Charfty Reglstratlon No. 1116809 Company Registrat[ No. 05935028 (England and Wales) HAPPY CHILD INTERNATIONAL UNAUDITED ACCOUNTS FOR ThE YEAR ENDED 31 DECEMBER 2023 11111111111 *•D17GLiM' 17KMr2024 COklPANIES PI(XISE A10
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HAPPY CHILD INTERNATIONAL LEGALAND ADMINISTRATIVE INFORMATION Trustees: aive Teuten (Finan Director) Cristina Cortes Evelyn Kangoya Jennie Sullivan Joao Martinez da Cruz John Doddrell (Chairl John Herring Mark A Pinks Isecretaryl Secretary: Mark A Pinks Charity number- 1116809 Company number: 05935028 Principal address.. The Leatherhead Institute 67 High Street Leatherhead Surrey KT22 &4H United Kingdom Registered office: The Leatherhead Institute 67 High Street Leatherhead Surrev KT22 8AH United KinEdorn Independent examiner: Nicholaos loannou Kattirtzis {FCCAI NRM Accountancy Servi$ Ltd 70 Wood Street London E17 3HT
HAPPY CHILD INTERNATIONAL CONTENTS Paze Trustees, Report {Incorporating the Directors. Report) 4-13 Independent Examinerfs Report 14 statement of Financial Activities 15 Balance Sheet 16 Notes to the Accounts 17-19 Detsiled Profit & Loss Account 20
HAPPY CHILD INTERNATIONAL TRUSTEES, REPORT Ilncory>orating the Difectorfs Report) FOR THE YEAR ENDED 31 December 2023 The Trustees present their report and accounts for the year ended 31 December 2023. The accounts have been prepared in accordance with the accounting policies set OLrt in note I to the accounts and cOmY with the Charity's Memorandum and Artides of Association. the Companies Act 2006 and Accounting and Reporting by Charities.. the Statement of Recommended Practicè applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 las amended for accounting periods commencing from I" January 2019 . Structure, governance and many&ment The charity is a company limited by guarantee, incorporated on 14 September 2006, and registered as a charity on 28 November 2006. The company was established under a memorandum of association whith established the objects and powers of the tharitable company and 15 governed under its articles of association. A statement should be provided confirming that the major risks to which the tharity is exposed, as identified by the trustees, have been revie•ied and systems or procedures have been established to manaRe th95e risks. All directors give their time voluntarily and receive no benefrts from the tharity- Any expense5 reclalmed from the charity are set out in note 11 to the accounts. Trustees The Trustees, who are also the directors for the purpose of company law. and who served during the year were. aive Teuten (Finance Director) Cri5tina Cortes Evelyn Kangoya Jennie Sullivan Joao Martlnez da Cruz John Doddrell (Chairl John Herring Mark A Pinks (Secretary) New Directors are appointed by a majority vote of the current board of directors. Directors are selected based on the skills possessed to lill a vacant post on the board. The board invites a potential dirertor to attend a meeting prior to their appointmenL An induction process exists to familiarise new dirertors with the operations arKI strategy of the Charity. Dirertors attend training courses when a need is identified by the board.
