OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

REGISTERED COMPANY NUMBER: 03344762 (England and Wales) REGISTERED CHARITY NUMBER: 1067313

Report of the Trustees and

Financial Statements

for the Year Ended 31 March 2021

for

INTERCOUNTRY ADOPTION CENTRE

Haines Watts Chartered Accountants and Statutory Auditor New Derwent House 69-73 Theobalds Road London WC1X 8TA

INTERCOUNTRY ADOPTION CENTRE

Contents of the Financial Statements for the year ended 31 March 2021

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 10
Statement of Trustees' Responsibilities 11
Report of the Independent Auditors 12 to 14
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow Statement 17
Notes to the Cash Flow Statement 18
Notes to the Financial Statements 19 to 25
Detailed Statement of Financial Activities 26

INTERCOUNTRY ADOPTION CENTRE

Reference and Administrative Details for the year ended 31 March 2021

Trustees A K Ansell
D H Gray
B J Hudson
J A P Mcdougall
F E Petterson (resigned 3/8/2020)
K L Samwell-Smith (resigned 27/4/2021)
G A Shaw
N D Sieve
Registered office 22 Union Street
Barnet
Hertfordshire
EN5 4HZ
Registered company number 03344762 (England and Wales)
Registered charity number 1067313
Auditors Haines Watts
Chartered Accountants and Statutory Auditor
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA
Bankers CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
Metro Bank
Borehamwood Shopping Park
Unit 3E
Borehamwood
Hertfordshire
WD6 4PR
Tsesnabank
Karagandinskiy Branch
7/4 Chkalova St.
Karaganda
Kazakhstan

Page 1

INTERCOUNTRY ADOPTION CENTRE

Report of the Trustees for the year ended 31 March 2021

The Trustees of the charitable company are pleased to present their report together with the audited financial statements for the year ended 31 March 2020. For the purpose of these financial statements, the directors have been referred to as Trustees of the charitable company.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association, 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) (effective 1 January 2015)".

Page 2

Report of the Trustees for the year ended 31 March 2021

INTERCOUNTRY ADOPTION CENTRE

Objectives and activities

The Intercountry Adoption Centre (IAC), hereafter referred to as 'the charity', is a Voluntary Adoption Agency (VAA) specialising in international adoption. It also provides UK adoption services; adoption support services and advises local authorities on outbound permanence case work. The charity is unique across the UK in its focus.

The charity is registered with Ofsted, the regulatory body in England, to provide intercountry, domestic and adoption support services.

IAC provides information, advice, preparation, assessment, and support for the general public through subscription and service level agreements with their home local authorities. Prospective adopters deemed suitable to adopt are supported through the matching and placement process with specific children from across the world, including the UK. The charity is accredited as an Adoption Agency by the central adoption authorities of India, the Philippines, China and Kazakhstan, and has working agreements with Bulgaria and South Africa. It functions as a foreign adoption partner agency in respect of these six countries. Applicants are free to adopt from whichever country they choose, so long as: i) they meet the eligibility criteria of that country; ii) they meet the eligibility criteria of England, iii) they are approved as suitable to adopt in this country and iv) the country is not closed to the UK.

Aims and activities

IAC is a unique VAA in the UK, as it is the only one with a specialist and primary focus on the provision of intercountry adoption services, and it is the only one to have been accredited by authorities in States of origin from which children are placed. Over 90% (Department for Education data) of all overseas adoptions in England are now conducted through IAC. Whilst the charity is situated in England and works closely with the government of England, it has good working relationships with the governments of Scotland, Wales and Northern Ireland.

The charity has provided a UK (domestic) adoption special programme since varying the terms of its registration with Ofsted in 2012. It aims to provide well prepared, thoroughly assessed and appropriately supported adopters for children who cannot be cared for in their family of origin, from anywhere in the UK.

IAC was adjudged by Ofsted to be an 'outstanding' adoption agency following inspections in 2014 and 2017 and again in 2020 following the change of CEO.

IAC is the lead agency in the Intercountry Regional Adoption Agency (ICRAA) for England which launched in November 2017. IAC works collaboratively under bilateral agreements with other VAAs including Adoption Matters, ARC Adoption North East and Nugent Adoption, to deliver intercountry adoption services across England. New partners are actively being pursued to further develop the reach of the ICRAA as a national service in order to better support our local authority partners and better serve all prospective intercountry adoption applicants across the country.

