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2021-06-30-accounts

forchiHreTh TOILIT HOPE FOR CHILDREN Annual Report & Financial Statements, Forthe Year Ended 30 June 2021 J*rity numÈer. l161729- Company number. 9553484

Report of the Trustees: year ended 30 June 2021

Page
Contents
Objectives & Activities for the Public Benefit 2
COVID-19 Response Statement 3
Programme Highlights 4
Monitoring Achievement 9
Financial Review 10
Strategy & Plans for the Future 11
Structure, Governance & Management 12
Reference & Administrative Information 13
Statement of Trustee’s Responsibilities 14
Independent examiner’s Report 15
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Financial Statements 19 - 32

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Report of the Trustees: year ended 30 June 2021

Report of the Trustees of Hope for Children for the period ended 30[th] June 2021

The Trustees are pleased to present their annual report and the independently examined financial statements for the year starting 1 July 2020 and ending 30 June 2021.

The Trustees of Hope for Children confirm that the financial statements herein comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice – Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

In 1994, Hope for Children was founded and established as an unincorporated association (charity number 1041258). In June 2017 Trustees completed the process for Hope for Children to become an incorporated charitable organisation with a new charity number 1161729 (as part of their continued commitment to providing the best level of governance and accountability for the organisation).

Charitable Objectives and Activities for the Public Benefit

Hope for Children is an international development charity that passionately believes in a world where every child has a happy childhood that sets them up for a positive future. Hope for Children creates opportunities for overlooked, vulnerable and exploited children living in extreme poverty by improving their access to education and healthcare whilst empowering their families through sustainable livelihoods initiatives to support and provide for their own children.

Hope for Children’s impact is only possible through the generous support of individuals and organisations including institutional funders, charitable trusts, universities and private companies to financially support the delivery of programmes and operational costs.

Hope for Children’s current strategic priorities are:

  1. Raise awareness of children’s rights Children’s rights are at the heart of everything that Hope for Children does. We believe that positive, long-term change is achievable when children and the communities they live in, understand and actively promote the rights of children.

  2. Enable children to access education Hope for Children believes that education is one of the most powerful ways to lift children out of poverty, reduce inequalities, provide protection from exploitation/abuse and offer improved opportunities for a better future.

  3. Enhance access to health care and support Some of the world’s children are further disadvantaged due to the multiple barriers they face in childhood. Hope for Children is committed to supporting children, who in addition to abject poverty, also have to contend with disabilities, illness and the impact of caring for parents afflicted by disease such as HIV/AIDs.

  4. Empower families to support themselves Enabling families to develop sustainable livelihoods is a growing priority for the Charity. The families that Hope for Children work with do not want charitable handouts. They want to care and provide for their own families. Hope for Children believes that enabling families to prosper and take control of their own future has a far-reaching impact not only on their children’s lives but on their confidence and self-esteem.

  5. Enable marginalised children to access opportunities Issues such as poverty, abuse, exploitation and lack of access to services/opportunities are exacerbated for women, girls, those with special needs/illness and/or from specific ethnic/religious groups. Hope for Children is a non-political, non-sectarian organisation and is committed to promoting opportunities for the most marginalised children and young people in the countries where we work. Lack of access and poor-quality education and healthcare have serious consequences for groups at risk of social exclusion. Our goal is to help influence longterm, widespread changes in the attitudes and beliefs of the communities in which we work about gender, disability, illness and any other discriminatory factors that exacerbate inequity.

Hope for Children’s strategic priorities and programme of work are in line with the Objects of the Charity as set out in our governing documents – ‘for the benefit of children, young people and their families primarily living in developing countries and, in particular but without limiting the foregoing, to relieve the poverty and sickness, advance the education and protect the good health of such persons’. The Trustees confirm that they have referred

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Report of the Trustees: year ended 30 June 2021

to the Charity Commission’s guidance on public benefit when reviewing the Charity’s aims and objectives, in planning future activities.

The Trustees are pleased to report that the Charity continues to deliver significant impact against its strategic priorities. Progress against the strategy and the environments we operate in are regularly reviewed to ensure that Hope for Children’s strategy continues to be relevant and impactful, fully supporting its charitable objectives and delivering public benefit.

