Company Registration Number= 07306686 Charity Registration Number.. 1138645 Scottish Charity Registration Number.. SC045815 FREE THE CHILDREN (UK), TIA WE CHARITY TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 CONTENTS Page Company Information Tru5tee5' Report 4-16 Auditorfs Report 17-20 Consolidated Statement of Financial Activities 21 Consolidated Balance Sheet 22 Consolidated Cash Flow Statement 23 Notes to the Financial Statements 24-43
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 COMPANY INFORMATION COMPANY INFORMATION TRUSTEES Lord Rumi Verjee ICh3irl Craig Burkinshaw Neil Roskilly Pauline Latham (resigned 27, June 20211 Carlos Pinto Michael Comish (resigned 25, January 20211 PRINCIPAL OFFICE ADDRESS.. 14 Bowden Street London SEII 4DS www.we.c>r REGISTERED OFFICE ADDRESS Kings Parade Lower Coombe Street Croydon CRO IAA COMPANY NUMBER 07306686 (England and Wales) CHARITY NUMBER 1138645 IEngland and Wales) OSCR NUMBER SC045815 (Scotlandl BANK Barclays Bank 7-11 st. John's Hill London SWII ITR
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 COMPANY INFORMATION AUDITOR Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW SOLICITORS Harbottle and Lewis LLP 7 Savoy Court London WC2R OEX ACCOUNTANTS Bryden Johnson Limited Kings Parade Lower Coombe Street Croydon CRO IAA
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT The Trustees, who are also Directors of the Charity for the purposes of the Companies Act 2006, present their report and the audited financial statements forthe 12-month period which began I" September 2020 and ended 31" August 2021. The charitable company has prepared its financial statements in accordance with the Companies Act 2006 and the Statement of Recornrnended Practice.. Accounting and Reporting by Charities ISORP 20151. The financial statements also comply with the 8overnin8 document of the charitable company. Free The Children IUKI (registered charity number 1138645 in England and Wales. and SC045815 in Scotlandl is a charity which operates programmes both domestically and internationally, in a manner that is intended to be interrelated and mutually reinforcing. Its overarching mandate is to help young people fulfil their potential to be agents of change. The Charity went through a rebranding and is now commonly known as WE Charity and will be referred to as such throughout the rest of the trustees, report. WE Charity was incorporated on 7, july 2010 and granted charitable status on 28" October 2010. AIMSAND OBJECTIVES The Charity's aims and objectives as set out in the company's memorandum of association and articles are.. To advance in life and help young people by providing support and activities which develop their skills, capacities and capabilities to enable them to participate in society as mature and responsible individuals. To relieve poverty, advance educ3tion, relieve sickne55 and promote and protect good health. WE Charity is a non-denominational and non-partisan organisation. There were no changes in the Charity's main objectives in the period under review. DAlL5 OF THE MAIN oBJEIVEs FOR THE PERIOD 2020-2021 To offer the Charity's prograrnme virtually to domestic and global audiences, and develop innovative, digltal resources to engage students in a deeper understandin8 of i55ues and to aid teachers in incorporating them in their cuiriculum during a time when students and teachers were tran51tioning to virtual learning 3nd dealing with new experiences resulting from the COVID-19 pandemic To continue the support of international projects throughout developing countries by supporting holistic and sustainable development programmeslprojects through the 'WE Villages Iformerly Adopt Villagel model, with a focu5 on the following areas.. education, clean water and sanitation, health, alternative incorne and livelihood, and agriculture and food securitv To continue to engage and celebrate youth through globally accessible virtual celebrations. Further expand our reach and access to students across the UK with online programmes and events, where more students can participate in the celebration of the youth social action and WE Schools programming To embed trauma-informed practice, social emotional learning, ancl mental health literacy into WE Schools modules, providing youth and teachers with early access to resources and support to help lessen later manifestation of mental health issues
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) The Mission of the Charity is to empower all people to create change in the world, locally and globally, achieving transformative outcomes for themselves and others. WE empowers positive change by providing necessary tools and resources that create sustainable impact. We do this domestically through WE Schools, and internationally through WE Villages.
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) TRUSTEES. REPORT ANNUAL REVIEW The period under review has been one of continued change and transformation for the Charity, teachers, and the youth we support. During this period the Ch3ritV simplified and considerably scaled down its operations and programmes to include a virtual WE Schools offering and continued sustainability of our international projects through WE Villages. The transition to our simplified and scaled back model. supported by our digital transformation strategy that was already underway. was achieved with measurable success, as will be evidenced in this report. To provide our WE Villages partner communities the support they needed throughout the ongoing pandemic we also continued our focus and work on providing funds for the COVID-19 relief programme that was introduced in fiscal year 2019120, as well as for their development and sustainability projects. We continued to see successes with both our domestic and international programmes, despite our move to a scaled back model and the ongoing challenges presented by the pandemic faced by us. as well as our beneficiarie5, donors, and funding partner5. Domestic Pro rammes The Charitvs core objective is to ensure that all young people are free to achieve their fullest potential as agents of change. We believe that young people will create positive change locally and globally once they are free from the notion that they are powerless to make a difference. WE Schools Through our online domestic service-learning programme we help youth realise their full potential as compassionate and active members of their local and global communities and empower them to make a difference. WE Schools is reigniting the fundamental purpose of education.. moving students to want to learn, preparing them with the life ski115 to better the world and empowering them to forge their own paths to succe55. Additionally, we provide professional development programming, curriculum-enhancing classroorn too15, and well-being resources to teachers, to enable thern to broaden their ski115et, create a safe and inclusive learnin8 environment Bnd promote their own well-being and that of their students and communities. During the period under review, we have continued to develop a wide range of online educational resources and have placed a special focu5 on re50urce5 that 5UPPQrt well-bein& building resilience, and Social and emotional learning. We have particularly concentiated on providing regul3r virtual events to both teacher5 and students, available live and on demand. All our resources have been housed on our website. including on the WE Schools Hub, and are designed to be used at home, as well as in the classroom. We additionally made resources available to parents and carers. to support home learning and to engage with young people most at- risk. All support options are available free to schools in a digital format as was cornmitted to in response to the COVID-19 pandemic. Our resources are designed to enable students to learn skills in leadership, critical thinking, social emotional learning, and argument formation, amongst others. These are transferable 21, century life skills that are often missed by traditional models of education. WE Charity's support for schools. young people. and families across the UK for the 2020121 year includes the below.
