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2022-02-28-accounts

HOPE DIGNITY & JUSTICE

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR CHILDREN ON THE EDGE FOR THE YEAR ENDING 28 FEBRUARY 2022

CONTENTS
1.
OVERVIEW
Hope Dignity & Justice
2.
OUR PROGRAMMES
India
Bangladesh
Myanmar
Uganda (Slum Communities)
Uganda (Kyaka II Refugee Camp)
Lebanon
3.
FINANCE FUNDRAISING & GOVERNANCE
Finance
Fundraising
Safeguarding
Reference & Administrative Details
Structure, Governance & Management
Statement of Trustees’ Responsibilities
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF CHILDREN
ON THE EDGE
Statement of Financial Activities
Balance Sheet
Cash Flow Statement
Notes to the Financial Statements
3
4
6
8
10
12
14
17
19
21
22
23
25
26
30
31
32
33

HOPE, DIGNITY & JUSTICE

Children on the Edge envisions a world in which every child thrives regardless of their geography, ethnicity, gender, or caste. We place children at the heart of everything we do by working hand-in-hand with local communities to restore hope, dignity, and justice; and to actively involve everyone in creating transformation.

We believe in cultivating hope as a catalyst for change; a gritty, determined, can-do kind of hope that restores people’s motivation and ability to transform their own lives. This year, we’ve seen this hope in the Kyaka II refugee camp, where children who were completely cut off from early years learning through the pandemic have been able to access community based, quality education. This was achieved through a new award winning Cluster group model which, even now schools have reopened, is continuing to make education accessible for thousands more Congolese refugee children.

We treat everyone with the dignity they deserve. We have witnessed that people who are pushed to the edge of society, overlooked, or told they are worthless often start to believe it. Those we work with have been completely sidelined during lockdown, facing around 18 months of school closures without the home support offered to other children. We ensured they have been noticed, protected and given access to decent education through this time. As schools reopened, thousands of Rohingya refugee children were met with flowers, chocolates, balloons and banners to underline just how much they are respected and valued. In India, children were given leading roles in encouraging friends out of child labour and back to school and, in Lebanon, Syrian refugee children graduated high school exams with flying colours, and went on to be celebrated with certificates, speeches and formal caps and gowns.

When it comes to justice, every child has rights, yet these are rarely realised for children living on the edge. Rohingya refugee children in Bangladesh are still banned from learning in their own language, so our digital lessons provide visual education, enabling them to finally learn in a meaningful way. In May 2021, after five years of campaigning with our partners in Uganda, we saw the passing of the Prevention and Prohibition of Human Sacrifice Bill. This new law aims to curb rampant cases of human sacrifice by addressing gaps in existing legislation, bringing justice and protection for hundreds of children who, without it, are at risk of being killed or mutilated by perpetrators acting with impunity.

When we began in 1990, the children on the edge we served were those incarcerated and forgotten in Romanian orphanages. Today, the “edge” takes us into refugee camps, slums, and warzones and, at the very end of this year, back to our roots in Romania and Moldova, supporting Ukrainian refugees fleeing Russian invasion.

We want to thank each and every one of our supporters for your generosity. You have enabled us to act quickly, always supporting those most on the edge, and helped us to restore hope, dignity and justice to the communities we partner with.

Rachel Bentley CEO & Founder

Stuart Gallimore Chair of Trustees

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INDIA
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In Bihar State, deep rooted caste discrimination against the ‘untouchable’ Dalit minority causes children to be ostracised from education and denied their rights. Societal exclusion has trapped slum communities in and around Patna in a cycle of poverty and low self-esteem. India faced a brutal second wave of COVID-19 this year, with Dalit communities given little support to survive both the virus and its resulting restrictions.

A few hours north, on the border of Nepal, Dalit children are growing up in brothel communities with no opportunity for education, and the situation has been compounded further by the pandemic.

COVID PROTECTION CAMPAIGNS IN PATNA

OBJECTIVES

ACTIVITIES

PARTNERS

Navjeevan Educational and Social Welfare Society Digha (NESWSD) and Parivartan Kendra (PK) in Patna. Tatvasi Samaj Nyas (TSN) on the Nepal border.

Throughout lockdown, 3,000 families were provided with survival packs and a further 500 frontline health workers with safety kits, while a mobile mentoring programme identified and supported those most in need.

We supported 31 teachers in 31 learning centres for over 1,000 children. Children were given access to lockdown education through batch learning classes until classrooms re-opened in July.

Computer classes continued to run, providing basic skills for 250 children and support to apply for higher education and job opportunities.

4

A new ‘Flourish’ programme began for 340 teenagers, giving them extra support in navigating and understanding this stage of their adolescence.

30 students were able to continue with their NIOS (National Institute of Open Schooling) studies, which gives them the chance to take formal exams and access college or university in the future.

12 Child Parliaments were facilitated throughout the year providing training and advocacy opportunities for 152 children.

89 Women’s Groups with over 1,057 members were trained on their rights, savings, parenting, small business loans, and the prevention of domestic abuse, child marriage and trafficking.

With two extra groups added this year, Child Parliaments continued to grow in confidence, advocating for their peers with government officials and leading in their communities.

There were nine new Women’s Groups this year, making a total of 89. 50 ‘Community Resource Persons’ were trained to increase their independence, and they created ‘Model Women’s Groups’ to replicate success to new members.

The vast array of celebrations not only served to boost the self esteem and confidence of the children but were effective in increasing support for education in the local communities, and attracting new learners.

FUTURE PLANS

A rich variety of celebrations and competitions continued this year for thousands of children and local community members.

We provided basic education and care for 90 children, in three slum communities on the Nepal border, in one of Bihar’s most renowned human trafficking areas.

ACHIEVEMENTS AND PERFORMANCE

The team were able to improve on their emergency response methods using learnings from the first COVID-19 wave, delivering efficiently to thousands of households through local networks.

The mobile mentoring programme was a great success, connecting 250 COVID-19 patients to medical support and oxygen, identifying 65 households for home visits, enabling testing for 250 people and circulating training videos to hundreds.

The child-led ‘Back to School’ programme was effective in encouraging children out of child labour and back into classrooms. Teachers gave such dedicated help to returning students that they adapted quickly and performed well in their Hindi, English and maths exams in December.

“I have a dream to continue my studies and become a teacher in future. I lost my father in an accident after which we could not afford for all us children to study, but now my sisters and I are studying in the learning centres. I am in sixth grade now and, with the help of the teacher, I am enrolled with the government school”.

