Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Annual Report and Financial Statements Year Ended 30 April 2021 Charity registration number.. 1161382 PKr FRANCIS CLARK Shared Ambition
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Contents Reference and Adminislralive Details Trustees, Report 2to9 Statement of Trustees. Responsibilities 10 Independent Examiner's Report Stal8menl of Financial Activities 121013 Balance Sheet 14 Notes to the Financial Statements 151026
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Reference and Administrative Details Chigf Executive Officer Mrs Elsbelh Hallam Charity Mr Ade Edwards (Chair) Ms Zoe Edwards Michael Hallam Ms Emma M¢Kay PO Box 164 PLYMOUTH Devon PL1 9EP co founder of Hugs Children's Cancer Trustees Princlpal Office Telephone . 01752 417736 Email .' enquiries@hugsfromhenry.co.uk Website.. w.hug8fr0rnhenry..Uk Charity Registration Number 1161382 Sollcitors Woollcombe Yonge 63165 Bretonside PLYMOUTH Devon PL4 OBD Francis Clark LLP Independent examiner North Quay House Sutton Harbour PLYMOUTH Devon PL4 ORA Indepgndent Examiner Page 1
Hugs Children's Cancer Charity {CIO) formerly known as Hugs From Henry Trustees, Report The trustees present the annual report together with the financial statements of the Charity for the year ended 30 April 2021. Trustees Mr Ade Edwards lappoinled 10 May 2021 } Ms Zoe Edwards Mr Ryan Jackson (resigned 22 June 20211 Michael Hallam Ms Emma M¢Kay Jade Nicholson (resigned 15 July 20201 (Chairl Mission Statement Hugs Children's Cancer charity (formerly Hugs from Henry) is a Plymouth based charity which helps families who have a child with childhood cancer Neuroblasloma, and supports local families with childhood cancer. Whether emotional support, making a memory or helping families keep in touch, Hugs Children's Cancer charity provides them with a pla to tum. Objectives and a¢tivitles The charity is a Charitable Incoporated Organisation ICIOI with its principal office in England. Hugs Children's Cancer Charity is a small non-governmental. non-political, non-religious charity estsblished in 2015. It is registered as a charity with the Charity Commission under registration number 1161382. The charity objectlves are as follows.. The relief of sickness and the preservation of health of children and young people suffering from Neuroblasloma or childhood cancer, in parbcular bul not exclusively by the provision of a respitelholiday home, and emolionaS support and the provision of group social events for them and their families. Fundralslng The ch3rily also runs a shop which sells second hand donated goods. provides an outlet for publicity material foT the charity and wllects donations for the general work of the charity.. Hugs Charity Shop 13-15 Th8 Broadway Plymouth PL9 7AU Telephone.. 01752 651025 Hugs Donation Slalion Sugar Mill Retail Park Plymouth PL9 7HT Page 2
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Trustees, Report Public beneflt The trLJslees confirm that they have complied with the requirements of sertion 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. What have we achieved this year In summary Hugs Children's Cancer Gharily has delivered the following activities for the public benefit which are in accord with our charitsble object5 and aims: During the Covid-19 pandemic, the charity stepped up and provided food parcels and cooked meals lo the most vulnerable lamilies with childhood cancer in our area. We also provided emergency grants of £50 to those Iravelling lo Bristol for treatment during this lime. Due to the complexities of lockdown and travel during the pandemic, Hugs also stepped in and provided overnight accommodation for a family who had been recently diagnosed. We worked with Plymouth City Council. who provided the charity with £1 Ok to support their Winter Grant Scheme. We used these funds lo provide vulnerable families with a £250 grant during the Covid pandemic. The respite home continues lo provide unique breaks for families affected with childhood cancer. Families aTe offered 7 days at the respite home FOC and are provided food shopping and gifts on arrival. The house has been invested into lo ensure that families have a relaxing break. The home now has a hot tub lo enhance the stays of the families who visit. Breaks have unfortunately been limited this year due lo the pandemic. Emotional support is provided through our CEO Elsbeth Hallam who speaks to many families nationally, providing one-lo-one advice and emotional support. Elsbeth also manages Iwo social media groups to support families with Neuroblastorna and Childhood cancer in Plymouth and Comwall. She also uses social media lo connect with families throughout the UK. We have provided emotional support and delivered 'care packs, lo the families affected by childhood cancer during hospital visits in Plymouth Derriford Hospital and Bristol Childr8n's