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) WE Schoo15 Hub Our WE Schools Hub is an online platform acce55ible to teachers, students, and families via our web51te, offering a library of educational content free of charge. The classroom resources, le550n plans and tools available are topical and curriculum-matched, all kept in one place to en3ble user5 to easily and effectively take action on local and global issue5 and change the world for the better. New re50urtes are uploaded to the WE Schools Hub whenever available. this year with a focus on providing content on improving well-being. Global Classrooms and Wrtual Celebratlons In replacement of in-per50n event5, Global Cla55room5 are virtual events hosted for young people at secondary school level once a month during the acadernic year. The events allow teacher5, families, and students to connect with others around the world, learn from each other and be inspired to take action on local and global issues. Schools can participate in the live events and interactive broadcasts or watch the videos on demand at their own convenience. In the 2020121 academic year Global Classrooms brought together experts, advocates, and everyday heroes to speak on a range of issues including well-bein& diversity and anti-racism, and the environment, and provided groups with additional re50urce5 to continue the conversation after the events. The final Global Classroom of the vear took the opportunity to celebrate the achievement5 of young people and teachers participating in the WE Schools programme around the wtsrld. Teacher Resour$ and WE Professignal Development Events WE Charity offers a range of resources aimed at supporting teachers in working towards excellence in education and enriching their students, lives. Our teacher resources include issue-based curriculum- matched lesson plans, too15 and campaigns found on our WE Schools Hub, as well as professional development events held once monthly providing virtual workshops that allow teachers to hear from subject matter experts, learn about the WE curriculum, and take part in dialogues on relevant and important topics in education. All our teacher resources help teachers address relevant social issues in their classroom and build capacity to empower their students. Monthly Newsletters and Tèacher Communications Each month during the acadernic year we sent out a newsletter to teacher5 signed up to our email comrnunications, givin8 updates and information on the respective rnonth'5 virtual events, relevant topical resources, and featured campaigns. The newsletter is tailored to a UK audience and aimed at guiding teachers through our WE Schools program. In the latter half of the academic year, we additionally introduced a second UK-focused email communication highlighting new resources and relevant issues to enhance our support to teachers even further. WE Schools Groups Formed by motivated and self-directed teathers and students who are passionate about taking aetion. these groups come together to raise awareness land occasionally fundsl on local or global issues and causes that are important to them, leveraging our campaigns. tools and resources found on the WE Schools Hub.
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) International Pro rammes In pursuit of its charitable aims. WE Charity co-operated with WE Charity Icanadal during the period under review, a charity registered and incorporated in Canada and with whom WE Charity shares similar aims and objectives. WE Charity achieves its objectives with regards to its international programme by financially supporting international projects, to date initiated and carried out by WE Charity (Canadal. To further this initiative, WE Charity provided grants to WE Charity (Canada), which are forwarded to the projects directly or reimburse them for expenditure for Services rendered. As WE Charity Icanadal close5 in fiscal year 2021122, the Charity will continue to co-operate on its international effort5 Wlth WE Charity ICanad31's successor entities. These successor entities will take over the support of international projects in Kenya and Ecuador. In fiscal year 2021122 WE Charity will provide grants to these 5ucce550r entities. WE Villages In Asia, Africa, and Latin America, WE Charity (Canada) has implemented the WE Villages program, a holistic, effective five-pillar model built on 25 years of experience collaborating with dedicated community members and international development experts to find solutions that work. The WE Villages rnodel 15 designed to address the root Causes of poverty and remove the barriers to education to break the cycle of poverty. It is not a handout or single solution, but a combination of key interventions that empower a comrnunity to help themselves through five Pillars of Impact.- Education, Water. Health. Food. and Opportunity. At the heart of the asset- based community development approach lies the belief that the communitvs own assets and resources, including the people. institutions, skills, and capabilities, are the most critical resources for development. In essence, it is an approach that seeks to build sustainable livelihoods and to break the cycle of long-term dependency to promote self-sufficiency. As per WE Charity (Canadal's international sustainability plan and the ultimate goal of our WE Villages programming, the majority of the communities we have supported have been transitioned this year, with projects moving to the local communities who are now set up to sustain themselves in the long term. Due to the impacts and limitations of the COVID-19 pandemic projects in some cornmunities had to be paused in order to omply with local health rnandate5 and ensure the Safety of comrnunity mernbers and staff. Pro ramme Partnershi The Charity has been fortunate to have had many 5tron8 Partners who Supported our programmes for teachers and young people across the UK over the past 11 years. These programmes aim at providing the too15 and educational resources to encourage and equip students to take action and create positive change in their communities at local and international level. Duringfiscal year 2019/20 all partnership programmes were reviewed in light the Charity's decision to scale batk operations, and, in agreement with our partners, the contracts were paused. The remaining funds were either repurposed or returned to the partner over the course of the period under review. WE Charit s Notable Achievements Details of the notable achievements which contributed to achieving the overall objectives of the Charity durinE the period to 31" August 2021 are provided below..
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) WE Schools al Virtual and Digital Domestic Programming Data bl Introduction of Well-being Resources WE Vill3ge5 al Impact Dat bl COVIO-19 Relief Work WE Schools al Virtual and Digital Domestic Programmin8 Data This year we developed and broadened our virtual and digital program delivery. offering 16 interactive virtual events, live and on demand, to students and teachers, providing information on a range of relevant topics, enabling meaningful discussions amongst peers, and inviting subject-matter experts to speak on global issues. Furthermore, we added new digital well-being resources to our website, and the WE Schools Hub, complernenting our existing social action re50urtes and ernpowering young people, teachers, and families to support their well-being and that of their communities during a time when it was needed most. All our digital programming is easily accessible and available free of Charge. Despite the scaled back operational model of the Charity in the period under review, and the minirnised active outreach to schools, we have continued to see a strong number of users and teachers sign up to the WE Schools Hub and download our virtual resources-. A total of 1,765 UK teacher5 are registered to the WE Schoo15 Hub, and subscribed to receive emèils and monthly newsletters engaging them with our virtuèl programming A total of 7,301 resources have been viewed or downloaded to date A total of 16 virtual events were held in the 2020121 academic year, two virtual events per month between October and May, one for students (Global Classroom) and one for teachers (Professional Development) bl Introductlon of Well-belng Resources In the period under review the'lmpr(>ving Well-being, learning outcorne from our learning framework has continued to be a special focus for us and has shown encouraging uptake. This outcome focuses on skills in the area of social and emotional learning and building empathy and a sense cif personal responsibility in young people. We added new well-being resources to our website and the WE Schools Hub and promoted all our well- being related resources in our email communications and newsletters, ensuring that teachers were given the relevant tools and knowledge to guide their students through these difficult times and build caring and inclusive learning environments. At the end of the school year, we highlighted Family & Caregiver resources, equipping families Wlth inforrnation and tools to support their well-being over the summer holidays. Our well-being resources received a significant amount of uptake this year, conveying a need for educational resources on this topic.. April 2021 saw a surge in resource downloads compared to previous months after the addition of a new well-being resource to the WE Schools Hub, with a 155YD increase compared to resource download5 in March
