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2023-02-28-accounts

SPARKS FLY

REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR CHILDREN ON THE EDGE FOR THE YEAR ENDING 28 FEBRUARY 2023

CONTENTS
1.
OVERVIEW
Sparks Fly
2.
OUR PROGRAMMES
Objectives
Refugee Crisis
War Zones
Slums
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
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15
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19
20
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23
27
28
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SPARKS FLY

Children on the Edge envisions a world in which every child thrives regardless of their geography, ethnicity, gender, or caste.

Sparked into life by the late Dame Anita Roddick in 1990, the children on the edge we served at the start were those incarcerated and forgotten in Romanian orphanages.

Today, the “edge” takes us into refugee camps, warzones and slums, where we support children fleeing conflict, facing internal displacement, and living with caste discrimination, poverty, and exploitation.

The spark that began us is still in motion to this day. It comes from a disruptive dedication to seeking out those who are truly on the edge of our societies, and supporting them to thrive.

This year, we reached more children than ever before, and saw three of our models of education and child protection scaled and replicated to new places.

Sparks are flying. They are activating potential for transformation in new areas and enabling over 22,000 children to learn, play, grow and thrive.

This can only happen with the generosity of our faithful community of supporters. Whether inspired by our original spark, or the catalysts for change we see today, we deeply appreciate you standing with us, and standing with those children who are most on the edge.

Rachel Bentley OBE Founder and CEO

Stuart Gallimore Chair of Trustees

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OBJECTIVES

Children living in conflict, fleeing war, or facing caste discrimination and poverty are cut off from the education and protection that every child deserves.

We work together with local communities, to create conditions in which every marginalised child can flourish and thrive no matter where they live and irrespective of the challenging circumstances they face.

In the past year, our objectives have focused on the creation of protective and nurturing environments within refugee crises, areas of conflict and slum communities.

Through these we seek to:

ENSURE ACCESS TO QUALITY PRIMARY AND EARLY YEARS EDUCATION

STRENGTHEN CHILD PROTECTION AT COMMUNITY AND FAMILY LEVEL

SUPPORT CHILDREN TO PLAY, CREATE, EXPRESS THEMSELVES AND JUST BE CHILDREN

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REFUGEE CRISES

Children on the Edge is working in the world’s largest refugee camp in Bangladesh, the fastest growing refugee crisis in Uganda, and the largest refugee crisis, supporting Syrian children in Lebanon. This year we also rapidly responded to the largest refugee crisis in Europe since World War II, supporting Ukrainian families fleeing to border countries.

Each refugee situation is different, and requires a bespoke approach. Working with over 19,000 refugee children this year, we focused on ensuring the highest quality provision for the most marginalised children, always working hand in hand with local communities.

ACTIVITIES:

Over a million stateless Rohingya refugees are trapped in the Kutupalong - Balukhali refugee camp in Bangladesh, with thousands relocated to Bhasan Char island in the Bay of Bengal. This year we provided high quality primary education, in safe, colourful classrooms, with trained teachers, for over 7,580 Rohingya refugee children who were otherwise cut off from meaningful learning. This included our award winning digital education programme, which tackled language barriers by providing daily video lessons, and through the Moja Kids programme (mojakids.net), enabled children to connect with their peers beyond the confines of the camps.

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REFUGEE CRISES

Conflict in the Democratic Republic of Congo (DRC) has resulted in a continuous refugee influx to Uganda, which currently hosts more than 1.4 million displaced people. In the Kyaka II refugee settlement, thousands of Congolese 3-6 year olds are missing out on education at the most crucial stage of their development. This year, through teacher training, centre construction and the scaling up of our Cluster Learning Model we have ensured that 10,490 children received quality, sustainable Early Childhood Education (ECE) to foster their physical, mental, social, emotional, and moral development.

As Lebanon endures its worst socio economic crisis in decades, the country continues to face the burden of hosting over 1.5 million Syrian refugees. 90% are living in poverty, and their children are facing numerous barriers to accessing education.

The highest concentration is found in the Bekaa Valley where we supported a school for 175 children to receive quality academic and vocational education from trained refugee teachers, along with sports and computer lessons.

