CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 CHARITY REGISTRATION NO. . ENGLAND AND WALES 1079770 SCOTLAND SC043874 COMPANY REGISTRATION NO. 3864620 (ENGLAND AND WALES) CAUDWELL CHILDREN {A COMPANY LIMITED BY GUARANTEEI LEGAL AND ADNtINISTRATIVE INFORMATION Trustees C Bennett J Griffiths L Morris J Alexander R Mehta M Griffilhs lappoinled 16" February 2022) Secretary C Bennett Charity number 1079770 Charity Registered in Scotland SC043874 Company number 3864620 Registered officè and Charity office Caudwell International Children's Centre Innovation Way Keele Science & Innovation Park NewGaslle-under-Lyme Staffordshire ST5 5NT Audltors Haysmacinlyre LLP 10 Queen Street Pla London EC4R 1AG Bankers Barclays Bank pl 36 Town Road Hanley Sloke-on-Trent ST12PJ Solicitors Knight & Sons The Bramplon Newcastle-under-Lyme Staffordshire ST5 OQW CAUDWELL CHILDREN {A COMPANY LIMITED BY GUARANTEEI CONTENTS Page Trustees, Report Independent Auditor's Report 20 Consolidated Statement of Financial Activities 23 Balance Sheet 24 Cash flow Statement 25 Notes Forming part of the Financial Statements 26 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI TRUSTEES. REPORT (INCORPORATING STRATEGIC REPORT} Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees who are the Directors for the purposes of the Companies Act 2006, present their report and financial statements lor Caudwell Children for the year ended 31 December 2022. The Trustees confirm that the annual report and financial slalemenls of the Charity comply with current requirements, the requirements of the Charity s governing document and the provision ol the Statements or recommended Practice "Accounting and Reporting by Chariles. ISORP 20151. STRUCTURE, GOVERNANCE AND MANAGEMENT CONSTITUTION The Charity is a chaiitable company limited by guarantee and was sel up by a Memorandum of Association on 25th October 1999. Its Memorandum and Articles of Association were last amended in 2016. Caudwell Children has no share capital and is a registered charity with the Charity Commission in England & Wales as well as the Charity Commission Scotland. Caudwell Children owns fj OOQ/o of the share capital of CCG D&B Ltd. This wholly owned subsidiary operates as a Design and Build Company and is responsible for the design. build and delivery of the Charities new Caudwell International Children's Centre, which opened in September 2018, The management of this subsidiary is carried out on a voluntary basis thus incurring no salary costs and all profits earned are donated back lo Caudwell Children METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES Caudwell Children is governed by a Board of Trustees which comprises a Chair and Trustees. The Chair is appointed by the Board from the existing Trustees. TrLJslees are reGruited to ensure a broad mix of skills and backgrounds. The Trustees are responsible for the governance and support the strategy vision ol Caudwell Childre developed by the CEO, team and with the children, young people and family engagement groups. The Board comprises of a mix of parent represenlalives, medically qualified trustee5 and those with business, people, and legal specific skills. The Board of Trustees meet twice a year lolher meetings, communications occur as required) with the Chief Executive Officer who reviews the PTogress, priorities slralegic direction. charity governance, performance. charity codes of conduct. risk, lo ensure compliance, for example. Responsibility lor agreeing key areas of activity and policy is delegated lo the CEO enabling efficient management and development ol the charity, which are report back into Trustee meetings. The day lo day running of the Charity and execulive responsibility is delegated lo the Chief Executive Officer who is supported by a Senior ManagementTeam. Trustees are appointed for a renew8ble term of three years and are the directors of the company for the purposes ol the Companies Act 2006. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES All new trustees are required to under12ke a comprehensive induction programme and training programme lo learn about the work of Caudwell Children to identify opporlunilies lo become more involved with our work. Trustees are invited lo allend events, sile visils and additional training. All New Trustees meet with the Chief Executive and Senior Team to discuss.. Thei¥ role and responsibilities Key documents including the Memorandum and Articles of Association CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI TRUSTEES. REPORT {INGORPORATING STRATEGIC REPORTI Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Slralegic plan of Caudwell Children The Charities focus on outcomes All future plans CQC Goveinance and Responsivities ISO Policies and Procedures A review of governance is carried out annually, lo assess the effectiveness of the Trustees and identify any improvements to governance arrangements. Updates on our work are offered lo trustees on a regular basis. Trustee's Indemnity Each of the Trustees has the benefit of an indemnity which is a qualifying Ihird-party indemnity 8S defined by Section 234 of the Companies Act 2006. Limits of Liabilit Trustee Indemnity Corporale Liability Employment Piactice Liability Professional Indemnity Fidelity ORGANISATIONAL STRUCTURE AND DECISION MAKING The Charity is driven forward on a daily basis by its CEO, Trudi Be5wiGk. The CEO and the Senior Officers form the Executive Team. Each member of this team has clearly defined areas of responsibility and accountability. The Executive Team inleracl informally on a daily basis, the CEO holds weekly meetings and monthly Board meetings lo discuss and implèment strategic operational issues and lo monitor and control the performance of the Charity against the Strategic Plan. 121 meetings are also held with each Senior officer by the CEO every six weeks lo focus on projects, careers and lulure development. These meetings update the charity teams and reporting systems across the charity including the Trustee reports where applicable. OBJECTIVES AND ACTIVIES Vlsion A world where all disabled children and their families have choice, opportunity, dignity and understanding. Mission Practical and emotional support through compassionate and efficient services. Motto Whatever il takes. CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEE} TRUSTEES, REPORT (INCORPORATING STRATEGIC REPORTI (continued) FOR THE YEAR ENDED 31 DECENIBER 2022 STRATEGIES FOR ACHIEVING OBJECTIVES The following are the four key slralegi¢ objectives for the reporting period 2022. Continue to be a leading provider of equipment, Irealmenl, therapies and support lo disabled children. Raise the profile and awareness of the Charity brand, helping people lo understand disabilities and childhood illness and the impact our suppoil makes to individual1ives. Continue lo develop the infrastructure to enable Caudwell Children to fulfil ils long term aims. Expanding the Services provided and Devekop I Create new services to fil new needs. These objectives are undertaken with the aim of enabling Caudwell Children lo provide a continued high-quality service lo its largel sector of socially excluded individuals. ACTIVITIES & SERVICES FOR ACHIEVING OUR GOALS To Iransft)rm lives.. Family support services and short break aclivilies, al limes of crisis Mobility and sensory equipment Access lo life-saving surgeries and treatments Life changing therapy and support programmes for children with brain injuries and their families Holistic therapies and suppoil programme8 for Autistic children and their families Sports equipment lo enable talented athleles lo participate in competitive sport Grow the delivery of our new CCAS service from our new CICC centre Attend National & International conferences lo raise awareness ol our work OUR ASPIRATIONS From the very beginning Caudwell Children has always aspired to be recognised as a leading national provider of services for disabled children and an example of best practice in fundraising. The charity continues to focus on service provision, in parlicLJlar the way we help and support children and families affected by autism spectrum disorders and how we grow lo meet the ever increasing global demand for autism assessments and inlervenlion. During Ihe year local NHS contracts were won lor the delivery of our CCAS Service. This was only limited by the international skills shortage for clinical specialisms including psychology, speech and language Iherapisls and occupational Iherapisls. A continued recruilmenl drive throughout 2022 maintained the required clinical expertise lo deliver the charity's vision for an efficient and ¢osl-effeclive assessment and intervention pathway. Whilst there has been and continues lo be a shortage in the labour market we continued lo gTOW both in resource and impact. During 2022 all of the MDT Imulli-disciplinary clinical team) membeTS continued lo develop the CCAS service by carrying out the much-needed ASD assessmenls both from the CICC and online. Online training lor ADIR and ADOS was continued lo all new clinical team memt)ers. This widened the breadth of skills within the clinical team enabling them to offer support to more children & families both virtually and face-to-face. CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT (INCORPORATING STRATEGIC REPORTI {continuedl FOR THE YEAR ENDED 31 DECEMBER 2022 These ongoing developments assist us in our principle Ihat the right pathway and subsequent research will provide vital evidence, improved early inlervenlion pathways, increased independence and beller farNily wellbeing for the millions of people living with autism in the UK and worldwide. We are pleased lo confirm that throughout 2022, Caudwell Children remained registered with the CQC maintaining an overall rating ol Good allowing the charity lo continue lo operate its full in-house autism service. Our continued relationship with the CQC represenlalives remained remole due lo the priority lor inspections being assigned lo less well-perlorming healthcare providers. We continue to work towards the achievement of an 'Outstanding' rating upon the next inspection. During November 2022 Ihe charity also underwent ils annual ISO audit which we are pleased to report was another pass with no major or minor issues raised for improvement. This once again underpins the charity's management's dedication and focus when il comes to documented policy and procedures and ils desire in looking for and being open lo, continuous development and improvement. Our primary objective has not changed and is still to reach and provide support to every disabled child living in the UK, regardless of disability. Bul we also feel that we have a critical pail lo play in Ihe global disability community and by sharing research and best pracb'ce with our partners around the world we can potentially help millions ol children. PUBLIC BENEFIT STATEMENT Directors of a charity have 8 duty lo report in their Annual Report on their charity's public benefit. In selling plans and priorities for areas of work, as Trustees of Caudwell Children we have followed the lalesl guidance from the ChaTity Commission on the provision of public benefit, in accordance with section 17 of the Charities Act 2011. In parlicular, we consider how activities will contribute lo meeting the objectives they have set and focus on the services that will deliver the greatest impacl lo the most disadvantaged disabled children and their families. In delivering these services, we clearly identify the impact to the children and families we work with and monitor short and long term progress. We are passionate about ensuring our services transform lives and that we continue to learn the most effective and efficient ways lo support OUT beneficiaries. We have demonstialed how Caudwell Children delivers ils core charitable objective in the Strategic Report section which sets out our objectives and achievements during financial year of 2022. Caudwell Children is established for the public benefit of children in the community, delivered through equipment, Irealmenl, therapies and support of disabled children and young people. The ChaTIIy is established for the public benefit under the following purposes.. Relief of poverty and sickness Advancement of edLJcalion Promotion of equality and independence CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT IINCORPORATING STRATEGIC REPORTI Icontlnued) FOR THE YEAR ENDED 31 DECEMBER 2022 As Trustees we have considered this malter and concluded.. 