COVID-19 Response

The Board feels it imperative that they continue to address the impact of the global pandemic during this reporting period; it has continued to affect every aspect of our operations. Trustees have considered the following impact on activities:

The Board and staff team immediately pivoted operations to adapt to the risks presented by the pandemic and its resultant lockdown. H4C demonstrated agility by responding to risks swiftly; its priority was the well-being of the children and families that we work with in-country whilst caring for staff, volunteers, consultants and partners throughout the world. Fundraising opportunities continued to be challenging throughout the year. We have supported our donors to reassess and consolidate their targets for challenges etc. so that they can still participate in postponed activity in 2022. We continued to use the government coronavirus job retention scheme to reduce the staffing costs to the charity. H4C has undertaken a significant root and branch review of its structure; restructuring head office overheads enabling the charity to be ready to thrive post-pandemic. As of 30 June 2021 it is still unclear how long the duration, and detail, of restrictions will continue and the depth with which the impact will be felt in the multiple locations we work in. The Board has ensured that we have been focused on financial diligence and controlling expenditure whilst meeting our mission; the communities that we serve are suffering and this cannot continue. At all times trustees have consistently ensured that H4C is a going concern and have appointed a new accountant. The Board has worked diligently to ensure that in 2020-21 H4C completed a restructure, appointed new staff where required and responded to global needs as the pandemic continued to escalate. Our ambition hasn’t faltered; but the journey to achieve our mission has had to adapt as we progress at pace. The charity will unfailingly strive to achieve its mission and will perceive achievement and growth (setting targets accordingly) in terms of quality of impact, integrated practice (whole community/partner NGOs) and sustainability. The effects of the pandemic continue to deepen; whilst the global vaccination programme is implemented at varied pace. Each of our in-country teams responded by adapting our projects to ensure the changing needs of the families and children we work with were met.

Review of Achievements and Performance

Hope for Children continues to excel in delivering quality and impactful programmes that make a real difference to the lives of the children we serve. Impact is our priority. We are proud to deliver a diverse portfolio of projects across the world that respond in tailored ways to the needs of children and their families. We do not operate a one size fits all approach to programme design and implementation - instead, working closely with local people and specialist partners to develop robust education, health, livelihoods and child rights projects that meet local needs and develop individual/family/community capacity. The charity has supported in-country partners to maintain programmes where safe and feasible. Many aspects were paused during the height of lockdown.

Uganda

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Report of the Trustees: year ended 30 June 2021

Highlights of the Charity’s achievements over the past year include:

Ghana

In rural Northern Ghana we have continued our work in the region with longstanding partner RAINS to reduce child labour and improve children’s, especially girls’, access to a quality education. 2020/21 saw the implementation of the final year of our project CASE (Community Action and Support for Education) – an integrated 3-year programme of work funded with UK Aid from the UK Government and grants from key partners such as the British and Foreign Schools Society and Ghana International Foundation. Thank you to the funders.

The project is improving access and quality of teaching practice in schools for 1,400 children, especially girls; providing extra educational support to get 200 out of school children in to school; working with 2,000 parents and community leaders to address socio-cultural practices that prevent children, especially girls, attending school; and increasing the income of 600 mothers through enterprise training and savings and loans groups to support their children's education. Through CASE, Hope for Children has worked with RAINS to improve the quality of teaching; training 40 teachers and education government officials on child centred learning methodology and practice. Despite the devastating impact of COVID-19 and resultant restrictions we have been able to continue our work thanks to the commitment of the whole RAINS team and communities in Tamale. Particular gratitude must be expressed for the hard working ‘Change Makers’ who have ensured that the project achieved maximum possible impact. One example is the creative way in which the communities utilised local radio to broadcast important hygiene public information programmes. This has been of vital importance. The project officially closed on 31.3.21.

The children’s assembly in each community is made up of 2 representative each from each of the clubs in the various communities. These two (a boy and a girl) are selected through a defined criteria to include; those who are regular and punctual to school, confident, fluent, hardworking, patient, dedicated and committed. As groups, they facilitated the process where each assembly selected their executives to provide guidance for the effective functioning of the group.

The functions included; to effectively engage with government stakeholders and local structures in communities to facilitate positive social change and attitude in their respective communities. They also worked closely with school authorities to contribute towards improving school infrastructure and governance for community development.

The assemblies worked through the advocacy communities and other community elders to change attitudes and perceptions of parents towards children’s education and the general wellbeing of the community; this was done through constant engagement with key community leaders and the development of bye-laws. These actions stopped parents from engaging children during school hours and many non-attendees back to school, stopped kayaye (head load carriers), early marriage and other negative practices in the communities.

