International Alert Annual Report 2012 - Financial Information

we d l i u b e nnual c a e p a rt repo 2012

Understanding conflict. Building peace.

About International Alert International Alert helps people find peaceful solutions to conflict.

We are one of the world’s leading peacebuilding organisations, with nearly 30 years of experience laying the foundations for peace.

We work with local people around the world to help them build peace. And we advise governments, organisations and companies on how to support peace.

We focus on issues which influence peace, including governance, economics, gender relations, social development, climate change, and the role of businesses and international organisations in high-risk places. www.international-alert.org

Annual Report

Introduction International Alert aims to make a difference. In villages in Rwanda, eastern DRC and Peru, among divided communities in Kyrgyzstan, the South Caucasus and Myanmar, between politicians of different allegiances in Beirut, the Philippines and Uganda, our work does just that.

Our work is about the people in those communities, villages and groups. We help them to recover in the aftermath of armed conflict, strengthen institutions to provide protection against looming violence, and bring people together to find ways of resolving their differences peacefully.

Building peace relies on the determined efforts of ordinary local people working for a more secure future, as well as commitment from governmental and nongovernmental agencies at local, national and international levels. It takes patience, perseverance and courage. And it often requires the kind of support that Alert can provide.

Alert has grown as the field of peacebuilding has grown. In 2012 our expenditure was £12.7 million, our highest ever, continuing the growth path we have been on for several years. Our staff numbers increased to 200 in 2012 – 85 in London and 115 in our 15 other offices.

This year, for the first time, Alert presents its annual report in multimedia format.

Visit www.international-alert.org/annualreport2012 to see and hear the stories of the people we work with and how our work makes a difference to them and their communities.

Dan Smith Secretary General

Pierre Schori Chair

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Highlights of our work in 2012 United Kingdom We worked with young people from diaspora communities to explore how conflict in their countries of origin or heritage affects their lives, and what actions they can take to promote peace Lebanon We supported dialogue amongst divided political party youth leaders, and we worked with community leaders to reduce the risk of spillover effects from the conflict in Syria Tunisia We worked with civil society organisations, helping to strengthen their capacity to support a peaceful transition in the country

African Union We collaborated with the African Union to promote sustainable peace in Africa

Nigeria We brought our peacebuilding expertise to stability and reconciliation programmes

Liberia We supported civil society organisations in taking a more active and prominent role in the country’s reconciliation agenda

Latin america We worked with communities, civil society, businesses and governments to mitigate the conflict risks and impacts of the extractive industry

Uganda Through extensive media work, we informed over 2 million people in areas affected by oil explorations about developments in legislation and their implications for local communities

DRC We supported women’s political and economic empowerment, by improving the leadership skills of 50 female politicians, educating 310 small-scale traders about their rights, and training 150 customs officials in order to reduce the harassment of women traders

Rwanda We brought together all sides affected by the 1994 genocide – former enemies whose lives were shattered in those 100 days of mass killings – to build trust and confidence between them Burundi We helped women to increase their influence in the country’s peacebuilding process, because they often face the biggest challenges

Annual Report

South Caucasus We analysed how the manipulation of myths and stereotypes can undermine peacebuilding efforts in the region, and trained civil society and journalists to counter these narratives

Kyrgyzstan We trained over 750 mediators who now work within their communities to prevent local disputes from escalating into violent conflict Tajikistan We conducted research on the impact of climate change on rural communities and identified how they could become more resilient to these effects

Nepal We brought together local business associations, police, government representatives and groups of citizens to collaborate on improving public security Myanmar We advised the government and local businesses on how to mitigate the impact of investments in areas highly vulnerable to conflict

Pakistan We worked with the business community to enhance its contribution to peace in the country The Gulf We provided advice to investors and donors, to guide their economic activities in the region and ensure their investments do not exacerbate or cause conflict

Philippines We contributed to the negotiations that led to the signing of a peace agreement between the government and the Moro Islamic Liberation Front

Sri Lanka We organised exchange visits for Sri Lankan politicians and diaspora members, to help them gain a greater understanding of how they can support peace and to provide opportunities for practical cooperation

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Finances Treasurer’s report Combined with innovative programme and project designs and a well-earned reputation for good work in the field and reliable, evidence-based policy advice, our efforts in recent years to strengthen relationships with institutional funders, to increase income from donations and gifts, and to strengthen restricted fundraising capacity have all resulted in continued growth in unrestricted and restricted income.

