Report and financial statements 2011 by MAF UK

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

Company number: 3437446

Registered Charity Number 1064598 in England and Wales Scottish Charity Number SC039107

Report and financial statements for the year ended 31 December 2011

www.maf-uk.org MAF UK Annual Report & Accounts 2011

Contents Page 1-2 3

4 5 6 7 8 9 11 12 13 14

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18 19 20-21 22 23 24 25-31

Message from the Chairman and the Chief Executive Report of the Trustees Public benefit Operational impact Reaching unreachable people Powerful partnerships Flying physical aid for physical need Disaster response Saving time - saving lives Ensuring safe travel Supporting Church growth and development Building God’s Kingdom Empowering communities: building futures Objectives and activities for 2011 Conclusion for 2011 Future plans Our top five objectives for 2012 Financial review Reserves policy Principal funding sources Investment powers and policy Structure, governance and management Governing document Appointment of Trustees Trustee induction and training Organisational structure Related parties Internal controls Risk management Trustees’ responsibilities in relation to the financial statements Provision of information to auditors Legal and administrative information Independent Auditor’s report Statement of Financial Activities Balance Sheet Cash Flow Statement Notes to the Financial Statements

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Message from the Chairman and Chief Executive As we review 2011, we are immensely grateful for the generosity of the many thousands of people who supported our work through their time, prayer, money and energy. Thanks to a growing number of loyal Supporters, funds continue to be raised and released, new airstrips opened, lives saved and transformed in Jesus’ Name. The strength of the support is reflected in the highest annual income reported to date (£11.4m), at a time when many charities are reporting dramatic falls in funding. Looking back at all the blessings we received, we also praise God for the 33 UK families serving overseas and the 50,000 flights made in 2011. These provided essential help to hundreds of communities and thousands of lives in some of the world’s most vulnerable, inaccessible and isolated places. Able to help in time of need With bases in 33 countries across the developing world, and the ability to fly into another 9 countries, MAF is well positioned to reach out to people living in isolation and poverty and provide the help so desperately needed. Our programmes are based where the needs are greatest, and many have been operating for decades. In response to the famine in East Africa, we transferred an aircraft and personnel from South Africa to Nairobi, to join the 6 planes in our Kenyan fleet. These were deployed to meet the needs of over 50 aid agencies, missions and charities working in Dadaab, home to nearly half a million refugees. Here in the UK, we launched the East Africa Prayer Movement and our Supporters generously gave nearly £1 million to finance our flights to that region. Significant anniversaries 2011 was a year of significant anniversaries. We celebrated 60 years of MAF service in Papua New Guinea (PNG) and 50 years in the Democratic Republic of Congo (DRC). As we recall how the work in both countries has grown, as it has in the other nations in which we work, we thank the Lord for all He has done over so many years. Historic changes 2011 was the year South Sudan became the world’s newest country, following elections which resulted in independence from the North. We continue to work closely with relief and development agencies, churches and missions to support people in South Sudan at this time of historic change. We also witnessed the peaceful Ugandan elections at the beginning of the year, and the less peaceful presidential and parliamentary elections in DRC at the end of 2011 – our planes remaining on standby so we could evacuate partners if the need arose.

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 Long-term commitment MAF’s long-term involvement is only possible because of the dedication of our staff and the commitment of our Supporters who come alongside us financially, stand with us faithfully in prayer, and serve voluntarily in numerous ways. Reports from our staff and partners in countries like Bangladesh, Chad, Kenya, Madagascar, Mongolia, Papua New Guinea, South Sudan and many others demonstrate how that commitment is outworked. They testify that our planes and staff have enabled lives to be saved, isolated people to be supported, vital food, supplies and medicines to be transported, relief and development work sustained, the Gospel preached, Christian love expressed, churches strengthened, believers encouraged, disciples nurtured, local communities helped and many thousands to receive essential medical care. Some examples of these are included in the Trustees’ Report.

Providing resources We give thanks to God for His provision during 2011 of: • • • • • • • •

More than £11 million of income £2 million received from legacies £919,000 for our East Africa campaign A five-year grant from the Department for International Development for work in Bangladesh 9,312 new Supporters Nearly 500 churches taking part in our Day of Prayer Over 1,000 new regular givers MAF Volunteers who made over 1,000 presentations at churches and events.

To all who played a part in making our work known or who, through prayer, support and practical help, have enabled isolated people to be physically and spiritually transformed throughout 2011, we give our heartfelt thanks.

