Annual Report 2019-2020 by Salvation Army IHQ

THE SALVATION ARMY

WORLDWIDE FACTS & FIGURES GENERAL INFORMATION Countries and territories where SA serves 131 Corps, outposts, societies, new plants and recovery churches 14,588 Goodwill centres 74 Officers 27,177 Active 17,133 Retired 9,989 Auxiliary-captains 400 Envoys/sergeants/non officer personnel, full-time 940 Cadets 1,040 Employees 107,245

THE SALVATION ARMY MEMBERSHIP Senior soldiers 1,231,838 Adherents 174,815 Junior soldiers 394,990

CORPS PROGRAMME Senior band musicians 27,427 Senior songsters 132,553 Other senior musical group members 111,102 Senior and young people’s local officers 160,662 Women’s Ministries (all groups) members 827,686 League of Mercy – members 206,168 SA Medical Fellowship– members 52,357 Over-60 clubs – members 60,234 Men’s fellowships – members 106,490 Young people’s bands – members 16,460 Young people’s singing companies – members 101,166 Other young people’s music groups – members 181,357 Corps cadets 40,902 Sunday schools – members 756,487 Junior youth groups (scouts, guides, etc, and clubs) – members 256,463 Senior youth groups – members 469,496 Parent and toddler groups 816 Capacity 79,543 Corps-based community development programmes 7,124 Beneficiaries/clients 1,783,055 Thrift stores/charity shops (corps/territorial/social) 2,289 Recycling centres 24

SOCIAL PROGRAMME Residential Accommodation for the homeless 3,220 Capacity 44,401 Children’s homes 224 Capacity 6,785 Homes for elderly persons 187 Capacity 10,730 Homes for disabled persons 40 Capacity 1,612 Homes for blind persons 3 Capacity 51 Remand and probation homes 135 Capacity 1,165 Mother and baby homes 36 Capacity 1,122 Training centres for families 99 Capacity 515 Care homes for vulnerable people 69 Capacity 1,749 Other residential care homes/hostels 36 Capacity 1,941

EDUCATION PROGRAMME ADDICTION DEPENDENCY Non-residential programmes 108 Capacity 2,981 Residential programmes 235 Capacity 14,598 Harbour Light programmes 17 Capacity 1,521 Other services for those with addictions 59 Capacity 2,100 4

ANNUAL REPORT AND ACCOUNTS

Pre-school/kindergarten/sub primary 801 Primary schools 1,185 Secondary and high schools 469 Colleges and universities 15 Vocational training schools/centres 64 Pupils 432,410 Teachers 19,466 Schools for blind students (included in above totals) 22 Schools for disabled students (included in above totals) 33 Boarding schools (included in above totals) 208 Staff training and development centres 18 Learning centres 12

SERVICES TO THE COMMUNITY

HEALTH PROGRAMME General hospitals 29 Capacity 2,377 Hospice long-term care 22 Capacity 696 Maternity hospitals 392 Capacity 811 Other specialist hospitals 18 Capacity 1,276 Specialist clinics 41 Capacity 10,713 General clinics/health centres 107 Capacity 4,841 Mobile clinics/community health posts 121 Inpatients 945,345 Outpatients 1,181,971 Doctors/medics 4,710 Non medical staff 1,956 Invalid/convalescent homes 8 Capacity 380 Health education programmes (HIV/Aids, etc) 4,949 Beneficiaries 308,617 Day care programmes 48

Community centres 556 Capacity 429,724 Day centres for the elderly 80 Capacity 4,120 Day centres for street children 1,596 Capacity 9,050 Day nurseries 405 Capacity 37,819 Drop-in centres for youth 347 Capacity 35,959 Other day care centres 81 Capacity 2,677 Prisoners visited 140,711 Prisoners helped on discharge 53,774 Police courts – people helped 120,619 Missing persons – applications 3,867 Number traced 1,484 Night patrol/anti-suicide – number helped 280,667 Employment bureaux – applications 52,887 Initial referrals 52,264 Counselling – people helped 278,280 General relief – people helped 12,086,370 Emergency relief (disasters) – people helped 884,825 Emergency mobile units 1,861 Feeding centres 1,117 Restaurants and cafés 56 Apartments for elderly 1,190 Capacity 5,121 Hostels for students, workers, etc 41 Capacity 2,449 Land settlements (capacity) 9 Social Services summer camps 350 Participants 23,356

! EMERGENCY DISASTER RESPONSE

SERVICES TO THE ARMED FORCES Mobile units for service personnel 18 Chaplains 77

Disaster rehabilitation schemes 105 Participants 81,004 Refugee programmes – host country 42 Participants 221,644 Refugee rehabilitation programmes 275 Participants 188,375 Other response programmes 56 Participants 543,598 ANNUAL REPORT AND ACCOUNTS

THE SALVATION ARMY WORLDWIDE FACTS AND FIGURES

Source of statistics: The Salvation ArmyYear Book 2021 (pages 36-37)

THE SALVATION ARMY INTERNATIONAL TRUST TRUSTEE’S REPORT The trustee is pleased to present the annual report for The Salvation Army International Trust (the ‘Trust’) for the year ended 31 March 2020.

STRUCTURE, GOVERNANCE AND MANAGEMENT The General, acting under powers contained in The Salvation Army Act 1980, established the Trust to further the worldwide work of The Salvation Army. The Salvation Army International Trustee Company (SAITCo), a company limited by guarantee, was formed and appointed as the ordinary Trustee of the Trust. The directors of SAITCo are thus effectively the charity’s trustees. THE SALVATION ARMY INTERNATIONAL TRUST Registered Charity No 1000566 Trust Settlement Deed dated 21 September 1990 (Governing Document) THE SALVATION ARMY INTERNATIONAL TRUSTEE COMPANY – ORDINARY TRUSTEE Company Registration No 2538134

The General of The Salvation Army, as founder of the Trust, specifies the qualifying offices and the experts for SAITCo. Qualifying offices are such offices of The Salvation Army as the General may from time to time specify by notice to SAITCo and experts are persons who satisfy such conditions as the General may from time to time specify by notice to SAITCo. Both the qualifying offices’ holders and the experts make application for membership of SAITCo with consent to become directors and are accepted by the Board of Directors of SAITCo. All new directors follow teaching modules prepared specifically for The Salvation Army on its constitution, operational scope and the duties and responsibilities of directors. In addition individual directors follow external courses.

STRUCTURE, GOVERNANCE AND MANAGEMENT

OBJECTIVES AND ACTIVITIES

ACHIEVEMENTS AND PERFORMANCE

FINANCIAL REVIEW

STATEMENT OF FINANCIAL ACTIVITIES

BALANCE SHEET

CASHFLOW STATEMENT

NOTES TO THE ACCOUNTS

ANNUAL REPORT AND ACCOUNTS

DIRECTORS Commissioner Birgitte Brekke-Clifton SRN from 1 March 2013 Commissioner Lyndon Buckingham from 3 August 2018 Commissioner Keith Conrad from 1 August 2019 Commissioner Robert Donaldson BSc, LTh, PGDip, MInstD (NZ) from 10 March 2017 to 30 June 2019 Commissioner Gillian Downer from 1 June 2013 to 30 September 2019 Commissioner Lee Graves MBA from 1 November 2020 Commissioner Merle Heatwole BSc from 2 November 2015 to 31 October 2020 Commissioner Eva Kleman from 1 November 2020 Commissioner Johnny Kleman from 1 January 2018 to 31 October 2020 Commissioner Robyn Maxwell from 1 November 2020 Commissioner Wayne Maxwell Dip Min, BTh, MA from 1 October 2019 to 31 October 2020 Commissioner Benjamin Mnyampi from from 1 August 2016 to 31 July 2019 Commissioner Suresh Pawar from from 12 November 2020 Commissioner Mark Tillsley BA, MSc, PhD from from 11 May 2018 Commissioner Alistair Venter from Venter from 29 September 2017 to 31 October 2020 Dr Matthew Carpenter BA, MBA, DBA, MCMI from 1 July 2014 Ms Elizabeth Edwards BSc (Hons), FRICS from from 1 May 2013 Mr Peter King Solicitor, MA from from 1 May 2013 Mr Robert Lister from Lister from 1 January 2016 2016 Mr David A. Mayes from Mayes from 1 May 2013 to 30 April 2019 Mr Robin Foale from from 1 May 2019 Mr Mark Goodale BA, FIA from from 1 May 2019

PRINCIPAL OFFICERS Commissioner Merle Heatwole BSc Managing Director to 31 October 2020 Commissioner Lee Graves MBA Managing Director from 1 November 2020 Dr Matthew Carpenter BA, MBA, DBA, MCMI Company Secretary Mr Adrian Steele FCCA Chief Chief Accountant to 31 May 2019 Miss Karen Dare Acting Dare Acting Chief Accountant from 1 June 2019 to 13 October 2019 Mr Kaloan Belito BA, DchA, MSc, FCCA Chief Accountant from 14 October 2019

BANKERS HSBC Bank plc plc 60 Queen Victoria Street London EC4N 4TR

Reliance Bank Limited Faith House, 23-24 Lovat Lane London EC3R 8EB

National Westminster Bank 38 Strand London WC2N 5JB

SOLICITORS

AUDITORS

INVESTMENT MANAGER

Slaughter and May 1 Bunhill Row London EC1Y 8YY

BDO LLP 55 Baker Street London W1U 7EU

Sarasin & Partners LLP Juxon House 100 St Paulâ&#x20AC;&#x2122;s Churchyard London EC4M 8BU ANNUAL REPORT AND ACCOUNTS

The Trust exists to further the work of The Salvation Army, which is to advance the Christian religion and meet human need as and where it occurs throughout the world and support the work of International Headquarters (IHQ). IHQ is responsible for coordinating the international work and overseeing strategy. The Salvation Army is, for administrative purposes, divided into autonomous territories (generally by region or country). Each territory is governed, through local registration(s), in accordance with the applicable local laws and the Trust works with and through these separate legal entities. However, The Salvation Army remains under the oversight, direction and control of the General of The Salvation Army, as set out in greater detail in The Salvation Army Act 1980.

