OpenCharities

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

2023-03-31-accounts

THE WORLD CHILDREN'S FUND

(A company limited by guarantee)

Financial Statements

For the year ended 31 March 2023

Company Number: 03778493 Charity Number: 1079124

THE WORLD CHILDREN'S FUND

CONTENTS

----- Start of picture text -----
Page
Trustees' Report 2 to 7
Auditors' Report 8 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Accounts 15 to 22
----- End of picture text -----

THE WORLD CHILDREN'S FUND

Trustees' Report For the year ended 31st March 2023

Company Number: 03778493 (incorporated in England and Wales) Charity Number: 1079124 Registered Office: Second Floor Office 34 High Street Bromley Kent BR1 1EA Directors and Trustees: J. Lam R. Kendrick Y. Yakushev N. Yakushev Secretary: Broadway Secretaries Limited Principal Bankers: HSBC Bank plc Bromley Commercial Centre 184 High Street Bromley, Kent BR1 1HE Auditors: Moore Kingston Smith LLP 6th Floor 9 Appold Street London EC2A 2AP Solicitors: BDB Pitmans LLP 50 Broadway London SW1H 0BL

Page: 1

THE WORLD CHILDREN'S FUND

Trustees' Report For the year ended 31st March 2023

The Trustees present their statutory report together with the accounts of The World Children’s Fund (“WCF”) for the year ended 31st March 2023.

The information contained on page 1 of the Annual Report forms a part of the Trustees' Report.

Structure, Governance and Management

Governing document

The World Children’s Fund was incorporated on the 27th May 1999 and is governed by the provisions of its memorandum and articles of association, as amended on 12th May 2017.

Organisational structure

The organisational structure is detailed in the constitution of the Charity. The strategic direction of the Charity is the responsibility of the board of Trustees. In accordance with the constitution the board meets at least once a year. The day-to-day running of the Charity is carried out by the Chief Executive, who is responsible to the board of trustees.

Connected & Related Parties

Two of the Trustees of the Charity (Joseph Lam and Ruth Kendrick) assisted in the establishment of other World Children's Fund and Medical Mission International charities throughout the world that share similar visions and purposes as The World Children’s Fund and they are also on some of those other charities boards. However, the Charity does not consolidate these foreign entities in its financial statements, as they are separate legal entities with no one controlling party. Further details of transactions can be found in Note 14 to the financial statements.

WCF US is the programme department/organization for all the WCF charities that operate around the world. When a grantee requests assistance, WCF US will contact those affiliate organisations, who's aims coincide with the particular project in question, and are requested to fund such programmes. The programme coordinators within WCF US make site visits, along with the WCF EU Vice President, to the programmes supported, compiling reports and feeding information back to, for example, WCF UK. It is up to the board of WCF UK to determine on the basis of these reports whether to continue with on going funding.

Trustees, appointment, induction and training

New Trustees are appointed by existing Trustees should they be deemed appropriate and helping to fulfil any shortfall in the skill set of the board upon application. The charity shall hold an annual general meeting each year in addition to any other meetings. The Trustees have learned their duties as Trustees through information obtained from external consultants and the Charity Commission, and are responsible for the induction and training of new Trustees. Further training, consultation and information is made available to the Trustees on an on-going basis.

Page: 2

THE WORLD CHILDREN'S FUND

Trustees' Report For the year ended 31st March 2023

Risk Management

The Trustees have reviewed the major risks to which the charity is exposed and confirm that steps have been taken to mitigate those risks.

A fundamental risk to the charity is the potential for continued increases in expenditures on raising funds versus donation income received which would be the result of non-effective direct mailing mailshot results. To address this fundamental risk the charity is working with local marketing agencies to attempt to explore possible diversification of its current revenue stream as well as to look to achieve better returns on its mailshots. The goal is to drive down the cost of expenditure on raising funds while looking to boost and maximize donation revenues of its mailshots and other possible revenue streams which would mitigate this fundamental risk to the charity.

Remuneration Policy

The charity does employ one staff member whose pay is determined by the Board and is based on the hours worked and the prevailing market rates for the level of work that is being undertaken. Potential future increases in salary are decided and given to reflect increases in the cost of living.

