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2024-03-31-accounts

Company registration number: 03696656 Charity registration number: 1080536

Childlife

(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 March 2024

DSK Partners LLP D S House 306 High Street Croydon Surrey CR0 1NG

Childlife

Contents

Reference and Administrative Details 1
Report of the Trustees 2 to 14
Statement of Responsibilities 15
Independent Auditors' Report 16 to 19
Statement of Comprehensive Income 20
Statement of Financial Position 21
Statement of Cash Flows 22
Notes to the Financial Statements 23 to 34

Childlife

Reference and Administrative Details

Chairman Ms C White, Appointed as chair 15th November 2021
Trustees B McNaught, Treasurer
Ms C White, Appointed as chair 15th November 2021
L Walker
V Elzer, Appointed 16th Jan 2024
Secretary Ms A Rimington
Charity Registration Number 1080536
Company Registration Number 03696656
The charity is incorporated in England & Wales.
Registered Office Westmead House
Westmead
Farnborough
Hants
GU14 7LP
Auditor DSK Partners LLP
Institute of Chartered Accountants in England and Wales
D S House
306 High Street
Croydon
Surrey
CR0 1NG

Page 1

Childlife

Report of the Trustees

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 March 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Trustees

B McNaught, Treasurer Ms C White, Chair L Walker V Elzer (appointed 16th January 2024)

Other trustees in year D J Beacon (resigned as a trustee on 09th September 2023)

The appointment of Trustees is in accordance with the charity's Articles of Association, whereby each member has the right to appoint and remove a trustee and to appoint and remove an alternate.

None of the Trustees has any beneficial interest in the company.

Childlife provides both a role description and a code of conduct for trustees to ensure that the duties and responsibilities of being a trustee are clearly understood. In addition, it has specialist role descriptions for both the Chair of Trustees and Honorary Treasurer. These are provided to all new trustees as part of their induction information.

New trustees are encouraged to meet with the Chief Executive Officer and staff members and other trustees within the first few months of appointment. Training for trustees is provided if required.

Childlife is run by a very efficient small team of three part time employees (1.8 FTE), who are highly appreciated by the board of trustees. The arrangements for setting the pay and remuneration of all the charity’s staff including key management personnel are agreed by the CEO and the trustees. The latest pay review was set in line with cost-of-living increases.

Page 2

Childlife

Report of the Trustees

Background

The idea for Childlife, a consortium of children’s charities allowing its member charities to fundraise collectively, originated in 1992. Its first donor was recruited in July 1993. Childlife became a company limited by guarantee in 1999 and a registered charity in 2000.

Member charities of Childlife: Acorns Children’s Hospice Ataxia UK National Children’s Bureau National Deaf Children’s Society

The Board of Trustees, which has four members, one from each member charity, administers the charity is required to meet quarterly. However, in practice the trustees and the CEO meet most months. A Chief Executive Officer is appointed by the Trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive Officer has delegated authority, within the terms of delegation approved by the Trustees, for operational matters including finance, employment, fundraising and charitable activities.

Donations received by Childlife are distributed annually to these charities and hundreds of thousands of pounds are raised each year to support their important work with children and young people. The Trustees have assessed the major risks to which the charity is exposed and are satisfied that systems are in place to mitigate exposure to the major risks. The risks are documented on the risk register. The main two risks were;

1) Financial Failure of Key Suppliers (Gather and Ethical) - We have undertaken due diligence before signing contracts, including credit checks. We also horizon scan to identify supplier issues and potential alternative suppliers. In this year we have also worked with two other agencies Altru, Gilcore.

2) Loss of Income - The Cost-of-Living Crisis. Ongoing retention work is being carried out with existing donors to mitigate cancelation levels with payment holidays being offered.

Childlife's Board of Trustees is legally required to minimise any risk to the charity. The trustees have developed a risk management strategy, which involves a regular review of the key risks faced by the charity, and the establishment of systems and procedures to address these potential risks and to minimise both the likelihood of these risks occurring and their impact should they materialise.