IAC continues to offer services to regional adoption agencies (RAAs) in England through service level agreements and local authorities in Wales through subscription services. The charity provides adoption support services to adoptive parents and their children directly, and through arrangements with other adoption agencies and adoption support agencies. It aims to deliver excellence across all services and during the financial year has raised funds to expand these support services. This work backs the agency's ethos, adoption is for life, and so is IAC's support.

IAC networks with and lobbies relevant government departments in furtherance of its objects and in pursuit of improved services for those affected by adoption and permanence, particularly internationally. As members of CVAA UK, the consortium of voluntary adoption agencies, IAC's position is strengthened through collaboration and collective voices. IAC's CEO has sat on CVAA's Board of Trustees since July 2019 and now is Vice Chair, and as a member of the government's Adoption & Special Guardianship Leadership Board since May 2021. He is also a member of CFAB's UK branch of International Social Services) Cross Border Child Safeguarding Working Group.

IAC has also forged links abroad, as described at the end of the report, which inform and enhance the intercountry adoption work of the Agency. IAC aims to achieve the best outcomes for all children who are placed for adoption.

IAC's unique information and advice line service for adoptive families, adopted people and adoption and permanence professionals is supported by a sound information database and appropriately qualified and experienced advisors and facilitators, some of whom have personal experience of adoption. The Outbound Permanence Service also produces guidance and literature to better inform care planning, assessments, and the preparation of children and prospective carers.

Page 3

INTERCOUNTRY ADOPTION CENTRE

Report of the Trustees for the year ended 31 March 2021

IAC's service level agreements offer the following for local authorities and regional adoption agencies:

IAC's services aim to ensure that the potential life-long needs of all children placed for adoption and permanence are understood, and that the ethnic, cultural, religious and linguistic heritage of the children is fully recognised and positively valued. The services are also informed by the outcomes of research, by practice wisdom, by the perspectives of all parties to the adoption circle and by training which the agency provides for its workforce. With almost all children being placed by IAC being of Black, Asian or Minority Ethnic backgrounds, the need to deliver services that are non-discriminatory and anti-racist is a high priority. Particular regard is given to IAC's workforce being representative of the children and families the charity seeks to serve.

IAC prides itself in having a diverse workforce, to reflect the backgrounds of many of the children and families we work with. Applications for employment by people with disability are always fully considered, bearing in mind the aptitudes of the applicant concerned. It is the policy of the charity that the training, career development and promotion of people with disability should, as far as possible, be identical to that of other employees.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake and began a formal governance review during this financial year focussing on equity, diversity and inclusion. Work has been undertaken by Trustees and wider workforce on the implications of Black Lives Matter and the impact of racism on children and families we work with, as well as our workplace.

Information or matters of concern to employees is communicated in a range of ways both in person and in reports which seek to achieve a common awareness on the part of all employees of the financial and demographic factors affecting the charity's performance.

Strategic report and the impact of Covid 19

The whole of this period passed with the UK in various stages of pandemic related restrictions or lockdowns. The IAC workforce has therefore been working remotely throughout this period. The charity has been encouraged by services being maintained, and in some cases, e.g., adoption support, growing. For vulnerable children, many of whom have additional needs, support is essential if they are to thrive.

With the whole world experiencing restrictions in travel, 2020 saw record numbers of approved families seek to change their approval to the UK and be matched with children domestically. Those choosing to remain on waiting lists abroad faced longer waits in most cases.

Throughout the pandemic, the Leadership Team at the charity has continued to communicate with the workforce on a regular basis to ensure they were kept informed with any changes pending and that the work of the charity continued to be delivered to a high standard. An end of week e-mail from the CEO has now become standard practice. The Trustees also continued to work closely with the charity during this period with more frequent meetings and regular check-ins at all levels of the organisation.

Page 4

Report of the Trustees for the year ended 31 March 2021

INTERCOUNTRY ADOPTION CENTRE

IAC was fortunate to benefit from three rounds of central government Covid-19 funding for the voluntary sector. This, along with furlough payments and reduced operating costs during this period, meant that the charity was able to maintain a steady cash flow and meet its financial obligations without having to make any staff redundant. The grant funding also aided recovery in activity during periods when restrictions were relaxed and as the charity prepared for lockdown to end in 2021.

Whilst the charity has continued to evolve and innovate its services and delivery, focus on longer term strategy has been challenging due to the number of uncertainties connected to its work and the reliance on other countries emerging from lockdown and resuming normal activities. As it stands the charity does not expect intercountry linking, matching and placement activity to fully recover until the end of 2022, or even early 2023.

