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2022-05-31-accounts

Railway Children

Report and financial

statements

For Year Ended 31[st] May 2022

Railway Children is registered Charity No. 1058991 and a
Registered Private Company Limited by Guarantee No. 3265496

Contents

Contents
Reference & Administrative Information 2
Introduction 3
Achievements 2021-22 4
Partners & projects - East Africa 11
Partners & projects - India 12
Projects in the UK 13
Strategy Goals for 2022-23 14
Fundraising Statement 16
Financial Results 17
Structure, Governance & Management 18
Statement of Trustee’s Responsibilities 19
Independent Auditors Report 22
Consolidated Statement of Financial Activities 26
Balance Sheet 27
Cash Flow 28
Notes Forming part of the Financial Statements 29

1

Reference and Administrative Information

Registered Office

1 The Commons Sandbach Cheshire CW11 1EG

Directors and Trustees

Haydn Abbott Timothy Hartley Judith Lister Trevor Winter Arun Muttreja Malcolm Brown Christine Taylor Tricia Wright Mo Bulbrook Andrea Minton-Beddoes Dr Delia Pop Dr Donald Mlewa

Chairman

Retired 3[rd] February 2022 Retired 3[rd] February 2022

Retired 3[rd] February 2022 Appointed 7[th] October 2021

Group Chief Executive Terina Keene

Company Secretary

Auditors

Ashurst LLP Sayer Vincent LLP London Fruit & Wool Exchange Invicta House 1 Duval Square 108-114 Golden Lane London E1 6PW London EC1Y 0TL

Other Office

India Office Flat No.8/A, 2nd Floor Arihant CHS, Gopal Krishna Gokhale Road, Mulund East Mumbai 400 081

Bank

Royal Bank of Scotland Drummond House 1 Redheughs Ave Edinburgh EH12 9JN

Solicitors

Ashurst LLP London Fruit & Wool Exchange 5 Appold Street London EC1M 4BS

Railway Children India

Regd. Office: B1, 1[st] Floor, Arjun Nagar, Harsukh Marg,

New Delhi, India CIN: U85100DL2013NPL260371

Directors:

Harbhajan Singh Sanjay Gupta Yazmin Riaz Megha Jain (appointed Feb 2022) Terina Keene (Official Observer & Group CEO)

Railway Children Trading Limited Directors: Company Number: 6533182

Rupert Brennan Brown James Sinclair Bain Mirco Danesi Andrea Minton-Beddoes Terina Keene David Brookes - Secretary

Railway Children Africa Limited Directors: Lulu Ng’wanakilala (Chair) John Kalage NGO Compliance No: 1563 Terina Keene (RC Group CEO) Michael Holden Judy Lister Jeanne Ndyetabula (Co-opted) Sunday Kapesi

2

Introduction by Haydn Abbott, Chairman

Welcome to our Annual Report for 2022.

The last year has seen a continuation of the many challenges we faced in 2020 and 2021. As we all begin the lengthy process of recovery from the global pandemic, we are starting to understand the social, economic, and cultural effects of the last two years and their likely long-term impact with the most vulnerable and socially disadvantaged children and families.

Despite the challenges, our supporters have remained fiercely loyal to our cause, and for that we are eternally thankful. Once again, we remain indebted to our supporters in the rail industry who helped us to replace the significant loss of income from our cancelled events programme and the annual Railway Ball on which we rely so heavily. In the two years during the pandemic our new Rail Aid event raised a colossal £1.2m and provided stability to our operations at a time of great uncertainty. Similarly, our income from individual supporters grew yet again, demonstrating the incredible loyalty and commitment we are privileged to see across our supporter base. It is this bedrock of our fundraising that brings solidity during extremely unpredictable times.

In the last year, a number of our major grants with a cumulative value of £1.1m came to the end of their term, resulting in a 55% reduction in our grants income. Knowing in advance that it would be challenging to replace this income in the current environment, we were able to manage our reserves to sustain our programme delivery over the year. This financial planning alongside a 4% growth in our voluntary income has meant we have only seen an 8% reduction in our charitable spend and I thank our management team and my board for this safe steering of the ship through tricky waters.

The efforts of our project teams this year has been an inspiration and a huge source of pride. The closure of stations, cancellation of trains, countless government lockdowns and complete loss of livelihoods all had a significant impact on the way we reach out to children and their families. In some cases, our teams were forced to completely rethink their approach to ensure they could still reach children when they were more vulnerable than ever. In the last year we worked with 14,422 children and alongside that, we ran our first, successful online international child safeguarding conference.

Looking ahead, our new 5-year strategy will launch later this year. Given the context we are now working in we aim to leave no child behind. It is about working with children and families before, during and after they turn to the streets to survive. For the world, it is about recognising the unique vulnerabilities of children struggling to survive on the streets and the consequences of not acting, alongside the potential if those at the highest risk of harm can be protected in the global development goals.

While the scale of our challenge maybe huge and our resources maybe limited, we have the knowledge and determination to make a substantial impact directly and indirectly on the lives of thousands of children, both now and for generations to come.

On behalf of the trustees and the charity, I thank our supporters for your continued loyalty and generosity which makes our work achievable.

Haydn Abbott

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Aims and Achievements

Aims

Railway Children was founded in 1996 and its objective is:

‘The relief of children and young persons under 25 years of age who are in conditions of need, hardship or distress, anywhere in the world and in particular those who are living on the streets’.

Since then, Railway Children’s work has benefitted thousands of children and young people living alone and at risk on the streets.

Our work aims to create and enable sustainable change in the lives of individual children, communities and in the wider policy and practice that affects all children living alone on the streets.

Public Benefit

The Trustees have considered the Charity Commission guidance on public benefit in deciding what activities the charity should undertake. This report is produced for the benefit of the public and contains an explanation of the significant activities undertaken during the year in order to carry out the charity’s aims and also measure achievements against the objectives set by the Trustees.

Principal Activities

In achieving our aims, we work at three levels for long term change. We recognise that to create, enable and sustain change we need to balance activities, and therefore;

  1. We aim to make early interventions in the lives of vulnerable children on the streets before they come to serious harm

  2. We change the perceptions of local communities. We make children on the streets visible to their communities and aid understanding of how they came to be there and the support they need.; and

  3. We use research, expertise and strong relationships with key individuals and departments to influence policy makers and leverage government support.

By working at all three levels, we ensure positive sustainable change, both in the lives of children currently surviving on the streets and those currently at home but living with neglect, violence and/or abuse where living on the streets may become their only survival option.

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Achievements

The following outlines the wider strategy goals (2017-2022), alongside the objectives we set ourselves for this year and the progress we made.

Strategy Goal 1

We will make a step change in the number of children we can reach, delivering services that significantly improve their life outcomes

We have provided support services to 2,270 children and youth living and working on the streets, 91 child domestic workers, and 32 children in residential care in three cities in Tanzania, namely Dar es Salaam, Mwanza and Dodoma. Activity within a key project to reunify children living in residential care with their families was paused for an extended period, but is now on track to meet its targets after the end of this financial year.

Additionally, 820 children and their siblings were supported to return to school; 71 youth were provided with life skills education and 32 youth were given business training and seed funding to start-up their own businesses, helping them to follow a sustainable route away from living on the street and establish a financially secure future.

All our station-based work was severely impacted by the Covid-19 pandemic. Through the year, various lockdowns, suspensions of rail services and restrictions on unallocated seating all significantly reduced the numbers of children arriving alone and at risk at stations.

Nonetheless, by shifting a greater proportion of our work towards supporting families living in 24 slum communities adjacent to our project stations and offering extended material support to 2,400 families of previously reunified children, we were able to protect more than 10,000 children living at and around 10 railway stations in India.

