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2021-03-31-accounts

BHOLA’S CHILDREN

TRUSTEES’ ANNUAL REPORT AND ACCOUNTS For the period 1 April 2020 to 31 March 2021

Pages
Trustees’ Annual Report 1 – 9
Independent Examiner’s Report 10
Annual Accounts 12 – 20

BHOLA’S CHILDREN

CHARITY REG. NO. 1118345 12 Cornwall Grove, London W4 2LB, UK Tel: +44(0)20 8994 6011 Website: www.bholaschildren.org

TRUSTEES’ ANNUAL REPORT

Report of the trustees for the year ended 31st March 2021

The trustees of Bhola’s Children (registered no. 1118345) present their annual report and the financial statements of the charity for the year ended 31st March 2021.The financial statements have been prepared in accordance with the accounting policies set out in notes 1 and 2 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and the Charities Statement of Recommended Practice (second edition) and Financial Reporting Standard FRS 102.

Objectives and activities for the public benefit

The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the charity’s aims and objectives, in planning future activities, and setting the budget and grant-making policy for the year.

The purpose of the charity set out in its trust deed is to advance education, health and poverty relief among children in Southern Bangladesh, particularly those orphaned or with disabilities. More particularly, it was established in 2007 to provide a permanent source of funding for Bhola’s Children Special School – Bangladesh (“BCSB”), a local charitable trust which runs a single project, a home and school for disabled children on the island of Bhola in Southern Bangladesh.

Background

Bhola is an island of two million people. The high level of poverty is exacerbated by the rapid erosion of the North East corner of the island which has displaced families, some multiple times. There are very limited medical facilities on the island. Early marriage, early first pregnancy, poverty, lack of education, and inability to access appropriate medical care and facilities all contribute to high levels of disability. For the children and their families this is made much worse by the terrible social stigma attaching to disability.

Despite the evident needs, there is no other facility on the island capable of meeting those needs in the way that BCSB does.

The vision

The charity (hereinafter “BCUK”) furthers its charitable purposes for the public benefit by granting funds to BCSB for the purposes of the home and school.

From the outset the project was unusual in two key respects:

These were key parts of the vision of the founder and first director of the project, Howlader Ali. By having those with different disabilities together the children flourish helping each other and see that their particular disability does not prevent them being a valued part of the happy “family”. And their actual families see in many cases that their disabled child can acquire economically productive skills. Indeed, the disabled child may be more productive than their siblings who have not had access to training. This is a start to reducing the social stigma attaching to both the child and the family. Reducing that stigma was Ali’s long-term aim.

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The trustees are proud of how successfully BCSB has realised Ali’s vision over the last fourteen years. This has benefited the public through:

How BCSB realises the vision

The home and school is open to any disabled child from the age of four, regardless of gender, religion, or social, political or financial status of their family. Now that BCSB is so well known throughout the island there is greater demand than BCSB can meet. Admission is based on an assessment of the needs of the child and BCSB’s ability to meet those needs, but priority is now given to the very poorest.

BCSB is not at present equipped to deal with children under four years old, or who are not capable of self-toiletting, or are significantly autistic (but see future plans below). Also the focus is on disabilities arising before, during or shortly after childbirth. Disabilities resulting from injuries or illness sustained later in life are generally regarded as the province of other agencies.

The aim is to equip the children when they leave to live a productive life with dignity, so far as their disabilities permit, and while staying at BCSB to feel part of an inclusive family.

The children who are capable of attending normal school attend a school just up the road in the mornings. BCSB provides classes for the remainder in the morning and for all the children in the afternoon covering reading and writing in Bangla and English and in Bangla and roman script, arithmetic, sign language and (for the deaf) vocalisation.

There is no religious education provided by BSCB, which has no religious affiliation, but the children are able to attend religious instruction at their local place of worship.

Older children are taught employable skills including:

Increasingly, BCSB is seeking to broaden the range of skills training available and increase the standard by forming partnerships with larger local organisations which can afford better facilities and specialist instructors teaching to certificated standards. For example, instruction in computers and IT and in electrical wiring is provided at HEED Technical Training College nearby. This increases the chances of each individual child receiving training which makes the most of their aptitudes and capabilities.

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The ablest children are sent for further training in Dhaka where BCSB has close relations with specialist organisations providing training (and safe accommodation) for the disabled. Since 2015 nine have been trained there of whom three are now in employment.

