Charity Reiistration No. 1116809 Company Reglstration No. 05935028 lEland and Wales) IIAPPY CHILD INTERNATIONAL UNAUDtrED Accour FOA THE YEAR EP4DE0 31 Decemr 2021 rLB5VY3QI 10106Q022 COMPANIES HOLISE A10
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HAPPY CHILD IrirERNATIONAL LEGALAND ADMINISTRATIVE INFORMATION Trustees J Doddrell J A Herrin8 M A Pinks C Teuten J Marinez da Crui Secretary M A Pinks Charity number 1116809 Company number 05935028 Prlncipal address The LÈathÈrhead Institute 67 High Street Leatherhead Svrrev KT22 8AH Re81Stered office The Leatherhead Institute 67 High Street Leatherhead Surrey 22 8AH Independent examiner Andrew Miller BSC FCA Azets Trinity Court 34 West Street Sutton SMI ISH Page 2 of 23
HAPPY CHILO INTERNATIONAL CONTENTS Page Trustee's Report lincorporating thè Dirèctors Report) 4-11 Independent examiners, report 12 Statement of financial activities 13 Balance sheet 14 Notes to the a¢¢ounts 15-23 Page 3 of 23
HAPPY CHILD INTERNATIONAL TRUSTEES. REPORT Oncorporating the Dlreclovs Report} FOR THE YEAR ENDED 31 OECEMBER 2021 The Trustees present their report and accounts for the year ended 31 December 2021. The accounts have been prepared in acc¢xdance with the 3ccountinB policies set out in note I to the accounts and comply with the Charity's Memorandum and Articles of AssoCiatn. the Companies Act 21206 and "Accountin8 and Reporting by Charities.. Statement of Recommended Prauice applicable to charities preparing their account5 in accordan with the Financial Reportiri8 Standard applicable in the UK and Republic of Ireland IFRS 1021~ las amended for accounting periods commencin8 from l January 20161. Structurè. go¥wnano and mafftagèment The charity is a company limited by guarantee, incorporated on 14 September 2rA)6 and registered as a harity on 28 November 26. The company was estsblished under a memorandum of association which established the objects and powers of the charitable company and is governed under tts articles of association. All difertors give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity a set out in note 11 to the accounts. Trustees The Tnjstees, who are also the directors for the purpose of company law, and who seryed during the year were.. John Doddrell Mark Pinks john Herrin8 Clive Teuten Joao Martinez da CnJ2 New director5 are appointed by a majority vote of the current board of dirertor5. Dirertors are selected based on the skills possessed to fi.ll 3 vacant Posttion on the board. The board will invtte a potential director to attend a meeting prior to their appointment. An induction process exists to familiarise new direttors with the history. operations and strategy of the charity. Directors attend trainin8 courses when a need is identified by the board. The board of directors. who are also trustees prwdes the strategic direction of the charity.-T.he board meets_ Èvery other month to approve major decistons regarding events. communications with donors and the operational relationship with its partners in Brazil. Happy Child assesses whether its partners overseas meet all relevant legal requirements and follow good practice. Throughout this report "HCI" will refer to Happy Child International. Page 4 of 23
HAPPY CHIID INTERNATIOPIAL TRUSTEES. REPORT IlncorporatSng the Threctors Report} Icontinuedl FOR THE YEAR ENDED 31 DECEMBER 2021 The Dirertors are grateful to all th95e who support the work in action. giving and prayer.. Staff for their deditation and ¢ommitmÈnt to the work of Happy Child Intèmational UK in 2021. Volunteefs during the year our volunteers continued to provwle a vital contribution to the work of the tharlty 8iving their time. passion and energy_ Mostly ovr volunteers have helped wtth fundraising and support to the office and events. Supporters who are individuals and thurches loyally partnering with the vision ol Happy Child International. Risk Management The trustees accept ihat the management of risk is ultimately their responsibility and having examined the major Strategic. business and operational risks which the charity faces. confirm that approprsate control systems have been established to manage and mitigaie and regularly rewew such risks as far as possible. Objectives and aclivitles Public benefit focus on ènsuringthat our activities achieve our charitable aims The trustees review the aims. objectives and artivities of the charity on a regular