**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 2021**
**THE DOLLYWOOD FOUNDATION UK**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|Dolly Parton|
|---|---|
||Ted Miller|
||Ruth Barker|
|**Secretary**|Ruth Barker|
|**President**|Jeffrey Conyers|
|**UK Executive Director**|Marion Gillooly|
|**Charity number**|1121917 (Scotland – SC044571)|
|**Company number**|06400437|
|**Registered office**|167-169 Great Portland Street|
||5thFloor|
||London|
||W1W 5PF|
|**Accountants**|Burfords Chartered Certified Accountants|
||19 Welling High Street|
||Welling|
||Kent|
||DA16 1TR|
|**Auditor**|Mitchell Charlesworth|
||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**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
||Page|
|---|---|
|Trustees’ report|1 – 5|
|Independent auditor’s report|6 – 9|
|Statement of financial activities|10|
|Balance sheet|11|
|Statement of cash flows|12|
|Notes to the accounts|13 – 20|
## **THE DOLLYWOOD FOUNDATION UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees present their report and financial statements for the year ended 31 December 2021.
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.
## **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 books to all registered children every month from birth up to the age of five within communities that have signed up to the programme. The Charity is the UK branch of The Dollywood Foundation and was established to deliver Dolly Parton’s Imagination Library in the UK. The Imagination Library has been operating in the USA since 1996.
Any community can join the Imagination Library programme as long as it ensures it is accessible by all preschool children within the community. 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. The Charity selects the books with the help of an expert book selection committee and negotiates the costs of labelling and mailing as well as assisting with promotion for the programme and fundraising. The community reimburses the Charity for the costs of the books and mailing, promotes the programme, registers the children, and maintains the database.
Only the cost of the books and postage are reimbursed by the community. All other costs are absorbed by the Charity.
The long-term aim of the Charity is to achieve an increase in the number of children receiving a book each month to 250,000 by the end of 2027 through the expansion of the Imagination Library throughout the UK. 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 its progress towards this goal.
## **Public benefit statement**
The trustees have considered the activities and achievements of the charity for 2021 and its plans for 2022 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 books through the programme. This free access to reading material promotes the home learning environment and helps to improve literacy which benefits both the children directly and the community generally.
1
## **THE DOLLYWOOD FOUNDATION UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Achievements and performance**
## **Review of activities**
The Dollywood Foundation UK staff team is led by Executive Director Dr Marion Gillooly with three Regional Directors (one fulltime, two part-time) covering the four UK nations and the Republic of Ireland.
By the end of 2021, a total of 4,398,631 books had been sent to children living in all four nations of the UK since the Charity launched Dolly Parton’s Imagination Library in the UK in December 2007. We worked with nearly 200 UK affiliate partners to mail 548,594 books during 2021, and by the end of the year 48,472 children were receiving a book every month through the programme. Dolly Parton’s Imagination Library was launched in the Republic of Ireland in February 2019. As at the end of 2021, 161,283 books had been mailed to over 6,000 children living in the Tallaght area of Dublin, and in Cork.
## **Priorities:**
The Charity’s strategy for 2021 was to focus its efforts on growing the Imagination Library in Scotland (total eligible population approximately 275,000 children) and London (total eligible population estimated at 250,000 children), while continuing to expand existing community partnerships. Much of the work in both Scotland and London focused on developing partnerships and relationships that will provide a robust platform for growth in the coming years.
## **Successes:**
## **Scotland**
We are extremely proud of our programme for care experienced children in Scotland, which we deliver in partnership with Scottish Book Trust. Operating since 2011, it is administered by each of the 32 local authorities in Scotland and funded by the Scottish Government. This innovative programme gained momentum during 2021 with 31,000 books gifted to over 2,000 care experienced children.
Scottish national children’s charity Children 1st became a program partner in March 2021, with plans for a two-year incremental approach to rolling out a large Imagination Library programme for children living anywhere in Scotland, and incorporating the Imagination Library into their core offering for families.
