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2021-12-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

International China Concern (Child Care) Limited

(A company limited by guarantee) Charity registration number: 1104182

Company registration number: 04581218

Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham, Chichester West Sussex PO18 8NF

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

CONTENTS

Reference and Administrative Details 1
Trustees' Report 2 to 5
Independent Examiner's Report 6
Statement of Financial Activities 7
Balance Sheet 8
Notes to the Financial Statements 9 to 17

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED REFERENCE AND ADMINISTRATIVE DETAILS

Trustees Kerry Weathington Andrew Gardener Ruth Smith Secretary Trent Frecklington Charity Registration 1104182 Number Company Registration 04581218 Number Registered Office The Castle Gate Melbourne Street Newcastle upon Tyne NE1 2JQ Independent Examiner G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham, Chichester West Sussex PO18 8NF Bankers Barclays Bank Leicester LE87 2BB

Page 1

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

TRUSTEES' REPORT

The Trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 December 2021.

Structure, governance and management

Nature of governing document

International China Concern (Child Care) Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.

Recruitment and appointment of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.

Organisational structure

The Trustees conduct quarterly telephone conferences and meet for a formal board meeting once a year. Trustees resident outside the United Kingdom oversee aspects of the work from their country of residence.

Risk management

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

Relationships with related parties

International China Concern

The company works intrinsically with other worldwide offices which share the same name and charitable objects and from which funds are received for forwarding to the projects in China.

Objectives and activities

Objects and aims

The principal object of the company is to provide relief, aid, education, training and assistance for orphans, children and adults throughout the world and particularly (but not exclusively) in China who live and work in homes designated as orphanages (but not limited to such homes) in whatsoever manner as the Trustees shall in their absolute discretion think fit and specifically (but without prejudice to the generality of the foregoing) and to increase the awareness in other countries around the world of the needs of the abandoned and orphaned in China.

International China Concern (ICC) is a Christian development organisation changing lives through bringing love, hope and opportunity to China's abandoned and disabled.

Page 2

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

TRUSTEES' REPORT

ICC's mission continues to be as relevant today as it has ever been. Across the nation of China hundreds of thousands of abandoned and disabled children continue to live in situations where love is absent, hope is extinguished and opportunities are non-existent. Whilst the Chinese government continues to make strides in improving the level of care given to abandoned and disabled children, it is evident that more must be done to give these children a future.

Public benefit

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

Achievements and performance

Review of activties

During 2021 we continued the work of International China Concern by maintaining our connection with our National Officers and associated Projects in China’s Hunan Province. The needs in China did not change this year and our activities continued to fulfil our charitable purposes.

During the year there were no changes to the Trustee membership nor changes to our governance model.

The Trustee’s worked with ICC’s International Council (as an advisory group) and with the staff of International China Concern Ltd (ICC Ltd - a Hong Kong entity) in the fulfilment of our ongoing mission.

ICC’s three projects continued to care for children and families in China’s Hunan Province despite the constant impact of Covid pandemic on local activities of staff within the projects. Our Changsha Rainbow Project and Hengyang Spring project with the Family Style Group Homes, where over 200 children are cared for full time, required staffing flexibility during the year as lockdowns were announced at different times of the year. Most of our expat volunteer field staff returned to their home countries during 2021 leaving mainly local Chinese staff to run the projects.

During the year, especially during lockdowns, the work of caring for the children and young adults did not stop.

Our Family Partners Program (FPP) continued in our AiXiHui Project an expanded to a newly renovated facility in our Changsha Rainbow Project. During the year the AiXiHui Project was informed it needed to relocate as the office space it was currently occupying was deemed not suitable for child therapy and education activities of children with disabilities. The administration staff at this project spent time during the year investigating a possible new location that would meet the new standards in China. In 2022, the Project moved into a new rented location.

The ICC Representative Office (part of ICC Ltd) in Hunan Province continued to build the relationships with China government officials at city and province level. Building these relationships will assist ICC into the future to continue our work by maintaining our Foreign NGO status and allowing partnerships and expansion of our projects.