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) Of the 16 virtual events hosted this year, five were focused on the topics of optirral well-being, Social and ernotional learnin& resilience, and 5elf-care, and were the tOPlC5 that received the m05t attention. 2. WE Vlllages al Impact Data With support from individual donations received in fiscal year 2019120, the Charity was able to provide £214.051 in funds towards WE Villages projects during this period. Additionally, during the 2020121 fiscal period the Charity received £43,339 in donations towards our WE Villages projects. which will be reflected in the next statutory accounts. WE Charity (Canadal has made noteworthy progress on helping to implement development projects in WE Village communities. With all five pillars of WE Villages working together, we are confident that the communities we support can become beacons of 5U5tainability and development. Key hi8hlights for the period under review include.. Education.. setting students up for success and on the path to a bright future In Kenya, 40 new classrooms were built this year, and 30 renovations to government-built classrooms were conducted In Ecuador, the Gula8 Community School saw the first high school giaduation ever this year, with 13 students achieving their high school diploma. Of those Eraduates 60% passed the test to access university education in a public university Water: one of the fastest ways to lift a community out of povertv In 2021 alone, over 1,500 community members now have access to clean water in Kenya as a result of new water project installations. This number will continue to grow as we omplete additional water projects currently underway Health.. helping families stay healthy and thrive for generations Over 300.000 community members in Kenya directly engaged and trained on COVID-19 prevention, empowering rural populations to keep themselves safe early in the pandemic Food.. fuelling growing minds and bright future Provided approximately 2.5 million meals to Kenyan students in the 2020121 school year, allowin8 them to focus on their studie5. Thi5 Wa5 especially critical thi5 year a5 many farnilies face econornic hardship and food insecurity during the COVID-19 epidemic Opportunity.. empowering parents and communities to earn a sustainable income Opportunity Eroup training session continued throu8htsut 2020121 despite the challenees presented by COVIO-19 in gathering groups together. These training sessions helped to increase resilience for our communities during COVID-19 and associated lockdowns. Our team held training5 for over 55 opportunity groups, covering a variety of topics including stress rnanagement, entrepreneurship, marketing, time management, credit management, costing & pricing, leadership, group elections, and personal savings. In 2020121, through our beekeeping program in Kenya, which was developed from microloans provided in 2019. we distributed a total of 124 beehives to community groups. This resulted in over 220 kilograms of honey harvested. and over 113,000 KSH of revenue for the opportunity groups. bl COVID-19 Relief Work During the period under review, the Charity has continued to financially contribute to WE Charity io
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) (Canadal's COVID-19 relief plans in Kenya and Ecuador. WE Charity (Canadal's teams on the ground in our WE Villages communities in Kenya and Ecuador have been working collaboratively with both local nd national governments, as well as local medical clinics, to ensure the effective implementation of our COVID-19 relief work in their communities. With a focus on the Health and Food pillars, we were able to achieve the following COVID-19 relief work in Kenya in the period under review.. COVID-19 relief efforts included awareness and education campaigns in the Bomet region, reaching over 100,000 people The Baraka Hospital received ventilators to support any seriou5 case5 of COVID-19 A field unit was set up next to Baraka Hospital to address the spike in COVID-19 cases. To eliminate any cross contaminatitsn of patients, a pre-screening process was added before entrance to Baraka The Baraka Hospital Team started receiving the COVID-19 vaccine, aiding in community immunisation awareness Medical 5upplie5 were provided to Baraka Hospital a5 they prepared to handle a potential influx in new patierit arriva15 To mitigate food insecurity during the pandemic, the team in Kenya has provided over 930.000 nutritious meals to over 100 different communities, in addition to our ongoing sustainable food security investments Focu5 was a150 placed on stren8thenin8 rural small-5cale farmers and Supporting individual homestead gardens to ensure communities remain food secure through the distribution of vegetable seeds We were also able to cornplete some COVID-19 relief work in Ecuador during the period under review.. To support COVID-19 awareness and prevention activities in Ecuador we ran educational campaigns for 1500 community members across 11 communities COVID-19 prevention trainin8 provided to students and community mernber5 in Ecuador included training on important prevention 3spect5 such a5 hand washing, mask wearing, and social distancing WE donated medical supplies to their clinics. including hand sanitisers. vitamins and first aid supplies Focus was also placed on emergency food support,. the team in Ecuador provided over IOOOkg of food and 3000 fish to local families WE Charit Future Plans- 2021 22 Fiscal Yèar The Charity's focu5 continues to be on the 5U5tainability of our domestic program5 and Supporting international projects through WE Villages where po55ible. This fistal year we had great success with our simplified and scaled down operational model, which shifted our WE Schools 50C131 action program to a digital-only forrnat, ensuring that schools, teachers. and students were able to tontinue to benefit from the programming throughtsut periods of school closures and online learning. With this success and the ongoing need for virtual support 8enerated bv the COVID-19 pandemic, the Charity's Trustees made the decision to continue with the scaled down model moving into 2021122 fiscal year. li
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) Public Benefit The Charity Commission in its Charities and Public Benefit Guidance requires that there are two key principles to be met to show that an organisation's aims are for the public benefit. Firstly, there must be an identifiable benefit. Second, the benefit must be to the public or a section of the public. The Trustees confirm that in setting the Charity's objectives and in planning its activities. they have had due regard to the Charity Commission's guidance on public benefit and that they will continue to ensure each year that they will consider how the Charity continues to meet the public benefit objectives outlined of the Charities Act 2011. The organisation's goals and objectives continue to be as set out in the company's memorandum of association and articles.. To advance in life and help younE people by providing support and activities which develop their skills, capacities and capabilities to enable them to participate in society as mature and responsible individuals. To relieve poverty, advance education, relieve sickness and prorrote and protect good health. The Charity will deliver on these goals and objectives in the future by providing teachers and young people in the UK ongoing access to WE Schools programme digitally for free whilst also continuing to support internationally the WE Villages programme. The Trustees are satisfied that the Charity meets with the requirements and conforms with the Act'5 definition of a charity meeting all of the key elements of the two key principles. Financial Review The results of the period set forth on pages 24-46 are the consolidated results of both WE Charity and its wholly owned trading subsidiary We Education Limited (whose sumrnarised individual result5 can be found in note 101. It Is important to note that due to the 5irnplified operating model and the Charity'5 focus on digital delivery, it was decided by the Trustees and our partners in fiscal year 2019120 to pause our corporate and government partner5hip5 and repurpose or return some of the unused programmatic fund5 to our pBrtner5. Thi5 wa5 reflected as a large expenditure in the restricted funds in the fiscal year 2019120 and will be partially reflected during the period currently under review. This expenditure impacted restricted funds only and the Charitv continues to be in a healthy position in respect of its unrestricted funds, which will ensure the Charity's continued ability to maintain its simplified operating model for the foreseeable future. The consolidated gross revenue5 for the period, totalled £147,300 of which £43,339 were re5trict8d fund5 for internation31 programs and £103,961 were general funds. The Charity's principal source of funding in the period derived from individual donors. During the period under review, the Charity spent £635.636 on charitable activities, which includes project grants provided totalling £21,535 and other direct costs including the return of restricted funds to partners of £173,110. A5 of 31st August 2021, the general funds Stood at £358,705 and the restricted fund5 at £43,339. 12
