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2022-03-31-accounts

ECPAT UK (A Company Limited by Guarantee) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Registered Charity Commission No: 1104948

Registered Company No: 05061385

C H A R T E R E D A C C O U N T A N T S

ECPAT UK (A Company Limited by Guarantee)

INDEX TO THE FINANCIAL STATEMENTS

Legal and administrative information
Report of the trustees
Independent auditor’s report
Statement of financial activities
Statement of financial position
Statement of cash flows
Notes to the accounts		 Pages
1
2 - 13
14 - 16
17 - 18
19
20
21 - 31

ECPAT UK (A Company Limited by Guarantee)

LEGAL AND ADMINISTRATIVE INFORMATION

Principal address and registered office 34 Wharf Road
London
N1 7GR
Registered charity commission number 1104098
Registered company number 05061385
Trustees/Board of directors Nicola Guy
Annabel Mullin
Elizabeth Barratt
Geoffrey Corre
Renata de Groot
Deveena Sahota
Bankers The Co-operative Bank
PO Box 250
Delf House
South Way
Skelmersdale
WN8 6WT
Auditors Cocke, Vellacott & Hill
Chartered Accountants
Unit 28 City Business Centre
Lower Road
LONDON SE16 2XB

Page 1

ECPAT UK (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) for the year ended 31 March 2022

1. Message from our chair

Reflecting on my first full year as the Chair of ECPAT UK, I am proud to be writing this report and all we have achieved together. It has been both a very successful and a very challenging year. Uncertainty and precariousness prevail - for the young people we work with and for, our staff and volunteers, the public sector we are part of and our partners, funders and supporters, but we have managed to stay focused on our objectives, delivering as much as we can with our flexible and focused approach.

Our reporting year of 2021/22 continued to be dominated by the constraints and consequences of the Covid19 pandemic and its impact on everyone – our young beneficiaries, our staff and volunteers and our partners and funders as well as on the lives of millions globally, significantly aggravating longstanding structural inequality, affecting children at risk of or being exploited and exacerbated by the energy crisis, economic turbulence and the invasion of Ukraine by Russia in February 2022.

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. Child trafficking is a considerable problem in the UK with 5,468 children referred into the National Referral Mechanism in 2021/22 alone and there is a significant proliferation in online exploitation of children with the UK now being the third largest global consumer of livestreamed child sexual abuse.

Efforts must be maintained and stepped up in identifying, protecting and caring for children who are victims of trafficking and exploitation in all its forms. Whilst there have been some positive steps taken in the UK this year, the barriers to protection are rising and we are increasingly concerned about the continued conflation of modern slavery with immigration, a hostile immigration environment and the 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.

Within this context of profound uncertainty and challenge we continue to work with colleagues across the children’s and refugee and migrant and anti-trafficking sectors here in the UK and as part of the ECPAT International network, to speak out for young victims. 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 reviewed our strategy this year and we are pleased to confirm our vision, mission and values as well as our strategic priorities. ECPAT UK exists to create a world in which children everywhere enjoy their rights to be protected and to lives free from trafficking and exploitation . We are committed to our unique and integrated approach involving direct work, training, policy, research and campaigning. We remain focused on finding lasting solutions to the challenges young people face based on their current and direct experiences and to empowering them to create change. I am proud to lead an organisation that has this unwavering focus.

We continue to be inspired and led by the members of our Youth Advisory Group, which went from strength to strength this year. We were proud to support them in meeting together face to face each month from January 2022 to collectively work together to look at our strategy, work on the Nationality and Borders Act and our Stable Futures campaign.

This report highlights some of our key achievements over the past year and demonstrates the difference we are making with your support. This year also saw us stabilise and develop our governance processes and further develop strong and supportive relationships with funders - we have been extremely grateful for their vital moral and financial support in challenging times. As you will see, 2021-22 was a stable year for us financially and we end the year maintaining our size and thankful to be able to do so in such turbulent times.

I give huge thanks to every member of the fantastic ECPAT UK team - our staff and volunteers, donors, funders, partners, campaigners, supporters and ambassadors and my fellow trustees, for the many achievements and the great dedication that has kept the charity not just surviving but thriving during this challenging period. Most importantly I thank the young people we stand with and for who inspire us every day to work together for a safer and better world.

Thank you.

Liz Barratt

Chair

Page 2

ECPAT UK

(A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued) for the year ended 31 March 2022

2. Who we are

Our vision

Children everywhere enjoy their rights to be protected and to live free from exploitation, trafficking and modern slavery

Our mission

Our values and approach

Our work is rights based, child-centred, trauma informed and guided by the meaningful and ethical participation of the young people we support

Our charitable objectives:

The Charity’s objectives (“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

Sadly, as we report every year, 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 modern slavery in 2021.

Statistics from the National Referral Mechanism (NRM) – the UK’s official system for identifying victims of trafficking and modern slavery – show that 5,468 potential victims were exploited as children in 2021, which is more than a 10% increase on the previous year (4,946).

The figures were published two weeks after Russia’s invasion of Ukraine and followed a prediction from the EU that the conflict would displace seven million Ukrainians internally and drive a further four million out of the country as refugees, leaving many, especially children, at greater risk for trafficking and exploitation.

As has been the case since 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 in 2021, with 49% (2,689) of potential child victims identified.

Across all exploitation types, 79% of children identified as potential victims were boys (as it was in 2020). 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 boys recruited into drug supply and other criminal activity as victims rather than treating them as offenders.

