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2020-12-31-accounts

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

CORPORATE INFORMATION

Board of Trustees S Bell (Chair)
J Dunstan
R Wormald
M Johnston
(appointed 1 December 2020)
Senior Executive P Palmer (Company Secretary)
(appointed 28 July 2021)
7 Bell Yard,
London,
Registered ofce WC2A 2JR
+44 (0) 737 648 1780
Company number 07193829
UK registered charity number 1140288
Contact details
Website: https://www.hollows.org/uk/
HSBC Bank Plc
City of London Branch
Bankers 60 Queen Avenue Street
London
EC4N 4TR
BDO LLP
Auditors 55 Baker Street
London, W1U 7EU

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

CONTENTS

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1 Trustees’ Report 4
Chair’s Report 4
Purpose and Contribution 5
Achievements, Performance and Development 6
Fundraising Report 9
Financial Review 11
How we Manage our Affairs 14
2 Independent Auditors Report 19
3 Statement of Financial Activities 22
4 Balance Sheet 23
5 Notes to the Financial Statements 24
6 Acknowledgements 34
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THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

CHAIR’S REPORT

The Fred Hollows Foundation (UK) continues to make real progress towards our goal of ending avoidable blindness. In February, The Fred Hollows Foundation (UK) celebrated this along with great gains in eye health in the Pacific with an event held at Australia House, London. The event was attended by all current serving UK Trustees, with guest speakers, Australian Chair John Brumby and Dr Jambi Garap (President of the National Prevention of Blindness Committee and recently appointed Senior Lecturer at the School of Medicine and Health Sciences at the University of Papua New Guinea). Many other achievements and organisational developments are outlined within the pages of this report.

Daryn Deiley, Chief Operating Officer of The Fred Hollows Foundation Australia and Company Secretary, met with the UK Trustees in January 2020 to discuss the Strategic Plan and engagement between the Australian and UK boards following the December 2019, International Entities & Associates meeting in Sydney. The inaugural meeting was attended by UK Chair, Stephen Bell, for the UK along with representatives from all Entities (HK, USA, Kenya), Associated Agencies (The Fred Hollows FoundationNZ, India Vision Institute), Associated Hospitals (Tilganga Institute of Ophthalmology, Pacific Eye Institute, Alina Vision), Medical Teams, Executive Leadership Team and The Foundation’s Board.

In March Ian Wishart, CEO The Fred Hollows Foundation Australia, met with the UK Trustees via video call to discuss an initiative called Reset and Sustain, launched to shape the future of The Foundation and re-imagine a new way of working in this changing world.

In March 2020, we found ourselves in a period of unique global financial uncertainty and a period where our revenue projections had to be lowered due to those global challenges and the recent bushfires in Australia. The aim of Reset and Sustain was to ensure the financial and organisational sustainability for the long-term by creating a cost base which was as efficient as possible but still enabled The Foundation to continue to maintain our impact for those with avoidable blindness.

In November 2020 Ian Wishart, and UK Trustees signed a Collaboration Agreement between The Fred Hollows Foundation and the UK entity. The Agreement seeks to ensure global alignment around the Governance Objective, through Vision, Values, Purpose and Contribution, and efficiency in operations on a global scale while encouraging empowerment of each valuable local entity and respecting the discrete responsibilities of each such entity.

The Trustees, who are also directors of the charitable company for the purposes of the Companies Act, are proud to present this annual report and the audited financial statements of the organisation for the year ended 31st December 2020. These accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)”.

Governing document

The Fred Hollows Foundation (UK) is a registered charity (No. 1140288) and a not for profit company limited by guarantee (No. 7193829). The organisation is governed by its Articles of

Association (a copy of which is available at the registered office) and a voluntary Board of Trustees.

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

Public Benefit Statement

The Fred Hollows Foundation (UK) develops its strategic plans to ensure that the organisation provides public benefit and achieves our aim of ending avoidable blindness. We do this by building support for the provision of universal access to high quality and affordable comprehensive eye care services.

Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing The Fred Hollows Foundation (UK)’s aims and objectives and in planning activities and setting policies for the year ahead.

On behalf of the Board of Trustees of The Fred Hollows Foundation (UK).

S. Bell, Chair 1 September 2021

PURPOSE AND CONTRIBUTION

Background

The Fred Hollows Foundation (UK) works to eliminate avoidable blindness in developing countries. Inspired by the work and example of the late ophthalmologist Professor Fred Hollows; the organisation was established in the UK in 1998 with a vision of a world where no one is needlessly blind.

The Fred Hollows Foundation (UK) is an independent and secular professional development organisation that aims to promote and preserve good health of the public anywhere in the world, with particular focus on eye care in developing countries. We do this broadly by

associated training programmes concerned with ocular surgery;

The Fred Hollows Foundation's (UK) contribution and purpose have been agreed as follows:

Purpose

We are determined to deliver Fred Hollows’ vision of preventing blindness and restoring sight. We work to ensure that our efforts increase the global reach of The Foundation’s 2019-2023 Strategy and that we build Fred Hollows’ legacy of breaking down the barriers to quality and affordable eye care for all. We use our geographic

location in the United Kingdom and Europe to amplify The Foundation’s ability to deliver impact and drive success.

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THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

Contribution

Sharing global advancements and embedding leading practices in disease management, inclusion, health systems financing, and operational compliance from the UK and Europe.

Amplifying our advocacy framework and positively

positioning The Foundation with new and existing audiences/stakeholders.

Forging strategic (public and private) partnerships and securing institutional funding which achieve our vision and purpose.