Congratulations to RAINS and the communities for such amazing work

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Report of the Trustees: year ended 30 June 2021

India

With the support of Aberdeen Standard Investments Charitable Foundation we have extended the reach of our Achieving WASH for Rights to Education (AWARE) programme: AWARE II. Summer 2021 sees us progressing into the final 6 months of the 3-year programme of work; improving school WASH facilities in 42 schools and through its school and community training and sensitisation programme to promote practicing safe WASH behaviour reaching 60,000 beneficiaries within 3 years leading to decreased school absenteeism and drop-out. Our in-country partner MARI has delivered amazing results; despite restrictions. Construction is almost complete and the team will be ready to roll-out sensitisation activity directly with school age children as soon as access is improved. In the interim key public health messages are circulated via the community networks.

Feedback has been tremendous: the community leaders are delighted that each resident now feels that they are equipped to respond to the pandemic more effectively as a direct result of the ongoing project. Well done MARI!

The rural community where we work was impacted by villagers returning from jobs in cities and towns, putting household incomes under unrelenting pressure. The children have been kept at home where many of them do not have running water and practice open defection.

“Fortunately, we had garnered strong engagement with the project in year 1 which has assisted in maintaining contact with the pre-schoolers through village level mothers’ groups, and many primary and secondary aged children through the AWARE Club members. We send out regular messages on the AWARE Club WhatsApp group promoting good hygiene practices, to motivate and focus the children on keeping well while at home. 26 Village Level Task forces have been established to respond to the pandemic. These involve key project stakeholders such as school management committees, Village Organisations, Grama Panchayat representatives, women’s group members, local youth and AWARE club members, meeting to discuss the local response to the pandemic and sharing best practices to mitigate spreading the virus.

Community level engagement has seen a notable increase since COVID-19 has come to India, as the hygiene practices promoted through the AWARE project are of significant relevance to the community and reinforce messages from the Indian government.

In addition to community sensitisation training and meetings, with support from our donor, we have repurposed existing budget to procure thermo-guns and appropriate PPE for school children.

We have purchased enough face masks for each child in our project to receive 5 face masks each. We hope this will support schools to introduce measures that create a safe environment and provide reassurance to the children and parents when it’s time to get back to the classroom.”

Community quote above

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Report of the Trustees: year ended 30 June 2021

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Report of the Trustees: year ended 30 June 2021

Sri Lanka

A total of 4 projects were managed by our Country Representative, working in partnership with a range of small community-based organisations. From pre-school education to the provision of specialist equipment and recreational activities for students affected by deafness and blindness; Hope for Children has continued to focus its services on some of the most disadvantaged children and communities in urban and rural Sri Lanka.

The effects of the pandemic and especially lockdown, had an adverse effect on the mental health of the children and their families. To help combat this the Sri Lankan team initiated counselling programmes over the phone. Advice was given to incorporate positive thinking as well as tips on how to manage their day-to day difficulties. The school children were given suggestions of child-friendly educational activities to keep them busy and engaged during lockdown. Some of the beneficiaries were counselled on their family issues and other concerns.

The total number of beneficiaries in all four projects are approximately 1281, where there are 323 direct beneficiaries (163 males and 160 females) along with 958 indirect beneficiaries.

This is Brian – he has just received outstanding ‘O’ level results; 9 ‘A’ grades!

Hope for Children supported Brian in a number of ways. Brian & his family needed transportation costs to support his travel to & from school. This really alleviated stress for the family.

Brian also participated in Hope for Children funded activity such as swimming. He thoroughly enjoyed access to physical leisure activity.

Here you can see Brain using the audio room facilities supported by H4C donors. This is a great way to relax and engage in stories, humour and knowledge.

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Report of the Trustees: year ended 30 June 2021

Uganda

Hope for Children’s team in Uganda directly delivers an intensive programme of support to children living in Namuwongo slum on the outskirts of Kampala. Our priority children:

• Children at extreme risk (such as teenage mothers, HIV+ children)

Our Walk to School programme (W2S) and Namuwongo Community Projects (NCP) provided children with counselling, practical support for

emergency basic needs (e.g. food, rent, healthcare), vocational training, maternal health education, school uniform, equipment and school fees.

Innovative projects have extended our reach to more vulnerable excluded children in Namuwongo. Girls United is addressing sexual and reproductive health of 75 adolescent girls through a sport for development approach with the support of our community fundraisers the Tom Maccabee Memorial Fund and West Bridgford Colts community football club. Similarly, Music and Hope delivered in partnership with Brass for Africa is working with boys and girls weekly providing a unique music education, training and life skills programme. Unfortunately, as a direct result of coronavirus both of these projects have had to be paused for the year 2020 to 2021.

