Company registration number 05126149 (England and Wales)
THE MENTOR INITIATIVE
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
THE MENTOR INITIATIVE
COMPANY INFORMATION
Directors
R J Allan
G Williams
D S Smith
L Mobula-Shufelt
S F Castela Lopes
(Appointed 2 October 2024)
Dr G N Cattermole
(Appointed 3 October 2024)
Company number
05126149
Registered office
South Suite 4th Floor
Burns House
Harlands Road
Haywards Heath
West Sussex
RH16 1PG
Auditor
Darren Harding ACA FCCA DChA
Richard Place Dobson Services Limited
Chartered Accountants
1-7 Station Road
Crawley
West Sussex
RH10 1HT
THE MENTOR INITIATIVE
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Income and expenditure account
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
THE MENTOR INITIATIVE
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 1

The directors present the strategic report for the year ended 30 September 2024.

Review of the business

Nearly 300 million people across 72 countries required humanitarian assistance in 2024, with an estimated 123 million displaced throughout the year. Conflict and displacement remain concentrated in regions highly prone to vector-borne and waterborne diseases, exacerbating health risks for affected populations. The combined effects of conflict, natural disasters, and displacement continue to impact Africa and the Middle East, where MENTOR remains committed to delivering life-saving interventions to reduce the burden and mortality from tropical diseases.

In 2024, alongside the ongoing Russian offensive in Ukraine, the Israeli-Palestinian conflict had a significant impact on humanitarian response efforts. Additionally, the large-scale conflict and mass displacement in Sudan mobilized substantial emergency funding, with a strong focus on food assistance. As a result, humanitarian budgets for protracted crises—where MENTOR has been active for many years—have been significantly reduced. Countries such as Nigeria, Central African Republic, and South Sudan have seen sharp declines in funding, as resources were redirected to higher-profile emergencies. However, MENTOR’s ability to rapidly adapt and diversify funding sources enabled the organization to maintain its response in long-standing program areas. Moreover, MENTOR has strengthened collaborations with local organizations and academic partners to ensure the implementation of evidence-based programs that are jointly developed with in-country stakeholders.

Despite these challenges, MENTOR continued to deliver large-scale, high-impact interventions in 2024. Over the year, the organisation protected more than 2.5 million people through vector control interventions, supported over 1.2 million consultations, and delivered more than 10.5 million chemopreventive treatments. These achievements reflect MENTOR’s capacity to operate at scale and reinforce donor confidence in the organisation’s efficiency and effectiveness in disease control.

Looking ahead, 2025 is expected to bring additional challenges, particularly as major elections in key donor countries may influence funding landscapes, alongside significant reductions in overall foreign assistance budgets from main donors. Full details of MENTOR’s work can be found in the 2024 Annual Report.

MENTOR’s strong and positive reputation across a wide variety of donor organisations has continued to ensure that it has remained very respected on the global stage for disease control and financially stable through a challenging year for the humanitarian aid sector. MENTOR’s cost efficiency, innovative skills and value for money programming capacity has also attracted some donor organisations to increase support to MENTOR and expand country level programmes in countries such as Central African Republic and South Sudan in particular.

Principal risks and uncertainties

MENTOR saves lives and relieves suffering amongst people affected by tropical disease, in some of the world’s most challenging settings. This carries a mixture of inherent risks.

 

Operational Risks and Uncertainties:

Delivering large scale disease control support to communities can only be achieved by ensuring a package of activities that reach health care facility level and community level. When delivering the activities in harsh operating environments in conflict, during natural disasters, and when populations are displaced into remote areas, success relies on the organisation’s ability to physically reach these logistically challenging places. These locations are often without airstrips or conventional road networks, requiring our teams to operate using fleets of heavy-duty four-wheel drive vehicles, small aircraft, boats, bicycles and foot. These operational realities create risks for many of the personnel, impacting on health and staff turn-over, and programme assets due to shortened equipment life and significantly increased maintenance and repair costs. MENTOR has operational procedures, systems, insurances, and staff training in place which minimise these risks.