ACHIEVEMENTS, PERFORMANCE AND DEVELOPMENT

We are determined to deliver Fred Hollows’ vision of preventing blindness and restoring sight. Although programmatic work was heavily disrupted by the effects of COVID-19, blindness and vision loss don’t stop with a global pandemic. In fact, the enormous disruption caused by COVID-19 has only made the situation worse. People who could have accessed treatment and care have been unable to. The backlog has grown, making our work even more critical. In 2021, there are more people with vision loss and blindness as a result of the pandemic.

In many countries eye health services have resumed. But they have resumed in a new “Covid-safe” way. The Foundation has supported the provision of Personal Protective Equipment, new ways of working and adapted programs to recognise the need for social-distancing and lockdowns. We are constantly revising our guidance and support for safe working environments, for staff, partners and patients. We will continue to resource this work for as long as needed to ensure safety.

As the pandemic is controlled and the global vaccination program rolls out, The Fred Hollows Foundation is focussed on scaling up our programming to meet the unmet demand. Because of the support of our donors, we are fortunate to have some funds in reserve to grapple with some of the backlog but will need more to get back to the service levels that existed before the pandemic.

We work to ensure that our efforts increase the global reach of The Foundation’s 2019-2023 Strategy. We continue to build Fred Hollows’ legacy of breaking down the barriers to quality and affordable eye care for all. We use our geographic location to amplify The Foundation’s ability to deliver impact and drive success.

During 2020;

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

1,000 participants representing nearly 300 organisations from 80 countries. During the opening plenary session, they heard from key development stakeholders outside the Neglected Tropical Disease (NTD) community talk about the value and imperative of cross sector collaboration to drive and achieve the 2030 Sustainable Development Goals (SDG) targets.

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THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

Key achievements in 2020

The Fred Hollows Foundation (UK) supported work in a number of areas of the world in 2020. The most significant of these areas were in Pakistan, Ethiopia, Kenya and Pacific countries.

In 2020, the following results were achieved for our major UK funded projects:

UK Highlights

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EYE OPERATIONS AND
3,951 TREATMENTS PERFORMED 58% 20% (22% UNKNOWN)
6.29M+ PEOPLE TREATED WITH ANTIBIOTICS FOR TRACHOMA 50% 50%
PEOPLE TRAINED, INCLUDING SURGEONS, NURSES, COMMUNITY HEALTH WORKERS AND TEACHERS 47% 51% (2% UNKNOWN)
9,017
PEOPLE
546,790 SCREENED 58% 40% (2% UNKNOWN)
LEGEND FEMALE MALE
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TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

FUNDRAISING REPORT

The Fred Hollows Foundation (UK) raises funds from a range of audiences including Trusts and Foundations, Corporate partners and individuals.

No new, significant contracts or grants were secured in 2020. Fundraising and the ability to disburse funds for most of 2020 was severely affected by the global effects of the COVID-19 pandemic. Donors redirected some expected grants and released specific new funding in response to COVID-19 whilst instructing some existing grant holders to redirect funds to COVID-19 activities. Uncertainty caused by COVID-19, Brexit, the amalgamation of DFID and Foreign Office into the FCDO, and the UK’s decision

to reduce its overall ODA budget from .7% of GNI to .5% slowed the release of many new expected ODA contracts and grants from the newly formed FCDO. Although uncertainty of FCDO budget allocations and the slow recovery from COVID-19 are expected to affected new funding from the FCDO in Q1-2021 and Q2-2021 there is likely to be more certainty and a greater flow of new opportunities emerging from the UK government through FCDO and other departments and instruments as the year progresses.

Below are our key donors from 2020, listed alphabetically:

FCDO – Foreign Commonwealth and Development Office

In 2020, FCDO contributed a total of £840,648 (2019: £2,318,808 ) to The Fred Hollows Foundation (UK). £101,760 (2019: £1,252,614 ) to activities in

Ethiopia and Kenya and £738,888 (2019: £1,066,194) to activities in Pakistan and the Pacific.

The Fred Hollows Foundation in Australia

For its role as part of the global ‘Fred Hollows‘ network, The Fred Hollows Foundation(UK) receives financial support for its operations. This involves the reimbursement of office operating expenses inclusive of salaries for employees, overseas and domestic travel, and Trustee meeting expenses. These arrangements will be in place for the

foreseeable future. In 2020 The Fred Hollows Foundation in Australia reimbursed expenses totalling £689,225 (2019: £433,061) to The Fred Hollows Foundation (UK). Amounts receivable at the year end from The Fred Hollows Foundation in Australia was £166,553 (2019: £825,414 ).

The Queen Elizabeth Diamond Jubilee Trust in the UK

The Queen Elizabeth Diamond Jubilee Trust is a charitable foundation established to celebrate the Diamond Jubilee of Her Majesty The Queen and commemorate her lasting legacy. Their mission is to enrich the lives of all people within the Commonwealth by working with partners to tackle avoidable blindness and empower a new generation

of young leaders. The Trust’s Trachoma Initiative was tackling blinding trachoma in 10 countries in three regions. In January 2020, The Queen Elizabeth Diamond Jubilee Trust closed.

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THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

Fundraising Disclosures

The below paragraphs are written in accordance with the Charities (Protection and Social Investment) Act of 2016. - The Fred Hollows Foundation raises the majority of its funds through engagement with institutions and foundations. The Foundation only receives minor donations from the general public. These donations are made via the Foundations website.

The Foundation does not engage any fundraising agencies to undertake fundraising on our behalf. Any email newsletters with fundraising call to actions have a clearly marked method of unsubscribing. Any member of the public who unsubscribes is automatically removed from The Fred Hollows Foundation’s subscription list. There have been

no complaints about our fundraising activities in 2020. The Foundation adheres to the Fundraising Regulators fundraising code of practice. We are committed to fundraising in a way that is respectful, open, honest and accountable to the public.

