Charity number: 1153296
ACHING ARMS
Trustees’ Report and Unaudited Financial Statements
For The Year Ended 31 July 2022
Mansell & Co Chartered Certified Accountants 5 Ducketts Wharf South Street Bishops’ Stortford Hertfordshire CM23 3AR
ACHING ARMS
Contents
| Page | |
|---|---|
| Reference and Administration Information | 1 |
| Trustees’ Annual Report | 2-4 |
| Independent Examiners Report | 5 |
| Statement of Financial Activities | 6-7 |
| Balance Sheet | 8 |
| Notes to the Unaudited Financial Statements | 9-15 |
ACHING ARMS
Reference and Administration Information
Trustees
Sundeep Kaur - Chair Sarah Atkinson – Treasurer Claire Osborn-Woollard Anna Clancy Melissa Barclay Donna Dunn (appointed 26.03.22)
Charity registration number 1153296
Business address
33 Victoria Road Brentwood Essex CM14 5DR
Bank
HSBC UK Bank Plc Brentwood Branch 91 High Street Brentwood CM14 4RU
Independent examiner
Wilton Lyndon Ltd T/A Mansell & Co. Chartered Certified Accountants 5 Ducketts Wharf South Street Bishop’s Stortford Herts CM23 3AR
Page 1
ACHING ARMS
Trustees’ Annual Report for the Year Ended 31 July 2022
The Trustees present their annual report together with the financial statements of the charity for the year 1 August 2021 to 31 July 2022 and confirm they comply with the requirements of the Charities Act 2011, the trust deed and the Charities SORP.
The Trustees who served during the year were:
Sundeep Kaur - Chair Sarah Atkinson – Treasurer Claire Osborn-Woollard Anna Clancy Melissa Barclay Lindsay Oliver (resigned 04.07.22) Donna Dunn (appointed 26.03.22)
Objectives and Activities
a. Policies and objectives
To promote and protect the health (including, but not limited to, the mental health and well-being) of parents, their families and friends when a baby dies in utero, at birth or soon after birth (“baby loss”).
To advance education about the experience of baby loss particularly, but not exclusively, amongst healthcare professionals.
To support and promote research into baby loss and the methods of alleviating suffering arising from baby loss and to disseminate the results of such research.
b. Principle activities
Aching Arms provides comfort teddy bears to parents whose baby has died during pregnancy, birth or infancy. They donate bears to parents via maternity health professionals and befriending groups in the UK. The bears are used to discuss support available to parents. The charity also leads awareness training for health professionals and hosts a telephone befriending service for bereaved parents.
c. Public benefit
The Trustees have developed their strategic plans to ensure that the charity plans provides public benefit and achieves its objectives as set out in the Foundation Constitution. The Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance ‘Public benefit: reporting (PB3).
Achievements and performance
Aching Arms has not only survived but thrived through the years post pandemic. We have steadily increased the number of hospitals who include our comfort bears in their bereavement pathway – now 170+ hospitals across the country. Our ‘Supporting Arms’ service that was launched in 2020 has significantly enhanced the quality of care we offer to all those who contact us. We’re making strides in supporting our research goals by supporting a research study that explored the ways that fathers build relationships with their baby in pregnancy, and how they might foster continuing relationships with their baby following the loss. We’ve invested in strengthening our employee policies, equitable salaries as well as our CRM systems.
Page 2
ACHING ARMS
Trustees’ Annual Report for the Year Ended 31 July 2022
Financial review
a. Going concern
The Trustees have assessed the impact of Covid-19 on our finances and operations for the coming year. Cash flow forecasts and budget projections have been reviewed and the Board of Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements.
b. Reserves policy
The Trustees regularly undertake a review of the financial activities to ensure the charity has sufficient reserves in order to operate in both the short and longer term.
The charity’s reserve policy is to maintain liquid funds equal to at least six months’ core costs, which are primarily bear purchases and deliveries, salaries and premises costs. This level of reserves has been met throughout the year.
c. Financial performance
Our main income comes from donations and fundraising, amounting to £217,517 in the year (2020: £186,190). Merchandise sales were £12,745 in the year (2020: £8,191). Total income reached £270,364 (2020: £224,762).
Expenditure for the year was £213,317 (2020: £172,279), resulting in a current surplus of £57,047 (2020: £52,483).
