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2023-12-31-accounts

2023 ANNUAL REPORT AND ACCOUNTS

Ending poverty through education

UK Registered Charity Number: 1058973

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WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT
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AIZACK

On our cover is Aizack.

He comes from Ruvuma in Tanzania where he lived in a single room brick house with his mother, father and four other siblings.

His mother is a farmer and his father works in construction but it was a very hard life for all of them. When the crops failed there was nothing for the family to eat and this happened regularly.

Aizack was able to attend a local primary school but had to walk miles to reach it.

Without any income, the family couldn’t afford the books and uniform needed for Aizack to go to secondary school and so he just helped his mother on the farm. When the Sisters met Aizack in May last year he was malnourished and fearful for his future and that of his family.

Aizack with Sr Margie and his new friends at Dodoma Boystown, Tanzania.

Thanks to the support of our donors we were able to provide funding for a place for Aizack at the Sisters’ new school in Dodoma. He was one of the first to join the school in August 2023. We were delighted to meet him in September with all his new Form 1 friends. Safe in the care of the Sisters the change in him has been truly remarkable.

Thanks to you he is loving every day at school and hopeful for his future. He says “ the Sisters of Mary greatly helps a lot of students who are like me having the strong desire to finish my education in order to help my family. The sisters had provided us with everything we need like food, clothing and shelter. Also the environment is perfect to study hard and achieve my dream of becoming a sailor someday ”.

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT 3

CONTENTS

Company Information 4
Introduction from the Chair
& UK Manager 5
About World Villages for Children
& the Sisters of Mary (SoM)
Trustees’ Report		 7-8
9-21
Thank you 22
The Impact of our work 23-25
Summary of future aims, 26-28
objectives and activities
Financial Review		 29-35
Statement of Trustees’ Responsibilities 36
Independent Auditor’s Report 37-39
Statement of Financial Activities 40
Balance Sheet 41
Cash-flow statement 42
Notes to the Accounts 43-52

Company Number: 3267479 UK Registered Charity Number: 1058973

Anastazia on the right, with her family when she a”

COMPANY INFORMATION

Directors & Trustees

Sister Elena Grengia Belarmino (Appointed Chair 6 July 2023) Sister D L Cho (Sister Maria), Chair of Trustees (Resigned as Chair, 31st March 2023)

Nicola Lawson (Appointed 8 July 2016) John Graham, Treasurer (Appointed 18 April 2019) Jo Ogilvie (Appointed 12 April 2022) Clare Bamberger (Appointed 4 July 2019) Sr Margarita Campos Abeja (Appointed 6th July 2023) Fr Fretch Ballesteros (Appointed 7th August 2023) Sister Y Cheong (Sister Margie) (Resigned 17th September 2019) Sister Teresita Mendoza Prudente (Resigned 6th July 2023)

Key Management Personnel UK Manager Website

www.worldvillages.org.uk

Registered Office & Charity address

Kings Buildings, 16 Smith Square, London SW1P 3HQ

Auditor

Kreston Reeves, LLP, 9 Donnington Park, 85 Birdham Road, Chichester, PO20 7AJ

Solicitor

BDB Pitmans, One Bartholomew Close, London EC1A 7BL

Bank

National Westminster Bank, St James & Piccadilly Branch, P O Box 2DG, 208 Piccadilly, London W1J 9HE

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT | |

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INTRODUCTION FROM THE CHAIR

As I look back at 2023, I am so grateful to you, our dedicated donors for your continued support of our charity programmes. Without you, our work educating the poorest children in the world would not be possible. In 2023 you truly helped us face a year of great challenges but also allowed us to make good progress.

As I took over the baton of leadership from Sister Maria Cho in March 2023 and the Chairmanship of WVC in July, my heart has been so touched by the words of support and encouragement from all our friends and supporters.

With your support and the dedication of my Sisters of Mary, along with WVC’s staff and trustees, we joyfully opened Tanzania’s first school for the poorest boys. Introducing this new facility to Dodoma ignites hope within the children, envisioning a future where they can secure employment, become productive individuals, and support the needs of their impoverished families. We were fortunate to receive the first cohort of 115 young boys at the school in August.

Your generosity also ensured that we were able to accept new children at our other schools around the world and to provide all the food, clothing and educational supplies needed for a total of 20,879 children in our care at the mid point of 2023 so they could recover, grow healthy and thrive with us.

During the year 1,381 final year students passed their exams and graduated from our schools ready for work. So very many of these are already employed, able to be productive, help their parents and siblings financially and provide support for members of their community.

The heartbreaking desperation of children in poverty continued to increase in 2023 with malnutrition, violence, abuse and early marriage much witnessed during our community work in the poorest regions. In 2023 we ventured further to more remote areas to reach these most vulnerable children and your support allowed us to bring them into a safe place at our schools.

The rising cost of food and basic commodities during the year was a constant concern. As for you all, we have seen the cost of food for our children rise, in some cases by more than 30%. With your help and continued support we hope that we can continue to address this challenge and find new ways to run our programmes and feed our children whilst protecting the planet’s resources.

We remain so grateful to you for your commitment to our mission, your humanitarian interest and care for the welfare and future of our poorest children and your longstanding generosity towards their care.

INTRODUCTION FROM THE UK MANAGER

In 2023, we were so grateful for the kindness, interest and continued financial support from our friends, individual and organisational donors, trusts and foundations.

We were thrilled to meet up with more of our donors during the year and to celebrate our lasting bonds with them. We are so touched by the enormous lengths (and heights) they go to by fundraising for us and to hear the emotional stories of their visits to the schools overseas.

During the year we were again blessed with the hard work and good guidance of our WVC board who gave their time so generously. We were delighted to welcome Sr Elena as our new Chair in July and thrilled Sr Maria remains as an active member on our board. During the year we were also delighted to welcome Sr Margarita Abeja and Fr Fretch Ballesteros onto the board, the latter joins as an alumni of the Philippines school.

It was a very difficult year for our fundraising but with your good will and constant kindness we were able to keep our strategic focus on fundraising, good governance, and effective use of resources, exceed our budgets and continue sending regular grants to the Sisters of Mary to help them in their poverty relief work. I am particularly grateful to the WVC team for their hard work during the year – their diligence, understanding of the SoM programmes and motivation to succeed is much appreciated.

As in previous years, we focused on raising flexible use, unrestricted funding to help with the full range of the children’s needs. Food was a high priority in 2023 as the costs continued to rise around the world. We also provided funds for the vocational training so new courses could be added and tailored to the needs of local employers.

We were buoyed up by the support of the alumni of the SoM during the year whose honest engagement with us speaks volumes for the transformative power of the Sisters programmes. We continued gathering data and measuring impact, and closely followed the progress of the children in the schools, especially two in Brazil who are featured later.

Our fundraising is driven by profound respect for the Sisters’ poverty relief work. We were privileged to witness the new boys’ school opening in Dodoma, Tanzania, spend time with local families, and support new children at all the schools. It is our joy to contribute to the annual growth of this programme, providing education and care to the world’s most impoverished children.

Thank you

Nicola Lawson

Sr Elena Belarmino Chair of Trustees

UK Manager and Trustee

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT | Empowering futures, erasing poverty } ~ 9 8

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT 7

ABOUT WORLD VILLAGES FOR CHILDREN

World Villages for Children supports the worldwide education programmes of the Sisters of Mary (SoM) to provide a free, quality education to the poorest children in the world.

At the end of 2022, approximately 8.4% of the world’s population, or as many as 670 million people, were living in extreme poverty and the majority of these were in sub-Saharan Africa and South Asia. If current trends continue, only one third of countries will halve national poverty by 2030[1] .

Children in these countries are the most vulnerable; they lack food, water, shelter, medical care & education. They are often exposed to neglect, violence, abuse, malnutrition and early marriage. Access to education for these children transforms their lives and that of their families.

Our fundraising provides school places for the children in the Philippines, Mexico, Guatemala, Brazil, Honduras and Tanzania. In a safe and loving environment with the Sisters, the boys and girls receive full time care and an accredited education which gives them technical skills relevant to local employment and helps them to find stable, fairly paid employment. These children are the focus of our fundraising work.

ABOUT THE SISTERS OF MARY EDUCATION PROGRAMMES

The Sisters’ education programmes started in 1964 and have grown at the invitation of governments to the poorest regions in new countries and communities. They now operate 13 live-in secondary schools for children aged 11-17, (Philippines, Mexico, Guatemala, Honduras, Brazil & Tanzania), 5 day-care centres for toddlers aged 3-5, (Mexico, Guatemala, Brazil (2), Tanzania), 1 elementary school for youngsters aged 6-11 (Brazil), 3 medical centres (Philippines (2) & Guatemala) and 1 training centre for out of work young women (Tanzania).

Together we provide places for nearly 20,000 of the poorest children each year. The programmes are low cost and generate huge operating efficiencies and in 2023 it cost an average of just £1,200 to educate and care for one child for the year. The Sisters provide holistic support for each child, helping them to recover from their early lives, grow healthy and well, to become confident, independent, skilled enough for work and able to help their families and contribute positively to society.

Education is provided by professional teachers, accredited by the national education authorities in each country and also covers technical subjects relevant to local jobs most recently including Care giving, Cyber security and Digital jobs training.

The values of the UNSDGs underpin the Sisters' work. They use their dedication and in country expertise to ac cess the p oorest communities. They regularly put themselves in harm’s way to reach the most deprived children and offer them the comforts of a normal childhood

1 The target date for the UNSDG – no poverty

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WHERE WE WORK

SISTERS OF MARY PROGRAMMES AROUND THE WORLD 2023

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MEXICO HONDURAS
CHALCO TEGUCIGALPA
2,573 girls 690 girls TANZANIA
CHALCO DAY CARE AMARATECA
101 boys and girls 756 boys KISARAWE
786 girls
GUADALAJARA
KILUVYA DAY CARE
1,861 boys
148 boys and girls
KILUVYA TRAINING CENTRE THE
100 young women
GUATEMALA DODOMA PHILIPPINES
ZONA 6 115 boys BIGA
1,016 boys 2,443 girls
ZONA 13 ADLAS
767 girls 1,864 boys
ZONA 21 DAY-CARE BRAZIL TALISAY
85 boys and girls BRASILIA 2,379 girls
850 girls MINGLANILLA
BRASILIA DAY CARE 1,787 boys
79 boys and girls
SAO PAULO ELEMENTARY AND DAY CARE
470 boys and girls
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WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT | |

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Trustees’ Report

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT

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TRUSTEES REPORT

The Trustees of WVC are pleased to present their annual report for the year ended 31 December 2023 under the Companies Act 2006, together with the audited accounts for the year. They confirm that the latter complies with the requirements of the Act, the Charities (Accounts and Reports) Regulations 2008 and the Charities SORP 2019.

