € equivalent

Fixed Term interest rate

Repayment terms

KHR 4,056,000,000 €691,726

12.79%

Interest and principal paid bi-annually

Blue Orchard

THB 16,000,000

€362,640

12.56%

Blue Orchard

THB 15,750,000

€356,974

11.82%

Microfinance Alliance Fund

KHR 800,000,000

€136,436

11.63%

(KHR = Khmer Riels, THB = Thai Baht)

3 years from date of respective drawdown 2 years from date of respective drawdown 2 years from date of respective drawdown 3 years from date of respective drawdown

Interest paid biannually. Principal repaid in full on maturity date Interest paid biannually. Principal repaid in full on maturity date Interest and principal paid quarterly

The loans are unsecured and rank pari passu for payment from the assets of AMK. They are expected to be repaid from the cash flows arising from the onward lending of these funds by AMK in Cambodia. No other group company has given guarantees in respect of the loans and lenders have no recourse to other group assets.

The gross contractual cash flows on the external borrowings are expected to be as follows: Capital repayment

Interest payment

Total cash outflow

€’000

192 940 231 105

282 101 28 7

474 1,041 259 112

2008 2009 2010 2011

The fair value of the external borrowings is not materially different from the carrying value as the debt was drawn down late in 2007. (iv) The full investment in AMK has been written off in the company financial statements at the date of investment in accordance with the company’s accounting policy. (v) The disclosures required by FRS 29 Financial Instruments: Disclosures are set out in note 23 - Financial Risk Management.

Notes forming part of the Financial Statements

12 STOCK Stock is comprised of relief supplies held for transfer to fields. In the opinion of Council, the replacement cost of stock on hand at the year end did not differ significantly from the balance sheet figures above.

13 DEBTORS AND PREPAYMENTS Group

Company

2007

2006

2007

2006

€’000

7,951

9,330

6,367

7,027

338

283

324

272

Sundry debtors

1,218

2,267

249

1,413

AMK loans advanced (see Note 11)

1,468

10,987

11,922

6,952

8,754

Amounts due from co-funders Prepayments

Deposit interest receivable

All amounts included within debtors and prepayments fall due within one year.

14 INVESTMENTS Group

Company

2007

2006

2007

2006

€’000

Short term deposits

(i)

6,385

19,661

6,385

19,661

Equity investments

(ii)

4,321

7,964

4,321

7,964

Donated shares

(iii)

10,710

27,629

10,710

27,629

(i) Cash holdings which are not immediately required for operations are invested in short term interest bearing deposits which are maintained with reputable financial institutions in Ireland and UK. All of these deposits are held at variable interest rates. There are no material differences between the fair value of these deposits and their carrying value owing to their short term duration. At 31st December 2007 the deposits were held in Euro (€5,702,551) (2006 - €14,783,000) and US Dollars (US$1,000,000) (2006 - US$2,526,000) and Sterling (Stg nil) (2006 - Stg2,006,000). The weighted average interest rates related to these deposits were 4.81% (2006 - 3.6%) on Euro deposits and 4.20% (2006 - 5.2%) on US Dollar deposits. All short term deposits are held with financial institutions which have a credit rating of A3 or higher as per Moody’s Ratings of deposit holders. The risks arising from concentration of investments are reduced by limits on amounts held with individual banks or institutions at any one time. (ii) The groups equity investments mainly comprise a fund managed by Irish Life Investment Managers. The fund is primarily invested in equities, which are approximately 50% Euro based, with the balance being worldwide equities. All equity investments are ethically screened, and there is no fixed interest or dividend yield. Part of this investment was sold during the year resulting in a realised loss of €37,915. The market value of the remaining investment fell during the year resulting in an unrealised loss of €0.1million. This loss has been shown in the consolidated statement of financial activities thus reflecting the investment at market value, as permitted by “Accounting and Reporting by Charities - Statement of Recommended Practice (Revised 2005)” (iii) The market value of donated shares on hand at 31 December 2007 was €4,000 (2006:€4,000). (iv) Restricted funds, as defined in the accounting policies, of €7.58 million are included in the investments set out above, see note 19 (c). (v) The disclosures required by FRS 29 Financial Instruments: Disclosures are set out in note 23 - Financial Risk Management.

Notes forming part of the Financial Statements

15 CASH AT BANK AND IN HAND Group

Company

2007

2006

2007

2006

€’000

Funds held in Ireland and the UK

3,618

3,985

2,925

2,617

Funds held in countries of operation

3,432

4,473

3,432

4,473

908

475

7,958

8,933

6,357

7,090

Funds held by AMK (see Note 11)

All funds held in Ireland and the UK are held with banks that have a rating of at least A3 as per Moody’s Ratings of financial institutions. Funds held overseas are maintained in the most secure financial institutions available in fields of operation.

All of the above funds are available for immediate use by the group/company. The disclosures required by FRS 29 Financial Instruments: Disclosures are set out in note 23 Financial Risk Management.

16 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group

Company

2007

2006

2007

2006

€’000

2,668

2,781

1,668

1,627

Bank overdraft

219

130

External borrowings by AMK (see Note 11) Amounts received from co-funders

192

7,971

8,004

7,052

7,691

578

1,808

11,050

10,915

9,366

11,192

2007

2006

2007

2006

€’000

1,276

132

Trade creditors and accruals

but unspent Amount due to subsidiaries

The bank overdraft is repayable on demand.

