2020-12-31-accounts

Hope for Kids International ANNUAL REVIEW AND FINANCIAL STATEMENTS For the year ended 31 December 2020

Hope for Kids International Purple Patch, 14 Rosebery Avenue, London, EC1R 4TD Tel [phone] www.hopeforkids.co.uk

Registered Charity No. 1140641

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Hope for Kids International

ANNUAL REVIEW AND FINANCIAL STATEMENTS

For the year ended 31 December 2020

CONTENTS

OUR AIMS	Page 3
OUR STRATEGY AND HOW WE WORK	3-6
REVIEW OF ACTIVITIES AND ACHIEVEMENTS	7-8
OUR FUTURE PLANS	9
VALUES AND POLICIES	10-11
STRUCTURE, GOVERNANCE AND MANAGEMENT	11-12
INDEPENDENT EXAMINERS’ REPORT	13
- Financial summary	14
- Balance sheet	15
- Notes to the accounts and accounting policies	16-20
LEGAL AND ADMINISTRATIVE DETAILS	21

“Whoever welcomes one of these little children in my name welcomes me; and whoever welcomes me does not welcome me but the one who sent me.” Mark 9:37

Registered Charity No. 1140641

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Hope for Kids International ANNUAL REVIEW AND FINANCIAL STATEMENTS

For the year ended 31 December 2020

The Trustees submit their report and the financial statements of Hope for Kids International for the year ended 31 December 2020 and confirm that they comply with the requirements of the Charities Act 2011, the trust deed and the Charities SORP (FRS 102).

OUR AIMS

Hope for Kids International is constituted by a Trust Deed dated 15[th] January 2011. Its objects are:

1. The relief and prevention of poverty in any part of the world, impacted by natural disaster, war, trouble or catastrophe, in particular but not exclusively by:

2. Providing residential care for abandoned, abused and/or neglected children that have no other alternative means of support, as well as children referred to us by local courts in certain countries who have been victims of sexual assault;

3. Assisting vulnerable children and their families and communities by providing access to, and/or development of health care, education and other activities that benefit communities;

4. Supporting them in ways that will enable them to generate a sustainable income and become self-sufficient.

5. To advance the education of the public regarding the nature, causes and effects of poverty, particularly for orphans and vulnerable children and their families, and how appropriate solutions can be found and applied.

6. The advancement of the Christian faith in particular but not exclusively by actively following the call of the Bible to care for the needs of the poor and promoting the engagement of the Church to provide help to orphans and vulnerable children and their families.

Whilst we are a Christian organisation, we serve children of any or no faith. All projects serve nonChristian children and their families and in some cases these make up the majority of the children we serve.

OUR STRATEGY AND HOW WE WORK

Our strategy

Hope for Kids International is the UK partner of Kids Alive International, a US-based charity, which exists to serve vulnerable children throughout the world. In the last several years Kids Alive International has consistently achieved top rankings by US-based charity evaluator, Charity Navigator.

Kids Alive oversees approximately 50 projects in 12 developing countries, which in turn are implemented by affiliated Kids Alive partners in the respective country of operation. These countries include Zambia, Kenya, Sudan, South Sudan, Lebanon, Dominican Republic, Guatemala, Haiti, Romania, Taiwan and Peru.

To achieve its objectives, Hope for Kids International’s strategy is to raise funds and awareness for these projects in the UK, with particular emphasis amongst the Church and its members.

Registered Charity No. 1140641

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Hope for Kids International ANNUAL REVIEW AND FINANCIAL STATEMENTS For the year ended 31 December 2020

How we work - outcomes

To achieve our objectives of serving some of the world’s most vulnerable children, our 50 projects generally break down into four key areas – care centres, schools, residential care and family support programmes. Whilst each of these projects differ according to the children they are serving, each of them aims to provide four key outcomes for each child:

i. Educated and equipped for life

We aim to ensure each child receives the highest standards of education, whether it is through our own schools, care centres and/or in liaison with local schools. Our education programmes are supplemented by holistic care, including the provision of food, uniforms and supplies, as well as life skills. We also have programmes for our older children as they transition to further education or employment.

ii. Emotional and relational wellbeing

Just about all of the children we serve have suffered considerable trauma of some sort, which in turn can affect the way their brain works, causing all sorts of behavioural issues such as temper tantrums, withdrawal from others, problems with relationships, manipulative and secretive tendencies, and many more. No matter how much we love and pray for them, these dysfunctions can become permanent and disabling unless the trauma is recognised and addressed.

