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2023-06-30-accounts

Charity registration number 1114784

Company registration number 05697939 (England and Wales)

SUNNY DAYS CHILDRENS FUND

(A COMPANY LIMITED BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr William Potter (Chair) Mr Wayne Potter Mr John Mcclymont Secretary Mr William Potter Charity number 1114784 Company number 05697939 Registered office 4 Cressing Road Braintree Essex CM7 3PP Auditor KLSA LLP Kalamu House 11 Coldbath Square London EC1R 5HL Bankers National Westminister Bank Plc 47 High Street Braintree Essex CM7 1JT

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) CONTENTS

Page
Trustees report 1 - 4
Statement of Trustees responsibilities 5
Independent auditor's report 6 - 9
Statement of financial activities 10
Balance sheet 11
Notes to the financial statements 12 - 21

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2023

The Trustees present their annual report and financial statements for the year ended 30 June 2023.

The accounts have been prepared in accordance with the accounting policies set out in note 2 to the accounts and comply with the charity's governing document, 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)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The objects of the Charity as set out in its constitution are:

To promote any charitable purposes for the benefit of children in the UK as the Trustees in their absolute discretion think fit, in particular but without prejudice to the foregoing, for the benefit of those who are sick or disabled, to provide advocacy/information and emotional support to children and their families, the provision of financial assistance to individuals, including holidays for themselves and their families, and to support the charitable work of similar institutions.

Public benefit

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Significant activities and achievements against objectives

Significant activities and achievements against objectives:

These objectives are pursued through a range of activities in the different areas of the Charity's work which are summarized below.

Grants

The Charity continues to make grants to families of children that meet the criteria set out in our objectives. These grants include but are not limited to costs for: medical equipment, hospital travel expenses, educational equipment, financial support and crisis break holidays.

Support & Advocacy

The Charity has more than 2,000 families that it has directly helped by way of a grant, holiday or support. It also provides support and advice to countless others. This may be in the form of emotional support, advice to ensure they are claiming the correct benefits, help in locating alternative funding and in some case "just being there for a chat".

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Holiday Homes

The Charity’s two Holiday homes have again proved to be a great success.

The benefits these breaks provide to the families are immeasurable and below are just a few of the comments that the Charity have received from families:

“I just wanted to thank you for a lovely break away over the half term. My family and I had a lovely time. Everyone was friendly and welcoming. Thank you once again”

“Just wanted to drop a note to say a huge thank you for the caravan. We had such a lovely week our friends also came and hired a caravan to spend a special week with us. Thank you from all of us once again”

“Thank you very much for giving us the chance to create new wonderful memories with Luca in Clacton on sea, Essex. We had a beautiful and busy week at "The Orchards" filled with lots of fun, activities and a bit of rest in between. I will attach few photos from our holiday to reflect how was our little break. Grateful forever.”

“Thanks a lot, for giving us the us the opportunity to have a great time in your holiday home. My children Abdul and Hadi are never settled or calm anywhere else, but in your holiday home they loved it and just kept smiling and enjoyed themselves so much. I am really thankful to you. I really appreciate your kind heart and efforts that you do for my family. If we could go again next year, it would be big favour for my children and it really means a-lot for us as a whole family. After an exhausted time and high responsibilities of 2 special need children, I feel a hope that my children will get better when they smile and stay calm for few days in your holiday home. Again, thank you sooooo much for everything you did for us. We Really appreciate it, thanks.”

“Thank you all at Sunny Days for the amazing holiday we had at the Orchids Holiday Park, the facilities and staff were fantastic. We especially enjoyed the use of the owner’s pool, it was much quieter than the normal one. Thanks again to everyone.”

“We were so grateful to be awarded a holiday by Sunny Days. We have had a terrible last 12 months with hospital appointments etc. This time together as a family was much needed and appreciated. Your staff were very helpful right from the initial contact all the way through to the holiday itself, with your help we were able to book lots of activities for us to do as a family. Thank you so much to everyone at Sunny Days.”

Website

Our website (www.sunnydaysfund.org.uk) has continued to be a good source of information for families to contact the Charity. It also receives a large amount of our donations directly from the link on the website.

The majority of families are referred to the Charity through Hospital and Local Council Social Workers, but some have applied directly through the website and contact through fundraising activities. The Charity confirms all the relevant medical conditions of the children through either the family GP or the Hospital attended.