Changes in ways of working and service delivery have caused the charity to reflect on what it needs in place to deliver impact effectively and also the best use of its financial resources. Lowering operating costs, including office space, for example are areas where changes can be made and are being planned for, and this will allow financial resources to be diverted to services.

The impact of Covid-19 on IAC's children and families has been very real and informed the work and direction of the charity. One prospective kinship adopter sadly passed away after contracting the virus and others were left with orphaned family members in India when the second wave hit in 2021. With intercountry adoption being the only legal, and expensive route, for such children to safely join their families in the UK. The charity's Trustees supported the decision that IAC should begin lobbying for change in this area of practice and that a Covid Kinship Bursary should be launched to subsidise some of the costs that prospective kinship adopters face unexpectedly in such circumstances.

Page 5

INTERCOUNTRY ADOPTION CENTRE

Report of the Trustees for the year ended 31 March 2021

Strategic report

Achievement and performance

2021 has seen the charity roll out and embed the strategic and staffing review which began in 2020 and was consulted on extensively across the workforce. This has allowed for the creation of additional roles, such as an Assistant Director post to support the Operations Director, in recognition of the growing demand on services. The charity has continued to be active across the sector with the CEO becoming Vice Chair of the Board of the CVAA (Consortium of Voluntary Adoption Agencies) and joining the governments Adoption & Special Guardianship Leadership Board (ASGLB).

The Black Lives Matter movement has also caused the charity to strengthen its commitment to meeting the needs of the children we place for adoption, and so a programme of work across the organisation and workforce has continued to ensure that the charity embeds and delivers services that are equitable and rooted in anti-racist practice. The charity remains the only adoption agency in the UK (statutory and voluntary) headed by a Person of Colour and led by a majority BAME executive team, and so is in a strong position to share learning across the sector.

Despite the challenges posed by the pandemic, the year has been busy for the charity, and it has been able to maintain its overall financial position. As reported, this has been buoyed by English government grants but also by trust and grant fundraising, which is now increasing since the charity began working with an experienced fundraising consultant.

Overall activity remained on target overall through there were significant reductions in certain areas, for example people attending information sessions and children arriving in the UK from abroad.

Between 1 April 2020 and 31 March 2021:

In line with our commitment to adoption support being a growing area overall we offered adopters 25% more courses during this period. These were all delivered virtually. Additional courses are also planned for 2022. With the focus on growing IAC's adoption support offer this is likely to require more staffing and will need to be monitored in the coming year especially if any of the courses return to being offered in person which adds additional demands on business support required as more practical aspects that generate work as in setting up of room, refreshments, lunch, ordering of stock. The charity will continue to fundraise for investment in such growth.

All adoption preparation courses and adoption support workshops have continued to be delivered virtually and some have even been enhanced by the fact that family and friends abroad can now attend the session. The majority of the short courses work incredibly well in the virtual format and offers flexibility for attendees which has seen increased attendance. The charity was also grateful for funding from the National Lottery Community Fund which enabled it to invest in developing bespoke digital support services with the Adopter Hub.

The Board of Trustees wishes to express its continuing thanks and admiration to the entire workforce, employed, sessional and volunteers, for their continued outstanding achievements, particularly during the pandemic period. They also express their deep gratitude to Frances Petterson and Katherine Samwell-Smith, who both stepped down as trustees after long successful tenures.

Page 6

Report of the Trustees for the year ended 31 March 2021

INTERCOUNTRY ADOPTION CENTRE

The Leadership Team (executive team) wishes to express its thanks to the Board of Trustees for their stewardship and support, to the employees and contractors who work for the charity, including our Chairs of Adoption Panel, Fundraiser, Research Consultant, Medical & Legal Advisors and Safeguarding Advisor. Without this inspiring and dedicated workforce, the charity would not be what it is today.

The Board of Trustees and Leadership Team also wishes to express their special thanks to CVAA for their support during this challenging period and to the Department for Education for their support via their central and intercountry adoption teams, and for providing grant funding.

The charity also expresses gratitude to our funders of adoption support services during this period: " The National Lottery Community Fund

Plans for the future

In 2019 IAC launched its three-year strategy for 2019-2022 'Thriving at 25' focussed on four strategic aims:

  1. A stronger organisation

  2. A stronger identity

  3. Growing the organisation

  4. Developing new income generation stream

During this year the focus on the overall strategy has been difficult to maintain, but despite this the overall aims and objectives have continued to inform decisions.