Hospital. The care packs generally consist of small treats, toiletries and food vouchers for the family. We continue lo work closely with local entertainment businesses who visit Bristol Children's Hospital and Derriford Hospital to provide special entertainment and 'magic' lo the poorly children, many of whom have been in insolalion for long periods of time. Elsbelh has also carried out a number of individual vislts lo local families on request. This has been limited due to Covid over the last 24 months and Elsbelh has ensured that all precautions have been taken. Food delivery services such as Just Eat have been used for those in for hospital stays. We have again provided gifts al Christmas lo Derriford Hospital, Bristol Children's Hospital, CLIC House. Children's Hospic& South Wesl and Sl. Luke's Hospice. In 2020 we provided over 1,000 presents to children who were in hospital over Christmas. We also arranged visits Wlth local entertainers lo the hospitals. Due lo the pandemic, we were unable to visit the hospitals in person, however all gifts were distributed by the oncology team. We 81s0 provided Christmas hampers lo families in both the Plymouth and Trellske Hospitals. Page 3
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Trustees, Report This Easter we provided over 1,000 Easter eggs to Derriford Hospital. Our charity shop on Plymslock Broadway, Plymouth, is a significant and popular retail unil. It has been a challenging time with the closure of retail units dLJrin9 the pandemic however once opened it has continued lo be successful. During the year the charity look on a new unil lo accept donations lo 811ow us to process these safely. The retail sector has its own social media page which is increasing daily after the staff share donations on the page with the public. The page helps increase foottall and also connects collectors with the eharily. The shop is proving lo be profitable and a key asset for fundraising, advertising events and raising the charitys profile. Post year end In February 2022 the charity shut the donation station and look out a new lease at Sugar Mill for a larger donation station and allached retail unil for 3 period of six years. The charity commencing selling furniture and larger donated goods lo the public. A Retail Development Manager was appointed lo manage the set up and maximise income polenlial. Plans are also progressing to change the retail unil at Plymstock Broadway lo a larger one with the aim of increasing income from the sale of donated goods. Financial review Net income for the year was £25,550 12020.. net income £10,871). The balance held in unrestricted funds al 30 April 2021 was £130.11712020.' £102.4281 of which £92512020.. £1411 is represented by fixed assets and is not therefore readily available. The balance held on restricted funds al the year end was £149,274 {2020.. £151,413). Pollcy on reserves The trustees aim to maintain free reseNes al a level which equates lo approximately six months of unreslricled expenditure. The Iruslees Consider the CIO'S exposure lo major risks in terms of their likely impact on income sources and planned expenditure in the short lo medium term, as well as assessing the best way lo manage such risks. The unrestricted funds of the charity are held for the promotion of physical and mental health of sufferers of Neuroblastoma in the UK and to provide support and advice lo families of Children suffering from Neuroblasloma, At the year end free reserves were £129,192 which equates lo over len months of expenditure in the last financial year. Paga 4
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Trustees, Report Plans for future periods Our Vlslon we will continue lo provide respite to families with childhood cancer, those with Neuroblasloma nationally and locally with childhood cancer Iwithin the 'PL' areal. we will continue lo visit hospitals within the South Wesl to provide care packs and emotional support lo local families being treated in these areas. We provide emotional support over the phone or email for any family with neuroblastoma nationally. we continue lo provide our annual Children's Cancer Ball free of charge lo the local oncology children and their families. Although, due lo Covid-19 the 2020 and 2021 events were postponed. we will organise a group away day for families lo spend lime with other oncology families. we will continue to provide gifts al Christmas and Easter lo local hospitals. we will continue to provid8 cooked meals lo those in treatment and isolating due lo Covid-19. How do we fund our misslons7 The expansion of our retsil sector Fundraising events Sponsored runs, walks. skydives elc. Corporate sponsorship Grants Structure, governanee and management Nature of governlng document The trust is a registered charity (number 11613821, a charitable Incorporated organisalion ICIOI (number CE0039631 and is consliluled under IrLJSt deed dated 22 April 2015 in England and Wales. On 23 July 2020 the charity changed its name to Hugs Children's Cancer Charity Iformerly known as Hugs From Henry). If the CIO is wound up, the members of the CIO have no liability lo contrfbule to ils assets and no personal responsibility for settling ils debts and liabilities. Page 5
