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2021-03-31-accounts

CHILDREN IN CRISIS

REPORT AND FINANCIAL STATEMENTS

for the Year ended 31 March 2021

Charity Registration No. 1020488

Company Registration No. 2815817 (England and Wales)

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS Page
Company Information 3
Trustees’ report 4
Auditors’ report 13
Statement of financial activities 17
Balance sheet 18
Statement of Cash Flows 19
Notes to the Financial Statements 20

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

COMPANY INFORMATION

Trustees Street Child
Anthony Wallersteiner (appointed 13 October 2021)
Charity number 1020488
Company number 2815817
Registered office & 33 Creechurch Lane
principal address London EC3A 5EB
Auditors Moore Kingston Smith LLP
Chartered Accountants
Devonshire House,
60 Goswell Road
London EC1M 7AD
Bankers Coutts and Company
440 Strand
London WC2R 0QS

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

TRUSTEES’ REPORT

Who we are

Children in Crisis focuses on education and child protection in countries affected by conflict. This is because education is always an expressed priority of people in need, as well as delivering multiple benefits to the individual, to the community and to wider society. Quality education is of intrinsic value to an individual's development as an autonomous, unique person: it provides the capabilities and skills to shape and pursue life goals, whatever these may be; it provides life-saving knowledge, for example in respect to avoiding risks from disease; it increases individual incomes and employment prospects; it builds community cohesion and peace in countries suffering conflict; and it supports national, social and economic development. To gain access to education or to benefit from it, children must be safe and secure, and protected from harm or abuse. Child protection is therefore key.

On 1 April 2018 Children in Crisis joined the Street Child group. Street Child exists to make the largest difference possible in the lives and to the educational prospects of the world’s poorest and most marginalised children. The acquisition notably expanded the group’s impact into Afghanistan and the Democratic Republic of Congo, which have been Children in Crisis’ flagship operations in recent years. Children in Crisis remains a live entity in the Street Child group, not only to honour its history and achievements, but also to recognise this is how its supporters first connected with the work for children that we now do together.

What we do

Children in Crisis aims to achieve its objects by improving the education and protection provided to children, especially girls and marginalised groups such as children with disability, to enhance their lives. The measurement of our impacts is through a rigorous monitoring, evaluation and learning process, involving clear definition of goals, outputs, outcomes and indicators at the start of each programme. We carry out both internal and independent evaluations and use participatory, qualitative and quantitative methods.

Public Benefit Statement

The objects of the charity are the relief of hardship, distress and sickness of persons in need, particularly children, in any part of the world, and are governed by its Memorandum and Articles of Association. These remain unchanged following the acquisition by Street Child.

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

PROGRAMMES

Children in Crisis’ programmes now fit into the wider Street Child group portfolio and have made distinctive contributions to group’s development and trajectory.

Street Child are taking forward projects in a number of countries that were previously also areas of focus for Children in Crisis, including in Burundi, DRC and Sierra Leone – which is also Street Child’s longest-standing country of operation.

Children in Crisis are delighted that the presence in these countries continues to be supported by the Street Child Group. This means that the last projects in the name of Children in Crisis in Sierra Leone have ended in the year ended 31[st] March 2021 and are expected to end in Burundi and DRC in the year ended 31 March 2022. However this is far from the end of the Street Child Group’s presence in these countries as Street Child is actively supporting, developing and fundraising for projects in these countries.

Children in Crisis continues to operate in Afghanistan.

Afghanistan

• A Partnership with the Global Partnership for Education

Children in Crisis (as part of Street Child) was delighted to be awarded its first grants from the Global Partnership for Education. The first, an allocation of $2.8 million, allows us to reach a remarkable 24,000 children across Baghlan and Zabul in Afghanistan – ensuring essential access to education for conflict and crisis affected children and their communities. This marks an exciting expansion of our programmes into two more prioritised provinces.

The second is an allocation of $1.3M under the aegis of Education Out Loud, a flagship fund for advocacy and social accountability that supports civil society alliances to carry out cross-country advocacy for education. Street Child has been appointed to lead the South Asian Assessment Alliance, a coalition of 100 Civil Society Organisations and 75,000 citizens advocating for citizen-led assessments as an authoritative lever to increase accountability for quality, equitable education for the most marginalised communities across South Asia. From 2021 to 2023, Street Child will work in partnership with national alliance leaders in Afghanistan, Bangladesh, Myanmar and Nepal to catalyse a crosscountry accountability apparatus that tracks towards the achievement of Sustainable Development Goal 4.1.1 across South Asia.

