## **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 need to continue to develop unrestricted fundraising to cover core costs.
- The limited staffing numbers in place to deal with the volume of funds received.
- The constant vigilance around potential safeguarding issues when parents are looking at untried and untested treatments.
- The impact of Covid-19 on our overall fundraising efforts, both unrestricted and designated.
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:
- The UK Stem Cell Foundation
- Action for ME
- Caudwell Children
- UK Young Autism Project
- PANS PANDAS
- Supporting Paws
- The Family Fund
- Caudwell Children
- Research Autism
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:
- Assisting with the creation of a Tree of Hope online fundraising campaign via Just Giving, our fundraising partner, managing all off-line donations via cash and cheques and making GiftAid reclamations where appropriate.
- Making fundraising tools and advice available to parents.
- Assisting with PR support and advice, speaking to the media on behalf of families and gaining exposure for campaigns and the work of Tree of Hope generally to raise awareness.
- Ensuring staff are available on the telephone to listen and offer support wherever possible
- Enabling each campaign to claim gift-aid because it is part of a registered charity, Tree of Hope.
- Putting families in touch with each other for moral support.
- Giving greater exposure to individual campaigns nationally through their association with a well-recognised brand.
- Liaising with Trusts and Foundations to obtain grants for families that meet their particular grant- making criteria.
- • Support with managing funds and paying invoices, giving real certainty to donors that funds are being used for the purposes intended and complying with charity commission guidelines and fundraising best practice.
- Publication of quarterly newsletters that provide case studies, ideas and support for all families. This is mailed out to all our actively fundraising families.
Medical conditions we have helped families with include:
- Cerebral Palsy
- Retts Syndrome
- Downs Syndrome
- Global Development Delay
- Hypermobility
- Congenital Hypotonia
- Epilepsy
- Visual Impairments
- Meningitis complications
- Lebers Congenital Amaurosis
- Dravet Syndrome
- Hypoxic Ischemic Encephalopathy
- Dystonia
- Autism
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:
- Portland Hospital
- Leeds General Hospital
- Great Ormond Street Hospital
- Alder Hey Hospital
- Bristol Hospital
- St Louis Children’s Hospital
- Children’s Neuro Physio
- London Orthotics Company
- The Peto Institute
- SDR Wales
- SDR Progression
- The Freddie Farmer Foundation
- Centrobed
- Theraposture
- The Movement Centre
- Wanderlust Therapy for Kids
- Osteopathic Centre for Kids
- Neurokinex Kids
- Invictus Active
- The Sound Learning Centre
- Future Health Biobank
- HKD Solutions
- NAPA
- London Orthotics Company
- Smartbox
- The Footsteps Centre
- Kids Physio Work
- Quest 88
- The Family Hope Center
- Hobbs Rehabilitation
- UKYAP
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:
- The Trysil Trust
- Ian Askew Charitable Trust
- The Sir James Roll Charitable Trust
- The Whitehead Monckton Charitable Fund
- The Schuster Charitable Trust
- The Durtnell Charitable Trust
- Sir Donald and Lady Edna Wilson CT
- KCC Combined Members grant (twice)
- Broyst Foundation
- The Tory Family Foundation
- The Tous Yamini Settlement
- The Charles Jacob Charitable Trust
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:
- The Trysil Trust
- The Edward Gostling Foundation
- The Rooney Foundation Fund (Via Kent Community Foundation)
- The Colyer-Fergusson Charitable Trust
- The Alchemy Foundation
- The Dixie Rose Findlay Charitable Trust
- The Thousandth Man Richard Burns Charitable Trust
- Kent Community Foundation Coronavirus Emergency Fund
- The Baily Thomas Charitable Fund Emergency Grants
- The Basil Samuel Charitable Trust
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:
- Strengthening existing support and opportunities available to families.
- Increasing our presence in communities online and with suppliers and service providers so families that are eligible find out about us more easily.