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Trustees, Report Recruitment and appointment of trustees The ctsnslilulion provides for a minimum of three trustees and there is no maximum. Every trustee musl be appointed by a resolution passed al a properly convened meeting of the charity Iruslees. In selecting individuals for appointment regard is given to skills, knowledge and experience. Trustees can serve until they either resign or their term ends without renewal. Overall responsibility for the management of the CIO is vested in the Iruslees. Our Iruslees are unpaid and detsils of trustee expenses are disclosed in the accounts. The charity will recruit additional twslees as and when required. Trustees must give one month's notice before resigning. Extension of terms will be agreed by the board. Arrangements for setting key management personnel remuneration The day lo day management of the charity is carried out by the CEO. Elsbeth Hallam, who receives remuneration from the charity for this service. The level of remuneration is sel by the Iruslees, after taking into account the size of the charity and is benchmarked against other charities in the local area. Organisational structure The board of trustees are clear about the charity's aim5 and ensures these are being delivered effectively and sustainably. As a small charity the board and individual trustees lake collective responsibility for ils decisions but the Chair provides leadership to the board and takes responsibility for ensuring the board has agreed priorities, appropriate structures and prosseS in place. The day to day running of the charity is handled by Elsbelh Hallam. She is guided by the trustees when needed, organises trustee meelings quarterly and also runs a messenger group lo ease communication between members. The majority of decisions are made by a quorum of three trustees where the financial sums involved ar8 in excess of £1,000. Trustees all provide regular voluntsry help with tasks where they have particular expertise. Elsbelh Hallam is also the family liaison officer for the charity. She has regular contact wllh families and ensures that she is available when needed for contact and visits. She organizes group events. food deliveries and general management of the respite home. The charity shop is run by volunteer. Rebecca Case. who has vast experience in retail. She organises the rotas, end of day takings and book keeping. She reports lo Elsbeth when needed. The shop has 4 employees who share hours over the open periods, they report lo Rebecca. The shop also has volunteers who donate their lime over the shop openings. Page 6
Hugs Children's Cancer Charity (CIO) fonnerly known as Hugs From Henry Trustees, Report Trustees Emma McKay Ichairl Emma is an 'Oncology Mum, who has a vast experience of care and Irealmenl for children with cancer from her own journey. Emma is a HR manager for a firm of solicitors. Michael Hallam Michael is enS father and co-founder of Hugs Childen's Cancer Charity. Mike is a professionally registered electrical design engineer and director of his own buiSding seryices business. He brings not only compassion and first-hand experience of caring for a child with cancer but al80 his professional experience and business acumen. Zoe Edwards Zoe is a nurse manager al a local GP practlC8 With vast nursing experience in primary and emergency care. Ade Edwards Ade is Head of Operation5 al a local charity which supports people with dnjg and alcohol rehabilitation. He brings years of experience in running a charity lo the board. Ryan Jackson Ryan has thirty years retail experience. recently working as the retail manager for the British Red Cross in the Southwest. Ryan stepped down as a Trustee in June 2021 and became our Retail Development M8nager in October 2021. Staff and Volunteers Ryan Jackson - Retsil Development Mananger15tart October 211 Rebecca Case- Volunteer Shop Manager Sharon Hallam - Shop Assistant Ipaidl Amy Lynn Shop Assistant Ipaidl (now departed) Andrew Richardson - Shop Assistant Ipaidl Lydia Whiting - Shop Assistant Ipaidl Claire Bryant - Shop Assistant Ip8idl (now departed) Helen Townsend - Shop Assistant Ipaidl Hayley Glanfield Shop Assistant Ipaidl Page 7