basis. The review looks at what the charity has achieved and the outcomes of its work within the last twelve months. The dirertor5 consider the succèss of èach key artivity and the benefits the charity ha5 brou8ht to thosè groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims. objeciives and activities remain focused on its stated purposes. The trustees have referred to the guidance contained in the Charity Commissiofi's general guidance on public benefit when reviewing the charity's aims and objectives and in plannin8 Its future activities. In particular, the director5 consider how planned activities will contribute to the aims and objectives that have been set. Objectlvt of the tharSty The charity's objettive IS'A child and family service5 charbty organisation deliverine advisory, campaigning, advocacy and child care serwces for the rescue and personal development of street children and children at risk from multiple threat5, in partnership with gornmentS and other care agencie5 in thè developinÉ world., We do what we do with a Christian convirtion. At present our emphasis is in Brazil Pa8e 5 of 23
HAPPY CHIU) INTERNATIONAL TRUSTEES. REPORT (incorporaling the Directors Report) {continuedl FOR THE YEAR ENOED 31 OECEM8ER 2021 The Trustees have paid due ard to guidance issued bythe Charity Commission in deciding what actNlties the charity should undertake. The ¢h¥rity's main activities are reported as: Child & Family Care Serwites. described under the following headings on our website. Education and Opportunities Protertion from violence Family Care The charity's other and cufrentfy lessor activrties are reported as= Advotacy and Campzi8ning Child Rights- supporting children and young people and eivil society to demand ThtS for every child artd young person and for governments to deliver on their promises Research and Advisory Seryices Research into requirements on Crnt need$ and kxal service prowsion Page 6 of 23
HAPPY CHILD INTERNATIONAL TRUSTEES, REPORT lin¢orporatini the Oirertor5 Report) {wiUnued) FOR THE YEAR ENDED 31 OECEMBER 2021 Happy Chlld'5 Athlevements in 2021 Happy Child International IHCII worked hard in 2021 to implement its overall strategic plan to 5UPPOrt more sustainable ways of working and to reach more children and young people, and their families, who were in desperate need following the Covid pandemic. Our approach included buildin8 Partnerships with other ooanisations that operated in vulnerable communitie5 in nOrth35t Brazil, where there is a high pvalenCe of children and young people at risk. Our main focus was on education and opportunilies, while OUT work a150 supported key themes of.. wotect•on from ¥iolence.' and family care. Edut*lon and Opportunities In Bra2il. the access for children to edu¢ation has suffered during the pandemic. At the end of 2020. for example. S million girls aged 6 to 17 did not have aecess to education. Of these children over 40% were aged 6 to 10. group that prior to the pandemic had enjoyed full a($5 to education. This is an issue that our partner Ammar Transforma seeks to 3ddffe bui at the start of 2021. they were struggling to deliver iheir normal semces to the children and young people of the fragile community of Coque in the city of Recife. Despite the difficult circumstances. and with the help of funds from Happy Child, a community centre refurbishment was su¢ces5fulty cornpleted in March 2021. The centre now provides a more comfortable setting for medical attendance. educational aCtItieS and IT instruction. The centre was fittetl with a TV monitor and 7 computer terminals for digital and online learning. With the support of Happy Child. Ammar Transforma has been able to provide °catch up education" to children from low-income families in the community, who had suffered from thè state 5chrM)15 being closed and had not been able to ac¢e55 online learning learning lor themselves. On July 2nd 2021. normal group attivities were resumed. To comply with Covid safety protocols the children met in smaller groups of 6 and engaged in a learning schedule that had not been available for more than a year and a half. The proBramme attended 50 children twice a week to facilrtate the learnin8. Happy Child has supported work wtth older thildren and youn8 people too. including a Mentoring and Skills Programme run by our partner Insiiluio Solidare. In Bra2il in 2020. some 23.8 million