Our Charity Objects for WVC are to:

To raise the profile of the SoM’s education work for the relief of poverty

STRATEGY

2023 was a busy and effective year for the charity as we exceeded both our forecast and prior year performance and focused on maintaining the regular flow of funding to support the sisters, not only for the day to day needs of the existing children but to help them welcome new children. We were pleased to send a grant of £1,500,000 to the schools.

Our funding aims included preparing those children for employment and progressing the sustainability initiatives at the programmes -reducing operating costs, preserving the food budget, protecting the planet and crucially releasing new funding to help additional children.

The Sisters welcomed 5,393 new children during the year and 1,381 children graduated into work. Employment rates improved and in the Philippines 99% of 2022[1 ] graduates are already employed and helping their families.

The Sisters education programmes are now leading the way in many of their countries with their tailored approach to relevant vocational training for local employment. During the year we were pleased to help this progress and provide help with funds for the updated technologies needed to teach IT, electronics and solar panel installation.

As in 2022, the charity defined core objectives for its activities for 2023 around governance, operational effectiveness, impact measurement and fundraising.

GOVERNANCE

2023 was a very successful year in progressing our objective to build a more diverse board for the charity. The existing board continued to provide invaluable support and guidance in every area and the staff and management team gain considerably from their experience and expertise, particularly around digital, financial and data insight. In the summer we were sad to lose Sr Maria as Chair as she stood down as Superior General of the Sisters but delighted to welcome Sr Elena as the new Chair and to have Sr Maria remain as a trustee. We were also excited to welcome Sr Margarita Campos Abeja onto the board and Fr Fretch Ballesteros who is a graduate of the Philippines programme working in the UK. As a charity we are already gaining immeasurably from their varied experiences.

Our board advisory group formed of alumni of the programmes also met during the year and these relationships continue to add depth to our understanding of the programmes, the lives and careers of the graduates and how we evolve our impact measurement framework

OPERATIONAL EFFECTIVENESS

In 2023 we continued the initiative started in 2022 to utilise our resources differently and better to maximise our efficiency and effectiveness in the face of the rising costs. We brought some of our response handling inhouse which was an overwhelming success, reducing cost, improving donor stewardship, thanking and engagement and increasing repeat gifts.

We also collaborated with other charities on certain areas of fundraising which helped to reduce our fundraising costs whilst increasing our engagement and income.

IMPACT MEASUREMENT

Thanks to the involvement of our board advisory group and the support of the Sisters and alumni of the SoM programmes, 2023 saw another improvement in how we measure and assess the impact of our work. Content and data from the Sisters’ programmes is improving continually and 2023 was a big upward shift in the volume of data being generated and received. Our regular contacts with the programmes moved to fortnightly so we had good access and transparency on the use of our funding and also the ongoing project needs.

The alumni are generous with their time and supportive of the need to share their data with us. The alumni now totals 170,000 children who have graduated from the schools and the most recent alumni survey data was the largest data set so far. The results of this are shown later. When these children graduate into productive work, able and motivated to support their families and community members, they multiply the impact of our donor’s support many times over. Their desire to pay forward the help they received also extends to the new graduates, as they in turn help the Sisters to reach new children, help the existing students and accelerate their transition into work, all of which further boosts the poverty relief impact created by our donors’ support.

1 There was no graduation from the Philippine programmes in 2023 whilst the Sisters aligned the courses with the national timetable

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT

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FUNDRAISING

The fundraising environment continued to be a challenge in 2023 and the charity defined a cautious budget to ensure regular funding for the Sisters’ programmes. Thanks to the commitment of our generous supporters we were pleased to meet our targets and to finish the year ahead of our overall fundraising aim at £2,365,435 a 7.3% uplift on 2022 and 15% ahead of the forecast. Individual giving particularly around direct mail performed consistently according to our KPIs on response rate, average gift and RoI. Appeals at the latter part of the year were particularly strong in response and efficiency despite the increase in mailing costs. Legacy income has begun to recover with some large legacies notified during the year. Income from the other income streams including Trust & Foundations however has not yet reached the level forecast and continues to be a focus for the future.

As in 2022, our refreshed branding continues to help in engagement with audiences particularly through the digital channels and we have been pleased to see the increased momentum in digital reach in 2023 using the regular updated content and data provided by the Sisters.

We were pleased to send the majority of our funding (96.5%) to the Sisters as unrestricted grants ensuring that it could be used in every area of care for the children. This allowed the Sisters to reach new, more isolated and vulnerable children in each country, helped them welcome 5,393 new children into the schools during the year and at the mid-point in August they were caring for a staggering 20,879 in all their programmes worldwide.

OUR GRANT OF £1,500,000 WAS DISTRIBUTED IN 2023 AS FOLLOWS:

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BRAZIL
TANZANIA 6.5%
5.5%
HONDURAS
9%
WHERE YOUR
GIFT WAS USED
GUATEMALA PHILIPPINES
10% 46%
O -
MEXICO
23%
FOOD 57%
LT
EDUCATION, TEACHERS SALARIES
17%
& LEARNING EQUIPMENT
UTILITIES, SECURITY, INSURANCE 7%
& TRANSPORTATION
CLOTHING & SHOES 7%
MEDICINE, HEALTH AND HYGIENE 7%
FIXTURES, FITTINGS,
5%
MAINTENANCE & REPAIRS
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HOW YOUR FUNDS WERE USED IN 2023

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT

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PROGRESS AT THE COUNTRY PROGRAMMES

Thanks to the support of our friends and donors in 2023 we continued to ensure the Sisters had the regular funds needed to welcome the most deprived boys and girls in the world.

Thanks to you the most neglected children were safe, well fed, healthy and educated ready for a better future.

COUNTRY 2 NUMBER
OF CHILDREN		 TEACHERS ANCILLARY
STAFF		 DOCTORS
& NURSES		 SISTERS NEW CHILDREN
ACCEPTED
IN 2023
PHILIPPINES
Biga Girlstown
Adlas Boystown
Talisay Girlstown
Minglanilla Boystown
Medical Centre Biga
Medical Centre Minglanilla		 2443
1864
2379
1787
112 3
76 4		 63
66
82
70		 76
55
73
69
12
7		 4
1		 34
21
22
14
2
2		 638
489
558
362
MEXICO
Chalco Girlstown 2573 100 67 6 51 779

Guadalajara Boystown
Day Care centre, Chalco
1861
101
65
8
42
12
4
2
21		 559
62
GUATEMALA
Zona 13 Girlstown 767 26 43 14 173
Zona 6 Boystown
Day Care centre Zona 13
Medical Clinic Zona 13		 1016
85
59 5		 35
8		 45
7
2		 4
7		 12
1
1		 260
54
BRAZIL
Brasilia (Girlstown)
 850
 28
 14 2 16
 172
Day care centre Brasilia
Sao Paulo Elementary
Sao Paulo day care		 79
317
153		 4
14
8		 6
3		 2 1
4		 44
70
45
HONDURAS
Tegucigalpa (Girlstown)
Amarateca (Boystown)		 690
756		 28
32		 27
38		 2
2		 16
10		 173
205
TANZANIA
Kisarawe (Girlstown) 786 32 22 3 18 192

Kisarawe (Day Care)
Kisarawe Training centre
(Kwa Komba)		 148
100		 1
8		 3
8		 2
2		 108
200

Dodoma Boystown		 115 2 3 6 151
Total 19476 6

5 Average out-patients per day

6 Average number of children during the year – does not include medical centre. Totals move significantly during the year due to new arrivals and graduations

2 Total student numbers vary due to new starters and graduations so these are the average recorded for the year

3 Average out-patients per day

4 Average out-patients per day

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT

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Highlights from our work and how your gift helped in 2023

Our first boys’ school in Dodoma, Tanzania, finished phase 1 construction and welcomed the first boys from the region in September.

At the midpoint of the year prior to graduations there were 20,879 children aged 3-17 being cared for in places at the programmes, the highest ever.

We helped to provide over 62,600 meals a day so all the children at our schools around the world had the balanced nutrition needed to thrive.

Graduation in Tegucigalpa, Honduras | | ) Ne e | ye a ‘ 4 inl L. 1,848 senior grade Girls in Brazil with new reading books. children finished school during the year, equipped We continued to support with educational supplies and ready for work. In including for the 881 girls at Brasilia girlstown who the Philippines 99% of received the vital text, reference and reading books graduating children are needed for grades 7-9 to help their learning and already employed. get them ready for employment. | ae . 5,393 new children and trainees were welcomed into a place in our care during the year.

Vocational training was expanded across all programmes to enhance job prospects for all, including care giving, electrical and solar technology, digital skills, medical transcription, cyber security and automation. Girls in Philippines – Care giving course 2023 : lia , . ~

Our graduates and supporters went to extreme lengths (and heights) to help us with fundraising for future generations, raising vital funds to support our work.

Sr Elena was elected as the new Superior General of the Sisters of Mary.

14 WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT | l

COUNTRY FOCUS PHILIPPINES

ACCESS TO A LIFE CHANGING EDUCATION

Thanks to our donors, we were able to send grants totalling £692,444 to the Philippine schools in 2023, 46% of our total grant.

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Joriz at his home “x
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  - Making the most of their new found childhood and this precious opportunity provided by our donors, our student Joriz says “ _living at the Sisters of Mary_ ”

  - _is like paradise_ .

~ Joriz in class at Adlas |

FOCUS ON EMPLOYMENT & INDEPENDENCE

There was no graduation in 2023 as the schools aligned their school timetable with the nationwide curriculum but all the senior children had on the job training (OJT) with local employers, a vital ingredient towards their future employment.[10]

7 Including city slum dwellers or regions like Palawan, where families survive by farming or fishing

The Sisters built on their wide network of relationships with local employers to ensure vacancies for the children and a fast track into good jobs after graduation. Recent employers include Mercedes, Audi, Samsung, Ernst & Young, and Epson.

10 The Sisters now report nearly 99% employment rate for the graduates from these programmes.

8 Philippine Technical Education & Skills Development Authority

9 Competition successes were extensive across all schools including Talisay girls who won bronze in the Philippine International Math Olympiad (Asia Digital Challenge), September 2023.

