Saigon Children's Charlty CIO Annual Report for the year ended 31 December 2023 CHII
Saigon Children's Charity CIO Annual Report For the year ended 31 December 2023 Contents Page number Organisation inlormation Chairman's report Declaration - Serious Incidents ExecutlV8 Director's r8POrt Independent auditors, report Financial statements Statement of linancial activStle8 Balance sheet Stalem8nt of cash flows Notes lo the Ilnancial statements 7-12 13-15 16-17 18 19-20 21-28 12 saigonchildren S•lgon ChIldr, Chorlty CIO J9 Tr8n QU Thao r)Isl J. HCMC. VN 14ryistered chfy r15. +84 28 30 3fi. UK 115TIT41 VN 631CNV.VPI)D www s4wK.hklrpnr.nm remo¥ffi9bBmcy5toqdL**4in
Saigon Children's Charity CIO Organisalion Information Board of Trusteès David Huw Appl8ton {Chairman) Diana Simone Wells Jonathon Ralph Alexander Waugh Richard James Burrage Seck Yee Chung Tieu Yen Trinh (until 14 March 2023) Alexander Christopher Falter James Samuel Charles Estaugh Jason Michael Turnbull Paul Theodore McGee (until 01 Junè 20231 Executlve Dlrector Dami8n Roberts Senior Managemenl Team Head of Programmes Nguy8n Thi Duy Huong Angelique Mass8 Nguyen lunlil 31 July 2023) Vuong Ngoc Vy Van (from 1 August 20231 LeLeAnNa Head of Fundraising & Communications Head of Finance & Admin CDSP Programme Manager School Bullding & Learning Environment Programme Manager Nguyen Sinh Quang Anh Nguyen Hoang Phuong Getting Ready lor Work Programme Manager Phan Thanh Thuy Hang Special Needs Educational Programme Manager Nguyen Long Dien (from 13 July 2022 until 30 September 2023) Phan Ngoc Thanh Tra (from 01 February 2024) United Kingdom Charity Regislratlon Number 1157774 saigonchildren sal Chlldren'8 ChaTIty CIO I rAn I hao. L)1s13. HCMC. VN R9gislfjred chBrily nunii*ts UK 11577141 VM 6WCNV-VPDD Sayi11enlnlTb +84 28 3930 32
Saigon Children's Charity CIO Organisalion Information Registered Offl¢e {Unlted Klngdom) 24 Gloucester Road Teddington, Middlesex TWI I ONU Main Operatlng Offlce {Vietn8m) 59 Tran Quoc Thao District 3, Ho Chi Minh City, Vi8lnam HSBC United Kingdom, HSBC Vletnam Viètnam International Bank {VIBI Standard Chartered Hong Kong Vietnam Commercial Bank {VCB) Viatnam Public Joinl Stock Commercial Bank (Pvcombankl Bankers Legal Adv180r {pro bono) Freshfields Bruckhaus D8rlnger 1101-1103, Saigon Tow8r 29 Le Duan Boulevard District 1,Ho Chi Minh City, Vietnam KPMG Limited Vietnam Audllor (pro bono) saigonchildren S#lgon Chlldr•n'• Charlty CIO I ran (JLKK rh1, Jist 3, HCMC, VN Rtyislfxixl chawily numbers UK 11577141 VN fi31CNV_VT4)D 5awrLMJFen co +84 28 39 1502 movii1gl>airrs IceOn
Chairman's Report From the Chairman ol Saigon Children'8 Chariiy CIO, Mr David Huw Applelon l arn delighted to introduce the Saigon Children's Charity CIO I'saigonchildren'l Annual Report for 2023 to those who have already supported our work and those who may be reading ihis to help decide whether to support our work in the future. Since 1992, saigonchildren has continued its mission to remov6 barriers to education for th8 most disadvantaged children and young people in Vietnam. By creating educational opportunities, building expertise and incrèasing economic inclusion we continue to driv8 Sustainable devalopment at the individual, Community and national lev81. With impacff ul programmes, strong governance and an excellent record of financial transparency, we are proud that our donors include Fortune 500 and SE 100 companies, multilateral agencies. govemm8nls and passionate individuals around the worfd. In December 2023 the impact of saigonchildr8n's work was recognised by the national government of Vietnam which awarded a pr8Stigious trophy and certificate for our 'posilive conlribulions lo Vietnam's sustainable development in 2023", Thls mo81 recent award, coming in addition to th8 Prime Mlnister's Certificate of Merlt awarded to saigonchildren by th8 Prime Minister of Vietnam in 2018 and the National Medal for Peace & Friendship Among Nations awarded to saigonchlldren's Executive Direclor in November 2023, underscores the importance and impact ol our work and highlights the longstanding sUPPOrt of the Government of Vi8tnam for our focus on educallon, development, stability and prosperity. In 2023 we received record income of US$2.05 million, our fifth succèssive record year. Importantly, our expenditure in 2023 was also a record as we aim to turn donations into life- changing help for thousands of children and young p8ople as soon as practicably possible. The charity maintained Its four longstanding programmes - scholarships, vocatlonal training, school building and special needs education - all of which continue lo develop alongside Vietnam to ensure that they remain appropriat8 and as impacttul as possible for tha children we help as well as for the national benefit. Our team of so¢lal workers, therapists, counsellors and teachers identity and provide tailored support for Vietnam's most disadvantaged youngsters, including those with disabililies and dev61opmental challenges, ethnic minority groups, girls, rural communities, and all children living in pov8ty and insecurity. In Ihis way our staff enable childr8n lo reach their full polenlial. Saigonchlldn SolfV• CNldr•n'• Charlty CIO 59 Tron Quct Thao, Dist.3. HGM¢. VN Rpgislered rhaTrty DumtWS 484 ?8 1930 removmg rir$I01(Katsan UK I157T74 1 VM 62RChtV.VPDD vh¥w com