An ever-growing part of our work is to provide professional trauma-informed care to these children, work which has been shaped and modelled over the years. This care is trust-based, establishing solid bonds between a child and his or her caregivers, therapists, and social workers, and then building on the foundation of trust to address the child’s deep wounds and fears.

iii. Pursuing justice and rights

For those children who have suffered because of others, we are passionate about ensuring that justice is served. This is especially so for instances of sexual abuse. Our work in Guatemala using our own employed solicitors, has ensured there is a successful prosecution rate of 75%, compared to a country like for like average of 7%. We want to see systematic changes in many of the countries we work in and our experience is showing that if we lead the way, others will follow - justice leads to cultural and societal change.

iv. Life changing relationship with God

Our love and care for the children and their families who we serve is unconditional, irrespective of their religion, beliefs or background. As a Christian mission, we are thrilled when children in our care – and members of their families – come to know the transforming power and love of Jesus Christ. We aim to reflect His love for them through our work and by our example, pray that they come to know Him.

A member of staff prays with a vulnerable family in Lebanon as we distribute emergency food to them at the height of the pandemic.

“Learn to do good; seek justice, correct oppression; bring justice to the fatherless, and please the widow's cause.” Isaiah 1:17

Registered Charity No. 1140641

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Hope for Kids International

ANNUAL REVIEW AND FINANCIAL STATEMENTS

For the year ended 31 December 2020

How we work – examples of our projects

i. Care centres

Our Care Centres are established in areas of extreme poverty. We provide food, after school educational support, trips - and other activities that help with general life skills - basic medical care, as well as emotional and spiritual counselling.

For example, our care centre in Beirut, Lebanon serves vulnerable Syrian refugee children living in abject poverty, who are typically years behind with their education. We provide specific education packages for them, as well as food, trauma-informed counselling, activities to improve lifeskills, access to IT equipment, and more.

ii. Schools

We run a number of schools, typically in areas of high poverty where students would otherwise not have an education. We also provide free school uniforms, supplies and crucially, food, which in many cases is the only food the child will get. This in turn helps prevent children being sent to work, as well as early child girl marriages (one less mouth to feed), and helps prevent malnutrition which in turn can cause permanent stunted growth and poor brain development.

Our Hall Mead school, for example, is based in a rural area of Kenya, where child labour is rife and where there are high numbers of orphans. We have identified 350 of the region’s most vulnerable children and help them and their families break the poverty cycle.

“Our teachers are so much more than teachers – they are also community advisers.” - Purity Nyamua, Country Director, Kenya

iii. Residential care

Once a child has been rescued, we sometimes care for them in one of our residential homes, especially those who have been subject to physical or sexual abuse or have been completely abandoned. A growing part of our work is trauma-informed counselling, so these precious children are able to thrive, especially at school. Where possible and safe, we will seek to reintegrate them back into their wider family/ community.

Registered Charity No. 1140641

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Hope for Kids International ANNUAL REVIEW AND FINANCIAL STATEMENTS For the year ended 31 December 2020

In Guatemala, for example, we provide havens of safety for girls who were victims of sexual violence usually in their own home - and have been referred to us by a local judge. Our 12-18 month residential programme provides a loving family-style environment with comprehensive care, including trauma counselling; support through the court processes to ensure the perpetrators are brought to justice; and support and training if they are pregnant or have a child. Many of them, even older girls, attend school for the first time.

iv. Family support programmes

We also provide care and support for families to enable them to better care for their vulnerable child, eg the provision of food, educational fees, school uniforms and stationery, etc. Quite often this can be for single parents, or where single grandparents are looking after the child. We also work with local communities to reintegrate children who have been in our care back to their original or wider family - or find foster care. This is a growing part of our work and one which needs to be handled with real sensitivity and care.

Registered Charity No. 1140641

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Hope for Kids International ANNUAL REVIEW AND FINANCIAL STATEMENTS For the year ended 31 December 2020

REVIEW OF ACTIVITIES AND ACHIEVEMENTS - A YEAR LIKE NO OTHER

1. The impact of COVID

2020 was truly a year like no other. In every country where we work, COVID became a reality – whether in Zambia, Lebanon, Kenya or Guatemala, our kids’ lives were turned upside down, especially those already on the edge of survival.

