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2022-12-31-accounts

Registered number: 05538700 Charity number: 1072199

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 11
Independent Auditors' Report on the Financial Statements 12 - 15
Consolidated Statement of Financial Activities 16
Consolidated Balance Sheet 17 - 18
Charity Balance Sheet 19 - 20
Consolidated Statement of Cash Flows 21
Notes to the Financial Statements 22 - 39

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2022

Trustees Mr Jonathan Scott
Dr Robert Glover OBE
Mr Keith Hilton (resigned 30 November 2022)
Canon Sue Johns
Mr Mark Stolkin
Mr Michael Bonehill OBE (resigned 8 August 2023)
Mr David Devenish
Mr Edward Amies
Mr Nick Chance CVO
Mr Lorne Armstrong
Liu Liu (appointed 18 January 2023)
Company registered
number
05538700
Charity registered
number
1072199
Registered office
3 The Close
Norwich
Norfolk
NR1 4DH
Company secretary
Mr Andrew George
Executive Director
Dr Robert Glover OBE
Independent auditors
MA Partners Audit LLP
Chartered Accountants and Statutory Auditors
7 The Close
Norwich
Norfolk
NR1 4DJ
Bankers
HSBC
London Street
Norwich
Norfolk
Bank of China
Beijing San Yuan Qiao
Sub-Branch No. A1
Shuguang Xili
Chaoyang District
Beijing, China

Page 1

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their annual report together with the audited financial statements of the charity for the year 1 January 2022 to 31 December 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the group and the charity qualify as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Members' liability

The Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.

Executive Summary

The incoming resources for the year were £1,526,108 (2021 - £1,466,066) expenditure for the year was £1,509,880 (2021 - £1,373,846) making a surplus for the year of £19,228 (2021 surplus - £92,220).

Structure, governance and management

a. Constitution

Care for Children was incorporated on the 13th of March 1998. The charity was first registered by the Companies House in the UK, and as a Guernsey charity with the Charity Commission Registered Number 1072199 on the 29th of October 1998. The company issues two shares following contributions from John Langlois and Robert Glover and issued its Memorandum and Articles of Association on the 13th of March 1998.

The company is a registered charitable company limited by guarantee and was set up by a Memorandum of Association on the 17th of August 2005. The charitable company was established with the intent to pass operations of the Guernsey registered company, Care for Children, to the UK Company, which was undertaken on the 23rd of May 2006, and also to act as 'parent' to the other Group entities (see note 26).

b. Methods of appointment or election of Trustees

The management of the Group and the charity is the responsibility of the Trustees who are elected and coopted under the terms of the Trust deed.

c. Organisational structure and decision-making policies

The Trustees delegate the running of the charity to the Executive Director and the Executive Director reports back to the Trustees by sending regular reports by e-mail and attending the majority of the Trustees' meetings with reports on the running of the charity and developments in the projects.

Details of the charity's subsidiaries are given in note 26. Care for Children USA is a separate entity registered with a 501 c3 in US law.

Page 2

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Structure, governance and management (continued)

d. Policies adopted for the induction and training of Trustees

The current Trustees are responsible for the induction of any new Trustees, which involves awareness of a Trustee's responsibilities, the governing document, administrative procedures and the history of the charity. New Trustees receive a welcome pack which includes copies of the previous year's annual report and accounts; a brief history of the charity; a copy of the governing document and a copy of the Charity Commission guidance The Essential Trustee: What you need to know and Public Benefit: running a charity (PB2) .

e. Risk management

The Board constantly bears in mind its vulnerability in the event of adverse circumstances, such as the loss of key staff (primarily the Executive Director), the failure to raise sufficient funds to fund its projects and the possibility of the political climate for its projects changing. It has from time to time conducted reviews to assess major risks and put in place procedures to mitigate adverse circumstances.

Significant risks to funding have led to the development of a strategic plan to diversify funding sources, primarily in the United States, United Kingdom and Asia.

In 2021 the senior managers and Board of Trustees have regularly assessed the impact of the COVID 19 global pandemic. Although our 'on the ground' fostering work in the different countries has been reduced our staff teams have still been able to do important work developing our training materials to be used on the My Family website. To date the charity’s income and finances have not been significantly adversely affected by COVID 19. The senior managers and Board of Trustees continue to monitor the situation and will take further appropriate action if and where needed.