Once again, l extend my sincere gratitude and thanks lo our incredible supporters around the world who continue lo make it possible for thé saigonchildren leam to keep making life better for thousands of vulnerable and disadvantaged children across Vietnam. The Board of Trustees and I remain diligently focused on maintaining the highesl slandards for saigonchildren's governance and financial Iranspar8n¢y ensuring we continue to exceed the exa¢ting due diligence ol our international supporters. This Trustees Annual Report comprising the Chairman's report, Ex8culive Director's r8POrt, Financial Slalem6nts and Notes (audited by KPMGI. has b88n approved by the Trustees of saigonchildren on 16 September 2024, and l am authorised to sign the report on their behall. Thank you. oReN'S c N PHONG Al DIÉN AI VIET NAM David Huw Chairman ol rusl88S Saigon Children's Charity CIO Charity Number 157774 16 Septomber 2024 Kl saigonchildren Salgon ChIldr'S Charlty CIO 59 Tran Th. Oisl.3. HLMC. VN Rixjisl¥r eha141y niimtHs 84 28 3930 3 i?mtswn9 baffjer5 loediKat UK 1157T741 VN C)&CNV.VPDD saten com
Declaration - Serious Incidents Charity Law requires us as Saigon Children's Charity CIO Board of Trustees to submit and sign, as part of this annual return, this declaration lo confirm that there were no serious incidents or other matters relating lo Saigon Children's Charity CIO during the previous financial year, 2022, that we should have broughl to Ihe attention of the Charity Commission of England and Wales. but have not. OREN'S c VA PHONG FDIÉN I VIÉT NAM David Huw A Chairman of the ustees Saigon Children's Charity CIO Charity Number 157774 16 September 2024 saigonchildren Saigon Chlldr•n'• Chrlty CIO ReoisloFod chafity numtl5" +a4 28 3U30 3502 pemtrrfiDgbarriQTs toOduC¥tft Tith(kn Th), E)Isl 3. HC.MC.. VN UK 11511141 VN fj&I:NV.VPDD W*YW &3YwhMrenco
Executive Director's Report EXECUTIVE DIRECTOR'S NOTE The focus of Saigon Childran's Charity CIO {'saigonchildren'l continues to be economic development through education. We remove barriers to education for Vietnam's most disadvantaged children and young people so they can18arn, develop and Iransform their futures. Despite the ongoing global and local challenges fac8d in 2023. saigonchildren had its most successful year ever for both income and for the assistance we provided to vulnerable children and young people. DI Our scholarships, vocational training. school building and special ne&ds education programmes are constantly adapting to ensure that we arè offering the support that will most benefit our children. In 2023 this included new Earfy Intervention therapies for children, digital lifè skllls, safeguarding training, employability skills for university students. leadership training for female students and much more besides. The childr8n w8 help are highly likely to have careers and lives which ar8 more secur8, more stable and happier than their parents, wlth many going on to menlor and inspire younger saigonchildr8n beneflciarles. On average, the starting salary of our scholarshlp re¢lpients Is 4.5x higher than their par8nts' incom8, transforming life for them and thèir families forever. Among the communilles we serve we are seeing greater levels of economic challenge, including in areas such as the Mekong Delta whare drought, soil salinisation and rising costs are affecting the most disadvantaged. We have consulted a substantial number of our beneficiaries and other affected people so that we can 8nsure our response is community-led and likely to have the great8sI benefit in Ihe shortest time. Based on feedback from the communities we serve we hav8 begun to introduce a grealer element of 'community resilience-building, into our education programmes as we recognise that it is vital to ensure family and community stability so that our beneficiaries Can fc¢us on their education wilhout undue threats and pressures. Qur flagship special needs e¢Jucalion work conlinues to grow, with more young children receiving vital Early Intervention Classes in Ho Chi Minh City and in the fast-growing Mekong Delta city of Can Tho. This work is carried out across Vielnam. through a national network of special needs education experts Irained by saigonchildren and now working in dozens of provinces to directly support neurodiverse children including Autism Spectrum Disorder {ASDI and Attention-D8ficit and Hypèractivity Disorder {ADHDI, as well as training parents, teachers and othèr specialists so Ihal the national capacity for educational support is increased and fewer children miss out on the opportunity lo reach th8ir full potential. saigonchildren I ChSldr•n's ChtrltyCIO Registered ettarity nt$. UK t 1571141 VN (j31CNV-VPOLI %WNrfS3KVththrLn to +84 1.8 35 fit) T T QiJtx-. T I)151 I, M(-Nir., VM
Alongside our growing focus on ASD and neurodevelopm8ntal challenges. saigonchildren has continued to help groups of children affected by hearing impairmgnt, loss of vision and mobility problems. Our COVID Orphans campaign has successfully supported more than 200 vulnerable children through the most diff icult years of their young lives, and we are delighted that the majority are now in situations which are safe, slable and hopeful and no longer in need of our support. Around 50 childrèn will continue lo be h8lped by saigonchildren until we are confident that they are also able to Ihrive. Saigonchildren always plans to disburse all of our incom8 as soon as we can so that our donors can be confident that their contribullons are turned into tangible help for children as quickly and effectively as possibl8. Our cash reserves remain stable and are enough to meet our scholarship liabilities for slx months in case ol serious unforeseen operational issues, in line with our slralegy. PUBLIC BENEFIT The Trustees have had due regard to the Charlty Commission's public benefit guldance when exercising their pow8rs and duties. This report is designed to demonslrale saigonchildren's activities, thinking