1. That the aims of the organisalion continue lo be charitable,. 2. That the aims and the work done give identifiable benefits lo the charitable sector and both indirectly and directly to individuals in need., 3. That the benefils are for the public, are not unreasonably reslricled in any way and ceriainly not by ability lo pay.. and 4. That there is no detriment or harm arising from the aims or activities STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE Thè last 12 months saw Caudwell Chlldren build on the service delivery innovations we developed during the COVID-19 pandemic and continue lo reach high volumes of disabled and aulislic children throughout the year with a wide range ol life-changing support. Using the same direct stakeholder consultation that the charity has instilled since ils formation our services continue lo adapt and change lo meet the needs of disabled and aulislic children and their families. Across the spectrum of the charity's seNiee delivery portfolio we cater lor the needs of children and young people with varying aspirations and needs. In 2022 the holistic support of our Family Support Servi￿ continued lo reach high numbers of families in need, while the Get Sensory seNice maintained the level of need first identified during the pandemic., meanwhile the Autism Service continues lo scale lo meet the ever-growing demand and our Short Breaks service has maintained its effective work in local communities. Since 2005 the charity has delivered services across England, Scotland. Wales and Northern Ireland. We continue lo support families from diverse and hard to reach communities across the UK, endeavouring to ensLJre no child wlh additional needs goes wilhoul the help they need. We continue to support a high volumè of children with a primary diagnosis of autism bul also maintain a wide breadth of pan-disability support, with applications from children living with 51 different conditions being recorded over the las112 months. In regards lo children reached thi5 is the most successful year ever in our twenty-two-year history. 11 is an achievement we are all extremely proud of and is leslament to the hard work of the entire charity team, only made possible th8nks lo our generous donors, volunteers and suppoilers. As the world adapts and recovers from the pandemic, the charity's fundraising also showed positive signs ol growth in some key areas, while also witnessing the continued slTain on the average household finances as the cosl of living crisis began lo lake affect. The ability to return lo traditional face-to-fa￿ fundraising allowed our reverecl events porllolio lo bounce back, with the Bullerlly Ball London and Monaco returning, as well as a new Portugal edition being added to the calendar. CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT (INCORPORATING STRATEGIC REPORTI Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Collaborations with NHS trusts, local authorities and the Geneva Health Aulhorily also boosted income from conlraclual service provision. Mulli-year partnerships with Careys, The Edward Goslling Foundation, Spirit of 2012 anLI Energy Redress contributed to a positive overall outcome. As a result, the charity achieved a 33.5010 increase in fundraising income in comparison lo 2021 and returned to pre-pandemic income levels. Our donors allow for life changing support to be given lo the most vulnerable in society. Our supporters provide us with the independence lo ensure that disabled children and their families, voices are heard wilhin UK Government and across local health and social care providers. The charity team continue with the ongoing focus on building partnerships with corporate supporters, key national services, grant making bodies and commissioners across the UK. The development of Caudwell Children and ils services have always been based on the needs of disabled children and their families. By listening carefully lo beneliciaiies, the charity has carefully shaped their growth to try and fill the gaps left by stalulory services and other charities. Wthere necessary. the charity will use ils public profile and influence lo highlight the plight of disabled children and carers in continued efforts lo positively affect policy and practice both domestically in the UK and Inlernalionally. During 2022 we continued lo find appropriate platforms lo ensure the opinions of experts by experience could be heard and continued to collaborate with partner organisalions and colleagues from across the volunlaTy sector to Sha￿ best practice and raise national or political awareness for topical issues when necessary. In particular the charity's public and political influence continued with parlicipation in the Institute of Directors {Grealer Birminghaml, with CEO Trudi Beswick serving as the Inclusion & Diversity Ambassador, the steering committee of the Children 1 si Alliance, the new British Standards Inslilule PAS design standards for neurodiversity, as a Board Member of the Children's Activities Association and the Stakeholder Engagement Ambassador ol the Design in Mental Health Network. Enabling the team, families and Childfftn to collaborate with other organisalions and specialisls whilst raising the profile of the needs of children and families. services and awarenes5. In Westminster, the eharily also maintained active participation in several All Parly Parli8menlary Groups,. lor Autism, Cerebral Palsy, and for a Fil & Healthy Childhood as well regularly allending the Council for Disabled Children meetings and contributing as stakeholders for the National Institute for Clinical Excellence IN.I.C.El again forming partneiships and collaborations. The Birmingham 2022 Commonwealth Games will be rightly remembered for some stunning sporting peilormances, bul ils true legacy is likely lo be away from the sporting venues. In collaboration with Spirit of 2012, K'antu Ensemble, Birmingham 2022 and the greater Birmingham community. Caudwell Children successfully delivered the 'AII Roads Lead To Alexander, project representing the breadth of diversity that the Commonwealth has lo offer. Through music and arl workshops, working with children with special educational needs and disabilities, the project produced an exciting seriès ol performances from local community groups across four local community venues - including a special performance in the heart of Birmingham City Centre during the Games, CAUDWELL CHILDREN {A COMPANY LIMITED BYGUARANTEE} TRUSTEES, REPORT IINCORPORATING STRATEGIC REPORTI Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Throughout Ihe year the charity team maintained productive working partnerships with organisalions including the Birtningham Children's Hospital, National Aulislic Society, The Design in Mental Health Nelwork. Garfield Weston Foundation, Edward Goslling Foundation, Children's Activities Asso¢ialiott, Westminster Autism Commission, Keele University, University College London Hospital and Universily Hospital North Midlands. During the year CEO and Senior Offi'cers have also continued the charity's international influence IhroLJgh relationship5 with The Milken Inslilule, The Giving Pledge and The Sikh Human Rights Group, with whom the charity conlinue lo contribute lo the United Nations Human Rights Council. One of the charity's core strengths is being recognised as a national charity with a local heart. This is achieved by working within local communities, lo be a safety net for families unable to gain the help they need. This is made possible by the teams work in Norlhern Ireland, Scotland, England and Wales. ensuring disability and Caudwell Children remains high on the political agenda across all our nations. The charity has maintained partnerships wilh Children's hospitals acros5 the UK including Great Ormond Street, Birmingham Children's Hospital, Bristol Children's Hospital, Leeds General, University Hospitals Notlingham, Royal Belfast Hospital for Sick Children, Royal Hospita5 for Sick Children Yorkhill and University Hospital of Wales. We also continue lo be commissioned by Slaffordshire County Council lo deliver short break acttvities as part of the Aiming High for Disabled Children strategy. High profile fundmising events continue lo prove an effective vehicle for the charity to raise awareness and funds for ils services. The 2022 edition of Caudwell Children's Bullerfly Ball, London sponsored by Careys sparked a paparazzi frenzy around the iconic Leicester Square when the slar-sludded event arrived al The Londoner Hotel for the first lime. Host charity ambassador, Peter Andre, introduced pèrformances from Nicole Scherzinger, Jessie J and Mabel to help deliver another unforgettable event which iaised £1.5million profit lo help fund the charity's services in 2022. Later in the summer the charity also look the event lo the Quinta do Logo resort on the Algarve for the inaugural Bullerfly Ball, Portugal where we were joined by esteemed guests and philanthropists and raised over É300,000. Due lo the success of the new gala dinner event we are planning a return for 2023. The autumn then saw Ihe welcome return of the Cycle with Champions challenge followed the ultra- glamorous Bullerfly Ball, Monaco masterminded by Modesta Vzesniau5kaile. Reluining lo the opulent ballroom al the Hotel Hermitage Monte-carlo, guests were enthralled by an evening of exquisite entertainment and fine-dining before learning mole about the charity and generously donab'ng an incredible é961,000 in the auction. We would also like to thank the events headline sponsors, Burgess Yachts and Wider. The passionate and unremilling support of the charity's founder, John C8udwell. and his network of family friends and associates was again a significant conlribulor to the charity's overall success in helping more families than ever before. In 2020 John Caudwell launched his innovative new 'Life Changers Circle., an ex¢1usive network of high-value donors who share the same passion for philanthropy and wish lo ne￿ork with like-minded people, with th8 help of his dedicated Charity Pioneer, Jo-Ann D'Gosla-manuel. In 2022 we welcomed the first six members of the Life Changers Circle to a very special unveiling of their 'slar' on the dedicated instillation al the Caudwell International Children's Cenlre. Each member has donated an initial £100,000 to the charity and pledged lo donate £1 million eaGh over 10 years. CAUDWELL CHILDREN {A COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT {INCORPORATING STRATEGIC REPORTI Icontlnuedl FOR THE YEAR ENDED 31 DECEMBER 2022 With special thanks lo Life Changers., Mr Avnish & Mrs Anita Goyal, Mr Harry & Mrs Charlolle Fenner, Mr Graeme & Mrs Leanne Carling, Mr Andrew & Mrs Stephanie Sheppard, Mr Lex van Hessen & Ms Taljana Simic and Ms Quentin Esme Brown. Total income for the year increased by 33.5Vo compaied to 2021. The CEO and Senior officers maintained a strong focus on maximising the available income lo provide for our ongoing services. With every penny raised they conlinLJe to drive efficiencies and reduce expenditure where ever possible. 