Structure, governance and management
a. Constitution
The charity is controlled by its governing document.
b. Method of appointment or election of Trustees
The Board of Trustees carries out regular reviews to identify any gaps in the knowledge and experience of our Board needs to further Aching Arms work. Potential new trustees are required to submit an application form, and if taken forward they are then invited to attend a Board meeting, following which they attend an interview, and if both parties are happy and willing to continue, their application is submitted to the next scheduled trustees meeting for confirmation of appointment.. New trustees are provided with access to relevant policy and procedure documents that are appropriate to the role they undertake as trustees.
c. Risk management
We continue to assess, review and plan for all risks the organisation may face now and in the future. All new projects and activities developed and run by Aching Arms undergo a risk assessment before they begin. This process highlights awareness to the potential risks faced and will assist with the development of robust contingency plans.
The trustees have identified the risks to which the charity is exposed and have implemented procedures to manage those risks. The risk of the charity are reviewed at Trustee meetings on a regular basis.
Plans for the future
We have ambitious growth plans for the future. Offering Aching Arms bears either through hospitals or directly by post to all parents whose baby has died is at the core of everything that we do and will continue to be our focus. In addition, we will grow our support services for bereaved families in the following areas: 1. Growing our ‘Supporting Arms’ services that was launched in 2020; 2. Extending the reach to ‘Supporting Arms for Dads’ service; 3. Developing the ‘Be Together’ program; 4. Supporting siblings through loss; 5. Supporting families whose loss was longer ago; and 6. Ensure our services are inclusive and accessible to families from diverse communities, including those with disabilities and ethnic minorities.
Page 3
ACHING ARMS
Trustees’ Annual Report for the Year Ended 31 July 2022
Statement of Trustees’ responsibilities
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards.
The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles of the Charities SORP;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable standards 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 presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 1993, the charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the Board of Trustees on 17[th] April 2023 and signed on their behalf by:
Sundeep Kaur Sundeep Kaur (Apr 17, 2023 21:55 GMT+1)
Sundeep Kaur – Chair
Page 4
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Independent Examiner’s Report for the Year Ended 31 July 2022
Independent examiner’s report to the trustees of Aching Arms (‘the Trust’)
I report to the trustees on my examination of the accounts of the Trust for the year ended 31 July 2022.
Responsibilities and basis of report
As the trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). You are satisfied that the accounts of the Trust are not required by charity law to be audited and have chosen instead to have an independent examination.
I report in respect of my examination of the Trust’s accounts. I have carried out my examination under section 145 of the 2011 Act. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
An independent examination does not involve gathering all evidence that would be required in an audit and consequently does not cover all matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.
Independent examiner’s statement
Since the Trust’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Association of Chartered Certified Accountants (ACCA), which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records, with respect to the Trust, were not kept as required by section 130 of the 2011 Act; or 2. the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
I confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity’s trustees those matters that I am required to state to them in an Independent Examiner’s Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work or for this report
Stephen Pinder
Stephen Pinder (Apr 18, 2023 08:37 GMT+1)
Stephen Pinder FCCA MAAT Mansell & Co Chartered Certified Accountants 5 Ducketts Wharf South Street Bishop's Stortford Hertfordshire CM23 3AR
Date: 17[th] April 2023
Page 5
ACHING ARMS
Statement of Financial Activities (including Income & Expenditure Account)
for the Year Ended 31 July 2022
| Income from: Donations and fundraising Merchandise sales Gift aid Brentwood grant Amazon smile Lottery grant Other income Total income Cost of sales: Purchases Direct costs Postage and packing Gross profit Expenses: (analysed below) Employment costs Establishment costs General administrative expenses Finance charges Depreciation charges Interest payable Total expenditure Net income / (expenditure) Transfers between funds Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward |
Notes 2 8 |
31.07.22 Unrestricted Restricted Total funds funds funds £ £ £ 205,935 11,582 217,517 12,745 - 12,745 27,409 - 27,409 - 350 350 1,338 - 1,338 - - - 1,005- 10,000 11,005 |
31.07.21 Total funds £ 186,190 8,191 11,854 3,000 497 14,030 1,000 |
|---|---|---|---|
| 248,432 21,932 270,364 |
224,762 | ||
| (25,051) - (25,051) (3,172) (500) (3,672) (12,068) (356) (12,424) |
(27,390) (11,301) (7,138) |
||
| (40,291) (856) (41,147) |
(45,829) | ||
| 208,141 21,076 229,217 (96,327) (2,575) (98,902) (680) - (680) (60,745) (9,207) (69,952) (2,105) - (2,105) (531) - (531) - - - |
178,933 (86,151) (1,091) (38,418) (410) (366) (14) |
||
| (160,388) (11,782) (172,170) |
(126,450) | ||
| 47,753 9,294 57,047 - - - |
52,483 - |
||
| 47,753 9,294 57,047 |
52,483 | ||
| 170,193 21,021 191,214 |
138,731 | ||
| 217,946 30,315 248,261 |
191,214 |
The above results were derived from continuing operations.
