HOPE AND HOMES FOR CHILDREN Registered Company Number: 04193179 Registered Charity Number: 1089490 TRUSTEES, ANNUAI REPORT AND CONSOIIDATED FINANCIAL STATEMENTS For the year ended 31 December 2023 hopeandhomes.org TABIE OF CONTENTS Legal and Administrative Information Trustees. Annual Report and Strategic Report Independent Auditor's Report Consolidated Statement of Financial Aetivities Balance Sheets Consolidated Statement of Cash Flows Notes to the Financial Staternents LEGAL AND ADMINISTRATIVE INFORMATION Status Hope ond Homes for Children is o choritoble compony limited by guorontee. It wos incorporoted on 3 April 2001 (Compony number: 041931791 and registered as a charity on 26 November 2001 Icharity number: 1089490). Founder Presidents Mark Cook OBE Caroline Cook OBE Patrons and Ambassadors Kate Adie OBE DL Mortin Bell OBE Mott Bell Rukhiya Budden Moriono Dohon Dome Kristin Scott Thomos DBE The Rt Hon The Lord Selkirk of Douglas PC QC Nick Hewer Alostoir Humphreys The Lady Jopling MBE Jay Jopling Gordon Mclnolly The Rt Hon Sir Donold McKinnon ONZ GCVO Natalie Pinkham Generol The Lord Donnott GCB CBE MC DL Rick Foulshom CMG David Furnish Jomes Whiting Cloire Wright Trustees and Directors Matthew Banks Vicky Bruce Simi Dubb John Good Richord Greenholgh lon Hoslegrove Maria Herczog Girish Menon Chikondi Mpokoso Ruchiro Neotio Romesh Pormor Comillo Otto Anno Segoll Zofia Sochanik Mike Thiedke (resigned 27h July 2023) (resigned 27h July 2023) (oppointed15t July 2023) Choir (oppointed15t July 2023) Treosurer (appointed 24th July 2023) rnember of Finance, Audit and Risk Committee, o - member of Marketing, Communic(rtions and Fundraising Committee, member of Progrommes Advococy ond Reseorch Advisory Commtttee.- member of People Comrnittee Senior Management Team (Key Management Personnel) Mork Woddington Chief Executive Michelo Costo Director of Globol ond EU Advococy(until 31st October 2023) Brenda Kariuki Direct or Global Advocacy lfrom 1￿ February 2024) Pete Gorrott Director of Globol Progrommes Anghorod McKenzie Director of Global Marketing, Communicotions ond Fundroising (until 14th Morch 2023) Toby Bourke Director of Global Marketing, Communications and Fundraising Ifrom 10th July 2023) Mork Shodrock Chief Operoting Officer ond Compony Secretory Reglstered Offlce and Prlnclpal Addr￿ The Guild, King Street Wilton, Wiltshire, ORS Independent Audltor. Crowe U.K. LLP, 55 Ludgote Hill, London, EC4M 7JW Banker& Royal Bank of Scotlond PLC, Porklonds, De Hovilland Woy¢ Bolton, Loncoshire, BL6 4YU Webslte.. more informotion obout the chority con be found ot , andhoni-ocr" TRUSTEES, ANNUAL REPORT AND STRATEGIC REPORT ABOUT US Since 1994, Hope ond Homes for Children hos been working to stop the instttutionolisotion of children. We work oround the world to close the doors of orphonoges forever. We fightfor every child to enjoy the love ond belonging of o sofe fomily home. As chollenges get tougher, we work horder- with children, for children. Because children should never be deprived of their liberty and suffer the harms of institutionalisation, under the cloak of "care.. Our core reform speciolists set up community-bosed fomily SUPFX)rt services. Our policy experts promote stronger child protection laws. Our skilled social workers work directly with children to keep families together, to reunite them and to nurture new ones. Through notional reform ond internationol odvococyi we inspire global oction. We won't stop until we have consigned orphanages to history. Until every child, everywhere, has the chanceto thrive in a strong, supported fomily. WE ARE HOPE AND HOMES FOR CHILDREN Our mission is to be the catalyst for the global elimination of institutional care for children. Our vision is a world in which children no longer suffer institutional care. Our values are courage, excellence and integrity. Orphonoges confine ond regiment the lives of children in woys thot present egregious threats of obuse ond neglect. Whot is happening inside orphonoges todoy is impocting 5.4 million children with lifelong consequences thot impoct upon the next generotion too. Our work to support fomilies ond preventthe serK]rotion of children from them in the first place, ond when this con't be ochieved, helping to ploce children in olternotive forms of family core ond protection, hos yielded olmost 30 yeors of importont leorning. We hove used this learning to shope locol services, notionol policies ond internotionol commitments with much wider benefits. For example, in pursuing child protection ond care reform, we are seeing improved educational ond heolth outcomes for children, oll of which collectively contributeto improved chonces ond opportunities loter in life. Now is the time to build a consensus across governments, relevant agencies and important influencersthat orphanages ore no longer on occeptoble way of coring for children. We build this consensus by working alongside lik&minded organisations. Our collective efforts and resources will create momentum thot proves chonge con be successful (rt n(rtionol level in very different contexts. We FX)Sition child protection ond core reform os o humon imperotive, not only for those children forwhom it matters so much now, but olso for future generations. And we build partnerships with the private sectorto develop the kind of financing instruments required to secure the interest ond commitments of mony other countries in which we hove no presence. Armed with these financing instruments, wewill secure investors ond donors soth(rt troction for globol reform genuinely begins to bite. We hove been o world-leoding outhority on elimin(rting orphonoges ond reforming child protection ond core systems in mony countries over 30 yeors. Throughout this journeyi we hove scrutinised the evidence. We hove morsholled our front- line experience, ond we hove listened to children ond those who core forthem. Our unique ochievements ond understonding hove deepened our well of hope forthe future of children. It is o stubborn, fierce hope thot connot be exhousted becouse we hove seen what we ore COF)oble of, ond It drives our belief in whot we con still ochieve, no motter how tough the chollenge. Our mission is cleor. Its purpose will not be denied. WHAT IS THE PROBIEM THAT NEEDS SOLVING AND WHY? Orphonoges ore unnecessory becouse the vost mojority of children confined within them ore not orphons. This is true for oll the countries we hove worked in, ond the mony countries our r)ortner orgonisotions work in. Indeed, numerous studies suggest this is the cose globolly. Mony children ore ploced in orphonoges, not because they ore orphons, but becouse their fomily is poor,- theyfoce discriminotion or becousethey hove o disobility. This confinement punishes them for o second time. Once confined in orphanages, many suffer abuse- including rape and torture- from some staff, adults who poy for occess tothem, ond from some of the children they shore their confinement with. The neglectthot many more children confined in orphonoges suffer con be so significont that it horms the development ond structure of their broins, especially for babies. Stigma against children confined in orphanages is common and a cause of isolation and exclusion. Orphonoges expose children to heightened risks oftroff icking, ond in the worst coses, they ore the octuol opporotus through which children ore exploited for lobour, fundroising, even fortheir body r)orts ond for sex. Current estimotes suggest there ore oround 5.4 million children in orphonoges globolly. Butthis is generolly occepted to be o significont under-estimote. In mony countries, rK)or regulation meons thousands of orphonoges operote with no registration and no oversight. So the sheer scale of children in