Under our Empowering Families priority, we have started deliver the final tranche of a pilot project ‘Hope Street Business School’ to test the effectiveness of the Street Business School entrepreneurial training programme model with local women and unemployed young people in the context of Namuwongo. In this reporting period, we are happy to report 2 Cohorts graduated successfully in February 2021; the 3[rd] cohort started their training in March 2021 respectively. This training programme was re-started as restrictions were eased. This will be concluded in Autumn 2021 but is very much in our plans to expand next year as it has been so successful. The team in Uganda has benefited from emergency funding to enable all of the most vulnerable families to receive humanitarian aid: food, cooking materials etc. This has ensured that our families in Namuwongo did not go hungry for long. This has been such a relief locally. We are immensely proud of the local team making this happen.

In the slum area of Namuwongo, Kampala, all the children on our Walk to School programme were sent home meaning that parents had to look for food for not just their children but their entire family; made all the more difficult as employment opportunities all but disappeared. All the families live hand to mouth; there are no stocked cupboards or freezers to utilise. With the lock down, the struggle to survive intensified and most people started going without food for days at a time. Most families resorted to selling personal belongings, including shoes, to survive. There is no such thing as social distancing in a place where overcrowding is an issue in normal times.

We have supported the families we work with throughout the various lockdowns in Kampala; during extremely strict restrictions that have affected all aspects of life. Some students have been able to access on-line tuition via our offices; we hope to expand this as required next year.

It is devastating that most children have not been in school since March 2020; we are working hard to supplement their education. We must also remember the toll the pandemic has had on mental health & wellbeing; this will be a continued priority next year.

Thank you to our wonderfully committed team in Kampala; you are amazing!

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Report of the Trustees: year ended 30 June 2021

UK

During this year Hope for Children has started to plan a post-pandemic UK response; this is to mitigate the detrimental impact the various lockdowns have had on children’s development. We will be starting a new project during Autumn 2021. We look forward to sharing our outcomes.

Project Implementation

Hope for Children implements and manages projects directly and in partnership with local, not-for-profit Community-Based Organisations (CBOs) and Non-Governmental Organisations (NGOs) who are uniquely positioned to be the catalyst long-term meaningful change. In 2020/21 we directly implemented our programme of work in Uganda and continued or developed new partnerships to deliver our charitable objectives in Ghana, India and Sri Lanka.

Working with and developing the capacity of our grassroots partners is a key strategy for Hope for Children recognising that they are uniquely positioned to understand the issues, context and to implement, innovate and deliver change sustainably for children and their communities. Hope for Children proactively identified partners and works with them to plan, design, budget, project and contract manage programmes for effective implementation and delivery. Hope for Children’s grants policy is to deliver our programme of work through grants to these partner organisations (for project costs, capital expenditure, equipment, salary and operational costs) with agreements which typically last at least 12 months in duration and include formal monitoring reporting and financial accounting requirements.

Hope for Children values its partners’ local knowledge, expertise and vision for long-lasting change across the communities. Partnerships are based on equality, integrity, transparency, accountability and the sharing of best practice. Our rigorous partner selection process and capacity building approach supporting them develop good governance, operational, financial and child safeguarding policies and practices.

The Charity does not generally accept unsolicited funding applications and does not provide partnership grants to:

MONITORING ACHIEVEMENT

Hope for Children is committed to the continued strengthening of its Monitoring, Evaluation and Learning (MEL) processes to ensure the efficient management of its activities and effective reporting on outputs, outcomes, reach and impact of these activities. The Charity utilises the MEL cycle at every stage of project development, implementation and post-project planning. The Charity works through a theory of change model; develops Logistical Frameworks (logframe) for all its programmatic work to plan for and demonstrate the link between a project/programme’s activities (outputs) and achieving the intended results (outcomes). The outputs and outcomes form the key MEL questions and indicators to evidence the progress and change Hope for Children make through their work.

The Charity deems children and adults as ‘reached’ if they benefitted from Hope for Children’s intervention regardless of the extent/size of the benefit received – for instance the provision of a school uniform, receipt of micro-credit and membership of a children's club. The Charity recognises that children and adults reached by their programmes might not be experiencing a change or lasting impact on their lives, therefore reach will always be ‘wider’ than impact .

