Care International UK (CIUK) has reported a £35m decline in its income over two years after being handed a notice for late filing.
The Charity Commission issued a notice to the charity earlier this year after it failed to file accounts for the years to June 2021 and 2022 on time.
CIUK has now published both sets of overdue accounts, which show that its income has almost halved over the two-year period from £73.9m in 2019-20 to £38.6m in 2021-22, on the Commission website.
The decline has been driven by a reduction in funding from the Foreign Commonwealth and Development Office (FCDO), from £52.9m in 2019-20 to £18.2m in 2021-22.
CIUK spent £64,000 on termination costs over the two years, with its average number of employees falling from 116 to 98.
Overall, the charity cut its expenditure from £71.1m to £31.4m over the same period.
Meanwhile, the charity published a report this week criticising FCDO’s aid spending cuts, showing a particular cut in funding to address violence against women and girls.
CIUK: ‘Organisation is in a strong financial position’
A CARE International UK (CIUK) spokesperson said: “After a challenging period, CIUK’s FY22 accounts show the organisation is in a strong financial position.
“Prompt action and prudent financial management have increased the organisation’s free unrestricted reserves to £4.5m (2021: £2.8m).
“Significantly, the accounts conclude no material uncertainty relating to going concern. We expect FY23 accounts to be published on time in early 2024.
“The accounts do show a significant decrease in income – as a result of FCDO aid cuts from 2021-2022 – but as evidenced by the increase in unrestricted free reserves, the organisation managed that decrease effectively by reducing its expenditure.”
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