THE MENTOR INITIATIVE
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 2
Principal risks and uncertainties

Safeguarding risks:

The MENTOR Initiative operates strong Safeguarding approaches and practices across all countries in which its teams operate to ensure international standards as defined by the Inter Agency Standing Committee (IASC) and other globally recognised standards (Sphere and the Core Humanitarian Standards) were being met. MENTOR’s Safeguarding focal points at Board, HQ and in each country in which MENTOR works, have continued to strengthen Safeguarding practices across the organisation throughout the year. Training of all personnel across MENTOR country teams and their HQ management teams has continued on an ongoing basis to ensure that newly recruited staff and existing staff are able to respond appropriately within the Safeguarding framework to any issues arising in its programmes.

 

Security Risks:

MENTOR’s personnel are exposed to a greater level of insecurity than many other developmental organisations. Conflict based settings are the most common environment for the organisation’s activities, which requires adherence to strict security protocols and systems, day and night, in order to manage these security risks. MENTOR has well developed strict security policy and practice guidelines which are adapted specifically to each setting. MENTOR provides regular security training for all staff working in these places and focuses on good security management in all settings, to ensure that disease control programmes can be rolled out safely. MENTOR continues to review security on an ongoing basis to ensure its security policy and procedures are context appropriate and regularly updated.

 

Financial Funding Risks and Uncertainties:

Funding for humanitarian emergency responses is normally restricted by donor governments to a maximum of 12 months, after which there is no certainty of renewal. Funding depends on a combination of ongoing acute needs, sustained governmental political will, and budget capacity. Some international donors provide longer term funding in a few countries, such as in Venezuela and Angola currently. MENTOR has previously obtained up to five-year funding commitments for work in more stable countries but multi-year funding brings different financial terms and risks which have to be carefully monitored and managed. Uncertainty is a characteristic of humanitarian aid, with funding decisions increasingly, for some donor governments, tied to trade and security considerations.

 

MENTOR is structured in such a way that it can increase or decrease its staffing and structure very flexibly and as the global economic situation evolves. MENTOR will continue to monitor the existing donor strategy, and to expand and diversify its donor portfolio to ensure maximum stability for the future.

 

MENTOR also manages this risk by working for a broad portfolio of donors, both governmental and non-governmental, and ensuring a varied project end date. Early engagement with donors ensures planning for grant ending and possible country withdrawal can be managed effectively without risk to MENTOR overall. MENTOR continues to expand non-governmental donor partnerships, and built additional support with some private sector organisations.

 

The organisation, its processes, systems and operational delivery has been designed to run efficiently in line with the international donor funding cycles and has grown steadily in reputation and financial scale over the course of its history.

Key performance indicators

The key performance indicator for MENTOR is reserves. The maintenance of a suitable level of reserves enables MENTOR to have the financial security to deliver its operations knowing it can see through programmes efficiently, even in the event of delayed donor support, and reserves remain stable and broadly sufficient. As a “Not for Profit” entity, profit generation is not the aim for MENTOR.

Important events since the year end

The election of a new U.S. Administration has brought significant shifts in foreign assistance policies. Several funding streams have been paused and are under review, which may impact some of MENTOR’s programs. In response, MENTOR has taken immediate steps to restructure team composition and reduce costs. However, uncertainty remains regarding the future of funding, potentially jeopardizing some of the opportunities that were in the pipeline and some of the ongoing programs being implemented. Further clarity is only available once the 90 day review period is over, by the end of April.

 

THE MENTOR INITIATIVE
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 3

On behalf of the board

S F Castela Lopes
Director
26 March 2025
THE MENTOR INITIATIVE
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 4

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company continued to be that of a leading international agency devoted to reducing death and suffering from malaria and other vector-borne and neglected tropical diseases in humanitarian crises. It has been designed to strengthen the capacity of emergency-focused agencies and national partners to implement more effective and co-ordinated action to reduce malaria-related morbidity and deaths. It is an independent non-profit-making organisation. Its core expertise includes epidemiology, emergency field assessment and planning, disease surveillance, vector control and personal protection, laboratory diagnosis and investigation, case management, community mobilisation and applied operational research and evaluation. The company receives funding from governmental and non-governmental organisations and is subject to specified targets.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R J Allan
A P Jobson
(Resigned 7 February 2025)
G Williams
D S Smith
L Mobula-Shufelt
S F Castela Lopes
(Appointed 2 October 2024)
Dr G N Cattermole
(Appointed 3 October 2024)
Results and dividends

The results for the year are set out on page 9.

