Hugs Children's Cancer Charity (CIO) Annual Report and Financial Statements Year Ended 30 April 2023 Charity registration number". 1161382
Hugs Children's Cancer Charity (CIO) Contents Reference and Adrninistralive Details Trustees, Report 2109 Statement of Trustees. Responsibilities 10 Independent Examinerfs Report Slalemenl of Financial Activities 121013 Balance Sheet 14 Notes lo the Financial Ststernents 15to24
Hugs Children's Cancer Charity (CIO) Reference and Administrative Details Chlef Executiv8 Officer Mrs Elsbelh Hallam Charity Mr Ade Edwards Ichairl Ms Zoe Edwards Michael Hallam Kelly Heauey Victoria Reeve PO Box 164 PLYMOUTH Devon PL1 9EP co foundtrr of Hugs Children's Cancer Tru$toes Principal Office Telephone .' 01752 651880 107812 346019 Email . enquiries@hugsfromhenry.co.uk Websitè.. www.hugslromhenry.co.uk CharSty Registration Number 7161382 Soll¢ltors Nash & Co Beaumont House Beaumont Park PLYMOUTH Devon PL4 98D GA Solicitors Gillakasler House 25 Lockyer Street PLYMOUTH PL1 2QW Independant Examiner Francis Clark LLP Independent examiner Melville Building East Unit 18 23 Royal William Yard PLYMOUTH Devon PL1 3GW Page 1
Hugs Children's Cancer Charity {ClO) Trustees, Report The Iruslees prestsnl the annual report together with the financial statements of the charity for the year ended 30 April 2023. Trustees and officers The Iruslees and officer5 serving during the year and since the year end were as follows.. Mr Ade Edwards (Chair) Ms Zoe Edwards Michael Hallam Kelly Healley Victoria Reeve (appointed 14 January 20241 Trustees.. Chief Executive offir.. Mrs ESsbelh Hallam Charity co founder of Hugs Children's Cancer Misslon Stat¢ment Hugs Children's Cancer charity is a Plymouth based charity which helps families who havtslhad a child with Childhood cancer. Whether emotional support, making a memory or helping families keep in touch, Hugs Children's Cancer charity provides them wth a place lo tum. Obje¢tlves and actlvltles 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-polili¢al, non-religious charity established in 2015. 11 is registered as a charity with the Charity Commission under registration number 1161382. The charity objectives are as follows.. Th& relief of sickness and the pr&servalion of health of children and young people suffering fro Neuroblastoma or childhood cancer, in particular but not exclusively by the provision of a respilelholiday home. and emotional support and the provision of group social events lor them and their families. To provlde relief of sickness and the preservation ol h8allh of children and young people suffaring wlth childhood cancer. in particular with the provision ol group social events. Page 2
Hugs Children's Cancer Charity {ClO) Trustees, Report (continued) Fundraising The charity runs two charity shops which sell second hand dDnated goods. provides an outlet for publicity material for the charity and collects donations for the ggngral work of the charity.. Hugs Childrens Cancer Charity donation unil 1-3 Unil, Sugar Mill Retail Park Plymouth PL9 7HT Hugs Childrens Cancer Charity shop The Broadway PIyTnslock Plymouth PL9 7AU Telephone. 01752 651880 Public benefit The trustees confirm that they have complied with the requiremenis of section 17 of the Charities Act 2011 to have due regard lo 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 Charity has delivered the following activities for the publlc benefit which are in accord with our charitable objects and aims.. The respite home continues lo provide unique breaks for families affected wth childhood cancer. Families are offered 31517nighls al the respite home free of charge. The house has been invésted into lo ensure that farnilies have a relaxing break. including a privatè hol lub and pagoda, new board games and books and entertainmenl channgls such as Disney, Paramount and Sky. Emotional support I Peer lo peer support is provided through our CEO Elsbelh Hallam who speaks to many families nationally, providing one lo one advi¢e and emotional 5UPPOrt. Elsbelh also manages social media groups to support families with ¢hildhood canr in Plymouth, Cornwall and now Exeler. Elsbelh uses social media lo connect with families throughout the UK as a reach out service. Her information is also given to newly diagnosed families alongside a voucher. We have provlded emotional support and delivered "care packs" lo the families affected by childhood cancer during hospital visits lo Plymouth Derriford Hospital, Bristol Children's Hospital. Treliske and more recently Royal Devon and Exèter Hospitals and London's GOSH and UCLH. The care packs genèrally consist of small Ireals, loilelries and food vouchers for the family. Elsbeth has also carried out a number of individual visits to local families on request. Page 3