Plans for future periods

We have several exciting projects on the horizon, each offering a unique opportunity to expand our impact and further our mission:

Care for Children always aims to encourage and support governments with a roadmap to social welfare reform developing Family Care as an alternative to institutional care.

ENGAGE – INFLUENCE – IMPLEMENT – EXIT

The documentary is becoming a game changer for countries, it shows the clear outcomes of family life. These are the engagers in our strategy.

We have regional conferences to influence countries to move from institutions to families in Armenia (Middle East). These will be like lighthouse events reaching into countries including Iran, Iraq, Syria, Lebanon, Indonesia and Malaysia. These conferences are the influencers in our strategy.

Once engaged and influenced; the ‘My Family’ digital and online training resource becomes the tool with which we can implement our strategy.

Page 3

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Plans for future periods (continued)

Once the project work has been successfully implemented, Care for Children continues to work closely with the project country to exit well, freeing resources and time for new project opportunities.

Operational Strategy

1. Strategic

Care for Children enters strategic partnerships with national government authorities. This takes place in the form of a cooperation agreement with the relevant Ministry that oversees child welfare development.

2. Developmental

The cooperation agreement authorises Care for Children's project team to work directly with local government authorities to develop family based care in the local community, usually operating out of the government run institution.

3. Sustainable

Care for Children's project team develops a training programme tailored specifically for the cultural and political context of the country, retaining institutional staff to place and monitor children in foster families, and in accordance to the United Nations guidelines for the alternative care for children.

Project stages

There are four primary stages to Care for Children's project work:

A foster family in Thailand

Page 4

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Plans for future periods (continued)

Succession Plan

We have entered a succession plan with a senior management team that will include a CEO, Training Manager, Finance Manager and Income Generator. Starting with a strategic review in November 2023 with Triaxia Partners in Atlanta Georgia USA, the process will include a safe, professional transition with a clear strategy.

Children of Shanghai

We expect many more direct and indirect fundraising opportunities with this heart-warming film.

Project Data Tool (PDT)

The Project Data Tool is an online facility to gather, manage and use information directly from the project sites into a central resource. The key importance of the PDT is that it allows us to track the expectation of the donor to the grassroot project outcomes, and then report back to all stakeholders.

Reorganisation Asia Regional Team (ART)

Following the successful exit from China, we have relocated some Chinese staff to use their experience and expertise from the China project by being part of the Asia Regional Team, a peripatetic team that will in the future be able to support and train countries in South East Asia. This reorganisation will help focus the main expertise in the region and keep the focus of both training and methodology to place children in the countries we are working. The ART will support the development and delivery of ‘My Family’, Care for Children’s online and digital training resource.

Page 5

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Plans for future periods (continued)

My Family

The charity has commissioned ‘Watering Can Media’, to work on this dynamic training program. This has given us time to fine tune our scripts, questions and episode structure, and prepare our teams to recruit interviewees and be confident in what we are asking of them. Also, as part of the training package for those working offline or in groups led by a facilitator, we have created content for lesson plans to aid their learning and create group discussion to help the facilitator gauge their understanding of the episode.

We have always felt that it was important to hear first-hand experiences for family carers and helpful to hear how Care for Children has developed over the years. Therefore, we have been planning interviews that will enrich the episode with government officials, social workers, children who were fostered but mainly family carers sharing their experiences. Interviews have now been planned in each of the four countries we work in and we have worked closely with each country managers, our media team and a local filming company to sort out the logistics. There have been logistical challenges related to COVID 19 but we are pleased to report that filming begin in January 2022.

We want our digitalised training to be as engaging and accessible as possible and therefore have been working with an animator to help bring some stories of children’s experiences to life. We feel that it is important to hear the child’s voice and their experience of family care into our training, as they are at the heart of what we do. It's important to hear the positive impact of family care and belonging as these stories help to embed the teaching within the episode and emphasise the importance of our work. The animator has also created clever and culturally-appropriate episode introduction videos which will link into other animations through the training. Feedback has been given and small changes have been made, as while we want it to be culturally appropriate in Asia we also want it to be generic enough to be used in other continents – should we be invited to work there in the future.

Page 6

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Objectives and activities

a. Policies and objectives

Mission & Vision

Mission

• To serve governments of nations to pioneer a positive alternative to institutional care by placing children into local, loving families in the community (fostering and adoption).

Vision

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance Public benefit: running a charity (PB2) .

Achievements and performance

a. Review of activities

China

Care for Children have successfully completed and excited the China project. Family Placement is now sustainable with local authorities in China. Care for Children retains a small office in Beijing to maintain effective communication with social welfare institutions, organizations and governments in China for the influence it has in Asia.