• Outstanding Outcomes in Conflict-Affected Areas of Afghanistan

Throughout 2020, Children in Crisis provided a pathbreaking education in emergencies intervention for 3,500 out of school children in Uruzgan, Afghanistan – targeting an area with one of the highest intersectoral severity scores, due to contestation or control by the Taliban. The project was implemented in partnership with the Empowerment Centre for Women [ECW], an excellent local level organisation and gender expert, and established 90+ community education centres across Dehrawood and Trinkot. These education centres offered a safe, secure space for 3500 children, including 2000 girls, to learn – in the absence of any state schools in this area. From March to October 2021, as the COVID-19 Crisis caused the closure of schools, Children in Crisis promptly pivoted to the provision of self-sufficient learning resources for children to continue learning.

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

An analysis of attendance and retention revealed that 97% children returned to school upon reopening, and 91% of children achieved an attendance threshold of 90%. A remarkable 99.5% of children graduated from Grade 1 – with 126 children displaced due to conflict

Children in Crisis was the only organisation to achieve all targets in Uruzgan, with 100% of centres found to be functional through the project period, including in hard-to-reach, remote communities – earning the acceptance and appreciation of the Governor of Uruzgan, and the Office for the Coordination of Humanitarian Affairs [UN-OCHA]. In 2021, Children in Crisis was delighted to secure support from the Education Cannot Wait Multi-Year Resilience Programme [MYRP] – allowing us to sustain support for the same cohort of children to continue learning, and to scale support to reach a total of 14,500 conflict affected children in Uruzgan.

• Providing Protection to Children and Women throughout the Afghan Winter

As the conflict and the COVID-19 crisis coincided in Afghanistan, aid and assistance were cut-off, aggravating stress and trauma amongst affected children and communities. Children in Crisis launched a large-scale response across Badakhshan, Bamyan, Kabul and Paktika. Our case management officers and counsellors reached 13,075 individuals – including 575 individuals living with disabilities with a comprehensive package of physical and psychosocial protection services. As a critical component of our sustainability strategy, Children in Crisis set up 56 Community-Based Child Protection Committees, training them to recognise risks and to administer psychosocial support for children and vulnerable adults at risk. As the winter set in, Children in Crisis distributed age and gender-specific supplies for 2,500 families – supporting them to survive the cold.

• Expanding Access to Education in Afghanistan

2020 was one of the most significant years for Children in Crisis in Afghanistan: we were delighted to secure a $1.6M fund from the Education Cannot Wait Multi-Year Resilience Programme [MYRP] and an additional $2.8M fund from the Global Partnership for Education, driving a dramatic scale up of our education in emergencies programme to reach ~40 000 children across Baghlan, Uruzgan and Zabul. These awards appoint Children in Crisis as a principal partners of two prestigious funders, including the largest fund for education in emergencies, giving us a powerful platform for increasing the scale and scope of our interventions, and for influencing global efforts to expand education for children.

Children in Crisis was one of the first implementers to train teachers on pedagogical approaches to administer Afghan Children Read [ACR] and was also one of the first to track teacher performance and progress through regular, rigorous observation, and to document this through a digital data collection system. In a recent assessment, 89% of teachers reported that they recall the feedback from coaching in the classroom, and 100% of teachers rated the feedback from coaches as useful. To date, Children in Crisis has trained 300 teachers in learning activities to advance Early Grade Reading and Mathematics, and in learning assessments aligned with the UNESCO Global Proficiency Framework [GPF] for Reading and Mathematics.

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

FUNDRAISING

Children in Crisis fundraising activity is fully integrated with Street Child as a group and did not hold any fundraising events in its own name in 2020/21.

The majority of Children in Crisis Unrestricted income came via its regular donors who give each month directly to the charity and for whom we remain incredibly grateful.

Children in Crisis also benefitted from some generous Trusts and Foundations grants including Andor Charitable Trust, Street Child US, Ann Jane Green’s Trust and Kinsey Charitable Foundation.

TRUSTEE RESPONSIBILITIES

How we manage our affairs

Children in Crisis is a charitable company limited by guarantee, incorporated and registered in England and Wales under company number 2815817 and charity number 1020488.

Children in Crisis is governed as part of the Street Child group. The Street Child group Board meets at least four times a year and is responsible for the overall direction of the Charity and for core strategic policies, having regard to the advice of the Chief Executive. The Trustees delegate the dayto-day running of the charity to the Chief Executive.