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Trustees, Report Risk Managernent All significant activities undertaken are subject to a risk review prior to implementation. Risks are assessed against their potential impact and likely effect on.. Operational performance Financial sustainability Achievement of our aims and objectives Meeting the expgclations of our beneficiaries I supporters Charity integrity We review these risks on an ongoing basis lo satisfy ourselves that adequate measures and procedures have been taken to manage the risks identified. Where appropriate rtain mitigations are taken such as insurance or OLJlside professional advice. All risks were highlighted and mitigation measures were taken. Legal advice was sought from GA Solicitors regarding employment contracts and Woollcombe Yonge regarding shop leases. as well as the combined expertise and experience from all of our trustees. Covld 19 and the charity The Covid-19 pandemic look the world by surprise with the fast pace in which it took hold. Hugs Children's Cancer charity was affected immediately, with the closure of our retail unit and postponement of our events between March 2020 and July 2020. Our staff were sent home and the unil was closed and all 4 shop staff were furloughed. Further closures have been enforced on the charity including the two week 'National Circuit Breaker in November 2020 and a further National lockdown between January 2021 and March 2021. During the lockdown periods all of our fundraising income stopped, Including the income from people who had planned personal fundraisers and challenges. Throughout the period the charity has stepped LJP and supported those vulnerable and shielding families in our community. We did this by providing cooked meals delivered lo people's houses. food parcels and where needed vouchers for those in treatment. Funding has been of a major concern to the charity throughout this period, with the charity postponing large scale events and having already paid substantial deposits from last year. we needed to find support to keep us going. Unfortunately our shop rent was not decreased and therefore we paid in full during the lockdown periods. we have however been able to benefit from the government's business rates relief and grants. This depleted quickly so we fell immense pressure to open when safe lo do so. We also tried lo bring sales online in 2020 to help with funding, these continued until September 2021 when we agreed that they were not generating enough funds. Page 8
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Trustees, Report The respite home has been Closed during the national lockdown pariods and after completing all 88fely checks and ensuring that the home was covid safe, we were able lo open the doors again in August 2021 to our first family. Our annual children's cancer ball ha5 been postponed until 2022 due lo safely concerns and group events 81 this time. Our plans for an away day in the summer was side lined but we hope to organise something in 2022. The charity has been successful in obtaining a grant frorn the National Lottery and CAF. We have also launched a crowd funder with Aviva Community Funding. We worked with Plymouth City Council wlh the Winter Grant Scheme lo provide money and vouchers lo th8 most vulnerable in the Plymouth area. Golng concern After making appropriate enquiries and due consideration. the trustees have a reasonable expe¢lation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Th nnual re alf by: rt was approved by the trustees of the charity on 2Z and signed on its Ide Edwards (Chair) ee Trij Page g
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Statement of Trustees, Responsibilities The trustees are responsible for preparing the trustees, report and the financial statements in accordance with the United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements. the trustees are required to.. select suitable accounting policies and then apply them consistently.. observe the methods and principles in the Charities SORP-, make judgements and estimates that are Teasonable and pnjdent; slate whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in Ihe financial statements., and prepare the financial statements on the going concern basis unless il is inappropriate lo presume that the charity will continue in business. The Iruslees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any lime the financial position of the charity and enable them to ensure that the financial slalements comply with the Charities Act 2011. the applicable Charities (Accounts and Reports) Regulations, and the provisions of the conslilub"on. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charitls website in accordance with legislation in the United Kingdom 9overning the preparation a dissemination of financial statements. App oved b e trustees of the charity on 24. ., and signed on its behalf by.. de Edwards (Chair) Trustee Pag8 10