Hugs Children's Cancer Charity {ClO} Trustees, Report (continued) We have again provided luxury Hampers and gifts al Christmas to Derriford Hospital, Bristol Children's Hospital, Royal Devon and Exeter Hospita1 and Royal Comwall Hospital and hand delivered to families in the comrnunity induding our bereaved families. Our charity shops continue to be our main fundraiser for the charity. 11 has become a Community in itself with regular customers. volunteers and ils own social media platform run by our retail manager, Ryan Jackson. The retail provides job opportunity but also volunteering tc) adults with leaming difficulties. As a result of opening the new shop and the charity moving illlo a larger unil on the Broadway income from the charity shop5 has more than doubled this year from £164k to £346k. costs havè increased from £138k to £240k. The charity returned ID organlzing group events and coffee mornings for families including the popular family away days to popular sights around the country. This year we have taken two groups to the Harry Potter experience, provided zoo visits and coffee mornings al Ihe Egg drop in Plymslock and at Jump childrens play area. Our biggest family away day will be Longleat in November in which we have applied for a National Lottery grant. We have employed a charity fundraiser lo focus solely on bringing in the vital funds needed to run the charity. We hope to expand this team as our charity grows. Use of volunteers W& are lucky to be supported by 30 regular volunteers over both the shopping units. Our retail manager, Ryan, actively encourages supporting people in the community with learning difficulties to work in the units. We also have a number of volunteers who will also help al events, for example the charity balls often sees part volunteers relum to support the charrty in raising funds IhroLJgh raffles and bucket Collecting. Volunle8rs continue to be the lifeblood of the charity, a donation of lime really makes a massive differen lo (he amount of money we Can raise. Finan¢lal revlew Net exp?nditLJre for the year was £32,810 12022.. nel expendilure £29,024). The balance held in unreslricled funds at 30 April 2023 was £72,235 12022.. £108,7511 of which £4.886 12022: £4701 is represented by fixed assets and is not therefore readily available. The balance held on restricted funds at the year end was £145,32212D22-. £141,616). Policy on re5erYes The Iruslees aim to maintain free reserves al a level which equates lo approximately six months of unreslri¢led expenditure. The Irijstees consider the CIO'S Èxposure lo major risks in terms of their likely irnpacl on income sources and planned expenditure in the short lo medium term, as well as assessing the best way to manage such risks. The unreslricled funds of the charity are held for the promotion of physical and mental health of sufferers of Neuroblastoma in the UK and lo provide support and advi lo families of children suffering from Neuroblasloma. Al the year end free reservos were £67,349 which equates to 2 months of expenditure based on the last financial year. The Irusl&es are mindful that the reserves policy is not being mel and ale looking at ways lo 5ncrease shop and event income going forward. Page 4
Hugs Children's Cancer Charity {ClO) Trustees, Report (continued) Plans for future periods Our Vision We TMII continue lo provide respite lo families with childh¢)od cancer, in treatment. post treatment and lo those who have been bereaved by childhood Gancer. There is currently no limit on lime when this support ends as we feel childhood cancer is a long term (Jiagnosis and has lasting effecls on not only the Child with cancer bul the whole family. The home ¢ontinues lo be open all year. We will continue to visit hospitals within the South Wesl lo provide care packs and emotional support lo Ioc81 families being Irealed in these areas. W$ provide emotional support over the phone or email for any family with neuroblasloma nationally. We hope moving into 2024 that this will increase as fundraising pressLJras are taken off OLJr CEO, Elsbeth, with the new fundraiser. We will continue lo providg our annual Children's Cancer Ball free of charge to the local oncology ¢hildren and their families. * We will organize various group away days throughout the year for fainilies lo spend lime with other oncology families, encouraging communication and support in thè oncology community. We hope lo incréase the away days from 2 8 year to 3 or 4 a year. We will continue to provide gifts and hampers al Christmas lo local hospitals. We are happy lo have expanded this year lo support all of Devon and Cornwall's main children's departments with these in 2023. We will continug lo provide cooked meals lo those in tatMent when requested. Vouchers and car8 packs will hopefully grow as the chaiily fundraising grows. How do w¢ fund our mission$7 Charity Shop Fundralsing events Sponsored runs. walks, skydives elc. Corporate sponsorship Grants from National grant givers ie National Lollery. Comic relief, Red nose day, Global Make Some Noise, Sl James Place Structure, governance and management Nature of governlng document The trust is a registered charity (number 11813821, 8 charitable nCOrporated organisalion ICIOI (number CE0039831 and is consliluted under trust deed dated 22 April 2015 in England and Wales. On 23 July 2020 the charity changed its name lo Hugs Children's Canc8r Charlly (formerly known as Hugs From Hgnryl. If the CIO is wound up, the members of the CIO have no liability lo contribute to its assets and no personal responsibility for settling its debts and liabilities. Page 5