Recruitment and appointment of Trustees

Appointment of Trustees is carried out having regard to the needs of the organisation, the suitability and skills of the candidate and by interview with interested parties.

Induction and training of new Trustees

We make new Trustees aware of their legal obligations under charity law and company law. New Trustees are given the required training to enable them to undertake their roles and to ensure that they act in the best interests of the charity. When they are appointed, they receive briefing and background information about the charity from senior management, including governance, finance and current strategies and plans. All Trustees have the opportunity to see our programmes at their own expense.

Fundraising standards and our approach to fundraising

Street Child group employs a team of professional fundraisers, all of whom follow the best practice and legal requirements set out in The Code of Fundraising Practice, as well as those required under charity law and wider law. There was no reported failure to comply with The Code of Fundraising Practice. Outside of the team of professional fundraisers, Street Child’s volunteer fundraisers were all provided with relevant training or guidance notes including, where relevant, links to the necessary legal and best practices from the Institute of Fundraising. Agreed fundraising targets were

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

monitored through reports provided by our online giving platforms and through regular communication and mentoring of volunteer fundraisers.

Street Child group commercial partners are all subject to agreeing a Commercial Participator’s Agreement that sets out the terms of the partnership including, but not limited to, payment plans, use of brand, inclusions/exclusions of the partnership and use of the agreed fundraising statement. Our data protection statement and marketing opt-ins were reviewed and updated to ensure only appropriate and relevant communications were sent to those supporters who had requested said information. Our electronic communications platform also offers the opportunity to opt out at every stage of mass communication.

Street Child’s policy has never been to buy or sell supporter data or mailing lists. Our approach is to engage and inspire supporters through our events, through social media and other communications platforms and by our work.

FINANCES

Review of 2020/21 financial position and fundraising activities

During the 2020/21 financial year, Children in Crisis raised £1,583,344 (2019/20: £1,042,788) of income and spent £1,218,921 (2019/20: £1,364,609). This resulted in an excess of income over expenditure for 2020/21 after net losses on investments of £364,423 (2019/20 negative £321,821). The increase in income from prior year was mainly due to increased contracts for operational programmes, specifically from UN OCHA and Education Cannot Wait in Afghanistan.

In accordance with the Charity SORP, support costs have been allocated between charitable activities and fundraising. Children in Crisis spent 95% (2019/20: 85%) of its total expenditure on charitable activities and 5% (2019/20: 15%) on fundraising. This reflects the fact the Children in Crisis does not undertake any fundraising directly in its own name.

Children in Crisis unrestricted funds at 31 March 2021 were £121,862 (2019/20: £204). Children in Crisis restricted funds at 31 March 2021 were £488,956 (2019/20: £246,396).

Reserves Policy

Children in Crisis reserves contribute positively to Street Child group reserves and reserves are assessed at both the whole group and individual charity levels.

For Children in Crisis as a separate entity the reserves policy is to hold running costs of three months of running costs. At the date of signing the accounts Children in Crisis had no employees. Running costs are mainly for direct fundraising and administration and lead to a target level of unrestricted reserves of £6k. At £122k the charity unrestricted reserves are above the target level. Also, for the Street Child Group, reserves overall are on target and comfortably above the minimum target range.

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

Street Child Group’s reserves policy is to maintain reserves within a range set with reference to key risks, and calibrated against the level of reserves that would be required to fund three to six months of operating costs.

The largest two risks facing Street Child are a fall or under-performance in Unrestricted income, and/or the need to use Unrestricted funds to cover Restricted Programme costs, for instance because of cost disallowed by the funders.

This quantification of reserves will be carried out on an annual basis as part of the budget setting process which concludes in March each year. At this stage the Trustees will consider if any of the major risks have changed, and also the quantification of the reserves in line with the budget.

For Street Child Group the reserves target is £0.5m to £1.5m, with a mid-range target of £1.0m. Street Child Group unrestricted reserves at 31 March 2021 of £1.3m were ahead of the mid-range target.

Risk Management and internal control

The Street Child Trustees are fully aware of the need to assess the risks faced by the charitable group and to minimise those risks. They have conducted a comprehensive process to identity, assess and manager risks, with all risks being scored for likelihood and impact and management strategies and timelines being established. Changes to the risk register are reviewed by the Finance Committee each quarter and provided to each Board meeting (also quarterly) with a full review at the Board undertaken at least annually to assess all risk factors identified in the risk register and ensure that all Trustees are fully abreast of the risk situation in the organisation.

