## **TREE OF HOPE**
**REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
**Company Number: 08184807 Charity Number: 1149254 (England) Charity Number: SC042611 (Scotland)**
**TREE OF HOPE**
## **REPORT AND FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
|**CONTENTS**|**Page**|
|---|---|
|Reference and administrative details|3|
|Trustees’ report|4|
|Independent auditors’ report|18|
|Statement of financial activities|21|
|Balance sheet|22|
|Cash flow statement|23|
|Notes to the financial statements|24|
## **TREE OF HOPE**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
|**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 &**|61/63 Camden Road|
|**Campaign Office**|Tunbridge Wells|
||Kent|
||TN1 2QE|
|**Trustees**|Kevin Werry – Chairman|
||Alex Noble – Appointed as Deputy Chairman 16 October 2020|
||Pip Lightbody- Resigned as Deputy Chairman 16 October 2020, resigned from Board|
||(as ended term of office) 15 October 2021|
||Duncan Mason|
||Robert Lay|
||Tim Daplyn – Resigned 22 June 2021|
||Charlotte Eberlein|
||Sean Thompson – Appointed 1 February 2020|
||Laura Smith – Appointed 1 October 2021|
||Beth Dunmall – Appointed 1 October 2021|
|**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|
3
## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
The Trustees present their report and the audited financial statements for the year ended 30 September 2021, prepared in accordance with the Charities SORP (FRS102) and the Companies Act 2006.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Organisational structure**
Tree of Hope has eight 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. A 2% increase was, however, awarded to staff on 1[st] October 2021, in recognition of excellent work in an exceptional year. In addition, the charity pays for the staff to have membership of the Hospital Saturday Fund which is a family health plan. This commenced on 1[st] October 2021.
## **The Trustees**
The Board comprises of eight 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 Alex Noble Charlotte Eberlein
Sean Thompson was appointed as Trustee in February 2020 and Laura Smith and Beth Dunmall in October 2021.
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. Pip Lightbody retired as a Trustee as he had reached the end of his terms of office. The Trustees wish to thank Pip for his tireless contribution to the charity, particularly for his fundraising.
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 2021 was 8.
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## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## _**Decision-making**_
The Tree of Hope Board met 4 times during this financial year, an additional meeting was held in September 2021 and was an all-day Board awayday.
Three Sub-Committees continue to meet 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 continued 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 continued desire of the Trustees to reduce ongoing liabilities reserves remain below targeted levels and we will continue to focus upon continued reduction of our liabilities whilst ensuring we have some reserves in case of further unforeseen events.
## **Governance**
The Tree of Hope is a contributing 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. In particular, we have agreed a three year plan of action to develop our EDI focus and at an in-person awayday in September 2021 we reviewed Board effectiveness and our decision-making and control and agreed the appointment of two new Trustees to add to our gender and age diversity.
There were 6 fundraising complaints during this year all relating to clothing collections undertaken by our partners SOS Clothing. There are no open complaints and all have been dealt with to the satisfaction of the regulator. 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.
5
## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **Public benefit (continued)**
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.
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 2020/2021:
- The UK Stem Cell Foundation
- Action for ME
- Caudwell Children
- UK Young Autism Project
- PANS PANDAS
- Supporting Paws
- The Family Fund
- Research Autism
- Muscular Dystrophy UK
- My AFK
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.
_._
6
## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2020**
## **Objects of charity (continued)**
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 encourages 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 2021 saw total funds raised of £1,451,153 (2020: £1,633,692) **.**
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.
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. 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 July 2022. 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 increased from £66,705 in 2020 to £94,090 in 2021.
We finished the financial year with all commercial property rented out and no voids.
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.
Our tenant at our Camden Road property in Tunbridge Wells gave notice to quit at the end of his lease in December 2021. The property was considered difficult to let at the current rental yield due to a stagnant rental market and difficult to sell in a stagnant commercial property market. The decision was made to terminate the rental of the Tree of Hope office in Tonbridge and move into Camden Road in December 2021 for financial expediency.
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 sixth 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.
7
## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
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.
We have helped over 700 families in this financial 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.
- 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 2021**
## _**Helping Families to Fundraise for Treatments (continued)**_
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
- 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 7 grants awarded to Tree of Hope family campaigns which amounted to £8,310.
In 2020/2021 our charity has been able to change lives with the following expenditure:
£263,690 bought over 200 pieces of specialist equipment, including orthotics, assistive technology for communication, car adaptations to make vehicles wheelchair accessible, specialist wheelchairs, hot tubs to provide hydrotherapy at home during lockdown, Innowalks, specialist play and sensory equipment.
£533,902 on specialist therapies and support including physiotherapy and rehabilitation, speech and language therapy, occupational therapy, hydrotherapy, assistance dogs, music therapy and therapies associated with autism.
£72,020 on operations.
£44,924 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
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## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## _**Helping Families to Fundraise for Treatments (continued)**_
£112,776 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.
