## **Annual Report and Financial Statements 2021** ## **CURE International (UK)** **----- Start of picture text -----**
30 June 2021
uk.cure.org
**----- End of picture text -----**
**UK reg. charity number 1094705 Company Registration Number 4268644** ## **CURE International UK** ## **Annual Report and Financial Statements 2021 Contents** ||**Page**| |---|---| |**Legal & Administrative Information**|**2**| |**Foreword by the Chairman**|**4**| |**Annual Report of the Trustees**|**5**| |**Independent Examiner's Report to the Trustees**|**11**| |**Statement of financial activities**|**12**| |**Balance sheet**|**13**| |**Notes to the financial statements**|**14**| _1_ ## **CURE International UK** ## **Legal & Administrative Information For the year ended 30 June 2021** |**Charity Name**|CURE International UK|CURE International UK|| |---|---|---|---| |**Charity Registration**|CURE International UK was registered with the Charity Commission on 21 November 2002. The||| ||registration number is 1094705.||| |**Company Registration**|CURE International UK is a company limited by guarantee, with company registration number||| ||4268644.||| |**Registered Office**|CURE International UK, The Royal College of Surgeons of England, 35-43 Lincoln's Inn Fields,||| ||London WC2A 3PE.||| |**Affiliation**|CURE International UK is a sister organisation of CURE International Inc, the leading provider||| ||of specialist paediatric surgical care in the developing world.||| |**Governing Document**|CURE International UK’s governing document is the Memorandum and Articles of Association||| ||dated 10 August 2001, as amended on 25thJune 2015 to include Training and Research as a||| ||Charitable Activity.||| |**Objectives**|CURE International UK transforms the lives of children with disabilities in the developing world||| ||through surgery and compassionate care.||| |**Trustees**|The Trustees who served during the year||or who were serving at the date of this report were:| ||John O’Dowd|FRCS Orth (Chair)|| ||Professor Christopher Lavy OBE, MD, MCh, FCS FRCS||| ||Rosemary Livingstone||| ||Mervyn Thomas CMG||| ||Louis Reid||| ||Jheryl Cabey|
(Appointed 21|June 2021)| |**Key Management**|Those in charge of planning, directing, controlling, running and operating the Charity, including||| |**Personnel**|those members of staff who are the senior management personnel to whom the trustees have||| ||delegated significant authority or responsibility in the day-to-day running of the charity, are||| ||the Chair and|the Chief Executive Officer.|| |**Bankers**|Barclays Bank||| ||50 Pall Mall||| ||London SW1A 1QD||| |**Independent Examiner**|Christine Cheung-Poston ACCA||| ||32 Fisher House||| ||Copenhagen Street||| ||London N1 0JE||| |**Solicitors**|Howard Dellar||| ||Lee Bolton Monier-Williams||| ||1, The Sanctuary||| ||Westminster||| ||London SW1P 3JT||| _2_ ## **CURE International UK** ## **Foreword by the Chairman Mr. John O ’Dowd FRCS** CURE International UK (CURE UK) is an independent UK charity providing fundraising and project support to the CURE International Network, working to transform the lives of children with correctable disabilities through surgery and compassionate care. Luke 9:2 tells us that Jesus ‘sent them out to heal the sick and proclaim the kingdom of God.’ In response, CURE’s mission is to reach and heal more children living with disabilities like clubfoot, bowed legs, cleft lips, untreated burns, and hydrocephalus. We do this through a global network of eight paediatric surgical hospitals that serve children. CURE Children’s Hospitals are world-class facilities with highly trained surgeons and caregivers providing specialised care for children with disabilities. From pre-surgery evaluation, to surgeries, physiotherapy and mobility device fitting, children receive comprehensive, transformational care. CURE treats children with a variety of disabling conditions that often go uncared for in countries that have a lack of access to resources. Without treatment, these children are more vulnerable, often in pain, and left on the fringes of society. Furthermore, our staff is trained to reflect kingdom values in their work and to seek opportunities to share God’s love in word and deed. We are an organisation motivated by faith, but driven by science and medicine, CURE Hospitals are there for all people, and serve children regardless of gender, ethnicity or religion. In order to provide sustainable, long-term solutions for the 9 million children living with disabilities in the countries where CURE serves, we train surgeons, medical professionals and partner with local pastors. We strive to not only provide the highest standard of care, but to train others to do the same. Curing a child with a disability goes way beyond physical healing. As well as reducing child mortality rates, eliminating or alleviating a disability gives the child the chance to lead a productive and independent life. Curing a child's disability, especially in Ethiopia, significantly impacts the health, education, livelihood, social inclusion, and empowerment of that child at individual, family, and community levels. It eliminates a major obstacle for children already facing the challenges of growing up in an underserved area, and it contributes to the alleviation of poverty and social stigmatization for them and their families. FY2021 presented new challenges for CURE UK, as we were still adapting to fundraising and managing charity administration during the pandemic. By the start of the new financial year the office had transitioned into working from home. The office and board were able to maintain operations and stewardship of the charity, without delay or hindrance, as regular office meetings and board meetings were conducted via Zoom. Efforts from the previous financial year to streamline our marketing services and become a paperless office, paid off greatly during this phase of uncertainly, and allowed for a smooth transition into remote working and communications. The pandemic posed a great threat to CURE UK’s ability to fundraise, with small international development charities facing the greatest losses in income, as funding opportunities were redirected to support COVID-19 efforts in the UK. Therefore, in order to focus our efforts, with the support of the board of trustees, CURE UK fundraised primarily to support our closest hospital partners; CURE Malawi, and CURE Ethiopia. Many of our donors have personal connections with these hospitals, and we therefore felt, our support would be best placed fundraising for these hospitals, which worked very well indeed. We also decided to focus on a third CURE Hospital, the CURE Children’s Hospital of Zimbabwe, due to open in 2020, but pandemic induced delays meant the hospital didn’t formally open until May 2021. CURE UK was able to raise funds to support the launch of the hospital, and further support it after its opening, by fundraising for