Asia Training Team (ART)

The Asia Regional Team have supported Care for Children’s regional activity in 2022. For example, the team were fully involved with organising and delivering a webinar in Vietnam as well as taking on a crucial role in planning and training at a major conference in Cambodia. In addition to these events, the Asia Regional Team have made major contributions to Care for Children’s digital training course ‘My Family’.

Thailand

Care for Children Thailand was pleased to sign our fourth Cooperation Agreement with our government partners, the Department of Children and Youth. Our shared focus for the next three-year period is to:

In 2022 we joined forces with two like-minded NGOs to set up a project which aims to provide a model for child and family services that prioritises family and community-based care, with a goal to transitioning away from institutional care.

Focusing our efforts on four regions of Thailand, we partnered twelve shelters for children and families and four child welfare homes. That practical workshops and coaching sessions provided valuable opportunities for participants to develop permanency plans for children with a strong emphasis on family-based care.

Page 7

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

It is always exciting to see that by highlighting the strengths and benefits children receive from being in a good local family, a shift in mindset happens and possibilities for family-based solutions open up. Expanding the project’s focus down to the local level, the shelters and children’s homes invited their networks and partners to workshops and together they began to envisage how they could prevent unnecessary separation, strengthen vulnerable families, and create opportunities for children to be cared for in a loving family.

Vietnam

In 2022, capacity building activities continued and included technical support on assessment and approval of foster carer at Hanoi Project site. Although there was no child placement in 2022, the project teams were able to assess 63 children qualified for foster care and actively recruiting foster parents through community meetings and leaflet distributions. These achievements were made possible thanks to the dedication of 20 project team members who are governmental leaders, social workers, child protection officers at central and local levels.

Our most critical partnership remains with MOLISA and Department of Children Affairs. They have an integral role to play in creating enabling condition to the implementation of Foster Care Model in Vietnam. Throughout the year, Care for Children deepen its engagement with government through high level meeting between the Founder of Care for Children and Vice-Minister of MOLISA, which resulted in a strong commitment of Vietnamese government in prioritising family-based care.

In the last quarter of 2022, Vietnam Project has seen considerable progress towards the close collaboration with Department of Children Affairs by having a joint office with regular working schedule at this unit, directly contributed to effective communication and advocacy on family placement.

In 2022, Vietnam Project made significant miles stone in ending the first stage of Pilot Model with the project evaluation. The evaluation results concluded key lesson learned and recommendations to move the project forwards. Particularly, Vietnam Project will continue work focused on capacity development and family placement while at the same time build-in ways to learn more about what works best at community-level.

Page 8

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

Cambodia

For the Cambodia project, 2022 was all about setting up and becoming established in the country. In January 2022, Care for Children signed a three-year MOU with the ‘Ministry of Social Affairs and Veterans and began our work in Cambodia’. We established an office in the government building and began to build strong relationships with government staff. We also began to recruit and build a well-functioning team. We held a national conference in September to increase awareness and understanding amongst key stakeholders, including the Minister of Social Affairs and Veterans.

We were able to develop very positive relationships with 2 orphanages in Phnom Penh and Siem Reap respectively. We officially become a registered INGO in Cambodia in October and the end of the year we were able to deliver training to key government staff as well as social workers and orphanage workers and were provided with a list of children who were considered eligible to be moved into foster-care.

b. Fundraising activities and income generation

During 2022 Care for Children continued to raise funds from a number of grant giving organisations across the US, UK and Europe, making up nearly 60% of total income. Donations from individuals made up just over a quarter of Care for Children’s income, with an increasing proportion coming from Care for Children’s Family Champions programme – our committed community of regular givers.

In November 2022 Care for Children’s team was invited to screen the Children of Shanghai documentary across seven states of the US, attracting audiences from governmental, academic and faith-based institutions, as well as those from the business sector. We were delighted that UBS, one of our key supporters over the last few years, also organised screenings of the documentary in London, Hong Kong and Singapore.

Children of Shanghai has become an extremely effective tool to introduce Care for Children’s vision, track record, and methodology in great detail and depth. Both the organisers and the audiences have found the screening of the film to be one of the most engaging and compelling ways to raise awareness of the charity’s work.

At the end of 2022, we held a very successful Christmas gala dinner at Windsor Castle. Through donations from guests, we managed to raise over £250,000.