Page 3

ECPAT UK

(A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued) for the year ended 31 March 2022

3. Child trafficking and exploitation in 2020-21 (continued)

In line with previous years, the vast majority of all child referrals to the NRM were of UK nationals accounting for 54% (2,981) of child referrals. The second most referred nationality for children was Vietnamese at 269 followed by Albanian children at 244.

Over the past year there have been a number of significant policy developments in relation to child trafficking, including the government’s New Plan for Immigration and the Nationality and Borders Bill. ECPAT UK continues to campaign for child victims of trafficking and exploitation to be better identified, better protected and have the support they need to build stable futures.

4. Research and public policy

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.

4.1 Building evidence

Over the last year we produced a number of reports and briefings to build evidence on the issue of child trafficking and exploitation. In December 2021 we launched our Snapshot Report with the Independent Anti-Slavery Commissioner, which includes ten joint recommendations for policy makers across government and previously unpublished sets of data on Independent Child Trafficking Guardians and prosecutions of offenders in cases of child trafficking. Our Snapshot Reports remains the only periodic overview of child trafficking in the UK since 2010.

We also conducted significant research in preparation for launching our new report with Missing People, When Harm Remains: an update report on trafficked and unaccompanied children going missing from care in the UK - the third publication in a series of studies examining looked after child victims of trafficking and unaccompanied children going missing from care. The methodology followed that of previous reports analysing data from Freedom of Information requests to local authorities, and finds that one in three trafficked children went missing from local authority care in 2020, which is a rise of 25% (24.9%) since 2018. Trafficked children who went missing in 2020 had an average of eight missing episodes that year, which is a significantly higher rate of going missing than the looked after children population of England, who had an average of 6.5 missing episodes in the same year. The report was cited in multiple articles by the national press as well as local and sector press.

In June 2021 we were pleased to welcome the UK government launch of scheme piloting local decision making on children’s status as victims of trafficking incorporating a number of our key recommendations and based on evidence from the review work we had done with the Independent Anti-slavery Commissioner on what works in multi-agency decision making and the implications for child victims of trafficking. The pilot tests whether decision making about whether a child is a victim of trafficking is more appropriate within existing safeguarding structures in local authorities than the National Referral Mechanism (NRM). It means that decisions are made by the local safeguarding partners of social workers, police and health so that decisions are aligned with existing child protection and support rather than Home Office officials.

We were delighted to be successful in our application with the University of Bedfordshire for Arts and Humanities Research Council funding through the Modern Slavery Policy and Evidence Centre (PEC) for participative research on Victim & Survivor support and recovery involving young victims of trafficking over one year. The Creating Stable Futures: Human Trafficking, Participation and Outcomes for Children project was launched in September 2021 and through the reporting year we established our steering group, engaged young people in the project design and further developed the action research elements and planning and delivery of fieldwork involving events across the country with young people as well as launching the Global Call for Evidence and work on the literature review.

4.2 Shaping policy and legislation

As active members of 16 national and international policy working groups, we play a key role in holding the government to account for its policies, legislation, and their impact on victims of child trafficking. These working groups include:

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ECPAT UK (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued)

for the year ended 31 March 2022

4.2 Shaping policy and legislation (continued)

The year was dominated by publication of the UK Government’s New Plan for Immigration and the subsequent passage of the Nationality and Borders Bill published at the beginning of July 2021 with significant changes to the identification, protection and support of victims of trafficking and modern slavery, which are not immigration matters. The Nationality and Borders Act 2022 gained royal assent at the very end of the parliamentary session and just outside of this reporting period on 28[th] April 2022, in response to which we published a statement reflecting on its passing and summarising key concerns and activity.

During the bill’s passage through parliament, ECPAT UK worked with many other organisations to raise concerns about child victims of trafficking and unaccompanied children at risk of exploitation leading the call for amendments to exempt children from the most harmful aspects of the legislation on modern slavery and age assessments and to ensure decision-making is based on children’s best interests which had widespread and cross-party support. Our efforts resulted in one of the very few government concessions on the whole Bill and the only concession on Part 5 on Modern Slavery in relation to disapplying section 58 to children so that they are not penalised for missing deadlines on disclosing their trauma via the new ‘trafficking notices’ that the Act creates.

Our work on the Bill included a statement on the Bill, briefings for parliamentarians at all stages starting with our Second Reading Briefing in the Commons and involvement in drafting and supporting amendments. We submitted evidence to both the Joint Committee on Human Rights legislative scrutiny and the Commons Bill Committee to which we were invited to give oral evidence in September. ECPAT UK was the only children’s organisation invited and one of the very few attendees who were focused on Part 5 of the Bill on Modern Slavery, followed in giving evidence by the UNHCR, the UN Special Rapporteur on Trafficking in Persons and the Independent Anti-slavery Commissioner (IASC) Dame Sara Thornton The Joint Committee on Human Rights legislative scrutiny published their report scrutinising Part 5 of the bill which cited ECPAT UK’s evidence ten times. We produced multiple briefings, often in partnership with leading voices across the anti-slavery and children’s sector. ECPAT UK led on a public letter to Ministers signed by expert organisations raising significant concerns about the impact of the Act on children.

One of our key focuses as the Bill progressed through parliament was our continued call as part of our Stable Futures Campaign for specific immigration leave for child victims compliant with the UK’s commitments to the Council of Europe Convention on Action Against Trafficking with a specific leave for child victims. Our updated briefing and new data regarding immigration outcomes for child victims showed that only 2% of child victims are granted this leave.

