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2020-12-31-accounts

Charity Registration No. 11221917(England and Wales). SC045571 (Scotland)

Company Registration No. 06400437 (England and Wales)

THE DOLLYWOOD FOUNDATION UK

(A Company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE DOLLYWOOD FOUNDATION UK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Dolly Parton
Ted Miller
Ruth Barker
Secretary Ruth Barker
President David Dotson
UK Executive Director Marion Gillooly
Charity number 1121917 (Scotland – SC044571)
Company number 06400437
Registered office 182 Park View Road
Welling
Kent
DA16 1ST
Auditor Mitchell Charlesworth LLP
24 Nicholas Street
Chester
CH1 2AU
Bankers NatWest Bank
Charing Cross, London Branch
PO Box 113
Cavell House
2a Charing Cross Road
London
WC2H 0PD

THE DOLLYWOOD FOUNDATION UK

CONTENTS

Page
Trustees' report 1 – 4
Independent auditor's report 5 – 7
Statement of financial activities 8
Balance sheet 9
Statement of cash flows 10
Notes to the accounts 11 - 18

THE DOLLYWOOD FOUNDATION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

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 Charities’ governing document, the companies Act 2006, the Charities and Trustee investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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

The company is registered as a charitable company limited by guarantee and constituted under a Memorandum and Articles of Association dated 16 October 2007. It is a registered charity number 1121917 (Scotland- SC044571).

The objective of the company is to advance education within the United Kingdom by the provision of educational material, in particular books, to children.

The objective of the charity is carried out by mailing free reading books to all children every month up to the age of 5 within communities that have signed up to the scheme.

The charity is the UK branch of Dolly Parton’s Imagination Library which has been operating in the USA since 1996 and in 2014 sent out its one millionth book under the scheme.

Any community can join the scheme as long as it ensures it is accessible by all preschool children within the community. The Foundation selects the books and negotiates the costs of books, labelling and mailing as well as assisting with promotion for the scheme and fundraising. The community reimburses the Foundation for the costs of the books and mailing, promotes the programme, registers the children and maintains the database.

The long term aim of the charity is achieve an increase in the number of children receiving a book each month to 150,000 children within 10 years through the expansion of the scheme throughout the U.K. This goal will be achieved by investment in research and marketing resources as well as the hiring of additional support staff when required. The success, or otherwise, of the charity is measured on a yearly basis by it’s progress towards this goal.

Public benefit statement

The trustees have considered the activities and achievements of the charity for 2020 and its plans for 2021 against the Public Benefit Guidance issued by the Charity Commission. They agreed that the public who benefit directly from the work of the charity are those children up to the age of five receiving reading books through the scheme. This free access to reading material helps to improve literacy which benefits both the children directly and the community generally.

Achievements and performance

Review of activities

On December 4 2007 Dolly Parton launched the Imagination Library in the UK.

During 2008, the scheme was launched in Rotherham and Wigtown. Through the sponsorship of the local council in Rotherham and the Wigtown Book Festival, just under 40,691 books were mailed to children in 2008. In 2009, this number rose to 92,834 books. Through careful negotiation and volume purchasing, the Charity obtains the books at a fraction of their retail value. All books are new and two volumes are special editions with a welcoming letter inserted In the first title and a letter of congratulations inserted into the last title.

Only the cost of the books, the registration form (if used), the labelling and the posting are reimbursed. All other cost are absorbed by the Charity.

THE DOLLYWOOD FOUNDATION UK

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

In addition to these commitments, much work was invested in discussing the programme and several new communities were added to the effort. These communities were portions of White City, Reading, a ward in Westminster, and a district in Nottingham. Since 2008 was devoted to setting up the operation, significant resources were invested in negotiating terms with the publisher and the mail facility, building the database to accept registrations and merging the information with mail service; working to set aside a portion of the proceeds Dolly Parton’s UK tour to provide the initial operating funds, and securing a staff position through a secondment agreement with Rotherham Council. In October of 2008 this position was secured.

In 2009 and 2010, all resources were devoted to securing new communities and opening dialogue with other partners, including but not limited to, the Scottish Book Trust, Rotary, and Local Authorities throughout the country. In addition, a special project was launched to provide books to the children of Tristan de Cuhna.