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT | | 15

COUNTRY FOCUS MEXICO

ACCESS TO A LIFE CHANGING EDUCATION

Thanks to the kindness of our donors we were able to send grants totalling £343,903 to the programmes in 2023, 23% of our total grant. 39% of this grant was spent on essential food and medicines to nourish the children and keep them healthy.

37% of the grant helped with educational costs, salaries of teachers, books & pens etc, and the remaining grant funded clothing, school and kitchen equipment, repairs, paid utility bills for the school and resourced their security services to ensure the safety of the children.

In 2023, the Sisters were able to provide additional teaching and emotional support to help the newest children to recover from their early childhood and catch up with their lost learning. All the youngsters enjoyed an accredited education, vocational training relevant to local employment and three balanced meals a day to help them grow strong. Their time at school was joyful under the nurturing care of the Sisters.

FOCUS ON EMPLOYMENT & INDEPENDENCE

The focus at school in 2023 continued to be eventual employment and the children enjoyed additional vocational courses including caregiving and agriculture to equip them for future employment locally. They also enjoyed a period of OJT with local employers. In July 674 senior boys and girls graduated ready for work for employers including TATA Industries and Hyundai.

.7 ~ 4-I}

11 Sr Martha, Sisters of Mary Chalco Girlstown, November 2023

12 Girlsnotbrides.org 21% of women in Mexico are married or in a union before the age of 18 and 4% before their 15th birthday

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COUNTRY FOCUS BRAZIL

The remaining 44% of these funds were spent on education and learning supplies; this particularly included vital text, reference and reading books for Brasilia girls, grades 7-9 which were provided thanks to the generous donors who responded to our Big Give 2023 appeal.

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Esteffany with her mother and sister
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“ These girls are not just financially poor but intellectually poor ”[14]

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Isabella and Kethelyn at our day care centre in São
Paulo in 2018 and at school in Brasilia last year.
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ACCESS TO A LIFE CHANGING EDUCATION

FOCUS ON EMPLOYMENT & INDEPENDENCE

The children worked hard in class and in their vocational courses in 2023. Nursing students enjoyed internships at the Public Health centre readying themselves for future employment and in December 144 girls graduated from senior school equipped and ready for work.

Girls with the vital books funded by our 2023 Big Give appeal

14 Sr Melinda, SoM Brasilia Update, 2023

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT | | 17

THE STORY OF JORIZ PHILIPPINES

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Felipe (in glasses) in technical class and at leisure.
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Joriz’s parents separated when he was young. Joriz and his four siblings lived with their grandparents for a while until their mother could care for them again. His mother worked collecting rubbish but struggled desperately to feed her young family. Joriz worked on the rubbish dump after school helping her to recycle waste to earn a little but it was a terrible life and left them hungry and poor. When his mother remarried, his stepfather was cruel towards Joriz and his siblings. Seeking safety and a chance of an education, Joriz was delighted to meet the Sisters and be offered a place at their boys school in Adlas, Philippines.

THE STORY OF ESTEFFANY

BRAZIL

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Felipe (in glasses) in technical class and at leisure.
----- End of picture text -----

Esteffanny lived with her mother and stepfather in a small village in Pará (Northern Brazil). She has six siblings and her mother is pregnant with another child. They had little money and life at home was not easy – just eating one meal a day if they were able. Her stepfather works on a plantation of beans and cassava, he earns so little that her 15-year-old brother has now left school to work with him, too. She says:

“I really love to study but unfortunately, I am not that good in studying because I was absent, caring for my siblings and if I have not eaten something, I could not concentrate.”

With the Sisters, Joriz has finally found safety. A place where he does not need to work to help his family put food on the table, but can rest securely and focus on his education. He loves learning, especially languages, and dreams of providing a more stable future for all his family. Joriz has the chance to make a better life, free from poverty and deprivation, thanks to the education he is receiving.

“The Sisters of Mary School became a beacon of hope for me. It offered a haven for aspiring students like me, providing free education, food, shelter, spiritual education, and a supportive community.” (Joriz)

“When I heard about Sisters of Mary, and the School in Brasilia, I wanted to join them. I said to myself ‘this is my only salvation.’ It was a great miracle and now I am here. I am so happy that I did not have chance to be lonely and sad. This is a big chance to devote myself to studies with no worries.

The Sisters welcome us with joy, the teachers are doing their best to share their knowledge to us. I already made friends. I feel that I am in heaven. I will do my very best to be a good student and be a better professional someday. When I grow up, I want to be a Police Chief. I am so grateful for the chance to live in this wonderful place. I thank our dear friends and benefactors for being so kind and generous to all of us. May God bless you always.” (Estefanny)

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COUNTRY FOCUS GUATEMALA

ACCESS TO A LIFE CHANGING EDUCATION

Thanks to the kindness of our donors we were able to send 10% of our grant to Guatemala in 2023, totalling £156,422.

59% of this grant was spent on food and medicines for all the children, with the remainder spent on educational supplies, clothing, shoes, utilities and repairs.

In 2023 the children had everything they needed to learn and thrive at school and for the newest youngsters who joined in January the opportunity was hugely emotional for them.

The Sisters at Zona 6 reported that many of the new boys were overwhelmed to see the nutritious food that was available to them for the first time and so thrilled with their first new clothing, educational and sport supplies, colouring pens, board games and sports shoes.

“ The girls of Guatemala are living in precarious poverty ”[ 15]

FOCUS ON EMPLOYMENT & INDEPENDENCE

The children at school all studied hard in 2023. They worked diligently, played hard outside of class and competed against their friends and peers, locally and nationally.[[18]] In September, three girls at Zona 13 were recognised for their outstanding academic performance by the Industrial Bank of Guatemala.

Getting ready for the world of work, all the senior grade 12 children in Guatemala enjoyed a period of OJT during the year with the girls from Zona 13 doing internships at Banc Rural. Graduation was in October and 333 boys and girls graduated from school ready for employment or further education equipped and ready to work hard and help their families onto a better life.[19]

16 www.worldbank.org/en/country/guatemala/overview, 2024

18 Two girls in Guatemala won the Maths competition and represented the country in Costa Rica and in El Salvador, they also took first place in Guatemala’s national Hockey competition

19 Two Guatemala girls secured permanent positions working in the Office of the National General Comptroller

15 Sr Jasmin, SoM Guatemala Zona 13, 14th December 2023

17 These remote communities were accessed with the help of a local company who provided helicopter access for the Sisters to reach the families and then transport for the 20 children who were offered places to reach school in January 2024.

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COUNTRY FOCUS HONDURAS

ACCESS TO A LIFE CHANGING EDUCATION

The newest children suffer dental problems as a result of their early malnutrition

FOCUS ON EMPLOYMENT & INDEPENDENCE

In vocational classes, our Honduran boys and girls focus particularly on practical skills in computing, electronics, tailoring, welding and auto mechanics for which local jobs are plentiful. The SoM school training with experienced, qualified teachers, gives them a head start with employers who regard them as skilled and reliable. 54% of last year’s graduates from Amarateca are already in work in these roles[21] , earning a steady salary and helping their families.

21 Sr Liliana Martinez, SoM Amarateca Update 23 Feb 24

In December 2023, 230 senior year students graduated from these schools and many are already working in roles with employers including Toyota, Sherwin Williams and Fruit of the Loom.

20 In terms of Human Development Index https://hdr.undp.org/data-center/human-development-index# which measures life expectancy and access to education.

20 WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT | |

COUNTRY FOCUS TANZANIA

ACCESS TO A LIFE CHANGING EDUCATION

FOCUS ON EMPLOYMENT & INDEPENDENCE

Now in their final two years, the senior girls at Kisarawe will have 2 years of advanced study which includes specialising in VETA[25 ] accredited vocational subjects including electrical installation and solar technology, computer system services and tailoring. The Ministry of Education support and recognise the unique blend of academic and vocational studies[26] being offered at the school which equips girls for locally available job opportunities.[27]

At the ladies training centre, two hundred young women completed vocational skills courses in 2023. Many have already secured employment in tailoring or baking, earning steady salaries that sustain their families, all made possible by the Sisters’ efforts in establishing a network of new employers.

27 www.worldvillages.org.uk/making-national-news-in-tanzania

22 World Bank Tanzania Briefing 2024

23 Sr Merry Jane, SoM, Kisarawe Girlstown, December 2023

24 Kisarawe girls triumphed in the volleyball, basketball and netball regional championships 25 Tanzania Vocational and Educational Training Authority 26 Sisters of Mary, Kisarawe Update, December 2023

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THE STORY OF BARACKA TANZANIA

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Felipe (in glasses) in technical class and at leisure.
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Baracka is 11 years old and lives with his mother in Hombolo village, on the outskirts of Dodoma. She has been severely affected by polio and is unable to walk. She found it challenging to work and raise enough money to feed her two children.

Now that Baracka’s sister has grown up and left home, his mother supports Baracka by taking in sewing. Work is infrequent and so there is little money to support them both and Baracka frequently missed meals. There was no money to send him to secondary school.

The Sisters met Baracka and his mother in early 2023 and were troubled by their difficulties. He was one of the first young boys to be offered a place at the new school in Dodoma and he joined as the doors opened in August 2023. We met him in September.

In the care of the Sisters he is recovering from his difficult early life, studying hard, eating everything that we can provide for him and growing fast. He is a happy little boy, and loves his time at school, determined to pass his exams and be successful so that he can help his mother.

We were privileged to also meet Baracka’s mother during a visit to his community and the pride shown by his mother at the progress of her son shines through.

Thank you for your help in making this life changing chance possible for this young family.

THE STORY OF DARELY HONDURAS

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Felipe (in glasses) in technical class and at leisure.
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Darely is from Lempira in Honduras. She is 14 years and she has two sisters, one of whom is her twin. She doesn’t know her father and her mother left her when she was five to take a new life and start a new family. Darely went to live with her grandmother. Darely is also separated from her twin. At the age of 12 her twin ran away from their home and had a baby, when she was just 13 years old.

It was a difficult life for Darely living with her grandmother who cared for her deeply but there was never enough money for food and she was constantly hungry. Darely couldn’t afford to continue school after 5th grade (age 10). Her aunt offered to help with additional schooling to grade 6 in return for cleaning and household chores. So Darely would wake early to do her housework and then complete her chores after homework in the evening.

Last year her grandmother told her about the mission of the Sisters and in November the Sisters were able to met Darely. They were moved by her difficulties. Thanks to the support of our donors we were able to offer Darely a place at the Sisters’ girls’ school in Tegucigalpa. She joined them in January 2024.