We welcomed the announcement in the Queen’s Speech of plans to publish the long-delayed Online Safety Bill, designed to ensure that internet users, especially children, are protected online, creating a duty of care to users of internet platforms including social media sites, in order to ‘make the UK the safest place in the world to be online’. We welcomed the fact that the UK will be among the first to legislate for better protections online but called on the government to ensure children outside the UK are also afforded protections and bring the abuse of children abroad by UK offenders within scope of the Online Safety Bill

We also undertook substantial work this year in relation to updating the child definitions in the Modern Slavery Guidance with some updated according to our proposals but those pertaining to contentious issues on the exploitation of children by non-state armed groups were refused. We continue to raise our concerns on this matter.

In May, we attended the 8[th] ECPAT International Assembly engaging in the governance review, approved new memberships and finalised the five year strategy.

Page 5

ECPAT UK

(A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued)

for the year ended 31 March 2022

5. Campaigns

Our year in numbers

ECPAT UK is one of the UK’s leading organisations campaigning against child trafficking and for children’s rights. Each year, we carry forward our long history of holding governments to account for child victims’ rights to protection and support.

5.1 Creating change together

As with other programmes of work, it was necessary to focus a great deal of ECPAT UK’s campaigning activity on the Nationality and Borders Bill. We highlighted the need for changes to the Bill via our existing Stable Futures campaign, which calls for trafficked children and young people to have stable futures.

Informed by the concerns and priorities of our Youth Advisory Group, the campaign was focused on the need for 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. In light of the developments in the New Plan for Immigration and Part 5 (on modern slavery) of the Nationality and Borders Bill, we focused the campaign’s on the issue of immigration leave for child victims of trafficking and the UK Government’s commitments to the Council of Europe Convention on Action against Trafficking (ECAT), as the government introduced temporary leave provisions in the bill for victims that were not compliant and that did contain specific provision for child victims. As the Nationality and Borders Bill progressed through parliament, our Stable Futures campaign focused on this specific call as well as rallying support around the call for specific consideration and protections for children.

Additionally, we joined 200+ organisations in raising concerns about the government’s fundamentally flawed public consultation on the plan, which did not meaningfully engage children and young people who will be affected by the proposals and made no assessment of how the proposals will impact children and young people’s rights and protection.

In response to the invasion of Ukraine, ECPAT UK joined ECPAT members in Europe in signing a statement urging governments across the continent to take immediate action to ensure that the rights of children caught up in the conflict in Ukraine are upheld and fully respected. As the invasion continued we also worked with 15 other expert organisations to identify key problems with the Homes for Ukraine scheme, and to propose action to ensure refugees (including children) are protected from trafficking and exploitation.

Towards the end of the final quarter, ECPAT UK also joined more than 150 organisations in calling on the government to scrap their plans to remove people seeking refuge to Rwanda and to pass responsibility for them to the Rwandan government. We also began work with children’s rights charities across the UK to make the case about children’s rights in the proposed plans to replace the Human Rights Act with a Bill of Rights

Page 6

ECPAT UK (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued) for the year ended 31 March 2022

5.1 Creating change together (continued)

Over the past year ECPAT UK has continued with its membership of a number of influential campaigning coalitions, including the Children’s Charities Coalition for Internet Safety (calling for increased protections and safeguarding of children online) Together with Refugees (which calls for a kinder, fairer and more effective approach to supporting refugees and trying to change the narrative), Children at Heart (with the National Children’s Bureau, prioritising children and young people at the heart of Covid19 recovery), the Keep Caring to 18 Campaign (to ensure that ever looked after child receives care at least until they are 18) and Campaign for a Commercial ‘ ’ Free Childhood action re instagram for kids .

In the summer of 2021 we become concerned very concerned about the situation in Kent and Brighton and Hove, where the Home Office had started directly placing unaccompanied children in hotels with no local authority responsible for their care and protection as required in The Children Act 1989. We signed this letter to the Secretary of State for Education in July with over 65 other charities and remained engaged consistently on this matter due to our concerns about the risks to children and young people of going missing and trafficking as well as the extremely concerning implications for our domestic children’s legislation.

5.2 Raising public awareness about trafficking and exploitation of children

Our youth campaigners in our Youth Advisory Group play a significant role in our campaigning and public awareness work and with the media – sharing their views and experiences and helping to shape public discussions through our work, challenging harmful reporting and imagery - as well as co-delivery on a number of public events including:

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; this year appearing in 33 pieces of print and broadcast coverage. . ECPAT UK has long monitored UK national offenders who travel abroad to offend against children or use online platforms to abuse children abroad with impunity. In March 2022 we took part in a BBC Radio 4 File on Four programme focused on this issue

Using social media, we reached new supporters with young people’s stories and the Stable Futures campaign, sharing our message with 43,989 people across Facebook, Twitter and Instagram. Our website had 40,062 users and its pages were viewed 93,302 times. We’re grateful to the 5,209 engaged supporters who receive our monthly e-updates and carry out campaigns and fundraising actions in support of our work.

6. Youth Programme

During COVID the sessions allowed us to think and talk about interesting topics. We thought about what makes healthy relationships and what makes relationships unhealthy. We felt we could speak openly about how COVID impacted us and we all went through our own period of struggling with COVID and lockdown. We felt safe to “check in” (share our feelings) at the beginning of each session without judgement. So glad we have a safe space every week to look forward to. The sense of community and being part of a family has been so helpful to us, through such a difficult time and through the COVID period.

ECPAT UK Youth Programme member

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 education and skills-building, training and employment opportunities, and voice their opinions about our work and the UK’s response to child trafficking.