Page 3

Childlife

Report of the Trustees

Objectives and Activities

Objectives and aims

The objectives of Childlife are; to promote the relief of children who are in need, by enabling the member charities to meet their respective charitable purposes, through the provision of grant payments.

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefits when reviewing Childlife’s aims and objectives.

Childlife carries out the object of improving the lives of children and young people through the work of its member charities by supporting the member charities in providing a strong income source in the short-, medium- and long-term future, and this has continued to be the focus in 2023/24. To enable Childlife to achieve its aim, it has continued to develop its fundraising programs in payroll giving and in new donor recruitment programs through faceto-face fundraising campaigns. Childife normally runs on-going telephone campaigns to upgrade existing regular supporters and re-activate lapsed regular donors. However, it was decided in 2023/24 not to run these telephone campaigns until the rate of inflation lowered.

The surplus of net income in 2023/24, after allowing for promotional and support costs for member charities and governance costs was distributed equally and on an annual basis to its four member charities as grants.

As we carry out fundraising across the UK we are members of both The Chartered Institute of Fundraising and the Fundraiser Regulator. As we are now running a lottery campaign, we also registered with Gamble Aware. We worked with four main external agencies for our recruitment of new donors in 2023/24.

Gather ltd carried out fundraising to recruit 697 new direct debit donors for Childlife. Gather also recruited 1999 new Continuous Card Payment Donors. We continued to take one off donations and generate warm leads. Gather recruited 245 new cash donors; only 17 did not opt into future contact.

Altru Ltd carried out fundraising to recruit 304 new direct debit donors for Childlife. Altru also recruited 1046 new Continuous Card Payment Donors. No one off donors were recruited.

Gather and Altru are experienced in driving quality alongside good operational practices in line with CIOF and the Fundraiser Regulator guidance. Through a personalized service from these agencies our fundraising with them builds a relationship with the supporter to ensure life-long loyalty to Childlife. They are registered with the Chartered Institute of Fundraising and the Fundraising Regulator.

During the time that we were fundraising with Gather and Altru there was a regular program of training in place. We did not run any street campaigns so there was not any CIOF mystery shopping.

Childlife is a member of four other consortiums which Payroll Giving Plus Ltd recruits new donors through Payroll Giving. Payroll Giving Plus Ltd organise tax-effective fundraising events and campaigns in companies and organisations across the UK to raise money for our charity consortiums. All fundraisers are employed on a non-commission basis so that they can promote a non-target driven campaign. Payroll Giving Plus Ltd is a member of the Association of Payroll Giving Orgnaisations and the Fundraising Regulator.

Page 4

Childlife

Report of the Trustees

Childlife received fifty-one complaints during 2023/2024 regarding its fundraising. All complaints were investigated thoroughly and fairly in keeping with the Fundraising Regulator Code of Practice. Childlife regularly reviews any lessons to be learnt to help with future fundraising activity. None of the complaints were of a nature serious enough to require Trustees to inform the Charity Commission or Fundraising Regulator. There have not been any compliance issues with either Childlife or any other agencies that we have employed in 2023/24.

Childlife has an Ethical Fundraising Policy and a Dealing with Vulnerable donors Policy. We also review the policies that our partner agencies hold on these subjects to make sure they meet our standards.

During recent years, Childlife’s community of donors has been in decline and the trustees have made the decision to invest more significantly in fundraising, to re-build the community to a sustainable level, so we can continue to raise vital funds into the future. This period of additional investment in fundraising is to ensure long term viability and will pay back over time. This five-year strategy commenced in 2018 and has been reviewed by the trustees in 2024. The plan beyond 2024 is now confirmed. After a review of the investment period and the future returns for member charities it was decided to carry on investing, but not at such a high rate as the donor database has now been built up to a more sustainable level.

Childlife has been extremely successful over the years in raising funds for our members. An initial investment of £16,000 per charity was made in 1994, and each member has received total grants of £2,707,992 since then (a ROI of 16825%). Without investment in fundraising this would not have been possible.

