Annual-Report-and-Published-Accounts 2010 by MAF UK

Mission Aviation Fellowship UK A company limited by guarantee, not having share capital

Company number: 3437446 Registered charity number in England and Wales 1064598 Scottish charity number SC039107

Report and financial statements for the year ended 31 December 2010

MAF UK Annual Report & Accounts 2010

www.maf-uk.org

Contents Page 1-2 3

4 5 6

7 8 8-11

12 13 14 15

16-17

18-19 20 21-22 23 24 25 26-32

Message from the Chairman and the Chief Executive Report of the Trustees Public benefit Making a global impact: Operational impact Supporting church growth and development Flying physical aid for physical need Disaster response Building Godâ&#x20AC;&#x2122;s Kingdom Reaching unreachable people Powerful partnerships: mission multiplier Saving time: saving lives Globally positioned for local needs Ensuring safe travel Empowering communities: building futures Special projects PC12 Objectives and activities for 2010 Strategies and significant activities to achieve objectives The MAF team in the UK PR highlights MAF in the Community highlights Youth International staff Future plans: building for balanced growth Conclusion for 2010 Our top five 2011 objectives to support our overseas work Financial review Reserves policy Investment powers and policy Principal funding sources Structure, governance and management Governing document Appointment of Trustees Trustee induction and training Organisational structure Related parties Internal controls Risk management Trusteesâ&#x20AC;&#x2122; responsibilities in relation to the Financial Statements Provision of information to auditors Legal and administrative information Audit report Statement of Financial Activities Balance Sheet Cash Flow Statement Notes to the Financial Statements

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 Message from the Chairman and the Chief Executive As we look back and consider the challenges that we faced during 2010, we cannot help but be aware of God’s faithfulness to MAF. Obstacles were overcome and funds were raised and released, allowing so much to be achieved through our overseas operations as a result. Global economic challenges The cost of fuel continued to rise, the effects of which were felt here in the UK. Inevitably, this continued to have significant impact on the running costs of our flight services. In 2010, this was exacerbated by the fluctuations in exchange rates – another inescapable challenge for MAF operating in locations around the globe. Recognising the potential threat these factors posed to our operations, MAF UK launched an appeal asking for help to protect the services our planes provide through prayer and help with the additional costs we faced as a consequence. It was humbling to see our Supporters’ generous response and faithful partnership in standing alongside remote and isolated people by enabling MAF to overcome these challenges and the work to continue. Responding to disasters The year had barely begun before the MAF team were responding, along with many others, to the devastating earthquake that hit Haiti on 12 January. MAF has been based in Haiti for 23 years, and sadly we lost one of our own members of staff as a direct result of the earthquake. However, our presence within the country meant we were able to assist immediately in the massive task of disaster response and relief work. Supporters within the UK donated over £200,000 towards this work. Long-term commitment In Bangladesh, another area of the world prone to natural disasters, the Southern Shuttle service, supported by UKaid from the Department for International Development (DFID), continued to enable more efficient use and investment of time and funds by the numerous organisations working in the south of the country where communities are most vulnerable to cyclones. These regular flights are greatly appreciated by our partners working on the ground. MAF’s ongoing service to partners and the people of Bangladesh is an indication of our long-term commitment to stay and help long after disaster strikes. It is this commitment to people in isolated places, often forgotten or neglected due to their remoteness, that is a hallmark of our operations around the developing world. Reports from our staff and partners in southern Sudan, Chad, Madagascar, Papua New Guinea and many other countries testify how our planes and staff teams have enabled lives to be saved; hundreds to receive sight; reconciliation and peace between enemies; vital supplies to reach vulnerable people; sustaining of development work; empowering of local communities in self-sufficiency; Christian Page 1

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 love to be expressed to widows and orphans; the Gospel to be preached among those who have not heard the Good News; churches to be strengthened and disciples nurtured. MAF’s long-term commitment is only possible because of the commitment, often long-term, of our Supporters who come alongside us financially, stand with us faithfully in prayer, and serve voluntarily in numerous ways. Providing resources We give thanks to God for His provision during 2010 of: · · · · ·

£10.3 million of income raised Over 9,000 new Supporters recruited An MAF Day of Prayer in over 500 churches Over 2,000 new regular committed givers Over 1,000 presentations at churches and events

To all who played a part in enabling so much to be released for MAF’s work during 2010, we offer our heartfelt thanks.

Roger Mitty Chairman of Trustees

Ruth Whitaker Chief Executive

Page 2

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 Report of the Trustees for the year ended 31 December 2010 The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. The Trustees, who are also Directors of Mission Aviation Fellowship UK (MAF UK) for the purposes of the Companies Act, have pleasure in presenting the Report and Accounts for the year ended 31 December 2010. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP 2005) ‘Accounting and Reporting by Charities’ issued in March 2005 in preparing the Annual Report and financial statements of the charity. Public benefit The Trustees of MAF UK confirm that they have had regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. As illustrated in this Trustees’ Report, MAF UK supports the worldwide work of MAF, which aims to benefit people living in some of the most isolated parts of the world. In many places there are no roads at all, or if roads exist, they can become impassable for months at a time due to adverse weather conditions such as heavy flooding. In many countries, insecurity can render road travel highly dangerous. MAF’s fleet of light aircraft take Christian workers, emergency teams, healthcare professionals and supplies into remote areas more safely, quickly and efficiently than any other means. As a result, MAF’s activities benefit two major groups – firstly, the charities, churches and other organisations whose mission it is to reach isolated communities and secondly, the communities themselves. The Trustees here provide a few examples of the work MAF UK supports to demonstrate how the public benefit is delivered. Making a global impact Through the generosity of UK Supporters, MAF UK is able to support the worldwide work of MAF in making a lasting difference in remote communities in more than 30 countries. Operational impact MAF’s mission is to reach the unreachable in some of the world’s most remote and isolated areas, where people are cut off due to geographical barriers, conflict or the dangers of overland travel. During 2010, our flights continued to enable our partners to overcome these challenges, and gain access to people in spiritual and physical need. Supporting Church growth and development In northern Tanzania, flights continued to support the work of Maasai evangelists on the Malambo Safari. After 21 years of flying them to Engorika North, 40 people were baptised in June. Pastor Daniel explains: ‘There is no road to Engorika North – it takes six hours climbing like goats to get there.’ It is just a five-minute flight by plane. Page 3