The Foundation has adopted The ACFID Code of Conduct (the Code), a voluntary, self-regulatory industry code of good practice. The aim of the Code is to improve the outcomes of international development and increase stakeholder trust by enhancing the transparency and accountability of signatory organisations.

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

FINANCIAL REVIEW

In 2020 The Fred Hollows Foundation (UK) had total income of £1,950,559 (2019: £4,727,366), comprising support listed by the value of contribution in 2020:

In 2020, The Fred Hollows Foundation (UK) incurred total expenditure of £2,682,965 (2019: £4,021,158) producing an overall deficit of £732,406 (2019: surplus of £706,209).

Total fund balances decreased to £685,454 at the end of the year (2019: £1,417,860). Unrestricted reserves were higher than last year at £226,932 (2019: £212,044). Restricted fund balances were £458,522 (2019: £1,205,816).

Future prospects

Business as usual: the organisation will continue to position for and respond to, specific institutional grants and contracts across a range of donors in the UK and Europe whilst strengthening relationships with managing agents and partner INGOs to enable collaborative, consortium proposals in the eye health and broader health systems strengthening sector.

Strategic growth: Underpinning the development of and informing our 2021 (and beyond) fundraising growth (supporting the core resource mobilisation remit of the organisation) will be an ODA fundraising strategy. This strategy, and subsequent operationalisation, will encompass partnership building, programme design, advocacy, communications and support functions. Building on market intelligence the organisation will take a strategic approach to building a balanced portfolio of grant funding using a ‘mixed capital model’ – by accessing government bi-lateral funds in the UK and Europe, multi-lateral funds, funds from strategic foundations and basket funding, special funding instruments and social impact investments. A mixed capital model combines different forms of capital and donors in a way that balances risk and talks to leverage and value for money imperatives of donors. A few key points of note:

partnerships and where clear impact evidence exists;

Consequently, our UK/Europe ODA Fundraising strategy will entail working closely with our colleagues across the global organisation to:

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THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

proposal designs, innovate new ideas and business models, channel financial resources and bring new partnerships to support our country missions and strategies: ensuring our programme designs respond to the priorities of ODA and other donors grant calls and/or commercial contracts.

As well as existing advocacy and communication initiatives, we will seek to align advocacy initiatives and target our communications in a way that supports the fundraising strategy. Such a model seeks to influence decision and ODA policy makers to support our vision and mission and allocate needed resources to the eye health sector. As a global leader on eye health, The Fred Hollows Foundation is in a unique position to identify and unlock significant new funding and build a global audience to support eye health programs. As such our advocacy, will continue to support our organisational objectives and goals including:

dissemination of WHO policy frameworks and; advocate for resourcing of the WHO GET2020 global trachoma program and focussing on mass drug administration (MDA) safety, Successful water, sanitation and hygiene (WASH), and cross sector collaborations.

COVID19: the global pandemic is highly heterogenous in its effects in different countries, social and political economies and demographics. Through 2021 we expect this to continue to influence our ability to deliver work, demanding we adapt and innovate to changing circumstances. To date work has been variously disputed in most countries. Whilst Trachoma Elimination work, requiring close contact between health workers and beneficiaries, may not be possible. However, digital and delivery innovations and health system strengthening funding is flowing into these spaces and offers a fundraising opportunity for the organisation.

Programmatic

potential recipient of NCDs, Gender and Education funding through established consortia.

Organisational

Foundation’s priorities across our fundraising markets. This includes identifying needs and opportunities, working closely with other departments to address what changes are needed, overseeing and quality assuring crossdivisional input.

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

Going concern

The current global pandemic with COVID-19 continues to cause operational challenges to The Foundation’s planned work. Despite this, other decisions and actions have ensured it has not had a significant detrimental impact on the financial results of The Foundation. However, we are aware there is a backlog of our critical work to reduce vision loss and blindness as a result of the pandemic. For this reason, Fred Hollows Foundation in Australia have planned to use funds from their accumulated surplus for future programming to ensure we can impact the backlog once operating conditions have stabilised.

The financial statements have been prepared on the going concern basis. The Fred Hollows Foundation in Australia has given the necessary assurances,

via a Letter of Comfort on April 2021, that sufficient resources will be made available such that the charity can meet its liabilities as and when they fall due, and for at least the twelve months from the date of approval of these financial statements.

Given the continued support of The Fred Hollows Foundation in Australia and the strength of their balance sheet, the Trustees believes that, while uncertainty exists, this does not pose a material uncertainty that would cast doubt on the charity’s ability to continue as a going concern. The Trustees therefore consider it appropriate for the accounts to be prepared on a going concern basis.

Reserves policy

The organisation’s policy concerning reserves is to have funds available to meet liabilities as they fall due and meet any emergencies or financial difficulties. As part of the global ‘Fred Hollows’ network, the amount of reserves needed are guaranteed by The Fred Hollows Foundation in Australia. The UK Trustees’ free reserves target is to meet contractual and legal liabilities and ethical obligations.

The current unrestricted funds are £226,932 (2019: £212,044). Reserves are within the policy range at the end of 2020. Level of Reserves required is £150,000 to £200,000 which is the yearly range for three months worth of Operational expenditure for the Foundation.

Restricted Funds

These funds are tied to particular purposes, as specified by the donor or as identified at the time of a public appeal.

They are not available for use in other Fred Hollows Foundation work. At the year-end, unspent restricted funds were £458,522 (2019: £1,205,816).