ARTI KUMURI

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DIGITAL LESSONS IN KUTUPALONG

BANGLADESH

Since 2009 we have been working to provide education and support to Rohingya refugee and slum dwelling children in Bangladesh. In Kutupalong refugee camp, children have little access to learning and are denied a curriculum in their own language. Some Rohingya have moved away from the crowded border area to ‘enclave communities’ where children are cut off from basic services, and slum dwelling children in Cox’s Bazar also face financial and practical barriers to attending school.

All these children are in danger of growing up without an education, and this year, barriers increased further through ongoing lockdowns and school closures which not only prevented children from attending learning, but stopped many parents from earning.

PARTNERS

OBJECTIVES

8,900 Rohingya refugee and Bangladeshi slum dwelling children access relevant primary education, gaining vital knowledge and skills, improving their everyday lives and future opportunities. This includes:

Mukti Cox’s Bazar

ACTIVITIES

Wide scale assessment conducted to determine learning gaps resulting from lockdown.

178 classrooms re-opened in September after 18 months of closures, with handwashing stations built, temperature checks and social distancing in place.

7,448 children were re-enrolled and given new school bags and learning materials.

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The digital education curriculum was fully implemented, along with 30 videos on health awareness and a monitoring and evaluation system developed to assess impact.

Digital Moja Kids newsletters increased to a weekly production, and the first steps for connection with children in Uganda, India and Cambodia are underway.

Child Councils and School Management Committees have been facilitated in each programme area and received training on the importance of education.

Five model classrooms were established on Bhasan Char island, to create a benchmark of quality education for arriving Rohingya children.

A new six-classroom Learning Centre was built in Khurushkul community, Cox’s Bazar, for 300 students who had been relocated due to the international airport expansion.

ACHIEVEMENTS AND PERFORMANCE

Re-opened classrooms had a 96% attendance rate, with the first term’s evaluation showing:

Teachers, parents and children reported positive changes in students, including increased cleanliness, confidence, optimism and interest in learning.

Digital lessons increased attendance and enabled children to engage in meaningful learning in a language they can understand. 100% of teachers interviewed who have used the projector system think it is excellent for children’s learning, whilst 100% of children love their video lessons, with 73% saying it’s what they like most about school.

The Moja kids video newsletter has become a well-established favourite, increasing attendance, confidence, connection and joy among all the children in the classrooms.

Child Councils and School Management Committees have used their influence in local communities to increase attendance and advocate for the prevention of child marriage.

FUTURE PLANS

“Myself and the children at my learning centre are very happy. I also like to teach through the projector, and the children come to school very happily. I am able to explain to the children quickly through the projector what I have been explaining for a long time through books” ROJIN AKTER Teacher in Kutupalong

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KACHIN STATE
PLAY TIME IN KACHIN STATE
Due to years of civil conflict in Kachin State in OBJECTIVES
Myanmar, over 100,000 internally displaced
-
people remain trapped in remote mountain Ensure stability for young children living
camps, facing increasingly desperate in a conflict environment and recovery
conditions. Displaced children under the age of from trauma, enabling them to enjoy
six have known little else but war and its being children in a vibrant, safe place
resulting trauma. Whilst there is some primary each day.
-
education in these camps, there is no early Provide access to quality early years
years provision, at a crucial time in their learning, preparing children for
development. transition to existing primary schools.
-
Support parents and community
members in their care of children and
Since the military coup in February 2021 and
the continuation of COVID-19 restrictions, those COVID-19 restrictions, those restrictions, those encourage them to contribute to
management of the centres, ensuring
we work with have faced increasing challenges
long-term sustainability.
day to day, with severe shortages of food, -
Develop the strength, knowledge and
firewood, healthcare services, livelihood
agility of our partners in dealing with
opportunities, and education access. They have arising issues.
also experienced direct military attacks and
further displacement. ACTIVITIES
PARTNERS From April 2021, the 14 Early Childhood
Development (ECD) centres we support in nine
- Kachin Development Group (KDG) and Kachin
internally displaced people’s (IDP) camps were
Women’s Association (KWA)
closed again due to COVID-19, and learning COVID-19, and learning , and learning
from home began again for 377 children.
168 students graduated from their ECD
learning, with a ceremony and caps and gowns
for all, despite most of their 2020 education
having been from home.
36 teachers were provided with comprehensive
8 refresher training
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KACHIN STATE
PLAY TIME IN KACHIN STATE
Due to years of civil conflict in Kachin State in OBJECTIVES
Myanmar, over 100,000 internally displaced
-
people remain trapped in remote mountain Ensure stability for young children living
camps, facing increasingly desperate in a conflict environment and recovery
conditions. Displaced children under the age of from trauma, enabling them to enjoy
six have known little else but war and its being children in a vibrant, safe place
resulting trauma. Whilst there is some primary each day.
-
education in these camps, there is no early Provide access to quality early years
years provision, at a crucial time in their learning, preparing children for
development. transition to existing primary schools.
-
Support parents and community
members in their care of children and
Since the military coup in February 2021 and
encourage them to contribute to
the continuation of COVID-19 restrictions, those COVID-19 restrictions, those restrictions, those
management of the centres, ensuring
we work with have faced increasing challenges
long-term sustainability.
day to day, with severe shortages of food, -
Develop the strength, knowledge and
firewood, healthcare services, livelihood
agility of our partners in dealing with
opportunities, and education access. They have arising issues.
also experienced direct military attacks and
further displacement. ACTIVITIES
PARTNERS From April 2021, the 14 Early Childhood
Development (ECD) centres we support in nine
- Kachin Development Group (KDG) and Kachin
internally displaced people’s (IDP) camps were
Women’s Association (KWA)
closed again due to COVID-19, and learning COVID-19, and learning , and learning
from home began again for 377 children.
168 students graduated from their ECD
learning, with a ceremony and caps and gowns
for all, despite most of their 2020 education
having been from home.
36 teachers were provided with comprehensive
8 refresher training
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A two-day humanitarian relief programme for the hard-to-reach camps was facilitated, ensuring essential food items and COVID-19 prevention materials for 970 families (4,496 people).

Warm clothes were distributed to 340 children to help them manage in the high altitude winter temperatures. Clothing parcels included hats, coats, trousers, socks and shoes.

Our Project Manager and Project Assistant have studied for a diploma in Early Childhood Care and Development (ECCD), from the Myanmar Professional Business and IT School.

14 centres reopened in the first few weeks of January 2022 for 377 children. Enrolment numbers are expected to rise to 530 throughout 2022.

ACHIEVEMENTS AND PERFORMANCE

Adapting early education provision for a second year of (increasingly stringent) lockdown restrictions, in the most remote conditions, has continued to be an incredible feat, with home learning support maintaining the children’s progress and enthusiasm.