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 At Olemilei, Tobiko Ole Fanuel shares: ‘For the people, bringing the evangelists up here means we have a service.’ The evangelists estimate that what they do in three days with the MAF plane would otherwise take six or seven months. Far Reaching Ministries is working to bring the Gospel to soldiers in Sudan People’s Liberation Army by training chaplains from among their own ranks. We flew 13 of their chaplaincy students from Kauda to Nimule for training. The three-hour flight saved them at least a month of painful overland travel across southern Sudan. In Chad, pilot Greg Vine flew to Bol to collect David Petersen, who had been working with TEAM missionaries on their ‘One Story’ project. This project translates biblical stories into the local language for story-telling with villagers. Flying physical aid for physical need On Bukasa Island on Lake Victoria, over 500 people received medical treatment when MAF flew a team of 20 from Ugandan Medical and Dental Mission. Without the 20-minute flight, the team would have had to travel by boat – a journey equivalent to crossing the English Channel in small wooden boats for up to eight hours. Pilot Derek Moores flew a team to Marsabit, northern Kenya, to initiate a jiggers eradication programme – a collaborative project between Gospel Outreach Assembly in Marsabit and Ahadi Kenya Trust. The female jigger, or sand flea, burrows into the skin to lay its eggs. Untreated, it can result in infection, deformity and loss of mobility. Over 100 people, from toddlers to elderly people, were treated. A previous road trip to Marsabit took over 18 hours and passed through areas prone to bandit attacks. In Bangladesh, Baptist Mission runs a number of projects in the south of the country. Wes Johnson shares: ‘The work on the islands in the south is logistically impracticable to carry out without MAF.’ Disaster response With an existing base at Port-au-Prince airport, Haiti, MAF’s presence within the country meant our response was immediate in the aftermath of the January 2010 earthquake. In the following 3 months, our aircraft carried 1,801 passengers, 158 tons of cargo and made 1,037 landings. The MAF hangar was used as a communications and logistics centre for numerous organisations and tons of essential aid. MAF co-ordinated storage, distribution and transportation of food, water, medical supplies, tarpaulins and water purification systems. Our planes flew nonstop with a team of pilots on rotation. JD Calkin of The Salvation Army shares: ‘MAF has been instrumental to our operations, and has helped us move personnel around quickly and with minimum impact on our operating goals.’ Flights continued throughout the year and included assisting efforts to contain cholera outbreaks, intensified by hurricane Tomas. Building God’s Kingdom Ulaanbaatar Baptist Church (UBC) has a vision to plant churches in every province in Mongolia. MAF flew eight members of UBC to Altai, where they conducted Bible seminars. Another flight took the team to Ulaangom for an evangelical outreach. Page 4

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 We delivered over 4,000 hand-held radios to people in southern Sudan as part of AID Sudan’s radio campaign. Programmes include the Gospel in their own language, news, community health and development information, training for teachers, and health, hygiene and AIDS teaching. Reaching unreachable people Our Kenya team made several flights for World Gospel Mission to and from Mfangano Island on Lake Victoria, isolated from the mainland by a six-mile stretch of water. We transported more than 50 people who served at a school and orphanage for nearly 500 children, and in neighbouring communities on the island. Medical, eye and dental teams saw 1,665 patients and performed dozens of cataract operations. Construction crews built five homes for widows. Teams shared the Gospel, delivered shoes to 350 children and educated approximately 500 students about HIV/AIDS. In Madagascar, MAF partnered HoverAid and Malagasy medical staff to provide regular medical care to people in remote villages. During the year, 3,084 people from Anjabetrongo, Ampasinambo, Beroroha and Ankavandra received medical care who would otherwise have been out of reach. Our airstrip at Lapalama, Papua New Guinea, reopened following the end of fighting between the Lakani and Kapandan clans. The people were excited to welcome MAF back. The first flight transported three patients to Kompiam, including Junior, a young boy with a very swollen right leg. The five-minute flight saved him a two-day walk through thick rainforest. Powerful partnerships: mission multiplier In Bangladesh, Philippa Thomas of DFID, stated: ‘The number of NGOs working in the south has increased since MAF began the Southern Shuttle.’ Helen Keller International flies each month to supervise projects assisting 20,000 beneficiaries. Their Country Director Diane Lindsay states, ‘The Southern Shuttle set up by the partnership between MAF and UKaid is so visionary. It has improved the quality of our programme. Our staff can travel down to the project more frequently.’ Barbara Burroughs of Save the Children shares: ‘I make trips that otherwise I couldn’t do. Using the Southern Shuttle saves me two days which I can ill afford to lose. The service is excellent and allows more time at the project.’ Dadaab refugee camp in eastern Kenya is home to 300,000 people – mostly Somali refugees. For many years, the specialist eye team from Kikuyu Hospital in Nairobi has flown there with MAF to carry out sight-restoring surgery. During one visit in 2010, more than 300 patients were assessed and categorised. Assessments complete, surgery started. The team can perform up to seven operations per hour. Around 200 people regained sight – their lives, and the lives of their families, dramatically transformed. Based in Yei, southern Sudan, the Resource Centre for Civil Leadership (RECONCILE) seeks to help the nation grow as a peaceful democratic society. Nuer and Murle ethnic groups have violently clashed on many occasions. With MAF's support, RECONCILE was able to conduct workshops for women aimed at alleviating ethnic tensions, gender-based violence and violence against children. Women from Page 5

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 the two ethnic groups agreed to meet in 2010 for a peace conference. MAF flew the Nuer women from Akobo to the conference in Pibor, as well as two facilitators from RECONCILE. Milcah Lalam of RECONCILE shares, ‘None of these events – from the initial workshops to the peace conference – would have been possible without the support of MAF.’ Saving time: saving lives Our planes are often called upon to provide swift, safe transportation for people who are critically ill or injured. Examples of cases in 2010 include a flight in Chad for two men injured in a serious motorbike accident and, in Papua New Guinea, Saitilam Matyu was flown to hospital for removal of a retained placenta – left untreated, it would have been fatal. In southern Sudan, Samaritan’s Purse worker Issa was shot during an ambush by bandits between Rumbek and Tonj. In a separate incident, Maluak Tat, a Dinka herdsman, was shot in the throat. MAF flew both to Juba for hospital treatment. Globally positioned for local needs In southern Tanzania, MAF continued to fly a medical team to remote Madundas to hold a monthly clinic. Statistics from 1 day include 269 vaccinations administered to children, 73 antenatal consultations and 35 Tetanus vaccinations administered. The air link proves invaluable in the utilisation of trained medical staff. Alternative medical care for the people would involve a three-day walk to Chimala, or a week’s walk to Mbeya. MAF flew UNICEF and CARE International staff and members of the Chadian Ministry for Social Services to Bardai in northern Chad for meetings with local leaders. Discussions concerned initiating rehabilitation programmes for children affected by fighting, primarily as child soldiers. Extensive talks resulted in agreement by local leaders to support the plans. Ensuring safe travel Paediatric surgeon Hélène Le Hors of Humaniterra made her fifth visit to Emirates Friendship Hospital in Bangladesh. Normally she flies with MAF, arriving at the boat by 13.00 having flown in from France the same morning. She then has sufficient time to examine patients that day before operating on them from early the next morning. This year, Dr Hélène travelled by road, arriving ahead of colleagues to set everything up. The road journey took eight hours. Dr Hélène said: ‘I died every five minutes! It was the terrible and dangerous driving of the other road users.’ Arriving at 1830, totally exhausted, she only had the energy to examine 15 of her patients that day. The rest she saw the next morning before being able to plan and start surgery. ‘Using the MAF plane is very efficient and allows us each an additional day of surgery.’ MAF later flew her three colleagues to the hospital. They carried out 99 operations – 46 on children and 53 on adults. Nicolas Karadjian of Terre des Hommes in Bangladesh shares: ‘Security of staff is crucial and safety on the roads is very poor, so the aircraft is the best option.’