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) Structure Governance and Mana ement Governing Doeument WE Charitrfs governing docurnent is it5 Memorandum and Articles of A550ciation. We Education Ltd. Ire815tered in England and Wales under registration number 085265241 is a trading subsidiary wholly owned by Free The Children IUKI. Directors and Trustees The Directors of the Charitable Company (The Charity) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as Trustees. The Charity may appoint a new Trustee by ordinary resolution. Potential new Trustees may be recommended by members of the existing Board on the basls that the candidate has the required specialist skills needed. Newly appointed Trustees are provided with an information pack about the Charity and are given a briefing, as well a5 detai15 concerning their duties and responsibilitie5 a5 custodians of the Charity. Related Parties WE Charity and WE Charity (Canada) are related parties that share the same founders and the same aims and objectives. They are independent charities with separate governance structures and trustees. Charit Governance Code A new Charity Governance code was introduced in 2017 as a tool to guide best practice in Charity governance,. as part of our commitment to maintaining good governance the management team and the Trustees decided to follow the Charity Governance code guidelines, focusing different priorities each fiscal based on the need of the Charity. During the 2020121 period under review, as WE Charity moved into its scaled back operational model, the board committed to reviewing the principles of 'Organisational Purp05e' and 'Decision Making, Risk, & Control, These principles were address as outlined below and continue to be reviewed. Organisational Purpose- It is important that the board is clear about the charitys aim5 and ensures that these are being delivered effectively and sU5tainably. The successful tran51tion to a di8ltal deliverv method has enabled the charity to continue to achieve its mission and purpose in a more sirnplified and sustainable method. Decision Makin& Risk, & Control The board makes sure that its detision-making processes are informed, rigorous, and timely, and that effective delegation, control and risk-a55e55ment, and management systems are set up and monitored. To practice this, additional financial control measures were introduced including monthly review meetings on the management accounts, internal credit card control processes and bank account reviews between senior management and the Charity's accounting firm supported by meeting minutes that summarize the review discussions and are filled for future reference. Increased touchpoints on cashflow, invoice payments and management accounts between operational Staff and the Board Financial Representative were a150 introduced. As part of WE Charity's commitment to strong governance and to ensure its ongoing compliance with the code, the Governance Codewill continue to be reviewed throughout the 2021122 fiscal year as we remain in our scaled back operational mode. 13
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) Charit Fundralsin The fundraising approach taken by the Charity for the period was to reduce the need for active business development activity in line with the decision to scale back the organisation's operations. The Charity would however retain its other, smaller fundraising efforts made through our online donation platforms. There are some schools who participate in the WE Schools programme who also undertake fundraising activities in support of WE Villa8e5, at their discretion. No professional fundraisers or commercial participators were hired by WE Charitv. The Charity adheres to the following standards of fundraising.. WE Charity seeks to inform. serve, guide. tsr otherwise assist donors who wish to Support WE Charity activities, but never under any circumstances to pressure or unduly persuade. WE Charity does not sell donor information or otherwise share personal information with any party WE Charity partners with companies and funders who share a cornmon vision of empowerment We have complied with these standards for any of the funds raised during this period. There have been no complaints about activities by the Charity in the course of fundraising. The measures the Charity has taken to protect vulnerable people and other members of the public from behaviour in the course of, or in connection with, fundraising activities are detailed in our privacy policy, which an be found in full at htt www.we.or rivac This policy was last updated on l Ortober 2019. The rnost vulnerable population who we encounter in the course of our charitable work ale children. Our policy contains different definitions of consent for different age groups (including special provisions for people under the age of 18 and people under the age of 131. as well as a parental consent form for individuals under the age of 13. Grant Makin WE Charity makes grants to WE Charity Icanadal, a partner charity, in order to fulfil the objectives of the WE Villages programme. The Trustees award grants only after careful considerations on the merits of each application and after ensuring that the grants provided rneet the stated objectives of the Charity. Formal grant request procedures are in place which outline funding required and deliverables to the partner charities. Grants to WE Charity (Canada) are monitored through programme audits contracted on a periodic basis to ensure the quality of the programmatic deliverables and the use of fund5. Pro8ramme delivery and use of fund5 is audited in Canada and verified in the UK. Reserves Polit WE Charity holds financial reserve5 to be applied to future activities in a number of categorie5: General Available to be applied, at the discretion of the Trustees, to any of WE Charity's charitable purpose5. DesiEnated- Those funds which the Trustees have set aside from general funds for the benefit of the particular project. Restricted- To be applied to the specific purposelsl intended by the donor. 14
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) The policy of the Charity is to have target free reserves at a level equivalent to three months expenditure on these items. The Trustees consider that free reserves at this level will ensure that they will be able to continue the Charitvs current activities and scale down model until regular fundraisin8 activitie5 resume. As at 31 August 2021, the Charity held total funds of £358,705 available for general purposes of the Charity which represents more than I years, expenditure. This is above the target set, and the Trustees consider this sufficient based on a review of the 12-rnonth cash flow forecast which shows the reserves will be met for the coming year to ensure the on80in8 Sustainability of our charitable work. Restricted funds stood at £43,339 and there are no designated funds. Goln Concern In assessing going concern, the Trustees have taken into account the Charitvs continued scaled back operational model, which includes online virtual delivery of all programs supported by our global support team IWE Charitv (Canadall until its closure within fiscal year 2021122, followed by the WEllbeing Foundation thereon. no WE Days for the foreseeable future, the current cash position of the Charity, as well as funding limitations, and the cash flow forecast. After reviewing various operational and financial scenarios, the Trustees decided that the scaled back operational model continues to provide the best opportunity to ensure the following.. That the Charity can remain operational for the next 12 months and beyond That the Charity can continue to deliver on its objectives and aims by focusing on the 5UStainability of domestic programmin8 (WE Schoo151 and international projert5 That the Charity can sustain its operational expenses which have been significantly reduted That the Charity has a healthy unrestricted reserve fund to support any unexpected expenses that may arise Based on this review and discussion. the Trustees are confident that the Charity will have sufficient fundine to continue in its revised operational model for the future and to cover all financial liabilities moving forward. Statement of Trustees, Res onslbllltles The Trustees (who are also directors of WE Charity for the purposes of company lawl are responsible for preparing the Trustees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (united Kingdom Accounting Standards). Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure of the charitable group for that period. In preparing these financial statements the Trustees are required to.. select suitable accounting policies and then apply them consistentlv,. observe the methods and principles in the Charities SORP., make judÈments and estimates that are reasonable and prudent- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going concern basis unle55 It Is inappropriate to presume that the charitable company will continue in business. 15