The Trustees are mindful of the public benefit tests for charities, and confirm they have complied with the duty in the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Financial review

The Trustees have continued to notice a significant reduction in our telephone fundraising since the pandemic. Many small businesses have closed down and we have lost many of our regular donors. We also continue to notice that the average amount raised by individuals is smaller than before the pandemic.

We have again made an increase in grants and donations received from our applications to other charitable organisations.

The Charity generated total incoming resources for the year of £385,458 (2022: £342,351); all this income is selfgenerated through telephone appeals and grant applications.

The Charity’s total expenditure for the year was £399,297 (2022: £362,975) including spending on charitable activities of £284,906 (2022: £262,679), leaving net (expenditure) / income for the year of £(12,605) (2022: £2,389).

The Charity’s General Reserves brought forward were £138,681, giving General Reserves carried forward of £126,076. There are no Restricted Reserves.

The Trustees are of the opinion that the Charity’s main aim is to continue to provide support, advocacy etc. for existing and potential future families but will also continue to make direct grants and holidays where appropriate and where funds permit.

The Trustees are satisfied with the Charity’s financial position at the year end.

Reserves policy

The majority of the Charity's income is from daily/weekly fundraising activities and it does not rely on large corporate grants or bequests. This allows the Charity to have a definite indication of our regular income. We endeavour to maintain between £40,000 and £50,000 in reserves for unforeseen circumstances. The Trustees believe this is sufficient to meet the Charity's ongoing obligations.

Major risks

The Trustees have formally assessed business risks, and this has involved assessing the types of risk facing the Charity, prioritising them in terms of the potential impact and likelihood of occurrence, and identifying means of mitigating the risks. As part of this process the Trustees have assessed the adequacy of the Charity’s internal controls and the costs of operating particular controls relative to the benefits obtained.

Plans for future periods

The Charity intends to continue to build on its strong links with the Great Ormond Street Hospital and other children’s hospitals throughout the country. We will also continue to support Council Social Workers nationally. Our intention is to also continue supporting our existing and future families through our support and advocacy team.

Structure, governance and management

Sunny Days Children's Fund is constituted as a registered Charity and a company limited by guarantee and has no share capital, with the Charity Trustees being directors of the company. The liability of each member in the event of winding up is limited to £10.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023 Truslees are nomally elected 81 the Annual General Meeting IAGM), when 8 third of Truslttes ratire by rotation, but Can also be appointed during the year to serve until the next AGM. when they h8V8 to sland for re-election. All major deci510ns that have financial or staffing implications are made by the Board ol Trustees. Salaries and other running costs are agreed as part of thè annual budgètary process. Mr Willlam Potter Mr Tony Jones Mrwayne Potter Mf John Mcdymonl IDeceased 12 July 20231 (Appointed 14 July 20231 RecnJilm8nt and appolnlmènt of trust8os The Board meets lomally IWO tirnes duTlng the year. and in addition the CEO has daily ￿ntact with thè Trusl$ès. The formal meetings cover staffing. financE. work reports, policy and broader slralegic issues. Audltor In accordance with the ￿MpanY'S artides, a resolution proposing that KLSA LLP be re8ppolnted as auditor of the company wlll be pul al g Gener81 Meellng. Dl•clo8ur• of Infomiatlon to •udltor Each of the Tru$tee5 has confirmed that there 18 no information of whlch they are aware whlch is relevant lo the audit, bul of which the auditor is unaware. They have further confirmed that they have 18ken appropriate $tep8 10 id*ntify such relev8nl information and lo establish Ihal the auditor is aware of such inf¢rmalion. Th¢ Trustees report was approved by the 8oArd of Trustees. Mr Wi1118m Poller Ch¥lr of the Tru8tee¥ 11 January 2024

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 30 JUNE 2023

The Trustees, who are also the directors of Sunny Days Childrens Fund 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.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SUNNY DAYS CHILDRENS FUND

Opinion

We have audited the financial statements of Sunny Days Childrens Fund (the ‘charity’) for the year ended 30 June 2023 which comprise the statement of financial activities, the balance sheet and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company’s ability to continue as going concern.

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:

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF SUNNY DAYS CHILDRENS FUND

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 directors' report included within the Trustees report.

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 statement of Trustees responsibilities, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF SUNNY DAYS CHILDRENS FUND

Extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

To address the risk of non-compliance with laws and regulations, we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the charitable company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charities legislation) and taxation legislation (including payroll taxes) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.

