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2022-05-31-accounts

Charity Registration No. 1120557

Company Registration No. 06329763 (England and Wales)

THE CHILDREN'S HEART FEDERATION

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2022

THE CHILDREN'S HEART FEDERATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

J S Wootton (Chair) R I Preedy (Treasurer) P M Willgoss (Vice-chair) C M Stringfellow

Charity number 1120557 Company number 06329763 Registered office 9 St Ives Road Maidenhead Berks SL6 1QS Independent examiner Carpenter Box Amelia House Crescent Road Worthing West Sussex BN11 1RL

THE CHILDREN'S HEART FEDERATION

CONTENTS

Page
Trustees' report 1 - 3
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 14

THE CHILDREN'S HEART FEDERATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MAY 2022

The trustees present their report and financial statements for the year ended 31 May 2022.

The Children's Heart Federation (CHF) is a leading UK children's heart charity working to meet the needs of children and young people with congenital and acquired heart conditions (CHD) and their families. We are parent-led and pride ourselves on providing expert, direct and empathetic support.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

Our core objective is to champion people living with congenital heart disease, their families and carers and the organisations supporting them, by sharing information and knowledge, providing support, speaking out and working with each other to make a difference.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake to meet public benefit. The board has considered the criteria laid down within the guidance and believe that in all respects the charity fulfils those criteria in its day-to-day operations.

Achievements and performance

Our dedicated team adapted amazingly well to the changed environment and new challenges that resulted from COVID-19 and the necessary changes to working arrangements. Despite working remotely to deliver core services, the CHF team:

We are ending the year in a better place financially than anticipated, with a surplus due to the hard work of our team.

Aware of increasing support and interest from individual families which complements the ongoing support from parent-led organisations, we have further developed our understanding of the wide range of issues facing thousands of heart families across the UK. We will use this knowledge to further our future strategy.

Financial review

The majority of our funds came from companies and from grant-making trusts and foundations. We rely on all of these funders to make a difference to the lives of children with heart conditions and their families and thank them for their generous support. This year we were also the grateful recipients of certain large, but one-off, legacy payments.

THE CHILDREN'S HEART FEDERATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to three month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. Unrestricted reserves at the year ended 31 May 2022 of £159,264 (2021: £40,572) exceeded the reserve policy, and the trustees are looking to expand the charity's capacity to deliver its existing services as well as developing new areas within the scope of its objectives.

Risk assessment

The trustees have assessed the major financial and non-financial risks to which CHF is exposed, along with the systems, operating procedures and insurances in force, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for the future

We will continue to share our knowledge and information with policymakers and service providers as well as parent and patients, and we will also continue providing direct support to heart families. We aim to extend our reach to families from diverse communities, using appropriate and relevant information and communication technologies.

Structure, governance and management

CHF is a charitable company limited by guarantee. CHF is governed by the Board of Trustees with a broad range of experience and skills as well as knowledge of congenital heart conditions, including accountancy, law and business development. Members of CHF formally elect the trustees. The Board is responsible for setting the strategic direction of the charity and the Chair is responsible for operational matters. The Board meets five times per year, with a focus on monitoring outcomes and strategic decision-making. The operational activities are delegated to the chief executive. The support given by the members of the Board has been invaluable and is very much appreciated.

The trustees, who were also the directors for the purposes of company law, who served during the year were: J S Wootton (Chair) R I Preedy (Treasurer) P M Willgoss (Vice-chair) C M Stringfellow M A Corr (Appointed 14 October 2021 and resigned 12 September 2022) D P Lake (Resigned 7 July 2021) I McKibbin (Resigned 1 January 2022)

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

Staff and volunteers

CHF employs a small team of staff to deliver its services supported by a team of skilled and committed volunteers. The Board of Trustees very much appreciates the tremendous work done by our staff and volunteers.

THE CHILDREN'S HEART FEDERATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

Members

CHF's member groups are:

The trustees' report was approved by the Board of Trustees.

..............................

R I Preedy (Treasurer)

Trustee Dated: .........................

THE CHILDREN'S HEART FEDERATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MAY 2022

The trustees, who are also the directors of The Children's Heart Federation for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

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

THE CHILDREN'S HEART FEDERATION

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE CHILDREN'S HEART FEDERATION

I report to the trustees on my examination of the financial statements of The Children's Heart Federation (the charity) for the year ended 31 May 2022.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Robin Evans BA FCA CTA

Carpenter Box Amelia House Crescent Road Worthing West Sussex BN11 1RL

Dated: .........................