Now that she is in the care of the Sisters, Darely is beginning to recover from her difficult start in life and thrive in the care of the Sisters. With the regular food at school she has overcome her terrible hunger and is growing fast. Although her education level is very low she is having additional teaching and support to help her catch up. She is happy at school, receiving special care from the Sisters and enjoying a childhood, making new friends and developing skills and talents which will give her a dignified, poverty free, independent future.

“Now that I am here, I am very fine, happy and contented, living and learning a lot of things. With a grateful heart, I would like to say, thank you very much for helping me and my companions and the Sisters of Mary School.”

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22
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Thank you

None of this life changing work would be possible without the generosity of our individual donors, regular Guardian Angels, organisations, churches, and Trusts and Foundations whose commitment and interest through the year have enabled us to continue caring for the worlds’ poorest children.

We thank them all for their donations and grants to us in 2023 including:

The Bryan Guinness Charitable Trust C&K Sommer Trust Cork of Ashbourne Trust

Daughters of the Heart of Mary Diocese of Wrexham Ecton Trust

Forest Hill Charitable Trust Gordillo Coleridge Charitable Trust Hall Hunter Foundation

ShareGift

The Coles Medlock Foundation The Northern Trust The Tula Trust

UBS UK Donor Advised Foundation Van Mesdag Fund

William Jerome Charitable Trust

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The impact of our work

THE STORY OF DIANA

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MEXICO
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We collect a range of data about the outputs and outcomes of our work but the stories we collect from the children who graduate from our schools are the greatest indicator of the impact of our work and your support.

When these poorest children graduate from the SoM schools equipped with the skills they need to find stable employment they are able to help their families and communities and lift them out of poverty. These groups of alumni are a powerful force for change, they lift up generations of lives and they multiply the impact of your support many times over.

Diana was born in Mexico City in 1996. She was raised by a single mother and spent time living with her mother in her grandmother’s home. Her mother then remarried and had two more children. Both her parents worked very hard in a local flea market to care for the family but despite this there was little money and the children often went hungry. Diana didn’t have much chance to go to school as she needed to care for her siblings whilst her mother worked, in fact her education had all but stopped when she met the Sisters of Mary.

The Sisters accepted her on the spot and she says: “ this marked the beginning of a new chapter of ” my life. I arrived in Girlstown in July/August 2008 .

Learning to seize and be grateful for every day, Diana made friends with girls from many states and had the opportunity to learn more about other cultures in Mexico. Her favourite subjects were English, Maths and drawing and she loved the food!

“the school was a very happy place, it was a wonderful place. Father Al built a beautiful place, I love the Sisters I love the food, I love the friends. This place, all the activities nurtures desires”

She finished school in 2013 and became a sales and customer services agent at Air Mexico then Interjet at the same time as studying for a degree in Graphic Design. In 2022, after several years running her own graphic design business she founded her first venture, Albbus, a collaboration with her husband who is a computer engineer. They joined up to establish a company, his expertise is in software and complemented her digital product design. They also have two children aged 8 and 6.

With the skills she learnt at school her life was transformed and now she has been able to help her mother ee with healthcare and her siblings with financial support for schooling. She also sometimes helps her — 2 grandparents and of course she continues = to visit the sisters and provide support for the new children — in their care, paying \ back her original opportunity many times over. Diana with Sr Margarita \ \ , I |

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OUR IMPACT DATA

In addition to the stories of the children that we collate and the lives that we follow, in 2023 we were also delighted to be able to report further results from a survey carried out amongst the graduates and alumni of the schools across the world in the Philippines, Guatemala, Mexico, Honduras and Brazil.

This new research which provides valuable insights on the outcomes of our work and the wider impact of the mission shows the fundamental difference our

supporters are making to poverty relief in these regions. As last year, we focus on the employment of the children who leave our schools as a key priority of our activity. Stable fairly paid employment allows the children to build a dignified productive existence where they can help themselves and their families.

The largest graduate data set was received from alumni of the Philippine programme where there are the highest number of graduates.

89% of the graduates who responded on this revealed that they were fully employed by 12 months after leaving school. The majority of these young graduates, 67%, were employed less than 3 months after leaving the schools and many had job offers prior to leaving. We had more data in 2023 from the other schools and in Guatemala, Honduras, Mexico and Brazil similar trends are seen.

Q: HOW LONG DID IT TAKE YOU TO FIND YOUR FIRST JOB AFTER GRADUATING FROM THE SISTERS OF MARY SCHOOL PHILIPPINES?

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11%
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----- Start of picture text -----
MORE THAN
A YEAR
10%
6 MONTHS
TO ONE
YEAR
67% 12%
LESS THAN 3-6
3 MONTHS MONTHS
----- End of picture text -----

----- Start of picture text -----
Q: HOW LONG DID IT TAKE YOU TO FIND YOUR FIRST JOB
AFTER GRADUATING FROM THE SISTERS OF MARY
SCHOOL GUATEMALA?
16%
MORE THAN
A YEAR
13%
6 MONTHS
TO ONE
YEAR
20%
51%
3-6
LESS THAN
MONTHS
3 MONTHS
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In Guatemala 84% of respondents were in employment within a year and 51% of these within 3 months.

Q: HOW LONG DID IT TAKE YOU TO FIND YOUR FIRST JOB AFTER GRADUATING FROM THE SISTERS OF MARY SCHOOL HONDURAS

14%

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MORE THAN
A YEAR
14%
6 MONTHS
TO ONE
YEAR
26%
46%
3-6
LESS
MONTHS
THAN 3
MONTHS
----- End of picture text -----

Q: HOW LONG DID IT TAKE YOU TO FIND YOUR FIRST JOB AFTER GRADUATING FROM THE SISTERS OF MARY SCHOOL MEXICO

----- Start of picture text -----
12%
MORE THAN
A YEAR
14%
6 MONTHS
TO ONE
YEAR
54% 20%
LESS THAN 3-6
3 MONTHS MONTHS
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In Honduras 86% of the graduates were employed within a year with 46% taking less than 3 months

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In Mexico, 88% of the children who graduated were in work
within 12 months, 54% within 3 months.
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OUR IMPACT DATA

When our children graduate from school able to find stable employment they are active in supporting their extended families. This lifts many generations out of poverty and multiplies the impact of your support many times over.

----- Start of picture text -----
Q: HOW MANY MEMBERS OF YOUR FAMILY, WHO ARE Q: HOW MANY MEMBERS OF YOUR FAMILY, WHO ARE
NOT YOUR SPOUSE OR CHILDREN, DO YOU HELP NOT YOUR SPOUSE OR CHILDREN, DO YOU HELP
FINANCIALLY - PHILIPPINES?
FINANCIALLY - MEXICO?
2%
5% 4% 5 MEMBERS
7% 5 MEMBERS 4 MEMBERS
4 MEMBERS 2%
12%
MORE THAN 5
MORE THAN 5
MEMBERS
MEMBERS 9%
13%
3 MEMBERS
3 MEMBERS
32%
30% 0 MEMBERS
0 MEMBERS 25%
20% 2 MEMBERS
2 MEMBERS 13%
1 MEMBERS 25%
1 MEMBERS
|
70% of these employed Philippine graduates are helping at least one
member of their extended family with living costs, education, access 68% of those employed in Mexico are helping at least one member of
to healthcare and housing being the highest priorities for help needed their extended family with living costs, housing and education the key
within the families, with 12% helping more than 5 members. areas of support.
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Gathering this data to measure our impact ensures that we are moving in the right direction. It shows that the outcome of educating a child is an improvement in the lives of families and communities. When children have the skills necessary for employment and secure stable jobs it means their families can afford proper housing, access to nutritious food, healthcare, education and a life which is profoundly changed for the better, permanently.

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Summary of future aims, objectives and activities

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Our Plans for 2024 and beyond

Our annual planning and objectives underpin the mission of the Sisters of Mary programmes. In 2024 we will continue our focus maintaining and increasing the funds we provide to the Sisters so they can care for more children living in poverty worldwide. By building the profile of the charity and growing the momentum of fundraising across a variety of income streams, we will continue our focus on raising unrestricted income to be used across the range of needs of the children at the schools. Flexible support is crucial in their care as the cost of essentials like food is rising.

SUPPORTING WITH THE ESSENTIAL EVERYDAY COSTS OF CARE

Our priorities in 2024 are to support the sisters in caring for the children currently in their schools and to help them welcome new children in need. We will particularly focus on provision for essentials like food, medicines, school supplies, teaching equipment and salaries. 2023 has seen a rise in the cost of food worldwide. Some essential components of the children’s diet have risen by nearly 30% and the impact of this is keenly felt in all the schools where an average of 57,000 meals per day must be provided to the malnourished children who join us. Hungry children can’t learn. We commit to providing every child with three balanced meals daily to help them grow and thrive.

PREPARING THE CHILDREN FOR EMPLOYMENT

Like last year, our focus in 2024 will be help for the Sisters to progress the children towards employment.. We will raise funding for the specific academic and vocational training tools and equipment that are needed by the children to learn the new skills

required by local employers. Across the 13 secondary schools, courses continue to evolve in response to industry needs. Up to date tools and equipment for training in digital skills, cyber security, caregiving, agriculture, robotics, computer programming, solar panel installation etc are all desperately needed across all the programmes.

SUSTAINABILITY

Some of the 13 schools operated by the Sisters of Mary are now nearly 40 years old and require urgent repair and maintenance. In addition, operating costs at the school, particularly utilities, continue to be an enormous cost burden. The Sisters have already started a programme of sustainable practices at the school aimed at maintaining the schools, lowering operating costs, optimising budgets and protecting the planet. We will support them with this including help with their new agri-farming initiatives at some of the bigger schools like Adlas.

28 WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT |

Key Objectives to deliver this strategy

FUNDRAISING

In 2024 we will continue our strategy to diversify our funding model. 2023 saw a consistent performance in direct mail and 2024 will improve on this performance as measured against our efficiency KPIs and against prior year but the year will show additional progress in Trusts & Foundations, corporates and engagement with other organisations. This will include new relationships established via existing donors to boost fundraising particularly around churches and schools.

We will continue to steward our donors well and ensure they have the opportunity to maintain regular engagement with us particularly via events with the Sisters themselves and visits to the programmes overseas. This will help with the transparency of our work and demonstrating the impact of their support.

Digital fundraising will form a bigger part of our activities in 2024. We continue to build our experience in this area and utilise digital skills to build the profile of the charity, access new audiences and improve digital income.