As noted elsewhere in the accounts, the Trustees and officers of the charity receive no remuneration or compensation for their time and services to the charity.

If the charity does decide to compensate its Trustees and officers in future years, then the recommendations of the NCVO enquiry will be taken into account.

Public Benefit

We have referred to the guidance in the Charity Commission’s general guidance in Section 17 of the Charities Act 2011 on Public Benefit when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

COVID-19 Uncertainties

The impact of COVID-19 has been considered by the trustees of the charity in regard to the charity's future plans and budgeting processes and the effect of the outbreak isn't a significant risk into the 31 March 2024 year end. It is expected that any potential decreases in revenues will be short lived and the charity's reserves and asset values will enable the charity to continue normal operations through fiscal year end 31 March 2024 and years beyond that.

Objectives and activities

The objects of WCF, in light of the Public Benefit guidance, continue to be:

To meet these objects, the charity has two primary aims and objectives, which have remained constant over the years of its operation:

Page: 3

THE WORLD CHILDREN'S FUND

Trustees' Report For the year ended 31st March 2023

In practical terms, the Charity’s principal charitable activities are:

In order to fund these charitable programs, the charity continually employs these fundraising strategies.

Gift in Kind policy

WCF has been the recipient of significant donations of goods relevant to the charity’s aims and objectives and ultimate target audience. These donations have been distributed as ‘gifts in kind’ to recipient groups/individuals following a request for humanitarian aid. Co-ordination of ‘donations’ and ‘gifts in kind’ is handled by a variety of agencies specialised in this area of distribution who are briefed by WCF as to the charity’s aims and objectives and the types of goods that are acceptable and appropriate and similarly, suitable types of recipient of said ‘donations’.

The Trustees believe that this activity furthers the charities objectives, in providing products appropriate to the needs of the recipients, to organisations/individuals that otherwise would not have access to these much needed items.

The Trustees review each year’s Gift in Kind activities and decide on appropriate levels of ‘donation’ in comparison to shipping costs, for the forthcoming year.

Grant making policy

The trustees will continue to concentrate on the provision of emergency aid by making grants to support charitable projects providing emergency relief to assist children in disaster areas.

Applications for grants should be directed to:

The World Children’s Fund 34 High Street Bromley, Kent BR1 1EA

Applications are dealt with on receipt. All applications for grants are reviewed by the trustees before any decision is made. The Trustees may also require a visit to the applicant before deciding whether or not to make a grant.

Page: 4

THE WORLD CHILDREN'S FUND

Trustees' Report For the year ended 31st March 2023

Achievements and performance

The World Children’s Fund raised in excess of £2.35m during the year ended 31 March 2023 (2022: £2.16m). The majority of those resources were obtained as a result of our direct mail fund raising efforts and gifts in kind.

During the year mailings were sent to individuals who’ve been supporting World Children’s Fund for several years as well as sending mailings to those individuals who’ve never heard of or contributed to The World Children’s Fund in the past. Cash donations for 2023 from donors decreased compared with donations from year ended 31 March 2022 and World Children's Fund did receive legacies in the amount of £47,950 in year end 31 March 2023 (2022: £61,864).

During year ended 31 March 2023, generous United Kingdom donors enabled WCF (UK) to expend £1,975,759 (2022: £1,750,993) on program grants and disaster relief supplies.

The programs supported during year end 31 March 2023 were:

Asian Center Foundation - Thailand
BESTWA, Inc - Liberia
Children of God Relief Institute - Kenya
Church of God Prophecy Family of God - Ukraine
Doctors for Life Trust - South Sudan
Kama Outreach Ministries - Congo
Karanda Mission Hopspital - Zimbabwe
Local Initiatives for Education - Yemen
Partners in Harvest - Malawi
Reencentro - Mozambique
Slavic International Ministries, Inc. - Ukraine
Transformation & Restoration Initiative - Uganda		 £
22,365
813,293
8,200
5,000
4,938
4,450
769,007
13,418
261,689
3,578
37,558
32,263
1,975,759

The World Children’s Fund wishes to thank our loyal contributors whose financial assistance allows us to help children throughout the world. Without their support none of what we’ve been able to accomplish in our short time of existence would be possible.