HAPPY CHILO If+ifERNATIONAL TRUSTEES, REPORT (InC0fjratln£ the Dirertorfs Report) (continued) FOR THE YEAR ENDED 31 December 2023 The board of directors provides the strategic direction of the charity- The board meets every other month to approve major decisions regarding events. communications wtth donors and the operational relationship wwth its partner oreanisations in Brazil. Happy Child International assesses whether its partners overseas meet all relewdnt legal requirements and follow good prartice. Throughout this report.the Chariv will fefer to Happy Child International. The Directors are grateful to all those who sUPPOrtthe work in artion, Eiving and prayer.. Staff. for theif dedication and commitment to the work of Happy Child International in 2023. Volunteers, during the year our volunteers continued to provide a vital contribution to the work of the charity, gimng their time. passion, and energy. Mostly our volunteers have helped with fundraising and suppjrt to the office and events. Supporters: who are individuals and churches loyally partnering with the vision of Happy Child International. Rlsk management The trustees accept that the management of risk is ultimately their responsibility and having examined the major strategic, business, and operational risks which the Charity faces, confirm that appropriate control systems have been estsblished to manage and mitigate and regularly review suth risks as far 8$ possible. The tharity is constantly reviewing its Risk Register at its regular Board meeting5. Equally the Board are supplied with regular financial updates on the charivs income and expenditsre in orderto monitor its fundraising activities and whether these are functioning or whether it is necessary to review them. Happy Child International has put in place a set of strong Safeguarding procedures to mitigate the risks of working with vulnerable children. This procedure can be looked at on our website. Furthermore there are regular reporting procedures in place for the monitoring of the projects and which are intended to faalitate financial and operational accountability and transparency. Key Board Members and staff visit the projects annually through self-funded or sponsored trips so as not to incur this expense on the charity. Objettives and artl¥ftles Public benefit focus on tnsuring that our activitles ach6eve ourcharitable alms. The trustees review the aims, objective5. and activities of the charity each year. This review look5 at what the charity has achieved and the outcomes of its work within the last twelve months. The directors consider the success of each key artivity and the benefits the charity has brought to those groups of people that it is set up to help. The review
HAPPY CHILD INTERNATI(X4AL TRUSTEES, REPORT {IncorporatlnE the Directorfs Report) Icontlnued FOR THE YEAR ENDED 31 December 2023 also helps the trustees ensure the charity's aims. objective5 and artivities remain focused on its stated purposes. The trustees have referred to the guidance contained in the Charity Commission'5 general guidan on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular. the directors consider how planned activities will contribute to the aims and objertives that have been 5eL The Trustees have paid due regard to guidance issued by the Charity Commi5sion in deciding what activities the charity should undertake. The Charl5 vislon is"A world where every child and young person realises their full potential in a safe and secure environmenf and its mlssion is to "Enable change and transformation in the live5 of children. young people and their families by supporting them to reach their full potential and break the cycle of extreme poverty". Through local partners, the Charity foster5 immediate and lasting change in the lives of children* young people, and their families by advocating for their rights to edLtcation and opportunities. prevention of and protection from violence. and family care for them to break the cycle of poverty and realise their God given potential. Values of the Charlty We are passionate about promoting and defending the rights of children, young people. and their families. In the spirit of Christian tharity, we are commltted to providing unconditional love and support to those we serve. We are inclusive and strive to ensure that those we serve are heard and valued. We are cooperatl¥e in the way we work and partner with others. Prh)rlty themes and preferred ways ol workin8 The Charity works principalty, but rwx exclusively. in partnership with local church partners in Northeast Brazil around.. l. Family care 2. Prevention of and protection from violerKe 3. Education 4. Skills development
HAPPY CHILD INTERt4ATIONAL TRUSTEES. REPORT (Incorporating the Directorfs Report) (continued) FOR THE YEAR ENDED 31 December 2023 l. Family ore In 2023, Happy Child International continued to address the issue of early teenage pregnancy in Northeast Brazil. Research published in 2021 (Brazilian Journal of Health Review, Curitiba, v 4, p 16044. Jul/Aug 20211 showed that 18% of the total number of new-borns in the State of Pernambuco were to young girls in the 10- 19 age bracket- i.e.. 1.22210.8¥AI live births. The situation in Pernambuco is Improvi as in 2008 there were 32.730 live births to young girls but in 2018 numbers had fallen to 24,949 with a 4.5% drop. Nevertheless, research concludes that numbers of young girls facing eady teen age pregnancy are still too high for this age group. A multi-component approach has been implemented with our partner organisation to work with young expectant mums coming from low-income communities. In 2022 12023, there were 19 young mums aged between 15 to 23 who engaged with the programrne. One