Having access to specialist equipment can often be life-changing for children with a disability or mobility difficulties, but with such high price tags, the NHS cannot always fund such transformational equipment, so this is where Tree of Hope is vital. We assist families in their fundraising missions for all sorts of equipment which can help children thrive and reach their full potential and Amelie is a great example of this.
Amélie is 6-years old and has Syndrome Without A Name (also known as SWAN). Since birth, Amélie has been unable to talk, walk or feed herself, but despite this, she is just like her peers as she loves playing with other children, watching Coco Melon, and she also loves taking part in PE with Joe Wicks. While Amélie does not have an official diagnosis, the doctors “described her condition as similar to Cerebral Palsy, affecting all limbs. She can’t stand unaided, she has spasticity in her ankles and has lower tone in her trunk” but as she has got older, she has “got a lot stronger and can sit up, whereas when she was a baby she was very floppy” according to her Mum Ros.
As well as affecting her mobility, Amélie is partially sighted and as she is unable to speak, communication is a challenge, though over the years, she has developed her own body language and shakes her head to communicate. Ros said that she “understands a lot and reacts to certain words, so she can say when she’s hungry or when she has other needs, by vocalising different noises”. Determined Amélie however doesn’t get frustrated by her physical abilities and will just always keep practising and trying. Ros told us that “she’s become more adventurous and has even climbed up onto the sofa – much to our horror”. She loves playing with her little brother Freddy, and has since become even more mobile by trying to get involved with him.
While Amélie doesn’t have an official diagnosis, she does benefit from regular treatment, as well as getting a lot of help and support from her school. However, Ros explained there are always hurdles to jump to provide Amélie with the functional support that she needs, like sourcing equipment. Amélie had a pacer walker which helps her “take a few steps which is more functional support, but she’s since grown out of it”.
This is where the family’s fundraising story began, as ever since Amélie was loaned an Innowalk from Made for Movement for a six-week trial period, her family noticed that the benefits were almost instantly recognisable, and from that point onwards, they knew that this was a potentially life changing piece of equipment. On just her first try of using the Innowalk, Amélie completed 400 metres in 20 minutes and has since beaten her own personal best by completing 8km in just under two hours. Her physiotherapists noticed a huge increase in Amélie’s ability to walk assisted and believed that she had taken huge leaps in her mission to become more independent, which is what motivated parents Ros and Vinny to begin fundraising to purchase their very own Innowalk.
There are so many benefits that the Innowalk can offer Amélie, most importantly, giving her the best chance of independence. Ros explained that “it’s a great way of getting her in that walking and running position and it gives her the sensation of moving which she loves. It enables her to exercise and she can go much longer distances which is great for her hips, and reduces the risk of hip surgery”. Practising the walking motion will help with Amélie’s foot position, which offers the possibility of “delaying or removing the need for surgery” on her feet, but most importantly, Ros explains is that “it is something that she enjoys” and “can lead her on the path to independence”.
For Amélie, the Innowalk could be truly life changing, however, this sort of specialist equipment comes at a high price tag of £28,000 which the NHS cannot fund, but this is a barrier that her parents are determined to overcome, because “although its expensive, it will last for her entire life”.
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## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## _**Helping Families to Fundraise for Treatments (continued)**_
Having spoken to Made for Movement, Amélie’s family were signposted to Tree of Hope and Ros explained that “as soon as I saw the Tree of Hope website, it looked like the perfect choice for us. We thought that it was better fundraising through an established charity as it gives people assurances that the funds will be managed and used properly, and of course by the fact that by going with Tree of Hope, we can claim gift aid” which offers an extra 25% on donations made by UK taxpayers.
Since fundraising with Tree of Hope, Ros has found that “the level of support is there. I didn’t know what the rules were or how to get publicity, but if you have a charity supporting you, it takes away the worry”.
Ros told us that “the thing that’s worked well for us is inviting people to help. I started messaging friends and would target people all around the country to spread the network and raise awareness. We even had friends who we haven’t spoken to in 10 years who approached us wanting to help” after seeing their campaign on social media.
Ros also encouraged her friends and their children to participate in the Great North Run and the Mini North Run as she knew that raising awareness within the school network would be incredibly beneficial in reaching wider audiences. Vinny also created “a signature for his work email which takes people to our donation page. He put it on LinkedIn as Vinny has a lot of contacts, clients and colleagues” which has seen great success.
Amélie’s family have found that “people who know us have wanted to help” which has then meant that awareness of their campaign has reached far and wide.