Total incoming resources for the year ended 31 December 2012 were £13 million (£13 million in 2011) and we emerged in a strong financial position at year end. Total charitable expenditure in 2012 was £12.74 million, which represents an increase of £1.15 million on 2011 (£11.59 million).

Unrestricted income in 2012 was £2.60 million (£2.59 million in 2011), comprised of £1.48 million in incoming resources from generated funds (£1.36 million of institutional grants, £111,000 in donations and gifts and £10,000 of investment income) and a further £1.12 million of incoming resources from charitable activities.

Unrestricted expenditure was £2.60 million and comprised of £2.32 million on charitable activities, £199,000 on generating funds and £77,000 on governance. The balance of unrestricted funds at year end was £1.65 million.

The balance of restricted funds at year end was £3.29 million. This is an increase of £240,000 on 2011, when the balance of restricted funds at year end was £3.05 million.

International Alert’s Reserves Policy is that general unrestricted reserves, excluding any part which represents the book value of fixed assets, should be sufficient to cover two months of unrestricted expenditure and programme employment costs.

At the current time, this aggregates £1.2 million. Unrestricted reserves are held primarily as a contingent buffer that can be used to provide a degree of stability in an uncertain economic climate or a period of adverse funding. They also enable Alert to make long-term investment in competence among staff and investment in new programmes, to fund fixed assets, to manage fluctuations in cash flow or to respond rapidly to opportunities that may present themselves. The Reserves Policy is subject to annual review.

General unrestricted reserves (excluding designated funds and fixed assets) at 31 December 2012 were £1.059 million (compared to £1.135 million at 31 December 2011). Total unrestricted reserves, including general unrestricted reserves at 31

Annual Report

December 2012 were £1.648 million (compared to £1.642 million at 31 December 2011), reflecting a contribution of £6,000 to general unrestricted reserves in 2012.

In December 2009, Alert’s Board of Trustees approved a designated Organisational Investment Fund. The balance of this fund was £449,000 at the end of 2012.

Alert must be structured for optimum impact and sustainability and we introduced a new management structure and financial model at the end of 2011. These are more efficient and cost-effective, and place Alert in a better position to take advantage of emerging donor funding strategies and preferences and to secure greater income from private donations.

In conclusion, continuous improvements to programme design, implementation, systems, monitoring of incoming and outgoing resources, capacity building and year-on-year investment in strategic development have all contributed to a strong financial picture at the end of 2012. Work to diversify sources of unrestricted income and to increase contributions to indirect costs has had successes, which we believe will continue into 2013 along with efforts to increase restricted income streams.

A small contribution to reserves has been made in 2012 and Alert’s balance sheet and cash flow at year end are secure. Building on a strong financial picture, we are optimistic that we will have a continued period of financial growth in line with Alert’s 2013–2017 business plan, notwithstanding the current economic climate.

The figures on these pages are extracted from the full trustees’ report and financial statements that have been audited by Kingston Smith LLP, who gave an unqualified opinion. The full accounts were approved on 29 May 2013. Copies of the full accounts will be submitted to the Charity Commission and Register of Companies in due course. This summarised financial information may not contain sufficient information to gain a complete understanding of the financial affairs of the charity.

The full trustees’ report, audit report and financial statements may be obtained from the Secretary General’s office.

William Samuel Honorary Treasurer International Alert

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Independent Auditor’s Statement to the Trustees of International Alert We have examined the summarised financial statements for the year ended 31 December 2012.

Respective responsibilities of trustees and auditors The trustees are responsible for preparing the summarised financial statements in accordance with applicable United Kingdom law. Our responsibility is to report to you our opinion on the consistency of the summarised financial statements with the full financial statements and Trustees’ Annual Report, and their compliance with the relevant requirements of section 427 of the Companies Act 2006 and the regulations made thereafter.

Basis of opinion We conducted our work in accordance with Bulletin 2008/03 issued by the Auditing Practices Board. Our report on the company’s full annual financial statements describes the basis of our opinion on those financial statements and the Trustees’ Annual Report.