17 CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR Group

Long term external borrowings by AMK (see Note 11)

Company

Notes forming part of the Financial Statements

18 STAFF RETIREMENT LIABILITIES The group operates a number of staff retirement benefit arrangements which are detailed in sections (a)-(g) below. (a) At the balance sheet date the liabilities in relation to staff retirement arrangements are as follows:

Group & Company 2007 2006 €’000

€’000

Deficit on defined benefit pension scheme (see (e) below)

1,350

1,139

Liability for overseas local staff service payments (see (f) below)

3,128

2,806

715

4,525

4,660

Liability for incapacitated staff (see (g) below)

(b) The movement in the liabilities during the year were as follows: Defined Overseas local Liability benefit staff service for pension payments incapacitated scheme staff €’000 €’000 €’000 Balance at beginning of year

Total 2007

Total 2006

€’000

(715)

(4,660)

(6,193)

(1,139)

(2,806)

Current service costs

(166)

(929)

(1,095)

(1,250)

Interest cost

(360)

(152)

(37)

(549)

(522)

421

449

321

(386)

152

(211)

1,700

280

607

654

1,541

1,284

(1,350)

(3,128)

(47)

(4,525)

(4,660)

Expected return on assets Net actuarial (loss)/gain Contributions and transfers for the year Balance at end of year

(c) The movement in the liabilities during the year has been reflected in the consolidated statement of financial activities as follows: Defined benefit pension scheme

Overseas Liability local staff for service incapacitated payments staff

Total 2007

Total 2006

€’000

Cost of charitable activities

(148)

474

(41)

285

177

Cost of generating voluntary income Total of amounts included in resources expended in the consolidated statement of financial activities

(27) (175)

474

(41)

(27) 258

(10) 167

Other gains and losses: Actuarial loss/(gain) on the schemes Total of amounts reflected in the consolidated statement of financial activities Market value of investments transferred into the schemes

386 211

(152) 322

(23) (64)

211 469

(1,700) (1,533)

(604)

Total increase/(decrease) in liabilities during the year

211

322

(668)

(135)

(1,533)

Notes forming part of the Financial Statements

18 STAFF RETIREMENT LIABILITIES (continued) (d) Defined contribution pension schemes The group operates a defined contribution pension scheme for qualifying members of staff. The scheme provides for pension, life assurance and permanent health benefits based on annual salaries. The contributions are paid into a separate fund, the assets of which are vested in independent trustees. The company also makes contributions to individual schemes for qualifying staff who do not join the company scheme. The defined contribution pension scheme charge for 2007 was €689,000 (2006: €534,000) of which €686,000 (2006: €528,000), related to employees in Ireland and the UK. At 31 December 2007 an accrual of €105,387 (2006:€134,000), in respect of pension costs is included in creditors, of which €87,181 (2006: €62,000) relates to the Irish company. (e) Defined benefit pension scheme The company also operates a non-contributory defined benefit pension scheme for qualifying members of staff. The scheme, which has been closed to new members since 1993, provides for pension, life assurance and permanent health benefits based on annual salaries. The contributions are paid into a separate fund, the assets of which are vested in independent trustees. Current service costs are charged to the consolidated statement of financial activities so as to spread the cost of pensions over employees’ working lives with the company. Contributions are determined by a qualified actuary on the basis of a periodic valuation. As the age profile of the active members is rising, under the projected unit method, the current service cost will increase as the members of the scheme approach retirement. As required by FRS 17 Retirement Benefits, an updated actuarial assessment of the defined benefit pension scheme using the projected unit method was carried out at 31 December 2007 by Hewitt Associates Limited for the purposes of preparing these financial statements. (i) Financial assumptions The principal financial assumptions used to calculate the retirement benefit liabilities were as follows: 2007

2006

2005

Projected unit method

Discount rate for scheme liabilities

5.50%

4.60%

4.00%

Inflation rate

2.40%

2.25%

2.00%

Salary increases

3.40%

3.25%

Rate of increase to pensions in payment

3.00%

Valuation method

The mortality assumptions allow for future improvements in longevity, the valuation uses 100% of PA92 (2027) mortality table for current employees and PA92 (2017) for retired members. (ii) Valuation The scheme assets are stated at their mid-market value at each balance sheet date. The present value of the liability to meet future pension payments is arrived at by applying a discount rate equivalent to the rate of return expected to be derived from a Class AA corporate bond.

Notes forming part of the Financial Statements

18 STAFF RETIREMENT LIABILITIES (continued) (e) Defined benefit pension scheme (continued) Using these bases the valuation was as follows: Long term Value at Long term Value at Long term Value at 31 31 31 rate of rate of rate of return December return December return December expected 2007 expected 2006 expected 2005 at 31 at 31 at 31 December December December 2007 2006 2005 €’000 €’000 €’000

Equities

7.70%

4,750

7.10%

4,818

6.60%

3,943

Bonds

4.70%

1,595

4.10%

1,496

3.60%

1,276

Property

6.70%

316

6.10%

337

5.60%

294

Cash

3.00%

2.00%

Total market value of pension scheme assets

6,721

6,651

5,516

Present value of funded pension liabilities

(8,071)

(7,790)

(8,264)

