Page 10 - Aidlink Financial Statement 2023

Aidlink Financial Statements 2023
DIRECTORS’ REPORT
For the financial year ended 31 December 2023
additional external systems audit was conducted. This audit found that overall “that the system was SATISFACTORY (fit for purpose with low-risk control gaps/ findings)”. The Board of Aidlink
is satisfied with how our partner organisation responded to this incident and will continue to work with our partner organisation.
Financial risk management objectives and policies
Aidlink’s activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. Given the type and scale of the company’s activities, these risks are significantly lower than would occur in a commercial environment.
• Cash flow risk
The company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates – the primary exchange rate risk results from overseas partners’ programmes being denominated in non-euro currencies. The Directors believe it would be inappropriate to use derivative financial instruments as their costs would outweigh any advantages. Aidlink has some flexibility in timing of payments that allows it to mitigate the risk.
• Credit risk
The company’s principal financial assets are bank balances and cash and receivables. Aidlink’s credit risk is primarily attributable to its liquid funds. It is limited because
the counterparties are banks with satisfactory credit-ratings assigned by international credit rating agencies with deposits insured under EU regulations.
• Liquidity risk
The company’s reserve policies ensure that sufficient funds are available for ongoing operations and future developments. Further details regarding liquidity risk can be found in the accounting policies in Note 1 of the financial statements.
PLANS FOR THE FUTURE
2024 Development Programme
Aidlink development programmes will maintain a focus on working with the poorest communities in Kenya and Uganda to support access to education, water, hygiene and sanitation and improved livelihoods, with a particular focus on women and girls who face negative cultural practices daily.
In March 2024 we received communication from the Minister of State for International Development and Diaspora approving an Irish Aid grant totalling €2 million over the next five years that will allow us to continue to expand our programme in Kenya with our long-time partner the Girl Child Network. The project will target nomadic pastoralist children in Turkana and Kajiado. This critical funding will allow us to build upon the success of the ‘Every Girl
in School’ project strengthening our social norm change agenda.
The 60 school communities included in the Every Girl in School (EGIS) project 2021 - 2023 will be carried forward into the new 5 years project, Let Children Learn (2024-2029). These schools / communities are still recovering f rom the impact of Covid 19; the worst drought in 40 years
and a changing education system
in Kenya and will benefit f rom additional training and supports to strengthen, deepen, and consolidate their commitment to education. The focus for these school communities will be the introduction of the Family Matters approach, climate smart initiatives and upskilling of community facilitators targeting
the (re) enrolment of Out of School Children (OOSC) and Children with Disabilities. (CWD).
In addition, 80 new schools
(16 per annum) and school communities will be included in
the project and will benefit f rom the full package of hardware and software interventions, including the construction of gender and disability-friendly latrines, water tanks, and handwashing facilities and building the capacity of Boards Of Management, teachers, the establishment of Rights of the Child Clubs, community sensitization and community facilitator training etc.
A new ‘Every Girl in Class’, project launched in April following a unique grant of €100,000 by a philanthropic donor. The project aims to build on the ‘Every Girl
in School’ initiative through the
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