Page 9 - Aidlink Financial Statement 2023

Aidlink Financial Statements 2023
DIRECTORS’ REPORT
For the financial year ended 31 December 2023
• The need to provide long term Three significant risks and their strategic financial support to mitigation strategies are identified Aidlink’s partners; below:
The funding is targeted at one partner and one project in Kenya and Aidlink expects to draw down year 1 funding in June
2024. The Directors continue to focus on growing and diversifying fundraising to meet co-funding requirements of this grant and
to support other partners and projects.
Incidence of Fraud
The potential for fraud remains
a significant risk to the organisation, primarily due to the impact such an occurrence would have on public confidence in the organisation. The Directors mitigate this risk through implementation of whistle blowing anti-fraud policy, board review of monthly accounts, Aidlink annual audit and adherence to financial policy. Further, the Audit and Risk Subcommittee review partners’ financial reports, audited by independent auditors. In early 2024, Aidlink was made aware that allegations of fraud were raised against three partner staff members working on an Aidlink project. The partner organisation immediately conducted an investigation, the funds of approximately €170 were returned and the staff members were dismissed. Aidlink was immediately notified, and the partner organisation provided the Aidlink Board with a
• The need to finance unplanned • Future levels of income projects where the need arises; Aidlink is reliant on grants and
and donations to implement the • The need to provide a financial Development Programme.
cushion in the event of extreme When the number or value
circumstances affecting the of grants is reduced, Aidlink’s
company’s ability to operate. capacity to deliver projects and
At the end of 2023, Aidlink’s total programmes is compromised. • funds were €326,624 of which The Board mitigate this risk
€235,496 were restricted funds and with the prioritisation and
€91,128 were unrestricted funds. implementation of a fundraising Unrestricted funds are considered strategy, which includes exploring Aidlink’s reserve funds and meet new opportunities from trusts, Aidlink’s six-month reserve policy, foundations, and philanthropists. representing approximately 6 The Directors adopted a new
months of average projected strategy in 2021 covering the
monthly operating costs. Due to the 2021-2024 period. Aidlink awarded ongoing uncertainty and challenges a grant of €100,000 from a new
in raising unrestricted funds the philanthropic donor in March
Board deem it prudent to maintain 2024.
this level of reserves. • Loss of Irish Aid funding Operational risk management Irish Aid funding is, by its very Aidlink’s Risk Assessment policy nature, subject to national approved in November 2021, changes in government policy. adopted the Charities Regulator’s The Directors have identified framework and now risk is reviewed loss of Irish Aid funding as a formally at least biannually by the risk which could compromise Board. The Directors have reviewed Aidlink’s project and programme and approved a risk register which delivery. Under the Irish Aid Civil scores risk based on an estimate Society fund scheme Aidlink
of the likelihood of occurrence and was approved for a three-year the impact on the organisation with grant for the 2021 – 2024 period a bias towards high impact. The ending June 2024. Aidlink Aidlink risk register identifies risk received notification from Irish under the themes of Governance, Aid in March 2024 that it had Strategic, Compliance, Operational been approved under the Civil HQ and Overseas, Financial, Society fund scheme for a five- Environmental and Reputational. year period ending June 2029.
report on the incident and an
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