OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

?010-ii Adoption UK Charity

Contents

Contents
About us 3
What drives us 5
Chair’s report 6
Chief Executive’s overview 8
Our impact 9
Membership 11
Fundraising 12
Financial summary 13
Reference and administrative details 16
Structure, governance and management 17
Financial review 20
Statement of the Board’s responsibilities 23
Independent auditor’s report 24
Statement of financial activities 28
Notes to the financial statements 31

Adoption UK Charity Company Number 09454981

2

About us

Adoption UK Charity (Adoption UK) is the leading charity for those parenting or supporting adopted children. With over 6,000 members we are the largest voice of adopters in the UK. We work with adopters, adopted people, professionals and decision makers in England, Scotland, Wales and Northern Ireland. We also work with kinship families and those parenting children with a Special Guardianship Order.

Why families need us

Being an adoptive parent is extraordinary, and most families tell us they would encourage others to adopt. But adopting can be tough. Three quarters of adopted children have suffered significant violence, abuse or neglect in their birth families, which has lasting impacts on their mental and physical health, relationships and learning. Adoption takes resilience, understanding and the right support from the start.

We help adoptive families build brighter futures for vulnerable children

What we do

We help adoptive families build brighter futures for vulnerable children. We offer community support, expert advice, therapeutic services and advocacy. In campaigning for improvements to policy and practice, we draw on our growing evidence base about the experience of adopters and adopted people.

3

Adoption UK Charity Company Number 09454981

What drives us

Vision

An equal chance of a bright future for every child unable to live with their birth parents.

Purpose

To secure the right support at the right time for the children at the heart of every adoptive and kinship care family.

Values

We are open

We champion every adoptive and kinship care family - we value diversity, equality and inclusion.

We’re honest about the realities of adoption and kinship care, and about what needs to change.

We work constructively with others - we stand up for great ideas, good decisions and excellent support for families.

We are stronger together

We pioneer peer support in adoption and kinship care.

We enable families to build, and draw strength from, their networks.

We work with families to build an expert case for better support.

We are determined

We won’t stop until every adoptive and kinship care family has what they need to thrive.

We will empower every adoptive and kinship care family to ask for, and get, what they need.

Together, our community is a powerful force for change in the lives of the children we love.

Adoption UK Charity Company Number 09454981

5

Chair’s report

Mike Rebeiro, Chair of Trustees

This annual report covers one of the most extraordinary periods of Adoption UK Charity's history as we – along with the rest of the world – adapted and responded to the impact of the Covid-19 pandemic.

I’m proud that, despite the challenges and unpredictability, we closed the year with a 22.5 per cent growth in income, bringing in over £3m for the first time. Thanks to the many individuals and organisations who supported us, over 25,000 families engaged with our work to connect, support and influence on behalf of the adoptive community in 2020-21.

Early in the pandemic, it became clear that adoptive and kinship families faced a widening support gap caused by the disruption of their normal provision from schools, professional services, family and friends.

Staff and volunteers worked to convert our services to virtual delivery and carry out research to highlight the needs of our community. We avoided staff furloughs and redundancies, opting instead to maintain as much of our support activity as possible with the help of emergency funding from the government and partner agencies.

Successes of this approach included: launching a series of popular webinars that were attended by more than 6,000 people; providing online training for more than 1,000 parents and carers; welcoming almost 6,500 parents and carers to our community support groups; and expanding our peer support services – where adopters receive one-to-one support from experienced parent partners and mentors – to more than 500 families.

Our status as a four-nation charity has continued to benefit our work, enabling Adoption UK to support adoptive families and individuals wherever they are. This has created conditions for important partnerships driving the development of innovative projects – including the FASD Hub Scotland and the Kinship Care Advisory Support Service in Scotland, the Connected programme for adopted young people in Wales, Adopter Voice in England, and the original Therapeutic and Educational Support Service for Adoption (TESSA) in Northern Ireland.

I am very grateful to the funders and partners whose flexibility has allowed the continuation and adaptation of our work, and to the new funders who have supported us.

We are investing in our staff and volunteers, our digital capability and our fundraising ability to ensure we can rebuild our reserves and rise to the challenges we have set ourselves. We have emerged from last year stronger and more agile as an organisation, and with a long to-do list on behalf of the community we serve.

Mike Rebeiro Chair of Trustees

6

Adoption UK Charity Company Number 09454981

Chief Executive’s overview

Sue Armstrong Brown Chief Executive

The Covid-19 pandemic turned the lives of our staff, volunteers and members upside down. Everyone has made huge adjustments, and many of us have endured stress and worry. Despite that, 2020-21 has also been a year of tremendous success and development for Adoption UK Charity.

This year we launched important new service areas and saw developments in others. Our membership numbers have risen strongly, and we are once again offering training in all four nations of the UK. Our Welsh youth programme Connected has expanded, we welcomed a new Kinship service in Scotland and, following the successful launch of the programme in Wales last year, TESSA went live in Scotland and England, setting a new standard in integrated early support for families at risk of the effects of early childhood trauma. We’re

reaching thousands of families and individuals with expert help, friendship and support.

The pandemic accelerated our plans for digital transformation, and we made the leap to the online delivery of training, webinars and support groups. Our dynamic new virtual activities have transformed our offer, and we now have a superb stream of readily accessible resources for adoptive and kinship families and professionals, no matter where they are. We also refreshed our peer support services, allowing us to step into the widening support gap faced by many adopters. Because of this, we’re engaging more adopters, adopted people and carers online than ever before. And we’ve found new ways to work together, despite the huge restrictions imposed on us.

Amid the chaos of the pandemic, it would have been easy for our priority issues to sink out of view. Instead, we’ve produced important evidence on these issues, captured more media awareness and coverage of them and ensured our community’s needs remained front of mind for decision makers. Our Adoption Barometer 2020 is the reference point for adoption experience across the UK. Our FASD Hub Scotland was front and centre during FASD (fetal alcohol spectrum disorder) month in September, and we were able to bring the adoption experience to life in each of the national adoption weeks, leading two of them in Northern Ireland and Scotland.

We’ve also got a new look. This year we carried out a comprehensive review of our brand and developed and launched a new visual identity. We thought hard about what we do and who we do it for and decided to refresh our values, vision and purpose – allowing us to better reflect the charity we are today. The changes have been well received and they couldn’t be more vital. The way we present and talk about ourselves has a direct impact on the way adoptive families are supported and represented.

The year 2021 marked a major milestone as Adoption UK turned 50. As part of the programme of events planned to celebrate our five-decade anniversary, we launched our 50 Faces project in January, showcasing the unique stories of 50 people who have a connection to adoption.

We ended March 2021 in a strong position and will continue to build on this success as we seek to implement our new strategy, which is available on the Adoption UK website.