and approach in working with the children, families and communities in which we operate to ensure their well-being, and that saigonchildren continuously strives to deliver real benefit to those people we support, in a way that enables them to use this support Constructively in their lives. OBJECTIVES OF SAIGONCHILDREN Saigonchildren helps those childr8n and young people in the most difficult clrcumstances to receive an education. Over 31 years of working in Vigtnam, education has proven to be the most effective and sustainable way we can hèlp children and their families to escape from the cycle of poverty and ¢ontribvle lo the continued growth and development ol Viètnam. OUR FOUR PROGRAMMES: SCHOOL BUILDING AND LEARNING ENVIRONMENT PROGRAMME Saigonchildren builds schools in disadvantaged areas, serving communities where existing facilities have become unsafe or unsuitable, and in areas where children must Iravel a long distanc8 to school. Our schools are usually situated in areas with a high proportion of ethnic minorities. We use private donations, along with contributions from the government. to build schools which are publicly owned and operated. CF c& saigonchildren S00n Chlldr•n'• Charlty CIO ri(1 T rail ()iJ(x'. Tlia(Tr Di%1 3 Hi-.K,IC.. VN R4uistered charily numters. +84 2ll3lj .35(1? Tf mv¥ivg bolea LOLYIUCaO UK 11511141 VN G&CNV.VWD VlW* 4PWrthikltEnco
In addition to building safe, secure and beautiful schools, we provide hygienic toilel and wash facililios, libraries, playgrounds and equipment to enhance th8 school environment and improve the lives ol the children who study in our schools. We use these schools and our strong community neOrk lo strengthen awareness and understanding of a range of vital issues including sustainability, environmental protection, heallh and inclusion. We provide essential tralning such as Positive Discipline in Schools, How lo Identify Children with Intellectual Disabilities, Child Rights, Prevention against Child Abuse and First Aid to teachers and school managers of the schools we build. This initiative is extremely popular with teach8rs and school staff. Since the first saigonchildran school was buill in Can Gio in 1993, 610 classrooms have opened doors lo brighter lulures for around 20,000 disadvantaged Ghildren every y8ar, Irom Tra Vinh on Vietnam's southern coast to Tuyen Quang close to the border with China, nearly 2,OOOkm to the north. In 2023 we built and renovated 16 classrooms in the provinces of Hau Giang, An Giang and Tra Vinh, providing access to enhanced learning facilities to 567 children, helping them lo be safe and happy at school. In addition, we equipped eight computer rooms which serves 2,242 ¢hildren of six primary and secondary schools In enhancing their digital Illera¢y. AN rAI CHILD DEVELOPMENT SCHOLARSHIP PROGRAMME Our Child Development Scholarship Programm8 removes barriers to education by providing scholarships including social care, tuition 18es, books, rice. uniforms, and slallonery - to disadvantaged children from primary school to university. We lake a holistic approach to supporting children, their families, teachers and community lead8rs to work togalher to keep kids in education through a community-based chlld development support neork. The children most in ne8d are identified through a careful process carried out by saigonchildren's social care team. We visil each family al home to assess Iheir needs through an eflicient and impartial process. Our scholarships are not awarded to the children with th8 b8St grades, they are award8d to children who have expressed a strong desire to stay in educalion. but whose pov8ty and disadvantage makes this extremely unlikely. School year 2022-2023 was an extremely challenging year for both saigonchildren and our children as economic Conditions in Vietnam remained very diff icult, and many international donors themselves faced greater demands from populations experi8ncing growing instability. How8ver, saigonchildren was able to: Provide 1,899 scholarships to disadvantaged childr8n and young adults in six provinces of Vietnarn., Visit 741 childr8n either at their homes to learn about their lives, th8ir learning situation, and to help them understand saigonchildren's support. saigonchildren Chll•n'¥ Charlty CIO 59 Tit¥b QLXK Tlw, Disl 3. Hr¢.. Rwistorèd charity nUMt$. +84 28 3g30 3502 IèrnO¥iTrJ bamofsioothJcèrun UK 1151174 1 VN fjTrcNV.vpD VA)1hJrÈft com
Provi¢Je urgent support to 68 children. Provide 116 bicycles to children who liv8 more than 3km from school to short8n their journey lo school., Organise Iwo online life skills training sessions on "online safev for 693 students lo help pr8v&nt them from danger while learning online. Organise a summer camp for 162 post high school students and alumni whera they were provided with opportunities to exchange and learn from each other as well as lo receive training on essential soft skills., and Organise 71 meetings with the participation of 1,511 parents. GETTING READY FOR WORK PROGRAMME Our Gètting Ready lor Work Programme gives young adults in difficult circumstan¢es the opportunity lo learn vo¢ational skills and develop th8mselves, so they integrate inlo work and social life. These young adults enhance their employability by completing vocational courses and learning English, IT and soft skills at Thang Long Vocational Training School operated by saigonchildren in Ho Chi Minh City. Lrfe skills Iraining and social and communlty actlvlties are a fundamental part of this programme. Saigonchildren and our local training partners guide disadvantaged youths lo become conlidenl, self-suffici8nt, skllled and r8sponsible