Roger Mitty Chairman of Trustees

Ruth Whitaker Chief Executive

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 Report of the Trustees for the year ended 31 December 2011 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 2011. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP 2005) ‘Accounting and Reporting by Charities’ issued in March 2005 (as amended) and the Charities Act 2011 in preparing the Annual Report and financial statements of the charity. Public benefit The Trustees 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 reach people living in some of the most isolated parts of the world. In many countries, insecurity can render road travel highly dangerous. MAF’s fleet of light aircraft enables access to remote communities, connecting those in need with those that can help. Even in places where it is safe to travel, there may be no roads or, if roads exist, they can become impassable for months at a time due to adverse weather conditions such as heavy flooding. The following examples of our work demonstrate how the public benefit is delivered. Operational impact Our mission is to reach the unreachable in some of the world’s most remote and isolated areas: places where people are cut off due to geographical barriers, conflict, or the risks incurred by overland travel. During 2011, our flights continued to enable our 1,400 partners to overcome these challenges, and gain access to people in spiritual and physical need. Reaching unreachable people Countries such as PNG have heavily mountainous areas with few roads to connect towns with rural communities. The only way villagers can reach the outside world is by trekking long distances. In other countries, deserts, jungles and swamps create impassable barriers. Our planes enabled isolated people to access medical services, education, the basic necessities of life and the Gospel. Throughout 2011, our pilots were busy transporting elderly and sick people in some of the world’s most remote or inaccessible areas:

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 •

In Bulgan Sum, Mongolia, a vast country with extreme weather conditions and little infrastructure, we provided urgent assistance for many. This included women facing difficult pregnancies, victims of car and motorcycle accidents, elderly people who could barely walk, patients with severe back injuries and a mother and her ailing two-week-old baby.

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Thanks to a new airstrip opening at Pyrulama, PNG, even more remote villagers can now access medical services. ‘Before the airstrip,’ a community leader said, ‘we’d spend four days carrying men to the hospital. But women who had trouble in childbirth died before we got there.’ The airstrip’s completion couldn’t have come soon enough. Days before the official opening, pilot Nick Swalm made his fourth medical emergency flight from Pyrulama. His passengers, four women with pregnancy complications, reached the hospital in time and fully recovered. Like the people of Ibba, South Sudan and Ilembula, Matemanga and Ngwala, Tanzania, who in 2011 benefited from new, reopened or newly reconditioned airstrips, Pyrulama’s people can now radio for help and no longer have to suffer the tragedy of friends and relatives dying unnecessarily.

Powerful partnerships MAF works in partnership with isolated communities and those seeking to assist them by enabling access to people and places our partners would otherwise struggle to reach. •

MAF pilots from Kenya and Uganda flew five tons of food and supplies to malnourished families living in remote communities in South Sudan. This included a few hundred kilos of the high-energy Plumpy’nut food bar for Save the Children to distribute.

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MAF planes helped to overcome the problems caused by the frequent cyclones and floods afflicting Bangladesh by enabling embassies, NGOs and UN officials to visit and assess projects like Friendship’s floating hospital. We also flew HRH Princess Anne to visit projects funded by Save the Children in the cyclone-affected areas of Gabura and Chila Bazar. The Princess was intrigued by our amphibian aircraft, remarking to pilot Chad Tilley, ‘What a great tool to help a country with so much water’.

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Others flown included the Minister for Food and Disasters, who visited a project funded by ECHO-EFSL (Food and Shelter); UK International Development Minister Alan Duncan and DfID’s Bangladesh Country Director, Chris Austin, who flew to a DfID supported project in Raidashbari, which helps people living on the chars (islands in the river) to have a better life.

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 Flying physical aid for physical need One of the ways Jesus expressed love and compassion for people was by meeting their physical needs. MAF seeks to do the same, using aircraft to reach out to people – flying into remote locations where people’s poverty is compounded by their isolation. •

Our medical safaris in Madagascar, a joint operation between MAF and HoverAid, resulted in 5,280 patients in remote areas receiving treatment from medical teams.

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MAF planes flew 750kg of medicines and medical supplies from Kampala, Uganda to Juba in South Sudan, when a hospital was unable to obtain medicines from its normal supplier. Our flights meant that basic operating facilities could be put swiftly back into action.

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In Garissa, Kenya, pilot David Pearce flew in enough food to feed 120 households for two weeks when the International Christian Fellowship in Nairobi, in partnership with Convoy of Hope, raised 400,000 Kenyan shillings for food aid.