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Independent Examiner's Report to the trustees of Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry I report lo the charity trustees on my examination of the accounts of the charity for the year ended 30 April 2021 which are sel out on pages 12 to 26. Respective responsibillties of trustees and examlner As the charity's trustees of Hugs Children's Cancer Charity ICIO} formerly known as Hugs From Henry you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 I'the Acl'}- I report in respect of my examination of th8 Hugs Children's Cancer Charty ICIOI formerly known as Hugs From Henry's accounts carried out under section 145 of the 2011 Act and in ¢arrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515}Ibl of the Act. Independent examiner's statement I have completed my examination. I confirm Ihal no material matters have come to my attention in connection with the examination giving m& cause to believe that in any material respect: 1. accounting records were not kept in respect of Hugs Children's Cancer Charity ICIOI formerly known as Hugs From Henry as required by section 130 of the Act.. or 2. the accounts do not accord with those r8cords', or 3. the accounts do not comply with the accounting requirements conceming the fomi and content of accounts sel out in the Charitles IAccounts and Reports) Regulations 2008 other thall any requirement that the accounts give a 'true and fair view which is not a matter considered as part of an indep8ndenl examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts lo b8 reached. DQLL( Duncan Leslie Independent examiner FCA North Quay House Sullon Harbour PLYMOUTH Devon PL4 ORA 0810312022 Date........... Page11
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Statement of Financial Activities Year Ended 30 April 2021 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Total 2021 Unrestricted Restricted Note Income and Endowments from: Donations and legacies Other Ir8ding adivilies Investment income 111,512 52.044 38 5,000 116,512 52,044 38 Total Income 163,594 5,000 168,594 Expenditure on: Raising funds Charitable activities 160,2411 70.490 {60,241 } 82,803 12,313 Total Expenditure Nel incomellexpendilurel Gross transfers beleen funds Nel movement in funds Reconciliation of funds Total funds brought forward Tolal funds carried forward 130,731 12,313 143,044 32,863 5,174 17,3131 5,174 25,550 27,689 12.1391 25,550 102,428 151,413 253,841 17 130,117 149.274 279,391 Total 2020 Unrestricted Restricted Note Income and Endowments from.. Donations and legacies Other trading activities Investment income 51,236 92,776 147 1,550 800 52.786 93,576 147 2.350 146,509 Total Income 144,159 Expenditure on.. Raising funds Charitsble activities 153,5441 158,078 153.5441 82,094 24,016 Total Expenditure Net incomellexpenditure) Gross transfers between funds Net movement in funds 111,6221 24,016 {135,638 32.537 {10,633 121,666} 10,633 10,871 21,904 111,033) 10,871 The notes on pages 15 to 26 form an integral part of the58 finanal statements. Page 12
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Statement of Financial Activities Year Ended 30 April 2021 {Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Total 2020 Unrestricted Restrlcted Note Reconciliation of funds Total ftjnds brought forward Total funds caThied forward All of the charity's activities derive from continuing operations during the above Iwo periods. The funds breakdown for 2021 and 2020 is shown in note 17. 80,524 102,428 162,446 151.413 242,970 253,841 17 The notes on pages 15 to 26 form an int8gr81 part of these f1nancial statements. Page 13
Hugs Children's Cancer Charity (CIO) fomierly known as Hugs From Henry Balance Sheet 30 April 2021 2021 2020 Note Flxed assets Tangible assets Current assets stocks Debtors Cash at bank and in hand 12 149,249 150,004 13 14 216 12,370 94.011 106,597 12,847 120,895 133,742 Creditors: Amounts falling due withln one year Net eurrent asset$ 15 130,142 279.391 103,837 253,841 Net assets Funds of the charlty.. Re$trided income funds Restricted funds Unrestricted income funds Unrestricted funds Totsl funds 149,274 151.413 130,117 279,391 102,428 253,841 17 nc atements on pages 12 to 26 were approved by the trustees, and authorised for issue and signed on their behalf by.. on de Edwards (Chair) stee The notes on pages 15 to 26 form an integral part of Ihese financial statements. Page 14