This included 3,053 children protected after arriving alone at 10 railway stations, with 2,402 children reunified with family and 30 children referred to long term care. Our support to families centred around the provision of groceries, helping to alleviate the desperate condition of families whose income had dried up as a result of the pandemic – many of whom are ordinarily reliant on working as daily-wage labourers. Additionally, we helped 870 families to gain accessing to public social protection schemes; enrolled 192 children into school; enrolled 48 reunified youth into vocational skill courses and linked 329 children under the age of 6 with the government’s Integrated Child Development Scheme.

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The establishment of a dedicated referrals coordinator role has enabled us to manage and process referrals in a more timely and consistent way across all four projects. New systems ensure that every young person referred to us by the British Transport Police is contacted and offered support and advice.

Our onward referrals and outreach work were significantly constrained by the COVID pandemic. We frequently found that many services were not accepting new referrals; had long waiting lists; were offering reduced services or had simply ceased to exist. We therefore prioritised networking and establishing new referral paths. 30 young people whose needs are best met by other services were referred on and we engaged with 309 young people through our outreach work in hotspot locations, including joining operations and patrols with the British Transport Police. We also engaged with 1500 young people in educational settings who have been identified as needing further information and advice based on ongoing needs and concerns for safety.

We provided 943 young people with information and guidance about keeping safe on the network and have directly supported 163 young people and their families with intensive casework.

Strategy Goal 2

We will change people’s perceptions of children on the streets to reduce the level of harm they face

In Tanzania, we will reach 31,200 people in Mwanza with awareness messages promoting the rights of children and youth living & working on the streets and domestic workers and continue to support the children & youth platforms to ensure children & young people have a voice and engage with the government .

Approximately 152,670 people were reached with awareness messages. 36,020 people were reached through community dialogues which engaged the local community in a collaborative, participatory, and interactive way, delivered in local languages to ensure equality and diversity. These meetings were led by youth trained by us as youth champions. In addition to promoting the rights of children and youth living & working on the streets and child domestic workers, they support community members to identify drivers of radicalisation and violent extremism and present community concerns to the police and authorities. A total of 97 youth have been identified and trained as youth champions and they continue to work with Local Government Authority and religious leaders to support their communities.

In India, 3500 railway officials and 20,000 passengers will be trained and sensitised on child protection and Covid-19 prevention in India. A network of 20,000 ticket checking staff will protect children alone on the rail network. Staff at 25 railway stations and districts recognised as hotspots for child trafficking will be alerted to child protection issues

A total of 5049 Railway officials have been trained on child protection, 44% more than the annual target. Alongside sessions at 10 Railway Training Institutes, training was also delivered at 44 stations. Railway Children India also conducted training on 'Human Trafficking' at the Railway Protection Force Academy. We provided technical assistance on child protection issues to the ‘Indian Railway Ticket Checking Staff Organisation’ which has more than 20,000 ticket checking staff of Indian Railways. This resulted in their members protecting 137 children in moving trains where our staff have no presence.

In the UK, 6,000 transport staff will be provided with a greater awareness and understanding of vulnerable children through our training programme, ensuring they know how to respond to young people in need and where to refer them

Our training programme for the staff of train operating companies was disrupted by a range of external factors including the global pandemic and industrial action. We trained 2742 transport staff and expect more than 13,000 additional staff to complete our training in 2022.

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We will develop Safeguarding Action Groups in three key locations. These groups will raise awareness, share local intelligence, and generate local solutions designed to safeguard young people

Safeguarding Action Groups have been established and are now running at five locations across the UK (Manchester, Birmingham New Street, Glasgow Central, Hull and London Waterloo). These groups convene a varied collection of members including representatives from train operating companies, British Transport Police, facilities managers, commercial operators, voluntary organisations and local authorities. Each group is unique and sharing good practice, ideas, and issues for their own individual location.

Our staff will engage with the British Transport Police (BTP) through at least four joint initiatives. We will continue to brief and engage in events with 750 officers, increasing their awareness and engagement with the Safeguarding on Transport programme

Our safeguarding on transport training is now part of the induction programme for all new BTP officers. Additionally, we have delivered training to Inspectors as part of their career development and to Special PCs as part of their refresher weekend. The Birmingham team have also formed a link with the BTP cadets.

Our staff supported the British Transport Police (BTP) and the BTP County Lines team with joint operations in Norwich, Cardiff, Hull, York, Stratford, Manchester Piccadilly, and Liverpool Lime Street. A week long programme conducted in partnership with the BTP at London Waterloo included a contextual safeguarding risk assessment, passenger awareness raising, briefings with officers and catalysed the foundation of a Safeguarding Action Group. Monthly passenger engagement at Leeds station is undertaken with cooperation from partner agencies, West Yorkshire Police and BTP.

In total we engaged with 602 BTP officers and staff over the course of the year.

Strategy Goal 3

We will build political will around the issues of children living on the streets

Tanzania - We will continue to lobby for investment in services to ensure support is made available to children & youth using governments own resources, ensuring investment from at least five district councils. At national level we will ensure commitment from central government to develop a National Guideline for Working with children and youth living on the streets in Tanzania

We conducted a review of the budgets of the district councils where we work with the analysis findings being used as an advocacy tool to lobby for investment.

We received verbal confirmation from the Department of Social Work that the government will be developing a national strategy for working with children living and working on the street, and we are meeting with a technical team from the Ministry in June 2022 to agree a roadmap for developing the national strategy.

Railway Children Africa has developed an agreement with Central Government on how the two parties will collaborate to advance the rights of street connected children. A group of Members of Parliament representing the social services and community development parliamentary committee visited our Kivuko project in Mwanza. The visit allowed the MPs to understand the issues and challenges faced by children and how Railway Children works to respond to those challenges. Key requests were made to the parliamentary group including using their power and influence to demand that resources for street connected children are specifically allocated within the next budget and also to ensure the enforcement of policies for children who have dropped out of school being accepted back into education.

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India -Civil society, Railway authorities and government child protection authorities are alert to child trafficking instances and are prepared to protect children at 25 hotspot railway stations

A status report on child protection at railway stations on the Howrah-Delhi mainline was prepared drawing on secondary data and interactions with Government and non-government stakeholders. 25 railway stations on the Howrah-Delhi mainline were identified as hotspots and training was delivered between December 2021 – March 2022 to local stakeholders including civil society, railway authorities and government child protection staff. 1224, children were protected from abuse and exploitation at these locations.

UK - We will continue to work in partnership with the British Transport Police and industry bodies at a senior level to ensure that safeguarding continues to be included in the strategic vision for the rail industry. By working collaboratively, we will ensure that plans are in place to identify and respond to vulnerable people. This will specifically mean focussing on

Six Train Operating Companies (TOCs) that we have been working with have had their safeguarding policies approved by the British Transport Police; one achieved their full accreditation in September 2021 and a second is on track to gain their full accreditation in August 2022. We continue to monitor the development of Great British Rail to ensure we have the opportunity to influence the weighting that is placed on safeguarding within new franchise agreements.

Fundraising

Strategic Operational Goal 3

Income goal being reassessed – goal was to grow income from £3.4m to £8m by 2022

Voluntary income grew to £2.98m in this financial year, a growth of 4% on budget and last year’s income. In addition, we have supported our colleagues in India to recruit and restart the corporate fundraising department while also supporting the increase of individual fundraising from £75,000 to £135,000. We have worked directly with the team in Tanzania to provide new and refreshed corporate and trusts and foundations activity, aiming to create a fundraising function in-country.

We have undertaken a strategic grants review in order to assess the marketplace while resourcing the team in order to attract mid-level trusts and foundations as well as larger scale institutional grants. The structure is now in place to build substantial growth in 2022-23 onwards. In addition, we secured £468,000 from trusts and foundations in order to minimise any disruption to project delivery.