11 is a core value of all our employees and volunteers lo constantly search and obtain the best value for money in all that they do. This is done with the clear mind-sel that the more we save the more services we are able lo deliver lo greater numbers of disabled children and their families. We are once again extremely proud lo have maximised every £1 raised, thus enabling us to provide more than £2.27 worth ol goods and services lor every £1 raised throughout 2022 and continuing the achievement of more than doubling the pound in every year of the Charities fundraising history. This level of efficiency is further compounded by the Charity's unique situation, with Mr John Caudwell commilling an annu21 personal donation lo cover the organisalion's management and administration costs., therefore, offering donor's peace of mind that their direct donations are spent directly on the children and families making the best possible impa¢l. Meanwhile, Caudwell Children continues to work closely with colleagues across the voluntary sector lo ensure the most efficient and elleclive delivery of services. Over the past twelve months the charity has continued effective partnerships with organisalions including Edward Goslling Foundation. Tree of Hope, Jus14Kids, Variety UK. Independence al Home. Family Fund and NewLife. The team also furthered our links with charitable services close lo our Head Office in Slaffordshire, with regular interaction with the North Staffs Autism and Asperger Society, Douglas Macmillan Hospice and Parent Voice. REPORTING BACK ON OUR OBJECTIVES A founding principle of Caudwell Children was to offer supporters transparency and efficiency. Devised during the pandemic by CEO, 'The Big Bang, strategy document is an all-encompassing flowchart detailing the inputs and oulpuls of the charity including service delivery objectives, largels and costs. Provided lo every team member and shared with external stakeholders, The Big Bang provides clarity over the strategic pillars of the charity and the key deliverables for the year. The useful reference tool also highlighted the exlenl and breadlh of PLJb1ic and political work being underlaken bul was not always visible lo team members. As in previous years the team has not slowed down in the pursuit of Caudwell Children holding a substantial and recognised position within the charity market. Continuing to sel challenging goals and working through collaborative methods lo be identified as the UK leading voluntary provider of Irealmenl, therapies and equipment across the UK. The scale of our direct work and its impact continues lo gain a much wider recognition because of the creation and delivery of efficient, effective and person lead services. We have widened our scope of delivery partners and funding bodies allowing us lo deliver new digital training services amongst other new service5. CAUDWELL CHILDREN {A COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT {INCORPORATING STRATEGIC REPORTI Icontinued} FOR THE YEAR ENDED 31 DECEMBER 2022 The team's leadership continues lo focus on the needs of the children and families and the support of the staff in delivering these services even in the toughest of circumstances. The digital strategies brought forwards during the pandemic, along with the training and systems pul in place have continued through 2022 aSlowing the charity lo continue lo respond lo the changing impac15 of the post-pandemic world. These new learnings and skills have added lo Caudwell Children's future capability lo deliver ever changing services and it is this that gives us so much pride in the team. It is this continued leadership, management and dedication that stands the charity on firm foundations and why il consislenlly achieves ils ambitious largels and has even larger ambitions for the years ahead. Whilst being challenging in scale these future plans aim lo be recognised across the sector as a true exemplar of what can be achieved when many disciplines are brought together lo locus on the issues at hand. Each year we continue to expand our reach into new communities, which in turn changes the futures of disabled children and their families who continue to be in need of our se¥vices. In order to deliver more and more life changing therapies, we recognise the need to develop our service delivery provision. We also understand the national and global disability landscape and need for increased support and research in lo the Cause and effect of the most prevalent disabilities. In order lo meet these future goals, we designed. developed, bLJiIt and opened the Caudwell International Children's Centre in 2019. This mulli award winning, bespoke environment embraces the lalesl technologies within an integrated infrastructure that has been designed with parent and child collaboration as well as industry leading professionals. The Centre provides a slale-of-the-arl base for our therapies and creates an environment were controlled, evidenced based research can be undeilaken. Our aim lor this research is to change the way some conditions are managed. ¢hanging the futures of millions of people around the world. With the build now Complete and the centre fully open, the ongoing management ol the wholly owned subsidiary CCG D&B Ltd is managed and administered on a purely voluntary basis by the CEO and the CFO of Caudwell Children. This ensures that there will be no subsidiary iunning costs incurred by the charity and more importantly all profits earnl by the subsidiaiy during the construction phase have been donated back lo Caudwell Children. In order lo achieve the ongoing goals and aims of the charity, we seek your support for muGh more than money alone. We seek your support for a new approach to disability and a lifelong parlneiship, giving disabled children the chance lo lead a full and independent life. Our inleivenlions and support for disabilities will go way beyond the walls of the chafity, enabling us lo change the disability landscape in the UK which will be achieved th￿Ugh meaningful stakeholder engagement. collaboration and communication. CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT (INCORPORATING STRATEGIC REPORTI (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 OBJECTIVE 1 Continue to be a leading provider of equipment, treatment, therapies and support to disabled children As with any good busines5, 11 is not just scale on which we measure our success, bul the quality of service and the meaningful impact Ihal we have on children's and families. lives. Our extensive research and engagement funGlion measures individual goal selling and standardised quality of life measure5 to ensure that we continue lo address the needs of the beneficiaries we are here lo suppoil. There are some things that affèct quality of life that are unfortunately beyond our Control ICOVID-19. personal tragedy, housing elcl but we continue lo be parl of a positive change in most people's lives that access our services. Overall, of the beneficiaries that completed the quality ol life measures research study thioughoul 2022, 83010 of all respondents reported an improvem¢nt in quality of life since receiving a service from the charity. 90h of respondents reported no change and 8010 reported a deciease. OBJECTIVE 2 Raise the profile and awarengss of the Charity brand, helping people to understand disabilities and childhood illness and the impact our support makes to individual lives Collaboration has always underpinned the charity's mission to create a better world for disabled and autistic children. It is through strategic partnerships and networks that the charity IS able to reach greater numbers of beneficiaries and ensure the voices of people wilh lived experience of neurodiversity and disability are heard. In a post-pandemic environment many of the charity's alliances have increased their activity and impact. Partnerships with the charity foundeT, John Caudwell. and organisalions including the Great Brilish Entrepreneur Awards and the All Party Parliamentary Group for Cerebral Palsy have been impoilanl parts of the charity's successful outreach in 2022. which have been complimented with service delivery partnerships with NHS trusts and local authorities and extensive work by the CEO across many organisations aimed al Improving environments, systems and policy for disabled people. OBJECTIVE 3 To develop the infrastructure to enable Caudwfrll Children to fulfil its long term alms Recruitment and workforce retention remains one of the biggest challenges to the charity, as we experience the same shortage of clinical specialties as the whole healthcare netwoik, including psychologists, speech & language Iherapisls and occupational therapists. Despite the global shortage in qualified clinical staff we continue lo provide fantastic career opportunities for a growing number of our 'Purple People, and offer on-the-job training for an increasing amount ol students. apprentices and trainees. io CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT {INCORPORATING STRATEGIC REPORTI Icontlnuedl FOR THE YEAR ENDED 31 DECEMBER 2022 This dedicated and passionate workforce is complemented by a team of equally passionate and skilled volunteers, wilhoul whom we would not be able lo deliver the same levels of support lo our beneficiaries and we are incredibly grateful. Devised during the pandemic by CEO, 'The Big Bang, is an all-encompassing flowchart detailing the inputs and oulpuls of Ihe charity including service delivery objectives, largels and costs. Providecl to every team member and shared with external slakeho1ders, The Big Bang provides clarity over the strategic pillars of the charity and the key deliverables for the year. The useful reference tool also highlighted the exlenl and breadth of public and political work being undertaken bul was not always visible lo team members. OBJECTIVE 4 Expanding the servlces provided and Develop I Create new services to fit new needs. The last 12 months saw Caudwell Children bLJild on the service delivery innovations we developed during the COVI D-19 pandemic and continue lo reach high volumes of disabled and aulislic children Ihioughout the year with a wide range of life-changing support. Using the same direct stakeholder consultation that has been insli11ed in the charity since ils formation our services continue lo adapt and change to meet the needs of disabled and autistic children and their families. Across the spectrum of the charity's setvice delivery portfolio we cater for the needs of children and young people with varying aspirations and needs. In 2022 the holistic support of our Family Support service continued lo reach high numbers of families in need, while the Gel Sensory service maintained the level of need first identified duiing the pandemic., meanwhile the Autism Service continues to scale to meet the ever-growing demand and our Short Breaks service has maintained ils effective work in local communities. li CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT (INCORPORATING STRATEGIC REPORT} Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 COVID-19 IMPACT STATEMENT ON STATEGIC REPORT POST YEAR END. COVID-19 had a severe adverse impa¢t on the finances of Caudwell Children during the whole of 2020 and most of 2021. Despite a continued disruption lo society's norms. we managed lo hold several mass participation events and raised millions in the process during 2022. These positive results are eonlinuing into the slarl of 2023 and whilst we may well need lo create some IuTlher readjuslmenls lo future strategies and timings of planned goals and outcomes we believe these will be much smaller going forwards than they were a year or two ago. As has been mentioned several limes above, this once in a lifetime event has been recognised by our CEO and Senior officers, as an opportunity lo review how Caudwe11 Children's services can be adapted and delivered given these ever-changing external laclors. We are extremely pleased by the way the ¢haTily has very quickly adapted lo the new ways of operating and have brought forward some of the planned developmènts regarding remote assessments and virtual workshops. Whilst it was always the vision lo ineorporate technology as much as is appropriate into our future developments, this pandemic has been Ire8led as an opportunity lo expedite these visions into firm practice5 $0 as to reach as many children and families as possible and not allow them lo bè furlher isolated through no fault of their own. We have every confidence in the leadership and team lo continue with this approach Ihroughoul. We do believe il is important and correct lo assure our m8ny supporters and readers ol these slalemenls that we remain as determined as ever to provide our muGh~needed services in the very best way they can be provided in whatever formal is best for the children and families we serve throughout 2023 and