Page 6

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 Empowering communities: building futures The airstrip at Lualaje is one of four new airstrips that our team in Tanzania has worked to develop during 2010. One man encouraged Lualaje villagers: ‘I have seen the work of MAF in my village [Msangaji] – they bring us medical help and save lives.’ Later, we flew the first dentist to visit Lualaje, who performed 22 extractions in 3 hours and gave a teaching session on oral hygiene. We flew a team from Eternal Life Church and Good Neighbour Society from Ulaanbaatar to Tosontsengel, Zavkhan province, Mongolia. Their goal is community development throughout Mongolia, empowering local communities to ‘help themselves’. They helped with school repairs and shared the Gospel. In Uganda, MAF flies a number of teams each year for Christian Veterinary Mission. The teams serve in different ministries, including peace-building, construction, vacation Bible school with orphans, pastor discipleship and veterinary teams. Dr Val Shean states: ‘MAF has been a critical factor in both the peace work that we do and in the other ministries.’ Special projects In Papua New Guinea, structural repairs commenced on the MAF hangar and base facility in Wewak, on the north coast of this mountainous country covered in dense rainforest. The improvements will increase our ability to deliver aid and development services efficiently to the needy and isolated communities in the north. PC12 In March 2010, our PC12 aircraft in Kenya was grounded. The engine was repaired and returned to Kenya in November 2010. Back in service, the plane flew more than 4,000 miles in its first 4 days, carrying 29 people and more than 2,649kg of supplies. At the beginning of December, it flew 1,000kg of vital medicines to Old Fangak, southern Sudan, for World Health Organisation. The medicine was to treat the lifethreatening disease kala-azar. Dr Jill Seaman shares: ‘Over 3,500 people have been treated for kala-azar, getting 17 daily injections to fight the disease.’ These projects have been made possible by our Supporters and grants from governments and institutions including: Department for International Development Guernsey Overseas Aid Commission Isle of Man Overseas Aid Committee Jersey Overseas Aid Commission Scottish Government Lancaster Foundation Maurice and Hilda Laing Charitable Trust AFD Software Ltd Phyllis Little Memorial Trust

Page 7

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 Objectives and activities for 2010 Charity aims MAF UK’s aim is to support partner churches, missions and relief and development agencies to reach remote communities with the love of Christ through practical help and real hope. The main purpose and activity of MAF continues to be subsidised, safe and secure aviation services in parts of the world where travel by road is made impossible, unsafe or too slow to reach isolated places. Christians with a strong commitment to our aim use their skills in aviation and other fields to work in partnership with national churches, relief and development agencies, missions, hospitals and governments to meet the most pressing of human needs. Entering 2010, all charities were conscious of the economic uncertainty in the UK. Overseas charities were also challenged with weak exchange rates that increased the cost of operating in the developing world. For MAF, this was combined with high fuel costs for our aircraft. So our objective for 2010 was to meet these growing needs through prayer and financial support, and to continue to recruit new Supporters and much-needed staff for our overseas work. Specifically, the objectives for 2010 were: §

Sharing the work of MAF with more people, particularly those who have not heard of MAF before – over 9,000 new Supporters joined MAF in 2010.

Strengthening our welcome to new Supporters so they know they are valued, and are also inspired by and informed about all that MAF achieves – a new welcome magazine was launched for new Supporters.

Building on our fundraising to help meet the financial challenges of exchange rates and rising fuel costs – a special appeal met these increased costs and over 2,000 more Supporters joined our regular committed giving programme.

Finding people with the requisite skills for the varied roles essential to our work – improved screening allow us to find the most suitable candidates.

Developing our new e-communications to provide fast, up-to-date news and highlights from MAF overseas and the UK – new Facebook and Twitter sites, over 10,000 Supporters receiving email newsletters, and an improved website.

Using new online resources and email updates to enable better-informed prayer – digital prayer diaries and emails with a southern Sudan prayer campaign brings MAF’s prayer needs immediately to our Supporters.

Strategies and significant activities to achieve objectives Our strategies for developing 2010 support were to: ·

Diversify our recruitment of Supporters Page 8

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 · · · · · · · ·

Increase our Volunteer team Update and improve our communications Expand our online profile Further develop financial resilience through encouraging committed giving Review prayer activity and provide online prayer updates Further develop telephone engagement with Supporters Encourage more ways to support MAF Streamline overseas staff recruitment

The MAF team in the UK Our focused appeal, highlighting the impact of higher fuel and currency costs, received a tremendous response. With careful use of funds, this allowed all the needs of our overseas operations to be met in 2010. Our newly-designed and renamed magazine Flying for Life communicates news of how MAF’s work is making a difference overseas. Distributed to over 71,000 homes and churches, the more modern, fresh presentation of stories and imagery was extremely well received. A new introductory Flying for Life welcome magazine introduces new Supporters to the wide range of work enabled by MAF. During 2010, we have started to broaden our promotion of MAF UK to reach new Supporters. This is combined with news and articles in publications to reinforce the ‘join the team’ message, backed by the difference MAF makes. Together with the work of our Volunteers presenting MAF to churches and other groups, we added 9,080 new Supporters in 2010. Invitations to make regular gifts to MAF have been well received with 2,092 Supporters being added to our regular giving programme. For the first time, we asked all Supporters to give regularly as part of the fuel appeal. Almost 400 were added as a result. This committed income stream is an enormous help in funding and planning our work. The theme for this year’s Day of Prayer was ‘Friend of the Poor’. For the first time, a video was included with other materials. The short film focused on one young mother’s journey to gain access to medical help for her sick child. MAF despatched over 500 resource packs to churches and individuals across the UK. Our online presence grew to include Facebook and Twitter. With more people coming to the constantly developing website, we are now bringing MAF to life through video. This has added a new dimension to experiencing our work overseas. The combination of frequently updated web content and enews links has resulted in increasing integration of communications as we widen access to MAF.