The older teenagers are given increasing responsibilities, for example as teaching assistants, for which they are paid a small salary.

A house mother and house father provide pastoral care and instruction in personal hygiene for the girls and boys respectively.

Medical care is provided by local medical services except for physiotherapy which is provided on-site by staff – daily for those with cerebral palsy. Two of those staff had come to the home as blind children and when older were trained to provide physiotherapy. A qualified medical consultant visits monthly to provide diagnoses and treatment plans.

A few times a year children needing operations for cleft lips, cleft palates, club feet and other deformities are taken to a hospital at Barisal on the mainland. This service is extended to disabled children who are not living at the home.

All are taught to swim, a necessity on an island where nowhere is more than three or four metres above sea level and in the rainy season much of the island is under water.

All the children and all the staff have to learn sign language so that the deaf children can communicate freely with anyone in the boundary.

There is sporting activity every day such as cricket, badminton and swimming.

At present all of this is free of charge to the children’s families, with a few exceptions such as the initial assessment on admission and travel costs to the mainland. The trustees of BCUK and BCSB keep this under review and it is likely that more of the services will be charged for in future in the minority of cases where the child’s family have the means to pay.

Grant making policy

Grants are made to BCSB in instalments against a pre-approved annual budget which has also been approved by the Bangladesh NGO Affairs Bureau. The grants are subject to BCSB complying with a Memorandum of Understanding (“MOU”) between BCUK and BCSB.

Review of our achievements and performance: How our grants delivered public benefit

During the year BCSB, but for Covid-19, would have provided a home, education, training and medical care for an average of 78 children (last year 80). These included 44 deaf, 18 slow learners, 16 with physical disabilities, and 4 blind.

The national lockdown from 25th March 2020 meant that schools were closed and BCSB had to send all the children back to their families. Regular communication, counselling and other support for the children and their families was maintained throughout. In May some of the older and stronger children returned and were able to resume their studies in campus but currently no children are studying at HTTC or in Dhaka. Since 2015 nine have trained to academic grade 9 at HTTC and nine in Dhaka. Three of the latter are now in employment. Also three children have been provided with training in mobile repair by the Social Welfare department, one to such an advanced level that it is hoped to hire him as an in-house instructor.

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Competitive athletics and sports events have been cancelled this year but in recent years BCSB children have won medals at local, regional and national championships for disabled children. One was man of the match in the final of a national competition for wheelchair tennis!

It was not possible this year to take any children to the mainland for operations and the Physiotherapy Department could not treat external clients. But the Department continued to provide regular treatment to eight children in-house.

The BCUK trustees decided to launch a special appeal for a Covid-19 relief fund in June 2020 which raised some £13,000. This together with a further £3,000 saved from BCSB’s normal expenditure enabled BCSB to make a cash distribution to 563 families with disabled children in financial distress, far more than the families of the 78 children who normally live in the home. This was done in close consultation with the District Commissioner’s office and has resulted in a further big increase in the profile of BCSB on the island. It has also revealed that the level of disablement-related need on the island is far greater than we had realised.

For many years the Director of BCSB has been one of the recipients of the annual awards by the Bhola District Commissioner for those making an important contribution to society in Bhola. In the last three years the level of recognition of BCSB has increased greatly. This recognition has extended to the office of the Prime Minister who has an autistic grandchild and has made help for the disabled a priority. She has four times in the last three years chosen paintings by children at BCSB for her greeting cards, for which they receive a substantial cheque.

Besides the children, several of the staff of BCSB are themselves disabled and might otherwise find it hard to find accommodation and employment.

BCSB thus provides substantial benefits to many disabled children from mostly very poor families in an island of two million people where there are no comparable alternative facilities. And, as its reputation grows, it benefits the wider community by showing that disabled children can be economically productive and valued individuals who deserve to live and be treated with dignity rather than stigma. It is to be hoped that Covid-19 will soon be brought under control so that normal delivery of these benefits can be resumed.

Monitoring achievement

BCSB operates as a project of DORP (Development Organisation for the Rural Poor), a large long-established Bangladeshi NGO. This means that the project is subject to detailed monitoring by the Bangladesh government’s NGO Affairs Bureau. This includes pre-approval of the annual budget, pre-approval of each payment received from BCUK and subsequent auditing by auditors on the Bangladesh government’s list of approved auditors.