RELATED PARTY ENTITIES The Salvation Army Retired Officers Allowance Scheme Registered Charity 1153681 Declaration of Trust dated 13 December 2012 The Salvation Army Retired Officers Allowance Scheme is a separately registered charity that is administered by SAITCo as the trustee. The objects of The Salvation Army Retired Officers Allowance Scheme are to relieve the poverty of retired officers and the financial hardship amongst elderly retired officers of The Salvation Army anywhere in the world. The Salvation Army in the United Kingdom and the Republic of Ireland The work of The Salvation Army in the United Kingdom and the Republic of Ireland is directed by the United Kingdom Territory with the Republic of Ireland, with resources provided through trusts administered by The Salvation Army Trustee Company. The two principal trusts of this territory are The Salvation Army Trust and The Salvation Army Social Work Trust. Reliance Bank Limited The banking company, Reliance Bank Limited (the ‘Bank’), is a wholly owned subsidiary of the Trust. The Trust invested an additional £1.0 million in the Bank’s share capital during the year to support its business transformation plans. 8

ANNUAL REPORT AND ACCOUNTS

In the preceding financial year, the Trust purchased The Salvation Army Trust’s (UK Territory) 49% interest in the Bank and invested an additional £1.5 million in the Bank’s share capital. Under its new ownership model and through the delivery of its five-year strategic plan, the Bank aims to become an important, positive social impact bank with an expanded remit in this market segment. The Bank offers transactional banking services to more than 30 Salvation Army territories, providing a vital ‘safe haven’ for project funds and IHQ operational grants and a secure platform for international fund transfers for the global Salvation Army. The Bank offers these territories a comprehensive product range including current accounts and fixed interest products in GBP, USD and EUR as a UK domiciled bank authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. In addition, the Bank also meets the functional banking requirements of IHQ (as distinct from territories) involving processing payments to a wide range of international locations, providing personal bank accounts for non-UK nationals working at IHQ, creating bespoke bank accounts for territories to match specific IHQ requirements and obtaining bank ratings information to inform IHQ evaluation of proposed bankers for territories. The Bank also provides a wide range of banking services to The Salvation Army (UK Territory) and to other UK charities, positive social impact businesses and the general public. SAITCo as ordinary trustee of the Trust undertook considerable due diligence over an extended period before acquiring sole ownership of the Bank, with the Board of Directors receiving multiple reports from appointed consultants on legal, tax, accounting, governance, risk

and regulatory considerations including a detailed critical analysis of the Bank’s five-year strategic plan. Ordinarily, the Bank will donate a proportion of its net taxable profits to support the mission of the Trust. This has not been the case during the year under review or the preceding year, as the Bank is investing in its organisational structure and systems as it embarks on a new strategy under the sole ownership of the Trust. As expected, losses have been made in the implementation period of the strategic plan, while this initial investment takes place. Consolidated accounts for the Trust incorporating the Bank as its banking subsidiary are presented for 2019/20 as well as charity results, assets and liabilities for the Trust (see pages 58-82). Whilst the Trust is the Bank’s controller, a Nominations Committee comprising Non-Executive Directors of the Bank recommends the appointment of Bank Directors to the board. This includes consideration of proposed Shareholder representative Directors, as and when appropriate. The Bank, in common with all banks, faces a number of risks such as credit risk, interest rate risk, risk arising from holding foreign currencies, market risk and operational risk. Policies are in place to ensure that the Bank’s exposure to these risks is monitored and controlled. The Bank maintains a risk register which is regularly reviewed by the Bank’s Audit, Risk and Compliance Committee and Executive Committee.

GOVERNANCE The Trust utilises a committee structure to supervise its operations. SAITCo’s Board of Directors, including five Non-Executive Directors, delegates day-to-day financial management decisions to the International Finance Council, International Business Board and International Projects Board within clearly defined parameters. The terms of reference for subsidiary boards and the minutes of all meetings of these boards are reviewed by the Directors on a regular basis. A well-established Internal Audit Department carries out a cycle of reviews of the systems in operation within IHQ and in all countries where The Salvation Army is working and a sound framework of internal controls and strong financial management systems are in place, supported by a manual of International Financial and Accounting Standards for The Salvation Army issued from IHQ. A project is also progressing to roll out cloud-based accounting software to all financially supported territories to enable more regular and more detailed reporting within territories and also reporting of key financial indicators from territories to IHQ. An Audit Committee meets on a quarterly basis, is chaired by a Non-Executive Director of SAITCo, and comprises a minimum of three members none of whom hold

executive responsibility for management of the Trust. The Committee holds delegated responsibility on behalf of SAITCo for continual review of the financial management and internal controls of the Trust and holds a direct line of communication to the internal and external auditor. A wide ranging and significant governance review exercise commenced during 2018/19 assisted by an external consultant and involving a review of SAITCo membership, structure, interrelationships with other IHQ bodies, performance and effectiveness as well as benchmarking to good governance practice as outlined within the Charity Governance Code. SAITCo already embraces many governance activities outlined within the Code such as conducting board induction and training, managing potential or actual conflicts of interest and regularly reviewing terms of reference for subsidiary boards with opportunities for further development highlighted in areas such as formal monitoring of Board skills and performance. A Board Charter for SAITCo was developed during 2019/20 within the governance review process and approved for implementation. The Charter defines the roles, responsibilities and authorities of SAITCo in the effective and efficient functioning of the Trust and considers mission objectives, board roles, board procedures, board composition, board committees, board induction and ongoing training, conflicts of interest and board evaluation. Multiple working parties are engaged in further projects highlighted by the governance review with implementation of a further body of agreed actions anticipated to commence from 2020/21. SAITCo has in place a number of dedicated governance arrangements in respect of its role as sole owner of Reliance Bank Limited, having taken advice on this from an external consultant as part of the body of due diligence work undertaken towards acquiring sole ownership of the Bank. An additional Director with banking expertise was successfully recruited to the SAITCo Board in May 2019 and remains in post with two shareholder representatives appointed to the Bank board and mechanisms in place for performance reporting for the Bank to SAITCo and risk management for the Bank to the Risk Management Committee of the Trust.

REMUNERATION SAITCo is committed to ensuring a proper balance between paying staff to attract and retain the best people for the job, and careful management of charitable funds. Management remuneration policies and practices within the Trust are reviewed periodically by SAITCo with day-to-day decisions delegated to the Employee Review Board and Job Grading Panel within clearly defined parameters. Posts are graded between evenly distributed salary points with the highest point in a salary band approximately 10% ANNUAL REPORT AND ACCOUNTS

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The activities of the charity are rendered without discrimination and for the benefit of all people in need higher than the lowest point, though this can vary depending on the nature of the post. The median of the band is the ‘market average’ salary for this type of post as identified through benchmarking to comparable roles in other organisations. New staff members are usually appointed at the lower to median end of the band, depending on experience. Post holders can progress up to the next salary point within their band, subject to satisfactory completion of a performance appraisal. Cost of living increases are also awarded periodically to all staff by SAITCo with an assessment made within the annual budget setting process to determine any proposed inflationary adjustment with reference to the Consumer Price Index and the financial position of the Trust. Further remuneration disclosures for the Trust and group for this reporting period are shown within Notes 14 and 15 to the Accounts. The Trust did not have any UK volunteers, excluding trustees, during the reporting period.

MODERN SLAVERY ACT The Salvation Army is very active in bringing practical assistance to those whose lives have been affected by the evil of modern slavery and as such is sensitive to the danger of inadvertently finding itself falling short of its own beliefs and standards in this regard as well as the standards set out in the UK Government’s Modern Slavery Act 2015. The Modern Slavery Act 2015 compliance statement for SAITCo, reviewed and updated in May 2019, can be accessed at http://www.salvationarmy.org/ihq/modernslaveryact2015 and provides details of the variety of measures undertaken by SAITCo to avoid and reduce the risk of inadvertently supporting modern slavery in any way.

FUNDRAISING

or by anyone acting on its behalf, that no complaints in relation to fundraising activities have been received and that any solicitations are managed internally, without involvement of commercial participators or professional fundraisers.

OBJECTIVES AND ACTIVITIES

Public Benefit The Trust is operating for the public benefit and in keeping with the organisation’s mission statement. In setting and reviewing the Trust’s aims and objectives and planning future activities, the Trustee pays due regard to the guidance issued by the Charity Commission on public benefit. The main activities of the Trust are: ●

To continue the advancement of the Christian religion through evangelistic outreach

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To continue to provide financial assistance to The Salvation Army where needed

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To provide effective leadership and share knowledge and expertise through the strategic deployment of personnel

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To respond to and help meet the needs arising from major crises

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To strengthen The Salvation Army’s capacity to support poor and marginalised people who need access to quality primary health care services as close to the family as possible

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To take action to combat the massive and growing evil of sexual trafficking and to create awareness of social injustice in the world.

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although the Trust does not actively undertake widespread fundraising from the general public, the legislation defines fund raising as ‘soliciting or otherwise procuring money or other property for charitable purposes’. Such amounts receivable are presented in the Accounts as ‘Other Donations and Legacies’.

A breakdown of expenditure per these main charitable activities of the Trust is presented at Note 10 in the Accounts. This shows a significant outlay on funding assistance to Salvation Army territories (under the second activity listed above) recognising that such grants also aid fulfilment of the other stated objectives as Salvation Army territories provide a wide range of local church/social programmes having received the IHQ funding necessary to maintain day to day operations.

In relation to the above SAITCo confirms that no fundraising activity has been taken by the Trust, or by anyone acting on its behalf, that no fundraising standards or scheme for fundraising regulation have been subscribed to by the Trust,

Specific aims for each of the main activities of the Trust during the reporting period are outlined in the sections below. The activities of the charity are rendered without discrimination and for the benefit of all people in need.

ANNUAL REPORT AND ACCOUNTS

Assistance to Salvation Army Territories

International Personnel Training and Development

Crisis Relief

Health Services for the poorest people

Fighting against sexual trafficking and for social justice

38 ANNUAL REPORT AND ACCOUNTS

ACHIEVEMENTS AND PERFORMANCE

World Mission

1 12

WORLD MISSION

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OVERALL OBJECTIVE To continue the advancement of the Christian religion through evangelistic outreach.

is limited only by our vision and our willingness to step out in faith to make a difference in the lives of women and girls today’.

SPECIFIC AIMS

That ‘breadth and reach’ was illustrated through short videos showing innovative and relevant ministry for and by Salvation Army women from around the world. Also featured was the launch of new International Women’s Ministries social media channels, logo and vision statement.

World Mission objectives are to encourage and enable people linked to The Salvation Army to reach out into their communities with spiritual and practical support, to offer online resources to Salvationists and friends around the world and so create a supportive network through which people can share in prayer and encouragement, and for the General and the Chief of the Staff to visit Salvationists and friends around the world, providing opportunities for increased publicity and offering encouragement and challenge.

ACHIEVEMENTS Salvationists around the world were encouraged during the year to forge ever-stronger community links and take Christ to the people through a series of initiatives:

Commissioner Rosalie explained the importance of reimagining The Salvation Army’s Women’s Ministries, opening up the potential to reach many more women and girls in Christ’s name: ‘Women’s Ministries is a strong force to be reckoned with,’ she said, ‘and we have an incredible history of connecting with and raising up faithful women. I want to challenge all women leaders around the Salvation Army world – and this includes officers, soldiers and friends – to reimagine Women’s Ministries in their own contexts, to discover what new things we can be doing to speak into and overcome the challenges that women and girls face in our world today. I don’t want us to be confined by our celebrated history or traditions or any beliefs that Women’s Ministries must fit a specific format or look a certain way.’