Topics covered in the ECCD diploma have already benefited the staff in planning and supporting the programme, and been passed on to teachers for their development; enhancing our early years provision.

Community ownership has been maintained, with parents and ECD Committees continuing to help with renovations and the creation of indoor and outdoor supplies, as well as the distribution of warm clothes and food parcels.

Delivering food relief was a huge achievement as travel to the programme areas, even for humanitarian relief, was not permitted. Through negotiating with the Kachin Independence Organisation’s (KIO) COVID-19 Prevention Committee and the IDPs and Refugee Relief Committee (IRRC), our local partners were granted access to the most remote camps.

FUTURE PLANS

“This year is a very tough year for every family in our camp. Some families could not even afford table salt for their meals. We are very pleased to have your assistance during this difficult period.” Kawn Mai Li

Teacher from Sha-it Yang

Teachers have grown in confidence as a result of their training, especially with regard to lesson planning and interaction with children.

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CHILD PROTECTION TRAINING IN LOCO
UGANDA - SLUM COMMUNITIES
In the slum communities surrounding Jinja, Replicate our Child Protection Team (CPT)
dwellers face poor sanitation, low employment model in key areas around Uganda, engaging
and high crime rates. The majority of with local government structures.
households struggle to access education for
their children, often experiencing a On a national level - Address gaps in legislation
disconnection from local services and a lack of regarding child sacrifice.
awareness regarding effective child protection.
In short, many children are at risk of abuse, ACTIVITIES
neglect and exploitation, even child sacrifice.
Supported, trained and resourced all Child
These issues were further compounded for a Protection Teams, now in six slum
second year by repeated lockdowns; shutting communities.
down schools, government services and cutting
households off from earning opportunities for Established, trained and equipped a new Child
the vast majority of the year. Protection Team in Mafubira, linking in with
government structures. Ongoing research,
PARTNERS - Children on the Edge Africa networking and needs assessments was
carried out in Busia, Karamoja and Namataala,
OBJECTIVES ready for further replication of the Child
Protection Team model.
At a local level - Support five slum communities
to create protective environments for their Delivered 81 Child Protection Team and wider
children, through voluntary Child Protection community workshops across six areas, on
Teams who work in each area to develop: issues including personal and community
hygiene, tackling local crime, teen pregnancy,
- Child protection training and the creation of a child counselling, addressing sexual assualt,
safe environment. domestic violence.
- Improved relationships between communities
and service providers. Provided all Child Protection Team members
- Economic stability for struggling households. and 50 struggling community members with
- Access to education for children. food parcels to support them through
lockdown.
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500 children were provided with ‘Cluster Group’ early learning throughout Covid school closures and 136 students from our Early Childhood Development (ECD) centres received home study packs and ongoing support.

Wandago and Loco ECD centres were re-opened in January 2022 for 144 children. All children received full health checks, deworming and vitamin supplements.

Three Child Rights Clubs were supported to work alongside Child Protection Teams and trained in various child rights issues including the prevention of sexual exploitation and child labour.

New ‘Lead Storyteller’ programme was launched, to encourage five participants to take ownership in representing their work and their communities, using their own ideas and narrative.

103 small business owners were supported with ‘education loans’ and savings training, with the aim of helping parents to create reliable incomes to care for their children and afford school fees.

Together with fellow campaign members we rallied to ensure the passing of the Prevention and Prohibition of Human Sacrifice Bill, 2020 before dissolution of the 10th Parliament. This new law aims to curb rampant cases of human sacrifice in Uganda by addressing gaps in the existing legislation.

ACHIEVEMENTS AND PERFORMANCE

After five years of civil society campaigning, the Prevention and Prohibition of Human Sacrifice Bill, 2020 was finally passed by Ugandan Parliament on the 4th May 2021 and assented by the Prime Minister on the 14th July 2021.

Local workshops attracted an average of 70 people each session and CPTs handled extensive caseloads including 42 police referrals, 20 health referrals, 42 child labour cases, 65 domestic abuse cases, 52 child abuse cases and 24 missing children returned home safely.

Through this input into the community, Child Protection Teams saw a reduction in crime, domestic violence and sexual assualt cases. Teams reported an improvement in parenting, more harmonious marriages and increased engagement from parents in supporting their children’s learning.

Child Protection Teams were successful in encouraging many local children who had fallen into damaging life choices over lockdown, to go back to school when they reopened.

Slum areas have become cleaner, and as a result of negotiating with local landlords, in Masese I, 90% of the homes in the community now have latrines.

The new Child Protection Team in Mafubira dealt with a sexual assualt case less than two weeks from starting, seeing the perpetrator charged and sentenced. The team has become well established and built good relationships with local authorities.

Advocacy from the Child Rights Clubs has resulted in many parents and teachers changing their treatment of local children for the better, including many refraining from physical abuse and the practice of child labour.

As a result of their home learning through lockdown, all Early Childhood Development learners made good progress and 41 were able to transition to primary one level.

FUTURE PLANS

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CLUSTER LEARNING IN KYAKA II SETTLEMENT
UGANDA - KYAKA II
Escalation of conflict in the Democratic
Republic of Congo (DRC), has resulted in a - Provide them with child-friendly early learning
continuous refugee influx over the last four using the national ECD Framework, imparting
years and Uganda currently hosts more than critical numeracy, literacy and social skills that
1.4 million displaced people from neighbouring will help them in the future.
countries including the DRC.
- Support community structures to take
Across 30 communities in Kyaka II refugee ownership of the programme through the
development of Centre Management
settlement, parents have been trying their best
to provide early learning for their youngest Committees (CMCs).
children, but most of the buildings they use are
- Renovate 30 venues into bright, colourful
dilapidated and many teachers were untrained.
centres.
Thousands of 3-6 year olds have nowhere safe
to go during the day and are missing out on
- Train 180 local refugees to teach and gain
education and support at this crucial stage of
accredited qualifications.
their development.
- Generate additional, sustainable income for
PARTNERS
teachers through small business loans.
Children on the Edge Africa and LILE INAM ECD
Consultancy ACTIVITIES
OBJECTIVES
Provided 6,750 children with home learning
materials, support, and connection with early
- Ensure the healthy development and wellbeing
learning radio lessons five days a week.
of 5,000 young Congolese refugee children,
helping them to improve their mental and
Piloted new Cluster Learning Approach to
physical wellbeing, express themselves,
facilitate learning through lockdown and meet
process any trauma, play and enjoy being
the overwhelming longer term demand for
children.
early education in Kyaka II. This included:
- A short-term trial for 2,896 children in May,
identifying 90 Cluster points and recruiting 90
teachers.
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Partnered with Haileybury Youth Trust to complete six new Early Childhood Development centres (with four-stance Ventilated Improved Pit (VIP) latrines) and begin building of a further four. Work uses sustainable methods, training 24 new refugee building apprentices.