confinement remains unknown. And millions more children ore vulneroble to being seporoted from their fomilies ond put into core. More thon five million people died os o result of the Covid-19 globol pondemic, most of them odults, mony of them porents coring for children. The Loncet estimotes thot for every two adults who have died, one child has lost a parent or primarycaregiver. Vulnerability is deepening among mony fomilies ond communities which undermines their copobility to core for ond protect children= 120 million F)eoplewere plunged into extreme FX)verty during the course of the pondemic. This is the first timethis figure hos octuolly risen in the lost 27 years, ond it is likely to continue growing. Teenoge pregnoncies increosed dromoticolly during lockdowns in mony countries. Often young people were confined with obusers, with grievous consequences, ond mony more children oreyetto return to the clossroom, giving rise to o new generotion of somonoged institutions in Gouteng province led to o shorp reduction in the number of children ogreed 0-3 yeors in government institutions from oround 90 to 20 otthe yeor end. In totol, 211 children were transitioned and a further 503 children prevented from being separated from their families. We are also trialling the integrotion of o street business school opprooch into our inspirotionol 'octive fomily support, model. In India, with our partner CINI, one institution was closed transitioned into an emergency and transit centre,with 19 children moved to sofe fomily core ond more thon 3,000 supported to stoy with their fomilies despite risks of seporotion. A recent review of our Fomilies Firstthree-yeor progromme hos reveoled thotthe number of children in residential institutions in the target districts has decreased by 60/.. This was achieved through the engagement and troining of o large numberof community members on prevention, referrol systems ond community gotekeeping. Our work in Indio hos received o significont seol of opprovol from USAID with o five-yeor funding commitment for us ond our partners to support state government efforts to transform core provision, especially in inclusion for children with disobilities. In Nepal, supporting our portners Forget Me Not ond The Himoloyon Innovotive Societyi 4 institutions were closed in 2023, including two children's homes which were closed by one ofthe focol municipalities in Kothmondu Volley following troining, sensitisotion ond lobbying by the team overthe lost two yeors. In total, 33 children tronsitioned from institutions and a further 205 children prevented from being separated from their families. The first foster care pilot is now underwoy to further strengthen fomily core olternotives We continue to exF)ond our reoch ond imr)oct ond hove signed on ogreement with o portner in Kenya to provide technicol SUPF)Ort in demonstroting thot chonge is possible in Nokuru county. We shared our know-how ond expertise in promoting quolity interventions ond systems change with over 3.300 professionals thot we troined over the course of the yeor. Priority I We will drive national reform by working to establish the strengthening of child protection systems and child care reform as a turnkey issue within priorities found in the sustainable development goals. We hove built up o respected position in the globol movement odvocoting for child protection ond core reform. We ore recognised for the volue thot we ploce on working colloborotivelyi estoblishing consensus ond our role os o convenor of important conversations. Whilst the wealth of our programmatic experience and expertise is our unique selling point, it is our obility to tronslote thottechnicol knowledge into torgeted opprooches to policymokers thot ensures thot we con exert losting influence ond impoct. Systems reform is the most sustoinoble woy to hove lorge scole impoct ond in 2024, os o result of our direct contribution, we hove seen the South Africon government commtt to hoving o Notionol Deinstitutionolisotion Policy in place by the end of the year. Together with the South African Policy and Development Nexus we have supported the development of, ond consultotion on, the drofts. In Nepol,'deinstitutionolisotion' hos been included in their Five-yeor Periodic IDevelopmentl Plon forthe first time ever. In Moldovo, we hove supported o review of, ond recommendotions for, the regulatory framework for altern(rtive family-type services. The progress mode ot notionol level is omplified through our regionol ond globol odvococy work ensuring that core reform for children becomes a global policy and funding priority. Our Roadmap for Care Reform- 'Fomilies. Not In$tltutions.'continues to provide on involuoble springboord to grow our influence ond impoct and olign our issue to the Sustoinoble Development Gool agendo, demonstrating how globol child-core reform serves humon development thereby creating opportunities for increasing our accessto thought-leadership platforms and access to primary oudiences. In 2023 we used the Roodmop to open doors (rt UN, EU, Africon Union ond donor governments such os the UK ond USA. Building on the Klgall De¢larotlon of the Commonweolth on Children's Core ond Child Protection Reform, we ore in diologue with the Commonweolth Porliomentory Association obout Co-operotion in this regord ond ore working closely with the Commonwealth Children's Interest Group to influence the text of the 2024 Commonwealth Heads of Government Meeting (CHOGM) Communiqué. A key priority is influencing the (￿lon ¢rlteria for EU ¢ondldats ¢cwntrie4 nomely Ukralne and Moldova so thot o commitment to core reform becomes o pre-condition of EU occession. We were delighted to see thot most of our messoges linked to child core reform hove been integroted into the Eu's Enlorgement Pockoge, which wos adopted by the European Commission in November 2023. The Enlorgement Pockoge emphosises the need for integroted sociol services to prevent fomily seporotion ond urges Ukroine to'develop ond odopt o comprehensive de- institutionolisotion reform of childcore ond lounch its implementotion, consideringthe situotion of displaced children, in the upcoming year. In Moldova, the report notes a shift to community-based alternatives for children in need of core, but challenges persist in providing odequote supr)ort for institutionolised children with disobilities due to insufficient resources ond quolified stoff. We worked with the UK Governmen¢ porliomentorions ond NGOS to ensure thot the UK ond internotionol octors prioritised core reform os o pillor of Ukroine's recovery atthe Ukralne Recovery Conference in June- where we co- hosted o high-level side event bringing together oll key stokeholders. The FCDO outlined its commitmentto o bon on oll funding of institutions in Ukroine ond the UK hAinister for Development, Andrew Mitchell, referenced the UK'S commitment to supporting Ukraine's core reform ogendo "working to ensure thot eoch Ukroinion child, including children with disabilities, has the opportunityto live in a nurturing famil￿. The Deputy Head of the President's Off ice of Ukroine highlighted the level of F)oliticol support forthe core reform ogendo by soying 'the President's Izelensky'sl ombition is to eliminote such children's focilities while he is PresidenL" Similor messoging wos echoed ot our side event by the Europeon Union, UNICEF ond others. This wos the strongest united public internotionol statement on the politicol will for reform in Ukroine, ond come obout os o direct result of our odvococy. Along with eleven other child rights ond disobility rights NGOS ond networks, we suggested omendments to the revised EU Antl-Trafflcklng Dlrectlve, oimed ot strengthening meosures to protect children without porentol