In April 2021 one of our longest serving Trustees of 20 years, Katherine Samwell-Smith, stepped down and took a two day a week fixed term contract to undertake some project work with adopted people: children and adults. Her unique experience of being an intercountry adopted person made them ideal for this role. This emerging focus of practice will be central to the work of the charity in the future.

The charity has also invested in developing its safeguarding policies and procedures during this period and retained a safeguarding consultant to work alongside the management team when the need arises.

The charity has also continued to be tuned into the international debates in adoption practice through its membership of Euradopt; virtual attendance and presentation of research at ICAR7 (International Conference on Adoption Research) and attendance; virtual presentation at CFAB's International Child Protection Conference and virtual presentation of therapeutic practice at the 16th Philippines Global Consultation on Child Welfare Services. These events have significantly enhanced the charities global presence and created opportunities to explore collaborations and new research opportunities.

As IAC moves into 2022, its 25th anniversary year, a full review of the strategy will take place. At the time of writing, it looks likely that a full year of consolidation post-pandemic will be required so a new organisational strategy will not be launched until 2023.

Page 7

Report of the Trustees for the year ended 31 March 2021

INTERCOUNTRY ADOPTION CENTRE

Financial review

Income for the year increased to £2,717,580 from £1,940,496 in 2020, giving a net gain of £692,189 (2020: net loss of £230,422). Expenditure levels were similar to the previous year. The income for 2020/21 was boosted by the central government funding.

Principal Funding Sources

Following 2020, IAC continued to experience a reduced level of income from Intercountry adoptions due to the pandemic which resulted in lockdowns and a halt in international travel. However, as a number of families switched to the UK (domestic) Special Programme, this increased income by 250% to £535,294 (2020: £213,224). Income from Service Charges for core services delivered to intercountry adopters reduced by 7% to £997,616 (2020: £1,075,867) in the period. Excluding the central government grant, this accounts for nearly half of total income, with the UK Special Programme making up another 24%.

The other major income stream from subscribing agencies and other local authorities, which accounts for approximately a third of income, increased in the period by 2.6%.

The central government grant came to £515,610 for the year.

Income from other fundraising activities was £37,033 (2020: £14,952). A majority of this income was from non-government grants. The Trustees express their gratitude to all donors.

In April 2020, IAC secured a new facility of £100,000 from CAF Venturesome, split between a 5 year repayment facility (Facility A), and a second £50,000 standby facility (Facility B), available to be drawn until 30 April 2021 subject to meeting certain criteria relating to fundraising and marketing plans.as well as performing in line with projections. This was added to an existing remaining facility of £109,335. To date both Facility A and B have been drawn down.

As at 31st March 2021 the loan balance was £97,310 (see notes 12 to 14), this excludes Facility B (£50,000), which was drawn down in July 2021. The 2018 loan balance will be repaid by June 2022 and Facilities A and B will both be repaid by March 2025.

Reserves

At 31 March 2021, unrestricted reserves showed a surplus of £251,360 (2020: £440,829 deficit), following the net gain in the period. There were no restricted reserves. (2020: Nil).

Although the new financial year has been affected by Covid 19, total income for the period to date has held up well. Intercountry activity has remained strong throughout. There has though been a significant change to the cost base. As soon as Covid 19 impacted, a review was instigated, and the cost base has been significantly reduced including use of the Government furlough scheme. This has ensured a surplus in the year to March 2021. Whilst it remains a challenge to complete Intercountry adoptions, more have switched to the UK (domestic) Special Programme. In addition, three significant grants had been secured from central government emergency funding for charities. The combined effect has enabled the Charity to increase both reserves and cash which will ensure the medium-term viability of the charity.

The Trustees have determined that the reserves target should be at the level of three months' committed expenditure. This wasn't achieved during the last financial year due to the challenging conditions caused by the pandemic. However, 2021 has seen a turnaround from a overall negative reserves position at the end of 2020 to a positive reserves position by the end of 2021.

Risk Management

Procedures are in place to ensure compliance with health and safety of staff, volunteers, clients and visitors to the organisation. This was further enhanced this year by the creation of a Facilities Manager function. The charity has the appropriate level of insurance to meet its obligations in respect of employees, contractors and members of the public and otherwise has a business continuity plan to cover extreme eventualities.

The Trustees have assessed major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to such major risks.