beyond safely. INVESTMENT POLICY AND PERFORMANCE Investments Our policy Is lo ensure that sufficient funds are secured for 1000/0 of all the family support equipment, treatment and therapies, at the point families enter the services. As a result of the level of commilled expenditure, the majority of the funds have been reslri¢led. These separate restricted funds can only be used for the intended services they are reslricled lo. This leaves free reserves equal lo just under seven months of the budgeted general fund expenditure. These are slightly higher than the target of six months bul are much lower than the previous two years. These unrestricted reserves are held in case of any sudden decline in income and ensure commitments made lo providing services lor children can be mel lin the form of conlraclual commitments to staff and premises). Where treatment and therapy is agreed over a specified number of years, monies are reslricled in the accounts against individual child cases, which ensures that all monies are available, as and when required. This process is managed in the monthly management accounts by the CEO, and overseen quarterly by Mr Craig Bennell, Company Secretary. As al 31st December 2022 the charity holds total cash reserves of £9.51m of which E9.26m is deposited in a higher interest bearing instant access accounls. Due lo the nature of the reserves currently held for longer term critical therapy and treatment programmes the chaiily is not in the position lo deposit funds into any longer term higher inleresl accounts. As Trustees, we lake a prudent approach when making decisions about investing the Charity's funds. When investing the Charity's funds, we will aim lo strike the right balance between.. providing the best return on investments with minimal risk., having sufficient funds available lo allow the Charity lo carry out ils purposes elfeclively., Maintaining, and if possible, enhancing the value of invested funds whilst they are retained. 12 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI TRUSTEES. REPORT {INCORPORATING STRATEGIC REPORTI {continuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Trustees, Powers of Investment The Trustee Act gives Iruslees wide powers of investment, including shares in companies.. land rented or leased out by the Charity lo lenanls., inleresl-bearing loans such as government bonds and deposits al banks or building societies., and units in collective schemes, such as unit Irusls. As Trustees, we reserve the right to invest in any or all of such investments. We will not invest in derivatives, pr¢vale equity schemes, land purchased and developed with a view lo sale, works ol art, oi commodities such as gold or vintage wine, acquired with a view lo resale in the lulure at a profil. As Trustees, we may delegate the management of the Charity's investments to a specialist either by investing in one or more collective investment schemes, such as unit trusts., or delegating our investment decisions by appointing an investment manager. Investment Parameters and Restrictions Our investment parameleTS and restrictions are reviewed each year and questioned inlernalTy on a regular basis. All available options are weighed against our internal policies so as lo maximise opporlunilies whilst minimising risk and ethical concerns. Given the above the following guidelines remain in place. All money lo be invested al any particular lime shall be agreed by Ihe Charily CEO and Trustees. At no point should the Charity be wilhoul sufficient funds lo meet ils obligations. A regular cash-flow forecast musl be prepared and reviewed before additional investments are made. Investments should be SLJblect lo minimal risk. No investment should be made in company securities not listed on a re¢ognised stock exchange or in unil trusts not recognised under the Financial Setvices Act 2000. There should be no holdings in single company inveslmenls. The ethical statement sel out below applies to all investments made by the Charity. Review The investment policy is reviewed annually by the Board of Trustees and although we are continually looking for investment opportunities our cash flows do not allow us available funds lo deposit lor the required length ol lime lo benefit from the higher returns. Given the increasing number of children the charity aims lo assist and the Capital investment required lor our new charity building such medium and long-term investments are not practical. RESERVES POLICY As Trustees, we regularly review the reserves position lo ascertain whether or not the funds being held are adequate for Caudwell Children's work. In doing this we lake into consideration the assets required for the provision ol the key provision, quality of provision and financial efficiency. The review looks al the nature of income and expenditure streams. the need lo match variable income with fixed commitments and the nature of the reserves, A minimum level of unrestricted funds and reslricled funds should be maintained, to provide uninlerrupled services. Outside of the Capital project reserves, much of the reslricled reserves are held for the provision of critical longer-lerm Irealmenl and therapy programmes. 13 CAUDWELL CHILDREN {A COMPANY LIMITED BY GUARANTEEI TRUSTEES. REPORT (INCORPORATING STRATEGIC REPORTI {continuedl FOR THE YEAR ENDED 31 DECEMBER 2022 FINANCIAL REVIEW Icontinuedl Unre$trlcted reserves The Charity has historically aimed lo maintain free reserves equivalent lo no more than six months forward overhead expenditure. At 31st December 2022 unreslricled free reseives lunreslricled funds less amounts included in tangible fixed asselsl amounted lo £3,547,552 which is equivalent lo just under seven months forward overhead expenditure. The increase is lower than the previous two years and is predicted to be back lo 6 months in 2023. Through ils risk management slralegy, the Charity also manages risks associated with cash flow, investment and money markets. Free reserves are maintained so that in the event of a sudden decline in income, conlraclual commitments lo staff and funding partners can be maintained. The Charity also held £1,170.000 in designated funds. These funds have been designated for the purpose of malchillg the funding of various projects. These include the final year ol a three year project with the The Edward Goslling Foundation to support our Sports Equipment and Equipment programmes. £fj,000,000 was dÈsi9naled for a new project lo match fund the inslallalion of Autism friendly communication boards into parks and public spaces across the UK. Restricted ReseNes In ordei lo meet our strategic objectives and long-lerm commitments we have specifically raised funds for the following specific purposes.. The provision of providing therapies and Irealmenl for disabled children The provision ol specialist equipment for disabled children To provide practical and emotional support lo disabled children and their families in times of crisis To build, equip and provide Autism assessments from a flagship centre for disabled children as an exemplai of good practice As al the end 2022, £19,792,501 was held in restricted funds of which £16,799,456 is for the sole use of our innovative purpose-buill centre for assessment, support and research which will is being depreciated over a 25 years period. £416,907 is held for Dur in-house Autism programme. In addition lo these £1.606.701 funds are held for treatment, therapy and equipment provision. These funds provide Gore services, ensuring that we can provide equipment and services for the mosl disadvantaged and vulnerable famiSies. Our fundraising ensures that funds are solely available for the specific purpose of providing treatment, therapy. and equipment and therefore are not compromised by the planned expansion of our charitable aclivib'es. FINANCIAL REVIEW With the support of our major benefactors. every pound donaled is able lo be donated directly lo Caudwell Children's seivices supporting children, young people and their families. This coupled with the managements continued locus on efficiency and growth allows for maximum impact lo be made by our people cenlred services on the lives of disabled children and their families. This years, venue for our annual Bullerlly Ball was The Londoner Hotel, Leicester Square and genemled a gross profil of over £1.5m. We thank our all of our supporters for making a success of this event once again. The total income increased this year by £2,063.808 compared to 2021. This was driven by the iedLJclion in COVID reslriclions and the positive impacl of our face-lo-f8ce events inoluding the above mentioned Bulleifly Ball, London. 14 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT (INCORPORATING STRATEGIC REPORTI Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Total expenditure increased by £1.880,129 year on year. This was driven by exlra events and fundTaising as well as an increase in children helped. We continue to focus on reducing costs and increasing efficiencies so as to maximise the p0511ive impacl of all donations. We strive to increase the number of families reached across the UK whilst always focusing on value for money and efficiency. To this end we are delighted lo announce that the number of children helped in 2022 was 14,291 which equates lo a 28.70kn increase on 2022. During the year 2022 the charity did not use any of the Governments Furlough Scheme. A total ol £59,788 was claimed by the charity in the year ending December 2021. Charitable activity In Scotland As a charity registered in England, Wales and also in Scotland, we deliveiy our services in all these areas. Caudwell Children offers and provided its services lo children acros5 Scotland in 2022 including the provision ol the New Get Sensory packs. Financial Planning We continue lo manage the financial affairs through an annual planning process that aligns operational plans to generating the required resources. This annual plan is reviewed on a quarterly basis lo ensure it provides us with the iesources lo meet the charities goals to achieve the vision. The plan 81so focuses on raising people's awareness of Caudwell Children, ils WOTk, disability and the challenges disabled children and their families face. Cash forecasting is critical lo the charities ongoing success and all funds are held in instant access accounts lo allow the CEO and Trustees lo be flexible and reactive lo the demands on the charily.11 is vital that these funds are accessible lo provide the equipment, Irealmenl and therapy services and the family support needs. Vvhilsl Caudwell Children rely heavily upon voluntary income generated through individual giving. This year we have continued lo receive support from our corporate supporters as well as iegular donations from the public. We have also received funding from individual trusts & foundations, NHS and energy Trusts as well as local authority funding. The charity is commilled lo grow its service delivery and therefore ils fundraising, whilst continuing lo focus on efficiency. Whilst we are proud lo delivei the highest quality of services, we are equally proud. if not more so of the efficient manner in which they have been developed and delivered in line with the needs of the young people, children and families, focused on a person-cenlred approach and all achieved by a tremendously well lead and managed team. We are extremely grateful to our commilled and generous supporters and volunteers who have given their lime and or money. and we wish lo inspire other supporters lo join Caudwell Children's journey to help children, young people and families to receive the support they need so that they Gan reach their full potential and achieve their ambitions throughout their lifetime. The charity is ensuring the voice of their beneficiaries and stakeholder5 are heard and can influence change, life plans and sooielal issues which ensuie this can occur. All donors, supporters and partnerships are very important to the team and of course are the back bone of the success of the charity's outcomes. They are supported and are inleracled with, with respect and as their requesls denote which are reflected in the ongoing donor strategy. 