Trust and Foundation applications continued and in this financial year we received support from:
- National Lottery Community Fund (covid support from the government) £50,000
- The Julia and Hans Rausing Charity Survival Fund £99,460
- The Grace Trust £1,250
- Professional Footballer’s Association £250
- The Trysil Trust £10,000
- The Edward Gostling Foundation £5,000
- C M Keyser Charitable Trust £200
- The Whitehead Monckton Charitable Foundation £1,000
- The Henhurst Charitable Trust £1,000
- The Lawson Trust £5,000
- Economic Regeneration Fund (additional restrictions grant scheme for fixed costs) £9,000
- Sir Donald and Lady Edna Wilson Charitable Trust £1,000
- Barnard Keith Hufton Trust £1,000
- Tonbridge and Malling Council discretionary covid grant £3,000
- Kent Community Foundation £4,718
- Colyer-Fergusson Charitable Trust £10,000
- Ian Askew Charitable Trust £1,000
- Tory Family Foundation £250
- Ecclesiastical £1,000
- The Rainford Trust £5,000
- Charles Jacob Charitable Trust £1,000
- Richard Burns (Thousandth Man) Charitable Trust £500
- Basil Samuel Charitable Trust £10,000
- The Broyst Foundation £1,000
We thank each and every Trust and Foundation for their generous support and belief in what we do and the difference we make.
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## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## _**Helping Families to Fundraise for Treatments (continued)**_
We thank each and every Trust and Foundation for their generous support and belief in what we do and the difference we make.
Our Fundraising and Marketing activity is overseen by our Fundraising and Marketing Sub-Committee which meets 4 times a year.
This financial year also saw us establish a policy on Equality, Diversity & Inclusion. Tree of Hope aims to encourage, value and manage diversity and recognises that talent and potential are distributed across the population. Not only are there moral and social reasons for promoting equality of opportunity, it is in the best interests of Tree of Hope to recruit and develop the best people for their jobs from as wide and diverse a pool of talent as possible. It is also at the heart of Tree of Hope’s charitable objective to promote and deliver equality of access to our services for disabled and other vulnerable children and young people within the community.
Staff have been trained on equality and gender diversity and the Board will receive training in this area too in the next financial year and we have an achievable three year plan to improve and develop in this area and the Fundraising & Marketing Committee will be responsible for in-depth scrutiny in this area moving forwards, reporting to the Board.
## **Our Strategic Plans**
## **Broad Strategic Overview**
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.
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**_
## **Outcomes to financial year end 2020/21:**
- Appointed 3 additional Trustees following the resignation and retirement of 2 current Trustees. Sean Thompson has been fully inducted. Alex Noble replaced Pip Lightbody as Deputy Chair.
- Ensured our report and accounts adhere to the Charity Commission’s Governance Code and all new SORP and COVID-19 requirements for reporting.
- Implemented the revised Fundraising Regulator Code of Fundraising Practice to meet Covid best practice.
- Updated staff and Trustee’s safeguarding training.
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## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## _**Governance, Policy and Leadership (continued)**_
## **Outcomes to financial year end 2021/22:**
- Fully induct new Trustees.
- Ensure the report and accounts adhere to the Charity Commission’s Governance Code and all new SORP and COVID19 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**_
## **Outcomes to financial year end 2020/21:**
- The team achieved fundraising of just under £1m which was an excellent result given the constraints on family fundraising due to the pandemic restrictions that were in place for a large part of this year. Public confidence in attending face to face events continues to affect fundraising.
- We recruited a new Family and Marketing Officer.
- We were unable to attend any conferences personally and interacted with online events where appropriate.
- We established a regular pattern of contacting onboarded families from the past 3 years to reinvigorate campaigns and offer support.
- Family case-studies are written up and reviewed at the Medical Committee and contain a broad mix of conditions and ages of children and young people.
- PR support is given to all families who would welcome it.
- Grants are researched for families and applied for where appropriate adding real extra value to campaigns.
- All newly onboarded families are contacted regularly to offer support and guidance.
## **Outcomes to financial year end 2021/22:**
These outcomes should be read in conjunction with the marketing strategy 2021/22 below.
- Continue a regular pattern of contacting existing families from the past 3 years to reinvigorate campaigns and offer support.
- Continue to write up family case-studies and review at the Medical Committee and ensure these contain a broad mix of conditions and ages of children and young people.
- Ensure PR support is given to all families who would welcome it.
- Continue to ensure grants are researched for families and applied for where appropriate adding real extra value to campaigns.
- Ensure that all newly onboarded families are contacted regularly to offer support and guidance.
## _**Marketing**_
## **Outcomes to financial year end 2020/21:**
- Continued to monitor how the use of Facebook marketing impacts family sign ups and review monthly with MCM and alter tactics accordingly.
- Undertake a customer journey analysis - item also under Family Support- this is ongoing into 2021/22 as being undertaken by a volunteer.
- Carry out surveys with a selection of current families as well as families who enquired during the lockdown to understand the motivations of the target audience- this is part of the work above.
- Continued with planned, monthly social media activity, reviewing effectiveness quarterly, alongside any social media campaigns and effectiveness of any boosts and monitored target for shares, likes and retweets on a monthly basis and altered activity and copy accordingly to maximise our reach.
- Established marketing materials to support all fundraising activity.
13
## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## _**Marketing (continued)**_
## **Outcomes to financial year end 2021/22:**
- Develop infographics, case studies and testimonials for use in all social media and marketing and fundraising materials.