Fundraising Approach

The charities trustees are fully aware of their individual responsibility and accountability to ensure that the charity fundraises legally, ethically, responsibly and effectively.

The charity is a levy paying member of the Fundraising Regulator and subscribe to the associated fundraising codes and practice. In addition the charity is also registered with the Information Commissioner’s Office and is fully compliant with the newly enacted General Data Protection Regulation (GDPR).

The charity suppresses individual supporter records against the Mailing Preference Service, Telephone Preference Service and the Fundraising Preference Service which helps to ensure that the charity doesn’t approach individuals who have expressly requested that we don’t contact them, including vulnedrable people. During the fiscal year Fundraising Preference Service suppression requests totalled 8.

The charity doesn’t engage with any professional fundraiser or commercial participator.

The charity has a published complaint procedure, available on its website. Although no complaints have been received, the charity will respond to enquiries and complaints in a timely fashion. As a member of the Fundraising Regulator we are required to provide annual figures on the number of complaints received during the year (none in the current financial year). The enquiries received tend to be requests to opt-out of charity communications by existing supporters. These opt-out requests are administered and handled straight away to reduce any perception of unreasonable intrusion or undue pressure to support the charity.

Page: 5

THE WORLD CHILDREN'S FUND

Trustees' Report For the year ended 31st March 2023

The charity continues to diversify its income generating activities so as to reduce reliance on any single income stream. The main revenue stream for the charity is its direct mail fund raising programme coupled with gifts in kind. Regular giving programmes and legacy income are other diversified revenue streams for the charity.

Financial review

During the year, total income increased by £196,526, to £2,359,733 due to a increase in gifts in kind income. Resources expended increased by £292,839, to £2,382,902 due to a increase in gifts in kind expense.

The final result was a net decrease in funds of £23,169 (2022: increase of £73,144), taking total reserves to £1,028,223 (2022: £1,051,392).

The objectives that were set out at 31 March 2022, to be achieved in 31 March 2023 year end, were partially met. WCF increased its donor base; however due to the economic conditions facing all charities we were unable to increase the income received from monthly giving donors and the income from such actually declined by £13,490 as compared to 31 March 2022. In addition the charity did receive £47,950 during the year from legacies. As a result of these items and the increase in gifts in kind income the charity did increase the amount spent on grants to programme as compared to 31 March 2022.

Reserves policy

The Board has examined the requirement for free reserves which are those unrestricted funds not invested in fixed assets, designated for specific purposes or otherwise committed. The Trustees review its reserves policy annually and consider that the free reserves held by the charity should be broadly equivalent to two years of the yearly on-going annual expenditures (exclusive of GIK). The Trustees decided that WCF's long-term target level of free reserves, (those funds not designated or tied up in fixed assets), should be approximately £1,000,000 which would give the charity flexibility to cover temporary timing differences for donation receipts, adequate working capital for core costs, and would allow WCF to respond quickly to emergencies where immediate relief is needed.

At 31 March 2023, the free reserves of the charity amounted to £1,020,285 (2022:£1,040,733. The Board acknowledge that this falls in line with the target free reserve minimum.

Investment policy

The investment strategy is set by the Trustees. In the light of the Trustees policy on reserves the trustees have reviewed their investment policy and seek to both maximise return on the core deposits, whilst ensuring sufficient liquidity to enable the Charity’s funds to be expended for charitable purpose as soon as possible.

Plans for future periods

The principal source of funding is expected to remain as voluntary income generated from direct mail appeals to the public. The charity plans to vigorously continue its focus on:

The Charity will continue its emergency aid shipments and financial grant programs.