young people from 15 to 29 vears old were without higher education qualifications and had not been admitted to college or university or for vocational training118GE 20201. The situation is particularly difficult for those from low-income families. In this context, the Mentoring and Skills Training scheme offered by Instituto Solidare addresses a very real need and is heavily over-subscribed. The training is part of the larger Holistic Citizen Programme which is a state government initiati¥e for young people from low-income farnilies. For the firsi half of 2021 the learning was delivered online and this was a hugè struggle znd challenge for the programme beneficiaries. Some relied on their mobile phones and others on family or friends to access the learning platform. The majority of the beneficiaries do not have personal computers in the home. The training offered the piospètt of a placement at th• Gerdau Iron and Stèel company either in the area of administration or industrial mechanics. At the close of 2021. 35 young people completed the trainin& 10 secured paid employment17 at Gerda¢J and 3 elsewhere) and the remaining young people are bein8 SUPPOrted to find employment via other channels. At the close of 2021, Ha wa5 able to release_ funds to it5 Partner to host its 8th Mentoring and Skills Training programme in 2022 and for another 40 young people from low-income families to be recruited. Page 7 of 23
HAPPY CHILD INTERMATIONAL TRUSTEES. REPORT I1¢rpOratIng the Dlre¢tors Report) Icontinuedl FOR THE YEAR ENDED 31 DECEM8ER 2011 Protectlon from Violence It is a sad fact that chIldn in the poorer communities of Brazil are at a higher risk of violence and abuse. Simply by offering a centre for children and young people to supplement their education, Happy Child and its partners are helping to take them off the streets and reduce the risk of violence against them. Beyond that. the educationzl support that they receive, coupled with adult support and mentoring. provides the potential for gainlul employment arid reduces the likelihood of them betng drawn inio riskier behaviours and situation5. Some talented and have the potential. with the support and encouragement that Happy Child and our partners are providin& to become leaders and a a force for 8ood in their communities. Violence to girls and young women is particularly worrying and is closely linked io the high rates of teenage pregnancy that are prevalent in poor communities in Brazil. Happy Child Intemational has 3 long history of working to help gir15 who are victim5 of abuse and to support teenage mothers in caring for their babies. In 2021. we have had discussions and m3de plans for ¢ontinuing this work as described irt the context of our work on family care below. Famity Care The Covid pandemic brought huge difficulties for poor families in many low-income communities in Brazil, such as in the Coque community in Recife seryed by our partner, Amrnar Transforma. From January 2021 to July 2021. Happy Child supported Ammar Transforma to deliver food baskets and hygiene kits to vulnerable famllles in Coque. This significantly Mitated the risk of children and young people going hungry and catchin8 Covi(J. Happy Child Inttrnaiional has also been developin8 plans in 2021 to c¢tinUé to address the issuè of early teen pregnancy. 8raiil's teen pregnancy rate is still above the #lobal and Latin American average (Lancet 20201. Trusted research indicates that it is more often among girls living in poverty and those who are s¢xially vulnerable. with less education who will experience earty teen pregnancy. A multi component preventative approach is needed and ¢ould be prowded by existing partners working in fragile communities in 2022. The partners that HCI is working with also seek to influence national. state and muniopal governments and agencies on policies that affect their work and outreach to vulnerable children and young people. The partner5 attend meetings with CREAS Icentro de Referencia da Assistencia Sociall, and other 50¢ial assistantè networks in the region. Partieipation is important for keeping up to date with national and local government policy concerning some of the iuues facing children and young people at risk in Page 8 of 23