Net deficit in funded pension scheme

(1,350)

(1,139)

(2,748)

(iii) Movements in funded pension scheme net deficit

2007

2006

€’000

(1,139)

(2,748)

Current service costs

(166)

(196)

Interest cost

(360)

(337)

Pension scheme deficit at beginning of year

Expected return on assets

421

321

Net actuarial (loss)/gain

(386)

1,271

Contribution for the year

280

550

(1,350)

(1,139)

Pension scheme deficit at end of year

(iv) History of actuarial gains and losses

2007

2006

2005

2004

2003

€’000

Difference between expected and actual return on assets Expressed as a percentage of scheme assets

(527)

341

561

(160)

(7.84%)

5.13%

10.17%

0.30%

4.07%

Experience (losses)/gains on scheme liabilities

(843)

(214)

(266)

(138)

Expressed as a percentage of scheme liabilities

10.44%

(0.15%)

2.59%

4.10%

2.90%

Interest cost on scheme liabilities Expressed as a percentage of scheme liabilities

360

337

315

298

237

4.46%

4.32%

3.81%

4.58%

5.04%

Total actuarial (losses)/gains Expressed as a percentage of scheme liabilities

(386)

1,271

(796)

(791)

4.78%

(16.31%)

9.63%

12.20%

(0.45%)

Notes forming part of the Financial Statements

18 STAFF RETIREMENT LIABILITIES (continued) (f) Overseas local staff service payments In some of its overseas operations, the company has legal or constructive obligations to pay lump sum benefits to national staff on cessation of their employment. While the precise obligation varies from country to country it typically requires that the amount payable be based on terminal salary and length of service. The schemes are not externally funded i.e. assets have not been placed in separately administered trusts to meet liabilities as they arise, instead the full value of likely future payments is recognised as a liability at each balance sheet date. As benefits payable under these schemes meet the definition of retirement benefits set out in FRS 17 Retirement Benefits, the company requested its independent professional actuaries, Hewitt Associates Limited to review the methodology being utilised to determine liabilities in order to ensure that it would produce results in accordance with the standard. The actuarial assessment concluded that the methodology being used would produce calculations that materially meet the requirements of the standard, and in addition, it provided the below information in order to reflect the schemes in accordance with the requirements of FRS 17 Retirement Benefits. (i) Financial assumptions The main financial assumptions used to calculate the retirement benefit liabilities were as follows: 2007

2006

2005

Rate of general long-term increase in salaries - US$ linked liabilities

6.30%

6.20%

5.10%

Discount rate for liabilities - US$

6.30%

6.20%

5.10%

Rate of general long-term increase in salaries - € linked liabilities

5.50%

4.60%

3.50%

Discount rate for liabilities - €

5.50%

4.60%

3.50%

Rate of general long-term increase in salaries - Stg£ linked liabilities

5.90%

5.20%

4.70%

Discount rate for liabilities - Stg£

5.90%

5.20%

4.70%

Value at

(ii) Valuation Using these assumptions the unfunded liability was as follows: 31 December 31 December 31 December 2007

2006

2005

€’000

Present value of scheme liabilities

(3,128)

(2,806)

(2,459)

Unfunded scheme liability

(3,128)

(2,806)

(2,459)

(iii) Movements in unfunded scheme liabilities

Scheme liability at beginning of year Current service costs Benefits paid during the year Interest cost Actuarial gain Unfunded scheme liability at end of year

2007

2006

€’000

(2,806)

(2,459)

(929)

(1,054)

607

707

(152)

(146)

152

146

(3,128)

(2,806)

Notes forming part of the Financial Statements

18 STAFF RETIREMENT LIABILITIES (continued) (f) Overseas local staff service payments (continued) (iv) History of actuarial gains and losses

2007

Experience gains on scheme liabilities Expressed as a percentage of scheme liabilities Total actuarial gains Expressed as a percentage of scheme liabilities

2006

2005

2004

152

146

118

(4.86%)

(5.20%)

(4.80%)

(4.28%)

152

146

118

(4.86%)

(5.20%)

(4.80%)

(4.28%)

(g) Liability for incapacitated staff The group pays ongoing benefits to two ex-staff members who became incapacitated while working overseas. The group believes that it has a moral and constructive obligation to continue to make these payments for as long as they are needed and as a result, it recognised a liability for those payments. The group made investments to cover the liability to the incapacitated staff and during the year these investments were transferred into a discretionary trust for the benefit of the relevant individuals. As required by FRS 17 Retirement Benefits, an updated actuarial assessment of the liabilities to incapacitated staff was carried out using the projected unit method at 31 December 2007 by Hewitt Associates Limited for the purposes of preparing these financial statements.

(i) Financial assumptions The main financial assumptions used to calculate the liability for incapacity benefits payable were as follows: 2007

2006

Rate of increase in benefits in payment

3.00%

Inflation rate

2.40%

2.25%

Discount rate for liabilities - â&#x201A;Ź

5.50%

4.60%

Discount rate for liabilities - ÂŁ

5.90%

5.20%

In addition it has been assumed that the beneficiaries will enjoy a normal lifespan of 85 years, they are currently aged 43 and 54 years.