Hugs Children's Cancer Charity (CIO) Trustees, Report (continued) Recruitment and appointment of trustees The constitution provides for a minimum of three trustees and Ih&re is no maximum. Every trustèe musl be appointed by a resolulitsn passed at a proptrrly convened meeting of the charity trustees. In selecting individuals for appointment regard is given lo skills, knowledge and experience. Trustees an serve until they either SIgn or their terrn ends wilhoul renewal. Overall responsibility for the management of the CIO is vested in the trustees. Our trustees are unpaid and details ol trustee expenses are disclos8d in the accounts. The charity will re¢nJil additional trustees, as and when requir8d by invilalion. Trustees musl oive one month's noti befo resigning. Extension of terms will be agreed by the board. The charily will b8 advertising for a new member lo join the Iruslee board in 2023. Arrangements for setting key managementpersonnel remuneratlon The day lo day management of the charity 15 Carried out by the CEO, Elsbelh Hallam, who receives remLJneration Iiom the ch8rily for thi5 service. The level of remuneration is sel by the Iruslees, after taking into account the siz8 of the charity and is benchmarked against other Charities in the local area. Organi5ational slru¢ture The day lo day running of the ¢harily Is handled by Elsbeth Hallam. She is guided by the trustees when needed, organises trusltrè meetings quarterly and also tuns a Whatsapp group to ease communication beeen members. The majority of decisions are mado by a Quorum of three Iruslees where the finan¢ial sums involved are in excess of £1,000. Trustees all provide regular voluniary help with tasks where they have particular expertise, Elsbelh Hallam is also thè family liaison officer for the charity. She has regular ¢ontacl with families and ensures that she is available when needed for contact and visits. She organises group events, food deliveries and general mana9emenl of the respile home. The charity shop is run by Ryan Jackson, our retail development manager of both units. INilh a vast experience of the retail s&¢lor. he is a key part of our fundraising mission IhrDugh the shops. Ryan is dedicated to making a difference to not only the local community bul lo also the environment. being the first charity shop in Plymouth lo recycle all plastics, he is keen on ensuring as little goes to landfill as possible and that recy¢ling of all items is done where possible. This stands Hugs in great slttad as we move IDrward into a more environtnentally friendly fijlure. Page 6
Hugs Children's Cancer Charity (CIO) Trustees, Report (continued) Trustoes Ade Edwards Ade works a5 a senior manager within a drug and alcohol charity in Plymouth and has worked exclusively in the third sector for the last 20 years. Ade bring5 knowledge and undersianding of how charities operate, their legal fmmework and financial underpinnings to ihe board of trustees of which he is currently chair. Michael Hallam Michael is HenWs father and CO•founder of Hugs Children's Cancer Charfly. Mike Is director of Expedite Building Services, with over 13 years of electrical engineering experience. He has experience of running large nLJmbers (>f staff and projects. He brings the knowledge from work lo the Charity bul most crilically the knowledge of being a lather in the pediatri¢ oncology field. Zoe Edwards Zoe has been a long standing support lo Hugs from ils conception in 2015. Zoe is a registered nurse with over 20 years experience, she brings her wealth of medi¢al knowledge and practice nurse experiell lo the Board. Kelly Heatlèy Kelly first started al Hugs as a volunteer helping raisg thousands and being a part if the original prid8 ol Plymouth fundraising teams. Kelly brings this experience lo the Board of Trustees and is pivotal in fundraising ideas and campaigns. Staff Ryan Jackson - Retail Development Manager Hayley Glanfield - Shop Assistant Jaqueline Young Shop Assistant Helen Townsend - Shop Assistant Sharon Hallam - Shop assistant Amy Lynn Shop A5sislanl Andrew Richardson - Shop Assistant Claire Johnson Shop Assistant Kalh Harvey - Shop Assistant Linda Spottiswood Shop Assistant Zoe Smith - Shop Assistant Shaun Chin Van Driverldelivery and pick up Page 7
