Company Registration No. 06368740 (England and Wales)
Development Initiatives Poverty Research Limited
Annual report and financial statements
for the year ended 31 December 2021
Development Initiatives Poverty Research Limited
Company information
Directors
Harpinder Collacott
Dr Alex Ezeh
Timothy Takona
Paul Stuart
Elizabeth Drew
Susan Wardell
(Appointed 1 March 2021)
Mary Chege
(Appointed 27 October 2021)
Kapil Kapoor
(Appointed 27 October 2021)
Zhi Huan Wu
(Appointed 16 November 2021)
Annie Namala
(Appointed 31 January 2022)
Secretary
Janet Reilly
Company number
06368740
Registered office
1st Floor Centre
The Quorum
Bond Street South
Bristol
BS1 3AE
Independent auditor
Saffery Champness LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Development Initiatives Poverty Research Limited
Contents
Page
Directors' report
1 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 11
Income statement
12
Statement of financial position
13
Statement of changes in equity
14
Notes to the financial statements
15 - 24
Development Initiatives Poverty Research Limited
Directors' report
For the year ended 31 December 2021
Page 1
The directors present their annual report and financial statements for the year ended 31 December 2021.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Harpinder Collacott
Dr Alex Ezeh
Timothy Takona
Paul Stuart
Tina Blazquez-Lopez
(Resigned 11 February 2021)
Elizabeth Drew
Diane Kingston
(Resigned 22 October 2021)
Susan Wardell
(Appointed 1 March 2021)
Mary Chege
(Appointed 27 October 2021)
Kapil Kapoor
(Appointed 27 October 2021)
Zhi Huan Wu
(Appointed 16 November 2021)
Annie Namala
(Appointed 31 January 2022)
Principal activities
Development Initiatives Poverty Research Limited ("DI") exists to provide data-drive evidence and analysis, technical support to strengthen data ecosystems, and advisory programmes to support partners to:
-
Better respond to people’s needs through improved quality and use of data and evidence in policymaking
-
Improve the quantity, quality and coherence of public finance and private investment
-
Challenge systemic and structural barriers to equity and support the reform of existing systems.
Our purpose
is to apply the power of data and evidence to build sustainable solutions that create an equitable and resilient world.
Our mission
is to work closely with partners to ensure data-driven evidence and analysis are used effectively in policy and practice to end poverty, reduce inequality and increase resilience.
We work at global, national and local levels, through a global hub connected to a growing network of regional hubs and partners.
Development Initiatives Poverty Research Limited
Directors' report (continued)
For the year ended 31 December 2021
Page 2
2021 key achievements
The world continued to struggle with the significant health, social and economic impacts of the Covid-19 pandemic throughout 2021. We saw inequality rising and countries pushed further off track from achieving the Sustainable Development Goals (SDGs). Global poverty and unemployment rose, and the unequal roll-out of vaccines across the world meant an imminent recovery remained out of reach for most countries. It was against this backdrop that the world also came together in Glasgow for The UN Climate Change Conference in Glasgow (COP26) to set new ambitions to cut greenhouse gas emissions.
Our world today is ever more interconnected and faces challenges that only a truly global response can overcome. Global cooperation and strong international public finance are essential to foster an inclusive and sustainable recovery from Covid-19 and mobilise resources to achieve the SDGs and build back better. As the pandemic has underscored, national efforts alone will not suffice. Stronger and more ambitious international cooperation will remain critical to contain the pandemic, and accelerate a robust and inclusive global recovery.
DI’s new ten year strategy and regionalising for the future
2021 was also the year Development Initiatives (DI) launched its new strategy, setting out the mission we want to achieve over the next 10 years and a road map for how we will get there. We began our transition towards an organisation that is situated closer to the partners it seeks to serve and inform, to ensure data-driven evidence and analysis are used effectively in policy and practice to end poverty, reduce inequality and increase resilience.
DI has always been committed to localisation and has had regional offices employing exclusively local staff. In 2021, through the new strategy, we began the conscious process of expanding our network of hubs across the world. This will allow DI to truly support sustainable, inclusive progress that equips and empowers partners to maximise impact in their communities, countries and regions. At the end of 2021, we appointed a new East Africa Director based in Nairobi, Kenya to lead the creation of a fully established hub in the Africa region in 2022 – the first of more to come. An international hub will remain to contribute to global efforts towards delivering our mission.