Page 8

Report of the Trustees for the year ended 31 March 2021

INTERCOUNTRY ADOPTION CENTRE

Legal and administrative information

Intercountry Adoption Centre (IAC) was incorporated under its original name Overseas Adoption Helpline on 26 March 1997 as a private company limited by guarantee with the company number 3344762. It has no share capital, but each member (that is, the directors of the company, also known as trustees) undertakes, in the event of winding up, to contribute up to £10 towards the cost and expenses of winding up. The company was registered as a charity, number 1067313, with the Charity Commissioners on 9 January 1998.

The company was established under a Memorandum of Association which determines the objects and powers of the charitable company and is governed under its Articles of Association. The governing documents were last amended on 9 January 2014 to reflect borrowing powers. A further review is planned.

The charitable company was registered with the Commission for Social Care Inspection (CSCI) as an Adoption Support Agency (ASA) on 23 March 2006.

On 7 November 2008 the charitable company was registered as a Voluntary Adoption Agency (VAA) with the Office for Standards in Education, Children's Services and Skills (Ofsted), and simultaneously relinquished its ASA registration. The VAA Registration Number is SC386048. In April 2012, the terms of the Agency's registration were extended to include domestic adoption. Satwinder Sandhu is registered with Ofsted as the Responsible Individual for the VAA and Irene Levine is registered as the Manager.

Intercountry Adoption Centre amended its trading name to 'IAC - The Centre for Adoption' from spring 2015 to better reflect the diversification of its activities.

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

Barbara Hudson (Chair) David Gray (Treasurer) Katherine Samwell Smith (resigned 27.4.21) Anastasia Ansell Gabrielle Shaw Frances Petterson (resigned 3.8.20) James McDougall Nick Sieve

Organisational Structure

The Board of Trustees meets quarterly and is responsible for the strategic direction and policy of the charity and for monitoring the management and outcomes of services. During the Covid-19 pandemic meetings have been held virtually and more frequently, particularly in the early days of the pandemic. Board members are drawn from a variety of professional backgrounds relevant to the work of the charity. The Chief Executive (who is also the Responsible Individual of the VAA registered with Ofsted), Operations Director and the Finance Director also sit on the Board but have no voting rights. The function of the Board is supported by the Executive Assistant, who also provides secretarial support.

The organisation is currently undertaking an external governance review focusing on issues around equity, diversity and inclusion. The purpose of this review is to ensure that the charity is following best practice.

Page 9

INTERCOUNTRY AOOPTION CENTRE Report of the Trustees forthe y¢ar ended 31 March 2021 Structure. gov•rnanGe and manag¢ment A scheme of delegation 15 In place and day to day responsibility for the prwgon of the seNce5 lest5 Wth the Chief Executive. who Is responsible for ensunng that the charrty ddivers the swwces speafied and that key performance indicators are met. He Is as￿Sted by the Finance OirectLY and Operations Director and a team of operational rnanagers who report to the OperatI￿S DI[￿tOr. The operationa managers meet. at least ￿nuallY. wrth the Trustees. IAC operates frorn Barnet. north L(￿dOn However. seMces are ￿mMiSsiOned by local authorities and other organisations throughoul the UK. Servtces are. therefofe. on ocragon. ddivwed offsrte IAC dso has piogrammes In the six States of ongin where rt Is acu&11t￿ or has workj.ng agreement. In re5rrtt of Kazakhstan, this ne¢essitat8s having an adoption representatlV8 office In that County The Agency is as&sted by a multrthstspginary Admscry Panel, whose T￿￿nber5 are (Xms￿ted when requ1red. The panel currently comprises legal advisors. In￿lie81 admsors. notary puNic. researeh and lrterature and human resources 8dwsors. IAC'S 'central list, from which Its Adoption Panel is drawn has 16 rn￿nberS of dwerse heritage. of whom many have personal experience of adoptron. in addrtI￿ to the Panel's legal. rytedical and Agency Panel Ad￿sOrS IAC'S social workers are experience(l in ¢knnesbc and Inlwcountry ad0K￿.0n. SL¥ne are also adoptive parents and a Sl9nific3nt n(Jmber were raised overseas and have dir￿1 experience of mNJratKTrn. Relawonships wlth other organlsatlons and rdat¢d parties IAC works in O￿laborab.0n wth a raThJe of organisations and b(Mlies both in the UK and in States ol ongin overseas It does this through accredrtation, through working agreements. seNce level ayeemen¢s and subscription services The ICARAA for England piowdes its swyKes through C￿la￿atIon Under￿￿n￿l by blateral agreernents wth other vtsluntary adoption agencies IAC Is a rn￿ber of a number of umbrella org3nis3tions. These indude the Consortium of Voltmtary Adoptson Agencies. the Consortium of A¢Joption Suppoyt Agencies. Coram8AAF and the South East Post Adoption Nelwork. IAC Is also a member of NCVO antl Euradopt. thè as5(￿la￿on of Ewopean a(£re(Irt￿ ad(ption agen￿eS IAC'S Founder Is a member of the Executive Board of Euradopt and 15 the UK repre$￿tatiVe on the Countsl Of Euradopt. The Chief Executive is a member ol Acevo. Auditors In a¢Lordance with the cc¥mpany's artides. a re501ub.on wop)sing that audrtots. Hanes Watts. be reappoint￿ as auditors ol the company wll be put at a General Meeting. Thi5 report has been prepared in actofdance wth the prows10￿ relating lo smal eompanies within Part 15 of the Companie5 Act 2(th. Report of the Iruslees Incorporating a strategsc report. approved by ordw of the board of trustees. as the Cornpany director5, on and signed ￿ the board's behalf by". Tru Page 10