WE CHARITY FOR THE YEAR ENDED 31 AUGUST2021 TRUSTEES REPORT (CONTINUED) The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006 and the Charities and Trustee Investment (Scotlandl Act 2005, the Charities Accounts (Scotlandl Regulations 2006 las amended) and the provisions of the Charitvs constitution. They are also responsible for safeguarding the assets of the Charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Dix105ure of information to auditors Insofar as each of the Trustees of the Charity at the date of approval of this report is aware there is no relevant audit information linformation needed by the Charity's auditor in connection with preparing the audit report) of which the Charity's auditor is unaware. Each Trustee has taken all of the steps that they should have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the Charitvs auditor is aware of that infoirnation. In the period under review, due to the scaled down operational model, the charity is taking advance of the small companies exemption. The trustees report has been approved and signed on behalf of the Board by Lord Rumi Verjee. Lord Rumi Verjee Chairman. Free The Children IUKI Date.. 13th January 2022 16
INDEPENDENT AUDITOR'S REPORT TOTHE MEMBERS AND TRUSTEES OF FREE THE CHILDREN (UK) Independent Auditor's Report to the Members and the Trustees of Free the Children IUK) Opinion We have audited the financial statements of Free the Children IUKI for the year ended 31 August 2021 which comprise the Statement of Financial Activities, Consolidated and Charitable Cornpany Balance Sheet5, Consolidated cashflow statement and notes to the financial stètements, including 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 Practicel. In our opinion the financial statements.. give a true and fair view of the state of the group's and the charitable company's affairs as at 31 Aueust 2021 and of the group's income and expenditure, 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 (Scotlandl Act 2005 and Regulation5 6 and 8 of the Charities Accounts 1Scotlandl Regulation5 2006 lamendedl. Basis for opinion We conducted our audit in accordance with International Standard5 on Auditing IUKI IISA5 IUKII and applicable law. Our responsibilitie5 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 group 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 ba515 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 relatine to events or condition5 that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial staternents 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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. 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. 17
INDEPENDENT AUDITOR'S REPORT TOTHE MEMBERS AND TRUSTEES OF FREE THE CHILDREN (UK) Our re5pon5ibility is to read the other information and, in doing so, con5id8r whether the other information is materially incon515tent with the financial staternent5 or our knowledge obtained in the audit or othenmise 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. 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 director5, report and the Strategic 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 strategic report and the directors, report included within the trustees, report have been prepared in ccordance with applicable legal requirements. Matters on which are required to report by exception In light of the knowledge and understanding of the eroup and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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 (Scotlandl Regulations 2006 requires us to report to you if. in our opinion.. adequate and proper accounting records have not been kept.. 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 cornpanies, exemptions IN preparing the trustee5' directors, report and from the requirement to prepare a strategic reportl. Responsibilities of trustees A5 explained more fully in the trustee5' responsibilitie5 Staternent set out on page 16, the trustees (who are a150 the director5 of the charitable company for the purposes of company13wl are responsible for the preparation of thefinancial statements and for beinÈ satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation cif financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessinE the charitable companrfs 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 35 auditor under section 44llllcl of the Charities and Trustee Investment (Scotlandl Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations 18
INDEPENDENT AUDITOR'S REPORT TOTHE MEMBERS AND TRUSTEES OF FREE THE CHILDREN (UK) 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 auditorfs report that includes our opinion. Reasonable a55urance 15 a high level of assurance, but is not a guarantee that an audit conducted in atcordènee with ISAS IUKI will always detect a material misstatement when it exists. Misstatement5 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. Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. A further description of our responsibilitie5 for the audit of the financial statements 15 located on the Financial Reporting Council'5 website at.. www.frc.or auditorsre5 on5ibilities. Thi5 description form5 part of our auditor'5 report. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error. and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charitie5 Act 2011 and The Charitie5 and Trustee Investment (Scotlandl Act 2005 together with the Charitie5 SORP IFRS 1021. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on th financial statements but compliance with which might be fundamental to the charitable company'5 and the group'5 ability to operate or to avoid a material penalty. We a150 considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were taxation legislation and employment legislation. Auditing stand3rds limit the required audit procedures to identify non-compliance with these law5 and regulations to enquiry tsf the Trustees and other management and inspection of regulatory and legal correspondence. if any. We identified the greatest risk of material impact on the financial statements from irre8ularities, including fraud. to be within revenue rectsgnition, going concern and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and Board of Trustees about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, sample testing of revenue, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements. even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations lirregularitie51 is from the events and transactions reflected in the financial 5tatementS, the less likelv the inheiently limited procedure5 required by auditing standard5 would identify it. In addition, a5 With any audit, 19
INDEPENDENT AUDITOR'S REPORT TOTHE MEMBERS AND TRUSTEES OF FREE THE CHILDREN (UK) there remained a higher risk of non-detection of irregularitie5, a5 these may involve collusion, forgery, intentional omissions, rnisrepresentation5, or the override of intern31 controls. We are not re5pon5ible for preventing non-compliance and cannot be expected to detect non-compliance with all13ws and regulations. Us8 of our report This report 15 made 501ely to the charitable companrf5 members, as a body, in accordance with Chapter 3 of Part 16 of the Companie5 Act 2006, and to the charitable company's trustees, Bs a body, in accordance with Regulation 10 of the Charities Accounts (Scotlandl Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's 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 and the charitable company's members as a body and the charitable company'5 trustees as a body, for our audit work, for this report, or for the opinions we have formed. Julia Poulter Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London Date 17th January 2022 20