Financing development
DI continued its important work of ensuring that international public finance is working as effectively as possible to ensure inclusive global progress. We provided thought leadership and facilitated dialogue on Global Public Investment - a concept for transforming international cooperation - led by a multistakeholder initiative where DI played a key role on its official expert working group and steering committee throughout 2021. We led the first ever consultation on Global Public Investment across East Africa, convening stakeholders from Ethiopia, Kenya, Somalia and Tanzania with representation from government, civil society and think tanks to discuss its viability. A core group is now forming in Africa to take GPI forward and ensure co-creation of a model that works for and is truly co-owned by Africa.
DI’s analysis of Official Development Assistance (ODA) continued to inform our partners’ advocacy and campaigns to increase volumes and improve targeting of people living in extreme poverty. Our close tracking of humanitarian and nutrition financing provided vital information for specific sector experts and government officials to inform their financing commitments. The launch of the Nutrition Accountability Framework by the Global Nutrition Report (GNR), hosted by DI, supported the 2021 Tokyo Nutrition for Growth Summit to mobilise SMART and ambitious financial and policy commitments to tackle malnutrition.
Development Initiatives Poverty Research Limited
Directors' report (continued)
For the year ended 31 December 2021
Page 3
Our assessments on aid using IATI data during the unfolding of the pandemic have been pioneering, and crucially, using a full year of data from 2020, we were able to set out clearly the extent to which this real-time data can be used to understand what is happening to aid spending. For the first time, actors who need data on ODA can now fully understand the value that is possible from the data that is currently published to IATI whilst understanding the limitations of what it can currently tell us. Regionally, our Africa hub contributed a range of novel analyses using near real-time IATI (International Transparency Initiative) data on how international public financing appears to be shifting following the onset of the pandemic, highlighting implications for those countries and key considerations for donors if we are to get poverty reduction back on track.
Working with Governments
At the same time, we went deeper in certain countries with analysis of their domestic budgets during the pandemic, as well as exploring the impacts of loans from international financing institutions for countries like Uganda and Kenya at a time of rising debt levels. A summary of our findings from our data landscaping work assessing countries’ efforts to improve data systems that support leaving no one behind highlighted the scale of the challenge, informing discussions at the 2021 World Data Forum held in Bern, Switzerland.
In Nepal, Development Initiatives has been continuing its work with the Asia Foundation on a ‘Data for Development’ project. In 2021 we conducted national data landscaping in Nepal as part of this work and produced a toolkit of guidance and resources for local municipalities to understand and strengthen their own data ecosystems.
We continued our longstanding support to the Benin Government to harness their national data to implement a Leave No One Behind approach right down to subnational levels.
In Kenya and Uganda we worked closely with partners as part of the ‘
Inclusion Works’
programme that aims to ensure persons with disabilities have access to employment. Focussing on data in this endeavour, in 2021 we trained staff in government departments and civil society organisations on how to access and improve data that ensures persons with disabilities are counted and included.
Responding to Crisis
DI produced a varied and impactful portfolio of work to inform and strengthen humanitarian and crisis response in 2021. We contributed a range of robust and comprehensive analyses to support decision makers and those who influence them to understand the latest data on humanitarian financing. Our flagship Global Humanitarian Assistance (GHA) report was launched at the UN’s Economic and Social Council Humanitarian Affair’s segment alongside UN OCHA’s Global Humanitarian Overview, bringing together an important discussion with high-level representatives from Global Affairs Canada, NRC, the Start Network and Kenya Red Cross on opportunities, challenges and lessons for the humanitarian system from the Covid-19 response. This was complemented by a piece of joint research with the International Rescue Committee (IRC) demonstrating how humanitarian response has failed to keep pace with the Covid-19 pandemic, setting out recommendations on how this could be improved.