operational costs including, surgical overheads, operating room equipment, staff training and spiritual department activities. We found that fundraising via trusts and foundations, generally opportunities became limited, and many previous grant partners weren’t supporting overseas projects at that time. Extra efforts were made to fundraise via our donor database, with increased and more engaging communications, and using matched-funding schemes such as the Big Give Christmas Appeal, where we raised over £35,000 towards the launch of CURE Zimbabwe Children’s Hospital. Unfortunately, in December 2020, we were unable to hold our annual CURE Carols by Candlelight service but planned to have the event in 2021. _3_ ## **CURE International UK** ## **Foreword by the Chairman Mr. John O ’Dowd FRCS** The board continued their search for more trustees to join the board, however, restrictions made this difficult. Gratefully, during our annual general meeting in December 2020, all board members committed to another year of serving on the board of trustees. Despite the challenges that the pandemic has presented for CURE UK, we have been able to respond positively and even explore avenues of communications, fundraising and stewardship that have proved beneficial. CURE UK has been able to draw experience and strength from testing situations and continued to provide effective support for our partners and beneficiaries in the field. We were able to finish FY21 in a strong position, leading into FY22 with exciting plans. CURE UK will continue supporting its close hospital partners in order to best serve our own, and the charitable aims of our donors, and provide impactful assistance to our beneficiaries. CURE UK will continue to support projects which include the direct provision of surgical services, capital expenditure for hospital equipment and buildings, and partnership development for research and training, all to help augment and improve access to paediatric surgical services in low- and middle-income countries. In a year that has been plagued with uncertainty, I would like to thank our donors for their faithful and generous support, helping us provide hope and healing to thousands of children in some of the world’s most under resourced places. We are grateful to our partner, CURE International, for their unwavering support and encouragement. It is an honour to serve the CURE network and we are excited for the year ahead, which we can already see is presenting new and exciting projects to improve access to healthcare for children with correctable disabilities across the globe. ## **Mr. John O’Dowd FRCS Chairman** _4_ ## **CURE International UK** ## **Annual Report of the Trustees For the year ended 30 June 2021** The Trustees, who are also Directors of CURE International UK (‘CURE UK’), submit their annual report and the financial statements of CURE UK for the year ended 30 June 2021. The financial statements have been prepared in the format prescribed by the Companies Act 2006, the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2015 (FRS102)) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report. This report also constitutes a directors’ report required by section 415 of the Companies Act 2006 as all Trustees of a charity company are directors. ## **1. Structure, Governance & Management** ## **1.1. Trustees** The Trustees meet four times a year to discuss a full range of matters relating to strategic planning and development, grantmaking, governance and finance. The Trustees have also established a Finance Sub Committee which meets quarterly with the external accountant, CURE UK CEO, CURE International COO and CFO. CURE International UK’s partner organisation based in Michigan, USA; CURE International, is a 501(c)(3) not-for-profit organisation. In order to promote transparency and partnership the CURE UK Chair sits on the board of trustees for CURE International as non-voting member. ## **1.2 Trustee Recruitment** New appointments commence with a detailed Trustee Job Description and Person Specification being approved by the Board. This includes the identified skills, experience and expertise that would be beneficial to the Charity. Trustees then use existing networks of contacts in order to recruit the individual who best fits the specification. ## **1.3 Trustee induction** The induction process for any individual newly-appointed to the board of Trustees comprises an initial meeting with at least two of the Trustees (whenever possible one of these two Trustees being the Chair) and receipt of copies of: - The Memorandum and Articles of Association - The most recent financial statements - The Charity Commission’s guidance ‘The Essential Trustee’ - The induction process also includes a visit to a CURE Hospital The Trustees delegate day to day management to Flora Gibbons, the Chief Executive Officer. ## **1.4 Risk Management** The Trustees acknowledge that they have a responsibility for the identification and proper management of risks faced by CURE UK in achieving its primary aims. The Trustees have therefore assessed the major risks to which CURE UK is exposed, in particular those relating to the specific operational areas of CURE UK, its investments and its finances. The Trustees believe that, by monitoring reserve levels, by ensuring that controls exist over key financial systems, and by examining the operational risks faced by CURE UK, they have established effective systems and procedures to manage those risks. |**Risk**|**Management**| |---|---| |Loss of key staff, potential
loss of income as attention is
redirected to recruitment
and training|•
A full complement of trained staff is now in place
•
A six-month review takes place for each staff member
•
Investment in the professional development of staff through internal and external
training| _5_ ## **CURE International UK** ## **Annual Report of the Trustees For the year ended 30 June 2021** |**Risk**|**Management**| |---|---| |Expenditure: the potential
for a significant increase in
operational expenditure|•
Trustees approve an annual budget and ensure authorisation of expenditure is in
accordance with the agreed financial control policy
•
Quarterly management accounts are prepared and reviewed on a timely basis and
appropriate action taken as necessary
•
Monthlychecks and reconciliation are carried out byan external accountant| |Funding: insufficient
unrestricted income to
cover unrestricted expenses|• Annual business planning process to match budgeted expenses with forecast income
• Quarterly fundraising reviews to identify shortfalls and mitigations
• Reserves policy and position reviewed regularly
• Management accounts reviewed quarterly by the Board
• Board and Executive work closely on monitoring income impacts of Covid-19, and
adjusting expenditures to match| |Reputational Risk:|• Trustee induction and training, including safeguarding policies needed when visiting
CURE Hospitals.