In this accounting period 14,662 children and 13,626 adults benefitted directly and indirectly from Hope for Children’s interventions/activities. The success and impact that the Charity has had on the lives of over 28,288 vulnerable people is entirely down to the relentless support of Hope for Children’s team of staff, trustees, donors, fundraisers, corporate supporters, volunteers and partners who always go the extra mile to make a difference. Hope for Children is immensely grateful for this continued commitment and love of our mission.

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Report of the Trustees: year ended 30 June 2021

Beneficiaries: July 2020 – June 2021

Children Adults Total
Ghana 2,290 1,638 3,928
India 10,216 11,264 21,840
Sri Lanka 1,281 - 1,281
Uganda 875 724 1,599
TOTAL 14,662 13,626 28,288

FINANCIAL REVIEW

Income

The significant impact that we are able to facilitate is only possible thanks to the generous and committed support of our donors, fundraisers, volunteers, corporate partners, charitable trusts and institutional funders. The total income for the year was £544,845; 13% decrease on last year. Whilst this result is still not where we want to be, it reflects the continued difficult economic and fundraising climate we are operating within. COVID-19 and its resultant lockdown(s) has meant that fundraising continues to be challenging in this financial year. A significant contribution is derived from student treks/challenges and sponsored events such as the London Marathon. All events were postponed during 2020/21 (except for some limited UK based challenges) and international flights all but grounded. All these wonderful events will hopefully take place later in 2021/2022 to enable the charity to stabilise. Hope for Children is relieved to have survived such a traumatic global period. The total expenditure during the year was £508,621. Despite this continued turmoil £350,300 was spent in charitable activities in supported projects across the world and profoundly impact the lives of over 28,288 children and families . We spent £158,321 on all other fundraising, operating and infrastructure costs. We have also retained £278,732 (unrestricted £263,353) to ensure we are more than able to meet the Charity’s reserves policy.

We recognise the enormous effort made by students and challenge participants prior to and during the pandemic. As all international events were postponed during 2020 and 2021 we are looking forward to them taking place in 2022. We are certain all this hard work, and more, will be realised as soon as the events take place.

Expenditure

The total resources expended during the year were £508,621. There has been a slight decrease in income: charitable expenditure decreased this year by 39.8% to £350,300.

This year £158,321 was spent on raising funds, a decrease compared to prior years; we have been determined to keep expenditure in line with income. £90,270 out of total spent in raising funds, was directly attributable to delivering challenges and other fundraising events costs - i.e. such as marathon entry fees, flights, challenge operating costs, event venue hire, etc.

With the funds raised during this period, the charity was able to invest £350,300 to impact the lives of over 28,288 people across the world. £15,379 has been retained in restricted funds for commitments to existing charitable activities in the coming year. An element of funding has been utilised in the re-structure of the charity; this is a one off cost.

As planned, Hope for Children has introduced a new finance system & CRM database. Each has improved performance, reduced overhead and increased efficiency significantly.

Reserves policy

Hope for Children is committed to using its funds for charitable purposes within a reasonable period of time and for those funds not to be retained as capital. The Charity recognises that the needs of children are immediate, and it, therefore, aims to use donor’s funds as soon as is possible. This is balanced against the need for prudent management of the Charity, ensuring sufficient resources are retained to support ongoing commitments, capital for growth and a financial buffer for unexpected variances to the budget. To this end, the Board regularly examines the short and long-term needs and the commitments of Hope for Children and has formulated a reserves policy to meet those needs. Trustees are committed to generating sufficient reserves to support current organisational activities, planned growth and to meet the following requirements:

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Report of the Trustees: year ended 30 June 2021

To this end, Hope for Children aims to maintain unrestricted reserves equivalent to six months’ salaries, overheads, committed fundraising costs and committed unrestricted project expenditure, less six months guaranteed income. The level of unrestricted funds at year end was £263,353; this is sufficient to meet the Charity’s reserves policy target of £150,000. A further sum of £15,379 was carried forward as restricted reserves to be spent as specified by the donors. The total funds of the Charity at the year-end were £278,732. On this basis, the Trustees are of the view that the Charity is a going concern because it continues to be able to meet its obligations as they fall due; on the basis of expected activity during the current year to 30 June 2021 and by reference to initial plans for 21/22, we have evaluated that H4C will continue to be able to meet its obligations for at least that foreseeable future.

Investment policy

Hope for Children’s policy is to invest funds that are not required for immediate use in a mixture of short-term and medium-term low risk interest bearing bank deposit accounts, primarily with CAF bank (wholly owned subsidiary of the Charities Aid Foundation) and Metro Bank. Both are regulated by the Financial Services Authority; which is regulated by the Charities Commission. We do not hold endowment funds. Investments in the named accounts continue to remain secure; however, yield is negligible.

