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2020-09-30-accounts

TREE OF HOPE

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

Company Number: 08184807 Charity Number: 1149254 (England) Charity Number: SC042611 (Scotland)

TREE OF HOPE

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

CONTENTS Page
Reference and administrative details 3
Trustees’ report 4
Independent auditors’ report 18
Statement of financial activities 20
Balance sheet 21
Cash flow statement 22
Notes to the financial statements 23

TREE OF HOPE

REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Status The organisation is a charitable company limited by guarantee, incorporated on 20
August 2012. The corporation is registered as a charity in England, Wales and Scotland.
Governing Document The company was established under a Memorandum of Association which established
the objects and powers of the charitable company and is governed under these Articles
of Association.
Company Number 08184807
Charity Number 1149254 (England)
SC042611 (Scotland)
Registered Office & Salford House
Campaign Office Salford Terrace
19-21 Quarry Hill Road
Tonbridge
Kent
TN9 2RN
Trustees Kevin Werry – Chairman
Pip Lightbody – (resigned as Deputy Chairman 16 October 2020, remains on Board)
Duncan Mason
Robert Lay
Tim Daplyn
Alex Noble – Appointed as Deputy Chairman 16 October 2020
Charlotte Eberlein
Sean Thompson – appointed 1 March 2020
Principal Staff Gill Gibb- Chief Executive Officer
Bankers Metro Bank, 4 Calverley Road, Royal Tunbridge Wells, TN1 2TB
CAF Bank, 25 Kings Hill Avenue, West Malling, Kent, ME19 4JQ
Investment Managers CCLA – COIF Charity Funds, 85 Queen Victoria Street, London, EC4V 4ET
Auditors Haysmacintyre LLP
Chartered Accountants and Registered Auditors
10 Queen Street Place
London
EC4R 1AG

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

The Trustees present their report and the audited financial statements for the year ended 30 September 2020, prepared in accordance with the Statement of Recommended Practice (“SORP 2019”) and the Companies Act 2006.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisational structure

Tree of Hope has seven current Trustees. The Chief Executive Officer is responsible for the day to day operations of the charity and has documented authority from the Board.

Pay of Senior Staff

The trustees consider the board of trustees and the Chief Executive comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Charity on a day to day basis. All trustees give of their time freely and no director received remuneration in the year. Details of directors’ expenses and related party transactions are disclosed in notes 2 and 18 to the accounts.

The pay of the Chief Executive and all staff are reviewed annually and normally increased in accordance with average earnings to reflect a cost of living adjustment. In view of the nature of the charity, the Trustees benchmark against pay levels in other charities. The remuneration benchmark is the mid-point of the range paid for similar roles in similar charities and sizes. In this financial year no salary increase was awarded across the board to staff.

The Trustees

The Board comprises of seven Trustees who are also the company directors under company law.

We recruit new Trustees through advertising to encourage applications from a wide and diverse range of candidates. New Trustees are provided with a complete Trustee Induction Pack which includes information on the history and structure of the organisation, recent accounts, minutes of Board meetings for the last year, the strategic plan, and information on the role and responsibilities of charity Trustees and general guidance on running an effective charity. Trustees are encouraged to request training on any issues relevant to their position in the organisation.

The following Trustees served throughout the period and up to the date of the report:

Kevin Werry Pip Lightbody Duncan Mason Robert Lay Tim Daplyn Alex Noble Charlotte Eberlein

Sean Thompson was appointed as Trustee in March 2020.

No Trustee had any beneficial interest in any contract with the charity during the period, as indicated by an annual review of the Tree of Hope business interests register.

No Trustee has exceeded a nine year term and Trustees have a job description and we review our skills make up when a Trustee vacancy arises or every 18 months.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 30 September 2020 was 8.

Decision-making

The Tree of Hope Board met 5 times during this financial year, an additional meeting was scheduled to review the response of Tree of Hope to the COVID-19 pandemic. The additional Board meeting looked at how we wanted to shape Tree of Hope coming out of Covid-19 ensuring we gain from what we have learnt over the first 3 months of the pandemic and creating a sustainable and responsive charity going forward. The outputs from this have been reviewed and revised at each subsequent Board meeting as we learn and develop.

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Three Sub-Committees have been formed and their activities are detailed later in the Report.

Questions arising at Board meetings are decided by a majority of votes if agreement cannot be reached. In the case of equal votes, the Chair has a second or casting vote. Any changes to the Articles of Association must also be agreed by Trustees.

Risk statement

A risk assessment process is included as part of the strategic plan, regularly reviewing the range of risks affecting Tree of Hope, and implementing procedures to minimise adverse effects. The significant risks are:

The strategic plan, which is reviewed annually, includes tactics to mitigate these risks, particularly in broadening the charity’s funding base. The reserves policy outlined below is intended to protect the charity from fluctuations in income or the short-term reduction of unrestricted funding. Due to the need to repay ongoing liabilities and as a result of the pandemic reserves have fallen and efforts need to be made to bring them more in line with the policy over the next 2 to 3 years.

Governance

The Tree of Hope is a paying member of the Office of the Fundraising Regulator and adheres to their guidelines and we are working towards full compliance with the Charity Governance Code. There were 4 fundraising complaints during this year all relating to clothing collections undertaken by our partners SOS Clothing. All were related to concerns about collecting after the first pandemic driven lockdown. The charity has been complying with all guidelines around clothing collections as laid down by the regulator.

Conflicts of Interest are reviewed at the beginning of each Board and sub Committee meeting and the Board reviews key policies annually and has oversight of our supplier vetting process when safeguarding considerations are necessary when children are worked with directly.

Public benefit

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Commission in determining the activities undertaken by the Charity. Tree of Hope has worked with their solicitors and auditors, as well as the Charity Commission to ensure we meet public benefit requirements and have decided to designate all new charitable funds raised for new campaigns started with the charity from 1[st] October 2016.

All existing campaigns established prior to 30[th] September, 2016 will remain restricted but these funds will decrease over time as they are spent. Trustees believe that designating funds reflects better the fact that whilst funds are raised in the name of a child, they are Tree of Hope funds and if not utilised for any reason can be used to help other families who have ill or disabled children with needs.