As a charity, we are committed to providing the highest quality of supporter care and will deliver a new strategy that ensures it is a key component of the entire group. This will

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include supporter panels and introduce a clear pathway to regular giving from our events participants. We will secure over 6,000 donors across the charity and grow our regular giving base to 2,400

6,699 people donated to Railway Children during 2021-22, increasing from 6,265 the previous year. Our regular giving donor base stands at 2,195 and while the recruitment of new supporters was more difficult against the backdrop of the pandemic, their loyalty grew with the average gift of regular givers rising from £144 per year to £150 per year and cash donor value rising from £108 on average to £114.

Strategic - Operational Goal 4

We will be the voice for street children, raising awareness and building a better understanding of the issue

A comprehensive consultation with staff and trustees from all of our affiliates informed and enabled us to develop our new five-year strategy which seeks to position Railway Children as experts for street connected children. A fresh review of our brand and our communications has begun in line with the development of the new strategy as we seek to amplify our voice and ensure street children are part of the conversation in the development of the post 2030 sustainable goals, leaving no child behind

Our digital fundraising continued to flourish, with enhanced monitoring and use of data informing all our online activities. Our annual supporter survey showed that our relationships and engagement with supporters continues to thrive, and this is further endorsed by digital data across our social media and digital channels which are tested and monitored consistently. As a consequence of more sophisticated digital approaches, our Rail Aid campaign in the wake of the pandemic raised a cumulative £1.2m over two years and our individual giving programme prospered with further year-on-year income growth.

Working intensively with our marketing & fundraising team in India, we have established a full dashboard of digital data from our online marketing activities, enabling us to establish benchmarks and develop a programme of testing and improvement. Our teams are working together to coordinate digital fundraising activities and share learning and expertise to drive performance. In 2022/23 we will launch a new website for Railway Children India, informed by Search Engine Optimisation analysis and our data from the last year.

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The online international safeguarding conference was a huge success, attracting delegates from many nationalities. The branding and quality of collateral, along with a highly professional production and streaming service, ensured a strong participation across all seminars and outstanding post conference feedback. After such a successful delivery of the first event, and the excellent profile for Railway Children Africa and our beneficiaries in the region, we will look to repeat the event in future years.

Whilst the launch of the event was delayed by further Covid restrictions, we were able to conduct soft launches and testing of the materials with rail partners in Glasgow and London. Our partners at GWR have wrapped one of their trains in the campaign collateral and JC Decaux provided free digital advertising sites for us to test media at Glasgow Central. Now that public footfall in stations is increasing, plans are now in place to launch the full campaign at Manchester Piccadilly Station in partnership with our Safeguarding Action Group.

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Partners & Projects - East Africa

Cheka Sana, Mwanza, Tanzania

The programme provides the resources needed to explore possibilities of children returning home to their families and communities. Work in the community with families and self-help groups ensures children can remain safe in a family environment and are therefore prevented from migrating to the streets.

(Total support 2021-22 £56,347)

Dar project, Dar es Salaam, Tanzania (RCA Direct)

Railway Children Africa’s direct delivery project focuses on street work and family reintegration. - Youths based on the street are supported to form ‘associations’ and develop life skills, including vocational and business skills to ensure improved opportunities and income generation. (Total support 2021-22 £45,408, Unrestricted designated funds 2022-23 £79k)

Kivuko, Mwanza, Tanzania (RCA Direct)

Railway Children Africa’s direct delivery project focuses on street work and family reintegration. - Youths based on the street are supported to form ‘associations’ and develop life skills, including vocational and business skills to ensure improved opportunities and income generation. (Total support 2021-22 £307,017- Unrestricted designated funds 2022-23 £171k)

Amani, Moshi, Tanzania

Providing care and protection for children and youth on the streets in Arusha and Moshi, reuniting children with families and enabling youths to become productive members of the community. (Total support 2021-22 £505)

Baba Watoto, Dar es Salaam, Tanzania

Ensuring children and youth are protected and their talents in arts and sports are developed. Empowering youth to become self-motivated and gain employment. (Total support 2021-22 £10,571)

Caritas, Mbeya, Tanzania

Providing care and protection for children and youth on the streets in Mbeya, reuniting children with families and enabling youths to become productive members of the community. (Total support 2021-22 £861)

IDYDC, Iringa, Tanzania

Providing care and protection for children and youth on the streets in Iringa, reuniting children with families and enabling youths to become productive members of the community. (Total support 2021-22 £2,071)

Kisedet, Dodoma, Tanzania

Providing care and protection for children and youth on the streets in Dodoma, reuniting children with families and enabling youths to become productive members of the community. (Total support 2021-22 £41,681- Unrestricted Designated funds 2022-23 £36k)

Kigamboni Community Centre, Mwanza

Support the reintegration of children from KCC long term shelter to family-based care, empower youths that are above 18 years or nearly 18 on how to become self-reliant and cope with outside world when they are supposed to leave the centres and conduct adoption campaign in collaboration with government social welfare officers. (Total support 2021-22 £4,057)

Consortium for Street Children

Providing advocacy support for the DFID project in Tanzania to ensure the General Comment No. 21 on Children in Street Situations is adopted. (Total support 2021-22 £16,251)

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Tanzania Child Rights Forum (TCRF)

Works to bring together Civil Society Organisations working with and for children to promote the rights of children and young people. TCRF are working with Railway Children to ensure Tanzania applies much of what has been included in the UN General Comment 21 on Children in Street Situations.

(Total support 2020-21 £9,242)

Village of Hope, Mwanza

Support the reintegration of children from KCC long term shelter to family-based care, empower youths that are above 18 years or nearly 18 on how to become self-reliant and cope with outside world when they are supposed to leave the centres and conduct adoption campaign in collaboration with government social welfare officers

(Total support 2021-22 £4,794)

Wote Sawa, Mwanza

WoteSawa strives to empower current and former Child Domestic Workers to understand, safeguard, promote and reinforce their rights in Tanzania through legal and economic empowerment, child abuse monitoring, psychosocial support and policy reforms in conformity to the national and international child welfare standards. ( Total Support 2021-22 £32,180)

Partners & Projects - India

Narayani Seva Sansthan, Bihar

Outreach at Dharbhanga station and provision of a shelter for rehabilitation of children alongside a programme of family reunification and reintegration, including a school enrolment campaign

(Total support 2021-22 £22,147)

The Hope House, Tamil Nadu

Outreach at Katpadi station and shelter for rehabilitation of children alongside a family reunification and reintegration programme

(Total support 2021-22 £56,695 – Unrestricted designated funds 2022-23 £57k)

Scope, Tamil Nadu

Outreach at Villupuram station and shelter for rehabilitation of children alongside a family reunification and reintegration programme (Total support 2021-22 £52,173)

Terre Des Hommes, Tamil Nadu

Outreach at Salem station and shelter for rehabilitation of children alongside a family reunification and reintegration programme

(Total support 2021-22 £66,438)

Delhi (RCI Direct project)

Outreach programme at Delhi Cantonment and Sarai Rohilla stations alongside a rehabilitation and family reunification programme

(Total support 2021-22 £70,204, Unrestricted designated funds 2022-23 £62k)

Ghaziabad (RCI Direct project)

Outreach programme at Ghaziabad station alongside a rehabilitation and family reunification programme

(Total support 2021-22 £15,080, Unrestricted designated funds 2022-23 £30k)

Humara Bachpan Trust, Bhubaneswar

Outreach at station and shelter for rehabilitation of children alongside a family reunification and reintegration programme

(Total support 2022-23 £37,128)

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Salam Balak Trust, Ghaziabad

Outreach at station and shelter for rehabilitation of children alongside a family reunification and reintegration programme

(Total support 2021-22 £78,565, Unrestricted designated funds 2022-23 £30k)

SEVAI, Tiruchirappalli

Outreach at Salem station and shelter for rehabilitation of children alongside a family reunification and reintegration programme

(Total support 2021-22 £45,878– Unrestricted Designated funds 2022-23 £55k)

Sankalp Sanskritik Samiti, Raipur

Outreach at Raipur station and shelter for rehabilitation of children alongside a family reunification and reintegration programme (Total support 2021-22 £25,701)

Yuva Urban Inititatives, Mumbai

Outreach at Dadar station and shelter for rehabilitation of children alongside a family reunification and reintegration programme (Total support 2021-22 £13,756)

UK Projects

Railway Children delivers direct support to children referred to us by the British Transport Police, with services running in Birmingham, Leeds, London and Manchester during the last year. Our services include Information and guidance alongside intensive one-to-one and family support where children are referred with complex needs and vulnerabilities. In addition, we provide safeguarding training and awareness across the industry to protect and safeguard vulnerable children.