Sue Armstrong Brown Chief Executive

8

Adoption UK Charity Company Number 09454981

Together we’re family

Our work 2020-2021

The lives of our families The adoption community were turned upside rallied to bolster one another In the past year Adoption UK down by the and we worked harder than helped more than Covid-19 pandemic ever before to get our families 25,000 families the help they need build brighter futures for vulnerable children We provided Our peer support services gave vital advice and support to the 514 families 2,839 people who contacted our helpline the guidance and connection they needed 6,445 3,311 6,268 adopters and new members families adopted people came to our community groups for support, joined our community took part in our webinars companionship and fun of thousands and online events Our trainers gave We’ve been in the parents and national news 1,220 carers 80 times better insight and stronger skills We worked with Our fantastic donors and fundraisers provided more than 307 politicians and adoption sector leaders to £70,000 influence policies and practice to help us support even more families

We worked with 307 politicians and adoption sector leaders to influence policies and practice

AUK was quoted 47 times in UK parliaments

Thank You Your support makes a huge difference to all those who helped us to the lives of keep going through the vulnerable children toughest of times

9

Adoption UK Charity Company Number 09454981

Membership

We are delighted to report that family membership numbers grew by 56.6 per cent during the year, with around 6,900 UK households subscribed at year end. This means that around 12,000 individuals are now members of our community, with access to our broad range of support and benefits.

Our membership growth was due in no small part to the Department for Education (DfE)’s decision to relax the Adoption Support Fund parameters so that Regional Adoption Agencies (RAAs) in England could apply for funding to provide annual Adoption UK subscriptions to their adopters.

Family membership numbers grew by 56.6% during the year

Our challenge in the coming year will be to retain the new members we gained through DfE funding, as once their subsidised subscription comes to an end, these families will need to make the decision to self-fund. We have plans in place to motivate them to do this, but we do anticipate some drop off in numbers.

While the DfE funding only applied to families in England, a grant from the Health and Social Care Board in Northern Ireland funds the ongoing enrolment and provision of family membership to Northern Ireland’s adoptive families.

However, it is still the case that the majority of our family members self-fund in order to benefit from the sense of community Adoption UK membership provides, and because they want to engage in our policy and practice improvement activities. Our bi-monthly magazine, Adoption Today , also remains a highly valued aspect of the membership offer, as do the new digital offerings we now provide.

The Covid-19 pandemic accelerated our plans for digital transformation, and we made the leap to online delivery of training, webinars and support groups. This means we’re now able to welcome many more into our membership events. This has been a positive for us and we will keep these new online services after the pandemic.

However, for many, there’s no substitute for meeting in person. Young people especially can’t get as much from a virtual meeting as they can from a family event, and we will be bringing back in-person activities as soon as we safely can.

A key focus for us going forward will be working out how best to marry our new digital support with our traditional in-person support, to give our families the very best of what we have to offer.

The ongoing development of RAAs has made it necessary to reposition our agency offer. This year we brought an end to agency membership and focused instead on marketing the range of training, support and community services that they can commission us to deliver. Agencies who choose to purchase any of our services now become an ‘Adoption UK Associate’ for one year and benefit from a range of resources and discounts.

Going forward we intend to continuously add value to our membership offer, growing our community and making Adoption UK membership the obvious decision for adoptive families across the UK.

11

Adoption UK Charity Company Number 09454981

Fundraisin g

Your support

We would like to say a huge thank you to each and every person who has supported Adoption UK Charity this year. Every donation we receive makes a real difference to the families that rely on us – and in this very difficult year, many needed our support more than ever. To all our volunteers, members and donors who had to think flexibly and creatively to help us keep our services going – we simply couldn’t have done it without you.

Trusts, foundations and corporates

We are extremely grateful to all the many the charitable trusts, foundations and corporate sponsors who have supported Adoption UK Charity this year. In particular, we would like to recognise the support of:

BBC Children in Need,

John Ellerman Foundation,

The Corra Foundation, The Harris Charitable Trust, The Morrisons Foundation, The National Lottery Community Fund,

Courant Fund for Children, Danske Bank, Dulverton Trust, Enkalon Foundation, Foremost Magnets, Foundation Scotland, Halifax Foundation, Henry Smith Charity,

M&S Gateway Banbury, Mulberry UK, Robertson Trust, RS MacDonald Charitable Trust, Tesco, The Clothworkers Charitable Trust,

The Sebastian and Juliet Bailey Charitable Fund, Waterloo Foundation, and many others.

Community giving

Despite several national lockdowns, our incredible community of members, supporters and volunteers – aged from two to 69 – raised and donated thousands of pounds this year through events such as egg hunts, bear hunts, running, cycling, walking, and even donating their own pocket money. We have been inspired by their dedication, inventiveness and tenacity.

----- Start of picture text -----
L
----- End of picture text -----

Every donation we receive makes a real difference to the families that rely on us

One highlight was in April 2020, when 14 amazing fundraising heroes – including Adoption UK ambassador Tessa Sanderson – supported us through the 2.6 challenge. They managed to raise an amazing £7,674 including gift aid, all while sticking to social distancing restrictions.

Another was our Big Give 2020 Christmas Challenge – our most successful winter appeal ever. Everyone from philanthropists, comedians, poker players, quizzers and businesses to our members, staff, trustees and ambassadors got involved and helped us to raise over £32,000, including gift aid. This has provided vital funding for our advice and support services, which have faced a huge increase in demand during the pandemic.

Adoption UK Charity Company Number 09454981

12

Financial summary

Income

Most of our income is made up of adoption support contracts and grants to deliver support services. We also rely heavily on donations and membership subscriptions to help us represent and meet the needs of the families we serve.

After several years of income decline, driven by changes in the adoption sector, the last two years have seen major service and income growth. Our total income for the year rose by 22.5 per cent from £2,505,066 in 2019-20 to £3,070,970 in 2020-21.

----- Start of picture text -----
£3,070,970
£2,505,066
£1,774,153
£1,530,625
£1,466,930
2017 2018 2019 2020 2021
----- End of picture text -----

This increase was in large part due to contributions from service programmes introduced in the last three years – including the Connected service in Wales, the FASD Hub in Scotland, the TESSA-UK therapeutic services programme and the first year of our Kinship Care Advice and Support Service in Scotland. While our income from donations and community fundraising events was adversely impacted by the lockdowns, we benefited from Covid-related grants and the opening up of the Adoption Support Fund to allow for the provision of peer and membership services, which meant RAAs could use it to purchase subscriptions for their adopters. This revenue enabled us to fund extended universal and core services, as well as invest in new ways of working.

We are very grateful to all the families, trusts, foundations and companies who supported us this year.