- Continue with planned, monthly social media activity, reviewing effectiveness quarterly, alongside any social media campaigns and effectiveness of any boosts and monitor target for shares, likes and retweets on a monthly basis and alter activity and copy accordingly to maximise our reach.
- Use email marketing to keep families up to date.
- Continue to support families through the use of PR to maximise publicity for their campaign.
## _**Fundraising**_
## **Outcomes to financial year end 2020/21:**
- To maintain a steady income from all fundraising streams was our stated aim and despite a difficult year due to extreme constraints brought about by the Covid pandemic the charity exceeded its targets in fundraising. Trusts and Foundations was a strong performer. In addition, we had significant individual support from Jim Lewcock who sold his car for £15k and donated this sum to us.
- Corporate support continued which was fantastic given the constraints and we received support from Handelbanken, Royal Victoria Place, Tunbridge Wells, Marks & Spencer Tunbridge Wells
- This was achieved through continuing to build on existing relationships and developing our future supporter database in a consistent way and adhering to GDPR requirements.
- Our Trusts & Foundations supporters have already been documented and we thank them all once again for their amazing support.
## **Outcomes to financial year end 2021/22:**
- 2022 is Tree of Hope’s 30th anniversary year and we will be running a series of events that remain flexible in delivery due to the ongoing Covid uncertainty.
- Challenge events will continue and will be either done individually or via mass participation depending on ongoing Covid restrictions.
- Individual donors will continue to be recruited, thanked and stewarded on an ongoing basis, meeting all GDPR requirements.
- We continue to work with schools, local community groups and networking groups to develop supporters and advocates for our work.
- Our work with volunteers continues and we look to give them meaningful projects to work on and complete that show impact. We particularly work with young people to give them experience on a voluntary basis of working in the charity sector.
- We continue to work with all our corporate supporters and look to develop more ongoing relationships throughout our anniversary year.
- Continue to develop our relationships with Trusts and Foundations to grow our reach in 2022.
14
## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## _**Fundraising**_
## **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.
## **Financial review**
In the period to 30 September 2021 the charity had total income of £1,451,153 (2020: £1,663,692). This comprised £1,292,610 (2020: £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. Further information is provided in Notes 3 and 4 to the accounts.
Total expenditure was £1,539,839 (2020: £1,556,944) with £1,391,675 (2020: £1,459,488) being on charitable activities.
Overall, the charity made a surplus of £455,211 (2020: £261,013) after unrealised gains. In particular, the charity made gains of £185,000 (2020: £Nil) on the commercial property investments and £358,907 (2020: £154,265) on market investments. At 30 September 2021 the charity had total funds of £4,169,328 (2020: £3,719,506) of which £1,737,868 were unrestricted (2020: £934,384) and £2,431,460 restricted (2020: £2,785,122). The unrestricted funds comprise designated funds of £1,736,088 (2020: £1,764,914), general funds of £95,000 (2020: £59,507) and the Strategic Investment Fund of £ (93,220) (2020: £(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 no later than 30 September 2032. This loan is shown within the accounts as the Strategic Investment Fund.
15
## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **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) £170k-£180k + b) £100k = £270k-£280k.
## **Investment policy**
This was reviewed in June 2021.
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.
-
- Tree of Hope seeks to produce the best financial return within an acceptable level of risk.
- The investment objective for the long term reserves is to generate a return in excess of inflation (CPI). Capital preservation is paramount. Currently units are held as accumulation units within CCLA so income generated is reinvested into the fund to raise the value of the investment.
- The investment objective for the short term reserves is to preserve the capital value with a minimum level of risk. Assets should be readily available to meet unanticipated cash flow requirements.
- Should any property be sold consideration should be given to investing in distribution units so that rental yield can be replaced by interest or dividend income from the fund’s investments.
16
## **TREE OF HOPE**
## **TRUSTEES’ REPORT**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **Investment policy (continued)**
## **Attitude to investment risk**
- Tree of Hope is reliant on fund raising and donations for its activities.
- The key risk to the long-term reserves is inflation, and the assets should be invested to mitigate this risk over the long term. The trustees understand that this is likely to mean that investment will be concentrated in one or more actively managed multi asset common investment funds and that the capital value will fluctuate to a small degree.
- The short-term reserves are held to provide financial security and may be required at short notice. As such capital volatility cannot be tolerated and investment of these assets should be focused on minimising this.
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 financial year on several occasions 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 28 January 2022 and signed on their behalf by
## **Kevin Werry – Chair**
17
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF TREE OF HOPE**
We have audited the financial statements of Tree of Hope for the year-ended 30 September 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statements 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).
## **Opinion**
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 2021 and of its 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **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’ Annual 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 directors’ report included within the Trustees’ Annual Report has been prepared in accordance with applicable legal requirements.
18
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF TREE OF HOPE**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent 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 prepared for the purpose of company law).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charity Accounts (Scotland) Regulations (as amended) require us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our auditor; or
- the trustees were not entitled to take advantage of the small companies exemption form from the requirement to prepare a strategic report.
## **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 group’s and the parent 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 group or the parent 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to registered charities, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011, and other factors such as income tax and sales tax.