of them was unable to remain but there was a 90% attendance rate to all scheduled activities. All the mum5 were triaged for psychological 5UPPOrt and 73% of them received help. The programme tackled a number of key topics such as caring for a new baby, the importance of having good nutrition and hygiene in the home, the rights of new mums to aCsS the health care system, sex education and the use of contraception, and Some workshops on how to top up income through micro enterprises. The programme also provided monthly basic food baskets because food insecurity is sti51 a serious issue locally. Approximately 8YA of the mums were encouraged to continue their studies or get further training on completion of their first year in the programme. With the support of their extended families, six of the cohort members returned to school. one managed to find work and three went on to doing further training elsewhere and one of the young mums managed to secure an apprenticeship with Gerdau SA. The programme continued to support all the young mums from 2022 as they are still quite vulnerable and have complex needs. The programme continued to invest in developing the necessary skills for the young mums to set up and successfully manage their own micro enterpri5e5 and five additional expectsnt young mums have joined the scheme. The programme 3150 Started an early pregnancy prevention campaign in local schools titled Don't Activote Mum Mode lor"Nao Ative o Modo Mae". in Portuguese). The campaign majored on raising awareness about the possible consequences and challenges of early unplanned pregnancy as well as running participatory workshops for the students to discuss and reflect on such matters. Through our partners we also seek to Influen government authorities and agencies at the municipal, regional, and national levels on policies and decisions that affect children and young people from vulnerable communities. Part of this work is done in collaboration with Specialised Social Assistan Reference Centres (known in Brazil 35 CREASI, and other social assirtance networks. Participation in these networks enables us and our partners to keep up to date with government policy concerning many of the issues that children and young people face in vulnerable communities in the country.
HAPPY CHILD INTERNATIONAL TRUSTEES, REPORT (Incorporating the Dirertorfs Report) (continued) FOR THE YEAR ENDED 31 Decen*ei 2023 Z Pieveffttion ol and protection from ¥ioleTh¢e Children in the poorer communities of Brazil are at a higher risk of violence and abuse. Simply by offering opportunitie5 to supplement their education through local partners, Happy Child International is helpirE to tske them off the streets and reduce the risk of violence against them. Beyond that, the educational support they receive. coupled with adult support and mentoring. provides the potential for Eainlng employment. and reduces the likelihood of them being drawn into riskier behawours and situations. The young people participating in the Mentoring and Skills Programme are exceptionally talented and have the potential, with the support and encouragement of Happy Child International and our partners, to become leader5 and a force for good in their cornmunitie5. Violence to girls and young women 15 particularly worrying and is dosely linked to the high rates of teenage pregnancy that are prevalent in poor communities in Brazil. Happy Child International has a long history of working to help girls who are subjerted to abuse and other types of exploitstion and to support teenage mothers in caring for their babies. 3. Educatlon 8ra211 remalns one ot the most unequal countries globally. Lack of access to quality education exacerbates this inequalwty- Through one of our local partners. we are working in the community of Coque (Recifel, supporting low- income families that are strugglTrng to make ends meet. One of the main objectives is to prowde supplementsry education and opportunities for childrer4 and young people from these families. In a newly refurbished community ntre"SChool reinforcement classes" are being provided through educational dubs to complement the school curriculum and schedule. The dubs are helping to provide a more equitable education to its participants so that they are better able to meet age-appropriate educational development milestones. Reaching 25 children twice a week. the clubs also have the benefit of providing a safe space for the children during the dayi also allowing the children's parents to work and contribute to society in different ways. English classes are held on Saturday mornings for the children with 22 attending regulady of very mixed ability. These classes help with listening skills, oral communication and reading skills. On Monday and Wednesday afternoon there is an adult literacy programme running with 8 women from the local community. They are leaming basic literacy and numeracy skills with18RAEMA material. Other aspects of this locally led project include supplementsry health care. Even though the state heahh care system has a wide reach, the reality is that the poorest and most marginalised often struggle to access it. Extra community support can often alleviate minor health issues and open-up pathways for more serious conditions to be dealt with in the state system. This year, a Voluntary Ear. Nose and Throat speualist has provided 44 appointments throughout the year. The thild psychologist has also provided 44 appointments on Saturday momings during 2023. The adult Psychologist has delivered 24 appointment5. The holistic therapist has provided 44 appointments for altemative therapies. In totsl. our medical volunteers have furnished the Ioc31 community with 156 appointments.