Page 9

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 MAF in the media In January, the media response to Haiti was enormous. Our staff, both at home and away, spent many hours being interviewed for radio and newspapers. A number of relationships established during the 2009 Kodiak tour proved fruitful. Several aviation magazines published features on our work, and continued to show an interest. We maintained our regular contact with UCB radio and regional BBC stations. Many Christian publications featured regular articles and news. We also linked PR with the Supporter acquisition programme, combining articles with prospect packs. MAF in the Community highlights Our team of dedicated Volunteers continued to grow across the UK, raising awareness of the work through audiovisual presentations and attending major exhibitions and events. Volunteer numbers Area Reps England and Wales Scotland Northern Ireland Church Reps England and Wales Scotland Northern Ireland Prayer Group Leaders England and Wales Scotland Northern Ireland

2010 113 57 15 415 169 155 35 16 12

2009 110 58 15 365 165 144 36 26 10

We spoke at over 1,000 meetings in 2010, which varied in size from small gatherings to conferences. We took our interactive trailer to Farnborough International Airshow, which gave us an excellent platform for profiling our overseas work. The Roadshow also attended several major Christian conferences. We were invited by the Bishop of Winchester to attend General Synod in York, which resulted in an invitation to return in 2011. The Annual Day of Prayer took place during October over a two-week period, allowing participants to choose the most suitable day for them. Many churches and individuals requested the Day of Prayer pack. We continued working with Church of Scotland Guild in the ‘Madagascar Mission Run’ (MMR) project. During 2010, the second year of this three-year project, our Area Reps visited 195 Guilds to lead presentations about the impact this work is having. MAF in Scotland has had strong connections with the Guild for many years, and the current project resulted in donations of £36,000 being received during the year. The MMR project enables flights to the most isolated parts of the island. One flight transported three doctors, a dentist and several medical assistants to Ankavandra – a flight which took less than an hour. The team then had to hike for an hour with their Page 10

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 luggage in the heat of the sun. Finally, after a river crossing by pirok (small canoe), they arrived at the medical camp which had been prepared by a HoverAid team. This team had left five days previously with two 4x4 cars and had taken nearly three days to complete the same journey. The prayer and financial support from many individual Guilds makes this project possible and we are very grateful for their partnership. During 2010, MAF attended a wide variety of events in Scotland ranging from local church fetes to larger Christian events. We have been part of Praise Gathering for several years. This year, they added an Edinburgh venue to their schedule and we were able to have a strong presence there. Some new initiatives in the Scottish Christian scene were developed in 2010, and MAF was proactive in ensuring that we were part of these. The Women Walking with God conference in Edinburgh and Origin Scotland praise event were excellent opportunities to share our ministry with new audiences, and we are grateful for those who agreed to support our work in prayer and receive our mailings. Through the work of the Scottish Volunteer team, 788 new people joined the MAF Supporter team. Our Volunteers worked tirelessly to present the ministry and needs of MAF at a wide range of meetings and events. Although some Area Reps have stepped down, we manage to recruit new people to fulfil this role. Other Volunteers represented us at events or in their own churches, and it was encouraging to see some growth in the number of Volunteers taking on these roles. Youth Above & Beyond continued to grow. In 2010, many more young people and students were introduced to the work of MAF. The summer saw Above & Beyond on the road with a team of Volunteers, exhibiting at the major Youth events such as Soul Survivor and Momentum. A Flight Simulator was available on the display at these events. There have also been a growing number of opportunities to share about the work of MAF at local church youth groups all over the UK. As young people grow in their interest of MAF, Above & Beyond e-communications and the website (www.aboveandbeyondmaf.org) seek to keep them informed of the latest MAF stories and give plenty of ideas about how they can get involved through praying, fundraising or volunteering. The response has been encouraging. Many young people have taken up the ‘see a plane, say a prayer’ challenge, committing themselves to pray for the work of MAF every time they see a plane. Youth groups have also been fundraising. One youth group in Staffordshire raised almost £500 for the work of MAF by putting on a classical music concert. Another youth group in East Peckham raised over £300 from a nativity play and a lunch that they put on for the rest of the church. We have also seen an increase of individual Supporters raising funds for the work through sponsored walks, car washes etc. Page 11

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 In order to keep spreading the word further, Above & Beyond produced a Youth Worker Resource Pack. This enables youth workers to introduce MAF to their youth groups while covering themes such as world mission and justice. The pack includes activities, discussions, Bible studies, a PowerPoint and an Above & Beyond film. A priority in 2011 will be getting it into the hands of as many youth workers as possible. All these efforts together have contributed to another exciting year for Above & Beyond and the growing band of young people enthused and inspired by the work of MAF. International staff We have 36 members of overseas staff based primarily in East Africa operations though we do have families serving in Papua New Guinea and Arnhem Land, Australia. We also have three staff members and two accepted candidates carrying out pre-field support raising and completing training prior to overseas service. With these staff members and accepted candidates, we are also supporting 35 spouses and 55 children. We have eight families or individuals who are being formally assessed and who we anticipate will join an MAF operation overseas over the course of the next 6-18 months. These families or individuals represent four applications for experienced or basic entry pilot roles within the Africa region, three applications for operations or deputy operations manager roles with the Africa and Asia Pacific region, and a base administrator application for the Africa region. We continue to find web advertising sources and word of mouth communication via our Volunteer Team the best forms of publicising overseas vacancies and we have approximately 350 registered receivers of our monthly vacancy update bulletin. These represent individuals, representatives from Christian aviation groups, Bible colleges and aviation training schools. We continue to work with the Volunteer Team to provide support as they meet people interested in working with MAF in the course of their work representing MAF. Future plans: building for balanced growth The success of MAF has been the result of working in partnerships, both here in the UK and in those countries in which MAF flies. Building airstrips is a partnership with those remote communities they will serve. Equally important are our partnerships with other aid agencies, churches and charities that share a desire to make a difference for those in greatest need and most isolated. In a year of dramatic changes in the UK, our God has been unchanging in His provision for MAF through every gift from every Supporter. Our plans for countering financial challenges have been successful through our loyal Supporters.