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ECPAT UK

(A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued) for the year ended 31 March 2022

6.2 Supporting young people into stable futures

This year, despite COVID-19 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. We began the year with a review of the Youth Programme and identified a range of areas for consideration, including ages, geographical reach, venues and location, embedding trauma informed approaches, our approach to gender specific work, re-engagement of the Youth Advisory Group, balancing the needs of young parents and their children, and learning about accessibility in relation to COVID-19.

Ongoing COVID-19 restrictions presented a number of challenges, but ECPAT UK continued to coordinate sessions online and deliver group meetings, ESOL classes, 1-1 sessions and regular check-ins. We also facilitated successful outings and workshops, including lots of picnics in the warmer months, a successful trip to Thorpe Park and a session run by a former group member and biochemist student on COVID-19 myths and queries. As the year progressed we were able to hold more and more of our sessions in person.

The Youth Advisory Group was reinvigorated in the final quarter of 2021-22, with monthly meetings reinstated and face to face sessions creating an instant feedback mechanism for young people into ECPAT UK’s campaigning and parliamentary work around the Nationality and Borders Bill, and the development of the ECPAT UK strategy.

Youth Advisory Group members were engaged in a number of participation opportunities, including ECPAT UK’s governance and strategy more broadly, the recruitment process for the new Youth Programme Manager, the ‘In Conversation with Dave’ event, and our New Plan for Immigration event at which our Youth Support and Participation Officer spoke powerfully about how the new proposals would impact child victims. In September, there was a focus on ECPAT UK’s involvement in the Independent Anti-Slavery Commissioner and Cumberland Lodge event Practitioner response to child trafficking.

Work began on the project with the University of Bedfordshire with Modern Slavery Policy and Evidence Centre (PEC) Funding research into Victim & Survivor support (MSPEC project) to plan the research. Members of our Youth Advisory Group and a Youth Programme representative were involved in the steering group for the research.

With our new Youth Programme Manager in place, we were also able to review our monitoring and evaluation programme in partnership with Brunel University and the development of a new approach focused on collecting both quantitative and qualitative data. 2021-22 also marked an increased emphasis on building networks and relationships with local and other organisations, aiming to reach more young people who will benefit from ECPAT UK support through referrals as well as the range of opportunities on offer to them.

We also continued work on our London Youth Quality Mark Bronze Award as part of our Young Londoners Fund grant. The award is recognised as a significant step in making services for young people more sustainable and is a quality assurance scheme for organisations delivering work with young people.

This year the Youth Programme also celebrated its memberships’ many successes – university places and employment secured, investment for small businesses received, pregnancies and births, friendships and relationships and positive decisions on immigration status. Thanks to our Big Give Christmas campaign we were able to give hampers to all young people and their children filled with warming gifts to Youth Programme members and their children in December.

7. Training and practice development

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.

The course content was really good as were the materials. It was lovely that the young people shared some of their experiences and felt they could contribute in a safe environment. Phil was very knowledgeable and passionate

- Project worker, children’s social care

This course should be done by all carers in the UK and other organisations

Page 8

ECPAT UK (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued) for the year ended 31 March 2022

7. Training and practice development

Our year in numbers

Over the year, we continued to promote our training programme offering a mix of funded courses via Postcode Lottery, commissioned training and our direct offer, always with young people involved in co-delivery.

Challenges posed by COVID-19 restrictions meant that training stayed mostly online and did lead to decreased training delivery in the first quarter of the year, but the second quarter saw increased training from workshops delivered for the Foreign Commonwealth and Development Office, children's services in Malta, Norfolk constabulary and UK Visas and Immigration among others. Highlights from the second half of the year include ongoing training as part of the NRM devolved decision making process pilot for Islington and Camden borough partnership and a consultation on child trafficking guidance and training for the British Red Cross.

In the second half of the year we reviewed and refreshed our training course content, drawing on internal training and feedback sessions with ECPAT UK staff and valuable input from volunteers.

7.1 Youth participation in training

Today I feel so positive that I was able to share my experience with professionals. I felt so inspired to see their comments - I feel so good about myself it’s like I’m changing the world. This has been the best week ever. People say they will use the information we have shared in training has been the best thing ever

Through the training I learned a different perspective to safeguarding and all the things professionals do to protect young and vulnerable people.

-

ECPAT UK young co-trainers

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 and 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. All participating young people are thanked with vouchers for their invaluable contributions. We are hugely grateful to all of the young people who give their time and expertise - we could not run an effective training programme without you!

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

In October 2021 we participated in the multi-agency conference on practitioner responses to child trafficking in the UK, to coincide with the United Nations International Year for the Elimination of Child Labour – a joint initiative with the Independent Anti-slavery Commissioner involving academics, civil society and survivor organisations and policymakers. Our role on the Steering Group allowed us to promote the importance of hearing directly from young people themselves. We facilitated a session with two members of our Youth Advisory Group who also asked questions of The Right Hon Theresa May during an ‘in conversation’ session. The final report was launched in April 2022.