individuals. W8 continued to implement a project on providing short-term vocational Iraining lo children aged 14 to 17 years old lo prèvent them from being exploit8d through child labour. We run three main projects within Ihe Getting Ready tor Work Programme: 1. Vocatlonal Training and Job Placemènl,. The Vocational Training and Job Placement project supports disadvantaged young adults between the ages of 17 and 25. These sludenls18arn the knowlèdge and skills required lo securè a job aligned with their interests, capabilities and ambition whether that is to be a software developer, an engineer, a beauliclan, a barista or a bartender. In 2023, 86 young adults look part in this vtxational training, with 45 of them graduating within this time. The annual dropout rat8 was just 20A, due to the comprehenslve support provided by th8 saigonchildren team. Within 2023, 37oflhose 45 vocational training graduates w8re employed, with an average income of US$262 per month. The average salary received by our vocational training graduates in 2023 was over 36.10 higher than the top level of minimum wage in Vietnam, and in the top 25°/0 ol salaries for under 25s in Vietnam. 2. English, IT and Social Activities.. In 2023, 380 students developed their English communication skills and Computer skills. We encourago the development of students, creativity through classes in art, dance, swimming and alumni activities to support the next generalion of student5 to develop their talents. saigonchildren Salqon CNldr•n'8 Charfty CIO 49 Trdii OiKx-. I hwi Tri%1 .3 HL.'KIC, llogislorod ch8rity nt¢mters' +84 28 3&kW 350? tmo¥ili9 bamofsloeducai UK 1157T141 VN G31CNV-VPO0 10
- Psychosocial Counselling and Life skills Life skills training on topics such as Communication Skills, Attitudes and Professional Appearances, Budget Management, and Personal Safety are provided to young adults as a foundation for their personal and professional life. In 2023, saigonchildren offer8d 26 life skills training sessions which benefited 913 participants.
- ENHANCE Proj8cI {Prevention of Child Labourl In 2023, 1,884 nutritional support packages were provided to 628 children aff8Cted by Covid-19 who live in three dislricls of Ho Chi Minh City., 41 children who attended semi-boarding school in Ihre8 districts of HCMC were provided with nutritional and educational support- 34 meals were provided lo hundreds of migrant's children who were studying al Thien An Love School; 26 training sessions were organised which equipp6d n8ces5ary life skills for 2,614 participants who were beneficiaries of th6 ENHANCE Project. ENHANCE Project is funded by our partner, the Inl8rnalional Labour Organisation IILOI. SPECIAL NEEDS EDUCATION PROGRAMME Saigonchildren supports childrèn with disabiliti8s and helps them to hav8 a better life through proper education with our Spècial Needs Education Programme. We specialise in autism education, including community-based identification and early Intervention, and work with speech therapists, physical Iherapisls and specialist trainers lo build expertise across Vietnam. We provide vital educational resources in Vielnamese for the firsl time and are working lo develop Centres of Exc811ence and build a national network of high-quality care and education. We also cooperate with specialist organizations across V18tnam to help childr8n wilh disabilities such as cer8bral palsy, deafn8ss, blindness and congenital conditions including those associated with the èffects of Agent Orangè. We provide education & training and social development aclivilies for children, improve learning facilities, and support local organizations to build their fundraising and management capabilities. In 2023, the programme ran eight projects which bersefitted 824 children and parents. RISKS AND RESERVES The key risks id8ntified for saigonchildrèn are repulalional and financial. Saigonchildren's reputation is very good and we continue to be appreciated for the eff iciency and efficacy of our programmes and the exacting standards we maintain in all areas of governance, accounlability and transpar8ncy. We review and revise all policies on an ongoing basis. The greatest risk to saigonchildren is a significant loss of funding. While many of our projects wait for funding before starting, we have areas of ongoing operation or commitment which the Trustees have agreed should be protected by reserv8s. The need for reseNes has been specifically identified: saigonchildren Chlldr•n' Chwity CEO Reglstorod ch¥rty numtrs'. +64 28 3g30 3502 59 TF8Ji QU[ Th•. fJisl 3. HCMC. VN UK 11517741 VN fj&CNV.VPUO *ww saw£hen com
To ensure that in all circumstances we Can provide up to six month5. SUPPOrt to scholarship children. To ensure that we can, in all circufflstances, promde up to six months, notice to teachers and students al Thang Long School. To provide for above minimum levels of notice period and pay for existing staff of the charity In all above scenarios lo provide enough operating lim8 lup to six monthsl for the charity to assign ils responsibilities adequately elsewhere where possible. To provide for other emergencies and adverse unforeseen matters which have a financial implication on th8 ¢harity. STRUCTURE. GOVERNANCE AND MANAGEMENT Saigonchildren is managed by a constilulion and is a Charitable Incorporated Organisation. The organisation Is governed by a Board of Trustees. At the end of 2023 there wer8 8ight Trustees, with the majorlty based in Vietnam. Trustees are selected by the Board and invited to joln wlth proper regard to their suitabllily for the role as w811 as the skills they can add lo the Board. Th8y arè provided with Charity Commission