The charity has no recognised gains or losses for the year other than the results above.
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ACHING ARMS
Statement of Financial Activities (including Income & Expenditure Account)
for the Year Ended 31 July 2022
| Employment costs: Wages and salaries Staff NIC (Employers) Staff pensions Staff training Establishment costs: Rent Insurance General administrative expenses: Telephone and internet Computer software and maintenance costs Office costs Trade subscriptions Travel and subsistence Advertising and website costs Accountancy and bookkeeping fees Consultancy fees Legal and professional fees Finance charges: Bank charges Depreciation charges: Depreciation of office equipment Interest payable: Other interest payable |
31.07.22 Unrestricted Restricted Total funds funds funds £ £ £ 92,048 2,575 94,623 1,266 - 1,266 1,873 - 1,873 1,140 - 1,140 |
31.07.21 Total funds £ 78,501 5,485 (1,858) 4,023 |
|---|---|---|
| 96,327 2,575 98,902 |
86,151 | |
| 350 - 350 330 - 330 |
550 541 |
|
| 680 - 680 |
1,091 | |
| 614 - 614 6,455 2,218 8,673 1,505 265 1,770 3,329 - 3,329 2,239 - 2,239 28,550 345 28,895 5,034 - 5,034 11,579 6,379 17,958 1,440 - 1,440 |
621 2,221 2,378 684 89 30,270 1,675 - 480 |
|
| 60,745 9,207 69,952 |
38,418 | |
| 2,105 - 2,105 |
410 | |
| 531 - 531 |
366 | |
| - - - |
14 |
Page 7
ACHING ARMS
Balance Sheet as at 31 July 2022
| Fixed assets Tangible assets Current assets Stocks Cash at bank and in hand Creditors:Amounts falling due within one year Net current assets Net assets Charity funds Unrestricted funds Restricted funds Total funds |
Notes 4 5 7 8 |
2022 £ £ 1,589 12,356 241,132 253,488 (6,816) 246,672 248,261 217,946 30,315 248,261 |
2022 £ £ 1,589 12,356 241,132 253,488 (6,816) 246,672 248,261 217,946 30,315 248,261 |
2021 £ £ 1,101 13,844 178,814 192,658 (2,545) 190,113 191,214 170,193 21,021 191,214 |
2021 £ £ 1,101 13,844 178,814 192,658 (2,545) 190,113 191,214 170,193 21,021 191,214 |
|---|---|---|---|---|---|
| 253,488 (6,816) |
192,658 (2,545) |
||||
| 248,261 | 191,214 | ||||
| 217,946 30,315 |
170,193 21,021 |
||||
| 248,261 | 191,214 |
Approved and authorised by the trustees on 17[th] April 2023 and signed on their behalf by:
Sundeep Kaur Sundeep Kaur (Apr 17, 2023 21:55 GMT+1)
Sundeep Kaur - Chair
Page 8
ACHING ARMS
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022
1. Accounting policies
Summary of significant accounting policies and key accounting estimates
The principle accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
The financial statements have been prepared using the historic cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities..
Tax
The charity is exempt from corporation tax on its charitable activities.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class Office equipment
Depreciation method and rate 25% reducing balance basis
Debtors
Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
Creditors
Creditors are recognised where the charity has a present obligation resulting from a past event that will 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 are recognised at their settlement amount.