Risk management

The Trustees and senior staff identify and review the major risks to which they believe the Charity is exposed to, particularly those related to programmes, finance, fundraising and child safeguarding, on an on-going basis; and work to ensure that appropriate controls are in place to provide reasonable assurance against fraud, negligence, carelessness and error. Whilst risks are discussed at regular Trustee meetings, a comprehensive risk register is maintained and reviewed annually by members of the Board of Trustees.

Hope for Children also works closely with its partners to deliver an appropriately risk-managed portfolio of activities whilst recognising that some of the work delivered through very small CBOs will naturally have a higher risk profile.

STRATEGY & PLANS FOR THE FUTURE

Hope for Children continues to strive to provide and enable effective interventions to some of the world’s most vulnerable and marginalised children – our mission is to be focused on providing for those whom the larger organisations cannot; the welfare of every child matters to us. To this end, over the coming year, the organisation will be conducting a strategic review to ensure its programmes remain relevant, impactful and offer donors good value for money. The impact of the pandemic coincided with the re-structure of the organisation on a more agile basis to meet the future needs of beneficiaries/all whom we work with and align the cost base to a lower expected level of income pending future renewal and growth. Hope for Children has undertaken a complete restructure; this will also include a review of our offices at the beginning of the next financial year. The future remains positive for Hope for Children; the charity will emerge from the pandemic in a stronger more agile position in which to flourish.

Key objectives for the Charity include, to:

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Report of the Trustees: year ended 30 June 2021

The Trustees are confident that the Charity’s future strategy will provide an effective template for organisational stability, growth and delivering ever greater levels of impact to the children and families we support.

STRUCTURE, GOVERNANCE & MANAGEMENT

Hope for Children is a charitable company, incorporated at Companies House on 21 April 2015 and registered with the Charity Commission on 19 May 2015, with a new Memorandum of Association and Articles of Association.

Trustees had been aware for some time that the Charity’s legal structure, as an unincorporated association, was no longer appropriate for the size and scope of the organisation. Thus, the Trustees passed a resolution to ‘incorporate’ by establishing a new charitable company with similar charitable purposes as Hope for Children (unincorporated charity no. 1041258) and to transfer all of the assets and liabilities to the new incorporated entity – Hope for Children (Registered Charity no. 1161729 and Registered Company no. 09553484). The transfer of assets took place at midnight on 30 June 2017.

Directors and Trustees

The Directors of the charitable company (the Charity) are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

The Trustees serving during the accounting period, and on the date the report was approved, were:

1. Helen McMillan Chair (formally appointed at the AGM 25.5.21)
2. Amanda Neylon Re-election 2021
3. Iain Smith Re-election 2021
4. Emilie Giles Re-election 2021
5. Adrian May Appointed 3.12.19
6. Jenny Phillips Appointed 3.12.19
7. Julian Skeens (formally appointed at the AGM 25.5.21)
8. Geoff Cordell (formally appointed at the AGM 25.5.21)
9. Shabnam Nasimi Co-opted 23.6.20 (resigned 7.6.21)

Recruitment and appointment of new Trustees

As per the Memorandum of Association and Articles of Association, there shall be a minimum of 3 Trustees and a maximum of 10 Trustees (with 2 supplementary co-opted places at Board discretion). Trustees shall be elected by the Members at the Charity’s Annual General Meeting for a three-year term of office. Retiring Trustees may seek re-election at the end of their term of office, with no limit on the number of consecutive terms of office for which a Trustee may seek re-election. If at any time the number of Trustees falls below the maximum number of Trustees permitted, the Executive Committee may, by resolution passed by a majority of the Trustees of the Charity, co-opt up to two people as Trustees – provided that any such co-opted Trustee shall only hold office until the next Annual General Meeting of the Charity, at which he or she may stand for election.

All Trustees are selected through an open recruitment process, undergoing two interviews with the Chair, other Trustees and the Chief Executive. Trustees are selected based on the skills, experience and expertise they can bring to the charity in areas of governance, accounting, risk management, HR, law, children’s rights and international development.

Induction and training of new Trustees

New Trustees receive a half day induction to prepare them for their duties. Moreover, all Trustees undertake regular training and charity update sessions during away days held twice a year. The aim of the sessions are to ensure that Trustees have an up-to-date knowledge of key areas of the charity’s activities including financial and governance issues, HR, child safeguarding, risk management, programmes and partners.