Tree of Hope works to ensure that all families with ill and disabled children are made aware of the help and support that we can offer, and we have developed our marketing and social media accordingly. There are over 800,000 ill and disabled children in the UK and we do not means test anyone who comes to us for support. Where families struggle to manage their campaigns and meet their targets, we offer additional support and actively look for Trusts and Foundations and Corporates to assist with funding.

The Trustees' Report section on Aims, Activities and Impact sets out how the charity addresses the public benefit requirement in more detail.

Objects of charity

Tree of Hope offers support to the families of ill and disabled children in the UK who need specialist medical surgery, treatment, therapy and equipment, giving a better quality to their young lives and real hope for their future.

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Our mission is to enable families to fundraise for their child’s treatment at the right time and place. Our vision is that every child gets the treatment they need to transform their life.

The charity provides the support and fundraising infrastructure to help families to raise the money for medical treatment and therapy within the self-funded sector of medicine and healthcare in the UK. Funds are also raised for surgery and treatment by medical specialists abroad, where the specific knowledge and facilities are available, in order to treat children as quickly as possible, often with ground-breaking treatments not available in the UK.

Parental choice is key here - we ensure parents ask the right questions to help guide them to the best solution for their child - ultimately the parent makes the decision regarding the best treatment available on advice from many sources. We work with many other charities to ensure the best advice is available to our families and favour a collaborative approach to ensure our families get the information they need. We give special thanks to the following charities for their assistance in 2019/2020:

However, should the preferred parental solution be an untried or untested treatment outside a clinical trial Tree of Hope will not support the fundraising for this child.

Where Tree of Hope is unique is the well-established fundraising infrastructure and support mechanism around the marketing and communication of individual campaigns that allows families to quickly establish their fundraising story and start to receive donations. Families have the peace of mind that their funds are being managed by a well-established charity in accordance with Charity Commission guidelines and know they can contact the team to discuss their campaign and get support, encouragement and guidance. Donors have the reassurance that their donations will be used appropriately and within the guidelines set by the fundraising regulator unlike unregulated crowdfunding campaigns established by individuals that are not subject to the same checks.

For any individual to try and set up their own charity is time-consuming and expensive. By working with Tree of Hope, families can establish their own personalised campaign within our charity, take advantage of our well-known brand and raise funds tax-efficiently. By sharing all the costs of achieving these advantages families are also ensuring their campaigns are run as efficiently and effectively as possible through a team of dedicated and conscientious professionals. Tree of Hope encourage families not to use crowdfunding if they can be supported by Tree of Hope as this is not tax efficient and donors do not have the reassurance of funds being managed and distributed via a registered charity.

Aims, activities and impact during the period

The year ended September 2020 saw total funds raised of £1,633,692 (2019: £1,463,698) .

Our website was regularly reviewed during the year and changes made to ensure information and support was easier to locate and understand. We also continue with a web-chat service to interact with those visiting our site to provide immediate help and support should it be required.

Activity around social media continued to be developed throughout this financial year, with Tree of Hope fully utilising its Google ad-words grant to ensure that families and supporters were guided towards our site more easily. Our use and interaction with Facebook and Twitter continues to improve and our Instagram usage continues to help show our work and impact. We continued to develop our PR and media activity and provide support for families when interacting with written or spoken media including TV and radio interview support.

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Our safeguarding policies have been reviewed by an independent advisor and appear on our website covering staff, volunteers and suppliers. All staff have received updated safeguarding training and key staff have undertaken in-depth training both in-house and via the Kent Safeguarding Children Board. Four safeguarding issues have been reviewed and considered and resolved without escalation to the Board of Trustees but were noted by the Board at the relevant meeting. The Board of Trustees receive training on safeguarding every 18 months and this is next due in February 2021. All Trustees have confirmed they have read updated Charity Commission guidelines on Safeguarding and confirm there have been no notifiable incidents.

GDPR has been fully complied with and continues to be reviewed and enhanced with clear rationales in place for what data we keep and why alongside our privacy and retention policies.

Investment income decreased from £79,061 in 2019 to £66,705 in 2020.

We finished the financial year with all commercial property rented out and no voids. One office space was in 6 months arrears at the financial year end, but this has now been repaid using the rent deposit and additional funds to December 2020 and a new tenant secured from December 2020.Where appropriate we agreed monthly rental payments rather than quarterly to ease cash flow for our tenants and also minimised service charges where we could with the assistance of our excellent Managing Agents, Oldfield Smith.

Our Finance Sub-Committee oversees all financial elements of the charity including our accounting practices and investment performance as well as looking at our audits, budgeting process and strategic risk register. This committee meets 4 times a year.

This year saw the fifth annual review of the loan from the restricted funds to unrestricted funds which had been necessary because of the financial mismanagement of restricted funds under the management of the CEO prior to Gill Gibb’s appointment. This loan had been necessary as the charity had been funded for several years by inappropriate borrowing from the restricted funds to pay for core costs, grants and campaigns in debit balances. This was an unsustainable model for the charity and clear systems and procedures are in place now to ensure that restricted funds are only used for the purposes they were fundraised for. A loan repayment of capital and interest was made in this financial year, with the remaining balance due to be repaid by 2032.

The charity asks for a 7.5% contribution from all donations and fundraises for unrestricted funds to cover core costs. This compares favourably with other organisations who help families fund treatments and the Trustees are happy this represents excellent value for money. Currently grants are not available, but the Trustees hope to be in a position to offer these to families in need in the future.

Helping Families to Fundraise for Treatments

Tree of Hope has enabled 1000s of children over its almost 30 year history with an extensive array of conditions, many extremely rare, to obtain the additional help that they have needed.

With 1 in every 400 children born with cerebral palsy it is perhaps not surprising that a significant number of the families we support have a child living with this condition. Many are raising funds for additional physiotherapy (not offered on the NHS) or specialist equipment such as adapted trikes and specialist splints. For some, there is the option of Selective Dorsal Rhizotomy (SDR) procedure, an often life changing operation which reduces stiffness and spasticity in a child’s muscles which in turn enables a child to have a greater level of control, dexterity, range and speed.

Thankfully, Tree of Hope have built close relationships with SDR units across the U.K. who have been able to refer families to us where NHS funding is unavailable or post-operative therapies are not totally funded, in the knowledge we will do all that we can for them. Tree of Hope has facilitated many of procedures which would have otherwise not been able to take place.

We cannot quantify the life-time savings in health and social care the improved independence of these children will bring nor the improved quality of life for both children and their families.

