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2020-09-30-accounts

Charity Registration No. 1059832

Company Registration No. 03220045 (England and Wales)

CHERNOBYL CHILDREN'S PROJECT (UK)

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

CHERNOBYL CHILDREN'S PROJECT (UK)

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees B R Hardwick C McElholm L Murphy (Appointed 1 January 2021) Executive Director L Walker National Treasurer C McElholm Secretary C McElholm Charity number 1059832 Company number 03220045 Principal address Kinder House Fitzalan Street Glosop SK13 7DL Registered office Kinder House Fitzalan Street Glosop SK13 7DL Independent examiner Bache Brown & Co Limited Swinford House Albion Street Brierley Hill West Midlands DY5 3EE Bankers Co-operative Bank Plc 34-38 High Street Solihull West Midlands B91 3TB

CHERNOBYL CHILDREN'S PROJECT (UK)

CONTENTS

Page
Trustees report 1 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 13

CHERNOBYL CHILDREN'S PROJECT (UK)

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 SEPTEMBER 2020

The trustees present their report and financial statements for the year ended 30 September 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The Charities objectives and activities as set out in the Memorandum of Association are:

To promote such charitable purpose or purposes for persons living in Belarus, Ukraine or Western Russia who are suffering as a result of the Chernobyl disaster and in particular but without limiting the foregoing.

To provide holidays and other recreational activities, in the interests of social welfare for children whose health has been affected by the disaster, with the object of improving their conditions of life.

To relieve sickness and preserve and protect the health of such persons.

To educate the public about the health and enviromental effects of the Chernobyl disaster and its implications for the future of nuclear power.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

In November 2019 our Training Co-ordinator Geoff Wright visited Belarus to provide training and support for the final stages of the Unicef funded project to support families with children with disabilities, and for the start of the US Embassy funded project which was based on similar lines, but targeted at new parts of Gomel Region.

In December 2019 Natalia Samoilik, Director of our Partner Organisation in Gomel, ‘Supporting Children Together’ came to the UK to have meetings with Geoff and other trainers in Essex and about the above projects, and the new Unicef funded project due to start in the spring. This aims to remove healthy babies from the Baby Home in Gomel and prevent other young children going into the home, so that it can be repurposed as a Palliative Care Centre. Natasha also met with the Trustees and Management Team to discuss all our projects in Gomel Region.

In January 2020 our Executive Director of the Charity Linda Walker visited Belarus to supervise our projects in Gomel Region.

We have continued to fund “Rodni Kut” our family home for four disabled young people in Rogachev; “Family Home 2000” for adults with physical disabilities at Klimovka; and the Children’s Home Hospice Team in Gomel.

We have also continued to support Zhuravichi Home for Children and Young Adults by employing two part time teachers, and Vikov institution for adults with learning disabilities by employing a teacher.

Godel Technologies continued to support the payment of some of our salaries in Belarus.

Because of Covid restrictions it was not possible to invite children to the UK for recuperative holidays, as we have done every summer for the last twenty five years. It was also not possible to send volunteers out to Belarus.

Volunteers and host families have been very supportive helping to raise funds online whilst our usual fundraising events in the community have not been not possible.

CHERNOBYL CHILDREN'S PROJECT (UK)

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

Financial review

The largest proportion of our income is received through support groups located in various parts of Great Britain. The remainder of our cash income comes from both individual and corporate donors. The Covid restrictions have meant that the Charity has been unable to arrange holidays in the UK. As a result of this, expenditure has not being incurred and also a reduction in costs elsewhere , the Charity has seen it's bank balances increase by £61,487.

It is not the current policy of the Charity to set funds aside as reserves.

It is not the Charity's policy to invest funds for the long term. The Charity's expenditure is seasonal as the recuperative holidays in the United Kingdom and Belarus are mainly during the months of July and August.

Risk Management

A review of the major risks to which the Charity is exposed, as identified by the Trustees, has been carried out and systems have been established to mitigate those risks. We ensure that all host families are DBS checked and we also have a Child Protection Policy in place which all groups are expected to fully adhere to. Our policies and guidelines are updated annually to improve the operation of the Charity and the safety and security of all concerned.

We intend to continue and develop our objectives and activities with the resources made available to the charity.

Structure, governance and management

The charity is a company limited by guarantee, incorporated on 3 July 1996 and registered as a charity on 17 December 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. In the event of the company being wound up members are required to contribute an amount not exceeding £10.