Organisational structure & staff remuneration

Hope for Children is governed by a Board of Trustees that takes overall responsibility for its work and delegates day to day management decision making to the Chief Executive, with appropriate consultation with the Chair and Treasurer where necessary. Wider issues are taken to the appropriate Committees, of which there are three, and

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Report of the Trustees: year ended 30 June 2021

the full Board. The Chief Executive relies on the staff, volunteers, interns, advisors and stakeholders to support the effective running of the organisation.

All Trustees give their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note 8 to the accounts. Trustees are required to disclose all relevant interests and register them with the Chief Executive in accordance with the Charity’s Conflict of Interest policy and withdraw from decisions where a conflict of interest arises.

The salary of Hope for Children’s Chief Executive is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the Charity and its commitment to keeping costs low, the Trustees consider that a multiple of up to 3 times the median average salary for UK employees is appropriate for this role. The remuneration is also benchmarked with international development charities of a similar annual turnover and activity to ensure that the remuneration set is fair and aligned to that paid for a similar role.

All salaries are reviewed annually, as per the organisational remuneration policy, and any increase is based on the cost of living increase over the last 12 months and will give consideration to the Consumer Price index movement for the previous year to 30 June. This salary increase is applied to all members of staff and is determined by the Trustees. The Board will include a review of salaries and staffing structure in response to the global pandemic and its impact. This will be reported next year.

The organisational structure of Hope for Children as of 30 June 2021:

REFERENCE & ADMINISTRATIVE INFORMATION

Founder Dr Robert Parsons OBE Chief Executive Julie Davis (from 2.3.2020) Charity Number 1161729 (previously unincorporated charity no. 1041258) Company Number 9553484 Registered Office & 48 High Street, Hemel Hempstead, Hertfordshire, HP1 3AF Principal Address Independent Godfrey Wilson Limited, 5th Floor, Mariner House, 62 Prince Street, examiners Bristol, BS1 4QD Principal Bankers CAF Bank Ltd, Kings Hill, West Malling, Kent, ME19 4TA Solicitors IBB Law, Capital Court, 30 Windsor Street, Uxbridge, Middlesex, UB8 1AB

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Report of the Trustees: year ended 30 June 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity 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 Charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the Charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The Trustees are members of the Charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the Charity.

Independent examiners

Godfrey Wilson Limited were re-appointed as independent examiners to the charitable company during the year and have expressed their willingness to continue in that capacity.

Approved by the Executive Committee of Trustees on 14.12.2021 and signed on their behalf by:

Helen McMillan

Helen McMillan

Chair of Board of Trustees

14

Independent examiner's report

To the trustees of

Hope For Children

I report to the trustees on my examination of the accounts of Hope For Children (the charitable company) for the year ended 30 June 2021, which are set out on pages 16 to 32.

Responsibilities and basis of report

As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company's accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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 to be reached.

Alison Godfrey

Date: 15 December 2021 Alison Godfrey FCA Member of the ICAEW For and on behalf of: Godfrey Wilson Limited

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

15

Hope For Children

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 30 June 2021

Restricted
Note
£
Income from:
Donations and legacies
4
118,647
Other trading activities
6
-
Investment income
-
Total income
118,647
Expenditure on:
Raising funds
-
Charitable activities
151,606
Total expenditure
7
151,606
8
(32,959)
Reconciliation of funds:
Total funds brought forward
48,338
Total funds carried forward
15,379
Net income / (expenditure)
and net movement in funds		 Unrestricted
£
425,307
792
99
426,198
158,321
198,694
357,015
69,183
194,170
263,353		 2021
Total
£
543,954
792
99
544,845
158,321
350,300
508,621
36,224
242,508
278,732		 Restated
2020
Total
£
618,516
9,687
491
628,694
199,730
582,051
781,781
(153,087)
395,595
242,508

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 15 to the accounts.

The prior period has been restated as a result of a change in accounting policy as set out in note 2.

