## ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 ## 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 15| ## **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 2022. ## **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. 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. ## _**Risk management**_ ## **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. Page 2 ## **INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED** ## **TRUSTEES' REPORT** International China Concern (ICC) is a Christian development organisation changing lives through bringing love, hope and opportunity to China's abandoned and disabled. 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 2022 we continued the ongoing work of International China Concern by maintaining our connection with our National Office funding affiliates around the world and our Projects in China’s Hunan Province. The needs in China did not change significantly this year and our activities continued to fulfil our charitable purposes. During the year there were no changes to the Trustee membership or changes to our governance model. The Trustees 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 serve children and families in 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 continued to operate family-style Group Homes, where over 200 children are cared for full time. This required staffing flexibility during the year as lockdowns were announced at different times of the year. Our expatriate volunteer field staff returned to the welfare centres and assisted their Chinese counterparts. During the year, especially during lockdowns, the work of caring for the children and young adults did not stop, and the staff performed heroically--willingly taking 2-week shifts during lockdowns and sleeping in offices in the welfare centre. Even when Covid restrictions were eased in the rest of the country late in the year, our projects remained under strict lockdown until the end of 2022. We are pleased to report that none of the children in our care suffered serious illness from Covid. Our Family Partners Program (FPP) continued in our AiXiHui Project and in the "Lighthouse" building that houses a separate FPP centre operated by Changsha Rainbow Project. Page 3 ## **INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED** ## **TRUSTEES' REPORT** The AiXiHui Project successfully relocated to new, larger premises that enables the staff to serve more families caring for children with disabilities. We continued to add more multi-disciplinary "Cross Care" teams at the AiXiHui centre and at the Lighthouse. The Lighthouse teams-initiated outreach of rural areas where many families caring for children with disabilities do not have access to any government services. This outreach proved to be quite successful and will be continued in the coming years. The ICC Representative Office (part of ICC Ltd) in Hunan Province continued to build relationships with Chinese 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 while enabling partnerships and expansion of our projects. ICC continues to promote local staff to leadership positions while we continue to benefit from the skills of expatriate volunteers in China. ICC continues to work with our network of National Offices around the world. This network is the primary funding model for ICC CC Ltd. During 2022 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 sat on the International Council and advised the Trustees on the direction and activities of their autonomous national office to ensure the continual operation of ICC CC Ltd. throughout most of 2022. In November, 2022 the governance structure of ICC Ltd (a sister entity based in Hong Kong) was modified, with the Board of Directors being firmly established according to our constitution, while the national board chairs and at large advisors were grouped into the International Advisory Committee. This committee will endorse key decisions made by the Board and offer advice and counsel on major issues. ## **Financial review** Income for the year amounted to £262,694 (2021 - £295,687) and expenditure £256,782 (2021 - £294,804). The surplus of £6,229 (2021 - deficit £2,807) was added to reserves brought forward and funds held at the year end amounted to £14,590 (2021 - £8,361). ## **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 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". 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 the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping proper accounting records that can 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 5 December 2023 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 Company for the year ended 31 December 2022. ## **Responsibilities and basis of report** As the charity’s Trustees of the Company (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 the Company 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 5 December 2023 Page 6 ## **INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022** |**Note**
**Unrestricted**
**funds**
**£**
**Income and Endowments from:**
Donations and legacies
3
85,457
Investment income
4
-
Total income
85,457
**Expenditure on:**
Charitable activities
5
76,797
Total expenditure
76,797
Net
income/(expenditure)
8,660
**Other recognised**
**gains and losses**
Other gains/losses
317
Net movement in funds