On the 24th February 2022, Russia launched an all-out invasion of Ukraine by land, air and sea, causing over 8 million people to leave the

country. Children on the Edge responded rapidly, working with local partners in Romania and Moldova, and quickly adapting to provide shelter, food, safety and a community hub for some of the most marginalised refugee families crossing the border, as well as children without parental care.

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REFUGEE CRISES

PERFORMANCE AND ACHIEVEMENT:

BANGLADESH: Digital education has rapidly improved learning progress and attendance in the camp, with the Moja Kids programme boosting confidence, and fast becoming the children’s favourite part of school. We were invited by the Bangladesh government to be the first education providers on Bhasan Char island, establishing 10 model classrooms.

“ You are making the future of our children bright and well-equipped. We are very happy to have skilled teachers to deliver better education, and that they teach in a different manner to other institutions, via the video projectors. We are very happy to see this because we had not seen anywhere before what our children are learning now. ” Rohingya parent, Kutupalong camp

11 year old Jahan Tara and her family fled to Bangladesh in 2017 after the Myanmar military attacked their village and burnt down their home.

She loves attending her learning centre and is never late to class, but used to struggle to learn as textbooks provided in the camp are in a language she does not understand. She says, " We don't like books much as they are difficult and time consuming to understand, but we can easily learn things through the videos and remember the visuals. We like the videos more than books !"

100% of her classmates we interviewed agreed, and told us the video lessons are their favourite thing about school. Jahan Tara has already taken part in Moja Kids, where she told her story and shared her thoughts for thousands of children both inside the camp, in wider Bangladesh, and now even in India, which was one of the most exciting developments for the children this year.

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REFUGEE CRISES

PERFORMANCE AND ACHIEVEMENT:

UGANDA: Through scaling and adapting our Cluster Learning Model we expanded our reach across half of the 81.5km[2] settlement, growing from 736 cluster group children to 3,378. We have seen significant progress in the children’s social, emotional and academic development. The community have started to own the programme which will ensure its sustainability.

“ What has made this programme a success is the effort by both caregivers and parents. Children on the Edge Africa told us right from the beginning that if there is no such cooperation, the programme will never succeed. This Cluster Learning Programme gives your children the desire to participate in education even after Children on the Edge Africa leaves. We parents shall continue taking our children because we realise how well they perform .” - Congolese refugee parent, Kyaka II

LEBANON: The school we support for Syrian refugee children in Zahle has seen great progress in spite of the mounting challenges in the country. We have not only seen a 90% pass rate in general exams, but 14 Grade nine students crossing the border to take and pass their Syrian high school exams. There has also been a notable increase in children’s confidence, with 100% interviewed saying they share their learning outside school and feel they can now have a better life.

“My learning at school will make my professional life easier because I know I will be self-reliant in reading and calculation s” Zinedine, age 13

ROMANIA & MOLDOVA: Due to long established relationships in the area, we were able to quickly adapt our response to meet the needs of the most marginalised. In Romania, the provision of supply parcels each fortnight has become a lifeline for Ukrainian refugee families now that other agencies have moved on, whilst 43 Ukrainian orphaned children at the residential centre we support, have grown in their sense of security and begin to recover from

trauma. A newly established Community Hub had 500 people attending in the first month, with people growing in confidence and connection through a huge variety of activities including online school, family sessions and language lessons.

“ The centre is the most popular place to go. People book into the sessions months in advance because they are always over subscribed. This tells me they are doing something right!”

Iryna Gorbachova, Ukrainian refugee

FUTURE PLANS:

With little prospect of safe repatriation or access to full support from host countries, the refugee children we support will continue to be among the most marginalised children in the world in the coming year. Building on our current progress, our future plans include the following:

In Bangladesh - doubling the number of classrooms on Bhasan Char island to meet growing educational needs, whilst reducing classrooms in Kutupalong to focus our efforts on honing our digital curriculum. We will also be actively engaging other international partners with the Moja Kids programme and finding fresh opportunities for children to express themselves through art and creativity.

In Uganda - completing our codification process of the Cluster Learning Model and perfecting our child assessment tools for potential further replication beyond the camp.