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THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

HOW WE MANAGE OUR AFFAIRS

Governance and internal control

The Board of Trustees of The Fred Hollows Foundation (UK) is responsible for the governance of the local entity. The Board has provision to meet up to four times a year to review performance and to agree plans relating to the organisation’s financial, operational, developmental activities. In 2020, Trustees had four formal meeting and four informal events, activities and briefings.

A strategic framework establishes our developmental and partnership focused priorities and a corporate governance charter sets out the principles and practices that Trustees uphold and

implement to fulfil the public trust vested in them to protect Professor Fred Hollows’ legacy and achieve his vision for a world without blindness.

Trustees look to senior staff for high quality, well informed advice upon which to base to inform discussions and decisions about the organisation’s objectives, plans and strategies. In 2020, the day to day running of the organisation was managed by Daryn Deiley. Mr Deiley acted as the local Company Secretary and was the senior member charged with management of The Fred Hollows Foundation (UK).

Appointment of trustees

The appointment of new Trustees and advisors is the collective responsibility of the existing Board of Trustees. New Trustees who can help meet the strategic ambition of The Fred Hollows Foundation (UK) and provide an appropriate mix of expertise and experience are appointed. The maximum continuous, uninterrupted period for which a director can hold the office of director is three 3 year terms. Up to nine trustees can serve on the Board at any one time.

The Board of Trustees terms will be determined in line with the Articles of Association, with terms commencing with the new Articles as finalised in 2018.

Effective 1 December 2020, Australian board member, Michael Johnson was appointed to the UK board.

Trustee induction

Induction of new Trustees is performed by the Chair and Company Secretary. Trustees are presented with The Fred Hollows Foundation (UK) Orientation Pack for Board Members containing a strategy, governing document, legal responsibilities, corporate governance charter, minutes of previous Board meetings, conflict of interest policy,

safeguarding policy and programmatic goals and activities. New Trustees are also presented with a copy of the National Council for Voluntary Organisation’s (NCVO) Good Trustee Guide. The induction concludes with a meeting with staff to further discuss the organisation’s global objectives, goals and strategies.

Organisational development

The company operates within the global ‘Fred Hollows’ network. It coordinates and leads a range of advocacy, programming, partnership, and resource mobilisation activities aligned with the organisation’s strategy and relevant sectoral strategies and industry codes. The strategic objectives of the organisation remain the same.

The Fred Hollows Foundation (UK) continues to host two positions, project coordination position

and communications position for the International Coalition for Trachoma Control (ICTC).

During 2020, there was one additional seconded position and one redundancy. The total number of full-time organisational employees is nine, including The Foundations Medical Director who splits his time between countries as required. This also includes two seconded members of staff from Pakistan and Australia. The number of hosted positions is two.

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

RELATED PARTY

Affiliated interests

The Fred Hollows Foundation was established in Sydney, Australia, in 1992 by the late Professor Fred Hollows, a renowned ophthalmologist and humanitarian. Since then, The Foundation has established a worldwide reputation for strengthening health systems to develop comprehensive, high quality and affordable eye care systems in the developing world. Related entities in Australia, the United Kingdom, Kenya and most recently Hong Kong, Alina Vision Pte. Ltd, Alina Eye Hospital Social Enterprise Company Limited, and the United States of America, form an international ‘Fred Hollows’ network to achieve shared development objectives. The Fred Hollows Foundation (UK) is part of that global network which is headquartered in Australia and named The Fred Hollows Foundation.

The Fred Hollows Foundation in Australia is a key funding and project partner and the sole member of the UK charitable company. The Foundation is committed to supporting the ongoing development of The Fred Hollows Foundation (UK) as part of the global network.

The Fred Hollows Foundation (UK) is an active:

The organisation’s programmatic activities and objectives are aligned to both WHO’s Global Plan of Action for Access to Universal Eye Health and the WHO SAFE (Surgery, Antibiotics, Facial Cleanliness and Environmental Improvement) treatment strategy for the elimination of trachoma as a public health problem; ensuring shared objectives and coordinated global activities to eliminate avoidable blindness.

The organisation also partners with Sightsavers through a strategic organisational partnership to leverage collective resources and work collaboratively across eye health and the broader global health agenda.

Pay policy for senior staff

The Trustees and the Company Secretary comprise the key management of the charity in charge of controlling and operating The Foundation on a day to day basis. All Trustees give of their time freely and

no fees are paid to them. Staff salaries are regularly reviewed relative to benchmarks set by charities of a similar size and nature.

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THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

Risk management

The Fred Hollows Foundation (UK) management and Board, with support from the global Fred Hollows Foundation Group, is responsible for overseeing risk management in the UK, including ensuring risks , material incidents and investigations are appropriately identified, analysed and managed. In 2020 UK risks were documented in global

divisional and functional risk registers and any risks with a residual rating of High and Very High escalated through a quarterly risk report including to The Fred Hollows Foundation UK Board. Very high risks are also escalated directly out of cycle.