HAPPY CHILD INTERNATIONAL TRUSTEES, REPORT (Incorporatln8 the Directorfs Report) (continued) FOR THE YEAR ENDED 311)ecember 2023 Happy Child International has also supported older children and young people through a Mentoring and Skills Programme run by another local partner. According to the Yodos pelas Crianps" platform, 12.7 million young people are neither working nor studying out of a population of 215 million. The situation is particularly difficult for those from low-income families. A significant fLbnding gap between private and public schools hinders lower-incorne students access to quality education, particularly in marginalised communities. In this context. the Mentorin8 and Skills Training scheme addresses a very real need and is heavily oversubscribed. The scheme continued to offer the prospett of a placement èt the Gerdau Iron and Steel company either around Administration or Industrial Mechanics. At the close of 2023, 31 young people completed the training successfully. eight secured paid employment. and six went on to further study. Twelve members of the 2023 cohort of trainees registered in February 2024 with the Gerdau SA apprentice selection process. t>Je to the state government reorganising learning schedules in schools, seven were unable to adjust their school timetable5 With the project hours and only ttvo of them were unable to continue for family reasons. The remaining five young people are being supported to find employment via other channels. The Mentoring and Skills Training programme will continue in 2024. benefitting another 40 young people from low-income families. 4. Skills Development Equipping young rnurns with some basic skills to top up their incorne is an essential part of the 5UPPOrt our partners deliverto young mums in low income communities. Theyoun8 mums are invited to take part in workshops which teach them how to do nail extensions and eyebrow shaping. If they establish a small micro business in the beauty arena these initiatives give the mums a feeling of achievement and empowerment. The project provides them with materials and micro finance. The Mentoring and Sknlls helped develop very specific skills so that 40 young people in the project feel confident and with suffiaent skills to compete for places on corporate apprenticeship schemes. This investment 15 Vital if students are to have a chance of forging a Career which can help them get fomal salaried work. One of the 2023 cohort got an apprenticeship with the Caixa Economica Federal which is one of Brazil's largest state banks. Another one of our projerts is working with basic literacy and attrdcted 10 more women to participate in dasses providing baslc literacy and numeracy. The Charitys main achievements In 2023. Locally led projects This year the tharity has forged a relationship with a new organisation'which has expanded Its work through local partners to outside metropolitan Reufe (where it is already supporting 3 projects) to the coastsl region of Tamandaré. During 2023 Happy Child International continued to strlve to work in a sustainable way to be able to reach more th41dren. young people. and their families in vulnerable and high-ri5k cornmunities in Northeast Brazil. Collaboration with strong locally led projects h35 helped the Charity deliver its strateey and encouraged those with whom it partners to expand their own capacity and reath. It established a new partnership this year
HAPPY CHILD INTERNATIONAL TRUSTEES, REPORT Ilncorporatlng the Oirertorfs Report) (continued) FOR THE YEAR ENDED 31 December 2023 with a project in one of the coastal regions of Pernambuco state. In February 2023, both Chair of the Board ljohn Doddrelll and Head of Operation5 (Caroline Taylor) were able to visit some of the Charitys partner projects includin8 the new partner. They met their teams on the ground. In terms of funding these initiatives with local partner5 this year Happy Child International has reached post- Covid levels of funding and almost doubled our income to the charity. For u5 this is an achievement. 