OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

Charity Registration No. 1104948

Company Registration No. 05061385 (England and Wales)

ECPAT UK

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

ECPAT UK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Charity number

Company number

Registered office

Auditor

Banker

Nicola Guy Annabel Mullin Elizabeth Barratt Geoffrey Corre Renata De Groot Deveena Sahota

1104948 05061385 81A Endell Street London WC2H 9DX United Kingdom HW Fisher LLP Acre House 11-15 William Road London NW1 3ER United Kingdom The Co-operative Bank PO Box 250 Delf House South Way Skelmersdale WN8 6WT

(Appointed 17 June 2021) (Appointed 17 June 2021) (Appointed 17 June 2021) (Appointed 17 June 2021)

ECPAT UK

CONTENTS

Page
Trustees' report 1 - 13
Statement of trustees' responsibilities 14
Independent auditor's report 15 - 17
Statement of financial activities 18 - 19
Balance sheet 20
Statement of cash flows 21
Notes to the financial statements 22 - 35

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 MARCH 2021

1. Message from our chair

I am delighted to be writing this report as the new Chair of ECPAT UK. I was formally appointed to the Board at the end of the reporting year. It is a privilege to have been appointed and to have this opportunity to be involved in supporting the work of ECPAT UK .

I want to start by paying tribute to my predecessor Ian Hanham who was involved with the charity for a decade steering through some very challenging times. We said farewell to Ian in July 2021 and to longstanding trustee Keith Richards who served the charity for the past 11 years. They are testament to the vitality and importance of the charity’s work, which is as essential and urgent as ever.

The Covid19 pandemic has continued to have an impact on the nature and prevalence of child trafficking and exploitation both globally and domestically as well as on the young people with whom we work directly, our team of staff and volunteers. It has exposed the impact of structural inequalities and the lack of investment to protect, support and care for children. Like all charities, ECPAT UK has felt the impact emotionally, practically and financially, and it has made our work even more important, urgent and vital. I pay tribute to our staff and volunteers in continuing to put children and young people first, making a difference every day.

This report highlights some of our key achievements over the past year and demonstrates the difference we are making with your support. As you will see, 2020-21 was a good year for us financially with a significant improvement in our charitable income which means we end the year in a much healthier position and return to a size we have enjoyed in previous years. This year also saw us make big improvements to our governance and bring 4 new trustees to our Board via an open and transparent skills and experience based recruitment process. We continue to move forward with great confidence for our future, notwithstanding the challenges.

More children than ever before were identified as potential victims of trafficking in 2020 and children also made up a larger proportion of all potential victims identified than in previous years. Whilst there have been some positive steps taken this year, the barriers to protection are rising and we are increasingly concerned about the continued conflation with immigration, a hostile environment and lack of investment in children and young people that risks rolling back progress made by the UK in tackling modern slavery and child protection, placing more children unprotected and at further risk

The pandemic has shown us just how connected and interdependent we are globally and has further exposed the prevalence of and increase in online exploitation. We remain steadfast to our rights based and child centred approach and we are very proud of our history and membership of the global ECPAT family.

We continue to be the UK's leading authority on the issue of child trafficking and an organisation that centres the voices of those who have experienced exploitation - empowering them to create change for themselves and their peers. We have a unique and integrated approach to tackling child trafficking and exploitation at all levels, involving direct work with child victims, training, policy, research and campaigning and focused on finding lasting solutions to the challenges young people face based on their current direct experiences.

Covid19 has also made many of us revaluate what our values are and what matters most to us. Despite all the challenges we have also witnessed an outpouring of empathy, compassion and flexibility across our work that has led to increased awareness and support. I want to thank everyone – our staff and volunteers, donors, funders, partners, campaigners, supporters and ambassadors, and most importantly the young people we stand with who inspire us every day to do better in advocating and creating a safer and better world.

Thank you.

Liz Barratt

Chair

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

2. Who we are

Our vision

Children everywhere are free from exploitation, trafficking and modern slavery

Our mission

To campaign to end child trafficking and transnational child exploitation To improve the child protection response of authorities in the UK and overseas To advocate on behalf of and alongside children affected by exploitation

Our approach

We take a rights-based approach which centres around every child’s fundamental human right to be protected from trafficking and exploitation, as outlined in national and international legal frameworks. Our work is child-centred, trauma informed and guided by the meaningful and ethical participation of the young people we support.

The Charity’s objects (“the Objects”) are “to relieve those children in need as the trustees determine from time to time and to advance education in particular but not exclusively by raising awareness on the international aspects of the commercial sexual exploitation of children, to thereby protect such individuals from harm and preventing their suffering.”

This is achieved through our charitable activities and programmes as set out within this report:

3. Child trafficking and exploitation in 2020-21

3.1 Child trafficking to and within the UK

Child trafficking – the recruitment, transportation, transfer, harbouring or receipt of a child for the purpose of exploitation – continues to be a pressing issue in the UK. More children than ever before were identified as potential victims of trafficking in 2020. Statistics from the National Referral Mechanism (NRM) – the UK’s official system for identifying victims of trafficking and modern slavery – show that 4,946 potential victims were exploited as children, an almost 10% increase on the previous year. Children also made up a larger proportion of all potential victims identified than in previous years, with 47% of all individuals identified saying they had been exploited as children.

As in the final quarter of 2019, when the government began categorising criminal exploitation as a distinct exploitation type, criminal exploitation was the most prevalent exploitation type among children - with 2,544 children identified as potential victims. 93% of these children were boys – an increase on the proportion of boys identified as potential victims of criminal exploitation in 2019.

Across all exploitation types, 78% of children identified as potential victims were boys – again, an increase in the number of male victims compared to figures for 2019. Increased understanding of child criminal exploitation is likely to be a significant driver of the higher number of UK national boys identified, as professionals and institutions begin to recognise young males involved in drug supply and other criminal activity as victims rather than treating them as offenders.

In line with previous years, the vast majority of children were UK nationals, with 2,874 UK national children identified as potential victims. However, significant numbers of non-UK national children were also identified, with most coming from Vietnam (246 children), Sudan (163 children), Albania (160 children), Romania (138 children) and Eritrea (132 children). Children from Afghanistan, Iraq, Nigeria and Iran also made up significant numbers of those identified. However, in 2020 the numbers of potential victims identified decreased among children from Albania, Eritrea and Sudan compared with the numbers identified in 2019.