WOMEN’S MINISTRIES A seamless, multifaceted production was an appropriately modern way to launch the ‘Reimagining’ of Salvation Army International Women’s Ministries. The live-streamed event at International Headquarters in London reached out to the world with a clear message that – in the words of Commissioner Rosalie Peddle (World President of Women’s Ministries) – ‘the breadth and reach of Women’s Ministries

To watch the event and for more information – including links to the International Women’s Ministries social media channels – go to sar.my/wm.. The new logo (in English, French, Mizo sar.my/wm and Spanish) and photos of the launch can be downloaded from the IHQ Flickr stream at sar.my/wmreimagining.. Photos from a sar.my/wmreimagining ‘Reimagining’ exhibition held in Gallery 101 at IHQ can be viewed on the IHQ Flickr stream: sar.my/reimaginingexhib

ANNUAL REPORT AND ACCOUNTS

Chalk art in front of International Headquarters, London

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‘LIVING IT’ VIDEO SERIES: A new series of mini films developed by The Salvation Army’s International Headquarters Communications team encouraged Salvationists and friends to share the gospel message in creative and engaging ways. It is intended that Living It will inspire meaningful conversations about God and the importance of living out the Christian faith in the 21st century – all using materials that are cheap and readily available. The first film showed what happened when 10 IHQ officers and employees took to the busy central London street outside the headquarters building. Armed with nothing but a box of chalk (and permission from the City of London authority) the group transformed the pavement into a colourful montage of Bible verses, Christian song lyrics and inspirational thoughts.

ANNUAL REPORT AND ACCOUNTS

Many people stopped to take photos and talk with the team about the initiative, commenting how positive the messaging was compared with some of the darker events that were prominent in the world’s news media at the time. Joseph Halliday (IHQ Communications), who coordinated the activity, explains: ‘Most of us understand that having an impact beyond the walls of our church buildings is really important, but sometimes knowing where to start is a bit daunting! This new video series shows some ways you can get out and about in the community with a range of ideas.’ The second Living It film took viewers on a prayer walk around the British town of Faversham, Kent. Simple examples were given of how prayer-walking can provide opportunities to become fully embedded in a community. The Living It films are available to view and download from sar.my/livingit,, where future features will also be published sar.my/livingit as they are produced.

General Brian Peddle with Pope Francis in Vatican City © L’Osservatore Romano

THE GENERAL VISITS THE VATICAN Before the worldwide coronavirus pandemic brought an end to international travel and mass gatherings in March 2020, The Salvation Army’s international leader, General Brian Peddle, continued to travel around the world with Commissioner Rosalie Peddle (World President of Women’s Ministries). Their visits served to provide encouragement to local Salvationists and friends, while also enabling links to be strengthened with government members and other influential figures. One of the most significant visits was to the Vatican in November 2019, where the international leaders met His Holiness Pope Francis. After the General’s delegation engaged in warm and open discussions with members of the Pontifical Council for the Promotion of Christian Unity, the visitors had an opportunity to meet with Pope Francis in the Papal Library. The General had a time of private conversation before the Salvation Army representatives were presented to His Holiness. The General presented his message and the Pope responded before the two men prayed together. It is intended that beyond this historic visit there will be a series of meetings which will strengthen relationships and cooperation in areas of mutual concern and service.

“ It is intended that

beyond this historic visit there will be a series of meetings which will strengthen relationships and cooperation in areas of mutual concern and service. ANNUAL REPORT AND ACCOUNTS

Commissioner Rosalie Peddle being interviewed during the live-streamed ‘Reimagining’ launch of Salvation Army International Women’s Ministries

FIRST VISIT OF INTERNATIONAL LEADERS TO BOTSWANA Another significant visit saw the General and Commissioner Peddle travel to Botswana, where they became the first international Salvation Army leaders to visit the country. On arrival in Botswana – which is part of the Zimbabwe and Botswana Territory – the General and Commissioner Peddle received a traditional welcome before travelling to a meeting with the Minister of Presidential Affairs, Governance and Public Administration, Mr Kabo Morwaeng. Talking about The Salvation Army’s work in Botswana, the General assured the minister of the movement’s continued support in transforming the lives of Botswana’s most needy people. The minister recognised the influence of the Christian Church, which he said is strategically positioned to deal with humanitarian crises by virtue of its mandate and ability to reach the population at grassroots level. A time of fellowship with the Botswana Council of Churches was followed by an afternoon of inspiration and blessing as musicians from Zimbabwe and Botswana praised God in vibrant worship. The event was attended by Minister Morwaeng, whom the General and Commissioner Peddle had met earlier. 16

ANNUAL REPORT AND ACCOUNTS

INTERNATIONAL LITERATURE PROGRAMME: The International Literature Programme (ILP) provides funding to ensure the sharing of quality, comprehensive and appropriate teaching resources to assist and promote The Salvation Army’s mission in financially supported territories. The programme has the special responsibility of providing literature in the language of local people at an affordable price. During 2019/20, ILP offered resources to libraries at The Salvation Army’s officer training colleges in supported territories across the world. Officer-cadets also received two books for their personal use. One of the training principals, Major David Howarth (Nigeria Territory) wrote to explain the difference that the new resources would make to Salvation Army officer cadets at his training college: ‘We are building all sections of our library as best we can,’ he said, ‘and our Salvation Army section is becoming outstanding. Our future officer leaders need to know about our spirituality, doctrine and heritage, and all of these resources help us to inform them of these.’

Above: Still from one of the Living It films

Below: Women’s Ministries social media

KEY STATISTICS

FUTURE PLANS

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The live-stream ‘Reimagining’ launch of Salvation Army International Women’s Ministries was watched in more than 15,000 locations worldwide and in many places was shown to large groups in churches or at a headquarters.

The International Women’s Ministries social media channels will continue to engage with women around the world. A new staff member has been appointed who will seek to ensure that content is gathered from and shared with every corner of the Salvation Army world.

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The first two Living It films have been viewed more than 20,000 times on Facebook.

The General will continue to travel around the world, engaging with Salvationists, friends, supporters and people of influence. While travel limitations are in place due to the coronavirus pandemic, he will use online resources such as video messages to raise morale and provide continuing encouragement and spiritual challenge. The Salvation Army will seek new and innovative ways to share the gospel message through online means (including social media) and by providing resources to enable local outreach. The International Literature Programme will continue to provide resources and fund translations to ensure that location, language and financial capacity are no barriers to high-quality learning materials. ANNUAL REPORT AND ACCOUNTS

ASSISTANCE TO SALVATION ARMY TERRITORIES

ANNUAL REPORT AND ACCOUNTS

b. International Property Project, Project, overseen by a full-time OVERALL OBJECTIVE To continue to provide financial assistance to The Salvation Army where needed.

consultant based at IHQ, aims to assist territories in highest and best use reviews of underutilised property assets as a step towards financial independence. During 2019/20, the project aimed to finalise significant schemes in Zambia and India and conduct multiple feasibility assessments in other territories.

c. International Financial and Accounting Standards SPECIFIC AIMS The Trust seeks to provide financial assistance, infrastructure and technical support to territories through a wide range of programmes including grant funding and delivery of largescale international projects with a particular focus upon following areas of work during 2019/20:

a. International Development Services (IDS), based at

IHQ, aims to engage, equip and empower local communities for effective development around the world. This year, the aim was to work on tools to help strengthen relationships between the different stakeholders of development programmes so the direction of capacity building work is clearly defined and integrated with wider Salvation Army programmes in similar areas before it is fully rolled out. IDS will work with territories to strengthen its transformative impact as it supports The Salvation Armyâ&#x20AC;&#x2122;s engagement with its surrounding communities.

(IFAS) involves a global project team led from IHQ implementing cloud-based accounting software for all financially supported territories alongside the roll out of new International Financial and Accounting Standards for the global Army. The software deployment replaces basic standalone systems, assists territories in complying with IFAS reporting and enables implementation of computerised internal financial controls to replace time-consuming manual processes. This year, key objectives were to build the team delivering and supporting roll out of the software, to complete the tailoring of the software to meet diverse and unique Salvation Army needs globally and to continue deployment of the software to territories using a shorter form deployment model.

d. Office 365 Project involves a large project team at IHQ and within territories rolling out a new global collaboration and communication solution to provide an official Salvation Army digital identity for every officer and employee who uses technology to achieve mission tasks for The Salvation Army. The key objective for the year was to continue global roll out of the solution to territories using the agreed deployment model.

The Salvation Army provides a safe place to play in the favelas of SĂŁo Paulo, Brazil

ANNUAL REPORT AND ACCOUNTS

ACHIEVEMENTS

a. INTERNATIONAL DEVELOPMENT SERVICES The IDS team, while continuing to work with territories to encourage sustainable, long-term positive change in communities, has developed, piloted and rolled out the Learning Pathways programme in order to build project management and community engagement capacity. IDS staff also provided training and workshops for territorial project staff to foster and encourage greater coordination between donor and recipient offices. The following examples illustrate the significant, transformative projects supported by the IDS team: BRAZIL: The Salvation Army operated a community project in Vila dos Pescadores in a favela on the outskirts of São Paulo, in Cubatão. Habitants of this favela live without basic water and hygiene supply, many of the houses were built in the swamp. Only recently, local government authorities have started cementing the main street. Social issues are complex; social exclusion, drug abuse, racism, genderbased violence, human trafficking and gang violence is prevalent in this context. The Salvation Army community centre supported more than 300 children and adolescents providing a safe space. Workshops and extracurricular leisure and sport activities were run daily providing children with a safe space to play and learn new life and social skills. Children were given a meal a day to cover nutritional gaps. Families were also supported with referrals to other services where necessary. The success of this programme lies on building healthy relationships with community members and providing a future for children in vulnerable families. The programme was so successful that a youth centre was also opened to support teenagers offering alternative leisure, prevent their engagement in criminal organisations, and encourage further professional and educational development. INDIA NORTHERN: The Veer Programme offered educational and social support to young children living on the streets in Delhi aiming to provide them with the necessary skills to join government schools and improve their chances of getting a job and accessing further opportunities in society. ‘Veer’ means Hero in Hindi and this is both a testament to the dedicated staff at the Veer centre, as well as the children themselves. The children were provided with a daily meal and attended literacy and numeracy classes, while also celebrating public events and receiving personalised social care. Through this programme they build bridges with other children, integrate into the 20