Expenditure

Our expenditure increased by 26 per cent during the year, mainly due to the increase in the support we provided. We recruited an additional 61 sessional, part-time and full-time staff and invested in equipment, systems and licensing to enable online service delivery and staff to work from home or work flexibly during the pandemic. Progress this year in growing service income allowed us to direct a greater share of our unrestricted income to reserves, lifting our unrestricted reserves from £85,791 in 2019-20 to £329,154 in 2020-21. However, this remains well below our own reserves policy target of six months’ worth of operating costs. We are taking steps to increase our reserves further over the next two to three years.

----- Start of picture text -----
Our expenditure
increased by
26%
during the year, due
to the increase in the
support we provided
----- End of picture text -----

Adoption UK Charity Company Number 09454981

13

Vision of success

Our new business strategy is available on the Adoption UK website. We’re setting ourselves four big goals for the next three years.

Goal one: Broaden and deepen our community of adoptive and kinship families and individuals

Objectives

Goal two: Pioneer and expand our peer-led services

Objectives

Goal three: Increase our influence on policy and practice decisions which improve life chances for adoptive and kinship care children

Objectives

14

Adoption UK Charity Company Number 09454981

Goal four: Create a strong charity that will empower our community

Objectives

Ninety per cent of our staff, volunteers and trustees are personally connected with adoption and kinship care – either as adopters, carers or adopted people. We draw our expertise from the heart of the community we serve to bring the lived experience of adoption and kinship care into every part of our work.

Our unique position means that we can support adoptive and kinship care families now, while also championing the needs we anticipate our community will have in the future.

90% of our staff, volunteers and trustees are personally connected with adoption and kinship care

Understanding of attachment and trauma is growing all the time, and we have a key role to play in connecting, supporting and influencing for and with adoptive and kinship care families.

Our priority is to ensure adoption, education and health systems give children who cannot remain with their birth parents an equal chance to thrive.

We know that our goals are ambitious. We will work tirelessly to achieve them, with our colleagues and volunteers, with partners in children’s care and education, and with our inspiring community of adoptive and kinship care families.

Adoption UK Charity Company Number 09454981

15

Reference and administrative details

Trustees

Mike Rebeiro

Peter Seymour Mary Greenwood Tony Eastwood Emily Boardman Eleanor Bradford Tony Breslin Beth Clarke

Henrietta Delalu Jane Game Wesley Graham Clare Hudson Anna Jaques Jeremy Langley Anju Mahbubani Melissa Shackleton Jordina Walker

Elected 4 September 2020 (Chair of Trustees from 2 December 2020) Resigned 4 March 2021 Resigned 4 March 2021

Elected 26 September 2019 (Chair Of Finance and Scrutiny Committee)

Resigned 4 March 2021

Elected 23 June 2021 Resigned 2 June 2020

Elected 23 June 2021 Elected 23 June 2021

Elected 23 June 2021

Chief Executive

Dr Sue Armstrong Brown

Bank Accountant Solicitor (charity) Auditors

Registered charity number (England and Wales)

HSBC, 29 Bowen Square, Daventry, Northamptonshire, NN11 4ER Crossley Third Sector, Star House, Star Hill, Rochester, Kent, ME1 1UX Anthony Collins Solicitors LLP, 134 Edmund Street, Birmingham, B3 2ES Moore Kingston Smith LLP, Devonshire House, 60 Goswell Road, London, EC1M 7AD 1160647

Registered charity number SC037892 (Scotland)

Company registration number 09454981 (England and Wales)

Registered address

11-12 Vantage Business Park, Bloxham Road, Banbury, Oxfordshire, OX16 9UX

Regional offices:

Northern Ireland Scotland Wales

63-75 Duncairn Gardens, Belfast, BT15 2GB Great Michael House, 14 Links Place, Edinburgh, EH6 7EZ Penh e v a d Studios, Penhevad Street, Cardiff, CF11 7LU

16

Adoption UK Charity Company Number 09454981

Structure, governance and management

Trustees

The trustees are responsible for Adoption UK Charity. As stated by the Charity Commission, their

responsibilities are to ensure the charity is carrying out its purposes for the public benefit, comply with the charity’s governing documents and the law, act in the charity’s best interests, manage the charity’s resources responsibly, act with reasonable care and skill, and ensure the charity is accountable. The trustees agree an outline plan and budget annually, and in December 2020 they also agreed a new strategic framework for the organisation.

In planning the activities, the trustees have had regard to the guidance on public benefit issued by the Charity Commission.

Trustees are appointed by existing trustees. The induction and training of trustees includes:

The governing documents of Adoption UK are our Memorandum and Articles of Association dated 24 February 2015 and the charity is constituted as a company limited by guarantee.

Leadership

Along with the trustees, Adoption UK has a number of senior leaders. Our Chief Executive is Dr Sue Armstrong Brown. Sue is supported by a Senior Leadership Team comprised of our Chief Operating Officer (Joel Sadler), Director of Services (Eleanor Haworth), Director of Public Affairs and Communications (Alison Woodhead), Wales Director (Ann Bell), Scotland Director (Fiona Aitken), Northern Ireland Director (EJ Havlin), Director of Membership (Rob Langley-Swain - left on 15 October 2021 ), Director of

Fundraising and Business Development (James Alterman – started 9 August 2021) who represent all areas of our work and are responsible for day-to-day decision making.

This includes appointing staff and decisions regarding expenditure – as long as staff appointments and expenditure are in-line with our strategy – budget, and delegated authority agreed by trustees.

Remuneration of senior staff is reviewed annually by the trustees as part of our budget setting and all staff roles are subject to independent salary benchmarking, by reference to charity sector information.

17

Adoption UK Charity Company Number 09454981

Advisory Boards

As part of our desire to engage with key stakeholders in the sector and other experts, we hold Advisory Boards in Scotland, Northern Ireland and Wales – although these have no governance or executive responsibility. Those who sit on these Advisory Boards advise staff and trustees on adoption sector needs and changes and how best to achieve our objective through our activities.

Risk management

The trustees and senior leadership team consider the risks to Adoption UK Charity on a regular basis, reflecting on internal and external changes, and assess whether existing practices, processes, systems and reporting mechanisms are effective and adequate to minimise risk and mitigate the impacts should risk events occur. The senior leadership team and trustees are informed about risk management using a risk register as a dashboard. Assessment of risk is also built into the development and ongoing monitoring of each service delivery programme. The main risks detailed in the register and our plans to manage them are:

Covid-19 impact

The charity continues to monitor and manage the potential wellbeing and Covid-19 impact health risks to staff, volunteers and our services, with most staff working from home since spring 2020. We have transformed how we work and deliver many of our services for families via video or audio channels. We expect to continue to offer virtual supports alongside any resumption of face-to-face activities. Our flexible and responsive approach to activities has allowed us to maintain existing grants and funding streams in most areas and also meant we were able to access additional funding during the first Covid lockdowns.