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 l Accounting policies statement of compllance The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Ststement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102118ffective 1 JanLJary 2019) - (Charities SORP IFRS 10211, and the ChaTlties Act 2011. Basis of preparatlon Hugs Children's Cancer Charity ICIOI formerly known as Hugs From Henry meets the definition of a public benef l entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless olheNise ststed in the relevant accounting policy notes. Covtd- 19 and Golng Concern The Covid-19 pandemic took the world by surprise with the fast pace in which il look hold. Hugs Children's Cancer charity was affected immediately, with the closure of our retail unil and postponement of our events between March 2020 and July 2020. Our staff were sent home and the unil was closed and all 4 shop staff were furloughed. Further closures have been enforced on the charity including the two week 'National Circuit Breaker in November 2020 and a fvrther National lockdown bebNeen January 2021 and March 2021. During the lockdown periods all of our fundraising income slopped, including the income frorn people who had planned personal fundraisers and challenges. Throughout the period the charity has stepped up and supported those vulnerable and shielding families in our community. We did this by providing cooked meals delivered lo people's houses, food parcels and where needed vouchers for those in treatment. Funding has been of a major concern to the charity throughout this period. with the charity postponing large scale events and having already paid substantial deposits from last year. we needed to find support to keep us going. Unfortunately our shop rent was not decreased and therefore we paid in full during the lockdown periods, we have however been able lo benefit from the governmenl,s business rates relief and grants. This depleted quickly so we fell imrllense pressure to open when safe to do so. We also tried lo bring sales online in 2020 to help with funding, these continued until September 2021 when we agreed that they were not generating enough funds. P8ge 15
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 The respite home has been closed during the national lockdown periods and after completing all safety checks and ensuring that the home was covid safe, we were able lo open the doors again in August 202110 our first family. Our annual children's Cancer ball has been postponed until 2022 due to safely conc8rns and group events al this lime. Our plans for an away day in the summer was side lined but we hope to organise something in 2022. The charity has been successful in obtaining a grant from the National Lottery and CAF. We have also launched a crowd funder with Aviva Community Funding. We worked with Plymouth City Council with the Winter Grdnl Scheme to provide money and vouchers lo the most vulnerable in the Plymouth area. Going concern After making appTopriale enquiries and due consideration. the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial ststements Judgements and key sources of estimation uncertainty In the appplicalion of the charity's accounting policies, which are described in this note, the trustees are required lo make judgements, estimates and assumptions about the carrynng vlaue of assets and liabilities that are not readily apparent frorn other sources. The eslimales and underlying assumptions are based on historically known factors and experience. Therefore. the trustees do not perceive there to be any critical areas of judgement or kèy sources of estimation uncertainty in the formulation of the financial statements. Income and endowments Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is re¢ognised when the charity has enlillemenl to the income, il is probable that the income will be received and the amount can be measured with sufficient reliability. Donations and legacles Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured. Government grants Government grants are recognised on the accrual model and are measured at the fair value of Ibe asset received or receivable, Grants are classified as relating either lo revenue or lo assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating lo asset8 are recognised over the expected useful lrfe of the asset. Where part of the grant relating to an asset Is deferred, it is recognised as deferred income. Page 16
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 Other tr8ding activities Shops income Money raised from the charity shops is recognised on receipt. Expenditure l expenditur8 is recognised On there Is a legal or constructive obligation lo that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated lo the applicable expenditure heading that aggregate similar costs to th81 category. Where costs cannot be directly 8ttribut8d to particular headings they have been allocated on a basis consistent with the use of resources. Raising funds These are costs incurred in attracting voluntary income and those incurred in trading aclivi118S that raise funds. Charitable activlties Charitable expenditure comprises those costs incurred by the charity in the delivery of its acb"vilies and services for its beneficiaries. 11 includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Grant expenditure Grant5 awarded to recipients are recognised as expenditure once the award is communicated to beneficiaries. Support costs Support costs include central functions and have been allocated to activity cost categories on a basis consislÈnl with the use of resources. Governance costs These include the c081s attributable lo the charitvs compliance with constilulional and statutory requirements, including independent examination, strategic management and trustees, meetings and reimbursed expenses, Taxation The charity is considered lo pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from tsxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Tax31ion of Chargeable Gains Act 1992. to the extant that such income or gains are applied exclusively to charitable purposes. Tangible flxed assets Individual fixed assets are initially recorded al cost. less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Page 17