In Lebanon - supporting our local partners to continue to provide quality education, whilst navigating the increasingly bleak situation in their own country. This will include equipping them with resources to expand and diversify their own fundraising, monitoring and evaluation.

In Romania and Moldova - standing with Ukrainian refugee communities as the media spotlight moves on from the crisis, leaving them with little support. Our input will continue to focus on providing essential shelter and food, building a strong community hub and ensuring most vulnerable children have safety and security.

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REFUGEE CRISES

“Since I was a child my dream has been to serve in my community and being a teacher has helped me do that.

The Cluster Learning Programme encourages unity in our community and brings parents together to discuss issues concerning their children. It has also provided job opportunities for people like me, helping me to care for my family.

Early years education for the youngest refugee children is important as it helps them improve their social skills skills and thinking capacity. I have seen a big change in the children since the programme started. These children were shy and would hide if a visitor came, but their confidence has grown enormously.”

Tushemerirwe Angelica Cluster Learning Teacher

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WAR ZONES

Conflict affected areas are among the worst places to be a child. Children face daily fear and insecurity coupled with higher levels of poverty and barriers to humanitarian support. Armed conflict and violence weakens the protective environment that keeps children safe and enables them to thrive.

This year, Children on the Edge has worked with local communities and dynamic partners to support some of the hardest to reach children, ensuring they have access to education, care and opportunities just to be children, despite the harsh realities they live through each day.

ACTIVITIES:

In Kachin State, Myanmar, hundreds of thousands of Kachin people have been displaced by a brutal civil war that has persisted for many years, taking refuge in extremely remote camps, high in the mountains along the China border.

Children on the Edge resourced local communities to ensure vital early learning opportunities for 484 displaced pre-primary children here, providing warm clothes, nutritional support and training.

In Afghanistan, despite promises for a softer stance on women’s issues, the Taliban reneged on a promise to reopen high schools in March 2022, then indefinitely banned women from universities in December 2022. Children on the Edge has been supporting a dynamic teacher from Afghanistan, based in the UK, to provide an online school, not only for thousands of girls who are cut off from their education, but for boys who are negatively influenced by misogyny in the Taliban curriculum.

In Syria, the decade-long civil war has resulted in the complete devastation of homes, communities and infrastructure, including the severe deterioration of the school system. Near Damascus, our partners have provided support through safe spaces that ensure high quality, holistic, supplementary education for over 520 children.

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WAR ZONES

PERFORMANCE AND ACHIEVEMENT:

MYANMAR - Despite the increasing challenge of working in an active war zone and accessing the remote mountain camps, we have been able to increase our provision of humanitarian support, and maintain 15 pre-school centres, which has been possible through strengthening community ownership. As a result we are seeing a significant improvement in children’s learning and development as they recover from trauma and interact with their peers.

“My child is being clever! We parents couldn’t help our children to be perfect, but having an ECD centre in our camp allows the children to develop in a holistic way. Children have learnt everything through playing, friendship and conversation in the centre.” - Hpaula Hkawn Ja, parent

AFGHANISTAN - Over 3,000 girls have been able to access online school and enjoy a wealth of subjects with many describing how the opportunity has saved them from despair since being excluded from their education.

“This school brightens our darkest days. It brings hope, knowledge and a deep and wonderful message; ‘the pen instead of the gun!’ It just takes one step and thousands of people come together from different parts of the world to help Afghan girls to educate; without any budget but with lots of love and kindness. Thanks everyone for being with us.You will save a dream builder generation from a tyrant government.” - Fatema, online student in Afghanistan

SYRIA - The reputation of the centre has grown steadily in the community, and through expanding work into women’s support and grade nine education, they have seen improvement in attitudes to parenting and education, and excellent progress for the older students.