FREE THE CHILDREN IUKI, TIA WE CHARITY CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 Notes General Funds Restricted Funds Total 2021 Total 2020 Income From.. Voluntary incomeldonations & Grants Other trading activities Investment income 102,786 1,158 17 43,339 146,125 1,158 17 2.892.090 377.631 122 Total Income 103,961 43,339 147,300 3,269,843 Expenditure on: Raising funds Charitable activities 16.800 5.864.151 363,584 272.052 635,636 Total expendlture 363,584 272.052 635,636 5.880.951 Net incoming resour5 259.6231 1228.7131 488.3361 12.611.108) Transfers 118,343 1118.3431 Net movement in funds Reconclliatlon of funds.. Fund balances brought forward 1141,2801 1347,0561 1488,3361 12,611,1081 499,985 390,395 890.380 3,501,488 Fund balances carried fon¥ard 358,705 43.339 402.044 890,380 All of the above result5 are derived from continuing activities. There are no gains or losses other than the net movement on funds stated above. The notes I to 21 fomi part of these financial statements 21
FREE THE CHILDREN IUKI, TIA WE CHARITY CONSOLIDATED BALANCE SHEET AT 31 AUGUST 2021 Group 2021 Charity 2020 2021 2020 Ntstes FIXED ASSErs Tangible assets Investment5 1.019 1.019 io 1,019 1.020 CURRENT ASSETS Debtors Cash at bank and in hand li 6,210 420,293 426,503 49,870 2,794,421 2,844,291 126,846 410,052 536,898 679.506 2,427.178 3,106,684 CURRENT LIABILITIES Creditors amounts falling due within one year Provisions 12 124.4591 1289,5201 124.4591 1447.0201 13 11,665,4101 124,4591 11,954,9301 11,665,410) 124.4591 12.112.4301 NET CURRENT ASSETS NET ASSETS 402,044 402.044 889,361 890,380 512,439 512.440 994,254 995,274 FUNDS Unrestricted funds.. General Restricted funds 17 18 358,705 43,339 402.044 499,985 390.395 890,380 469,101 43,339 512,440 604.879 390,395 995,274 The notes I to 21 form part of these financial 5tatementS. Gross incoming resources for the parent lintluding in kind donations) for the period under review was £146,169 12020.. £2,892,1481. Net incoming resources for the parent for the period (including restricted funds) was £146.16912020.' £2,623.1351. The Charity is taking advance of the small companies exemption. The financial statements were approved by the 8oard of Trustees and signed on its behalf bv.. Lord Rumi Verjee Chairman. Free The Children IUKI Date 13th January 2022 22
FREE THE CHILDREN IUKI, TIA WE CHARITY CONSOLIDATED CASH FLOW STATEMENT FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 2021 2020 Cash flows from operating activities Net cosh providedby (used in) operatin9 activities 12,374.2951 1538.11)01 Cash flows from investin8 activities Investment income 17 122 Purchase of tangible fixed assets Proceeds from sale of fixed assets 150 Net rqsh provfflded by (used in) investing activities 167 122 Change in Cash and Cash Equivalents in the Reporting Period Cash and Cash Equivalents at the Beginning of the Reporting Period Cash and Cash Equivalents at the End of the Reporting Period 12,374.1281 1537.9791 2,794,421 3,332.400 420,293 2,794,421 lal Reconciliation of operating surplus to net cash inflow from operating attivities Net incorning re50urce5 Investment income 1488,3361 12,611,108) 1171 11221 899 1,349 Depreciation Loss on sale of fixed assets 1301 43,660 531,465 1265,0611 1125,0941 11,665,410) 1,665.410 Decrease / Ilncrea5el in debtors IDecreasel I Increase in creditors Decrease / Ilncreasel in provisions Net cash provided by (used in) operating activities 12,374,295) 1538.11)01 The notes I to 21 form part of these financial statements. 23
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 Free The Children IUKI, trading as WE Charity is a charitable company registered in England and Wales with registration number 07306686. WE Charity is also a registered charitable company in Scotland with registration number SC045815. WE Charity is a children's charity and is unique in that it operates programmes both domestically and internationally, in a manner that is intended to be interrelated and mutually reinforcing. Our overarching mandate is to help children and young people fulfil their potential to be agents of change. WE Charity meets the definition of a public benefit entity under the guidance issued by the Charity Comrnission. The charity is taking advance of the sm311 companies exemption. ACCOUNTING POLICIES a) Basls of preparatlon The accounts (financial statements) have been prepared in accordance with the Charities SORP IFRS1021 applicable to charities preparing their account5 in accordance with the Financial Reportin8 standard applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practice a5 It applies frorn l January 2015. The Trustees have considered the Charitqs scaled down operational model based on 11 continued online virtual delivery of all WE Schools programs and sustainability of internètion31 projects, supported by the WEllbeing Foundation and the WE Charity Foundation Isuccessor entities to WE Charity Icanadall, 21 no execution of WE Day5 for the upcoming year, 31 the current cash positiori of the Charity 41 the funding pipeline, and 51 the cash flow forecast. After careful review the Trustees believe there are no material uncertaintie5 about the ChariW5 ability to continue in it5 scaled down operational model. and therefore the accounts have been prepared under the going concern basis. These financial statements present the consolidated results of WE Charity and its wholly owned trading subsidiary We Education Ltd (Company number.. 08526S241, a charitable company registered in England and Wales. The results of the subsidiary have been consolidated on a line by line basis. No separate income and expenditure account of the Charity has been presented, as permitted by Section 408 of the Companies Act 2006. bl Going concern During the period under review, WE Charity received the majority of its funding from a one-time unrestricted grant from its partner WE Charity (Canada) and donations from individual supportive donor5. In asse55in8 going concern, the Tru5tee5 have considered the opening unrestricted fund balance for the next period and the cashflow forecast for the fiscal year 2021122 and beyond. The ca5hflow forecast was prepared on the basis of a continued operational scale down, with 5ignificantlv reduced operating expenses, no WE Days and no funding from donors. Following the review of 3 variety of operational and financial scenarios, the Trustee5 decided this continued operational Scale back provides the best opportunity for the Charity to best meet its objectives and maintain financial health. Taking into account the assessment of funds and cashflow, as well as the contingency plans in the form of core individual donors who have indicated a willingness to support the Charity if required, the Trustees are confident that the Charity will have sufficient funding to continue in its current scaled back operational state for the foreseeable future, and to cover its liabilities moving forward. 24
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 ACCOUNTING POLICIES Icontinuedl c) Incomè Voluntary income including donations, gifts. legacies or Erants from various individuals. corporations and charitable foundations are recognised when there is entitlement, probability of receipt and when the amount can be measured with sufficient reliability. Such Income is only deferred when.. The donor specifie5 that the grant or donation must only be used in future accounting periods. The donor has imposed conditions which must be met before the Charity has unconditional entitlernent. Donated goods or services received are included in the Statement of Financial Activities as both intaneible income and cost at a value estimated by the Trustees. All incoming resources are reported gr055 before expense5. dl Expènditure Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charitable company to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the cate80ry. Grants payable are payments made to third parties in furtherance of the charitable objectives of the Charity. Grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition. or the recipient has met the condition attached to the grant and the Trustees are satisfied they have done so. Irrecoverable VAT is charged against the category of resources expended for which it was incurred. Support costs Overhead and support costs have been allocated across activity categories on a basis onsistent with the use of the resource, e.g. salaries allocated on the ba515 of estimated time spent and office overheads by estimated usage. Ralslng funds Included in this category are directly associated costs of fundraising consultants. Charitable activities This represents all direct costs (including grants) associated with identified charitable activities together with attributed support cost5. The majority of cost5 noted under charitable activities in the period under review are related to the return of unspent restricted funds. iv) Governance This represents all costs involving public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related with statutory audit and constitutional requirements. 25