Development Initiatives Poverty Research Limited
Directors' report (continued)
For the year ended 31 December 2021
Page 4
We also made a significant contribution on humanitarian transparency through our support to the co-conveners of the Grand Bargain transparency workstream. As the original Grand Bargain agreement came to an end and it was uncertain whether transparency would be taken forward as a key priority, despite its vital role in improving quality funding and localisation. Through DI’s efforts convening a wide range of humanitarian actors, including donors, INGOs and national and local organisations, we orchestrated a written submission strongly setting out the importance of maintaining efforts and commitments on transparency in the humanitarian system and ensuring continued improvements in humanitarian response. As a result, transparency now remains at the heart of the Grand Bargain agenda and the transparency commitments from the first agreement remain in place.
Our experts continue to serve on multiple external advisory boards and committees, including the Expert Working Group and Steering Committee of a new concept for international public financing, Global Public Investment (GPI), the organising committee of the UN World Data Forum, the technical working group of the Global Partnership for Sustainable Development Data, and Bond’s Future Dialogues group on an international development system for a post-2030 world.
We also brought four new members onto our Board in 2021, who are experts from around the world on data, policy and supporting marginalised communities. Their experience and expertise will continue to enrich our Board and inform our strategic direction as we look to 2022 to implement our new strategy.
Supporting staff during the pandemic
With the continuing challenges of working under varying and ever changing Covid-19 rules across our locations, our priority in 2021 was staff wellbeing. We have a team of mental health first aiders who continued to provide an important touchpoint for staff to ensure they were aware of support available and able to access it. We conducted workshops for ‘Strategies for Personal Resilience’ and closed our offices for 3 days in August in addition to annual leave so that all staff were given a much-needed moment for rest and recuperation. Where possible, we enabled social events to help staff reconnect and rebuild interpersonal relationships that had been more challenging whilst working remotely fulltime. Our Bristol office also moved premises in early 2021 to enable more creative and collaborative workspaces alongside a comfortable and inviting environment that supports staff well-being at work, including on-site exercise facilities.
Investing in systems and security
Working globally, strong IT infrastructure is particularly key to helping our staff work effectively and enable relationships to thrive even when remote. In 2021 our main physical location in the UK had a full data and telecoms refresh, and we made significant improvements in our East Africa Hub, commissioning a local IT company to provide tailored and ongoing support. We also achieved Cyber Essentials accreditation through our investment in increasing our cyber security and continue to ensure staff are trained and protected against cyber-crime.
Living our values: Equality, Diversity and Inclusion
Our new 10-year strategy brought new values conceived by our staff to reflect the organisation we are and the ways of working that matter most to us; person-centred, purpose-driven and transparent. We also set out 6 foundational principles underpinning our work centred on people, simplicity, partnerships, perseverance, transformation and high performance which underpin our culture and how we work.
Development Initiatives Poverty Research Limited
Directors' report (continued)
For the year ended 31 December 2021
Page 5
In line with our new values and principles, we built on our efforts towards Equality, Diversity and Inclusion (EDI) to establish strong foundations that will underpin a positive staff culture and supportive work environment. We commissioned an EDI audit and survey, using its results and recommendations to celebrate progress and create a plan that will ensure we excel as an inclusive employer. We continue to monitor and voluntarily publish our gender pay gap. While this has increased since 2020 when our gap was -5.53%, we remain below the UK’s national average pay gap and we are committed to closing it. DI’s mean gender pay gap in 2021 stood at 3.18% in comparison to the UK’s national average pay gap of 7.9%.
It was also vital that we took efforts to ensure our pay and benefits reflect the fairness with which we want to treat every member of staff and the value they bring to the organisation. We carried out a comprehensive pay and benefits benchmarking exercise, developed a framework for our reward and remuneration strategy and agreed remuneration principles with the board. We developed a new set of pay ranges based on new career levels and positioned all our staff correctly within our new pay structure. The next phase in 2022 will see us establish criteria to support personal and professional development and a shift to agile performance management.
A range of key appointments were made in 2021 including a new role to lead our work on poverty and inequality, as well as a Chief Operating Officer and a new Director for our East Africa offices. The recruitment market remains competitive and so our reward and remuneration approach enables us to have competitive salaries and an attractive offer that will stand us in good stead moving forwards.