guidance as well as an induction and introduction to slaff and programm8s. More about the Trustees and saigonchildren can be found on our w8bsit8- www.saigonchildr8n.com. The Trustees delegate manag8m8nl of the day-to-day activities of the organisatlon lo the Executiv8 Director. Damien Roberts, and this is managed through an approved strategy and annual budgèt. This allows an approprlate degree of autonomy for the Executiv8 Director whilst 8nsuring that the Trustees remain informed and involv8d in a timely manner on key agreed areas such as.. Significant policy, proc8dural or project changes Financial concerns Major personnel issu8S Fundraising and other opportunities for engag8menl Other matters of significance The Trustees aim to meet fomially as a Board four tlmes every year and receive monthly financial and operational reports from the Executive Director. Performance and pay of the Executive Director is evaluated by the Trustees and other staff pay is proposed by the Director through the budge ke a continually active interest in the organisation and are often involved in supp he work, as well as participating in fundraising events and other activities N PHONC, Al DI¢N VIET NAM Damien Robe Executive Direct Saigon Children's Chan 16 September 2024 cio saigonchildren S•lgon Chlldr¢n'• Chwlty CIO 59 Tran QurK TIH). Dis13. HC.MC,. VN R6YJislcrod chwrty numtws" +PA 28 3930 3511? UK 1157f74 1 VN tiYCNV.VPDD %Yb*W WP)rKIMh)Ten ccm 12
KPMG Limited Branch 10th Floor, Sun Wah Tow8r 115 Nguyen Hue Street, Ben Nghe Ward District 1, Ho Chi Minh City, Vietnam +84128138219266 | kpmg.com.vn INDEPENDENT AUDITORS, REPORT To the Trustees Saigon Children's Charity CIO Opinion We hav6 audited the financial statements of Saigon Children's Charity cio I'lhe Organisation'}, which comprise the balance sheet as al 31 DeGember 2023, the slat8menl of financial activities and th6 statement of cash flows for the year then ended, and notes to thè financial slatemenls, including significant accounting policies and other explanatory inlormation as set out on pages 16 10 28. In our oplnion, the accompanying financial statements present fairly, in all material respects, the financial position of the Organisalion as at 31 December 2023, and ils financial activities and its cash flows for the year then endèd in accordance with the Statement of Recommended PractlC8 applicable to charities, Charitles SORP IFRS102), and the Charities Act 2011. Charities SORP {FRS1021 is applicable lo the accounls of r818vant Charities for reporting periods beglnning on or after 1 January 2019. 8asis for Oplnion We conducted our audit in accordance with Intemational Standards on Auditing IISAS). Our responsibilities under thos8 Standards are further described in the Auditor's Responsibilities for th8 Audit of the Financial Slat8menls section of our report. We are independent ol the Organisation in accordance with the ethical requirements Ihal are relevant to our audit of the financial statements in Vietnam, and we havè fulli118d our ethical responsibilities in accordance with these requirements. We believe that the audit 8vidence that we have obtained is sufficient and appropriale to provide a basis of our audit opinion. Other Information Trustees are responsible for the other information. The other information comprises the Chairman's R6POrt and Executive Director's Report included on pag8s 4 to 12, but does not include th8 linancial statements and our auditors, report thereon. Our opinion on the financial statements does nol cover the other information and we do not expréss any fomi of assurance conclusion thereon. 13 VPMG LIBr1,
I,piy In connection with our audit of the financial slalemenls, our responsibility is to read the other information and, in doing so, consider whèther Ihe other information is malorially inconsistenl with the financial statements or our knowledge oblained in the audit, or otherwise app8ars to be materially misstated. If, based on th8 work we have performed, we concludè Ihal there is a material misslaternenl of this other infomiation, we are required to report thal fact. We have nothing lo report in this regard. Responsibilities of Management and Those charged wlth Governance for the Financial Statemenls Management is responsible for the pr8paration and lair presentation ol the financial statements in accordanc8 with the Statement of Recommended Practice applicable lo charities, Charities SORP IFRS1021, and the Charities Act 2011, and for such internal control as the management detèrmines is n8cessary to enable the preparation of financial statements that are free of malerial misstatement, whether due to fraud or error. In preparing the financial slat8ments. management is responsible for assessing th8 Organisation's ability to continue as a going conc8rn, disclosing, as applicable, matters related to going concern and using the going conc8rn basis of accounting unless manag8menl either intends lo cease operations, or has no realislic alternative but to do so. Those charg8d with governanc8 are responsibl8 for overseelng the Organisation's Ilnancial r8POrting process. Audltors, Responsibllltles for the Audlt of the Flnancial Statoments Our objectives are to obtain reasonable assuranc8 about wh8ther the financial slatem8nts aB a whole are free from material misslatemenl. 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 will always delect a material misslatemenl when it exists. Misstalemenls can arise from Iraud or error and ar8 considered material if, individually or in aggregate, they could reasonably be expected to influence the economic d8cisions of users taken on the basis of the financial slalements. As part of an audit in accordance wlth ISAS, we exercise professional judgement and maintain professional scepticism throughout the audit. We also.. Identlfy and assess the risks of material misstatomenl of the flnancial stalemenls, whether due lo fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatemenl resulting from Iraud is higher than for one resulting from error. as fraud may involve collusion. forgery, intentional omissions, misrepresentations or the ov8rride of intemal control. Obtain an understanding of internal control relevant to the audit In order to design audit procedures that are appropriate in the circumstances. but not for the purpose of èxpressing an opinion on the effectiveness of the Organisation's internal control. 14