• Appropriate training and briefing of ambassadors or patrons associated with CURE UK
when carrying our CURE UK related activities
• Trustee register of interests is taken once a year in conjunction with our conflict of
intertest policy.
• Trustee indemnity policy added to CURE UK charity insurance to mitigate any financial
implications.| |Potential liabilities|We ensure that insurance policies are up-to-date, including employer’s and public
liability.
CURE UK is fully compliant with regulatory requirements and has been accepted by The
Fundraising Regulator. Our policies are including:
•
Data Handling
•
Consent
•
Charity/Company Status Statement
•
Complaints Policy
•
Vulnerable Persons Policy
•
Whistleblowing Policy
•
Anti-Fraud Policy
•
Global Child Protection Policy and Safeguarding Policy
•
Equal Opportunities Policy
•
Vulnerable Persons Policy
•
Trustees Conflict of Interests Policy
The above policies have been made freely available to the public on our website:
uk.cure.org| |Funds to overseas bodies|We have developed a range of controls to ensure that funds reach our intended
beneficiaries, including:
•
Restricted funds are transferred to CURE International in accordance with donor
wishes
•
Use an independent international funds transfer service which is safe and secure to
send funds to CURE International, or where necessary directly to CURE Hospitals or
partner organisation.| _6_ ## **CURE International UK** ## **Annual Report of the Trustees For the year ended 30 June 2021** ||•
•
Visits to overseas projects are carried out where possible by Trustees and staff to
inspect grants with a value of £50,000 or more
•
Reports detailing grant implementations are made available to the Board
•
Where requested receipts of invoices and/or photographic evidence, together with
reports of patients’ data and hospital figures, are compiled. This complies with the
mandatoryrequirements as set out byourgrant makers and fundingbodies|•
•
Visits to overseas projects are carried out where possible by Trustees and staff to
inspect grants with a value of £50,000 or more
•
Reports detailing grant implementations are made available to the Board
•
Where requested receipts of invoices and/or photographic evidence, together with
reports of patients’ data and hospital figures, are compiled. This complies with the
mandatoryrequirements as set out byourgrant makers and fundingbodies| |---|---|---| |||•
•
Visits to overseas projects are carried out where possible by Trustees and staff to
inspect grants with a value of £50,000 or more
•
Reports detailing grant implementations are made available to the Board
•
Where requested receipts of invoices and/or photographic evidence, together with
reports of patients’ data and hospital figures, are compiled. This complies with the
mandatoryrequirements as set out byourgrant makers and fundingbodies| ## **2. Activities & Strategies** In preparing this report, we have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the UK Charity Commission and have sought to demonstrate that CURE UK provides identifiable benefits which relate directly to its aims as stated in its Memorandum and Articles of Association and which outweigh any potential detriment or harm. Further, the benefits are publicly available to all and are not in any way restricted to those able to pay. Any private benefits to Trustees and members of CURE UK are incidental. ## CURE’s mission: to heal the sick and proclaim the kingdom of God. CURE UK is a member of the international consortium of organisations that is the CURE International Network, which together is a leading provider of surgical care to children suffering from correctable conditions in the developing world. The primary activity of CURE revolves around the eradication of preventable disability through surgical care. Whilst CURE International is the heart of global operations, CURE International UK is the centre of UK and European operations, leading strategic partnerships such as with the University of Oxford’s world-leading Nuffield Orthopaedic Centre, and fundraising through UK channels to dramatically improve the delivery and sustainability of paediatric orthopaedic, neuro and reconstructive surgery in the countries where we work. Today, 5 billion people do not have access to safe, affordable surgical care and this access is worse in low-and middleincome countries. This results in treatable disabilities becoming permanent debilitating conditions, often with a lifetime of physical pain, shame, and isolation. The children we serve have conditions like clubfoot, bowed legs, cleft lips, untreated burns, and hydrocephalus. Without treatment, they have little hope for a future. CURE hospitals work to identify patients suffering needlessly from treatable disabilities, advocate and educate communities regarding disability, and address the emotional needs of those burdened with disability. CURE then provides free medical, surgical and rehabilitative care for these children at our speciality paediatric hospitals, while training local health workers to elevate the quality and accessibility of care in each country. All of this is done in an environment where they are treated with love and