5tren8thened governance This year, the Charity has focused on strengthening its Board ofTrustees further. Three new people have joined us: Cristina Cortes (January 20231. Jennie llIvan (June 20231 and Evelyn Kangoya Iottober 20231. Cristina Cortes was the CEO of a Latin American Think Tank and Jennie Sullivan is a former employee of the Charity and a schoolteacher by training and Evelyn Kangoya is a Senior Accountant at another large tharity. Both offer the Charity a wealth of experience and professional knowledge. We are very pleased about their appointments and conts.nue to be committed to achieving greater gender balan on our board Icurrently S men and 3 women) Communication5 and fundratsing The Maos Dadas" Itilvlng Hand51 network in Elrazil continued to SUPPOrt Happy Child International's communications work in 2023. The nebmork produces a wide range of resources that are disseminated all over Brazil to support work with children and young people at risk. They have helped the Charity promote its brand throueh print media as well as digital methods. They have also helped the Charity to develop its relationships with additional like-minded organisations in the country, induding national Christian NGOS and thurthe& The have a150 enabled the Charity to provide up to date content about work being delivered by our projects in the Northeast of Brazil and helped us communicate about current issues relevant to working with vulnerable children and young people in the region. The Charivs income in 2023 was £112.2281£67,150 in 20221. thanks tothe generosity of our donors, loyal supporter5, and partners, often giving sa¢rrficially on a rnonthly basis. or by making regular one-off donations. This induded large donations from Major Donors, for which we are very erateful. In Julyi a sponsored walk took place in both Kent and Surrey and raised £5.Oc. One of the Charitvs flagship events in 2023 was a fvndrai5ing dinner held at the House of Commons, which helped us raise £12,000. Progress against strateglc priorities set for 2023 Priority A: Increase the number of children and young people participating and benefiting from locally led and Community-based partner programmes in Northeast Brazil. Progress.. We have increased the number of children and young people who are participating in our partner programmes. Forty young people partiapated in the 2023 Mentorine and Skills io
HAPPY CHILD INfERNATIONAL TRUSTEES, REPORT {Incorporatin8 the Directorfs Report) (conllnued) FOR THE YEAR ENDED 31 December 2023 Training Projert. At least 40 family units were positively impacted by a young person in the household receiving further education with the potential to gain future employment. This partner programme also reached 20 young vulnerable mums with their babies during 2023 giving them SUPPOrt and encouragement. One of the projects has also gathered in 25 children for its educational clubs and is working with 10 family members to teach basi¢ adult literacy and numeracy. A special Christmas a gathering included 70 families in this community, all of whom were given food basket5 by the project and who receive support throughout the year for Some of their medical needs. Prfority B: Expand the charitys partner portfolio in Northeast Brazil. focusing on providing addltional vocational training and employment OPPOTtunities to MO young people in vulnerable and high-risk communities, as well as adoptin8 a multi-component preventative approadi to the prevention of teenage pregnancies. Five more young mums joined in the Project Gathering activities in 2023. The campaign running longside the projert focused on reaching out to 20 classes of 40 students each {800 young people in totall with key messages to start bringing about positive change around attstudes and perceptions on early pregnancy. We built a new partnership with a project outside of metropolitan Recife and in one of the coastal towns where work is seasonal. and which will help us in 2024 to reach more children and young people through IT skills trainin& Priority C: Strengthen the charitls capacity to raise funds for partner programmes wrth the support of more volunteers, community fundraising and local events. as well as from thurches, trusts, and foundations. Progress= This year we were able to raise additional funds {£20,0001 from trusts in the UK for the work of our partner organisations and by continuing to host 2 events that the charity organised. Our Annual Charity Sponsored Walk raised £5.000 and our House of Commons Dinner raised £12.000. 5traleBlc prforlties for 2024 Continue to increase the number of children and young people partfcipating and benefitting from locally led and community-based partner prografflmes. Consolidate work with the partner portFolio in Northeast Brazil, focusing on providing additional vocational training and employment opportunities to more young people in vulnerable and high risk communitie5, as well as adopting a multi component preventative approach to the prevention of teen age pregnancies. Strengthen the charity's capauty to raise funds for partner programmes with the support of MO volunteers, community fundraising and local eNEnts, a5 well as from churches. trusts, and foundations. li