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness ol management's use of the going concern basis of accounting and, based on the audit evidence obtained, whelher a material uncertainly exists related to 8vents or conditions that may cast significant doubt on the Organisation's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw altention in our auditors, r6port lo the related disclosures in the financial statements or, if such disclosures are inadequate, lo modify our opinion. Our conclusions are based on the audit evidence obtained up to Ihe date of our auditors, report. However, future events or conditions may cause the Organisation to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statemenls, including the disclosur8s, and whether the financial slalements represent the underlying transactions and events in a manner that achieves fair presentation, We communicate with those charged with governance regarding, among other matt8rs, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audil. On behalf of KPMG Llmlled's Branch In Ho Chl Mlnh Clty Vietnam Audit 24-01-00443-24-1 INH Ha Practicing Auditor Registration Certificate No. 0414-2023-007-1 Deputy General Director Ho Chi Minh City. 16 September 2024 15
Saigon Children's Charity CIO Statement ol financial activities for the year ended 31 December 2023 2023 2023 Llnrestrlcted Restricted funds funds USD USD 2023 2022 Note Total USD Total USD Income Donations School building Child Development Scholarship Program Gelling Ready for work Special needs education Program COVID-19 Appeal You are not alone General donations Bank interest Oth8rs 321,404 321,404 141,280 695,763 270,583 695.763 270,583 441,644 176,125 186,120 198,528 29,050 186,120 198,528 29,050 80,805 37,100 6,475 175,877 292,688 90,129 116,422 20,650 11,901 80,805 37,100 324 6,151 Ev8nts and trading activities Exchang8 dlfferences 239.682 118.1351 239,682 343,449 118,1351 153,5421 Tolal Income 339,776 1.707,599 2,047,375 1,756,623 NH IHH The accompanying notes ar8 an integral part of these linancial statements 16
Saigon Children's Charily CIO Statement of financial activities for the year ended 31 December 2023 (Continued) 2023 2023 Unrestricted Restricted lunds lunds USD USD 2023 2022 Note Total USD Tolal USD Expendllure Charitable aclivitl8S.' School building Child Development Scholarship Program Getting Ready for work Special needs education Program COVID-19 Appaal You ar8 not alone 352,495 352,495 164,360 579,388 283,245 579,388 283,245 477,175 167,564 176,333 176,389 37,533 176.333 176,389 37.533 188,465 291,220 108,660 Cost of g8n8rating funds.. Fund raising 80,046 139,875 219,921 226,055 Governanc8 4,420 22,215 26,635 24,351 Total Expendlture Nat incomel(expenditur8) before transfer8 84,466 1,767,473 1,851,939 1,647,850 255.310 (59,874) 195,436 108,773 Gross transler8 between funds 159,874) S9,874 Nèl Income after tran8fer8 195.436 195,436 108,773 The slatemenl was approved and authorlsed for issue by the Board of Trustees on 16 September 2024 . Prepared by.. Reviewed b Approve VAN PHONG Al DieN I VIÉT NAM lon LeLeAnNa Head of Finance and Administration Damien Roberts Executive Director David Hu Chair on behall o the Board of Trustees The accompanying notes are an integral part of these financial statements 17
Saigon Children's Charity CIO Balance sheet as at 31 December 2023 Note 3111212023 3111W2022 USD USD Current assets Accounts receivable Cash Held-lo-maturity investments 212,611 1,054,000 391,726 133,931 790,759 412,682 10 1,658,337 1,337,372 Current liabilities Accrued expenses Deferred income 12 13 1155,0671 179,131) 1864,4161 {814,823) 11,019,483) {893,954) Net a8S8t8 638,854 443,418 Fund8 Funds brought forward at th8 beginning of the year Net expenditure lor the year 443,418 334,645 108,773 195,436 Funds carrled forward at tho end of th• y•ar 14 638,854 443,418 The statement was approved and authorised for issu8 by the Board of Trustees on 16 September 2024 . Prepared by: Reviewed by: Approved b ofiEN'8 e VAN PHONG Al DieN I VIET NAM eloh eL8AnNa Head of Finance and Administration Damien Roberts Ex8CUtiva Director David Hu Chair on behal th8 Board of Trustees The accompanying not8s ar8 an integralpart of these financial statements
Saigon Children's Charity CIO Stalement of cash flows for the year ended 31 December 2023 (direct method) Note 2023 USD 2022 USD CASH FLOWS FROM OPERATING ACTivrriES Income School building Child Development Scholarship Program Getting Ready for work Special needs education Program COVID-19 appeal You are not alone Other activit18S 316.443 705,012 265,248 243,881 176,732 6,725 487,543 261,168 440,352 197,946 118,506 223,200 62,511 484,694 2,201,584 1,788,377 Expendlture School building Child Development S¢holarship Program Getting Ready for work Special needs 8du¢alion Program COVID-19 appeal You are not alone Other activities Operating expenses 266,805 597,074 301,354 191,366 180,086 39,410 316,948 60,870 194,955 497,746 186,837 217,577 293,949 108,893 236,345 40,281 1,953,713 1,776,583 Net ¢08h flows from operating activltle8 247,871 11,794 CASH FLOWS FROM INVESTING ACTIVITIES Placements of term deposits Receipts of term deposits Receipts of Interest 1635,327) 616,147 30,518 {308,633} 306,955 16,056 Nel cash flows from Inve81ing activitle8 11.338 14.378 The accompanying notes are an integral part of th8S8 financial statements