Over the past year there have been a number of significant policy developments in relation to child trafficking, including the implementation of a pilot to devolve NRM decision making to local safeguarding partners following our joint report with the Independent Anti-slavery Commissioner, as well as the continued national roll-out of the Independent Child Trafficking Guardianship (ICTG) service which is testing three of the recommendations made by the Independent Review of the Modern Slavery Act 2015 in England. However England continues to lag behind the other devolved nations as only child victims in two thirds of the country can access an Independent Child Trafficking Guardian – a trusted adult to support each young person and advocate in their best interests

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

in each of the complex systems they find themselves in – from immigration appeals to criminal justice proceedings and more. Additionally, children identified as potential victims of trafficking to the UK continue to face chronic instability due to lack of guaranteed, long term immigration leave – meaning their right to stay in the UK is uncertain and they could be removed from safety after transitioning to adulthood – a situation which only looks certain to get worse as a result of the government’s New Plan for Immigration which was published at the end of March 2021 with the Nationality and Borders Bill making its way through parliament.

We continue to campaign for all trafficked young people to have stable futures in the form of an independent guardian and the right to stay in safety in the UK has never been more needed.

3.2 Transnational child exploitation by UK offenders

Transnational child exploitation - the exploitation of children beyond country borders, including exploitation committed online by offenders in a different country to the child – remains a threat to children across the world. UK national offenders have long exploited global inequality; using their status and privilege to exploit children where endemic poverty enables them to offend with impunity.

In January 2021 the government released its new strategy to tackle child sexual abuse. We welcomed the government’s commitment to making sure all children, within and outside of the UK, are protected from sexual abuse and exploitation by citizens or residents of the UK and want to see this work to go further in protecting those most vulnerable to child sexual abuse and exploitation. This landmark strategy aims to “prevent, tackle and respond to all forms of child sexual abuse”, including the sexual abuse of children abroad by UK nationals – an issue ECPAT UK has campaigned on for the last 25 years as part of the ECPAT International network.

We were pleased to see that the strategy recognises this is a global issue and aims to create a more joined up approach to tackling child sexual abuse, with greater coordination between agencies and better data recording practices – echoing ECPAT UK’s campaigns and our evidence to the Independent Inquiry into Child Sexual Abuse investigation into the protection of children outside the UK. The government’s response to the IICSA report, announced plans to implement many of the Inquiry’s recommendations and many of these measures now form part of the UK’s wider CSA strategy. The strategy document sets out the UK’s long overdue national plan of action to tackle the sexual exploitation of children abroad by UK nationals. ECPAT UK has long called for a national plan of action, which formed one of IICSA’s recommendations to government.

The new plan of action includes using Section 72 of the Sexual Offences Act 2003 to allow UK individuals who offend overseas to be prosecuted in the UK and developing a list of countries where children are considered to be at high risk of sexual abuse and exploitation from UK nationals and residents.

The strategy also sets out how the government will use new legislation and enhanced technology to prevent the sexual abuse of children online, protect victims and bring offenders to justice. With increased access to technology in the UK and abroad, offenders are increasingly using technology platforms to sexually abuse children abroad via live-streaming – offences the Online Safety Bill aims to address. With more children spending time online than ever before, more measures are urgently needed. ECPAT UK has monitored rising numbers of offenders using live streaming platforms to commit sexual abuse remotely; often paying an adult in the child’s location to act as an intermediary, or contacting children directly using social media or games apps. ECPAT UK remains at the forefront of organisations calling for governments and technology companies to prevent offenders from exploiting their positions of status, power and privilege to sexually abuse children – both online and in person. With the loss of key European law enforcement mechanisms brought about by Brexit, and increasing online patterns of offending, new types of international cooperation and action to prevent and respond to transnational child exploitation are desperately needed.

4. Research and public policy

“The Minister will be aware of the ECPAT UK report in the Guardian which spoke of those seeking solace in this country between 2016 and 2019. Of the 4,695 victims of people trafficking who applied for status in the UK, 2,000—half of them—are likely to have been children, yet only 28 were granted leave to remain in the UK? Why only 28? Also, what has happened to the other 2,000 who applied? Does the policy remain the same, or will we have a change of policy and a bigger heart?”

- Lord Roberts of Llandudno, House of Lords debate on child trafficking, Monday 16 November 2020

ECPAT UK plays a leading role in influencing law and policy on child trafficking in the UK. We do this by conducting research that forms the basis of our policy recommendations to parliamentarians and other decision makers. These recommendations drive our public campaigning. Here are some of our key achievements in 2020-21.

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Our year in numbers

4.1 Building evidence

In the last year we produced a number of reports and briefings to build evidence on the issue of child trafficking and determine best - practice in national and local responses. A review of what works in multi agency decision making and the implications for child victims of trafficking, , a joint report Office of the Independent Anti-Slavery Commissioner produced a review into models of multiagency decision making in the UK. The report makes recommendations for best practice in multi-agency decision making for child victims of trafficking, including potential future devolved decision-making in the National Referral Mechanism.

We also published our snapshot report on child trafficking providing an overview of the issues affecting children in the UK. Compiling the latest statistics and policy developments, the report highlights never seen before data on immigration outcomes for child victims, secured through Freedom of Information Act requests. This latest version of our biennial publication provides an update, in follow up to our 2018 report raising concerns about the UK's current response to child trafficking and providing priority recommendations to the government to ensure all children are protected from exploitation. Following this report, a debate was raised in the House of Lords regarding the immigration outcomes for child victims highlighting our findings. We produced a briefing addressing the government’s replies and showing how children are still being failed even after identified conclusively as victims.

Our submission to the first report by the new Special Rapporteur on contemporary forms of slavery to the Human Rights Council on the impact of COVID19 was cited 3 times. We also made representations to the Children’s Commissioner for England regarding the disproportionate impact of Covid-19 on unaccompanied children and young people leading a coalition of grassroots organisations. We submitted evidence to the Education Select Committee’s inquiry into Covid-19. We also supported the Article 39 led campaign and legal action, The Court of Appeal ruled that the Secretary of State for Education unlawfully removed safeguards for children in care during the Coronavirus pandemic.

