OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-05-31-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 2023

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 R L Craven (Appointed 18 May 2023) K L Tomlin (Appointed 18 May 2023) 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
Statement of trustees' responsibilities 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 17

THE CHILDREN'S HEART FEDERATION

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MAY 2023

The trustees present their report and financial statements for the year ended 31 May 2023.

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 committed team and dedicated volunteers continued to work hard to achieve our vision, that all children with heart conditions have their medical and social needs met so they can live the fullest life possible. Throughout the past year, 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 2023

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 2023 of £176,479 (2022: £159,264) 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. In addition to the unrestricted reserves, the charity held restricted reserves of £19,296 (2022: £nil) at the year ended 31 May 2023.

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 (Resigned 12 September 2022) R L Craven (Appointed 18 May 2023) K L Tomlin (Appointed 18 May 2023)

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 2023

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 2023

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 2023.

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 DChA

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 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
2
143,519
19,605
Investments
3
1,462
-
Total income
144,981
19,605
Expenditure on:
Raising funds
4
16,754
-
Charitable activities
5
111,012
309
Total resources expended
127,766
309
Net income for the year/
Net movement in funds
17,215
19,296
Fund balances at 1 June 2022
159,264
-
Fund balances at 31 May 2023
176,479
19,296		 Total
Unrestricted
funds
2023
2022
£
£
163,124
207,286
1,462
19
164,586
207,305
16,754
11,233
111,321
77,380
128,075
88,613
36,511
118,692
159,264
40,572
195,775
159,264		 Total
Unrestricted
funds
2023
2022
£
£
163,124
207,286
1,462
19
164,586
207,305
16,754
11,233
111,321
77,380
128,075
88,613
36,511
118,692
159,264
40,572
195,775
159,264
207,305
11,233
77,380
88,613
118,692
40,572
159,264

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 2023

Notes
Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within
one year
11
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
12
Unrestricted funds		 2023
£
7,155
192,129
199,284
(3,905)		 £
396
195,379
195,775
19,296
176,479
195,775		 2022
£
-
161,383
161,383
(3,194)		 £
1,075
158,189
159,264
-
159,264
159,264

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 2023.

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 2023

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 £1.

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 2023

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.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

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

Basic financial assets

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

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023

1 Accounting policies

(Continued)

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.10 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.

1.11 Retirement benefits

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

2 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
143,519
13,605
Grants
-
6,000
143,519
19,605		 Total
Unrestricted
funds
2023
2022
£
£
157,124
207,286
6,000
-
163,124
207,286		 Total
Unrestricted
funds
2023
2022
£
£
157,124
207,286
6,000
-
163,124
207,286
207,286

3 Investments

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Interest receivable 1,462 19

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023

4 Raising funds

Unrestricted Unrestricted
funds funds
2023 2022
£ £
Fundraising and publicity
Other fundraising costs 5,868 4,011
Staff costs 10,886 7,222
Fundraising and publicity 16,754 11,233
16,754 11,233

Total 2022 £ 34,690 13,317 48,007 20,530 8,843 77,380 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		 -
-
-		 27,378
26,200
23,802
Total 2023 £ 46,706 21,335 68,041 28,482 14,798 111,321 111,012 309 111,321
Information
Family
Core		 & advice
support		 2023
2023
2023		 £
£
£		 14,036
14,036
18,634		 5,002
16,333
-		 19,038
30,369
18,634		 5,608
5,608
17,266		 3,866
3,866
7,066		 28,512
39,843
42,966		 28,203
39,843
42,966		 309
-
-		 28,512
39,843
42,966
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