BCSB also has to comply with the monitoring requirements of the Department of Social Welfare, with which it is registered, and with the financial control procedures of DORP through whom the funds are remitted.

To satisfy BCUK that BCSB spends the money received in ways which meet the specific intentions and charitable aims of BCUK the primary controls are:

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Financial review

Donations

With one exception, namely a large legacy of £274,000 received in May 2019, almost all the charity’s income to date has comprised personal donations from UK donors supplemented by occasional fundraising events. BCUK has a core of regular donors mostly in West London. These donations fluctuate substantially from year to year according to the timing of appeals and fundraising events.

There are occasional foreign donations (this year £nil, last year £783) from a Swedish family who have a long association with Bhola and were involved in setting up the project.

Legacy

After receiving the legacy the trustees spent some months considering how best to utilise this windfall in the interests of the children and in particular how to use the money to make the project more sustainable in the longer term. Active fundraising was paused until donors could be presented with a clear explanation of how the legacy and any further funds raised would be applied.

It was decided to apply the money in three ways:

In response to growing demand the number of children had recently been increased from 60 to 80 on an ad hoc basis, but this was not sustainable without increasing commensurately the budget for food and staff. In addition, there was expected to be an increase in food, compliance and other costs in 12 to 18 months time after BCSB obtained its own NGO registration. The contribution to running costs would cover these increases until more permanent sources of core funds could be developed.

It was envisaged that two building projects to improve the facilities for the project’s work would include parts which could be let on a commercial basis. This would provide a steady source of income in local currency reducing the dependence on UK income subject to foreign exchange fluctuations and other uncertainties. A third potential project would provide basic accommodation for those children who had nowhere else to go on reaching adulthood.

The trustees felt that fresh fundraising should remain on hold until the building plans had been fleshed out at which point they would start fundraising again in earnest.

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Covid-19

Then came Covid-19. All building projects and the associated fundraising plans had to be put on hold. And regarding running costs there was and there remains great uncertainty. Each time children have to be sent back to their families greatly reduces the quantity of food and other items needed, but against that there have been big increases of up to 50% in prices. Bhola being an island is more susceptible to supply shortages and consequent price hikes.

Investment policy and performance

The trustees’ policy is to invest surplus funds in bank fixed deposits with up to one year’s maturity and/or notice accounts, while ensuring that all the funds are covered by the Financial Services Compensation Scheme.

Interest received in the current year was £2,559 (last year £3,185). This low return on the large funds invested from the legacy reflected the very low levels of interest rates in the period.

Expenditure

It is the trustees’ policy that all of the money raised from donors and the net amount raised from fundraising activities should be applied for the benefit of the children in Bhola, except for money spent on:

The trustees, therefore, personally bear all the other administration costs. In particular they bear the considerable costs of travel and accommodation when visiting BCSB on charity business.

The cost of grants paid to BCSB this year was £56,060 (last year £96,179). BCSB has a 31st December accounting year end, so the BCSB budgets approved by BCUK for the relevant calendar years were 2019 £77,166, 2020 £89,027 and 2021 £88,321. The timing of payments varies each year because of delays in obtaining NGOAB approval, exchange rate movements and other factors, so the proportion of the budget paid by 31st March varies likewise. The low figure paid in this year is because the NGOAB did not approve any payments for 2021 until after 31st March.

Financial summary
This year Last year
£ £
Income before legacy 35,269 314,647
Legacy 417 274,000
Total income 35,686 314,647
Total expenditure 56,163 96,248
(Deficit) before legacy (20,894) (55,581)
(Deficit)/surplus after legacy (20,477) 218,399
Total funds at end of year 262,961 283,438

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40,000

40,000

of which restricted funds

In summary, the charity is well capitalised at present. But for the last two years the pause in active fundraising has led to a significant shortfall in non-legacy donations relative to expenditure on grants to BCSB. The legacy provides a cushion for another three or four years whilst funding is put on to a more sustainable long-term footing and is also a shortterm cushion against the uncertainties of Covid-19.

New funding model

The trustees decided in December 2020 that the existing funding model which had worked well in the early years was no longer viable because the donor base has not grown as the charity has grown. They decided it was necessary to start raising a significant portion of funds from grant-making organisations and to do so would require the expertise of a professional fundraiser. Accordingly, a fundraiser was appointed shortly after the year end. It is expected that the fundraiser’s costs will be met by a charitable foundation, so that the charity can continue to say to personal donors that virtually every penny they contribute will go to the children.