19
## **INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF TREE OF HOPE**
## **Auditor’s responsibilities for the audit of the financial statements (continued)**
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to areas of improper revenue recognition and to manual accounting journals. Audit procedures performed by the engagement team included:
- Substantive testing to verify the inclusion of income in the correct accounting period and to test the recognition of year-end debtors in income;
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing manual journals, in particularly any unusual items; and
- Challenging assumptions and judgements made by management in their critical accounting estimates.
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.
## **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) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditors London EC4R 1AG
Date _:_ 9 February 2022
20
## **TREE OF HOPE**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
||||**General**||||
|---|---|---|---|---|---|---|
||||**and**|**Strategic**||**Total**|
|||**Restricted**|**Designated**|**Reinvestment**|**Total**|**2020**|
|||**Funds**|**Funds**|**Fund**|**2021**|**Restated**|
||**Notes**|**£**|**£**|**£**|**£**|**£**|
|**INCOME FROM:**|||||||
|Donations & grants|3a|151,508|1,141,102|-|1,292,610|1,528,808|
|Other trading activities|3b|-|42,335|-|42,335|57,378|
|Fundraising activities|3c|-|22,118|-|22,118|10,801|
|Investments|4|94,090|-|-|94,090|66,705|
|||---------------------|---------------------|---------------------|-------------------|-------------------|
|**TOTAL INCOME**||245,598|1,205,555|-|1,451,153|1,663,692|
|||--------------------|--------------------|--------------------|-------------------|-------------------|
|**EXPENDITURE ON:**|||||||
|Costs of raising funds|5a|94,090|54,074|-|148,164|97,456|
|Charitable activities|5a|472,261|919,414|-|1,391,675|1,459,488|
|||---------------------|---------------------|---------------------|-------------------|-------------------|
|**TOTAL EXPENDITURE**||566,351|973,488|-|1,539,839|1,556,944|
|||---------------------|---------------------|---------------------|-------------------|-------------------|
|**Net (expenditure)/income before**|||||||
|**investment gains/(losses)**||(320,753)|232,067|-|(88,686)|106,748|
|Net gains on investment properties|11|185,000|-|-|185,000|-|
|Net gains on investments|12|358,907|-|-|358,907|154,265|
|||---------------------|---------------------|---------------------|-------------------|-------------------|
|**Net income**||223,154|232,067|-|455,221|261,013|
|**Transfers**|16|(576,816)|(220,001)|796,817|-|-|
|||---------------------|---------------------|---------------------|-------------------|---------------------|
|**NET MOVEMENT IN FUNDS**|16|(353,662)|12,066|796,817|455,221|261,013|
|Funds at brought forward|||||||
|_As previously reported_||2,785,122|1,587,417|(890,037)|3,482,502|3,221,489|
|_Prior period adjustment (note 20)_||-|231,605|-|231,605|231,605|
|||---------------------|---------------------|---------------------|-------------------|-------------------|
|_As restated_||2,785,122|1,819,022|(890,037)|3,714,107|3,453,094|
|||---------------------|---------------------|---------------------|-------------------|-------------------|
|**Funds carried forward**|16|2,431,460|1,831,088|(93,220)|4,169,328|3,714,107|
|||==========|==========|==========|=========|=========|
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 24 to 34 form part of these accounts.
21
**Company No. 08184807**
## **TREE OF HOPE**
## **BALANCE SHEET**
## **AT 30 SEPTEMBER 2021**
|||**30 September**|**30 September**|
|---|---|---|---|
|||**2021**|**2020**|
||||**Restated**|
||**Notes**|**£**|**£**|
|**FIXED ASSETS**||||
|Tangible assets|10|-|2,080|
|Investment properties|11|1,395,000|1,210,000|
|Investments|12|2,608,997|2,250,090|
|||-------------------|-------------------|
|||4,003,997|3,462,170|
|**CURRENT ASSETS**||||
|Debtors|13|61,529|93,780|
|Cash at bank and in hand||235,064|266,278|
|||-------------------|-------------------|
|||296,593|360,058|
|**CREDITORS**:**amounts falling due within one year**|14|(131,262)|(108,121)|
|||-------------------|-------------------|
|**NET CURRENT ASSETS**||165,331|251,937|
|||-------------------|-------------------|
|||---------------------|---------------------|
|**NET ASSETS**||4,169,328|3,714,107|
|||**==========**|**==========**|
|**FUNDS**||||
|Unrestricted funds – General Funds|16|95,000|59,507|
|Unrestricted funds – Designated Funds|16|1,736,088|1,759,515|
|||-------------------|-------------------|
|||1,831,088|1,819,022|
|Unrestricted funds – Strategic Reinvestment Fund|16|(93,220)|(890,037)|
|Restricted funds|16|2,431,460|2,785,122|
|||-------------------|-------------------|
|**TOTAL FUNDS**||4,169,328|3,714,107|
|||**==========**|**==========**|
The financial statements were approved and authorised for issue by the Trustees on 28 January 2022 and were signed on their behalf by:
## **Kevin Werry - Chair Director**
The notes on pages 24 to 34 form part of these accounts.