Financial view
A range of organisations continue to support and fund our work, primarily private philanthropic foundations, governments and multilateral organisations that are committed to global development and ending poverty. Our income in 2021 increased by £671,831 to £5,808,359 driven largely by income from our consultancy arm, DII. Our reliance on UKAID funding decreased following cuts as part of the UK government's reduction in their aid spending.
As a pandemic continued, DI saw even further reductions in travel falling from £85,321 to £45,987. We anticipate travel will increase in 2022 as the vaccine programmes begin to deliver results and the world starts to open up to foreign travel.
In 2021, as in previous years, our highest expenditure remained our staff costs and professional services. We increased our staff numbers from 80 to 93 and as a result staff costs also increased. This was also as a result of investment in staff salaries following a pay review and an extensive benchmarking exercise. Training costs were slightly higher in 2021 (£29,516) than in 2020 (£26,826). Our consultant costs were down from £1,103,580 in 2020 to £999,163 in 2021 as a result of the effect of the pandemic on the general activities of the organisation.
In the first quarter of 2021 DI also moved offices, saving in rent during a time when the offices were closed, and the re-fit was underway. As a result, our rent and rates were lower in 2021 than in previous years. However, DI has secured a lease to support the re-fit costs amounting to £60,360 and will be repaid over five years.
The income pipeline for 2022 is healthy, with staff and programmes in place to continue to strengthen our work as a trusted partner working at the global, regional, national and local levels to ensure data-driven evidence and analysis are used effectively in policy and practice to end poverty, reduce inequality and increase resilience.
Development Initiatives Poverty Research Limited
Directors' report (continued)
For the year ended 31 December 2021
Page 6
Auditor
Saffery Champness LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Harpinder Collacott
Director
4 August 2022
Development Initiatives Poverty Research Limited
Directors' responsibilities statement
For the year ended 31 December 2021
Page 7
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Development Initiatives Poverty Research Limited
Independent auditor's report
To the members of Development Initiatives Poverty Research Limited
Page 8
Opinion
We have audited the financial statements of Development Initiatives Poverty Research Limited (the 'company') for the year ended 31 December 2021 which comprise the income statement, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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 company's affairs as at 31 December 2021 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s 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 relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Development Initiatives Poverty Research Limited
Independent auditor's report (continued)
To the members of Development Initiatives Poverty Research Limited
Page 9
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of
the
audit
:
-
the information given in the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are 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 directors determine 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
directors are
responsible for assessing the company
'
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 directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Development Initiatives Poverty Research Limited
Independent auditor's report (continued)
To the members of Development Initiatives Poverty Research Limited
Page 10
Auditor's responsibilities for the audit of the financial statements
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
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud
.
Development Initiatives Poverty Research Limited
Independent auditor's report (continued)
To the members of Development Initiatives Poverty Research Limited
Page 11
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Strong (Senior Statutory Auditor)
For and on behalf of Saffery Champness LLP
11 August 2022
Chartered Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Development Initiatives Poverty Research Limited
Income statement
For the year ended 31 December 2021
Page 12
2021
2020
Notes
£
£
Turnover
5,808,359
5,136,528
Operating costs
(5,635,035)
(5,141,907)
Operating surplus
173,324
(5,379)
Interest receivable and similar income
4
45,144
43,307
Interest payable and similar expenses
(38,756)
(9,575)
Surplus before taxation
179,712
28,353
Tax on surplus
(219)
(541)
Surplus for the financial year
179,493
27,812
Development Initiatives Poverty Research Limited
Statement of financial position
As at 31 December 2021
Page 13
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
5
26,770
38,400
Tangible assets
6
156,335
10,229
Investments
7
72,000
64,800
255,105
113,429
Current assets
Debtors
8
1,416,475
691,884
Cash at bank and in hand
1,179,130
2,146,764
2,595,605
2,838,648
Creditors: amounts falling due within one year
9
(2,138,452)
(2,498,218)
Net current assets
457,153
340,430
Total assets less current liabilities
712,258
453,859
Creditors: amounts falling due after more than one year
10
(78,906)
Net assets
633,352
453,859
Capital and reserves
Total equity
633,352
453,859
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 4 August 2022 and are signed on its behalf by:
Harpinder Collacott
Director
Company Registration No. 06368740
Development Initiatives Poverty Research Limited
Statement of changes in equity
For the year ended 31 December 2021
Page 14
Profit and loss reserves
£
Balance at 1 January 2020
426,047
Year ended 31 December 2020:
Surplus and total comprehensive income for the year
27,812
Balance at 31 December 2020
453,859
Year ended 31 December 2021:
Surplus and total comprehensive income for the year
179,493
Balance at 31 December 2021
633,352
Development Initiatives Poverty Research Limited
Notes to the financial statements
For the year ended 31 December 2021
Page 15
1
Accounting policies
Company information
Development Initiatives Poverty Research Limited is a
private
company
limited by guarantee
incorporated in
England and Wales
.
Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.
The registered office is
1st Floor Centre, The Quorum, Bond Street South, Bristol, BS1 3AE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest
£1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the Company's activities or grants made to the Company. Turnover is shown net of value added tax, returns, rebates and discounts.
The Company recognises revenue when:
-
The Company has entitlement to the revenue, having discharged applicable restrictions on how the funds can be applied;
-
Economic benefits have flowed or future economic benefits are reasonably certain to flow to the Company;
-
The amount of revenue can be reliably measured.
Where a contract spans more than one reporting period, revenue for that contract is recognised in proportion to the total costs incurred to date, unless the contract assigns values for specific performance obligations.
Development Initiatives Poverty Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 16
1.3
Intangible fixed assets - goodwill
Goodwill arising on the acquisition of
an entity
represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over the useful life as follows:
Asset class
Amortisation method and rate
Goodwill 20% straight line
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
20%-25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Development Initiatives Poverty Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 17
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Development Initiatives Poverty Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 18
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Development Initiatives Poverty Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 19
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Development Initiatives Poverty Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
1
Accounting policies (continued)
Page 20
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. A liability is held as a foreign currency denominated liability so long as there is either a contractual obligation to do so or the funds giving rise to the liability are held in a foreign currency. Should neither apply, the liability will be converted into a Sterling denominated liability at the exchange rate actually attained. All exchange differences are taken into account in arriving at the operating result.
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Development Initiatives Poverty Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 21
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
93
80
Of
the above
employees,
7 (2020:
5
)
received salaries over £65,000.
4
Interest receivable and similar income
2021
2020
£
£
Interest receivable and similar income includes the following:
Income from shares in group undertakings
45,000
41,250
5
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2021
190,200
Additions
17,800
At 31 December 2021
208,000
Amortisation and impairment
At 1 January 2021
151,800
Amortisation charged for the year
29,430
At 31 December 2021
181,230
Carrying amount
At 31 December 2021
26,770
At 31 December 2020
38,400
Development Initiatives Poverty Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 22
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2021
161,866
Additions
199,432
At 31 December 2021
361,298
Depreciation and impairment
At 1 January 2021
151,637
Depreciation charged in the year
53,326
At 31 December 2021
204,963
Carrying amount
At 31 December 2021
156,335
At 31 December 2020
10,229
7
Fixed asset investments
2021
2020
£
£
Shares in group undertakings and participating interests
72,000
64,800
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2021
64,800
Additions
7,200
At 31 December 2021
72,000
Carrying amount
At 31 December 2021
72,000
At 31 December 2020
64,800
Development Initiatives Poverty Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 23
8
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
13,691
311,909
Amounts owed by group undertakings
314,450
Other debtors
1,088,334
379,975
1,416,475
691,884
9
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Obligations under finance leases
60,360
Trade creditors
85,163
22,856
Amounts owed to group undertakings
25,397
Corporation tax
27
391
Other taxation and social security
77,196
67,412
Accruals and deferred income
1,915,706
2,382,162
2,138,452
2,498,218
10
Creditors: amounts falling due after more than one year
2021
2020
£
£
Obligations under finance leases
78,906
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
Total lease payments due
383,270
Development Initiatives Poverty Research Limited
Notes to the financial statements (continued)
For the year ended 31 December 2021
Page 24
12
Related party transactions
Remuneration of key management personnel
2021
2020
£
£
Aggregate compensation
106,531
95,792
During the year the company provided services to its subsidiary DI International Limited totalling £696,104 (2020: £299,971), and received a sub-grant from DI International Limited of £nil (2020: 582,454). The company also continued to provide a loan to its subsidiary which is interest free and repayable on demand. At the year end the company was owed £314,450 (2020: the company owed £25,397). The company received dividends during the year from its subsidiary of £45,000 (2020: £41,250).
