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 2021
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 2021
The trustees present their annual report and financial statements for the year ended 30 September 2021.
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
Due to Covid restrictions it was not possible during 2021 for children to come to the UK for recuperative holidays; for volunteers to go to Belarus; or for training and educational exchange visits to take place.
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. During the year we purchased two oxygen concentrators which have enabled young children to leave hospital to be at home with their families.
We have 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. We also provided funding to renovate a building at Zhuravichi so it can be used as a Supported Living Unit.
We have given donations to the Children’s Diabetes Association in Gomel and the Association of Families with Children with Disabilities in Rogachev.
We have provided regular funding to the children’s cancer charity in Minsk ‘Children in Trouble’ and this has enabled them to continue their work supporting children and their parents in the cancer hospital and processing large donations of medicines from the US which go to many different hospitals in Minsk.
Our partner organisation in Gomel, ‘Supporting Children Together’ completed two major projects during the year, which had been funded by Unicef and the US Embassy in Minsk. We have set up a small project to support foster care families in Gomel to follow up the Unicef initiative. Our project focuses particularly on supporting the families who are looking after babies or children with disabilities, and includes training for both parents and professionals.
Godel Technologies continued to support the payment of some of our salaries in Belarus.
Our groups and volunteers have continued to raise funds online
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CHERNOBYL CHILDREN'S PROJECT (UK)
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
Financial review
The largest proportion of our income was received from both individual and corporate donors in the form of both one-off and regular donations. Our charity shop also continues to provide a significant source of income.
The Covid restrictions have meant that the Charity has been unable to arrange holidays in the UK. Expenditure has, however, continued as normal in the funding of our projects in Belarus via our partners Supporting Children Together (SCT) along with the purchase of a new minivan. Nevertheless, the Charity has seen it's bank balances increase by £15,591.
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 normally seasonal as the recuperative holidays in the United Kingdom and Belarus are mainly during the months of July and August. This year, however, expenditure has been mainly the direct funding of our projects in Belarus on a regular basis throughout the year.
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. Our policies and guidelines are updated annually to improve the operation of the chartiy 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) 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.
Organi s ational 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 .
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CHERNOBYL CHILDREN'S PROJECT (UK)
TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
The trustees r eport was approved by the Board of Trustees.
B R Hardwick Trustee Dated: 26 April 2022
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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 2021.
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:
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1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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 FCCA
Chartered Certified Accountants
Swinford House Albion Street Brierley Hill West Midlands DY5 3EE
Dated: 26 April 2022
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CHERNOBYL CHILDREN'S PROJECT (UK)
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2021
| Unrestricted Restricted funds funds 2021 2021 Notes £ £ Income from: Donations and legacies 2 118,621 44,336 Fundraising events 3 - - Interest received 4 6 - Other income 5 24,936 - Total income 143,563 44,336 Expenditure on: Raising funds 6 16,369 - Charitable activities Projects in Belarus 7 32,383 123,014 Total charitable expenditure 32,383 123,014 Total resources expended 48,752 123,014 Net incoming/ (outgoing) resources before transfers 94,811 (78,678) Gross transfers between funds (78,078) 78,078 Net income/(expenditure) for the year/ Net movement in funds 16,733 (600) Fund balances at 1 October 2020 70,981 675 Fund balances at 30 September 2021 87,714 75 |
TotalUnrestricted Restricted funds funds 2021 2020 2020 £ £ £ 162,957 153,436 12,547 - 4,455 - 6 3 - 24,936 22,465 - 187,899 180,359 12,547 16,369 22,624 - 155,397 32,183 75,851 155,397 32,183 75,851 171,766 54,807 75,851 16,133 125,552 (63,304) - (63,784) 63,784 16,133 61,768 480 71,656 9,212 196 87,789 70,980 676 |
Total 2020 £ 165,983 4,455 3 22,465 192,906 22,624 108,034 108,034 130,658 62,248 - 62,248 9,408 71,656 |
|---|---|---|
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.
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CHERNOBYL CHILDREN'S PROJECT (UK)
BALANCE SHEET
AS AT 30 SEPTEMBER 2021
| Notes Current assets Debtors 12 Cash at bank and in hand Creditors: amounts falling due within one year 13 Net current assets Income funds Restricted funds 15 Unrestricted funds |
2021 £ 5,019 88,060 93,079 (5,290) |
£ 87,789 75 87,714 87,789 |
2020 £ 6,616 72,468 79,084 (7,428) |
£ 71,656 676 70,980 71,656 |
|---|---|---|---|---|
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 2021.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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 2022
B R Hardwick C McElholm Trustee Trustee
Company Registration No. 03220045
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CHERNOBYL CHILDREN'S PROJECT (UK)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021
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 a mounts 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.
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CHERNOBYL CHILDREN'S PROJECT (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
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.
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CHERNOBYL CHILDREN'S PROJECT (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
1 Accounting policies
(Continued)
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.