15 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT (INCORPORATING STRATEGIC REPORT) Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Income Growth The need lo increase fundraising income was Identified lo cover increased liabilities for Irealrllenl, equipment, therapies, family service5, Caudwell Childr6n Autism Service and the ongoing running costs of the CICC, whilst laying the foundations for long-lerm developments. Awareness about dis8bilily and of our work in this area is key lo meeting the long-lerm vision and during the year funds have been raised lo continue raising awareness and reaching those families most in need. Costs of generating fund8 The cost of generating funds in 2022 was £1,243,780," an increase of £482,222 on 2021. 11 costs on average 15.1 pence to raise each £1 which is an increase on the 2021 cost 0112 5 pence per £1. We are aware of the need lo strengthen and sust2in OLJr fundraising whilst Continuing lo control costs in a challenging economic climate. Throughout 2022 we continued to invest funds lo create and enhance a stable long-lerm giving as well as shorl-lerm one-off events with a taroeled 4..1 ROI. COVID-19 IMPACT STATEMENT ON FINANCES POST YEAR END. As previously slated COVID-19 had a severe adverse impact on the finances of Caudwell Childien during the whole of the reporting years of 2020 and 2021. Despite a continued disruption to society's norms since the siarl of COVED, we have conlinued to hold several mass participation events and raised millions in the piocess. These positive results are continuing into 2023 and whilst we may well need to cre8le some lurlher readjustments lo future strategies and timings of planned goals and outcomes we believe these will be much smaller going forwards than they were two years ago. The CEO, CFO and Chairman have abNays kept very light Control on cash flow and expenditure. This strong discipline has served us well in the past, proved invaluable during 2020, 2021 and 2022 and will serve us even beller during the years ahead. We had and still do have reserves lo fall back on as was always the strategy. These funds are not limitless bul they allow Ihe charily some breathing space lor the team lo assess its position in this new landscape and react accordingly. Daily operational cash flow analysis is carried out lo ensure that all known expenditure is lorecasled, minimisecl and planned for. As has always been the case all expenditure is heavily controlled within light expenditure aulhorisation limits allowing only for the vital and neGessary costs. From a "going concern. basis the charity carries out cash flow forecasting based on zero income, guaranteed income and expected income on a six-lo-twelve-monlh lime horizon so as lo best plan ils allowable expenditure. By employing all of the above processes, the trustees are satisfied Ihal the financial management is well controlled and they and the CEO are fully informed and equipped lo m8nage the current situation we all find ourselves in. KEY MANAGEMENT PERSONNEL The board of directors, who are the Trustees, and the CEO supported by the Senior Officers comprise the key management personnel of the Charity in charge of dire¢ling and controlling, running and operating the Charity on a day-lo-day basis. All Directors give their time freely and no Director received remuneration in the year. All Directors expenses and related party transactions are disclosed in note 7 lo the accounts. The pay oflhe executive staff is reviewed annually and is increased in line with performance sel against pre-defined targets. Executive team members have their salaries benchmarked again81 similar ioles in other organisalions of a similar nature. Some key strategic largels need lo be managed over several years and as such can be incenlivised via long term bonuses in such a way which can lead lo fluclualions in staff payroll figures year on year. All none service delivery costs are covered by a single benelaclor and are not taken from fundraising income which enables the chaiily lo be more financially effective and recruit the best candidates to do all Ihe roles within the charity, both fundraising, adminislralion an(t service delivery. 16 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEE) TRUSTEES, REPORT IINCORPORATING STRATEGIC REPORT) Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 RISK MANAGEWIENT As Trustees, we are responsible for ensuring effective risk management, and that internal controls are in place lo appropriately manage the risk exposure of Caudwell Children. Caudwell Children review their risk management strategy as part of both IS09001 {20151 and CQC requirements. We, the Trustees, have completed our annual review ol the risk management strategy. In the course of this review, we considered.. the major risks to which Caudwell Children is exposed lo the potential impact and probability associated with each risk existing internal controls and accounlabilily for them Miligaling actions needed lo reduce each risk lo a level that we consider to be acceptable. Some of the main risk factors for consideration were as follows. Repulalional Risk. Caudwell Children continues to operate in an ethical manner and follows all laws. guidelines and methods of best practice. We, the Trustees are assured that the reputation is in good hands and with the building of the Caudwell International Children's Centre ICICC} ils ieputalion will be taken to a truly global level. Given some of the issues suffered by many chaiilies in past years regarding the use of third paities, services. In order to miligale risk of guilt by association, Caudwell Children alongside the CEO'S long-lerm strategy developed in 2007, the charity only works with a limited number ol long-lerm third party seivice providers. We continue lo build partnerships with CDun¢ils and local aulhorilies, grant funded and commissioned services with NHS and Energy trusts lo develop and delivering services with their own teams under CQC regulations and ISO standards. Donor Risk. Caudwell Children continues lo develop ils donor base through high profile events such as the annual ball, r￿Ular events, challenges, social media and PR coverage and fundraising campaigns. All of these positions are recorded in a risk Tegisler. which will continue lo be formally reviewed by the Trustees every year and is regularly monitored by the CEO and Senioi officers as part of the ISO & CQC process. The major financial risks are each subject lo ongoing monitoring and managemenl. Major projects have formal project leads th81 scrulinise their progress and ensu￿ they are properly planned and implemented oveiseen in various meeting5 as noted within this document. The internal audit function delivers a rolling programme of risk-based audits independenlly assessed annually through our external inspection, which reviews progress of audits and follow-up by management. The Charity works closely with ils appointed Audil team to miligale financial risk both on its current active programmes and on all future ventures. Commercial Activities Throughout 2022, we continued lo review and develop plans for trading activities including commercial sponsorships and product sales. We will continue lo review trading income and the establishment of a trading company taking into account the general economic climate and looking to maximise brand alignment 2nd positioning. 17 CAUDWELL CHILDREN IA COMPANY LIMITED BYGUARANTEE) TRUSTEES, REPORT (INCORPORATING STRATEGIC REPORTI Icontinuedl FOR THE YEAR ENDED 37 DECEMBER 2022 Fundraising Activities Following the implementation ol the Charities (Protection and Social Investment PSI) Act 2016, the Charity has reviewed ils fundraising activities and confirms that il complies with the regulation. The Charity did not make use ol any external fundraisers. No compl8inls were received in respect of ils fundraising aclivilies. Ethical Awarene5S As Trustees,, our principal responsibility is lo act in the best interests of the aims ancl objectives of the Charity. Caudwell Children's belief is at all times lo work with companies who hold similar ethical values lo Caudwell Children. As Trustees, we will lake all reasonable steps, lo ensure all potential inveslmenls, are done so as to avoid investing in or with businesses where,. such investment might conflict, or be inconsistent, with the aims, objectives or activities of Caudwell Children., such investment might hamper the work of Caudwell Children eilher by alienating financial supporters or potential financial supporters,. or by having a material impact on applications from families in need of the Charity's services., Such investment is considered lo be unethical. STATEMENT OF TRUSTEE'S RESPONSIBILITIES As Trustees (we are also directors of Caudwell Children for the purposes of company lawl we are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iuniled Kingdom Generally Accepted Accounting Practi￿1. Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charitable company and of the incoming iesources and application of resources. including the income and expenditure, of the charitable company for that period. In preparing these financial Slalemenls, we the Trustees are required lo,, Select suitable accounting policies and then apply them consislenlly., Observe the methods and principles in the Charities SORP., Make judgements and eslimales that are reasonable and pwdenl., Slate whether applicable UK Accounting standards have been followed, subject lo any malerial departures disclosed and explained in the financial slalemenls., Prepare the financial slalemenls on the going concern basis unless il is inappropriate lo presume that the charitable company will continue in business 18 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT (INCORPORATING STRATEGIC REPORTI (continued} FOR TIIE YEAR ENDED 31 DECEMBER 2022 We, the Trustees, are responsible lor keeping proper accounting records that disclose with reasonable accuracy at any lime of the financial position of the charitable company and enable them lo ensure that the financial statements Comply with the Companies Act 2006. We are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and deleclion of fraud and other irregularities. In so far as we are aware.. There is no relevant audit information of which the charitable company's auditor is unaware., and We, the Trustees have taken all steps that we ought to have taken lo make ourselves aware of any relevant audit information and lo eslabSish that the auditor is aware of that information. Auditots Haysmacintyre LLP offer themselves for re-appointment at the next Annual Gener81 Meeting. Approval This Trustee's Repoil, incorporating the Strategic Report, was approved by the Trustees on 23rd November 2023 and signed on ils behalf, by.. C Bennett Trustee 19 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CAUDWELL CHILDREN Oplnion We have audited the financial statements of Caudwell Children lor the year ended 31 Decembe¥ 2022 which comprise the Con501idaled Slalemenl of Financial Activities, Group and Charitable company Balance Sheets, the Consolidated Cash Flow Statement and notes lo the financial slalemenls, 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 ReFK)rling Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounts'ng Practice). In our opinion. the financial statements.. give a true and fair view of the slate of the group's and of the parent charitable company's affairs as al 31 December 2022 and ol the group's and parent charitable company's net movement in funds, including the 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 and the Charities and Trustee Investment (Scotlandl Act 2005 and regulation 8 of the Charities Accounts (Scollandl Regulations 2006. Basis for opinion We conducted our audit in accordance with InleTnalional Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standarcls are further described in Ihe Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group In accordance with the ethica5 requirements that are relevant lo our audit of the financial slalemenls in the UK, including the FRC'S Ethical Standard, and we have fulfr'lled 