Page 9

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Achievements and performance (continued)

Financial review

a. Going concern

The Trustees have considered the financial position of the charity and group at 31 December 2022. As at the date of this report, the charity has continued to meet its liabilities. The Trustees are confident that the charity can continue its successful track record of securing the funds needed to support its valuable work. This will be achieved by the senior managers and fundraising team applying for grants and donations. The charity’s annual budgets and fundraising log demonstrate how the income will be raised to meet all the charitable expenditure and support costs. These financial statements have been prepared on the going concern basis.

b. Reserves policy

The policy of the board is to seek to build up a reserve of unrestricted funds equivalent to two months normal operating expenses, or £250,000 whichever is the greater, as a buffer against the inevitable cyclical nature of donations raised by fundraising activities. In order to build this unrestricted reserve, the Company sets aside funds in a separate bank deposit account. At this level the board is confident that it could continue the core activities of the charity during a cyclical reduction of funding, when it would be able to achieve a reduction of its programme of activities consistent with a lower funding level. The financial position has improved in 2022.

c. Material investments policy

The charity has the power to deposit or invest in any manner (but to invest only after obtaining such advice from a financial expert as the directors consider necessary and having regard to the suitability of investments and the need for diversification).

Page 10

TR11S￿. REPORT (CONTINUH)) FOR THE YEAR ENDED 31 DECEMBER 2022 Slal8mgnt of T￿￿te•s. r•sponS￿l￿tieS The Trustgés (who are also the dired(x5 of the chaAy for Ihè purposes of company law) are responslble for prepa￿ng the Trustees. Report aTMI the financial slatements in accordance wrylh appliLble law and Unlled Klng(th Ac(xJunting StandaTts (United GoneTalyAccepted Acawnting Pr￿ll( Compary law Tequires ts Trustees to wepare ffftandal statom8nts for eath ￿anCIAl . Under company law, the Trustees must not approve the financial statements Lmless th8y we SatiSf￿d that th&y give a true and falr vlew of the state of affalrs of the Group and the charity and of thelr i[￿￿ming re9c￿rceS aTha app￿ca￿0n of resources. Includlng their inwmo a￿1 eXpeThJi￿re. kn that perfod. In preparing these financlal statements. the TNstees are requred to: select suitable aoJ)unting pollcies and Ih8n apply them ￿nSIstenI1￿. obseNe the methoth 3nd princifv rllhe Chwities SORP {FRS 102): m&ke ludgm8nts accounting esbmatss thal are reasonable and prudent stste whether applicable UK Ac(x)unting Standard3 (FRS 102) have been followed, subject to any material depathre5 disck)sed and explalned n the financjal statements: prepare the financtal statements on th8 goiThJ (x)rtem basis il is Inappropriate lo presume that the Group wlll corrtlnue In I￿s￿ The Trustees are reswJnslblB for keeixng adequats arxwnllry rewrds are suffident to show and explah the Group and th8 chariws transactlons and disclw with reasonablo 8coJracy at any time the financial position of Ihe Group and lh8 charfty arKI enablfr them to ensurn thal the fi)8nthal statements comply with tho Companles Act 2006. They are 8]so responsble f(Y saleguarthg the assets of tho Group and the charity and hen￿ for taklrtrJ reasonabl8 steps for the preve￿Il￿ d￿j deledk)Th offraud and (ther Irregulartueg. Dls¢losuro of lTrformollon to arfHtors Each ofthe peT8ons WIM) are Tn￿lee$ al the lkne when Trustee< Rep)rt18 approved has confirnied that so frar as that Truslee Is aware. Ihere 15 no relevant wjit Info￿alIan of the charitable group audilor5 are Una￿are. and thal Trustee has taken 811 the Sieps that CA￿ltt to have been laken as a TnL81ee In 0￿er to ￿ aware of any relevant au(rrt inforrnalion and lo eslabfth the ch&ilth wp's 8uthtors are aware of thal InfonTtatio Audlto The a￿]It0￿. MA Parlnern A￿11 LLP. ha￿ thelr to ￿¥)lInUe kb offlce. The designated Trustees wll wopose a rnotK)n reappcmntng the auditors at a meelBig ofthe Tnjsiees. Approved by orderofthe rnern￿ ofthe boalll 0fTTh￿ signed ￿ Iheir behaw by. Dr Robert Glover OBE (trustee) Page11

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARE FOR CHILDREN (UK)

Opinion

We have audited the financial statements of Care for Children (UK) (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent 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.