dignity, often for the first time. Since opening our first hospital in 1998, CURE has ministered to the needs of patients and families during more than 5,000,000 patient visits and 300,000 surgical procedures and trained over 20,000 healthcare workers through our hospitals and health programme in 12 countries across sub-Saharan Africa and Southeast Asia. CURE is a Christian organisation, which is motivated by faith, and driven by science and medicine. We are there for all people regardless of religion, gender, ethnicity or ability to pay. ## **3. Achievements and Performance** This year, despite the additional challenges presented by the pandemic, CURE UK was able to begin reaping the benefits of the systems and strategies put in place in the previous financial year to streamline operations, contract overheads, and improve fundraising. This, coupled with a rapid response to encourage and engage our supporters to give to CURE via a variety of fundraising efforts during the pandemic, meant we were able to successfully generate income for overheads, projects and beneficiaries, whilst maintaining our free reserves levels. _7_ ## **CURE International UK** ## **Annual Report of the Trustees For the year ended 30 June 2021** The Trustees would like to thank some of generous supporters, to whom we are extremely grateful: - ElectricAid, The Bryan Guinness Charitable Trust, The Souter Charitable Trust, The Kilpatrick Fraser Charitable Trust, The Caldbeck Christian Trust and The Maurice and Hilda Laing Charitable Trust. - Our church partners, namely; Old Parish & St Pauls Church of Scotland (Galashiels), Birchley St Mary’s Third World Group, Hillside Church (Ripon) and St Edward, King and Martyr, Goathurst. - All of our private donors who gave so generously throughout the year, supporting CURE UK and its hospitals through a difficult year. Finally, we are especially proud of the successful launch and opening of the CURE Children’s Hospital of Zimbabwe. Based in Bulawayo, it is the first and only hospital in the country which provides free, specialist orthopaedic and rehabilitative care for children with musculoskeletal conditions. Our special thanks go to Lady Frederick Windsor for being Royal Patron of CURE UK. We would also like to thank Lord Simon Reading for his service as a CURE. ## **4. Financial Review** Funding for CURE UK comes from a variety of UK sources including, statutory funding, trusts and foundations, churches and rotary networks, major donors and regular supporters, corporates and events. ## **4.1 Financial Activity and Financial Position** The Statement of Financial Activities and Balance Sheet can be found on pages 11 and 12. CURE UK’s reserves decreased by £24,587 during the period (2020 – decreased by £26,419). The balance sheet shows total net assets of £95,585 (2020: £120,172). Included in total funds are amounts totalling £52,776 (2020: £64,985) which are restricted. These monies have been raised for, and their use restricted to, specific purposes, as specified by donors. Full details of these restricted funds can be found in note 9 to the accounts together with an analysis of movements in the year. ## **4.2 Reserves Policy** The Trustees have examined the requirements for free reserves, ie those unrestricted funds not invested in tangible fixed assets. The Trustees consider that, given the nature of CURE UK’s work, free reserves should be equivalent to approximately 3 months’ operational expenditure. The Trustees are of the opinion that this provides sufficient flexibility to cover temporary shortfalls in income and will allow CURE UK to cope and respond to unforeseen emergencies whilst specific action plans are implemented. At 30 June 2021 CURE UK had net free reserves of £40,811 (2020: £55,187) as follows: |**Total reserves**
Less: restricted funds
Less: unrestricted fixed assets used for the continuing work of CURE UK
**Free reserves**
**Free reserves requirement:**
3 months budgeted routine expenditure|**2021**
**£**
**95,585**
(52,776)
(1,998)
**40,811**
35,000|**2020**
**£**
**120,172**
(64,985)
-|| |---|---|---|---| |||**55,187**|| |||35,000|| ||||| ## **4.3 Investment Policy** Funds in excess of immediate requirement are placed on bank deposit account. _8_ ## **CURE International UK** ## **Annual Report of the Trustees For the year ended 30 June 2021** ## **4.4 Pay Policy** The pay of all staff, including the Chief Executive, is reviewed annually by the Board. It is our expectation that we will continue to benchmark staff benefits against staff performing similar roles in similar charities and will take into consideration the finances of the charity at the time. ## **5. Plans for Future Periods** In FY21 CURE UK plans to review and cement its working relationship with CURE International, and its new leadership, in order to better serve the CURE Network. The board will continue its search for potential new trustees, to expand the board in numbers and expertise. We would also like to arrange board members who haven’t yet visited a CURE hospital, to make a trip, in order to connect more deeply with and gain a better understanding of CURE’s work. We will continue to foster and develop relationships with UK