core from traff icking. The Parliament's report significantly strengthened the protective and preventive measures for child victims of trofficking. We co-orgonised BICON (the Bienniol Conference forAlternotive Core in Asio) in Kothmondu. It wos hugely successful with over 230 in-person porticiponts and oround 100 online porticiponts ottending from ocross the region ond globolly. Especially motivoting wos the centrol role th(rt core*xperienced young people ployed in shaping the conference ond in brovely ensuring their voice was heord os they colled for chonge. We worked with the Association of British Travel Agentsand the UK Border Force and on a campaign to raise oworeness of the harms otorphanagetouri$ry in oirports ond on sociol medio which took ploce in October. Priority 3: We will work to unlock the financing needed to win government commitments to national reform and progress the meaningful implementation of this. We will work closely with the private sector to tap into its expertise and influence. The Europeon Porlioment odopted omendments prepored by usto the legislotive proposol for o Regulation establishing the Ukraine Facility, a key financing instrumentthat will be used by the EU to support Ukraine in the period 2024-2027. In our poper, which wos endorsed by 13 child ond disobility rights orgonisotions ond networks, we colled on the EU institutionsto ensure thot the Ukraine Focility supports o comprehensive reform of the child protection and core system in Ukroine through the tronsition from institutional to fomily ond community-bosed core, with o view of fully promoting the rights of children without F)orentol core ond persons with disobilities. We gove impoctful input on vorious EU Inltiatlve$, such the Europeon Porlioment's report'children First- Beyond the Child Guorontee, Two Years After Its Adoption" for which we convinced MEPS to toble omendmentsthot highlighted the issues foced by children without porentol core ond emphosising the importonce of using the Child Guorontee to support families. In light of the upcoming mid-term review of the 2021-2027 Neighb¢)urhood, Development and Internationol C operatlon funding Instrument which covers EU funding outside Europe, we contributed to consultations orgonised by DG INTPA IDirectorote Generol for Internotionol Portnerships) ond the EEAS l European Externol Action Services), particularly regarding the geographic programs for Sub-saharan Africa and Asia and the Pacific, and the thematic progrommes for globol chollenges, supportto civil society, ond humon rights ond democrocy. 10 - - - - - - - - - - - - - - - - - - - Public outhorities ond other decision-moking ogencies will be octively finding woysto be more occountoble to children The implementation of this strategic plan, and thetiming of key milestones, need to be adapted for changing circumstonces le.g. wor in Ukroine, F)oliticol upheovol in Bulgorio). Our plons for 2024 ore summorised below, ond maintain the full ambition of the strategy but reflect our latest view of timelines and steps required: Strategic Objective 1: National Reform Continued delivery of progrommes in Romania. Moldova. Rwanda & Bulgarlq torgeting criticol poth issues specific to each country, leading to the closure of institutions, net reduction in the number of children in institutional care, and policy & legislotion chonges in line with our roodmop. Leverage our roadmapto implement child protection and care reform models in South Africa, Nepal & India which oddress key issues in eoch country to secure ond sustoin the politicol will to drive notionol chonge Isub-notionol in Ind io). Provide bespoke training and technical support in in the demonstration of care reform and transformation in one county in Kenya Providing psychosocial and material support in Ukraine, while galvanising government action to reform child care systems ond modelling inclusive disobility-focused children's community services Strategic Objective l. Human Imperative Develop o plan ond scope partnerships for o new compoign to consolid(rte ond cotolyse the reform process in oll Eastern European EV member stotes. Influence the reconstruction process for Ukroine through EU occession criterio, co-hosting on Eu-focused event torgeting the link between EU occession ond core reform in Ukraine andmoldova. In Asia, influence policies, laws and action plans sothat related frameworks support and are aligned to care reform, leveroging the Kigoli Declorotion, BICON, the USAID project ond supporting portners. Increase our influence on the African Union and theAfrican Committee of Experts on the Rights and Welfare of thè Child, including through Transform Alllance Africa. Influence UN tre(rty bodies & ag•nciesto deliver clear interpretation of the human rights of alternative care and clear ocknowledgement of the links between globol sustoinoble development priorities ond sociol protection & core reform. Strategic Objective 3: Financing Influence the use in-country of European Union internal and external funding, including NDICI and IPA111 funding so that it SUPFX)rts core reform or ospects of it. Continue to advocate towards major bilateral and multilatsral donorsto ensure that they actively welcome funding for core reform ond prevent funding being used to support institutionol core. Scope the F)Otential opportunities for influence ond portnership with Internqtlonal flnanclal Instltutlons ompl ifying ond building on available financial evidence underpinning care reforNL FUNDRAISING & COMMUNICATIONS Strategy and Approach After securing record income of £16.1m in 2022 driven by the success of our Ukraine appeal, 2023 proved, as anticipated, to be o more chollenging yeor for income generotion. Nonetheless income of ￿l.5M was o good performonce in o historicol context, and our fundroising in 2023 included mony notoble successes, including winning o three-yeor gront from the European Commission for work with partners on disability inclusion in Rwanda, and, as part of a consortium, securing a five-yeor gront from USAID for work in Indio. We continued to investtime ond resource in building the copocity of our teoms in country to fundroise locolly. In the UK, building on our strong bose of relotionship fundroising, we benefitted from the finonciol support of41 unique corporote orgonisotions ond o further64trusts ond foundotions. In oddition, we nurtured relationships with existing philanthropic individuals, whilst investing resource in building our future philanthropy pipeline, and maintained our progromme of individual giving fundraising, focusing on regulor giving. Legocy income within year continued to be impocted by lengthened probote timescoles. 