Development Initiatives Poverty Research America Inc. (DIPRA) is a separately established US registered charity. There is substantial overlap between the boards of DIPR and DIPRA. During the year the company received a sub-grant from DIPRA totalling £997,064 (2020: £920,647), with £396,963 being recognised in the year, and DIPRA owed the company £857,599 (2020: £286,018). DIPRA also provided services to DIPR totalling £120,223 (2020: £121,934).
In the year the company purchased the remaining 10% stake in its subsidiary DI International Limited from a director for a total consideration of £25,000.
Development Initiatives Poverty Research Limited
Management information
for the year ended 31 December 2021
Development Initiatives Poverty Research Limited
Detailed income and expenditure account
For the year ended 31 December 2021
Page 25
2021
2020
£
£
£
£
Turnover
Foreign, Commonwealth & Development Office
4,008
188,546
United Nations Office for Project Services (UNOPS)
821,792
733,056
Government of the Netherlands
475,989
462,459
Canadian International Development Agency
421,388
353,143
Swedish International Development Agency
-
264,045
Bill and Melinda Gates Foundation
1,001,402
858,699
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
308,433
522,038
Irish Aid
173,830
30,624
DI International Limited
855,249
299,512
William and Flora Hewlett Foundation sub-awarded from DIPRA
372,146
314,364
Sightsavers
119,034
165,815
The Asia Foundation
64,618
69,865
USAID
71,747
151,839
Swiss Agency for Development and Cooperation
384,473
246,992
European Commission
-
82,980
Other income
133,379
1,293
SDG Kenya Forum
463,811
265,773
United Nations Office for Disaster Risk Reduction
-
25,862
Food and Agriculture Organisation
137,060
54,849
United Nations
-
5,822
New Venture Fund
-
38,952
5,808,359
5,136,528
Operating costs
(5,635,035)
(5,141,907)
Operating surplus/(deficit)
173,324
(5,379)
Investment revenues
Bank interest received
144
2,057
Dividends receivable from group companies
45,000
41,250
45,144
43,307
Interest payable and similar expenses
Hire purchase interest payable
14,462
-
Foreign exchange gains/(losses)
24,294
9,575
(38,756)
(9,575)
Surplus/(deficit) before taxation
179,712
28,353
This page does not form part of the financial statements on which the auditors have reported.
Development Initiatives Poverty Research Limited
Schedule of operating costs
For the year ended 31 December 2021
Page 26
2021
2020
£
£
Operating costs
Wages and salaries
2,875,922
2,527,598
Social security costs
264,324
232,743
Staff recruitment costs
96,231
27,838
Staff welfare
22,176
14,256
Private health insurance
17,606
17,802
Staff training
29,516
26,826
Staff pension costs defined contribution
134,434
118,327
Other staff costs
-
4,580
Directors' remuneration
106,531
95,792
Directors' social security costs
12,506
10,964
Disbursements
182,760
69,943
Rent and rates
220,958
191,784
Cleaning
7,485
5,496
Power, light and heat
(1,554)
4,292
Premises insurance
26,058
25,338
Computer running costs
293,941
336,348
Travelling expenses
45,987
85,321
Professional subscriptions
30,483
17,181
Legal and professional fees
24,264
22,332
Accountancy
7,708
9,703
Audit fees
14,265
25,773
Charitable donations
48
-
Bank charges
5,645
3,843
Bad and doubtful debts
(9,788)
-
Advertising
3,570
2,505
Telecommunications
10,421
10,771
Office expenses
57,157
80,412
Freelance and outsourced contracts
999,163
1,103,580
Irrecoverable VAT
74,202
29,849
Sundry expenses
(21)
-
Amortisation
29,430
34,200
Depreciation
53,607
6,510
5,635,035
5,141,907
This page does not form part of the financial statements on which the auditors have reported.
2021-12-31
2021-01-01
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