institutions, primarily the University of Oxford University to augment training and research at CURE partner hospitals. CURE UK will continue to fundraise, though a variety of funding streams, for overheads and ring-fenced projects, primarily at our closest hospital partners; CURE Malawi, CURE Ethiopia and CURE Zimbabwe, with a special focus on gaining new support for CURE Zimbabwe, as it navigates its first years of activity. CURE UK will also carry out a marketing audit, in order to upgrade our current communication streams, including a new CURE UK website, to better communicate with current donors, and connect with potential new supporters. Finally, with restrictions permitting, we plan to hold the CURE Carols by Candlelight service in December 2021, to meet with and thank donors for their support. ## **6. Statement of responsibilities of the trustees** The trustees (who are also directors of CURE UK for the purposes of company law) are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which 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 the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: - Select suitable accounting policies and then apply them consistently - Observe the methods and principles in the Charities SORP - Make judgements and estimates that are reasonable and prudent - State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation The Trustees are responsible for keeping adequate accounting records that 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. _9_ ## **CURE International UK** ## **Annual Report of the Trustees For the year ended 30 June 2021** 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 dissemination of financial statements may differ from legislation in other jurisdictions. The report of the Trustees has been prepared in accordance with the special provisions applicable to companies’ subject to the small companies’ regime. ## **7. Approval** The report of the Trustees was approved by the Trustees on 11 March 2022 and signed on its behalf by: ## **Mr. John O’Dowd Chairman** _10_ ## **CURE International UK** ## **Independent examiner's report to the Trustees of CURE International UK** I report on the accounts of Cure International for the year ended 30 June 2021 set out on pages 12 to 21. ## **Respective responsibilities of Directors and Examiner** The Directors are responsible for the preparation of the accounts. The Directors consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (“the 2011 Act”) and that an independent examination is needed. The Charity’s gross income exceeds £250,000 and I am qualified to undertake the examination by being a qualified member of the Association of Chartered Certified Accountants. Having satisfied myself that the Charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to: - examine the accounts under section 145 of the 2016 Act); - to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2016 Act; and - to state whether particular matters have come to my attention. ## **Basis of independent examiner's report** My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Directors concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. ## **Christine Cheung-Poston ACCA** **21 April 2022** _11_ ## **CURE International UK** ## **Statement of Financial Activities (incorporating the income and expenditure account) For the year ended 30 June 2021** |**Note**
**Income from:**
2
Donations and legacies
Other trading activities
Investments
**Total Income**
**Expenditure on:**
Raising funds
Charitable activities
3
**Total Expenditure**
Net gains/(losses) on investments
**Net (expenditure)/income**
**4**

Tax payable
5

**Net (expenditure)/income after**
**tax**
Transfers between funds
9
Other recognised gains/(losses)

**Net movement in funds**
Total funds brought forward

**Total funds carried forward**
|**Unrestricted**
**Funds**
**2021**
**£**

87,463
-
46||**Restricted**
**Funds**
**2021**
**£**
193,547
-
-
**193,547**
-
206,071
**206,071**
-
**(12,524)**
-
**(12,524)**
315
-
**(12,209)**
64,985
**52,776**|**Total**
**2021**
**£**
281,010
-
46
**281,056**
39,627
266,016
**305,643**
-
**(24,587)**
-
**(24,587)**
-
-
**(24,587)**
120,172
**95,585**|**Unrestricted**
**Funds**
**2020**
**£**
126,528
7,238
228|


|**Restricted**
**Funds**
**2020**
**£**
121,353
-
-
**121,353**
-
157,239
**157,239**
-
**(35,886)**
-
**(35,886)**
(2,828)
-
**(38,714)**
103,699
**64,985**|**Total**
**2020**
**£**
247,881
7,238
228| |---|---|---|---|---|---|---|---|---| ||**87,509**||||**133,994**|||**255,347**| ||39,627
59,945
**99,572**
-
**(12,063)**
-
**(12,063)**
(315)
-
**(12,378)**
55,187
**42,809**||||57,623
66,904|||57,623
224,143| ||||||**124,527**|||**281,766**| ||||||-|||-| ||||||**9,467**|||**(26,419)**| ||||||-|||-| ||||||**9,467**
2,828
-|||**(26,419)**
-
-| ||||||**12,295**
42,892|||**(26,419)**
146,591| ||||||**55,187**|||**120,172**| |||||||||| All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 9 to the financial statements. _12_ ## **CURE International UK** ## **Balance Sheet As at 30 June 2021** |**Fixed Assets**
Tangible Assets
6
**Current Assets**
Debtors
7
Cash At Bank And In Hand
**Creditors - Amounts Falling**
**Due Within One Year**
8