Page 5

Childlife

Report of the Trustees

Achievements and Performance Review of 2023/24

The beneficiaries of Childlife’s work are the children, young people and their families throughout the UK who have received support and advice or will benefit from research undertaken by the four member charities through the grant payment to them from Childlife. In 2023/24 Childlife gave a total of £410,000 to the member charities. This enabled the four member charities to achieve the following:

Acorns Children’s Hospice

Acorns Children's Hospice provides care, support, fun and laughter for children and their families across the West Midlands.

We have three children’s hospices: Acorns in Birmingham (located in Selly Oak) opened in 1988 Acorns in the Black Country (located in Walsall) opened in 2000. Acorns for the Three Counties (located in Worcester) opened in 2005.

The hospices are purpose-built with specially decorated bedrooms designed to cater for children and young people from birth to 18 years of age. They are designed to be a homely environment to help children enjoy their stay and make the most of every day.

On-site hospice facilities include hydrotherapy pools and spas, multisensory rooms, complementary therapy rooms, and play and activity areas with up-to-date IT equipment and games. The hospices have landscaped gardens, designed to provide a safe and secure environment for children and families to have fun, reflect and enjoy the outdoors. There are designated areas for older children and teenagers ensure privacy and a managed level of independence. Alongside separate on-site accommodation for families allows them to stay with their child if they wish.

The hospices have ‘special bedrooms’ in a separate area within the building where children can stay after they have died. The ‘special bedroom’ can be personalised by families and are a place where they can pay final respects and make precious memories before their child’s funeral.

In the past year, Acorns supported 732 children and 945 families from across the West Midlands and Gloucestershire, including those who have been bereaved:

268 children and 359 families at Acorns in Birmingham 230 children and 271 families at Acorns in the Black Country 235 children and 315 families at Acorns for the Three Counties

Acorns has supported 1,945 individual family members, including children, brothers and sisters, parents, carers and grandparents. This is an increase of 388 on the previous year.

At Acorns we provide care 24 hours a day, 365 days a year to children and families who need us most. Over the past year we’ve achieved so much thanks to the kindness and generosity of our Childlife supporters. On behalf of the children and families we support, thank you so much.

Christina White, Senior Manager - Individual Giving and Legacies, Acorns Children’s Hospice

Page 6

Childlife

Report of the Trustees

Ataxia UK

The ataxias are a set of life-limiting neurological conditions that disrupt the messages sent from our brains to our muscles. Not just the muscles we use to move, but those we use to speak, listen and see. Over time, people with ataxia are slowly imprisoned in their own bodies, losing the tools they once had to communicate with loved ones. Over 200 different genetic ataxias have been discovered in the past 30 years, each of which requires a different treatment. Currently, no treatments or cures for most of the ataxias have been found. Ataxia UK is the leading national charity which supports those affected ataxia and funds research into finding treatments and cures.

The most common and aggressive form of the condition is Friedreich’s ataxia (FA), which predominantly shows its symptoms during childhood or early puberty. The earlier FA begins to show, the likelihood is the faster it progresses. It hampers a child/young person’s balance, mobility and movement, before causing speech, hearing and vision to deteriorate and, eventually, weakens the heart. As a result, children diagnosed with FA usually have a shorter life expectancy than their peers and will spend much of their life in a wheelchair.

As with the other ataxias, there is no cure for FA.

A major part of our work is to support and advise parents of children who have FA, whilst funding research into treatments and a cure. The support we receive from Childlife is essential in achieving this: it enables us to run local support groups, conferences, various online forums and information sessions to reduce families’ isolation and help them understand the condition.

Some key highlights from FY 2023-24

After a successful International congress for ataxia research in late 2022, Ataxia UK is again partnering with two other ataxia charities to organise and host the next congress in November 2024 in London. This is the 'go-to' ataxia conference for researchers worldwide, where we anticipate around 500 delegates will attend, share the latest research developments and importantly will network and set up new collaborations to advance ataxia research.

Just over a year ago we were delighted as we had the first drug approved for the treatment of Friedreich's ataxia. For now the approval is only for people aged 16 years and over and for people living in the US (approval Feb 2023) and EU countries (approval 2024).