This incorporates our Safeguarding on Transport awareness training and having Railway Children project workers based within the station community to assess the needs of children referred from the British Transport Police and provide ongoing one-to-one support, family work or mentoring as appropriate. (Total support 2021-22 £433,827- Designated unrestricted funds 2022-23 £36k (Manchester), £67k (London), £23k (Leeds) and £41k (Birmingham))

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Objectives for 2022-23

In 2022 we will launch our new five year strategy that aims to leave no child behind, wherever we work.

Our new strategy will launch as the world commits to a decade of action towards achieving the United Nations Sustainable Development Goals. A key principle of the Goals is to leave no-one behind and we believe this gives us an opportunity to put the children we work with on the global agenda.

To achieve this aim we will be strengthening:

  1. Programmes and services, before, during after a child has survived on the streets, to ensure children are safe, at home and in a nurturing environment

  2. Community responses, to enable local people to identify and protect vulnerable children

  3. Child protection systems and policies, to ensure public sector policies and budgets safeguard vulnerable and at risk children

  4. Investment in evidence, to demonstrate need and proven models of achieving impact

The objectives for 2022/23 represent the milestones we intend to achieve in year one of our new 5-year strategy.

Goal 1 – Children will be safe, at home and in a nurturing environment

Tanzania

India

UK

Goal 2 – Communities are able to identify and protect vulnerable children

In Tanzania

We will reach 15,000 people in Mwanza with awareness messages on the rights of children and youth living on the streets and build capacities of children and youth across three cities to empower them as confident, informed and effective advocates of their own rights.

In India

We will improve child engagement and family reunification process within two government childcare institutes (CCIs) by May 2023.

In the UK

4,800 transport staff will be provided with a greater awareness and understanding of vulnerable children through our training programme, ensuring they know how to respond to young people in need and where to refer them

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Goal 3 Public sector policies and budgets safeguard vulnerable and at risk children

In Tanzania , we will engage with national government and three district councils in selected cities to advocate for allocation of substantial budgetary resource to ensure child protection laws and regulations are effectively enforced to realise children’s rights, in particular the rights of vulnerable and at-risk children and youth.

In India, we will protect an estimated 1000 children at risk through collaboration with the Railway protection Force, Government Railway Police, commercial railway staff, and government stakeholders of 30 major railway stations across Howrah Delhi mainline Railway route.

In the UK , we will work in partnership with the British Transport Police (BTP) and industry bodies at a senior level to ensure that safeguarding continues to be included in the strategic vision for the rail industry. By working collaboratively, we will ensure that plans are in place to identify and respond to vulnerable people. This will specifically mean focussing on

Fundraising

Brand

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Fundraising Statement

Railway Children carries out a variety of fundraising activities, approaching individuals and companies for support and sponsorship as well as Trusts and Foundations. We occasionally employ a professional fundraising agency to undertake telephone and face-to-face fundraising activity on our behalf. Our policies and approach to fundraising are as follows.

Supporters and our beneficiaries are at the heart of what we do. We strive to achieve high standards in our fundraising and communication with supporters. We stand by the principles set out in our supporter promise.

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Financial Results

Income

The total income for the year was £4.09m with £2.28m of unrestricted and £1.81m of restricted income. Within these amounts grant income contributed £1.42m. Corporate contributions included £0.72m from our Rail Aid event and £0.91m from other corporate fundraising including our events programme. Our individual giving programme, including fundraising in India raised £0.98m. The balance of the income was from donated services and interest. Income received through the UK decreased from £3.95m to £3.38m.

Charitable Activities

The total charitable expenditure delivered in the year was £3.27m - a decrease of £0.29m (9.2 per cent) this was largely a result of coronavirus slowing down programme delivery and contraction of the Tanzania programme as grant funding came to an end. This expenditure made up 73.8 per cent (previous year 79.3 per cent) of total expenditure. Our geographically focused charitable activity divided between our Indian programme at 43 per cent (previously 28 per cent); our UK programme at 12 per cent (previously 12 per cent) and our Tanzania programme at 45 per cent (previously 60 per cent).

Expenditure on Fundraising

Expenditure on fundraising accounted for 26.3 per cent of our total income (previous year 18.9%). These costs were a mixture of staff, support costs and mailing activity. The expenditure on fundraising increased due to the restarting of our events programme.

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Structure, Governance and Management

Railway Children is a charitable company limited by guarantee 3265496, Registered Charity No. 1058991, incorporated on 18th October 1996 and registered as a charity on 5th November 1996.

The Company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. Under those Articles, the Trustees, who form the Board of Trustees, are elected at the Annual General Meeting to serve a period of three years, with one third of their number retiring at each AGM.

The Memorandum and Articles of Railway Children express its objects as ’the relief of children and young persons under 25 years of age who are in conditions of need, hardship or distress, anywhere in the world and in particular those who are living on the streets’.

Railway Children Trading Limited is a wholly owned subsidiary company (number 6533182) limited by shares. The company is registered for VAT and is used by Railway Children to conduct its trading activities. All profits are gift aided to the parent charity.

Railway Children Africa (RCA) is registered in Tanzania as an NGO, with NGO compliance (1563) under the Non-Governmental Organisations Act. The board consists of Railway Children representatives and Tanzanian nationals. The company manages our operations in Tanzania. The results for this company are consolidated into the accounts.

Railway Children India (RCI) is a Section 8 company registered in India that commenced operations in FY2015-16.

RCA and RCI operate as independent organisations governed by their own boards. These boards have been granted use of the Railway Children mark under licence in return for operating in accordance with group policies and quality standards in so far as is legally permissible in their jurisdiction. The results of RCA and RCI are consolidated into the group in view of the choice of these organisations to work to the current group strategy using group systems.

The governance of the charity has been reviewed in the context of the Charity Commission’s Governance Code which has resulted in a strengthening of the quality standards the group uses to ensure integrity and inclusivity in the charity’s operations.

Vision and Beliefs

As an organisation, Railway Children recognises that the environment in which we operate in is one of uncertainty and constant change. The resources we rely on in order to meet our charitable aims are both competitive and subject to ever-changing trends, whilst our beneficiary environment is one that varies frequently. In response to this we construct our organisation so we can be as flexible and as innovative as possible. We nurture a culture that is both informal, inclusive and open without compromising on accountability or professionalism. This culture reflects a commitment to making a lasting change in the lives of children at risk on the streets and is informed by our stated values which work together to underpin all that we do:

‘Our vision is a world where no child ever has to live on the streets’

Values

THESE SIX VALUES GUIDE OUR WORK

NEVER GIVE UP - Face challenges head on

HAVE COURAGE - Push boundaries. Think Big

EARN TRUST - Be Honest. Always act with Integrity

SHOW COMPASSION - Respect and Dignity for all

NURTURE TALENT - Encourage growth. Enable others

18

Governance - Trustee Responsibilities

As a charity accountable to all our donors, our resources must be carefully managed, and our legal responsibilities met.

Since its incorporation, the Railway Children Trustees have been the organisation’s governing body. Trustees hold ultimate legal responsibility for the charity and collectively ensure delivery of our objectives, set our strategic direction and uphold our values as an organisation.

