INTRODUCTION This Financial Report covers the second year of the second Strategic Partnership Plan (SPP2) – April 1, 2005 to March 31, 2010. The report is presented to the Basket Fund Donors under the SPP2 agreement, namely: · The Royal Danish Embassy – Lusaka, · Hivos – Southern Africa Regional Office, · The Royal Norwegian Embassy – Pretoria · The Royal Swedish Embassy – Lusaka. OVERVIEW Total grants received under the basket funding agreement were N$ 18.63 million (USD 2.63 million). Grants from other sources amounted to N$ 3.17 million (USD 0.45 million). Total income for the year was therefore N$21.91 million (USD 3.11 million) – 15% above the previous year (USD 2.70). Grants received under the basket funding agreement constituted 85% of the total income. Total expenditure for the year was N$ 18.99 million (USD 2.69 million) – down by 5% from the previous year. There was an overall annual surplus this year of N$ 2.97m (USD 0.41m). ii Annual Report 2007