4.3 Shaping policy and legislation

As active members of 25 national and international policy working groups and chair of one group – the Home Office’s Children’s Group on Modern Slavery – we play a key role in holding the government to account for its policies and laws and their impact on child victims of trafficking. In the last year, we have influenced policy and legislation in a number of ways, including the decision to pilot devolved multi-agency decision making for children in the NRM and the terms of reference of those pilots, amending the Interim Statutory Guidance for Independent Child Trafficking Guardians, amending the Modern Slavery: Statutory Guidance for England and Wales (under s49 of the Modern Slavery Act 2015) and Non-Statutory Guidance for Scotland and Northern Ireland , contributing to child specific considerations in country of origin reports, and General Recommendation on Trafficking of Women and Girls in the Context of Global Migration which was adopted by the Convention on the Elimination of all Forms of Discrimination against Women (CEDAW) Committee on 6 November 2020.

Additionally, as part of our ongoing work against the transnational exploitation of children abroad by UK offenders, we participated in a working group updating The Code’s policies on voluntarism to ensure children are protected from exploitations, contributed to a General Comment on children’s rights in the digital environment, and as active members of the Children’s Charities Coalition on Internet Safety we contributed to debates about the anticipated Online Safety legislation. We also commissioned a legal review of transnational jurisdictional issues related to livestreaming of child sexual abuse to help inform our responses.

5. Campaigning and Advocacy

“We're all human first and foremost, before anything else. There should be respect because we’re all human just like each other”

“I wish for everyone to be treated equally... Human is human”

“I hope for everyone to be happy. When people are happy they don’t have time to think about hurting or racially abusing someone”

“I want a world where money doesn’t equal power and everyone has all they need”

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Our year in numbers

ECPAT UK is one of the UK’s leading organisations campaigning against child trafficking and for children’s rights. With your support, we are continuing our long history of holding governments to account for child victims’ rights to protection and support. Here are some of our key achievements in 2020-21.

5.1 Creating change together

This year we have continued to focus on our Stable Futures campaign calling for all trafficked children and young people to have stable futures. Informed by the concerns and priorities of our youth group members, the campaign calls for all trafficked and unaccompanied young people to have an independent guardian to represent their best interests and for those who are migrants to have an immigration decision based on their long-term best interests.

The campaign’s goals continue to gain public and parliamentary support and with the announcements in the New Plan for Immigration, we relaunched the campaign with a focus on key provisions in the subsequent Nationality and Borders Bill. We provided information to our supporters about the Plan and enabled them to engage in the very short public consultation to raise concerns about child victims of trafficking.

5.2 Winning support for trafficked children

As a leading anti-trafficking organisation, ECPAT UK receives many requests from the media to provide expertise on the issue of child trafficking and respond to news stories and developments in government policy. Our youth campaigners played a significant role in our work with the media – sharing their stories and helping shape public discussions through our work challenging harmful reporting and imagery. On Anti-slavery Day 12th October this year we launched a new photography competition with the theme of ‘Freedom. It was an integrated fundraising and awareness campaign involving our youth group members in shaping, creating and judging the entries.

We also announced our ECPAT UK Children’s Champion of 2020 – formalising and clarifying our aims and ambitions for the award, streamlining the process and teamworking and planning.

Using social media, we reached new supporters with young people’s stories and stable futures campaign – sharing our message with 43,750 people across Facebook, Twitter and Instagram. What’s more, our videos were watched 7,203 times on YouTube and Vimeo during this period and our website’s pages were viewed 78,464 times. We’re grateful to the 3,555 engaged supporters who receive our monthly e-updates and carry out campaigns and fundraising actions in support of our work.

6. Youth programme

“It’s a place that we can go and be together. It feels like a family…. And I love the outings.”

“When I come to the youth group, I can forget about the outside world. We in the group have a bond and we can share our experiences.”

“This group helps us get information. When we first come to the country we don’t know anything- it is this group that gives us the information we need to get by.”

“The group is a place where we learn the truth- we learn what trafficking is, what our rights are, what things should be like. It’s a place to meet new people who have gone through what you have been through.”

“It was from the ECPAT UK youth group that I made my first friend here in the UK. It’s a place that gives me comfort.”

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

“Since I’ve been with ECPAT UK, my life has changed for the better. I feel more confident in myself, my self-esteem has gone up. I’m living my dream. I never thought I would be in my second year at uni but thanks to your help, I am.”

Our year in numbers

ECPAT UK’s youth programme gives young survivors of child trafficking a safe space to gain peer support and build a community that helps its members recover and build stable, happy futures. Through our girls and young women’s group and our boys and young men’s group, young people receive emotional support, access educational and skills-building, training and employment opportunities, and voice their opinions about our work and the UK’s response to child trafficking. Here are our key achievements in 2020-21

6.1 Supporting young people into stable futures

Stable futures are so important to us so we don’t go back to our own situation. I don’t want to be re-trafficked, if I did it would be worse now. Having that stable future will prevent that.

- Member of our ECPAT UK youth programme

This year, despite Covid19 restrictions we continued to provide a safe space for young victims of trafficking to receive peer support, build life skills, access education and training opportunities and be supported to access other services when needed – most in demand being mental health services and legal representation.

We adapted our programme for young people to meet their needs and in response to the changing picture increasing the amount of practical and emotional support to them through more 1:1s and visits. We also committed to regular biweekly ESOL classes which has become a lifeline for some young people unable to access this in other ways.

All young people received weekly check in calls throughout the year as we responded to their increased isolation and loneliness and our youth groups met online each week. The groups provided a consistent source of support for young people going through a really difficult time with continuing lengthy immigration appeals processes and dealing with chronic instability in their lives, including young people experiencing or at imminent risk of homelessness. We’re thrilled that four young people were granted refugee status during this time, and two others were accepted into university courses.