The key responsibilities of the Trustees are:

Railway Children as a group operates under the guidance of a Board of Trustees. The implementation of the Trustees’ plans and policies, and the responsibility for performance is vested in the Group Chief Executive.

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The total amount of such guarantees on 31 May 2022 was £270 (2021 - £280). The Trustees are members of the charity, but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Recruitment and Appointment of Trustees

Under the requirements of the Articles of Association, all members of the charity are permitted to stand for election as Trustees at the Annual General Meeting. The Trustee body has the necessary powers to appoint a new Trustee at any time. Any such appointed Trustee can hold office until the next Annual General Meeting, when they can stand for election.

One third of all, being the longest standing Trustees, retires in rotation and is eligible for re-appointment at the Annual General Meeting. The minimum number of Trustees is set at three and currently there are thirteen. There is no set maximum number.

Trustee Induction and Training

Members of the charity who are considering standing as a Trustee are invited to attend Trustee meetings, to allow them to get to know the charity and the roles and responsibilities of a charity Trustee. Additionally, new Trustees are encouraged to attend an induction meeting, led by the Chairman and the Group Chief Executive. The meeting covers the following aspects:

A Trustee HANDBOOK exists to assist both new and existing Trustees in the discharge of their responsibilities. The handbook , which has been updated in April 2022 , includes governance and operational policies, the Memorandum and Articles, role descriptions of officers and current delegations. Trustees are encouraged to keep themselves up to date through appropriate training.

19

Remuneration Policy

Railway Children commits to recruiting and paying all our staff up to the median rate, determined by an independently benchmarked scale that is reviewed every three years.

In the UK, we use the Charity data cut of the Croner Salary Search on-line survey. In the UK we benchmark our salaries which ensures salaries are fair and competitive. The data is cut in the following categories, International Development, job ranking, job role, size of charity (Annual income), size of charity (Number of employees).

The salaries of the Group CEO and UK Director positions must be approved by the People and Culture Committee (PCC).

Risks

The Trustees and senior staff have produced a five-year strategy (2023-2027) setting out the major opportunities available to the charity and the risks to which it is exposed. All risks are reviewed and updated quarterly by the Finance and Audit Committee and the Board of Trustees. As part of this process, the Trustees have developed a Risk Management Policy, which comprises:

Key risks for 2022-23 Mitigations
Securing ongoing funding Continued
investment
in
fundraising
and
diversifying income streams. In year budget
changes if required.
Delivering services safely in areas impacted by
coronavirus		 Taking best practice risk management and
applying to local environments.
Recruitment and retention of suitable staff Ensuring that salaries are benchmarked, there is
emphasis on good staff supervision and financial
planning gives confidence to key staff as regards
retention.
Safeguarding Safeguarding teams continue to respond to
instances in line with policies and also build
implementing partner capacity

Reserves

The Board of Trustees reviews the charity’s reserves policy annually.

The basis of Railway Children’s reserve policy is:

To achieve the above, a minimum reserve is defined as being three months of our core unrestricted expenditure. Our target reserve is based upon the level required to enable the following year’s programme to be funded and close at the guideline reserve level and is expressed as the opening reserve position for the following year’s budget.

The reserve levels for FY2021-22 were a minimum reserve level of £1.0m with a target reserve to fund the FY2022-23 programme of £1.6m.

20

The closing unrestricted reserve for the year was £1.0m which was £0.6m below the target level. Of the unrestricted reserve £0.8m is designated for programme work over the next twelve months. This work is outlined in each programme section of this report and a regional breakdown of the designation given in note 19 of the accounts. For the FY2022-23 the minimum reserve is £0.7m, the budget reserve at the end of the financial year is £1.0m with a target reserve of £1.8m.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

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

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and the incoming resources and application of resources, including the income and expenditure, of the charitable company / group for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that 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. They are also responsible for safeguarding the assets of the charitable company and group and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AUDITORS

In so far as the Trustees are aware:

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

A resolution to re-appoint Sayer Vincent LLP as the company's auditor will be proposed at the forthcoming Annual General Meeting.

The report of the Trustees has been prepared in accordance with the special provisions applicable to companies’ subject to the small companies’ regime.

Haydn Abbott

Chairman of the Board

Date:

21

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF RAILWAY CHILDREN

Opinion

We have audited the financial statements of Railway Children (the ‘charitable company’) for the year ended 31 May 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 Railway Children'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.

22

Other Information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied

23

that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

24

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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Orchard (Senior statutory auditor)

24 October 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

25

RAILWAY CHILDREN CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (incorporating Income & Expenditure Account) for the year ended 31 May 2022

Income from:
Donations and Legacies
3
Charitable Activities
Outreach
Shelter
Reintegration
Influencing
Other trading activities
Investments
Total Income
Expenditure on:
Fundraising
Charitable Activities
Outreach
Shelter
Reintegration
Influencing
Total Expenditure
4
Net Income / (Expenditure)
Transfer between funds
Reconciliation of Funds
Total funds brought forward
22
Total funds carried forward		 2022
2021
Unrestricted
Restricted
Total
Total
£
£
£
£
1,698,272
407,303
2,105,575
2,166,670
5,971
331,906
337,877
766,089
5,885
327,101
332,986
444,258
11,327
629,567
640,894
1,147,840
1,959
108,898
110,857
216,185
555,495
1,199
556,694
151,257
301
7,771
8,072
7,592
2,279,210
1,813,745
4,092,955
4,899,891
1,124,511
38,402
1,162,913
906,443
296,430
326,614
623,044
960,414
127,243
167,292
294,535
500,021
689,233
768,783
1,458,016
1,592,376
484,048
413,556
897,604
502,426
2,721,465
1,714,647
4,436,112
4,461,680
(442,255)
99,098
(343,157)
438,211
(23,193)
23,193
-
-
1,429,067
923,105
2,352,172
1,913,961
963,619
1,045,396
2,009,015
2,352,172

All of the above results are derived from continuing activities.

All recognised gains and losses are included in the Statement of Financial Activities. Accordingly no statement of total recognised gains and losses are given. All restricted funds received and expended relate to income funds.

26

RAILWAY CHILDREN
CONSOLIDATED AND PARENT BALANCE SHEET
As at 31 May 2022		 RAILWAY CHILDREN
CONSOLIDATED AND PARENT BALANCE SHEET
As at 31 May 2022		 Company Limited by Guarantee No. 3265496
Fixed Assets
Tangible Assets
Investment
Current Assets
Debtors & Prepayments
Short Term Deposits
Cash at Bank & in Hand
Current Liabilities
Amounts Falling Due within One Year
Net Current Assets
Net Assets
Funds
Unrestricted Income Funds
General Funds
Designated Funds
Restricted Income Funds
Restricted Income Funds in Deficit
Total Funds		 Notes
10
11
17
18
19
19		 2022
2021
2022
2021
£
£
£
£
326
15,817
519
1,293
20,776
17,624
20,876
17,724
118,002
228,110
732,543
706,971
-
400,000
-
400,000
2,127,964
1,919,179
1,141,973
1,067,278
Group
Charity
2,245,966
2,547,289
1,874,516
2,174,249
(258,053)
(228,558)
(197,408)
(161,580)
1,987,913
2,318,731
1,677,108
2,012,669
2,009,015
2,352,172
1,698,503
2,031,686
166,619
753,107
247,356
883,150
797,000
676,000
797,000
676,000
1,056,348
968,504
665,099
517,975
(10,952)
(45,439)
(10,952)
(45,439)
2,009,015
2,352,172
1,698,503
2,031,686

The financial statement of Railway Children, registered number 03265496, were approved by the Board of Trustees on 14th Sept 2022 and signed on its behalf by