- Progressively focusing our work to support families with the ultimate objective of raising the funds required for campaigns AND most importantly, securing the support from these families once their campaign has ended to spread awareness of our work and to help with general fundraising.
We will achieve this by:
- Continuing to improve trust, standing and subsequently funding for our services.
- Transforming our capacity to respond to the needs of children, young people and their families through developing our knowledge base, customer processes and marketing reach.
- Empowering our team to develop themselves through training, coaching, mentoring; and mutual support across roles and responsibilities.
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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:**
- To have made regular loan repayments where possible back to the restricted fund and be on track to finish the loan by 2032.
- To ensure all policies and procedures adhere to regulatory and best practice guidelines.
- To ensure that adequate Board succession planning is in place and that the Board is well governed.
- To regularly review our charitable objects and scope.
## **Outcomes to financial year end 2019/20:**
- Appointed 2 additional Trustees as planned.
- Ensured our report and accounts adhere to the Charity Commission’s Governance Code.
- Implemented the revised Fundraising Regulator Code of Fundraising Practice.
- Updated staff and Trustee’s safeguarding training.
## **Outcomes to financial year end 2020/21:**
- Review the succession plan for the Board and discuss the fact the Deputy Chair is coming to the end of his second term of office.
- Ensure the report and accounts adhere to the Charity Commission’s Governance Code and all new SORP and COVID-19 requirements for reporting.
- Ensure the new COVID-19 Fundraising Regulator changes are adhered to throughout the duration of the pandemic.
- Ensure the Trustees and staff safeguarding refresher training is undertaken.
## _**Family Support**_
## **Strategic Overview:**
- The Family ‘customer journey’ will be mapped from start to finish and processes and documents altered accordingly to ensure it is as simple, easy and family friendly as possible.
- Family Support documents will then be reviewed annually to ensure relevance and more frequently as new information or requirements emerge.
- Our CRM and IT functions will be used to their fullest potential to capture information and data that enables us to support families and campaigns achieve their targets.
- We will meet the needs of our families through ensuring adequate provision of support by the families and wider Tree of Hope team. This will be reviewed on a regular basis and resources aligned to meet demand through scaling up/down through our various activities.
- Our Medical Committee will continue to support and add value to our work through review of specific families and conditions, in addition to exploring emerging themes and historic data in healthcare to ensure Tree of Hope is working with the correct specialist bodies for advice and guidance.
## **Outcomes to financial year end 2019/20:**
- We attended 4 conferences throughout the year either as delegates or as stand-holders, interacting with families and suppliers to create meaningful relationships to create potential campaigns and referrals. 4 others cancelled due to Covid-19.
- We actively contacted onboarded families from 2017/18 and 2018/19 to assist with their fundraising where this has hit a barrier, looking to help achieve targets set by the families.
- We worked with family fundraising opportunities such as Winter Wonder Wheels alongside the Fundraising team and used this to increase campaign funds and obtain good local and national PR where possible for the families. These have now gone virtual until at least Summer 2021
- Our family support offer was structured and focused as we make better use of the systems we have in place currently at our disposal. Continued use of our CRM system CiVi to record telephone calls, communications and correspondence with families, suppliers and donors.
13
## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2020**
- Timely information was provided for our inhouse marketing officer, and external PR support to ensure stories, events and activities were up to date and relevant to support an increased presence within different forms of media.
- Through working closely with fundraising, family support assisted families to capitalise on local trusts, grants and foundations that are relevant to their geography/condition towards individual campaigns.
- The medical committee met three times in the financial year (February & June and September), reviewing operations and therapies, safeguarding and meeting with organisations, charities and individuals we collaborate with.
## **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:
- Recruit a new Family and Marketing Officer by October 2020.
- We will look to attend virtually or actually as exhibitors or attendees 10 conferences either nationally or locally keeping detailed records of leads and conversion rates as well as suppliers and professionals spoken to and reciprocal agreements reached.