Risk management

The charity’s administrative expenses are all born by the trustees personally, fundraising costs are minimal, and grants are only finally approved at the time they are paid. Therefore, the chances of the charity ceasing to be a going concern are minimal, so long as there is a surviving trustee and the charity has banking facilities.

Unfortunately, it is a fact of modern life that Anti-Moneylaundering Legislation and Charity Commission rules and guidance are becoming ever more stringent. Any involvement with Bangladesh is of itself sufficient to raise the authorities’ concerns. The trustees are confident that under the current rules they can satisfy enquiries made by the banks at their annual reviews of the charity’s accounts or by the Charity Commission, but it is impossible to predict how those rules and the attitudes of the various authorities and the banks may develop in future. If the worst were to happen and the charity’s banking facilities were withdrawn, this would prevent the charity from operating.

The chances of the grantee ceasing to be a going concern are more significant, in particular:

The charity aims to have sufficient reserves to provide emergency financial aid in the interests of the children in any such circumstances, but there is no binding legal obligation to provide that support. In such circumstances, even if it had the funds, there is no guarantee that there would be a legal means of delivering them to where they were needed.

Under the MOU BCSB is required to have a safeguarding policy which meets UK requirements. In the UK the requirement now is to have a policy which safeguards not just vulnerable children and adults but anyone within or who comes into contact with the organisation. BCSB’s policy was last updated in [July] 2021.

7

BCUK updated its own safeguarding policy at the same time. Before authorising visits by BCUK trustees the trustees consider the security and health risks to the visiting trustee, who also has to be personally satisfied that the visit is safe.

Reserves policy (see note 13 to the accounts)

Total reserves at the year end stood at £262,961 (last year £283,438) of which £40,000 at both year ends was restricted.

The trustees consider that there is no need for a designated contingency reserve, because this function is effectively fulfilled by the working capital reserve of £40,000 (equivalent to nearly 50% of the running costs budget for 2021). This reserve is restricted and may only be used to cover adverse short-term cashflow fluctuations. The understanding is that any amount drawn from the fund is reimbursed within twelve months.

As already mentioned under Legacy above, the trustees have given considerable thought as to how to make the most appropriate use of the legacy of £274,000 received last year, bearing in mind the Charity Commission’s guidance on large windfalls. The legacy was not subject to any restrictions. Note 13 to the Accounts concerning the Reserves earmarks the funds in accordance with the allocation in Legacy above.

Plans for the future

In December 2019 the BCUK trustees approved a five-year outline budget for BCSB (subject to review each year) which included provision for:

With Covid-19 these plans have had to be put on hold, as BCUK and BCSB trustees adjust to the rapidly changing situation.

Further aims, which are subject to additional local funding, are:

A priority is to resolve the drainage problems at the main site. These problems have become worse in the last two years as a result of the immediate neighbours raising the level of their land so that the older buildings on our land are now frequently flooded. Various solutions are being investigated, but until a technically viable solution is identified, it is not possible to estimate the financial and other implications.

Structure, governance and management

BCUK

BCUK is run by a board of the nine trustees listed below.

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The board contains trustees with a range of relevant skills and experience and the balance of these skills and experience is kept under review.

There are no staff. All the work is done by the trustees with occasional assistance from other volunteers in connection with fundraising events and IT.

Office facilities are provided by the Chair from her home.

BCSB

BSCB is a Bangladesh charitable trust with a board of nine trustees who are all wellrespected members of the local community. The Chairman is an influential local politician. BCSB is registered with the Social Welfare Department.

BCSB is a small organisation and relies heavily on the person of the Director. The current Director, Zakirul Haque, has been in post seven years and is highly regarded by BCUK.

MOU

The MOU between BCUK and BCSB was last revised in January 2020. It sets out various matters that must be agreed jointly by the two parties. These include the appointment of the Director of BCSB, terms of his or her employment and any changes thereto. In practice there is email, telephone and Zoom contact between the Chair of BCUK and the Director, at least weekly and often daily.

The purchases of the land and original buildings were funded by a group of individual donors including the current chair of BCUK. The subsequent buildings were funded by BCUK. All the land and buildings are now registered in the name of BCSB, but under the MOU BCUK must agree to the disposal of any interest in the land and buildings.