Disaster response Serving in over 30 countries, many of which are prone to natural disasters, MAF is ideally placed to respond swiftly when crises occur. MAF’s extensive experience of emergency situations, combined with its knowledge of the local language and culture, enables MAF planes and personnel to make a significant contribution in times of disaster. MAF aircraft are able to fly partner organisations into locations within hours of disaster striking, or to the heart of a problem in a matter of minutes rather than the hours involved in overland travel, enabling informed action plans to be developed quickly – saving precious time and precious lives. •

Since July 2011, we have been flying aid workers into northern Kenya, Somalia and Ethiopia to help relieve the suffering of those affected by the East Africa famine. With our Kenya operation overloaded with requests to meet the needs of organisations working at the Dadaab refugee camp, we transferred a Cessna Grand Caravan aircraft from our South Africa base. The aircraft made an immediate difference to the work of organisations like Bridge of Hope, Canadian Baptist Ministries, Catholic Relief Services, Concern Worldwide, Goal Ireland, Handicap International, Norwegian Refugee Council, Operation Blessing, Tearfund and World Vision.

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We flew Martin, UNICEF’s Kenya office crisis consultant, to Marsabit for meetings with officials from public health, district water and sanitation departments to assess the effects of repairing boreholes. We also flew Adam,

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 an hydraulics specialist working for Samaritan’s Purse. He later told pilot Marco Koffeman how grateful he was to us as, two weeks earlier, he had nearly lost his life on the dangerous roads in the Dadaab area. Saving time – saving lives In many developing countries, the roads, where they exist, are often poorly maintained. Distances are immense and the time it would take to drive overland across bumpy dirt track roads or travel by canoe or boat can prevent people from reaching medical care in time. Our planes enable the ill and the injured to travel vast distances in a fraction of the time it would take them to go by other means. MAF also enables doctors to establish outreach clinics in remote locations, without the need to make dangerous or timeconsuming journeys. •

When a man in Chittagong, Bangladesh phoned us because his two-monthold baby was suffering from septicaemia, we were able to fly the child to Dhaka in 50 minutes. The father thanked us for saving his baby’s life.

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In PNG, a lady was bitten by a snake and MAF staff carried her to the waiting plane. ‘It was clear,’ says Dr Daniel Priest, ‘that Ally was very unwell, almost completely paralysed from the venom. It’s hard to say, but I don’t think she’d have been alive if we’d landed 20 minutes later.’ Pilot Matt Painter dropped Dr Daniel back at Rumginae Hospital, and started his usual run. An hour later, he travelled to Balimo to fly a young lady who’d been trying to deliver her first baby for over 24 hours and needed a caesarean. Close to midnight, the baby boy was delivered. ‘Three lives saved with one plane in one day,’ comments Dr Daniel, who ‘praises God for our partnership with MAF.’

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Emergency flights in Chad included a lady who was badly injured in a road accident and a knife-attack victim with a punctured lung. Although the flight took only 35 minutes, it saved the man a bumpy 7-hour drive, which would probably have cost him his life.

Ensuring safe travel Overland travel to many of the places we fly is dangerous. Some communities are isolated due to the sheer challenge of crossing formidable terrain – with travel almost impossible except by foot. Other communities are cut off due to civil unrest, where overland travel is accompanied by the risk of violent attack and lost lives. In many places, inadequate vehicle maintenance and poor driving skills dramatically increase the risk of traffic accidents and fatalities. •

We flew a woman to Dhaka, Bangladesh, who was having problems with her pregnancy and couldn’t travel by road. Thanks to our plane, and some successful surgery, she gave birth to a healthy baby. On another occasion, pilot Emil Kündig braved thunderstorms to fly a man back to Dhaka for an

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 emergency five-hour operation. The patient, a teacher from New Zealand, eventually recovered. Supporting Church growth and development At the heart of MAF lies our Christian faith and values. These determine our mission and provide the motivation for everything we do. We are therefore committed to strengthening and supporting the Church through our staff and by partnering with Christian missions. •

In South Sudan, we supported Church growth and development by flying members of Flame International to Nzara, Maridi, Kajo Keji and Lainya, where they trained local ministry teams and held a three-day convention in each destination – praying and sharing the Gospel. The Flame International team gave ‘grateful thanks to MAF, who ensured we were in the right place at the right time’ and reported that there were miracles of ‘healing in body, soul and spirit’, with over 250 people accepting Christ.

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In Madagascar, we flew Leoni and Joanne, revision translators for the Gospel of Luke and the Jesus film from Wycliffe Bible Translators, over mountains, jungles and swamps to three remote villages, where they met Malagasy translation team members, a pastor and his wife who distribute their work through local networks, and some potential new translators.

Building God’s Kingdom In isolated communities, MAF flights act as a catalyst, enabling the Gospel to reach those who wouldn’t normally be able to hear it, and transporting Christians to areas where they can minister healing and forgiveness. MAF flights also enable medical clinics to be established in remote areas, with evangelism often following. •

In PNG, our staff took part in the evangelistic Barnabas Tour. Many local people renewed their commitment to the Lord or came to know Him for the first time. We also flew gospel singer Steve Grace and his team to Goroka and Ukarumpa for additional evangelistic concerts and events.