Page 12

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 Conclusion for 2010 Faithful and committed support has continued and strengthened against the tide of the UK economy, with our essential needs being met, overcoming the challenges of rising fuel and currency costs. There has been growth in many areas of activity such as regular giving, appeals to meet these new needs and online giving. This has enabled our mission to reach the most isolated people across the developing world with help and hope despite the challenges here in the UK and overseas. Our 2011 objectives combine sustaining with increasing our UK support which is vital to our overseas operations. We value every prayer, every gift, every mention of MAF, every recruitment enquiry and every Supporter. We want to grow while valuing all the support we already receive; so our objectives reflect that we value our existing Supporters and need to attract more. Though these are times of uncertainty, our vision is to increase the work in the UK, to enable MAF to support even more isolated people in need in the developing world. Our top five 2011 objectives and strategies to support our overseas work are to: 1 Value and retain our Supporters through communications, care and increased understanding of them 2 Create and progress new plans for raising the profile of MAF in the UK, including growth of our Volunteer Team, developing online marketing and developing new communication materials 3 Increase income, focusing on committed giving by new and existing Supporters 4 Strengthen our prayer support including the Day of Prayer, online prayer materials and prayer updates 5 Develop our overseas recruitment strategy.

Page 13

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 Financial review Five-year history Income and expenditure £000 Income Unrestricted donations Legacies Investment income International staff support Other restricted income: Aircraft Fuel Other Total income Expenditure Cost of generating voluntary income Charitable activities – from income Charitable activities – from restricted reserves Charitable activities – from designated reserves Charitable activities – total Governance costs Total expenditure

2006

2007

2008

2009

2010

5,269 1,676 157 782

5,441 1,707 209 892

5,606 1,579 135 900

5,971 1,106 19 871

6,591 1,425 15 889

311 3 532 8,730

242 1 663 9,155

25 1,430 857 10,532

1,137 44 917 10,065

51 80 1,265 10,316

1,658

1,797

2,028

2,146

2,011

6,017 -

6,232 342

7,721 -

8,050 -

7,323 -

*2,089

6,017 48 7,723

8,663 21 10,481

7,721 23 9,772

8,050 24 10,220

7,323 27 9,361

Net incoming/(outgoing) 1,007 (1,326) 760 (155) resources Net incoming/(outgoing) resources excluding charitable activities 1,007 763 760 (155) funded from designated reserves * This substantial sum was used to fund projects in addition to the budget.

955 955

Page 23 sets out the Statement of Financial Activities for MAF UK for the year. The income for the year (Total Incoming Resources) was £10.3m, of which 99% was voluntary income including restricted gifts (2009: £10.1m; 99%). The benefits of tax-efficient giving were again increased through the securing of a further 4,064 Gift Aid Declarations during 2010 (2009: 3,935), bringing the total number of ongoing Declarations to 35,792 (2009: 34,053). Tax claimed on 2010 gifts amounted to £829,737 (2009: £806,575). Investment income remained depressed at £15k (2009: £19k) mainly as a result of the lower rates of interest that are affecting everybody.

Page 14

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 During the year, the sum of £1,484,000 (note 4) was paid in staff support to 33 staff (note 5) (individuals/families) from the UK serving overseas (2009: £1,423,000 to 36 staff individuals/families). In addition, unrestricted grants of £3,233,000 (note 4) and restricted income of £1,405,000 (note 13) totalling £4,638,000 were passed to sister MAF groups worldwide, primarily to assist in the provision of mission aviation (2009: £5,340,000 [unrestricted grants of £3,157,000 and restricted income of £2,183,000]). The assets and liabilities of MAF UK are set out in the Balance Sheet (page 24). All of the assets were used directly in the charitable purpose or in a support capacity. ‘Financial Instruments’ are those assets and liabilities of a charity that can be impacted by a third party (eg bank deposits, investments, overdrafts, loans, trade creditors etc). At the Balance Sheet date, financial instruments included bank deposits and trade creditors. Trade creditors are paid within 30 days, unless the supplier’s payment terms are less favourable. The Trustees have put in place designated reserves (see below) to provide adequate assurance in respect of liquidity and operational cash flows. Reserves policy It is the Board’s policy to reserve sufficient funds to ensure the ongoing operations of MAF UK. These include a Base Reserve to withstand peaks and troughs in cash flows. Additionally, other designated funds may be created by the Board to help ensure MAF UK’s effectiveness. During the year, a review of risks and reserves was undertaken and the recommended changes have been implemented. Details of all the designated funds are set out in note 13. At the year end, all the reserves were in line with the policy. Principal funding sources Voluntary donations remained the principal source of funding, providing some 99% (2009: 99%) of total incoming resources. Of this, legacy income amounted to 12% (2009: 11%). Investment powers and policy The investment powers of the Trustees are as set out in the Memorandum of Association. The main additions to fixed assets in the year are detailed in note 7. Structure, governance and management Governing document MAF UK is a charitable company limited by guarantee and a registered charity. It is governed by a Memorandum and Articles of Association dated 15 September 1997 Page 15

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 and revised in October 2007. In the event of the company being wound up, members are required to contribute an amount not exceeding £10. Appointment of Trustees During the year, the Board welcomed back Roger Mitty as Trustee and Member, and said goodbye to Ann Saunders after nine years of service to MAF UK. The Trustees are elected by the Board. The number of Trustees may not be less than three, but is not subject to any maximum. One third of Trustees retire at each AGM whether by retirement or rotation. Board decisions are made by majority vote. The number of Members may not be less than two. The Trustees approve membership. Trustee induction and training In the Trustee induction programme, new Trustees are provided with the Governance Manual containing items such as the Memorandum and Articles and recent annual and management accounts as well as a copy of The Good Trustee Guide. They are required to attend a series of meetings and discussions with the Chief Executive and others to learn more about the work and how MAF UK operates. From time to time, the Board will invite specialists such as the auditors to make a presentation to the Board on matters of interest, such as good governance, to ensure that the Trustees are kept abreast of best practice. Organisational structure The Trustees meet four times a year and are responsible for the strategic direction and good governance of the charity. The Board governance structures include the following subcommittees: · Finance and Fundraising Subcommittee · People and Prayer Subcommittee The Board has put in place a Governance Manual which brings all the relevant laws and regulations into one place, which will help to enable the Board to comply fully with the Code of Good Governance. Day-to-day responsibility for the charity’s operations is delegated to the Chief Executive and the Senior Leadership Team.