Tree of Hope have been supporting children like Gabriella before and throughout the pandemic:

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Gabriella was born with a Rare Genetic Mutation which is now commonly known as Gould Syndrome and as a result Gabriella was diagnosed with Quadriplegic Cerebral Palsy. Gabriella completely dependent on Mum Mel and Dad Carl for support but loves spending time and having fun with her big brothers Bebe and Louis who are also a great support to Gabriella and dote on their little sister! Despite the challenges of Gabriella’s condition, the family’s goal has been to help give a fulfilled life as possible.

“Gabriella is a very happy girl, always smiling, laughing” which Carl explained “absolutely gives us the strength in all the tough times we’ve been through”

The family have such immense appreciation for the NHS who have been amazing to Gabriella since birth as Carlo explained, “before Gabriella I was never a huge user of the NHS but since having Gabriella, I will always have such an appreciation for the system.”

On asking how the family got on during the lockdown, Carl told us, “Gabriella is quite demanding!” Carlo told us as he chuckled! “So we’ve spent a lot of time together, time that I don’t usually get with the complexities of life and work schedules which has been really lovely and a huge positive of the lock down and it’s been great for us to have time together as a family which is all you could really want as a parent.”

Gabriella receives regular physiotherapy that the family access with the Tree of Hope funds which hasn’t happened since the lock down, which Carl explained has been one of the bigger challenges they’ve had. “With the physiotherapy not able to go ahead, we needed something else for Gabriella and as a family we’ve always been very on the case with carrying out exercises and including Gabriella in everything, as it’s a great stimulant.”

Gabriella has benefitted from hydrotherapy which is about an hour’s drive away from the family’s home, so the family decided to use their funds for a Hydrotherapy Pool. Carl told us, “Tree of Hope have been brilliant in helping us organise this and Gabriella has absolutely loved it. Gabriella has very high tone in her muscles and after 10 minutes of being in the pool, the difference in her is really quite something and you can tell how much her muscles are relaxed.”

A big part of Gabriella’s life is going to school with her very supportive peers and teachers. Carl told us “Gabriella misses’ school a lot and being at school does a lot for her. Her teachers carry out physio exercises with her every day and they were really kind by dropping the equipment she uses to our house at the start of the lock down. It was clear how much the school and teachers mean to Bella as she got so upset when they left!” Carl went onto say” At first I was very unsure about her going to school at all and really thought Bella being at home would be the best place or her… so I’m having to eat my hat on that one!”

On asking what having Hydrotherapy available for Gabriella has meant for both her and the family, Carl told us, “We’re really pleased with the results of the hydrotherapy pool and we are really fortunate that we’ve had the support to get this organised along with everything else Gabriella has in terms of different things to stimulate her.” Carl explained, “The travelling we have had to do before, then the getting changed, it made an enjoyable activity a bit stressful so something like this that we can do at home together, as a family makes a massive difference to us all.

Carl told us, “What Gabriella is achieving now is completely different to what doctors told us and I think a lot of that is down to the amount of stimulation Gabriella has always had. We’re a family of 5 and she’s included in everything we do.” Gabriella has an eye gaze machine to help her communication and the family also bought an X-Rover buggy so that Gabriella and Carl can get outside on bike ride together – Gabriella’s favourite thing to do! Carl explained “Things like that are so good for Gabriella, she absolutely loves it and the equipment piece itself really is fantastic in its safety, design and what it provides for Gabriella in terms of a stimulant.”

We asked Carl how being with Tree of Hope helped over the years. He told us, “Before Tree of Hope, we tried to do and fund everything ourselves which was a struggle. We’ve also got two other children so there was always an element of guilt in what we had to provide for Gabriella and the amount we spent on a monthly basis, so that was always quite tough. We’ve been really fortunate with the support we’ve had since we registered with Tree of Hope, from family, friends, people we know choosing Gabriella as their beneficiaries for various events, it’s all just been a massive piece of mind that there has been this facility supporting us, it’s been amazing.

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Carl went onto say, “For families who are fundraising or looking to fundraise, being with Tree of Hope has been amazing and we’re always recommending the organisation. We’d recommend that families utilise all the things Tree of Hope suggest and the support they give, it really is an amazing platform for families like us. In the early stage we didn’t know where to turn for help and Tree of Hope have provided piece of mind and the opportunities, we’ve been able to access for Gabriella which have made a huge difference.”

We have helped almost 200 new families in this financial year, supporting over 600 families in total within the year, with their fundraising efforts and much more.

Our team support Tree of Hope families in the following ways:

Medical conditions we have helped families with include:

This is by no means an exhaustive list and we often help families with children with undiagnosed syndromes looking for new and ground-breaking treatments.

Our Medical Sub-Committee reviews historical cases looking at outcomes and impacts of treatments longer term as well as reviewing new procedures and illnesses being presented to our charity to review their safety and appropriateness. We take advice from members of the committee which includes medically trained attendees and researchers as well as views, opinions and help from expert charities in particular areas. This committee meets 3 times a year.

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Hospitals and treatment centres where we have helped children this year include:

Tree of Hope have worked with the Jack O’Donnell Foundation to identify families who meet their grant-making criteria. There were 8 grants awarded which amounted to £12,813. Five of these grants were for equipment, one was for medical treatment, one for a support dog and one for therapy.

We have also attended several conferences this financial year to help, advise our families and spread the word about our work- these have included Kidz to Adultz, the Autism Show and the Neuro Convention Show, fewer than usual due to the pandemic and associated lockdowns from March 2020.

Our new Fundraising Manager stared with Tree of Hope in August 2019 and had a whole series of events planned, many for the Spring and Summer 2020 including tri-athalon, half marathon and marathon places, a Sporting Heroes dinner, developing on from our successful lunches, a Summer Fayre and a Picnic for Hope. Sadly, all were cancelled due to the pandemic. However, we did run a Lent appeal and a Dine & Donate campaign and we ran a successful Golf Day in between lockdowns to raise unrestricted funds. We also continued with the development of excellent corporate relationships this year with national and local companies including Marks and Spencer, Heartwood, Neptune, Asda, Jarmans Solicitors, EasiStore, Tesco Pembury and MCM Net. Individual fundraising did not hit target this year however we developed several relationships with individuals undertaking socially distanced challenges who were ‘Doing the Distance Anyway.