HAPPY CHILD INTERNATIONAL TRUSTEE5' REPORT Ilncorporating the Oirertorfs Report) Itontinued) FOR THE YEAR ENDED 31 December 2023 Financial Review 2023 Actual 2022 Actual Totsl Cost Cost of generatin8 funds 40,083 46,837 Charitable activities 71,983 80,553 The economic climate for tharitable fundraising continues to be challenging. However, the Charity managed to almost double its income frorn donations and fundraising in 20231£112.428135 compared to £67.104 for the year ended 31 December 2022. Going concern The year ended with a surplus 01 £41709 Statement of Trustee< Responsibilitles The Trustees. who are also the Directors of Happy Child International for the purpose of company law, are responsible for preparing the Trustee5' Report and the accounts in accordance with applicable law and United Kin6dom Accounting Standards Iunited Kingdom Generally Accepted Accounting Prarti¢el. Company Law require5 the Trustees to prepare accounts 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 resour5. including the income and expenditure. of the charitable company for that year. In preparing these accounts. the Trustees are required to- - select suitsble accounting policies and then apply them consistently,. - observe the methods and principles in the Charitrfs SORP,. - make judgements and estimates that are reasonable and prudent.. and prepare the accounts on the going concern basis. unless it Is inappropriate to presume that the Charity will continue to be in operation. 12
HAPPY CHILD INTERNATIONAL TRUSTEES, REPORT (IncorporatlTrd the Dirertorfs Report) Icontknued) FOR THE YEAR ENDED 31 December 2023 The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracyi at any time, the financial posttion of the Charity and enable them to ensure that the accounts comply wwth the Companies Art 2006. They are also responsible for safeguardine the assets of the Charity and hence for tsking reasonable steps for the prevention and detection of fraud and other irregularities. Independent Examiners The Board unanimously voted to appnt Nicolaos loannou Kattirtzis IFCCAI of NRM Accountancy Services Ltd to act as Independent Examinerfor the 2023 accounts and are sure they will provide an excellent quality Servi in a competitive and cost-effective manner. On behalf of the Board of Trustees John DoddreN Trustee Dated: 15" April 2024 13
HAPPY CHILD INTERNATIONAL INDEPENDEfrif EXAMINER'S REPORTTO THE TRUSTEES OF HAPPY CHILD INTERNATIONAL FOR THE YEAR ENDED 31 December 2013 I report on the accounts of the Charity for the year ended 31 December 2023 which are set out on pages4to 13. Respertl¥e respon*7Jli ities of twstees and examiner The Trustees, who are 3150 the dirertors of Happy Child Intemational forthe purposes of companv law, are responsible for the preparation of the a¢¢ounts. The Trustees consider that an audit is not required for this year under section 144121 of the Charities Art 2011. the 2011 Art. and that an independent examination is needed. l am qualified to undertake the examination being a qualified member of The Charted Association of Certified Accountants. Having satisfied myself that the charity is not subject to audit under Part 16 of the Companie5 Art 2006 and is eligible for independent examination. it is my responsibility to- lil examine the accounts under section 145 of the 2011 Art: lill follow the procedures laid down in the eeneral Directions given by the Charity Commission under 5ertion 14515llbl of the 2011 Act,- and liiil stste whether partiatlar matters have come to rny attention. Basls of Independent examlnerfs report My examination was carried out in accordance with the General Directions given by the Charitv Commission. An examination includes a review of the accountine records kept by the Charity and comparison of the accounts presented with those records. It a150 includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as trustees conrning any such matters. The procedures undertaken do not provide all the eviden that would be required in an audtt and consequently no opinion is given as to whether the accounts present a 'true and fair view, and the report is limited to those matters set out in the statement below. Independent examlnerfs ststement In connertion with my examination. no other matter exceptthat referred to in the above paragraph has come to my attention which gives me reasonable cause to believe that in any material respect the requirements= lil to keep accounting records in accordance with sertion 386 of the Companies Art 2006,. and lill to prepare accounts which accord with the accounting record5, comply with the accounting requirernents of 396 of the Companies Act 216 and with the methods and principles of the Accounting and Reporting by Charities: Statement of Recomrnended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republ-c of Ireland IFRS 1021 have not been met. Nicolaos loanno NRM Accountancy Services Ltd 70 Wood Street E173HT Dated:...l&. HAPPY CHILD I IFCCAI ER IONAL 14