Hugs Children's Cancer Charity (CIO) Trustees, Report (continued) Rlsk Management All significant acliwlies undertaken are subject lo a risk review prior to implementslion. Risks are assessed against their polential impact and likely effect on.. Operallonal perfomiance • FinancAal sustainability Achievement of our aims and objective5 Meeting the expectations of our beneficiaries I supporters Charity inlegrity We review these risks on an ongoing basis to satisfy ourselves that adequate measures and procedures have been taken io manage the risks identified. Where appropriate certain mitigations are taken such as insurance or outside professional advice. Prior lo implementation all risks were highlighted and miligalion measures were takan. Legal advi¢e was sought by GA Soll¢ilors regarding employment contracts and Nash & Co regarding shop leases, as well as the combined expertise and experioncg from all our tru51e¢s. A staff handbook has been written by our solicitors GA Soliotors and provided lo all staff as a part of our ongoing risk management. Going concern After making appropriate enquiries and due consideration, the Iruslees havè a reasonable expectation that the Charity has adequate resources ID continue in operational existen for the foreseeable ftJlLJre. For this reason. they continue lo adopt the going ¢oncem basis in preparing the financial slal&ments. The charity uses social media tools lo promote events and expand its social media presence. Collection lins have continued lo be ulilised and increased acros5 the city, these are being monitored by Sharon Hallam. The charity has joined the Business Network Intemalion81 IBNII, a networking group that drives those in the group lo raise funds for Ihe charity. We also are part of the Devon and Plymtsulh Chamber increasing our presence in the city and gaining corporalg SUPPDrt. Increased capacity at both shops has led lo increased funds being raised and post year end the charity invested in a van for house clearances. Our retail Manager Ryan continues lo find the best rates for recycling ilems not sold. With many plans in place, the trustees consider th8 charity has a posllive way forward. P8ge 8
Hugs Children's Cancer Charity {ClO) Trustees, Report (continued) 2023.2024 and onwards We have an exciting few years ahead for our charity giving elements and these include the following., A renovallon of the RgSPlt8 home, including changing tha bottom bathroom lo w&1 room to make Ihe home more disability friendly. We will be applying lo various grant giving chari11os for support in this process. Farnily away days are always very popular events in Ihe hugs calendar and we hope lo expand on the amount of these we do each year. Thgse give families th& ability lo do a fun day out free of cost, bringing the family unil together bul also giving families the ability lo speak lo olhors who are going through similar circumstances. In 2022-2023 we organi5ed a trip lo Harry Potter studios, Paignlon zoo anLI Longleal safari festival of lights. Next year we would like to offer families a trip to a local altraclion, a theme park, a possible London trip and back lo Longle8t at Christmas. All planned events are based on amount fundraised. The children's cancer ballldisw will be taking placa in 2024 èxpanding to allow for mora people lo attend. Future fundraising With the excAling start of a fundralser at the charity. we look fomard to expanding our fundraising lolals in 2024. We are excited lo hold our Strictly Hugs dancing ball again in 2024. This wll be the 6th year we have organized and has become a fim) f8vorile with our patrons. We hope lo raise upwards of £1 Ok al this event. Our Christmas event this year was held at the Boringdon Park and golf club and was a wonderful festive community event. Ws hops to organis8 this event again in 2024 and explore other events in this locab'on. We wll be hosting a couple of large scale corporate events throughout the year. hoping lo raise upwards of thirty thousand pounds. We will be holding a Silent disco event this year and hope to raise beeen £2-£3k. We will also look lo hire out the equipment lo raise funds. We have applied for various grants nationally to help the charity on its missions including the away days and we hope that this will help in funding more events. The annual re If by.. ort was approved by the trustees of the charity on 0610212024 and signed on its Mr Tr Edwar lee Page 9