Opinion In our opinion the summarised financial statements are consistent with the full annual financial statements and the Trustees’ Annual Report of International Alert for the year ended 31 December 2012, and comply with the applicable requirements of section 427 of the Companies Act 2006 and the regulations made thereafter.

Kingston Smith LLP Devonshire House Chartered Accountants and Registered Auditors 60 Goswell Road, London EC1M 7AD

Trustees’ Statement The auditor has issued unqualified reports on the full annual financial statements and on the consistency of the Trustees’ report with those financial statements.

Their report on the full annual financial statements contained no statement under sections 498(2), 498(2)(b) or 498(3) of the Companies Act 2006.

Annual Report

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2012 Unrestricted funds

Restricted funds

2012 Total

2011 Total

£’000

£’000

£’000

£’000

Institutional grants

1,361

-

1,361

1,793

Donations and gifts

111

-

111

242

Investment income

10

12

22

18

Working with people to make a positive difference for peace

802

7,449

8,251

7,909

Improving international policies that affect the prospects for peace

296

2,671

2,967

2,626

26

241

267

440

2,606

10,373

12,979

13,028

199

-

199

191

1,324

7,341

8,665

7,543

Improving international policies that affect the prospects for peace

739

2,517

3,256

3,045

Strengthening the peacebuilding sector

261

277

538

738

77

-

77

72

12,735

11,589

Incoming resources Incoming resources from generated funds Voluntary income

Incoming resources from charitable activities

Strengthening the peacebuilding sector Total incoming resources Resources expended Costs of generating funds Charitable activities Working with people to make a positive difference for peace

Governance costs

Total resources expended

2,600

Net incoming resources Funds brought forward at 1 January 2012

10,135

6

238

244

1,642

3,051

4,693

1,439 3,254

Funds carried forward at 31 December 2012

1,648

3,289

4,937

4,693

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BALANCE SHEET AT 31 DECEMBER 2012 2012

2011

£’000

£’000

140

58

1,809 4,346 6,155

1,180 4,058 5,238

1,358 1,358

603 603

Net current assets

4,797

4,635

Total net assets

4,937

4,693

1,199 449 1,648

1,193 449 1,642

Restricted

3,289

3,051

Total funds

4,937

4,693

Net assets Fixed assets Tangible assets Current assets Debtors Cash at bank and in hand Creditors Amounts falling due within one year

Funds Unrestricted General funds Designated to Organisational Investment Fund

£12,978,667

13,028,000

£9,902,000

How we spent the money in 2012

£10,510,000

£10,367,000

£7,467,000

Our income

£5,311,000

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25% Eurasia programme

15%

Asia programme Africa programme Peacebuilding issues programme Emerging Programme 16%

Fundraising Management and Administration 8%

2006

2007

2008

2009

2010

2011

2012

2% 1%

33%

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Acknowledgements Donors Anglo American AusAID (Australia) Bread for the World (Germany) British High Commission, Sri Lanka CARE International City Bridge Trust Coffey International Comic Relief Conflict Prevention Pool, UK Department for International Development (DFID), UK Department of Foreign Affairs and Trade, Republic of Ireland European Union Folke Bernadotte Academy Foreign and Commonwealth Office (FCO), UK German Federal Foreign Office, Institute for Foreign Cultural Relations (Zivik Programme) German Federal Ministry for Economic Cooperation and Development (BMZ) International Business Leaders Forum Management Systems International (MSI) Ministry of Foreign Affairs, Denmark Ministry of Foreign Affairs, Finland Ministry of Foreign Affairs, Netherlands Ministry of Foreign Affairs, Norway Ministry of Foreign Affairs, Sweden Misereor (Germany) Netherlands Embassy in Bogotá NOVIB Foundation Office of Transition Initiatives (OTI) Open Society Georgia Foundation Pact Projet d’Appui a la Gestion Economique (PAGE)