12 Our primary gool remoins to build o more resilient ond sustoinoble income portfolio, ond we hove reshoped our investment in morketing, communicotions ond fundroising sothot we con invest toexpond our funnel of engogement drowing in support from substontiolly more people We hove developed o strong ond simple proposition, bocked by stories and messages which inspire action, and which will enable us to (￿qUIre new supportwhich we can convert into income. Fundraising Standards Our fundroising complied with the fundroising codes os prescribed by the Fundroising Regulator, of which we remoin o registered member. We also continued to prioritise the strengthening of our practices related to data protection laws, porticulorly the UK Generol Doto Protection Regulotion. We received no subject occess requests whilst continuing to promote our Privocy Policy ond offer easy opt-outs from communic(rtions os well os the option to ogree specific communications requests and / or preferences directly with our team. Similarly we continued to pay special attention to treoting SUPF)Orters in vulneroble circumstonces with the utmostcore. We received18 complaints in 2023 (compared with15 in 2022). We continueto work hard to minimise complaints and take exceptionol core to communicote sensitively ond oppropriotely with our supporters. To SUPFX)rtthem in their endeovours, for exomple where individual or groups of supporters ore voluntorily roising funds on our beholf, we offer bespoke help with the use of regulated platforms (e.g. Just Giving), for the collection of funds. RISK MANAGEMENT AND INTERNAI CONTROLS Our strategy sets out our vision, mission, volues ond str(rtegic oim. With the erodicotion of institutionol core of children ot the heort of our activities ond o need for innovative solutions to deliver reform, risk is inherent in our work. Through our governonce fromework, we seek to encourage proactive, well-monoged toking of risk to deliver business objectives ond embedding risk monogement in doy-t(Fdoy operotion Therefore we hove developed o fromework to identify, onolyse ond monoge risks ot o seri of levels within the orgonisotion- strotegic, process ond projecL This fromework olso oddresses residuol risk ond ensures it is set ot occeptoble levels for the orgonisotion. The Board has ultimate responsibility for overseeing risk management forthe organisation as a whole but recognises that oll stoff ond volunteers ore criticol in implementing the risk monogement process. The Senior Monogement Team reviews risks ot its meetings os well os monitoring externol developmentsthot moy impoct on the orgonisotion. It hos systems ond procedures to mitigate the risks identified from operational activity as well as procedures to minimise impact should any of the risks moteriolise. Risk monogement is o stonding item at eoch of the meetings of the Finonce Audit ond Risk Committee, where ony new risks or m(rteriol increase in risk is discussed ond roised ot the Boord of Trustees, if necessory. The strotegic risks identified through this work, ond on outline of the mitigotion plons, ore.. K•y Rl•k Loss of impoct ondlor progress on re Continueto bjild sof andsu ort for child care reform throu pri to ond work with them to convene o wider group of donors. 13 Kèy Risk Outline of Mitigation Plan Strengthen capacity across our country teams to drive national advocacy priorities. Gops in copocity ond copobility leoding to inobility to fully execute the strategy and business plan. Continueto evolve our opprooch to wellbeing, leveroging our internol support network ond continuing to deploy mentol heolth oworeness troining. Review ond where necessory moke oppropriote resourcing adjustments, including roles, development plons ond troining in order to be 'fitfor purpose, to deliver on our plons Develop our approach to leadership, performance and individual mandate so that oll of ourteom members con thrive. Succession plans for key roles reviewed by our People Committee. Inabilityto secure the level and type Significontly overhoul our morketing ond communicotions ond reinvest in donor of income required for usto deliver ond income ocquisition, bosed on on opprooch of (il owing our spoce with o the level of progrommotic strong ond simple proposition,- lil) feeding the funnel through stories ond implementation, research and messages which inspire oction, ocquiring new SUPFX)rL ond lili) converting thot odvococy needed os port of our interest to income. strotegy, including investment in MCF ond orgonisotionol infrostructure. Develop Home Advontoge os o key communicotion compoign ond fundroising proposition. Position ourselves in o more compelling, cleorer woy with corporate, philanthropy and grontslfoundation prospects Short-term ond / or unonticipoted Continueto tAJild our free liquidity towords torget levels to provide greater short- income shortfalls creating the need term resilience. for short-notice expenditure cuts which run counterto our strotegy or create cTrfunding gaps which may in turn leod to issues in implementation ond or meeting grant funding conditions. Maintain and monitor our forecasting processes, improving medium-term visibility and reducing bios to provide high quolity income signols, allowing prompt ond decisive octions to be token in resFX)nse. stoff burn-out Build on our successful UK staff survey and use this approach globally to identify key issues ond OPFX)rtunities for supr)orL Regulor focus on key UK stoff survey octions, including wellbeing support. Prioritise orgonis(rtionol worklood ond moke cleor, choices which ore strotegicolly oligned ond monogeoble within copocity. Where wssible, investselectively in oddttionol resilience ond copocity Deoth or serious injury to o stoff member due to o security issue Continueto oper(rte security protocols in high-risk geogrophies. Embed our cross-orgonis(rtionol security principles ond proctices. Child protection incident directly involving on HHC member of stoff or a partner. Roll-out ond embed updoted sofeguording policy in each country progromme, including cultural aspects and reporting. strengthen independence ond sustoinobility of Our Voices Motter Finonciol froud, corruption or bribery or material f inancial mismonogement Continue to embed ond review policies, procedures, controls and training in key areas, with appropriate management oversight, independent assurance, and governonce from the Finonce, Audit ond Risk Committee". Finonciol processes Deployment ond use of IT, including cybersecurity oction plon (Note.. Our UK operations ochieved Cyber Essentiols occreditotion in Morch 2023) Assess oreos where investment in our people, processes ond systems should be prioritised to enhonce internol copocity ond copobility ond octing on these recommendation& 14 K•y Theft / leakage of personal data or lor supporter Continue to embed Ek)to Protection troinin Conduct ossuronce rocess on oto PUTTING CHIIDREN AT THE HEART OF OUR WORK Children have unique understandings of their own childhoods and of the circumstances in which they are living. We have recognised this from the very beginning ond hove olwoys soughtto listen to them. Over the yeors, they hove been consistent in the views they express to us.. they do notwont to be confined in orphonoges,. they wont to live in o loving, sofe fomily or coring community setting. It is through listening to children thot we hove formuloted our mission ond olso shoped our opprooch to fulfilling it This is imrK)rtont becouse if society were genuinely occountoble to children, it would not be octively depriving them of their liberty by locking them up in orphonoges. Accountability As we implement our strotegyi we will ensure thot the voices of children ore heord, ond thot where we ogree to oct upon whotthey ore telling us, we will be held occountoble for IL One ofthe woys in which we will seek to ochieve this will be through Our Voices Motter. This initi(rtive commits us to regulorly meeting with children, listening tothem, moking decisions with them ond reporting bock tothem on progress. Safeguarding Listening to children generotes obvious dividends by ensuring more oppropriote ond effective core solutions for them, but it olso improves sofeguording. Children know what mokes them feel sofe ond whot frightens them. Not being oble to voice these things is one of the most significant enablers of their exploitation, abuse and neglect. So as a fundamental part of our opprooch to sofeguording, we continue to develop opportuntties to listen to children through informal group sessions, questionnaires ond by ensuring thot children ore consulted on decisions thot will offect them. It is by listening to children that our organisational culture continuesto drive effectivesafeguarding policies and systems. We hove o robust orgonis(rtionol sofeguording