STATEMENT OF FINANCIAL AcrivmES INQUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 Decembw 2023 Unrestrkted Re%trkted Funds Funds Total 2023 Total 2022 Notes In¢ome Donations and legaciès Activities for8enerating funds 106.529 106.529 5.899 61,413 5.691 112428 111428 67,104 Bank Interest Received Total Incomè 114L 111062 67,150 endlture Costs of generating funds Costs of generating voluntary income 40.083 46,837 46,837 Expendlture on Charknble artivr¢ies Child and family carè sérvices Thematic Advocacy & Campaigning Services Research & Advisory Service5 5,7.8,9 31.91X) 3¥91J) 33,716 Total expenditureon charbtable activities 7L983 7L983 80,553 Total expenditure 71,983 71.983 80,553 Net Incomellexpenditure) hr the yearlNet Nèt movement in fvnds 41.079 41.079 113.4031 Fund balances at l January 2022 26.WJO 26,890 40,293 Fund baL•nce5 at 31 Decen*er 2022 17 67.969 67.069 26.89) HAPPY CHILO INTERNATIONAL BALANCE SHEEr 15
AS AT 31 December 2023 2023 2022 Notes Current assets Debtors Cash at bank and in hand 13 28,836 28,836 11,9461 Creditots.. amounts lallin8 dué within one year 14 11,920} Total assets less current liabilities 67.969 26,89) credito amounts tallin aftèr more than one due 15 Net assets 67.869 26,89) Intome Funds Restricied funds Unrestricted funds 67.969 26,890 The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Art 2CKJ6. for the year ended 310ecember 2023. No member of the company has deposited a notice, pursuant to section 476. requiring an audit of these accounts. The Trustees acknowledge their responsibiltties for ensuring that the company keep5 account1118 record5 which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affair5 of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of section$ 394 and 395 and whith otherwise comply with the requirements of the Companies Act 2006 relating to accounts. so far as applicable to the company. These account5 have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006. The accounts were approved by the Board on...l.si.%.Ka. o..I John Doddrell Trustee Company registration no. 05935028, Charity Registration no. 1116809 16
trIAPPY CHILD INTERNATIONAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 December 2023 l. Accountlng Poltcies Charity Infomwtlon Happy Child International is a private company limited by guarantee incorporated Sn England and Wales. The registered Offi is The Leatherhead Institute, 67 High Street, Leatherhead, Surreyi KT22 8AH. L2 Accounting Convention The accounts have been prepared in accordance with the chartty's article5 of association. the Companies Act 2006 and 'A¢counting and Reporting by Charities.. Statement of Recommended Prartice applicable to charities preparing their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021" las amended for accounting periods commencing from l January 20161- The charity si a Public Benefit Entity as defined by FRS 102. The accounts are prepared in stedin& whith is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been prepared under historical cost convention. The principal accounting policies adopted are set out below. Incomln8 resources Donations, legacies, and other forms of voluntary income are recognized as incoming resources when receivable. expt insofar as they are incapable of financial measurement. Resources expended Resources expended are recognized in the period in whi¢h they are incurred. Resources expended indude attributable VAT whith cannot be recovered. Expenditure is allocated on an acuuals basis betsveen the costs of generating funds, direct charitsble expenditure, and the cost of govemance of the tharity. Administration costs are re-allocated to each of the activities on thefollowirg ba515 which is an estimate. based on employee's time. of the amount attributsble to each activity. Costs of generating funds relate to the costs incurred by the charitable company in induang thlrd parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. Governance costs are the costs a5cIated with the governan arrangements of the charity. These costs are as50Clated with constitutional and statutory requirements and indude any Costs associated with the strategic management of the Charity's activities. Grant funding is paid directly to pathers in Northeast Brazil as described in the Trustees, Report. 17