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“

Operating since 2010, the programme has helped numerous children to (re)join the social fabric and provided support to the most vulnerable at a crucial age. community and avoid exposure to harmful influences and illicit behaviour. Operating since 2010, the programme has helped numerous children to (re)join the social fabric and provided support to the most vulnerable at a crucial age. AFRICA AND SOUTH ASIA: A total of 89 officers and employees from five territories in Africa and South Asia graduated from Level 1 of the Learning Pathways programme during the reporting year learning new skills in project management and community engagement. Learning Pathways also supports the territories with the training needed, through goalsetting, for succession planning. Compilation of the material for Levels 2 and 3 of the programme also commenced under the headings: community engagement tools and skills, project management including governance, cross-cutting themes/ global trends and culture, faith and development. One of the Level 1 graduates from India South Eastern Territory commented: ‘It has been a great opportunity in my life to develop my knowledge and skills through this Learning Pathways programme. I learnt how to manage when many problems arise in my community. I learnt various community development tools.’

b. INTERNATIONAL PROPERTY PROJECT Overseen by a full-time consultant based at IHQ, the International Property Project works with globally recognised property firms to develop potential schemes for territories through the stages of scoping and identification,

IHQ staff with Learning Pathways graduates from Ouagadougou, Burkina Faso

feasibility approval, detailed feasibility and implementation. A number of different schemes were progressed through these various stages during 2019/20, illustrated by the following examples: ZAMBIA: A large-scale project was completed during the year with a three-level new build incorporating commercial activities on the ground (retail) and first floors (rentable office space) and second floor offices for territorial headquarters. The rental space will raise significant ongoing funds for the territory as an important step towards selfsupport. INDIA CENTRAL: A new community hospital building for the Evangeline Booth Hospital, Nidubrolu, was also completed during the year. The fully equipped and furnished facility enhances medical services offered to the local community and improves the practical capabilities of the on-site Nursing College. INDIA SOUTH EASTERN: Major building renovations were completed in all areas of the Catherine Booth Hospital, Nagercoil, to enhance the service provision of the hospital. Works included an additional operating theatre; new equipment throughout; water, sewage treatment plant and

The Great North Road Business Centre, Lusaka, Zambia incorporating the new territorial headquarters

electrical upgrades; and implementation of a digital hospital system and processes. In addition to these schemes, the International Property Project team supported capital projects related to school development, childrenâ&#x20AC;&#x2122;s homes and other programmes across multiple territories and also provided teaching seminars to develop capacity of territorial property teams within financially supported territories. ANNUAL REPORT AND ACCOUNTS

Above: Newly completed hospital facilities in Nidubrolu, India Right: Life-saving services at the refurbished Neonatal Intensive Care Unit at Catherine Booth Hospital, Nagercoil, India

c. INTERNATIONAL FINANCIAL

AND ACCOUNTING STANDARDS

The IFAS project involves a global project team led from IHQ implementing cloud-based accounting software for all financially supported territories alongside the roll out of new International Financial and Accounting Standards for the global Army. The scale of this international project covering 41 territories is significant and indeed unprecedented within the global Salvation Army. During the year, the project team successfully implemented the software in three territories: Uganda in October 2019, Kenya West in November 2019 and Zambia in March 2020 following roll out to three pilot territories in the previous year. Key business and finance staff in these locations were trained and empowered to start using the new software that provides modern tools, introduces efficiencies and enables tighter controls over financial management. The project team successfully recruited additional trainers to the IFAS team to travel to territories to support software deployments and assist local staff. A central support team based at IHQ known as FASST (Finance and Accounting Systems Support Team) was also established to support front-line users. Conferences were held in Johannesburg and Singapore at which a total of 40 territorial champions, from the next group of 20 territories to take the software, received three weeks of introductory training and considered design and data migration plans for their deployments. Pre-deployment visits were also held with the six Indian territories. 22

ANNUAL REPORT AND ACCOUNTS

Key business and finance staff were trained and empowered to start using the new software that provides modern tools ... and enables tighter controls over financial management.

Top: IFAS staff with India Central territorial headquarters team following a successful pre-deployment visit Above: Office 365 Project discussions at an IT Council meeting in Johannesburg, Southern Africa territorial headquarters Left: Approval of the first transaction in a new cloud-based accounting software in Uganda

Reporting of Key Financial Indicators (KFIs) from territories to IHQ continued during the year as required by the manual of International Financial and Accounting Standards. The project team also made further advances in tailoring the design and testing of the accounting software to meet bespoke Salvation Army requirements. Looking beyond IFAS implementation, significant steps were also undertaken to advance another large-scale international project during 2019/20

d. OFFICE 365 PROJECT The Office 365 Project involves a large project team based at IHQ and within territories rolling out a new global collaboration and communication solution to provide an official Salvation Army digital identity for every officer and

employee who uses technology to achieve mission tasks for The Salvation Army. During the year, the following financially supported territories, commands and regions successfully migrated to Office 365: India South Eastern, The Philippines, Korea, Mozambique, Taiwan, Italy and Greece, Southern Africa and Kenya West. Significant work and effort has also been put into establishing common IT policies, procedures and documentation to assist financially supported territories in reviewing and upgrading their infrastructure and connectivity â&#x20AC;&#x201C; an essential pre-requisite for moving to Office 365. A new Head of International IT/ Chief Information Officer was recruited during 2019/20. An early priority of the new ANNUAL REPORT AND ACCOUNTS

Right: Major Shanthi Senarathna with one of the children at The Haven and Sunshine Home, Sri Lanka

CIO was to propose a new preferred structure and budget for International IT Services to deliver the migration project, as well as provide ongoing support post implementation. A recruitment plan was also initiated to employ key lead roles. A proposal to select a preferred global supplier for the procurement of hardware was also agreed – this will ensure consistency of standards and a more efficient process for territories to acquire devices.

KEY STATISTICS ●

International Development Services facilitated the approval of 560 project proposals at IHQ during 2019/20 for implementation to support communities.

●

The International the Property Project team assisted territories in the assessment and development of property schemes for underutilised assets in India, Malawi, Sri Lanka, Kenya and Zambia during 2019/20.

●

The International Financial and Accounting Standards project team facilitated the implementation of new cloud-based accounting software in three territories during 2019/20 and recruited and trained 40 local champions in territories for the next batch of deployments.

●

The Office 365 Project facilitated the addition of 30,000 Office 365 email accounts during the year, including onboarding of a number of financially independent territories, with the global number of accounts now standing in excess of 60,000.

FUTURE PLANS

a. INTERNATIONAL DEVELOPMENT SERVICES

Over the next year, IDS will continue to develop and roll out the Learning Pathways programme to complement existing officer training programmes. There will also be a strengthening of workshops offered to territories seeking a more intentional sharing of thematic expertise between territories and improvements to timely and effective processing of projects. Additional project support will also be offered to territories as required due to the effects of the COVID crisis.

b. INTERNATIONAL PROPERTY PROJECT

The International Property Project team will continue to support capital projects in territories and provide due diligence on property-related proposals globally with particular emphasis on schools and children’s homes development projects. Feasibility work is anticipated for Nigeria, Kenya, Malawi, Sri Lanka, India and Uganda. A number of seminars are also planned to assist territories in property assessments and business planning although this programme may be disrupted by the COVID crisis.

c. INTERNATIONAL FINANCIAL

AND ACCOUNTING STANDARDS The IFAS project will move forwards to the main implementation involving installation of the new accounting software in 35 territories over the next three years with the pace increasing as the project team becomes more skilled at deployments. Potential disruption to the programme of implementations due to the COVID crisis will be closely monitored and assessed. Ongoing support for front-line users will also be expanded as the FASST Team is developed.

d. OFFICE 365 PROJECT

During 2020/21 the Office 365 Project will focus upon; recruitment of key lead roles for the new international IT structure, developing and adopting a new migration approach to speed up migration activity and ensuring close alignment with the IFAS project. It is planned to complete the migration to Office 365 for all remaining territories by December 2021, however this timeline may be impacted by the COVID crisis.

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INTERNATIONAL PERSONNEL TRAINING AND DEVELOPMENT

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OVERALL OBJECTIVE To provide effective leadership and share knowledge and expertise through the strategic deployment of personnel.

SPECIFIC AIMS International personnel training and development objectives for 2019/20 included supporting training colleges around the world as they train officer cadets for culturally relevant ministry with redesign of training college reports, review of territorial capability frameworks and encouraging resource sharing between territories. Further objectives were to create a new leader-development course with online learning modules, continued delivery of remodelled orientation training to new leadership in territories and operation of the International College for Officers (ICO) as a means to nurture personal holiness and spiritual leadership and encourage a renewed sense of mission and purpose among Salvation Army officers.

ACHIEVEMENTS The International Officer Training and Leader Development Council (IOTALDC) met several times during the year, with membership drawn from across the global Salvation Army, to review and develop key areas of training and development

for leaders within The Salvation Army. The major task of revising Orders and Regulations for the Training of Salvation Army Officers was completed by the Council during the year with work commenced on a review and subsequent recommendations for the curriculum of the ICO. Other key developments during the year were as follows: INCLUSIVE LEADERSHIP COURSE: A new online course was introduced during the year and has already proved helpful for the development of officers in preparation for potential leadership roles. Since the launch of the inclusive leadership course, 269 officers have enrolled with 70 completing it. The course concentrates on seven key areas of team leadership and should be undertaken by those identified on territorial succession plans. Feedback from early participants has been favourable with adjustments made to improve and develop the course based on comments received. SENIOR LEADERSâ&#x20AC;&#x2122; ORIENTATION: When personnel are appointed to senior leadership roles in territories, they participate in an orientation conference hosted by IHQ. The conference was remodeled in 2018/19 and includes an intensive 10-day programme of workshops aiming to provide similar support to that experienced by senior executives in the business world. The course was delivered on two occasions during the year with a significant focus on personal leadership, team/organisational leadership, governance frameworks and issues and management. Beyond the orientation, ongoing support and engagement is offered to new leaders with mentoring/coaching offered from current and recently retired leaders around the world. INTERNATIONAL COLLEGE FOR OFFICERS: Based at Sunbury Court, London, the ICO brings together groups of officers from around The Salvation Army world for a six-week training experience considering the challenges ANNUAL REPORT AND ACCOUNTS

Above: Chief of the Staff Commissioner Lyndon Buckingham (front row, centre) with Senior Leadersâ&#x20AC;&#x2122; Orientation delegates Right: One of the lecture rooms at Sunbury Court

and opportunities facing Salvation Army leaders in the 21st century. During 2019/20, four sessions were held involving a total of 129 officers. Each six-week session provides delegates with opportunity for a deep ongoing consideration of leadership within The Salvation Army, including topics such as personal spiritual formation, leadership, ethics, social justice and international finance and administration, plus opportunity for personal, spiritual and emotional refreshment. All delegates complete an end-of-session personal evaluation of the ICO and its impact upon them, and collated reports from this year suggest delegates found significant benefit from attending with some viewing the whole experience as positively life changing.