Face to face teacher training continued for 233 teachers on various certificate levels over the year, with exams supervised by Makerere University in February for 48 candidates.

30 Early Childhood Development centres re-opened their doors in January 2022 after over 18 months of lockdown, enrolling 5,539 children.

Continued to provide 28 small business loans for teachers to generate independent sustainable incomes.

ACHIEVEMENTS AND PERFORMANCE

Our Cluster Learning Approach model was selected as a winner in the 2021 Theirworld Education Innovation Awards and commended by the Senior Education Officer from UNHCR Kampala as a model for early refugee education in the area.

Six newly built centres were added to four built last year, nearing our goal of refurbishing and rebuilding 14 centres. Completed centres were handed over to communities in time for schools to be re-opened in January 2022 and the four remaining construction sites were near completion by the end of the financial year.

28 small business loans for teachers have enabled them to successfully create additional means of income, and repayment levels have been strong.

42 teachers graduated in their teaching certificates after passing their Makerere University exams, along with 24 refugee apprentices, a representative from the District Education Office commented, “ This is the first time in the entire district to have an ECD caregivers’ graduation and indeed Children on the Edge Africa is a game changer. The issue of using untrained teachers should be something of the past.”

FUTURE PLANS

Initial learnings from the pilot endline assessment showed a 6.2 % improvement in International Development and Early Learning Assessment (IDELA) test scores for children in Cluster groups, who had just 13 hour’s input over three months. The strongest impact was seen with 13.5% improvement in emergent literacy and 9.4% in social emotional domains.

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LEBANON
CELEBRATIONS IN LEBANON
Lebanon not only hosts an estimated 1.5 million ACTIVITIES
Syrian refugees, but political instability,
economic freefall, currency devaluation and the Supported quality education in a school in
effects of COVID-19 have forced four out of five Zahle for 169 Syrian refugee children. They are
citizens under the poverty line in the last year. taught by Syrian refugee teachers in their own
dialect, using a bespoke Syrian and Lebanese
In the midst of this, Syrian refugee children
curriculum. The school provides:
living in the informal settlements of Bekaa
Valley are the hardest hit, and continue to face
- Arabic, maths, science, history, geography and
barriers to education and support.
English, using Montessori techniques.
PARTNERS - Computer literacy and IT.
- Vocational classes in carpentry and sewing.
Triumphant Mercy Lebanon - New dance and football lessons this year.
- A new primary prep class for younger
OBJECTIVES children.
- Bridge the education gap for Syrian refugee Intermittent lockdowns persisted, with the
children and prepare them for the future by
longest school closure this year being from
ensuring quality education, with trained
March - May 2021, during which time the
teachers from their own community.
children were supported with lessons in the
- Enable refugee children to feel safe and secure camps, home learning materials and support.
despite the volatile situation, and begin to They also worked through most of the summer
recover from the trauma of war. holiday to catch up on their learning.
- Provide Syrian refugees with valuable teaching 13 Grade 9 students were supported to study
skills, ownership of education provision and an
for their high school certificates, and take a
income for their families.
challenging trip across the border to Syria to sit
their exams.
- Provide vocational training and IT skills to
resource children for a potential return to Syria.
Facilitated ‘Shine for Girls’ programme for 17
girls aged 12 -14 to develop their self esteem
14
and confidence.
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Opened IT and sewing classes up to the wider community to invest in the skills and wellbeing of parents.

Supported our partners to deliver fuel vouchers for over 500 families struggling through the worst snowstorm in a decade.

Grade 9 students took the initiative to launch a project to support their local communities by rebuilding tents and fixing clothes.

ACHIEVEMENTS AND PERFORMANCE

All 13 Grade 9 students passed their high school exams in Syria. With the average pass rate being 75% for schools, this was an amazing result for the group. The Zahle school was the only place in Lebanon to get a 100% success rate in these exams.

100% of children interviewed said how much they enjoy school, 70% saying that learning is the thing they love the most.

All the children also said they are ‘well liked’ in class. This number increased throughout the year and shows an improvement in confidence and self worth. All children also felt that what they were learning would help them in the future, including finding employment, achieving dreams, independence and confidence.

By September the fuel and power crisis began to impair the team’s ability to get the children to school and run the lessons. With great dedication they found solutions, creating their own store of fuel for buses and sourcing generators to keep the school running.

After an initial dip in the children’s confidence brought about by the disruption to routines through lockdown, interviews showed how confidence quickly improved as they re-engaged in class.

All Syrian refugee teachers reported that their role has had a significant impact on their lives, giving them confidence, purpose, pride, social status, respect, independence and an improved

FUTURE PLANS

“I use what I learn in my life. I can manage myself in a public place because I can read and understand numbers. If I get lost, I can read the signs to help me get home. Wherever I go I won’t get lost because I can read.” Hatem - Student in Zahle e learning centres. I am in sixth grade now and, with the help of the teacher, I am enrolled with the government school”.

Women from the sewing classes report how they have gone on to find tailoring work to support their families as a result of the skills developed.

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UKRAINE REFUGEE RESPONSE
At the very end of the financial year, on the 24th In Moldova we began by supporting three transit
February, the Russian military invaded Ukraine, centres for refugees, based in Tudora, Chișinău, and
shattering peace in Europe and bombarding a a larger hub further inland in Vatici. All three centres
democracy of 44 million people. In the following are linked up, with transport provided where
weeks over 10 million people have been displaced, necessary between them as refugees travel through
both internally and over the borders to neighbouring the country.
countries, including Romania and Moldova where
Children on the Edge worked closely with local In Romania, we set up a dedicated, flexible
partner organisations between 1990 to 2012. emergency fund so our partners could respond to
the needs of the most marginalised refugees as
Our relationships with our partner organisations in they emerge.
both these countries (Speranta Centre in Moldova
and Fundația COTE în Romania) remain strong to As the situation is changing on a daily basis, we will
this day and, thanks to the generous support of our continue to monitor the situation and how we can
donors, we were able to move quickly to help them support those refugees who need it most.
respond to the crisis on the ground.
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CENTRE FOR UKRAINIAN REFUGEES IN IASI, ROMANIA
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FINANCE

INCOME BREAKDOWN

EXPENDITURE SPLIT

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GRANTS & FEES
£465,068 (25%)
INDIVIDUAL & GIFTS IN KIND
PROJECTS
£618,735 (34%)
£1,638,629 (86%)
CORPORATES
FUNDRAISING
£710,332 (39%)
£259,029 (14%)
OTHER INC EVENTS
& MERCHANDISE
£34,486 (2%)
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TOTAL INCOME: £1,828,621

TOTAL EXPENDITURE: £1,897,658

Children on the Edge is in a strong position to serve the needs of the most marginalised and vulnerable children around the world despite the ongoing economic and political challenges that continue to impact the charity sector.