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 Depreciation and amortlsatlon Depreciation is provided on tangible fixed assets so as to write off the cost or valuation. less any estimated residual value, over their expected useful economic life as follows: Depreciation mgthod and rate not depreciated 20/0 straight line 250/0 Straight line 33Yo straight line Asset class Freehold land Freehold property Furniture and equipment Computer equipment Stock Stocks are valued at the lower of cost and net realisable value. Donated goods sold in chaTlty shops are valued al zero cost. Fund structure Unreslricled income funds are general funds that are available for use at the trustee5' discretion in furtherance of the objectiv8s of the charity. Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose. Financlal instruments Classification The charity holds the following financial instruments.. Short term other crediors Cash and bank balanS All financial inslruemnts are classified as basic. Recognitlon and measurement The charity has chosen lo apply the recognition and measurement principles in FRS102. Financial instruments are recognised when the charity becomes party lo the contractural provisions of the instrument and derecognised when in the case of the assets, the contractural rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred lo another Party, or in the case of liabilities. when the charitls obligations are discharged, expire or are cancelled. Page 18
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 2 Income from donations and legacies Unrestricted General fund Totsl 2021 Total 2020 Restrlcted Donations and legacies., Donations from individuals Grants. including capital grants.. Grants from companies National Lottery Covid assistance Covid 19 assistance Local Authority Covid 19 assistsnce Furlough income 29,773 29,773 32.786 5.000 5,000 10,000 25,000 10,000 25,000 20,000 29,465 17.274 29,465 17.274 111,512 5,000 116,512 52,786 3 Income from other tradlng activlties Unrestricted General fund Total 2021 Total 2020 Trading income. Sale of goods Events income., Other events income Sponsorship income Property rental income 55,699 42,316 42.316 30,291 6,010 1.576 7,442 7,442 2,286 52,044 2,286 52,044 93,576 4 Investment Income Unrestrlcted General fund Totsl 2021 Total 2020 Interest receivable and similar income., Interest receivable on bank deposits 38 38 147 Page 19
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 5 Expenditure on raising fund$ al Costs of trading activltigs Unrestricted General fund Total 2021 Total 2020 Fundraising trading costs., Publicity Shop running expenses Lolleries and competitions Shop stsff costs 1,700 32,108 853 18,883 35,455 35,455 24,786 60,241 24,786 60,241 53,544 6 Expenditure on charltable activities Activity undertaken directly Activity support costs Total 2021 Total 2020 Event sales Donations and gifts Respite home costs Direct staff costs Insurance Travel costs stationary and admin Sundries Depreciation Support costs Governance costs 1.833 17,667 12.652 24,489 1,368 1,581 3,583 566 7,309 1,833 17.667 12,652 24,489 1,368 1,581 3,583 566 7,309 7,915 3,840 17.176 5,580 13.350 23,985 1.274 2,735 1.753 992 5,822 6,639 2,788 82,094 7,915 3,840 71,048 11.755 82,803 Pagè 20
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 7 Analysls of governance and support costs Support costs allocated to charitable activities other support osts Total 2021 Total 2020 Basls of allocation 200/0 1000 Direct staff costs Legal and professional 6,122 1,793 7,915 6,122 1,793 7,915 5,996 643 6.639 All support costs are unrestricted expenditure12020'. all unrestricted). Governance costs Unrestrict8d General fund Total 2021 Total 2020 Independent examiner's fees 3,840 3,840 2.788 3.840 3,840 2.788 All governance costs are unrestricted expenditure12020'. all unrestricledl. 8 Net Incomlngloutgolng resources Net incoming resources for the year include.. 2021 2020 Depreciation of fixed assets 7,309 5,822 9 Trustees. remuneration and expenses Other The founder, who Is also considered to be the Charitys key management is married to one of the trustees. Remuneration received is disclosed in note 10. No trustees, nor any persons connected with them, have received any remuneration from the charity during the year other than as disclosed in note 19. During the year five twstees received a Christmas hamper amounting lo £25 each. No trustees received any reimbursed expenses or any other benefits from the charity during the year12020'. nil}. Page 21