Page 12

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARE FOR CHILDREN (UK) (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, 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 Group's and the parent 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 Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Page 13

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARE FOR CHILDREN (UK) (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the parent charitable company and group.

Our approach was as follows:

Page 14

(A Company Limited by Guarantee)

CARE FOR CHILDREN (UK)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CARE FOR CHILDREN (UK) (CONTINUED)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities 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 Auditors' Report.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

MA Partners Audit LLP

Chartered Accountants and Statutory Auditors 7 The Close Norwich Norfolk NR1 4DJ

Date: 25 September 2023

MA Partners Audit LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 15

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Income from:
Donations and legacies
4
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2022
£
729,748
136
-
729,884
248,327
521,586
769,913
(40,029)
227,794
(40,029)
187,765		 Restricted
funds
2022
£
796,224
-
-
796,224
-
736,967
736,967
59,257
217,953
59,257
277,210		 Total
funds
2022
£
1,525,972
136
-
1,526,108
248,327
1,258,553
1,506,880
19,228
445,747
19,228
464,975		 Total
funds
2021
£
1,378,379
38
87,649
1,466,066
136,678
1,237,168
1,373,846
92,220
353,527
92,220
445,747

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 22 to 39 form part of these financial statements.

Page 16

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee) REGISTERED NUMBER: 05538700

CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2022

Note
Fixed assets
Intangible assets
13
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 135,596
308,034
443,630
(80,109)		 2022
£
101,454
101,454
363,521
464,975
464,975
277,210
187,765
464,975		 81,218
243,506
324,724
(45,972)		 2021
£
166,995
166,995
278,752
445,747
445,747
217,953
227,794
445,747

Page 17

CARE FOR CHILDREN IU {ACompw Ummed by Guarantoe) REGrnED NUIqBEIi. 05538700 CONS(KIDATED BALANCE SHEEf (COPMWEDI AS AT 31 DECEMBER 2022 The ¢hityvrns entitlgd lo exernpti￿ fr(Mn sect￿ 477 of the Compar¥es AL 2006. The member8 have not requlred the eth kn otlain an for the w in quethn in a￿￿dartc￿ with seclion 476 ofthe Companies Pd However, an autht is requlred wllh serAion 151 ofthe tharflles Act 2011. The Twstees acknthVadge the* wesponswrfies for cThnplJing tAth tho rnquYeff￿ts of the Act respect to The financial ststemenls been prepared in ac￿rdanCe wthrfsk)ns appllcabje to enthles subi8Ct to the sffoll rAmipanl88 regime. The flnandal 8t8temenls were appm¥ed authortsed for b8ue bytha Truste88 and on thelr behair ty. Dr Robert Glover OBE (Twslee) Date.. 20 sept￿nber 21Y23 Th8 notes on pageg 22 trj 39 fomi pwt of Ih8se finanraal stat8m8nts. Pag8 18

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee) REGISTERED NUMBER: 05538700

CHARITY BALANCE SHEET AS AT 31 DECEMBER 2022

Note
Fixed assets
Intangible assets
13
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds		 135,596
276,752
412,348
(78,659)		 2022
£
101,454
101,454
333,689
435,143
435,143
277,211
157,932
435,143		 80,852
204,734
285,586
(45,972)		 2021
£
166,995
166,995
239,614
406,609
406,609
217,953
188,656
406,609

Page 19

CARE FOR CHILDREN (UK) (Acompany Umlted by Guarantse) REGISTERED NUMBER.. 0553871W) CHARITY BALA￿E SHEEr (coTrmNUED) 8 AT 31 DECEMBER 2022 The ¢harityvras 8ntti18d to exemptr'on from audtt under secllon 477 of the Cornpanies Act 21X)6. Th8 members have not requireil ts entity to oblan an audit for thé year In question in aLJ]wda￿e wlh 5eGlion 476 of the Com￿58$ Ad 200 lowever. an audit is requlred in aGC(Ydanc8 with sedion 151 of the Charities Act 2011. The Trustses acknowledge Ih8ir responsibilities for complwng wilh ts requirements of the Act knrylh respect to a￿Unting re￿rdS and preparation 0ffttl8n￿a1 statemprts. The financial ststements have been Prepared in accordance with the provisions applicable to entllles subkct to the sm811 ￿MPanIeS ￿lMe. The fm8ncial 5talernents were approved and aulhorfsed for issue by the Twstees and slgned on their behalf by. Dr Robert Glover OBE (Trustee} Oate.. 20 Sepkniber 2023 The rMAes on pages 22 to 39 fomi part of these ffinancral statement& Page 20