Page 9

ECPAT UK (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued) for the year ended 31 March 2022

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

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 economic uncertainty following on from the uncertainties caused by Brexit and the pandemic and now the cost of living crisis, charities are facing enormous challenges to secure the funding they need. We are very 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

Adint Charitable Trust City Bridge Trust Edward Cadbury Charitable Trust Greater London Authority Young Londoner’s Fund Henry Smith Charity Lloyds Bank Foundation The Mayor’s Office for Policing and Crime (MOPAC) Paul Hamlyn Foundation Steel Charitable Trust The Bromley Trust The Brook Trust The Childhood Trust The Society of the Holy Child Jesus The Wyndham Charitable Trust Hilden Charitable Trust United Nations Voluntary Trust Fund on Contemporary Forms of Slavery

…and those who choose to remain anonymous

8.2 Individual giving

We are incredibly grateful for the generosity of all the individuals who support our work financially. In 2021-22 we received 888 individual donations totalling £21,046. This includes £8,650 from 49 regular donors and a further 120 people who gave one off donations gave a total of £12,396. 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.

In 2021-22, we participated in two Big Give challenges, 5K May and Hopeful Futures photography competition challenges (the latter two of which brought in £431.25 including Gift Aid). We raised £5,450 during the summer Big Give Champions for Children Week (exceeding our target), and a further ££6805.75 (including gift aid) for the Big Give Christmas Challenge with 59% of donations coming from new donors. Following these successes, we began preparations for the Big Give Children’s Champion in summer 2022 to focus on our Thrive project, increasing therapeutic support within our Youth Programme.

Page 10

ECPAT UK (A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued)

for the year ended 31 March 2022

9. Our plans for 2023 and beyond

Our focus this year has been on consolidation as well as thriving. We continue to adapt to and learn to live with huge uncertainty, on top of this the mounting economic crisis and social pressures, shifting political landscape and priorities and a rapid pace of change means that 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 and we are optimistic that the review of our strategy this year will enable us to do that as best we can.

We are grateful to funders who have adapted approaches to respond to uncertainty and reviewed their own strategies to support existing and new funding programmes that in the coming years will help us to realise our strategic priorities:

  1. Positive outcomes for children & young people in particular focusing on promoting the emotional well-being and mental health needs of children and young people who have been trafficked and better routes to legal advice and representation

  2. Improvements in law, policy and practice for children and young people through integrated projects and campaigns including justice for children both inside and outside of the UK and increasing our capacity for rights based campaigning

  3. Promote expert information, research, training and practice development including modelling and sharing excellence in participation, coproduction and delivery with young people

  4. Maintain and develop a robust organisation using our strengths to maximum impact and in which our values are fully embedded including a focus on safety, quality and anti-discrimination in our organisational structures

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.

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 principal 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.

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ECPAT UK

(A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued)

for the year ended 31 March 2022

Financial review

Total income for the year was £474,369 (2021: £529,498, 2020: £340,483), a 10% decrease on the previous year. Total expenditure for the year was £378,044, (2021: £379,022, 2020: £501,436), consistent with the previous year. After transfers between funds there was a net surplus of £94,865 (2021: £122,611, 2020: net surplus deficit of £142,543) on unrestricted funds and a net surplus of £1,460 (2021: surplus of £27,865, 2020: net surplus deficit of £18,410) on restricted funds

ECPAT UK would like to thank all its grant funders and individual donors for their support over the past year including: Adint Charitable Trust, City Bridge Trust, Edward Cadbury Charitable Trust, Greater London Authority Young Londoner’s Fund, Henry Smith Charity, Lloyds Bank Foundation, The Mayor’s Office for Policing and Crime (MOPAC), Paul Hamlyn Foundation, Steel Charitable Trust The Bromley Trust, The Brook Trust, The Childhood Trust, The Society of the Holy Child Jesus, The Wyndham Charitable Trust Hilden Charitable Trust, United Nations Voluntary Trust Fund on Contemporary Forms of Slavery, and those who wish to remain anonymous.

Asset cover for funds

Note 16 sets out an analysis of the assets attributable to the various funds.

Reserves

The reserves at the end of March 2021 were at £326,712 (2021: £230,387, 2020: £79,911), of which £20,640 (2021: £30,636, 2020: £2,771) were restricted funds and £306,072 (2021: £199,751, 2020: £77,140) 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 £111,273. 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 recent years, we presently find ourselves with adequate target reserves; our focus now is to maintain that situation.

Where a specific reserve falls into deficit ECPAT UK will consider likely future funding and if necessary cover any deficit from unrestricted income.

Trustees’ responsibilities for the financial statements

The trustees (referred to as trustees but who are also directors of the society 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). Company law requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Risk management

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

Page 12

ECPAT UK

(A Company Limited by Guarantee)

REPORT OF THE TRUSTEES (incorporating Directors’ Report) (continued) for the year ended 31 March 2022

Risk management (continued)

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.

Going concern

The Trustees recognise that 2021-22 has continued to be challenging but under Patricia Durr’s leadership the charity’s ability to be flexible and responsive puts us in a good place and makes us more robust and adaptable to further change.

Over the year our fundraising developed as planned and the maintenance of income reflects that – despite all the challenges we are facing and the long-term financial downturn 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 safeguarding and child protection policy and safeguarding procedures for children and adults at risk which is reviewed annually. This includes a name designated safeguarding lead who is responsible for safeguarding 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 safeguarding and child protection policy is on our website.

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 2022, 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 Cocke, Vellacott & Hill are appointed as auditors of the company was approved at a general meeting.

Signed on behalf of the Board:

Name: Liz Barratt Position: Chair Dated: 23 December 2022

Page 13

ECPAT UK (A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE ECPAT UK

Opinion

We have audited the financial statements of ECPAT UK for the year ended 31 March 2022 which comprise the statement of financial activities, summary income & expenditure, statement of financial position, statement of cash flows and notes to the financial statements including a summary of significant accounting policies. The financial framework that has been applied in their preparation is 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”.