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ACHING ARMS
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular purposes within the objectives of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
2. Other trading activities
| 2. Other trading activities |
||
|---|---|---|
| 2022 2021 |
||
| £ £ |
||
| Grants and subsidies | 11,005 1,000 |
|
| 3. Net income/(expenditure) Net income/(expenditure) is stated after charging/(crediting): |
||
| 2022 2021 |
||
| £ £ |
||
| Depreciation expense | 531 366 |
|
| Independent examiners fees | 2,400 1,675 |
|
| 2,931 2,041 |
||
| 4. Tangible fixed assets |
||
| Office | ||
| Equipment | ||
£ |
||
| Cost | ||
| As at 1 August 2021 | 1,712 | |
| Additions | 1,019 | |
| As at 31 July2022 | 2,731 | |
| Depreciation | ||
| As at 1 August 2021 | 611 | |
| Charge for theyear | 531 | |
| As at 31 July2022 | 1,142 | |
| Net book value | ||
| As at 31 July2022 | 1,589 | |
| As at 31 July 2021 | 1,101 |
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ACHING ARMS
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022
| 5. Stock |
|
|---|---|
| 2022 2021 |
|
| £ £ |
|
| Stock | 12,356 13,844 |
| 6. Debtors |
|
| 2022 2021 |
|
| £ £ |
|
| Other debtors | - - |
| 7. Creditors Creditors: amounts falling due within one year |
|
| 2022 2021 |
|
| £ £ |
|
| Due within one year | |
| Trade creditors | 2,591 842 |
| Other creditors | 401 283 |
| Taxation and social security | 1,424 940 |
| Accruals and deferred income | 2,400 480 |
| 6,816 2,545 |
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ACHING ARMS
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022
8. Movement in funds
| 8. Movement in funds |
|
|---|---|
| Net Transfers |
|
| Balance at movement between Balance at |
|
| 01.08.21 in funds funds 31.07.22 |
|
| £ £ £ £ |
|
| Unrestricted funds | |
| Be together | 5,226 (271) - 4,955 |
| Community events | - 433 - 433 |
| Supporting arms – Lloyds bank | 1,000 15,000 - 16,000 |
| Supporting arms – St James Place | - 1,270 - 1,270 |
| Volunteer expenses – Community events | - 1,000 - 1,000 |
| General fund | 163,967 30,321 - 194,288 |
| 170,193 47,753 - 217,946 |
|
| Restricted funds | |
| Brentwood grant | 8,000 (1,868) - 6,132 |
| Lottery grant | 6,642 (2,575) - 4,067 |
| Operations (bear distribution) – Openwork Foundation | - 10,000 - 10,000 |
| Postal bears | - 434 - 434 |
| St James Place | - 7,940 - 7,940 |
| Staff rewards | - 635 - 635 |
| Wales fund | - 1,107 - 1,107 |
| Zurichgrant | 6,379 (6,379) - - |
| 21,021 9,294 - 30,315 |
|
| Total funds | 191,214 57,047 - 248,261 |
Page 12
ACHING ARMS
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022
Net movement in funds, included in the above are as follows:
| Net | |
|---|---|
| Incoming Resources movement |
|
| resources expended in funds |
|
| £ £ £ |
|
| Unrestricted funds | |
| Be together | 75 (346) (271) |
| Community events | 500 (67) 433 |
| Supporting arms – Lloyds bank | 15,000 - 15,000 |
| Supporting arms – St James Place | 1,500 (230) 1,270 |
| Volunteer expenses – Community events | 1,000 - 1,000 |
| General fund | 230,357 (200,036) 30,321 |
| 248,432 (200,679) 47,753 |
|
| Restricted funds | |
| Brentwood grant | 350 (2,218) (1,868) |
| Lottery grant | - (2,575) (2,575) |
| Operations (bear distribution) – Openwork Foundation | 10,000 - 10,000 |
| Postal bears | 730 (296) 434 |
| St James Place | 8,500 (560) 7,940 |
| Staff rewards | 900 (265) 635 |
| Wales fund | 1,452 (345) 1,107 |
| Zurichgrant | - (6,379) (6,379) |
| 21,932 (12,638) 9,294 |
|
| Total funds | 270,364 (213,317) 57,047 |
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ACHING ARMS
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022
8. Movement in funds – continued
Comparatives for movement in funds
| Net Transfers |
|
|---|---|
| Balance at movement between Balance at |
|
| 01.08.20 in funds funds 31.07.21 |
|
| £ £ £ £ |
|
| Unrestricted funds | |
| Be together | 5,226 - - 5,226 |
| Supporting arms – Lloyds bank | - 1,000 - 1,000 |
| General fund | 115,791 48,176 - 163,967 |
| 121,017 49,176 - 170,193 |
|
| Restricted funds | |
| Brentwood grant | 5,000 3,000 - 8,000 |
| Lottery grant | - 6,642 - 6,642 |
| Zurichgrant | 12,714 (6,335) - 6,379 |
| 17,714 3,307 - 21,021 |
|
| Total funds | 138,731 52,483 - 191,214 |
Comparatives net movement in funds, included in the above are as follows:
| Net | |
|---|---|
| Incoming Resources movement |
|
| resources expended in funds |
|
| £ £ £ |
|
| Unrestricted funds | |
| Be together | - - - |
| Supporting arms – Lloyds bank | 1,000 - 1,000 |
| General fund | 206,732 (158,556) 48,176 |
| 207,732 (158,556) 49,176 |
|
| Restricted funds | |
| Brentwood grant | 3,000 - 3,000 |
| Lottery grant | 14,030 (7,388) 6,642 |
| Zurichgrant | - (6,335) (6,335) |
| 17,030 (13,723) 3,307 |
|
| Total funds | 224,762 (172,279) 52,483 |
Page 14
ACHING ARMS
Notes to the Unaudited Financial Statements for the Year Ended 31 July 2022
9. Related party transactions
There were no related party transactions for the year ended 31 July 2022.
Page 15