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022

Note
Cash flows from operating activities
Net cash used in operating activities
20
Cash flows from investing activities
Purchase of intangible assets
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
21
The notes on pages 22 to 39 form part of these financial statements		 2022
£
64,528
-
-
64,528
243,506
308,034		 2021
£
35,545
(34,408)
(34,408)
1,137
242,369
243,506

Page 21

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1. General information

The charity is a company limited by guarantee. The members of the charity are the Trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Care for Children (UK) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

2.2 Going concern

The Trustees are confident that the charity can continue its successful track record of securing the funds needed to support its valuable work. This will be achieved by the senior managers and fundraising team applying for grants and donations. The charity’s annual budgets and fundraising log demonstrate how the income will be raised to meet all the charitable expenditure and support costs. The Trustees therefore consider it appropriate to prepare these financial statements on the going concern basis.

2.3 Income

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

Grants are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Page 22

(A Company Limited by Guarantee)

CARE FOR CHILDREN (UK)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.4 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 on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Government grants

Government grants are credited to the Consolidated Statement of Financial Activities.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Foreign currencies

The charity’s functional and presentational currency is GBP.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the reporting date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Consolidated Statement of Financial Activities.

2.8 Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 23

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.9 Intangible assets and amortisation

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

Amortisation is provided on the following basis:

Documentary and website

20 % straight line

2.10 Debtors

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

2.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.12 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.13 Financial instruments

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

2.14 Operating leases

Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease term.

2.15 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

Page 24

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

2. Accounting policies (continued)

2.16 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Critical accounting estimates and areas of judgment

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the group’s accounting policies.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

Page 25

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

4. Income from donations and legacies

Donations
Grants
Total 2022
Total 2021		 Unrestricted
funds
2022
£
729,748
-
729,748
680,079		 Restricted
funds
2022
£
-
796,224
796,224
698,300		 Total
funds
2022
£
729,748
796,224
1,525,972
1,378,379		 Total
funds
2021
£
680,079
698,300
1,378,379
5.
Investment income
Bank interest
6.
Other incoming resources
Government grants
Sale of vehicle		 Unrestricted
funds
2022
£
136
Unrestricted
funds
2022
£
-
-
-		 Total
funds
2022
£
136
Total
funds
2022
£
-
-
-		 Total
funds
2021
£
38
Total
funds
2021
£
80,561
7,088
87,649

Page 26

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

7. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2022
£
Costs of raising voluntary income
189,110
Costs of raising voluntary income - wages and salaries
59,217
248,327		 Total
funds
2022
£
189,110
59,217
248,327		 Total
funds
2021
£
74,448
62,230
136,678

8. Analysis of expenditure on charitable activities

Summary by fund type

Direct costs
Total 2021		 Unrestricted
funds
2022
£
521,586
572,887		 Restricted
funds
2022
£
736,967
664,281		 Total
2022
£
1,258,553
1,237,168		 Total
2021
£
1,237,168

Page 27

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. Analysis of expenditure by activities

Direct costs
Total 2021		 Activities
undertaken
directly
2022
£
975,054
914,106		 Support
costs
2022
£
283,499
323,062		 Total
funds
2022
£
1,258,553
1,237,168		 Total
funds
2021
£
1,237,168

Analysis of direct costs

Staff costs
Project expenses
Travel
Office rent		 Total
funds
2022
£
682,011
156,139
74,401
62,503
975,054		 Total
funds
2021
£
748,307
79,533
22,293
63,973
914,106

Page 28

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Amortisation
Office rent
Premises
Office expenses and stationery
Bank charges and interest
Foreign exchange
Miscellaneous
Governance costs
10.
Auditors' remuneration
Fees payable to the charity's auditor for the audit of the charity's annual
accounts
Fees payable to the charity's auditor in respect of:
All non-audit services not included above
11.
Staff costs
Group
Group
2022
2021
£
£
Wages and salaries
628,356
705,167
Social security costs
187,359
183,492
Operating costs of defined benefit pension
schemes
28,049
28,016
843,764
916,675		 Total
funds
2022
£
102,536
65,541
21,182
15,263
39,933
2,584
(8,989)
5,993
39,456
283,499
2022
£
8,000
1,984
Trust
2022
£
584,820
187,359
28,049
800,228		 Total
funds
2021
£
106,138
65,541
21,712
13,435
60,304
3,720
13,075
2,648
36,489
323,062
2021
£
7,200
2,659
Trust
2021
£
666,301
183,492
28,016
877,809

Page 29

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

11. Staff costs (continued)

The average number of persons employed by the charity during the year was as follows:

Management staff
Project staff		 Group
2022
No.
11
23
34		 Group
2021
No.
12
28
40

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2022 2021
No. No.
In the band £80,001 - £90,000 1 1

The total remuneration for key management personnel for the year totalled £255,091 ( 2021: £257, 527).