Page: 6

THE WORLD CHILDREN'S FUND TnJstees' R8POrt For the year ended 31st March 2023 Statèm•nt of Trusts•s' r•sponwbilitsts The Trustees Ivho are also direaors of The WorJ Chadrw'$ Fund lorthe purposes of ccffipany kw) are respoThsib ff￿ preparing Ihe Trusiees. Report¥nd th? fiA￿c$81 ststements ￿ aGcordanGe ￿p￿cable law •ftd Financ.'al Reporting Stsndards IFRS 1021. Company Iw requires frusrees lo prepare fman)￿ staterr￿nts for è#h finanoal year g￿e a tnje and fairv￿ of the state of the affairs of the ctiarilable CL￿Pany8ftd of tbe ifiwiin9 restyJrce5 and application of sourteS..'nd￿Iiry the Income and exFendi'ur•. of the Charikb￿ Gompwftjrthat ￿rIod. In pr•paAng th888 nantyal stst8nx•nis, th• trust••s ar• r•qulrnd lo.. Sele￿ suitable accounb.rva golK¢￿ aTrJ th•n awy U)n observe tre rnothodi and prinuple3 in ¢h8 Charitses SORP." makejuegernents estimates th8t are wsonable and pnAenr 8¢ai• whethèr applieabi8 accounvng $tandard$. Induain9 FRS 102. h•v• b••n fofv•d. $ubioa * •ny mtyi¢ri•l depar￿re$ disehJs•d •nd Xp￿ined pi fiThon¢i￿ s13t•mnts: 51aie wh8th8ra Slalernenl of Rec4)nmended Practi¢• ISORPI ap￿￿$ and has b•en fouowed. suii'ect to any mai•rial d•partur•# vthich are expL•in•d n th• ￿teMents. prepare the fin8nrAai statements on the golng e4nc4rn b8th unlgs$11 Is In•pkYoprfawto pwum• that the charitblo comparty wll in busww8B. The Tru51w5 3r• T•spon5ible lor kee￿n9 propararLounbry r•cords th•t dis¢hx• with rMsonabk• acBurnEy r any lJme the ffn8nci81 posthn of the charitsbkg company and enable tham to 8n5ur8 Ihat tr8 flnar¢Lql st4lem•nts cornpty Companles Act èJ06. Thty ore aLw reSp￿Ible lor safeguar¢lng tha asa•t8 01 Iho ¢hadtsbl¢ wpany and h•ft￿ for takM¥ rea$Ma￿ $tep$ lortho pr•ven¥on an¢1 dete￿￿ offraud and other Iry•qU￿ribeJ. In $0 lar as TNS1￿ ar• awam.. there is no ￿levaNt •udil IAform•tson ofwthi¢h th• ¢h•r11￿ cLmp•tys au¢Ulty ￿ ur4w•r•: •rtd the TfUSt888 haw tsken all $1op$ Vw¢ ￿•Y cwht ¢0 have taK•n to m•kg thwn$okns •var• ol any r•lovant audit informabon and to ••tthth IhJt auditr i• awjre of that inbrm)tion. Audttoys Meore Kingston Smith LLP Ind￿•t¢￿ %billirgn•ss to ￿tinu• in offK• wd dMmed to t• r3ppointhd in accordance section 487121 of the Companies Ad 2006. Small ¢ornpany ex•mpUon These financial Strtements hav• b••n prnpar•d in acee<danc• ￿1th th• Part 15 ofth• Companies Act 2006 r￿a￿.1¥a to Brn￿1 ctsrpani¢s ond with the Financi¥ R•poring 102. Appr0védbyttTru8ts88￿....................... .. . •fyJ sKJn•d on th•ir bohaff b st&• Page". 7

THE WORLD CHILDREN'S FUND

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE WORLD CHILDREN'S FUND FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements o The World Children's Fund (‘the company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

•have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

Page: 8

THE WORLD CHILDREN'S FUND

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE WORLD CHILDREN'S FUND FOR THE YEAR ENDED 31 MARCH 2023

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:

•the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•the trustees’ annual report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

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

•adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

•the financial statements are not in agreement with the accounting records and returns; or

•certain disclosures of trustees’ remuneration specified by law are not made; or

•we have not received all the information and explanations we require for our audit; or

•the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the trustees’ annual report and from preparing a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, 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.

Auditor’s Responsibilities for the audit of the financial statements

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

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Page: 9

THE WORLD CHILDREN'S FUND

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE WORLD CHILDREN'S FUND FOR THE YEAR ENDED 31 MARCH 2023

•Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.

•Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.

•Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

•Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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

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.

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 charitable company.

Our approach was as follows:

•We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.

•We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.

Page: 10

THE WORLD CHILDREN'S FUND

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE WORLD CHILDREN'S FUND FOR THE YEAR ENDED 31 MARCH 2023

•We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

•We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.

•Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

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

20 November 2023

Page: 11

THE WORLD CHILDREN'S FUND

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
Unrestricted Funds
Note 2023 2022
£ £
Income
Donations and legacies
Donations and appeals 472,295 500,999
Legacies and bequests 47,950 61,864
Gifts in kind 1,835,289 1,600,197
Investment income
Bank interest 4,199 147
Total Income 2,359,733 2,163,207
Expenditure on:
Raising funds 3 174,315 140,754
Charitable activities 4 2,208,587 1,949,309
Total Expenditure 2,382,902 2,090,063
Net movement on funds (23,169) 73,144
Total Funds Brought Forward 1,051,392 978,248
Total Funds Carried Forward 11 1,028,223 1,051,392
----- End of picture text -----

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

All income and expenditure is unrestricted.

All income and expenditure derives from continuing activities.

The notes on the accompanying pages form an integral part of these accounts.

Page: 12

THE WORLD CHILDREN'S FUND Balance Sheet AS AT 31 MARCH 2023 2023 2022 2022 x•d Asxts T?ngbkn frAed a55¢ts 10.6Sg Current A8Mts Debtors Cash •t tyank and In hond 1S,910 1.02S.038 tJ,764 1.039.666 1,040.946 1.063.420 ¢r•dit¥r•'. Amounts falllnq du• wlthln an• y••r 10 22,6971 N•t Curr•nl A•••ts 1.020,285 1.028.223 1,040.733 1.051.392 Toial N•tAwis Fund unr•51r￿ fvrnjs 1.028.223 1,OS1,392 Th810 fina￿￿ stat•ments W bew wep•r•d ￿ JLrofTkn th• grtytsp3n5 appjicable to wnwl•s suèj•ct10 tha smo11 ctynm'os r•aknewthin Pwt 1$ d lh• Compath Act 20J6. Th• fj¢t•s ￿ Iha •CwhW•n￿n9 pw fonn •n inw prt ofthwo •yJ)unts. 16. fiJ¢rfEAS£E go75 Apprtsv•d by the 8o•rd ofTru8¢aw. autr￿1¢￿ fty ￿$tr￿U￿On. on .. . ............................................ and sign8d ￿ they by. P8ge.' 13

THE WORLD CHILDREN'S FUND

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

Cash flows from operating activities
Net (Expenditure)/ Income
Adjustments for:
Depreciation
(Increase)/ Decrease in debtors
Increase/ (Decrease) in creditors
Net cash generated by/used in operating activities
Cash flows from investing activities
Cost of purchasing fixed assets
Net cash from investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
(23,169)
3,741
7,854
(2,034)
(13,608)
(1,020)
(1,020)
(14,628)
1,039,666
1,025,038		 2022
£
73,144
4,676
(5,385)
1,696
74,131
(4,462)
(4,462)
69,669
969,997
1,039,666

Analysis of changes in net debt

Cash at bank and in hand
Total cash and cash equivalents		 Foreign
exchange
movements
At 31 March
2023
£
£
£
1,039,666
(4,558)
1,029,596
1,039,666
(4,558)
1,029,596
(10,070)
Cashflows
At 1 April 2022
£
(10,070)

Page: 14

THE WORLD CHILDREN'S FUND

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2023

1 Accounting Policies

A summary of the principal accounting policies adopted, judgements and key sources of estimation uncertainty, is set out below.

Basis of Preparation of the Financial Statements

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charitable company is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the 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 (The FRS 102 Charities SORP), the Companies Act 2006 and Charities Act 2011.

The financial statements are prepared in sterling, which is the functional currency of the charity, rounded to the nearest pound.

Going concern

The trustees have assessed whether the use of going concern and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the trustees have considered the charitable company’s forecasts and projections and have taken account of pressures on donations. After making enquiries, the trustees have concluded that there is a reasonable expectation that the charitable company will have adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

Income

Voluntary income is recognised when the charity has entitlemnet to the the income, it is probable it will be received and the amount can be reliably measured. Income received in cash by way of donations are included in full in the Statement of Financial Activities as soon as they are received. Bank interest receivable is also included on a receipts basis.

Legacies are recognised in the statement of financial activities when there is reasonable probability and reliability of receipt, their value can be accurately measured and the charity is entitled to the income.