**Net Current Assets**
**Net Assets**
**Represented By:**
**Restricted Funds in surplus**
9
**Unrestricted Income Funds**
**Total Funds**|**Unrestricted**
**Funds**
**2021**
**£**
1,998
20,270
24,385
44,655
3,844
40,811
**42,809**
-
42,809
**42,809**||**Restricted**
**Funds**
**2021**
**£**
-
-
52,776
52,776
-
52,776
**52,776**
52,776
-
**52,776**|**Total**
**2021**
**£**
1,998
20,270
77,161
97,431
3,844
93,587
**95,585**
52,776
42,809
**95,585**||**Total**
**2020**
**£**
-
12,935
110,856| |---|---|---|---|---|---|---| |||||||123,791
3,619| |||||||120,172| |||||||**120,172**| |||||||64,985
55,187| |||||||**120,172**| |||||||| These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The company is entitled to exemption from audit under section 477 of the Companies Act 2006 for the year ended 30 June 2021 and no notice requiring an audit has been deposited under section 476. The Trustees acknowledge their responsibilities for: - ensuring that the company keeps accounting records which comply with section 386 of the Companies Act 2006 - preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial period and of its profit or loss for the financial period 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 is applicable to the company. These financial statements were approved by the Trustees on 11 March 2022 and signed on their behalf by: **Mr. John O’Dowd Chairman** Company registration number: 4268644 _13_ **Notes to the Financial Statements For the year ended 30 June 2021** ## **CURE International UK** ## **1. Accounting Policies** CURE International (UK) is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address is The Royal College of Surgeons of England, 35-43 Lincoln’s Inn Fields, London WC2A 3PE. The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: ## **Basis of accounting** The financial statements have been prepared under the Companies Act 2006 and in accordance with the Charities Statement of Recommended Practice (Charities SORP (FRS 102)) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting. The Charity meets the definition of a public benefit entity under FRS 102. ## **Going Concern** There are no material uncertainties about the Charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis. ## **Income recognition** Voluntary income and donations (including legacies) are accounted for once the Charity has entitlement to the income, it is probable the income will be received and the amount of income receivable can be reliably measured. Income from the recovery of tax on gift aided donations is accounted for in the period to which the relevant donation is received. Grant income is recognised on a receivable basis. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank. ## **Expenditure recognition** Expenditure is accrued as soon as a liability is considered probable, and the amount of obligation can be measured reliably. Longer term liabilities are discounted to present value. The Charity is not registered for VAT and accordingly expenditure includes VAT where appropriate. Expenditure included in Raising Funds includes amounts incurred in obtaining grants and other donations. Charitable expenditure includes those costs in fulfilling the Charity’s principal objects, as outlined in the Report of the Trustees. Charitable expenditure includes governance costs and an apportionment of support costs. Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to the independent examination and legal fees. Support costs are allocated to charitable, fundraising and governance activities on the following bases: - Staff costs: time basis - Office costs and premises & equipment: time basis. Rentals under operating leases are charged as incurred over the term of the lease. Grants payable are payments made to third parties in the furtherance of the charitable objects of the Charity. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the one-year or multi-year grant. Grants awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the Charity. _14_ **Notes to the Financial Statements For the year ended 30 June 2021** ## **CURE International UK** ## **1. Accounting Policies (continued)** Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty as to the timing of the grant or the amount of grant payable. The provision for a multi-year grant is recognised at its present value where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the Charity that would permit the Charity to avoid making the future payment(s), settlement is probable and the effect of discounting is material. The discount rate used is the average rate of investment yield in the year in which the grant award is made. This discount rate is regarded by the trustees as providing the most current available estimate of the opportunity cost of money reflecting the time value of money to the Charity. The Charity makes contributions to defined contribution pension schemes for eligible employees. The assets of the schemes are held separately from these of the Charity in an independently organised fund. The pension cost charge represents contributions payable under the scheme by the Charity to the fund. The Charity has no liability under the scheme other than for the payment of these