The MOU also requires both parties to share minutes of their meetings.

DORP

Pending BCSB getting its own NGO registration, which can take years, BCSB became a project of DORP (Development Organisation of the Rural Poor) a large long-established Bangladesh NGO. DORP handles the considerable work in dealing with the NGO Affairs Bureau in respect of the project in return for 5% of the funds remitted by BCUK. Otherwise it is supportive of but plays no part in the management of the project. The involvement of DORP was a necessary price for BCSB being allowed to receive funds from BCUK through the banking system.

It is hoped that BCSB will finally get its own NGO registration in 2021, in which case that year will be the last under the DORP umbrella.

Reference and administrative information

Trustees

Dinah Wiener, Chair of Trustees Alexander (“Sandy”) Anson FCA, Treasurer Nicholas Breeze Bruna Colombo-Otten Freda Graf Anne Hamilton

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Andrew Hogan Michael Maude Barnaby Wiener Règislgred Office 8nd Principal Office 12 Cornwall Grove, London, W4 2LB Charity Number.. 1118345 Independent examiner Michael Godbee FCA, 99 The Avenue, London, W13 8JT Bankers CAF Bank Limited, 25 Kings Hill. West Malling, Kent, ME19 4TA Trustees, responsibility in relation to the financial ststements The charity trustees are responsible for preparing a trustees, annual report and financial stalernents in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally A￿pted Accounting Practice). The law applicablè to charities in England and Wales requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charity 8nd of the incoming resources and application of resources, of Ihg charity for that period. In preparing the financial statements, the trustees are required lo.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles in the applicable Charities SORP- make judgements and eslimales that are reasonable and prudent; 81ate whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial slatemenls., prepare the financial statements on the going concem basis unless il is inappropriate to presume that the charity will continue in business. The trustees are responsible for kèeping proper accounting records that disclose with reasonable accuracy al any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011. the applicable Charities (Accounts and Reports) Regulations. and the provisions of the Trust deed. They are also responsible for safeguarding the assets of ihe charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements. Approved by the tnjstees on 8" June 2021 and signed on Ih8ir b6half by-. Dinah Wiener, Chair of Trustees exander Anson, Treasurer io

Independent examiner's report on the accounts Report to the trustees Bhola's Chlldren (Charity no. 1118345) On accounts for the year ended: 31st March 2021 Set out on paggs". 12to20 I report to the Iruslees on my examination of the account5 of the above charity (Ih8 Trust") for the year ended 31 sl March 2021. Responsibilities and basls of report As the charity's Iruslees you are responsible for the preparation of the accounts in a¢cordan¢e with the requirements of the Charities Act 2011 I'lhe Act"). I report in resped of my examination of the Irusl's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 14515llbl of the ACL Independent examiner's statement I have completed my ex8min81ion. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that. in any material respect.. the accounting records were not kept in acc£)rdance with section 130 of the Charities Act.. or the a￿unt$ did not accord with the accounting records., or the accounts did not comply with the applirable requirements conceming the fom and content of accounts set out in the Charities (Accounts and Reports) Regulations 2(X)8 other than any requirement that the accounts give a 'lrue and fair. view which 15 not a matter conSide￿d as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination lo which attentson should be drawn in this report in order lo enable a proper understsnding of the accounts to be reached. Signed: Name: MICHAEL GODBEE Relevant professional qualification- FCA Address: 99 THE AVENUE. LONDON. W13 8JT li