Ataxia UK has been working hard to encourage and support Biogen (who have the license for Skyclarys) to seek approval in the UK and we are hopeful this will happen soon. There are also plans for a trial testing the drug in children to start this summer, so that we can hopefully get to the point of having an approved drug for those over 16 years old too.

Ataxia UK is following other exciting developments with trials starting testing gene therapy in people with FA, and a therapy targeting genes affected in people with SCA1 and SCA3 starting soon at the Ataxia UK accredited Ataxia centre in London.

In addition to these centres, the Ataxia UK Helpline continues to be the cornerstone of providing assistance and guide those affected by ataxia. In 2023-24 the Helpline received a total of 1350 contacts to the Helpline, which supported 996 individuals with 1645 issues including:

The Helpline also welcomed 4 new volunteers to Helpline but said goodbye to 2 volunteers.

Page 7

Childlife

Report of the Trustees

To make Ataxia UK’s services available to as many people in the community as possible, we’ve also held the first-ever hybrid conference in late October 2023 in East Midlands. This event saw 120 people attend in person, with some hundred more joining the live stream across the weekend. Building on the success of this event, Ataxia UK will also be delivering a travelling Roadshow in Cardiff, Edinburgh & Belfast to bring the services and information most needed to those affected by ataxia.

Viktor Elzer, Senior Brand & Communications Manager - Ataxia UK

Page 8

Childlife

Report of the Trustees

The National Deaf Children’s Society

The National Deaf Children’s Society is dedicated to creating a world without barriers for deaf children and young people. It is our mission to overcome the social and educational barriers that hold deaf children back.

Thanks to the generosity of Childlife supporters, we have been able to provide life-changing support and invaluable information to deaf children and their families across the UK over the last year. This has included:

• providing vital, timely help and advice via our Helpline service, with more than 3,800 calls, emails and live chat messages responded to

• delivering Family Sign Language training to 600 people, enabling parents and their deaf children to gain invaluable communication skills

• developing and launching the MyNDCS app which provides tailored information and resources based on where a family lives and the age of the child

Childhood deafness can have a huge impact on language development, communication and social skills, and we know that supporting deaf children during those early years is where we can make the biggest impact and set them up for life. Our goal is to reach more deaf children and young people than ever before, and our ambitious plan is to reach every deaf child, wherever they are and whenever they need us.

Childlife donors help our work in making this a reality. Thank you for your continued support.

Ben McNaught Deputy Director: Fundraising

Page 9

Childlife

Report of the Trustees

National Childrens Bureau

As NCB celebrated its 60th birthday, we continued to work towards our vision for every child to thrive. We have taken an evidence-informed approach, united people and organisations, and combined cutting-edge research with the voices of babies, children and young people to drive positive change in society.

This year was incredibly busy as we witnessed increasing levels of need due to the cost-of-living crisis and issues in public funding which still disproportionately target acute services rather than early-intervention and prevention which we know are proven to lead to better and more enduring outcomes.

We continued to advocate for our stakeholders through our policy and influencing programme. We joined forces with four other leading children’s charities (Action for Children, Barnardo’s, NSPCC, The Children’s Society) to launch the Children at the Table campaign ahead of the upcoming general election. The campaign published a policy report in November and had its public launch in Parliament in January, where children and young people talked about what mattered to them most to over 40 Parliamentarians. The campaign has gathered the support of 175+ sector organisations and 26,000 members of the public (and counting).

As co-chairs of the Children and Young People’s Health Policy Influencing Group, we undertook the first study of local NHS plans on addressing the needs of babies, children, and young people.

We also continued to carry out vital research to inform our work on issues such as children’s social care, youth justice, health, early years, and bereavement support among others, working in partnership with academic and sector experts.

Our programmes also had significant impact in amplifying children’s voices and supporting outcomes including improved wellbeing, connection and collaboration.

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Childlife

Report of the Trustees

It is through the generous contributions from Childlife supporters that NCB is able to deliver its mission to build a better childhood for every child. A massive thank you to everyone who have given so generously.

Lawrence Walker, Head of Development, National Children’s Bureau.