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In Arnhem Land, Australia, evangelistic outreaches resulted in many aborigines deciding to follow Jesus. At Easter, MAF staff and Yolŋu for Jesus members showed portions of a DVD featuring The Good News in the Gumatj language; bringing the Gospel to ten remote communities in their own language. MAF staff also joined Yolŋu for Jesus for a three-day outreach to Milingimbi, where 150 people, over 10% of the island’s population, attended the final rally.

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In Kenya, our planes flew a team from Shalom Centre for Conflict Resolution and Reconciliation from Nairobi to Moyale. They ran a number of peace and reconciliation workshops in scattered communities where the two main people

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 groups frequently raided each other for cattle, killing each other in the process. The team presented them with concepts such as grace, forgiveness, mercy and justice. •

We also flew Archbishop Dr. Rowan Williams, the Archbishop of Canterbury, to the dedication of a newly constructed cathedral in Kajo Keji, South Sudan, and to the DRC as part of his 2011 African tour.

Empowering communities: building futures The ability of many communities to improve their standard of living is hampered by their isolation, which prevents them from receiving healthcare, education and from engaging with the wider economy. MAF comes alongside communities and helps to support their development through flying building or educational materials in, or transporting goods to market so that villagers can earn an income and support their families. •

In PNG, we assisted community development by flying coffee beans to market. Allocating a day for a village, we flew in and out as many times as we could. Pilot Brad Venter says, ‘The communities are so glad when we give them attention like this as they sometimes have to wait months to get their coffee out, and this is their main source of income. We can only carry about 35 coffee bags at a time and they typically have at least 1,000-2,000 bags waiting to be flown! As I was leaving the base, a guy shouted out, “Thanks for all the flying you did for us!”’ MAF planes also enabled the Department of Agriculture from Kiunga in PNG to fly building materials and garden equipment to Mougolu to encourage remote communities to grow vanilla as a cash crop. Although the vanilla pods are grown in remote communities, their value is still high enough to give a good return after being transported to market by air.

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In South Sudan, our planes helped bring a new electricity supply to Kapoeta, providing households with access to lighting and refrigeration. The new electrical system was opened by officials from the Government of South Sudan, USAID and NRECA, the National Rural Electric Co-operative Association. MAF planes flew several NRECA staff in to oversee construction and train local people to administer the new utility effectively.

These and many other projects have been made possible by our individual Supporters and with grants from governments and institutions, including: • • • • • •

AFD Software Ltd Department for International Development Guernsey Overseas Aid Commission Jersey Overseas Aid Commission The Isle of Man Government The Maurice and Hilda Laing Charitable Trust

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 Objectives and activities for 2011 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 by providing practical help and real hope. The main purpose and activity of MAF continues to be the provision of subsidised, safe and secure aviation services in parts of the world where travel by road is impossible, unsafe or too slow to reach isolated places. Christians with a 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 2011, all charities were conscious of the economic uncertainty in the UK and Europe. Overseas charities were also challenged by the 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 main objective for 2011 was to meet these growing needs through prayerful support and to continue to recruit new Supporters and much-needed staff for our overseas work. A further objective was to recruit additional members for our UK team. Specifically, the objectives for 2011 were: •

Value and retain our Supporters through communications, care and an increased understanding of their interests and concerns. Research undertaken in 2011 has highlighted areas where we can increase our effectiveness in communicating with those who support our work. This research is forming our strategy for 2012 and beyond, including how MAF looks and how we present our overseas work online, in print and in churches and groups throughout the UK and Ireland.

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Create and progress new plans for raising the profile of MAF in the UK, including growing our Volunteer Team, developing online marketing and creating new communication materials. In 2011, our work was featured in airports, churches, flying clubs and business groups across the UK and Ireland. With over 1,000 presentations made to churches and groups, a 50% increase in online activity and our new ‘Precious Cargo’ campaign materials, our plan to raise our profile in 2011 was successful.

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Increase income, focusing on committed giving by new and existing Supporters. MAF has experienced God’s great blessing – our committed giving increasing from £2.5m to £2.7m. More than 12,000 Supporters now contribute by direct

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 debit or standing order and many have increased their giving. This enables MAF to plan even more effectively how funds are applied overseas. •

Strengthen our prayer support, including the Day of Prayer, online prayer materials and prayer updates. With nearly 500 churches using our ‘To the Ends of the Earth’ Day of Prayer materials and DVD, thousands joined our Day of Prayer. The crisis in East Africa enabled us to use our website, email, Facebook and Twitter to great effect, stimulating prayer by disseminating helpful information and enabling people to write their own prayers on our prayer wall.