“ The school really is a lighthouse in the middle of darkness; it brings light, life and hope in the heaviness surrounding the city ” - Programme Manager (name undisclosed for security)

FUTURE PLANS:

In the coming year, the war in Kachin State shows no sign of abating and the beleaguered Kachin people remain largely unnoticed by the international community. Afghanistan and Syria also remain in the top ten most dangerous countries for children living in conflict. Children on the Edge will be working to continue our support in these areas, including the following:

In Myanmar the fate of displaced people in Kachin State remains unclear, but we will be continuing our support as they face the daily struggle for survival. If resources become available, we are ready to expand our programme to new remote camps where young children have no access to early years education. We will also be investigating opportunities to help other people groups struggling and trapped within Myanmar.

For online students in Afghanistan, we will work alongside the visionary of the school to provide operational and mentoring support and help shape and structure this new and growing initiative, along with strategic and programmatic advice.

In Syria the area where the centre is located is still subject to air raids, along with ongoing economic freefall, food, power and fuel shortages. We will continue to support our partners over the border to strengthen this programme, which is a lifeline for so many.

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SLUM COMMUNITIES

Children on the Edge works with slum communities in Uganda, Bangladesh and India, where thousands of children live in unsafe environments, facing extreme poverty and exploitation. They are often denied their rights and struggle to access basic education.

In these places, we work together with families, teachers and the local community to create protective environments, where children can safely live, play, learn, and grow.

ACTIVITIES

In India, deep rooted caste discrimination against the ‘untouchable’ Dalit minority causes children to be ostracised from education and denied their rights. This year in the urban and rural slums of Patna, we supported a rights-based learning programme for 773 children, opening nine new learning centres in some of the most marginalised Dalit communities and replicating our successful

digital education programme from Bangladesh to ensure meaningful, fun learning. We also trained and resourced 1,091 women to strengthen protective environments for their children.

In Uganda, children in the slums of Jinja and the remote rural communities of Karamoja face maltreatment, neglect, exploitation, trafficking and even starvation and child sacrifice. We supported Child Protection Teams to work with the community to create safer environments, in six slum areas in Jinja, along with three Child Rights Clubs and two Early Childhood Education centres for the most marginalised children. After seeing 10 years of transformation through our Child Protection Team model, we replicated it eight hours north in Karamoja, building local relationships and establishing six new teams.

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SLUM COMMUNITIES

In Bangladesh, children in the slums of Cox’s Bazar and Rohingya refugee children in the Doharazi enclaves face financial and practical challenges in attending school, and often have to work to support their families. This year we supported 1,700 of these children to access primary education with the official curriculum, in bright classrooms surrounded by green play spaces. These children are also part of our digital education and Moja Kids programme.

PERFORMANCE AND ACHIEVEMENT

INDIA: Exams reflected that children made good progress in their learning, with five passing their Grade 10 through the facilitation of a national open schooling programme and 467 transitioning to mainstream school. An alumni group reflected the breadth of students going on to higher education as a result of their foundation in the programme.

UGANDA: Child Protection Teams and Child Rights Clubs in Jinja have enabled transformation in their communities changing the lives of hundreds of children. We have seen improvements in livelihoods, hygiene, health, safety and a reduction in crime. 150 preschool students showed strong progress in reading and writing, learning how to keep clean, active and healthy for their growth and development and how to relate well with others.

Replicating the Child Protection Model to Karamoja was a huge achievement, now impacting 39 villages in the Napak district, where communities are showing increased awareness on the issue of child marriage and trafficking, making their communities safer for children and providing better hygiene. This has resulted in the construction of 92 latrines.

BANGLADESH: We had a 100% pass rate in the final tests, meaning all the children can progress to the next grade. Digital lessons continue to increase attendance, engagement and comprehension and we had very positive feedback from parents, children, teachers and a government visit alike.

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SLUM COMMUNITIES

FUTURE PLANS:

In India we will develop the new centres in Musahar areas and strengthen the new digital programme, creating a green screen studio for children to make Moja Kids videos to send to Bangladesh. We will also begin the construction of a new office and community hub for the programme and work to strengthen our monitoring, evaluation and learning systems.

In Bangladesh, we will continue to deliver high quality learning in both the Cox’s Bazar slums and the Doharazi enclaves, further strengthening the digital programme and community engagement.

In Uganda we will continue to support our established Child Protection Team programme in Jinja, and continue to build the newly established child protection network in Karamoja, focusing on Lopoko sub county.