Page 11

Childlife

Report of the Trustees

Statement on Public Benefit

The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.

Financial Review

Income in the year was £1,310,371, a slight increase from the previous year from £1,291,869. The main reason for the increase is the large investment in donor recruitment in previous years 21/22 and 22/23.

Expenditure on raising funds decreased to £662,654 from £914,890 reflecting the fundraising suppliers fulfilling their contracts to recruit requested donor levels. (see P34 in the accounts)

Expenditure on charitable activities was £420,273 versus the previous year of £410,431 This includes £410,000 of grant payments (2022/23: £400,000)

Reserves Policy

It is the policy of Childlife to have free reserves amounting to no less than three months and no more than six months’ operating costs. Based on the 2023-24 budget, the required reserve level for the year end was set at £168,118 (low) to £336,236 (high). The free reserves balance at 31st March 2024 was £617,499 and as such falls above the required reserves policy. This will be addressed by the trustees in the upcoming financial year.

Page 12

Childlife

Report of the Trustees

Impact of External Financial Environment

Since 31 December 2019 many local economies around the globe have been in downturn.

In recent years there has been significant global stressors on economies, such as the pandemic and war in both Ukraine and more recently the Israeli and Palestinian conflict.

Childlife is not currently seeing the effect of this in the form of loss of income, but we are monitoring donor cancelation rates.

This will not significantly impact the entity’s financial position. Childlife has determined that these events are non-adjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended 31 March 2024 have not been adjusted to reflect their impact.

The duration and impact of the Russian Ukrainian war and the Israeli and Palestinian conflict. remains unclear currently, it is not possible to reliably estimate the duration and severity of these consequences, as well as their impact on the financial position and results of Childlife for future periods.

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

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and examination of financial statements may differ from legislation in other jurisdictions.

Structure, governance and management

Nature of governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Disclosure of information to auditor

In so far as the trustees are aware at the time of approving our trustees’ annual report:

• there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the auditor is unaware, and

• the trustees have taken all the steps that they ought to have taken individually as a trustee in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The financial statements have been prepared in accordance with the provisions applicable to small companies within Part 15 of the Companies Act 2006.

Page 13

Childlife

Report of the Trustees

The annual report was approved by the trustees of the charity on 17 July 2024 and signed on its behalf by:

......................................... Ms C White Chairman and Trustee

Page 14

Childlife

Statement of Responsibilities

The trustees (who are also the directors of Childlife for the purposes of company law) are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees of the charity on 17 July 2024 and signed on its behalf by:

......................................... Ms C White Chairman and trustee

Page 15

Childlife

Independent Auditor's Report to the Members of Childlife

Opinion

We have audited the financial statements of Childlife (the 'charity') for the year ended 31 March 2024, which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

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

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Childlife

Independent Auditor's Report to the Members of Childlife

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

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

Responsibilities of trustees

As explained more fully in the Statement of trustees' responsibilities (set out on page 15), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor responsibilities for the audit of the financial statements

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

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Childlife

Independent Auditor's Report to the Members of Childlife

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The key laws and regulations we have considered in this context included the Companies Act 2006, pension and tax legislation. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

o Using our general commercial and sector experience and through discussions with the directors and management, we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management's own assessment of the risks that irregularities may occur either as a result of fraud or error.

o We examined the company's regulatory and legal correspondence and discussed with the directors and management any known or suspected instances of fraud or non-compliance with laws and regulations.

o We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

o In addressing the risk of management override of controls, we tested the appropriateness of journal entries. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Childlife

Independent Auditor's Report to the Members of Childlife

Use of our report

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

...................................... Romit Basu FCA (Senior Statutory Auditor) For and on behalf of DSK Partners LLP, Statutory Auditor

D S House 306 High Street Croydon Surrey CR0 1NG

17 July 2024

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Childlife

Statement of Comprehensive Income for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Note
Income and Endowments from:
Donations and legacies
3
Investment income
4
Total income
Expenditure on:
Raising funds
5
Charitable activities
6
Governance costs
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
16		 Total
2024
£
1,304,724
5,647
1,310,371
(662,654)
(410,000)
(10,273)
(1,082,927)
227,444
227,444
390,055
617,499		 Total
2023
£
1,288,327
3,542
1,291,869
(914,890)
(400,000)
(10,431)
(1,325,321)
(33,452)
(33,452)
423,507
390,055

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2023 is shown in note 16.