HAPPY CHILO INTERNATIONAL TRUSTEES. REPORT (Incorporatlng the Dlrertors Report) Intinued) FOR THE YEAR ENOED 31 DECEMBER 2021 Communications and Fund Raisin¢ HCI would like to become a more widely known organisation in the LIK and in Brazil with wider recognition for the hands on work it is doinB through partnerships. Support to HCI'S communications in 2021 through the informal network.maos Dadas" (Giving Hands) based in Brazil is helping us raise our profile there. The "Maos Dadas- network produces material that is disseminated all over Braiil to support work with children and young people at risk. They have helped us put our brand out nationally through print media as well as digital. They have linked us up with other like-minded organi5ations Such as Christian NGO'S and churches. -Maos Dadas~ have helped us significantly improve our webslte and social media output. In 2021 there were times when the charity was still forced to suspend some of its core actiwties for fundraising such as local community events. The charitie5 income remained stable wr(h the bedrock of our direct debit supporters continLting to give and with one off gifts from loyal supporters. In July 2021 we did a sponsored walk in Surrey which raised funds artd raised the protile of the chafity locally In December we were able to pul on a major event at the House of Commons which was hosted by Ouf local MP. Thi5 raised respectable fundbn8 for the charity and raised the proftle of our work. In 2022 the charity would like its income to remasn stable and to increase if possible. Research and Ad¥i50ry Services Happy Child Iniemational is a member of the Consortium for Street Children here in the UK which is an organisation advocating and campaignin8 for street connected children around the wodd. HCI lends it support to them and when appropriate through participating in events and conferences that they host as well as actively supporting their International Day foi Street Children. Page 9 of 23
HAPPY CHILD INTERNATIONAL TRUSTEES. REPORT lin¢orporatini the DirertoTr Report) {tontinuedl FOR THE YEAR ENDED 31 DECEMBER 2021 Flnancial re¥lew Your Board estimates that the costs of both the UK and Recife arti¥itie5 combined can be analy5ed as below.. 2021 Actual £74.685 2022 8udget £80.(J)O 2023 Forecast £ico.000 Total Cost Cost of generating funds 55% 25% Charitable activities Child and Family Care Services Thematic Advocacy and Campaigns Research and Advisory SeNces 43% 2% 3% Governan¢e l(K)% The charity is working hard to ensure thai its Child and Family Care Services work continues to build Sllstainable development and at the same time buildin8 powerful campai8ns to drive wide awarene55 and to influence national gs)vernmenis and agencies on policies that affert our causè. The economic climate for charitable fundraising continues to be challenging. with income from donations and fundraisin8 for the year totalling £98,269 as compared to £102,764 for the year ended 31 December 2020. The charity would like to hold SeThe5 so that it able to make grants 10 Partners in a structured method so that better long term intiatives can be established rather than bein8 reactionary and only able to respond to need based on latest appeal donation5. The Charity continue5 to monitor activtties closely and seeks addition methods to attract new and additional fundin8. Golng concern The board reports the year ended with a surplus of £23,58412020 Svfplus £5.9971. The board acknowledges that this has been another tough year for income and as Such the charity has been limited in the grant5 It tan provide. The charity continues to have strong It)cal support from a wide range of sources. bein8 donations. sponsored events. talks at schools. churches and confefences. grants from tnjsts & foundations. Based on the 2022 and 2023 budget projections. the board of directors is confident that Happy (hild IntÈrnational Ltd will Continue to be a g¢yn8 concern. Page 10 of 23