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Trust and Foundation applications continue with business as usual support from:

Several of these donations have supported the provision of our Family Support Officer – this role directly supports our families throughout their application to Tree of Hope and throughout their campaign journey. We launched an emergency appeal on March 18[th] , 2020 and were supported by both new and existing funders:

In addition, we secured £50,000 of funding from The National Lottery, however this was not received until the start of the new financial year 2020/2021. We met our Emergency Appeal target for 2019/2020 and our heartfelt thanks go out to all our funders for their responsiveness and concern to ensure that Tree of Hope could continue to thrive through the pandemic’s early stages and beyond.

This funding enabled us to help families to meet the challenges of the early stages of the pandemic initial lockdown with flexibility and additional support. We were able to work with therapists and families to ensure that many children were able to take part in physiotherapy and sensory sessions on-line with a therapist guiding parents at home. We were able to adapt to many of our family’s child’s changing needs, with sourcing many ‘at home’ pieces of specialist equipment (trampolines, adapted exercise bicycles and tricycles, small hot tubs to enable hydrotherapy sessions to continue in family gardens) to help keep muscles active in a safe and enjoyable way, ensuring that better physical and mental health were maintained during a period when many of these children’s conditions would have deteriorated otherwise.

The increase for us in purchasing specialist equipment between June -August 2020 compared to previous years was up by 153%. Overall, this year, we have spent 25% more than our usual expenditure to ensure that the families we support had what they needed to get their seriously ill and disabled children through lockdown and isolation measures with their health and quality of life as good and enjoyable as it could be in the circumstances.

In 2019/2020 our charity has been able to change lives with:

£294,090 bought over 200 pieces of specialist equipment, including orthotics, assistive technology for communication, car adaptations to make vehicles wheelchair accessible, 7 specialist wheelchairs, hot tubs to provide hydrotherapy at home during lockdown, specialist bicycles and tricycles to help maintain physical mobility and health, Innowalks, specialist play and sensory apparatus, and a treadmill.

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

£475,790 on specialist therapies and assistance animals including physiotherapy and rehabilitation, speech and language therapy, occupational therapy, hydrotherapy, assistance dogs, music therapy and therapies associated with autism.

£140,902 on operations.

£92,145 on the additional family living expenses occurred when a child is in hospital or having specialist treatment in a location not near home, allowing a parent to stay with their child with less financial pressure at home

£60,298 on home adaptations including creating safe gardens and outdoor spaces for children with mobility / sensory / learning difficulty issues, making homes accessible for those in wheelchairs and with physical disabilities including adapting bathrooms and bedrooms to give children access and comfort when at home, and installing stairlifts.

We stayed in touch with parents regularly throughout the year to check they had what they needed, and to be a listening ear when they needed to offload the stress that the pandemic had caused for them. We ran new online fundraising campaigns that families could access and use to reach their own local communities, engage with others safely and connect with people in a positive way during a time when many were feeling isolated. We have learnt a lot about providing online events, for fundraising and for families, and intend to use these more in the future. Essentially, we were able to continue to do what Tree of Hope exists for – to make sure that the children and young people who need our help to improve their health and quality of life receive all the support we can give them.

Our Fundraising and Marketing activity is overseen by our Fundraising and Marketing Sub-Committee which meets 4 times a year.

We continued to develop our systems in this financial year, automating our finance processes and streamlining our invoice authorisation and payment processes still further.

Our Strategic Plans

Broad Strategic Overview

The strategic review has been undertaken after over 6 months of a global pandemic including a prolonged lockdown resulting in the furloughing of 3 staff, the remainder working from home and a cost saving restructure. The pandemic continues with expectations of a second wave so, where possible, actions will have an alternative virtual option or replacement activity or date should the original prove impossible.

We have managed to keep business-as-usual activity going well and have signed up new cases and been creative with how we have supported families to find alternative therapies and equipment to help them during lockdown. Our social media, marketing and PR has remained strong during this period.

We will continue to support families to ensure positive impact and outcomes for children and young people and their families by:

We will achieve this by:

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

We will continue to drive up unrestricted fundraising, develop our marketing and brand awareness, strengthen our governance, review our service delivery and product offering and drive up volunteering.

Governance, Policy and Leadership

Strategic Overview:

Outcomes to financial year end 2019/20:

Outcomes to financial year end 2020/21:

Family Support

Strategic Overview:

Outcomes to financial year end 2019/20:

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Outcomes to financial year end 2020/21:

These outcomes should be read in conjunction with the marketing strategy 2020/21 below.

Working with families to fundraise £1.2m, to meet their fundraising targets. This will be reviewed quarterly. The following activities are planned to hit/exceed this target:

Fundraising

Strategic Overview

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Outcomes to financial year end 2019/20:

Outcomes to financial year end 2020/21:

A review of our property portfolio

Our properties are now fully let with no voids at the year end.

Our long term objective remains to retain these commercial properties to generate income that goes straight to our cause and ideally to find tenants that are sympathetic to our charitable objects or offer services that our families find beneficial alongside maximising the return on these properties to benefit the charity.

Funding our Charity for the Future

The charity continues to ask for a contribution from campaign funds to ensure a secure future for the organisation and allow for future investment to strengthen and develop services in line with the charity’s objects.

The contribution remains at 7.5% and is regularly reviewed.

If you collect £100 and it is eligible for Gift Aid, the taxman will add £25 in Gift Aid. Tree of Hope and Just Giving fees are collected from the Gift Aid element leaving a £100 qualifying donation resulting in a credit to a child’s campaign of £115.62.

Remember if you crowdfund no donation will be eligible for GiftAid.

Our long-term objective is to ensure our charity is run as efficiently and effectively as possible and to keep contributions from campaigns at a minimum.

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Financial review

In the period to 30 September 2020 the charity had total income of £1,633,692. This comprised £1,528,808 from voluntary income including individual donations and grants from corporates and trusts. Further income was generated through investment property income and investments as well as grant funding for our charitable activities. Further information is provided in Notes 3 and 4 to the accounts.

Total expenditure was £1,556,944 with £1,459,488 being on charitable activities.