THE CHILDREN'S HEART FEDERATION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MAY 2022

Unrestricted
Unrestricted
Restricted
funds
funds
funds
2022
2021
2021
Notes
£
£
£
Income from:
Donations and legacies
2
207,286
75,339
-
Investments
3
19
14
-
Total income
207,305
75,353
-
Expenditure on:
Raising funds
4
11,233
9,065
-
Charitable activities
5
77,380
45,465
6,965
Total resources expended
88,613
54,530
6,965
Net income for the year/
Net movement in funds
118,692
20,823
(6,965)
Fund balances at 1 June 2021
40,572
19,749
6,965
Fund balances at 31 May 2022
159,264
40,572
-		 Total
2021
£
75,339
14
75,353
9,065
52,430
61,495
13,858
26,714
40,572

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE CHILDREN'S HEART FEDERATION

BALANCE SHEET

AS AT 31 MAY 2022

Notes
Fixed assets
Tangible assets
9
Current assets
Cash at bank and in hand
Creditors: amounts falling due within
one year
10
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds		 2022
£
161,383
(3,194)		 £
1,075
158,189
159,264
159,264
159,264		 2021
£
42,283
(3,465)		 £
1,754
38,818
40,572
40,572
40,572

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 May 2022.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs 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 sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on .........................

..............................

R I Preedy (Treasurer) Trustee

Company Registration No. 06329763

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

Charity information

The Children's Heart Federation is a private company limited by guarantee incorporated in England and Wales. The registered office is 9 St Ives Road, Maidenhead, Berks, SL6 1QS.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

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

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

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

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

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

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 25 - 33% diminishing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

Basic financial assets

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

Basic financial liabilities

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

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

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

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

1 Accounting policies

(Continued)

Derecognition of financial liabilities

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

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

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

2 Donations and legacies

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 207,286 75,339

3 Investments

4 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Interest receivable
19
14
Raising funds
Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Fundraising and publicity
Other fundraising costs
4,011
4,242
Staff costs
7,222
4,823
Fundraising and publicity
11,233
9,065
11,233
9,065		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Interest receivable
19
14
Raising funds
Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
Fundraising and publicity
Other fundraising costs
4,011
4,242
Staff costs
7,222
4,823
Fundraising and publicity
11,233
9,065
11,233
9,065
9,065
9,065

Total 2021 £ 21,381 14,954 36,335 11,557 4,538 52,430 45,465 6,965
Information
Family
Core		 & advice
support		 2021
2021
2021		 £
£
£		 9,746
6,451
5,184		 4,893
8,234
1,827		 14,639
14,685
7,011		 3,435
2,274
5,848		 2,155
1,427
956		 20,229
18,386
13,815		 20,229
11,421
13,815		 -
6,965
-
Total 2022 £ 34,690 13,317 48,007 20,530 8,843 77,380 77,380 -
Information
Family
Core		 & advice
support		 2022
2022
2022		 £
£
£		 15,957
10,262
8,471		 2,875
10,442
-		 18,832
20,704
8,471		 5,164
3,321
12,045		 3,382
2,175
3,286		 27,378
26,200
23,802		 27,378
26,200
23,802		 -
-
-
Charitable activities Staff costs Direct costs Share of support costs (see note 6) Share of governance costs (see note 6) Analysis by fund Unrestricted funds Restricted funds
5

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

6 Support costs

Support
costs
Governance
costs
£
£
Staff costs
9,837
3,014
Staff costs-non wages
182
-
Printing, postage &
stationery
929
-
Advertising & marketing
1,179
-
Travel & accommodation
1,810
-
Finance costs
186
-
Rents & rates
5,384
-
Insurance
296
-
Depreciation
552
-
Other support costs
175
-
Accountancy
-
2,640
Trustee expenses
-
2,465
Other governance costs
-
724
20,530
8,843
Analysed between
Charitable activities
20,530
8,843		 2022Support costs Governance
costs
£
£
£
12,851
4,324
1,728
182
1,475
-
929
129
-
1,179
296
-
1,810
77
-
186
105
-
5,384
4,101
-
296
237
-
552
283
-
175
530
-
2,640
-
1,920
2,465
-
281
724
-
609
29,373
11,557
4,538
29,373
11,557
4,538		 2021
£
6,052
4,324
129
296
77
105
4,101
237
283
530
1,920
281
609
16,095
16,095

Governance costs includes payments to the Independent Examiner of £2,580 (2021: £1,920) for the preparation and independent examination of the financial statements.

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits during the year. 2 of the trustees (2021: 1) were reimbursed travel expenses totalling £2,465 (2021: £281).

8 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Charitable activities 3 2
Support 1 1
Total 4 3

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

8
Employees
Employment costs
Wages and salaries
Other pension costs		 (Continued)
2022
2021
£
£
51,310
32,256
3,453
-
54,763
32,256		 (Continued)
2022
2021
£
£
51,310
32,256
3,453
-
54,763
32,256
32,256

There were no employees whose annual remuneration was £60,000 or more in the current or the prior year.

9 Tangible fixed assets

Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 June 2021 44,657
At 31 May 2022 44,657
Depreciation and impairment
At 1 June 2021 42,903
Depreciation charged in the year 679
At 31 May 2022 43,582
Carrying amount
At 31 May 2022 1,075
At 31 May 2021 1,754

10 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Other taxation and social security
Accruals and deferred income		 2022
£
613
2,581
3,194		 2021
£
1,425
2,040
3,465

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2022

11 Related party transactions

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

Remuneration of key management personnel

Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2022 2021
£ £
Aggregate compensation 30,199 17,280