Children and young people directly supported by ECPAT UK have faced significant hardship throughout the course of the pandemic, with most reporting an impact on their mental health and feelings of isolation, particularly those in unregulated accommodation settings who had very limited support and interactions. In addition to taking our weekly youth groups online, our youth workers acted quickly to create individual support plans for each young person – providing daily check in phone calls and referring them to expert professionals for specific needs such as accommodation or legal support

Attendance and participation dropped at times, with many young people expressing online fatigue and decreased enthusiasm to participate in activities. Various youth group members had no access to education due to unavailability of computers and internet access, and subsequent confusion over these provisions through the local authority or their educational setting. These issues persisted well into the end of 2020, resulting in additional education gaps for young people already facing significant barriers. We were pleased to be able to offer practical support quickly through specific Covid19 grant funding including laptops, data and food vouchers, nappies and milk to young mums with new babies,

Throughout the year, members of our youth groups took part in a range of online workshops, and explored issues of identity, race and belonging, Black History Month, safe relationships and consent; learning about their rights and entitlements as citizens, and much more. Many youth group members have been worried about their health, feeling overwhelmed by the news including many different stories going around about the virus and increased awareness of mental health problems, as well as racism and sexual violence in light of the murders of George Floyd and Sarah Everard and the climate crisis. In response, we have helped the young people navigate by creating accessible guidance on trustworthy news and sources of information, and having discussion sessions on

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

a range of issues including #BlackLivesMatter campaign . We’ve also delivered life skills workshops on budgeting and protecting yourself from online fraud.

We know that many of the problems experienced by the children and young people we work with and for derive from systemic racism and inequality. We understand that they face huge challenges as victims of exploitation and members of black and minority ethnic communities - that they are more likely to live in poverty, have problems accessing education, experience the criminal justice system, live in unsuitable housing and disadvantaged areas, have greater need for mental health support and suffer other health inequalities. Covid-19 has also presented more risk to them. Reflecting on the past year, young members of ECPAT UK’s youth group shared some insight into their mixed experiences:

‘Covid 19 made local authorities think about what they were providing. Before Covid 19 they only gave us £32.50 per week. It wasn’t enough to survive on. But with Covid 19 they increased the allowance for young people. It is now enough to live off.’

‘Studying online was a challenge - it was harder to get 1:1 support, you had to learn more independently, and this added to the language challenges…. I had challenges, but I overcame these and got grades to go to university… Before taking part in things, I would need to travel to places - this costs money and takes time. Now I can join things online, so it has opened up opportunities.’

‘..In the many years of being looked after, I never received extra. For example, once I asked for help buying a pair of football boots and never got any help. All of a sudden, they gave me a laptop and they paid for the internet … but I needed the internet before! It’s like Covid 19 made people realise the need that was there before.’

7. Training and practice development

“I just wanted to say again how blown away I am by your training. I was completely captivated the whole way through. It's by far the best course I have ever experienced. You are so knowledgeable and passionate about this overwhelmingly difficult subject and you put it across so very well.”

“Excellent training. I was grateful the training was tailored to my team’s needs and it met all of our expectations. The use of real examples brought the training to life, we have better understanding of the issue and have some new resources to use with young people. It has helped our team think about our strategic response to child trafficking.”

Our year in numbers

ECPAT UK’s longstanding training and practice development programme builds the capacity of frontline professionals to improve care and support for trafficked children. We train social workers, foster carers, police officers, health care and education professionals to identify child exploitation and to safeguard and support children and young people appropriately. Here are some of our key achievements in 2020-21

We have delivered training to practitioners in all four UK nations, as well as had professionals attend from overseas, including professionals from Vietnam, Turkey and across the EU. We have now fully transferred our training online whilst maintaining interactivity, youth participation and quality of our courses and developed a new modular training structure, including new training content and courses.

7.1 Youth participation in training

“all those years I was going through this and no one listened to me. Now when I speak in training, everyone listens and it may help other young people”

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

“It was really helpful and informative to be able to listen to young people who have had experiences of being trafficked. This 'humanised' the training and gave opportunity to listen to first hand experiences not only of being trafficked and exploited but also involvement with professionals and processes. It is far too easy to read statistics in training and not fully appreciate the human impact.”

A unique aspect of ECPAT UK’s training has been more than 95% of our courses were co-delivered by ECPAT UK youth group members. If youth group members would like to be involved, they are supported by ECPAT UK staff can choose whether they share any of their experiences, opinions or advice to practitioners. This ensures our training remains child-centred and participants say it enhances their understanding of trafficking, as well as young people’s experiences. On top of this, it provides our young people a platform to use their experiences to raise awareness of trafficking and improve outcomes for other victims of trafficking. It gives young people experience of speaking and presenting, an insight into professional systems in the UK, and all participating young people are thanked with vouchers for their invaluable contributions. So thank you to all of our young people- we couldn’t run an effective training programme without you!

7.2 Training and capacity building

With funding from the People’s Postcode Trust we were able to deliver our safe accommodation and child victims of trafficking missing from care training to foster carers, care home staff and social workers aiming to improve the care child victims of trafficking receive here in the UK. We trained a total of 686 of carers and professionals over 30 training and across all 4 nations.

As part of the international project into trafficking, The Pathways Project funded by AMIF, we developed a new, three day advanced training course into child trafficking, modern slavery and exploitation. We delivered four of these courses: one to British Red Cross workers, one to practitioners organised by a regional strategic migration partnership, one to a local authority and another open course to practitioners nationwide and training a total of 99 professionals.

Feedback from participants has been positive and highlights the impact on practice development and capacity building:

7.3 Sharing, influencing and encouraging best practice in anti-trafficking and child protection

Using our research and expertise to shape practice, we were commissioned to produce an awareness raising and education campaign and information for Vietnamese people in migration to and within the UK. The Home Office released its evaluation of its Child Trafficking Protection Fund including our Partnership Against Child Trafficking (PACT) project, conducted by the University of Bedfordshire, finding the project provided an “important pathway” to change the ways in which social care can reduce children’s vulnerability to trafficking and re-trafficking and contribute to improving local authority practice .

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Our project in partnership with World Vision Vietnam (WVV) informing Vietnamese migrants in the UK about their rights in the UK criminal justice system for its Home Office-funded Tackling Modern Slavery project was successfully launched in March 2021 and includes new resources including a child friendly film and digital information resource, and a film and information resource for adults. The Tackling Modern Slavery project aims to combat trafficking from Vietnam to the UK. As part of our research, ECPAT UK consulted Vietnamese members of our youth groups for victims of child trafficking as well as a steering group made up of experts. We researched the information already available and found a gap in accessible information on migrants’ rights and what to expect in the criminal justice system.