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

J P Gater (Resigned 10 December 2020) M R Whiting (Resigned 16 June 2020) B R Hardwick C McElholm L Murphy (Appointed 1 January 2021)

Recruitment and Appointment of Management Committee

The directors of the company are also Charity Trustees for the purposes of Charity Law. The Management Committee consists of the Trustees, the Executive Director and the National Co-ordinator. Under the Memorandum of Association the number of Trustees shall not be less than three. At each Annual General Meeting one third of the Trustees retire by rotation and are eligible for re-election. If the number of Trustees is not three or a multiple of three, the number nearest to one third shall retire from office.

Organisational Structure

Chernobyl Children's Project (UK) has a Management Committee consisting of the Trustees, the Executive Director and National Co-ordinator.

A scheme of delegation is in place and day to day responsibility for the running of the Charity rests with the Executive Director.

CHERNOBYL CHILDREN'S PROJECT (UK)

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

The trustees report was approved by the Board of Trustees.

B R Hardwick

Trustee Dated: 26 April 2021

CHERNOBYL CHILDREN'S PROJECT (UK)

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF CHERNOBYL CHILDREN'S PROJECT (UK)

I report to the trustees on my examination of the financial statements of Chernobyl Children's Project (UK) (the charity) for the year ended 30 September 2020.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Mr Stephen Dunn for and on behalf of Bache Brown & Co Limited Chartered Certified Accountants Swinford House Albion Street Brierley Hill West Midlands DY5 3EE

Dated: 26 April 2021

CHERNOBYL CHILDREN'S PROJECT (UK)

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Unrestricted
Restricted
funds
funds
2020
2020
Notes
£
£
Income from:
Donations and legacies
3
153,436
12,547
Fundraising events
4
4,455
-
Interest received
5
3
-
Other income
6
22,465
-
Total income
180,359
12,547
Expenditure on:
Raising funds
7
22,624
-
Charitable activities
Holidays
8
-
-
Projects in Belarus
8
32,183
75,851
Total charitable expenditure
32,183
75,851
Total resources
expended
54,807
75,851
Net incoming/
(outgoing) resources
before transfers
125,552
(63,304)
Gross transfers
between funds
(63,784)
63,784
Net income/(expenditure)
for the year/
Net movement in funds
61,768
480
Fund balances at 1
October 2019
9,213
195
Fund balances at 30
September 2020
70,981
675		 Total Unrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
165,983
143,739
35,929
4,455
14,596
-
3
1
-
22,465
4,195
3,899
192,906
162,531
39,828
22,624
25,954
-
-
41,536
5,965
108,034
32,843
115,757
108,034
74,379
121,722
130,658
100,333
121,722
62,248
62,198
(81,894)
-
(81,482)
81,482
62,248
(19,284)
(412)
9,408
28,497
607
71,656
9,213
195		 Total
2019
£
179,668
14,596
1
8,094
202,359
25,954
47,501
148,600
196,101
222,055
(19,696)
-
(19,696)
29,104
9,408

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

CHERNOBYL CHILDREN'S PROJECT (UK)

BALANCE SHEET

AS AT 30 SEPTEMBER 2020

Notes
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Income funds
Restricted funds
16
Unrestricted funds		 2020
£
6,616
72,468
79,084
(7,428)		 £
71,656
676
70,980
71,656		 2019
£
6,096
10,980
17,076
(7,669)		 £
9,407
195
9,213
9,408

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 September 2020.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 26 April 2021

B R Hardwick C McElholm Trustee Trustee

Company Registration No. 03220045

CHERNOBYL CHILDREN'S PROJECT (UK)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

Charity information

Chernobyl Children's Project (UK) is a private company limited by guarantee incorporated in England and Wales. The registered office is Kinder House, Fitzalan Street, Glosop, SK13 7DL.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

CHERNOBYL CHILDREN'S PROJECT (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.

Costs of generating funds comprise the costs associated with attracting vouluntary income and the costs of trading for fund raising purposes.

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for it beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include the audit fees and costs linked to the strategic management of the Charity.

All costs are allocated between the expenditure categories of the statement of financial activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, other are apportioned on an apportioned on a appropriate basis.