structure that hos been developed overthe yeors, ond we continuolly review our policy, practice, and safeguarding culture in orderto ensurethat it is being strengthened and improved. Our opprooch to sofeguording reflects our mission with the well-being of children (rt the heort of our work, so os well os o set of robust policies ond cleor reF)Orting procedures we also ploce greot importonce on our porticipotion work with children ond young adults across the organisation. This ensuresthat the voices and opinions of children and young people on their life, ond the services ond support they receive, ore heard ond thot they con influence the shope of progrommes ond roise issues offecting them. We hove o full-time globol sofeguording leod who works with o network of sofeguording focol people from the countries we operate in, and from our FX]rtners, overseeing training, incident reporting, inductions and benchmorking. Regulor meetings with them ensure thattheir insights, concerns ond recommendotions ore incorporoted into the regulor reviews of our sofeguording systems. Participation The woy in which old is odministered con often run countertothe porticipotion of children ond strengthening of accountability tothem. This is because of the power imbalance that exists in favour of those who determine what that aid should be used for, who should benefit from IL ond how. This results in old being'done, to people. In implementing our strotegy, our opprooch will be to work with our portners, including funders, local outhorities, our own country offices and other NGOS to address those power imbalances sothat children, those who care forthem and those who represent their interests ore emF)owered to do so more effectively. 15 STRUCTURE, GOVERNANCE AND MANAGEMENT Structure Hope ond Homes for Children is o choritoble compony limited by guorontee. The Articles of Associotion, omended inJuly 20% to adjustthe trustees, term of officq set out the objects and powers of the organisation. The Charity is governed by a Boord of Trustees which hos legol, finonciol, ond monogeriol responsibility forthe chority. The trustees constitute directors of the choritoble comF)ony for the purrK)ses of ComF)onies Act 2006 ond trustees of the chority for the purposes of the Charities Act 2 Governance New trustees are appointed at duly convened meetings for a period of three years after which they are eligible for re- election for o further three years. The Boord hos adopted formol procedures forthe recruitment, selection, ond induction of new trustees ond reelection of existing trustees which ore monoged bythe People Committee. The terms of reference for the People Committee include reviewing the size, skills, diversity, structure, and effectiveness of the Board, and making recommendations for any chonges. The People Commwttee reviewstrustee condidoteopplicotions for trustees ond ofter o thorough selection process, puts forword recommend(rtions of suitoble condidotesto the Boord. Following the oppointment of newtrustees, on induction progromme is orronged which oims to give the individuols the informotion and tools they need to fulfil their legol oblig(rtions os well os to ploy on effective role on the Boord. The induction involves reoding moteriol, occess to stoff ond visits to the offices in the UK and obrood. During thgr term of office, trustees ore offered opportunities for ongoing training either through specificolly orronged sessions or recommended reading lists, troining courses ond webinors. The Board of Trustees comprises a minimum of three trustees with no maximum limit The trustees meet five times a year when they consider the progress ond chollenges towords successful strotegic delivery of Hope ond Homes for Childrery os well os governonce motters Formol delegation for certoin oreos of work hos been given to four sub-committeeswhich report back on their proceedings to the full Board= Flnance. Audlt and Rlsk Commlttee (FARC)- which oversees the orgonisotion's finonciol position ond performonce, forecasting, reporting and the external audit process. FARC also acts to ensure that the organisation proactively identifies ond monoges risk ond operotes in occordonce with relevont regulotory ond legol requirements ond in line with best practice regording the governonce of the chority. Pe¢wle Commlttee (PC)- which oversees the Boord structure ond composttion (including sub-committeesl, leods Boord ond CEO succession plonning ond recruitment ond oversees remuneration rK)licy and key controctuol terms for the Senior Management Team. The People Committee also oversees ouropproach to equity, diversity and inclusion to drive on equitoble, diverse ond inclusive culture ocrossthe orgonisotion. programm￿ AdV￿0¢Y and Resear¢hAdvis¢)ry Commlttee (PARAC) - which oversees our sofeguording policy, procedures ond reF)Orting and ossesses progress ogoinst our progromme& odvococy ond reseorch strotegie& discussing issues impacting the delivery of the strotegies ond providing odvice and recommendotions to the Senior Management Team and the Board. Marketlng. Communl¢atlon$ and Fundralslng CommSttee (MCFC)- which provides oversight for the sustoinoble resourcing of the Charity's mission through income and oversees how we externally promote and communicate our work. The Charity Governance Code Hope ond Homes for Children tokes its governonce responsibilities seriously ond oims to hove o governonce fromework thot is fit for purFX)se, complionL ond efficient In 2017the Chority Governonce Code wos lounched, ond we continue to use the Code as a tool to support a review of our governance structures and consider the ways in which the organisation and its Trustees currently opply the Chority Governonce Code's seven principles ond recommended proctice. Following an independent review of our governance arrangements in 2019, we actively addressed the diversity of our Boord in 2020, ond this remoins o focus We olso refresktd our sub-committee terms of reference ond enhonced key Board processes ond informotion flows. The Chority Governonce Code wos refreshed in 2020 with key chonges to the principles of Integrity and Equality, Diversity and Inclusion (previoudy Diversityl. In response to thiswe deVelo[￿d a 16 Diversityi Equity ond Inclusion position stotement ond oction plon, ond we refreshed ond recommunicoted our whistleblowing policy throughout our orgonisation. Management The Boord hos delegoted the doy-to-doy monogement of the orgonisotion to the Senior Monogement Team which comprises the Chief Executive, Director of Global Programmes, Director of Global Advocacy, Director of Global Marketing, Communications ond Fundroising, ond the Chief Operoting Officer. M(rtters such os strategic ond operotionol plons ond key policies ore prepored by the Senior Monogement Team for considerotion ond opprovol by the Boord. Public Benefit The oims ond benefits of Hope ond Homes for Children ore contoined within the moin body of this Report in the sections on Vision, Mission and Strategy, the Strategic Report and our Plans for Future Periods. We have considered the key principles of the Chority Commission's generol guidonce obout public benefit ond hove concluded thot Hope ond Homes for Children meets oll the requirements. Related Parties Hope ond Homes for Children hos subsidiory orgonis(rtions in Romonio, Ukroine, South Africo, Kenyo ond Hong Kong Hope ond Homes ft)r Children Romonio (registrotion number 1123.01200113661594) is established os o non- governmentol orgonisotion with the Ministry of Justice. The mojority of its Board of Directors ore senior monogers of the Chority ond therefore its finonciol results ore consolidoted. Hope ond Homes for Children Ukroine (registr(rtion number 39224734) wos estoblished in 2014 