8. Funding

“Thank you so much for keeping on supporting us. This group, the residential trips, eating together is so important. The group needs to be running because every day there are young, vulnerable people coming to the country. They need people to support them, they need a place to go, to get information and make new friends.”

Our year in numbers

The last year has seen ECPAT UK grow to respond to increasing need for our services. In particular, we hired a new, full time training and best practice coordinator to increase our training activity and took on a full-time fundraiser to ensure we have the funding we need to deliver our vital work.

With the number of potential victims of child trafficking continuing to grow, we have worked hard to diversify our income streams and build financial and organisational stability. With the uncertainty or Brexit and the pandemic, charities are facing enormous challenges to secure the funding they need. We’re grateful to the funders, donors and supporters who recognise the importance of our work and enable us to continue advocating for the rights of trafficked children.

8.1
Our funders
A B Charitable Trust
Anti-trafficking Monitoring Group
Asylum, Migration and Integration Fund
BBC Children in Need
The Bromley Trust
City Bridge Trust
Cyril and Eve Jumbo Trust
Greater London Authority Young Londoner’s Fund
Henry Smith Charity
John Ellerman Foundation
London Community Foundation
London Community Response Fund
The Mayor’s Office for Policing and Crime (MOPAC)
National Lottery Community Fund
Neighbourly
Network for Social Change
Paul Hamlyn Foundation
People’s Postcode Trust
The Society of the Holy Child Jesus
The Southall Trust
The Swire Charitable Trust

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Tesco

The Wyndham Charitable Trust

…and those who choose to remain anonymous

8.3 Individual giving

We are incredibly grateful for the generosity of all the individuals who support our work financially. In 2020-21 we received 1032 individual donations totalling £13,034. This includes £5,378 from 57 regular donors and a further 189 people one off donors gave a total of £7,656. Regular gifts play a key role in securing our future as a charity, giving us stability to plan for the future and ensure we can continue our important work with child victims of trafficking.

9. Our plans for 2021 and beyond

This year has been one in which everyone has had to step back and take stock of our priorities, whilst at the same time being ever ready to step in to provide the charitable response that we can and must do to support children and young people through the most difficult times. Having quickly adapted our services to young people and our training and practice offer to provide more one to one support and some of the most basic practical and financial support they need, our challenge remains to focus on wider systemic change whilst attending to young people’s immediate needs for protection, care, support and stability and to adapt to shifting times whilst we review and develop our strategy moving into the next phase of our development.

We are adapting and learning to live with huge uncertainty and shifting political priorities and a rapid pace of change that has created an environment in which more people than ever are at risk of exploitation and children remain the most vulnerable. Our goal is to make sure that we are making the most difference we can in the most timely and appropriate way. We are rising to the challenges with more creativity, innovation and collaboration than ever before.

Like all charities, the need to increase and diversify our funding base is more pressing than ever. We are grateful to funders who stepped in to provide emergency Covid-19 related funding as well as those who have adapted approaches to respond to uncertainty and reviewed their own strategies to better support existing and new funding programmes that in the coming year will help us to:

We plan to take it one step at a time, ensuring the health and wellbeing of all those we support, our staff and volunteers, whilst continuing to build on our successes. We will do this through positive interactions, reducing adversity and demonstrating our role as sector leaders - shaping national and international narratives around child trafficking and sharing our key policy and campaigning messages with the public and decision-makers.

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

The trustees of the charity present its reports and financial statements for the year ended 31 March 2021.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

ECPAT UK is a charitable company limited by guarantee incorporated on 02/03/2004 under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association. In the event of the company being wound up, the members (who are the trustees) are required to contribute an amount not exceeding £10.

The trustees who served during the year and up to the date of signature of the financial statements are listed below:

Nicola Guy Annabel Mullin Ian Hanham Resigned 6 July 2021 Keith Richards Resigned 6 July 2021 Elizabeth Barratt Appointed 17 June 2021 Geoffrey Corre Appointed 17 June 2021 Renata De Groot Appointed 17 June 2021 Deveena Sahota Appointed 17 June 2021

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the accounting policies set out in Note 1 to the financial statements and comply with the company’s Memorandum and Articles of Association, the Companies Act 2006, and the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The Charity’s Objectives/Mission

The principle objectives of the charity are to relieve those children in need as the trustees determine from time to time and to advance public education, in particular but not exclusively by raising awareness on the international aspects of commercial sexual exploitation of children, thereby protecting such individuals from harm and preventing their suffering.

Organisational Structure

The company’s main business is carried out from its offices in London and due to Covid19 the team works flexibly from home too. Day to day management is the duty of the CEO appointed by the charity trustees acting as the board of directors, who are listed in the legal and administrative section of this report.

Appointment of Trustees

New trustees with specific expertise are recruited by the Board as required. New trustees are provided with information on the duties and responsibilities of charity trustees and given the opportunity to meet with staff at the charity to learn about current activities.

Arrangement for setting the remuneration of key management personnel

The CEO salary is set and periodically reviewed by the Trustees, having given consideration to a number of factors including benchmarking of roles in similar organisations, affordability within the charity’s financial situation and appropriateness when compared to the staff pay structure.

Financial review

Total income for the year was £529,498 (2020: £340,483, 2019: £574,343), a 55% increase on the previous year. Total expenditure for the year was £379,022 (2020: £501,436, 2019: £472,426), a 24% decrease on the previous year. After transfers between funds there was a net surplus of £134,067 (2020: deficit of £142,543, 2019: surplus of £145,678) on unrestricted funds and a net surplus of £16,409 (2020: deficit of £18,410, 2019: deficit of £43,761) on restricted funds

ECPAT UK would like to thank all its grant funders and individual donors for their support over the past year including: A B Charitable Trust, Anti-trafficking Monitoring Group, Asylum, Migration and Integration Fund, BBC Children in Need, The Bromley Trust, City Bridge Trust, Cyril and Eve Jumbo Trust, Greater London Authority Young Londoner’s Fund, Henry Smith Charity, John Ellerman Foundation, London Community Foundation, London Community Response Fund, The Mayor’s Office for Policing and Crim (MOPAC), National Lottery Community Fund, Neighbourly, Network for Social Change, Paul Hamlyn Foundation, People’s Postcode Trust, The Society of the Holy Child Jesus, The Southall Trust, The Swire Charitable Trust, Tesco, Gill Withers, The Wyndham Charitable Trust and those who wish to remain anonymous.