1.6 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

CHERNOBYL CHILDREN'S PROJECT (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.8 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
153,436
12,547
Donations and gifts
Charitable foundations
27,575
2,000
Government and local
authorities
30
-
General public
125,831
10,547
153,436
12,547		 Total Unrestricted
Restricted
funds
funds
2020
2019
2019
£
£
£
165,983
143,739
35,929
29,575
1,745
4,685
30
100
-
136,378
141,894
31,244
165,983
143,739
35,929		 Total
2019
£
179,668
6,430
100
173,138
179,668

CHERNOBYL CHILDREN'S PROJECT (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

4
5
6
7		 Fundraising events Fundraising events Fundraising events Fundraising events
Unrestricted Unrestricted
funds
funds
2020
2019
£
£
Fundraising events
4,455
14,596
Interest received
Unrestricted Unrestricted
funds
funds
2020
2019
£
£
Interest receivable
3
1
Other income
Unrestricted Unrestricted
Restricted
Total
funds
funds
funds
2020
2019
2019
2019
£
£
£
£
Gift aid
10,966
4,195
3,899
8,094
Council Grant and CJRS Grant
11,499
-
-
-
22,465
4,195
3,899
8,094
Raising funds
Unrestricted Unrestricted
funds
funds
2020
2019
£
£
Fundraising
Staging fundraising events
4,846
7,453
Other fundraising costs
1,243
2,056
Staff costs
13,730
13,598
Support costs
2,805
2,847
Fundraising
22,624
25,954		 Total
2019
£
8,094
-
8,094
Fundraising
Staging fundraising events
Other fundraising costs
Staff costs
Support costs
25,954
Fundraising

CHERNOBYL CHILDREN'S PROJECT (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

8 Charitable activities

Projects in
Belarus
Holidays Projects in
Belarus
2020
2019
2019
£
£
£
Activities undertaken directly
75,851
35,961
115,757
Share of support costs (see note 9)
27,929
10,652
29,984
Share of governance costs (see note 9)
4,254
888
2,859
108,034
47,501
148,600
Analysis by fund
Unrestricted funds
32,183
41,536
32,843
Restricted funds
75,851
5,965
115,757
108,034
47,501
148,600
Support costs
Support
costs
Governance
costs
2020
Support
costs
Governance
costs
£
£
£
£
£
Management fees
15,523
477
16,000
26,585
415
Belarus premises
4,180
-
4,180
4,180
-
UK premises
8,261
254
8,515
9,314
146
Communications
181
6
187
213
3
Insurance
1,954
977
2,931
1,928
643
Other administrative
635
20
655
1,263
20
Independent examiners
fee
-
1,010
1,010
-
1,010
Accountancy fees
-
1,510
1,510
-
1,510
30,734
4,254
34,988
43,483
3,747
Analysed between
Fundraising
2,805
-
2,805
2,847
-
Charitable activities
27,929
4,254
32,183
40,636
3,747
30,734
4,254
34,988
43,483
3,747		 Total
2019
£
151,718
40,636
3,747
196,101
74,379
121,722
196,101
2019
£
27,000
4,180
9,460
216
2,571
1,283
1,010
1,510
47,230
2,847
44,383
47,230

9 Support costs

CHERNOBYL CHILDREN'S PROJECT (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

11 Employees

The average monthly number of employees during the year was:

2020 2019
Number Number
1 1
Employment costs 2020 2019
£ £
Wages and salaries 13,730 13,598

There were no employees whose annual remuneration was £60,000 or more.

12 Taxation

As a charity, Chernobyl Children's Project (UK) is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity.

13 Debtors

Amounts falling due within one year:
Other debtors
Prepayments and accrued income
14
Creditors: amounts falling due within one year
Other taxation and social security
Accruals and deferred income		 2020
£
5,184
1,432
6,616
2020
£
432
6,996
7,428		 2019
£
4,077
2,019
6,096
2019
£
206
7,463
7,669

CHERNOBYL CHILDREN'S PROJECT (UK)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

15 Retirement benefit schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 October 2018 resources expended 1 October 2019 resources expended 30 September
2020
£ £ £ £ £ £ £
Medicines 607 1,000 (1,412) 195 1,000 (520) 675

Restricted funds represent donations and grants specifically to support organisations in Belarus or projects established by the charity in Belarus. These organisations and projects have been established to support children and young people who are suffering from a variety of medical conditions.

17 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2020
2020
£
£
Fund balances at 30
September 2020 are
represented by:
Current assets/
(liabilities)
70,981
675
70,981
675		 Total Unrestricted
funds
Restricted
funds
2020
2019
2019
£
£
£
71,656
9,213
195
71,656
9,213
195		 Total
2019
£
9,408
9,408

18 Related party transactions

During the year Kinder Management Services Limited charged £16,000 (2019 - £27,000) for the service provided by L Walker as the Executive Director. L Walker has a material interest in Kinder Management Services Limited