In addition to the risk register, each country holds a register for all large projects, which have their own risk registers that are used by project management teams to make operational decisions. All fundraising events have their own risk registers.

While no system of internal control can provide absolute assurance against material misstatement or loss, Street Child Group’s systems have been developed to provide assurance to the Board that there are proper procedures in place and that they are operating effectively.

Key elements of the system of risk management and internal control include:

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

The principal risks and uncertainties facing the charitable group, as identified by the Trustees of Street Child include the following:

Investment Policy

Over and above achieving and maintaining the targeted levels of reserves, the charity’s financial policy is to expend all funds secured either directly on charitable activities or on fundraising initiatives designed to increase income in subsequent periods. All funds are held in appropriate interest-bearing accounts.

Subsequent Events

No material events and transactions occurred subsequent to 31 March 2021.

Trustees/Directors

None of the Trustees has any beneficial interest in the company. All the Trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

Statement of the Board of Trustees’ responsibilities for the financial statements

The Trustees, (who are also Directors of the charitable company for the purposes of company law), are responsible for preparing the Trustees’ Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for the 12-month period of financial activities and not approve the financial statements unless they are satisfied that the financial statements give a true and fair view of the state of the affairs of the Charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the year then ended.

In preparing these financial statements which give a true and fair view, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of Financial Statements may differ from legislation in other jurisdictions.

Each of the Directors, who held office at the date of approval of this Trustees’ Report, has confirmed that there is no information of which they are aware which is relevant to the audit but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are made aware of such information.

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CHILDREN IN CRISIS

TRUSTEES’ REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

This report has been prepared in accordance with the special provisions of Part 15 of the Charities Act 2006 relating to smaller entities.

On behalf of the Board of Trustees:

Anthony Wallersteiner Trustee

Date: 23[rd] December 2021

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CHILDREN IN CRISIS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF CHILDREN IN CRISIS FOR THE YEAR ENDING 31 MARCH 2021

AUDITOR’S REPORT

Opinion

We have audited the financial statements of Children in Crisis (‘the company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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 Ireland’ (United Kingdom Generally Accepted Accounting Practice).

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 financial statements section of our report. We are independent of the Corporation 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 trustees’ 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 trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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CHILDREN IN CRISIS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF CHILDREN IN CRISIS FOR THE YEAR ENDING 31 MARCH 2021

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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 trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees (who are also the directors of the charitable company for the purposes of company law) 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 trustees 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 trustees are responsible for assessing the charitable 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 trustees either intend to liquidate the charitable 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

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CHILDREN IN CRISIS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF CHILDREN IN CRISIS FOR THE YEAR ENDING 31 MARCH 2021

Our approach was as follows:

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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CHILDREN IN CRISIS

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF CHILDREN IN CRISIS FOR THE YEAR ENDING 31 MARCH 2021

Use of our report

This report is made solely to the charitable 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Neil Finlayson (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD

Date : 23[rd] December 2021

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CHILDREN IN CRISIS

STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING THE INCOME AND EXPENDITURE

ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

Notes
Income
Donations
2
Donations from individuals and corporates
Grants from Trusts and Foundations
Income from Charitable Activities
Contracts for operational programmes
3
Other Income
Event income
4
Investment income
Furlough Scheme income
Total income
Expenditure
Fundraising costs
5
Charitable activities
6-8
Total operating expenditure
Net operating expenditure
Net Gains/(Losses) on investment assets
12
Transfer between funds
Net expenditure and net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Total
Total
Funds
Funds
2021
2020
£
£
£
£
285,545
-
285,545
235,771
10,174
34,685
44,859
214,890
-
1,236,879
1,236,879
590,133
-
-
-
1,409
358
-
358
585
15,703
-
15,703
-
311,780
1,271,564
1,583,344
1,042,788
57,614
-
57,614
140,272
112,269
1,048,931
1,161,200
1,223,126
169,883
1,048,931
1,218,814.51
1,363,397
141,897
222,633
364,530
(320,609)
(108)
-
(108)
(1,212)
(20,132)
20,132
-
-
121,657
242,765
364,422
(321,821)
204
246,192
246,396
568,218
121,861
488,957
610,818
246,396

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing operations.