The notes on pages 23 to 34 form an integral part of these financial statements. Page 20

Childlife

(Registration number: 03696656) Statement of Financial Position as at 31 March 2024

2024 2023
Note £ £
Fixed assets
Intangible assets 12 5,674 500
Tangible assets 13 4,032 4,921
9,706 5,421
Current assets
Debtors 14 37,883 41,651
Cash at bank and in hand 790,837 457,672
828,720 499,323
Creditors: Amounts falling due within one year 15 (220,927) (114,689)
Net current assets 607,793 384,634
Net assets 617,499 390,055
Funds of the charity:
Unrestricted income funds
Unrestricted funds 617,499 390,055
Total funds 16 617,499 390,055

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements on pages 20 to 34 were approved by the trustees, and authorised for issue on 17 July 2024 and signed on their behalf by:

......................................... Ms C White Chairman and Trustee

The notes on pages 23 to 34 form an integral part of these financial statements.

Page 21

Childlife

Statement of Cash Flows for the Year Ended 31 March 2024

Note
Cash flows from operating activities
Net cash income/(expenditure)
Adjustments to cash flows from non-cash items
Depreciation
5
Amortisation
5
Investment income
4
Working capital adjustments
Decrease/(increase) in debtors
14
Increase in creditors
15
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
4
Purchase of intangible fixed assets
12
Purchase of tangible fixed assets
13
Net cash flows from investing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March
Reconciliation of net cash flow to movement in net funds
Increase in cash
Net funds at 1 April 2023
Net funds at 31 March 2024		 2024
£
227,444
1,383
2,836
(5,647)
226,016
3,768
106,238
336,022
5,647
(8,010)
(494)
(2,857)
333,165
457,672
790,837
333,165
457,672
790,837		 2023
£
(33,452)
447
4,421
(3,542)
(32,126)
(14,250)
60,150
13,774
3,542
-
(5,368)
(1,826)
11,948
445,724
457,672
11,948
445,724
457,672

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 23 to 34 form an integral part of these financial statements.

Page 22

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

1 Charity status

The charity is limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: Westmead House Westmead Farnborough Hants GU14 7LP

These financial statements were authorised for issue by the trustees on 17 July 2024.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Basis of preparation

Childlife meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Currency

The financial statements are prepared in sterling which is also the functional currency of the company and rounded to the nearest pound.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Page 23

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

Income and endowments

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

Donations and legacies

Voluntary income is received by way of donations and is included in the Statement of Financial Activities when receivable or received. The majority of the donations are received in the form of payroll giving, standing orders and direct debits. The nature of these forms of donation is that they can be cancelled at any time by the donor. In most cases they are therefore recognised upon receipt unless there is a certainty about the amounts receivable and about the period to which they are attributable. Income from gift aid tax recoverable is recognised in the same accounting period that the related donations are recognised.

The value of services provided by volunteers has not been included.

Deferred income

Any income received by the charity in advance of the due date upon which it becomes receivable is deferred until that due date. Such amounts are not material and arise only incidentally.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT.

Raising funds

The costs of raising voluntary income includes amounts paid by Childlife during the financial year to third parties to recruit new committed givers for the charity and to undertake various telephone fundraising campaigns. Donors to Childlife choose to donate via payroll giving, via the gift aid scheme or via home money boxes. It is the charity's policy to expense these costs in the period in which they are incurred.

Promotion and Support of Member Charities

This includes the costs of promotion and support to the member charities and the costs of grants payable. The surplus of net income after allowing for promotional and support costs for member charities and governance costs is distributed equally and on a quarterly basis to its four member charities. A fifth payment may be made annually to the member charities, subject to approval by the trustees, based on surplus reserves determined from the annual financial statements. It is the charity's policy to include fifth payment grants in the period to which they relate.