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

Reserves

The reserves at the end of March 2021 were at £230,387 (2020: £79,911, 2019: £240,864), of which £19,180 (2020: £2,771, 2019: £21,181) were restricted funds and £211,207 (2020: £77,140, 2019: £219,683) were unrestricted funds. It is the policy of ECPAT UK’s trustees that the organisation should keep at least three months’ running cost (expenditure) in the unrestricted reserve - based on our 2021-22 budget this reserve target is £110,000. Such a reserve is thought essential to provide the flexibility needed to cover timing uncertainty in the receipt and payments of project funds, particularly when more grants are being paid in arrears. Through careful management over this year we presently find ourselves over our adequate target reserves and a free (unrestricted) reserve of £200,000 which means we move into the new year with closer to six months’ running costs which given the uncertainties of the funding climate puts us in a good position moving forward; our focus is to maintain a position above our minimum level of reserves

Risk management

The trustees have examined the major risks which the charity faces and considers them to include:

In order to mitigate the risks identified above, ECPAT UK regularly reviews its plans and priorities to ensure that its limited resources are directed where they can have the most benefit and works closely with other children's charities where this maximises its outreach. Our direct experience in supporting trafficked children is used to inform our policy, research advocacy, campaigning and training and practice development work. Expanding our training work with a range of professionals and agencies continues to be prioritised to make the maximum use of staff knowledge and experience and to provide an income stream This training income was affected by the pandemic but we have managed to move our offer online.

Covid-19 and going concern

The Trustees recognise that 2020-21 has continued to be challenging but under Patricia Durr’s leadership the charity’s ability to be flexible and responsive has vastly improved as have relationships with funders and partners and supporters.

In 2020-21 we consolidated a very flexible approach to our services which we feel makes us more robust and adaptable to further change. Covid-19 meant that many funders reassessed their grant programmes as well as making additional funds available and we started out 2020-21 by being able to quickly react to this. We remain grateful to the many funders who have been so supportive and flexible in helping us to adapt to the pandemic and all of the changes we have had to make to service provision and working arrangements including changing reporting arrangements and derestricting funds.

Over the year our fundraising developed as planned and the significant increase in our income for this year reflects that – it is a vastly improved financial situation and future for the charity with inspiring leadership and management for our committed and dedicated team.

The level of uncertainty the pandemic has engendered and the inevitable long term financial downturn remains a concern but with the steps we are taking towards diversification in our fundraising we are optimistic that we can continue to move forward positively and we believe the charity to be on sound footing with solid foundations that make it a going concern over the next 12 months at the very least

Safeguarding and Child Protection

Safeguarding and child protection is core the work of the charity. The trustees of ECPAT UK have considered safeguarding and child protection and have reviewed the adequacy of the policies and procedures in place to mitigate any perceived risks to children and young people and vulnerable people. The organisation has a child protection policy and safeguarding procedures for children and vulnerable adults which is reviewed annually. This includes a name designated safeguarding lead who is responsible for safeguarding

ECPAT UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

concerns in the organisation and training of staff and volunteers. Safeguarding is built into our recruitment and employment procedures, management of staff and volunteers and working directly with children and young people. Our child protection policy is on our website https://www.ecpat.org.uk/child-protection-policy.

Public Benefit

Directors of a charity have a duty under Section 17 of the Charities Act 2011 to report in their Annual Report on their charity’s public benefit. The Directors of ECPAT UK have considered the requirements which are explained on the Charity Commission website.

Public Benefit Statement

The report sets out ECPAT UK’s objectives and reports on the activity and successes in the year to 31 March 2021, as well as explaining the plans for the current financial year. The Directors have considered ECPAT UK’s work and have concluded that the aims of the organisation continue to be charitable; that the aims and the work done give identifiable benefits to the charitable sector and both indirectly and directly to individuals in need; that the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay; and that there is no detriment or harm arising from the aims or activities.

Disclosure of information to auditors

The Members have confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

Auditors

In accordance with Section 485 of the Companies Act 2006, a resolution proposing that H W Fisher be reappointed as auditors of the company was approved at the annual general meeting.

Signed on behalf of the Board:

Elizabeth Barratt

Name: Elizabeth Barratt Position: Chair

21 Dec 2021 Dated:

ECPAT UK

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are also the directors of ECPAT UK for the purpose 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).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ECPAT UK

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF ECPAT UK

Opinion

We have audited the financial statements of ECPAT UK (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

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 charity 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.

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 charity’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.

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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the trustees' r eport.

ECPAT UK

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF ECPAT UK

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to 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 financial statements

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 .

As part of our planning process:

ECPAT UK

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF ECPAT UK

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s ://www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Rich

Andrew Rich (Senior Statutory Auditor)

for and on behalf of HW Fisher LLP

Chartered Accountants Statutory Auditor Acre House 11-15 William Road London NW1 3ER United Kingdom

......................... 21 Dec 2021

ECPAT UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Current financial year

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
50,713
5,000
Charitable activities
4
243,637
220,018
Other income
5
10,130
-
Total income
304,480
225,018
Expenditure on:
Raising funds
6
43,104
-
Charitable activities
7
145,664
187,268
Other
11
2,986
-
Total resources expended
191,754
187,268
Net incoming/(outgoing) resources before transfers
112,726
37,750
Gross transfers between funds
21,341
(21,341)
Net income/(expenditure) for the year/
Net movement in funds
134,067
16,409
Fund balances at 1 April 2020
77,140
2,771
Fund balances at 31 March 2021
211,207
19,180		 Total
Total
2021
2020
£
£
55,713
26,499
463,655
313,984
10,130
-
529,498
340,483
43,104
11,413
332,932
477,274
2,986
12,749
379,022
501,436
150,476
(160,953)
-
-
150,476
(160,953)
79,911
240,864
230,387
79,911