Additionally, some of the spike in income from one corporate funder during the first lockdown has returned to previously forecast levels.

EXPENDITURE

This is only possible because of the ongoing generosity of supporters, from one-off donors to those who give every month, businesses of all sizes, trusts and institutional funders as well as those who give their time.

Overall programme spending has remained consistent at £1,897,658 although as we managed the impact of the COVID pandemic in all locations, we saw fluctuations throughout the year.

We deeply appreciate every single one of you. Thank you.

INCOME

We managed to adapt and continue to run services during lockdowns in both the UK and on project locations as well as re-start full operations once restrictions were lifted.

Throughout the year. we have seen Income from a broad range of sources. This mix of Trust, Corporate and Individual donors remains a focal point of our strategy to ensure organisational health.

Where savings were made, we used surplus funds in areas that needed additional support.

Whilst overall income was down on the previous year, this was largely due to one significant donor moving their financial year which resulted in no income from them during PARENTS FORM SCHOOL MANAGEMENT COMMITTEES AND MEET TO the period. They remain a supporter and their DISCUSS THEIR CHILDREN’S EDUCATION IN KUTUPALONG, BANGLADESH planned income has since arrived.

17 23

FINANCE

RESTRICTED FUNDS

The restricted funds balance has reduced from £632,880 to £425,541 as planned. We currently hold restricted balances for our work in Bangladesh, Lebanon and Kachin State, Myanmar. The largest of these restrictions applies to our work with the Rohingya in Bangladesh (balance of £280,901) which is also our largest programme.

We do not foresee any problems in reducing these to zero over the coming years.

RESERVES POLICY

Reserves are required to ensure the continued smooth operation of the charity, to cope with any unexpected eventualities and to enable any one off expenditure that is deemed appropriate for the charity. The trustees have agreed that in addition to any designated funds the free reserve balance should ideally be no more than 25% of the coming year’s forecast expenditure. The current level of free reserves is 9% of the 2022-2023 forecast expenditure and therefore at an acceptable level.

FUND BALANCES AS OF 28/02/2022

Restricted Funds: £425,541 Designated Funds: £1,572,483 Free Reserves: £229,221 Total Funds: £2,227,245

The level of funds is planned to reduce over the coming years as we focus on programme growth and the peak of income from some sources during COVID returns to more normal levels.

Fund balances are discussed at every trustee meeting to ensure we strike the balance of meeting the needs of the situations we work in with maintaining a sustainable organisation.

DESIGNATED FUNDS

We continue to designate funds to programme locations and the UK office to maintain the sustainability of and commitment to programmes. The level of designation considers any restricted balance, the volatility of a situation and potential funding sources. Generally designations are between 3 and 9 months of the forecast annual expenditure.

At present, given the uncertainty of the economic and political situation, specifically, inflation, the cost of living crisis, the impact of the war in Ukraine as well as the challenges of living with COVID, the trustees have agreed to designate 9 months of UK and international expenditure..

INVESTMENT POLICY AND OBJECTIVES

In 2021-2022 the charity achieved an income of £1,628 from its deposit account interest. In general, any fund balances are kept in instant access accounts so that they are always available to be utilised should the need arise.

When balances allow, or where funds are restricted to specific projects, it may be necessary to hold them for longer periods of time. In these cases, the management and trustees of Children on the Edge may decide to invest a portion of these funds. When investing funds, risks will be considered and minimised in all circumstances. Typically funds are invested in fixed year bonds in banks protected under the Financial Services Compensation Scheme (FSCS). We will not invest in companies or funds that operate in the Tobacco, Armaments or Pornographic Industry and will always look to invest in socially responsible investments.

18

----- Start of picture text -----
FUNDRAISING
OUR APPROACH TO FUNDRAISING HOW WE PROTECT VULNERABLE PEOPLE
We are signed up to the Fundraising Preference
Our fundraising team works to raise funds in a
Service to enable individuals to opt out from
number of different ways; engaging individual
receiving fundraising communications from us.
donors, soliciting gifts from foundations and
We do not produce mass mailings with
trusts, a growing regular giving scheme,
donation asks, any fundraising campaigns are
strategic corporate partnerships as well as
led through email newsletters where there is a
community fundraising and challenge events.
clear process to opt out of future newsletters.
We do not engage the services of ‘professional
We are in the process of reviewing and
fundraising’ businesses; all our fundraising
publishing a vulnerable persons policy to guide
activity is delivered by our own fundraising
team. We do work with commercial our fundraising and communications teams
conduct with potentially vulnerable supporters.
participators; when doing so, conducting due
In 2022 we plan to launch a small raffle with
diligence and reviewing agreements annually.
our partners The Body Shop at Home, so we
We are registered with the Fundraising have extended our vulnerable person’s policies
Regulator and comply with all the relevant to include a Responsible Gambling Policy.
standards set out in the Code of Fundraising
Practice. All fundraising staff receive training
relating to the Code of Practice during
induction, and relevant implementation policies
(e.g. Finance policy, Fundraising Complaints
policy) are reviewed each year with the
fundraising team. Any areas of concern
regarding compliance are raised with the COO
and the trustees.
In the year 2021/2022 we received no
fundraising complaints.
19
----- End of picture text -----

FUNDRAISING

FUNDRAISING HIGHLIGHTS

Our fundraising year was strengthened with a mix of digital and online connection with supporters, as well as face to face happening again. A particular highlight from 2021 has been the launch of a partnership with Pennies and Montezuma’s allowing their customers to make small micro-donations with purchases.

With new roles in our fundraising team, we were able to trial and launch several new fundraising events, including the Big October Cake Bake as well as some virtual challenges; Jog 50 miles in June, Walk 100 miles in July and Squatober. More than 600 supporters took part in these new events in 2021, raising over £45,000.

We are grateful to so many grant makers and individuals who generously responded to the continuing COVID-19 crisis and donated to help us reopen schools safely towards the end of the year, as COVID restrictions were finally lifted across all our locations.

We ran our third matched giving campaign with the Big Give in December, investing in a new ‘cluster model’ to deliver community-based Early Years education for Congolese refugees in Uganda. With thanks to matching funders; the Charles Jacob Charitable Trust, Pacific Star Charitable Trust and the Coles-Medlock Foundation, we were able to connect with new donors, inspire 225 donations and raise an incredible £40,922 during the campaign.