In 2013, the number of children receiving a book each month increased from 21,167 to 26,732. In all, 275,144 books were distributed for the year. Notable achievements include the expansion of the effort in North Lincolnshire and the establishment of an employer sponsored programme with Royal Mail.

In 2014, the number of children receiving a book each month increased from 26,732 to 29,600. In all, 331,874 books were distributed to children in the UK. This was a 20% increase over the previous year. During 2014, the Foundation also distributed its 1,000,000th book since its inception in the UK.

During 2016, the number of books gifted to children for the entire year was 297,582. The number of children enrolled as of December 2016 was 30,085. Twelve new affiliates were added during the year and Doncaster, Nottingham and Southwark experienced significant increases in the number of children participating in the program. These gains reclaimed the number of children lost when Rotherham exited the program earlier in the year.

In 2018, the program gifted 483,997 books to children in the UK. At the end of 2018, 43,142 children were participating in the program.

For the year ending 2019, the program gifted 523,041 books to the children in the UK. At the end of 2019, 37,090 children were enrolled in the programme. The decrease from 2018 was incurred by the decision of the Doncaster Council to discontinue the programme due to lack of funding. Since inception, 3,373,882 books have been gifted to the children in the UK.

For the year ending 2020, the program gifted 476,155 books to the children in the UK and 42,721 children were enrolled by the end of the year.

Financial review

The charity was initially funded in 2008 by a grant from its US parent of $25,000, a £5,000 donation from Shine Communications and the proceeds of a concert given by Dolly Parton totalling £121,785.

The communities signing up to the scheme are required to cover the direct costs of books and mailing whilst overheads are funded by grants from the US parent.

In 2020 sales of books and related services totalled £1,048,158 (2019 £1,129,780) and the charity made a surplus of £66,337 (2019 surplus £108,274) after grants from its US parent totalling £277,994 (2019 £292,375).

At 31 December 2020 the charity had free reserves of £293,169 (2019 £226,832) which will cover the overheads of the charity in the short and medium terms. Any future shortfall in reserves will be covered by grants from the parent Foundation in the US.

Plans for future periods

In December 2014, the board approved a 10 year growth plan to increase the number of children receiving a book each month to 150,000 children.

The focus continues to be Housing Authorities, targeted local authorities, looked after children and military families .

THE DOLLYWOOD FOUNDATION UK

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Risk management

The trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems are in place to mitigate our exposure to the major risks.

Internal controls

The system of internal controls are designed to provide reasonable assurance against material statement or loss. The Dollywood Foundation UK's internal controls include,

Business relationships

Key suppliers are introduced to the Charity by its US counterpart who has existing relationships with them.

Structure, governance and management

The charity is a company limited by guarantee, incorporated on the 16 October 2007 and is therefore governed by a Memorandum and Articles of Association.

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Dolly Parton

Ted Miller

Ruth Barker

Day to day management is delegated to the UK Executive Director.

Method of appointment or election of Trustees

The management of the company is the responsibility of the trustees who are elected and co opted under the terms of the Articles of Association.

Under the Articles the number of trustees is at least 3 and not more than 6. There are currently 3 trustees. Trustees are appointed by The Dollywood Foundation. Dolly Parton shall be the Chairman of the Board of Trustees for the duration of her tenure as a trustee.

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.

THE DOLLYWOOD FOUNDATION UK

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of trustees' responsibilities

The trustees, who are also the directors of The Dollywood Foundation UK for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

In preparing these accounts, 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 accounts comply with the Companies Act 2006, the Charities and Trustees Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). 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.

Covid-19

The directors have considered the impact of the COVID-19 pandemic on the business. The directors have taken appropriate steps to mitigate the impact and those actions are described more fully in note 17 to the financial statements.

Auditor

In accordance with the company's articles, a resolution proposing that Mitchell Charlesworth LLP be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

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

Ted Miller

Trustee

Dated: 28 October 2021

THE DOLLYWOOD FOUNDATION UK

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE DOLLYWOOD FOUNDATION UK

Opinion

We have audited the financial statements of The Dollywood Foundation UK (the ‘Charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

THE DOLLYWOOD FOUNDATION UK

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE DOLLYWOOD FOUNDATION UK

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

THE DOLLYWOOD FOUNDATION UK

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE DOLLYWOOD FOUNDATION UK

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

Audit response to risks identified

As a result of performing the above, we identified income recognition, override of controls and adherence to laws and regulations as the key audit matters related to the potential risk of fraud.