Page 16

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 Related parties MAF UK has three subsidiaries, all of which are dormant. MAF UK is a member of MAF International, which is an association of operational and resourcing MAF groups around the world. Internal controls The Trustees have overall responsibility for ensuring that the charity has an appropriate system of controls, financial and otherwise. They are also responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities, and to provide reasonable assurance that: · the charity is operating efficiently and effectively · its assets are safeguarded against unauthorised use or disposition · proper records are maintained and financial information used within the charity or for publication is reliable · the charity complies with relevant laws and regulations. The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include: · a strategic plan and an annual budget approved by the Trustees · regular consideration by the Trustees of financial results, variances from budgets and non-financial performance indicators · delegation of authority and segregation of duties · identification and management of risks. Risk management The Trustees have, with advice from their auditors, introduced a formal risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks the charity faces, prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of managing them. As part of this process, the Trustees have reviewed the adequacy of the charity’s current internal controls. The Trustees are pleased to report that the charity’s internal financial controls, in particular, conform to guidelines issued by the Charity Commission. In addition, the Trustees have considered the guidance for directors of public listed companies contained within the Turnbull Report. They believe that although this is Page 17

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 not mandatory for the charity it should, as a public interest body, adopt these guidelines as best practice. Accordingly they have: · set policies on internal controls which cover the following: § consideration of the type of risks the charity faces § the level of risks which they regard as acceptable § the likelihood of the risks concerned materialising § the charity’s ability to reduce the incidence and impact on the business of risks that do materialise § the costs of operating particular controls relative to the benefit obtained. · clarified the responsibility of management to implement the Trustees’ policies and to identify and evaluate risks for their consideration · communicated to employees that they have responsibility for internal control as part of their accountability for achieving objectives · developed systems to respond quickly to evolving risks arising from factors within the charity and to changes in the external environment · included procedures for reporting exceptions immediately to appropriate levels of management and the Trustees together with details of the corrective action to be undertaken. The major risks are assessed as those most impacting on our fundraising capabilities: · interruption to postal gift income stream through industrial action · interruption to gift processing through potential catastrophe · reputation risk. Trustees’ responsibilities in relation to the financial statements

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with the Companies Act 2006 and for being satisfied that the financial statements give a true and fair view. The Trustees are also responsible for preparing the financial statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Trustees are required to: · ·

select suitable accounting policies and then apply them consistently make judgments and estimates that are reasonable and prudent Page 18

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 · ·

state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

The Trustees are responsible for keeping adequate accounting records that show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the group's website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

Provision of information to auditors In the case of each of the persons who are Trustees at the time when the Trustees’ report is approved, the following applies: · so far as the Trustees are aware, there is no relevant audit information of which the company’s auditors are unaware · the Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s234ZA of the Companies Act 1985.

Page 19

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 Legal and administrative information Trustees Roger Mitty MInstF MIPA Chairman (from 29.06.10) John B Quin OBE FCMA Alan R Devereux CBE DL Andrew Cunningham MSc BSc (Hons) Elizabeth Ann Saunders FCIPD BA (Hons) Oxon (to 29.06.10) Rev Anthony Buckley MA (Oxon) Dr Ian Harnett DPhil (Oxon) Stephen Lockley FCA BSc (Hons) John Steel QC Members All Trustees are also Members. Chief Executive Ruth Whitaker BEng (Hons) Company Secretary Alex Finlow FCA MSc Registered Office and Principal Address 1st Floor, Castle House, Castle Hill Avenue, Folkestone CT20 2TN Auditors BDO LLP, Emerald House, East Street, Epsom KT17 1HS Principal Bankers National Westminster Bank Plc, Europa House, 49 Sandgate Road, Folkestone CT20 1RU Solicitors Girlings, Europa House, 49 Sandgate Road, Folkestone CT20 1TD Company information Company number 3437446 Registered charity in England and Wales (1064598) and in Scotland (SC039107) Website: www.maf-uk.org Date of Incorporation 16 September 1997 Auditors A resolution proposing that BDO LLP be re-appointed as auditors of the charity will be put to the Annual General Meeting. Approved by the Board and authorised for issue on 5 April 2011. Roger Mitty (Chairman) Page 20

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES AND MEMBERS OF MISSION AVIATION FELLOWSHIP UK We have audited the financial statements of Mission Aviation Fellowship UK for the year ended 31 December 2010 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial statements have been prepared under the accounting policies set out therein. This report is made solely to the charity’s trustees and members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charity’s trustees and members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees and members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditors The trustees’ (who are also the directors of the company for the purposes of company law) responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being satisfied that the financial statements give a true and fair view are set out in the Statement of Trustees' Responsibilities. 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 report to you our opinion as to whether the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 8 of the Charities Accounts (Scotland) Regulations 2006, and give a true and fair view. We also report to you whether in our opinion the information given in the Trustees’ Annual Report is consistent with those financial statements. In addition we report to you if, in our opinion, the charity has not kept adequate and proper accounting records, if we have not received all the information and explanations we require for our audit, or if certain disclosures of trustees’ remuneration specified by law are not made. We read the Trustees’ Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it.

Page 21

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 Basis of audit opinion 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 judgements made by the trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the charity's circumstances, consistently applied and adequately disclosed. 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 of the state of the charity’s affairs as at 31 December 2010 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

the financial statements have been properly prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006; and

the information given in the Trustees Annual Report is consistent with the financial statements.

Don Bawtree Senior Statutory Auditor for and on behalf of BDO LLP, Statutory Auditor BDO LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 Epsom United Kingdom Date: 5 April 2011 BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127) Page 22

www.maf-uk.org MAF UK Annual Report & Accounts 2010

Statement of Financial Activities (incorporating an Income and Expenditure Account)

for the year ended 31 December 2010 2010 Unrestricted funds Note £ 000

Incoming resources Incoming resources from generated funds: Voluntary income: Donations International staff Legacies

Investment income

Restricted funds £ 000

2009 Total funds £ 000

Unrestricted funds £ 000

Restricted funds £ 000

Total funds £ 000

6,591 1,416 8,007

1,396 889 9 2,294

7,987 889 1,425 10,301

5,971 1,021 6,992

2,098 871 85 3,054

8,069 871 1,106 10,046

8,022 2,294 ######## ########

Total incoming resources

10,316 10.3

7,011 3,054 ######## ########

10,065 10.1

Resources expended Cost of generating funds

2,011

2,146

Charitable activities

5,107

2,216

7,323

5,040

3,010

8,050

7,145

2,216

9,361

7,210

3,010

10,220

877

955

3,903

3,921

137

4,858 955,000

3,722

181 (deficit)

Governance costs Total resources expended

Net resources

(199)

(155)

Reconciliation of Funds Total funds brought forward

3,722

181

Total funds carried forward

4,599

259 surplus

4,058 3,903 155,000

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above. The result for the year for Companies Act purposes was a surplus of £955,000 (2009 (deficit): (£155,000)) comprising the net incoming resources for the year plus realised gains on investments.