8,977
**Reconciliation of funds**
Total funds brought
forward
5,613
Total funds carried
forward
10
14,590|**Restricted**
**funds**
**£**
177,237
-
177,237
179,985
179,985
(2,748)
-
(2,748)
2,748
-|**Total**
**2022**
**£**
262,694
-
262,694
256,782
256,782
5,912
317
6,229
8,361
14,590|**Total**
**2021**
**£**
295,686
1| |---|---|---|---| ||||295,687| ||||298,494| ||||298,494| ||||(2,807)
75| ||||(2,732)
11,093| ||||8,361| The notes on pages 9 to 15 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 2022** |**Note**
**Current assets**
Debtors
8
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
9
**Net assets**
**Funds of the charity:**
**Restricted income funds**
Restricted funds
**Unrestricted income funds**
Unrestricted funds
**Total funds**
10|**2022**
**£**
-
16,690
16,690
(2,100)
14,590
-
14,590
14,590|**2021**
**£**
2,364
8,097| |---|---|---| |||10,461
(2,100)| |||8,361| |||2,748
5,613| |||8,361| For the financial year ending 31 December 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors' responsibilities: - The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and - The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. 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 15 were approved by the Trustees, and authorised for issue on 5 December 2023 and signed on their behalf by: ......................................... Ruth Smith Trustee The notes on pages 9 to 15 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 2022** ## **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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. ## **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 2022** ## _**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. ## **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. ## **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 Page 10 ## **INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **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. ## **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. Page 11 ## **INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **3 Income from donations and legacies** |**Unrestricted**
**funds**
**General**
**£**
Donations and legacies;
Donations
85,457
85,457
**4 Investment income**
Interest receivable and similar income;
Interest receivable on bank deposits|**Restricted**
**funds**
**£**
177,237
177,237|**Total**
**2022**
**£**
262,694
262,694
**Total**
**2022**
**£**
-|**Total**
**2021**
**£**
295,686| |---|---|---|---| ||||295,686| ||||**Total**
**2021**
**£**
1| ## **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|**Unrestricted**
**funds**
**General**
**£**
484
404
8,746
22,295
3,968
421
711
2,100
-
37,668
76,797|**Restricted**
**funds**
**£**
-
-
-
-
-
-
-
-
-
179,985
179,985|**Total**
**2022**
**£**
484
404
8,746
22,295
3,968
421
711
2,100
-
217,653
256,782|**Total**
**2021**
**£**
595
-
4,051
5,097
-
429
153
2,100
120
285,949| |---|---|---|---|---| |||||298,494| Page 12 ## **INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **6 Grant-making** ## **Analysis of grants** **Grants to institutions 2022 2021 £ £** Grants 217,653 285,949 ## **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. ## **8 Debtors** |Due from group undertakings
Prepayments|**2022**
**£**
-
-
-|**2021**
**£**
504
1,860| |---|---|---| |||2,364| ## **9 Creditors: amounts falling due within one year** |Accruals|**2022**
**£**
2,100|**2021**
**£**
2,100| |---|---|---| Page 13 ## **INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **10 Funds** |**Unrestricted funds**
**_General_**
General Funds
**Restricted funds**
Hengyang
Changsha
Individual Support
Community Outreach
Project
Surgery
**Total funds**|**Balance at**
**1 January**
**2022**
**£**
5,613
-
-
1,124
-
1,624
2,748
8,361|**Incoming**
**resources**
**£**
85,457
93,417
41,398
-
42,422
-
177,237
262,694|**Resources**
**expended**
**£**
(76,480)
(93,417)
(41,398)
(1,124)
(42,422)
(1,624)
(179,985)
(256,465)|**Balance at**
**31**
**December**
**2022**
**£**
14,590
-
-
-
-
-| |---|---|---|---|---| |||||-| |||||14,590| Page 14 ## **INTERNATIONAL CHINA CONCERN (CHILD CARE) LIMITED** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ||**Balance**|**Balance**||||**Balance**| |---|---|---|---|---|---|---| ||**at 1**|||||**at 31**| ||**January**||**Incoming**|**Resources**||**December**| ||**2021**||**resources**|**expended**|**Transfers**|**2021**| ||**£**||**£**|**£**|**£**|**£**| |**Unrestricted funds**||||||| |**_General_**||||||| |General Funds|(2,118)||132,796|(48,518)|(76,547)|5,613| |**Restricted funds**||||||| |Hengyang||-|66,636|(66,636)|-|-| |Changsha||-|28,790|(105,337)|76,547|-| |Individual Support|11,587||6,296|(16,759)|-|1,124| |Community Outreach||||||| |Project||-|43,879|(43,879)|-|-| |Vocational Training||-|10,522|(10,522)|-|-| |Surgery|1,624||846|(846)|-|1,624| |Capital Development||-|5,922|(5,922)|-|-| ||13,211||162,891|(249,901)|76,547|2,748| |**Total funds**|11,093||295,687|(298,419)|-|8,361| |**11 Analysis of net assets between **|||**funds**|||| |||||||**Total funds**| ||||**Unrestricted**|||**at 31**| ||||**funds**
**Restricted**|||**December**| ||||**General**||**funds**|**2022**| |||||**£**|**£**|**£**| |Current assets||||16,690|-|16,690| |Current liabilities||||(2,100)|-|(2,100)| |Total net assets||||14,590|-|14,590| |||||||**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| Page 15