Chairman of the Board

Haydn Abbott

Honorary Treasurer

Malcolm Brown

27

RAILWAY CHILDREN CONSOLIDATED STATEMENT OF CASH FLOWS

RAILWAY CHILDREN
CONSOLIDATED STATEMENT OF CASH FLOWS
for theyear ended 31 May 2022
Note
Cash flows from operating activities
Net cash provided by operating activities
Cash flows from investing activities:
Purchase of fixed assets
10
Dividends and interest from investments
Purchase of investments
Net cash provided by / (used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Change in cash and cash equivalents due to exchange rate movements
Cash and cash equivalents at the end of the year
Reconciliation of net income / (expenditure) to net cash flow from
Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Exchange (Gains)/Losses
(Increase)/decrease in short term deposits
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Dividends and interest from investments
Net cash provided by / (used in) operating activities
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents		 £
£
£
£
146,177
38,080
-
-
18,282
14,592
-
-
18,282
14,592
164,459
52,672
1,919,179
1,924,340
44,326
(57,833)
2,127,964
1,919,179
operating activities
2022
2021
£
£
(343,157)
438,211
2,129
10,521
(44,326)
57,833
400,000
(400,000)
110,108
(119,074)
29,495
58,181
(8,072)
(7,592)
146,177
38,080
At 1 June 2021
Cash flows
Other
At 31 May 2022
£
£
£
£
1,919,179
164,459
44,326
2,127,964
2022
2021
1,919,179
164,459
44,326
2,127,964

28

1 ACCOUNTING POLICIES

The financial statements are prepared under the historic cost convention. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: 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) (effective 1 January 2015) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (August 2014) and the Companies Act 2006.

As explained in the Trustees’ Report, after making enquiries, the trustees have a reasonable expectation and no material uncertainties that Railway Children has adequate financial resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Reconciliation with previously Generally Accepted Accounting Practice (GAAP)

In preparing the accounts, the trustees have considered whether in applying the accounting policies required by FRS 102 and the Charities SORP FRS 102 a restatement of comparative items was required. The transition date was 1 June 2014. No transitional adjustments were required.

Basis of Consolidation

The Group financial statements consolidate the financial statements of Railway Children and its wholly owned subsidiary undertakings drawn up to 31[st] May each year. The results of the charitable company and its wholly owned subsidiaries Railway Children Trading Limited, Railway Children Africa Limited and the overseas entity over which the charity has control through membership, Railway Children India, are consolidated on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

Incoming Resources

All income is recognised in the statement of financial activities when the conditions for receipt have been met, it is probable that the income will be received and that the amount can be measured reliably. Where a claim for Income Tax has or will be made, such income is grossed up for tax recoverable. Deferred income represents amounts received for future periods and is released to incoming resources in the period for which it has been received. The following accounting policies are applied to income:

Gifts in Kind and donated goods & facilities

Assets given for use by the charity are recognised as incoming resources at their estimated market value when receivable. If they form part of the fixed assets at the year-end, they are included in the balance sheet at the value at which the gift was included in incoming resources. Donated facilities are included at their estimated value and the corresponding expenditure included under the appropriate heading. All estimates of value of gifts are estimated as the value to the charity of the service or facility received; being the price the charity estimates it would pay in the open market for a service or facility of equivalent utility to the charity.

Donations

Donations and all other receipts from fundraising are reported gross and the related fundraising costs are reported in other expenditure.

29

Legacies

For legacies that can be estimated, and receipt is reasonably assured, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Grants received

Grants are recognised when the conditions of entitlement are met.

Charitable expenditure

Charitable expenditure includes expenditure directly related to the objects of the charity and comprises grants payable, accounted for when the trustees have approved such grant and instruction is given to the charity’s bankers. In addition, costs incurred in transmitting project grants to those projects, and the cost of visits by trustees and staff to assess, monitor and develop the work of these projects is accounted for on an accruals basis. Salary costs for co-coordinators in India, Programme Development Manager, National Policy and Strategy Officer, National Research & Strategy Manager and a proportion of the CEO salary are included as this work is concerned with the development of the management of and enhancement of capacity of the projects supported are also accounted for on an accruals basis.

Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose.

Allocation of operating costs

The charity’s operating costs are accounted for on an accruals basis and are allocated between costs of generating funds, charitable expenditure and governance. Wherever possible the costs are positively identified and specific to the activity, in other cases such as office provision and some staff costs a percentage allocation of total cost is made based upon an estimate of staff time attributable to each activity. The allocations for the year were:

Percentages
CEO
Charitable
58%		 UK Support staff
Marketing &
Finance &
Other costs Depreciation
Comms
Admin
60%
55%
40%
44%
40%
31%
58%
50%
14%
2%
6%
100%
100%
100%
100%
CORF
25%
Governance
17%
100%

Tangible fixed assets

The fixed assets are limited to equipment, furniture and fittings and are capitalised where the purchase cost exceeds £1,000. Depreciation is provided on these assets in equal annual instalments over the estimated lives of the assets as follows:

the assets as follows:
Office Equipment - 4 years
Display Equipment - 4 years
Furniture & fixtures - 5 years

30

Fund Structures

Unrestricted funds are where funds have been received without any conditions from donors. Some unrestricted funds have subsequently been set aside by Railway Children as designated funds where they have been earmarked to fund a specific partner from unrestricted funds.

Where funds have been received from donors for particular purposes these are represented as restricted funds. Transfers are made between restricted funds to represent changes agreed with the donor of the funds.

Foreign Currency

Transactions in foreign currencies are converted at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are converted at the rate of exchange prevailing at the balance sheet date. Exchange rate differences are taken into account in arriving at net incoming resources for the year.

Investments

In the charity balance sheet, investments in the subsidiary are shown at cost less provision for impairments.

Pensions

The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

Operating leases

Rental charges are charged on a straight-line basis over the term of the lease.

Investments in subsidiaries

Investments in subsidiaries are at cost.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of service users.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

31

2 Detailed comparatives for the statement of financial activities

Note
Income from:
Donations and Legacies
3
Charitable Activities
Other trading activities
Investments
Total Income
Expenditure on:
Fundraising
Charitable Activities
Total Expenditure
4
Net Income / (Expenditure)
Reconciliation of Funds
Total funds brought forward
19
Total funds carried forward		 2021
Unrestricted
Restricted
Total
£
£
£
1,926,473
240,197
2,166,670
103,988
2,470,384
2,574,372
150,402
855
151,257
363
7,229
7,592
2,181,226
2,718,665
4,899,891
855,682
50,761
906,443
1,009,572
2,545,665
3,555,237
1,865,254
2,596,426
4,461,680
315,972
122,239
438,211
1,113,095
800,866
1,913,961
1,429,067
923,105
2,352,172

3a Income from donations and legacies

Individual Donations:
General
Legacies
Corporate Donations
Donated services
3b Comparative Income from donations and legacies
Individual Donations:
General
Legacies
Corporate Donations
Donated services		 2022
2021
Unrestricted
Restricted
Total
Total
£
£
£
£
667,272
223,784
891,056
803,571
64,641
-
64,641
83,686
919,712
180,519
1,100,231
1,231,713
46,647
3,000
49,647
47,700
1,698,272
407,303
2,105,575
2,166,670
2021
Unrestricted
Restricted
Total
£
£
£
671,002
132,569
803,571
79,686
4,000
83,686
1,128,085
103,628
1,231,713
47,700
-
47,700
1,926,473
240,197
2,166,670