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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 entity'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 directors 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 directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 14

ECPAT UK (A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ECPAT UK (continued)

Opinions on other matters prescribed by the Companies Act 2006

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

Other matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ Report, included within the Trustees’ Report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 11 the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to 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.

We have obtained an understanding of the charitable company’s policies and procedures through discussions with senior management and trustees.

We also drew on our existing understanding of the work that the charitable company does and the sector that it operates in.

We understand that the charitable company complies with its responsibilities through close involvement of senior management and trustees in the day-to-day running of the business. Were there any litigation or claims they would come to the attention of the senior management directly.

The charitable company also holds regular board meetings at which all such matters are discussed if applicable. We have reviewed the minutes of all board meetings and no irregularities were identified. Key management information is reported to the Chair by senior management at regular bimonthly meetings, via regular update reports and as when necessary when more urgent matters arise as well as being discussed in detail at board meetings.

Page 15

ECPAT UK (A Company Limited by Guarantee)

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF ECPAT UK (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

In the context of the audit, we considered those laws and regulations which determine the form and content of the financial statements, which are central to the charitable company’s ability to conduct business and where failure to comply could result in material penalties.

We have considered the disclosure requirements of the Companies Act 2006 and the Charities SORP 2019 as part of our finalisation processes.

We discussed the possibility of fraud with senior management and whether they had any knowledge of any actual, alleged or suspected fraud. We designed our audit tests to consider controls and tested a sample of financial transactions. We considered the timing of recognition of income from grants.

In common with all audits under ISAs (UK) we also performed specific procedures to respond to the risk of management override. We assessed the charitable company's control environment is adequate for the size and operating model of such a charitable company. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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.

DAVID WARREN (Senior Statutory Auditor)

For and on behalf of COCKE, VELLACOTT & HILL Chartered Accountants and Statutory Auditor Unit 28 City Business Centre Lower Road LONDON SE16 2XB

23 December 2022

Page 16

ECPAT UK (A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (incorporating Income and Expenditure Account) for the year ended 31 March 2022

Current financial year

Notes
Income from:
Donations & legacies
4
Charitable activities
5
Other income
6

Total income
Expenditure on
Costs of raising funds7
Expenditure on charitable activities8
Other12
Total resources expended

Net incoming/(outgoing) resources before transfers
Gross transfers between funds
16
Net income/(expenditure) for the year/
Net movement in funds
Fund balances at 1 April 2021
16
Fund balances at 31 March 2022
16		 Unrestricted
funds
£
22,546
225,630
-
248,176
(27,925)
(125,724)
(112)
(153,311)
-

-
(113,201)
94,865
211,207
306,072		 Restricted
funds
£
3,000
223,193
-
226,193
-
(224,733)
-
(224,733)
-
-

(224,733)
1,460
19,180
20,640		 Total
Total
2022
2021
£
£
25,546
55,713
448,823
463,655
-
10,130

474,369
529,498

(27,925)
(43,104)
(350,007)
(332,932)
(112)
(2,986)

(378,044)
(379,022)

-
150,476

-
-


(378,044)

96,325
150,476
230,387
79,911

326,712
230,387

All of the operations undertaken by the charitable company during the current and preceding year are continuing operations. The charitable company has no recognised gains and losses other than those included in the results above.

The notes on pages 21 to 31 form part of these financial statements

Page 17

ECPAT UK (A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (incorporating Income and Expenditure Account) (continued) for the year ended 31 March 2022

Prior financial year

Notes
Income from:
Donations & legacies
4
Charitable activities
5
Other income
6
Total income
Expenditure on
Costs of raising funds7
Expenditure on charitable activities8
Other12
Total resources expended
Net incoming/(outgoing) resources before transfers
Gross transfers between funds
16
Net income/(expenditure) for the year/
Net movement in funds
Fund balances at 1 April 2020
16
Fund balances at 31 March 2021
16		 Unrestricted
fund
£
50,713
243,637
10,130
304,480
(43,104)
(145,664)
(2,986)
(191,754)
112,726

21,341
134,067
77,140
211,207		 Unrestricted
fund
£
50,713
243,637
10,130
304,480
(43,104)
(145,664)
(2,986)
(191,754)
112,726

21,341
134,067
77,140
211,207		 Restricted
funds
£
5,000
220,018
-
225,018
-
(187,268)
-
(187,268)
37,750
(21,341)
16,409
2,771
19,180		 Total
2021
£
55,713
463,655
10,130
529,498
(43,104)
(332,932)
(2,986)
(379,022)
150,476
-
150,476
79,911
230,837

All of the operations undertaken by the charitable company during the current and preceding year are continuing operations. The charitable company has no recognised gains and losses other than those included in the results above.