Statement of Trustees' Responsibilities for the year ended 31 March 2021

INTERCOUNTRY ADOPTION CENTRE

The Trustees, who are also the directors of Intercountry Adoption Centre for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the Trustees are required to:

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

Page 11

Report of the Independent Auditors to the Members of Intercountry Adoption Centre

Opinion

We have audited the financial statements of Intercountry Adoption Centre (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Auditors' 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 the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed within the accounting policies note.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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:

Page 12

Report of the Independent Auditors to the Members of Intercountry Adoption Centre

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 Report of the Trustees.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Our 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 a Report of the Independent Auditors 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.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, the Charities Act 2011 and UK tax legislation. The charity is regularly inspected by Ofsted. The latest full inspection was carried out in January 2020 and the overall judgement by Ofsted was outstanding.

Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 13

Report of the Independent Audltors to the Memb•rs of Intercouniry Adoptlon Centrg Us• of our report This report is made solely to the tharitable companys metnbers. as a body, in accordanTr with Chapter 3 of Part 16 of the Cornpanies Act 2006. Our audit work has been undertaken 50 that we might slate to the charstable company's members those rn8ttèrs we are required to state to them In an audilors, report and for no other purpose. To the fullest extent permitted by law, we do not 8CC8Pt or 8S5ume responsibility to anyone other than the charitabl8 company and the ¢haritsb58 company's members as a body. for our audit work. for this Eport, or for the opinions we have formed. Mrs Jane Wi115 Isenior Statutory Auditorl for and on behalf of Haines Watts Chartered Accountants and Statutory Auditor New Derwent Hous 6¥73 Thoobalds Road London WCIX 8TA Datè.. 0811212021 Page 14

INTERCOUNTRY ADOPTION CENTRE

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2021

Unrestricted
fund
Notes
£
Income from
Donations and legacies
3
37,033
Charitable activities
4
Services to adopters
904,753
Fees and services to professionals
1,179,091
Other income
5
596,703
Total
2,717,580
Expenditure on
Raising funds
Raising donations and legacies
8,519
8,519
Charitable activities
6
Charitable activities
2,016,872
Total
2,025,391
NET INCOME/(EXPENDITURE)
692,189
Reconciliation of funds
Total funds brought forward
(440,829)
Total funds carried forward
251,360		 Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-
-		 2021
Total
funds
£
37,033
904,753
1,179,091
596,703
2,717,580
8,519
8,519
2,016,872
2,025,391
692,189
(440,829)
251,360		 2020
Total
funds
£
14,953
1,152,125
773,350
68
1,940,496
3,684
3,684
2,167,234
2,170,918
(230,422)
(210,407)
(440,829)

The notes form part of these financial statements

Page 15

INTERCOUNTRY ADOPTION CENTRE Balance Sh•et 31 March 2021 2021 Total fund$ 2020 Totsl nds Unr•strl¢t¢d fund R•strlct•d fund Fixed assets Tangible assets 10 9.014 9.014 6,041 Current assets Debtors Cash at bank 352,795 788.444 352,795 788,444 406.365 43.086 1.141.239 1.141.239 449,451 Credltors Amounts falling due within one year 12 1823.5981 1823,5981 1844.H81 N•t curr•nt ass•tsllliabilitiesl 317.641 317.641 394.9971 Total assets less ¢urr¢nt Ilabllltl¢s 326.655 326.655 1388.9561 Credltors Amounts falling due after more than one year 13 175.2951 175,2951 151.8731 NET ASSETSIILIA8tUTIESI 251.360 251.380 440,8291 Fund$ unrestrict￿ funds.. General fund 16 251.360 440.8291 Total funds 251.360 440.8291 The nancial Stat￿entS were app¥oved by the Board of Tr¢Jstees and authorise(I for issue on and were signed cffi rts behaff by. 70 Trustee The notes form part of these fina￿$81 statgne¥)ls Page 16