os o choritoble orgonisotion. The mojority of its Boord of Directors ore senior monogers ofthe Chority ond therefore its finonciol results are consolidated. One Child One Fomily HHCSA (registrotion number 20171489514108) wos set up os o non-profit compony in November 2017, ond in 2021 was recognised os o public beneftt orgonisotion. The mojority of its Board of Directors ore senior managers of the Charity and therefore its financial results are consolidated. Hope ond Homes for Children (Kenyo) wos estoblished in July 2023 underthe Non-Governmentol Orgonizotions Co- ordinotion Act Iregistrotion ￿rtifIcate No. OP2181051123-10811316%. The mojority of its Boord of Directors ore senior managers of the Charity and therefore its financial results are consolidated, although it had notransactions in 2022. Hope ond Homes ft)r Children Asio Limited (registr(ytion number 33047081 was incorporoted os limited compony in Hong Kong in August 2023. Home ond Homes for Children is the sole member of the componyi ond therefore its financial results are consolidated, although it had no transactions in 2023. Reloted portytronsoctions ore disclosed in note 9 tothe finonciol stotements. Remuneration Policy Our opprooch to remunerotion is designed to ensurethat we corr Attract and retain the talented and motivated people we need to achieve our mission and deliver our strategic goals Offer solory levels thot ore competitive in the morket ond comporoble with other similar orgonisotions in terms of size ond operotion. Reward based on li) the responsibilities of each role. including any regional or global responsibilities and (ill the local morket where the individuol performing the role is bosed. It is applied consistently across the organisation, including the Senior Management Team, membership of which is set out on poge 3. Specificolly forthe Senior Monogement Teom ond senior roles, we: Benchmork poy ond benefits every three yeors Govern these reward packages through scrutiny from the People Committee Environmental Policy Climate chonge is o threot multiplier for vulneroble fomilies ond children. Our globol futures will see climote change os o main driver of conflict poverty, food insecurity and disease. This will destroy livelihoods, drive displacement and widen inequolities. All of these ore key contributing foctorsto fomily breokdown ond child seporotion. Toking octions to reduce our environmentol impocts ore key for the heolth of the plonet ond olso to delivering our mission. Guided by our internol Environmentol Action Group, we hove therefore estoblished the following principles.. 17 All our stoff ond volunteers ore occountoble for using our resources responsibly ond sustoinobly for purposes thot ore both relevont ond beneficiol to our mission. We will comply with all relevont legol and other environmentol requirements. We will promote environmental responsibility and seek to improve environmental performance in key areas, including: Encouroging the use of trovel options thot minimise environmentol impoct. Minimising our production of waste, recycle materials whenever possible, and dispose of waste in a safe ond environmentolly friendly monner. Promoting energy efficiency ond to reducing our C02 emissions. We will increase oworeness of the imports of environmentol issues with our stoff ond volunteers. We will encouroge our stakeholders to odopt good environmentol proctices. We will undertoke periodic reviews of progress FINANCIAI REVIEW The finonciol review ond consolidoted finonciol statements incorporote the results of Hope ond Homes for Children's UK operotions, its overseas controlled subsidiories ond bronches. After record income of U6.1m in 2022, driven by our exceptional Ukraine appeal, income of £11.5m was achieved in 2023. While the crisis fomilies in the region continues, it hos proven much more chollenging to ottroct income to deliverthe vitol support needed. Expenditure wos broodly mointoined (rt o similor level to lost yeor, os we spent most of the brought forward appeal funds continuing our work supporting families and children impacted by the war. Key Financial Summary Em 2023 2022 Income 16.1 Expenditure 13.4 13.5 Net In¢ome l (expendlture) (2.0) Non-cash items and working capital movements Net ¢osh $upplled by l (used In) operatlng actlvltles (OA) Cash flows from investing & finoncing octivities 11.2) (0.9) Change In eash and eash equlvalents In the year (2.0) 2A Cosh ond cosh equivolents ot the stort of the yeor Cash and ¢o$h equlvalents ot the end of the year Total Closlng Fund$ 7.8 Unrestricted Funds Restricted Funds 4.1 Ineome Totol income in 2023wos en.&n, o drop of 24.6m versus 2022 This reduction wos concentroted in income forour work in Ukroine ond our regionol resFX)nse to the refugee crisis, which fell from £7.2m in 2022 to £2.4m in 2023. The drop in income for our work in Ukroine ond the region wos most noticeoble in income from individuols and from corporotes. Income from individuols decreased by26/¢ to £2.5m, olthough excluding income for Ukroine ond our regionol 18 response, the represented o yeor-on-yeor increase of 70%. Income from corporates fell by 35Yo to £3.Om, olthough the reduction wos only 4/0 excluding the imF)OCt of lopping our Ukroine oppeol. At £O.Sm, income from fundraising eventswas down by £0.9m163Y.) reflecting the hugely successful Boodles Boxing Ball of 2022. Legacy income increosed by16/.. Income from trusts ond foundotionsfell by 7Yo to £3.9m. Income from choritoble octivities dropped from ei.8m to £0.6m os our Europeon Union gronts in Romonio come to on end ond we lopped o lorge gront from UNICEF for work in Ukroine. Expenditure Expenditure of £13.4m wos broodly in line with 2022. Our investment in fundroising increased by £0.2m os we continued to invest in fundraising capabilities directly in our programme countrie4 as well as launching our Home Advantage compoign. Expenditure on charitable activities reduced by £0.3m. Within this, we continued to increase our investment in our work in Ukroine (up £0.7m in 2023) os we SUPF)Orted fomilies ond children through the horrific impocts of the wor. After shorp increoses in expenditure supporting Ukroinion refugees in Romonio ond Moldovo 2022, we groduolly scoled bock thot ospect of our work in 2023 Idown by £1.3m). We mointained or slightly increosed expenditure in South Africo, Rwondo, Indio, Nepol ond Bulgorio. Investment in our vitol glolxjl odvococy work increosed by 20.1m to £0.4ml Operational Result The resulting operotionol deficitof (£2.Om)wo& ofter tronsfers, entirely in restricted fundsos we drew down our Ukroine oppeol funds so thot we could continue to invest in that F)Ort of our work. Including exchange rote impocts, the impoct on unrestricted funds wos on increose of £0.4m Cash Operotionol expenditure included of non-cosh items (principolly depreciotion ond donations of properties to locol authorities). Our in-year cashflow from operating activities was therefore (£0.8m). We invested g.1m in net capitol expenditure, moinlythe construction of newsmoll group homes in RomonK]. We olso continued plonned repoyments on our UBS progromme-reloted investment loon, which is fully repoyable by 2030. Net cosh flow in 2023 wos therefore (£2.