In May 2021, Renfrewshire became the first Scottish local authority to fund an authority-wide Imagination Library programme. 2,300 children in the area were enrolled by end of 2021, and early feedback has been overwhelmingly positive:
_“My child has come on so much with giving the extra resources. He is struggling a wee bit with speech and having a book every night helps him. He loves that he gets it as his own post! He has even started to say ‘I want to read a story to me!’ Love this! Thank you!”_
**London**
Over 11,000 children in London received an Imagination Library book every month during 2021 through local programmes in Barnet, Brent, Camden, Greenwich, Hackney, Lambeth, Southwark, Tower Hamlets and City of London. We also worked with other charities and housing associations, such as Peabody Housing Association and Richmond Housing Partnership. Several businesses, such as DialAFlight, sponsor local programmes, and they also offer the Imagination Library to their employees’ children.
We consolidated our partnership with the Centre for Literacy in Primary Education (CLPE) with an initiative called ‘Closing the Vocabulary Gap’ which brings together training from CLPE for Reception Class teachers and Imagination Library books delivered to the homes of over 1,000 children to foster a love of reading and ensure all involved have quality books in the home. This exciting programme is funded by Mercer’s Company and is available to children in Reception Class in 30 primary schools in Tower Hamlets, Hackney and Camden.
The Charity became a partner of the Empower London Foundation in 2021. This is a newly established charitable organisation with the sole purpose of raising funds for charities operating in London. Funds will be raised through delivery of an annual twoweek long series of cultural events called The London Festival, and all proceeds will be shared amongst 11 chosen charities. The first London Festival will be held in July 2023, and we anticipate that this will create a solid funding stream for significant expansion across London.
## **Our impact in London:**
Southwark continues to be the largest Imagination Library programme in the UK, with almost 9,000 registered children, and is fully funded by a corporate sponsor. A recent evaluation of this programme provided us with a wealth of evidence from children, parents and carers and professionals on the impact of the Imagination Library, and this evidence will support our growth in London.
2
## **THE DOLLYWOOD FOUNDATION UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
- 89% of families read 5+ times a week with 78% reading every day
- 88% of Imagination Library families surveyed said they read more often because of the Imagination Library
- Receiving the books has encouraged 41% of families to start using the public library
- 97% agreed that the Imagination Library books have helped develop their child's speech and language
## **England & Wales**
At the end of 2018, we secured funding from the charity Make My Day Better to initiate an Imagination Library programme for Looked After Children in England, and we started promoting the programme to English local authority virtual schools in January 2019. During 2021 we worked with 50 Virtual Schools in England and gave free books to over 4,000 children in care every month. This programme will continue to be a focus for us in 2022 and beyond.
Hull Imagination Library continued to grow following its launch in July 2020, with nearly 3,000 children registered. The City Council has ensured the programme is supported through the Music Service and Museums Service with both producing material on a monthly basis to support families using the books. A board of trustees has been established to secure sustainability and resilience in the long term and will seek further funds to deliver a universal offer for all children in Hull from birth to age five. In Wirral and Bracknell Forest Council areas, we have new 'from birth' Imagination Library programmes. These partners look to support families and register babies with the Imagination Library as soon as they are born.
The launch of Keighley Imagination Library in early July was a notable success with over 700 children were registered by the end of 2021. Two of the three Keighley electoral wards are listed in the top 10% most deprived wards in the UK, and our partners expect the Imagination Library will have a significant impact on families.
In partnership with Save the Children Fund (Wales), we have four new affiliate partners in Wales, who have raised the required funding through local fundraising efforts.
## **Republic of Ireland**
In 2019, The Dollywood Foundation UK launched a partnership with the Childhood Development Initiative (CDI) in Tallaght, Dublin, to bring the Imagination Library to all children aged from birth to five living in the area. This programme is supported by sponsorship from An Post and The Rotary Club, Dublin. It has been a great success, and during 2021 more than 5,000 children received Imagination Library books every month. CDI’s publicity around the launch of their programme inspired a second Imagination Library in Ireland in Cork, which launched in November 2020, and sent books to over 1,000 children in 2021.