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CHILDREN IN CRISIS

BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2021

Notes
£
£
Fixed Assets
Investments
11
#REF!
7,129
7,129
Current Assets
Debtors
12
65,461
Cash at bank and in hand
556,485
621,946
Creditors: Amounts falling due within one year
13
(18,258)
Net Current Assets
603,689
Total Assets less Current Liabilities
610,818
Creditors: Amounts falling due after one year
14
-
NET ASSETS
610,818
Funds
Restricted funds
15
488,957
Unrestricted funds
121,861
Total Charity Funds
610,818
At 31 March 2021		 £
£
7,239
7,239
180,940
97,973
278,913
(39,558)
239,354
246,594
(198)
246,396
246,192
204
246,396
At 31 March 2020		 £
£
7,239
7,239
180,940
97,973
278,913
(39,558)
239,354
246,594
(198)
246,396
246,192
204
246,396
At 31 March 2020
246,594
(198)
246,396
246,192
204
246,396

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

They were approved and authorised for issue by the trustees on 23rd December 2021 and signed on their behalf by:

Anthony Wallersteiner Chairman Company registration number: 2815817

The accompanying notes form part of these financial statements

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CHILDREN IN CRISIS

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Net cash Inflow/(Outflow) from operating activities
Net Cash Inflow from returns on investments
Bank interest and investment income
Increase/(Decrease) in cash at bank and on hand
Cash balance at beginning of the year
Cash balance at end of the year
Reconciliation of net incoming resources to net cash inflow from charitable activities
Net expenditure
Bank interest and investment income
Investment Loss
Depreciation
Decrease in debtors
(Decrease) in creditors
Net cash Inflow/(Outflow) from operating activities
Analysis of cash and cash equivalents and net debt
Cash in hand and at bank
Opening balance
Cash-flows
Closing balance		 2021
2020
£
£
458,154
(315,681)
358
585
458,511
(315,096)
97,973
413,069
556,484
97,973
364,422
(321,821)
(358)
(585)
108
1,212
-
1,552
115,480
126,139
(21,498)
(122,178)
458,154
(315,681)
2021
2020
£
£
97,973
413,069
458,512
(315,096)
556,485
97,973

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CHILDREN IN CRISIS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting Policies Statutory Information Children in Crisis is a charitable company limited by guarantee and is incorporated in United Kingdom. The registered office address is 33 Creechurch Lane, London, EC3A 5EB.

a) Basis of preparation

These financial statements are prepared under the historical cost convention, as modified by the revaluation of investments being measured at fair value through income and expenditure within the Statement of Financial Activities.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), including Update Bulletin 2. The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the Companies Act 2006, and the Charities Act 2011.

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

The principal accounting policies adopted in the preparation of the financial statements are set out below.

b) Going concern

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The Trustees have given due consideration for the effects of the Covid-19 outbreak, which occurred before these financial statements were signed. This assessment has also included a potential loss of income as a consequence of Covid-19. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. The charity entered the financial year 2020/21 with Unrestricted reserves of £204 and at 31 March 2021 had unrestricted reserves of £121,861. In assessing whether Children in Crisis is a going concern, the Trustees have also considered the reserves of the Street Child charitable group, of which the charity is a wholly owned subsidiary. The trustees have considered the group forecasts and projections and have taken account of pressures on donation and grant income and cash flow for 12 months from the date of approval of the financial statements, the associated assumptions that under-pin it, the pipeline of new income and the steps that could be taken to reduce expenditure should this be necessary and in particular any impact of Covid-19 within these areas. Whilst the ultimate impact cannot be quantified, the Trustees are satisfied that the group has sufficient resources to continue in operational existence for the foreseeable future. The group is largely sheltered from the expected effects of the pandemic due to its loyal donor base and a significant grant pipeline, although some events have been curtailed as a result of the restriction on travel. Annual budgets have been revised taking this into account with prudent figures for both income and expenditure and the charity holds significant reserves and has liquid assets in the form of cash held in short term deposits. The Trustees have concluded that with the reserves policy and cash liquidity requirements of the charity together with the commitment of support received from Street Child, the ultimate controlling party, there are no material uncertainties as to the charity’s ability to continue in operational existence for the foreseeable future.

The Trustees have received written assurance from the Board of Street Child that they will continue to provide financial support to Children in Crisis to enable it to meet its liabilities as they fall due for a period of twelve months from the date of approval of these financial statements and will not seek repayment of amounts owed to Street Child unless the charitable company’s cash flow permits this.

c) Income

All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably.