contributions. ## **Tangible Fixed Assets** The cost of furniture, fittings and equipment, less any expected residual value, is depreciated at 33% on a straight line basis. The cost of individual items of less than £250 are not capitalised but are expensed in the period of purchase. ## **Debtors** Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid. ## **Cash at bank and in hand** Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit. ## **Creditors and provisions** Creditors and provisions are recognised where the Charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount. ## **Foreign Currencies** Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate if exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the net income or expenditure for the year. ## **Fund accounting** The funds held by the Charity are either: - Unrestricted general funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees. - Restricted funds - these are funds that 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. _15_ ## **CURE International UK** ## **Notes to the Financial Statements For the year ended 30 June 2021** ## **2. Income** |**2. Income**||||||| |---|---|---|---|---|---|---| |Donations & legacies
Donations & grants
Income tax reclaimed
Legacies
Other trading activities
Fundraising events (ticket sales, auctions etc)
Investments
Bank Interest
**Total**|**Unrestricted**
**Funds**
**2021**
**£**
**Restricted**
**Funds**
**2021**
**£**
67,365
193,546
12,169
-
7,931
-
87,465
193,546
-
-
46
-
**87,511**
**193,546**||**Total**
**2021**
**£**
260,911
12,169
7,931
281,011
-
46
**281,057**|||**Total**
**2020**
**£**
240,539
7,342
-| |||||||247,881
7,238
228| |||||||**255,347**| |||||||| ## **3. Expenditure** ## **3a. Fundraising** |Fundraising|**Direct**
**costs**
**£**
2,901|**Support**
**costs**
**(note 3c)**
**£**
36,726|
**Unrestricted**
**Funds**
**2021**
**£**


39,627|**Restricted**
**Funds**
**2021**
**£**
-||**Total**
**2021**
**£**
39,627||**Total**
**2020**
**£**
57,623| |---|---|---|---|---|---|---|---|---| |||||||||| ## **3b. Charitable Activities** |**Charitable**
**Giving**
**£**
**Support**
**costs (note**
**3c)**
**£**
In support of the work at CURE
Children’s hospitals, in accordance
with donors’ wishes
203,571
59,218
In support of the CURE Clubfoot Early
Detection and Adherence Project to
strengthen training and delivery
capacity in Low and Middle Income
Countries
2,500
727
**206,071**
**59,945**|**Unrestricted**
**Funds**
**2021**
**£**
59,218
727
**59,945**|**Restricted**
**Funds**
**2021**
**£**
203,571
2,500
**206,071**||**Total**
**2021**
**£**
262,789
3,227||**Total**
**2020**
**£**
152,937
71,206| |---|---|---|---|---|---|---| |||||**266,016**||**224,143**| |||||||| _16_ ## **CURE International UK** ## **Notes to the Financial Statements For the year ended 30 June 2021** ## **3. Expenditure (continued)** Recipients of direct charitable giving is analysed as follows: |**Unrestricted**
**Funds**
**2021**
**£**
CURE International
-
Other charitable institutions
-
**0**|**Restricted**
**Funds**
**2021**
**£**
203,571
2,500
**206,071**||**Total**
**2021**
**£**
203,571
2,500
**206,071**||**Total**
**2020**
**£**
107,287
49,952| |---|---|---|---|---|---| ||||||**157,239**| ||||||| CURE UK utilises CURE International as a conduit to distribute restricted funds in accordance with donor wishes. ## **3c. Allocation of 2021 support & governance costs to charitable and fundraising activities** |**Staff costs**
**£**
**Office costs**
**£**
**Premises &**
**equipment**
**£**
**Governance**
**£**
Fundraising/income generation (see note 3a)
26,916
8,912
898
-
Charitable activities (see note 3b)
45,503
12,692
1,278
472
**72,419**
**21,604**
**2,176**
**472**||**Total**
**£**
36,726
59,945| |---|---|---| |||**96,671**| ## Basis of allocation: - Staff costs: time basis - Office costs and premises & equipment: on basis of apportioned staff costs. - Governance: 100% to charitable activities ## **3d. Staff costs** Included within expenditure are the following staff costs of employed individuals: |Wages and salaries
Social security costs
Pension costs
Of which the following salaries and pension contributions were in
relation to Key Management Personnel:
Wages and salaries
Pension costs||**2021**
**£**
68,083
2,684
1,653
**72,420**
40,000
1,013
**41,013**||**2020**
**£**
69,124
4,266
1,632
**75,022**
40,000
1,016
**41,016**| |---|---|---|---|---| _17_ ## **CURE International UK** **Notes to the Financial Statements For the year ended 30 June 2021** ## **3. Expenditure (continued)** The number of employed individuals during the year was 3 (2020: 4). No employee (2020: none) received payments in excess of £60,000 during the year. ## **3e. Trustee expenses** The expenses of nil (2020: 1) trustees amounting to £nil (2020: £69) in relation to training, travel & subsistence were met during the period. ## **4. Net Expenditure** Net expenditure is stated after (crediting)/charging: |Depreciation – owned assets
Independent Examiner’s remuneration
Foreign exchange gains/(losses)|**Unrestricted**
**Funds**
**2021**
**£**
**Restricted**
**Funds**
**2021**
**£**
666
-
250
-
107
-||**Total**
**2021**
**£**
666
250
107||**Total**
**2020**
**£**
-
250