22
## **TREE OF HOPE**
## **CASH FLOW STATEMENT**
## **AT 30 SEPTEMBER 2021**
||**Note**|**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
|**Net cash (used in)/provided by operating activities**|17|(125,304)|
28,536|
|**Cash flows from investing activities**||||
|Investment income||94,090|66,705|
|Purchase of tangible fixed assets||-|(10)|
|Sale of investments||-|154,998|
|||----------------------|----------------------|
|**Cash provided by investing activities**||94,090|221,693|
|**(Decrease)/increase in cash and cash equivalents in the year**||(31,214)|
250,229|
|Cash and cash equivalents at the beginning of the year||266,278|
16,049|
|||----------------------|----------------------|
|**TOTAL CASH AND CASH EQUIVALENTS AT THE END**||||
|**OF THE YEAR**||**235,064**|**266,278**|
|||===========|===========|
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.
23
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **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 2021, the charity made a surplus before transfers of £232,067 on its unrestricted funds, and had a year-end cash balance of £235,064. An investment of £93,220 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 no longer than 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 valuation of the charity’s investment properties were revalued in the year on the basis of external professional advice.
## **b) Subsidiary undertaking**
- Tree of Hope had one subsidiary undertaking, Tree of Hope Trading Limited which was dissolved in the year.
## **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.
24
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **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|5 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.
25
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **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**|**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
||This is stated after charging/crediting:|||
||Depreciation|1,241|810|
||Auditors’ remuneration (inclusive of VAT):|||
||Audit|12,975|13,800|
||Other services|4,370|5,726|
|||=======|=======|
||Trustees’ remuneration and reimbursed|||
||expenses|-|-|
|||=======|=======|
26
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
|**3.**|**INCOME**||**2021**|**2020**|
|---|---|---|---|---|
||||**£**|**£**|
|**(a)**|**Donations and grants**||||
||Campaign donations||923,620|1,288,896|
||Contribution from campaigns to Tree of Hope||72,791|88,523|
||Donations directly received by Tree of Hope||287,987|126,072|
||Coronavirus Job Retention Scheme||2,969|25,317|
||Kickstart Scheme||5,243|-|
||||-------------------|-------------------|
||||1,292,610|1,528,808|
||||=========|=========|
|**(b)**|**Other trading activities**||||
||Profit share from sale of goods and services||42,335|57,378|
||||=========|=========|
|**(c)**|**Income from fundraising activities**||||
||Other income||22,118|10,801|
||||=========|=========|
||All income was derived in the UK.||||
|**4.**|**INVESTMENT INCOME**||**2021**|**2020**|
||||**£**|**£**|
||Bank interest||375|495|
||Rental income from investment properties||93,715|66,210|
||||-----------------|-----------------|
||||94,090|66,705|
||||========|========|
|**5a**|**EXPENDITURE**|**Direct & Directly**|**Support**|**Total**|
|||**Allocated Costs**|**Costs (note 6)**|**2021**|
|||**£**|**£**|**£**|
||Costs of raising funds|140,608|7,556|148,164|
||Charitable activities|1,266,114|125,561|1,391,675|
|||-------------------|-----------------|-------------------|
|||1,406,722|133,117|1,539,839|
|||=========|========|=========|
|**5b**|**EXPENDITURE - 2020**|**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|
|||==========|========|=========|
27
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **6a SUPPORT COSTS**
|**SUPPORT COSTS**||||
|---|---|---|---|
||**Costs of**|**Charitable**|**Total**|
||**raising funds**|**Activities**|**2021**|
||**£**|**£**|**£**|
|Finance and administration|4,080|36,704|40,784|
|Premises and equipment|3,184|28,671|31,855|
|Training and courses|168|1,512|1,680|
|Depreciation|124|1,117|1,241|
|Governance costs|-|57,557|57,557|
||--------------|---------------|--------------|
||7,556|125,561|133,117|
||=======|=======|=======|
|**SUPPORT COSTS – 2020**||||
||**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|
||=======|=======|=======|
## **6b SUPPORT COSTS – 2020**
## **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:
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Children’s medical costs|1,034,426|1,119,410|
|Wages and salaries|216,004|221,599|
|Marketing costs|15,684|6,365|
||---------------------|---------------------|
|Direct costs of charitable activities|1,266,114|1,347,374|
|Support costs (excluding governance costs)|68,004|58,950|
|Governance costs|57,557|53,164|
||---------------------|---------------------|
||1,391,675|1,459,488|
||==========|==========|
28
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
|**8.**|**STAFF COSTS AND NUMBERS**|**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
||Staff costs were as follows:|||
||Salaries and wages|282,762|255,166|
||Social security costs|27,922|25,045|
||Pension costs|5,133|4,702|
||Redundancy and termination payments|1,074|-|
|||-----------------|-----------------|
|||316,891|284,913|
|||========|========|
One employee earned in the band £60,000 - £70,000 in the year (2020: one).