Legacies are recognised following probate and once there is sufficient evidence that receipt is probable and the amount of the legacy receivable can be measured reliably. Where entitlement to a legacy exits but there is uncertainty as to its receipt or the amount receivable, details are disclosed as a contingent asset until the criteria for income recognition are met.

d) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

20

CHILDREN IN CRISIS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS

e) Allocation of overhead and support costs Overhead, support and governance costs are allocated between the cost of raising funds and charitable activities. Overhead, support and governance costs relating to charitable activities have been apportioned between activities. f) Costs of raising funds The costs of generating funds consist of investment management fees and the costs of raising funds including an apportionment of overhead, support and governance costs. g) Charitable activities Charitable activities are for improving the lives of children and young people in situations of conflict and poverty. We do this by working to support children’s education, learning and protection. Costs of charitable activities include grants payable and other costs directly associated with teacher training, school building, juvenile justice and an apportionment of overhead, support and governance costs. h) Critical accounting estimates and areas of judgement In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. i) Depreciation Tangible fixed assets costing more than £5000 are capitalised. Depreciation is provided on tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful lives as follows: Furniture and office equipment: Over 4 years j) Investments Investments are shown in the balance sheet at their market value. The market value of investments is determined by reference to stock exchange prices at the balance sheet date. k) Funds Unrestricted funds are funds which can be used in accordance with the charitable objects at the discretion of the Trustees. Within unrestricted funds are free reserves which are funds not earmarked for specific activities, designated funds which are funds earmarked by trustees for essential future spending and fixed asset funds which are funds represented by functional fixed assets. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. They are to be spent in their respective geographical locations and project activity. The aim and use of each fund is set out in the notes to the financial statements. l) Gifts in kind Gifts in kind donated to the charity for distribution are included in income only when distributed. Items are valued by the donor at the time of the gift. m) Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

n) Foreign exchange transactions

Transactions denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the dates of these transactions. Monetary assets and liabilities are denominated in foreign currencies at the balance sheet date and are translated at the rates ruling at that date. All exchange differences are taken to the Statement of Financial Activities.

o) Leased assets

Where assets are financed by leasing agreements that give rights approximating to ownership ('finance leases'), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term. The corresponding leasing commitments are shown as amounts payable to the lessor. Depreciation on the relevant assets is charged to the profit and loss account.

Lease payments are analysed between capital and interest components so that the interest element of the payment is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. The capital part reduces the amounts payable to the lessor.

All other leases are treated as operating leases. Their annual rentals are charged to the profit and loss account on a straight line basis over the term of the lease.

p) Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

21

CHILDREN IN CRISIS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS

q) Pensions

Contributions to the company's defined contribution pension scheme are charged to the profit and loss account in the year in which they become payable.

r) Legal status

The liability of each member in the event of winding up is limited to £10. Children in Crisis is the sole member of Children in Crisis Trading Limited, a Company Limited by Guarantee and registered with Companies House Number 02933347. Children in Crisis Trading Limited was dissolved on 29th December 2020.

22

CHILDREN IN CRISIS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

2 Donations and Legacies

Donations
Grants
Furlough Scheme
Donations
Grants
3
Contracts for operational programmes
International Narcotics Enforcement Bureau
UN OCHA
European Union
Education Cannot Wait
Other Non EU
4
Other Income
Event income
Event income		 Unrestricted
Restricted
Total
Funds
Funds
2021
£
£
£
285,545
-
285,545
10,174
34,685
44,859
15,703
-
15,703
311,422
34,685
346,107
Unrestricted
Restricted
Total
Funds
Funds
2020
£
£
£
235,771
-
235,771
52,978
161,912
214,890
288,749
161,912
450,661
2021
2020
£
£
112,855
245,260
619,793
195,415
191,470
133,605
312,761
-
-
15,853
1,236,879
590,133
Unrestricted
Restricted
Total
Funds
Funds
2021
£
£
£
-
-
-
Unrestricted
Restricted
Total
Funds
Funds
2020
£
£
£
1,409
-
1,409

22

CHILDREN IN CRISIS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS

5
Cost of raising funds
Direct Staff costs
Other direct fundraising costs
Cost of events
Allocated support costs (Note 8)
Total cost of raising funds		 2021
2020
£
£
Unrestricted
Unrestricted
34,718
57,536
7,990
19,203
-
132
42,708
76,870
14,906
63,401
57,614
140,272