Key risks and controls identified for the Foundation in 2020 were

Risk Controls
People Management: increasing
concern for staf mental well-being
due to ongoing COVID-19 physical
distancing and government lockdown
restrictions coupled with staf not
having appropriate leave due to
travel restrictions		 A continual focus during 2020 has been the emphasis on
staf wellbeing. Measures implemented to manage this risk
have included
•
provision of information to help staf manage their mental
health
•
staf encouraged to take annual leave to enable
appropriate downtime
•
staf encouraged to take sick leave for mental health days
•
enhanced mental health support initiatives such as ME
day and meeting free Wednesday each month
Clinical Practice: the quality of
cataract data collected by partners
and the lack of reporting of Serious
Untoward Incidents (SUI) has
implications for clinical risk oversight
and management.		 Remediation measures to address these issues include
mandatory reporting processes for partners, and inclusion of
contractual clauses in the Annual Partnership agreements
Data Privacy & Information Security:
inadequate security controls resulting
in potential loss of sensitive data		 The Foundation maintains a robust security control
environment to protect our systems from potential cyber
threats which include technical controls and staf education
and awareness. Technical measures include:
•
Automated scanning for vulnerabilities and modifcations
to software
•
Monitored anti-malware systems for all end-point devices
and servers
•
Monthly patching of core systems
•
Firewalls, internal network segmentation and encryption
•
Standard hardened server build confguration
•
Password complexity, change frequency and multi-factor
for core systems and high-risk people
•
Daily monitoring of security logs and escalation to service
desk and IT
•
IT change control and security incident management
processes including mandatory notifcation to regulatory
bodies and banking partners

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

Risk Controls
Fundraising: ongoing implications of
COVID-19 resulting in potential and/
or continued loss of major donor
income, loss of corporate income
from major partners and loss of
income from reduced capacity of
major partners and key supporters.		 Continual monitoring of government restrictions and
guidelines and liaise with other agencies and the sector
regulatory body to re-establish channel where safe to do so.
The potential impact of revenue loss to broader organisation
was mitigated by underspends and strength of revenue in
other channels.
Projects are in place in the 2021 workplan to diversify regular
giving channels.
Safety & Security: Covid-19 continues
to threaten the health of our staf
and our partners. While the level of
threat varies between and within
countries, it is a global pandemic so
the ongoing risk of resurgence in all
countries remains.		 Key controls in place to address the ongoing impact include
•
Active monitoring in all locations, immediate reporting of
incidents and response protocols
•
Staf COVID safety education conducted
•
COVID safety precautions and resources in place
•
Partial or full ofce closures as required, with safety plans
in place
•
Program stops or adjustments as required, with risk
mitigations plan in place
•
International and local travel restrictions

Auditors

So far as each person who was a Trustee at the date of approving this report is aware, there is no relevant audit information, being information needed by the auditor in connection with preparing its report, of which the auditor is unaware. Having made enquiries of fellow Trustees and the organisation’s

auditor, each Trustee has taken all the steps that they are obliged to take as a Trustee in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Registered office: 7 Bell Yard, London, WC2A 2JR

Signed on behalf of the Trustees

Trustee: Stephen Bell (Chair) Date: 1 September 2021

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THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

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

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

Notes:

  1. The maintenance and integrity of the http://unitedkingdom.hollows.org web site is the responsibility of the trustees; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the web site.

  2. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

  3. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

INDEPENDENT AUDITOR’S REPORT TO MEMBERS OF THE FRED HOLLOWS FOUNDATION (UK)

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of The Fred Hollows Foundation (UK) (“the Charitable Company”) for the year ended 31st December 2020 which comprise the statement of financial activities, the balance sheet and 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).

Independence

We remain independent of the Charitable Company 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.

Conclusions related 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 Charitable Company'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.

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other information

The Trustees are responsible for the 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 other information comprises: the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise

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THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

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.

Other Companies Act 2006 reporting

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

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustee’s report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion;

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes 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 determines 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 Charitable Company’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 the Companies Act 2006 and report in accordance with the Act 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.

20

INDEPENDENT AUDITORS REPORT TO THE MEMBER OF THE FRED HOLLOWS FOUNDATION (UK) FOR THE YEAR ENDED 31ST DECEMBER 2020

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

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:

one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://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. 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, for our audit work, for this report, or for the opinions we have formed.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting

Jill Halford (Senior Statutory Auditor)

For and on behalf of BDO LLP, statutory auditor London, UK 14 September 2021

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

21

THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

STATEMENT OF FINANCIAL ACTIVITIES

(Including Income and Expenditure account) As at 31 December 2020

----- Start of picture text -----
Restated Restated
(Note 20) (Noted 20)
Note Unrestricted Restricted 2020 Unrestricted Restricted 2019
funds funds Total funds funds Total
£ £ £ £ £ £
Donations &
– –
713,878 713,878 480,903 480,903
Intercompany Support
Charitable Activities – 1,236,681 1,236,681 – 4,246,463 4,246,463
Total Income 3 713,878 1,236,681 1,950,559 480,903 4,246,463 4,727,365
Expenditure Raising 4 158,557 – 158,557 126,587 6,413 133,001
Funds
Expenditure Charitable
5 540,433 1,983,975 2,524,408 335,890 3,552,267 3,888,157
Activities
Total Expenditure 698,990 1,983,975 2,682,965 462,477 3,558,680 4,021,158
Net Income
14,888 (747,294) (732,406) 18,426 687,783 706,209
(expenditure)/
Brought Forward 1 Jan 212,044 1,205,816 1,417,860 193,618 518,033 711,651
Funds at 31 December 226,932 458,522 685,454 212,044 1,205,816 1,417,860
----- End of picture text -----

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

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.

2019 numbers have been restated due to a correction of prior year income reported. Refer to Note 20.

22

TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

----- Start of picture text -----
BALANCE SHEET
As at 31 December 2020
Notes 2020 Restated 2019
£ £
Fixed Assets
Tangible assets 11 667 2,956
667 2,956
Current Assets
Debtors 13 682,581 1,243,573
Cash at the bank and in hand 167,088 343,646
849,669 1,587,219
Creditors: Amounts falling due within one year 14 (131,601) (158,067)
Net current assets 718,068 1,429,152
Net current assets less current liabilities 718,735 1,432,108
Provisions for liabilities and charges 15 (33,281) (14,248)
Net current assets 685,454 1,417,860
Total assets less current liabilities 685,454 1,417,860
The Funds of Charity
Unrestricted funds: General funds 17 226,932 212,044
Restricted funds 16 458,522 1,205,816
685,454 1,417,860
----- End of picture text -----

These financial statements are prepared in accordance with the Companies Acts 2006.