Secondly, the charitable company is subject to grants terms and conditions where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the termination of grants. We identified the following areas as those most likely to have such an effect: Charity Commission inspections and health and safety legislation regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

We communicated identified fraud risks and non-compliance with laws and regulations with those charged with governance, throughout the audit team and remained alert to any indications throughout the audit.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF SUNNY DAYS CHILDRENS FUND

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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 and regulations made under that Act. 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 its members as a body, for our audit work, for this report, or for the opinions we have formed.

Shilpa Chheda (Senior Statutory Auditor) for and on behalf of KLSA LLP

11 January 2024

Chartered Accountants Statutory Auditor

Kalamu House 11 Coldbath Square London EC1R 5HL

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2023

Unrestricted Unrestricted
funds funds
2023 2022
Notes £ £
Income and endowments from:
Charitable activities 4 385,458 342,351
Investments 3 684 30
Other income 5 550 18,205
Total income 386,692 360,586
Expenditure on:
Raising funds 6 114,391 100,296
Charitable activities 7 284,906 262,679
Total expenditure 399,297 362,975
Net expenditure and movement in funds (12,605) (2,389)
Reconciliation of funds:
Fund balances at 1 July 2022 138,681 141,070
Fund balances at 30 June 2023 126,076 138,681

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET AS AT 30 JUNE 2023 2023 2022 Flxtd assets Tangible a55etg 13 20,861 26.303 Current as•ets Debtors Cash 81 bank and in hand 14 2,820 107.252 2,413 114,416 110,072 116,829 Credltorj: amounts folllng du• wlthln on• year 15 4.857 4,4S1 Nel currenl o$sets 105,21S 112,378 Totsl ••••ts le•• current Ilabilltle• 126,076 138,681 Th• fund• ol th• charity Unreslrfcled funds 126.078 138,881 126,076 138,881 Tho finan¢l81 statements were approved by the Trustees on 11 January 2024 Mr William Poller Tru8tee Company reglslration number 05697939 (England and Walès)

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) BALANCE SHEET (CONTINUED)

AS AT 30 JUNE 2023

1 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

Useful economic lives of tangible assets

Management reviews the useful lives and residual values of the tangible assets on a regular basis. During the financial year, the directors determined no significant changes in the useful lives and residual values.

Staff costs accrual

The monetary liability for employees' accrued holidays and management approved bonus at the reporting date is recognised as an expense accrual.

2 Accounting policies

Charity information

Sunny Days Childrens Fund is a private company limited by guarantee incorporated in England and Wales. The registered office is 4 Cressing Road, Braintree, Essex, CM7 3PP.In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements.

The principal activity of the charity is the raising of funds to help children under the age of 18 years with a wide range of adverse medical conditions and all other life hindering conditions.

2.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The accounts have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

2 Accounting policies

(Continued)

2.2 Going concern

The charity is able to fund its operational costs and meet its liabilities, through utilisation of existing cash resources and with continued support from grants and donations. The charity is therefore dependant upon its sponsors and donors for continuing financial support. As at 30 June 2023, the charity's net (expenditure) was (£12.6k) (2022: £2.3k). The charity's net current assets were £105k (2022: £112k).

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3 Charitable funds

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

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

2.4 Incoming resources

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income, after any performance conditions have been met, when the amount can be measured reliably and when it is probable that the income will be received.

Income from donations is recognised on receipt, unless there are conditions attached to the donation that require a level of performance before entitlement can be obtained. In this case income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail of the contribution of volunteers to the charity is given in the Trustees' Annual Report.

2.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

2 Accounting policies

(Continued)

All expenditure is accounted for on an accruals basis. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

• Expenditure on charitable activities includes those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose

Grants payable to third parties are included in expenditure on charitable activities. Where unconditional grants are made, these amounts are recognised when a constructive obligation is created, typically when the recipient is notified that a grant will be made to them. Where grants are conditional on performance, then the grant is only recognised once any unfulfilled conditions are outside of the control of the charity.

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, and project management costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

2.6 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. Cost includes costs directly attributable to making the asset capable of operating as intended.

Assets with a cost of less than £200 are expensed.

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:

Freehold property 10% on a straight line basis Fixtures and fittings 25% on a reducing balance basis

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 the statement of financial activities.

2.7 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).

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

2 Accounting policies

(Continued)

2.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.9 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.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

2.10 Taxation

The charity is an exempt charity within the meaning of schedule 3 of Charitites Act 2011 and is considered to pass the tests set out in Paragraph 1 Scehdule 6 of the Finance Act 2010. It therefore meets the definition of a charitable company for UK corporation tax purposes.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

2 Accounting policies

(Continued)

2.11 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.