6 Expenditure on charitable activities: improving the education and protection provided to children

Afghanistan
DRC
Burundi
Sierra Leone
Allocated support costs (Note 8)		 Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
Funds
Funds
2021
Funds
Funds
2020
£
£
£
£
£
£
97,139
970,805
1,067,944
84,964
764,747
849,711
224
50,973
51,197
48,324
204,624
252,948
-
22,022
22,022
-
382
382
-
5,131
5,131
-
56,684
56,684
14,906
-
14,906
63,401
-
63,401
2021
2020
112,269
1,048,931
1,161,200
196,689
1,026,437
1,223,126

7 Grants paid to external organisations

Country
Partner
Afghanistan
Co-ordination of Rehab
Afghanistan
Afghan Women's Educational Centre (AWEC)
Afghanistan
Empowerment Centre for Women
Afghanistan
War Child
Afghanistan
Tabish
Democratic Republic of Congo
Eben/Ezer Ministry International
Sierra Leone
Welfare Society for the Disabled (WESOFOD)
Sierra Leone
FAWE		 2021
2020
£
£
64,582
-
54,244
139,190
33,925
69,266
12,621
-
7,072
18,776
1,029
176,509
4,739
17,745
-
37,320
178,212
458,807

8 Analysis of support costs

Support staff costs
Office costs
Communications
Exchange (gains)/losses
Legal & professional
Recharge of HQ Overheads to projects		 Charitable
Raising
Total
Charitable
Raising
Total
activities
Funds
2021
activities
Funds
2020
£
£
£
£
£
5,012
5,012
10,024
21,307
21,307
42,613
13,926
13,926
27,852
21,943
21,943
43,887
5,174
5,174
10,348
10,501
10,501
21,003
15,376
15,376
30,751
1,113
1,113
2,225
7,784
7,784
15,569
8,537
8,537
17,075
(32,365)
(32,365)
(64,730)
-
-
-
14,906
14,906
29,814
63,401
63,401
126,803

23

CHILDREN IN CRISIS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS

9 Auditors' Remuneration

Statutory UK audit
Staff costs
Wages and salaries
Social security costs
Pension costs		 Total
Total
2021
2020
£
£
9,000
9,600
9,000
9,600
Total
Total
2021
2020
£
£
55,495
125,449
5,160
12,428
3,099
10,204
63,754
148,081

10 Staff costs

Included in the costs above are termination payments totalling £10,188 (2020:£0)

The total average monthly number of employees by function, was:

Fundraising
Management and administration
Programme operation and logistics		 0.2
1.0
0.8
2.0
0.1
1.0
1.1
4.0

No employee earned more than £60,000 in the year:

Trustees and Key Management Personnel

No trustees were paid or received any other benefits from employment with the charitable company in the year (2020 nil). No trustee received payment for professional or other services supplied to the charitable company (2020 nil)

No trustee claimed travel expenses (2020: nil) during the year.

All Key Management Personnel are now employed by Street Child, the ultimate parent entity of Children in Crisis. Hence, the total gross employee benefits of the charity's key management personnel were £0 (2020: £0).

Employer's pension contributions in respect of the Key Management Personnel was £0 (2020: £0).

24

CHILDREN IN CRISIS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS

11 Investments

Investments
31 March 31 March 31 March
2019 2021 2020
£ £ £
Market value at 1 April 7,237 8,449
Gain/(loss) in the period - (108) (1,212)
Market value at 31 March 7,129 7,237
31 March 31 March 31 March
2019 2021 2020
£ £ £
Children in Crisis Trading Limited 2 - 2
GlaxoSmithKline 5,748 4,637 5,453
Pearson 2,701 2,492 1,785
8,451 7,129 7,239
Debtors
31 March 31 March
2021 2020
£ £
Intercompany Debtor 15,461 52,304
Trade debtors 50,000 121,530
Prepayments - 7,106
65,461 180,940
Creditors
31 March 31 March
2021 2020
£ £
Trade creditors 9,810 14,059
Accruals and deferred income 8,250 12,146
Other creditors - 12,561
Franking machine 198 792
18,258 39,558
Long Term Creditors
31 March 31 March
2021 2020
£ £
Franking machine - 198
- 198