These financial statements were approved by the Board of Trustees on 1 September 2021 and signed on its behalf by:

Trustee: Stephen Bell, Chair Date: 1 September 2021

The notes on pages 24 to 33 form part of these financial statements

Company registration no: 7193829

23

THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

1. Accounting policies

The Charity information

The Fred Hollows Foundation (UK) is a private company limited by guarantee incorporated in England and Wales. The registered office is 7 Bell Yard, London, WC2A 2JR. The charitable company is a Public Benefit Entity as defined by FRS102.

1.1. Accounting convention

These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (FRS 102), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2019. The charity is a Public Benefit Entity as defined by FRS 102.

The accounts have departed from the charities (Accounts and Reports) regulations 2019 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version which is referred to in the regulations which has since been withdrawn.

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

The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value if required. The principal accounting policies adopted are set out below.

These accounts for the year ended 31 December 2020 are the sixth accounts of The Fred Hollows Foundation (UK) prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland..

As permitted by FRS 102, the company has taken advantage of the disclosure exemptions available under that standard in relation to the presentation of a cash-flow statement.

1.2. Going concern

The current global pandemic with COVID-19 continues to cause operational challenges to The Foundation’s planned work. Despite this, other decisions and actions have ensured it has not had a significant detrimental impact on the financial results of The Foundation. However, we are aware there is a backlog of our critical work to reduce vision loss and blindness as a result of the pandemic. For this reason, Fred Hollows Foundation in Australia have planned to use funds from their accumulated surplus for future programming to ensure we can impact the backlog once operating conditions have stabilised.

The financial statements have been prepared on the going concern basis. The Fred Hollows Foundation in Australia has given the necessary assurances, via a Letter of Comfort on April 2021, that sufficient resources will be made available such that the charity can meet its liabilities as and when they fall due, and for at least the twelve months from the date of approval of these financial statements.

Given the continued support of The Fred Hollows Foundation in Australia and the strength of their balance sheet, the Trustees believes that, while uncertainty exists, this does not pose a material uncertainty that would cast doubt on the charity’s ability to continue as a going concern. The Trustees therefore consider it appropriate for the accounts to be prepared on a going concern basis.

1.3. Charitable funds

The charity maintains a number of internal funds which include restricted and unrestricted funds:

24

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1.4. Income

The following activities were undertaken by the charity to generate voluntary income during the year:

Where incoming resources have related expenditure (as with fundraising or contract income) the incoming resources and related expenditure are reported gross in the SoFA.

Grants and donations are only included in the SoFA when the charity has unconditional entitlement to the resources.

Incoming resources from tax reclaims are included in the SoFA at the same time as the gift to which they relate.

Donated services and facilities are only included in incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity.

The value of any voluntary help received is included in the financial statements when it is quantifiable.

Any investment income is included in the financial statements when receivable.

1.5. Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure. All

expenditure is accounted for on an accruals basis and the irrecoverable element of VAT is included in the expenses to which it relates.

Charitable expenditure includes grants payable together with costs associated with the delivery of such charitable activity. Associated costs include support costs and governance costs.

Grants are only recognised in the financial statements when a commitment has been made and there are no conditions to be met relating to the grant which remains in the control of the charity.

Governance costs include expenses relating to the preparation and examination of statutory financial statements, the costs of Trustee meetings and cost of any legal advice to Trustees on governance or constitutional matters.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, e.g., directly if costs are entirely attributable to activities, or proportionately between costs of generating voluntary income, and costs relating to charitable activities. Costs not directly attributable to generating voluntary income, charitable activities or governance are split 8% towards generating voluntary income, 88% towards charitable activities and 4% towards governance costs.

1.6. Deferred income

Grants from Governments and other institutional donors where related to performance and specific deliverables are accounted for as the charity earns the right to consideration by its performance. Where income is received in advance of its recognition it is deferred and included in creditors. Where entitlement occurs before income being received the income is accrued.

1.7. Tangible fixed assets

Tangible fixed assets are capitalised at cost if they cost £1,500 or more, can be used for more than one year and are not project specific.

Depreciation is calculated on a straight line basis so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Software – 3 years. Computer equipment – 3-5 years. Other equipment – 5 years.

25

THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

An annual impairment review is carried out with no impairments required in the year (2019: nil). The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in net income/(expenditure) for the year.

1.8. 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.

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.

1.9. Financial instruments

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

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

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

Basic financial assets

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

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

Derecognition of financial liabilities

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

1.10. Pension costs

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

1.11. Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date.

All differences are taken to the Statement of Financial Activities.

1.12. Operating leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

1.13. Taxation

The charity is a registered charity and accordingly exempt from taxation on its charitable activities which fall within the scope of part 10 ITA 2007 and section 256 of the Taxation of Chargeable Gains Act 1992.

26

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1.14. Employee benefits

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

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

2. Critical accounting estimates and judgements

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

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

revision and future periods where the revision affects both current and future periods.