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 10 Staff costs The aggregate payroll costs were as follows.. 2021 2020 staff Costs during the year were: Wages and salaries 55,397 48.864 The monthly average number of persons (including senior management leaml employed by the charity during the year was as follows.. 2021 2020 No No Full and part time employees No employee received emoluments of more than £60.000 during the year. The total employee benefits of the key management personnel of the charity were £32,216 12020 £32.238). 11 Taxatlon The charity is a registered chanly and is therefore exempl from tax8tion. 12 Tanglble flxed assets Land and Furniture and bulldlngs equipment Computer equipment Totsl Cost Al 1 May 2020 Additions 150,974 10.143 5.174 3,689 1,380 164,806 6.554 150,974 15,317 5,069 171,360 At 30 April 2021 Depreciation Al 1 May 2020 Charge for the year At 30 April 2021 Net book value 6,038 3,019 5,081 3.829 3.683 461 14,802 7.309 22.111 9,057 8,910 4,144 925 149,249 At 30 April 2021 At 30 April 2020 141,917 6,407 144,936 Page 22 5.062 150,004
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 13 Stock 2021 2020 216 stocks 14 Debtors 2021 2020 Prepayments Other debtors 12,370 477 12.370 12,847 12,370 15 Creditors.. amounts falllng due within one year 2021 2020 3.600 2.760 Accruals 16 Obligations under leases and hire purchase contracts Total future minimum lease payments under non•canLIable operating leases are as follows.. 2021 2020 Land and buildings Within one year 600 11,250 Page 23
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 17 Funds Balance at 30 April 2021 Balance at 1 May 2020 Incoming Resources resourcos expended Transfers Unrestricted funds General Unrestricted fund 130,117 102.428 163,594 (130,7311 15.174} Restrlctèd funds Hugs Children's Cancer Charity - respite property and furniture Boxing event CAF funding Total restrlcted funds 149,863 1,550 16.7131 1600) 5,0001 5,174 148,324 950 5,000 151,413 12,313 5,174 149,274 Totsl funds 253.841 168,594 (143,044 279,391 Balance at 30 April 2020 Balance at 1 May 2019 Incoming Resources resources expanded Transfers Unrestrlcted funds General Unrestrided fund 80,524 144.159 {111,6221 110,6331 102.428 Restricted Hugs Children's Cancer Charity fund Hugs Children's Cancer Charity - re8Plte property and furniture Respite home launch Boxing event Total restrlGted funds 10,633 7,164 117,7971 149,863 155,282 15.4191 {8001 800 1,550 1,550 162,446 2,350 24,0161 10,633 151.413 Total funds 242,970 146,509 135,6381 253,841 Page 24
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 Restricted Funds Hugs Children's Cancer Charity respite property and furniture fund - this fund relates to a holiday home purchased lo provide respite for the sufferers of neuroblastoma and other childhood cancers and their families. DLJring th8 year assets costing £5.174 were purchased and a depreciation charge of £6,713 has beer) made, this leaves a closing balanc8 of £148,324. Boxlng event fund - last year the charity received £1,550 from Itec Connect towards the costs of holding a boxing event. Due to the COVID 19 pandemic this event has not yel taken place. During th8 year £600 was returned lo the donor and the balance of £950 will be carried forward towards future costs of the event which is planned lo be res¢heduled. CAF grant - durin9 the year the charity received £5,000 towards Core funding. this amount has been fully sp8nl during the year. 18 Analysis of net assets betW9en funds Unrestricted funds General Total funds at 30 April 2021 Restricted funds Tangible fixed assets Current Sssels Current liabilities 925 132,792 3,600 148,324 950 149,249 133,742 3,600 149,274 279,391 Total net assets 130,117 Unrestrlcted funds General Total funds at 30 April 2020 Restricted funds Tangible fixed assets Current assets Current liabilities 141 105,047 2,760 149,863 1,550 150.004 106,597 2,760 253,841 Total nel assets 102,428 151,413 Page 25
Hugs Children's Cancer Charity (CIO) formerly known as Hugs From Henry Notes to the Financial Statements Year Ended 30 April 2021 19 Related party transactions Related party transactions During the year 6nded 30 April 2021 the charity paid £8.63812020.. £8,567} to a close family member of Michael Hallam (Trustee) for employment as a shop assistant in the Hugs Children's Cancer charity shop. As disclosed in note 9, the founder, who is also the charills key management is married lo Michael Hallam. Remuneration is disclosed in note 10. There were no other related party transactions during the year which require disclosure. Page 26
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