(kn), leoding to o closing cosh position of £3.0m. Reserves Poliey Our commitment to our notionol progrommes is long-term, to drive the sustoinoble chonge ond impoct which is ot the heart of our mission. As an organis(rtion relying almost entirely on annual fundraised income, we need to hold adequate funds to enoble usto reoctto ony unexpected odverse impoct on our finonces ond ensure we con cover future liobilities os they orise, whilst ony short or long-term odjustments ore mode to our strotegy. Therefore the finonciol principles underpinning our strotegy ore.. Finonciol resil ience through sufficient free reserves to provide stobility of expenditure in our fundroising, operotionol octivities, odvococy ond core progrommes work despite fluctuotions in our income. Finonciol sustoinobility through fundoble progrommes which yield multi-yeor funding commitments from oll sources, including gronts, corporote portnerships ond other mojor donors. Suff icient unrestricted funding and core cost coverage to enable appropriate investment in our people, capabilities, systems and processto sustain and enhance our income and impact. The trustees hove set the reserves policy in terms of the level of free liquidity (i.e. unrestricted cosh ond morketoble securities, less short-term financial debt). The target range for free liquidity was set based on the need for working capital (given income seosonolity) ond sufficient unrestricted funding to ollow for voriobility in future income versus expenditure commitments. In considerotion of these needs, we hove set o torget ronge forfree liquidity of between £1.6m ond 22.0m. This ronge equotes opproximotely to between 2 ond 2.5 months of totol expenditure or between 4.5 ond 6 months of unrestricted expenditure. Atthe end of 2023, our free reserves stood ot £l.(kn, £0.1m higher thon 2022 Our free liquidity increosed by 20&m to £0.9m, equivolent tojust under 2.5 months of unrestricted expenditure. Our future plans bolonce the need to build our 19 free liquidity while continuing to invest in our mission, ond we continuetotorget the delivery of o modest unrestricted operotionol surplus each yeor until we reoch ourtorget ronge. Going Concern Hope ond Homes for Children's income is secured lorgely from voluntory income sources together with ongoing support from a number of international donors. Having navigated a challenging period in 2018-19, we reduced and restructured our debt ond closed operotions in Lotin Americo, Sudon, Bosnio ond Tronsnistrio. These decisions enobled us to reduce our onnuol deficit ond strengthen our bolonce sheet. Our highly successful Ukroine oppeol generoted significont incrementol income in 2022. The Trustees have considered several factors in concluding that it remains appropriate to adopt the going concern basis in the preporotion of these finonciol stotements. These include-. By the end of 2020, we had significantly strengthened our balance sheeL reducing our debt to £1.4m and restructured this amount so that it is repayable between 2021 and 2030. The fundroising environment remoins highly competitive, ond we hove reshoped our investment in morketing, communications and fundroising so th(rt we con investto exF)ond ourfunnel of engagement, drawing in support from substontiolly more people. We hove loid the foundotions for more sustoinoble income generotion in the coming years, including our new brand proposition'Back to FamilW, our Home Advantage campaign and investment in the ocquisition of new donors. We hove develoF)ed o strong ond simple proposition, bocked by stories ond messoges which inspire oction, ond which will enoble us to ocquire new suprK)rt which we con convert into income. We continue to operate timely cash management and working capital controls to manage the potential risks oround the timing and volue of income ond ensure restricted ond unrestricted ossets ond reserves ore oppropriotely monoged. stress-testing of our forecost model through to the end of 2025 indicotes o sufficient degree of contingency ond odoptobility to chonging circumstonces. Considering oll of the obove, the Trustees believethot Hope ond Homes for Children hos odequote resources to continue operoting successfully for the foreseeoble future ond so should continue to odoptthe going concern bosis in preparing the onnuol reportond the finonciol stotements. Investment Policy Our governing document provides us with the powers to invest monies not immediotely required os we see fit. The policy we hove set oims to invest ftjnds to generate income. Cosh bolonces ore held to ensure funds ore ovoiloble to meet doy to doy commitments with ony funds th(rt ore not instontly required being ploced on term deposits until needed. Grant-making Policy Hope ond Homes for Children works in portnership wtth o number of orgonisations. Gronts r)oyoble ore mode in line with strotegic ond business plons. We monitor gronts operotionolly ond finonciollythroughoutthe term ond porticulorly otthe end of the grant. The annual planning process includes earmarking funding to be made available for grants in the following yeor. 20 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees (who ore olso directors of Hope ond Homes for Children for the purrK)ses of compony lowl ore responsible for preporing the Trustees, Annuol ReFX)¢ Strategic RerK)rt ond the finonciol stotements in occordonce with opplicoble low ond United Kingdom Generolly Accepted Accounting Proctice (United Kingdom Accounting Stondordsl. Compony low requiresthe Trustees to prepore finonciol statements for eoch finonciol year. Under compony low the Trustees must not approve the finar)cial statements unlessthey are satisfied thatthey give a true and fair view ofthe state of affairs of the choritoble compony ond the group ond of the incoming resources ond opplicotion of resources, including the income ond expenditure, of the choritoble group for thot period. In prewring these finonciol stotements, the Trustees ore required to= select suitoble occounting policies ond then opply them consistentlyi observe the methods ond principles in the Chorities SORP,. make judgements and estimates that are reasonable and prudenL' stote whether opplicoble UK occounting stondords hove been followed, subjectto ony moteriol deportures disclosed ond exploined in the finonciol stotements; ond prepore the finonciol stotements on the going concem bosis unless it is inoppropriote to presume thotthe choritoble compony will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficientto show and explain the choritoble company's tronsoctions, disclose with reosonoble occurocy ot ony time the finonciol position of the choritoble compony ond enoble them to ensure thotthe finonciol stotements comply with the Componies Act 2006 ond the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and the group ond hence fortoking reosonoble steps forthe prevention ond detection of froud ond other irregulorities. Disclosure of Information to Auditor Insofor os each of the trustees of the choritoble comrKJny ot the date of opprovol of this report is owore there is no relevant audit inform(rtion (informotion needed by the choritoble comr)ony's ouditor in connertion with preparing the audit report) of which the charitable company's auditor is unaware. Each trustee has taken all of the steps that helshe should hove token os o trustee in order to moke himselflherself owore of ony relevont oudit informotion ond to estoblish thot the choritoble company's ouditor is owore ofthot informotion. The Trustees, Annuol ReF)Ort (including the Strotegic RerK)rtl wos opproved by the Boord of Trustees on 23rd Moy 2024ond signed on their beholf by.. p,Ji Ramesh Parmar Trustee ond Treosurer Rlchord Greenholgh Trustee ond Choir INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HOPE AND HOMES FOR CHIIDREN Opinion We hove oudited the finonciol statements of Hope ond Homes For Children ('the choritoble compony,) ond its subsidiories ('the group,) for the yeor ended 31 December 2023 which comprise the Consolidoted Stotement of Finonciol Activities, the Group and Company Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significont occounting policies. The finonciol reFX)rting fromework thot hos been opplied in their preporotion is opplicoble low ond