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Conference centre at Sunbury Court

KEY STATISTICS

Reports from this year suggest delegates found significant benefit from attending with some viewing the whole experience as positively life changing

●

In the period April 2019 to March 2020, 129 delegates (and four translators) attended the ICO representing 46 Salvation Army territories.

●

Forty-four territorial commanders, chief secretaries, general secretaries, territorial presidents of women’s ministries and territorial secretaries for women’s ministries received senior leaders’ orientation training at IHQ during the year.

FUTURE PLANS The IOTALDC will continue its work to review, develop and implement policies for training and leader development with a focus on implementation of recommendations for leader development, advising the General on policy matters including modes of training delivery and providing oversight to a resource repository for training and leader development. The Senior Leaders’ Orientation will continue to be delivered with an online format employed, as required during 2020/21, if the COVID crisis restricts physical gatherings. Other objectives are to continue development of an Administrative Leaders’ Training Course, to commence intentional debriefing and leader-development for ICO delegates after returning to their home territory and development of succession planning within each territory to ensure potential leaders are placed onto a development pathway (pipeline) and given the possibility for personal growth as well as opportunities to enrol on leadership courses. ANNUAL REPORT AND ACCOUNTS

4 30

CRISIS RELIEF

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OVERALL OBJECTIVE To respond to and help meet the needs arising from major crises.

SPECIFIC AIMS The International Emergency Services (IES) team based at IHQ aims to support territories that are affected by disaster and crisis, providing technical assistance, funding and trained personnel to support relief and recovery responses. Another key objective is to provide training courses to strengthen local capacity, particularly in disaster-prone areas, to assist disaster preparedness and disaster risk reduction awareness. Assistance is targeted towards locations that may not have all the necessary resources in place at the time of an emergency to respond fully to presented needs.

ACHIEVEMENTS IES provided support to territories around the world affected by crisis and disaster during 2019/20 when numerous severe weather events led to floods and landslides devastating areas within a number of countries. Support was offered to 16 territories across Africa, the Americas and Caribbean,

South Pacific and East Asia and South Asia where people lost homes and possessions, crops and livelihoods and local Salvation Army teams were resourced to bring muchneeded food, household items and clean-up materials to help families recover from personal crisis. Complementing this practical assistance was the pastoral and emotional care offered by Salvation Army personnel who stood alongside fellow citizens demonstrating â&#x20AC;&#x2DC;love in actionâ&#x20AC;&#x2122; as they served communities, with this life-changing work illustrated by the following examples: CARIBBEAN: Hurricane Dorian was a particularly devastating weather event which tore across parts of the Caribbean causing great destruction in the Bahamas. Homes and livelihoods were lost and some communities were evacuated from their island homeland to safer locations. IES deployed several teams to support the response, particularly providing logistics expertise for donated in-kind relief materials, in addition to assessment and coordination activities in the relief stage. Ongoing recovery projects were also developed as the long-term response programme continues. AMERICAS: Migration crises continued to challenge several territories as they responded to the needs of people on the move, searching for safety and security and a better life for themselves and their families. Central and South American territories reached out to serve those moving north from their homelands. In addition to those seeking

Clothing distribution in the wake of Hurricane Dorian in the Bahamas

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The Salvation Armyâ&#x20AC;&#x2122;s Bridges project manager with with some young Venezualan refugees in Brazil

Interactive groupwork at an IES peacebuilding workshop in Burundi

refuge in the USA, many Venezuelan migrants were assisted who had travelled to neighbouring countries desperately seeking refuge. In north-west Brazil a well-received programme of support was developed in partnership with locally based agencies, particularly addressing issues of domestic and gender-based violence. IES facilitated the deployment of Spanish-speaking officers from several South American territories, specifically trained in humanitarian principles and child protection standards, to support these programmes. 32

ANNUAL REPORT AND ACCOUNTS

RESOURCES: A new IES volunteer interactive database was developed which enables up-to-date recording of personal information of trained and approved personnel who make up the cadre of people available for deployment on emergency response. These individuals, as well as IES administrators, are able to update the information on the database giving an accurate record of training, achievements, skills and experience and deployment data for easy refence and access. IES also worked in collaboration with the IHQ Communications section to produce a film entitled Displaced, highlighting several migration situations around the world, and featuring testimony and experiences of people benefitting from Salvation Army programmes in Brazil. TRAINING: Training courses featured in the annual programme of events and IES is always looking to support capacity strengthening of territories as it plans for disaster risk reduction and enhanced response activities. The reporting period included a peacebuilding workshop in Burundi as the region prepared for national elections. Creative ways of promoting peace and harmony in communities were explored, including production of a song for nationwide promotion of the hope for a peaceful future.

Delegates and facilitators at the IES Team Leadersâ&#x20AC;&#x2122; Workshop in Palu, Indonesia

A key element of IES support to territories affected by disaster is the ability to deploy trained and experienced personnel to work alongside local colleagues should there be a need for additional practical and technical assistance. In order for a deployed team to be most effective in the field, it is important to have good leadership and a workshop for IES team leaders was held in Palu, Indonesia. This event brought together 30 experienced emergency responders from around the global Salvation Army for theoretical learning and practical exercises in order to maintain the knowledge and skills required to lead a deployed team. This year the training focus was on safeguarding and child protection in a humanitarian context with guest facilitators as well as a field trip to several locations where responses to the recent earthquake and tsunami occurred. Not only was there opportunity for learning through the arranged teaching programme, the sharing of experiences and practical application related by delegates along with mutual encouragement was hugely beneficial to all who attended.

Future Plans IES will continue to promote and support the development of disaster management strategies for territories and will formulate an International Emergency Services strategy for disaster response. As the reporting period came to an end, much of the world was being overtaken by the coronavirus pandemic. As the virus takes hold in communities, IES will look for ways for Salvation Army personnel to continue to serve the most vulnerable people. IES will facilitate the resourcing of programmes to promote good hand and respiratory hygiene, social distancing and the provision of some hygiene and sanitising materials. As the pandemic widens, further needs are anticipated and the need for food for vulnerable people, those in quarantine or without livelihood due to the effect of the virus in society, is expected to become more relevant for IES support. IES will monitor the situation and respond to emerging needs in the most appropriate way for each location.

Key Statistics â&#x2014;?

During 2019/20, 69 Rapid Response projects were approved for immediate lifesaving activities, spanning 28 countries and approximately 553,000 beneficiaries.

â&#x2014;?

A further 26 IES projects were approved for longer-term relief and recovery activities spanning 12 countries and serving approximately 220,000 beneficiaries. ANNUAL REPORT AND ACCOUNTS

HEALTH SERVICES FOR THE POOREST PEOPLE

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OVERALL OBJECTIVE To strengthen The Salvation Armyâ&#x20AC;&#x2122;s capacity to support poor and marginalised people in accessing quality primary healthcare services as close to the family as possible.

SPECIFIC AIMS The International Health Service (IHS) desk at IHQ seeks to provide support, supervision and in-service training to healthcare facilities around the Salvation Army world. Specific objectives for 2019/20 included delivery of training to clinical and teaching staff to enhance the quality of services and support of health facilities and moving forward with property renovations to better serve the needs of patients.

ACHIEVEMENTS The Salvation Army continues to be a significant provider of faith-based, integrated, high-quality primary healthcare with services offered as close to the family as possible and giving priority to poor and marginalised members of society. The following examples illustrate this significant service provision: PAPUA NEW GUINEA: The territory has 25 health facilities some of which are in hard-to-reach areas. During 2019/20, IHS provided funding and technical support enabling the purchase of vaccine fridges for remote, isolated clinics as well as an ambulance for Onamuga Health

Healthcare in remote locations: new ambulance for Onamuga Health Centre in Papua New Guinea

ANNUAL REPORT AND ACCOUNTS

Above: Community health workers with specialist training in ophthalmology at Uga Clinic in Nigeria Below: A physiotherapy staff member works with a patient at The Salvation Armyâ&#x20AC;&#x2122;s hospital in Japan Opposite page: Staff at the Toronto Grace Health Centre, during the uncertain days of the COVID-19 pandemic

Centre situated in a mountainous region in the Eastern Highlands and serving a population of 21,000. The Health Centre sees around 400 clients a month and conducts 20 monthly deliveries. The ambulance will assist visitations to 44 outreach points as well as transporting pregnant women whose deliveries become complicated during labour. NIGERIA: The Salvation Army operates two hospitals and five rural clinics which served 4,138 individuals in 2019. One hospital provides care to general and obstetric patients while the other specialises in ophthalmology. All five clinics focus on providing eye care in very remote areas. During 2019/20, IHS provided technical and funding support to the territory enabling the purchase of ophthalmic equipment and local transportation for staff to reach more needy people with vital services. INDIA WESTERN: Emery Hospital in Anand has offered care to local people since 1904 providing medical, surgical, gynaecological, dental and physiotherapy services at the point of need. During 2019/20, IHS provided technical 36

ANNUAL REPORT AND ACCOUNTS

assistance and funding support allowing the purchase of an intensive care unit ventilator, digital processor for X-rays and an automated chemistry analyser for the hospital laboratory to enhance the range of services offered to the local community.

Key Statistics â&#x2014;?

â&#x2014;?

IHS supports 25 hospitals and 106 clinics around the world. These facilities cared for 1,038,677 inpatients and 1,977,860 outpatients during 2019. During 2019/2020, IHS provided direct support and supervision to three nursing colleges and 27 health facilities and conducted nine in-service training sessions with staff and students.

Future Plans IHS will continue to provide support, supervision and inservice education to Salvation Army healthcare facilities around the world, including assisting institutions wanting to renovate their buildings in order to more effectively meet community needs. IHS will closely monitor the impact of the COVID crisis upon Salvation Army hospitals and clinics and assist territories in responding to emerging needs in the most appropriate way for each location, including offering guidance on operating in a COVID-safe manner and facilitating the purchase of personal protective equipment and other required items.

IHS supports 25 hospitals and 106 clinics around the world. These facilities cared for 1,038,677 inpatients and 1,977,860 outpatients during 2019 ANNUAL REPORT AND ACCOUNTS

FIGHTING AGAINST SEXUAL TRAFFICKING AND FOR SOCIAL JUSTICE

ANNUAL REPORT AND ACCOUNTS

OVERALL OBJECTIVE

ACHIEVEMENTS

To take action to combat the massive and growing evil of sexual trafficking and to create awareness of social injustice in the world.