HAPPY CHILO INTERNATIONAL TRUSTEES. REPORT lincorpora*in8 the Direclors Report) (continuedl FOR THE YEAR ENDED 31 OECEM8ER 2021 Going concern- ntInued Covid-19 update- The trustees have reviewed intome and expendrf(ure projertions since the outbrèak. The charity has continued to receive donations. has reduced expendiiure and continues to make grants to the or8anisations in Brazil that it supports. As stated earlier in this report,the organisation has positioned li self to carry on through the pandemic. ststement of Trustees, responsibilitles The Trustees, who are a150 the dirertors of Happy Child International for the purpose of company law. are re5pon5ible for prèparing the Trustees. Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally AcceptÈd Accounting Practice). Company law requirès the Truttèes to prepare accounts for each financial year whi¢h 8ive a true and fair view of the statè of affairs of the charity and of ihe incoming resources and application of resources. including the income and expenditure. of the charitable company for that year. In preporin8 these a¢¢ounts, the Trustees are required to= - select suitsble accounting policies and then appfy them consistentlv.. - observe the methods and prlnciples in the Charities SORP.. - rnake iudeements and estimate5 that are reasonable and prudent- and - prepare the accounts on the going concern ba$ unless it is inappropriate to presume that the charity will continue in operation. Thè Trusttts are rèsponsible for keeping adequate accounting record5 that disc105e with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts complv with the Companies Act 2CX16. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable 5tep5 for the prevention and detertion of fraud and other ifregularities. Independent examiners The Board unanimously voted to reappoint Andrew Miller of Azets to torntinue as Independent Examiner for the 2021 accounts and are sure they will continue to provide an excellent quality service in a competitive manner. On behalf of the board of Trustees John l)oddrell Trustee Dated.. Page 11 of 23
HAPPY CHILD INTERNATIONAL INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HAPPY CHILD INTERNATIONAL I report on the accounis of the charity for the year ermled 31 December 2021, which are set out on page5 13 to 23. Respective respOnsi11t1eS ol Trnstees and emaminer The Trustees, who are also the dirertors of Happy Child International for the purposes of company law, are responsible for the preparation of the accounts. The Trustees considerthat an audit is not required for this year under section 144121 of the Charities Act 2011. the 2011 Acl. and that an independent Examination is needed. l am qualified to undertake the examination being a qualified member of The Institute of Chartefed Accountants in England arbd Wale5. Having Satlsfied myself that the charity is not subject to audit under Part 16 of the Companies Act 2006 and is eligible for independerbt examination, it is my re5ponsibilrtyto'. lil examine the accounts under section 145 of the 2011 Act- lill to follow the procedures laid down in the general Directions given by the Charity Commission under section 14515llbl of the 2011 Act- and liiil to stale whether particular rnatter5 have come to my attention. 8asis of independent emamlner's report My examination was ¢arried out in accordance with the General Dirertions given by the Charrty Commission. An examination includes a reeW of the a¢¢ountint records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusu31 items or disclosures in the accounts, and seekin8 explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and ¢onsequently no opinion is given as to whether the accounts Present a 'truè and fair ¥1/ and the report is limited to those matters set out in the statement below. Independent examlnerfs Stotement In connection with my examination. no other matter except that referred to in the above paragraph has come to my attention which 8ives me reasonable cause to believe that in any material respect the requirements.. 11 I to ktèp accounting records in accordance with section 386 of the Cornpanies Act 2006- and Illl to prepare accounts which accord with the accounting records, comply with the accounting requirements of 396 of the Companies Art 2006 and with thè mèthods and printiples of the Accountin8 and Reporting by Charities.. Statement of Recommended Practice applicable to charities pieparin8 their accounts in a¢¢ordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 have ftot been met. Andrew Miller esc FCA Azets Accountant5 Trinity Court, 34 West StreeL Sutton. SMI ISH Dated.. Page 12 of 23