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 slalemenls, we have concluded that the Iruslees. use of the going concern basis of accounting in the preparation of the financial slalements 15 appropriate Based on the work we have performed, we have not identified any maleTial uncerlainlles relating to events or conditions that, individually or collectively, may cast significant doubl on the group's ability to continue as a going concem for a period of al least twelve months from when the financial slalemenls are authorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect to going concern are described in the relevant sections of this report. other Information The Iruslees are responsible for the other information. The other information comprises the information included in the Trustees, Annual Report. Our opinion on the financial slalemenls does not cover the other informalion and. except lo the exlenl otherwise explicitly slated in our report, we do not express 2ny form of assuran￿ conclusion thereon. In connection with our audit of the financial slatemenls, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with thè financial slalemenls or our knowledge obtained in the audit or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misslalements, we are required to determine whether there is a material misslatemenl in the financial slalemenls or a material misslalemenl of the other information. If, based on the work we have performed, we ¢onGlude that there 20 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CAUDWELL CHILDREN Icontinuedl Is a material misst8temenl ofthis other information. we are required to report that fact. We have nothing lo report in this regard. Opinions on other matters prescrlbed 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 (which includes the strategic report and the directors, report prepared for the purposes of company lawl lor the financial year for which the financial slalemenls are prepared is consistent with the financial slalemenls., and the strategic report and the directors, report included within the Trustees, Annual Report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In (he light ol the knowledge and understanding of the group and the parent charitable company and ils environment obtained in the course of the audit, we have not identified material misslalemenls in the Trustees, Annual Repoil (which incorporates the strategic report and the directors, report). We have nothing to report in respect of the following matters in relation lo which the Companies Act 2006 and the Charity Accounls IScolland} Regulations las amended) require us to report lo you if, in our opinion.. adequate accounting records have not been kept by the parent charitable company., or the paienl charitable company financial slalements are not in agreement with the accounting records and returns., or certain disclosures of Iruslees, remuneration specified by law are not made,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees for the financlal statements As explained more lully in the Iruslees, responsibilities slalemenl set out on page 4. the Iruslees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the linancial statements and for being satisfied that they give a true and fair view, and for such internal control as the Iruslees determine is necessary lo enable the preparation of financial statements that are free from material misststemenl, whether due lo Iraud or error. In preparing the financial slalemenls, the Iruslees are responsible for assessing the group's and the parent charitable company's ability lo continue as a going concern. disclosing, as applicable, mallers related to going concern and using the going concern basis of accounting unless the Iruslees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative bul to do so. Auditor's responsibilities for the audit of the flnanclal statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalemenl, whether due lo fraLJd or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misslatemenl when il exists. Misslalements can arise from fraud or error and ale considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial slalemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, lo detect material misslalemenls in respect of irregularities, including fraud. The exlenl lo which our procedures are capable ol detecting irregulartlies, including fraud is detailed below.. 21 CAUDWELL CHILDREN (A COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS AND TRUSTEES OF CAUDWELL CHILDREN (continued) Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related lo charity and COTllpany law applicable in England, Wales and Seolland, and we considered the extent lo which non-compliance m￿ght have a material effect on the financial slalemenls. We also considered those laws and regulations that have a direct impact on the preparation ol the financial slalements SLJch as the Companies Act 2006, the Charities Act 2011 and the Charities and Trustee Investment (Scotlandl Act 2005. Vve evaluated management's incentives and opporlunilie5 for fraudulent manipulation of the financial statements (including the risk of override of conlrolsl, and determined that the principal risks were laled lo revenue recognition and management override of controls. Audit procedures performed by the engagement team included.. Inspecting correspondence with regulators and tax aulhoiities., Discussions with management including consideration of known or suspected instances of non- compliance with laws and regulation and fraud., Evaluating management's controls designed lo prevent and delecl irregularities., Identifying and lesling journals., and Challenging assumptions and judgements made by management in their accounting estimates. Because of the inherent limitations of an audit, there is a risk that we will not delecl all irregularities, including those leading to a malerial misstalemenl in the financial statements or non-compliance with regulation. This risk inc¥eases the more that cotnpliance with a law Dr regulation is removed from the events and Iransaclions reflected in the financial slalements, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment. forgery, collusion, omis510n or misrepresentation. A further desoriplion of our responsibilities for the audit of the fi'nan¢ial statements is located on the Financial Reporting Council's website at.. www.frc.or .uklauditorsres onsibilities. Thls description forms parl of our audilorfs report. Use of our report This reF)orl is made solely lo the charitable company's members, as a body, in accordance with Chapter 3 of Parl 16 01 the Companies Act 2006, section 4411}{cl of the Charities and Trusteè Investment (Scotlandl Act 2005 and regulation l O of the Charities Accounts (Scollandl Regulations 2006. Our audit work has been undeilaken so that we might slate lo the chaiilable company's members those mallers we are required lo slate lo them in an Auditorfs report and for no other purpose. To the lullesl exlenl permilled by law, we do not accept or assume responsibility lo anyone other than the charitable company and the charitable company's members as a body, for our audit work. for this report, or lor the opinions we have formed. Lee Stokes (Senior Statutory Auditor) For and on behalf of Haysmacinlyre LLP, Slalulory Auditors 10 Queen Street Place London EC4R 1AG Dale.. 29 November 2023 22 CAUDWELL CHILDREN (A COMPANY LIMITED BY GUARANTEEI CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 Unrestricted Designated general funds funds Restricted funds Total 2022 Total 2021 Noles Income from.. Donations & Legacies Raislng funds 711,007 2,950,991 3,275,6B1 1,205,460 3,986,688 4,156,451 2,376,103 3,778,04g Incotne frotn Inv&slmenl$ 78,628 78,628 3,807 Total 3,740.626 4,4B1,14q ,221.767 6.157,959 endlture on: Raisir7g Funds Costs o18v8nls 979.564 264,216 1,243,780 761,558 Charitable activitles Children in the community Advice and Awareness 1,04q,732 1.042,187 3,812,352 310,256 4,8S4,084 1.352,443 3.969,351 839,269 Total 3,063,483 4,386,824 7,450,307 5,570,178 Nel Income belo¥e transfers 677,143 94,317 771,460 587,781 Transfers belween funds 12 11,111.7051 1.001.705 110,000 N9t movement In funds 1434,S621 1,001,70S 204,317 771,460 587,781 Total funds brought fO￿￿2rd 3,982,114 168,295 19,$88,184 23,738,593 23,150,812 Total funds carried foNard 3,547,552 1,170,000 19,792,501 24,510,053 23,738.593 All of the above results are dèrived from conlinuing activities. There were no other recognised gains or losses other than those slated above 23 CAUDWELL CHILDREN (A COMPANY LIMITED BY GUARANTEEI BALANCE SHEET COMPANY NO. 3864620 AS A T 31 DECEMBER 2022 Noles Group 2022 Group 2021 Charity 2022 Charity 2D21 Flxed Assets Tangible assets 15,465,547 15,796,004 15,465,547 15,798.004 Investment in CCG D&B Ltd Current assets Oebtors Cash at bank and in hand io 2.711,607 9.509,543 2,124.796 7,933,867 2,711,606 9,509,543 2,124.796 7.929,846 12,221.150 10.058.663 12,221,149 10,054,642 Credilors.. amounts falling due 11 vAlhin on8 year 13.176,644} 12,116,074) 13,176.6441 12,112.0541 Net current assets 9,044,506 7,942,589 9.044,505 7.942,588 Net assets 24,510,053 23,738,593 24,510,053 23.738,5g3 Income funds Reslricled fLJnds Designated funds Un¥eslri¢led funds 12 q9.792,501 1,170,000 3,547,552 19.588.184 168,295 3.982,114 19.792,501 ,170,000 3.547,552 19,588,184 168,295 3,982,114 24,510,053 23.738,593 24,510.053 23.738,593 The nel movement in funds for the year relating lo the parent charity alone amounted to a Surplus of £771,45912021'. SLJrplus £645,475) The financial statements were approved and aulhorised for issue by the Board of Trustees on., 23 Novernb8r 2023 and were signed below on its behalf by.. C Bennett Trustee 24 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI CONSOLIDATED STATEMENT OF CASH FLOWS AS A T31 DECEMBER 2022 Nol8S Group 2022 Group 2021 Cash used In operatSng activities 15 1,545,150 1701,0911 Cash flows from aclivities Interest income Purchase of tangible fixed assets Investing 78,628 148,1021 3.607 129,0951 Cash used In Investing activities 30,526 125,2881 Cash flows from flnancing activitles Cash used in financing activities Increas• Idecreasel In cash and ¢ash equivalents in thè year 1.575,676 1726.379} Cash and cash equivalents at the beginning of the year 7,933,B67 8,660,246 Total Cash and cash eqL¢lvalenis at th8 end of the year 9,509,543 7,933,867 Analysls of cash and cash equivalents 2022 2021 Cash in hand 9,509,543 7,933,867 Total cash and cash equivalents 9.509,543 7,933,867 The accompanying notes form part of these financial statements. 25 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2022 ACCOUNTING POLICIES Basis of Preparation The financial statements have been prepared in accordance with Accounlillg and Reporting by Charities.. Slalemenl of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20151- (Charities SORP IFRS10211. the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Caudwell Children meets the definition ol a public benefit enlily under FRS102. Assets and liabilities ale initially recognised at historical cost or transaction value unless otherwise slated in the relevant accounting policy notes. Going Concern Given the charitable company's favourable fundraising record and the level of free reserves available al the year end. the Trustees consider that the charitable company has adequate resources lo continue in operational existence for the foreseeable future. Accordingly, the financial slalements have been prepared on a going concern basis. Basis of Consolidation The financial slalements eonsolidale the results of the charity and ils wholly owned subsidiary CCG D&B Ltd on a line-by-linè basis. A separate Slalemenl of Financial Activities and Income and Expenditure Accounl for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. 