Lockdown meant that children could no longer come to our schools and care centres to receive our care, especially food and clothing. Their families could barely afford to feed them before lockdown but now had the added burden of extra mouths to feed at a time when they were struggling even more to earn a pittance. Things were exasperated in Zambia and Kenya as food prices rocketed due to famine and locust plagues, and in Lebanon the continued economic crisis made things worse for the vulnerable Syrian refugee families we serve. It really was the perfect storm.

Education was severely disrupted, even temporarily halted in some countries, as virtual learning was a non-starter for those without internet access or even an electricity supply.

It was especially difficult in our residential programmes, keeping dozens of vulnerable children occupied and stimulated during lockdown, quite often without full quotas of staff due to lockdown restrictions.

2. Our response

Thanks to the remarkable generosity and kindness of our supporters, we were able to initiate a range of community outreach programmes, providing emergency food supplies to the most vulnerable of the families we serve.

The programmes allowed us to check up on the children’s wellbeing (our staff were especially concerned about child abuse); help with homework and education catch-ups; provide COVIDrelated advice to the families; and above all, share the Gospel and pray with the families. Many of them asked us what motivates us to do the work we do, so our staff had many opportunities to share their faith and to pray with them.

“For I was hungry and you gave me something to eat, I was thirsty and you gave me something to drink… whatever you did for one of the least of these brothers and sisters of mine, you did for

me.” Matthew 25: 34

Our staff showed remarkable ingenuity and creativity in trying to keep our education programmes going, juggling the children’s needs with COVID restrictions, limited technology, and communication issues. As children slowly but surely started to return after lockdown, many were noticeably thinner than before and so we increased our food provision to many.

In many countries, the impact of COVID accelerated our work reintegrating children in our residential programmes back to their wider families or into foster care. This in turn has increased our capabilities and capacity in family support programmes, to provide practical support and empowerment to families so they can fully care for the child. Whilst this is delicate and timeconsuming work – as it should be – we believe it will be a growing part of our ministry in 2021 and beyond.

Registered Charity No. 1140641

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Hope for Kids International

ANNUAL REVIEW AND FINANCIAL STATEMENTS

For the year ended 31 December 2020

3. Trauma care and the pursuance of justice

Now into our fifth year of intensive trauma care training, intervention, and treatment, we have seen a blossoming of so many children who have begun to trust adults again, to open their hearts to friendship, and to experience themselves as valued by a loving Father. We have placed the identification and treatment of trauma as a priority in all our countries:

• The Kids Alive family is investing heavily in teams of psychologists, educational specialists, social workers, and others who can help lead precious children on the path to wholeness.

• We continue our partnership with Texas Christian University in the training and deployment of Trust-Based Relational Intervention (TBRI®), and 2019 saw this programme’s increased success throughout our fields.

• We are increasing capacity in the areas of child protection and prosecution of abusers by adding legal and child protection specialists to our trauma care teams.

• We continue working diligently and systematically to influence the childcare and protection climates in the countries where we serve, working with legislators, judges, and policy makers to benefit all child survivors of trauma, not just in our programmes.

• Community awareness of child trauma is crucial, and we are developing programs to heighten both awareness and responsiveness to the needs in the areas we serve.

“He heals the broken-hearted and binds up their wounds.” Psalm 147:3 (NIV)

4. Family support and reintegration

Placing children in families is still at the heart of who we are. In 2020, we have had an increased emphasis on making sure every child possible grows up in a healthy family setting and have continued to develop and strengthen programmes that put family first:

• We make every effort to locate a child’s biological or extended family by means of sophisticated tracing methods, and then we evaluate their willingness and ability to safely care for the child.

• In cases where family reunification is safe and possible, our teams work with parents and other relatives to ensure smooth transition and access to resources that allow a family to adequately feed, clothe, and educate the child.

• Where a parent or other relative is willing but not able to adequately care for all of a child’s needs, we work to fill in the gaps so the child can remain at home.

• We monitor the child’s progress through home visits and ongoing counselling.