3. Income Received (Donations and grants)

----- Start of picture text -----
Restated Restated
Unrestricted Restricted 2020 Unrestricted Restricted 2019
funds funds Total funds funds Total
£ £ £ £ £ £
a) General Donations & Intercompany
General donations 24,653 – 24,653 47,842 – 47,842
The Fred Hollows Foundation
– –
689,225 689,225 433,061 433,061
Australia
b) Charitable Activities
The Rose Foundation – – – – 75,000 75,000
Trusts & Foundation - QEDJT – – – – 1,490,322 1,490,322
Trusts & Foundation - DFID – 840,648 840,648 – 2,318,808 2,318,808
Other funds – 396,033 396,033 – 362,333 362,333
713,878 1,236,681 1,950,559 480,903 4,246,463 4,727,366
Support for overseas programmes
Institutional funding: – –
840,648 840,648 2,318,808 2,318,808
Public bodies
Institutional funding: Private – – – – 1,490,322 1,490,322
Organisations
Support for UK projects 713,878 396,033 1,109,911 480,903 437,333 918,236
713,878 1,236,681 1,950,559 480,903 4,246,463 4,727,366
----- End of picture text -----

27

THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

4. Expenditure on raising funds

----- Start of picture text -----
Direct Staff Support Total Direct Support Total
Staff Costs
Costs Costs Costs 2020 Costs Costs 2019
£ £ £ £ £ £ £ £
Institutional
– –
113,200 7,272 120,472 91,547 7,317 98,864
fundraising activities
Other fundraising
40 14,895 957 15,891 2,916 12,046 963 15,925
activities
Communication & PR – 20,853 1,340 22,193 – 16,864 1,348 18,212
Total expenditure on
40 148,948 9,569 158,557 2,916 120,457 9,628 133,001
raising funds
----- End of picture text -----

5. Total expenditure on charitable activities

----- Start of picture text -----
Unrestricted Restricted TOTAL Unrestricted Restricted TOTAL
Funds Funds 2020 Funds Funds 2019
£ £ £ £ £ £
COSTS OF CHARITABLE ACTIVITIES
Overseas programmes
Long term development 501,154 1,957,818 2,458,972 281,585 3,505,507 3,787,092
Total multi sector programmes 501,154 1,957,818 2,458,972 281,585 3,505,507 3,787,092
UK projects
Long term development 39,280 26,157 65,437 54,305 46,760 101,065
Total UK project costs 39,280 26,157 65,437 54,305 46,760 101,065
Direct Staff Support Total Direct Support Total
Staff Costs
Costs Costs Costs 2020 Costs Costs 2019
£ £ £ £ £ £ £ £
Overseas programmes
Multisector
overseas
programmes
1,958,255 395,463 105,254 2,458,972 3,441,778 239,415 105,899 3,787,092
funded by
voluntary
donations
UK projects 26,177 17,975 21,284 65,436 60,215 10,883 29,967 101,065
----- End of picture text -----

28

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

6. Governance costs

----- Start of picture text -----
Financial position information related to the subsidiaries: 2020 2019
£ £
Meeting costs and others 2,412 2,716
Audit fees 16,500 22,454
General costs 2,316 4,947
Depreciation 76 160
Staff costs 17,976 10,883
39,280 41,160
----- End of picture text -----

7. Support costs

----- Start of picture text -----
Charitable Generating TOTAL Charitable Generating TOTAL
Activities Funds 2020 Activities Funds 2019
£ £ £ £ £ £
Staff costs 413,438 148,949 562,387 250,298 120,457 370,755
General costs 125,322 9,456 134,778 132,352 9.308 141,660
Depreciation 1,673 152 1,825 3,514 319 3,833
540,433 158,557 698,990 386,164 130,084 516,248
----- End of picture text -----

8. Net resources for the year

----- Start of picture text -----
This is stated after charging: 2020 2019
£ £
Depreciation 1,901 3,993
Auditors’ remuneration 16,500 22,454
Accountancy – 2,310
Loss on disposal of fixed assets 388 –
Operating lease payments 36,989 35,880
----- End of picture text -----

9. Trustees

Trustee indemnity insurance of £3,314 (2019: £3,405) was paid to protect the charity from loss and to indemnify Trustees against the consequences, due to neglect or default on the part of the Trustees. None of the Trustees (or any persons connected with them) received

any remuneration from the charity during the year. In 2020, one Trustee was reimbursed for expenses totalling £129 covering travel incurred in connection with their duties. No allowances were paid to Trustees, and no direct payments to third parties were made on their behalf.

29

THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

10. Employees

----- Start of picture text -----
2020 2019
£ £
Gross wages and salaries 514,651 450,501
Employer’s national insurance costs 58,739 42,399
Pension costs – defined contribution scheme 44,373 27,573
617,763 520,473
----- End of picture text -----

----- Start of picture text -----
The average monthly number of employees during the year was made up as follows:
2020 2019
Programmes 6 5
Governance/ Finance 3 3
----- End of picture text -----

Two employees received remuneration in excess of £100,000 but not exceeding £130,000 (2019: one). No remuneration was paid to any Trustee or persons connected to a Trustee in the current or prior year. The Foundation's constitution, prohibits the payment of remuneration to any of its trustees. The company pays pension at 9.5% of gross pay to each employee as part of standard terms of employment.

11. Tangible fixed assets

----- Start of picture text -----
Financial position information related to the subsidiaries: 2020 2019
£ £
Cost:
At 1 January 21,243 21,243
Additions – –
-
Disposals (2,733)
At 31 December 18,510 21,243
Depreciation:
At 1 January 18,287 14,294
-
Disposals (2,345)
Charge for the year 1,901 3,994
At 31 December 17,843 18,287
Net book value:
At 31 December 667 2,956
----- End of picture text -----

30

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

12. Financial instruments

2020 2019
£ £
Carrying amount of fnancial assets
Debt instruments measured at amortised cost 238,541
1,190,735

13. Debtors

----- Start of picture text -----
Restated
2020 2019
£ £
Amounts due from/(to) The Fred Hollows Foundation Australia 166,533 825,413
Other receivables 4 2
Accrued income 440,380 50,759
Partner advances 72,008 365,322
Prepayments 3,656 2,077
682,582 1,243,573
----- End of picture text -----

Amounts due from The Fred Hollows Foundation Australia (The Fred Hollows Foundation Australia) have reduced in 2020 due to the fact that The Fred Hollows Foundation Australia made program payments on behalf of The Fred Hollows Foundation Australia which were in excess of the funds The Foundation transferred to The Fred Hollows Foundation Australia entity in 2020.