Notes forming part of the Financial Statements

18 STAFF RETIREMENT LIABILITIES (continued) (g) Liability for incapacitated staff (continued) (ii) Valuation The assets are stated at their mid-market value at each balance sheet date. The present value of the liability to meet future payments is arrived at by applying a discount rate equivalent to the rate of return expected to be derived from a Class AA corporate bond. Using these bases the valuation was as follows: Long term rate of return expected at 31 December 2007

Value at 31 December 2007

€’000

Long term Value at Long term Value at rate of 31 rate of 31 return December return December expected 2006 expected 2005 at 31 at 31 December December 2006 2005 €’000 €’000

Property

6.70%

480

Other Total market value of incapacitated staff arrangement assets Present value of funded pension liabilities

4.60%

124

Net deficit in incapacitated staff arrangement

604

(651)

(715)

(986)

(47)

(715)

(986)

(iii) Movements in incapacitated staff arrangement deficit

Net deficit at beginning of year Interest cost

2007

2006

€’000

(715)

(986)

(37)

(39)

Net actuarial gain

283

Expected return on assets

Contribution for the year

Cost of assets transferred during the year

625

Net deficit at end of year

(47)

(715)

(iv) History of actuarial gains and losses

Difference between expected and actual return on assets Expressed as a percentage of assets Interest cost on liabilities Expressed as a percentage of liabilities Experience gain/(loss) on liabilities Expressed as a percentage of liabilities Total actuarial gains Expressed as a percentage of liabilities 100

2007

2006

€’000

1.16%

(5.69%)

(5.44%)

(41)

(0.46%)

5.73%

283

(3.54%)

(39.58%)

Notes forming part of the Financial Statements

19 FUNDS (a) Reconciliation of funds - group Restricted Unrestricted

Total

funds

2007

2006

€’000

Total funds at beginning of year

12,991

25,881

38,872 43,051

Net outgoing resources for the year before other recognised gains and losses

(5,399)

(4,023)

(9,422) (6,472)

(8)

(214)

(222)

Unrealised (loss)/gain on revaluation of investments

(122)

502

Actuarial (loss)/gain on staff retirement schemes

(211)

1,700

7,584

21,311

Exchange (loss)/gain on consolidation of foreign subsidiary

Total funds at end of year

28,895 38,872

(b) Reconciliation of funds - company Restricted Unrestricted

Total

funds

2007

2006

€’000

Total funds at beginning of year

12,173

21,305

33,478

37,092

Net outgoing resources for the year before other recognised gains and losses

(7,163) (5,816)

(4,589)

(2,574)

Unrealised (loss)/gain on revaluation of investments

(122)

502

Actuarial (loss)/gain on staff retirement schemes

(211)

1,700

7,584

18,398

Total funds at end of year

25,982 33,478

The reserves held by the group at 31 December 2007 are made up as follows: Company Subsidiaries €’000 Restricted reserves Unrestricted reserves

101

€’000

Total €’000

7,584

18,398

2,913

21,311

25,982

2,913

28,895

Notes forming part of the Financial Statements

19 FUNDS (continued) (c) Movement in consolidated funds The movements in funds classified in accordance with the group accounting policies are as follows: Balance at 1 January 2007

Income Expenditure

Transfers

Exchange Balance at Gain/ 31 December (Loss) 2007

€’000

2,548 886 6,573 795 1,528 781 1,114 1,571 3,210 25 2,949 2,477 1,620 786 2,027 761 2,180 2,743 2,502 754 2,856 2,795 1,373 1,929 3,057 81 6,215 4,228 2,075 830 2,945 1,325 4,512 2,892 74,943

2,548 886 6,477 795 1,528 781 1,114 1,571 3,210 25 2,949 2,477 2,425 2,079 2,027 761 2,180 2,743 2,502 754 2,815 5,257 1,373 1,929 2,951 1,118 6,464 4,228 1,882 830 2,945 1,325 4,512 2,881 80,342

(8) (8)

96 -

(i)

1,131 1,913 3,602 5,059 1,037 249 12,991

326 620 3,643 2,589 106 193 11 7,584

General funds

(ii)

874

41,428

45,784

3,739

(214)

Designated funds: Planned budget deficit Tangible fixed asset fund Programme continuity fund

(iii) (iv) (v)

5,505 10,774 8,728

(2,141) (29) (1,569)

3,364 10,745 7,159

25,881

41,428

45,784

(214)

21,311

38,872

116,371

126,126

(222)

28,895

Restricted funds Afghanistan Angola Bangladesh Burundi Cambodia Cambodia microfinance (AMK) Chad DPR Korea DR Congo Eritrea Ethiopia Haiti India Indonesia Kenya Lao PDR Liberia Malawi Mozambique Nepal Niger Pakistan Rwanda Sierra Leone Somalia Sri Lanka Sudan North Sudan South Tanzania Timor Leste Uganda Zambia Zimbabwe HQ Projects Total restricted funds Unrestricted funds

Total unrestricted funds Total funds

(vi)

102

Notes forming part of the Financial Statements

19 FUNDS (continued) (c) Movement in consolidated funds (continued) The above funds carried forward at 31 December 2007 represent: (i) Income from appeals and donations that are not yet applied in the countries specified by the donor. (ii) Funds for use at the discretion of the Council to expand the activities of the charity. (iii) Funds set aside to cover the expected deficit on unrestricted funds in 2008. (iv) The net book amounts already invested in or contractually committed to tangible fixed assets for use by the charity. (v) The net amount that Council has agreed to be set aside to ensure that it can protect its ongoing programme of work from unexpected variances in income and at the same time retain an effective emergency response capacity. (vi) Analysis of group net assets between funds: Restricted Unrestricted funds funds