• When a child has no willing relatives, or because of past abuse is not safe with biological family, we work to identify, evaluate, train, and assist loving Christian couples in their local area to assume guardianship, and in some cases adoption, and we follow up with these families as long as needed.

• We operate programmes that match foster families and young biological families with mature Christian couples who mentor them and serve as role models.

• We view residential care as one, sometimes necessary, stage of an individual child’s care plan and not as a long-term solution. We work to create an atmosphere as close as possible to a family setting while seeking to move the child toward life in a real family.

“God sets the lonely in families…” Psalm 68:6a (NIV)

Registered Charity No. 1140641

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Hope for Kids International

ANNUAL REVIEW AND FINANCIAL STATEMENTS

For the year ended 31 December 2020

5. Fundraising and awareness-building here in the UK

2020 was the first year for our new Executive Director, Tim Hunt, who has been especially welcomed by our trustees and supporters alike. By the end of 2020, the main highlights for Hope for Kids included:

• The raising of £172,696 of funds, an increase of 21%.

• 93% of these went to projects in Lebanon, Zambia, Guatemala and Kenya.

• Most of these funds were given to us by our kind supporters, including 100 child sponsors, 34 site supporters, 200 other donors, as well as six church partners and some generous donations from Christian trusts and foundations.

• Our supporters were especially generous in responding to appeals for help to respond to the COVID pandemic.

• We were very grateful to receive an award of £3,000 from the World Day of Prayer to go towards our work in Guatemala with girls who have been victims of terrible sexual assault. https://www.wwdp.org.uk

• We are also extremely grateful for the prayer support we have received from many of our supporters, including 65 who have specifically asked if they could receive prayer requests.

• In 2020 we also re-branded our design look and feel to be more consistent with the rest of the Kids Alive family, including a new-look website.

REV

OUR FUTURE PLANS

CTIVITIES AND ACHIEVEMENTS

Over the next few years, Hope for Kids would like to see its fundraising and awareness amongst UK Christians grow considerably. In order to do this we will need to invest carefully in 2021 and beyond in our fundraising and marketing activity. There are three key areas where we will focus:

• Growing awareness about our work with churches and other Christian organisations, especially through online platforms such as Facebook.

• Evolving our website and working on projects that drive new visitors into it.

• Increasing our applications with trusts and grants.

We will also focus on:

• Encouraging more prayer support for our work within the UK as a whole.

• Working with the trustees to ensure we have excellent and Godly governance.

Registered Charity No. 1140641

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Hope for Kids International ANNUAL REVIEW AND FINANCIAL STATEMENTS For the year ended 31 December 2020

VALUES AND POLICIES

1. Our values

We are:

Faith Based – God alone transforms lives. As we rescue children-in-crisis, we submit to the Lordship of Jesus Christ, depend on the power of the Holy Spirit, accept the authority of the scriptures, and make prayer central to our ministry.

Action-Oriented – We follow the example of Jesus Christ. We work to build just societies as we respond with sacrificial love to the world’s suffering children.

Child-Focused – We believe children should have opportunity to mature and develop their full potential. We care for the whole child by providing quality programmes that meet their spiritual, educational, social, physical, and emotional needs.

An International Team – We co-operate closely with Christians in the countries we operate in to develop culturally relevant, caring communities for children, and to encourage the growth of godly leadership. The children of our homes and ministries will be prepared to lead in church and home with integrity.

Committed to Excellence – We intend to be known for our determined pursuit of quality, the integrity of our relationships, the clarity of our communication, and our accountability with the human and financial resources entrusted to us.

Family-Centred – We believe in the nurturing power of the family. We strengthen existing families and place unprotected children in safe, family-style homes. We prepare these children to, one day, lead healthy families of their own.

Thankful – We are thankful to be sharing this journey with our gracious God; for being able to partner with the vulnerable from whom we can learn so much; for committed supporters that have a common vision for transformation in this broken world.

2. Investment policy

As a small charity who’s aim is primarily to provide funds for the valuable work being undertaken overseas Hope for Kids International has, to date, made no investments and at this stage our policy is to pass on as much of the funds raised as possible to support this work.