HAPPY CHILD INTERNATIONAL NOTES TO THE ACCOUNTS (Contlnued) FOR THE YEAR ENDED 31 December 2023 Accounting policies (Continued) Leaslng and hire purchase commitments Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease. Restrirted funds Restricted funds are donations and other incoming resour5 received or generated for specific use within the Charitvs purposes. Unrestrirted lunds Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes. Financial InstmeThts The charity has elected to apply the provisions of Sertion I'Basi¢ Financial Instruments, and Section 12 '0ther Finanaal Instruments Issues. of FRS 102 to all of tts financial instruments. Financial instruments are Tecognised in the tharity's balance sheet when the tharity becomes party to the contractual provisions of the inrtrument. Financial assets and liabilwties are offset. with the net amounts presented in the financial statements, when there is a legally enforceable right to Set off the recogni5ed amounts and there 15 an intention to sett]e on a net basis or to reali5e the asset and settle the liability simultaneously- Basic financial instruments Basic financial assets, which include debtors and cash and bank balances, are initially measured at transattion price including transacts.on costs and are 5ub5equently carried at amortised cost using the effective interest method unless the arrangement con financing transaction, where the transaction Trs measured at the present value of the fLrture receipts discounted at a market rate ol interest. Finanoal assets dassified as receivable within one year are notamortised. Basic financlal Ilabllltles Basicfinancial liabilities, including creditors and bank loan5 are initially recognised at transaction price unless the arrangement constitutes a finanang transaction, where the debt instrument is measured at the present value of the future payment5 discounted at a market rate of interest. Finanaal liabilities classified as payable within one year are not amort15ed. 18
HAPPY CHILD INTERNATIONAL NOTES TO THE ACCOUNTS (Continued) FOR THE YEAR ENDED 31 December 2023 A¢countin8 polities Icontsnued) Debt instruments are subsequently carried at amortised cost. using the effertive interest rate method. Trade tteditors are obligations to pay for goods or service5 that have beeTr 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 inwtially at transartion price and subsequently measured at arnortised cost using the effective interest method. Derecognition of finandal Ilablllties Financial liabilities are derecogrysed when the charity's contractual obligations expire or are discharged or cancelled. L9 Critical accountin8 eslimates and judgements In the application ol the tharity's accounting poliaes. the trustees are required to make judgements, estimate5 and assumptions about the carrying amount of assets and liabilitie$ that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other fartors that are considered to be relevant. Actual results may differ from these estimate The estimates and underlying assurnptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised 26 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. 1.10 Going concern Happy Child International had net assets of £67,96912022 net assets of £20,8901 as at 31 December 2023. The Trustees are monitoring spending and cash flow regularly and implement Steps to ensure that the charity can meet its liabilities as and when they fall due. This gives the Trustees reason to conclude that Happy Child International is a going conrn as at 31 December 2023. 19
HAPPY CHILD INfERNATIONAL Oetailed Proflt and Loss Accoufftt For the year ended 31 December 2023 Income: Donatlons Received 106.529 Income from Artivitles 112,428 Expended: Grants made 3L9fA) Wages and Salaries Professional & MaetIng expenstt UK Travelling expenses 1,330 Office Renl 4.270 Telephone L710 Internet & Websiie Postage & Ad¥ertisin Professlonal & Marketing e¥penses Brazil 7,681 Subxrfptlons Bank Charges Insurances 732 Sundry expwses 649 Ac(ountanry fees 7L983 Bank Interest receNed 634 Surplus for the year 4L079 20