Gifts in Kind

Income in the form of gifts in kind are included in the Statement of Financial Activities only when assets donated to the charity are distributed. Gifts in kind are donations of commodities directly usable in charitable programmes such as food, clothing and medical supplies. The charity has a monitoring programme in place to ensure that commodities are appropriately valued at wholesale or less, culturally appropriate for the designated programme, and can be both properly shipped and distributed free of charge to the intended beneficiaries.

Gift Aid Repayments

Income from gift aid repayment claims is only included for claims which have been submitted for tax periods ending on or before the year end and when the receipt of this income is more probable than not.

Page: 15

THE WORLD CHILDREN'S FUND

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2023

Expenditure

Expenditure, which is charged on an accruals basis, is allocated between:

Charitable activities comprises all the expenditure incurred by the charity in meeting its charitable objectives and is further analysed between:

Where items of expenditure involve more than one cost category these costs have been apportioned on a reasonable basis as determined by the trustees. One particular area where the cost is material to the charity is in the production and distribution of direct mailings.

Expenditure has been allocated on the basis of whether the educational content of the individual mailing is significantly high enough so as to be material. When this holds true, the cost of the mailing is allocated on a pro-rata basis comparing the educational content (costs in furtherance of the charity's objects) to the fund raising content (raising funds). The educational content is determined by the amount of text and space on each mailing that is dedicated to material of an educational nature.

Fund raising expenditure i.e. text that may induce a donation from the recipient, is allocated upon the basis of the volume of the text and space that is not related to text of an educational nature.

Support costs comprise all other overhead costs for the running of the charity as an organisation and the costs primarily associated with the constitutional and statutory requirements.

Foreign Currencies

Transactions in foreign currencies are translated at the exchange rate ruling at the date of the transaction, the average rate being used as an approximation to this rate. Monetary assets and liabilities in foreign currencies are translated at the rates of exchange ruling at the balance sheet date. All exchange differences are dealt with through the statement of financial activities.

Depreciation of Tangible Assets

All assets costing more than £400 are capitalised.

Tangible fixed assets are stated at cost, less depreciation.

Depreciation is provided at rates calculated to write off each asset over its estimated remaining life on a straight line basis at the following annual rates:

Computer equipment over 3 years Office equipment and furniture over 4 years Leasehold improvements over 10 years

Page: 16

THE WORLD CHILDREN'S FUND

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2023

Fund Accounting

All the funds held by the Charity are unrestricted funds, being funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

Critical accounting estimates and areas of judgement

In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year.

Other financial instruments

i. Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.

ii. Debtors and creditors

Debtors and creditors receivable or payable within one year of the reporting date are carried at their at transaction price.

Page: 17

THE WORLD CHILDREN'S FUND

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2023

----- Start of picture text -----
2 Net movement in funds 2023 2022
£ £
Movement in funds stated after charging:
Foreign exchange loss 4,558 1,144
Depreciation 3,741 4,676
Operating lease rentals 26,048 25,069
Auditors' remuneration (note 5) 19,185 17,147
3 Raising Funds 2023 2022
£ £
Postage 18,550 15,747
Printing and mailshop 82,237 47,363
Database maintenance 43,789 44,709
Production fees 12,499 22,502
Allocated support costs (note 5) 17,240 10,433
174,315 140,754
4 Charitable Activities
2023 2022
Grants Programme £ £
Gifts in kind 1,835,289 1,600,197
Grants paid to institutions 140,470 150,796
1,975,759 1,750,993
Please refer to the Trustees' Report for details of significant grants paid.
Costs of activities in furtherance of the charity's objectives 2023 2022
£ £
Education and development 159,887 128,444
Support costs of education and development (note 5) 72,941 69,872
232,828 198,316
Total Charitable activities 2,208,587 1,949,309
----- End of picture text -----