Hugs Children's Cancer Charity (CIO) Statement of Trustees, Responsibilities The trustees are responsible for preparing the trijstees. report and the financial statements in accordance with the Uniled Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable lo Charities requires the truslegs to prepare financial slalements 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 resource5 of the ¢harity for that period. In preparing Ihese financial stslemenls. the trustees are required lo.. select suitable accounting policies and then apply them ¢onsistenlly', observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent; slate whether applicable accounting standards have been followed, subject to any rnalerial departures disclosed and explained in the financial slalements.. and prepare th$ financial slalemenls on the going concem basis unless it is inappropriate lo presume that the charity will ¢ontinue in business. The trustees are responsible for keeping proper accounting records that disclose with rea50nablè accuracy al any time the financial position of the charity and enable Ih8m lo ensure that the financial slalemenls cornply with th& Charities Act 2011, the applicable Charities IAccounts and RepDrtsl Regulations, and the provisions ol the conslilution. The trustees are also responsible for $8leguarding the assets of the charity and hence lor taking reasonable steps for the prevention and del8Ction of fraLJd and other irregularities. The trustees are responsible for the maintenance and integrity ol the corporate and financial information inclu d on the charitable companls website. Legislation governing the preparation and dissemination o ancial statements may drffer from legislation in other jurisdictions. ved by ruslees of the charity o 0610212024 and signed on ils behalf by.. Mr e Edwards (Chair) ee Page 10
Hugs Children's Cancer Charity (CIO) Independent Examinerfs Report to the trustees of Hugs Children's Cancer Charity (CIO) I report lo the trustees on Tny examination of the accounts of Hugs Children's Cancer Charity ICIOI for the year ended 30 April 2023. Responsibilities and basls of raport As the charity trustees of Hugs Children's Cancer Charity ICIOI you a responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 I'the Act'l. I report in rfispect of my examination of the Hugs Children's Cancer Charity ICIOI'S accounts carried out under section 145 of the 2011 A¢t and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission ijnder section 1451Sllbl ol the Act. Independent examiner's statement Since Hugs Children's Cancér Charity ICIOI'5 gross income ex¢èedèd £250.000 your examiner musl be a membgr ol a body listed in section 145 of the 2011 Act. I confirm that l am qualified lo undertake the examination because l am a meTnber of FCA, which is one of the listed bodies. I have completed my examination. I confirm that no material matters have come lo my attention in connection with the examination giving mg cause to believe that in any malgrial respect.. 1. accounting records were not kept in respect of Hugs Children's Cancer Charity ICIOI as required by section 130 of the Act., or 2. the accounts do not accord with those records.. or 3. the accounts do not comply with the accounting requiremonts concerning the form and conlenl of accounts sel out in the Charities (Accounts and Report51 Règulalions 2008 other than any requirement that the accounts give a 'true and fair view, which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection wth tha examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts lo be reached. DC£1 Duncan Leslie Independent examiner FCA Melville Building East Unit 18 23 Royal Williaffl Yard PLYMOUTH Devon PL1 3GW Dale.. 1310212024 Page11
Hugs Children's Cancer Charity (CIO) Statement of Financial Activities Year Ended 30 April 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Total 2023 Unrestri¢t&d Rastrlcted Note Incorne and Endowments from: Donaty'ons and legacies Charitable activities Other trading a¢tivilies Investment income 17,287 3,524 345,670 72 8,150 25,437 3,524 345.670 72 Total Income 366,553 8,150 374,703 Expenditure on.. Raising ILJnds Charitable activities {240,3861 162,683 1240,3861 167,127 Total Expenditure 1403.069 4.444 1407,513 Net movement in funds 136.5161 3,706 132.8101 Raconclllatlon of funds Total funds brought forward 108.751 141,616 250.367 Total ILJnds Carried fonard 17 72,235 145,322 217.557 The notes on pages 15 10 24 form an integral part of th8se financial 5tat8ffl8nts. Page 12
Hugs Children's Cancer Charity (CIO) Statement of Financial Activities Year Ended 30 April 2023 (continued) (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Total 2022 unStrICted Re$tricted Note Income and Endowments from.. Donations and legacies Charitable activities Other trading activities Investment incon)e 51,2SO 4,098 1e4,216 51,250 4,D98 163,916 13001 Total In¢omg 219,570 300 219,270 Expendlture on: Raising funds Charitable activities 1138,2271 103,359 1138.2271 1110.067 16,7081 Total Expenditure 1241,5861 16,7081 248,294 N&1 expenditLJre Gross transfers between funds 122,0161 650 17,0081 6501 129,0241 N81 movement In funds 121,3661 17.6581 {29,0241 Reconciliation of funds Total funds brought forward 130,117 149,274 279,391 Total funds carried forward 17 108,751 141,616 250,367 All of the charity's adivilies deriv& from continuing operations during the above two periods. The funds breakdown for 2023 and 2022 is shown in note 17. The not8s on pag8s 15 lo 24 form an int8gral part of these financial statements. Page 13