The International Social Justice Commission (ISJC), with its secretariat in New York, advises the General and other senior Salvation Army leaders on matters of social justice. The Directors of the ISJC – supported by a team of experts – are The Salvation Army’s principal international advocates and advisors on social, economic and political issues giving rise to the perpetuation of social injustice in the world. In the period under review, the following were notable achievements:

SPECIFIC AIMS To support victims of human trafficking, work to prevent people being trafficked and raise awareness of social injustice by building capacity in people, developing effective partnerships, sharing quality resources and promoting best practice. Additional goals for the year were to increase passion for justice in The Salvation Army family, to inspire Salvation Army leaders to seek justice and to influence global partners, policy makers and networks to promote justice and peace to improve the lives of many people around the world.

MODERN SLAVERY AND HUMAN TRAFFICKING: The Salvation Army international response to modern slavery and human trafficking around the world continued to evolve during 2019/20. This global, multi-layered response surrounding advocacy, prevention and intervention is a crucial part of the work of the ISJC. The Salvation Army has been described by a leading agency partner head as ‘the world leader in anti-human trafficking’. The ISJC worked

ISJC staff attend the Violence against Women Day at the United Nations

ANNUAL REPORT AND ACCOUNTS

with territorial/national contact persons (NCPs) who are appointed by territorial leaders and have responsibility to coordinate responses to combat modern slavery and human trafficking within their territory. Additionally the ISJC supported territories in the operation of formalised modern slavery and human trafficking response projects, ongoing in more than 35 countries from Malawi to Moldova, Sri Lanka to Sweden and Ukraine to the United Kingdom. Global anti-human trafficking coordination is overseen through a designated ISJC employee with other anti-human trafficking activities during 2019/20 including a day of prayer for victims of trafficking titled ‘Restore Broken Dignity’, formation of an International Modern Slavery and Human Trafficking Response Council, publication of a Modern Slavery and Human Trafficking Action Framework and also Fight for Freedom - The Salvation Army Guide to Fighting Modern Slavery and Human Trafficking available on the ISJC website at https://s3.amazonaws.com/cache.salvationarmy. org/dcd77513-b173-4a4d-acfa-4a811f7dde2a_ Fight+for+Freedom+A+basic+guide.pdf. 40

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UNITED NATIONS: The ISJC, reflecting the international Salvation Army, also campaigns for a holistic understanding of people and an integrated global plan for fair, sustainable and equitable development for all nations. If the Salvation Army wants to continue to have a voice in the global community, it is essential that Salvationists are present at the table and have global and up-to-date knowledge of issues. During the year under review, the ISJC represented The Salvation Army at the United Nations (UN) (and numerous other bodies) seeking to build strong alliances to end extreme poverty and promote sustainable development. The ISJC was actively involved in UN commissions, forums and committees and attended annual events including the International Day of the Girl, International Women’s Day, Indigenous Forum, High Level Political Forum and the General Assembly. ISJC staff and Salvation Army representatives participated and gave leadership at UN groups including Anti-Trafficking Committee, Ecumenical Women, Sustainable Development Committee, Committee on Migration, Committee on

Left: A voice for the voiceless: ‘Cry for Justice’ resources from the ISJC

Religious NGOs, Committee on UNICEF, Commission on Status of Women, Indigenous Committee and the Working Group on Girls. SOCIAL MEDIA: The ISJC social media platforms were actively used during 2019/20 to provide a framework to demonstrate the international work of The Salvation Army and to share outcomes with governments and other partners. Most notably, a 2020 ‘Cry for Justice’ resource was compiled with a video launch by General Brian Peddle and resources and a prayer link made available on the ISJC website at https://www.salvationarmy.org/isjc/2020-cryfor-justice STRENGTHENING GRASSROOTS CAPACITY FOR SOCIAL JUSTICE: An officer capacity building programme continued during the year with the aim to intentionally develop younger Salvation Army officers for social justice ministry. In addition, two interns served at the ISJC during this time. Working with experienced officer mentors, these young graduates developed knowledge about social justice, theology and the UN system. ISJC intern alumni who have completed the programme over the past 11 years are making a significant contribution to Salvation Army justice work around the world.

RESEARCH ON ISSUES OF SOCIAL INJUSTICE: A number of significant research projects were completed by ISJC staff during the year considering such diverse topics as ethical consumerism, early childhood development, gender equity in India, immigrant and refugee outreach and service in South Korea, service without discrimination in Brazil and justice issues for the elderly and children in South Korea. Research methodology workshops and faith-based facilitation training also continued throughout the year with workshops conducted in the Kenya West and Kenya East Territories for officer cadets and territorial staff. The ISJC continues to coordinate the development of resources and research with The Salvation Army’s International Moral and Social Issue Council (IMASIC) and in the year under review a significant International Positional Statement on Sexism was completed and approved by the General for release. In September 2019, IMASIC met with The Salvation Army’s International Theological Council with the aim of going deeper biblically and theologically on matters of human sexuality in order to help equip The Salvation Army and individual Salvationists to live as faithful Christians in the complexities of the 21st century. The meeting explored the topics of inclusion, relationships that are honoured and blessed, same-sex relationships and living with conscientious difference.

ISJC Director Colonel Janet Munn leads prayers at the Church Center for the United Nations

ANNUAL REPORT AND ACCOUNTS

KEY STATISTICS ●

The Salvation Army engages with the UN in Geneva, Nairobi and New York. In the year under review, Salvation Army personnel attended 36 special events and briefings at the UN and hosted 82 meetings at the ISJC building with 2,940 total attendees.

●

During the reporting year, the ISJC homepage had 5,700 direct views with the ISJC having 7,349 Facebook followers with posts in the year reaching from 70 to more than 6,000 people; 1,158 Twitter followers with 12,700 tweet impressions; and 679 Instagram followers with 449 accounts reached.

FUTURE PLANS The ISJC will continue to act as the strategic voice of The Salvation Army advocating for human dignity, human rights and social justice in all parts of the world. Partnering closely with those who have a record of seeking God’s justice for the world, the ISJC will seek to both learn and contribute from a strong Salvation Army worldview. The ISJC will also work with territories to develop locally relevant modern slavery and human trafficking response strategies, particularly in areas where existing capacity is low and poorly resourced. Additionally, The Salvation Army, supported by the ISJC, will campaign for a holistic understanding of people and an integrated global plan for fair, sustainable and equitable development for all nations. To this end, The Salvation Army will continue to partner with other religious groups, other non-governmental organisations, the United Nations, the World Bank Group and others towards the vision of a world where all people can experience life in all its fullness. It is recognised that the programme of UN and other events will be disrupted by the COVID crisis and the ISJC will adapt its work and engagement with other agencies as required in the light of the global pandemic.

ANNUAL REPORT AND ACCOUNTS

FINANCIAL REVIEW

ANNUAL REPORT AND ACCOUNTS

FINANCIAL REVIEW Group accounts for The Salvation Army International Trust incorporating Reliance Bank Limited as its banking subsidiary are presented for 2019/20 as well as charity results, assets and liabilities for The Salvation Army International Trust (see pages 58 to 82 for the Accounts). The Group accounts reflect notable differences to the charity only results most especially for investments, debtors and prepayments, bank balances and current liabilities (see Notes 25-28 to the Accounts) The commentary below relates to the charity-only results for The Salvation Army International Trust with separate comments offered on the subsidiary and group accounts in the labelled section on page 53. The net movement in funds for the year ended 31 March 2020 decreased by £26.52 million, moving from £32.34 million (2019) to £5.82 million (2020). Variances contributing to the total net movement in funds are outlined below.

INCOME Total income decreased from £68.23 million (2019) to £49.44 million (2020) following a year-on-year reduction in external donations and legacies from £26.80 million (2019) to £935,000 (2020) as a significant donation was received from an external donor in 2019. The primary income streams of the Trust are donations from Salvation Army territories to the International SelfDenial Fund to support the work of the global Army and Headquarters Support contributions from Salvation Army territories to fund the operation of IHQ. Contributions from Salvation Army territories to the International Self-Denial Fund increased from £24.95 million (2019) to £26.08 million (2020) while donations from Salvation Army territories also increased from £1.84 million (2019) to £6.34 million (2020) due primarily to contributions in 2020 from USA and other territories towards the IFAS project. Headquarters Support funding from Salvation Army territories showed little movement from £9.40 million (2019) to £9.66 million (2020).

Investment income increased from £4.25 million (2019) to £5.43 million (2020) while income from charitable activities and trading income both remained relatively flat in line with expectations with small year-on-year increases of £100,000 and £7,000 respectively. Gains on disposal of properties reduced from £109,000 (2019) to £0 (2020) as no functional properties were sold during 2020. No Gift Aid donation was received from Reliance Bank Limited in 2020 or the preceding year, as the Bank incurred losses reflecting its investment in its organisational structure and systems as it embarks on a new strategy under the sole ownership of the Trust. The following pie charts illustrate the sources of income for 2019/20 and also contributions to the International Self-Denial Fund.

Investment income increased from £4.25 million (2019) to £5.43 million (2020) 44

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INCOME 2019/2020

Investment Income 11% Fund Generating Activities 0.4%

Charitable Activities 1.6% Gain on Property Disposal 0%

Donations and Legacies 14.7% Self-Denial Fund 52.8%

International HQ Support 19.5%

CONTRIBUTIONS TO SELF-DENIAL FUND 2019/2020 South Pacific and East Asia 6.1%

Africa 3.5%

South Asia 1.1% Europe 14.7%

Americas and Caribbean 74.6%

ANNUAL REPORT AND ACCOUNTS

EXPENDITURE Expenditure across the six charitable activities in which The Salvation Army International Trust is engaged is detailed in Note 10 in the Accounts. Spending on charitable activities totalled £46.50 million (2020) representing a decrease of £2.30 million on the previous year. Financial assistance to Salvation Army territories reduced from £31.46 million (2019) to £28.28 million (2020) as a significant one-off property grant was made to Zambia Territory in 2019. Grants to territories include ‘seed’ funding to develop local income streams and so reduce long-term reliance upon IHQ grants. Expenditure of £10.15 million (2020) was also incurred on International Personnel and Development, £4.04 million (2020) on World Mission and £1.74 million (2020) on Crisis Relief, reflecting the cost of some of the strategies in which the Trust is engaging, as referenced earlier in this report. The cost of raising funds, relating primarily to investment management costs and the cost of letting of property, remained relatively flat with a small increase from £1.39 million (2019) to £1.50 million (2020). The following pie charts illustrate 2019/20 expenditure on charitable activities and also the geographic spread of support of overseas work:

ANNUAL REPORT AND ACCOUNTS

EXPENDITURE 2019/2020 Retired Officers Allowance Scheme 0.3%

World Mission 8.7%

Social Justice 2.5% Crisis Relief 3.7%

Health Services 2.2% Assistance to Salvation Army Territories 60.8%

International Personnel Training and Development 21.8%

SUPPORT OF OVERSEAS WORK 2019/2020 South Pacific and East Asia 8.2%

South Asia 20.1%

Europe 19.4%

Africa 31.4%

Americas and Caribbean 20.9%

ANNUAL REPORT AND ACCOUNTS

Other notable variances contributing to the total net movement in funds include net gains on investment assets which decreased by £10.49 million from £12.68 million (2019) to £2.19 million (2020) reflecting market conditions and representing both the realised and unrealised gains arising on sales and the market value of investments held at year end. There was no recorded defined benefit pension scheme loss during the year due to the timing of the actuarial review. Other gains/losses showed limited movement from £2.85 million (2019) to £2.20 million (2020). The net movement in funds for the year ended 31 March 2020 was £5.82 million with surpluses on unrestricted funds of £4.26 million and of £1.56 million on restricted funds. Total funds of £284.31 million were held at year end.