Overall, the charity made a surplus of £261,013 after unrealised gains. At 30 September 2020 the charity had total funds of £3,482,502 of which £697,380 were unrestricted and £2,785,122 restricted. The unrestricted funds comprise designated funds of £1,527,910, general funds of £59,507 and the Strategic Investment Fund of (£890,037). The charity has entered into a legal agreement by which they are able to loan from restricted funds to unrestricted funds on a temporary basis to cover the shortfall in unrestricted funds. It is proposed that the loan will be fully paid off by 30[th] September 2032. This loan is shown within the accounts as the Strategic Investment Fund.

Reserves policy

The trustees have established a reserves policy to meet the following objectives:

  1. To comply with prudent accounting principles and the requirements of SORP

  2. To comply with donor requirements where those are specified

  3. To safeguard the long-term financial management and sustainability of the charity with a view to achieving its charitable objectives

  4. To invest in strategic objectives

Trustees will review the level of reserves each year to ensure that they meet the objectives of this policy. This will be done at Finance Committee with recommendations made to the Board of Trustees.

1 Restricted Reserves

The trustee policy does not need to cover restricted reserves as they are defined by law:

2 Strategic Investment Fund

▪ This relates to the loan from restricted to unrestricted funds as described above.

3 Unrestricted Reserves and Free Reserves

The remaining reserves are Unrestricted Reserves and otherwise referred to as general funds. These are not publicly stated as being designated for any purpose but will appear in summary in the audited Balance Sheet of the Charity as set out below.

To manage risk, the Charity’s policy is to hold funds sufficient to cover:

The unrestricted reserve requirement at the year-end is a) £170-£180k + b) £100k = £270-£280k.

Investment policy

The charity’s assets can be invested widely and should be diversified by asset class which may include cash, bonds, equities, property and any other asset that is deemed suitable by the charity.

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TREE OF HOPE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

The charity is expected to exist in perpetuity and investments should be managed to meet the investment objective and ensure this sustainability.

We regularly review the performance of these investments and will take advice from investment experts and our investment managers when needed. Trustees virtually met with CCLA to review the investment performance of CCLA during the pandemic and were satisfied with their approach and the performance to date.

Responsibilities of the Trustees

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the year then ended.

In preparing those financial statements which give a true and fair view, the Trustees should follow best practice and:

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006, the Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

The Trustees are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

As Trustees we also confirm that we have made all necessary enquiries and taken such steps that we ought to, to ensure that we become aware of any relevant audit information and that we confirm that the charitable company’s auditors have been made aware of such information.

Om preparing this report, the Trustees have taken advantage of the small companies’ exemption from preparing a strategic report.

Approved by the Trustees on 29 January 2021 and signed on their behalf by

Kevin Werry

Kevin Werry – Chair

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF TREE OF HOPE

Opinion

We have audited the financial statements of Tree of Hope for the year ended 30 September 2020 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement, 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).

Basis for opinion

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 17, 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 determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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

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.

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Emphasis of matter

We draw attention to note 1(a) on page 23 of the financial statements which discloses the premise upon which the company has prepared its financial statements by applying the going concern assumption. Our audit opinion is not modified in respect of this matter.

18

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF TREE OF HOPE

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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 misstatements in the Trustees’ Report (which incorporates the directors’ 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:

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, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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.

Steven Harper (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors

10 Queen Street Place London EC4R 1AG

Date: 12 February 2021

19

TREE OF HOPE

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

General
and Strategic
Restricted Designated Reinvestment Total Total
Funds Funds Fund 2020 2019
Notes £ £ £ £ £
INCOME FROM:
Donations & grants 3a 332,110 1,196,698 - 1,528,808 1,258,975
Other trading activities 3b - 57,378 - 57,378 54,116
Charitable activities 3c - 10,801 - 10,801 71,546
Investments 4 66,705 - - 66,705 79,061
--------------------- --------------------- --------------------- ------------------- -------------------
TOTAL INCOME 398,815 1,264,877 - 1,633,692 1,463,698
-------------------- -------------------- -------------------- ------------------- -------------------
EXPENDITURE ON:
Costs of raising funds 5a 66,705 30,751 - 97,456 116,049
Charitable activities 5a 653,602 805,886 - 1,459,488 1,837,054
--------------------- --------------------- --------------------- ------------------- -------------------
TOTAL EXPENDITURE 720,307 836,637 - 1,556,944 1,953,103
--------------------- --------------------- --------------------- ------------------- -------------------
Net (expenditure)/income before
investment gains/(losses) (321,492) 428,240 - 106,748 (489,405)
Net gains/(losses) on investments 11,12 154,265 - - 154,265 208,588
--------------------- --------------------- --------------------- ------------------- -------------------
Net (expenditure) / income (167,227) 428,240 - 261,013 (280,817)
Transfers 16 (67,490) (43,510) 111,000 - -
--------------------- --------------------- --------------------- ------------------- ---------------------
NET MOVEMENT IN FUNDS 16 (234,717) 384,730 111,000 261,013 (280,817)
Funds at 1 October 2019 3,019,839 1,202,687 (1,001,037) 3,221,489 3,502,306
--------------------- --------------------- --------------------- ------------------- -------------------
Funds at 30 September 2020 16 2,785,122 1,587,417 (890,037) 3,482,502 3,221,489
========== ========== ========== ========= =========

All of the above results are derived from continuing activities.

There were no other recognised gains or losses other than those stated above.

A full comparative Statement of Financial Activities is included in Note 19.

General Funds, Designated Funds and the Strategic Reinvestment Funds represent the unrestricted funds of the charity.

The notes on pages 23 to 33 form part of these accounts.

20

Company No. 08184807

TREE OF HOPE

BALANCE SHEET

AT 30 SEPTEMBER 2020

30 September 30 September
2020 2019
Notes £ £
FIXED ASSETS
Tangible assets 10 2,080 2,880
Investment properties 11 1,210,000 1,210,000
Investments 12 2,250,090 2,250,823
------------------- -------------------
3,462,170 3,463,703
CURRENT ASSETS
Debtors 13 93,780 92,032
Cash at bank and in hand 266,278 16,049
------------------- -------------------
360,058 108,081
CREDITORS:amounts falling due within one year 14 (339,726) (350,295)
------------------- -------------------
NET CURRENT ASSETS 20,332 (242,214)
------------------- -------------------
--------------------- ---------------------
NET ASSETS 3,482,502 3,221,489
========== ==========
FUNDS
Unrestricted funds – General Funds 16 59,507 150,000
Unrestricted funds – Designated Funds 16 1,527,910 1,052,687
------------------- -------------------
1,587,417 1,202,687
Unrestricted funds – Strategic Reinvestment Fund 16 (890,037) (1,001,037)
Restricted funds 16 2,785,122 3,019,839
------------------- -------------------
TOTAL FUNDS 3,482,502 3,221,489
========== ==========

The financial statements were approved and authorised for issue by the Trustees on 29 January 2021 and were signed on their behalf by:

Kevin Werry

Kevin Werry - Chair Director

The notes on pages 23 to 33 form part of these accounts..