Hugs Children's Cancer Charity (CIO) Balance Sheet 30 April 2023 2023 2022 Notè Flxed a$sets Tangible assets 142,058 142,086 Current assets Debtors Cash al bank and in hand 14 11,224 73,475 14,597 97,644 84,699 112,241 Cr*dltors: Amounts falllng du& wlthin one year 15 9,200 3.960 Nat current asset5 75.499 108,281 Net assets 217,557 250,367 Funds of the charity: Restricted Income funds Reslricled funds 145,322 141,616 Unrestricted in¢ome funds Unreslricled funds 72,235 108,751 Total funds 17 217,557 250,367 The financial st on 10212024 ements on pages 12 to 24 were approved by the trustees. and aulhorised for issuo nd signed on their behalf by". Mr Tr Edwards I hairl sl The notgs on pagès 15 to 24 lomi an int8gral part of these financial stat8rnents. Page 14
Hugs Children's Cancer Charity {ClO) Notes to the Financial Statements Year Ended 30 April 2023 1 Accountlng policies statement of compllance The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Slalemenl of Recommended Pr8¢1i¢e applicable lo charities preparing Iheir ac¢ounts in 8cCordan with the Financial Reporting Standard appli¢able in the UK and Republic of Ireland IFRS 1021 leffective January 20191 and the Charities Act 2011. Ba$1$ of preparatlon Hugs Childien's Cancer Charity ICIOI meets Ihe definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under Ihe historical cost ¢onvenlion with items re¢ognised al cost or transaction value unless otherwise slated in the relevant notes to these accounts. Going ¢on¢ern After making appropriate enquiries and due ¢onsideralion, the Iruslees have a rèasonable expectation that the charity has adequate resources lo ¢onlinuè in opèrational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial 51alements The charity uses social media tools lo promote events and èxpand its social media presènce. Collection bns continue lo be ulilised and increased across the clty and these are monitored by Sharon Hallam. The Charity has joined the Business Network International IBNII. a neOrn9 group that drives those in the group to raise funds for the charity. We also are part of the Devon and Plymouth Chamber increasing our prgs8nce in the city and gaining corporal8 SUPF)Ort. Increas8d capacity al both shops has led lo increased funds being raised and post year end the charity invested in a van for house clearances. Our retail manager Ryan continues lo find the best rates for recycling items not sold. With many plans in plac8, the Iruslees consider the charity has a positive way forward. Page 15
Hugs Children's Cancer Charity (CIO) Notes to the Financial Statements Year Ended 30 April 2023 (continued) Judgements and key sources of estlmatlon uncertalnty In the appplication of the charity's accounting policies, which are described in this note. the Iruslees are required lo make judgements, estimates and assumptions about the carryng vlaue of assets and li8bililies that 8re not readily 8pparenl from other sources. The estimates and underlying assumptions are based on historically kni)wn factors and experience. Therefore, the Iruslees do not perceive thor8 lo be any critical areas of judgement or key sources of eslirllalion uncertainly in the formulation of the rinancial statements. Income Donations and legacigs Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured. Government grants Governrnenl grants are recognised on the accrual model and are measured al the fair value of the asset received or receivable, Grants are classrfied as relatillg either lo revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected usefLJI life of the assel. Where part ol the grant relating lo an asset is deferred. it is r8cognis$d as deferred income. other trading activities Money raised from the charity shops is recognised on recelpl. Expendlture All expenditure is recognised once there is a legal or constructive obligation lo that expenditure. il is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs lo Ihal category. Where costs cannot be directly attributed lo particular headings they have been allocated on a basis consistent with the use of resources. Ralslng funds These are Costs incurrod in attracting voluntary incomo and thos8 incurred in trading activities that raise funds. Charitable activitios Charitsble expgndilure ¢omprisgS those costs incLJrred by the charity in the deliv&ry of its activities and services for ils beneficiaries. 11 inGludes both costs that Can be allo¢aled directly to such a¢livilies and those costs of an indirect nature necessary to SUPPOrt Ihefft. Support costs Support costs include central functions and have been aSlocal8d lo activity cost categories on a basis Consistent with the use of resources. Page 16