Accrued Income represents funds due from donors where the donor reimburses The Foundation after it spends as per the requirements specified by the donor. In 2020, the total amount represented accruals from 5 donors (2019: 1) which pay in arears. 2019 restatement, £ 50,759 Other receivable restated as Accrued Income.

14. Creditors: Amounts due within one year

2020 Restated
2019
£ £
Accruals 126,918
158,067
Other creditors 4,683
–
131,601
158,067

As per changes required to be compliant with SORP principles, explained in Note 20, prior year balance of Deferred Income has been removed.

31

THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

15. Provisions for liabilities

----- Start of picture text -----
2020 2019
Annual Leave £ £
At 1 January 14,248 4,728
Movements during the year 19,033 9,520
At 31 December 33,281 14,248
----- End of picture text -----

16. Restricted Funds

----- Start of picture text -----
At 1 January Income At 31 December
2020 Received Expenditure 2020
£ £ £ £
FCDO 511,177 840,648 1,351,825 –
QEDJT 475,705 – 184,263 291,442
Other 218,934 396,033 447,887 167,080
1,205,816 1,236,681 1,983,975 458,522
----- End of picture text -----

----- Start of picture text -----
Restated Restated
At 1 January Restated Income Restated At 31 December
2019 Received Expenditure 2019
£ £ £ £
FCDO 161,425 2,318,808 1,969,056 511,177
QEDJT 270,217 1,490,322 1,284,834 475,705
Other 86,391 437,333 304,789 218,934
518,033 4,246,462 3,558,679 1,205,816
----- End of picture text -----

17. Unrestricted funds

----- Start of picture text -----
At 1 January Income At 31 December
2020 Received Expenditure 2020
£ £ £ £
General Funds 212,044 713,876 698,988 226,932
212,044 713,876 698,988 226,932
At 1 January Income At 31 December
2019 Received Expenditure 2019
£ £ £ £
General Funds 193,618 480,903 462,477 212,044
193,618 480,903 462,477 212,044
----- End of picture text -----

18. Analysis of net assets between funds

Unrestricted
funds
£		 Restricted
funds
£		 2020
Total
£		 Unrestricted
funds
£		 Restated
Restricted
funds
£		 Restated
2019
Total
£
Tangible fxed assets 667
–
667
1,896
1,060
2,956
Net current assets 226,264
458,523
684,787
210,147		 1,204,757 1,414,904
Net Assets as at 31 December 226,931
458,523
685,454
212,043		 1,205,817 1,417,860

32

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

19. Other financial commitments

At 31st December 2020 the charity had annual commitments under cancellable operating leases as set out below:

----- Start of picture text -----
2020 2019
Land and buildings £ £
Operating lease which expires March 2021 after providing notice in November 2020: 14,000 30,000
----- End of picture text -----

20. Prior Period Adjustments

A correction of income recognition for prior years to be compliant with SORP principles for recognising income from donations and grants has resulted in prior period adjustments to Restricted reserves as follows.

----- Start of picture text -----
Unrestricted Restricted
Funds Funds Total
£ £ £
Total funds previously stated at 31 Dec 2018 193,618 16,587 210,205
–
Reverse deferred income revenue recognition (3,893,153) (3,893,153)
-
Recognition of donations upon receipt 4,394,599 4,394,599
-
31 Dec 2018 prior period adjustment 501,446 501,446
Total funds at 31 Dec 2018 restated 193,618 518,033 711,651
Total funds previously stated at 31 Dec 2019 212,044 34,026 246,070
–
Reverse deferred income revenue recognition (3,576,119) (3,576,119)
-
Recognition of donations upon receipt 4,246,463 4,246,463
-
31 Dec 2019 prior period adjustment 670,344 670,344
-
31 Dec 2018 prior period adjustment 501,446 501,446
Total funds at 31 Dec 2019 restated 212,044 1,205,816 1,417,860
----- End of picture text -----

21. Share capital

The company has no share capital being limited by guarantee. The guarantors will contribute a maximum of £10 each in the event of liquidation.

22. Related party transactions

The ultimate controlling party is The Fred Hollows Foundation in Australia (registered charity ABN number: 46070556642) which is a not for profit entity and a limited company whose registered office is at Level 9, 320 Pitt Street, Sydney, NSW, Australia.

Support received in 2020

The following services were carried out by The Fred Hollows Foundation in Australia without charging any costs to The Fred Hollows Foundation (UK):

33

THE FRED HOLLOWS FOUNDATION (UK) COMPANY LIMITED BY GUARANTEE, UK REGISTERED CHARITY NUMBER 1140288

ACKNOWLEDGEMENTS

UK donors and Memberships for 2020

UK Donors (listed alphabetically)

We acknowledge the tremendous support extended to us by the following partners and sincerely thank them.

Our Major Institutional Donors:

Other Donors:

Organisational Memberships

The Foundation forms partnerships and joins alliances that have a strategic advantage in advancing its vision and mission.

On a global stage, these include:

In United Kingdom, these include:

34

TRUSTEES’ REPORT FOR THE YEAR ENDED 31ST DECEMBER 2020

35

+44 (0) 737 648 1780 [| ] hollows.org/uk [| ] The Foundation [| ][@FredHollows ] [| ][fredhollows ] [| ] Fred Hollows