26 CAUDWELL CHILDREN (A COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS Icontinuèdl FOR THE YEAR ENDED 31 DECEMBER 2022 1. ACCOUNTING POLICIES {continuedl Income Income has been recognised gross on the basis ol entitlement, probabilily and measurement. Donations and other forms of voluntary income are recognised as incoming resources when receivable, except insolar as they are incapable of financial measurement. For legacies, entitlement is taken as the earlier of the da16 on which either.. the charity is awaie that probate has been granted, the estate has been finalised and nolificalion has been made by the execulorls) lo the Trust that a distribution will be made, or when a distribution is received from the eslale. Gifts in Kind income represents various services donated free of charge lo charity in relation lo all of ils activities including Ihe Bullerlly Ball. This income is only included in incoming resourGes when it can be reliabty eslimaled. Investment Income Investment Income reflects the amount re￿1vable for the year. Expèndlture Expenditure is recognised on an accruals basis. Costs of raising funds are those costs incurred in allracting voluntary income, in particular grant funding and the Gosts of maintaining the Charity's profile within the sector. Costs are appoilioned on the basis of hours worked Expenditure relating lo Children in the Community is the element of expenditure directly incurred in performing these activities. Provision is made for grants when approved by the Trusleeslmanagement. Governance costs include those costs incuTred in the goveTn2nce of the Charity's assets and are primarily associated with constilulional and slalutory requiTemenls. Governance costs are now allocated lo charitable activities in full. ForeSgn Currencies Transactions denominated in foTeign currencies are translated al the rale of exchange prevailing al the lime ol the transaction. Foreign currency balances are translated al the rale of exchange prevailing at the Balance Sheet date. Foreign exchange gains and losses incurred in respect of service provision are included in the SOFA within charitable activity expenditure for the period in whioh they are incurred. Tangible fixed assets and depreciation Tangible fixed assets are staled al cost less depreciation. The financial threshold for capilalising an asset is £1,000. Deprecialion is provided at rates calculated to write off the cost less estimated residual value of each asset over ils expected useful life, as follows., 36 months slraighl line 125 years straight line 50 years slraighl line FixlLJres. fillings & equipment Value of leasehold Buildings 27 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 I. ACCOUNTING POLICIES Icontinuedl Accumulated funds Unreslricled funds are general funds that are available for the use at the Trustees, discretion in furlherance of the objectives of the Charity. Reslricled funds are subject lo specific conditions by donors as lo how they may be used. The purposes and uses of the reslricled funds are sel out in the notes lo the accounts. Desi9naled funds comprise unrestricted funds which have been sel aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial slatemenls. Pensions The pension costs in respect of the defined contribution scheme charged in the financial slalemenls represent the contributions payable by the Charity in the year. The scheme is closed to new members. The Charity also operates a stakeholder pension scheme open lo all employees, Taxation As a registered charily. Caudwell Children is potentially exempl from taxation on ils income and gains falling within s505 Income & Corporation Taxes Act 1988 and s258 Taxation ol Chargeable Gains Act 1992 to the exlenl (hal these are applied lo ils charilable purposes. No tax charge has arisen in the year Financial instruments Basic financial instruments are initially recognised at transaction value and subsequently measured al amorlised with the exception of investments which are held al fair value. Financial assets held al amorlised cost comprise cash al bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubl. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held al amorlised cost comprise all Qredilors except social security and other taxes and provisions. Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued al the amount prepaid nel of any trade discounts due. Cash at bank and in hand Cash al bank and cash in hand includes cash and 8horl term highly liquid inveslmenls. Creditors and provlsions Creditors and provisions are recognised where the charity ha5 a present obligation resulting from a past event that will probably result in the transfer of funds lo a third party and the amount due lo settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised al their selllemenl amount after allowing for any trade discounts due. 28 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS l¢ontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 1. ACCOUNTING POLICIES Icontinuedl Employee benefits Short term benefits Short term benefits including holiday pay are recognised as an expense in the period in which the service is received. Employee termination beneflts Termination benefits are accounted for on an accrual basis and in line with FRS 102. Critical accounting judgements and key sources of estimation uncertainty In the application ol the accounting policies, Trustees are required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The eslimales and underlying assumptions are based on historical experience and other factors that are considered lo be relevanl. Actual results may differ from these e51imates. The eslimales and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised If the revision affects only that period. or in the period of the revision and future periods if the revision affected current and lulure periods. In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabiSilies al the balance sheet dale are likely lo iesull in a material adjuslmenl to their carrying amounts in the next financial year. 29 CAUDWELL CHILDREN {A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Donations & Legacie5 Unyestricted Designated Restricted funds funds funds Total 2022 Donations and gifts 694,039 16,968 1,317,882 2,011,921 16,968 Gifts in kind Grants receivable for core activities 1,957,799 1,957,799 711,007 3,275,681 3,986,688 2021 Com aralive Donations & Le acies Unre5lricted Designated Restricted funds funds funds Total 2021 Donations and gifts 78,198 1,227,246 1.305.444 Gifts in kind 14,691 14.691 Grants receivable for core activities 1,055,968 1.055.968 92,889 2,283.214 2,376.103 30 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 other Trading Actlvities 2022 2021 Other Tr8ding Activities Costs ol events 4,156,451 3,778,049 11,243,780) 1761,5581 2.912,671 3,016,491 Included within the above is £1,205,46012021.' £981,579} raised for reslriclec¢ purposes Income from Investmonts- unrestricted funds 2022 2021 Interest receivable 78,628 3,807 Expenditure staff Depreciatlon costs other CO8t5 Grant funding Total 2022 Expendlture on raising funds Gosls of Events 396.330 847,450 1.243,780 Expenditure on Charitsble activlties Children in Ihe community Activities undertaken directly Advice and Awareness 48.043 2,403,183 2,451,226 2,402,858 1,352,443 1,115,132 465,391 378,559 909,167 887,052 Total 2,024,896 378.559 2,643,669 2,403,183 7,450,307 31 CAUDWELL CHILDREN {A COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS {continuedl FOR THE YEAR ENDED 37 DECEAIBER 2022 2021 Com arative Ex enditure staff D8preclatSon costs other Costs Grant fundlng Total 2021 ExpendÉture on raising funds Costs of Evet)is 297.252 464.3 761,558 EKpenditure on Chafltable activlties children in the coinmunity Activities undertaken dire¢lty Advice and Awareness 61,691 1,807,480 1,869,171 2.100.180 839.269 836,361 349,048 515.937 747.882 490.221 Total 1,544.352 515,937 1,702,409 1,807,480 5.570,178 Included in the above charitable expenses were Governance costs including amounts payable lo the auditors of £22,731 incl. VAT12021'. £20,274) Included in the above Other Costs are Support Costs of £943,363 12021.. £856,126). The SLJpporl costs are apporlioned based on tirne spent on charity aclivilies. Net movement In funds 2022 2021 This is staled after charging". Depreciation of tangible fixed assets.. owned by the charity 378,559 515,937 Auditors, remuneration audit 22,731 20,274 Pension costs 81,222 70,206 32 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Grants payable Total 2022 Totsl 2021 Reconclliation of grants payable Commitments al 1 January 2022 Grants awarded in the year Amounts paid in the year 1,150,690 1.053,386 2.403,183 1,807,480 11,695,652) 11.710.176) Commilments at 31 De￿mber 2022 1,858.221 1.150.690 Commitments al 31 December 2022 aTe payable as follows.. Within one year Afler more than one year 1,858,221 1,150,690 1,858,221 1,150,690 Trustees No TTuslees were paid remuneration 2022 {2021 £Nill. No Trustee Expenses were paid out in 202212021 £Nill staff Costs Number of employees The average headcounl of employees during the yèar was.. 2022 2021 Fundraising and charitable activities 77 62 Wages and salaries Social security costs Other pension costs 2,743,284 274.873 81.222 2,236.796 220.633 70.206 3,099,379 2,527,635 33 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 The number ofemployees whose annual emoluments were £60,000 or more was.. 2022 2021 £60,000 - £70,000 £70,000 - £8D,000 £80,000 - £9D,000 £90,000 - £1QO,000 £100,000 - £110,000 £110,000 - £120,000 £130,000 - £140,000 £140,000 - £1 $0,000 £170,000 - £180,000 £240,000- £250,000 £370,000- £380,000 The above bandings comprise of Basic pay + Bonus + all P11 D Benefits. The Bonus figures include amounts that although earned and accrued within the financial year may not be paid out for several ye8r8 as they form parl of long term cumulative largels. The Key management peisonnel of the parent charity comprise the Trustees, the Chief Executive Officer and the Executive team. The lolal employee benefits of the key management personnel of the charity were. £1,195,425 {2021'. £1,228,442) The above figures comprlse of Basic pay + Bonus + all P11 D Benefits + employeis NIC + employe¥s pension. The above wages and salaries figures include redundancy payments of £2,519 12021.. E3,2641 There were no outstanding redundancy liabilities as al the year end. 34 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Tanglble Fixed Assets- Group and Charity Flxture Fittings & Equipment Land & Bulldings Total Assets Cost Al 1s1 January 2022 665,526 16,797,934 17,463.460 Additions 48,102 48,102 Al 31 December 2022 Deprecialion At 1 $1 January 2022 713,628 16,797.934 17,511.562 597,779 1.069,677 1.667,456 Charge for the Year 46,184 332,375 378,559 Al 31 December 2D22 Nel Book Value 643,963 1,402,052 2,046,015 At 31 St December 2022 69,665 15,395,882 15,465.547 Al 31s1 December 2021 67,746 15.728,258 45,796,004 10 Debtors Group 2022 Group 2021 Charity 2022 Charity 2021 Sales ledger control account Other debtors Accrued income Prepayments Inler-company debtor 2.268,307 13,605 95,692 334,002 1,861,954 499 110,001 152,342 2,268,307 1,861,954 13,605 499 95,692 110,001 334,002 152,342 2,711,606 2,124,796 2,711,606 2.124,796 Sales Ledger Control Account is high al 319l December 2022 due lo a major donation being invoiced in December 2022 8nd paid February 2023. See note 14. 35 CAUDWELL CHILDREN {A COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS leontlnuedl FOR THE YEAR ENDED 31 DECEMBER 2022 11 Credltors.. amounts falllng due within one year Group 2022 Group 2021 Charlty 2022 Charity 2021 Trade creditors Grants payable Other creditors Accruals Other tax and social security Deferred income Inler-company creditor 412,825 1.858,221 15,515 791,387 69,697 28,999 170,063 1, 150,690 15,468 654,323 67,124 58,404 412,824 170,064 1.858.221 1,150,691 15,515 15,468 791,387 650,323 69.697 67,103 28.999 58,404 3,176.644 2,116,072 3,176,644 2,112,054 No deferred income was brought forward and released during the year. 12 Restrlcted Funds The income funds of the cha¥ity include reslricled funds comprising the following unexpended balances of donations and grants held on trust for speciftc purposes.. Mov*m•nt in funds Balance at 1 January 2022 Balarkce at 31 December 2022 Incomè and Tran5f8rs Expènditure Charity Building Treatment, Therapy & Equipment linc Vwheelchairsl Autism Services Digital Skills Sports Equipment Big Lottery Scotland Local Family Support Short Breaks Spirit of 2012 Warm Homes SDR & Appeals Life Changers Circle Admin & Mana emenl Total 17,131,831 332.375 16,799,456 1,236,705 521,718 -5.390 109,512 1,350,752 774,344 80,375 108,942 ' 980.756 879,155 34,236 218,454 1,606,701 416,907 40,749 167 34,273 2,955 2,350 341,394 212,668 14,899 46,985 89,971 129,971 113,048 563,972 1,317,882 4,591,141 3,108 44,044 91,626 141,816 143,371 200,000 1,317,882 4.386,824 11,958 37,214 1,300 19,4951 311,071 576,640 19,588,184 19.792,501 "Includes £110,000 transferred from unreslricled as match funding in relation lo the ¢rileria of an awarded Grant. 