32

4a Analysis of Expenditure

Charitable Charitable Cost of Governance Support costs 2022 2021
activities raising Total Total
funds
£ £ £ £ £ £
Grants payable (see note 5a) 567,806 - - - 567,806 968,438
UK Staff 602,123 382,756 28,431 695,863 1,709,173 1,451,058
Overseas Staff 682,390 25,830 - - 708,220 712,837
Office & Supplies 186,151 8,266 - 57,045 251,462 212,294
Services 391,978 371,747 12,593 84,693 861,011 656,459
Travel & Accommodation 294,745 19,914 247 5,035 319,941 287,674
Other (30,278) - - - (30,278) 114,009
Depreciation 1,355 - - 774 2,129 11,211
Gifts in Kind 7,074 39,574 - - 46,648 47,700
Sub total 2,703,344 848,087 41,271 843,410 4,436,112 4,461,680
Support costs 513,513 300,734 29,163 (843,410) - -
Governance costs 56,342 14,092 (70,434)
Total expenditure 2022 3,273,199 1,162,913 - - 4,436,112 4,461,680
Total expenditure 2021 3,555,237 906,443 - - 4,461,680
4b Comparative Analysis of Expenditure
Charitable Cost of Governance Support costs 2021
activities raising Total
funds
£ £ £ £ £
Grants payable (see note 6) 968,438 - - - 968,438
UK Staff 360,947 333,623 45,011 711,477 1,451,058
Overseas Staff 674,863 37,974 - - 712,837
Office & Supplies 170,119 9,551 - 32,624 212,294
Services 365,396 208,996 11,610 70,457 656,459
Travel & Accommodation 279,460 8,090 - 124 287,674
Other 114,009 - - - 114,009
Depreciation 7,757 - - 3,454 11,211
Gifts in Kind 15,450 32,250 - - 47,700
Sub total 2,956,439 630,484 56,621 818,136 4,461,680
Support costs 531,682 264,114 22,340 (818,136) -
Governance costs 67,116 11,845 (78,961)
Total expenditure 2020 3,555,237 906,443 - - 4,461,680

33

5a Analysis of Charitable Expenditure by Activity

Grants
India
Kenya
Tanzania
Grants sub total
UK Staff
Overseas Staff
Office & Supplies
Services
Travel & Accommodation
Other
Depreciation
Gifts in Kind
Sub total
Support costs
Governance costs
Total		 Outreach
Shelter
Reintegration
Influencing
Total
Total
2022
2022
2022
2022
2022
2021
£
£
£
£
£
£
97,692
101,210
189,915
9,663
398,480
439,750
-
-
-
-
-
-
47,791
28,447
64,511
28,577
169,326
528,688
145,483
129,657
254,426
38,240
567,806
968,438
50,972
9,127
325,495
216,529
602,123
360,947
158,399
58,340
289,591
176,060
682,390
674,863
37,127
12,090
66,113
70,821
186,151
170,119
71,661
29,256
152,618
138,443
391,978
365,396
56,754
9,714
126,344
101,933
294,745
279,460
(7,943)
(6,616)
(14,112)
(1,607)
(30,278)
114,009
307
74
534
440
1,355
7,757
1,813
1,615
3,170
476
7,074
15,450
369,090
113,600
949,753
703,095
2,135,538
1,988,001
514,573
243,257
1,204,179
741,335
2,703,344
2,956,439
97,746
46,208
228,740
140,819
513,513
531,682
10,725
5,070
25,097
15,450
56,342
67,116
623,044
294,535
1,458,016
897,604
3,273,199
3,555,237

Outreach work includes streetwork, local helplines, association models and child friendly stations. Shelter includes drop in centres, night shelters, government home work and refuge.

Reintegration work includes return home interviews, intensive family work, working with government homes and bio diverse farming.

34

5b Comparative Analysis of Charitable Expenditure by Activity

Grants
India
Kenya
Tanzania
Grants sub total
UK Staff
Overseas Staff
Office & Supplies
Services
Travel & Accommodation
Other
Depreciation
Gifts in Kind
Sub total
Support costs
Governance costs
Total
6 Staff Costs
UK Based Staff
Wages and salaries
National Insurance
Pension costs
UK Based Sub Total
Overseas staff
7 Staff Numbers
The average number of employees w
Project development
Fundraising
Support and administration
UK staff subtotal
East Africa programme staff
India programme staff
Total staff		 Outreach
Shelter
Reintegration
Influencing
Total
2021
2021
2021
2021
2021
£
£
£
£
£
109,834
89,050
232,173
8,693
439,750
-
-
-
-
-
182,831
77,110
197,198
71,549
528,688		 Outreach
Shelter
Reintegration
Influencing
Total
2021
2021
2021
2021
2021
£
£
£
£
£
109,834
89,050
232,173
8,693
439,750
-
-
-
-
-
182,831
77,110
197,198
71,549
528,688
292,665
166,160
429,371
80,242
968,438
15,140
6,386
238,347
101,074
360,947
214,219
109,730
282,636
68,278
674,863
50,676
24,445
66,435
28,563
170,119
91,910
46,464
138,715
88,307
365,396
91,446
40,216
109,975
37,823
279,460
35,586
18,421
48,409
11,593
114,009
2,343
1,331
3,439
644
7,757
4,669
2,651
6,850
1,280
15,450
505,989
249,644
894,806
337,562
1,988,001
798,654
415,804
1,324,177
417,804
2,956,439
143,629
74,778
238,138
75,137
531,682
18,131
9,439
30,061
9,485
67,116
960,414
500,021
1,592,376
502,426
3,555,237
as: 2022
2021
£
£
1,468,507
1,259,621
154,350
124,526
86,316
66,910
1,709,173
1,451,057
708,220
712,837
2,417,393
2,163,894
2022
2021
18
17
17
16
2
2
37
35
35
36
33
29
105
100

Information regarding employees and trustees

*One employee had emoluments in the range of £90,000 - £99,999 (2021 - one), one in the range £80-£89,999 (2021 - one) one in the range £70,000 - £79,999 (2021 - one) and two in the range £60,000 - £69,999 (2021 - three).

*The cost of employing key management personnel including employer's NI and pension contributions weas £493,989 (2021: £521,774)

35

8 Net incoming resources for the year

This is stated after charging:

Operating lease rentals
- Property
- Other
Depreciation
Auditors remuneration
- Audit (excl irrecoverable VAT)		 2022
2021
£
£
16,178
12,701
500
500
2,129
10,521
9,300
9,300

Trustee expenses represents the reimbursed travel and expenses of no Trustees (2021: nil).

9 Operating lease commitments

The charity had annual commitments at the year end under operating leases expiring as follows:

Less than one year
2-5 years
10 Tangible Fixed Assets (Group and Charity)
Cost
At beginning of year
Additions in year
Disposals
At close of year
Depreciation
At beginning of year
Charge for year
Disposals
At close of year
Net Book Value
Group and charity at close of year
Group and charity at beginning of year		 2022
2021
£
£
11,553
21,780
33,250
48,603
44,803
70,383
Charity
Group
Group
Equipment &
Vehicles
Total
Furniture
£
£
£
67,589
38,798
106,387
-
-
-
-
(25,460)
(25,460)
67,589
13,338
80,927
66,296
24,274
90,570
774
1,355
2,129
-
(12,098)
(12,098)
67,070
13,531
80,601
519
(193)
326
1,293
14,524
15,817

36

11 Investments

These consist of £100 of shares in Railway Children Trading Limited and an endowment fund invested for the benefit of work in Inda with a current value of £20,676.

Railway Children Trading Limited
Turnover
Expenditure
Use of Railway Children logo
Use of Railway Children staff
Trading profit / (loss)
Loan interest paid to Railway Children
Profit donated to Railway Children
Net profit for the year
Net assets carried forward at May 31		 2022
£
727,906
(176,532)
(1,000)
(6,000)
544,374
-
(544,374)
-
100		 2021
£
483,594
(86,817)
(1,000)
(5,000)
390,777
-
(390,777)
-
100

Railway Children Trading Company Limited is a 100% subsidiary of Railway Children. During the year £428,560 from Rail Aid, £28,904 from Xmas cards and £26,130 from UK programme activities. Net profit donated to the charity was £380,527 (2021: £380,527) All the Railway Children Trading Company Limited's profits for the year are donated to Railway Children. Payments to Railway Children are regarded as a reduction of the charity's expenditure and cancel out on the consolidated accounts.