21

TREE OF HOPE

CASH FLOW STATEMENT

AT 30 SEPTEMBER 2020

Note 2020 2019
£ £
Cash flows from operating activities 17 28,536
(503,354)
Cash flows from investing activities
Investment income 66,705 79,061
Purchase of tangible fixed assets (10)
-
Sale of investments 154,998
305,000
---------------------- ----------------------
Cash provided by (used in) investing activities 221,693 384,061
Increase (decrease) in cash and cash equivalents in the year 250,229 (119,293)
Cash and cash equivalents at the beginning of the year 16,049
135,342
---------------------- ----------------------
TOTAL CASH AND CASH EQUIVALENTS AT THE END
OF THE YEAR 266,278 16,049
=========== ===========

Cash and cash equivalents comprise solely cash at bank and in hand for both the current and prior year.

The notes on pages 23 to 33 form part of these accounts.

22

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

1. ACCOUNTING POLICIES

a) Basis of Preparation of Financial Statements

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) - Charities SORP (Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Tree of Hope meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Going Concern

In the year to 30 September 2020, the charity made a deficit before transfers of £56,374 on its general funds, and had a year end cash balance of £266,278. An investment of £890,037 had also been made from restricted to unrestricted funds and further details are shown in note 16. Note 15 to the accounts illustrates the composition of the assets held in each fund and it is noted that a proportion of the restricted funds are held in illiquid assets. The accounts have been prepared on a going concern basis which the Trustees believe to be appropriate for the following reasons. The Charity has investments of £2,250,090 which it can liquidate if required. Forecast unrestricted income and expenditure and cash flow information for the period to September 2032 has been prepared and considered by the Trustees. On the basis of the forecasts, the Trustees consider that the Charity will be able to meet its debts as they fall due and repay the investment made to unrestricted funds over this period and that there is no material uncertainty which could cast doubt on the ability of the Charity to continue as a going concern..

Critical accounting judgements and estimates

In preparing these financial statements, the trustees have made judgements, estimates and assumptions that affect the application of the charities accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Charity’s investment properties were last valued in January 2016. In the Trustees’ judgement, there was no material change in the valuation of the investment properties between this date and 30 September 2020.

b) Subsidiary undertaking

Tree of Hope has one subsidiary undertaking, Tree of Hope Trading Limited. The subsidiary is no longer trading and its balance sheet is immaterial in comparison with the accounts of Tree of Hope. On the basis that the subsidiary is not material, consolidated accounts have not been prepared.

c)

Income

Voluntary income, investment income and interest on deposits are dealt with on a receivable basis. All income is included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Grants are recognised in full in the Statement of Financial Activities in the year in which they are receivable. Income received under the Coronavirus Job Retention Scheme is accounted for in the period in which the associated salary payments are made to furloughed staff.

d) Expenditure

All expenditure is accounted for on an accrual basis and has been classified under headings that aggregate all costs related to the category. Expenditure includes attributable VAT which cannot be recovered. Costs of generating funds: Includes costs associated with activities which are directly involved in generating income. Charitable activities: Includes payment of grants to programmes and support costs apportioned as shown in Note 5a. Grants applications are paid in accordance with approval by senior management.

23

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

1. ACCOUNTING POLICIES (continued)

Support costs: Includes costs associated with the day to day management of the charity. These costs cannot be directly associated to a particular activity of the business and accordingly are apportioned on the basis of time spent and shown in Note 5a. Governance costs, which include those costs associated with the governance of the charity, are included as a component of support costs.

e) Tangible Fixed Assets and Depreciation

All assets costing more than £500 are capitalised.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life. Depreciation is charged on a straight line basis, with the following expected useful life:

Freehold property 50 years
Freehold building improvements 10 years
Furniture, fixtures and fittings 5 years
Computer equipment 3 years

Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate that their recoverable value may be less than their carrying value.

f) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value

g) Investments

Investments are included in the Financial Statements at market value and associated unrealised gains and losses are shown in the Statement of Financial Activities. Realised gains are calculated by reference to disposal proceeds minus either the cost of the investment acquired in the year or prior year-end market value, and are separately disclosed in the Statement of Financial Activities. All income from investments is shown on an accrued basis and used for the furtherance of the charity’s work. In line with the requirements of FRS 102, investments are held at bid price.

h) Investment Properties

The Investment Properties in accordance with the SORP are held at market value as deemed reasonable by the trustees. No depreciation is charged and movements in valuation are taken to the Statement of Financial Activities. Valuations are conducted as and when deemed appropriate by the trustees.

i) Foreign Currencies

Monetary assets and liabilities demonstrated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

j) Stocks

Stock is valued at the lower of cost and net realisable value. Cost is determined principally on the first in first out basis. Net realisable value is the expected price at which stock can be realised.

24

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

1. ACCOUNTING POLICIES (continued)

h) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

i) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

j) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due

k) Lease Agreements

Rentals under operating leases are charged to the Statement of Financial Activities as they fall due.

l) Company information

Tree of Hope is a company limited by guarantee, registered in England and Wales. and a charity registered in England and Wales and in Scotland. Its registered address is: Salford Terrace, 19-21 Quarry Hill Road, Tonbridge, Kent, TN9 2RN

2.