Saigon Children's Charity CIO Statement of cash Ilows for the year ended 31 December 2023 (direct method - continued) Note 2023 USD 2022 USD Nel cash flows during thè year 259,209 26,172 Cash at beglnning ol the year 790,759 818.130 Effect of exchange rale fluctuatlons on cash 4.032 (53,543) Cash at end ol the year 10 1,054,000 790,759 The slatemenl was approv8d and authoris8d for issue by the Board of Trustees on 16 September 2024 . Pr8pared by: R8vlewed by.. Approved by.. ofiEN's c AN PHONG DAI DIÈN 1¥16h NAM LeLeAnNa Head of Finan and Administr8tion Damien Roberts Executive Director David H Gha on beha the Board of Trustees vi The accompanying notes ar8 an integral part of these financial statemènts .,HH 20
Saigon Children's Charity CIO Notes to the financial statements for the year ended 31 December 2023 These notes form an integral part of and should be read in conjunction with the accompanying financial statements. Reporting organisation Th8 Saigon Children's Charity CIO I'lhe Organisation'l was entered on the Register of Charities of the Charity Commission of England and Wales on 8 July 2014, with registered charity number 1157774. Tho Organization's operation in Vietnam was authorised by the Organisalion's Establishment Decision of Vietnam No. 211CNV-VPDA issued by the Ministry ol Foreign Affairs of Vietnam dal6d 31 December 2014 and is valid until 11 April 2018. Its amendment No.631CNV-VPDD was issued by the Ministry of Foreign Affairs of Vietnam dated 22 June 2023 and is valid until 22 June 2028. 2. Summary of signiflcant accountlng policies The following significant accounting policies have be8n adopted by th8 Organisation in the pr8paration of these financial slal&ments. (a) Ba81s of flnanclal statement8 preparation The accounting policies ar8 in accordance with the Sta18m8nl of Recommended Practice applicable lo charities, Charities SORP IFRS1021, and thè Charities Act 2011. Charities SORP IFRS1021 is applicablè to the accounts ol rel8vanl charities lor reporting periods bèginning on or after 1 January 2015. The financial staternents. 8xcepi for the statement of cash flows, are prepared on the accrual basis using the historical cost concept. The statement of cash flows Is prepared using the direcl method. The Organisalion's accounting currency is United Slates Dollars I'USD"), which is also the currency used for financlal statement presentation purpose. HO )1¢ {b) Foreign currency transactions Monetary assets and liabilities denominated in currencies other than USD are translated into USD at rates ol 8xchange ruling al the balance sheet date. Transactions in currencies other than USD during lh8 year have been translated into USD al rates of exchange ruling at the transaction dates. All foreign exchange differences are recorded in the statement of financial activities. (c) Cash Cash comprises ¢ash balances and call deposits. 21
Saigon Children's Charity CIO Notes to the financial statements lor the year ended 31 December 2023 (Continued) (d) Held-to-maturity investments Held-to-maturity investments are those Ihat the Organisalion has the inlention and ability to hold until maturity. Held-lo-maturily investments included term deposits at banks, which are stated at cost. (e) Aceounls receivable Accounts receivable ar8 stated at cost less allowance for doubttul debts. (f) Trade payables Trade payables are stated al their cost. (g) Income Unrestrict8d funds are avallable for use at the discretion of the Organisation's Trustees n lurtherance of the charitable objectiV8s of the Organisation. Restricted funds are subject to specific restrictions impos8d by donors or by th8 purpose of the appeal. Income is recognised wh8n earned by the Organisation and there are no slgnillcanl uncertainties regarding the Consideration due. Unrestricted fund income is earned wh8n donors are comm1tt8d to the donation if there are no significant uncertaintles regarding the consideration due, or when th8 donation is received. Restrict8d ftjnd income is earned li) when donors are committed to the donation if there are no significanl uncertaintl85 regarding th8 ¢onsideration due, or when the donation is received,. and lil) when aclivilies lor which the fund is donalad are started or lime prorated in case of Child Development Scholarship Program Iformerly known as scholarships). 3. Events and trading actlvities 2023 2023 Unrestrictod Restricted funds funds USD USD 2023 2022 IM Total USD Total USD Summer Ball events Charity Cyclè Adventure Cards, calendars and T-shirts Step challenge Others 117,053 78,068 20,709 117.053 146.931 78,068 96,244 20,709 15,227 14,412 70,635 23,852 23,852 239,682 239,682 343,449 22