36 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 2021 Com aralive movement in restricted funds Movement In funds Balance at i January 2021 Balance at 31 December 2021 Income Exp8nditur8 Charity Building Treatment, Therapy & Equipment (inc v￿eelehairsI Autism Services Digital Skills Sports Equipment Big Lollery Scotland Local Family Support Short Breaks Spirit of 2012 Warm Homes Big Lollery- GSP Barclays- GSP SDR & Appeals Life Changers Circle Admin & Mana ement Total 17,618,179 486,348 17.131,831 1,120,589 592,928 12,655 91,435 12,979 1.132 42.446 34.414 8,037 44,510 75,188 388,671 100,000 703,609. 782,263 66,884 135,456. 587,493 853,473 84,929 117,379 12,978 2120 52,112 65,359 117,180 44.510 75.188 103,457 100,000 1,227,246 3,929,772 1,236,705 521,718 -5,390 1Dg,512 1,155 43,939 33,900 111,493 167 34,273 2,955 2,350 56,180 212,668 1,227,246 3,374,793 341,394 212,668 20,143,163 19,588.184 "Includes £110,000 transferred from unrestricted as match funding in relation to the criteria of an awarded Grant Charity Building The Charity made a long-term commitment lo develop a purpose-buill specialist children's cenlre,. designed in consultation with children and families il is a landmark in inclusive design, demonslraling accessibility for people with both physical disabilities and neurodiverse conditions. In order to meet the costs of the project and ongoing associated costs Ihe Charity undertook specific fundraising and appeals lo generate the significant fund5 required lo make the vision a reality. The new building officially opened in 2019 and this reslricled fund will reduce in value of the next SD years as the capital project is depreciated. Destination Dream5 The Destination Dreams Programme provided a holiday for families whose children have life limiting illnesse5. The programme provided families with something to look fonNard lo, enabling ch11dren lo make friends and have new experiences away from relentless hospital appointments and painful Iieatmenl. During our continued annual review of services by our CEO and members of the executive team and driven by increasing costs of delivery and insurance coupled with the constant Challenge on fundraising, the difficult decision was made al the December 2018 Trustee Meeting to slop Destination Dreams Service. Also taking into account Ihe availability of the other charity services and the need lo develop further family short breaks and lamity support services, 37 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Treatment, Equipment, Therapies & Wheelchairs The Charity annually raises money lo provide children who meet the Charity's criteria nationally with specialist equipment such as powered wheelchairs not provided by slalulory funding, pioneering Irealmenl and therapies and from 2020 our specifically designed Gel Sensory Packs. Included within this category are grants lolalling £110,000 from the Edward Goslling Foundation. Thèse amounts are to be match funded by Caudwell Children as parl of an ongoing mulli-year commitment from the Edward Gostling Foundation which will continue lo be highlighted in future accounts. Autlsm Services The Charity annually raises money to provide children who meet the Charity's criteria nationally with holistic therapy 2nd support programmes. This form of funding was ran down through 2017 & 2018 and was replaced by our in house, fully CQC regulated, diagnostic, inlervention and research programme, Caudwell Children Autism Service ICCASI from 2019 onwards. This new wrap around service lakes place both online and within the award winning Caudwell International Children's Cenlre. Sports Equipment The Charities Sports Equipment service provides disabled children and young people with the specially adapted equipment they require lo lake parl in Gompetilive and recreational sports al all levels. Big Lottery Scotland - Investing in Communlties -Family Support Glasgow Providing support to work with disadvantaged families who have one or more disabled child, providing support al diagnosis, providing 6 weeks of intensive Support. Family Support Services The Charity annually raises money lo provide family support services and short break actwilies, al times of crisis. Digital Skills The Charity provides digital skills training to yOLJng adults. This training provides young people with the necessary skills lo go onlo further education or employment. The shorl term negative balance was caused by the payment in arrears by the initial funder. Going forward balances are all positive. Short Breaks The Charity is commissioned to delivery short break activities by local aulhorilies. These are delivered in numerous locations depending upon the requirement of the conlracl. Spirit of 2012 The Charity has been awarded three years fur¥ding from the Wesl Midlands Challenge Fund. This funding is being used lo support community workshops within the west midlands leading up lo the Common Wealth Games lo be held within 8irmingham in 2023. Warm Homes The Charity is working with the Energy Tru51 on a two-year pioject to support parents I carers of disabled children1iving in fuel poverty. The charily is working with energy specialists to create a team of disability energy champions who Can reach into the commissioned regions and assist these vulnerable families. This fund is in deficit as at 31st December 2022 due to expenditure made in advance of income received. 38 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 Get Sensory Packs During 2020 a new sensory pack was developed by the charity lo meet the immediate needs of disabled children during lockdown. This project has proved lo be a huge success and has received backing and funding from many areas including Barclays Bank and the Big Lollery. SDR & Individual Treatment Appeals These funds have been raised lo fund high value specialist treatments and associated social and Tehabililalion costs foT individual children. The charity delivers several stream5 of support for families accessing SDR and posl-operalive rehabililalion services by assisting the families in their own fundraising or by providing malch-funding grants in partnership with other children's charities and the hospitals or rehab providers deliveiing the interventions. The charity also supports families where necessary with all the arrangements such as hospital costs, Ilighls, accommodation and ongoing physiolherapy. Administration & Management This fund is set up lo generate funds for the operating costs of the Charity. This enables rllonies raised on the other funds lo be fLJlly distributed lo their Gauses wilhoul the deduction ol the running ¢0sls of thè Charity. 12a. Unrestricted funds Included within unreslricled funds is £1,170,000 designated funds. This is made up of £60,000 for match funding purposes lo be provided by The Edward Gosling Foundation. £50,000 lo be retained for website development and £60,000 for the "We Are All Diffeient" campaign. This fund was created via transfers in the years 2018 & 2019 & 2022 from general funds. As al the year end the Charity had unreslricled general funds £3,547,552. 13 Analysls of net assets between funds Unrestricted Deslgnated Restricted funds funds fund$ Total Fund balances al 31 Decembèr 2022 are represented by.. Tangible fixed assets Current assets Creditors.. amounts falling due within one year 69.665 4.796.309 15,395,882 6.254,841 15,465,547 12,221,150 1,170,000 {1.318.4221 11,858,222) 13,176,644) 3,547,552 1.170,000 19,792,501 24.510,053 39 CAUDWELL CHILDREN {A COMPANY LIMITED BY GUARANTEE) NOTES TO THE ACCOUNTS {continuedl FOR THE YEAR ENDED 31 DECEWIBER 2021 2021 Com arative anal sis of nèl assets between funds Unrestricted Deslgnated Restricted funds funds funds Total Fund balances at 31 December 2021 are represented by.. Tangible fixed assets Tangible fixed assets under construction Current assets Creditors.. amounts falling due within one year 67,746 15,728,258 15.796.004 4,879,751 168,29S 5,010,617 10,058.663 12,116,0741 1965,3831 11,150.6911 3,982,114 168,295 19,588,184 23,738,593 14 Related partles Total donations received from John Caudwell during the year were £1,713.560. 12021.. £1,404,604), inGluding a pledge of £1,317.882 before the year end which was received in February 2022. 15 Reconciliation of net movement in funds to net cash f low from openlng activities Group 2022 Group 2021 Nel movement in funds Add back depreciation charge Less interest receivable Decrease in debtors (Decrease) in credilois Net cash used in operatlng activities 771,460 587,781 378,559 515,937 178,6281 13,8071 1586,8111 1892,9641 1,060,570 IW8,0381 1,545,150 1701,0911 40 CAUDWELL CHILDREN (A COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS (continued) FOR THE YEAR ENDED 31 DECEMBER 2022 16 Subsidiary The wholly owned trading subsidiary CCG D&B Ltd was incorporated in the United Kingdom Icompany number 9436124 in 2015 and pays all of its profits lo the charity under the gift aid scheme. CCG D&B Ltd operates as a Design and Build Company with the sole task of managing the ¢onsl¥uction of the new International Centre for Childhood Disability. The new Centre officially opened In 2019 and now houses both the ¢harilies adminislralion and delivery of seNices. CCG D&8 Ltd is managed and administered on a purely voluntary basis by the CEO and the CFO of Caudwell Children. This ensures that there will be no subsidiary running costs incurred by the charity and more importantly any profits earnl by the subsidiary will be donated back lo Caudwell Children. CCG D&B is limited shares which are 1000/0 owned by Caudwell Children. None ol the Directors ol Caudwell Children sil on the board of CCG D&B Ltd. STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2011 Total Turnover 1,236 253,566 Total Cost Of Sales 4.994 Gross Profit I IL0581 1,236 248,572 Adminislralive Expenses 12,7641 8,261 Proflt and Loss on Ordinary Activities before Taxation 4,000 240,311 Gift Aid pald 4,000 298,005 Profit and (Lossl for the Financial Year 157,6941 41 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 CCG D&B BALANCE SHEET AS A T 31 DECEMBER 2022 2022 2021 Current asset8 Bank wip Debtors 4,021 Total Current Assets 4,022 Credltors: amounts falllng due within one year 4,023 Net current ass8t5 Net assets Capital and Reserves Called up Shale CapilBI Profil and L088 17 Parent Company Disclosures Income of the charity Ilhe parent company) amounted lo £8,221.76612021.' £6,455.9641. Nel movement in funds amounted lo a surplus of £771,45912021.' a surplus of £645.475). 42 CAUDWELL CHILDREN IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE ACCOUNTS lcontinuedl FOR THE YEAR ENDED 31 DECEMBER 2022 18 Comparative SOFA for 2021 Unrestrlcted Designated general fund$ funds Re5tricled funds Total 2021 Total 2020 Noles Income from.. Donations & Legacies Raising funds 92,889 2,796,470 2,283,214 981,579 2,376,103 3,778,049 2,541,718 1,118,683 Income from Investments 3,807 3,807 10,026 Total 2,893,166 3,264,793 6,157,959 3,670.427 Ex enditure on.. Ralsing Funds Costs of events 515,513 246,045 761,558 656,057 Charitable activities Children in the community Advice and Awareness 574,542 550,351 3,394.809 288,918 3,969,351 839,269 3,574,283 681,591 Total 1,640,406 3,929,772 5.570,178 4.911,931 P481 Income before Iransfers 1.252.760 1664,9791 587,781 11.241.504) Transfers between funds 12 1110,0001 110,000 Net movement In funds 1,252.760 1110,0001 1554,9791 587.781 11,241,504) Total funds brought forward 2,729,354 278.29S 20,143,163 23.150,812 24,392,316 Total funds carri&d forward 3,982,114 168.295 19,588,184 23.738.593 23,150,812 43