6
Support costs		 Support
Governance
2023Support costs Governance
2022
Basis of allocation		 costs
costs
costs		 £
£
£
£
£
£		 Staff costs
10,374
6,599
16,973
9,837
3,014
12,851
Time spent		 Staff costs-non wages
1,391
-
1,391
182
-
182
Time spent		 Printing, postage & stationery
489
-
489
929
-
929
Direct		 Advertising & marketing
1,679
-
1,679
1,179
-
1,179
Direct		 Travel & accommodation
5,938
-
5,938
1,810
-
1,810
Direct		 Finance costs
129
-
129
186
-
186
Direct		 Rents & rates
5,085
-
5,085
5,384
-
5,384
Direct		 Insurance
290
-
290
296
-
296
Direct		 Depreciation
520
-
520
552
-
552
Direct		 Other support costs
956
-
956
175
-
175
Direct		 Conferences and meetings
1,631
-
1,631
-
-
-
Direct		 Accountancy
-
2,712
2,712
-
2,640
2,640
Governance		 Trustee expenses
-
3,393
3,393
-
2,465
2,465
Governance		 Other governance costs
-
2,094
2,094
-
724
724
Governance		 28,482
14,798
43,280
20,530
8,843
29,373		 Analysed between Charitable activities
28,482
14,798
43,280
20,530
8,843
29,373		 Governance costs includes payments to the Independent Examiner of £2,712 (2022: £2,580) for the preparation and independent examination of the financial statements.

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits during the year. 5 of the trustees (2022: 2) were reimbursed travel expenses totalling £3,393 (2022: £2,465).

8 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Charitable activities 3 3
Support 1 1
Total 4 4

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023

8
Employees
Employment costs
Wages and salaries
Other pension costs		 (Continued)
2023
2022
£
£
70,569
51,310
4,384
3,453
74,953
54,763		 (Continued)
2023
2022
£
£
70,569
51,310
4,384
3,453
74,953
54,763
54,763

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

9 Tangible fixed assets

Cost
At 1 June 2022
At 31 May 2023
Depreciation and impairment
At 1 June 2022
Depreciation charged in the year
At 31 May 2023
Carrying amount
At 31 May 2023
At 31 May 2022
10
Debtors
Amounts falling due within one year:
Prepayments and accrued income
11
Creditors: amounts falling due within one year
Other taxation and social security
Accruals and deferred income		 Fixtures and fittings
£
44,657
44,657
43,582
679
44,261
396
1,075
2023
2022
£
£
7,155
-
2023
2022
£
£
639
613
3,266
2,581
3,905
3,194		 Fixtures and fittings
£
44,657
44,657
43,582
679
44,261
396
1,075
2023
2022
£
£
7,155
-
2023
2022
£
£
639
613
3,266
2,581
3,905
3,194
44,657
43,582
679
44,261
396
1,075
2022
£
-
2022
£
613
2,581
3,194

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023

12 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at Incoming Resources Balance at
1 June 2022 resources expended 31 May 2023
£ £ £ £
The Sweetpea Charitable Trust - 1,000 (309) 691
The Mickleham Trust - 2,000 - 2,000
Felicity Wilde Trust - 3,500 - 3,500
Boost Charitable Trust - 750 - 750
The Whitehill Chase Foundation - 5,200 - 5,200
Birmingham Hospital Saturday Fund - 1,155 - 1,155
British Humane Association - 6,000 - 6,000
- 19,605 (309) 19,296

No restricted funds were held at any point during the comparative period.

The Sweetpea Charitable Trust

This grant was received to support the 'Molly's Dollies' project

The Mickleham Trust

This grant was received to fund a Norfolk-based activity day.

Felicity Wilde Trust

This grant was received to fund the purchase of INR machines.

Boost Charitable Trust

This grant was received to fund a pilot exercise programme activity day.

The Whitehill Chase Foundation

This grant was received to fund the purchase of INR machines.

Birmingham Hospital Saturday Fund

This grant was received to fund the purchase of INR machines.

British Humane Association

This grant was received to fund the purchase of INR machines.

THE CHILDREN'S HEART FEDERATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023

13
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31 May 2023 are represented
by:
Tangible assets
396
-
Current assets/(liabilities)
183,238
12,141
183,634
12,141		 Total
Unrestricted
funds
2023
2022
£
£
396
1,075
195,379
158,189
195,775
159,264		 Total
Unrestricted
funds
2023
2022
£
£
396
1,075
195,379
158,189
195,775
159,264
159,264

14 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023 2022
£ £
Aggregate compensation 42,224 30,199