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Develop our overseas recruitment strategy. Development of a new recruitment strategy was begun to meet the everincreasing needs for skilled personnel, from finance managers to engineers and pilots. We are beginning to see an increased interest from people wanting to serve in our overseas programmes.

The MAF Team in the UK MAF in the Community highlights Our team of dedicated Volunteers continued to be very active across the UK, raising awareness of the work through audio-visual 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

2011 117 48 14 451 166 155 40 15 14

2010 113 57 15 415 169 155 35 16 12

The Volunteer team took over 1,000 meetings which varied in size from small gatherings to conferences. The MAF Roadshow attended several major Christian conferences, including Faith Camp and Wye Valley Christian Conference. Our Youth team also attended Soul Survivor, and attracted a great deal of interest in our work. The Annual Day of Prayer took place over a two-week period in October, allowing participants to choose the most suitable day for them and many churches and individuals requested the Day of Prayer pack.

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 Events in Scotland 2011 was a busy year for MAF in Scotland, with our usual strong presence at Christian events. These included Praise Gathering in Edinburgh and Glasgow, Keswick in Buckie and Resurrection Day in Dundee. It was also great to be part of the Leuchars Air Show with the exhibition truck in September. We also introduced several new events, with a series of three Roadshows with a strong focus on our Kenya and South Sudan operations helping us to connect with our Supporters. Funds raised by these events were matched by a major donor and enabled a new four-wheel drive vehicle to be purchased for Lokichoggio, Kenya. In August, we partnered with the Raven Trust in a cycling event which attracted new Supporters and raised funds for our work. The major event of the year, Running the Race, was a sponsored 10K race and fun day organised by MAF and some of our mission partners, which was a great way to connect with younger people. International staff MAF UK currently has 33 staff, accompanied by their families, based overseas. Their support levels remained high throughout 2011 due, in part, to good communication with their Supporters. During the year, we began to develop an International Recruitment Strategy and several new initiatives were implemented. We are encouraged that we had a much higher number of candidates in the latter stages of assessment for service in the Africa and Asia Pacific regions; our 11 candidates representing roles ranging from pilot, engineer trainee to management. Some 350 people received our monthly vacancy bulletin, with an average of 15 initial enquiries coming in each month. From these initial approaches, we were encouraged by the large number of 56 registered enquirers actively considering service with MAF overseas. Conclusion for 2011 In addition to everything we planned to achieve, we were overwhelmed by the generous response of over £919,000 given as a result of the East Africa campaign. Due to the scale of the disaster, our teams in East Africa utilised – and continue to utilise – every available aircraft, pilot and opportunity to reach those affected by the drought and conflict. As we continue to reflect on the great blessings God has given us through our Supporters and overseas teams, we give thanks for every gift, prayer, enquiry and hour of time given by our Volunteers and teams throughout the year.

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 Future plans We believe that every community, however remote, should have the essentials for life. Our vision therefore is to see ‘isolated people physically and spiritually transformed in Jesus’ name’. We remain committed to holistic mission and focus on both the physical and spiritual needs of men, women and children around the world. In order to meet both the new challenges and the on-going needs caused by poverty, conflict, isolation and disasters, we have begun to develop a Supporter and Fundraising Strategy, to enable us to increase our income in order to sustain and increase our work overseas, a Prayer Strategy and an Overseas Recruitment Strategy. These will take us through the next few years as we seek to provide for our overseas programmes and so we can continue to see lives transformed through God’s grace. Our top five objectives for 2012 are: 1. To resource extra capacity of the operational base in South Sudan so that the rapidly growing needs can be met 2. To fund all planned operations through fundraising activities 3. To recruit staff to meet all overseas team needs expected from the UK 4. To recruit new Supporters to enable even more people to be served into the future 5. To complete the development of Prayer, International Recruitment and Fundraising strategies to ensure the ongoing effectiveness and efficiency of all we do.

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 Financial review Five-year history Income and expenditure £000 Income Unrestricted donations Legacies Investment income International staff support Other restricted income: Aircraft Fuel East Africa campaign Other Total income

2007

2008

2009

2010

5,441 1,707 209 892

5,606 1,579 135 900

5,971 1,106 19 871

242 1 663 9,155

25 1,430 857 10,532

1,137 51 4 44 80 13 919 917 1,265 1,191 10,065 10,316 11,383

1,797

2,028

2,146

2,011

2,185

6,232 342

7,721 -

8,050 -

7,323 -

7,471 -

*2,089

8,663 21 10,481

7,721 23 9,772

8,050 24 10,220

7,323 27 9,361

7,471 25 9,681

Net incoming / (outgoing) (1,326) 760 (155) 955 resources Net incoming / (outgoing) resources excluding charitable activities 763 760 (155) 955 funded from designated reserves * This substantial sum was used to fund projects in addition to the budget.