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ECPAT UK

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Prior financial year

Prior financial year
Unrestricted Restricted Total
funds funds
2020 2020 2020
Notes £ £ £
Income and endowments from:
Donations and legacies 3 26,499 - 26,499
Charitable activities 4 164,289 149,695 313,984
Total income 190,788 149,695 340,483
Expenditure on:
Raising funds 6 11,413 - 11,413
Charitable activities 7 323,146 154,128 477,274
Other 11 12,749 - 12,749
Total resources expended 347,308 154,128 501,436
Net incoming/(outgoing) resources before transfers (156,520) (4,433) (160,953)
Gross transfers between funds 13,977 (13,977) -
Net income/(expenditure) for the year/
Net movement in funds (142,543) (18,410) (160,953)
Fund balances at 1 April 2019 219,683 21,181 240,864
Fund balances at 31 March 2020 77,140 2,771 79,911

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ECPAT UK

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one year
14
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
16
Unrestricted funds		 2021
£
32,503
264,263
296,766
(71,272)		 £
4,893
225,494
230,387
19,180
211,207
230,387		 2020
£
18,388
110,453
128,841
(55,111)		 £
6,181
73,730
79,911
2,771
77,140
79,911

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

21 Dec 2021

The financial statements were approved by the Trustees on .........................

.............................. Elizabeth Barratt Elizabeth Barratt

Trustee

Company Registration No. 05061385

ECPAT UK

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash generated from/(absorbed by) operations
20
Investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(4,446)		 £
158,256
(4,446)
-
153,810
110,453
264,263		 2020
£
(919)		 £
(46,617)
(919)
-
(47,536)
157,989
110,453

ECPAT UK

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

1 Accounting policies

Charity information

ECPAT UK is a charitable company limited by guarantee incorporated in England and Wales. The registered office is 81A Endell Street, London, WC2H 9DX, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Companies Act 2006 and “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). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

The Trustees have continued to consider the effect of the Covid-19 outbreak, that has been spreading throughout the world since early 2020, on the charity’s activities. The Charity acknowledges that the outbreak has led to a degree of uncertainty about the future, and continues to take action in relation to expenditure to mitigate the risk to the Charity. They also continue to invest in fundraising to secure continuing and new sources of funding. Based on financial forecasts prepared, the Trustees are confident that the charity can continue as a going concern for a period of at least twelve months from the date of approval of these financial statements. Thus the accounts have been prepared on the going concern basis.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

1.5 Resources expended

Resources expended are recognised in the period to which they relate.

Direct charitable expenditure comprises all expenditure relating to the activities carried out to achieve the charity's objectives.

Support costs represent costs that cannot be directly attributed to charitable activities but are necessarily incurred in the general running of the charity. Support costs have been allocated t o the three charitable activities based on time spent on each activity.

Governance costs include the costs of statutory audit and other costs related to the governance of the charity. Governance costs have been apportioned on the same basis as support costs.

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 25% straight line Computers 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

The Charity 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.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11 Government grants

Government grants are recognised at the fair value of the amount received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. Government grants are being received under the Coronavirus Job Retention Scheme designed to compensate for staff costs. Amounts received or receivable are recognised in the statement of financial activities over the same period as the costs to which they relate.

2 Critical accounting estimates and judgements

The Trustees are satisfied there are no material estimates or judgements in the financial statements.

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

3 Donations and legacies

Unrestricted Restricted Total Unrestricted
funds funds funds
2021 2021 2021 2020
£ £ £ £
Donations and gifts 50,713 5,000 55,713 26,499

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Campaigning and
advocacy
Training and
information
Youth
programme
2021
2021
2021
£
£
£
Project income
328,022
48,857
86,776
Analysis by fund
Unrestricted funds
217,411
26,226
-
Restricted funds
110,611
22,631
86,776
328,022
48,857
86,776		 Total
2021
Campaigning and
advocacy
Training and
information
Youth
programme
2020
2020
2020
£
£
£
£
463,655
174,172
30,270
109,542
243,637
147,396
14,248
2,645
220,018
26,776
16,022
106,897
463,655
174,172
30,270
109,542		 Total
2020
£
313,984
164,289
149,695
313,984

Charitable trading income

The above income includes government grants for specific projects relating to modern slavery and child trafficking - for further details see note 16 on page 30.

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

5 Other income

Unrestricted Total
funds
2021 2020
£ £
Other income 10,130 -

Other income relates to amounts received under the Coronavirus Job Retention Scheme as a government grant.

6 Raising funds

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fundraising and publicity
Staff costs 43,104 11,413
43,104 11,413

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

7 Charitable activities

Campaigning
and advocacy
Training and
information
Youth
programme
2021
2021
2021
£
£
£
Staff costs
93,646
63,761
93,174
Depreciation and impairment
2,748
-
-
Other costs
898
5,415
23,005
97,292
69,176
116,179
Share of support costs (see note 8)
10,434
6,705
21,733
Share of governance costs (see note 8)
5,707
2,853
2,853
113,433
78,734
140,765
Analysis by fund
Unrestricted funds
52,430
45,988
47,246
Restricted funds
61,003
32,746
93,519
113,433
78,734
140,765
Total
2021
Campaigning
and advocacy
Training and
information
Youth
programme
2020
2020
2020
£
£
£
£
250,581
166,420
31,162
65,918
2,748
7,984
-
-
29,318
12,969
38,913
33,811
282,647
187,373
70,075
99,729
38,872
52,683
26,341
26,341
11,413
7,366
3,683
3,683
332,932
247,422
100,099
129,753
145,664
197,080
70,615
55,451
187,268
50,342
29,484
74,302
332,932
247,422
100,099
129,753
Total
2020
£
263,500
7,984
85,693
357,177
105,365
14,732
477,274
323,146
154,128
477,274

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

8
Support costs
Support costs
Governance
costs
£
£
Other governance costs
-
13
Support costs
38,872
-
Audit fees
-
11,400
38,872
11,413
Analysed between
Charitable activities
38,872
11,413		 2021
Support costs
Governance
costs
£
£
£
13
-
56
38,872
105,365
-
11,400
-
14,676
50,285
105,365
14,732
50,285
105,365
14,732		 2020
£
56
105,365
14,676
120,097
120,097

Governance costs includes payments to the auditors of £ 11,400 (2020 : £ 14,676 ) for audit fees.