FUTURE PLANS The Trustee seeks to maintain the strong financial position of the Trust and will continue to explore means to increase the scale and scope of charitable activities while continuing to encourage Salvation Army territories to move towards financial self-reliance through provision of targeted financial support and other resources. The two large-scale international projects underway will materially impact the Accounts of the Trust during 2020/21 and subsequent years, these being the roll out of a new global email solution and implementation of cloud-based accounting software to all financially supported territories. Several material property grants may also be issued during the next year with multiple projects awaiting planning consents and final approval. During 2020/21 a restructuring has already been progressed for SALT College, a training facility in Nairobi, Kenya for Salvation Army territories in Africa that has hitherto been operated and managed as an integral part of the Trust. This has been registered in Kenya as a separate legal entity controlled by SAITCo to which the Trust transferred assets and so, from 2020/21, will no longer be reported within the charity-only accounts of the Trust but within the Group accounts. The assets transferred from the Trust to the new entity are not material to the Trust.

GOING CONCERN The Trustee reviews the financial plans of the Trust on an ongoing basis as part of a programmed budget cycle including consideration of principal financial risks. The Trustee recognises the material pension liability arising from participation of the Trust in The Salvation Army Employees’ Pension Fund (see Note 17 in the Accounts) and is well placed to meet its obligations in this regard. The operation of the Trust and ability to meet the objectives outlined throughout this report are recognised as impacted by the ongoing COVID crisis. Since 31 March 2020 to the date of signing of these financial statements the outbreak of the pandemic has had a significant economic impact across all sectors and the Trustee has considered the effect on the Trust as a going concern, its resilience through this period and the effect on the assets and funds of the Trust. In addition to the operations of the Trust, SAITCo is actively monitoring the impact of the pandemic upon Salvation Army territories with multiple working parties undertaking tasks in specific areas and regular updates provided to the Board considering the impact of the COVID crisis upon global Salvation Army operations, the financial position of the Trust, 48

ANNUAL REPORT AND ACCOUNTS

the reserves policy of the Trust, the investment portfolio of the Trust and associated logistical matters. Material additional grants have been issued by the Trust post year end to financially supported territories in the light of emergent funding needs arising from the COVID crisis with specific controls and safeguards developed for these awards in addition to standard project protocols. SAITCo has approved a reduction in the Self-Denial Reserve target for the 2020/21 year end from 12 months equivalency in support of overseas work to 9 months equivalency which would allow release of additional grants to territories in the region of £5-6 million, if required, while leaving the Trust well placed to meet its obligations recognising that the level of grants awarded by the Trust to territories is within the control of SAITCo. The Trust holds a strong balance sheet with availability and liquidity of cash and unrestricted investments with, for example, current liabilities including amounts due to Salvation Army territories at the 2019/20 year end totalling £11.16 million against net current assets of £64.25 million of which £20.46 million is held in highly liquid current asset investments and cash at bank.

The Trustee is confident the Trust is well placed to meet the COVID crisis and continue to achieve its grant-making and other objectives due to its strong financial position, investment strategy and reserves policy (see below) all underpinned by the governance structures of SAITCo. The Trustee continues to monitor developments closely in relation to the COVID crisis and other external events and remains confident that the level of reserves held is adequate

INVESTMENTS

Listed investments (see Note 25 in the Accounts) are managed under the terms of an investment management agreement with Sarasin & Partners LLP. The investment manager is required to make investments on behalf of the Trust in line with benchmarks that have been set and against which performance is measured. The Investment Committee which sits to review investment performance receives periodic reports on matters pertinent to its investment policy and this facilitates discussion which, in turn, enhances the committee’s understanding of the relationship between its Christian conviction and ethos and investment return; and even more importantly, the positive effect that its policy can have on companies which themselves may (or may not) be seeking to improve conditions in many parts of the world. The reports are tabled at full board meetings so that those directors who do not sit on the Investment Committee have an opportunity to add to the debate and have greater understanding of the issues that the Trust can tackle through its investment policy. SAITCo has established an ethical investment policy to reflect The Salvation Army’s ethical and moral stance. Therefore, this policy excludes investment in companies

in the changing economic climate and does not impact adversely on the Trust’s going concern status. The Trustee is satisfied that the Trust has sufficient resources to continue operating for the foreseeable future and accounts have been prepared in the knowledge that the Trust is a financially viable organisation.

which derive more than 10% of their revenues in aggregate from any of the following categories: a. the production and/or sale of alcohol b. the production and/or sale of tobacco c. the manufacture and/or sale of whole weapons, weapon platforms and weapon systems d. the manufacture and/or sale of strategic parts for weapon systems e. the promotion or operation of gambling enterprises f. the provision of adult entertainment services g. the publication and/or sale of pornographic media h. the extraction of thermal coal or the production of oil from tar sands For the avoidance of doubt in relation to sub-paragraphs (c) and (d) above, ‘weapons’ refers to both nuclear and conventional weapons. In addition, investment is excluded in companies with disregard for human rights and/or the pollution of the environment. The following table gives the long-term ranges and current weightings expressed in percentages of the Trust’s investment funds:

ASSET TYPE AT 31/03/20

YEAR END POSITION LONG-TERM RANGE

WEIGHTINGS

Fixed Income

10 - 30%

17.9%

Equities

70 - 90%

80.5%

0 - 5%

1.6%

Liquid Assets TOTAL

100%

ANNUAL REPORT AND ACCOUNTS

For the year ended 31 March 2020, the portfolio total return amounted to 4.0% per cent against an ethically adjusted benchmark return of -3.1% per cent. Before the COVID crisis the portfolio was positioned for an already slow global economy, however the rapid spread and extent of the pandemic and its economic impact prompted an immediate reassessment of the strategy. The portfolio is diversified across high-level themes and, while there may be some shorter-term disruption to aspects of each theme, the long-term strategy is considered sound with an acceleration in thematic trends possible in some targeted areas. As the pandemic began to spread, the fund manager retested the investment case for every stock in the portfolio and in each case the careful Financial, Environmental, Social and Governance analysis and the strong underlying thematic drivers meant there were no immediate major changes to be made. The portfolio benefitted from strong performance post year end with, for example, total funds held in the main portfolio of the Trust with the fund manager increasing from £122.39 million (31 March 2020) to £152.28 million (31 December 2020). Investment strategy going forward will continue to be closely monitored by the Investment Committee and responsive to COVID-related and other events and emergent market conditions.

GRANTS In supporting the Army’s work overseas, territories, commands and regions produce annual budget proposals, covering all aspects of their operations that are reviewed at IHQ. Annual grants are allocated by the Trustee and paid quarterly in advance to each financially supported territory, command and region (see Note 11 in the Accounts). Payments from IHQ to territories are made according to the terms of an International Payments Procedure Manual for IHQ (reviewed and updated in March 2019) which outlines controls over banking transfers, assessment of overseas banking institutions for risk, identification and assessment of situations where funds paid to territories may be remitted on to third parties, controls over international payments direct to overseas suppliers, controls over transporting and controlling cash overseas and prohibitions on use of nonmainstream banking money transfer organisations.

ANNUAL REPORT AND ACCOUNTS

RESERVES The total funds of the Trust at 31 March 2020 amounted to £284.31 million comprising £29.66 million in restricted funds and £254.65 million in unrestricted funds which includes £224.86 million in designated funds. The General Reserve held £5.82 million at year end which met the target level for free reserves. The Trustee continues to keep the matter of reserves under review, with a project ongoing to reduce the number of different funds held and also examine any historic funds with minimal movement in the past few years

Restricted Funds

Where possible the intention continues to use restricted donations and legacies in the year of receipt, except where the gift is sufficiently large to be used over a longer period.

Designated Funds

The Self-Denial Fund Reserve represents amounts held to ensure sufficient funds are available to make operational grants to supported territories that are paid in advance on a quarterly basis. The aim of the Trustee is for the balance on this Reserve to be sufficient to fund one year’s expenditure in support of overseas work. The balance as at 31 March 2020 of £23.21 million is equivalent to 12.0 months’ expenditure. Material additional grants have been issued by the Trust post year end to territories in the light of emergent funding needs arising from the COVID crisis and SAITCo has approved a reduction in the Self-Denial Reserve target for the 2020/21 year end from 12 months equivalency in support of overseas work to nine months equivalency which would allow release of additional grants to territories in the region of £5-6 million if required. Other material designated amounts at 31 March 2020, within the Property Commitments Fund, include a reserve held to fund future replacement of the IHQ building (£17.08 million), a Property Commitments Reserve (£4.33 million) held to fund property acquisitions by the Trust over the next two-to-three years and an International Property Project Reserve (£6.39 million) held to provide additional property project funding to territories over the next two-to-three years. In addition, within Other Designated Funds, an International Financial and Accounting Standards Implementation Reserve (£7.53 million) is held to fund provision of cloud-based accounting software to territories over the next two-to-three years and an IT Development Reserve (£6.32 million) is held to fund provision of a new global email solution to territories over the next two-to-three years. Also within Other Designated Funds, an International Schools Development Reserve (£8.88 million) is held to provide additional schools project funding to territories over the next two-to-three years, a Leadership Development Reserve (£3.60 million)

is held to fund the enhancement of training and personal development for Salvation Army officers over the next threeto-four years and a Mission Support Reserve (£2.62 million) is held to provide additional project funding to territories over the next two-to-three years. A separate Exchange Equalisation Fund (£5.33 million) is also maintained to cover exchange losses.

General Reserve

The General Reserve represents the working capital required to fund the day-to-day needs of the Trust. The aim of the Trustee is for the balance on the General Fund Reserve to cover equivalent to 6.0 months expenditure on headquarters administration costs. The current balance of £5.82 million is

just above the target level for free reserves, being equivalent to 7.1 months expenditure.