Hugs Children's Cancer Charity (CIO) Notes to the Financial Statements Year Ended 30 April 2023 (continued) Governance ¢o$ts These include the costs attributable lo the charivs compliance with conslitulional and statutory requirements, including independent examination, strategic management and Iruslees. meetings and reimbursed expenses. Taxation The charity is considered lo pass the tests sel out in Paragraph I Schedule 6 of the Finance Act 2010 and th¢refore it meets the definition of a charitable company for UK corporation lax purposes. Accordingly, the Gharity is potentially exempt from taxation in respect of income or ¢apitsl gains received wlhin categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the exlenl that such income or gains are appligd exclusively lo charitable purposes. Tangible lixed assets Individual fixed assets are initially recorded al cost, less any subsequent a¢¢umulaled depreciation and subsequent accumulated irnpairmenl losses. Depreciation and amortisation Depre¢ialion is provided Dn tangible fixed assets so as lo write off the cost or valuation, Igss any eslimaled residual value, over their expe¢ted Ljseful economic life as follows.. Asset clas$ Freehold land Freehold property Furniture and equipment Computer equipment Depreclatlon method and ratg not depreciated 20A slraighl line 250/0 slmight line 330A straight line Stock Slo¢ks are valued al the lower of cost and net realisable value. Donated goods sold in charity shops are valued al zero cost. Fund structurè Unrestricted income funds are general funds that are available for use at the trustee5' discretion in furtherance ol the objectives of the charity. Restricted income funds are those donalecl for use in a particular area or for specific purposes. the use of which is restricted to that area or purpose. Financial instruments Classrfication The Charity holds the following financial inslrumenls.. Short term other creditors Cash and bank balances All financial instruments ar6 classified as basic. Page 17
Hugs Children's Cancer Charity (CIO) Notes to the Financial Statements Year Ended 30 April 2023 (continued) Re¢ognltlon and measurement The Charity has chosen lo apply the re¢ognition and measurement principles in FRS102. Financial instruments are recognised when the ¢harity becomes party lo the contraclLJral provisions of Ihtr inslrutnenl and derecognised when in the cas& ol Ihe assets, the conlraclural rights lo cash flows fro the assets expire or substantially all the risks and rewards of ownership are transferred to another party. or in the case of liabilities, when the charivs obligations are discharged, explre or are cancelled. 2 Income from donatlons and legacies Unrestricted General fund Total 2023 Total 2022 Reslrl¢ted Donations 8nd lega¢ies', Donations from individuals Grants, including capital grants. National Lollery Funding National Lottery Covid asslslance Local Authority Covid 19 assistance 17,287 17,287 33,958 8.150 8,150 10,000 7,292 17,287 8,150 25,437 51,250 3 Income from charitable activities Unrestricted G•n•ral fund Total 2023 Total 2022 Non-investmenl propety rental in¢ome 3.524 3.524 4,098 4 In¢ome from other trading actlvltl•$ Unrestricted Ganeral fund Total 2023 Total 2022 Trading income- Sale of goods Events income., Other events incorlle 312,955 312.955 130,476 32,715 32,715 33,440 345,670 345,670 163,916 Page 18
Hugs Children's Cancer Charity (CIO) Notes to the Financial Statements Year Ended 30 April 2023 (continued) 5 Investment income Unrestricted General fund Total 2023 Total 2022 Interest receivable and similar income.. Interest re¢8ivable on bank daposits 72 72 6 Expendlturo on raising funds al Costs of tradlng actlvltles Unrestrlctsd General fund Total 2023 Total 2022 Fundraising trading costs.. Publicity Shop running expenses Shop staff Costs 7,224 108.416 124,745 7,224 108,416 124,746 2,785 72,440 63,002 240,386 240,386 138,227 7 Expenditure on charitable a¢tlvltiè$ Activity undertaken dlrectly Actlvlty support cost5 Total 2023 Total 2022 Event costs Donations and gifts Respite home costs Direct staff costs Insurance Travel costs ststionery and admin Sundries Depreciation Support costs Governance costs 38,884 16.216 23,444 29,306 2,151 14,926 5,468 3,529 6.890 38,884 16,216 23,444 29,306 2,151 14,926 5,468 3.529 6,890 15,289 11,024 20,398 6,971 21,541 26,876 1,410 2,447 5,229 1.306 7.163 12,766 3.960 15,289 11,024 140,814 26,313 167,127 110,067 Page 19
Hugs Children's Cancer Charity (CIO) Notes to the Financial Statements Year Ended 30 April 2023 (continued) £162,683 12022.. £103,359) of the above expenditure was unreslricled and £4,444 12022.. £6,708) restricted in nature. 8 Analysls of govemance and support costs Support costs allocated lo charitable activitles Other support costs Total 2023 Total 2022 Basis of allocation 2001. 100V. Direct 51aff c051s Legal and professional 7.327 7.962 7,327 7,962 1 S,289 6,719 6.047 15,289 12.766 l support costs are unrestricted expendilure12022'. all unreslricledl. Govornance costs Unrestricted General fund Total 2023 Total 2022 Independent examlner fees Examination of the financial statements Accounlan¢y Ljnderprovided Other fees paid lo Indendent Examiner Other fees unprovided 5,500 1,800 1,900 1,824 5.500 1.800 1.900 1.824 3.960 11,024 11,024 3.960 I govemance costs are unrestriclgd expenditure12022.' all unreslrictedl. 9 N&t outgoing resources Nel outgoing resources for the year include.. 2023 2022 Operating leases- other assets Depreciation of fixed assets 73,926 6.890 31.937 7.163 Page 20