Saigon Children's Charity CIO Notes to the financial statements for the year ended 31 December 2023 (Continued) 4. Fund raising 2023 2023 Unrestrlcted Restricted funds funds USD USD 2023 2022 Total USD Total USD Staff costs Support costs Summer Ball events Charity Cycle Adventure Cards. calendars and T-shirts Slep challenge Events lor donors Olh8rs 25,567 2,264 34,111 2,411 4,385 128,494 11,381 154,061 13,645 34,111 2.411 4.385 133,971 13,817 45,009 25,098 1,286 2,386 3,080 8,228 3,080 8,228 4,488 80,046 139,875 219,921 226,055 5. Governance 2023 2023 Unre8trlcled Restrlcted funds funds USD USD 2023 2022 Total USD Total USD Staff costs Flent and utilities Office expens6S Travelling expenses Bank charges Others 1,795 1,000 605 68 445 507 9,021 5,023 3,043 344 2.235 2.549 10,818 6,023 3,648 412 2.680 3.056 10,129 5,827 2,341 119 3,006 2.929 4,420 22,215 26,635 24,351 Trustee remuneration and expenses The organisation's Trustees are not remunerated and do not usually claim expenses for attènding meetings or for fulfilling their duties as Trustees. Expenses may be paid up to once per year lor our UK Trustee to visit our projects in Vielnam and attend our annual strategy and budget meeting. VJ rA 23
Saigon Children's Charity CIO Notes to the financial statements lor the year ended 31 December 2023 (continued) 6. Allocation and apportionment of support costs Support costs are apportioned lo the key activity areas at Charitable Activities, Cost of generating funds, and Governance each year in appropriate ratios, which are in accordance with the Policy ol Apportionment of Support Costs, reviewed and approved annually by the Truste8S. The breakdown ol support costs incurr8d in year, and how they were allocaled beeen Charitable Activit18s, Cost of generating funds, and Governance are shown in Ihe table below.. Cost of Charitable generating activities funds USD USD Basls of apportionment Cost type Governance Total USD USD 2023 Staff costs Rent and utilities Office expenses Travelling exp8nses Bank charges Olhers 191,511 14,245 8,629 974 6,339 7,227 43.265 5.195 3,148 355 2,312 2,635 10,816 245.592 6,023 25,463 3,648 15,425 412 1,741 2,680 11,331 3,056 12,918 228,925 56,910 26,635 312,470 Cost of Charltablè generating actlvllle8 funds uso USD Ba818 01 apportlonmenl C08t iyp• Govemanu Total USD USD 2022 Staff costs Rent and ulili118S Office expenses Travelling expenses Bank charges Others 189,937 14.595 5.863 296 7,531 7,337 30,406 5,661 2,274 116 2,921 2,846 10,135 230.478 5,827 26,083 2,341 10.478 118 530 3,007 13.459 2,930 13,113 225,559 44,224 24,358 294,141 (') Staff time charges. Ai vi I") Averag8 equivalent key number of people employed within each activity. ANH rNH14 24
Saigon Children's Charity CIO Notes to the financial statements for the year ended 31 December 2023 (continued) 7. Staff numbers The average number ol persons employed calculated on full-time equivalent basis analysed by activity was.. Average number 2023 2022 Director Charitable activities Fundraising Finance. Admin, HR, IT 16 16 31 32 8. Slaff costs 2023 USD 2022 USD Salaries, wages and benefits Insurance Others 431,253 97,515 23,647 384,449 89,303 5,033 552,415 478,785 Th8 number of employees whosè emolumenls (salaries and benefits) f811 with th8 following bands.. Number of employees 2023 2022 USD100,000- 110,000 9. Accounts receivable 3111212023 3111 W2022 USD USD Donation receivables 212,611 133,931 25
Saigon Children's Charity cio Notes to the financial statements for the year ended 31 December 2023 (continued) 10. Cash 3111212023 312022 USD USD Cash on hand Cash in banks 7.411 1,046.589 7,442 783,317 1,054.000 790,759 11. Held-to-maturity investments Held-to-maturity investments represent term deposits in banks with original maturity ol more than three months and not greater than twelve months from their placemenl dat8S. Th8 term deposits are denominated in VND and earned interest ranging from 5.0°/0 lo 8.1•A12022: 4.6 % to 7.OVo) per annum during the year. 12. Accrued expenses 3111W2023 3111212022 USD USD School building Bonus and 131h salary Others 115,185 39,882 28.914 41.297 8,920 155,067 79,131 )N NA 26
Saigon Children's Charity CIO Notes to the financial statements for the year ended 31 December 2023 (continued) 13. Deferred income 3111212023 3111212022 USD USD Current liabilittes Unrestrlcted donations 23,788 59,650 Restrlcted donatlon8: School building (al Child Development Scholarship Program (b) Getting Ready for work Ib} Special needs educalion Program Ibl COVID-19 Appeal Ib) You are not alone Others 125,282 448,392 74,160 175,007 2,778 15.009 229,115 297,198 60,486 104,504 24,822 39.048 864,416 814,823 la) Deferr8d incom8 for School Building related lo money received for particular School Building projects which had not been started by the end of 2022 and are expected lo be built durlng 2023. (bl Deferred incom8 related to donations lor Child Development Scholarship Program, Getting Ready for worf(, Sp8¢lal needs education Program and COVID-19 Appeal received bul for 2023 onwards, Movemenls in the deferred income during the year wer8 as follows: USD Opening balance Increase in deferred incom8 during th8 year Deferred income realised during the year 814,823 864,416 {814,8231 Closing balance 864,416 IH 27
Saigon Children's Charity CIO Notes to the financial statements for the year ended 31 December 2023 (continued) 14. Funds Unrestrlcted Restricted funds fund8 USD USD Total USD Income Expenditure 339,776 1,707,599 2,047,375 (84,466) (1.767,473) 11.851,939} Net income/{8xpenditurel before transfers 255.310 {59,874) 195,436 Gross transfers betW88n funds (') 159,8741 59,874 N81 expenditure after transfers Total funds broughl forward at 1 January 2023 195,436 195,436 443,418 443,418 Total funds carried forward at 31 De¢emb8r 2023 638,854 638,854 (') Gross transfers between funds, amount was approved annually at year-end by the organisalion's Trustees to balance the deficit of restricted funds as al 31 Decemb8r. 15. CommStments Leases The future minimum lease paym8nls under non-cancellable op8ratlng leases w8r8'. 3111W2023 3111 W2022 USD USD Within one year Within two to fiv8 years 15,341 877 26,376 15,646 16,218 42,022 28 .NH ,'NHH