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FINANCE

INCOME BREAKDOWN

EXPENDITURE SPLIT

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GRANTS
£1,161,477 (42%)
INDIVIDUAL & GIFTS IN KIND
PROJECTS
£715,600 (26%)
£2,495,124 (89%)
CORPORATES
FUNDRAISING
£786,607 (29%)
£296,644 (11%)
OTHER INC INVESTMENTS
AND CURRENCY GAINS
£76,241 (3%)
TOTAL INCOME: £2,739,925 TOTAL EXPENDITURE: £2,791,768
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SUMMARY

INCOME

2022-2023 saw record income and expenditure levels for Children on the Edge. By raising and spending more than any other year we were able to help more children than ever before.

We end the year in a strong position to serve the needs of the most marginalised and vulnerable children around the world. 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.

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

Income has grown across the board, although grants have seen the biggest increase. The response to the Russian invasion of Ukraine can be attributed to some of this growth although it is important to note the increase in support for all areas of work.

Foreign exchange rate changes saw currency gains of £67,246 as we hold USD ($) and GBP (£) accounts.

EXPENDITURE

Programme spending has risen, again due to the response to the war in Ukraine with programmes supporting refugees in Romania and Moldova. Additionally, spending in Uganda has significantly increased as we have expanded our work in the Kyaka II refugee camp.

Work with refugees and internally displaced people (IDPs) currently accounts for 86% of our grants to implementing partners.

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23

FINANCE

RESTRICTED FUNDS

DESIGNATED FUNDS

The restricted funds balance has reduced slightly from £425,541 to £418,063 and would have reduced further had the Ukraine refugee response not occurred. We currently hold restricted balances for our work in Bangladesh, Kachin State, Myanmar and supporting refugees from Ukraine. The largest of these restrictions applies to our work with the Rohingya in Bangladesh (balance of £287,331).

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

RESERVES POLICY

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, the trustees have agreed to designate 9 months of UK and international expenditure.

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 14% of the 2022-2023 forecast expenditure and therefore at an acceptable level.

FUND BALANCES AS OF 28/02/2023

Restricted Funds: £418,063 Designated Funds: £1,426,674 Free Reserves: £330,665 Total Funds: £2,175,402

The level of funds is planned to reduce over the coming years.

INVESTMENT POLICY AND OBJECTIVES

In 2022-2023 the charity achieved an income of £3,795 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 the Pornographic Industry and will always look to invest in socially responsible investments.

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.

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FUNDRAISING

OUR APPROACH TO FUNDRAISING

It is thanks to our generous community of supporters and donors that we can continue to support children ‘on the edge’. Our income profile is broad and designed to deeply engage with the donors, individuals and businesses who offer their support. We employ a salaried, professional fundraising team to manage and develop our income stream and to ensure we meet the statutory obligations of the Charity Commission and Fundraising Regulator.

We do not engage the services of ‘professional fundraising’ businesses; all our fundraising activity is delivered by our own fundraising team. We do work with commercial participators; when doing so, conducting due diligence and reviewing agreements annually.

The charity is a member of the Fundraising Regulator, and holds an online lottery license with the Gambling Commission. The charity maintains strong governance practices and remains compliant with the associated organisational codes of practice. All fundraising staff receive training relating to the relevant Code of Practice during induction, and relevant implementation policies (e.g. Finance policy, Fundraising Complaints policy) are reviewed each year with the fundraising team.

The charity takes any opportunities to improve supporter care very seriously. Any complaints that our fundraising activities may generate are recorded and investigated by the Fundraising Manager and reviewed by the Chief Operating Officer. No complaints were received in 2022/23.

Our first raffle was drawn on the 4th November 2022, with the support of The Body Shop © who provided many of the prizes. In the year 2022/23, 47p from every £1 ticket spent in our raffle went to help support the vital work of Children on the Edge. 4p was given away in prizes and 49p was spent on running the draw.

All winners are randomly selected, with the first ticket number selected receiving the first prize, the second ticket number selected winning the second prize and so on. In our Autumn Raffle, drawn on the 4th November 2022, there was a 1 in 347 chance of winning a prize.