HAPPY CHILD INTERNATIONAL STATEMENT OF FINANCIALACTMTIES INCLUDING INCOME AND EXPENDtruRE ACCOU14T FOR THE YEAR ENDED 310ECEMBER 2021 Unrestrifled fvnds Restrirted fvnds Totsl 2021 Total 2020 Notes Incom tksnations and legacies Activities for generating fvnds 71.748 24MI 71.748 24.881 102,TrJ4 96.629 96.629 102,( 760 Income from charitable activities Total income 98.269 98.269 102.764 Costs of Kenerating funds Costs of generating voluntary income 40.746 40.746 23.318 Expèndilure on Charitable artivities Child and Famity Care Services Thematic Advocacy & Campaigning Services Research and Advisory Services 5.7.8.9 8.100 31, 73,039 1.950 1.950 410 Total expendilufe on charitable activities 8.100 33.940 73.449 Total expend•ture 8.100 74.686 96,767 Net incomellexpenditure) forthe yearl Net movement ITh lunds 31,684 18.100) 23.584 5,997 Fund balance5 at l January 2021 8.100 16.709 10,712 Fund balan5 at 31 December 2021 17 40.293 40.293 16.709 The statement of financial activities also complies with the requirements for an income and expenditu a¢¢ount under the Companies Act 2rxJ6. Page 13 of 23
HAPPY CHILD INTERNATIONAL BALANCE SHEET AS AT 31 December 2021 2021 2021 2020 2020 Notes Current assets Debtors Cash at bank and in hand 13 5.674 37.22S 4,612 14,239 42,899 18,851 Credttoys: amounts fallin8 due wiihin one year 14 (2.606) 12,1421 Total assets less current Ilabil•tles 40,293 16.709 Creditors: amoynis falling due after more than one year Is Net assets 40.293 16,709 IrKome fvnds Aestritted funds Unrestricted funds 8,100 8.609 40,293 40.293 16,709 The company is entitled to the exemption from the audit requirement contained in settion 477 of thè Companies Act 2C4J6, for the year ended 310ecember 2021. No member of the company has deposited a notice. pursuant to section 476, requiring an audit of these accounts. The Trustee5 acknowledge their responstbilities for ensurrng that the cornpany keeps a¢counting records which ornply with sertion 386 of thÈ Art and for prÈparinÈ accounts which give a true and fair view of the state of affairs of the company as at the end of the finan¢i•l year and of its incoming resources and application ol resources. including its income and expenditure. for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Att 2006 relating lo accounts, so far as applicable to the company. These a¢¢ounts have been prepared ift a¢¢ordan¢e with the special provisions relating to small companies within Part 15 of the Companies Act 2006. The accounts were approved by the Board on....... . John Doddrem Trustee Company re8lStration no. 05935028 Charity Re8lStration no. 1116809 Page 14 of 23
HAPPY CHILD INTERNATIONAL 14OTES TO THE ACCOUNTS FOR THE YEAR ENDED 310ECEMBER 2021 A¢¢ounilng poll<les 1.1 Charity Infomiation Happy Child International is a private company limited by guarantee incorporated in En8land and Wales. The registered office is The Leatherhead Institute, 67 High Street. Leatherhead, Surrey, KT22 8AH. la Accountlng Conventlon The accounts have been prepared in attordance wilh the charitvs art+cles of association, the Companits Art 2Crt)6 and "Accounting and Reporting by Charities= Statement of Recommended Practice applicable to charities preparin8 their accounts in accordance with the Financial Reportin8 Standard applicablè in the UK and Republic of Ireland IFRS 1021" las amended for accounting periods commencing from l January 20161. The charity is a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterlin& which is the fvnrtional currenry of the ¢harity- Monetary amounts in these financial statements are rounded to the nearest £. The accournts have been prepared under histofical cost convention. The principal accountin8 Fbolicie5 adopted are set out below. 1.3 Incoming resources Donations, legacies and other forms of voluntary income are recogrtrised as incomin8 re50urce5 when receivable, expt insofar as they are incapable of financial mea5urernent. 1.4 Resources expended Resources expended are rQgnIsed in the perKJd in which they are incurred. Rèsourtès expended include attributable VAT which cannot be recovered. Expenditure is allocated on an accruals basis between the costs of Beneratin8 funds, direct charitable expenditure and the cost of 8overnance of the charity- Administration costs are re-allocated to each of the athvities on the following b3sis which is an estimate. based on employee's time. of the amount attributable to each activity. C05ts of 8eneratin8 funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it. as well as the cost of any artivities with a fundraising purpose. Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated th constitutional and statutory requirements and include any costs associated with the strategic management of the charity's actNities. Grant funding is paid dirertly to partners. current.. Institute Solidare and Ammar Transforma for use in Recife as described in the trustees reporL 1.5 LeaslnÈ and hlre purchase commrtments Rentals payable under operaiing leases are charged against income on a straight line basis over the period of the lease. 1.6 Restricted funds Restricted funds a donations and other incoming resources receNed or generated for specific use within the charities purposes. Page 15 of 23