Grant expenditure

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Page 24

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

Grant provisions

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

Governance costs reflect central operating costs excluding direct and apportioned support costs of raising funds and charitable activities.

Allocation and apportionment of costs

Costs which are directly attributable to a charitable activity or to the costs of raising funds are allocated directly to those activity cost categories. Items of expenditure which contribute directly to the output of more than one activity cost category are apportioned on a reasonable, justifiable and consistent basis. Depreciation is attributed in accordance with the same principles. Support costs which are shared between activities are apportioned on a reasonable, justifiable and consistent basis to the activity cost categories being supported.

The basis of apportionment of actual staff costs is by the estimated time spent by individual members of staff on different activity cost categories. Most other support costs are apportioned in the same proportion as the staff costs unless there are specific reasons to apply different proportions of the cost to different activity cost categories.

Expenditure is classified under principal categories of charitable and other expenditure rather than the type of expense, in order to provide more useful information to users of the account. Charitable activities comprise direct expenditure including direct staff costs attributable to the activity. Support costs have been allocated to activities based on the average staff time spent. Governance costs are those incurred in connection with the management of the Charity's assets, organisational administration and compliance with constitutional and statutory requirements.

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attached have been fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure.

Consortia

Donations to Childlife as a result of Smile a Minute and Friends at Work and Together for Change consortia are recognised in the Statement of Financial Activities within donations. Expenditure on the recruitment and administration of donors for the consortia is recognised in the Statement of Financial Activities within fundraising costs.

Taxation

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

Page 25

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

Intangible assets

Intangible assets are stated in the Balance Sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives.

Tangible fixed assets

Individual fixed assets are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Amortisation

Amortisation is provided on intangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class Amortisation method and rate Website costs 50% straight line

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Computer equipment 25% straight line
Fixture and fittings 25% straight line

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Fund accounting

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

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

Page 26

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).

Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for:

1) exchange differences on transactions entered into to hedge certain foreign currency risks (see above);

2) exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and

3) in the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.

Page 27

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

Financial instruments

Classification

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

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Derivative financial instruments

The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.

Page 28

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

3 Income from donations and legacies

Donations and legacies;
Donations from individuals
Total for 2024
Total for 2023
4 Investment income
Interest receivable and similar income;
Interest receivable on bank deposits
Total for 2024
Total for 2023
5 Expenditure on raising funds
Costs of generating donations and legacies		 Direct costs
£
662,654		 Unrestricted
funds
General
£
1,304,724
1,304,724
1,288,327
Unrestricted
funds
General
£
5,647
5,647
3,542
Total
2024
£
662,654		 Total
funds
£
1,304,724
1,304,724
1,288,327
Total
funds
£
5,647
5,647
3,542
Total
2023
£
914,890

Page 29

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

6 Expenditure on charitable activities
Grant Funding of activities
Total for 2023
7 Analysis of governance and support costs		 Grant funding
of activity
£
410,000
400,000		 Total
expenditure
£
410,000
400,000

Governance costs

Audit fees
Audit of the financial statements
Depreciation, amortisation and other similar costs
Total for 2024
Total for 2023		 Unrestricted
funds
General
£
6,054
4,219
10,273
10,431		 Total
funds
£
6,054
4,219
10,273
10,431

8 Trustees remuneration and expenses

No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. No trustees have received any reimbursed expenses from the charity during the year.

Page 30

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

9 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs		 2024
£
78,580
7,078
3,900
89,558		 2023
£
67,226
6,763
3,667
77,656

The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:

Cost of raising income
Charitable activities		 2024
No
2
1
3		 2023
No
2
1
3

No employee received emoluments of more than £60,000 during the year.

10 Auditors' remuneration

Audit of the financial statements 2024
£
6,054		 2023
£
4,800

11 Taxation

The charity is a registered charity and is therefore exempt from taxation.