Local support in Sussex, and connections through The Body Shop at Home led to more partnerships with schools; we are really grateful to students and staff at Hall Green Infants, Benson Community School, Prebendal School, Fishbourne Primary and Glebelands for their support.

We were delighted that this new cluster model also won Theirworld’s 2021 Education Innovation Award. The prize for Children on the Edge and four other winners, was a £50,000 grant, masterclasses and mentoring to help us scale up our cluster model to reach thousands more children.

www.childrenontheedge.org THE BODY SHOP AT HOME ™ CONFERENCE SHOW 20 Registered charity no. 1101441 THEIR SUPPORT FOR CHILDREN ON THE EDGE Tel: +44 (0) 1243 538530

SAFEGUARDING

Safeguarding is critical to the child-centered approach to our programmes and cannot be done in isolation; it is only truly effective when we work collaboratively with our programme partners to protect all those at risk of harm, abuse or neglect.

Despite the impact and challenges faced over the last twelve months by COVID-19 we are assured by our partners that there has been no disruption to safeguarding provision across the programmes we support.

There was a safeguarding allegation made against a member of staff in Africa. This was referred to the UNHCR Safeguarding team to do an independent investigation. The result was that the allegation was not upheld. In light of this, training for all COTE Africa staff has increased and all Codes of Conduct are being renewed.

SERIOUS INCIDENT REPORTS

During the year there were no serious incidents to report to the Charity Commission.

21

REFERENCE & ADMINISTRATIVE DETAILS

REGISTERED COMPANY NUMBER

4996130 (England and Wales)

REGISTERED CHARITY NUMBER

1101441

REGISTERED OFFICE

5 The Victoria, 25 St Pancras, Chichester, West Sussex, PO19 7LT

CHIEF EXECUTIVE

Rachel Bentley

COMPANY SECRETARY

Ben Wilkes

TRUSTEES

Mr Stuart Gallimore - Chair Mrs Helen Pattinson Mr Paul Suter Ms Sarah Wickens Mr William (Walter) Jones

AUDITORS

Scott Vevers Ltd, 65 East Street, Bridport, Dorset DT6 3LB

BANKERS

CAF Bank, PO Box 289, Kings Hill, West Malling, Kent ME19 4TA Barclays Bank, 74/75 East Street, Chichester, West Sussex, PO19 1HR

22

STRUCTURE, GOVERNANCE & MANAGEMENT

Children on the Edge is a charitable company limited by guarantee, incorporated on 16 December 2003, company registration No. 4996130, Charity Registration No. 1101441. The company was established under the Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.

The trustees who are also directors of the Charity for the purposes of the Companies Act, have prepared their report and the audited financial statements of the charity for the year ended 28th February 2022 to meet all statutory requirements, including the requirements for a directors’ report and accounts for Companies Act purposes.

They have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the trust’s aims and objectives and in planning future activities.

RECRUITMENT AND APPOINTMENT OF NEW TRUSTEES

The Memorandum and Articles of Association allow for no less than three trustees to be appointed. Trustees all serve for a period of three years at which point the Articles of Association require them to resign as a trustee and seek re-election if they wish to continue to act. New trustees are nominated by members of the board of trustees, interviewed and appointed where they are found to have the necessary skills to contribute to the charity's management and development. Induction and training of new trustees:

When new trustees are appointed they are given an introduction to the work of the charity and provided with an information pack. This includes information about the role of trustees and charity law.

ORGANISATIONAL STRUCTURE

Each trustee takes responsibility for monitoring the charity's activities, and where appropriate the trustees form sub committees for specific operational areas. The main sub committee is the finance and governance committee, which meets at least twice a year.

This committee reports action points to Board meetings, which are also held at least twice a year. The charity's Chief Executive is responsible for the day-to-day operation of the charity and manages the staff of the charity on behalf of the trustees.

23

STRUCTURE, GOVERNANCE & MANAGEMENT

WIDER NETWORK

RISK MANAGEMENT

The charity's head office is in Chichester, with an overseas office in Thailand. The charity has a number of principal partner organisations with whom it cooperates to deliver its programmes. These organisations are laid out in the Programmes section of this document.

The trustees actively review the major risks that the charity faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions.

PAY POLICY FOR SENIOR STAFF

The Board of Directors, who are the charity’s trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the organisation on a day to day basis. All trustees give their time freely and no director received remuneration in the year.

The trustees have also examined other operational and business risks that the charity faces and confirmed the establishment of systems to mitigate these, should they occur.

With international operations, travel and civil unrest in project locations present the most likely risk with policies and insurance, so we have regular checks to mitigate these.

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charity, the directors benchmark against pay levels in other charities of a similar size. The remuneration bench-mark is the mid-point of the range paid for similar roles. If recruitment has proven difficult in the recent past, a market addition is also paid with the pay maximum no greater than the highest benchmarked salary for a comparable role.

The risk of the impact of the departure of key staff is mitigated through creating a strong working culture and environment as well as succession planning and engaging all staff in the vision, strategy and plans.

Our budget and regularly reviewed fundraising plans, as well as reserves ensure we have adequate funding. Strict policies and controls help reduce the risk of any financial fraud or mismanagement in project locations.

24

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with the United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of the surplus or deficit of the charitable company for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006.

They are also responsible for safeguarding the assets of the charitable company and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the trustees are aware, there is no relevant information of which the charitable company's auditors are unaware. Each trustee has taken all the steps that they ought to have taken as a trustee, in order to make them aware of any audit information and to establish that the charitable company's auditors are aware of that information.

AUDITORS

The auditors, Scott Vevers will be proposed for re-appointment in accordance with Section 487 of the Companies Act 2006.

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

On behalf of the board:

Stuart Gallimore, Chair of Trustees Date: 23 June 2022

25

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF CHILDREN ON THE EDGE

Opinion

We have audited the financial statements of Children On The Edge for the year ended 28[th] February 2022 set out on pages 30 to 41. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Basis for opinion

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

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

26

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF CHILDREN ON THE EDGE

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 25, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the fnancial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

27 28

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF CHILDREN ON THE EDGE

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of

non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

28

28

INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF CHILDREN ON THE EDGE

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Scott Vevers Ltd Chartered Accountants & Statutory Auditors 65 East Street Bridport Dorset DT6 3LB

Date: 7 JULY 2021

Scott Vevers Ltd is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

29

28

Children on the Edge Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 28 February 2022

Notes
INCOME AND ENDOWMENTS FROM:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investments: deposit account interest
Other income
5
Total income
EXPENDITURE ON:
Raising funds
Cost of generating voluntary income
6
Charitable activities
Provision of services to vulnerable children
7
Total expenditure
Net income
Gross transfers between funds
14
Net movement in funds for the year
Total funds:
Brought forward
Carried forward		 Unrestricted
funds
£
891,881
22,800
2,982
1,628
29,876
949,167
259,029
551,836
810,865
138,302
-
138,302
1,663,402
1,801,704		 Restricted
funds
£
437,186
442,268
-
-
-
879,454
-
1,086,793
1,086,793
(207,339)
-
(207,339)
632,880
425,541		 2022
Total
funds
£
1,329,067
465,068
2,982
1,628
29,876
1,828,621
259,029
1,638,629
1,897,658
(69,037)
-
(69,037)
2,296,282
2,227,245		 2021
Total
funds
£
1,635,845
731,159
7,877
2,269
(23,625)
2,353,525
199,280
1,696,671
1,895,951
457,574
-
457,574
1,838,708
2,296,282

The notes on pages 33 to 41 form an integral part of these financial statements.