IMPACT MEASUREMENT

In 2024 we will continue to invest in the measurement of our work to quantify the impact delivered by our supporters on the poverty relief of the children and their families.

In their community and school work the Sisters witness first-hand the effects of extreme poverty on families in the most deprived regions and gather significant real time data which sheds light on the issues faced by their children. This timely data provides unique insights into the changing poverty levels over time, highlighting the crucial need for our work and the impact of our interventions.

The Sisters are generous in sharing this data and committed to helping us with this impact measurement objective. Stories directly from the children and graduates in particular help us to gauge the change in their lives, post school - the outputs and outcomes of our work. When each child leaves school able to find work, live independently and support generations of their family members with access to life saving services and a better poverty free life we record this broader, longer term impact and the multiplier effect of the education.

Data capture within the alumni group is also improving and the regular alumni surveys now deliver a vast amount of data and help us analyse their lives post school, demonstrating the impact made by our funders’ investment in our work. This impact measurement objective is vital for our donors’ understanding of our work and their contribution and is essential for future fundraising and therefore continues to be a focus for 2024.

GOOD GOVERNANCE

During 2023 we achieved a great deal of progress with the growth of the board and change in structure to ensure greater compliance with the charity governance code. We now enter 2024 with a proactive, diverse and experienced board who are generous with their time and dedicated to the support of the charity.

During 2024 we will build on this progress and ensure that each board member is able to utilise their talents to grow the charity. Our board now has an array of talents which contribute to our understanding of the lives of the children at school, the impact of our activities, how to measure the data we gather, optimise our finances and fundraise for the future and these skills will help us with our growth ambitions through 2024.

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Financial Review for 2023

aig | eS BNO Oe FLY Our student Joriz with his mother and grandmother in the Philippines. ; “pea Fae Se SE 3 ee Ss

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Financial Information for the year 2023 is set out in the attached statement of financial activities. Total Income for the year was £2,365,435.

2023 was another challenging year for our fundraising due to the economic difficulties experienced by our donors. Their cost of living challenges resulted in a reduced propensity to donate although we remain so touched by all the support we received and the many sacrifices made by our loyal friends who continued to give generously, particularly to the special seasonal appeals – through the year (Easter, Christmas and Birthday).

Despite this, we were pleased to conclude the year ahead of our target by 15% and ahead of 2022 by 7.3%.

INCOME

37% of our income in 2023 was generated by the loyal support of our special Guardian Angel donors who give regularly by direct debit or standing order. These Guardian Angels are invaluable to our work supporting the Sisters of Mary as they allow us to give a regular flow of mainly unrestricted income to the schools to fund the essential recurring costs of the children like food, clothing, shoes, health and hygiene supplies and educational equipment and supplies. Without these gifts our work would not be possible.

EXPENDITURE

Expenditure in 2023 was £2,238,877, a 9.64% decrease on the prior year. There was a very slight decrease in the grants to the Sisters but savings across a number of cost centres in fundraising including response handling. By utilising our existing resources differently and managing overheads we are pleased to record these savings, given the rise in the costs of some of our supplier contracts during the year.

Managing these expenditure levels, costs and overheads continues to be a priority for 2024.

During the year we maintained our reserves at the same level as previously in line with our active assessment of the fundraising environment. The reserves level represents six months expenses (not including our grant payments to the Sisters of Mary) and we consider the figure represents an appropriate approach to the risk we face.

27% of our income was generated by individual gifts via direct mail and digital. We are so blessed to have this support from our donors, many of whom undertook to support us repeatedly during the year, and also to those donors who confirmed their tax payer status so that we were able to claim gift aid on their donations. We recovered £271,793 in gift aid during the year.

Trusts and Foundation income represented 1% of the year’s total, a small but consistent presence in our portfolio and we are so grateful for every repeat gift from existing partners and every new relationship made. We were delighted to be supported again by the Coles Medlock Foundation as our match funder in the Big Give digital appeal at Christmas. This highly effective fundraising appeal is a great way for us to fundraise for the larger capital items needed by the schools and to raise awareness of our work with a new audience.

Legacy and in memory giving increased last year and formed 23% of our income. We feel so privileged to receive these final gifts which are the result of a long lasting interest in our work and make such a transformative difference to the lives of the children in our care. As in previous years we continued to prioritise fundraising for unrestricted income to ensure that our grants could be used across the variety of needs of the children. 96.5% of our income was unrestricted and we are grateful to our donors for giving us their gifts in this way.

RISK MANAGEMENT

Through 2023 the WVC board took a proactive approach to the risks facing the charity through regular review at each board meeting and at the fortnightly sub-committee meetings. The charity continues to determine the risks that relate to its activity by scenario scanning, training, testing and observation to identify those which are pertinent to our activity, to recognise and record the changes in those risks and where significant changes occur these risks are notified to the board.

We classify risk into the following categories Government & Management, Environment & External, Finance, Operations & Compliance. The current risk register identifies 22 risks across these categories, the major risks are as follows, including our management strategies for each:

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RISK MANAGEMENT

RISK RISK MANAGEMENT STRATEGY
Operational risk This continues to be considered to be one of the most signifcant risks facing the charity which would
IT Security/ impact our donor data and fnances. This is where investment has been concentrated to
Data Protection manage and mitigate the potential threats as follows:
Cyber Security Fully managed technology network with ISO accredited support company to monitor
security of our IT network, systems and applications.
MFA for remote access to network plus all other platforms.
Robust backup protocol for network data and donor CRM for business continuity and
protection of data which is tested monthly.
Cyber insurance and scanning of network by security agency Security Metrics for
compliance. Support and scanning and early warning notifcation of threats from NCSC.
Training for staff on all risks relating to cyber security and data protection and new
potential threats, this includes phishing training.
Charity policies which are understood and enforced which cover IT security, data
protection and best practice in data handling.
Operational Risk The charity continue to maintain a small team of 5 staff who cover the main functions of our business.
Absence/ loss of Absences could affect operations and this risk is minimised by:
key staff Documenting of processes and comprehensive guidelines for performing essential activities.
Cross training of staff on key functions.
Succession planning is ongoing for senior management role.
Financial Risk Our fundraising strategy continues to build towards a diverse array of income streams to minimize
Fundraising - lack of the risk associated with over-reliance on any single source. This approach includes:
diversity in funding,
or decline in income		 Planning & investing in new fundraising methods, skills and capabilities to expand our
reach to new individual and organisational sources, corporates, and trusts & foundations.
Expanding our online giving to reach new donors.
Specifc acquisition activity to engage new audiences.
Prompt stewardship to help reduce attrition, maintain engagement and encourage
repeat giving.
Financial Risk Individual giving at WVC includes a number of cash and cheque donations and so special attention
Fraud has been given to the risks of fraud within all of our activities, including the whole risk analysis
conducted during the year. Our management of this risk includes:
Segregation of fnancial activities relating to handling income and expenditure.
Finance handbook, guidelines and policy on money handling, recording and oversight of
cash handling.
Regular reconciliation to accounts and testing of accounting treatment of fnance items.
Staff training on recognising fraud and how to safely report suspected instances of fraud
including cyber and physical, supplier invoice fraud, CEO impersonation fraud, legacy fraud etc.
Whistleblowing and staff protection policies for the above.
Operational Risk WVC outsources some of its key services to a small number of trusted suppliers, however rising costs
Supplier dependence of suppliers and supplier failure remains a risk to our operations which is managed as follows:
Identifying potential alternative suppliers and testing.
Sharing services with other charities and collaboration on certain functions.
Increasing in-house abilities so function can be brought in if cost effective to do so.
Macro Political and
Economic instability		 Economic Instability and political uncertainty remains a risk factor for WVC. It particularly affects our
donor contributions - as the economy turned downwards over the last two years, individual
giving declined. Rising infation also affects our cost of operations with increased cost of suppliers
and services. This is not just for WVC but also for the SoM programmes globally and so we are
funding more for the Sisters with less. At WVC we address these risks by:
Diversifying income which is helping us to remain resilient by seeking funding from
multiple sources.
Maintaining our reserves to ensure operations continue without immediate funding pressures.
Remaining fexible with our approach to fundraising so we can adapt more effectively to
changing political and economic conditions.
Maintaining our communication with donors helps us to maintain trust and support, even during
these challenging times.

32 WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT SE as a ae

GOING CONCERN

The Trustees have completed an assessment of the going concern status of the charity. They have reviewed the income and expenditure figures for 2023, the forecast for 2024 and going forward, one year from signing of accounts. Through the provision of regular management accounts and cash flow reports to the board they continue to monitor the level of income, unrestricted reserves and the changing risks facing the charity. These are also monitored on a fortnightly basis by the operating and finance committee of the full board.

From this ongoing assessment, they conclude that there are no material uncertainties relating to events or conditions that would cast doubt on the ability of the charity to continue as a going concern.

FUNDING SOURCES

In 2023 we continued to make progress with diversifying our income raising across new sources of funding. This included Trusts & Foundations, Corporates, new organisations including churches and schools and new digitally engaged donors. We maintained a consistent performance with individual giving via direct mail, regular gifts from our Guardian Angel donors and a slightly improved performance from Gifts in Wills. We continued to take advantage of the gift aid scheme where our donors confirmed to us their eligibility.

Some of our individual giving donors have been adversely affected by the cost of living challenges in the UK so this has slightly depressed responses for direct mail on certain appeals but the birthday, Easter and Christmas appeals were again highlights in the year where response rates for certain segments exceeded expectations.

Digital fundraising is gaining in momentum as our skills increase and with the new content provided from the schools this was buoyant during the year and helps to raise the profile of the charity and new income. The matched Big Give appeal for new books for the girls in Brasilia didn’t quite make its target this year but was still a very worthwhile endeavour.

Gifts in Wills increased in 2023 and remain a significant part of our funding portfolio. We were particularly touched during the year to be remembered as significant residuary beneficiaries by some of our donors and to finalise some very long lasting legacy administrations. We were also very blessed to learn of the legacy pledges made by many of our current donors. Such a final gift, whatever the size, is an enormous privilege for us to receive and will make a lasting difference to the lives of the poor boys and girls in our care.

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FUNDRAISING PRACTICE

The relationship with our supporters and the trust they place in us to effectively steward their gift for the care of the children is central to our work. We value every single gift and remain constantly humbled by the sacrifice our donors make to support our work.

Our charity values of compassion, dedication and integrity underpin our fundraising and it is our priority to minimise fundraising costs and ensure the maximum amount of our fundraising income is distributed quickly and safely to the Sisters’ programmes overseas for the immediate use at the schools.