HAPPY CHILO INTERNATIONAL NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ÉNOED 31 DECEMBER 2021 Accounting policles {Continuedl 1.7 Unrestrirted fvnd5 unrestricted funds are donations and other incoming resour received or generated for the charitable purposes. 1.8 Finart<ial Instrurnents The charity has elected to appsy the prtiwsions of Section 11 'Basic Financial Instruments. and Section 12'0ther Financial Instruments Issues. of FRS 102 to all of its financial instruments. Flnancial in5trument5 are recognised in the charity's balan sheet when thè charity becomes party to the contracrual provisions of thè instrument. Financial assets and liabilities are offset. with the net amounts presented irtr the financial staternent5. when there is a legally enforceable right to set off the recognised amounts and there 15 an intèrbtion to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial instruments Basic financial assets. which include debiors and cash and bank balances. are initially measured at transaction price including transaction costs and are subsequently cariied at arnortised c05t usin8 the effective interest method unless the arrangement con financin8 transaction. where the transartion 15 measured at the present value of the future receipt5 discounted at a market rate of interest. Financial assets tlassified as receivable within one year are not amortised. 8a5ic financial liabilities Basic financial liabilities. includin8 Creditors and bank loans are initially recognised at transaction price unless the arrangement constit¢Jtes a linancing 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 subsequentty carried at amortised cost. using ihe effertive interest rate method. Tfade 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. 11 not, they are presented as non-current liabilities. Trade creditors are retognised initially at transaction price and subsequently measured at amorti5ed c05t uslng the eff¥ctive interest method. DerecoKnitiM of financlal li•bilit Financial liabilities are derecognised when the charit*<s contractual obligations expire or are discharged or cancelled. Page 16 of 23
HAPPY CHILD INTERNATIONAL NOTES ro THE ACCOUNTS ICONfiNUEO) FOR YHE YEAR END£D 31 DECEMBER 2021 A¢¢ountinÉ policie5 (Continued) 1.9 Crit•cal accounting eslimates and judgements In the application of the charitrfs accounting policies. the trv5tees are required to make judgements. estimates and a$5umptions about the carrying amount of assets and liabilitie5 that are not readily apparent from other sourcès. The estimates and associated assurnptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates znd underlying assumptions are rewewed on an ongoing basis. Re¥isi¢)ns to accounting estimates are recognised in the period in which the estimate is revised where the re¥i&on affects only that period, or in the period of the I1$10 and future periods where the revision affects both current and futLJre periods. 1.10 Going torttèrn Happy Child International had net assets of £40.29312020 net assets of £16.7091 as at 31 December 2021. The Trustee5 are monitorin8 spendin8 and cash flow re8ularly and implement steps to ensure that the charity can meet its liabilities as and when they fall due. The restrurturin8 pro¢ess of the UK team implemented in 2015 has enabled thi& This gives the Tnjstees reason to conclude that Happy Child Intemational is a going concern as at 31 December 2021. 1.11 Employee benefits The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Donatlons and legade5 Unrestrfcted fvnds Restrlrted funds Total 2021 2020 Donations and gifts 71.748 71.748 102.004 71.748 71.748 102.004 Donations and gifts Funds.. Donations Gift Aid 66.667 5.081 66.667 5.081 96,617 5.387 71.748 71.748 102.004 Page 17 of 23