Rowan Charitable Trust Shell Social Science and Research Council Swedish International Development Cooperation Agency (SIDA) Swiss Cooperation Office (SCO) Swiss Federal Department of Foreign Affairs (FDFA) Swisspeace The Bryan Guinness Charitable Trust The Ceniarth Foundation The Office of the United Nations High Commissioner for Refugees (UNHCR) The Souter Charitable Trust The World Bank UK Embassy in Angola UK Embassy in Bogotá UK Embassy in Georgia UN Women United Nations Democracy Fund (UNDEF) United Nations Development Programme (UNDP) United Nations Development Programme Georgia – Confidence Building and Early Response Mechanism (COBERM) United Nations Global Compact United Nations International Children’s Emergency Fund (UNICEF) United Nations Peacebuilding Fund (PBF) United States Agency for International Development (USAID) United States Department of State USAID/SPRING (Stability Peace and Reconciliation in Northern Uganda) Project Workers Beer Company World Vision

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We acknowledge our partnerships with: Global ActionAid Adelphi Research African Institute of Corporate Citizenship (AICC) Anglo American BOND CAFOD CARE International Center for International Peace Operations (ZIF) Christian Aid Collaborative Learning Projects (CDA) Conciliation Resources Crisis Management Initiative (CMI) CSR Europe EGMONT European Peacebuilding Liaison Office (EPLO) FAFO, Norway Fundación para las Relaciones Internacionales y el Diálogo Exterior (FRIDE) Gender Action for Peace and Security (GAPS UK) Hellenic Foundation for European and Foreign Policy (ELIAMEP) International Center for Transitional Justice (ICTJ) International Council for Mining and Metals (ICMM) Interpeace King’s College, London Kvinna till Kvinna (KtK) NEP/CES (Peace Studies Group of the Centre for Social Sciences – University of Coimbra) Netherlands Institute for International Relations (Clingendael) NGO Working Group on Women, Peace and Security OECD-DAC Overseas Development Institute (ODI) Oxford Brookes University Partners for Democratic Change International (PDCI) Plan International UK Responding to Conflict Royal Commonwealth Society (RCS) Saferworld

Save the Children UK Search for Common Ground Shell Skillshare International Stabilisation Unit of the UK Government Stratos Suncor The Alliance for Peacebuilding The global oil and gas industry association for environmental and social issues (IPIECA) Total S.A. Transition International World Gold Council World Vision York University Youth Business International (YBI) African Union Institute for Security Studies (ISS), Addis Ababa Office, Ethiopia Oxfam International, Liaison Office with the African Union, Addis Ababa, Ethiopia Andean region AngloGold Ashanti Colombia La Asociación Colombiana del Petróleo (ACP) Centro de Colaboración Cívica Socios Perú Centro de Estudios y Promoción del Desarollo (DESCO) Comité Minero Energético para la Seguridad y los Derechos Humanos (CME) Consejo Regional Indígena del Cauca (CRIC) Corporación de Gestión y Derecho Ambiental (ECOLEX) Ecopetrol Fundación Ideas para la Paz (FIP) Instituto de Estudios para el Desarrollo y la Paz (Indepaz ISAGEN Occidental de Colombia, Inc. Eurasia Agency for Technical Cooperation and Development (ACTED) Association of Scientific-Technical Intelligentsia (ASTI) Association of Women of Abkhazia

Caucasian House Caucasus Business and Development Network (CBDN) Caucasus Institute Center for Mediation Centre for Humanitarian Programmes Centre for Strategic Studies (CSS) under the President of the Republic of Tajikistan Civil Diplomacy Institute Civil Society Institute Coalition for Democracy and Civil Society Committee for Youth Affairs, Sport and Tourism under the Government of Tajikistan Council of Europe Office of the Commissioner for Human Rights Cultural-Humanitarian Fund “Sukhumi” DanChurchAid Danish Refugee Council (DRC) Eurointegration NGO European Commission (EC) European Union (EU) Foundation for Development of Human Resources Foundation for Tolerance International Helvetas Swiss Intercooperation Inter-Church Organisation for Development Cooperation (ICCO) Kyrgyz Agency for Community Development and Investment (ARIS) Kyrgyz President’s Administration LINKS M-Vector Nihol Organisation for Security and Cooperation in Europe (OSCE) Osh Media Center Public Committee for Development of Tajikistan Representative office of the Institute for War and Peace Reporting (IWPR) in the Republic of Tajikistan Rushd Save the Children Netherlands Society for Humanitarian Research Sputnik Kyrgyzstana Studio Re Youth & Society