How we protect vulnerable people

We are signed up to the Fundraising Preference Service to enable individuals to opt out from receiving fundraising communications from us. We do not produce mass mailings with donation asks, any fundraising campaigns are led through email newsletters where there is a clear process to opt out of future newsletters.

We are in the process of publishing a vulnerable persons policy to guide our fundraising and communications teams conduct with potentially vulnerable supporters.

In 2022 we launched a seasonal online raffle so we have extended our vulnerable person’s policies to include a Responsible Gambling Policy.

FUNDRAISING HIGHLIGHTS

We were blown away to see so many trusts, foundations, groups, schools and individuals come together in support of our work with Ukrainian refugee families. 81-year old Major Mick took to the local waterways, sailing over 100 miles in his homemade ‘Tintanic II’ vessel - made of sheets of corrugated iron. Mick raised more than £10,000 for our appeal. The wonderful team at Tuppenny Barn in Emsworth hosted a ‘Gardeners' Question Time’ with a panel of green-fingered legends, including Arit Anderson from BBC Gardeners' World. We are grateful for all the challenges and events hosted by so many schools and groups in support of Ukrainian refugees this year.

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FUNDRAISING

Inspiring retailers on the high street and online have also partnered with Children on the Edge to donate funds from sales; including Scarlett Jewellery and The Little Botanical. The Body Shop also donated funds from every sale of their Christmas products in the winter of 2022.

The impact of the media coverage of Ukrainian refugees inspired many more customers to donate through Pennies at Montezuma’s stores; these ‘micro-donations’ rose to £41K in 2022/23, a 250% increase on 2021/2022.

Our Big Give campaign in December raised awareness and support for our work with Rohingya refugees in Bangladesh. With thanks to matching funders Pacific Star Charitable Trust and the Coles-Medlock Foundation, we were able to connect with new donors, inspire 64 donations and raise an incredible £57,638 during the campaign. We were honoured to win The Big Give’s award for Best International Charity in 2022.

SAFEGUARDING

Safeguarding children is at the heart of our work. We know that children can only be effectively safeguarded when we work collaboratively with our programme partners.

SERIOUS INCIDENT REPORTS

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

We achieve this by:

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REFERENCE & ADMINISTRATION 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

CONTACT

www.childrenontheedge.org 01243 538530

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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 2023 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).

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.

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.

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.

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.

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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 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 benchmark is the midpoint 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 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 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.

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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.

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:

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.

Stuart Gallimore, Chair of Trustees Date: 22 June 2023

22

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 2023 set out on pages 27 to 36. 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.

23

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 22, 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:

24

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.

25

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: 11 July 2023

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

26

28

Children on the Edge Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the Year Ended 28 February 2023

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 (deficit) / income
Gross transfers between funds
14
Net movement in funds for the year
Total funds:
Brought forward
Carried forward		 Unrestricted
funds
£
739,311
131,474
14,882
3,795
72,446
961,908
296,644
709,629
1,006,273
(44,365)
-
(44,365)
1,801,704
1,757,339		 Restricted
funds
£
744,440
1,033,577
-
-
-
1,778,017
-
1,785,495
1,785,495
(7,478)
-
(7,478)
425,541
418,063		 2023
Total
funds
£
1,483,751
1,165,051
14,882
3,795
72,446
2,739,925
296,644
2,495,124
2,791,768
(51,843)
-
(51,843)
2,227,245
2,175,402		 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

The notes on pages 30 to 36 form an integral part of these financial statements.

27

Children on the Edge

Balance Sheet as at 28 February 2023

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		 £
£
-
20,611
2,206,459
2,227,070
(51,668)
2,175,402
2,175,402
418,063
1,757,339
2,175,402
2023		 £
£
-
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		 £
£
-
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
2,227,245
425,541
1,801,704
2,227,245

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.

22/6/23

The financial statements were approved by the Board of Trustees on …................ and signed on its behalf by:

......................................... Mr S Gallimore - Trustee

The notes on pages 30 to 36 form an integral part of these financial statements.