We have transformed how we work and now deliver many of our services for families via video or audio channels

Mission drift

Trustees regularly review the activities of the charity in the context of the values, purpose and mission of the organisation. In December 2020 we reviewed and restated our purpose to take us forward in line with our charitable purposes.

Loss of operational capacity

After several years of downsizing to achieve financial stability, the charity has grown over the last two years as we have built our delivery staff teams and strengthened our senior leadership team and board of trustees. This growth has enabled the expansion of our service provision and created a rise in income over that period. However, we are conscious of sector funding challenges and therefore are being careful not to expand beyond our current and forecast means – instead investing in areas of the business that will drive income growth.

Financial risk

Our reserves policy is to ensure that Adoption UK Charity has sufficient funds to meet its financial

commitments, to demonstrate that we are sustainable into the future, to ensure that we can manage future unforeseen financial difficulties, and to ensure that excessive funds are not held without any identifiable reason or for any unidentifiable purpose. This means that we have sought to hold between three- and six-months’ worth of operating costs as reserves – something we have been unable to achieve over the last six years. In 2018 trustees agreed to invest in key areas of the charity so we could position the organisation for sustainable growth and build resilience by growing our reserves position over the subsequent five years. This remains the policy and we have amended our reserves policy to take greater account of forecast income risks.

18

Adoption UK Charity Company Number 09454981

External factors

Our work is impacted by the continually changing landscape of fostering and adoption in the UK – as a result of legal precedence, government policy, legislative change and social work practice. We make sure we stay on top of what is happening and are creating an organisation that, while having a clear direction, remains agile so we can effectively respond to these changes. Our broad funding base is a vital factor in ensuring our resilience in an ever-changing landscape.

Governance and compliance

Adoption UK Charity is committed to meeting all of the requirements of the Charity Commission, Companies House, Care Inspectorate Wales, Ofsted and other relevant regulatory bodies. We are also committed to being a model of good practice in governance and regulatory compliance. We ensure we are aware of the impact of changes to legislation and guidelines and, as our activities develop, we actively check whether that introduces the need for us to comply with additional legislation or guidelines.

External changes

Along with most other charities and organisations operating in the adoption sector we are conscious of the risks and impacts that can emerge from legislative change and public funding decisions. We are proactive in not just horizon scanning, but in actively engaging with the UK and devolved governments to influence and drive change in the agenda. In order not to be overly reliant on a small number of government grants and local authority income, we continue to diversify our activities and income streams. We are also investing in strengthening our capacity and expertise to grow unrestricted funding and mitigating those risks.

We are proactive in not just horizon scanning, but in actively engaging with the UK and devolved governments to influence and drive change in the agenda

Health, safety and environment

As an employer and provider of services to the adoption community, we understand areas of risk including workload and working hours, travel/commuting, working environments, travel and manual handling. We aim to mitigate these risks through policies and guidelines, training, good line management and peer-topeer accountability.

Safeguarding

We have an approved safeguarding policy which is reviewed regularly and is part of the induction process. This is supported by a safeguarding lead and a contingent of safeguarding contacts to ensure 24-hour cover. There is an annual refresher of awareness training.

Adoption UK Charity Company Number 09454981

19

Financial review

Financial position at the end of March 2021

We are pleased to be able to report that 2020-21 was a positive year in which we significantly improved our financial position, despite the early challenges resulting from the impact of the pandemic and national lockdowns.

The turnover for the year ending 31 March 2021 was £3,070,970, expenditure being £2,867,774, resulting in an operational surplus of £203,196 for the period.

The charity’s restricted reserves position fell from £206,400 to £166,233 as we utilised reserves held for restricted grant funded work during the year, in line with the agreement of funders.

The total reserves position on 31 March 2021 was £495,386, of which £329,154 are unrestricted reserves. We have designated £62,000 for spend against specific projects in 2021-22, meaning that we have total free reserves of £267,154 at the year end.

Turnover for the year ending 31 March 2021

£3,070,970 expenditure being £2,867,774 resulting in an operational surplus of £203,196

Notable successes during the year included:

Reserves policy

Our reserves policy is to ensure that Adoption UK Charity has sufficient funds to meet its financial commitments, to demonstrate that we are sustainable into the future, to ensure that we can manage future unforeseen financial difficulties and to ensure that excessive funds are not held without any identifiable reason or for any unidentifiable purpose.

It is the trustees’ general view that the desirable level of free reserves is six months’ of operating cost, which in the 2020-21 year was approximately £558,000. We finished with £267,154 of free reserves. We plan to move to a risk-based reserves calculation to inform future levels and foresee that for 2021-22, the desirable reserves level would be approximately £665,000.

The trustees acknowledge that the charity’s reserves position at the end of the year included a commitment to repay three 2016 five-year loan notes of £10,000, £40,000 and £50,000, resulting in payment to the value of £118,679 (including interest) in October 2021. However, we have since been advised that the £50,000 loan note will be converted to an unrestricted grant and the charity has been gifted 10 per cent of the £40,000 loan note; this reduces our repayment commitment by 50 per cent. See note 20 in the notes to the financial statements for further information.

20

Adoption UK Charity Company Number 09454981

Fundraising

Our fundraising plans are approved by the trustees and monitored by the senior leadership team. Although our income (see more details below) is derived from a number of sources, a significant proportion of our income comes from grant giving trusts and foundations, as well as central government grants. In addition, we operate a subscription membership offer and we work in partnership with agencies and local authorities, who commission our services and support programmes. Our fundraising activities are primarily conducted by our staff team and volunteers – from time-to-time drawing on the expertise of advisors.

Our approach to fundraising

During the year, around 2.3 per cent of Adoption UK’s income was generated from our general fundraising activities – often thanks to individuals raising income at Adoption UK events or their own events and activities, the majority of which were run virtually in 2020-21 due to the pandemic.

We do not employ the services of any fundraising agencies or third parties, nor do we run telephone or door-to-door fundraising campaigns. Our relationship with our supporters is very important to us and the charity does not wish for them to feel under any pressure to donate to us.

We have a close relationship with our fundraisers and support them in delivering their events and complying with the relevant codes of practice. Where we work with commercial participators, contracts are exchanged so we can ensure compliance with the code of fundraising practice, applicable laws and adherence to best practice.

We received no complaints about our fundraising practices in the year to 31 March 2021, nor for the year ended 31 March 2020.

Fundraising practices

As part of our commitment to best practice, we adhere to the standards set by the Fundraising Regulator and the Institute of Fundraising. We aim to ensure that our fundraising is respectful, open, honest and accountable to the public. Adoption UK is registered with the Fundraising Regulator.

We have a clearly documented complaints procedure in place, enabling any concerns regarding our fundraising activities to be responded to quickly. During the year, there have been no instances of noncompliance with the requirements of the fundraising code of practice and no complaints have been received by the charity regarding fundraising activities.