The total remuneration of key management personnel in the year ended 30 September 2021 was £75,257 (2020: £75,027).
|The average weekly number of employees|**2021**|**2020**|
|---|---|---|
|during the year was as follows:|**Number**|**Number**|
|Raising voluntary income|3|3|
|Charitable activities|4|4|
|Governance|1|1|
||------------|------------|
||8|8|
||======|======|
## **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 2020|34,525|7,587|42,112|
||Disposal/adjustments|(251)|(174)|(425)|
|||---------------------|---------------------|---------------------|
||At 30 September 2021|34,274|7,413|41,687|
|||---------------------|---------------------|---------------------|
||**Depreciation**||||
||At 1 October 2020|32,599|7,433|40,042|
||Charge for the year|1,048|193|1,241|
||Disposals/adjustments|627|(213)|414|
|||---------------------|---------------------|---------------------|
||At 30 September 2021|34,274|7,413|41,687|
|||---------------------|---------------------|---------------------|
||**Net Book Value**||||
||At 30 September 2021|-|-|-|
|||==========|==========|==========|
||At 30 September 2020|1,926|154|2,080|
|||==========|==========|==========|
All tangible fixed assets are used to fulfil the charity’s objects.
.
29
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
|**11.**|**INVESTMENT PROPERTIES**|**Total**|
|---|---|---|
|||**Funds**|
|||**£**|
||Market value at 1 October 2020 and 30 September 2021|1,210,000|
||Gains on revaluation in the year|185,000|
|||---------------------|
||Market value at 30 September 2021|1,395,000|
|||==========|
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 and has subsequently been revalued. At the start of the year the property was valued at £270,000 and has been revalued in the year to £250,000 by Mr D Barber MRIC of Bracketts, Chartered Surveyors.
The remainder of investment properties relate to the Long Barn, Crowborough and Old Saw Mill, Crowborough together with adjacent land. These were previously held at value of £940,000 and have been revalued in the year to £1,145,000 by Oldfield Smith, Chartered Surveyors.
## **12. INVESTMENTS**
|**INVESTMENTS**||
|---|---|
||**2021**|
||**£**|
|Market value at 1 October 2020|2,250,090|
|Gains on revaluation in the year|358,907|
||---------------------|
|Market value at 30 September 2021|2,608,997|
||==========|
The investments comprise of listed CCLA COIF Charities Investment Fund Accumulation Units.
## **13. DEBTORS**
## **14.**
|**DEBTORS**|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Trade debtors|25,978|18,098|
|Other debtors|15,651|10,761|
|Prepayments|19,900|28,762|
|Accrued income|-|15,276|
|VAT|-|5,720|
|Amount due subsidiary company|-|15,163|
||----------------|----------------|
||61,529|93,780|
||========|========|
|**CREDITORS: amounts falling due within one year**|||
||**2021**|**2020**|
||**£**|**£**|
|Trade creditors|7,643|11,788|
|Accruals and deferred income|28,703|17,055|
|Other creditors|94,916|79,278|
||----------------|----------------|
||131,262|108,121|
||========|=======|
30
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
**15. NET ASSETS BY FUND**
|||||**Strategic**||
|---|---|---|---|---|---|
||**Restricted**|**General**|**Designated**|**Reinvestment**|**Total**|
||**Funds**|**Fund**|**Funds**|**Fund**|**2021**|
||**£**|**£**|**£**|**£**|**£**|
|Property|1,395,000|-|-|-|1,395,000|
|Other investments|887,029|89,339|1,632,629|-|2,608,997|
|Current assets|100,838|10,156|185,599|-|296,593|
|Current liabilities|(44,627)|(4,495)|(82,140)|-|(131,262)|
|Inter-fund loan|93,220|-||(93,220)|-|
||-------------------|-------------------|------------------|-------------------|-------------------|
|**NET ASSETS**|2,431,460|95,000|1,736,088|(93,220)|4,169,328|
||**==========**|**==========**|**=========**|**==========**|**==========**|
**NET ASSETS BY FUND – 2020**
|**ET ASSETS BY FUND –**|**2020**|||||
|---|---|---|---|---|---|
|||||**Strategic**||
||**Restricted**|**General**|**Designated**|**Reinvestment**|**Total**|
||**Funds**|**Fund**|**Funds**|**Fund**|**2020**|
||**£**|**£**|**£**|**£**|**£**|
|Fixed assets|-|2,080|-|-|2,080|
|Property|1,210,000|-|-|-|1,210,000|
|Investment|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)|
|Prior period adjustment|-|-|231,605|-|231,605|
|(note 19)||||||
|Inter-fund loan|890,037|-|-|(890,037)|-|
||-------------------|-------------------|------------------|-------------------|------------------|
|**NET ASSETS**|2,785,122|59,507|1,759,515|(890,037)|3,714,107|
||**==========**|**==========**|**=========**|**==========**|**==========**|
31
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **16. MOVEMENT IN FUNDS**
|||||**Net gains and**||**At**|
|---|---|---|---|---|---|---|
||**At 1 Oct**|||**losses on**||**30 Sept**|