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 ACCOUNTING POLICIES Icontinuedl e) Taxatlon WE Charity. as a registered charity, is potentially exempt from taxation on income and gains falling within section 466-493 of the Corporation Taxes Act 2010 and section 256 of the Taxation of Chargeable Gain Act 1992 to the extent these are applied for charitable purposes. Tangible fixed assets The cost of tangible fixed assets is their purchase cost together with any incidental costs of acquisition. Tangible fixed assets are capitalised above £1,000. Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed a55et5 by equal 3nnual inst3lments over their expected useful lives. The rate applicable for Office equipment and furniture is 25%. gl Flnancial Assets and Llabllitles WE Charity has financial assets and financial liabilities of a kind that qualify as basic financial iristruments. Basic financial instruments are iriitially recogni5ed at transaction value and subsequently measured at amtsrtised cost using the effective interest method. Financial assets held at amort15ed cost comprise trade and other debtors. Financial liabilities held at amortised cost comprise, trade and other creditors. Investments in subsidiary undertakings are held at cost less impairment. An analysis of assets and liabilities is set out in Note 14. h) Funds General funds General funds are donations and other incoming resources reteivable or generated for the objects of the Charity without specified purpose. Deslgnated funds Designated funds are those funds which the Trustees have set aside from general fund5 for the benefit of a particular project. Restrirted funds Restricted funds are specifically donated to the Charity where the donor has specified they be used for the benefit of a specific project or for a particular administrative cost. 26
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 ACCOUNTING POLICIES Icontinuedl il Judgements and estimate5 In the application of the Charity's accounting policies, which are described in note I, Trustees are required to make judgements, estimates, and assumptions about the carrying values of assets and liabilitie5 that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Artual results may differ frorn these estimates. The 8stimates and underlying a55umptions are reviewed on an on-going basi5. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affect5 only that period, or in the period of the revision and future periods if the revision affects the current and future periods. In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. The principal accounting policies, as set out above, have all been applied consistently throughout the current reporting period and the preceding year. DONATIONS AND GRANTS General Restrlcted Total Total Funds Funds 2021 2020 Donations and grants 102,786 43.339 146,125 2,721,196 Gifts in Kind 170,894 102,786 43,339 146,125 2,892,090 In the previous period WE Charity benefited from the Government's Coronavirus Job Retention Scheme. During thi5 period total grants received from this scheme was nil12020.. £86,115). Gifts in Kind represent the Trustees, estimate of the value of goods and services received by the Charity. In the period under review the total donated serviced received are nil12020.' £170,894). In previous years the total included donated services from WE Charity (Canada) received for staging th annual WE Day event, including stage production, flight and accommodation costs. 27
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 INCOME FROM OTHER TRADING ACTIVITIES 2021 2020 Sponsorship income WE Day 5pon50r5hip incorne 312,8(X) Other sponsorship income 1,158 64,831 1.158 377.631 28
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 RESOURCES EXPENDED During the previous period and in the period under review resources expended include unspent restricted fund5 returned to fundeis, in line the Charity's move to a scaled back operational model. Grants and other projert osts Event Productlon costs Other dlrect costs Support osts Total 2021 Total 2020 Expenditure on raising funds Fundraising cost 16,800 Charitable activities WE day Event costs 11371 11371 720,677 International Projects-Grants 214,051 214.051 1.139,252 Be the Change- UK School tours 11.3081 9.987 8,679 658,739 Team London 316,709 Boots 12.5091 2.941 432 181,376 VA Scholarship Trip 28,259 28,259 75,612
iwill Fund I
12.3861 8.785 6,400 645,773
iwill Fund 2
12,1401 S,IS3 3,014 535,961 KPMG - WE Schoo15 250,514 Virgin Pa55POrt To Change 15431 2,236 1,693 475,717 Unilever- Dove 14191 14191 47,056 Unilever Persil 13081 13081 30,989 Youth Action Grants 18,000 The Queen's Commonwealth Trust 9,035 1,354 10.389 9.611 Governance 6,592 74,467 81.059 57,807 Other Costs 43 12,500 1135,2711 405.254 282.526 700,358 Total Charitable activities 6,634 21,535 173,110 434,357 635,636 5R64,151 Total resources expended 6,634 21,535 173,110 434,357 635.636 5A80,951 29
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 In the previou5 financial year, a provision was made in respect of clawback funds for variou5 projects. During the peiiod the funds were repaid to the donor5 and any undei or over provision has been released to the statement ALLOCATION OF SUPPORT COSTS AND OVERHEADS Support costs are those expenses incurred in connection with the administration and operation of the Charitv. For the period under review all Supports cost5 were allocated towards delivering the Charity's UK domestic programme. against unrestricted funds or toward international site visits. An analysis of how support costs were allocated is given below.. Salaries & related Offlte Total Totol cost5 overhead 2021 2020 WE Day UK International project-WE Village Be the Change-UK school tours QT Be the Change-UK school tours VA Be the Change-UK school tours GW Virgin Passport To Change Team London Boots KPMG- WE Schools
iwill Fund I
iwill Fund 2
VA Scholarship Trip Unilever- Persil Unilever- Dove Unrestricted funds 5,775 1561 9,171 67,539 1401 108,914 275,052 154,941 78,128 216,195 225,695 564 30,961 30,657 474,554 2,442 7,544 2,442 7,544 2,236 2,236 2,941 2,941 8,785 5,153 8,785 5,153 341,981 63,275 405,255 Total support costs 371.083 63.275 434,358 1,678,050 30
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 ANALYSIS OF CHARITABLE EXPENDITURE BY FUND General funds Restricted funds Total 2021 Total 2020 WE Day International projects Be The Change- UK Schools tours Virgin Passport To Change Team London Boots 11371 214.051 8,679 1,693 11371 214,051 8,679 1,693 720.677 1.139,252 658,739 475.717 316.709 181,376 75.612 645.773 535.961 250,514 9,611 30.989 47,056 18,000 758,165 432 432 VA Scholarship Trip
iwill Fund I
iwill Fund 2
KPMG- WE Schools Queen's Cornmonwealth Trust Unilever- Persil Unilever- Dove Youth Action Grants Other costs 28,259 6.400 3,014 28,259 6,400 3,014 10,389 13081 14191 10,389 13081 14191 363,584 363,584 Total charitable expenditure 363,584 272,052 635,636 5.864.151 GOVERNANCE COSTS Group 2021 2020 Auditor5 fees statutory audit in relation to current period Auditors fees- statutory audit in relation to prior year Non audit fees in relation to Current period Non audit fees in relation to prior year Other Professional Fees 15,000 22,080 16.140 5.205 6,875 59.184 14.382 Total governance costs 81.059 57.807 The increase in professional fees in the period under review is due to the move to a scaled back operational model, includin8 the related leg31 fees which enabled a 5rn00th transition and the outsourcing of finance support. 31
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 INCOME FOR THE PERIOD BEFORETRANSFERS Group 2021 2020 This is Stated after charging.. Auditors remuneration Non audit fees (current auditor) Depreciation 15.000 6.875 899 38,220 5,205 1.349 STAFF COSTS 2021 2020 Wages and salaries Social 5eturitV Costs Employer's pension contributions 339,753 27,417 3,913 371,083 1.232.248 117,706 28,390 1,378,344 Other costs of employment 827 9,534 371,910 1,387.878 Higher Paid Staff - Overall pay for the period 2021 2020 £60,000- £70,000 £70,000- £80,000 £80,000- £90.000 £ioo.000- £iio,000 None of the Trustees of the Charity were remunerated for theirtime or reimbursed for expenses incurred in carrying out their duties. The average number of employees durin8 the period w35 412020.. 361. The reduction in the average number in employees tompared to the previous period is due to the implementation of the staled back operational model in the period under review and the resulting move to a minimised staffing model. Redundancy payments of £125,686 were made in the year12020'. £70,002) these were fully provided for at the previous year end. There are no remaining amounts owed at the year end. Key management personnel were reduced over the course of the period in line with the scaled back operational model. The total remuneration of key management personnel during the year was £284,CM)3 12020.. £457,506). 32