1,702

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

6,591 1,425 15 889

2011 6,142 2,301 17 796

1,702

Page 22 sets out the Statement of Financial Activities for MAF UK for the year. The income for the year (Total Incoming Resources) was £11.4m, of which 99% was voluntary income including restricted gifts (2010: £10.3m; 99%). The benefits of tax-efficient giving were again increased through the securing of a further 3,359 Gift Aid Declarations during 2011 (2010: 4,064), bringing the total number of on-going Declarations to 37,014 (2010: 35,792). Tax claimed on 2011 gifts amounted to £855,628 (2010: £829,737). Investment income remained depressed at £17k (2010: £15k), mainly as a result of the lower rates of interest that are affecting everybody.

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 During the year, the sum of £1,384,000 (note 4) was paid in staff support to 28 staff (note 5) (individuals/families) from the UK serving overseas (2010: £1,484,000 to 33 staff individuals/families). In addition, unrestricted grants of £2,536,000 (note 4) and restricted income of £2,203,000 (note 13) totalling £4,739,000 (2010: £4,638,000*) were passed to sister MAF groups worldwide, primarily to assist in the provision of mission aviation (*2010: unrestricted grants of £3,233,000 and restricted income of £1,405,000). The assets and liabilities of MAF UK are set out in the Balance Sheet (page 23). 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% (2010: 99%) of total incoming resources. Of this, legacy income amounted to 20% (2010: 14%). Investment powers and policy The investment powers of the Trustees are as set out in the Memorandum of Association.

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 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 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 new Members Phil Bland and Linda Trew. The Board also expressed their thanks and said goodbye to Alan Devereux after nine years of service to MAF UK, including three as Chairman. 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 MAF UK Governance Manual containing items such as the Memorandum and Articles and recent annual and management accounts as well as a copy of CC3 The Essential Trustee. 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. Following a thorough review, the Board governance structures were revised during the year to include the following subcommittees: • Finance and Risk Subcommittee • Fundraising and Communications Subcommittee • People and Prayer Subcommittee

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 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. 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 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 • annual completion of the Charity Commission’s Internal Financial Controls for Charities Checklist (CC8).

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www.maf-uk.org MAF UK Annual Report & Accounts 2011 Risk management The Trustees are responsible for setting the tone and influencing the culture of risk management within MAF UK. As part of discharging their responsibilities the Trustees have: •

established a risk register and risk management strategies that identify the types of risk faced and prioritising them in terms of potential impact and likelihood of occurrence, and identifying means of managing them. The risks and the risk management strategies are periodically reviewed by both the Senior Leadership Team and the Board of Trustees. The risks are classified into the following groupings: o Reputation o Strategic o Governance o Operational o Health and safety o Financial o Legal

•

established a regular review of the adequacy of the charity’s current internal controls. The Trustees are pleased to report that the charity’s internal financial controls conform to guidelines issued by the Charity Commission.

•

adopted a range of risk management policies including: o Recruitment o Fraud o Whistleblowing o Conflicts of interest (Declaration of interest) o Bribery (in development)

The major risks are assessed as those most impacting on our fundraising capabilities including: • 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 applicable law and regulations.

Page 17

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit 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 state whether applicable UK 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 on-going 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 18

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Legal and administrative information Trustees Roger Mitty MInstF MIPA Chairman Andrew Cunningham MSc BSc (Hons) John B Quin OBE FCMA Rev Anthony Buckley MA (Oxon) Alan R Devereux CBE DL (to 16.06.11)

Dr Ian Harnett DPhil (Oxon) Stephen Lockley FCA BSc (Hons) John Steel QC Phil Bland MBE MInstMC (from 16.06.11) Linda Trew PgDip MInstF(Cert) (from 16.08.11)

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 Anthony Collins Solicitors LLP, 134 Edmund Street, Birmingham, B3 2ES 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 3 April 2012. Roger Mitty (Chairman)

Page 19

www.maf-uk.org MAF UK Annual Report & Accounts 2011 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 2011 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 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 auditor As explained more fully in the Trustees’ Responsibilities Statement (set out on pages 17 and 18), the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm. Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the charitable company’s affairs as at 31 December 2011 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

Page 20

www.maf-uk.org MAF UK Annual Report & Accounts 2011 • •

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 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.

Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: • the charitable company has not kept proper and adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit.