9 Trustees

N one of the trustees (or any persons connected with them) received any remuneration from the charity during the year.

None of the trustees received any reimbursed expenses from the charity during the year (2020: one trustee was reimbursed travel expenses of £43).

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

10 Employees

Number of employees

The average monthly number of employees during the year was:

Campaigning and advocacy
Youth Programme
Training
Fundraising
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
2
3
2
1
8
2021
£
259,685
21,022
12,978
293,685		 2020
Number
4
2
1
1
8
2020
£
241,438
21,053
12,422
274,913

The Charity agreed to make a termination payment of £10,309 on the termination of the employment of an employee for the year ended 31 March 2020. None agreed for the year ended 31 March 2021.

There were no employees whose annual remuneration was £60,000 or more (2020: none).

Key management personnel comprises the Board of Trustees and the Senior Management Team. Total remuneration received by key management personnel in the period was £75,798 (2020: £18,085). The trustees received no remuneration (2020: £nil).

No redundancy payments were made within the year (2020: there was a redundancy payment to one employee of £9,513).

11 Other

Unrestricted Unrestricted
funds funds
2021 2020
Net loss on disposal of tangible fixed assets 2,986 12,749
2,986 12,749

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

12 Tangible fixed assets
Fixtures and Computers Total
fittings
£ £ £
Cost
At 1 April 2020 9,941 43,508 53,449
Additions - 4,446 4,446
Disposals (9,022) (29,492) (38,514)
At 31 March 2021 919 18,462 19,381
Depreciation and impairment
At 1 April 2020 9,941 37,327 47,268
Depreciation charged in the year 230 2,518 2,748
Eliminated in respect of disposals (9,788) (25,740) (35,528)
At 31 March 2021 383 14,105 14,488
Carrying amount
At 31 March 2021 536 4,357 4,893
At 31 March 2020 - 6,181 6,181
13 Debtors
2021 2020
Amounts falling due within one year: £ £
Trade debtors 20,300 5,309
Other debtors 1,270 2,100
Prepayments and accrued income 10,933 10,979
32,503 18,388

14 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
6,733
4,608
1,152
58,779
71,272		 2020
£
-
855
1,085
53,171
55,111

The income deferred in the current year is £24,106 (2020: £9,989). The amounts released in the year was £9,989 (2020: £nil). The income is deferred as it was received for work that is due to be completed in the next financial year.

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

15 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £12,978 (2020: £12,422).

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 April 2019

£
Youth Programme
(22,530)
Advocacy Policy and Campaigns
(25,193)
EC React Project
4,165
MSIF
4,083
CTPF
44,821
DFE Refugee Council
15,835
Training
-
21,181		 Movement in funds
Incoming
resources
Resources
expended
£
£
106,897
(74,302)
24,246
(937)
-
-
2,530
(1,695)
-
(47,710)
16,022
(29,484)
-
-
149,695
(154,128)		 Transfers
Balance at
1 April 2020

£
£
(18,750)
(8,685)
1,884
-
-
4,165
-
4,918
2,889
-
-
2,373
-
-
(13,977)
2,771		 Movement in funds
Incoming
resources
Resources
expended
£
£
91,776
(93,519)
110,611
(61,003)
-
-
-
-
-
-
-
-
22,631
(32,746)
225,018
(187,268)		 Transfers
Balance at
31 March 2021
£
£
-
(10,428)
(20,000)
29,608
(4,165)
-
(4,918)
-
-
-
(2,373)
-
10,115
-
(21,341)
19,180

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

16 Restricted funds

(Continued)

Youth Programme relates to grants for work with ECPAT UK Youth Groups.

Advocacy Policy and Campaigns relates to grants received for public awareness campaigns and other activities on child trafficking and sexual exploitation of children.

EC React project relates to grants received for development of training for those working in the EU with trafficked children.

MSIF (Modern Slavery Innovation Fund) relates to funding received from the home office for the purposes of preventing and safeguarding trafficked victims from Vietnam . This grant is direct government assistance.

CTPF (Child Trafficking Protection Fund) relates to funding received from the home office for partnerships and for the purposes of auditing local authority responses to child trafficking. This grant is direct government assistance.

DFE/Refugee Council relates to funding received to train foster carers and safeguard separated children. This grant is direct government assistance.

Training relates to grants received to deliver specialist training on child trafficking and exploitation.

Note: The contracts with Refugee Council and some of the Youth Programme grants allow any surplus funds to be transferred to general overheads. The transfer out of Advocacy Policy and Campaigns relates to the de-restriction of income totalling £20,000. The transfer out of EC React Project, MSIF and DFE Refugee Council relates to the surplus funds transferred to general overheads. The transfers in to restricted funds (from unrestricted funds) are to cover project overspends.

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

17 Analysis of net assets between funds

Unrestricted
Restricted
Total
funds
funds
2021
2021
£
£
Fund balances at 31
March 2021 are
represented by:
Tangible assets
4,893
-
Current assets/(liabilities)
206,314
19,180
211,207
19,180		 Unrestricted
Restricted
Total
funds
funds
2021
2020
2020
£
£
£
4,893
6,181
-
225,494
70,959
2,771
230,387
77,140
2,771		 2020
£
6,181
73,730
79,911

18 Financial commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2021
£
9,924
2,958
12,882		 2020
£
9,924
4,182
14,106

The lease payments recognised as an expense in the year was £17,400 (2020: £28,600).

19 Related party transactions

There were no disclosable related party transactions during the year (2020 : none) .

Aggregate donations received from trustees in the year totalled £nil (2020: £nil).

20
Cash generated from operations
Surplus/(deficit) for the year
Adjustments for:
Loss on disposal of tangible fixed assets
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase in creditors
Cash generated from/(absorbed by) operations		 2021
2020
£
£
150,476
(160,953)
2,986
12,749
2,748
7,984
(14,115)
48,323
16,161
45,280
158,256
(46,617)

ECPAT UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

21 Analysis of changes in net funds

The charity had no debt during the year.