||**2020**|**Income**|**Expenditure**|**investments**|**Transfers**|**2021**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Unrestricted funds**|||||||
|General funds|59,507|448,762|(404,149)|-|(9,120)|95,000|
|Strategic|||||||
|Reinvestment Fund|(890,037)|-|-|-|796,817|(93,220)|
|**Designated funds**|||||||
|Children’s funds|1,427,910|756,793|(569,339)|-|20,724|1,636,088|
|Risk reserve|100,000|-|-|-|-|100,000|
|Other (note 20)|231,605|-|-|-|(231,605)|-|
|**Restricted funds**|||||||
|Children’s funds|2,785,122|245,598|(566,351)|543,907|(576,816)|2,431,460|
||-------------------|------------------|---------------------|------------------|---------------------|-------------------|
|**Total funds**|3,714,107|1,451,153|(1,539,839)|543,907|-|4,168,328|
||=========|=========|==========|=========|==========|=========|
## **MOVEMENT IN FUNDS - 2020**
|||||**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|
|Other (note 20)|231,605|||||231,605|
|**Restricted funds**|||||||
|Children’s funds|3,019,839|398,815|(720,307)|154,265|(67,490)|2,785,122|
||-------------------|------------------|---------------------|------------------|---------------------|-------------------|
|**Total funds**|3,453,094|1,663,692|(1,556,944)|154,265|-|3,714,107|
||=========|=========|==========|=========|==========|=========|
## **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.
32
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **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.
## **17. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|**Net income/(expenditure) for the year**|455,221|261,013|
|Add back depreciation charge|2,079|810|
|Deduct investment income shown in investing activities|(94,090)|(66,705)|
|Gain on investments|(543,907)|(154,265)|
|(Increase)/decrease in debtors|32,251|(1,748)|
|(Decrease)/increase in creditors|23,142|(10,569)|
||----------------|----------------|
||(125,304)|28,536|
||========|========|
## **18. RELATED PARTIES**
Donations of £nil were received from Trustees’ in the period (2020: £nil). There were no other related party transactions that require disclosure in either the current or the preceding year.
33
## **TREE OF HOPE**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **19. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES**
||||**General**|||
|---|---|---|---|---|---|
||||**and**|**Strategic**||
|||**Restricted**|**Designated**|**Reinvestment**|**Total**|
|||**Funds**|**Funds**|**Fund**|**2020**|
||**Notes**|**£**|**£**|**£**|**£**|
|**INCOME FROM:**||||||
|Donations & grants|3a|332,110|1,196,698|-|1,528,808|
|Other trading activities|3b|-|57,378|-|57,378|
|Charitable activities|3c|-|10,801|-|10,801|
|Investments|4|66,705|-|-|66,705|
|||---------------------|---------------------|---------------------|-------------------|
|**TOTAL INCOME**||398,815|1,264,877|-|1,663,692|
|||--------------------|--------------------|--------------------|-------------------|
|**EXPENDITURE ON:**||||||
|Costs of raising funds|5a|66,705|30,751|-|97,456|
|Charitable activities|5a|653,602|805,886|-|1,459,488|
|||---------------------|---------------------|---------------------|-------------------|
|**TOTAL EXPENDITURE**||720,307|836,637|-|1,556,944|
|||---------------------|---------------------|---------------------|-------------------|
|**Net (expenditure)/income before**||||||
|**investment gains/(losses)**||(321,492)|428,240|-|106,748|
|Net gains/(losses) on investments|11,12|154,265|-|-|154,265|
|||---------------------|---------------------|---------------------|-------------------|
|**Net (expenditure) / income**||(167,227)|428,240|-|261,013|
|**Transfers**|16|(67,490)|(43,510)|111,000|-|
|||---------------------|---------------------|---------------------|-------------------|
|**NET MOVEMENT IN FUNDS**|16|(234,717)|384,730|111,000|261,013|
|Funds at 1 October||||||
|_As previously stated_||3,019,839|1,202,687|(1,001,037)|3,221,489|
|_Prior period adjustment (note 20)_||-|231,605|-|231,605|
|||---------------------|---------------------|---------------------|-------------------|
|As restated||3,019,839|1,434,292|(1,001,037)|3,453,094|
|||---------------------|---------------------|---------------------|-------------------|
|**Funds at 30 September**|16|2,785,122|1,819,022|(890,037)|3,714,107|
|||==========|==========|==========|=========|
## **20. PRIOR PERIOD ADJUSTMENT**
Further to a review in the year of historic campaign creditors, which are shown within Other Creditors in note 14, it was identified that an amount totalling £231,605 should have been released in earlier years. Accordingly, an adjustment has been made to the previously stated creditors which has had the effect of reducing creditors and total funds at 30 September 2020 and 30 September 2019 by £231,605. The additional funds have been treated as designated as shown in note 16.
34