Don Bawtree Senior Statutory Auditor for and on behalf of BDO LLP, Statutory Auditor Epsom, United Kingdom Date: 3 April 2012 BDO LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

Page 21

www.maf-uk.org MAF UK Annual Report & Accounts 2011

Statement of Financial Activities (incorporating and Expenditure Account) SumanofIncome ty Sum of ty

Sum of ly

for the year ended 31 December 2011 2011

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

Investment income

2010

Unrestricted funds

Restricted funds

Total funds

Unrestricted funds

Restricted funds

Total funds

£ 000

6,142 2,271 8,413

2,127 796 30 2,953

8,269 796 2,301 11,366

6,591 1,416 8,007

1,396 889 9 2,294

7,987 889 1,425 10,301

8,430 2020.00%

Total incoming resources

2,953 #######

11,383 11.4

8,022 1380.00%

2,294 #######

10,316 10.3

Resources expended Cost of generating funds

2,185

2,011

Charitable activities

4,504

2,967

7,471

5,107

2,216

7,323

6,714

2,967

9,681

7,145

2,216

9,361

Governance costs Total resources expended

Net resources

1,716

(14)

1,702

877

955

3,903

Reconciliation of Funds Total funds brought forward

4,599

259

4,858

3,722

181

Total funds carried forward

6,315

245 surplus

6,560 #######

4,599

259 surplus

4,858 955,000

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 £1,702,000 (2010: £955,000) comprising the net incoming resources for the year plus realised gains on investments. The notes on pages 25 to 31 form an integral part of these financial statements. 1,702,000

955,000

Page 22

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Company Number 3473446

Balance Sheet as at 31 December 2011 2011

2010

Unrestricted funds

Restricted funds

Total funds

Unrestricted funds

Restricted funds

Total funds

Note

£ 000

108

638

726

Short term deposits

1,755

245

2,000

1,648

259

1,907

Cash at bank and in hand

4,466

2,535

6,859

245

7,104

4,909

259

5,168

Fixed assets Tangible assets

Current assets 8

Debtors

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

(652)

(375)

Net current assets

6,207

245

6,452

4,534

259

4,793

Total assets less current liabilities

6,315

245

6,560

4,604

259

4,863

6,315

245

6,560

4,599

259

4,858

Creditors: Amounts falling due after one year

Net assets less current liabilities

(5)

The funds of the charity: Base reserve

5,283

3,626

Other Designated funds

1,032

973

6,315

4,599

245

259

6,315

245

6,560

4,599

259

4,858

Total unrestricted income funds 14

Restricted funds

Total funds

Approved by the Board on 3 April 2012 and signed on its behalf by:

Roger Mitty

Stephen Lockley

Chairman

Treasurer The notes on pages 25 to 31 form an integral part of these financial statements. Page 23

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Company Number 3473446

Cash Flow Statement for the year ended 31 December 2011 2011 £ 000

2010 £ 000

Reconciliation of changes in resources to net cash inflow from operating activities Note incoming

Net incoming resources Less: investment income

1,702

(17) 1,685

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

inflow Net cash inflow from operating activities

37 88 272 397

955 (15) 940

34 1 547 (172) 410

2,082

1,350

2,082

1,350

(75)

(60)

CASH FLOW STATEMENT Net cash inflow from operating activities Returns on investments and servicing of finance Capital expenditure and financial investment: Purchase of tangible fixed assets

inflow Cash inflow before increase in liquid resources

2,024

1,305

Management of liquid resources: (Increase)

(93)

(Increase) in short term deposits

Increase Increase in cash

(10)

1,931

1,295

1,931 93 2,024

1,295 10 1,305

4,442

3,137

6,466

4,442

Reconciliation of net cash inflow to movement in net funds Increase outflow increase

Increase in cash in the year Cash outflow from increase in liquid resources Change in net funds resulting from cash flows Balance brought forward 01.01.2011 Net funds as at 31.12.2011

Analysis of net funds

Balance £ 000

Cash flows £ 000

2,535 1,907

1,931 93

4,466 2,000

4,442

2,024

6,466

01.01.2011 Cash at bank and in hand Short-term deposits

Balance 31.12.2011

£ 000

The notes on pages 25 to 31 form an integral part of these financial statements. Page 24

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Notes to the Financial Statements for the year ended 2011 1.

Accounting policies In preparing the financial statements, the charity has adopted the 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 ●

●

(d)

General funds (Base Reserve) 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.

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 includes 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 25

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Notes to the Financial Statements for the year ended 2011

(f)

●

‘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.

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 .

(k)

Restatement of comparatives Following a reclassification of certain internal costs, minor changes are shown to the 2008 disclosures reflecting a constant method of apportionment.