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.

On behalf of the board
S F Castela Lopes
Director
26 March 2025
THE MENTOR INITIATIVE
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 5

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:

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.

THE MENTOR INITIATIVE
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE MENTOR INITIATIVE
page 6
Opinion

We have audited the financial statements of The MENTOR Initiative (the 'company') for the year ended 30 September 2024 which comprise the Income and Expenditure Account, the Balance Sheet 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 FRS 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:

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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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 our audit:

THE MENTOR INITIATIVE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE MENTOR INITIATIVE
page 7
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 identified material misstatements in the strategic report or the directors' report.

 

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We have made enquiries of management, and directors, regarding the procedures relating to identifying, evaluating and complying with

 

  1. laws and regulations and whether they were aware of any instances of non-compliance;

  2. detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  3. the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

THE MENTOR INITIATIVE
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE MENTOR INITIATIVE
page 8

Discussion among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas:

 

1. Management override of the controls in place

2. Revenue Recognition in terms of long term project accounting

3. Existence of accruals

 

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to any significant, unusual transactions and transactions entered into outside of the normal course of business. Journals were reviewed for appropriate authorisation throughout the financial year as well as documentation over regular meetings between grant managers and directors. No evidence of management override of controls was found during the course of our audit work.

 

Revenue recognition was also identified as a significant risk which could lead to a material mis-statement due to fraud or error. Revenue is recognised on long-term projects with a high degree of estimation when calculating income and expenditure. Audit procedures performed included but were not limited to performing walk through tests to identify the control procedures in place and once an understanding of the revenue process was gained, a substantive test was carried out using a sample basis to ensure that revenue recognised on long-term projects was accurate and complete in the accounts. Cut off testing was also performed to ensure revenue has been recorded in the correct period.

 

The existence of accruals has also been identified as a significant area where the financial statements may be subject to error. Large accruals are made for circumstances that may not occur for a number of years, such as severance pay for local staff on the grant funding being withdrawn. The accruals testing included, but was not limited to, reviewing accruals to supporting documentation, such as laws and regulations for the relevant country and grant documentation. We also reviewed after date information to assess whether there were any events that supported the accruals had been correctly made.

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.

Use of our 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.

Darren Harding ACA FCCA DChA
26 March 2025
Senior Statutory Auditor
For and on behalf of Richard Place Dobson Services Limited
Chartered Accountants
1-7 Station Road
Crawley
West Sussex
RH10 1HT
THE MENTOR INITIATIVE
INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 9
2024
2023
Notes
£
£
Income
2
17,006,285
20,916,075
Direct costs
(15,551,215)
(19,073,331)
Gross Surplus
1,455,070
1,842,744
Administrative expenses
(1,790,029)
(1,559,813)
Operating surplus/(deficit)
3
(334,959)
282,931
Interest receivable and similar income
7
43,452
58,111
Surplus/(Deficit) on ordinary activities before taxation
(291,507)
341,042
Taxation
(8,256)
(8,225)
Surplus/(Deficit) for the year
13
(299,763)
332,817
The income and expenditure account has been prepared on the basis that all operations are continuing operations.
THE MENTOR INITIATIVE
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
page 10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
325,668
391,800
Current assets
Debtors
10
2,751,598
2,024,923
Cash at bank and in hand
4,767,556
5,086,617
7,519,154
7,111,540
Creditors: amounts falling due within one year
11
(5,146,559)
(4,505,314)
Net current assets
2,372,595
2,606,226
Total assets less current liabilities
2,698,263
2,998,026
Capital and Reserves
Income and expenditure
13
2,698,263
2,998,026
The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
S F Castela Lopes
Director
Company Registration No. 05126149
THE MENTOR INITIATIVE
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 11
Income and expenditure reserves
£
Balance at 1 October 2022
2,665,209
Year ended 30 September 2023:
Surplus and total comprehensive income for the year
332,817
Balance at 30 September 2023
2,998,026
Year ended 30 September 2024:
Surplus and total comprehensive income for the year
(299,763)
Balance at 30 September 2024
2,698,263
THE MENTOR INITIATIVE
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 12
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
18
(354,288)
(288,297)
Income taxes paid
(8,225)
-
0
Net cash outflow from operating activities
(362,513)
(288,297)
Investing activities
Purchase of tangible fixed assets
-
0
(132,666)
Interest received
43,452
58,111
Net cash generated from/(used in) investing activities
43,452
(74,555)
Net cash used in financing activities
-
0
-
0
Net decrease in cash and cash equivalents
(319,061)
(362,852)
Cash and cash equivalents at beginning of year
5,086,617
5,449,469
Cash and cash equivalents at end of year
4,767,556
5,086,617
THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 13
1
Accounting policies
1.1
Company information