3. Reserves

In accordance with UK Charity law, Hope for Kids International Trustees closely monitor the disbursal of funds and the levels of financial reserves held by the organisation. It is the policy of the Trustees that a reasonable level of financial reserves be maintained that will protect the charity against any dramatic fall in income or unexpected rise in expenditure. As a general principle, the Trustees consider that reserves should be maintained at three months of budgeted expenditure of funds associated with unrestricted income, ie overhead and other costs that cannot be recovered against restricted income

4. Risk management

The Trustees undertake regular and ongoing assessments to monitor the various risks that the organisation faces and have developed risk registers and action plans to mitigate such risks. In particular, the Trustees have paid particular attention to risks encountered by charities working

Registered Charity No. 1140641

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Hope for Kids International ANNUAL REVIEW AND FINANCIAL STATEMENTS For the year ended 31 December 2020

overseas and have developed processes that help to ensure the appropriate and effective use of funds and the safety and security of personnel, teams and volunteers.

5. Child and Vulnerable Adult Protection

Hope for Kids International has zero tolerance for any activity that harms or puts a child in danger, and has developed a comprehensive Child and Vulnerable Adult Protection Policy. This, as for all policies, is kept under review to reflect best practice in the UK, which is reflected in the policies and procedures adopted by the Kids Alive global network. Our Child and Vulnerable Adult Protection Policy can be viewed and downloaded from our website at www.hopeforkids.co.uk/safeguarding . Hope for Kids International is a member of thirtyone:eight (formerly Churches Child Protection Advisory Service) and follows their guidance.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Board of Trustees oversees the work of the Executive Director and staff team. The Trustees delegate responsibility for day-to-day decisionmaking to the Executive Director who implements the strategy and policies approved by the Board of Trustees, together with operational planning and decision-making.

As well as day-to-day operational activities (sponsorship, finance, communications, etc), the salaried staff members oversaw the activities of ambassadors and other volunteers who represent, or in other ways advance, the ministry of Hope for Kids International. In 2020, no such activity happened due to pandemic-related restrictions.

The Trustees listed on page 17 are those who have served throughout the year or for a shorter period where indicated. The Trust Deed of the charity governs the appointment of Trustees. The Board of Trustees is authorised to appoint new Trustees to fill vacancies arising through resignation or death of an existing Trustee.

The Board of Trustees regularly reviews the skills and experience required to carry out its duties. New Trustees are provided with orientation to the work of Hope for Kids International, including a copy of the Trust deed and the organisation’s latest accounts and reports. Other induction and training is provided to Trustees as needed, e.g. Charity Commission guidance and approved literature.

The Board of Trustees takes ultimate responsibility for directing the affairs of Hope for Kids International and ensuring that the organisation is solvent, well run, and delivers the charitable outcomes for the benefit of the public for which it has been set up.

The Board of Trustees:

• Ensures that the Mission, Vision and Core Values of Hope for Kids International are followed.

• Ensures that the organisation complies with Charity Commission requirements, in particular ensuring that the organisation prepares reports on achievements, Annual Returns and accounts.

• Ensures that the organisation does not breach any of the requirements or rules set out in its governing document and that it remains true to the charitable purpose and objects.

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Hope for Kids International ANNUAL REVIEW AND FINANCIAL STATEMENTS

For the year ended 31 December 2020

• Works with the Executive Director to ensure effective strategic and operational planning for the organisation.

• Works with the Executive Director and staff to ensure the effective management of finances.

• Uses charitable funds and assets reasonably and only in furtherance of the charity’s objects.

• Oversees the development of operational policies.

• Ensures that the organisation is well led and manages the performance of the Executive Director.

• Avoids undertaking activities that might place funds, assets or reputation at undue risk.

• Enhances the organisation’s public relations and fundraising by clearly articulating Hope for Kids International’s mission, accomplishments and goals to the public.

• Considers obtaining external professional advice on all matters where there may be material risk to the charity, or where Trustees may be in breach of their duties.

The Board met five times during 2020, with four of these meetings having had to take place online due to the pandemic restrictions.

Registered Charity No. 1140641

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Hope for Kids International ANNUAL REVIEW AND FINANCIAL STATEMENTS For the year ended 31 December 2020

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES

I report on the accounts of the Charity for the year ended 31 December 2020, which are set out on pages 14 to 19.

Respective responsibilities of Trustees and examiner

The charity's Trustees are responsible for the preparation of the accounts. The charity's Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

• examine the accounts under section 145 of the 2011 Act;

• to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and

• to state whether particular matters have come to my attention.