3 Income from investments

Interest receivable
Charitable activities
General donations and telephone appeals
Gift Aid recoverable		 Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
684
30
2023
2022
£
£
353,974
304,824
31,484
37,527
385,458
342,351		 Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
684
30
2023
2022
£
£
353,974
304,824
31,484
37,527
385,458
342,351
2022
£
304,824
37,527
342,351

4 Charitable activities

5 Other income

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Other income 550 18,205

Current year other income related to government subsidy that was received in the bank. The previous year other income relates to the furlough grant income received for staff from the Coronavirus Job Retention Scheme.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

6 Expenditure on raising funds

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Fundraising and publicity
Printing, postage and stationery 9,008 9,322
Communications 2,606 964
Staff costs 62,587 52,952
Depreciation and impairment 5,838 5,838
80,039 69,076
Trading costs
Support costs 34,352 31,220
Total costs 114,391 100,296

7 Expenditure on charitable activities

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Direct costs
Staff costs 106,366 89,111
Printing, postage and stationery 14,444 11,653
Communications 5,157 6,539
Travel 1,219 2,582
Donations and grants 58,005 56,472
185,191 166,357
Share of support and governance costs (see note 8)
Support 97,044 93,826
Governance 2,671 2,496
284,906 262,679
Analysis by fund
Unrestricted funds 284,906 262,679

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

8 Support costs allocated to activities

Staff costs
Depreciation
Premises costs
Insurance
Bank and credit charges
Governance costs
Analysed between:
Fundraising
Charitable activities		 2023
£
63,350
5,244
56,452
741
3,144
5,136
134,067
34,352
99,715
134,067		 2022
£
64,294
5,112
50,334
702
2,300
4,800
127,542
31,220
96,322
127,542

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

None of the Trustees (or any persons connected with them) were reimbursed for expenses from charity during the year and in the previous year.

10
Net movement in funds
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's financial
statements
Depreciation of owned tangible fixed assets
11
Employees
The average monthly number of employees during the year was:
Raising funds
Charitable activities
Support services
Total		 2023
£
5,136
11,082
2023
Number
7
6
5
18		 2022
£
4,800
10,950
2022
Number
12
8
7
27

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

11 Employees (Continued)
Employment costs 2023 2022
£ £
Wages and salaries 232,304 206,359

There were no employees whose annual remuneration was more than £60,000.

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

13 Tangible fixed assets

Cost
At 1 July 2022
Additions
At 30 June 2023
Depreciation and impairment
At 1 July 2022
Depreciation charged in the year
At 30 June 2023
Carrying amount
At 30 June 2023
At 30 June 2022
14
Debtors
Amounts falling due within one year:
Gift aid recoverable		 Freehold
property
Fixtures and
fittings
£
£
58,376
57,926
-
5,640
58,376
63,566
51,279
38,720
5,838
5,244
57,117
43,964
1,259
19,602
10,968
15,335
2023
£
2,820		 Total
£
116,302
5,640
121,942
89,999
11,082
101,081
20,861
26,303
2022
£
2,413

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

15 Creditors: amounts falling due within one year

Other taxation and social security
Other creditors
Accruals and deferred income		 2023
£
2,433
825
1,599
4,857		 2022
£
2,231
620
1,600
4,451

Lessee

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

2023 2022
£ £
Within one year 24,000 24,000

17 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 July 2022
Incoming
resources
Resources
expended
Transfers
At
£
£
£
£
Fixed asset fund
26,303
-
-
(5,442)
General funds
112,378
386,692
(399,297)
5,442
138,681
386,692
(399,297)
-
Previous year:
At 1 July 2021
Incoming
resources
Resources
expended
Transfers
At
£
£
£
£
Fixed asset fund
33,702
-
-
(7,399)
General funds
107,368
360,586
(362,975)
7,399
141,070
360,586
(362,975)
-		 30 June
2023
£
20,861
105,215
126,076
30 June
2022
£
26,303
112,378
138,681

The Designated fund represents the net book value of tangible fixed assets, and has been designated by the trustees to reflect the fact that these funds are not in a liquid form and so are not expendable funds.

SUNNY DAYS CHILDRENS FUND (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

18 Related party transactions

Remuneration of key management personnel

The remuneration of key management employees is as follows

Key management personnel 2023
£
70,800
70,800		 2022
£
65,650
65,650