INTERCOUNTRY ADOPTION CENTRE

Cash Flow Statement

for the year ended 31 March 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flows from financing activities
New loans in year
Loan repayments in year
Net cash provided by/(used in) financing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2021
£
714,050
714,050
(8,540)
-
(8,540)
50,000
(10,152)
39,848
745,358
43,086
788,444		 2020
£
(118,245)
(118,245)
(848)
68
(780)
-
(45,304)
(45,304)
(164,329)
207,415
43,086

The notes form part of these financial statements

Page 17

INTERCOUNTRY ADOPTION CENTRE

Notes to the Cash Flow Statement for the year ended 31 March 2021

1. Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Decrease in debtors
(Decrease)/increase in creditors
Net cash provided by/(used in) operations		 2021
£
692,189
5,567
-
53,570
(37,276)
714,050		 2020
£
(230,422)
5,981
(68)
96,079
10,185
(118,245)

2.

Analysis of changes in net (debt)/funds

At 1/4/20 Cash flow At 31/3/21
£ £ £
Net cash
Cash at bank 43,086 745,358 788,444
43,086 745,358 788,444
Debt
Debts falling due within 1 year (5,589) (16,426) (22,015)
Debts falling due after 1 year (51,873) (23,422) (75,295)
(57,462) (39,848) (97,310)
Total (14,376) 705,510 691,134

The notes form part of these financial statements

Page 18

INTERCOUNTRY ADOPTION CENTRE

Notes to the Financial Statements for the year ended 31 March 2021

1. Charity information

Intercountry Adoption Centre is a private company limited by guarantee incorporated in England and Wales. The registered office is 22 Union Street, Barnet, Hertfordshire, EN5 4HZ.

2. Accounting policies

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. The Trustees have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Trustees have taken into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Trustees have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts

Government grants

Government grants are not recognised until there is reasonable assurance that the entity will (a) comply with the conditions attached to them and (b) the grants will be received. The company chooses to recognise grants based on the accrual model. Grants related to income are presented as part of profit or loss, under a general heading of 'other operating income'.

In the year the company received £515,610 from the Department for Education and this has been recognised in the statement of income and expenditure account under donations and legacies.

Key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates in determining the carrying amounts of certain assets and liabilities. Management makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The management's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically. This disclosure excludes uncertainty over future events and judgement in respect of measuring financial instruments.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

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 the receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income from grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.

Page 19

INTERCOUNTRY ADOPTION CENTRE

Notes to the Financial Statements - continued for the year ended 31 March 2021

2. Accounting policies - continued

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

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.

Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Tangible fixed assets

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

Fixtures and fittings - 33% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Employee benefits

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

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Governance costs

Governance costs include costs of the preparation and examination of the statutory accounts, the costs of trustee meetings and the cost of any legal advice regarding governance or constitutional matters.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the charity becomes a party to the contractual provisions of the instrument.

Other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the charity will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the charity's cash management.

Page 20

INTERCOUNTRY ADOPTION CENTRE

Notes to the Financial Statements - continued

for the year ended 31 March 2021

2. Accounting policies - continued

Financial instruments

Financial liabilities and equity instruments issued by the charity are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities. Equity instruments issued by the charity are recorded at the proceeds received, net of direct issue costs.

3. Donations and legacies

Gifts and donations
4.
Income from charitable activities
Activity
Services to adopters
Services to adopters
Fees and services to
professionals
Fees and services to professionals
5.
Other income
Interest received
Other Income
Government grants
6.
Charitable activities costs
Charitable activities
7.
Net income/(expenditure)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets
Share of support costs		 2021
£
37,033
2021
£
904,753
1,179,091
2,083,844
2021
£
141
80,952
515,610
596,703
2021
£
5,567
153,465		 2020
£
14,953
2020
£
1,152,125
773,350
1,925,475
2020
£
68
-
-
68
Direct
Costs
£
2,016,872
2020
£
5,981
262,814

Page 21

INTERCOUNTRY ADOPTION CENTRE

Notes to the Financial Statements - continued for the year ended 31 March 2021

8. Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

During the year, there were no Trustee expenses (2020: £1,763).