The notes on pages 26 to 32 form an integral part of these financial statements Page 23

www.maf-uk.org MAF UK Annual Report & Accounts 2010 Company Number 3473446

Balance Sheet as at 31 December 2010 2010 Unrestricted funds Note £ 000

2009

Restricted funds £ 000

Total funds £ 000

Unrestricted funds £ 000

Restricted funds £ 000

Total funds £ 000

Fixed assets Tangible assets

726

1,273

Short term deposits

1,648

259

1,907

1,716

181

1,897

Cash at bank and in hand

2,535

1,240

4,909

259

5,168

4,229

181

4,410

Current assets Debtors

Total current assets Liabilities Creditors: Amounts falling due within one year

(375)

(552)

Net current assets

4,534

259

4,793

3,677

181

3,858

Total assets less current liabilities

4,604

259

4,863

3,722

181

3,903

Creditors: Amounts falling due after one year

Net assets less current liabilities

(5)

4,599

259

4,858

3,722

181

3,903

The funds of the charity: Base reserve

3,626

2,758

Other Designated funds

973

964

4,599

3,722

259

181

4,599

259

4,858

3,722

181

3,903

Total unrestricted income funds Restricted funds

14 Total funds

Approved by the Board on 5 April 2011 and signed on its behalf by:

Roger Mitty Chairman The notes on pages 26 to 32 form an integral part of these financial statements Page 24

www.maf-uk.org MAF UK Annual Report & Accounts 2010 Company Number 3473446

Cash Flow Statement for the year ended 31 December 2010 2010

2009

£ 000

955 (15) 940

(155) (19) (174)

34 1 547 (172) 410

27 (163) (88) (224)

Reconciliation of changes in resources to net cash inflow from operating activities Note incoming / (outgoing) Net incoming / (outgoing) resources Less: investment income

Depreciation charges Loss on disposal of fixed assets Decrease / (increase) Decrease / (increase) in debtors (Decrease) (Decrease) in creditors Changes in resources

inflow Net/ (outflow) cash inflow / (outflow) from operating activities

1,350

(398)

1,350

(398)

CASH FLOW STATEMENT Net cash inflow / (outflow) from operating activities Returns on investments and servicing of finance:

(60)

(29)

Capital expenditure and financial investment: Purchase of tangible fixed assets inflow Cash / (outflow) inflow / (outflow) before increase in liquid resources

1,305

(408)

Management of liquid resources: (10)

(Increase) (Increase) in short term deposits Increase Increase / (decrease) / (decrease) in cash

(12)

1,295

(420)

1,295 10 1,305

(420) 12 (408)

Reconciliation of net cash inflow to movement in net funds Increase / (decrease) Increase / (decrease) in cash in the year outflow Cash outflow from increase in liquid resources increase Change in net funds resulting from cash flows Balance brought forward 01.01.2010 Net funds as at 1 January 2009 Analysis of net funds

Cash at bank and in hand Short-term deposits

3,137 4,442 Balance 01.01.2010 £ 000 1,240 1,897 3,137

Cash Flows £ 000 1,295 10 1,305

3,545 3,137

Balance 31.12.2010 £ 000 2,535 1,907 4,442

The notes on pages 26 to 32 form an integral part of these financial statements Page 25

www.maf-uk.org MAF UK Annual Report & Accounts 2010 Notes to the Financial Statements for the year ended 31 December 2010 1. Accounting policies In preparing the financial statements, the charity has adopted Statement of Recommended Practice (SORP 2005). As well as following applicable accounting standards, the financial statements are based on the following policies: (a) Basis of accounting The financial statements have been prepared on the historical cost convention. (b) Basis of consolidation The accounts incorporate the financial statements of the charity only as its subsidiary undertakings have immaterial assets and do not trade. (c) Funds ● General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes ● Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements ● Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements. (d) Incoming resources All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, in accordance with SORP para 127, entitlement is recognised when probate has been granted. Where valuation is possible, any such legacies receivable, but not yet received, are accrued in the financial statements. Incoming resources arise solely within the UK. (e) Resources expended ● ‘Cost of generating funds’ comprises all services supplied centrally identifiable as wholly or mainly in the support of generating income for this and future periods and include a proportion of central overhead costs ● ‘Charitable activities’ includes all costs associated with our international staff (based overseas), direct (grants) and indirect costs of our overseas operations, and the costs associated with informing and educating our Supporters here in the UK about our work Page 26

www.maf-uk.org MAF UK Annual Report & Accounts 2010 Notes to the Financial Statements for the year ended 31 December 2010 ● ‘Governance costs’ represent those costs which relate to the management of the fellowship’s assets, organisational administration and compliance with statutory and constitutional requirements ● As shown in note 4, support department costs are allocated to the above headings on the basis of pre-apportioned cost allocations. (f) Foreign currencies Foreign currencies have been translated to sterling as follows: Current assets and liabilities Other amounts

- rate as at 31 December - rate at time of transaction

All differences are charged to the SOFA. (g) Depreciation Assets with a useful economic life of more than one year and a value in excess of £500 are capitalised. Depreciation on assets is calculated as follows: Equipment and vehicles: charged to write off the expenditure over its expected useful life at 33.33% of the cost per annum. (h) Operating leases Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred. (i) Pensions MAF UK operates a 10% non-contributory defined contribution scheme for its employees. The contributions are paid monthly as they fall due. (j) Transfers between funds Transfers between the Base Reserve and other designated funds are in line with the policies as set out in note 14.