Our fundraising policy clearly states the steps that should be followed to protect vulnerable people and ensure that anyone who wants to support the charity has the relevant capacity to make the decision to donate.

Going concern

Adoption UK responded well to the impacts of the pandemic in 2020, having already invested in key IT developments in 2019 which enabled more than 90 per cent of staff to immediately switch to working from home when the first lockdown occurred. Further investment during the year enabled all staff to work from home and to work flexibly to balance work needs and home pressures. These changes have made the charity more agile in its ways of working and were extended into 2021. Such an approach has allowed us to operate without needing to furlough any staff or make any pandemic-related redundancies, ensuring the retention of our highly experienced staff.

The charity also made significant strides in translating traditionally face-to-face services into online or digital offers. This enabled us to retain grant and contract income, as well as take advantage of new grant and adoption support funding to grow our membership and service provision during the year.

Adoption UK Charity Company Number 09454981

21

To support our increased service provision, new grant and contracted funding service areas, we recruited an additional 61 staff during the year – including 39 on flexible sessional contracts (17 full time equivalent staff). This increased number of flexible workers has enabled us to be more agile as an organisation and will allow us to respond better to our planned service growth during the next three years, as well as emerging funding and contract opportunities.

Our 22.5% income growth is testament to our planned capacity management and our investments in income generation, membership and service development

The 22.5 per cent income growth in the year ending 31 March 2021 and service development is testament to both our planned approach to capacity management and our investments in income generation, membership and service development over the past three years. It has meant that we have been able to respond to the changing circumstances, service and funding opportunities created by the pandemic.

The trustees approved a new three-year business strategy in December 2020 which will see the charity invest further in fundraising and membership to grow our unrestricted income and commit to growth in new and emerging service areas across the UK – including kinship care, adult adoptees and youth services. To support these development areas, the charity has committed to investing further in staff and volunteer development and retention. We have already put in place new performance management and recruitment and career pathways frameworks, and we are reviewing our digital, learning and development, volunteer management, ways of working and communications strategies, to ensure the organisation is equipped to deliver our new business strategy.

Our forecast income in 2021-22 is higher than last year’s achieved year end income and the organisation has both an active pipeline of income opportunities and a greater fundraising capacity than in recent years.

Most of the charity’s major grants and contracts run into 2022, 2023 or 2024, having already been secured during 2021, thus minimising major risks. We therefore entered 2021 with a significantly improved reserves position.

The Board of Trustees and the Finance and Scrutiny Committee each meet quarterly, where they review our progress against our budget and maintain an overview of our financial commitments, income, risks and pipeline.

Adoption UK Charity Company Number 09454981

22

Statement of the board’s responsibilities

The trustees (who are also directors of Adoption UK Charity for the purposes of company law) are

responsible for preparing the trustees’ annual report (including the strategic report) and the financial statements, in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial period that give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources – including the income and expenditure – of the charitable company for that period. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the charitable company. These records should also enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006, as amended by The Charities Accounts (Scotland) Amendment (No 2) Regulations 2014.

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. In so far as the board of trustees is aware:

The trustees’ annual report is approved by the trustees of the charity. The strategic report, which forms part of the annual report, is approved by the trustees in their capacity as directors in company law of the charity.

By order of the board of trustees on

and signed on its behalf:

Mike Rebeiro, Chair of Trustees

23

Adoption UK Charity Company Number 09454981

Inde pendent auditor’s report

To the trustees and members of Adoption UK Charity

Opinion

We have audited the financial statements of Adoption UK Charity (‘the company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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 in law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 financial statements section of our report. We are independent of the company 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 company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

24

Adoption UK Charity Company Number 09454981

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 17, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, the Companies Act 2006 and Section 151 of the Charities Act 2011 and report to you in accordance with regulations made under those acts.

25

Adoption UK Charity Company Number 09454981

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 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

26

Adoption UK Charity Company Number 09454981

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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; and to the charity’s trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, and in respect of the consolidated financial statements, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which 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 any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body for our audit work, for this report, or for the opinion we have formed.

Luke Holt (Senior Statutory Auditor)

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 60 Goswell Road London EC1M 7AD Date 24 November 2021

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

27

Adoption UK Charity Company Number 09454981

Statement of financial activities

(for the year ending 31 March 2021)

----- Start of picture text -----
Unrestricted Restricted Total Total
2021 2021 2021 2020
Notes £ £ £ £
Income from:
Donations and legacies 2 70,528 - 70,528 149,260
Charitable activities
External communications 59,251 - 59,251 65,013
Membership services 335,012 - 335,012 267,277
Adoption support services 758,493 1,832,704 2,591,197 1,980,842
Other trading activities 14,813 - 14,813 41,305
Investments 169 - 169 1,369
Total income 1,238,266 1,832,704 3,070,970 2,505,066
Expenditure on:
Fundraising 3 70,991 - 70,991 52,779
Charitable activities
External communications 3 338,607 - 338,608 291,585
Membership services 3 131,174 - 131,174 184,607
Adoption support services 3 445,825 1,881,177 2,327,003 1,744,381
Total expenditure 986,597 1,881,177 2,867,774 2,273,352
Net income for the year and net
4 251,669 (48,473) 203,196 231,714
movement in funds
Transfers between funds (8,306) 8,306 - -
Net movement in funds 243,363 (40,167) 203,196 231,714
Reconciliation of funds:
Total funds brought forward 85,791 206,400 292,191 60,477
Total funds carried forward 329,154 166,233 495,387 292,191
----- End of picture text -----

The company’s income and expenditure all relate to continuing operations. The company has no recognised gains or losses other than shown above. Movements in funds are disclosed in Note 14a to the financial statements. The accompanying notes form an integral part of these financial statements.

28

Adoption UK Charity Company Number 09454981

Balance sheet

(as of 31 March 2021)

----- Start of picture text -----
2021 2021 2020 2020
Notes £ £ £ £
Fixed assets:
Tangible assets 9 47,340 56,766
Intangible assets 17,806 29,935
65,146 86,701
Current assets:
Stock 2,702 2,217
Debtors 10 464,610 377,664
Cash at bank and in hand 597,031 223,012
1,064,343 602,893
Liabilities:
Creditors: Amounts falling due within one
11 (584,103) (282,343)
year
Net current assets 480,240 320,550
Total assets less current liabilities 545,387 407,251
Creditors: amounts falling due after one
12 (50,000) (115,060)
year
Total net assets 495,387 292,191
The funds of the charity:
Restricted income funds 166,233 206,400
Unrestricted income funds:
Designated funds 62,000 -
General funds 267,154 85,791
Total charity funds 14a 495,387 292,191
----- End of picture text -----

The accompanying notes form an integral part of these financial statements. The accounts on pages 2 8 to 43 were approved and authorised for issue by the Board of Trustees on and signed on its behalf by:

Mike Rebeiro, Chair of Trustees

Registered Company Number: 09454981

29

Statement of cash flows

(as of 31 March 2021)

----- Start of picture text -----
2021 2021 2020 2020
Notes £ £ £ £
Cash flows from operating activities
Net cash provided by operating activities 15 389,006 94,539
Cash flows from investing activities:
Dividends, interest and rents from
169 1,369
investments
Purchases of fixed assets (15,156) (71,881)
Net cash used in investing activities (14,987) (70,512)
Change in cash and cash equivalents in
374,019 24,027
the year
Cash and cash equivalents at the
223,012 198,985
beginning of the year
Cash and cash equivalents at the end of
597,031 223,012
the year
----- End of picture text -----

30

Adoption UK Charity Company Number 09454981

Notes to the financial statements

1. ACCOUNTING POLICIES

a. Statutory information

Adoption UK Charity is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address is 11-12 Vantage Business Park, Bloxham Road, Banbury, Oxfordshire, OX16 9UX.

b. Basis of preparation

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these financial statements. The financial statements have been prepared in accordance with the ‘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 (FRS102) including Update Bulletin 2, (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

c. Public benefit entity

Adoption UK constitutes a public benefit entity as defined by FRS 102.

d. Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. With current committed income streams and costs forecast up to 31 March 2023, trustees have approved a strategic business plan that incorporates service growth and fundraising plans.

In particular, the trustees have considered the impact of the coronavirus pandemic, reflecting on our experience to date and our successful transition to operate with 95 per cent of staff working from home and incorporating online models for services engagement into our broader service delivery models. Income grew by 22 per cent compared to the prior year and costs have been controlled, resulting in a healthy operating surplus. The charity did not make use of the furlough scheme during the year.

As of 31 March 2021, the charity had net current assets of £480,239 (2020: £320,550) and our unrestricted reserves rose to £329,154 (2020: £85,791), demonstrating our progress in improving our liquidity and growing reserves.

Trustees have considered forecasts and projections and based on the recent income growth, the increased level of reserves and our managed pipeline of additional income opportunities. They have concluded that there are no material uncertainties as to the charity’s ability to continue in operational existence for the foreseeable future. The charity continues to adopt the going concern basis in preparing the financial statements.

e. Income

Income is included in the statement of financial activities when the charitable company is entitled to the income, receipt is probable, and the amount can be measured reliably. Donations are accounted for when they are received. Unrestricted contract income is recognised in proportion to the work completed, receipts in advance of the provision of services of a specified service is deferred to future accounting periods, subject to the criteria for income recognition.

Adoption UK Charity Company Number 09454981

31

Income from government and other grants, whether capital grants or revenue grants, is recognised when the charitable company has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

f. Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

g. Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

h. Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charitable company is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Support and governance costs are reallocated to each of the activities on the following basis, which is an estimate, based on staff time, of the amount attributable to each activity.

Governance costs are the costs associated with the governance arrangements of the charitable company. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

i. Operating leases

Rental charges are charged on a straight-line basis over the term of the lease.

j. Tangible and intangible fixed assets

Items of equipment are capitalised where the combined purchase price exceeds £500. Depreciation and amortisation 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 their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation and amortisation are provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation and amortisation rates in use are as follows:

32

Adoption UK Charity Company Number 09454981

• Computer equipment Three years
• Systems development Four years
• Ofce equipment Four years
• Fixtures and fttings Five years
• Leasehold improvements Five years

k. Stocks

Stocks are publications stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks.

l. 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.

m. 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. Cash balances exclude any funds held on behalf of service users.

n. Creditors and provisions

Creditors and provisions are recognised where the charitable company 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.

o. Pensions

All qualifying employees are invited to join the charitable company’s defined contribution scheme. For those employees who are ‘opted in’ to the defined contribution scheme, the charitable company contributes a current equivalent of three per cent of gross salary into the scheme. The charitable company’s contribution is charged to the statement of financial activities in the financial year. The charitable company has no liability under the scheme other than for the payment of those contributions.

p. Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the trustees to have the most significant effect on amounts recognised in the financial statements:

33

Adoption UK Charity Company Number 09454981

2. INCOME FROM DONATIONS AND LEGACIES

----- Start of picture text -----
Unrestricted Restricted Total Total
2021 2021 2021 2020
£ £ £ £
Donations 64,699 - 64,699 145,778
Gift aid 5,829 - 5,829 3,482
Total 70,528 - 70,528 149,260
----- End of picture text -----

3. ANALYSIS OF EXPENDITURE (current year)

----- Start of picture text -----
Charitable activities
Adoption
External Membership support Governance Support 2021
Fundraising communications services services costs costs Total
£ £ £ £ £ £ £
-
Staff costs 45,678 177,971 66,720 1,656,415 136,457 2,083,241
(Note 5)
Other staff 298 926 315 42,122 298 9,494 53,452
costs
Trustees’ - - - - 13 - 13
meeting
expenses and
other costs
Online and - 44,095 - 1,660 - 169 45,923
publication
costs
Fundraising, 154 20,952 329 22,525 - - 43,960
events and PR
costs
Partnership, 1,500 254 6,299 65,822 - 598 74,472
groups and
training costs
Premises and 8,108 20,653 31,083 42,798 94 338,821 441,557
office costs
Professional 950 5,535 - 26,831 14,608 77,230 125,155
fees
56,688 270,386 104,746 1,858,173 15,013 562,768 2,867,774
Support costs 13,931 66,448 25,741 456,648 - (562,768) -
Governance 372 1,773 687 12,182 (15,013) - -
costs
Total
- -
70,991 338,607 131,174 2,327,002 2,867,774
expenditure
----- End of picture text -----

34

Adoption UK Charity Company Number 09454981

3a. ANALYSIS OF EXPENDITURE (prior year)

Charitable activities

----- Start of picture text -----
Adoption
External Membership support Governance Support Total
Fundraising communications services services costs costs 2020
£ £ £ £ £ £ £
Staff costs -
31,591 176,706 115,858 989,680 173,975 1,487,810
(Note 5)
Other staff costs 474 3,448 5,225 83,434 - 17,839 110,420
Trustees’ meeting
- - - - -
expenses and 5,762 5,762
other costs
Online and
98 19,305 5,724 8,781 - 10,264 44,172
publication costs
Fundraising,
events and PR 1,735 6,959 1,021 69,941 - 22,247 101,903
costs
Partnership,
groups and - - - 44,567 - 87 44,654
training costs
Premises and
-
7,266 15,896 16,151 155,528 177,206 372,047
office costs
Professional fees - 5,100 - 8,554 14,285 78,645 106,584
41,164 227,414 143,979 1,360,485 20,047 480,263 2,273,352
Support costs 11,150 61,600 39,000 368,514 - (480,263) -
Governance costs 465 2,571 1,628 15,382 (20,047) - -
Total
- -
52,779 291,585 184,606 1,744,381 2,273,352
expenditure
----- End of picture text -----