12 Debtors

13 Creditors

14 Long Term Creditors

25

CHILDREN IN CRISIS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS

15 Restricted funds

Afghanistan - Juvenile Justice - EU
Afghanistan - Juvenile Justice - Non EU
Afghanistan - OCHA
Afghanistan: INL Educated & Empowered 1
Afghanistan: INL Educated & Empowered 2
Afghanistan - OCHA - COVID 19
Afghanistan - OCHA - Protection Services in Winter
Afghanistan: ECW - Restricted
Burundi - Rural Skills
DRC Projects
Sierra Leone - Disability
Sierra Leone - Rehabilitation
Total Restricted funds		 Balance
Income
Expenditure
Transfers
Balance
1 April
Between
31 March
2020
Funds
2021
£
£
£
£
£
63,920
191,470
(151,240)
104,150
(26,862)
34,685
(34,685)
26,862
-
33,742
114,646
(146,040)
2,348
6,730
-
-
(6,730)
-
-
112,855
(152,879)
(40,024)
-
355,348
(348,742)
6,606
-
149,799
(122,355)
27,444
-
312,761
(14,864)
297,897
49,618
-
(22,022)
27,596
113,912
-
(50,973)
62,939
1,399
-
(1,398)
-
3,732
-
(3,732)
-
246,192
1,271,564
(1,048,930)
20,132
488,956

Afghanistan

Income to fund the Afghanistan programme was received from INL (International Narcotics and Law Enforcement- US disbursement), OCHA (United Nations Office for the Coordination of Humanitarian Affairs), the European Union, Enabled Children's Initiative, Education Cannot Wait, Street Child US and Rayne Trust

Burundi

No income was received during the year. The Burundi project aims to improve the access and retention of Batwa children in school.

DRC

No income was received during the year

The DRC Projects aim to raise the standard of learning for primary and secondary school children in conflict affected South Kivu.

Sierra Leone

No income was received during the year

2020 Restricted Funds movements

Afghanistan - Juvenile Justice - EU
Afghanistan - Juvenile Justice - Non EU
Afghanistan - Enabled Children's Initiative
Afghanistan - General
Afghanistan - OCHA
Afghanistan: INL Educated & Empowered 1
Afghanistan - CBEC
Burundi - Rural Skills
Burundi - Other
DRC - School Building
DRC - Teacher Training
DRC - Other
Sierra Leone - Water, Sanitation and Hygiene (WASH)
Sierra Leone - Disability
Sierra Leone - Rehabilitation
Total restricted funds		 Balance
Income
Expenditure
Transfers
Balance
1 April
Between
31 March
2019
Funds
2020
£
£
£
£
£
185,631
133,605
(255,316)
63,920
38,075
26,853
(91,790)
(26,862)
4,573
11,919
(16,492)
-
(68,304)
-
-
68,304
-
-
195,415
(161,673)
33,742
-
245,260
(238,529)
6,730
946
-
(946)
-
50,000
-
(382)
49,618
4,791
-
-
(4,791)
-
8,370
85,366
(93,736)
-
184,726
19,435
(90,249)
113,912
20,639
-
(20,639)
-
15,202
23,095
(38,297)
-
4,731
-
(3,332)
1,399
7,690
11,097
(15,055)
3,732
457,070
752,045
(1,026,437)
63,514
246,192

26

CHILDREN IN CRISIS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS

16 Analysis of net assets between funds 2021

Investments
Net Current Assets
Long term Liabilities		 Unrestricted
Restricted
Total Funds
Funds
Funds
2021
£
7,129
-
7,129
114,732
488,957
603,689
-
-
-
121,861
488,957
610,818

Analysis of net assets between funds 2020

Investments
Net Current Assets
Long term Liabilities		 Unrestricted
Restricted
Total Funds
Funds
Funds
2020
£
7,239
-
7,239
(6,838)
246,192
239,354
(198)
-
(198)
204
246,192
246,396

17 Future financial commitments

The charitable company's total future minumum lease payments under non-cancellable operating leases are as follows for each of the following periods:

Operating leases:
One year
Two to five years		 2021
2020
£
£
198
27,186
-
198
198
27,384

18 Related Party Transactions

On 1st April 2018 Children in Crisis was acquired by Street Child. On this date Street Child became a Trustee of Children in Crisis.

Included in Debtors is an amount owed by Street Child of £15,461 (2020 £15,304) and an amount owed by Build Africa of £0 (2020 £36,999) These represent re-charged staff and other costs that have occured in the period to 31 March 2021.

19 Ultimate Parent Company

The Company is a subsidiary of Street Child, a charitable company registered in England and Wales (Company Number. 06749574, Charity Number 1128536.)

Copies of group financial statements are available from the registered office of the parent at 33 Creechurch Lane, London, EC3A 5EB.

20 Capital Commitments

There were no capital commitments not provided for in the financial statements (2020: none).

27