BHOLA'S CHILDREN

Charity No. 1118345 Annual accounts for the period 1 April 2020 to 31 March 2021

Statement of financial activities

Note
Income and endowments
from:
Donations – legacy
3
Donations – other
3
Other trading activities
3
Investments
3
Total
Expenditure on:
Raising funds
4
Charitable activities
4
Total
Net income/(expenditure)
Transfers between funds
Net movement in funds
Other recognised
gains/(losses)
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
–		 Unrestricted
funds
Restricted
funds
Total
funds
£
£
£
417
-
417
19,710
13,000
32,710
-
-
-
2,559
-
2,559
22,686
13,000
35,686
103
-
103
43,060
13,000
56,060
43,163
13,000
56,163
(20,477)
-
(20,477)
-
(20,477)
-
(20,477)
-
-
-
(20,477)
-
(20,477)
243,438
40,000
283,438
222,961
40,000
262,961
––––––– Current year –––––––		 Unrestricted
funds
Restricted
funds
Total
funds
£
£
£
417
-
417
19,710
13,000
32,710
-
-
-
2,559
-
2,559
22,686
13,000
35,686
103
-
103
43,060
13,000
56,060
43,163
13,000
56,163
(20,477)
-
(20,477)
-
(20,477)
-
(20,477)
-
-
-
(20,477)
-
(20,477)
243,438
40,000
283,438
222,961
40,000
262,961
––––––– Current year –––––––		 Unrestricted
funds
Restricted
funds
Total
funds
£
£
£
417
-
417
19,710
13,000
32,710
-
-
-
2,559
-
2,559
22,686
13,000
35,686
103
-
103
43,060
13,000
56,060
43,163
13,000
56,163
(20,477)
-
(20,477)
-
(20,477)
-
(20,477)
-
-
-
(20,477)
-
(20,477)
243,438
40,000
283,438
222,961
40,000
262,961
––––––– Current year –––––––		 Unrestricted
funds
Restricted
funds
Total
funds
£
£
£
274,000
-
274,000
37,462
-
37,462
-
-
-
3,185
-
3,185
314,647
-
314,647
69
-
69
96,179
-
96,179
96,248
-
96,248
218,399
-
218,399
-
-
-
218,399
-
218,399
-
-
-
218,399
-
218,399
25,039
40,000
65,039
243,438
40,000
283,438
––––––––– Prior year –––––––––		 Unrestricted
funds
Restricted
funds
Total
funds
£
£
£
274,000
-
274,000
37,462
-
37,462
-
-
-
3,185
-
3,185
314,647
-
314,647
69
-
69
96,179
-
96,179
96,248
-
96,248
218,399
-
218,399
-
-
-
218,399
-
218,399
-
-
-
218,399
-
218,399
25,039
40,000
65,039
243,438
40,000
283,438
––––––––– Prior year –––––––––		 Unrestricted
funds
Restricted
funds
Total
funds
£
£
£
274,000
-
274,000
37,462
-
37,462
-
-
-
3,185
-
3,185
314,647
-
314,647
69
-
69
96,179
-
96,179
96,248
-
96,248
218,399
-
218,399
-
-
-
218,399
-
218,399
-
-
-
218,399
-
218,399
25,039
40,000
65,039
243,438
40,000
283,438
––––––––– Prior year –––––––––
(20,477) - (20,477) 218,399 - 218,399
- - - -
(20,477) - (20,477) 218,399 - 218,399
- - - - - -
(20,477) - (20,477) 218,399 - 218,399
243,438 40,000 283,438 25,039 40,000 65,039
222,961 40,000 262,961 243,438 40,000 283,438

There were no endowment funds at any time in either year.

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Balance sheet At31 March Current year Note Prlor year Current assets: Stock Debtors Investments Cash at bank 180 5,974 241,415 15,392 262,961 180 7,624 255,236 20,398 83.438 Total cunynt assets Creditors 10 Total cunpnt liabilitles Net curnent assets 262.961 283.438 Tot818ssets less ¢uArent IITabilities 283,438 Net assets 262,961 283.438 The funds of the charily: Endowment and restricted income funds Unrestrcted funds Total charity funds 40,000 222,961 262,961 40,000 243,438 283,438 Approved by the trustees on 8th June 2021 and signed on their behalf by.. Posltion Name Signatu Chair of the Trustees Dinah Leah Carlotta WIENER Trnasurer Alexander Lothian ANSON 12

Notes to the Accounts

Note 1 Basis of preparation

1.1 Basis of accounting

These accounts (financial statements) have been prepared under the historic cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The accounts have been prepared in accordance with:

The charity constitutes a public benefit entity as defined by FRS 102.

1.2 Change in basis of accounting

There has been no change in the basis of accounting in the current year.

1.3 Changes to previous accounts

There has been one change to the figures for last year.

Note 2 Accounting policies

2.1 INCOME

Recognition of income

Income is included in the Statement of Financial Activities (SoFA) when:

Offsetting There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS or SORP.

Grants and donations Grants and donations are only included in the SoFA when the general income criteria are met (5.8 to 5.12 FRS102). In the case of performance related grants, income must only be recognised to the extent that the charity has provided the specified goods or services as entitlement to the grant only occurs when the performance-related conditions are met.