- A regular pattern of contacting onboarded families from the past 3 years will be established and undertaken to reinvigorate campaigns and offer support.
- Family case-studies will be written up once a month at a rate of one per month. These will be reviewed at the Medical Committee so should contain a broad mix of conditions and ages of children and young people.
- A PR spreadsheet should be maintained as families onboard to detail what support would be useful or welcomed.
- A grants spreadsheet will continue to be maintained and assistance given to families when applying for these.
- • A series of supplier visits/Zoom calls will be agreed quarterly between the CEO and the Head of Families & Marketing to agree discounts and reciprocal arrangements.
- All newly onboarded families will be seen personally or via Zoom/Facetime within 6 months of sign-up.
## _**Fundraising**_
## **Strategic Overview**
- To develop our major donor, individual donor and corporate donor database and build relationships to enable us to have sustained support and potentially bigger events with larger income.
- To develop our community fundraising through new relationships and networking to create a committed group of volunteers/friends/student work experience groups who will fundraise on our behalf and act as ambassadors for the charity. To create a network that crosses through all demographics.
- To develop Family Ambassadors via closed/finished family campaigns with a benefit to unrestricted income for Tree of Hope through fundraising and networking with their campaign supporters.
- To develop the legacy ask to appeal to this database and aim to engage 5% of this database in this form of giving by 2022/23.
- To develop our individual giving through lottery and monthly giving including payroll giving to 250 by 2022/23 and to create opportunities for Individual Fundraisers through challenge and targeted events
- To develop our events and campaigns to raise £50k annually from 2018/19 to £100k annually by 2022/23. To create events that are both face to face and virtual and be able to adapt to the current Covid19 restrictions and potential restrictions for the next 9-12months.
- To ensure we have a varied programme of events that consider supporters interests and motivations for attending.
- To ensure we have a TOH event (face to face or virtually) on a b- monthly basis, to ensure maximum income and to capture data at every event we run.
- To maintain a steady income from Trusts and Foundations of at least £70k per annum.
14
## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Outcomes to financial year end 2019/20:**
- We have ensured we have a robust Thanking process, that is personal and informative and creates and two-way relationship with the supporter.
- Our CRM system Civi was developed as a fundraising tool with finance and marketing.
- Researching, contacting and applying to new Trusts and Foundations saw us exceed the target in this area. We have attracted several new funders this year via the emergency grants schemes released during the pandemic, which we hope to keep onboard for future support.
## **Outcomes to financial year end 2020/21:**
- To maintain a steady income from all fundraising streams, continuing to build existing relationships and our future supporter database.
## **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.
15
## **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:
- Restricted Reserves are funds which have been restricted by the donor for a particular purpose or project, and may only be spent in accordance with those restrictions. This includes both donations and income arising on these funds.
## _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.
- Operating Reserves: held to protect the Charity’s work from unforeseen falls in income or urgent unexpected expenditure (including any potential wind down), allowing an orderly response to the financial implications that might arise from these events. This is the minimum level of reserves the Charity should always carry to protect itself against unknown future risk and maintain long-term financial sustainability.
To manage risk, the Charity’s policy is to hold funds sufficient to cover:
- a) Six months operating expenditure, defined as core expenditure to include salaries, IT support, bank charges, telephony costs and fundraising costs; and
- b) Any additional specific risks as be required by the Finance Committee or Trustees to reflect future financial uncertainties.
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.
16
## **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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charitable company will continue on that basis.
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**
17
**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).
- In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 30 September 2020 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- • have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006
## **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:
- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **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:
- the information given in the Trustees’ Report (which includes the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the Trustees’ Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the 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:
- adequate accounting records have not been kept by the charitable company; or
- the charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
## **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:
- Payment of interest on the intra-fund loan
- Allocation of investment gains and losses from the restricted investment portfolio. The investment gains and losses are not restricted to specific children can be utilised within the objects of the Charity. This transfer includes the creation of the additional designated reserve of £100,000 described above.
## **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.
33