Thanks to the efficient expenditure reporting from the Sisters of Mary on our grant distributions, we are able to provide transparent accounting on our grant funding, to show our donors how their funds are used and the variety of ways in which they are supporting this poverty relief work.

We focus on:

Enquiries to the charity are actioned within 48 working hours. All feedback received from donors is promptly acknowledged and appreciated as it helps us to progress and improve our fundraising.

- www.worldvillages.org.uk/privacy policy

Our fundraising is designed in-house with content provided and authored by our beneficiaries. A song is always sweeter from the author’s mouth and our children are the best authors of their lives and experiences. External agencies help us to produce and post the direct mail appeals and to bank some of the responses. We manage these relationships closely and monitor for quality and accuracy.

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i ) 4
Careers guidance in Guadalajara, Mexico
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RESERVES

The charity’s reserves policy is key to our risk management approach. When planning our charity activity and grant giving to the Sisters’ programmes we review the level of reserves that need to be held and strike a balance between utilising our funds promptly to support the children and the need to retain sufficient surplus to meet commitments per our reserves policy.

The reserves policy is based on the level of core costs, risks that we face and the quality of income for its contribution to surplus.

In 2023 the majority of our income continued to be unrestricted (96.5%) and thus the risk profile remained largely the same as for the prior year. The level of reserves is calculated on six months expenditure (excluding grants to the Sisters of Mary) and this is £305,525.

The reserves are retained as follows: £225,000 held in liquid assets which can be accessed within 35 days and the remainder held on the balance sheet as a legacy debtor.

At 31 December 2023 the total reserves figure was £563,949 of which £562,695 is represented by unrestricted reserves and £1,254 is represented by restricted reserves. Free reserves at year end, taking into account assets that are not readily available were £89,718 – for the purposes of this calculation both fixed assets and accrued legacy income are not deemed readily available.

The board note that the free reserve total at 31 December 2023 is significantly below the level stated by the policy, however post year end several legacy amounts have been realised, increasing the free reserves.

STRUCTURE, GOVERNANCE & MANAGEMENT

ORGANISATIONAL STRUCTURE

World Villages for Children was incorporated on 23rd October 1996. Our governing document is the Memorandum and Articles of Association which was revised in September 2017.

World Villages for Children is governed by the Board of Trustees. The Board meets three to four times a year in addition to meetings of the Operations and Finance Sub-Committee which meets fortnightly. The Board is responsible for setting the strategic planning for the charity as well as its overall governance, including signing the Trustees’ Annual Report. The Board oversees WVC’s management, with day to day responsibility delegated to Nicola Lawson as UK Manager who, with the authority of the Charity Commission, also serves as a trustee on the board.

The Board define the objectives which are the focus of our activities. They manage the risk to the charity, monitor performance towards our objectives and scrutinise the monthly grant giving to the Sisters of Mary programmes. They ensure reporting and compliance with the regulatory standards for charities and companies and that all legal standards are adhered to, including maintenance of a conflict of interest policy.

GRANT MAKING AND REPORTING ON EXPENDITURE

WVC sends its grants to the Sisters of Mary programmes on a monthly basis based on budget and the needs of the children in the schools. The grant expenditure process is underpinned by an overarching Deed of Grant making policy which also defines how reporting on the expenditure is to be handled. The expenditure reports sent by the Sisters of Mary are monitored closely by the UK Manager and board to ensure that funds are spent as agreed, in-line with our charitable objectives and particularly where restricted funds are sent.

CHARITY GOVERNANCE CODE

WVC continues to be indebted to its dedicated board of trustees for effective governance of the charity. In 2016 a Governance review was conducted which provided guidance on recruitment of UK domiciled trustees. We have followed this guidance on composition of the board as well as the Charity Code of Governance to ensure that we are building a strong board which meets the needs of the charity and serves it well in the delivery of its mission.

As we enter 2024 we have a strong board built across a variety of skills, gender, age and experience. Our board act honestly and with the interests of the charity at the centre of everything they do. They give their time generously and provide close attention to their responsibly in governance.

Our board sub-committee which focuses on Operations and Finance continues to closely review all the issues relating to the running of the charity and particularly risk and financial performance.

We also remain grateful to the programme alumni who participate on our advisory committee and provide us with new skills and insight on the detailed elements of the Sisters of Mary programme and contribute so greatly to our impact measurement work.

TRUSTEE APPOINTMENT, INDUCTION & TRAINING

Trustees are recruited to the board for their experience, skills and knowledge as well as their understanding of education and its part in poverty relief and the values on which our charity is centred.

Following interview by the board, new Trustees are appointed by resolution and have a period of induction to familiarise themselves with the legal requirements of their role – eg particularly the CC3 responsibilities. They also learn about our governance framework, our charity objects and the detailed work of the Sisters of Mary at the schools. It is mandatory for all our trustees to be DBS checked and to be fully compliant with our safeguarding policy.

www.worldvillages.org.uk/what-we-do/safeguarding/

All trustees, especially those who are new to the board are encouraged to travel to the schools and meet the children and alumni unless they have good prior experience, such as Fr Fretch, who is a graduate of the Adlas schools programme. Those not wishing to travel maintain close contact with the programmes through Zoom meetings, in person meeting with alumni and the Sisters when they travel to the UK.

oe, x[PX] ' WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT ‘Sia Serk wee | | ~} 35* - The charity’s reserve policy forms an essential part } arc Sak | 3 care,> | . ry. thea . Mary. This total is £305,525. ih - Z "es ’ of our risk management approach. When planning our fundraising activity and grant giving we . az The reserves continued to be retained as follows: consider the level of reserves held so we can strike minimum of £225, 218 held in liquid assets which can ' pas .) a balance between utilising our funds promptly in be accessed within 95 days and the remainder held support for the Sisters of Mary programmes and on the balance sheet as a legacy debtor. Dp agli pee Akg at nearly 20,000 children in our care each year and the Ee coe ihh ; &“ 4 $i - : a a © R= need for prudent management of our commitments, At 31 December 2021, the total reserves figure P a - LP ae = as well as providing for contingencies. was £711,822 of which £704,927 is represented by unrestricted reserves and £6,895 is represented by The reserves policy agreed annually by the trustees restricted reserves. Free reserves at year end, taking is based on level of core costs, specific risk around into account assets that are not readily available, : =, each element of income and the quality of income eee, ~~ were £244,241 – for the purposes of this calculation wy Vs >] for its contribution to surplus. us * ,4 ' if Pr7 AY7, ”A : eePd both fixed assets and accrued legacy income are cei Noa a = :- 3"a oaz azPr +>Pres3 : not deemed readily available.

SAFEGUARDING

WVC maintains a detailed safeguarding policy which covers its own UK based activities and monitors the activities at the SoM schools worldwide. We do not tolerate abuse, maltreatment or neglect of any person. The charity, its trustees, staff and all involved in its operation are committed to protecting and fulfilling our duty of care to those we work with in the UK and the children in our care overseas.

Via our safeguarding policy and processes we intend to keep safe all our staff, volunteers and trustees and we train and update to support awareness and capacity in safeguarding in the UK. We also have regular oversight of safeguarding in action at the Sisters of Mary programmes worldwide and their processes in place to safeguard the children in their care. Together these activities ensure a safe and happy environment for our staff, volunteers, stakeholders and all our vulnerable beneficiaries and overseas at all times.

RELATIONSHIPS WITH RELATED (CONNECTED) PARTIES

Throughout 2023 WVC continued to work closely with the family of independent affiliated charities based in the EU and US. Income from these charities together sustains the Sisters of Mary programmes and the 20,879 children in school and day care places with them in 2023.

These include Wereld Doorpen voor Kinderen in Belgium and the Netherlands, Villages du Monde pour Enfants in France, Asian Relief (trading as World Villages for Children) in the US and Die Schwestern Maria in Germany. All these charities share similar aims as World Villages for Children for the relief of poverty through education but they are separate, independent legal entities and there is no one controlling party.

ARRANGEMENTS FOR SETTING PAY AND REMUNERATION OF KEY MANAGEMENT PERSONNEL

WVC aims to reward its employees fairly and ensure sufficient skilled staffing to achieve our objectives, in keeping with our status as a charity.

Pay rates are benchmarked against sector averages and take into account the specifics of job role, responsibility, experience and quality of

performance. As with all staff remuneration, WVC reviews and benchmarks management remuneration with sector standards and in relation to other staff salaries. Trustees are not remunerated with the exception of the UK Manager who maintains a salary for her management role whilst also holding the role of trustee as requested by the board and approved the Charity Commission in 2016.

PUBLIC BENEFIT

In setting the objectives for the charity and planning its activities, the Board has given careful consideration to the Charity Commission’s guidance on the public benefit requirement under the Charities Act 2011.

The humanitarian poverty relief programmes that we fund support those children in greatest need and no charges are made for any care provided, therefore the board considers that the charity meets the following four important principles of the public benefit requirements in its work:

Our work provides children with a lifesaving education and a route out of poverty. When they have the chance of a place at one of our schools their lives are changed forever – they find work, become independent, able to help themselves and their families onto a better, poverty free future but we cannot help these children without you. By supporting our appeals, becoming a Guardian Angel, supporting us online, giving a grant or leaving a gift in your will you can transform the life of a child and their family – permanently. www.worldvillages.org.uk

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR 2023 TRUSTEES’ REPORT

36

Statement of Trustees’ Responsibilities

The Trustees (who are also directors of World Villages for Children for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the provisions of the charity’s constitution.

They 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.

In so far as the trustees are aware:

AUDITORS

Kreston Reeves LLP have indicated their willingness to continue in office and are deemed to be reappointed in accordance with section 487 (2) of the Companies Act 2006.

SMALL COMPANIES EXEMPTION

This report has been prepared taking advantage of the small companies’ exemptions in the Companies Act 2006.

Signed on behalf of the Trustees

N Lawson Trustee

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT ! !

37 o

Independent Auditor’s Report to the Members of World Villages for Children

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

38

OPINION

We have audited the financial statements of World Villages for Children (the ‘Charity’) for the year ended 31 December 2023, which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, Analysis of Net Debt and the related notes, 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 Financial Reporting Standard 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:

give a true and fair view of the state of the Charity’s affairs as at 31 December 2023 and of the charity’s incoming resources for the year then ended;

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 Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’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 Charity’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 Trustees 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 Auditors’ Report thereon. The Trustees 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.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations require us to report you, if in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees’ Responsibilities Statement set out on page 36, the Trustees 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 Charity’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 Charity 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 Auditors’ 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.