NET EXPENDITURE 2020 2019
£ £
This is stated after charging/crediting:
Depreciation 810 6,833
Auditors’ remuneration (inclusive of VAT):
Audit 13,800 13,800
Other services 5,726 4,268
======= =======
Trustees’ reimbursed expenses - -
======= =======

25

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

3. INCOME 2020 2019
£ £
(a) Donations and grants
Campaign donations 1,288,896 1,085,285
Contribution from campaigns to Tree of Hope 88,523 83,490
Donations directly received b Tree of Hope 126,072 90,200
Amounts received through Coronavirus Job Retention Scheme 25,317 -
------------------- -------------------
1,528,808 1,258,975
========= =========
(b) Other trading activities
Profit share from sale of goods and services 57,738 54,116
========= =========
(c) Income from charitable activities
Other income 10,801 71,546
========= =========
All income was derived in the UK.
4. INVESTMENT INCOME 2020 2019
£ £
Bank interest 495 23
Rental income from investment properties 66,210 79,038
----------------- -----------------
66,705 79,061
======== ========
5a EXPENDITURE Direct & Directly Support Total
Allocated Costs Costs (note 6) 2020
£ £ £
Costs of raising funds 93,371 4,085 97,456
Charitable activities 1,347,374 112,114 1,459,488
------------------- ----------------- -------------------
1,440,745 116,199 1,556,944
========= ======== =========
5b EXPENDITURE - 2019 Direct & Directly Support Total
Allocated Costs Costs (note 6) 2019
£ £ £
Costs of raising funds 111,301 4,748 116,049
Charitable activities 1,690,333 146,721 1,837,054
------------------- ----------------- -------------------
1,801,634 151,469 1,953,103
========== ======== =========

26

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

6a SUPPORT COSTS

SUPPORT COSTS
Costs of Charitable Total
raising funds Activities 2020
£ £ £
Finance and administration 1,496 21,583 23,079
Premises and equipment 2,392 34,520 36,912
Training and courses 145 2,089 2,234
Depreciation 52 758 810
Governance costs - 53,164 53,164
-------------- --------------- --------------
4,085 112,114 116,199
======= ======= =======
SUPPORT COSTS - 2019
Costs of Charitable Total
raising funds Activities 2019
£ £ £
Finance and administration 2,185 33,180 35,365
Premises and equipment 2,087 31,697 33,784
Training and courses 54 822 876
Depreciation 422 6,411 6,833
Governance costs - 74,611 74,611
-------------- --------------- --------------
4,748 146,721 151,469
======= ======= =======

6b SUPPORT COSTS - 2019

7. CHARITABLE EXPENDITURE

During the period the charitable company paid grants in relation to the provision of medical surgery, treatment, therapies and equipment. These grants were provided to the families of children for medical services, which would not otherwise have been available to those families. These expenses included the following:

2020 2019
£ £
Children’s medical costs 1,119,410 1,444,581
Wages and salaries 221,599 234,462
Marketing costs 6,365 11,290
--------------------- ---------------------
Direct costs of charitable activities 1,347,374 1,690,333
Support costs (excluding governance costs) 59,950 71,220
Governance costs 52,164 74,611
--------------------- ---------------------
1,459,488 1,837,054
========== ==========

27

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

8. STAFF COSTS AND NUMBERS 2020 2019
£ £
Staff costs were as follows:
Salaries and wages 255,166 296,281
Social security costs 25,045 28,924
Pension costs 4,702 -
Redundancy and termination payments - 5,601
----------------- -----------------
284,913 330,806
======== ========

One employee earned in the band £60,000 - £70,000 in the year (2019: one).

The total remuneration of key management personnel in the year ended 30 September 2020 was £75,027 (2019: £75,027).

The average weekly number of employees 2020 2019
during the year was as follows: Number Number
Raising voluntary income 3 2
Charitable activities 4 7
Governance 1 1
------------- ------------
8 10
====== ======

9. TAXATION

The charity is exempt from corporation tax as all of its income is charitable and is applied for charitable purposes.

10. TANGIBLE FIXED ASSETS Furniture
Fixtures and Computer
Fittings Equipment Total
£ £ £
Cost
At 1 October 2019 and 30 September 2020 34,525 7,587 42,112
Additions - 10 10
--------------------- --------------------- ---------------------
34,525 7,597 42,122
--------------------- --------------------- ---------------------
Depreciation
At 1 October 2019 32,371 6,861 39,232
Charge for the year 228 582 810
--------------------- --------------------- ---------------------
At 30 September 2020 32,599 7,443 40,042
--------------------- --------------------- ---------------------
Net Book Value
At 30 September 2020 1,926 154 2,080
========== ========== ==========
At 30 September 2019 2,154 726 2,880
========== ========== ==========

All tangible fixed assets are used to fulfil the charity’s objects.

.

28

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

11. INVESTMENT PROPERTIES Total
Funds
£
Market value at 1 October 2019 and 30 September 2020 1,210,000
==========

In December 2017, the charity ceased utilising the premises at Camden Road, Tunbridge Wells, which had a net book value of £226,776. A decision was made to rent the premises on the external property market. Therefore, the asset was transferred from tangible fixed assets to investment properties at its net book value at that date. Subsequent to the transfer, the asset was subject to a full valuation by a professional valuer by Bracketts Chartered Surveyors which resulted in a £43,224 gain on revaluation.

The remainder of investment properties relate to the Long Barn, Crowborough and Old Saw Mill, Crowborough.

The trustees have considered the carrying value of the investment properties at 30 September 2020 and are satisfied that there is no material movement compared with the most recent valuation

12. INVESTMENTS

INVESTMENTS
2020
£
Market value at 1 October 2019 2,250,823
Disposals (154,998)
Losses on revaluation in the year 154,265
---------------------
Market value at 30 September 2020 2,250,090
==========

The investments comprise of listed CCLA COIF Charities Investment Fund Accumulation Units.

13. DEBTORS

14.