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a 'true and fair view' and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

• which gives me reasonable cause to believe that in any material respect the requirements:

• to keep accounting records in accordance with section 130 of the 2011 Act; and

• to prepare accounts which accord with the accounting records and comply with the

• accounting requirements of the 2011 Act

have not been met;

• or to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Malvern Carvell Accountancy and Taxation 21 Higher Kingston Yeovil BA21 4AS

MALVERN CALVERN

May 21[st] 2021

Registered Charity No. 1140641

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Hope for Kids International STATEMENTS OF FINANCIAL ACTIVITES

For the year ended 31 December 2020

	Notes	Unrestricted			Unrestricted
		General	Restricted	Total	General	Restricted	Total
		Funds	Funds	2020	Funds	Funds	2019
		£	£	£	£	£	£
INCOMING
RESOURCES
Voluntary income:
Donations and gifts		88,851	83,845	172,696	41,567	100,917	142,484
Investment income		-	-	-	-	-	-
Fees and other		-	-	-	-	-	-
income
TOTAL INCOMING
RESOURCES		88,851	83,845	172,696	41,567	100,917	142,484
RESOURCES
EXPENDED
Fundraising costs		14,591	-	14,591	13,133	-	13,133
Charitable
expenditure
Programme	2	25,971	82,870	108,841	-	129,289	129,289
expenditure
Management costs
(including
Governance costs)	2	38,683	-	38,683	23,456	-	23,456
TOTAL RESOURCES
EXPENDED		79,245	82,870	162,115	36,589	129,289	165.878
NET MOVEMENT
BEFORE TRANSFERS		9,606	975	10,581	4,978	(28,372)	(23,394)
TRANSFERS
BETWEEN FUNDS		-	-	-	(22,664)	22,664	-
NET MOVEMENT IN		9,606	975	10,581	(17,686)	(5,708)	(23,394)
FUNDS
FUND BALANCES AT
1 JANUARY 2020		30,127	37,309	67,436	47,813	43,017	90,830
FUND BALANCES AT
31 DECEMBER 2020	7	39,733	38,284	78,017	30,127	37,309	67,436

The Statement of Financial Activities has been prepared on the basis that all operations are continuing operations.

All gains and losses have been dealt with in the above statement.

The notes on pages 20 to 24 form part of these accounts.

Registered Charity No. 1140641

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Hope for Kids International BALANCE SHEET For the year ended 31 December 2020

Notes CURRENT ASSETS Debtors 4 Cash at bank and in hand CREDITORS: Amounts falling due within one year 5 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES ACCUMULATED FUNDS General funds Restricted funds 6 7	2020 £ 4,179 75,082 79,261 1,244 78,017 78,017 39,733 38,284 78,017	2019 £ 4,793 63,393
		68,186 750 67,436
		67,436
		30,127 37,309 67,436

The financial statements were approved by the Trustees for issue on 2021 and signed on their behalf by:

ORIGINAL SIGNED

D Morgan Trustee

ORIGINAL SIGNED

T Bailey Trustee

The notes on pages 16 to 17 form part of these accounts.

Registered Charity No. 1140641

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Hope for Kids International ACCOUNTING POLICIES

For the year ended 31 December 2020

Basis of accounting

The financial statements have been prepared in accordance with 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 2016) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The following accounting policies have been applied consistently in dealing with items, which are considered material to the financial statements.

Income recognition

Income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Donations are accounted for when received by the charity.

Where income is received by way of a grant which is intended to provide funding for a number of years this income is deferred and released to the statement of financial activities in the year to which it relates.

Unrestricted funds

General fund: The use of this fund has not been restricted to any particular purpose by the donors or their representatives.

Unrestricted funds

Restricted funds are those which are required to be used for specific purposes as set out by the donors. These funds are not available for the general use of the charity.

In terms of the donated funds that have restrictions placed on them by the donor, e.g. sponsorship and project funds, that are thus ‘Restricted’, a proportion of such funds (no greater than 20%) is allocated to the UK-based expenditure (see the ‘Expenditure Categories’ section below) that facilitates the overseas charitable activity. Management and Governance costs of the charity are funded from general, unrestricted funds.