## **Evidence base:**
Early results from a PhD study sponsored by the Charity are hugely encouraging, and will be published in Quarter 1, 2022. This will add to the robust evidence of the Imagination Library’s impact that is local to the UK. The title of the PhD thesis will be: _‘Books, Babies and Bonding: The impact of Dolly Parton’s Imagination Library on parental engagement in book-sharing and on child development from birth to age 5.’_
## **Challenges:**
2021 was an incredibly challenging year in the UK due to the impact of both Covid-19 and Brexit. Affiliates and other partners experienced staff shortages, closure of buildings and suspension of services. The Charity’s publishing and fulfilment partners were faced with delivery delays due to backlogs at ports, and issues with customs clearance due to Brexit. Despite these challenges we continued to deliver free books to enrolled children every month.
## **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 2021 sales of books and related services totalled £1,229.023 (2020 £1,048,158) and the charity made a surplus of £96.592 (2020 surplus £66,337) after grants from its US parent totalling £Nil (2020 £277,994).
At 31 December 2021 the charity had free reserves of £389,761 (2020 £293,169) 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.
3
## **THE DOLLYWOOD FOUNDATION UK**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **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 .
## **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,
- An internal audit function
- Annual budgets approved by Trustees
- Regular consideration by the Trustees of financial results, variance from budgets and performance indicators
- Delegation of authority and segregation of duty
- Identification and management of risk
- Strategic Plan
## **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
.
4
THE DOLLYWOOD FOUNDATION UK
TRUSTEES. REPORT (INCLUDING DIREcfoRS' REPORTI
FOR THE YEAR ENDED 31 DECEMBER 2021
Staternerbt of tru51ees' responslbillt
The trustees, who are also the directors ofThe 1cK*d Foundation UK for the purpose of company law. are responslble for
preparin8 the Trustees. Repofi and the accounls in accordance with applicable law and Uniied Kingdom Accountin8 Standards
(United Kingdom Generally ACpted Accountln8 Praciicel.
Company Lèw requires rhe trusrees to p¥epare account5 for eaih finandal year thlch glve è true ènd falr vlew of the State of
affalrs of the charity and of the incoming vesource5 arbd applitatien ol resources, in£ludlnE the income and expenditure. of the
charitable companyfor that year.
In prep3rlng these account5. thÈ trustees are requlred to..
- select 5ultable 8ttountlng PoleS3nd then applythem cons15tentty.'
- observe the method5 and prlnclples In thÈCharltlesSORP..
- make lud8emeTh15 and e5tlrnate5 thai are reasonable and prudent.,
state whether appllcable VX Accountlng Standard$ been followed. stsbject to any materlal departures dlsc105ed and
explalnèd In the accounts.. and
- preparethe xcountson the8oln8tontern basls unless6t Is Inapproprfate to presumethitthech3rltyw111 contlnue In operètlon.
The trustees are responslble for keepln8 adequate accounlln8 retords that dlsdose th reasonable accuracy at any tlme the
flnantlal posltlon of the charltyand enable ¢hem to ensure that the3ccounts compfy wilh thecompanles Act 2(K)6, the Charltie5
nd Trustees Investment Iscotlandl A¢¢ 2(KJS and theCharStiesAc£ounis Ikotlandl ReÉulatlS 2LXK las amended), Theyare al
responsible fof safeBuardin8 the 455¢15 of the £hariiy and hence lor taklTh8 reasonable steps fo¥ the prevention and detectlon of
fraud and other IrreBularllle5.
Audltor
In accordance wlth the company's artkles. • r¢solLrtlon proposln8 ihat MI1 Charlesworth LLP be reappolnted as auditor of
the companywlll be put at 3 General Meetlng.
Dlsclosure of Informatlon to aydiior
Eath ef the trustees has conflmied that theie Is no Information of which thty are aware whlth Is relevant to Ihe audit, but ol
whlch the audltoi Is unaware. They have further confl¢med ihai ihey have iaken approprlale Steps to identify such relevant
Informatlon arsd to establlsh th3l the Judllor Is aware of such Informatlon.
The tru5tÈes' report was approved by the Board olT¥u5trts.
Yed Mlller
Trusiee
## **THE DOLLYWOOD FOUNDATION UK**
## **INDEPENDENT AUDITOR’S REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Opinion**
We have audited the financial statements of The Dollywood Foundation UK (the ‘Charity’) for the year ended 31 December 2021 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).