Our procedures to respond to risks identified included the following:

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

THE DOLLYWOOD FOUNDATION UK

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE DOLLYWOOD FOUNDATION UK

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members and trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body, and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Griffiths (Senior Statutory Auditor)

For and on behalf of Mitchell Charlesworth LLP

28 October 2021

24 Nicholas Street Chester CH1 2AU

THE DOLLYWOOD FOUNDATION UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Restricted Total Total
funds funds 2020 2019
Notes £ £ £ £
Income from:
Donations and legacies 3 285,816 - 285,816 292,375
Charitable activities 4 1,048,158 - 1,048,158 1,129,780
Investments 5 229 - 229 188
Total income 1,334,203 - 1,334,203 1,422,343
Expenditure on:
Charitable activities 6 1,267,866 - 1,267,866 1,314,069
Net income for the year/
Net movement in funds 66,337 - 66,337 108,274
Fund balances at 1 January 2020 226,832 - 226,832 118,558
Fund balances at 31 December 2020 293,169 - 293,169 226,832

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 DOLLYWOOD FOUNDATION UK

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Current assets
Stock
12
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds
18		 2020
£
16,304
49,420
539,883
605,607
(312,438)
293,169		 £
293,169
293,169
293,169
293,169		 2019
£
15,365
37,003
386,654
439,022
(212,190)
226,832		 £
226,832
226,832
226,832
226,832

The accounts were approved by the Trustees and authorised for issue on the 28[th] October 2021.

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

Ruth Barker Trustee

Company Registration No. 0640037

THE DOLLYWOOD FOUNDATION UK

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from/(absorbed by) operations
19
Investing activities
Interest received
Net cash generated from investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
229
£
153,000
153,229
-
153,229
386,654
539,883		 2019
£
188		 £
110,855
111,043
-
111,043
275,611
386,654

Analysis of changes in net debt

The charity did not hold any overdraft or loan facilities nor finance lease obligation at the start or during the period covered by these financial statements or in the previous accounting period.

THE DOLLYWOOD FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Company information

The Dollywood Foundation UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 182 Park View Road, Welling, Kent, DA16 1ST.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charities governing document, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charity Accounts (Scotland) Regulations 2006 (as amended) 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)” (as amended for accounting periods commencing from 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

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 accounts, and having due regard to the impact of COVID-19, 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 accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

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 accounts.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Incoming resources

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.

THE DOLLYWOOD FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.5 Resources expended

Expenditure is recognised when a liability is incurred.

Charitable activities include expenditure associated with the delivery of children’s books to members.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.

1.6 Stock

Stock is valued at the lower of cost and net realisable value.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred on marketing, selling and distribution.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 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 DOLLYWOOD FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Impairment of financial assets

Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.

If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 receipts 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.

THE DOLLYWOOD FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

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.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

2020 2019
£ £
Donations and grants 285,816 292,375
Donations and grants
Donations 7,822 -
DWF USA 277,994 292,375
285,816 292,375

THE DOLLYWOOD FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

2020 2019
£ £
Sales within charitable activities 1,048,158 1,129,780
1,048,158 1,129,780
Analysis by fund
Unrestricted funds 1,048,158 1,129,780
Restricted funds - -
1,048,158 1,129,780
5 Investments
2020 2019
£ £
Interest receivable 229 188

THE DOLLYWOOD FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

6 Charitable activities

2020 2019
£ £
Books and mailing costs 1,033,952 1,053,462
Staff costs 187,787 178,897
Promotion, selection and marketing costs 21,001 29,676
Grants to affiliates 7,844 -
1,250,584 1,262,035
Share of support costs (see note 8) 11,873 47,124
Share of governance costs (see note 8) 5,409 4,910
1,267,866 1,314,069
Analysis by fund
Unrestricted funds 1,267,866 1,314,069
Restricted funds - -
1,267,866 1,314,069