United Kingdom Accounting Stondords, including Finonciol Reporting Stondord 102 The Finonciol Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom GenerallyAccepted Accounting Proctice). In our opinion the finonciol st(rtements. give o true ond foir view of the stote of the group's ond the choritoble compony's offoirs os ot 31 December 2022 ond of the group's incoming resources ond opplic(rtion of resources, including its income ond expenditure for the yeor then ended,. hove been properly prer)ored in occordonce with United Kingdom Generolly Accepted Accounting Proctice,. ond hove been prepared in occordonce with the requirements of the Componies Act 2006 Basis for opinion We conducted our audit in occordonce with Internotionol Stondords on Audtting (UK) (ISAS IUKI) ond opplicoble low. Our responsibilities under those stondords ore further described in the Auditorfs responsibilities forthe oudit ofthe finonciol stotements section of our report. We ore independent of the group in occordonce with the ethicol requirements thot ore relevont to our audit of the finonciol stotements in the UK including the FRC'S Ethicol Stondord, and we hove fulfilled our other ethicol responsibilities in occordonce with these requirements. We believe thot the oudit evidence we hove obtoined is suff icient and appropriate to provide a basis for our opinion. Conclusions relating to going Concern In ouditing the finonciol st(rtements, we hove concluded thotthe trustee's use of the going concern bosis of occounting in the preporotion of the finonciol stotements is oppropriote. Bosed on the work we hove performed, we hove not identified ony moteriol uncertointies reloting to events or conditions thoL individuolly or collectivelyt moy cost significont doubt on the choritoble compony's obility to continue os o going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of thetrustees with respectto going concern are described in the relevant sections of this report. Other information The trustees ore responsible forthe other inform(rtion contoined within the onnuol report. The other informotion comprises the informotion included in the onnuol report, otherthon the finonciol stotements ond our ouditor's report thereon. Our opinion on the financial statements d￿S not cover the other information and, except tothe extent otherwise explicitly stated in our reporL we do not express ony form of ossuronce conclusion thereon. Our responsibility is to read the other informotion ond, in doing so, considerwhether the other informotion is moteriolly inconsistent with the finonciol st(rtements or our knowledge obtoined in the oudit or otherwise oppeors to be moteriolly misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to o m(rteriol misstotement in the finonciol stotements themselves. If, based on the work we hove performed, we concludeth(rtthere is o materiol misstatement of this other informotion, we ore required to report thot fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion bosed on the work undertoken in the course of our oudit the informotion given in the trustees, report, which includes the directors, rerK)rt ond the strotegic report prepored for the purposes of compony low, forthe finonciol yeor for which the finonciol stotements ore prepared is consistent with the financial statements,- and the strotegic report ond the directors, report included within the trustees, report hove been prepared in occordonce with opplicoble legol requirements. Matters on which we are required to report by exception In light of the knowledge ond understonding of the choritoble compony ond their environment obtoined in the course of the audit we have not identified material misstatements in the strategic report or the directors, report included within the trustees, report. We hove nothing to reF)Ort in resF)ect of the following motters in relotion to which the Componies Act 2006 requires us to report to you if, in our opinion.. the porent comF)ony hos not kept odequ(rte occounting records,. or the parent company financial statements are not in agreement with the accounting records and returns,. or certoin disclosures of trustees, remunerotion specified by low ore not mode,. or we hove not received oll the informotion ond explonotions we require for our oudit Responsibilities of trustees As explained more fully in the trustees, responsibilities st(rtement set out on r)oge 21, the trustees Iwho ore olso the directors ofthe choritoble compony forthe purrK)ses of company low) ore responsible for the preporotion of the finonciol statements ond for being satisfied that they give o true and foir view, ond for such internol control os the trustees determine is necessory to enoble the preporation of finonciol st(rtements that ore free from materiol misstatement, whether due to froud or error. In preporing the finonciol statements, the trustees ore responsible for ossessing the choritoble compony's obilify to continue as a going concern, disclosing, as applicable. matters related to going concern and using the going concern bosis of occounting unless the trustees either intend to liquid(rte the charitable company or to cease operotions, or hove no reolistic olternotive butto do $0. Auditor's responsibilities for the audit of the financial statements Our objectives ore to obtoin reosonoble ossuronce obout whether the finonciol stotements os o whole ore free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reosonoble ossuronce is o high level of ossuronce, but is not o guorontee thot on oudit conducted in occordonce with ISAS IUKI will olwoys detect o moteriol misstatement when it exists. Misstotements con orise from froud or error ond ore considered material if, individually or in the aggregate, they could reasonably be expected to influencethe economic decisions of users token on the bosis of these finoncial statements. Detoils of the extentto which the oudit was considered copoble of detecting irregulorities, including froud ond non- complionce with lows ond regulotions ore set out below. A further description of our responsibilities forthe oudit of the finonciol st(rtements is located on the Finonciol Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditorfs report. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of moteriol misstatement of the finonciol st(rtements from irregularities, whether due to fraud or error, ond discussed these between our oudit team members. We then designed ond performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriateto provide a basis for our opinion. We obtoined an understonding of the legol ond regulotory fromeworks within which the choritoble compony and group operotes, focusing on those lows ond regulations that hove o direct effect on the determinotion of moteriol omounts ond disclosures in the firK]nciol stotements. The lows ond regulations we considered in this context were the Componies Act 23 2006, together with the Chorities SORP IFRS102). We ossessed the required complionce with these lows ond regulations os port of our oudit procedures on the reloted finonciol stotement items. In oddition, we considered provisions of other lows ond regulationsthat do not hove o direct effect on the finonciol statements but compliance with which might be necessary tothe group's abilityto operate orto avoid a material penalty. We olso considered the opportunities ond incentives thot moy exist within the group for froud. The lows and regulotions we considered in this context forthe UK oper(rtions were employment legislotion, toxotion legislotion ond Generol Doto Protection Regulations. We also considered compliance with local legislation for the group's overseas operating segments. Auditing stondords limit the required oudit procedures to identify non