HAPPY CHIU) INTERNATIONAL NOTES TO THE ACCOUPll5 ICONTINUEOI FOR THE YEAR ENOED 31 DECEM8ÉA 2021 Restrlcted fund Income In 2020. Happy Child Internotionulheld restri¢tedfundsfor o specrfi¢project in Brozilplus Junds towords reseorch. Restrfrted funds Total 2021 Total 2020 13,8CK) ome from Iharitable actl¥lt5•s Unrestrxted funds Restricted funds Total 2021 Total 2020 Grants receivable Totsl fe50urces expended Dire¢1 Expenditsre Support costs Grani Funding Total 2021 Total 2020 Corts of ¢èn*ratin8 lunds Costs of generating donations and legacies 32.794 7.952 40.746 23.318 Charltable activities Child and Family Care Serwces 13.309 4.281 14.4CQ 31.990 73,039 Thematic Advocory & Campaign Seryices Research and Advisory Services 1.950 1.950 . 410 15.259 4.281 14.400 33.940 73.449 48.053 12,233 14.400 74.686 96,767 ~Governance costs includes payments to the independent examiner of £1.500 12020= £1,5(Ql for independent examination fees. Page 18 of 23
HAPPY CHILD INTERNATIONAL NOTES TOThE ACCOUNTS {copmNUEDI FOR THEYEAR ENDED31 DECEMBER 2021 Cos15 of 8eneratln8 donations and le8aci 2021 2020 Staff costs Event costs Fundraisin8 Costs Consultancy Support costs 17.789 15,(Q5 17.080 228 7.952 6.010 40.746 23.318 Charitable arti¥ities dirert ewdityre 2021 2020 Costs relating to Child and Family Care Servlces comprise: Stalf costs consultan fees 12,809 11,678 525 13,309 12.203 Costs relating to Research and Adwsory Services comprise: Consultancy fees 1,950 1,950 Grants payable 2021 2020 Child and Family Care Services Grants paid to project5 in Recife. 14,400 s7,6& Page 19 of 23
HAPPY CHILD INTERNATIONAL NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Support costs Child and Thematic Family Care Advocacy & Ser¥ices Campaigning Seryices Research and Adwi50ry Servi¢es Total 2021 Total 2020 Administration 4.281 4,281 3,236 4.281 4.281 3,236 10 Governan<e <osts 2021 2020 Other governance costs comprise= Independent examination and accountancy Insuiance 1,500 650 2,100 639 2,150 2.739 11 Trustees None of the Trustees lor any persons connected with iheml received any remvneration durin8 the year, or any reimbursed expenses12020: £nill. 12 Empl*)yees Number of employee5 2021 Number 2020 Number The average month¢y number of employees during the year was= Employment Costs 2021 2020 Wages and salaries Social security tosts Pension 28.221 1,531 26,619 1,341 799 30,598 28,758 No employees received annual remuneration above £20,IXKI. Pa8e 20 of 23
HAPPY CHILD INTERNATIONAL NOTES TO THE ACCOUNTS ICONTINVEDI FOR THE YEAR ENDED 31 DECEM8ER 2021 Debtors 2021 2020 Trade Debtors Gift aid recoverable Prepayments and a¢¢rued income 656 3.362 593 5,081 593 5.674 4,611 14 Creditors: amounts fallnz due within one year 2021 2020 Trade creditors Other creditor5 A¢¢iuals 883 1,592 131 487 648 1,007 2.606 2,142 Page 21 of 23
HAPPY CHILD INTERNATIONAL NOTES TO THE ACCOUNTS ICONYINUÉDI FOR THE.YEAR E140E0 310ECEMBER 2021 17 Analysis of net assets be¢ween fvnds At the end of 2021. Happy Child International hèld restricted funds for Specific a specilic project in Brazil plus funds towards research. UTrRestrirted funds Re5trirted funds Total Fund balances at 31 Dètember 2021 are represented by= Current assets Creditor5.- amounts fallin8 due within one year Creditor5'. amounts fallin8 due after mole than one year 42.899 .12,6061 42,899 12,6061 40,293 40,293 18 Anatysis of Iharitable funds Un.Re5tricted funds RestrirtÈd lunds Total Fund balances at l January 2021 Income Expenditure Net movement in funds 8,1 16,709 98,269 74.685 23,584 98.269 66.585 31.684 18,1Th)1 18.lfyJl Fund balance at 31 December 2021 40.293 40.293 19 Statement of cash flow5 Totsl fvnds Cash flows from operating 3ttivities-. Net cash provided by lused inl operating activities Change in cash and cash equivalents in the reporting period Cash and tash equivalents at the be8inning of the reporting period Cash and tash èquivalènts at the end of the reportin8 peri¢xl 22.985 22.985 14.239 37,225 Page 22 of 23
HAPPY CHIU) INTERNATrONAL NOTES TO THE ACCOUNTS {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2021 Recontlllation of net movement in funds to net 5h flow from operating atthffities Net movement in funds for the reportin8 period las per the statement ol financial attivitiesl 23,584 Adjustments for: 1lncreaselldecase in debtor5 Increaselldecreasel in ueditors 11.C631 Nèt cash provided by (used inl operatin8 activities 22.985 21 Analysls of cash and cash equi¥¥lents Cash in hand Total cash and cash eqvivalents 37,225 37.225 Page 23 of 23