The Mentor Initiative (company number 05126149) is a private company limited by guarantee incorporated in England and Wales. The registered office is South Suite, 4th Floor, Burns House, Harlands Road, Haywards Heath, West Sussex, RH16 1PG.

1.2
Accounting convention
The financial statements have been prepared in accordance with FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS102") and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Income

The company is contracted to carry out work for which they receive grants; this along with income from training and consultancy represents total income.

 

Training and consultancy income is included in the accounting period to which it relates and when the company has earned the rights to the income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

The company has entered into a consortium arrangement of which it is the lead agency. The company has control and is acting as a principle over the grant income received by the consortium therefore the income has been recognised in the financial statements.

Consortium income is recognised by reference to the stage of completion of the project which is reported as expenditure incurred by the consortium partners.

Supplies and other gifts in kind income are measured at the cost the company would incur if they were required to buy the goods.

1.5
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.

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:

Land and buildings Leasehold
Life of the lease
Plant and machinery
100% straight line
Motor vehicles
28.5% straight line or length of grant if lower than 3 years
THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
page 14

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 income or expenditure.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

 

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.

1.6
Cash and cash equivalents

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.

1.7
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 balance sheet 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.

THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
page 15
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities 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.

Basic financial liabilities

Basic financial liabilities, including creditors, 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 payments 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. Amounts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
page 16
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.8
Taxation

The tax expense represents the sum of the tax currently payable.

Current tax
As a not for profit entity the company has an agreement with HMRC that it only pays corporation tax on surpluses made on training activity and any bank interest received.
1.9
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.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Leases

Rentals payable under operating leases, are charged against income on a straight line basis over the lease term.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 17
1.13
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Long term projects

Amounts recoverable on long term projects which are included in debtors and payments received on account included within creditors are material figures in the accounts and requires estimation and judgement regarding percentage complete of the project. The project income and expenditure is recognised in line with these assumptions.

Income recognition

Income from grants is recognised in proportion to the actual costs incurred on the project to date compared to the total estimated project cost.

Gifts in kind

Gifts in kind income is measured at the cost that would have been incurred by the company if it had to buy the goods itself. This involves an element of estimation

Provisions

Provisions made to cover expenses that may be incurred from the possibility of evacuating a country quickly involves a significant amount of estimation.

THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 18
2
Income and Activity per country
Income
Africa- Central
Africa- East
Africa- Southern
Middle East
West Africa
Other
Total
US Government sources
1,052,211
848,698
1,314,609
1,362,863
511,315
837,341
5,927,037
UK Government sources
4,392,999
-
-
-
-
-
4,392,999
Other income
2,904,992
1,349,112
1,056,282
1,104,153
210,314
61,396
6,686,249
Total
8,350,202
2,197,810
2,370,891
2,467,016
721,629
898,737
17,006,285
Percentage of total income
49.10%
12.92%
13.94%
14.51%
4.24%
5.29%
100%
Expenditure
International Field Team
1,168,195
167,965
271,404
245,904
161,091
121,380
2,135,939
National Field Team
1,997,743
764,678
352,653
1,032,362
137,783
320,827
4,606,046
Operational Equipment & Running Costs
627,539
176,265
161,778
109,896
60,046
135,462
1,270,986
Programme Supplies
2,899,349
560,709
902,251
615,975
171,906
107,425
5,257,615
Transport, Flights, Freight, Storage
1,002,940
355,540
475,124
232,367
81,403
68,376
2,215,750
HQ, Internal  & Admin Support
28,435
1,005
13,486
20,482
7,063
1,456,094
1,526,565
Non-Operating Costs
455
-
7
-
-
327,882
328,344
Total
7,724,656
2,026,162
2,176,703
2,256,986
619,292
2,537,446
17,341,245
Non - Operating costs include profits on foreign currency transactions
3
Operating Surplus
2024
2023
Operating surplus for the year is stated after charging/(crediting):
£
£
Foreign exchange differences
212,165
179,385
Research and development costs
-
31
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
15,000
Depreciation of owned tangible fixed assets
66,132
77,302
Operating lease charges
31,200
31,200
4
Auditor's remuneration
2024
2023
£
£
For audit services
Audit of the financial statements of the company
15,000
15,000
Other auditors fees - USAid
16,472
19,000
31,472
34,000
THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 19
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was 17 (2023 - 23)