In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
## **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.
6
## **THE DOLLYWOOD FOUNDATION UK**
## **INDEPENDENT AUDITOR’S REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the trustees' Report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the trustees' report has been prepared in accordance with applicable legal requirements.
## **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:
- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
## **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
.
7
## **THE DOLLYWOOD FOUNDATION UK**
## **INDEPENDENT AUDITOR’S REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
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:
- the nature of the industry and sector, control environment and business performance;
- the charity’s own assessment of the risks that irregularities may occur either as a result of fraud or error;
- the results of our enquiries of management and trustees of their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the charity’s documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
(i)The presentation of the charity's Statement of Financial Activities, (ii) the charity's accounting policy for revenue recognition and (iii) the charity's use of restricted funds. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, and the Statement of Recommended Practice - 'Accounting and Reporting by Charities' issued by the joint SORP making body.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. This includes regulations concerning Data Protection Regulations.
8
## **THE DOLLYWOOD FOUNDATION UK**
## **INDEPENDENT AUDITOR’S REPORT (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **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:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
- enquiring of management and directors concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- 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.
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.
**Robert Hall (Senior Statutory Auditor) For and on behalf of Mitchell Charlesworth (Audit) Limited** 24 Nicholas Street Chester CH1 2AU
Date:
9
## **THE DOLLYWOOD FOUNDATION UK**
## **STATEMENT OF FINANCIAL ACTIVITY**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|---|
|||**funds**|**funds**|**2021**|**2020**|
||**Notes**|**£**|**£**|**£**|**£**|
|**Income from:**||||||
|Donations and legacies|**3**|120,760|-|120,760|285,816|
|Charitable activities|**4**|1,229,023|-|1,229,023|1,048,158|
|Investments|**5**|38|-|38|229|
|**Total income**||1,349,821|-|1,349,821|1,334,203|
|**Expenditure on:**||||||
|Charitable activities|**6**|1,253,229|-|1,253,229|1,267,866|
|**Net income for the year/**||||||
|**Net movement in funds**||96,592|-|96,592|66,337|
|Fund balances at 1 January 2021||293,169|-|293,169|226,832|
|**Fund balances at 31 December 2021**||389,761|-|389,761|293,169|
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.
10
THE DOLLYWOOD FOUNDATION UK
BALANCE SHEET
ASA T31 DECEMBER 2021
1021
2020
Notes
Current assets
Stock
Debtors
Cash at bank and In hand
12
15,067
72.097
708.835
16.304
49.420
539.883
14
795.999
605.607
Credltors.. amount5 fallln8 due wlthln one
veor
15
1406.2381
1312.4381
Net current a55ets
389.761
193,169
389,761
293,169
Ineome fund5
Unrestrlcted funds
17
389,761
293.169
293,169
389,761
293,169
The accounts were apyo¥ed by the Tru5tee5 and authtyrised for Issueon the.
Ted Mlller
Trustee
Company Reglstratlon No. 064C¥J37
li
## **THE DOLLYWOOD FOUNDATION UK**
## **STATEMENT OF CAHSFLOWS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Notes**
**Cash flows from operating activities**
Cash generated from/(absorbed by) operations
**18**
**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**
**Analysis of changes in net debt**|**2021**
**£**
38|**£**
168,914
168,952
-
539,883
708,835|**2020**
**£**
229|**£**
153,000
153,229
-|
|---|---|---|---|---|
|||||153,229
386,654|
|||||539,883|
||||||
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.
12
## **THE DOLLYWOOD FOUNDATION UK**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **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 167-169 Great Portland Street, 5th Floor, London, W1W 5PF.
## **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 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.
## **1.3 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
.
13
## **THE DOLLYWOOD FOUNDATION UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **1.4 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.
## **1.5 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.
## **1.6 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.
## **1.7 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.
## _**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.
14
**THE DOLLYWOOD FOUNDATION UK**
**1.8**
**2**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
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.