Page 31

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

12 Intangible fixed assets

Cost
At 1 April 2023
Additions
At 31 March 2024
Amortisation
At 1 April 2023
Charge for the year
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
13 Tangible fixed assets
Cost
At 1 April 2023
Additions
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Computer
software

£
21,356
8,010
29,366
20,856
2,836
23,692
5,674
500
Furniture and
equipment

£
28,520
494
29,014
23,599
1,383
24,982
4,032
4,921
Total
£
21,356
8,010
29,366
20,856
2,836
23,692
5,674
500

Total
£
28,520
494
29,014
23,599
1,383
24,982
4,032
4,921

Page 32

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

14 Debtors

Prepayments
Other debtors
15 Creditors: amounts falling due within one year
Trade creditors
Other creditors
Accruals
16 Funds
Balance at 1
April 2023
£
Unrestricted funds
General
390,055
Balance at 1
April 2022
£
Unrestricted funds
General
423,507		 Incoming
resources
£
1,310,371
Incoming
resources
£
1,291,869		 2024
£
10,671
27,212
37,883
2024
£
23,078
2,648
195,201
220,927
Resources
expended
£
(1,082,927)
Resources
expended
£
(1,325,321)		 2023
£
12,691
28,960
41,651
2023
£
72,395
3,586
38,708
114,689
Balance at 31
March 2024
£
617,499
Balance at 31
March 2023
£
390,055

Page 33

Childlife

Notes to the Financial Statements for the Year Ended 31 March 2024

17 Related party transactions

The board of trustees, which has four members, one from each member charity, administers the Charity and meets quarterly. Each trustee is an employee of one of the member charities. Grants of £102,500 each (2023: £100,000 each) were payable to the four member charities during the financial year. The Charity was controlled by four member charities throughout the financial year. Names of member charities are Acorns Children’s Hospice, Ataxia UK, National Children’s Bureau, and National Deaf Children’s Society.

Page 34

Childlife

Detailed Statement of Financial Activities for the Year Ended 31 March 2024

Income and Endowments from:
Donations and legacies (analysed below)
Investment income (analysed below)
Total income
Expenditure on:
Raising funds (analysed below)
Charitable activities (analysed below)
Governance costs
Total expenditure
Net income/(expenditure)
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Total
2024
£
1,304,724
5,647
1,310,371
(662,654)
(410,000)
(10,273)
(1,082,927)
227,444
227,444
390,055
617,499		 Total
2023
£
1,288,327
3,542
1,291,869
(914,890)
(400,000)
(10,431)
(1,325,321)
(33,452)
(33,452)
423,507
390,055

This page does not form part of the statutory financial statements. Page 35

Childlife

Detailed Statement of Financial Activities for the Year Ended 31 March 2024

Donations and legacies
Appeals and donations
Investment income
Interest on cash deposits
Raising funds
Fundraising costs
Other fundraising costs
Wages and salaries
Staff NIC (Employers)
Staff pensions (Other) - pension scheme 1
Rates
Insurance
Telephone and fax
Computer software and maintenance costs
Printing, postage and stationery
Trade subscriptions
Sundry expenses
Travel and subsistence
Advertising
Legal and professional fees
Bank charges
Charitable activities
Grants payable - institutions
Governance Cost
Fundraising Cost
The audit of the charity's annual accounts
Depreciation of office equipment		 Total
2024
£
1,304,724
1,304,724
5,647
5,647
(467,350)
(19,237)
(78,580)
(7,078)
(3,900)
(5,749)
(1,424)
(1,311)
(12,356)
(10,212)
(1,610)
(360)
(120)
(1,798)
(6,566)
(45,003)
(662,654)
(410,000)
(410,000)
-
(6,054)
(4,219)
(10,273)		 Total
2023
£
1,288,327
1,288,327
3,542
3,542
(765,628)
(1,080)
(67,226)
(6,763)
(3,667)
(4,772)
(928)
(1,015)
(10,076)
(7,899)
(189)
(223)
(111)
(54)
(1,642)
(43,617)
(914,890)
(400,000)
(400,000)
(763)
(4,800)
(4,868)
(10,431)

This page does not form part of the statutory financial statements. Page 36