Page 3

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

TRUSTEES' REPORT

In our work we continue to work with expat volunteers in China, during 2021 we expanded our financial assistance to these volunteers who assist ICC in carrying out is charitable purpose in assisting children with disabilities. This assistance was via reimbursing costs for rent and living needs in China. Where a volunteer was desiring to return to China, after a period of furlough, we have assisted with travel costs for their timely return to China.

ICC continues to work with the network of National Offices around the world. This network in the primary funding model for ICC (Child Care) Ltd. During 2021 we worked with these offices to assist them in their donor facing activities and in providing systems and support network to create efficiencies of service for the global network. The Board Chairs of each office sit on the International Council and advise the Trustees on the direction and activities of their autonomous national office to ensure the continual operation of ICC (Child Care) Ltd.

Financial review

Income for the year amounted to £295,687 (2020 - £296,342) and expenditure £298,494 (2020 - £294,804). The deficit of £2,807 (2020 - surplus £1,205) reduced reserves brought forward and funds held at the year end amounted to £8,361 (2020 - £11,093).

Going concern

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Page 4

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED TRUSTEES' REPORT

Statement of Trustees' Responsibilities

The Trustees (who are also the directors of International China Concern (Child Care) Limited for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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

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

Small companies provision statement

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

The annual report was approved by the Trustees of the charity on 22 September 2022 and signed on its behalf by:

......................................... Ruth Smith Trustee

Page 5

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 December 2021 which are set out on pages 7 to 17.

Responsibilities and basis of report

As the charity’s Trustees of International China Concern (Child Care) Limited (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of International China Concern (Child Care) Limited are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Chartered Institute of Management Accountants, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of International China Concern (Child Care) Limited as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

...................................... G W Schulz ACMA Independent Examiners Ltd

22 September 2022

Page 6

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Unrestricted
funds
£
Income and Endowments from:
Donations and legacies
3
132,795
Investment income
4
1
Total income
132,796
Expenditure on:
Charitable activities
5
48,593
Total expenditure
48,593
Net
income/(expenditure)
84,203
Transfers between
funds
(76,547)
Other recognised
gains and losses
Other gains/losses
75
Net movement in funds
7,731
Reconciliation of funds
Total funds brought
forward
(2,118)
Total funds carried
forward
13
5,613		 Restricted
funds
£
162,891
-
162,891
249,901
249,901
(87,010)
76,547
-
(10,463)
13,211
2,748		 Total
2021
£
295,686
1
295,687
298,494
298,494
(2,807)
-
75
(2,732)
11,093
8,361		 Total
2020
£
296,342
-
296,342
294,804
294,804
1,538
-
(333)
1,205
9,888
11,093

The notes on pages 9 to 17 form an integral part of these financial statements. Page 7

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

(REGISTRATION NUMBER: 04581218) BALANCE SHEET AS AT 31 DECEMBER 2021

Note
Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: Amounts falling due within one year
11
Net current assets
Net assets
Funds of the charity:
Restricted income funds
Restricted funds
Unrestricted income funds
Unrestricted funds
Total funds
13		 2021
£
-
2,364
8,097
10,461
(2,100)
8,361
8,361
2,748
5,613
8,361		 2020
£
120
1,120
17,217
18,337
(7,364)
10,973
11,093
13,211
(2,118)
11,093

For the financial year ending 31 December 2021 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

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

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The financial statements on pages 7 to 17 were approved by the Trustees, and authorised for issue on 22 September 2022 and signed on their behalf by:

......................................... Ruth Smith Trustee

The notes on pages 9 to 17 form an integral part of these financial statements. Page 8

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Charity status

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

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

International China Concern (Child Care) Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

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

Income and endowments

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

Page 9

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Investment income

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

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Grant provisions

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

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £200 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Page 10

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Depreciation and amortisation

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

Asset class

Computer equipment

Depreciation method and rate

42.5% on cost

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash and cash equivalents

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

Liabilities

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Fund structure

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

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 11

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

3 Income from donations and legacies

Donations and legacies;
Donations		 Unrestricted
funds
General
£
132,795
132,795		 Restricted
funds
£
162,891
162,891		 Total
2021
£
295,686
295,686		 Total
2020
£
296,342
296,342