Page 26

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Notes to the Financial Statements for the year ended 31 December 2011

2010

£ 000

6,829 953 717 100 210 155 365 101 2,301 11,366

6,736 990 396 57 195 392 587 110 1,425 10,301

2011

2010

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

2011

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

Sub-total

Apportioned

£ 000

1,571 363 1,934

204 47 251

1,775 410 2,185

1,634 377 2,011

627 2,657 364 3,648

764 2,203 2,967

1,391 4,860 364 6,615

180 629 47 856

1,571 5,489 411 7,471

1,666 5,280 377 7,323

368 742 1,110

6,714

2,967

9,681

9,361

2,536

#######

8,571

3,233,000

3,233

(368) (742) (1,110) -

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

2011 £ 000 18

2010 £ 000 18

115 9

116 12

Institutional grants totalling £2,536,000 (2010: £3,233,000) were made during the year to MAF International. Page 27

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Notes to the Financial Statements for the year ended 31 December 2011

2010

£ 000

2,112 140 235 2,487

2,154 140 281 2,575

Number 50 28 78

Number 47 33 80

Number

Staff costs * Wages and salaries

Social security costs Other pension costs * 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 6

2011

£ 000 7

Trustees' emoluments / transactions The Trustees neither received nor waived any emoluments during the year (2010: £NIL) Out of pocket expenses were reimbursed to Trustees as follows: 2011 2010 Number Number Travel and communications

Trustee liability insurance The total premium paid by MAF for its Trustees

2011 £ 000

2010 £ 000

2011 £ 000 1

2010 £ 000 1

6a Transactions with former Trustees and their connected parties

2011 2010 £ £ From 18 December 2008 to 28 June 2010 R Mitty stepped down as trustee and was appointed Special Adviser to the Board. During that time: Out of pocket expenses were reimbursed to him: Travel and communications

£NIL

R Mitty, shareholder (Fundraising Research & Consultancy Ltd)

£NIL

£ 27,931

149

Page 28

www.maf-uk.org

MAF UK Annual Report & Accounts 2011 Notes to the Financial Statements for the year ended 31 December 2011 Vehicles Equipment Tangible fixed assets £ 000 £ 000

Total £ 000

Cost As at 01.01.2011 Additions Disposals As at 31.12.2011 Depreciation As at 01.01.2011 Charge for the year Eliminated on disposal As at 31.12.2011 Net Book values As at 31.12.2011 As at 31.12.2010 8

5 5

218 75 (16) 277

223 75 (16) 282

5 5

148 37 (16) 169

153 37 (16) 174

108 70

Debtors

2011 £ 000

2010 £ 000

38 84 143 373 638

23 189 152 362 726

147 40 337 128 652

131 37 187 20 375

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 2011 the charity had annual commitments under non-cancellable leases as follows: 2011 Land and buildings £ 000 Expiry date: Within one year 12 Two to five years 8 Over five years 89 109

Other £ 000 3 3

2010 Land and buildings £ 000 13 9 89 111

Other £ 000 3 10 13 Page 29

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Notes to the Financial Statements for the year ended 31 December 2011 12 Analysis of net assets between funds Base Reserve £ 000

Designated funds £ 000

Total Unrestricted £ 000

Restricted funds £ 000

2011 Total funds £ 000

2010 Total funds £ 000

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

5,935 (652) 5,283

108 924 1,032

108 6,859 (652) 6,315

245 245

108 7,104 (652) 6,560

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

As at 01.01.11 £ 000

Income

Expenditure

£ 000

Transfers in £ 000

Transfers out £ 000

As at 31.12.11 £ 000

3,626

8,430

(6,714)

(75)

5,283

Fixed Asset Fund

223

(16)

282

Future Projects Reserve

750

973

(16)

1,032

4,599

8,430

6,714

(91)

6,315

259

2,953

(2,967)

4,858

11,383

(9,681)

13 Funds

Base Reserve Designated funds

sub-total Total unrestricted income funds Restricted funds Total funds

note 14

(91)

750

245 6,560

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 30

www.maf-uk.org MAF UK Annual Report & Accounts 2011 Notes to the Financial Statements for the year ended 31 December 2011

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 01.01.2011 £ 000

As at 31.12.2011 £ 000

Income £ 000

Expenditure £ 000

46 46

4 1,961 84 2,049

(50) (1,961) (84) (2,095)

42 20 1 7 3 35 108

(42) (20) (1) (7) (3) (35) (108)

2,157

(2,203)

213

796

(764)

245

259

2,953

(2,967)

245

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

3420aus Aus MAF Australia 3420can Can MAF Canada 3420ger Ger MAF Germany 3420net Net MAF Netherlands 3420sa SA MAF South Africa 3420usa Usa MAF USA

MAF UK International Staff

Page 31