Hugs Children's Cancer Charity (CIO) Notes to the Financial Statements Year Ended 30 April 2023 (continued) 10 Trustees. remuneratlon and expenses The founder, who is also considered to be the Charity's key rnanagemenl is married lo one of the trustees. Remuneration receiv¢d is disclosed in note 11. No truslees. nor any persons connected with them, have received any remuneration from Ihg charity during the ygar other than as disclosed in note 19. No trustees received any reimbursed 8xp&nses or any other benofils from the charity during the year12022.. none}. 11 Staff costs The aggregate payroll costs were as follows.. 2023 2022 Staff costs durlng the year were: Wages and salaries 161,379 96,597 The monthly average number of persons lincluding senior managgmgnt tgaml employed by tho ¢harily during the year wa5 as follows- 2023 No 13 2022 No Full and part time ernployees No employee received emoluments of more than £60,000 during the year. The lolal employee benefits of the key management personnel of the charity were £36,63312022 £33,595). 12 Taxation Thg charity is a registered charity and is therefore exempl from taxation. Page 21
Hugs Children's Cancer Charity {ClO) Notes to the Financial Statements Year Ended 30 April 2023 {continued) 13 Tanglble fixed assets Land and Furniture and building5 equipmènt Cofflputer aquipmont Total Cost Al 1 May 2D22 Additions 150.974 15,317 3.419 5,069 3,443 171,360 8,862 AI 30 April 2023 150,974 18.736 8,512 178,222 Depreciation At 1 May 2022 Charge for the year 12,076 3,019 12.599 2,280 4.599 1,591 29.274 6,890 AI 30 April 2023 15,095 14,879 6,190 36.164 Net book value At 30 April 2023 135,879 3,857 2,322 142.058 AI 30 April 2022 138,898 2,718 470 142.086 14 Debtors 2023 2022 Prepayments Other debtDrs 11,224 14.170 427 11,224 14.597 15 Creditors: amounts falllng due within one year 2023 2022 Accruals 9,200 3,960 16 Obllgatlon$ under leases and hiro purchasè contracts Total future minimum lease payments under non-cancellable operating leases are as follows.. 2023 2022 Land and buildings Within one year Between one and five ygars 62,734 94,929 62,734 157,663 157,663 22D,397 Page 22
Hugs Children's Cancer Charity {ClO) Notes to the Financial Statements Year Ended 30 April 2023 (continued) 17 Funds Balance at 1 May 2022 In¢oming resources Resources axpendèd Balance at 30 April 2023 Unrestricted funds General Unrestricted fund 108,751 366,553 1403,0691 72,235 Rostrlctèd funds Hugs Children's Can¢er Charity - respilts property and fumilure National Lollery funding 141,616 {4,4441 137,172 8,150 8,150 Total restrl¢ted funds 141.616 8,150 14,444 145,322 Totsl funds 250,367 374,703 407.513 217.557 Restrictèd Funds Hugs Chlldren's Cancer Charity resplte property and furniture fund this fund relates lo a holiday horne purchased lo provide respite for the sufferers of neur(Iblastoma and other childhood cancers and (heir families. The value of assets brought forward was £141,616, 8 depciall0n charge of £4,444 has been made this year, leaving a closin9 balance of £137,172. National Lottery funding during the year the charity received £8,150 towards a trip lo Longl8al Safari Park for families. These funds have been carried forward towards the future cost of the trip scheduled for Novgmber 2023. Balance at 30 Aprll 2022 8alance at 1 May 2021 In¢orning Resourcos resources expended Transfers Unréstrlctod funds Ggngral Unre51ricted fund 130,117 219,570 1241,5861 650 108,751 Restricted Hugs Children's Cancer Charity - rtsspile property and furniture Boxing event 148,324 16,7081 141.616 300 6501 Total restrictod funds 149,274 1300} 6,708 16501 141,616 Total funds 279,391 219.270 248,294 250,367 Page 23
Hugs Children's Cancer Charity (CIO) Notes to the Financial Statements Year Ended 30 April 2023 (continued) 18 Analysls of net assèts between funds Unrestricted funds General Total funds at 30 April 2023 Restrl¢ted funds Tangible fixed assets Currenl assets CuTrenl liabilitiès 4.886 76,549 9,2DOI 72,235 137.172 8,150 142,058 84,699 9,2001 Total nel assels 145,322 217,557 Total funds at 30 April 2022 Unrestricted Gen&ral fund RestTl¢ted funds Tangible fixod assets Current assets Current liabilities 470 112,241 3,9601 108,751 141,616 142,086 112,241 13,9601 250,367 Tot81 net assets 141.616 19 Related party transaction5 During the year ended 30 April 2023 the charity paid £1,350 {2022.' £6.7851 lo a close family rnernber of Michael Hallam ITrusteel for employment as a shop assistant in Ihg Hugs Children's Canr charity shop. As disclosed in note 9, the founder, who is also the ¢haritls key management is married lo Michael Hallam. Remuneralion is disclosed in note 10. There were no other related party transactions during the year whi¢h require disclosure. Page 24