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Great Lakes region of Africa Actions des Femmes pour les Initiatives de Paix/Association des Femmes Chrétiennes (AFIP/ AFEC), DRC Alpha Ujuvi, DRC Appui à la Promotion de l’Entrepreneuriat Local (APPELKivu), DRC Association d’Appui aux Initiatives de Base, DRC Association des Femmes Rapatriées du Burundi (AFRABU), Burundi Association Rwandaise des Conseillers en Traumatisme (ARCTRuhuka), Rwanda CARE Uganda Civil Society Coalition for Oil in Uganda Collectif des Associations et ONG Féminines du Burundi (CAFOB), Burundi Collectif des Associations Féminines pour le Développement (CAFED), DRC Dushirehamwe, Burundi Duterimbere ASBL (Association Sans But Lucratif), Rwanda Duterimbere IMF (Institution de Micro-Finance), Rwanda Dynamique Synergie des Femmes (DSF), DRC East African Sub-Regional Initiative on the Advancement of Women, Great Lakes Great Lakes Ecumenical Forum IBUKA, Rwanda Institut de Recherche et de Dialogue pour la Paix (IRDP), Rwanda Kabarole Research and Resource Centre (KRC), Uganda Kitara Heritage Development Agency (KHEDA), Uganda Le Caucus des Femmes de Sud Kivu pour la Paix, DRC Life and Peace Institute, DRC Makerere University, Uganda National Commission for the Demobilisation and Reintegration of Ex-Combatants, Rwanda National Commission for the Fight Against Genocide (CNLG), Rwanda National Unity and Reconciliation Commission (NURC), Rwanda Northern Uganda Business Forum for Peace, Uganda Parliamentary Forum on Oil and Gas (PFOG)

Plate-forme Démarche pour une Interaction entre Organisations de Base et Autres Sources de Savoirs (DIOBASS), DRC ProFemmes Twesehamwe, Rwanda Radio Isanganiro, Burundi Refugee Law Project (RLP), Uganda Réseau des Femmes Africaines Ministres et Parlementaires en RDC (REFAMP), DRC Réseau des Femmes pour un Développement Associatif (RFDA), DRC Réseau Femmes et Paix (RFP), Burundi Rural Initiative for Community Empowerment (RICE – West Nile), Uganda Saferworld, Uganda Solidarité des Femmes Activistes pour la Défense des Droits Humains (SOFAD), DRC Solidarité des Femmes de Fizi pour le Bien Etre Familial (SOFIBEF), DRC Solidarités Féminines pour la Paix et le Développement Intégral (SOFEPADI), DRC The Great Lakes Parliamentary Forum for Peace (Amani Forum), Great Lakes Transitional Justice Consultation Group, Burundi Umuseke, Rwanda Lebanon Association Suisse pour le Dialogue Euro-Arabo-Musulman Lebanese Center for Policy Studies Maldives National University of the Maldives President’s Office – Government of the Maldives South Asia Network for Security and Climate Change (SANSaC) Nepal Antenna Foundation Association of International Nongovernmental Organisations (AIN) CARE Nepal Equal Access Nepal Federation of Nepalese Journalists (FNJ) Forum for Women, Law and Development

Informal Sector Service Centre (INSEC) Institute of Human Rights Communication Nepal (IHRICON) Legal Aid and Consultancy Centre (LACC) National Business Initiative (NBI) National Judiciary Academy Nepal Police Saferworld, Nepal Samjhauta Nepal Shanti Malika Social Welfare Council, Nepal Youth Action Nepal Pakistan Employers’ Federation of Pakistan European Union Delegation to Pakistan The Federation of Pakistan Chambers of Commerce and Industry Islamabad Chamber of Commerce and Industry Responsible Business Initiative Sustainable Development Policy Institute UN Global Compact, Pakistan Network The Philippines AIM Policy Center FCO Manila Gaston Z. Ortigas Peace Institute Generation Peace Mindanao Multi-stakeholder Group (MMG) Office of the Presidential Adviser on the Peace Process (OPAPP) Waging Peace Network South Sudan Academics and Researchers Forum for Development Sri Lanka Achieving Real Change Association of Professional Sri Lankans in the UK (APSL) Business for Peace Alliance (BPA) Care Conflict Sensitivity Consortium Centre for Poverty Analysis (CEPA) Ceylon Chamber of Commerce Commonwealth Parliamentary Association Cordoba Foundation Good Practice Group