12. Trustees' remuneration and expenses

During the year, one Trustee has been paid remuneration for employment as Executive Director of the charity as follows:

2022 2021
£ £
Dr Robert Glover OBE Remuneration 78,027 78,027
Pension contributions paid 7,803 7,803

During the year ended 31 December 2022, no Trustee expenses have been incurred (2021 - £NIL) .

Page 30

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
13.
Intangible assets
Group and Trust
Cost
At 1 January 2022
At 31 December 2022
Amortisation
At 1 January 2022
Charge for the year
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Documentary
and website
£
327,705
327,705
160,710
65,541
226,251
101,454
166,995

Page 31

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

14. Tangible fixed assets

Group and Trust

Cost or valuation
At 1 January 2022
At 31 December 2022
Depreciation
At 1 January 2022
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Office
equipment
£
17,090
17,090
17,090
17,090
-
-

15. Debtors

Due within one year
Other debtors
Prepayments and accrued income		 Group
2022
£
100,596
35,000
135,596		 Group
2021
£
29,686
51,532
81,218		 Trust
2022
£
100,596
35,000
135,596		 Trust
2021
£
29,320
51,532
80,852

Page 32

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

16. Creditors: Amounts falling due within one year

Other taxation and social security
Other creditors
Statement of funds
Statement of funds - current year
Unrestricted funds
General Funds - all funds
Restricted funds
Developing China family-placement
programmes
Developing Thailand family-placement
programmes
Cambodia fund
Vietnam fund
PPE
Digitalisation
Total of funds		 Group
2022
£
10,812
69,297
80,109
Balance at 1
January
2022
£
227,794
-
-
144,300
-
5,142
68,511
217,953
445,747		 Group
2021
£
12,272
33,700
45,972
Income
£
729,884
35,000
21,769
450,131
54,254
11,363
223,707
796,224
1,526,108		 Trust
2022
£
10,812
67,847
78,659
Expenditure
£
(769,913)
(35,000)
(21,769)
(481,564)
(54,254)
(12,405)
(131,975)
(736,967)
(1,506,880)		 Trust
2021
£
12,272
33,700
45,972
Balance at
31
December
2022
£
187,765
-
-
112,867
-
4,100
160,243
277,210
464,975

17. Statement of funds

Page 33

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

17. Statement of funds (continued)

The Cambodia fund is for international meetings and visits to further promote fostering in Cambodia. The Light Foundation Fund represents funding receivable from the Light Foundation to support the launch and development of Care for Children’s pilot project in Cambodia. Under the grant agreement, Care for Children will receive a maximum of $300,000 per year for 3 years.

The Children of Shanghai documentary fund supports the development of a documentary that tells the story of some of the first children in Shanghai that were placed into foster families by Care for Children. The restriction applicable to these funds is met as the charity incurs expenditure on the documentary as there are no restrictions on the intangible asset.

The India and Nepal fund for an exploratory visit to scope out a potential fostering project in those countries, the funds have now been transferred to unrestricted funds.

The PPE fund is to cover the cost of hygiene products to protect from the spread of COVID 19.

Digitalisation Fund is for the development of a website providing a wealth of online resources in family placement to ensure our training is as accessible as possible.

The China Community Centre fund is part of the family-placement programmes for the development of foster care in China, giving orphaned and abandoned children the opportunity of growing up in loving, local families.

The Vietnam fund is for is for the development of foster care in Vietnam.

The Developing Thailand family-placement programmes is for the development of foster care in Thailand.