4. NET INCOME FOR THE YEAR

This is stated after charging:

This is stated after charging:
2021
£		 2020
£
Depreciation
40,666		 25,070
Operatinglease rentals:
Property
81,901		 87,463
Other
6,804		 10,834
Auditors’ remuneration(excludingVAT):
Audit
14,404		 14,995

35

Adoption UK Charity Company Number 09454981

5. STAFF COSTS, KEY MANAGEMENT PERSONAL COSTS AND TRUSTEE EXPENSES

Staff costs were as follows:

----- Start of picture text -----
2021 2020
£ £
Salaries and wages 1,664,084 1,196,855
Temporary/agency staff 242,689 164,303
Redundancy and termination costs 3,790 -
Social security costs 130,193 96,322
Employer’s contribution to defined pension schemes 42,285 30,074
Other forms of employee benefits 201 256
2,083,241 1,487,810
----- End of picture text -----

The following number of key management employees received employee benefits (excluding employer pension costs) during the year between:

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |No.|No.| |£60,000 - £69,999|1|1|

----- End of picture text -----

The total employee benefits including pension contributions of the key management personnel were £318,667 (2020: £368,038).

The trustees were not paid and did not receive any other benefits from employment with the charitable company in the year. No trustee received payment for professional or other services supplied to the charitable company.

Trustees’ expenses represent the payment or reimbursement of travel and subsistence costs totalling £644 (2020: £2,177).

6. STAFF NUMBERS

The average number of employees (head count based on number of staff employed) during the year was as follows:

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |No|No| |Fundraising|1.9|1.3| |External communications|5.4|6.0| |Membership services|4.0|4.6| |Adoption support services|103.9|44.3| |Support|3.8|3.7| |119.0|59.9|

----- End of picture text -----

Of the average number of employees listed, the average number of full-time equivalent staff was 19 (2020: 16).

Adoption UK Charity Company Number 09454981

36

7. RELATED PARTY TRANSACTIONS

There were no related party transactions during 2021 (2020: none).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

8. TAXATION

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

9. TANGIBLE FIXED ASSETS

Intangible
assets		 Ofce
equipment		 Computer
equipment		 Fixtures and
fttings		 Total
£ £ £ £ £
Cost or valuation
Balance brought forward 79,861 1,950 134,848 6,643 223,302
Additions inyear - - 15,156 - 15,156
Disposals inyear (3,404) (200) (60,382) (2,161) (66,147)
At the end of theyear 76,456 1,750 89,622 4,482 172,310
Depreciation
Balance brought forward 49,925 872 82,668 3,136 136,530
Charge for theyear 12,129 437 22,912 673 36,152
Eliminated on disposal (3,404) (33) (60,383) (1,769) (65,589)
At the end of theyear 58,650 1,276 45,197 2,041 107,164
Net book value
As of 31 March 2021 17,806 44,424 44,424 2,441 65,146
As of 31 March 2020 29,935 52,180 52,180 3,507 86,701

All the above assets are used for charitable purposes

10. DEBTORS

10. DEBTORS
2021
£		 2020
£
Trade debtors
319,845		 155,642
Other debtors
5,695		 21,880
Prepayments
24,494		 28,987
Accrued income
114,575		 171,255
464,610 377,664

37

Adoption UK Charity Company Number 09454981

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

11.
CREDITORS: AMOUNTS FALLING		 DUE WITH
2021
£		 2020
£
Trade creditors
19,147		 44,866
Taxation and social security
98,836		 28,166
Other creditors
11,455		 15,150
Accruals
92,900		 45,826
Deferred income
243,085		 148,335
Loan notes
118,679		 -
584,103 282,343

Loan notes were issued on 20 October 2016. These are unsecured loans, on a five-year agreement at fixed interest rate of five per cent.

12. CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR

12.
CREDITORS: AMOUNTS		 FALLING
2021
£		 2020
£
Loan notes
-		 115,060
Bounce back loan
50,000		 -
50,000 115,060

The ‘bounce back loan’ was awarded from the government-backed Covid-19 support loan scheme to help businesses impacted by the pandemic. This unsecured loan is repayable over five years at a fixed rate of two-and-a-half per cent interest.

13. DEFERRED INCOME

Deferred income comprises contracts, training and other income where the activity to deliver services funded by this income does not occur until the following year.

2021
£		 2020
£
Balance at the beginningof theyear
148,335		 271,212
Amount released to income in theyear
(148,335)		 (271,212)
Amount deferred in theyear
243,085		 148,335
Balance at the end of theyear
243,085		 148,335

38

Adoption UK Charity Company Number 09454981

14a. MOVEMENTS IN FUNDS (current year)

----- Start of picture text -----
On 31
On 1 April Income Expenditure March
2020 and gains and losses Transfers 2021
£ £ £ £ £
Restricted funds
National Lottery Community -
125,645 912,564 (871,976) 166,233
Fund (TESSA)
Department of Health: - 15,826 (16,282) 456 -
Northern Ireland
Department for Education: - - -
216,050 (216,050)
Covid Relief
Henry Smith: Wales - 16,350 (20,113) 3,763 -
Third Sector Grant: Wales - 185,541 (185,541) - -
Scottish Government:
- -
48,976 190,006 (238,982)
(FASD Project)
BBC Children in Need - 18,100 (18,100) - -
National Adoption Service: Wales 31,779 165,000 (196,779) - -
Robertson Trust - 10,000 (10,000) - -
R S MacDonald - 10,000 (10,000) - -
Waterloo Foundation - 10,000 (10,000) - -
Health and Social Care Board - 74,217 (78,304) 4,087 -
Halifax Foundation - 9,050 (9,050) - -
Total restricted funds 206,400 1,832,704 (1,881,177) 8,306 166,233
Designated funds
John Ellerman – - - -
50,000 50,000
to support social action work
50th anniversary celebration - - - 12,000 12,000
Total designated funds - - 62,000 62,000
Unrestricted funds
Fundraising - 70,528 (70,991) - (463)
Membership - 335,012 (131,174) - 203,838
Trading income including -
74,233 (338,607) (62,000) (326,374)
adoption support
Other including core grants - 758,493 (445,825) (8,306) 304,361
Other 85,791 - - - 85,791
Total unrestricted funds 85,791 1,238,266 (986,597) - 267,154
Total funds 292,191 3,070,970 (2,867,774) - 495,387
----- End of picture text -----

39

Adoption UK Charity Company Number 09454981

14b. MOVEMENTS IN FUNDS (prior year)