Total funds

€’000

€’000 15,861

Funds balances at 31 December 2007 are represented by: Tangible fixed assets

15,861

Current assets

15,555

14,330

29,885

Current liabilities

(7,971)

(3,079)

(11,050)

Creditors: amounts falling due after one year

(1,276)

Staff retirement liabilities

(4,525)

7,584

21,311

28,895

20 RECONCILIATION OF OPERATING DEFICIT TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES

Net outgoing resources Deposit interest earned Depreciation Goodwill amortisation

2007

2006

€’000

(9,422)

(6,472)

(748)

(777)

823

715

125

278

168

(Profit)/loss on disposal of tangible fixed assets

(1)

Decrease in stocks

905

(1,661)

(Decrease)/increase in creditors

(146)

1,735

Exchange (loss)/gain

(222)

144

(8,444)

(5,953)

Non cash defined benefit pension scheme charge

Decrease/(increase) in debtors

Net cash outflow from operating activities

103

Notes forming part of the Financial Statements

21 ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT 2007

2006

€’000

(10,908)

(617)

Capital expenditure and financial investment Payments to acquire tangible fixed assets Proceeds on disposal of fixed assets

Proceeds on disposal of donated shares

449

(625)

Purchase of investments Proceeds on disposal of equity investments Net cash outflow from capital expenditure and financial investment

2,897

(8,010)

(741)

(1,336)

(132)

(13,276)

(5,826)

Financing Financing - net increase in debt Management of liquid resources Decrease in short term deposits

22 MOVEMENT IN CASH, LIQUID RESOURCES AND FINANCING Opening balance

Net cash Non-cash flow flows

Foreign exchange difference 2007 2007

Closing balance

2007

€’000

2007

Cash at bank and in hand

8,933

(902)

(73)

7,958

Bank overdrafts

(130)

(103)

(219)

€’000

8,803

(1,005)

(59)

7,739

Short term deposits

19,661

(13,276)

6,385

Total cash resources

28,464

(14,281)

(59)

14,124

Financing Bank loans provided to AMK repayable within one year

(206)

(192)

Bank loans provided to AMK repayable after one year

(132)

(1,239)

(1,276)

Total financing

(132)

(1,445)

109

(1,468)

28,332

(15,726)

12,656

Total movement in liquid resources and financing

104

Notes forming part of the Financial Statements

23 FINANCIAL RISK MANAGEMENT The group has provided the disclosures required by FRS 29 Financial Instruments: Disclosures,on the following assets and liabilities: 2007 €’000

2006 €’000

1,468

(1,468)

(132)

Short term deposits (Note 14)

6,385

19,661

Equity investments (Note 14)

4,321

7,964

Cash at bank and in hand (Note 15)

7,958

8,933

AMK loans advanced (Notes 11 and 13) External borrowings by AMK (Notes 11, 16 and 17)

The group’s international operations expose it to different financial risks that include credit risk, interest rate risk, foreign exchange rate risk, and liquidity risk. The group has financial risk management policies in place which seeks to limit the impact of these risks on the performance of the group. It is the aim of the group to manage these risks is a non-speculative manner. Credit risk Credit risk arises where individuals or institutions are unable to repay amounts owed to the group. It could occur in two main forms: (i) The financial institutions in which cash deposits and cash at bank are placed may default on the amounts held. This is managed by the group by ensuring that cash and short term bank deposits are invested with institutions of the highest credit rating with limits on amounts held with individual banks or institutions at any one time. (ii) The borrowers from AMK, our microfinance subsidiary, may default on their loan obligations. The amount of credit exposure in this regard is represented by the carrying amounts of the loan assets on the group balance sheet which is currently €1.47 million. In order to minimise the risk the group ensures that the subsidiary adheres strictly to the approved credit policy which is designed to ensure that the loan portfolio is strong and healthy and that credit risks are well diversified. Interest rate risk Interest rate risk exists when assets and liabilities attract interest rates set according to different bases or which are set at different times. It impacts the group in two main ways: (i) The main companies in the group i.e. Concern and its subsidiary Concern Worldwide (UK), have interest bearing financial assets. In general, rates on the cash and short term bank deposits that they hold are fixed for relatively short periods in order to match funding requirements while being able to benefit from opportunities due to movements in longer term rates. An increase/decrease in the market interest rate of 2% is unlikely to materially impact the results of the group as they would result in a corresponding increase/decrease in the net deficit for the year of only €127,700. (ii) The only company in the group which has both interest bearing assets and liabilities is the microfinance subsidiary AMK. It manages the resulting risk by setting its lending rates so that it can absorb fluctuations in its cost of funds, and by maintaining sufficient reserves to cover short term rate fluctuations Movements in AMK’s interest margin (the difference between the interest rate paid on borrowings and that received on lendings), would not have a material impact on the group financial statements. An increase/decrease of 2% in the margin would result in a corresponding increase/decrease in the net deficit for the year of only €29,000.