DEBTORS
2020 2019
£ £
Trade debtors 18,098 3,128
Other debtors 10,761 4,491
Prepayments 28,762 45,256
Accrued income 15,276 20,640
VAT 5,720 3,354
Amounts due from related entities 15,163 15,163
---------------- ----------------
93,780 92,032
======== ========
CREDITORS: amounts falling due within one year
2020 2019
£ £
Accruals 17,055 14,946
Other creditors 310,883 311,173
Trade creditors 11,778 24,176
---------------- ----------------
339,726 350,295
======== ========

29

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

15. NET ASSETS BY FUND
Strategic
Restricted General Designated Reinvestment Total
Funds Fund Funds Fund 2020
£ £ £ £ £
Tangible fixed - 2,080 - - 2,080
assets
Investment 1,210,000 - - - 1,210,000
properties
Investments 778,335 101,848 1,369,907 - 2,250,090
Current assets 105,544 34,876 219,638 - 360,058
Current liabilities (198,794) (79,297) (61,635) - (339,726)
Creditors falling due in
more than one year: Inter-
fund loan 890,037 - - (890,037) -
------------------- ------------------- ------------------ ------------------- -------------------
NET ASSETS 2,785,122 59,507 1,527,910 (890,037) 3,482,502
========== ========== ========= ========== ==========
NET ASSETS BY FUND – 2019
Strategic
Restricted General Designated Reinvestment Total
Funds Fund Funds Fund 2019
£ £ £ £ £
Tangible fixed - 2,880 - - 2,880
assets
Investment 1,210,000 - - - 1,210,000
properties
Investments 914,310 201,848 1,134,665 - 2,250,823
Current assets 38,427 30,314 39,340 - 108,081
Current liabilities (143,935) (85,042) (121,318) - (350,295)
Creditors falling due in
more than one year: Inter-
fund loan 1,001,037 - - (1,001,037) -
------------------- ------------------- ------------------ ------------------- -------------------
NET ASSETS 3,019,839 150,000 1,052,687 (1,001,037) 3,221,489
========== ========== ========= ========== ==========

30

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

16. MOVEMENT IN FUNDS

Net gains and At
At 1 Oct losses on 30 Sept
2019 Income Expenditure investments Transfers 2020
£ £ £ £ £ £
Unrestricted funds
General funds 150,000 308,091 (364,465) - (34,119) 59,507
Strategic
Reinvestment Fund (1,001,037) - - - 111,000 (890,037)
Designated funds
Children’s funds 952,687 956,786 (472,172) - (9,391) 1,427,910
Risk reserve 100,000 - - - - 100,000
Restricted funds
Children’s funds 3,019,839 398,815 (720,307) 154,265 (67,490) 2,785,122
------------------- ------------------ --------------------- ------------------ --------------------- -------------------
Total funds 3,221,489 1,663,692 (1,556,944) 154,265 - 3,482,502
========= ========= ========== ========= ========== =========
MOVEMENT IN FUNDS – 2019
Net gains and At
At 1 Oct losses on 30 Sept
2018 Income Expenditure investments Transfers 2019
£ £ £ £ £ £
Unrestricted funds
General funds 469,401 299,353 (418,170) - (200,584) 150,000
Strategic
Reinvestment Fund (1,316,361) - - - 315,324 (1,001,037)
Designated funds
Children’s funds 712,749 720,654 (480,716) - - 952,687
Risk reserve - - - - 100,000 100,000
Restricted funds
Children’s funds 3,636,517 443,691 (1,054,217) 208,588 (214,740) 3,019,839
------------------- ------------------ --------------------- ------------------ --------------------- -------------------
Total funds 3,502,306 1,463,698 (1,953,103) 208,588 - 3,221,489
========= ========= ========== ========= ========== =========

Strategic reinvestment fund

The charity has entered into a legal agreement by which they are able to loan from restricted funds to unrestricted funds on a temporary basis to cover the shortfall in unrestricted funds. It is proposed that the loan will be fully paid off by 30[th] September 2032. This is shown as the strategic reinvestment fund which is a component of unrestricted funding.

Designated fund

From 1 October 2016, new appeals have been classified within the accounts as designated funds. This is on the basis that whilst the funds are earmarked for specific campaigns, they can be used for the general purposes of the Charity.

Designated funds include an additional reserve of £100,000 over and above the funds which have been earmarked for specific children. This reflects that certain of the designated and restricted funds are held in investments and can be utilised in the event that the investments fall in value.

31

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

16. MOVEMENT IN FUNDS (continued)

Purpose of restricted funds

The children’s funds are in relation to the provision of medical surgery, treatment, therapies and equipment for medical services, for the families of children, which would not otherwise have been available to those families.

Additional restricted funds were received this year in relation to funding for the Family Support Officer post. As these costs have been borne by unrestricted funds, the funds have been transferred to general funds to reimburse general funds for the costs incurred.

Transfers

Transfers represent the following:

17. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2020 2019
£ £
Net income/(expenditure) for the year 261,013 (280,817)
Add back depreciation charge 810 6,833
Deduct investment income shown in investing activities (66,705) (79,061)
Gain on investments (154,265) (208,588)
(Increase)/decrease in debtors (1,748) 32,886
(Decrease)/increase in creditors (10,569) 25,393
---------------- ----------------
28,536 (503,354)
======== ========

18. RELATED PARTIES

Donations of £nil were received from Trustees’ in the period (2019: £nil). There were no other related party transactions that require disclosure in either the current nor the preceding year.

32

TREE OF HOPE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

19. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

General
and Strategic
Restricted Designated Reinvestment Total
Funds Funds Fund 2019
Notes £ £ £ £
INCOME FROM:
Donations 3a 364,630 894,345 - 1,258,975
Other trading activities 3b - 54,116 - 54,116
Charitable activities 3c - 71,546 - 71,546
Investments 4 79,061 - - 79,061
--------------------- --------------------- --------------------- -------------------
TOTAL INCOME 443,691 1,020,007 - 1,463,698
-------------------- -------------------- -------------------- -------------------
EXPENDITURE ON:
Costs of raising funds 5a 79,061 36,988 - 116,049
Charitable activities 5a 975,156 861,898 - 1,837,054
--------------------- --------------------- --------------------- -------------------
TOTAL EXPENDITURE 1,054,217 898,886 - 1,953,103
--------------------- --------------------- --------------------- -------------------
Net (expenditure)/income before
investment gains/(losses) (610,526) 121,121 - (489,405)
Net gains/(losses) on investments 11,12 208,588 - - 208,588
--------------------- --------------------- --------------------- -------------------
Net (expenditure) / income (401,938) 121,121 - (280,817)
Transfers 16 (214,740) (100,584) 315,324 -
--------------------- --------------------- --------------------- -------------------
NET MOVEMENT IN FUNDS 16 (616,678) 20,537 315,324 (280,817)
Funds at 1 October 2018 3,636,517 1,182,150 (1,316,361) 3,502,306
--------------------- --------------------- --------------------- -------------------
Funds at 30 September 2019 16 3,019,839 1,202,687 (1,001,037) 3,221,489
========== ========== ========== =========

As explained in note 16, transfers between funds has been restricted in order to correctly reflect the split between restricted and unrestricted funds.

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