Expenditure categories

Our expenditure, as with most charities, breaks down into three main categories:

1. Programme expenditure – expenditure on Charitable Activities

2. Fundraising costs

3. Management and governance costs

1. Resources expended on Charitable Activities : These are what we spend on the delivery of programmes and services associated with the charitable objects. They include:

• Money sent to beneficiary programmes in the ministry countries;

• Costs associated with the UK office staff overseeing and monitoring the efficient delivery of child sponsorship, education, advanced education and field project programmes; providing timely and informative feedback to partners, sponsors and supporters as to how their donations have been used; facilitating supporter-beneficiary interactions; communications with partner organisations in the overseas ministry countries; and supporter database administration;

• Cost of activities associated with raising awareness and educating the public within the UK (both charitable activities), but not for those situations where we also ask for donations – this would be covered under ‘fundraising’. Thus, visits to schools and theological colleges, and press releases are examples of educating/raising awareness

Registered charity No.1140641

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Hope for Kids International ACCOUNTING POLICIES For the year ended 31 December 2020

• .

2. Fundraising costs : This is what we spend to raise money and includes:

• Printing, publicity, mailing costs, travel expenses and staff time associated with those activities that are fundraising-specific, e.g. campaign appeals, fundraising events, etc.

• Membership subscriptions for on-line fundraising.

• Costs associated with the UK staff receipting donations, making grant applications, administering Gift Aid reclaims and a proportion of the costs of administering the ‘prospective supporter’ database. There are some expenses and activities that are hybrid ‘education /fundraising’ in nature, e.g. staff effort in updating the website and social media. For convenience, we allocate such expenditure evenly between the two categories.

3. Management and Governance costs : These include the costs of arrangements associated with general running of the charity, not allocated to specific programme expenditure. The governance costs provide for the governance infrastructure that allows the charity to operate and to produce the necessary information required for public accountability. Governance costs include:

• Accountancy

• Legal matters

• Trustee meeting expenses

• Trustee training

• Reporting to the Charity Commission.

In attributing costs between activity categories, the following principles have been applied:

(a) Where appropriate, expenditure is allocated directly to an activity cost category.

(b) Items of expenditure that contributes directly to the output of more than one activity cost category, for example, the cost of a staff member whose time is divided between a fundraising activity and working on a charitable project, are apportioned on a reasonable, justifiable and consistent basis. Approximately 50% of the Executive Director’s salary is apportioned this way.

(c) For staff who work from home, reasonable travel expenses are paid should they need to travel to the registered office address or to represent the charity elsewhere either in the UK or overseas.

Registered charity No.1140641

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Hope for Kids International NOTES TO FINANCIAL STATEMENTS

For the year ended 31 December 2020

1 NET INCOME FOR THE YEAR Net income is stated after charging: Independent Examiner’s remuneration – examination Independent Examiner’s remuneration – other services 2 CHARITABLE EXPENDITURE Unrestricted funds £ Restricted funds £ Programme expenditure by country Kenya - 29,380 Lebanon - 19,850 Zambia - 17,333 Sudan and South Sudan - 2,940 Dominican Republic - 476 Guatemala - 8,731 Haiti - 834 Peru - 476 Romania - 2,720 Non country specific - 130 - 82,870 Programme expenditure by activity Child care - 55,362 Education - 8,251 Independent living - 10,228 Construction - 930 Equipment - - Personnel - - Teams - - Covid precautions - 8,099 United Kingdom – awareness programme - - - 82,870 Management and support costs Salaries and pensions 15,834 - UK Office and administrative costs 14,052 - Recruitment 3,100 - Accountancy 350 - 33,336 -	2020 £ 300 450 Total 2020 £ 29,380 19,850 17,333 2,940 476 8,731 834 476 2,720 130 82,870 55,362 8,251 10,228 930 - - - 8,099 - 82,870 15,834 14,052 3,100 350 33,336	2019 £ 300 450 Total 2019 £ 41,515 23,604 22,281 9,454 1,175 16,401 1,725 6,945 1,775 4,414 129,289 92,017 10,925 - 4,542 501 19,783 1,092 - 429 129,289 560 - 6,200 150 6,910	2019 £ 300 450

Registered charity No.1140641

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Hope for Kids International NOTES TO FINANCIAL STATEMENTS For the year ended 31 December 2020

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Governance costs Independent examiner Legal costs Trustee costs STAFF COSTS Executive Directors’ salaries Staffing team salaries Social Security costs Pension costs	350 4,997 - 5,347	- - -	350 4,997 - 5,347 2020 £ 52,218 - 894 613 53,725	350 15,902 294 16,546 2019 £ 20,000 16,748 - 440 37,188	350 15,902 294 16,546 2019 £ 20,000 16,748 - 440 37,188
					37,188

The current executive director started from 13th January 2020 and during the period to 31 March 2020 the retiring director remained in position to effect a smooth transition. These figures therefore include both directors’ salaries and pensions.