Page: 18

THE WORLD CHILDREN'S FUND

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2023

5 Support costs

Salaries (See note 7)
Depreciation
Occupancy costs
Sundry
Governance costs:
Legal and professional fees
Auditors remuneration: For current
year
Support costs
Salaries (See note 7)
Depreciation
Occupancy costs
Travel and similar expenses
Sundry
Governance costs:
Legal and professional fees
Auditors remuneration: For current
year
Auditors remuneration: In respect
of prior year		 £
2,119
374
3,480
6,332
4,935
-
17,240
£
2,080
468
3,308
-
2,344
2,233
-
-
10,433
Fundraising
Fundraising		 £
19,068
3,367
31,321
-
-
19,185
72,941
£
18,720
4,208
29,774
23
-
-
10,179
6,968
69,872
Education and
Development
Education and
Development		 2023
£
21,187
3,741
34,801
6,332
4,935
19,185
90,181
2022
£
20,800
4,676
33,082
23
2,344
2,233
10,179
6,968
80,305

Page: 19

THE WORLD CHILDREN'S FUND

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2023

7
Staff Costs
Wages and salaries
Social Security costs		 2023
£
21,187
-
21,187		 2022
£
20,800
-
20,800

The key management personnel are the Trustees.

The total remuneration paid to key management personnel was £nil (2022: £nil).

The average number of employees during the year was 1 (2022: 1). No employee earned £60,000 per annum or greater in the year (2022: none)

No trustee received remuneration in the year (2022: none), nor were any trustees reimbursed for travel expenditure (2022: none)

8
Tangible Fixed Assets
Cost
As at 1st April 2022
Additions
As at 31st March 2023
Depreciation
As at 1st April 2022
Charge for the year
As at 31st March 2023
Net Book Value
As at 31st March 2023
As at 31st March 2022
9
Debtors
Other debtors
Prepayments and accrued income		 Leasehold
Improvements
£
21,402
-
21,402
14,090
2,140
16,230
5,172
7,312		 Computer
Equipment
£
19,418
1,020
20,438
16,071
1,601
17,672
2,766
3,347		 Office
Equipment
and Furniture
£
2,567
-
2,567
2,567
-
2,567
-
-
2023
£
5,921
9,989
15,910		 Total
£
43,387
1,020
44,407
32,728
3,741
36,469
7,938
10,659
2022
£
9,405
14,359
23,764

Other debtors are financial instruments measured at present value.

Page: 20

THE WORLD CHILDREN'S FUND

NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2023

10 Creditors: Amounts falling due within one year

Creditors: Amounts falling due within one year
Trade creditors
Accruals		 2023
£
11,065
9,598
20,663		 2022
£
8,442
14,255
22,697

All creditors except for other taxes and social security are financial instruments measured at present value.

11 Unrestricted Funds
General reserve		 Balance at
1 April 2022
£
1,051,392		 Net
decrease
for the
period
£
(23,169)		 Balance at
31 March
2023
£
1,028,223

12 Operating Leases

At 31 March 2023 the charity had annual commitments under non-cancellable leases as follows:

Expiry date:
Within 1 year
Between 2 and 5 years		 2023
2022
£
£
15,948
15,948
22,593
38,541
38,541
54,489
Land and Buildings

13 Legal Status of the Charity

The charity is a company limited by guarantee and, at 31st March 2023, had 4 members (2022: 4 members). In the event of winding up, the liability of each member to contribute to the assets of the charity is limited to £10.

Page: 21

THE WORLD CHILDREN'S FUND NOTES TO THE ACCOUNTS FOR THE YEAR 31 MARCH 2023

14 Connected Party Transactions

Two Trustees of the Charity (Joseph Lam and Ruth Kendrick) assisted in the establishment of other World Children's Fund and Medical Mission International charities throughout the world that share similar visions and purposes as The World Children’s Fund and they are also on some of those other charities boards. However, the Charity does not consolidate these foreign entities in its financial statements, as they are separate legal entities with no one controlling party. Neither were there any financial dealings with these entities during the year, apart from those transactions, and year end balances already disclosed below in accordance with FRS 102.

Of the foreign entities mentioned above, the following transactions occurred:

Creditors
Medical Mission International (UK)		 -
2023 Payments
/ (Receipts		 2023 Balance
£
-		 2022 Balance
£
-

As stated previously in Note 7 of the Financial Statements, no World Children's Fund UK Trustee receives any salary or compensation from the Charity.

Joseph Lam and Ruth Kendrick are also Trustees of Medical Mission International UK and receive no compensation for those services.

15 Company information

World Children's Fund is a private company limited by guarantee incorporated in England and Wales.

Page: 22