105

Notes forming part of the Financial Statements

23 FINANCIAL RISK MANAGEMENT (continued) Foreign exchange risk Foreign exchange risk is the risk that a group’s operations or its investments will be affected by fluctuations in exchange rates. It impacts the group in two main ways: (i) Much of the groups costs, particularly overseas costs, are denominated in US$ while most income is received in Euro and Sterling. A strengthening of the US Dollar against the Euro and Sterling could have a significant adverse effect on the group’s ability to deliver its planned programme of work. These currency risks are monitored on an ongoing basis and managed as deemed appropriate by utilising a combination of spot and forward foreign currency contracts. There were no open forward currency contracts at year end. An increase/decrease in the Euro:US Dollar rate of 5% would result in a corresponding increase/decrease in the net deficit for the year of €1.7 million. (ii) AMK engages in microfinance operations in Cambodia. It has borrowings and lendings in Khmer Riels and Thai Baht. Currency risk is managed by matching the currencies in which borrowings and lendings are made. Because currency assets and liabilities are matched, movements in foreign currency exchange rates between the Euro, Thai Baht and Khmer Riel would not have a material impact on the group financial statements. Liquidity risk Liquidity risk is the risk that the group will be unable to meet financial commitments from cash flows generated by its activities. This risk can arise from mismatches in the timing of cash flows relating to assets and liabilities. The group’s liquidity is managed by ensuring that sufficient cash and deposits are held on short notice, and by retaining sufficient reserves to cover short term fluctuations in income. 24 SUBSIDIARIES The parent company, Concern Worldwide, directly controls four subsidiaries, as follows: a. Concern Worldwide (UK), (formerly Concern Worldwide (England & Wales)), which is registered as a company limited by guarantee and does not have a share capital. The subsidiary’s registered office is at Unit 13 & 14 Calico House, Clove Hitch Quay, Plantation Wharf, London. The subsidiary commenced to trade on 1 January 2004. It operates in Northern Ireland and Great Britain, its main activities are to fundraise for, and otherwise support, programmes of work which relieve poverty, distress and suffering in the poorest countries of the world. b. Concern Charity Trading Limited, which is registered as a company limited by guarantee and does not have a share capital. The subsidiary, which was incorporated in 2000, is registered, and operates in, the Republic of Ireland. The main activity of Concern Charity Trading Limited is to raise funds from its charity shops to fund the work of the holding company. It also supports specific fundraising activities on behalf of the parent company. c. The holding company holds 92 out of a total of 99 issued ordinary shares in Africa Concern Limited. This company is registered at Camden Street, Dublin and is dormant. d. The parent company also holds all of the issued ordinary shares in Angkor Mikroheranhvatho Kampuchea Limited, (AMK). This company is incorporated in Cambodia and has its office at number 191, Block F, Phnom Penh Centre, Tonle Bassac, Chamkarmon, Phnom Penh. It is engaged in the provision of microfinance to rural communities in Cambodia. Concern Worldwide (UK) controls three subsidiaries, as follows: a. Concern Worldwide (NI), (formerly Concern Worldwide (UK)), which has its registered office at 47 Fredrick Street, Belfast, Northern Ireland and is dormant. b. Trading for Concern Worldwide (UK) Charity Limited, which has its registered office at Unit 13 & 14 Calico House, Clove Hitch Quay, Plantation Wharf, London and is dormant. c. Children’s Aid Direct (formerly Concern Worldwide (GB)), which has registered office at Unit 13 & 14 Calico House, Clove Hitch Quay, Plantation Wharf, London. The company has been dormant since December 2003.

106

Notes forming part of the Financial Statements

25 CONCERN WORLDWIDE (US) INC. Concern Worldwide (US) Inc. is a not-for-profit organisation registered in the United States of America, and is an affiliate of Concern Worldwide. Concern Worldwide (US) Inc. is governed by an independent board of directors which retains full control over the financial and operating policies of the company. The principal activity of Concern Worldwide (US) Inc. is the raising of funds from the US government and the general public. Concern Worldwide (US) Inc. has entered into separate agreements with Concern Worldwide whereby it will provide sub-awards from these funds exclusively to Concern Worldwide for the period that the agreements remain in force. The total amount of cash grants received from Concern Worldwide (US) Inc. in 2007 was €6,232,000. These grants are accounted for in the same way as grants from all other co-funders. Concern Worldwide provides funds to Concern Worldwide (US) Inc. to contribute towards its operational costs. The total amount transferred in 2007 was €847,000 (2006:€990,000); this amount is included in the expenditure of Concern Worldwide, analysed according to the purposes for which the funds were applied.

26 COMMITMENTS, CONTINGENCIES AND GUARANTEES (i) The 2008 Annual Plan, which was approved by Council on 1 December 2007, allows for overseas expenditure in 2008 of €98,129,622. The group is also committed to assist certain overseas projects for periods in excess of one year. The group has entered agreements with partner agencies which commit it to expenditure of €7,662,000 over the next 3 years. (ii) Group commitments under operating lease agreements in respect of premises used by the group are as follows: Group Company Payable on leases in which the commitment expires within: - one year - two to five years - more than five years

€’000

310

159

341

176

(iii) Future capital expenditure approved by Council but not provided for in these financial statements is as follows:

Contracted Authorised but not contracted

2007

2006

€’000

2,997

9,000

885

644

3,882

9,644

(iv) At the year end, the group had a contingent liability for taxes introduced by the government of one of the countries of operation. The maximum liability is estimated at €0.5m, however negotiations are ongoing and the group would expect that the ultimate payment, if any, would be approximately 50% of this amount. In accordance with our accounting policy for overseas branches Basis of consolidation - Branches, the group has not made a provision in the consolidated statement of financial activities for any amounts that may ultimately become payable. (v) In one of our countries of operation, a supplier has taken an action against the organisation for the sum of €250,000. The claim, which is being contested, is currently being considered by the courts of the country in question. We do not believe that any payments will ultimately be required. As the likelihood of payments is believed to be remote we have made no provision in the consolidated statement of financial activities. (vi) Concern has entered into a loan agreement with its bankers for the sum of €8million in order to finance the purchase and renovation of a building adjacent to its existing head office. At 31 December 2007, no drawdowns on the loan had occurred. It is anticipated that the full loan, which will be secured by a fixed charge on the new building, will be drawn down in 2008.

107

Notes forming part of the Financial Statements

27 LEGAL STATUS OF COMPANY In accordance with Section 24 of the Companies Act, 1963, the company is exempt from including the word ‘limited’ in its name. The company is limited by guarantee and has no share capital. At 31 December 2007, there were 653 members (2006: 710), whose guarantee is limited to€6.35 each. This guarantee continues for one year after individual membership ceases. The company, as a charity, is exempt from the reporting and disclosure requirements of the Companies (Amendment) Act, 1986. As permitted by the Companies Acts, the company has not presented its own statement of financial activities. As indicated in note 19(b) the deficit of the company for the financial year was €7,163,000. 28 POST BALANCE SHEET EVENTS No significant events have taken place since the year end that would result in adjustment to 2007 financial information or inclusion of a note thereto. 29 RELATED PARTY DISCLOSURE The company is availing of the exemption under FRS 8 ‘Related Party Disclosures’ not to disclose details of transactions with companies within the group. 30 APPROVAL OF FINANCIAL STATEMENTS These financial statements were approved by the Council of Concern on 18 April 2008.

108

Appendix 1 Five year summary of consolidated statement of financial activities

Income Voluntary income Irish Government British Government European Union Concern Worldwide (US) Inc. Other international co-funding Income from trading activities Donated commodities Deposit interest and sundry income Total Income Expenditure Afghanistan Angola Bangladesh Burundi Cambodia Cambodia microfinance (AMK) Chad DPR Korea DR Congo Eritrea Ethiopia Haiti Honduras India Indonesia Iran Kenya Kosovo Lao PDR Liberia Malawi Mozambique Nepal Niger Pakistan Rwanda Serbia Sierra Leone Somalia Sri Lanka Sudan North Sudan South Tanzania Timor Leste Uganda Zambia Zimbabwe Other countries & projects Overseas support costs Development education and advocacy Total cost of charitable activities Cost of generating voluntary income Cost of generating trading income Governance costs Total expenditure (Deficit)/surplus for year

109

2007 €’000

2006 €’000

2005 €’000

2004 €’000

2003 €’000

55,632 30,203 2,987 10,252 6,232 6,309 229 3,778 749

64,111 27,170 3,610 5,593 6,480 4,616 235 8,876 1,029

75,800 22,343 1,913 5,204 5,580 3,370 629 5,235 835

43,789 18,598 1,293 5,586 5,960 3,941 496 11,051 420

42,215 13,690 2,266 6,732 4,113 4,961 414 23,973 464

116,371

121,720

120,909

91,134

98,828

4,022 1,692 6,457 1,430 1,861 1,544 1,358 1,855 4,396 4,268 4,990 3,013 2,012 2,494 1,653 3,683 3,360 2,876 1,042 3,227 6,015 1,485 2,750 2,512 451 6,212 5,579 2,096 1,418 3,692 2,021 4,488 2,166 8,979 4,555

4,204 1,587 3,522 1,328 1,515 1,954 660 4,276 1,992 4,770 4,609 2,734 6,234 40 2,675 978 3,431 3,076 3,298 791 4,459 6,060 1,256 2,076 1,805 3,646 4,767 5,104 1,754 1,230 3,446 1,621 7,100 3,127 8,042 4,348

3,327 1,672 3,227 1,262 1,632 1,027 1,281 1,943 2,248 3,744 3,513 2,170 3,086 89 652 622 2,555 2,136 3,469 90 3,495 6,478 1,629 2,065 1,222 8,395 4,838 4,153 2,432 809 2,853 1,104 3,916 2,483 6,363 3,429

3,083 1,808 4,663 1,204 1,421 355 1,556 2,363 2,265 4,600 2,762 25 978 578 967 723 2,716 2,139 3,032 371 1,930 1,680 1,395 1,373 4,298 3,639 2,619 514 2,596 694 9,393 (67) 6,414 1,869

3,285 3,649 3,627 1,633 1,683 261 2,495 1,950 1,663 10,765 1,355 271 2,188 366 144 760 1,714 2,938 2,927 370 1,299 1,600 136 1,061 988 288 3,156 2,425 572 1,683 902 17,116 383 5,408 1,501

111,652

113,515

95,409

75,953

82,561

13,227 164 750

13,619 395 663

13,276 537 521

12,229 486 397

12,245 382 309

125,793

128,192

109,743

89,064

95,497

(9,422)