The charity operated a defined contribution scheme for all employees under the Government’s autoenrolment scheme.

No trustees received any remuneration during the year (2019: £nil).

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DEBTORS Due within one year: Sundry debtors - GiftAid CREDITORS: Amounts falling due within one year Accruals Due to associated charity	2020 £ 4,179 2019 £ 750 494 1,244	2019 £ 4,793
		2018 £ 750 -
		750

Registered charity No.1140641

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Hope for Kids International NOTES TO FINANCIAL STATEMENTS For the year ended 31 December 2020

6 RESTRICTED FUNDS

The charity holds the following funds which are restricted by country of activity

	1 January	Received in	Utilised	Transfers	31 December
	2020	the year	/Realised	between funds	2020
Kenya	15,636	24,908	(29,380)	-	11,164
Lebanon	4,719	29,841	(19,850)	-	14,710
Zambia	5,822	11,365	(17,333)	-	(146)
Sudan and South Sudan	212	3,543	(2,940)	-	815
Dominican Republic	24	614	(476)	-	162
Guatemala	8,510	7,255	(8,731)	-	7,034
Haiti	66	1,099	(834)	-	331
Peru	321	395	(476)	-	240
Romania	889	2,634	(2,720)	-	803
Non country specific	1,110	2,191	(130)	-	3,171
	37,309	83,845	(82,870)	-	38,284

Donors may make restrictions based on particular projects and individuals and details of these restrictions are fully maintained by the charity. For the purpose of these accounts these funds have been disclosed on a country by country basis.

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ANALYSIS OF NET ASSETS BETWEEN FUNDS

Net Unrestricted general fund Restricted funds	current Assets £ 39,733 38,284 78,017	Total 2020 £ 39,733 38,284 78,017	Total 2019 £ 30,127 37,309
			67,436

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VOLUNTARY HELP AND DONATIONS

The charity also engages with volunteers who assist with various fundraising, publicity and awareness activities. During the year, one volunteer contributed approximately 720 hours. For the purposes of these accounts no value has been attached to this.

Included within voluntary income are donations in kind totalling £nil (2019: £700).

9 CAPITAL COMMITMENTS

There were no capital commitments as at 31 December 2020.

Registered charity No.1140641

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Hope for Kids International ANNUAL REVIEW AND FINANCIAL STATEMENTS

For the year ended 31 December 2020

LEGAL AND ADMINISTRATIVE DETAILS

TRUSTEES	Mr Tony Bailey (elected chair March 10th2020)
	Mr Alan Gillard (chair until March 10th2020)
	Mr Jeremy Kingston
	Mr Alistair Dickey (resigned March 10th2020)
	Mrs Ruth Henningham
	Mrs Wendy Lubbee
	Mr David Morgans
MAIN CONTACT	Mr Tim Hunt (Executive Director from April 1st2020)
	Mr Roger Allen (Executive Director until March 31st2020)
CHARITY ADDRESS*	Hope for Kids International
	Purple Patch
	14 Rosebery Avenue
	London
	EC1R 4TD
TELEPHONE	020 3906 7644
EMAIL	[e-mail]
WEBSITE	www.hopeforkids.co.uk
REGISTERED CHARITY NUMBER	1140641 (England & Wales)
ADDITIONAL WORKING NAMES	Dar El Awlad School
	Kids Alive International (UK)
INDEPENDENT EXAMINER	Malvern Carvell Accountancy and Taxation
	21 Higher Kingston
	Yeovil
	BA21 4AS
BANKERS	National Westminster Bank
	2 Hendford
	Yeovil
	Somerset
	BA20 1TN

*Applicable from 26/10/20. Prior to this it was Phoenix Yard, 69 King’s Cross Road, London, WC1X 9LN

Registered charity No.1140641

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