The notes on pages 21 to 31 form part of these financial statements

Page 18

ECPAT UK

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL POSITION

as at 31 March 2022

Notes
Fixed assets:
Tangible Fixed Assets
13
Current assets:
Debtors
14
Cash at bank and in hand
Total current assets
Liabilities:
Creditors:Amount falling due
within one year
15
Net current assets (liabilities)
Total net assets
Income funds
Restricted funds
16
Unrestricted funds
17
Total charity funds		 2022
£
3,139
44,286
300,616
344,902
(21,329)
323,573
326,712
20,640
306,072
326,712		 2021
£
4,893
32,503
264,263
296,766
(71,272)
225,494
230,387
19,180
211,207
230,387

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

The financial statements were approved by the Board of Directors on 23 December 2022 and signed on their behalf by:

Liz Barratt (Trustee)

Registered Company Number: 05061385

The notes on pages 21 to 31 form part of these financial statements

Page 19

ECPAT UK (A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS

for the year ended 31 March 2022

Notes
Cash flows from operating activities:
Net income/(expenditure) for year
Adjustments for:
Depreciation
13
(Gains)/losses on sale of fixed asset investments
Movements in working capital:
(Increase)/decrease in debtors14
Increase/(decrease) in creditors
15
Net cash from/(absorbed by) operating activities
Cash flows from/(absorbed by) investing activities
Purchase of tangible fixed assets
13
Net cash provided by (used in) financing activities
Net increase/ (decrease) in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period		 2022
£
96,325
1,642
112
(11,783)
(49,943)
36,353
-
-
36,353
264,263
300,616		 2021
£
150,476
2,986
2,748
(14,115)
16,181
158,256
(4,446)
-
153,810
110,453
264,263

The notes on pages 21 to 31 form part of these financial statements

Page 20

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS

for the year ended 31 March 2022

1. General information

ECPAT UK (hereafter referred to as ‘the charity’) is a charitable company limited by guarantee, incorporated and domiciled in England. The registered office is 34 Wharf Road, London, N1 7GR.

2. Principal accounting policies

(a) Basis of accounting

The financial statements of the charitable company are 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 United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019) – Charities SORP (FRS 102), the Companies Act 2006, and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102).

The charity meets the definition of a public benefit entity under FRS 102.

The financial statements have been prepared under the historical cost convention and are prepared in sterling which is the functional currency. Assets and liabilities are recognised at historical cost or transaction value unless otherwise stated in relevant accounting policy notes. Monetary amounts are rounded to the nearest £.

(b) Going concern

The trustees have continued to consider the effect of the Covid-19 outbreak 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.

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 Gift Aid claim after the financial year and recorded accordingly as an accrual.

(d) Resources expended

Resources expended are recognised in the period to which they relate. Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred

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 to 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.

Page 21

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS (continued) for the year ended 31 March 2022

  1. Principal accounting policies (continued)

  2. (e) Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in the 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 restricted funds are set out in the notes to the financial statements.

Operating lease rental charges are charged to the statement of financial activities on a straight line basis over the term of the lease.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is provided at the following rates:

Fixtures and fittings - 25% per annum straight line Computers - 25% per annum straight line

The gains or losses 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.

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).

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.

(j) 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.

(k) Retirement benefits

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

(l) Government grants

Government grants are recognised at the fair value of the amount received or receivable when there is reasonable assurance that the government conditions will be met, and the grants will be received. Government grants were 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.

The charity undertakes charitable activities and does not carry out any trading activities. It is therefore considered that the company is not liable to taxation on its activities.

3. General information

The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Page 22

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS (continued) for the year ended 31 March 2022

4. Donations and legacies
Unrestricted
Restricted
Total
funds
Funds
2022
£
£
£
Donations and gifts
22,546
3,000
25,546
5. Charitable activities
Current year
Policy, research
Training and
Youth
and campaigns
information
programme
£
£
£
Project income
282,113
47,276
119,434
Analysis by fund
Unrestricted funds
182,719
19,113
20,798
Restricted funds
99,394
28,163
95,636

Total Resources
282,113
47,276
119,434
Previous year
Policy, research
Training and
Youth
and campaigns
information
programme
£
£
£
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

Total Resources
328,022
48,857
86,776		 Total
2021
£

55,713

Total
2022
£
448,823
225,630
223,193
448,823

Total
2021
£
463,655
243,637
220,018
463,655

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 28.

Following an organisational and programme strategy review work is now recorded as relating to ‘Policy, Research and Campaigns’ (previously referred to as ‘Campaigning and Advocacy’).

Page 23

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS (continued)

for the year ended 31 March 2022

6. Other income

Other income

Unrestricted Total Total
Funds 2022 2021
£ £ £
- - 10,130

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

7. Raising funds

Fundraising and publicity Staff costs

Unrestricted Total Total
Funds 2022 2021
£ £ £
27,925 27,925 43,104

Page 24

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS (continued)

for the year ended 31 March 2022

8. Charitable activities

Current year
Policy, research
Training and
Youth
and campaigns
information
programme
£
£
£
Staff costs
87,900
71,404
91,504
Depreciation and impairment
1,642
-
-
Other costs
40
736
37,017

89,582
72,140
128,521
Share of support costs (see note 9)
15,861
8,488
26,702
Share of governance costs
4,357
2,178
2,178

109,800
82,806
157,401

Analysis by fund
Unrestricted funds
6,245
52,832
66,197
Restricted funds
103,555
29,974
91,204

Total Resources Expended
109,800
82,806
157,401
Previous year
Policy, research
Training and
Youth
and campaigns
information
programme
£
£
£
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 9)
10,434
6,705
21,733
Share of governance costs (see note 9)
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

Total Resources Expended 2021
113,433
78,734
140,765
Total
2022
£
250,808

1,642
37,793
290,243
51,051
8,713
350,007
125,274
224,733
350,007

Total
2021
£
250,581

2,748
29,318
282,647
38,872
11,413
332,932
145,664
187,268
332,932

Page 25

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS (continued) for the year ended 31 March 2022

9. Support costs

Current year
Other governance costs
Support costs
Audit fees
Analysed between
Charitable activities
Previous year
Other governance costs
Support costs
Audit fees
Analysed between
Charitable activities		 Support Governance
costs
costs
£
£
-
13
51,051
-
-
8,700
51,051
8,713
51,051
8,713
Support Governance
Costs
costs
£
£
-
13
38,872
-
-
11,400
38,872
11,413
38,872
11,413		 Total
2022
£

13
51,051
8,700
59,764
59,764
Total
2021
£
13
38,872
11,400
50,582
50,285

10. Trustees

None 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 ( 2021: none ).