12 Taxation

Railway Children Limited is a registered charity and is thus exempt from taxation of its income and gains falling within Section 505 of the Income and Corporation Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year.

13 Railway Children Africa
Turnover
Income from Railway Children
Expenditure
Net assets carried forward at May 31st		 2022
£
202,152
824,892
(1,027,044)
-		 2021
£
396,355
1,174,138
(1,570,493)
-

Railway Children Africa Limited is a 100% subsidiary of Railway Children and income is derived from restricted income from the parent charity with some locally raised restricted income. Railway Children Africa Limited carries out Railway Children's programme of work in Tanzania.

14 Railway Children India
Turnover
Income from Railway Children
Expenditure
Surplus/(Deficit)		 2022
£
516,873
75,156
(610,134)
(93,261)		 2021
£
573,980
27,223
(580,957)
(170,986)

Railway Children India Limited is a section 25 company registered in India. The company operates under the Railway Children trademark.

15 India Liaison Office

This legal entity employs the Railway Children staff in India and is treated as a subisidiary in these accounts. Income for India LO was solely from the charity and amounted to £101,765 (2021: £78,056) and expenditure £97,963 (2021: £60,226).

16 Railway Children parent charity

The parent charity gross income for the year excluding RCTL income is £2,634,732 (2021: £3,467,082) and the net deficit for the year is £867,990 (2021 net deficit: £427,993).

37

17 Debtors and Prepayments
Debtors
Gift aid debtor
Other debtors
Prepayments and accrued income
Railway Children Africa - owed to charity
Railway Children Trading Limited - owed to charity
Total
18 Liabilities: Amounts Falling Due Within One Year
Creditors
Tax and national insurance
Accrued Expenditure
Total		 2022
2021
2022
2021
£
£
£
£
-
-
-
-
25,279
27,814
25,279
27,814
35,627
186,536
2,410
185,135
57,096
13,760
57,096
13,760
-
-
42,534
45,108
-
-
605,224
435,154
Consolidated
Charity
118,002
228,110
732,543
706,971
2022
2021
2022
2021
£
£
£
£
63,782
48,736
35,517
31,415
37,826
26,465
37,826
26,465
156,445
153,357
124,065
103,700
Consolidated
Charity
258,053
228,558
197,408
161,580

19a Analysis of group net assets between funds

Fixed assets
Net current assets
Net assets at the end of the year		 Restricted
Designated
General
Total
Funds
Funds
Funds
Funds 2022
£
£
£
£
-
-
21,102
21,102
1,045,396
797,000
145,517
1,987,913
1,045,396
797,000
166,619
2,009,015

19b Comparative of group net assets between funds

Tangible fixed assets
Net current assets
Net assets at the end of the year		 Restricted
Designated
General
Total
Funds
Funds
Funds
Funds 2021
£
£
£
£
-
-
33,441
33,441
923,065
676,000
719,666
2,318,731
923,065
676,000
753,107
2,352,172

20 Related Parties

During the year there were related party transactions with Railway Children India, Railway Children Africa Limited and Railway Children Ball Limited. Income from Railway Children Ball Limited was £144,755 (2021: £105,595).

Railway Children is registered as a liaison office in India and manages the delivery of the India programme with funding provided entirely via Railway Children. Railway Children India is registered as a section 25 company in India and FCRA registered.

The Railway Children Ball Limited has one Trustee in common with Railway Children and runs an annual fundraising ball.

Railway Children Africa Limited is registered as a company in Tanzania and manages the delivery of the Tanzania programme with most funding provided via Railway Children. Railway Children representatives make up a majority of the board positions.

21 Funds held on behalf of others

The charity is part of an unincorporated association known as the Partnership for Vulnerable Children, formed with with three other charities Childhope, Get Connected and ICT. The association operates a payroll giving scheme on behalf of its members. Railway Children the financial administration for the association.

The sole assets of the association are funds collected not yet dispersed which are held in a separate bank account. The balance on the account at May 31st 2022 was £3,174 (2021: £5,958). This bank account does not form part of these consolidated accounts.

38

22a Movement in Funds
Restricted Funds
Region
Funder
East Africa
Other funders
DfID - UK Aid Match
DfID - UK Aid Direct
India
APPI
Other funders
Honda
UK
Other UK
Total Restricted Funds
Restricted Funds in Deficit
Overall Restricted Funds
Unrestricted Funds
Designated Funds
India
UK
East Africa
Total Designated Funds
General Funds
Total Unrestricted Funds
Total Funds		 Balance at
01/06/2021
£		 Transfers
Balance at
Incoming
Outgoing
31/05/2022
£
£
£
£
Movement in Resources
61,865
468,594
(457,216)
12,221
85,464
(89,353)
-
-
89,353
-
172,700
80,072
(163,419)
(89,353)
-
350,118
295,740
(419,244)
-
226,614
345,309
335,209
(292,286)
10,972
399,204
13,935
11
-
-
13,946
70,824
591,404
(331,108)
-
331,120
925,398
1,771,030
(1,663,273)
23,193
1,056,348
(2,293)
42,712
(51,371)
-
(10,952)
923,105
1,813,742
(1,714,644)
23,193
1,045,396
152,000
294,101
(102,101)
344,000
225,000
29,216
(87,216)
167,000
299,000
69,079
(82,079)
286,000
676,000
392,396
(271,396)
-
797,000
753,067
1,886,814
(2,450,069)
(23,193)
166,619
1,429,067
2,279,210
(2,721,465)
(23,193)
963,619
2,352,172
4,092,952
(4,436,109)
-
2,009,015

Purposes of Restricted Funds

All restricted funds are held for the relief of children and young persons in conditions of hardship and distress who live on or are at risk of running to the streets.

APPI funds are for work to assist street children on railway stations in India PACT: Restricted for the assistance of street children and youth in Tanzania, in deficit as this is funded in arrears. DfID: These funds relate to the assistance of street children in Tanzania.

Purposes of Designated Funds

These are to cover commitments made to partners made for the year ended May 31st 2022, details are contained in the annual report.

22b Comparative Movement in Funds

22b Comparative Movement in Funds
Restricted Funds
Region
Funder
East Africa
Other funders
DfID - UK Aid Match
DfID - UK Aid Direct
India
APPI
Comic Relief
Other funders
Honda
UK
Other UK
Total Restricted Funds
Restricted Funds in Deficit
Overall Restricted Funds
Unrestricted Funds
Designated Funds
India
UK
East Africa
Total Designated Funds
General Funds
Total Unrestricted Funds
Total Funds		 Balance at
01/06/2020
£		 Transfers
Balance at
Incoming
Outgoing
31/05/2021
£
£
£
£
Movement in Resources
22,459
98,620
(26,062)
-
95,017
-
76,699
(166,052)
-
(89,353)
65,258
881,819
(774,377)
-
172,700
312,140
421,870
(383,892)
-
350,118
-
-
-
-
-
268,972
468,801
(384,952)
-
352,821
10,800
3,135
-
-
13,935
51,056
273,943
(251,693)
-
73,306
730,685
2,224,887
(1,987,028)
-
968,544
70,181
493,774
(609,394)
-
(45,439)
70,181
493,774
(609,394)
-
(45,439)
800,866
2,718,661
(2,596,422)
-
923,105
158,011
(5,976)
(35)
152,000
204,000
140,977
(119,977)
225,000
147,016
201,325
(49,341)
299,000
509,027
336,326
(169,353)
-
676,000
604,068
1,844,900
(1,695,901)
-
753,067
1,113,095
2,181,226
(1,865,254)
-
1,429,067
~~39~~
1,913,961
4,899,887
(4,461,676)
-
2,352,172