Page 34

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds - all funds
Restricted funds
Cambodia fund
Documentary
India and Nepal
PPE
Digitalisation
China Community Centre
Vietnam family placement
programmes
Promotion of fostering in
Thailand
Total of funds		 Balance at
1 January
2021
£
150,843
178,792
-
18,750
5,142
-
-
-
-
202,684
353,527		 Income
£
767,766
332,737
51,783
-
-
124,668
17,152
87,015
84,945
698,300
1,466,066		 Expenditure
£
(709,565)
(367,229)
(51,783)
-
-
(56,157)
(17,152)
(87,015)
(84,945)
(664,281)
(1,373,846)		 Transfers
in/out
£
18,750
-
-
(18,750)
-
-
-
-
-
(18,750)
-		 Balance at
31
December
2021
£
227,794
144,300
-
-
5,142
68,511
-
-
-
217,953
445,747

Page 35

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

18. Summary of funds

Summary of funds - current year

General funds
Restricted funds
Summary of funds - prior year
Balance at
1 January
2021
£
General funds
150,843
Restricted funds
202,684
353,527		 Balance at 1
January
2022
£
227,794
217,953
445,747
Income
£
767,766
698,300
1,466,066		 Income
£

729,884
796,224
1,526,108
Expenditure
£
(709,565)
(664,281)
(1,373,846)		 Expenditure
£
(769,913)
(736,967)
(1,506,880)
Transfers
in/out
£
18,750
(18,750)
-		 Balance at
31
December
2022
£
187,765
277,210
464,975
Balance at
31
December
2021
£
227,794
217,953
General funds
Restricted funds
445,747

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Intangible fixed assets
101,454
Current assets
166,420
Creditors due within one year
(80,109)
Total
187,765		 Restricted
funds
2022
£
-
277,210
-
277,210		 Total
funds
2022
£
101,454
443,630
(80,109)
464,975

Page 36

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

19. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Intangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2021
£
166,995
106,771
(45,972)
227,794		 Restricted
funds
2021
£
-
217,953
-
217,953		 Total
funds
2021
£
166,995
324,724
(45,972)
445,747

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Amortisation charges
Increase in debtors
(Decrease) / Increase in creditors
Net cash provided by operating activities
21.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 Group
2022
£
19,228
65,541
(54,378)
34,137
64,528
Group
2022
£
308,034
308,034		 Group
2021
£
92,220
65,542
(70,454)
(51,763)
35,545
Group
2021
£
243,506
243,506

Page 37

CARE FOR CHILDREN (UK)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

22. Analysis of changes in net debt

Cash at bank and in hand At 1
January
2022
£
243,506
243,506		 Cash flows
£
64,528
64,528		 At 31
December
2022
£
308,034
308,034

23. Pension commitments

The group operates defined contribution pension schemes. The assets of the schemes are held separately from those of the group in independently administered funds. The pension cost charge represents contributions payable by the group to the funds and amounted to £28,016. Contributions of £2,968 were payable to the funds at the balance sheet date and are included in creditors.

24. Operating lease commitments

At 31 December 2022 the Group and the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2022
£
7,084
8,991
16,075

Page 38

CARE FOR CHILDREN (UK) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

25. Related party transactions

During the year remuneration including pension of £47,475 (2021: £42,200) was paid to Thomas Abbott, an employee of the charity. Thomas Abbott is a close family member of Trustee and Executive Director, Robert Glover.

During the year, remuneration of £nil (2021: £170) was paid to Lois Hall, an employee of the charity. Lois Hall is a close family member of Trustee and Executive Director, Robert Glover.

During the year, remuneration of £20,000 (2021: £20,000) was paid to Elizabeth Glover, an employee of the charity. Elizabeth Glover is a close family member of Trustee and Executive Director, Robert Glover.

During the year, the charity was invoiced £27,615 (2021: £16,533) by Johnny Hall for services provided. Johnny Hall is a close family member of Trustee and Executive Director, Robert Glover.

During the year, £302,916 (2021: £245,052) was received from donations, fundraising and grants, from Trustees and board members.

26. Principal subsidiaries

Details of the material subsidiary of the group are as follows:

Care for Children (US) Subsidiary name Care for Children (US) Basis of control Control over subsidiary at board level Total assets as at 31 December 2022 £27,259 Total liabilities as at 31 December 2022 £(1,450) Total equity as at 31 December 2022 £25,809 Turnover for the year ended 31 December 2022 £868,762 Expenditure for the year ended 31 December 2022 £(882,696) Loss for the year ended 31 December 2022 £(13,934)

in addition, the following companies are non-material subsidiaries of the group (the results of which are also included in the consolidated accounts):

Care for Children (H K) Limited Grace Training (HK) Limited My Family (Beijing) Company Limited

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