7 Description of charitable activities

The provision of pre-primary education, specifically by the supply of children’s literature. 8 Support costs

Support costs
Governance
costs
£
£
Travel
4,852
-
Telephone and postage
3,474
-
Bank charges
670
-
Education and training
1,707
-
Other expenses
1,170
-

Directors insurance
-
921
Accountancy and payroll
-
1,143
Audit fees
-
2,100
Subscriptions and licences
-
1,245
11,873
5,409
Analysed between
Charitable activities
11,873
5,409		 2020
£
4,852
3,474
670
1,707
1,170
921
1,143
2,100
1,245
17,282
17,282		 2019 Basis of allocation
£
38,805
4,082
1,015
-
3,222
871 Governance
1,188 Governance
2,200 Governance
651 Governance
52,034
52,034

THE DOLLYWOOD FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

9 Net movement in funds 2020 2019
£ £
Net movement in funds is stated after charging/(crediting)
Fees payable to the company's auditor for the audit of the company's financial
statements 2,100 2,200

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits including reimbursed expenses from the charity during the current or prior year.

11 Employees

Number of employees

The average monthly number employees during the year was:

Charitable staff
Employment costs
Wages and salaries
Social security costs
Other pension costs
 2020
2019
Number
Number
4
4
4
4
2020
2019
£
£
163,784 155,547
13,838
13,699
10,165
9,651
187,787
178,897		 2019
Number
4
4
178,897

One employee received remuneration between £80,000 and £90,000 in the current year (2019-1). In addition the charity utilised 250 hours (2019 – 556) of donated time from the President of the Dollywood Foundation USA, and the CEO, Director of Operations and Chief Finance Officer DWF USA.

One employee received redundancy payments of £936 in the current year (2019 - £nil).

12 Stock 2020 2019
£ £
Stock of books 16,304 15,365

THE DOLLYWOOD FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

13
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
Carrying amount of financial liabilities
Measured at amortised cost
14
Debtors
Amounts falling due within one year:
Trade debtors
Due to Dollywood Foundation USA
VAT recoverable
15
Creditors: amounts falling due within one year
Deferred income
Trade creditors
PAYE payable
Other creditors and accruals		 2020
£
554,346
128,667
2020
£
13,280
1,183
34,957
49,420
2020
£
177,539
125,293
5,097
4,509
312,438		 2019
£
397,041
54,083
2019
£
10,387
-
26,616
37,003
2019
£
152,947
50,542
5,160
3,631
212,190

Deferred income arises from affiliates making advance payments for books.

16 Related party transactions

Remuneration of key management personnel

Total employee benefits of the key management personnel (including pension contributions and employer’s national insurance totalled £96,494 (2019-91,666)

During the year the charity received £277,974 (2019 - £292,375) from The Dollywood Foundation USA to cover overheads and governance costs.

Remuneration of key management personnel is determined annually by Trustees. Traditionally, the level of remuneration has been determined by reference to other similar roles in the sector. Factors such as performance and RPI are also taken into account.

17 -

THE DOLLYWOOD FOUNDATION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

17 Covid-19

Since the beginning of 2020, the COVID-19 pandemic has severely impacted many local economies around the world. Measures taken by governments to control the spread of the virus have included travel bans, quarantines, social distancing and closing of non-essential services and this has resulted in many businesses having to cease or limit their activities for long or indefinite periods of time resulting in an economic slowdown. Governments and central banks have responded with monetary and fiscal interventions in an attempt to stabilise economic conditions.

The charity’s employees have always worked from home and so COVID-19 has had little effect on employees. Travel for meetings have been replaced by remote meetings to enable operations to continue.

18
Unrestricted funds
Unrestricted funds brought forward
Net movement in funds
Unrestricted funds carried forward		 2020
2019
£
£
226,832
118,558
66,337
108,274
293,169
226,832

Due to the charity only being in receipt of unrestricted funds no analysis of net assets note has been produced as this is disclosed on the balance sheet on page 9.

19
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Movements in working capital:
(Increase) in stocks
(Increase)/decrease in debtors
Increase in creditors
Cash generated from operations		 2020
£
66,337
(229)
(939)
(12,417)
100,248
153,000		 2019
£
108,274
(188)
(10,303)
3,900
9,172
110,854