Tax reclaims on donations Gift Aid receivable is included in income when there is a valid and gifts declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.

Donated goods Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so.

14

Notes to the Accounts

Donated services and Donated services and facilities are included in the SOFA when facilities received at the value of the gift to the charity provided the value of the gift can be measured reliably. Volunteer help The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report. Income from interest, This is included in the accounts when receipt is probable and royalties and dividends the amount can be measured reliably. Investment gains and This includes any gain or loss on the sale of investments and losses any gain or loss resulting from revaluing investments to market value at the end of the year.

2.2 EXPENDITURE AND LIABILITIES

Liability recognition Liabilities are recognised where it is more likely than not that
there is a legal or constructive obligation committing the
charity to pay out resources and the amount of the obligation
can be measured with reasonable accuracy.
Governance and support
costs		 Governance costs comprise all costs involving public
accountability of the charity and its compliance with
regulation and good practice. Support costs include costs of
grant-making and subsequent monitoring. All governance and
support costs in the year other than bank charges were borne
personally by the trustees in accordance with their policy of
not charging such costs to the charity.
Grants with performance
conditions		 Where the charity gives a grant with conditions for its
payment being a specific level of service or output to be
provided, such grants are only recognised in the SoFA once
the recipient of the grant has provided the specified service
or output.
Grants payable without Where there are no conditions attaching to the grant that
performance conditions enables the donor charity to realistically avoid the
commitment, a liability for the full funding obligation must
be recognised.
Deferred income No deferred income has been included in the accounts.
2.3 ASSETS
Fixed assets and The charity had no fixed assets or investments in the current
investments or prior year.
Stocks Stocks held for sale as part of non-charitable trade are
measured at the lower of cost or net realisable value.

15

Notes to the Accounts

Note 3 Analysis of income and endowments

Donations and legacies This year
Last year
£
£		 This year
Last year
£
£
Donations andgifts – unrestricted 14,465 28,077
Donations – restricted 13,000 -
Expenses waived bytrustees - 4,200
Gift Aid tax recoverable 5,245 5,185
**Subtotal other donations ** 32,710 37,462
Legacy– unrestricted 417 274,000
**Total ** 33,127 311,462

Restricted donations were made for the Covid Relief Fund (see note 13).

Other trading activities
Investment income		 Sale ofgreetings cards - -
Sale of tablecloths and embroidery - -
Fundraisingevents - -
**Total ** - -
Bank interest 2,559 3,185
**Total ** 2,559 3,185

Note 4 Analysis of expenditure

Costs of raising funds
Charitable activities		 This year
Last year
£
£		 This year
Last year
£
£
Commission and fees paid in respect of
donations received through the Virgin Giving
website		 34 3
Bank charges on foreign donations and account
maintenance		 69 66
**Total ** 103 69
Grantspaid to BCSB – Covid Relief Fund 16,000 -
Grantspaid to BCSB – other 40,000 91,899
Trustees' expenses for visits to BCSB - 4,200
Bank charges on foreignpayments 60 80
**Total ** 56,060 96,179

The only costs borne by the charity in respect of grantmaking are bank charges.

The Covid Relief Fund grants included £13,000 from retricted donations and £3,000 from general funds.

16

Notes to the Accounts

Trustees' expenses were expenses incurred on travel and subsistence in the course of their duties when visiting the project in Bangladesh. The Trustees waived their right to claim these expenses (see Note 3). The Trustees also incurred and waived other expenses in the course of their duties on, for example, the provision of office and telephone facilities but it was not considered economic to identify and quantify these.

Approved expenditures
funded by grants to BCSB		 This year
Last year
£
£		 This year
Last year
£
£
Buildings and equipment 4,394 4,710
Staff salaries 30,678 28,432
Food,medecine and healthcare 17,753 15,195
Education,trainingand rehabilitation 10,718 7,605
Travel 1,489 2,132
Utilities and security 2,460 2,483
Administration and audit 2,270 2,324
Covid-19 relief fund 16,000 -
Contribution to DORP 3,023 1,717
**Total ** 88,785 64,598

Note 5 Details of certain items of expenditure 5.1 Trustee expenses

Number of trustees who claimed expenses

Total amount claimed

Thisyear Lastyear
None None
£0 £0

All the trustees who incurred expenses in the performance of their duties waived their right to claim those expenses.