----- Start of picture text -----
On 1 April Income and Expenditure Transfers On 31 March
2019 gains and losses 2020
£ £ £ £ £
Restricted funds
- -
National Lottery Community Fund 982,004 (856,359) 125,645
– TESSA
Moondance - 13,818 (13,818) - -
- - -
Department of Health: 15,826 (15,826)
Northern Ireland
- - -
Henry Smith: Wales 32,200 (32,200)
- - -
Executive grant: Scotland 75,000 (75,000)
Third Sector Grant: Wales - 190,388 (190,388) - -
- - -
Hodge Foundation: Wales 2,500 (2,500)
Scottish Government - 157,000 (108,024) - 48,976
(FASD Project)
- -
National Adoption Service: Wales 165,000 (132,211) 31,789
Robertson Trust - 10,000 (10,000) - -
R S MacDonald - 10,000 (10,000) - -
Health and Social Care Board - 83,992 (83,992) - -
Halifax Foundation - 5,000 (5,000) - -
LGBT Grant - 3,200 (3,200) - -
Total restricted funds - 1,745,928 (1,539,518) - 206,410
Unrestricted funds
General funds 60,477 759,138 (733,824) - 85,791
Total unrestricted funds 60,477 759,138 (733,824) - 85,791
Total funds 60,477 2,505,066 (2,273,342) - 292,201
----- End of picture text -----

40

Adoption UK Charity Company Number 09454981

Purposes of restricted funds

National Lottery Community Fund (TESSA)

Funding to develop and deliver therapeutic education support services in adoption – a new approach to supporting adoptive families.

Department of Health: Northern Ireland

Partial funding for Adoption UK’s leadership of support services across Northern Ireland.

Department for Education Covid Relief Fund: England

Funding to support adoptive families during the Covid-19 lockdowns, through the provision of increased online information, advice and support – including education and home-schooling, webinars, social media engagement, online community activities and learning.

Henry Smith: Wales

Funding to provide adoption support services to all new adoptive families in Wales for the first 1,000 days of their family life.

Wales third sector grant

Funding to improve adoption support services across Wales and to articulate the service users’ voices to inform the work of the National Adoption Service.

Scottish Government (FASD project)

Funding for the development and provision of resources and support for families with children affected by fetal alcohol spectrum disorder.

BBC Children in Need

Funding to drive engagement with young people that will inform the development of youth support services for adopted children and young people.

National Adoption Service: Wales

Funding to support additional TESSA service provision to adoptive families across Wales and to fund Adoption UK’s children and young people support activities as part of the Wales Connected service.

Robertson Trust

Funding to support volunteer development in Scotland.

R S MacDonald

Funding to support community engagement work with the adoption community.

Waterloo Foundation

Funding for education development and online resources in Wales.

Health and Social Care Board

Funding to provide universal and community support services to adoptive families across Northern Ireland.

Halifax Foundation

Funding for Adoption UK’s office rent and associated costs in Northern Ireland.

Adoption UK Charity Company Number 09454981

41

Restricted Unrestricted
2021 funds funds Total
£ £ £
Fixed assets - 65,146 65,146
Net current assets 166,233 314,007 480,240
Longterm liabilities - (50,000) (50,000)
Total Funds 166,233 329,154 495,387
Restricted Unrestricted
2020 funds funds Total
£ £ £
Fixed assets - 86,701 86,701
Net current assets 206,400 114,150 320,550
Longterm liabilities - (115,060) (115,060)
Total Funds 206,400 85,791 292,191
2021
£		 2020
£
Net income for the reporting period
(asper the statement of fnancial activities)
203,196		 231,714
Depreciation changes
36,152		 25,070
Dividends, interest and rent from investments
(169)		 (1,369)
(Proft)/loss on the disposal of fxed assets
558		 -
Decrease/(increase)in stocks
(485)		 1,252
(Increase)/decrease in debtors
(86,946)		 (51,481)
Increase/(decrease)in creditors
286,700		 (110,647)
(Increase)/decrease in debt(cash movements)
(50,000)		 -
Net cashprovided byoperatingactivities
389,006		 94,539

Adoption UK Charity Company Number 09454981

42

16. ANALYSIS OF CHANGES IN DEBT

Other
On 1 April non-cash
On 31 March
2020 Cash fows changes 2021
£ £ £ £
Cash
223,012
374,019		 -
597,030
Loans fallingdue within oneyear
(115,060)		 -
(3,619)
(118,679)
Loans fallingdue after oneyear -
50,000		 -
50,000
Balance at the end of theyear
107,952
424,019
(3,619)
528,351

17. OPERATING LEASE COMMITMENTS

The charitable company’s total future minimum lease payments under non-cancellable operating leases are as follows for each of the following periods:

Property Equipment Property Equipment
2021 2021 2020 2020
£ £ £ £
Less than oneyear 27,139 14,337 32,378 14,778
One to fveyears 5,475 2,547 10,714 5,635
32,614 16,884 43,092 20,413

18. LEGAL STATUS OF THE CHARITABLE COMPANY

The charitable company is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

19. CAPITAL COMMITMENTS

There were no capital commitments not provided for in the financial statements (2020: none)

20. POST BALANCE SHEET EVENTS

After the financial year but before these financial statements were approved, the charity was made aware by the entity who issued the loan that a loan note of £50,000 had been agreed to be reclassified as an unrestricted grant. It was agreed by the entity who issued a second loan note of £40,000 that 10 per cent of the loan be converted to an unrestricted donation. Both loans are included within the creditors falling due within one year, having been reclassified as short-term creditors in the period.

43

Adoption UK Charity Company Number 09454981

Our vision is an equal chance of a bright future for every child unable to live with their birth parents. We work to secure the right support at the right time for the children at the heart of every adoptive and kinship care family.

Head Office

Units 11 and 12 Vantage Business Park Bloxham Road Banbury OX16 9UX

Phone 01295 752240 Email info@adoptionuk.org.uk

Scotland Office Gf2 Rooms 3 & 4 Great Michael House 14 Links Place Edinburgh EH6 7EZ

Phone 0131 202 3670 Email scotland@adoptionuk.org.uk

Wales Office Penhevad Studios Penhevad Street Cardiff CF11 7LU Phone 029 2023 0319 Email wales@adoptionuk.org.uk

Northern Ireland Office Adoption UK (at Groundwork) 63-75 Duncairn Gardens Belfast BT15 2GB Phone 028 9077 5211 Email northernireland@adoptionuk.org.uk

Adoption UK helpline 0300 666 0006 adoptionuk.org

twitter.com/adoptionuk

facebook.com/AdoptionUK

For details on any of our policies on confidentiality, data protection, child and vulnerable adult protection, equal opportunities and complaints procedures, please contact any of our offices.

Registered Charity No. 1160647 (England and Wales) Registered Charity No. SC037892 (Scotland) Adoption UK Charity is a company limited by guarantee Company Number 9454981