2024
2023
Number
Number
Senior Management
5
5
Administration
12
18
Total
17
23

Their aggregate remuneration comprised:

2024
2023
£
£
Wages, salaries and consultants fees
1,029,629
935,684
Social security costs
39,737
60,421
Pension costs
23,467
21,387
1,092,833
1,017,492

"Wages, salaries and consultants fees” includes the costs of all roles undertaking a oversight role at Head Office level for The MENTOR Initiative. The MENTOR Initiative does not feel that the employment basis or country location of the person performing the role should be considered to show a true cost of “employees”. As required the number of employees includes those people performing their role under an employment contract and therefore does not include consultants.

6
Directors' remuneration

The analysis of director's remuneration is as follows:

 

During the year the Directors' were paid a salary which equated to £94,070 (2023: £88,386).

 

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
43,452
58,111
THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 20
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
8,256
8,225

The actual charge for the year can be reconciled to the expected charge for the year based on the surplus or deficit and the standard rate of tax as follows:

2024
2023
£
£
Surplus before taxation
(291,507)
341,042
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
(55,386)
64,798
Tax effect of income not taxable in determining taxable profit
63,642
(39,758)
Unutilised tax losses carried forward
-
0
(16,815)
Taxation charge for the year
8,256
8,225
9
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023 and 30 September 2024
265,852
30,201
889,585
1,185,638
Depreciation and impairment
At 1 October 2023
3,531
30,201
760,106
793,838
Depreciation charged in the year
2,492
-
0
63,640
66,132
At 30 September 2024
6,023
30,201
823,746
859,970
Carrying amount
At 30 September 2024
259,829
-
0
65,839
325,668
At 30 September 2023
262,321
-
0
129,479
391,800
THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 21
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,002,407
448,497
Amounts recoverable on long term projects
1,649,484
1,485,066
Other debtors
20,705
20,149
Prepayments and accrued income
79,002
71,211
2,751,598
2,024,923
11
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
1,915,740
1,960,950
Corporation tax
8,256
8,225
Other taxation and social security
11,413
17,373
Other creditors
1,049,117
467,440
Accruals and deferred income
2,162,033
2,051,326
5,146,559
4,505,314
12
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to income and expenditure in respect of defined contribution schemes
23,467
21,387

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 22
13
Income and expenditure
2024
2023
£
£
At the beginning of the year
2,998,026
2,665,209
Surplus/(Deficit) for the year
(299,763)
332,817
At the beginning and end of the year
2,698,263
2,998,026

The directors have set a policy to aim to hold 3 months committed expenditure in reserves. The directors consider this level of reserves to be necessary and adequate for ongoing works, expansion and development of new initiatives and to provide for uninsurable losses.

14
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
37,392
37,392
Between two and five years
102,137
139,529
139,529
176,921
15
Key Management Personnel Remuneration
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
305,904
340,537
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Services received
2024
2023
£
£
Key management personnel
4,106
-
THE MENTOR INITIATIVE
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
page 23
16
Control

The company is controlled by S Castela Lopes and the board of directors.

17
Cash absorbed by operations
2024
2023
£
£
(Deficit)/Surplus for the year after tax
(299,763)
332,817
Adjustments for:
Taxation charged
8,256
8,225
Investment income
(43,452)
(58,111)
Depreciation and impairment of tangible fixed assets
66,132
77,302
Movements in working capital:
(Increase)/decrease in debtors
(726,675)
761,959
Increase/(decrease) in creditors
641,214
(1,410,489)
Cash absorbed by operations
(354,288)
(288,297)
18
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
5,086,617
(319,061)
4,767,556
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