PRINCIPAL RISKS AND UNCERTAINTIES The Trustee acknowledges its responsibilities relating to the management of risk. A formal risk management programme continues to operate allowing risks to be identified, classified and prioritised in terms of potential occurrence and impact. The Board of Directors of SAITCo has appointed a Risk Management Committee consisting of eight members, including a Non-Executive Director. ANNUAL REPORT AND ACCOUNTS

A Risk Manager has been appointed and a Risk Register is maintained and kept under regular review by the Risk Manager and the Risk Management Committee. The Risk Management Committee works with the Risk Owner of each major risk to ensure acceptable action is taken to manage the risk and to establish suitable systems to reduce the likelihood of harmful outcomes occurring and the impact on the organisation should they occur. In addition to the above framework, a range of emergency protocols are in place allowing SAITCo to actively monitor the impact of the COVID crisis upon the operations of the Trust as well as those of Salvation Army territories with multiple working parties undertaking tasks in specific areas and regular updates provided to the Board considering the

KEY RISK

impact of the COVID crisis upon global Salvation Army operations, the financial position of the Trust, the reserves policy of the Trust, the investment portfolio of the Trust and associated logistical matters. Risk management protocols and key risks at Reliance Bank Limited are outlined in the section relating to the Bank on Pages 8-9. The main risks and uncertainties faced by the Trust, as detailed in the Risk Register at the end of the financial year under review, are outlined below in topdown priority order together with a summary of the mitigating strategies being pursued to manage these risks:

RISK MANAGEMENT

A serious safeguarding incident resulting in harm to a child or vulnerable adult and subsequent reputational damage to the local/ international Salvation Army.

Establishment of an international safeguarding office at IHQ. Ongoing development of safeguarding policies and procedures for IHQ and all Salvation Army territories.

National economic and/or political crises adversely impacting Salvation Army operations in a territory prompting additional emergency support from IHQ.

Continuous IHQ monitoring of economic and political contexts on a country-by-country basis. Development of crisis management protocols for IHQ interventions.

Local issues resulting in use of donor restricted funds within a territory for non-specified purposes.

Continuous IHQ monitoring of application of project funds via bespoke databases. Policies and procedures in place to regulate use of project funds. Internal and external audits undertaken for project related activity depending on the extent of perceived risk.

Local issues in a territory resulting in demands for additional IHQ financial support and/or reputational damage to the local/international Salvation Army.

Continuous IHQ monitoring of global operations on a territory-by-territory basis. A suite of policies and procedures in place to manage operational risks. Internal audits undertaken periodically depending on the extent of perceived risk.

Changes in national legislation (including tax codes) adversely impacting Salvation Army operations in territories and engagement of territories with IHQ.

Continuous monitoring of legislative contexts on a country-by-country basis overseen by IHQ legal counsel liaising with locally appointed lawyers.

Deficient financial administration in territories resulting in demands for additional IHQ financial support and/or reputational damage to the local/ international Salvation Army.

Global project team led from IHQ implementing cloud-based accounting software for all financially supported territories alongside roll out of new International Financial and Accounting Standards. Internal and external audits of territories undertaken with continuous IHQ monitoring of global operations on a territory-by-territory basis.

ANNUAL REPORT AND ACCOUNTS

SUBSIDIARY COMPANY – RELIANCE BANK LIMITED The banking company, Reliance Bank Limited (the ‘Bank’), is a wholly owned subsidiary of the Trust. The Bank has incurred losses for the full financial year, reflecting its continued investment in its organisational structure and systems. The Bank of England Base Rate was maintained at 0.75% for much of the year before being reduced to its lowest level on record, 0.10%, on a staggered basis during March 2020, in response to the economic risks posed by COVID-19. The Bank has successfully grown its lending to customers during the year, with a continued focus on those delivering a positive social impact and has improved its interest income accordingly. Income from wholesale investments has also increased during the year with the growth in wholesale assets and customer lending being funded, primarily, from growth in customer deposits. The Bank’s performance for the full year ended 31 March 2020 was impacted by some exceptional costs and resulted in an Operating Loss of £1,488,327 (2019: Operating Loss of £685,493). There has been accelerated investment in improving the Bank’s control systems and in developing an organisational structure required to deliver the Bank’s transformation plans under its five-year strategic plan. After the issue of new share capital in the year and deferred tax movements, capital has decreased by £490,764 (2019: increased by £852,141) to £11.65 million. Owing to the Bank’s loss position this year, no Gift Aid donation has been made to the Trust (2019: £0). The total of the Bank’s assets at 31 March 2020 amounted to £198.45 million (2019: £184.25 million) and reflects the growth in lending to customers and an increase in balances held with other financial institutions, including the Bank of England. Total liabilities amounted to £186.80 million (2019: £172.10 million). This reflects increased deposits from Salvation Army customers and other UK charity and business customers. The Bank continues to maintain excellent liquidity and funding levels. The above comments relate to the performance of the Bank over the full 2019/20 financial year with full year comparatives for the prior year, while the Group Accounts for the prior year reflect only five months of the Bank’s operations as the accounts of Reliance Bank Limited were consolidated with those of The Salvation Army International Trust from the date the Trust acquired the Bank (31 October 2018). A major development that occurred towards the end of the financial year was the COVID crisis and the unprecedented disruption that this has already had on people’s livelihoods, businesses’ ability to continue trading and wider Government policy. In isolation, the impact of a reduction

to the Bank of England Base Rate and downward pressure on interest rates in general will suppress the returns available on wholesale assets as they mature. Of particular concern is the potential impact on the Bank’s customers and the Bank has already begun to provide support where it can in the form of repayment holidays and exploring tailored lending propositions. There are a number of unknowns around the extent of the impact that COVID-19 will eventually have, including the impact on property prices, with the expectation that there will be an increased credit risk across the financial system. The steps the UK Government has taken to date have helped support individuals and businesses through the early stages of the disruption. The Bank strengthened its credit risk systems and added additional senior level management in this area at the outset of the UK COVID outbreak. The Bank has also demonstrated its operational resilience in implementing business-wide remote working arrangements and continued to provide its full range of services during lockdown without disruption. Regular updates on the impact of the COVID crisis upon the Bank are provided to SAITCo in addition to the established mechanisms in place for performance reporting.

GROUP ACCOUNTS The Group Accounts comprise the results of The Salvation Army International Trust plus the subsidiary company Reliance Bank Limited for the period 1 April 2019 to 31 March 2020. The net movement in funds for the Group showed an increase of £4.86 million. Net goodwill at year end amounted to Negative £4.74 million as set out in Note 22 to the Accounts. Total fixed assets including investments amounted to £274.18 million. Net current assets were £12.79 million. Total funds of the Group amounted to £282.77 million at year end as set out in Note 20 to the Accounts.

STATEMENT OF TRUSTEE’S RESPONSIBILITIES The Trustee is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under ANNUAL REPORT AND ACCOUNTS

The Charity Law the Trustee 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 incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustee is required to: ●

select suitable accounting policies and then apply them consistently;

●

make judgements and accounting 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 Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s transactions and disclose with reasonable accuracy at any time the financial position of the group and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF THE SALVATION ARMY INTERNATIONAL TRUST Opinion We have audited the financial statements of The Salvation Army International Trust (‘the Parent Charity’) and its subsidiary (‘the Group’) for the year ended 31 March 2020 which comprise the consolidated statement of financial activities, the statement of financial activities (charity only), the consolidated balance sheet, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: ●

give a true and fair view of the state of the Group’s and of the Parent Charity’s affairs as at 31 March 2020 and of the Group’s and the Parent’s incoming resources and application of resources for the year then ended; and

The Trustee has approved this 2019/20 Annual Report and Accounts on this basis.

●

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

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 charity’s website is the responsibility of the trustee. The trustee’s responsibility also extends to the ongoing integrity of the financial statements contained therein.

●

have been prepared in accordance with the requirements of the Charities Act 2011 and The Salvation Army Act 1980.

For and on behalf of the directors of The Salvation Army International Trustee Company. Dr Matthew Carpenter BA, MBA, DBA, MCMI Company Secretary 29 January 2021

ANNUAL REPORT AND ACCOUNTS

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the Parent Charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (FRC) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions related to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: ●

●

the Trustee’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or the Trustee has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Group or the Parent Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least 12 months from the date when the financial statements are authorised for issue.

Other information The other information comprises the information included in the Report and Accounts, other than the financial statements and our auditor’s report thereon. The other information comprises: The Trustee’s Report, Direct Contributions from Territories Towards Special Projects and The Salvation Army Worldwide Facts and Figures. The Trustee is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion; ●

the information contained in the financial statements is inconsistent in any material respect with the Trustees’ Annual Report; or

●

adequate accounting records have not been kept by the Parent Charity; or

●

the Parent Charity financial statements are not in agreement with the accounting records and returns; or

●

we have not received all the information and explanations we require for our audit.

Responsibilities of Trustee As explained more fully in the Statement of Trustee’s Responsibilities, the Trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustee is responsible for assessing the Group’s and the Parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the Group or the parent Charity or to cease operations, or have no realistic alternative but to do so.

ANNUAL REPORT AND ACCOUNTS

A young member of a family living at a post-tsunami housing project, Sri Lanka

Auditor’s responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (‘FRC’s’) website at: https://www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor’s report.

Use of our report This report is made solely to the Charity’s trustee, as a body, in accordance with the Charities Act 2011 and The Salvation Army Act 1980. Our audit work has been undertaken so that we might state to the Charity’s trustees 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 as a body, for our audit work, for this report, or for the opinions we have formed.

Jill Halford (Senior Statutory Auditor) For and on behalf of BDO LLP, Statutory Auditor, London, UK Date: 29 January 2021 BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

ANNUAL REPORT AND ACCOUNTS

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2020

THE SALVATION ARMY INTERNATIONAL TRUST CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2020

All activities reported above, in both the current and preceding year, relate to continuing activities.

ANNUAL REPORT AND ACCOUNTS

STATEMENT OF FINANCIAL ACTIVITIES (CHARITY ONLY) FOR THE YEAR ENDED 31 MARCH 2020

All activities reported above, in both the current and preceding year, relate to continuing activities.

ANNUAL REPORT AND ACCOUNTS

STATEMENT OF FINANCIAL ACTIVITIES (CHARITY ONLY) FOR THE YEAR ENDED 31 MARCH 2020

THE SALVATION ARMY INTERNATIONAL TRUST

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2020

THE SALVATION ARMY INTERNATIONAL TRUST CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2020

Approved on behalf of The Salvation Army International Trustee Company on 29 January 2021 by: Lyndon Buckingham – Chairman Lee Graves – Managing Director 60

ANNUAL REPORT AND ACCOUNTS

CONSOLIDATED CASH FLOW FOR THE YEAR ENDED 31 MARCH 2020

THE SALVATION ARMY INTERNATIONAL TRUST CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

ANNUAL REPORT AND ACCOUNTS

NOTES TO THE CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2020