5.2 Fees for examination or audit of the accounts

This year
£		 Last year
£
0 0
0
 0

Independent examiner’s fees for reporting on the accounts

Other fees (for example: advice, consultancy, accountancy services) paid to the independent examiner

Note 6 Stocks

This year
£		 Last year
£
Gift Aid envelopes 180 180
180 180

17

Notes to the Accounts

Note 7 Debtors and prepayments

Amounts falling due
within one year		 Amounts falling due
within one year		 Amounts falling due
after more than one
year		 Amounts falling due
after more than one
year
This year
£		 Last year
£		 This year
£
 Last year
£
Accrued bank interest 1,207 2,464 0 0
Gift Aid recoverable 4,767 5,160 0 0
Total 5,974 7,624 0 0

Note 8 Investments

This year
£		 Last year
£
Bank 1-year fixed deposits 170,000 170,000
Bank 100-daynotice deposit 71,415 85,236
Total
241,415		 255,236

The figures for last year in Notes 8 and 9 have been restated to correctly show the 100-day notice account as an Investment rather than Cash at bank.

Note 9 Cash at bank and in hand

This year
£		 Last year
£
Cash at bank 14,392 20,398
Cash in hand 1,000 0
Total
15,392		 20,398

Note 10 Creditors and accruals

Note 10 Creditors and accruals and accruals
Amounts falling due
within one year		 Amounts falling due
after more than one
year
This year
£		 Last year
£		 This year
£		 Last year
£
Creditors 0 0 0 0
Total 0 0 0 0

Note 11 Transactions with related parties

11.1 Remuneration and benefits

No remuneration or other benefits were paid to a trustee or other related party during either year by the charity or by any institution or company connected with it. See note 5.1 regarding trustees' expenses.

11.2 Loans

No amounts were owing to or from the charity’s trustees or other related parties by the charity at either year end.

18

Notes to the Accounts

11.3 Other transactions with trustees or related parties

Name of the trustee or
relatedparty
Relationship to the charity		 Description of the
transactions		 This year
£		 Last year
£
Bhola's Children Special
School Bangladesh
("BCSB")		 Bangladesh charitable trust
which operates the home
and school funded by the
Charity		 Grants paid by the
Charity to BCSB for the
purposes specified in
Note 4		 16,000 0

Note 12 Endowment and restricted income funds

CURRENT YEAR

Restricted income Fund Fund brought
forward
£		 Added
£		 Utilised/
Released
£
Carried
forward
£
Covid Relief Fund - 13000 (13,000) -
Workingcapital fund 40,000 - - 40,000
**Total restricted funds ** 40,000 13,000 **(13,000) ** 40,000

PRIOR YEAR

PRIOR YEAR
Restricted income Fund Fund brought
forward
£		 Added
£		 Utilised/
Released
£
Carried
forward
£
Workingcapital fund 40,000 - - 40,000
**Total restricted funds ** 40,000 - - 40,000

There were no endowment funds in the current or prior year.

The £40,000 Working Capital Fund is intended to cover adverse short-term cashflow fluctuations in income and expenditure. There is an expectation but not a legal requirement that amounts drawn from the fund are repaid within 12 months.

Note 13 Unrestricted funds – designated

CURRENT YEAR

Designation Reserve
brought
forward
£		 Surplus/
deficit for
the year
£		 Transfer
from
restricted
£		 Newly
designated
£		 Utilised/
Released
£
Reserve
carried
forward
£
Legacy contribution to
running costs		 160,000 - - - (40,000) 120,000
BCSB staffprovident fund 6,300 - - - - 6,300
Undesignated reserve 77,138 (20,477) - - 40,000 96,661
**Total unrestricted funds ** 243,438 **(20,477) ** - - - 222,961

19

Notes to the Accounts

PRIOR YEAR

PRIOR YEAR
Designation Reserve
brought
forward
£		 Surplus/
deficit for
the year
£		 Transfer
from
restricted
£		 Newly
designated
£		 Utilised/
Released
£
Reserve
carried
forward
£
Legacy contribution to
running costs		 - - - 200,000 (40,000) 160,000
BCSB staff provident fund - - - 6,300 - 6,300
Undesignated reserve 25,039 218,399 - (206,300) 40,000 77,138
**Total unrestricted funds ** 25,039 218,399 - - - 243,438

There is no designated contingency reserve as the Trustees consider that the Working Capital Fund (Note 12) fulfils this role.

20