9. Staff costs

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Total
The number of employees whose employee benefits (excluding employer pension
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
10.
Tangible fixed assets
Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 2021
2020
£
£
1,530,291
1,633,847
94,562
87,583
42,782
38,561
1,667,635
1,759,991
2021
2020
35
38
costs) exceeded £60,000 was:
2021
2020
1
1
1
1
-
1
1
-
3
3
Fixtures
and
fittings
£
18,085
8,540
26,625
12,044
5,567
17,611
9,014
6,041

Page 22

INTERCOUNTRY ADOPTION CENTRE

Notes to the Financial Statements - continued for the year ended 31 March 2021

11.
Debtors: amounts falling due within one year
Trade debtors
Other debtors
Prepayments and accrued income
12.
Creditors: amounts falling due within one year
Bank loans and overdrafts (see note 14)
Trade creditors
VAT
Other creditors
Accruals and deferred income
13.
Creditors: amounts falling due after more than one year
Bank loans (see note 14)
14.
Loans
An analysis of the maturity of loans is given below:
Amounts falling due within one year on demand
Bank loans
Amounts falling between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Total		 2021
£
142,378
188,394
22,023
352,795
2021
£
22,015
158,518
29,992
136,416
476,657
823,598
2021
£
75,295
2021
£
22,015
23,490
51,805
97,310		 2020
£
383,568
-
22,797		 2020
£
383,568
-
22,797
406,365
2020
£
5,589
139,960
76,856
55,451
566,592
844,448
2020
£
51,873
2020
£
5,589
11,736
40,137
57,462

All loans are fixed interest loans at 6.5%. Bank loans are secured against the assets of the charity.

15. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year 2021
£
36,702		 2020
£
53,000

Page 23

INTERCOUNTRY ADOPTION CENTRE

Notes to the Financial Statements - continued for the year ended 31 March 2021

16. Movement in funds

Unrestricted funds
General fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
General fund
TOTAL FUNDS		 At 1/4/20
£
(440,829)
(440,829)
Incoming
resources
£
2,717,580
2,717,580		 Net
movement
in funds
£
692,189
692,189
Resources
expended
£
(2,025,391)
(2,025,391)		 At 31/3/21
£
251,360
251,360
Movement
in funds
£
692,189
692,189

Comparatives for movement in funds

Net
movement
At 1/4/19
in funds
£
£
Unrestricted funds
General fund
(210,407)
(230,422)
TOTAL FUNDS
(210,407)
(230,422)
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
1,940,496
(2,170,918)
TOTAL FUNDS
1,940,496
(2,170,918)
A current year 12 months and prior year 12 months combined position is as follows:
Net
movement
At 1/4/19
in funds
£
£
Unrestricted funds
General fund
(210,407)
461,767
TOTAL FUNDS
(210,407)
461,767		 At 31/3/20
£
(440,829)
(440,829)
Movement
in funds
£
(230,422)
(230,422)
At 31/3/21
£
251,360
251,360

Page 24

INTERCOUNTRY ADOPTION CENTRE

Notes to the Financial Statements - continued for the year ended 31 March 2021

16. Movement in funds - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS
17.
Related party disclosures
The remuneration of key management personnel is as follows.
Aggregate compensation		 Incoming
resources
£
4,658,076
4,658,076		 Resources
expended
£
(4,196,309)
(4,196,309)
2021
£
249,665
Movement
in funds
£
461,767
461,767
2020
£
252,372

Page 25

INTERCOUNTRY ADOPTION CENTRE

Detailed Statement of Financial Activities

for the year ended 31 March 2021

Income
Donations and legacies
Gifts and donations
Charitable activities
Services to adopters
Fees and services to professionals
Other income
Interest received
Other Income
Government grants
Total incoming resources
Expenditure
Raising donations and legacies
Other fundraising costs
Charitable activities
Staff costs
Social security
Pensions
Charitable direct expenditure
Share of support costs
Share of governance costs
Depreciation and impairment
Total resources expended
Net income/(expenditure)		 2021
£
37,033
904,753
1,179,091
2,083,844
141
80,952
515,610
596,703
2,717,580
8,519
1,530,291
94,562
42,782
182,705
153,465
7,500
5,567
2,016,872
2,025,391
692,189		 2020
£
14,953
1,152,125
773,350
1,925,475
68
-
-
68
1,940,496
3,684
1,633,847
87,583
38,561
131,185
262,814
7,263
5,981
2,167,234
2,170,918
(230,422)

This page does not form part of the statutory financial statements

Page 26