28

Children on the Edge Statement of Cash Flows as at 28 February 2023

Note
£
£
Net cash flow from operating activities
16
(37,041)
Cash flow from investing activities
Interest received
3,795
Net cash flow from investing activities
3,795
Net (decrease) / increase in cash and cash equivalents
(33,246)
Cash and cash equivalents at 1 March 2022
2,239,705
Cash and cash equivalents at 28 February 2023
2,206,459
2023		 £
£
(38,866)
1,628
1,628
(37,238)
2,276,943
2,239,705
2022		 £
£
(38,866)
1,628
1,628
(37,238)
2,276,943
2,239,705
2022
(37,238)
2,276,943
2,239,705

The notes on pages 30 to 36 form an integral part of these financial statements.

29

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2023

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.

30

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2023

2 Donations and legacies

Gifts from individuals
Corporate fundraising activity
Gifts and services in kind		 2023
£
698,518
783,033
2,200
1,483,751		 2022
£
613,235
710,332
5,500
1,329,067

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
4
Other trading activities
Fundraising events
Sale of merchandise
5
Other income
Employers relief
Impact of Covid
Foreign currency gains
6
Costs of raising funds
Fundraising costs
Staff costs
Support costs		 2023
£
1,161,477
3,574
1,165,051
2023
£
14,635
247
14,882
2023
£
5,000
200
67,246
72,446
2023
£
33,296
251,500
11,848
296,644		 2022
£
465,068
-
465,068
2022
£
1,156
1,826
2,982
2022
£
4,000
826
25,050
29,876
2022
£
34,226
212,822
11,981
259,029

31

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2023

7 Charitable activities costs

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		 2023
£
732,210
1,284,682
324,428
132,684
21,120
2,495,124
£
4,823
69,796
28,631
19,098
2,502
23,632
-
(15,798)
132,684
£
8,308
3,949
2,269
6,594
21,120		 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

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)
Miscellaneous grants (Lebanon)
Miscellaneous grants (Thailand)
Haileybury Youth Trust (HYT) (Uganda)
Asociatia Aproape De Oameni (Ukraine)
Speranta (Ukraine)
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		 2023
£
581,902
77,972
-
110,841
-
32,226
5,527
189,993
95,261
190,960
1,284,682
2023
£
17,880
6,594
-		 2022
£
462,868
39,278
6,733
96,816
2,000
1,194
-
-
-
116,417
725,306
2022
£
17,900
6,198
3,385

32

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2023

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		 2023
£
423,797
44,213
58,439
94,049
120,164
740,662		 2022
£
355,257
33,919
47,932
84,744
67,763
589,615

During the year 1 (2022: 0) employee earned more than £60,000.

The full time equivalent number of staff employed by the charity during the year was as follows:

Projects
Fundraising and publicity
Support
Governance
Overseas
The gross number of staff employed in UK (Headcount)
11
Tangible fixed assets
Cost
As at 1 March 2022
Additions
As at 28 February 2023
Depreciation
As at 1 March 2022
Charge for the year
As at 28 February 2023
Net book value
As at 28 February 2023
As at 28 February 2022
12
Debtors
Prepayments
Other debtors
13
Creditors: Amounts falling due within one year
Trade creditors
Social security and other taxes
Other creditors and accruals		 £
13,378
-
13,378
13,378
-
13,378
-
-
Plant &
machinery		 2023
No.
3.45
6.22
1.43
0.10
14.40
25.60
13.00
Motor
vehicles
£
11,232
-
11,232
11,232
-
11,232
-
-
2023
£
2,506
18,105
20,611
2023
£
4,581
9,843
37,244
51,668		 2022
No.
3.23
5.66
1.66
0.10
16.50
27.15
13.00
Total
£
24,610
-
24,610
24,610
-
24,610
-
-
2022
£
2,417
14,112
16,529
2022
£
3,504
10,800
14,685
28,989