## **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.
## **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.
15
## **THE DOLLYWOOD FOUNDATION UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**3**|**Donations and legacies**|||
|---|---|---|---|
|||**2021**|**2020**|
|||£|£|
||Donations and grants|120,760|285,816|
||**Donations and grants**|||
||Donations|120,760|7,822|
||DWF USA|-|277,994|
|||120,760|285,816|
|**4**|**Charitable activities**|||
|||**2021**|**2020**|
|||**£**|**£**|
||Sales within charitable activities|1,229,023|1,048,158|
|||1,229,023|1,048,158|
||Analysis by fund|||
||Unrestricted funds|1,229,023|1,048,158|
||Restricted funds|-|-|
|||1,229,023|1,048,158|
|**5**|**Investments**|||
|||**2021**|**2020**|
|||**£**|**£**|
||Interest receivable|38|229|
16
## **THE DOLLYWOOD FOUNDATION UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **6 Charitable activities**
|**Charitable activities**|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Books and mailing costs|918,461|1,033,952|
|Staff costs|192,321|187,787|
|Promotion, selection and marketing costs|12,871|21,001|
|Grants to affiliates|119,629|7,844|
||1,243,282|1,250,584|
|Share of support costs (see note 8)|4,322|11,873|
|Share of governance costs (see note 8)|5,625|5,409|
||1,253,229|1,267,866|
|**Analysis by fund**|||
|Unrestricted funds|1,253,229|1,267,866|
|Restricted funds|-|-|
||1,253,229|1,267,866|
## **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
3,401
-
Telephone and postage
3,608
-
Bank charges
1,036
-
Education and training
-
-
Other expenses
(3,723)
-
Directors insurance
-
925
Accountancy and payroll
-
1,067
Audit fees
-
2,415
Subscriptions and licences
-
1,218
4,322
5,625
Analysed between
Charitable activities
4,322
5,625|**2021**
**£**
3,401
3,608
1,036
-
(3,723)
925
1,067
2,415
1,218
9,947
9,947|**2020** **Basis of allocation**
**£**
4,852
3,474
670
1,707
1,170
921 Governance
1,143 Governance
2,100 Governance
1,245 Governance
17,282
17,282|
|---|---|---|
17
## **THE DOLLYWOOD FOUNDATION UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**9**|**Net movement in funds**|**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
||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|2,415|2,100|
## **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
Consultant fee
Social security costs
Other pension costs|**2021**
**2020**
**Number**
**Number**
4
4
4
4
**2021**
**2020**
**£**
**£**
164,992 163,784
5,000
11,508
13,838
10,821
10,165
192,321
187,787|**2020**
**Number**
4|
|---|---|---|
|||4|
|||187,787|
One employee received remuneration between £80,000 and £90,000 in the current year (2020 - 1). In addition the charity utilised 250 hours (2020 - 250) of donated time from the President of the Dollywood Foundation USA, Director of Operations and Chief Finance Officer DWF USA.
## **12**
|**Stock**|**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Stock of books|15,067|16,304|
18
## **THE DOLLYWOOD FOUNDATION UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**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|**2021**
**£**
758,255
87,200
**2021**
**£**
28,404
21,016
22,677
72,097
**2021**
**£**
312,508
81,504
6,530
5,696
406,238|**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|
|---|---|---|
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 totaled £100,956 (2020 - £96,494)
19
## **THE DOLLYWOOD FOUNDATION UK**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
During the year the charity received £0 (2020 - £277,974) 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**
**Unrestricted funds**
Unrestricted funds brought forward
Net movement in funds
**Unrestricted funds carried forwards**|**2021**
**£**
293,169
96,592
389,761|**2020**
**£**
226,832
66,337|
|---|---|---|
|||293,169|
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.
|**18**
**Cash generated from operations**
Surplus for the year
Adjustments for
Investment income recognised in statement of financial activities
Movements in working capital:
Decrease/(Increase) in stocks
(Increase)/decrease in debtors
Increase in creditors
**Cash generated from operations**|**2021**
£
96,592
(38)
1,237
(22,677)
93,800
168,914|**2020**
£
66,337
(229)
(939)
(12,417)
100,248|
|---|---|---|
|||153,000|
20