(6,472)

11,166

2,070

3,331

Appendix 2 Multi Annual Programme Scheme (MAPS) funded by the Government of Ireland through Irish Aid

The 2007 MAPS funding was utilised as follows:

Programme

2007

2006

€’000

21,778

19,935

Organisational Development

302

225

Head office cost

920

840

23,000

21,000

Total Details of the programme expenditure are as follows:

2007

2006

Programme

Sub-Programme

€’000

Education

Primary

3,743

2,733

374

561

Reproductive and child health

1,350

1,327

Nutrition

1,067

1,483

Water and environmental health

1,789

1,167

HIV and AIDS

2,011

997

Livelihood Security

Natural Resource Management

2,858

2,700

Food Production & Processing

4,150

3,679

Market Interaction

1,107

1,568

Strengthened Institutions and Policies

3,329

3,720

21,778

19,935

Non- formal Health

Total programme expenditure

110

Appendix 3 Grants to partner agencies for charitable activities The top 50 grant recipients in 2007 are listed below. Name of partner institution

Country

No of grants

2007 €’000

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51.

Haashar Association Rural Development Project (RDP) German Agro Action (GAA) Valid International Community Initiative Facilitation & Assistance (CIFA) Sangathitta Gramunnayan Karmasuchee (Sangram) Speed Trust Water, Environment & Sanitation Society (WESS) Naria Unnayan Samity (NUSA) Chad-Ethiopia Faridpur Development Agency (FDA) Nepal Water for Health (NEWAH) Karnal Integrated Rural Development and Research Centre (KIRDARC) People in Need (PIN) Gramin Vikas Pratishhthan (GVP) Sudan Social Development Organization (SUDO) Neighbours Initiative Alliance (NIA) Wollaita Rural Development Association (WRDA) Nuba Rehabilitation and Relief Development Organisation Social Organization for Development of Abandoned Children (SODAC) Magariro HIVOS Ghoghardiha Prakhand Swarajya Vikas Sangh (GPSVS) Action Contre Faim (ACF) Parivarttan Dhaka Ahsania Mission (DAM) Grace Baptist Church Development Programme (GBCDP) Rural Education and Action for Liberation (REAL) Sewalanka Foundation (SF) Multi-purpose Community Development Project (MCDP) CARITAS Wollaita Development Association (WDA) Darbar Sahitya Sansad (DSS) Anakot Kumar Aweil Local Authority Suas Bahr El Ghazal Youth Development Agency (BYDA) Fondasyon Kole Zepòl (FONKOZE) Credit and Development Forum (CDF) Propride Youthlink Somalia Valid Nutrition Gono Kalyan Sangstha (GKS) 80:20 Educating & Acting for a better world Self Employed Worker’s Association Kendra (SEWAK-3) Regional Centre for Development Cooperation (RCDC) Guide Bani Adam Centre for Youth and Social Development (CYSD) Organisation Nigerienne des Educateurs Novateurs (ONEN) Other Partners Total Partner Grants - 2007 111

Pakistan Pakistan Indonesia/Afghanistan/Pakistan UK Kenya Bangladesh Bangladesh Pakistan Bangladesh Ethiopia Bangladesh Nepal Nepal Sri Lanka India North Sudan Kenya Ethiopia South Sudan Bangladesh Mozambique Indonesia/India India Laos India Bangladesh Ethiopia India Sri Lanka Ethiopia Tanzania/Uganda/Angola Ethiopia India Cambodia South Sudan Ireland South Sudan Haiti Bangladesh Ethiopia Somalia Ireland Bangladesh Ireland India India India Somalia India Niger

2 1,551 2 1,394 5 1,167 1 1,092 4 463 2 453 2 419 4 343 2 284 4 268 2 258 1 257 1 236 1 235 5 223 3 222 2 220 2 203 1 199 1 194 4 182 4 203 1 175 1 172 2 165 2 152 1 148 4 134 3 134 1 132 3 131 1 129 4 126 1 123 1 122 1 120 1 118 1 115 1 109 2 107 2 104 1 101 2 100 1 100 3 99 4 98 1 98 1 93 4 92 1 92 469 9,180 575 22,635

112

Concern Worldwide

Northern Ireland

Scotland

47 Frederick Street, Belfast. BT1 2LW t 00 44 28 9033 1100 f 00 44 28 9033 1111 e belfastinfo@concern.net

40 St. Enoch Square, Glasgow. G1 4DH t 00 44 141 221 3610 f 00 44 141 221 3708 e glasgowinfo@concern.net

Republic of Ireland

England and Wales

USA

52-55 Lower Camden Street, Dublin 2. t 00 353 1 417 7700 f 00 353 1 475 7362 e info@concern.net

13/14 Calico House, Clove Hitch Quay, London. SW11 3TN t 00 44 207 801 1850 f 00 44 207 223 5082 e londoninfo@concern.net

104 East 40th Street, Room 903, New York. NY 10016 t 00 1 212 5578000 f 00 1 212 5578004 e info.usa@concern.net

Concern is a member of Alliance2015.

Cover image A Gabbra pastoralist in north east Kenya. Photographer: Gideon Mendel.

Concern has signed the Dochas Code of Conduct on images and messages.

2007

Annual Report and Accounts Concern Annual Report and Accounts 2007

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