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 Donations and legacies
| Unrestricted Restricted funds funds 2021 2021 £ £ Donations and gifts 118,621 44,336 Donations and gifts Charitable foundations 13,450 31,724 Government and local authorities 11,065 - General public 94,106 12,612 118,621 44,336 |
TotalUnrestricted Restricted funds funds 2021 2020 2020 £ £ £ 162,957 153,436 12,547 45,174 27,575 2,000 11,065 30 - 106,718 125,831 10,547 162,957 153,436 12,547 |
Total 2020 £ 165,983 29,575 30 136,378 165,983 |
|---|---|---|
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CHERNOBYL CHILDREN'S PROJECT (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
3 Fundraising events
| 4 5 6 |
TotalUnrestricted funds 2021 2020 £ £ Fundraising events - 4,455 Interest received UnrestrictedUnrestricted funds funds 2021 2020 £ £ Interest receivable 6 3 Other income UnrestrictedUnrestricted funds funds 2021 2020 £ £ Gift aid 10,523 10,966 Council Grant and CJRS Grant 14,413 11,499 24,936 22,465 Raising funds UnrestrictedUnrestricted funds funds 2021 2020 £ £ Fundraising Staging fundraising events 639 4,846 Other fundraising costs 937 1,243 Staff costs 13,669 13,730 Support costs 1,124 2,805 Fundraising 16,369 22,624 |
|---|---|
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CHERNOBYL CHILDREN'S PROJECT (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
7 Charitable activities
| Activities undertaken directly Share of support costs (see note 8) Share of governance costs (see note 8) Analysis by fund Unrestricted funds Restricted funds Support costs Support costs Governance costs £ £ Management fees 16,602 192 Belarus premises 4,180 - UK premises 7,706 89 Communications 155 2 Insurance 1,611 806 Other administrative 717 8 Independent examiners fee - 580 Accountancy fees - 860 30,970 2,537 Analysed between Fundraising 1,124 - Charitable activities 29,846 2,537 30,970 2,537 |
2021 £ 16,794 4,180 7,795 157 2,417 725 580 860 33,508 1,124 32,383 33,507 |
Projects in Belarus Projects in Belarus 2021 2020 £ £ 123,014 75,851 29,846 27,929 2,537 4,254 155,397 108,034 32,383 32,183 123,014 75,851 155,397 108,034 Support costs Governance costs 2020 £ £ £ 15,524 476 16,000 4,180 - 4,180 8,261 254 8,515 181 6 187 1,954 977 2,931 635 20 655 - 1,010 1,010 - 1,510 1,510 30,735 4,253 34,988 2,805 - 2,805 27,929 4,254 32,183 30,734 4,254 34,988 |
|---|---|---|
8 Support costs
Governance costs includes payments to the independent examiner of £ 580 (2020 - £ 1,010 ) for the examination fees.
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CHERNOBYL CHILDREN'S PROJECT (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
10 Employees
The average monthly number of employees during the year was:
| 2021 | 2020 | |
|---|---|---|
| Number | Number | |
| 1 | 1 | |
| Employment costs | 2021 | 2020 |
| £ | £ | |
| Wages and salaries | 13,669 | 13,730 |
There were no employees whose annual remuneration was £60,000 or more.
There were no employees whose annual remuneration was more than £60,000.
11 Taxation
As a cha r ity, 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.
12 Debtors
| Amounts falling due within one year: Other debtors Prepayments and accrued income 13 Creditors: amounts falling due within one year Other taxation and social security Accruals and deferred income |
2021 £ 3,472 1,547 5,019 2021 £ - 5,290 5,290 |
2020 £ 5,184 1,432 6,616 2020 £ 432 6,996 7,428 |
|---|---|---|
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CHERNOBYL CHILDREN'S PROJECT (UK)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021
14 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.
15 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 2019 | resources | expended | 1 |
October 2020 | resources | expended | 30 September | |||
| 2021 | |||||||||||
| £ | £ | £ | £ | £ | £ | £ | |||||
| Medicines | 195 | 1,000 | (520) | 675 | 1,000 | (1,600) | 75 |
Restricted funds represent donations and grants specifically to support organi s ations in Belarus or projects established by the charity in Belarus. These organi s ations and projects have been established to support children and young people who are suffering from a variety of medical conditions.
16 Analysis of net assets between funds
| Unrestricted funds Restricted funds 2021 2021 £ £ Fund balances at 30 September 2021 are represented by: Current assets/ (liabilities) 87,714 75 87,714 75 |
TotalUnrestricted funds Restricted funds 2021 2020 2020 £ £ £ 87,789 70,980 676 87,789 70,980 676 |
Total 2020 £ 71,656 71,656 |
|---|---|---|
17 Related party transactions
During the year Kinder Management Services Limited charged £14,000 (2020 - £16,000) for the service provided by L Walker as the Executive Director. L Walker has a material interest in Kinder Management Services Limited
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