Irregularities, including fraud, are instances of noncompliance 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:

39

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charity and sector, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery, GDPR legislation and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) 2019, the Companies Act 2006, the Charities Act 2011 and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates specifically in recognising the accrued legacies.

Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment 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.

USE OF OUR REPORT

This report is made solely to the Charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations. Our audit work has been undertaken so that we might state to the Charity’s Trustees those matters we are required to state to them in an Auditors’ 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 Charity and its Trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Kreston Reeves LLP Partner

For and on behalf of Kreston Reeves LLP Statutory Auditor Chartered Accountants

Chichester

Date 12 August 2024

Kreston Reeves LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

40

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Restricted Total Funds Total Funds
Funds Funds
2023 2023 2023 2022
restated
Notes £ £ £ £
INCOME FROM
Donations and legacies
Donations andgrants 3 1,727,944 82,343 1,810,287 1,994,217
Legacies 3 551,529 - 551,529 208,091
Interest income 3,619 - 3,619 1,166
Total 2,283,092 82,343 2,365,435 2,203,474
EXPENDITURE ON
Raising Funds 4 & 5 365,139 - 365,139 379,150
Charitable Activities 4 & 6 1,767,348 106,390 1,873,738 2,098,755
Total 2,132,487 106,390 2,238,877 2,477,905
Net (Expenditure)/ Income 150,605 (24,047) 126,558 (274,431)
Net movement in funds 150,605 (24,047) 126,558 (274,431)
Total Funds Brought Forward 12 & 13 412,090 25,301 437,391 711,822
TOTAL FUNDS CARRIED FORWARD 12 & 13 562,695 1,254 563,949 437,391

During the current financial year the salary allocation model has been amended to more accurately reflect the time spent on activities, and this has retrospectively been applied to the prior year figures adjusting the split between expenditure on raising funds and charitable activities as shown in note 4. Total expenditure remains unchanged.

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

All incoming resources and resources expended derive from continuing operations.

The notes on the pages 43 to 51 form a part of these financial statements.

:

:

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WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

BALANCE SHEET AS AT 31 DECEMBER 2023

2023 2022
Notes £ £ £ £
FIXED ASSETS
Intangible fixed assets 9 14,453 18,067
Tangible fixed assets 8 42,197 50,800
56,650 68,867
CURRENT ASSETS
Stock 12,643 13,743
Debtors 10 487,258 190,376
Cash at bank and in hand 237,821 396,070
737,722 600,189
Creditors: Amounts falling
due within one year 11 (230,423) (231,665)
Net Current Assets 507,299 368,524
Net Assets 563,949 437,391
The funds of the charity
Restricted funds 12 & 13 1,254 25,301
Unrestricted funds 12 & 13 562,695 412,090
Total Funds 563,949 437,391

For the year ending 31 December 2023 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006. However an audit is required under the Charities Act 2011. The Trustees acknowledge their responsibility for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of financial statements. These accounts have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The Financial Statements were approved and authorised for distribution by the Board of Trustees on …………………………………….. and signed on their behalf by: Z na Arye s¥ 2024

…………………………………………………….

Nicola Lawson Trustee

Company Registration No. 3267479

The notes on the accompanying pages 43 to 51 form part of these financial statements.

42

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
£ £
CASH FLOWS FROM OPERATING ACTIVITIES
Net (Expenditure)/ income for the year 126,558 (274,431)
Adjustments for:
Depreciation and amortisation of fxed assets 12,217 12,860
Interest received (3,619) (1,166)
Decrease / (increase) in debtors (296,882) 257,811
(Decrease) / increase in creditor due within one year (1,242) 13,017
(Decrease) / increase in creditors due within more than one year - (6,719)
Decrease / (increase) in Stock 1,100 (3,390)
Net cash from by operating activities (161,868) (2,018)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 3,619 1,166
Purchase of fxed assets - (7,121)
Net cash from investing activities 3,619 (5,955)
Change in cash and cash equivalents in the year (158,249) (7,973)
Cash and cash equivalents at the start of the year 396,070 404,043
Cash and cash equivalents at end of the ear 237,821 396,070

The notes on the pages 43 to 51 form a part of these financial statements.

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WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. ACCOUNTING POLICIES

Status of the charity

World Villages for Children is registered as a company limited by guarantee in England and Wales (company number 03267479) and its registered office is Kings Building, 16 Smith Square, London, SW1P 3HQ. World Villages for Children is a Public Benefit Entity registered with the Charity Commission (Charity number 1058973).

Basis of Preparation of the Financial Statements

The financial statements have been prepared under the historical cost convention in accordance with the Financial Report Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and 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 (FRS 102) second edition - effective 1 January 2019.

The functional currency of the charity is Pound Sterling. Monetary amounts in these financial statements are rounded to the nearest pound.

Going Concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts. The Trustees of the Charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the Charity will have sufficient resources to meet its liabilities as they fall due.

The Trustees have considered a number of factors when forming their conclusion as to whether the use of the going concern basis is appropriate. They take into account the budget forecast for up to December 2025, cash flow forecast to December 2025 and the review of risks facing the charity, particularly the ongoing cost of living crisis. Key current risk is the decline in income due to economic slowdown resulting from the pandemic and the ongoing conflict in the Ukraine.

Our fundraising planning addresses this risk and since year end fundraising has continued consistently, overseen fortnightly by the board sub-committee to monitor performance and liquidity. Expenditures and operating efficiency continue to be closely scrutinised by management and the whole board quarterly with forecasts adjusted for different outcomes to assess liquidity and going concern status.

Our forward planning beyond 2025 takes into consideration the changing fundraising context and the economic climate and its potential impact on the various sources of income and planned expenditure.

The Charity’s monthly financial statements, along with a cash flow forecast and scenario planning, show that the Charity has sufficient funds and liquidity and having regard to all of the above it is appropriate to adopt the going concern basis of accounting in preparing the financial statements.

Legacies

Legacies are recognised in the statement of financial activities when there is entitlement, adequate probability and reliability of receipt and their value can be accurately measured. For both pecuniary and residuary legacies this is when probate has been granted and a reasonable estimate calculated for this income.

Donations

Donations are accounted for when conditions for their receipt are met, it is probable that the amounts will be received and the amount receivable can be reliably estimated.

Critical accounting estimates and areas of judgement

The key sources of uncertainty in our estimations that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are summarised below:

Residuary legacies

The charity recognises residuary legacies once probate has been granted, which therefore requires an estimation of the amount receivable.

Pensions

Pension contributions are made for all employees and recorded as they fall due. These are defined contributions paid to approved private pension schemes for each employee.

Taxation

World Villages for Children is a registered charity and all of its income falls within the exemptions under part 11 of the Corporation Tax Act 2010.

Gift Aid Repayments

Income from gift aid repayment claims is only included for claims which have been submitted for tax periods ending on or before the year end and when the receipt of this income is certain.

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

44

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Expenditure

Expenditure is recognised when a liability is incurred.

Grant payments are recognised when a constructive obligation arises that results in the payment being required.

Raising funds are those costs incurred in attracting voluntary income.

The costs of appeals are matched where possible with the income generated. The accounting effect of this policy means that, at the balance sheet date, a proportion of the cost of the December mailing is carried forward as a prepayment as part of the response anticipated in January.

Support costs including central functions and costs primarily associated with constitution and statutory requirements have been allocated to activity cost categories on a basis consistent with the use of resources, e.g. allocating staff cost by work done, office costs by floor area, return mail processing and finance costs by work done. The staff costs which relate specifically to fundraising for the charity have been apportioned within support costs on the basis of time calculated as spent on this activity.

Tangible Fixed Assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Leasehold improvements over the term of the lease

Plant and equipment 20% on cost

All assets are capitalised at a cost.

Intangible Fixed Assets

Amortisation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Website development and software 20% on cost

All assets are capitalised at cost

Fund accounting

Unrestricted funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or donations subject to conditions imposed by donors.

Designated funds comprise funds set aside out of unrestricted funds for a specific purpose.

Leasing Commitments

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

Foreign currency transactions

Transactions denominated in a foreign currency are translated into sterling at the rates of exchange ruling at the date of the transaction or at an average rate for the relevant month where that provides a close approximation.

Stock

The stock held is used for the direct marketing mailings, all the stock is held at the printers and valued at cost price.

Other Financial Instruments

i. Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short-term deposits with a maturity date of three months or less. As at 31st December 2023 total cash held was £237,821 (2022: £396,070).

ii. Debtors and Creditors

Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest. Balances for 2022 and 2023 are set out in notes 10 to 12.

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

45

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

2. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES 2. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted Restricted Total
Funds 2022 Funds 2022 Funds 2022
restated restated restated
Notes £ £ £
INCOME FROM DONATIONS AND LEGACIES
Donations and grants 3 1,840,853 153,364 1,994,217
Legacies 3 208,091 - 208,091
Interest income 1,166 - 1,166
Total 2,050,110 153,364 2,203,474
EXPENDITURE ON
Raising Funds 4 & 5 379,150 - 379,150
Charitable activities 4 & 6 1,963,797 134,958 2,098,755
Total 2,342,947 134,958 2,477,905
Net income/(expenditure) (292,837) 18,406 (274,431)
NET MOVEMENT IN FUNDS (292,837) 18,406 (274,431)
Total funds brought forward 12 & 13 704,927 6,895 711,822
TOTAL FUNDS BROUGHT FORWARD 12 & 13 412,090 25,301 437,391
3. INCOME FROM DONATIONS AND LEGACIES
Unrestricted Restricted Total
2023 2023 2023
£ £ £
Donations andgrants 1,727,944 82,343 1,810,287
Legacies and bequests 551,529 - 551,529
Total 2,279,473 82,343 2,361,816
Unrestricted Restricted Total
2022 2022 2022
£ £ £
Donations and grants 1,840,853 153,364 1,994,217
Legacies and bequests 208,091 - 208,091
Total 2,048,944 153,364 2,202,308

46 WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

4. ANALYSIS OF EXPENDITURE 4. ANALYSIS OF EXPENDITURE
Grants to Direct staff Other direct Support Total
Sisters of Mary Costs Costs Costs 2023
£ £ £ £ £
COSTS OF GENERATING FUNDS:
Fundraising and publicity - 111,827 190,337 62,975 365,139
Charitable expenditure 1,500,000 63,399 240,996 69,343 1,873,738
Total charitable activity 1,500,000 63,399 240,996 69,343 1,873,738
Total resources expended 1,500,000 175,226 431,333 132,318 2,238,877
Grants to Direct staff Other direct Support Total
Sisters of Mary Costs Costs Costs 2022
restated restated restated restated
£ £ £ £ £
COSTS OF GENERATING FUNDS:
Fundraising and publicity - 106,722 213,864 58,564 379,150
Charitable expenditure 1,708,000 63,570 263,642 63,543 2,098,755
Total charitable activity 1,708,000 63,570 263,642 63,543 2,098,755
Total resources expended 1,708,000 170,292 477,506 122,107 2,477,905

An analysis of expenditure on raising funds split between restricted and unrestricted funds can be found in note 5. An analysis of expenditure on charitable activities split between restricted and unrestricted funds can be found in note 6.