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International Organization for Migration (IOM) Lanka Youth Organisations Network (LYON) National Secretariat for NonGovernmental Organisations One Text Initiative (OTI) Peacebuilding and Development Institute Sri Lanka (PDI-SL) Royal Commonwealth Society (RCS) South Asia Policy Research Institute Sri Lanka High Commission in London Sri Lanka UK Business Chamber Tamil Information Centre University of Colombo Voices for Reconciliation Young Researchers Collective (YRC) Youth Business Sri Lanka (YBSL) United Kingdom Centre for Good Relations Community Accord Community Resolve Conflict and Change Global Education Centre Lancashire Global Education Centre Music in Detention Stockwell Partnership Talk for a Change University of the West of England West London YMCA Who is Your Neighbour Y Care International West Africa Abdou Moumouni Dioffo University, Niger AGORA, Guinea Association of Liberian Community Radio Centre d’Appui à la Recherche et à la Formation (CAREF), Mali Centre for Justice and Peace Studies, Liberia Coalition Nationale de Guinée pour les Droits et la Citoyenneté des Femmes, Guinea Commission Nationale Electorale Indépendante, Guinea Conseil Economique et Social, Guinea

Conseil National des Organisations de la Société Civile, Guinea Conseil Nationale de Transition, Guinea Coordination Fonds de Consolidation de la Paix, Guinea Corps Guinéen pour le Développement et la Paix, Guinea Federation of Liberian Youth Flomo Theatre Production, Liberia Gouvernorats Labé, Mamou, Kankan, Kindia, Boke, N’Zérékoré, Faranah, Conakry, Guinea Institute for Development Studies, University of Nigeria, Nsukka, Nigeria International Committee of the Red Cross International Crisis Group International Foundation for Electoral Systems (IFES), Guinea Justice and Peace Commission of the Catholic Church, Liberia Liberia Media Centre Liberia Women Media Action Committee Liberia Women’s Initiative Mano River Union Peace Forum Mano River Union Secretariat Mano River Women’s Peace Network Médecins Sans Frontières (MSF) Media Women Centre for Development and Democracy, Liberia Médiateur de la République, Guinea Ministère de l’Administration du Territoire et des Affaires Politiques, Guinea Ministère de la Défense, Guinea Ministère de la Justice, Guinea Ministère de la Réconciliation Nationale, Guinea Ministère de la Sécurité, Guinea Ministère des Affaires Sociales de la Promotion Féminine et de l’Enfance, Guinea Ministry of Gender, Liberia Ministry of Information, Culture and Tourism, Liberia Ministry of Internal Affairs, Liberia National Election Commission, Liberia

National Movement for Justice and Democracy, Sierra Leone National Youth Movement for Transparent Elections, Liberia Office of the Gender Adviser at UNMIL, Liberia Organisation Guinéenne des Droits de l’Homme, Guinea Population Services International Press Union of Liberia Primature, Guinea Renforcement de la Paix et Prévention des Conflits, Guinea Réseau Africain pour l’Autopromotion de la Femme et l’Enfant contre la Pauvreté, Guinea Réseau des Femmes Ministres et Parlementaires, Guinea Réseau des Médiateurs Citoyens, Guinea Search for Common Ground Sierra Leone Association of NGOs (SLANGO) Solidarité Thérapeutique & Initiatives contre le Sida (Solthis), Guinea South Eastern Women’s Development Association, Liberia Swisspeace Switzerland Mediation Support Project Terre des Hommes, Guinea The School of International Development (DEV), University of East Anglia, Norwich, UK Tyndall Centre for Climate Change Research, UK UNDP Guinea UNDP Liberia Universities of Kofi Annan, Sonfonia, Labé and Kankan, Guinea UNMIL (Liberia) USAID Mali USAID Nigeria West Africa Civil Society Forum (WACSOF) Women in Peacebuilding Network, Liberia Women NGO Secretariat of Liberia (WONGOSOL) Women Partnership for Justice and Peace (WPJP), Sierra Leone

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