30

Children on the Edge

Balance Sheet as at 28 February 2022

Company Registration No. 4996130

Note
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors:
Amounts falling due within one year
13
Net current assets
Net assets
Funds
Restricted funds
14
Unrestricted funds
14
Total funds		 £
£
-
16,529
2,239,705
2,256,234
(28,989)
2,227,245
2,227,245
425,541
1,801,704
2,227,245
2022		 £
£
3,385
36,684
2,276,943
2,313,627
(20,730)
2,292,897
2,296,282
632,880
1,663,402
2,296,282
2021		 £
£
3,385
36,684
2,276,943
2,313,627
(20,730)
2,292,897
2,296,282
632,880
1,663,402
2,296,282
2021
2,296,282
632,880
1,663,402
2,296,282

These financial statements have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and preparation of accounts.

Whilst the company was entitled to exemption from audit under s477 of the Companies Act 2006 relating to small companies and the members have not required the company to obtain an audit under section 476 of the Act, the company is subject to audit under the Charities Act 2011.

The financial statements were approved by the Board of Trustees on 23rd June 2022 and signed on its behalf by:

.........................................

Mr S Gallimore - Trustee

The notes on pages 33 to 41 form an integral part of these financial statements.

31

Children on the Edge Statement of Cash Flows as at 28 February 2022

Note
£
£
Net cash flow from operating activities
16
(38,866)
Cash flow from investing activities
Payments to acquire tangible fixed assets
-
Interest received
1,628
Net cash flow from investing activities
1,628
Net (decrease) / increase in cash and cash equivalents
(37,238)
Cash and cash equivalents at 1 March 2021
2,276,943
Cash and cash equivalents at 28 February 2022
2,239,705
2022		 £
£
455,821
-
2,269
2,269
458,090
1,818,853
2,276,943
2021		 £
£
455,821
-
2,269
2,269
458,090
1,818,853
2,276,943
2021
458,090
1,818,853
2,276,943

The notes on pages 33 to 41 form an integral part of these financial statements.

32

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2022

1 General information

Children On The Edge is a company, limited by guarantee, incorporated in England and Wales under the Companies Act 2006 and Charities Act 2011. The address of the registered office is provided in Reference and administrative details. Details of the charity’s operations are provided in the Report of the Trustees.

Accounting policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared on a going concern basis under the historical cost convention and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), (Charities SORP (FRS 102)), the Companies Act 2006 and the Charities Act 2011.

Incoming resources

All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. Donated assets and services are included at the value of essential expenditure that has been saved as a result of that gift.

Classification of expenditure

Expenditure is recognised when a liability is incurred. Funding provided through contractual agreements and performance related grants are recognised as goods or services as supplied. Other grant payments are recognised when a constructive obligation arises that results in the payment being unavoidable. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources. Costs of raising funds are those costs incurred in attracting voluntary income. Governance costs include those incurred in the governance of its assets and are primarily associated with constitutional and statutory requirements.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Assets costing less than £1000 are written off in the year of purchase. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life as follows: Plant and machinery - 33% on cost.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Foreign currencies

Profit and loss account transactions in foreign currencies are translated into Sterling at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into Sterling at the closing rates at the balance sheet date and the exchange differences are included in the profit and loss account.

Operating leases

Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Pensions

The charity operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.

Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

33

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2022

2 Donations and legacies

Gifts from individuals
Corporate fundraising activity
Gifts and services in kind		 2022
£
613,235
710,332
5,500
1,329,067		 2021
£
702,811
932,722
312
1,635,845

Voluntary income includes monies raised through business activity from our corporate partners where a donation or an advertised amount from the sale of certain goods is donated to the charity.

Gifts and services in kind represent good and services donated by supporters.

3 Income from charitable activities

Activity
Grants
Provision of services to vulnerable children
Volunteer fees
Provision of services to vulnerable children
Other trading activities
Fundraising events
Sale of merchandise		 2022
£
465,068
-
465,068
2022
£
1,156
1,826
2,982		 2021
£
731,659
(500)
731,159
2021
£
7,396
481
7,877

4 Other trading activities

5 Other income

Employers relief
Impact of Covid
Foreign currency gains / (losses)		 2022
£
4,000
826
25,050
29,876		 2021
£
4,000
4,727
(32,352)
(23,625)

6 Costs of raising funds

Fundraising costs
Staff costs
Support costs		 2022
£
34,226
212,822
11,981
259,029		 2021
£
30,194
157,027
12,059
199,280

34

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2022

7 Charitable activities costs

Provision of services to vulnerable children
Direct costs
Grant funded activities (see below)
Staff costs (including travel)
Support costs
Governance costs
The functional split of support costs is as follows:
Communications
Staff costs
Accommodation costs
Office costs
Insurance
Accountancy
Depreciation and profit on sale of tangible fixed assets
Apportioned to fundraising and governance costs
The functional split of governance costs is as follows:
Staff costs
Support costs
Legal costs
Auditor’s remuneration		 2022
£
513,603
725,306
243,742
137,415
18,563
1,638,629
£
8,658
74,072
28,291
18,833
2,057
18,094
3,385
(15,975)
137,415
£
7,222
3,994
1,149
6,198
18,563		 2021
£
334,648
998,084
240,417
106,524
16,998
1,696,671
£
3,395
53,606
26,562
14,273
1,755
17,617
5,395
(16,079)
106,524
£
6,936
4,020
114
5,928
16,998

8 Grants payable

The grants payable to organisations working with vulnerable children during the year were as follows:

Mukti (Bangladesh)
Kachin Development Group (Burma)
Parivartan Kendra (India)
Navjeevan Educational and Social Welfare Society (India)
Tatvasi Samaj Nyas (India)
Miscellaneous grants (Lebanon)
Miscellaneous grants (Thailand)
Triumphant Mercy (Lebanon)
Resources expended
Operating profit is stated after charging:
Other operating leases
The audit of the company's annual accounts
Depreciation of owned assets		 2022
£
462,868
39,278
6,733
96,816
-
2,000
1,194
116,417
725,306
2022
£
17,900
6,198
3,385		 2021
£
627,020
39,083
15,687
108,540
9,469
-
12,297
185,988
998,084
2021
£
17,900
5,928
5,396

9 Resources expended

35

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2022

10 Staff costs

No remuneration or expenses were paid to trustees during the year. The costs of the remaining staff were:

Wages and salaries
Social security costs
Pension costs
Overseas staff costs
Grant funded overseas staff costs		 2022
£
355,257
33,919
47,932
84,744
67,763
589,615		 2021
£
301,923
28,488
35,843
71,783
62,982
501,019

No employee earned more than £60,000 during the year.