An analysis of staff costs can be found in note 7.

Support costs consist of two main elements: indirect staff costs and office costs. These costs have been apportioned across the work of the charity on the basis in Note 1 and allocated to each of the charity’s activity as set out in the table below.

During the current financial year the salary allocation model has been amended to more accurately reflect the time spent on activities, and this has retrospectively been applied to the prior year figures adjusting the split between expenditure on raising funds and charitable activities as shown in the table below. Total expenditure remains unchanged.

Indirect
Staff (time)		 Ofce costs
(Area)		 Total
2023
£ £ £
Fundraising and publicity 23,405 39,570 62,975
Charitable activities 13,032 56,311 69,343
Total costs allocated 36,437 95,881 132,318
Indirect
Staff (time)		 Ofce costs
(Area)		 Total
2022
restated restated restated
£ £ £
Fundraising and publicity 23,498 35,066 58,564
Charitable activities 13,082 50,461 63,543
Total costs allocated 36,580 85,527 122,107

47

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Included within expenditure are the following costs

Included within expenditure are the following costs
2023 2022
£ £
Operatingleasepayments 48,840 48,840
Auditors remuneration:
Audit services 19,200 20,880
Accountancy and other professional services 38,279 51,913

5. EXPENDITURE ON RAISING FUNDS

Unrestricted Restricted Total
2023 2023 2023
£ £ £
Direct staff costs 111,827 - 111,827
Other direct costs 190,337 - 190,337
Support costs 62,975 - 62,975
Total 365,139 - 365,139
Unrestricted Restricted Total
2022 2023 2022
restated restated restated
£ £ £
Direct staff costs 106,722 - 106,722
Other direct costs 213,864 - 213,864
Support costs 58,564 - 58,564
Total 379,150 - 379,150

48 WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

6. EXPENDITURE ON CHARITABLE ACTIVITIES

Unrestricted Restricted Total
2023 2023 2023
£ £ £
Grants to Sisters of Mary 1,393,610 106,390 1,500,000
Direct staff costs 63,399 - 63,399
Other direct costs 240,996 - 240,996
Support costs 69,343 - 69,343
Total 1,767,348 106,390 1,873,738
Unrestricted Restricted Total
2022 2022 2022
restated restated restated
£ £ £
Grants to Sisters of Mary 1,573,042 134,958 1,708,000
Direct staff costs 63,570 - 63,570
Other direct costs 263,642 - 263,642
Support costs 63,543 - 63,543
Total 1,963,797 134,958 2,098,755
7. STAFF COSTS
2023 2022
£ £
Wages and salaries 191,882 187,722
Social security costs 15,204 15,813
Pension costs 4,578 3,337
Total 211,664 206,872

The average headcount during the year was 5 persons (2022 – 5).

Total remuneration paid to such key management personnel including trustees (see note 15) amounted to £55,206 (2022: £55,502).

There are no employees earning £60,000 per annum or more (2022: none).

49

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

8. TANGIBLE FIXED ASSETS
Improvements Equipment Total
£ £ £
COST
At 1st January2023 75,556 20,491 96,047
At 31st December 2023 75,556 20,491 96,047
ACCUMULATED DEPRECIATION
At 1st January 2023 27,001 18,246 45,247
Charge for the year 7,556 1,047 8,603
At 31st December 2023 34,557 19,293 53,850
NET BOOK VALUE
At 31st December 2023 40,999 1,198 42,197
At 1st January 2023 48,555 2,245 50,800
The fxed assets are used wholly for the activities of the charitable company.
9. INTANGIBLE FIXED ASSETS
Website Total
development
& software costs		 £
COST
At 1st January 2023 34,448 34,448
At 31 December 2023 34,448 34,448
ACCUMULATED AMORTISATION
At 1st January 2023 16,381 16,381
Charge for the year 3,614 3,614
At 31 December 2023 19,995 19,995
NET BOOK VALUE
At 31st December 2023 14,453 14,453
At 1 January 2023 18,067 18,067
10. DEBTORS Total Total
2023 2022
£ £
Legacies receivable 416,327 127,271
Gift aid receivable 28,030 29,066
Prepayments 29,135 27,732
Other debtors 13,766 6,307
487,258 190,376

50 WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

11. CREDITORS DUE WITHIN ONE YEAR Total Total
2023 2022
£ £
Trade creditors 61,017 44,704
Accruals 24,448 25,027
HMRCpayable 6,937 7,206
Pensionpayable 957 728
Grants due to the Sisters of Mary 125,000 145,000
Other 12,064 9,000
230,423 231,665

12. ANALYSIS OF CHARITABLE FUNDS

Balance @ Balance @
01.01.2023 Income Expenditure Transfers 31.12.2023
£ £ £ £ £
Unrestricted 412,090 2,283,092 (2,132,487) - 562,695
Restricted
Guatemala 2,915 2,061 (4,976) - -
Tanzania 21,790 61,825 (83,615) - -
Philippines 50 1,061 (1,111) - -
Honduras 528 755 (755) - 528
Brazil 18 15,779 (15,797) - -
Mexico - 136 (136) - -
Other - 726 - - 726
Restricted 25,301 82,343 (106,390) - 1,254
Total 437,391 2,365,435 (2,238,877) - 563,949
Balance @ Balance @
01.01.2022 Income Expenditure Transfers 31.12.2022
£ £ £ £ £
Unrestricted 704,927 2,050,110 (2,342,947) - 412,090
Restricted
Guatemala 2,915 352 (352) - 2,915
Tanzania 3,402 85,296 (66,908) - 21,790
Philippines 50 66,379 (66,379) - 50
Honduras 528 1,153 (1,153) - 528
Brazil - 184 (166) - 18
Restricted 6,895 153,364 (134,958) - 25,301
Total 711,822 2,203,474 (2,477,905) - 437,391

Each of the restricted funds is to be spent on charitable activities within the relevant country.

WORLD VILLAGES FOR CHILDREN ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023 AUDITOR’S REPORT

51

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Restricted Total
Funds 2023 Funds 2023 2023
£ £ £
Intangible fxed assets 14,453 - 14,453
Tangible fxed assets 42,197 - 42,197
Cash at bank and in hand 236,567 1,254 237,821
Other net current assets 269,478 - 269,478
562,695 1,254 563,949
Unrestricted Restricted Total
Funds 2022 Funds 2022 2022
£ £ £
Intangible fxed assets 18,067 - 18,067
Tangible fxed assets 50,800 - 50,800
Cash at bank and in hand 370,769 25,301 396,070
Other net current assets (27,546) - (27,546)
412,090 25,301 437,391

14. LEASE COMMITMENTS

14. LEASE COMMITMENTS
LAND AND BUILDINGS
Total Total
2023 2022
£ £
At 31 December, the charity has total future minimum commitments
under operating leases as follow:
Within one year 15,387 48,838
Between two and fve years 183,968 15,387
Greater than fve years 15,295 -
214,650 64,225

15. TRUSTEES REMUNERATION AND DONATIONS

A total of £nil (2022: £559) expenses were paid by the charity in the year. The prior year amount was for one of the trustees and covered the cost of accommodation and travel required to fulfil their duties. Nicola Lawson, who became a trustee in July 2016, received remuneration of £48,500 (2022: £48,500) and pension of £1,268 (2022: £1,268) during the year, in her capacity as an employee of the charity. This has been discussed and agreed with the Charity Commission. No other trustee receives remuneration (2022: £nil).

Total donations from trustees amounted to £10,812 (2022: £3,013) within the year.

52

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

16. CONNECTED PARTIES

World Villages for Children based in the United Kingdom pays on behalf of, and has had paid on its behalf, various expenses related to the charity as a whole by other affiliates based overseas.

The charity made grants totalling £1,500,000 to The Sisters of Mary in the year (2022: £1,708,000), which while not a strict affiliate is closely aligned to the ideals of the charity.

Balances between other affiliates have been settled before the balance sheet date except for those balances due to, and from, such affiliates as disclosed in Notes 10 and 11 of the financial statements.

Two trustees of the charity, Sister D.L Cho and Sister Elena Grengia Belarmino also sit on the boards of four other humanitarian entities that all share similar visions and purposes as World Villages for Children; these entities are in France, Netherlands, Belgium and the U.S.A. In addition, one former trustee, Sister Y Cheong, also sits on the board of the U.S entity. However, World Villages for Children does not consolidate these foreign entities in its financial statements, as they are separate legal entities with no one controlling party.

They were no other financial dealings with these entities during the year, apart from those transactions, and year end balances already disclosed below.

17. MEMBERS’ LIMITED LIABILITY

The company is limited by guarantee and has no share capital. Every member of the company undertakes to contribute to the assets of the company in the event of the same being wound up while they are a member. This contribution, not exceeding £10, covers the payment of debts and liabilities of the company contracted before each individual ceased to be a member and of the costs, charges and expenses of winding up and for the adjustment of the rights of the contributors among themselves.

18. LEGACY INCOME

World Villages for Children is aware of legacies of which the charity’s share is estimated at £nil (2022: £25,000). This has not been included in these financial statements as it does not reach the necessary recognition criteria as laid out by the charity’s accounting policy.

KRISIUS, PHILIPPINES

This is 9 year old Krisius, the youngest brother of our new student Alirah. Thanks to you Alirah is in our girls’ school in Biga, the Philippines. Now safe in our care Alirah is learning what she needs to find a good job when she finishes school. She is already sharing her new skills with Krisius, teaching him how to read and to write but in time she will be able to help her whole family with everything they need to live a better poverty free life, including healthcare, housing and in particular a good education for her brother.

Ending poverty through education

Kings Buildings, 16 Smith Square London, SW1P 3HQ

www.worldvillages.org.uk

+44 (0)20 7629 3050 enquiries@worldvillages.org.uk

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UK Registered Charity Number: 1058973