4 Investment income

Unrestricted
funds
General
£
Interest receivable and similar income;
Interest receivable on bank deposits
1		 Total
2021
£
1		 Total
2020
£
-

Page 12

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

5 Expenditure on charitable activities

Note
Communications
Contracted
services
UK office
expenses
Equipment and
resources
Travelling
Bank charges
Sundry expenses
Independent
examination
Depreciation
Grant funding of
activities
6
Staff costs
8		 Unrestricted
funds
General
£
595
-
4,051
5,097
-
429
153
2,100
120
36,048
-
48,593		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
249,901
-
249,901		 Total
2021
£
595
-
4,051
5,097
-
429
153
2,100
120
285,949
-
298,494		 Total
2020
£
417
1,741
7,713
8,980
53
274
67
2,400
120
272,442
597
294,804

6 Grant-making

Analysis of grants

Grants

**Grants to ** institutions
2021 2020
£ £
285,949 272,442

7 Trustees remuneration and expenses

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

No Trustees have received any reimbursed expenses or any other benefits from the charity during the year.

Page 13

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

8 Staff costs

The aggregate payroll costs were as follows:

Staff costs during the year were:
Wages and salaries
Pension costs		 2021
£
-
-
-		 2020
£
580
17
597

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

Management and administration
9 Tangible fixed assets
Cost
At 1 January 2021
At 31 December 2021
Depreciation
At 1 January 2021
Revaluations
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 2021
No
-
Computer
equipment
£
282		 2020
No
1
Total
£
282
282
162
120
282
-
120
282
162
120
282
-
120

Page 14

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10 Debtors

10 Debtors
Due from group undertakings
Prepayments		 2021
£
504
1,860
2,364		 2020
£
4
1,116
1,120

11 Creditors: amounts falling due within one year

11 Creditors: amounts falling due within one year
Due to group undertakings
Other taxation and social security
Accruals
Deferred income		 2021
£
-
-
2,100
-
2,100		 2020
£
3,899
(93)
2,400
1,158
7,364

12 Pension and other schemes

Defined contribution pension scheme

The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £Nil (2020 - £17).

Page 15

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

13 Funds

Unrestricted funds
General
General Funds
Restricted funds
Hengyang
Changsha
Individual Support
Community Outreach
Project
Vocational Training
Surgery
Capital Development
Total funds		 Balance
at 1
January
2021
£
(2,118)
-
-
11,587
-
-
1,624
-
13,211
11,093		 Incoming
resources
£
132,796
66,636
28,790
6,296
43,879
10,522
846
5,922
162,891
295,687		 Resources
expended
£
(48,518)
(66,636)
(105,337)
(16,759)
(43,879)
(10,522)
(846)
(5,922)
(249,901)
(298,419)		 Transfers
£
(76,547)
-
76,547
-
-
-
-
-
76,547
-		 Balance
at 31
December
2021
£
5,613
-
-
1,124
-
-
1,624
-
2,748
8,361

Page 16

INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Balance Balance Balance
at 1 at 31
January Incoming Resources December
2020 resources expended Transfers 2020
£ £ £ £ £
Unrestricted funds
General
General Funds (8,039) 160,363 (108,765) (45,677) (2,118)
Restricted funds
Hengyang 11,989 63,588 (83,184) 7,607 -
Changsha 5,938 27,467 (56,663) 23,258 -
Individual Support - 16,999 (5,413) - 11,586
China Teams - (778) 778 - -
Community Outreach
Project - 20,708 (35,520) 14,812 -
Surgery - 7,995 (6,370) - 1,625
17,927 135,979 (186,372) 45,677 13,211
Total funds 9,888 296,342 (295,137) - 11,093
**14 Analysis of net assets between ** funds
Total funds
Unrestricted at 31
funds
Restricted		 December
General funds 2021
£ £ £
Current assets 7,713 2,748 10,461
Current liabilities (2,100) - (2,100)
Total net assets 5,613 2,748 8,361
Total funds
Unrestricted at 31
funds
Restricted		 December
General funds 2020
£ £ £
Tangible fixed assets 120 - 120
Current assets 5,126 13,211 18,337
Current liabilities (7,364) - (7,364)
Total net assets (2,118) 13,211 11,093

Page 17