The average monthly number of staff employed by the charity during the year was as follows:

Projects
Fundraising and publicity
Support
Governance
Overseas
The average number of staff employed in UK (Headcount)
11
Tangible fixed assets
Cost
As at 1 March 2021
Disposals
As at 28 February 2022
Depreciation
As at 1 March 2021
Charge for the year
Eliminated on disposals
As at 28 February 2022
Net book value
As at 28 February 2022
As at 28 February 2021
12
Debtors
Other debtors
13
Creditors: Amounts falling due within one year
Trade creditors
Social security and other taxes
Other creditors and accruals		 £
20,646
(7,268)
13,378
19,844
802
(7,268)
13,378
-
802
Plant &
machinery		 2022
No.
3.23
5.66
1.66
0.10
16.50
27.15
13.00
Motor
vehicles
£
11,232
-
11,232
8,649
2,583
-
11,232
-
2,583
2022
£
16,529
2022
3,504
10,800
14,685
28,989		 2021
No.
3.15
4.48
1.37
0.10
14.90
24.00
11.20
Total
£
31,878
(7,268)
24,610
28,493
3,385
(7,268)
24,610
-
3,385
2021
£
36,684
2021
2,180
5,454
13,096
20,730

36

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2022

14 Movement in funds

Restricted funds
India
Lebanon
Bangladesh
Burma borders (including Kachin state)
Unrestricted funds
Designated funds
Lebanon
Uganda
Bangladesh
Burma
India
Ukraine
UK based costs
General fund
Total unrestricted funds
Total funds
2021
Restricted funds
India
Lebanon
Bangladesh
Burma borders (including Kachin state)
Unrestricted funds
Designated funds
Uganda
Bangladesh
Burma
India
UK based costs
General fund
Total unrestricted funds
Total funds		 At 01.03.21
£
20,961
200,620
361,206
50,093
632,880
-
668,428
192,804
8,706
218,793
-
466,275
1,555,006
108,396
1,663,402
2,296,282
£
-
219,657
653,912
41,328
914,897
244,687
11,363
-
106,849
206,640
569,539
354,272
923,811
1,838,708		 £
(20,961)
(118,034)
(80,305)
11,961
(207,339)
-
-
-
-
-
-
-
-
138,302
138,302
(69,037)
£
20,961
(19,037)
(292,706)
8,765
(282,017)
-
-
-
-
-
-
739,591
739,591
457,574
Net
movement in
funds		 £
-
-
-
-
-
-
(268,157)
50,200
(8,706)
(68,976)
200,000
113,116
17,477
(17,477)
-
-
£
-
-
-
-
-
423,741
181,441
8,706
111,944
259,635
985,467
(985,467)
-
-
Transfers
between
funds		 At 28.02.22
£
-
82,586
280,901
62,054
425,541
-
400,271
243,004
-
149,817
200,000
579,391
1,572,483
229,221
1,801,704
2,227,245
£
20,961
200,620
361,206
50,093
632,880
668,428
192,804
8,706
218,793
466,275
1,555,006
108,396
1,663,402
2,296,282

37

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2022

14 Movement in funds (continued)

Net movement in funds, included in the above are as follows:

Restricted funds
India
Lebanon
Uganda
Bangladesh
Burma borders (including Kachin state)
Unrestricted fund
General fund
2021
Restricted funds
India
Lebanon
Uganda
Bangladesh
Burma borders (including Kachin state)
Unrestricted fund
General fund		 £
106,585
9,907
241,943
455,200
65,819
879,454
949,167
1,828,621
£
186,506
155,680
269,957
477,940
75,148
1,165,231
1,188,294
2,353,525
Incoming
resources		 £
127,546
127,941
241,943
535,505
53,858
1,086,793
810,865
1,897,658
£
165,545
174,717
269,957
770,646
66,383
1,447,248
448,703
1,895,951
Resources
expended		 Movement
in funds
£
(20,961)
(118,034)
-
(80,305)
11,961
(207,339)
138,302
(69,037)
£
20,961
(19,037)
-
(292,706)
8,765
(282,017)
739,591
457,574

Where money is given for a specific geographic area or project, a separate fund is created and expenditure incurred in the area allocated against the income. An allocation of support costs is made where there are sufficient fund balances.

Funds are designated by the trustees in particular areas to maintain the sustainability and commitment to programmes as detailed in the Trustees' Report.

38

Children on the Edge

Notes to the Financial Statements for the year ended 28 February 2022

15 Analysis of fund balances between net assets

Fixed assets
Current assets
Creditors
Total funds
2021
Fixed assets
Current assets
Creditors
Total funds		 Restricted
funds
£
-
425,541
-
425,541
£
-
632,880
-
632,880		 Designated
funds
£
-
1,572,483
-
1,572,483
£
-
1,555,006
-
1,555,006		 funds
£
-
258,210
(28,989)
229,221
£
3,385
125,741
(20,730)
108,396
Unrestricted		 Total
£
-
2,256,234
(28,989)
2,227,245
£
3,385
2,313,627
(20,730)
2,296,282

16 Reconciliation of net income / (expenditure) to net cash flow from operating activities

Reconciliation of net income / (expenditure) to net cash flow from operating activities
Net (loss) / income for the year
Interest receivable
Depreciation and impairment of tangible fixed assets
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash flow from operating activities		 2022
£
(69,037)
(1,628)
3,385
20,155
8,259
(38,866)		 2021
£
457,574
(2,269)
5,396
(485)
(4,395)
455,821

17 Gross obligations under operating leasing agreements

As at 28 February 2022 the charity had future minimum lease commitments as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2022
£
17,880
28,310
46,190		 2021
£
17,900
46,242
64,142

18 Related party transactions

Donations totalling £2,961 were made to the charity by three trustees during the year.

39