33

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2023

14 Movement in funds

Restricted funds
Bangladesh
Burma borders (including Kachin state)
India
Lebanon
Thailand
Uganda
Ukraine
Unrestricted funds
Designated funds
Afghanistan
Bangladesh
Burma borders (including Kachin state)
India
Lebanon
Uganda
Ukraine
UK based costs
General fund
Total unrestricted funds
Total funds
2022
Restricted funds
India
Lebanon
Bangladesh
Burma borders (including Kachin state)
Unrestricted funds
Designated funds
Uganda
Bangladesh
Burma
India
Ukraine
UK based costs
General fund
Total unrestricted funds
Total funds		 At 01.03.22
£
280,901
62,054
-
82,586
-
-
-
425,541
-
243,004
-
149,817
-
400,271
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		 £
6,430
(29,445)
-
(82,586)
-
-
98,123
(7,478)
-
-
-
-
-
-
-
-
-
(44,365)
(44,365)
(51,843)
£
(20,961)
(118,034)
(80,305)
11,961
(207,339)
-
-
-
-
-
-
-
138,302
138,302
(69,037)
Net
movement in
funds		 £
-
-
-
-
-
-
-
-
24,188
67,252
52,864
293
24,423
105,767
7,445
(428,041)
(145,809)
145,809
-
-
£
-
-
-
-
-
(268,157)
50,200
(8,706)
(68,976)
200,000
113,116
17,477
(17,477)
-
-
Transfers
between
funds		 At 28.02.23
£
287,331
32,609
-
-
-
-
98,123
418,063
24,188
310,256
52,864
150,110
24,423
506,038
207,445
151,350
1,426,674
330,665
1,757,339
2,175,402
£
-
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

34

Children on the Edge Notes to the Financial Statements for the year ended 28 February 2023

14 Movement in funds (continued)

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

Restricted funds
Bangladesh
Burma borders (including Kachin state)
India
Lebanon
Thailand
Uganda
Ukraine
Unrestricted fund
General fund
2022
Restricted funds
India
Lebanon
Uganda
Bangladesh
Burma borders (including Kachin state)
Unrestricted fund
General fund		 £
716,224
68,043
68,909
115,044
-
390,870
418,927
1,778,017
961,908
2,739,925
£
106,585
9,907
241,943
455,200
65,819
879,454
949,167
1,828,621
Incoming
resources		 £
709,794
97,488
68,909
197,630
-
390,870
320,804
1,785,495
1,006,273
2,791,768
£
127,546
127,941
241,943
535,505
53,858
1,086,793
810,865
1,897,658
Resources
expended		 Movement
in funds
£
6,430
(29,445)
-
(82,586)
-
-
98,123
(7,478)
(44,365)
(51,843)
£
(20,961)
(118,034)
-
(80,305)
11,961
(207,339)
138,302
(69,037)

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.

35

Children on the Edge

Notes to the Financial Statements for the year ended 28 February 2023

15 Analysis of fund balances between net assets

Fixed assets
Current assets
Creditors
Total funds
2022
Fixed assets
Current assets
Creditors
Total funds		 Restricted
funds
£
-
418,063
-
418,063
£
-
425,541
-
425,541		 Designated
funds
£
-
1,426,674
-
1,426,674
£
-
1,572,483
-
1,572,483		 funds
£
-
382,333
(51,668)
330,665
£
-
258,210
(28,989)
229,221
Unrestricted		 Total
£
-
2,227,070
(51,668)
2,175,402
£
-
2,256,234
(28,989)
2,227,245

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

Net loss 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		 2023
£
(51,843)
(3,795)
-
(4,082)
22,679
(37,041)		 2022
£
(69,037)
(1,628)
3,385
20,155
8,259
(38,866)

17 Gross obligations under operating leasing agreements

As at 28 February 2023 the charity had future minimum lease commitments as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2023
£
17,880
10,430
28,310		 2022
£
17,880
28,310
46,190
18
Financial instruments
Categorisation of financial instruments
Financial assets that are debt instrument measured at amortised cost
Financial liabilities measured at amortised cost		 2023
£
2,224,564
51,668		 2022
£
2,253,817
28,989

Items of income, expense, gains or losses

The total interest income for financial assets not measured at fair value through profit or loss is £3,795 (2022: £1,628).

19 Related party transactions

Donations totalling £3,095 were made to the charity by three trustees during the year.

36