Page 26

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS (continued)

for the year ended 31 March 2022

11. Employees
The average number of employees analysed by function was:
Campaigning and advocacy
Youth programme
Training
Fundraising
Their total remuneration including benefits in kind of
£nil (2021 - £nil)) was:
Salaries

Social security costs

Pension costs		 2022
Number

2
3
2
1
8
2022
£
245,846

19,884

13,003
278,733
 2021
Number
2
3
2
1
8
2021
£
259,685
21,022
12,978

293,685

No employee earned more than £60,000 per annum. There were no termination or redundancy payments in the year (2021: 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 £81,750 ( 2021: £75,798 ).

12. Other expenses

Other expenses
2022 2021
£ £
Net loss on disposal of tangible fixed assets – unrestricted funds item 112 2,986

Page 27

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS (continued) for the year ended 31 March 2022

13. Tangible fixed assets

Fixtures and
Computer
fittings
equipment
£
£
Cost or valuation
At 1 April 2021
919
18,462
Additions at cost
-
-
Disposals
-
(112)
At 31 March 2022
919
18,350
Accumulated depreciation
At 1 April 2021
383
14,105
Charge for year
230
1,412
Disposals
-
-
At 31 March 2022
613
15,517
Net book value 31 March 2022
306
2,833
Net book value 31 March 2021
536
4,357
14.Debtors
2022
£
Trade debtors
42,330
Other debtors
1,270
Prepayments and accrued income
686
44,286
 Total
£
19,381
-
(112)
19,269
14,488
1,642
-
16,130
3,139
4,893
2021
£
20,300
1,270
10,933
32,503

Page 28

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS (continued)

for the year ended 31 March 2022

15.Creditors:Amounts falling due within one year
Social security and other taxes
Trade creditors
Other creditors
Accruals and deferred income
16. Restricted Funds
Balance
1st April
2021
Current year
£
Policy, research and campaigns
29,608
Training and Information
-
Youth programme
(10,428)
19,180
Balance
1st April
2020
Previous year
£
Youth Programme
(8,685)
Policy, research and campaigns
-
EC React Project
4,165
MSIF
4,918
DFE Refugee Council
2,373
Training
-
2,771		 Incoming
resources
and gains
£
99,394
28,163
98,636
226,193
Incoming
resources
and gains
£
91,776
110,611
-
-
-
22,631
225,018		 Resources
expended
and losses
£
(103,555)
(29,974)
(91,204)
(224,733)
Resources
expended
and losses
£
(93,519)
(61,003)
-
-
-
(32,746)
(187,268)		 2022
£
7,955
5,551
-
7,823
21,329
Transfers
between
funds
£
-
-
-
-
Transfers
between
funds
£
-
(20,000)
(4,165)
(4,918)
(2,373)
10,115
(21,341)		 2021
£
6,733
4,608
1,152
58,779
71,272
Balance
31st March
2022
£
25,447
(1,811)
(2,996)
20,640
Balance
31st March
2021
£
(10,428)
29,608
-
-
-
-
19,180

Purposes of restricted funds

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

Training and Information relates to specific funding for training programmes.

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

EC React project relates to grants received for development of training for those working in the EU with trafficked children. The project finished prior to the year end 31 March 2021.

Page 29

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS (continued) for the year ended 31 March 2022

16. Restricted funds (continued)

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. The project finished prior to the year end 31 March 2021.

DFE/Refugee Council relates to funding received to train foster carers and safeguard separated children. This grant is direct government assistance. The project finished prior to the year end 31 March 2021.

Training relates to grants received to deliver specialist training on child trafficking and exploitation. This activity is usually unrestricted and paid for from generated funds. In the year ended 31 March 2021 there was a specific restricted project.

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 in 2021 relates to the derestriction of income totalling £20,000. The transfers out of EC React Project, MSIF and DFE Refugee Council in 2021 relate to surplus funds transferred to general overheads. Transfers in to restricted funds from unrestricted funds are to cover project overspends.

17 . Analysis of net assets between funds

Current year
Unrestricted Restricted
funds
funds
£
£
Fund balances at 31 March 2022 are represented by:

Tangible assets
3,139
-
Current assets
302,933
20,640

306,072
20,640

Previous year
Unrestricted
Restricted
funds
funds
£
£
Fund balances at 31 March 2021 are represented by:
Tangible assets
4,893
-
Current assets
206,314
19,180

211,207
19,180		 Total
2022
£

-
-
326,712
Total
2021
£
4,893
225,494
230,387

Page 30

ECPAT UK (A Company Limited by Guarantee)

NOTES TO THE ACCOUNTS (continued) for the year ended 31 March 2022

18. Operating Lease Commitments

At the reporting year 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		 2022
£
9,924
2,142
12,066
 2021
£
9,924
2,958
12,882

Lease payments recognised as an expense in the year amounted to £36,024 ( 2021: £17,400 )

19. Retirement benefit scheme

Defined contribution scheme

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 £13,003 ( 2021: £12,978 ).

20. Related party transactions

There were no disclosable related party transactions during the year ( 2021: none ).

Aggregate donations received from trustees in the year totalled £nil ( 2021: £nil ).

Page 31