39| |---|---|---|---|---|---| ||||||| ## **5. Taxation** As a charity, CURE International UK is exempt from tax on income and gains falling within the provisions of the Corporation Taxes Act 2010 or the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen on the Charity. _18_ ## **CURE International UK** ## **Notes to the Financial Statements For the year ended 30 June 2021** ## **6. Tangible Fixed Assets** |**6. Tangible Fixed Assets**|| |---|---| ||**Fixtures,**| ||**fittings &**| ||**equipment**| ||**£**| |**Cost**|| |At 1 July 2020|8,092| |Additions|2,664| |Disposals|-| |At 30 June 2021|10,756| |**Depreciation**|| |At 1 July 2020|8,092| |Charge for Period|666| |Disposals|-| |At 30 June 2021|8,758| |**Net Book Value**|| |At 30 June 2021|1,998| |At 30 June 2020|0| All of the fixed assets are used for charitable purposes. ## **7. Debtors** |Gift Aid Tax receivable
Other debtors||**2021**
**£**
16,926
3,344
**20,270**||**2020**
**£**
7,337
5,598| |---|---|---|---|---| |||||**12,935**| |||||| ## **8. Creditors – Amounts Falling Due Within One Year** |Other creditors including taxation and social security
Accruals and deferred income||**2021**
**£**
2,094
1,750
**3,844**||**2020**
**£**
1,619
2,000| |---|---|---|---|---| |||||**3,619**| |||||| _19_ ## **CURE International UK** ## **Notes to the Financial Statements For the year ended 30 June 2021** ## **9. Restricted Funds** ## **9a Current Year** |**9a Current Year**|||||| |---|---|---|---|---|---| ||**At 1 July**||||**At 30 June**| ||**2020**|**Income**|**Expenditure**|**Transfers**|**2021**| ||**£**|**£**|**£**|**£**|**£**| |Antonia Freeman Scholarship|24,992|-|-|-|24,992| |CURE Children’s Hospital of Ethiopia|8,189|20,585|(19,931)|(988)|7,855| |CURE Children’s Hospital of Ghana|0|14,145|(14,145)|-|0| |CURE Children’s Hospital of Philippines|0|-|-|-|0| |CURE Children’s Hospital of Uganda|235|9,540|(9,675)|-|100| |CURE Children’s Hospital of Zimbabwe|0|128,343|(113,673)|1,033|15,703| |Beit CURE Children’s Hospital of Zambia|1,993|2,311|(2,800)|270|2,352| |Beit CURE Hospital Malawi|29,576|16,123|(43,347)|-|1,774| |Hope Walks (formerly CURE Clubfoot)|0|2,500|(2,500)|-|0| |**Total**|**64,985**|**193,547**|**(206,071)**|**315**|**52,776**| ||||||| |**9b Prior Year**|||||| ||**At 1 July**||||**At 30 June**| ||**2019**|**Income**|**Expenditure**|**Transfers**|**2020**| ||**£**|**£**|**£**|**£**|**£**| |Antonia Freeman Scholarship|24,992|-|-|-|24,992| |DFID/THET COOL Partnership|620|-|-|(620)|0| |CURE Children’s Hospital of Ethiopia|28,091|43,148|(63,000)|(50)|8,189| |CURE Children’s Hospital of Philippines|0|1,125|(1,125)|-|0| |CURE Children’s Hospital of Uganda|370|540|(675)|-|235| |Beit CURE Children’s Hospital of Zambia|1,120|1,953|(1,080)|-|1,993| |Beit CURE Hospital Malawi|16,203|55,880|(41,407)|(1,100)|29,576| |Hope Walks (formerly CURE Clubfoot)|31,453|18,707|(49,952)|(208)|0| |African Clubfoot Training|850|-|-|(850)|0| |**Total**|**103,699**|**121,353**|**(157,239)**|**(2,828)**|**64,985**| ||||||| The transfers in 2019/20 and 2020/21 were to correct historic errors. Descriptions of the main restricted funds are as follows: **Antonia Freeman Scholarship:** funds in support of an Orthopaedic Fellow at CURE Malawi **DFID/THET COOL partnership:** funds received in support of research and training in trauma and musculoskeletal impairment **CURE Children’s Hospitals:** funds received in support of life-saving and life-changing medical care for children at these hospitals **CURE Clubfoot:** funds received in support of treatment and research of clubfoot in India and Sub-Saharan Africa. **Beit CURE Hospitals** : funds received in support of medical care for children and CURE’s ongoing work. **African Clubfoot Training** : funds received in support of treatment and research of clubfoot in in sub-Saharan Africa. _20_ ## **CURE International UK** ## **Notes to the Financial Statements For the year ended 30 June 2021** ## **10. Operating Lease Commitments** At 30 June 2021 the following operating lease payments are committed to be paid: |Not later than one year
Later than one year and not later than five years||**2021**
**£**
-
-
**0**||**2020**
**£**
4,948
-
**4,948**| |---|---|---|---|---| ## **11. Related Party Transactions** CURE UK utilises CURE International Inc as a conduit to distribute restricted funds in accordance with donor wishes. During the year ended 30 June 2021 £203,571(2020: £107,286) was sent to CURE International. Trustees made aggregate unrestricted donations of £4,505 (2020: £2,135) during the year. ## **12. Member’s Funds** CURE International UK is a company limited by guarantee without a share capital. Instead of a share capital, each member guarantees to pay not more than £10 in the event of the company's liquidation. The amount of the members' guarantee represents a contingent asset to the company which will crystallise only if the company goes into liquidation. As the company is a going concern, the members have no obligation to pay the sum guaranteed. If on a winding up of the company there remains after satisfaction of all debts and liabilities any assets, they cannot be paid to or distributed among the members but will be transferred to CURE International. _21_