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 TANGIBLE FIXED ASSETS- GROUP AND CHARITY Offlce Equipment & furniture Cost.. At I September 2020 11,859 Additions Disposa15 12,9211 At 31 August 2021 8.938 Depreciation.. At I September 2020 10.840 Disposa15 12,8011 Chaige for the period 899 At 31 August 2021 8,938 Net book value At 31 August 2021 At 31 Auyijst 2020 1.019 33
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 io. INVESTMENT IN SUBSIDIARY COMPANY Charitv 2021 2020 Investment WE Charity owns IOOYO of the ordinary share capital of its trading subsidiary We Education Limited. A summary of the subsidiary undertakings results for the period are given below= Gross income 1,130 Gross expenditure 16,6341 Net1055 for the period 15,5041 Total A55ets 10,239 1120,6361 Net Assets 1110.3971 34
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 ii. DEBTORS Group Charity 2021 2020 2021 2020 Accrued income 4,100 4.100 Trade debtors Other debtors 26,707 26.707 Prepayments 6,210 19,063 6,210 19,063 Taxation and Social Security Amount due from subsidiaiv 120,636 629.636 6,210 49,870 126,846 679.506 35
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 12. CREDITORS.. Falling due within one year Group Charity 2021 2020 2021 2020 Trade creditor5 2,970 244,742 2,970 244,742 other creditors 189 288 189 288 Taxation and Social Security Grant Payable 157,500 Deferred Income Actruals 21,300 44,490 21,300 44.490 24,459 289.520 24.4S9 447,020 13. PROVISONS Group Charity 2021 2020 2021 2020 Redundancy Pay Provision 125,686 125.686 Unspent Restricted Fund Return 1.458,764 1,458.764 Provision Onerous Lease Provision 80,960 80,960 1.665.410 1,665,410 36
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 The provi5i0ns made in the prioT year were all released in the period under review as shown below.. Redundancy Pav Provi510ll Unspent Restricted Fund Return Provision Onerous Lease Provi5i0n Total Provisions Opening Provision Utilised in the year Change in provision Closing provision 125,686 1126,2301 456 1,458,764 11,454,701) -4,063 80,960 191,7231 10,763 1,665,410 11,671,654) 6,244 14. DEFERRED INCOME-GROUPANDCHARITY 2021 2020 Defeired income brought forward 207,800 Income deferred in the period Released in the period 1207.8001 Deferred income carried forward 15. FINANCIAL ASSETS AND LIABILITIES 2021 2020 Financial 3ssets measured at amortised tost 420,293 2,825,228 Financial liabilities measured at amortised cost 124A591 1289.5201 There is income of £1712020.. £1221 in respect of these finantial in5trurnent5. 37
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 16. ANALYSIS OF NET A$Ss OF GROUP BETWEEN FUNDS General Restritted Total funds funds 2021 Fixed assets Current assets 383,164 43,339 426,503 Current Liabilities 124,4S91 124,4591 358.705 43,339 402,044 COMPARATIVE General Restricted Total funds fvnds 2020 Fixed a55ets 1,019 1.019 Current asset5 995,132 1,849,159 2,844,291 Current Liabilities 1496,1661 11,458,764) 11.954.9301 499,985 390,395 890,380 38
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 17. GENERALFUNDS 2021 2020 As at I September 499,985 1,015,549 Movement in the period 1259,6231 1712,9091 Transfer from restricted funds 118,343 197,345 At 31 August 358.705 499,985 39
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 18. RESTRICTED FUNDS 8alonce us Incoming Outgoing Transfers At I September funds funds 2020 Balance as At31 2021 Domestic programme funds Be the Change-virgin Be the Change- Queens Trust Be the Change Virgin Sustainabilitv Grant Initiative Boot5 6.671 2.008 7,572 2.008 901 19011 432 19011 432
iwill Fund I
iwill Fund 2
Queen's Commonwealth Trust Virgin Pa55POrt To Change Unilever- Dove Unilever- Persil WE Day UK 6.400 3,014 10.389 1,693 6,400 3,014 10,389 1,693 14191 14191 13081 1119.3031 11371 1,399 118.995 11,5361 WE Villages WE Villages- Kenya WE Villages- India WE Villages- Ecuador WE Villages- Sierra Leone WE Villages- General/others Virgin Scholarship Trip 29.577 91.736 692 40,901 29,577 91,736 692 40.901 1,452 90.594 1.452 90.594 2.438 2.438 28.278 28.259 1201 Total funds 43 339 272 053 118 343 40
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 COMPARATIVE RESTRICTED FUNDS Bolance us At I September 2019 Incomlng Outgolng funds funds Transfers Balance as At 31 August 2020 Domestic programme funds Be the Change-virgin Be the Change - Queens Trust Be the Change Garfield Weston Be the Change- Virgin Sustainabilitv Grant Initiative 539,784 126.774 1.845 533,113 124,766 1401 6,671 2.008 11,8851 901 901 Team London School'5 Programme 28.709 288,000 316,709 Boots
iwill Fund I
iwill Fund 2
KPMG- WE Schoo15 Queen's Commonwealth Trust Virgin Pa55POrt To Change Unilever- Dove Unilever- Persil Youth Action Grants WE Day UK 70,098 318,839 230.675 250,514 111,710 333,334 308,300 Iso,000 20,000 196,256 85,000 150,000 18,000 161,582 181,376 645,773 535,961 2SO,514 9,611 475,717 47,056 30,989 18,000 156,076 432 6,400 3.014 1150,0001 10.389 1,693 281,154 137,9441 118,995 458 17,5001 11,5361 WE Villages WE Villages- Kenya WE Villages- India WE Villages- Ghana WE Villages- China WE Villages- Haiti WE Villages- Ecuador WE Villa8es- sierra Leone WE Villages- Nitaiagua WE Villages- Tanzania WE Villages- General/Others Virgin Scholarship Trip Be the Change IGloball- Virgin 58.886 44.260 159 49.186 2.996 6.591 543 29.577 91.736 58.886 44,260 159 49.186 2.996 6.591 543 29.S77 91.736 692 1,452 692 1.452 6,535 3.115 6,535 3,115 274.813 98.923 692,580 876.799 4,967 75.612 90.594 28.278 90,182 90.182 Total fund5 2485940 2643186 4541386 197 345 390 395 41
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 DOMESTIC PROGRAMME FUNDS The majority of domestic programme funds in the period under review represent monies expended towards staff tirne costs at the beginning of the f15cal year to compensate for work completed towards the pausing of partnerships between the Charity and its corporate and non-corporate partners, in line with the scaled back operational rnodel. Any unspent domestic programme funds were returned to the respective partner or repurposed for the Charity's Ereatest need. in line with partner agreements. No monies were received for domestic programme funds during the period. INTERNATIONAL PROGRAMME FUNDS WE Villages Each of the respective funds listed under this heading relateto monies specifically received towards development of those communities identified via the WE Villages programme as explained in the Trustees report. Virgin Scholarship Trip fund This fund relates to grants specifically received frorn Virgin Atlantic Foundation and expended on scholarship overseas trips. During the period the final instalment towards a pre-pandemic scholarship overseas trip was expended. 19. CONTROL The Charity is ultimately controlled by the members. 20. COMPANY STATUS WE Charity is a company limited by guarantee. The members are liable for the debts and liabilities of the Charity to an amount not exceeding £10 in the event of a windin8 up during membership or one year afterwards. 21. RELATED PARTY TRANSACTIONS Durine the period the Charity made grants tota11inE £223,730 for internationa1 projects to WE Charity ICanadal12020.. £628,554). WE Charity (Canada) is a registered charity in Canada that shares the same objectives and purpose as WE Charity. They primarily administer and co-ordinate the international proErammes which include WE Villages. As WE Charity ICanad31 closes in autumn 2021. the Charity will act as a grant making body for WE Charity ICan3dal's successor entities WEllbeing Foundation and WE Charity Foundation, which will assume the administration and co-ordination of the international programmes intluding WE Villages. WE Charity's subsidiary, We Education Limited (Company Reeistration Number.. 085265241 makes a gift aid donation to the Charity of its taxable profit5 each year. At the end of thi5 period, there wa5 no balan transferred due to the company's carried forward loss from previous periods. 42
FREE THE CHILDREN IUKI, TIA WE CHARITY NOTES TO THE FINANCIALSTATEMENTS {CONTINUEDI FOR THE 12 MONTH PERIOD ENDED 31 AUGUST 2021 At the end of the period the net liabilitie5 of WE Education Limited are £110,39812020'. £104,894), with turnover of £1,12812020.' £535.1951 in the period and total expenditure of £6,63412020.' £523,168). Audited account5 for WE Education Lirnited can be obtained fiorn the addre55 noted on page 2. The Trustees made donations of £40.0 to the Charity during the period12020= £685.0001. 43