Page 27

www.maf-uk.org MAF UK Annual Report & Accounts 2010 Notes to the Financial Statements for the year ended 31 December 2010

2010

2009

£ 000

6,736 990 396 57 587 110 1,425 10,301

5,988 906 525 1,064 375 82 1,106 10,046

2010

2009

£ 000

Donations Individuals (excluding legacies) Churches Trusts Companies Governments Other Legacies

Investment income Interest receivable

Total resources expended Cost of generating funds: Voluntary income Donor acquisition Investment management Charitable activities: International Staff Overseas operations Information and education Governance costs Support departments Management and Personnel Finance and Administration

Overseas operations * grants

Unrestricted

Restricted

£ 000

sub-total Apportioned

£ 000

1,456 336 1,792

178 41 219

1,634 377 2,011

1,744 402 2,146

627 3,345 336 4,308

857 1,359 2,216

1,484 4,704 336 6,524

182 576 41 799

1,666 5,280 377 7,323

1,581 6,067 402 8,050

353 668 1,021

7,145

2,216

9,361

10,220

3,233

(353) (668) (1,021) -

8,340

3,157

Direct costs are allocated to the expenditure categories on the estimate of actual usage. Support department costs are apportioned on the basis of pre-apportioned cost allocations. Other costs include: Audit fees Operating lease rentals: Land and buildings Vehicles

£ 000 18

£ 000 17

116 12

112 10

Institutional grants totalling £3,233,000 (2009: £3,157,000) were made during the year to MAF International. Page 28

www.maf-uk.org MAF UK Annual Report & Accounts 2010 Notes to the Financial Statements for the year ended 31 December 2010

2009

£ 000

2,154 140 281 2,575

2,158 145 295 6 2,604

Number 47 33 80

Number 48 36 84

Number

Staff costs * Wages and salaries Social security costs Other pension costs Other benefits * Gross wages paid through the payroll including no expenses Average number of employees - UK Average number of employees - Overseas Employees with total remuneration and benefits in excess of £60,000: £70,000 - £80,000 Pension contributions were

2010

£ 000 7

Trustees' emoluments / transactions The Trustees neither received nor waived any emoluments during the year (2009: £NIL) Out of pocket expenses were reimbursed to Trustees as follows: 2010 Number Travel and communications

2009 Number

2010 £ 000

2009 £ 000

£NIL

£ 8,794

2010 £ 000 1

2009 £ 000 1

2010 £

2009 £

As permitted by the Memorandum and Articles, the following payments were made: E A Saunders, shareholder (Outset UK Ltd)

Trustee liability insurance The total premium paid by MAF for its Trustees 6a Transactions with former Trustees and their connected parties Former Trustee, R Mitty, was a Special Adviser from 18 December 2008 to 28 June 2010. Out of pocket expenses were reimbursed to him: Travel and communications

R Mitty, shareholder (Fundraising Research & Consultancy Ltd)

£ 27,931

149

490

£ 92,280

Page 29

www.maf-uk.org

MAF UK Annual Report & Accounts 2010 Notes to the Financial Statements for the year ended 31 December 2010 Vehicles Equipment Tangible fixed assets £ 000 £ 000

Total £ 000

Cost As at 01.01.2010 Additions Disposals As at 31.12.2010 Depreciation As at 01.01.2010 Charge for the year Eliminated on disposal As at 31.12.2010 Net Book values As at 31.12.2010 As at 31.12.2009 8

5 5

210 60 (52) 218

215 60 (52) 223

3 2 5

167 32 (51) 148

170 34 (51) 153

70 43

70 45

Debtors

2010 £ 000

2009 £ 000

23 189 152 362 726

31 594 144 504 1,273

131 37 187 20 375

141 37 311 63 552

Amounts due within one year: Other debtors Tax recoverable Prepayments Accrued income 9

Creditors: amounts falling due within one year Trade creditors Taxation and social security Other creditors Accruals and deferred income

10 Creditors: amounts falling due after one year Lease commitments 11 Financial commitments At 31 December 2010 the charity had annual commitments under non-cancellable leases as follows: 2010 Land and buildings £ 000 Expiry date: Within one year 13 Two to five years 9 Over five years 89 111

Other £ 000 3 10 13

2009 Land and buildings £ 000 15 9 89 113

Other £ 000 17 17 Page 30

www.maf-uk.org MAF UK Annual Report & Accounts 2010 Notes to the Financial Statements for the year ended 31 December 2010 12 Analysis of net assets between funds General

Designated

Total

Restricted

funds

Unrestricted

funds

£ 000

2010 Total funds £ 000

2009 Total funds £ 000

4,006 (375) (5) 3,626

70 903 973

70 4,909 (375) (5) 4,599

259 259

70 5,168 (375) (5) 4,858

45 4,410 (552) 3,903

As at

Income

Expenditure

Transfers

out

As at 31.12.10 £ 000

Fund balances as at 31 December are represented by: Tangible fixed assets Current assets Current liabilities Long term liabilities 13 Funds

01.01.10

£ 000

2,758 2,758

8,022 8,022

(6,645) (6,645)

52 52

(561) (561)

3,626 3,626

Fixed Asset Fund

214

(52)

223

Future Projects Reserve

750

(500)

500

sub-total

964

(500)

561

(52)

973

Total unrestricted income funds

3,722

8,022

(7,145)

613

(613)

4,599

181

2,294

(2,216)

3,903

10,316

(9,361)

613

General funds Base Reserve sub-total Designated funds

Restricted funds Total funds

note 14

(613)

750

259 4,858

The Base Reserve comprises risk-assessed income-stream elements to ensure that the charity can continue operations in the event of adverse or unforeseen situations. Three to six months' working capital expenditure (based on next year's budget) is considered appropriate. The Fixed Asset Fund represents the cost of equipment and vehicles used by MAF UK, purchased from unrestricted funds. The Future Projects Reserve comprises unrestricted income funds not otherwise designated and can be drawn upon at the discretion of the Trustees to enable projects to be undertaken either more quickly than otherwise would be possible, or that might not have been supported by the normal revenue income stream. The Trustees have taken a conservative view in the light of the future international and economic and currency uncertainties. The minimum value is £750,000.

Page 31

www.maf-uk.org MAF UK Annual Report & Accounts 2010 Notes to the Financial Statements for the year ended 31 December 2010

14 Restricted funds Restricted income arises where a donor has imposed a restriction as to the use of the gift. The table below summarises, by major category of restriction, the opening balance, income, expenditure and closing balance for each restricted fund. As at 01.01.2010 £ 000

Income £ 000

Expenditure £ 000

As at 31.12.2010 £ 000

Fund category: MAF International aircraft projects MAF International non-aircraft projects MAF International staff

51 1,008 1,059

(5) (1,008) (1,013)

46 46

MAF Australia MAF Canada MAF Germany MAF Netherlands MAF New Zealand MAF South Africa MAF Sweden MAF Switzerland MAF USA

47 24 1 7 1 22 244 346

(47) (24) (1) (7) (1) (22) (244) (346)

1,405

(1,359)

181

889

(857)

213

181

2,294

(2,216)

259

MAF UK International Staff

Page 32