16

Hope For Children

Balance sheet

As at 30 June 2021

Note
Current assets
Debtors
12
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
13
Net assets and net current assets
14
Funds
15
Restricted funds
Unrestricted funds:
General funds
Total charity funds		 £
23,054
304,045
327,099
(48,367)		 2021
£
278,732
15,379
263,353
278,732		 Restated
2020
£
27,728
308,262
335,990
(93,482)
242,508
48,338
194,170
242,508

The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477(2), and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for:

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 14 December 2021 and signed on their behalf by

Helen McMillan

Helen McMillan - Trustee

17

Hope For Children

Statement of cash flows

For the year ended 30 June 2021

Cash used in operating activities:
Net movement in funds
Adjustments for:
Dividends, interest and rents from investments
Decrease in debtors
Increase in creditors
Net cash used in operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Net cash provided by / (used in) investing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
36,224
(99)
4,674
(45,115)
(4,316)
99
99
(4,217)
308,262
304,045		 Restated
2020
£
(153,087)
(491)
46,256
(95,080)
(202,402)
491
491
(201,911)
510,173
308,262

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

18

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)- (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Hope For Children meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

During the year the charity has adopted a change of accounting policy as detailed in note 2.

b) Subsidiary undertaking

Hope For Children Uganda is a registered non-governmental organisation in Uganda. It is audited locally and files appropriate returns within Uganda. Hope For Children Uganda is a wholly controlled subsidiary of Hope For Children (UK). The trustees have opted not to prepare consolidated accounts on the basis of immateriality, in application of statutory instrument 2008/629 regulation 19. In the period to 30 June 2021, the subsidiary made a surplus of £10,458 (2020: surplus of £4,756). At 30 June 2021, Hope For Children Uganda had tangible fixed assets of £2,759 (2020: £1,991), current assets of £15,772 (2020: £8,160) and current liabilities of £2,077 (2020: £4,723), resulting in net assets of £16,453 (2020: £5,428).

c) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. There are no material uncertainties about the charity's ability to continue as a going concern.

d) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity 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.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

19

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

1. Accounting policies (continued)

d) Income

Challenge event income is recognised as a donation on receipt as unconditional entitlement is met on receipt. This represents a change in accounting policy as detailed in note 2.

Income from other fundraising activities is accounted for in the financial year in which the event takes place. Income is deferred as appropriate.

Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

e) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

f) 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.

Costs of raising funds consists of fundraising expenses, payroll giving commission, challenge costs, costs of goods sold, and costs of fundraising events. Expenditure for fundraising events is accounted for in the financial year in which the event takes place and is deferred as appropriate at year end. A new policy for recognition of challenge events expenditure has been adopted and applied retrospectively as set out in note 2. Under the new policy, at the balance sheet date, the charity makes an accrual for challenge events expenditure of the total costs of each place booked on a future challenge at the time when the participant has raised sufficient costs to cover the costs of their place.

Charitable activities comprises all the expenditure directly related to meeting the objectives of the charity. It includes grants made, governance costs and an apportionment of support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

20

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

1. Accounting policies (continued)

g) Allocation of support and governance costs

ations are as follows:
Restated
2021 2020
Raising funds 31.8% 29.9%
Charitable activities 68.2% 70.1%

h) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life.

Items of equipment are capitalised where the purchase price exceeds £1,000.

i) 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.

j) 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.

k) Creditors

Creditors and provisions are recognised where the charity 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.

l) Financial instruments

The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

m) Pension costs

The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA.

n) Foreign currency transactions

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end. Exchange differences are taken to the Statement of Financial Activities.

21

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

1. Accounting policies (continued)

o) Accounting estimates and key judgements

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

2. Prior period restatement

Allocation of support and governance costs

The charity has changed the policy for allocating support costs to cost of raising funds and charitable activities. The charity previously allocated support costs using various cost drivers including staff time and resource usage. The charity now allocates all support costs on the basis of staff costs which the trustees believe to be a more efficient and appropriate basis for allocation. The prior period has been restated to reflect the change in policy which results in reclassification only and does not affect total restricted or unrestricted funds.

Recognition of challenge event income and expenditure

The financial statements for the year ended 30 June 2020 have been restated in accordance with a change in accounting policy, which the trustees believe more closely accords the treatment of income required by the Charities SORP (FRS 102) 2019. The charity receives a significant proportion of its funds from challenge events, where volunteers take part in an event, provided they raise a certain amount in excess of the costs paid by the charity for that event.

The trustees have changed the accounting policy so that all income is accounted for at the time of receipt, since the charity is entitled to the donation unconditionally at the time it is made. In prior years, the charity accounted for such income in the year of receipt to the extent that it related to challenge events taking place in the financial year and up to three months after the end of the financial year, with the remainder being deferred. There has been a related change in accounting policy relating to the costs of such challenge events, where at the balance sheet date, the charity makes an accrual of the total costs of each place booked on a future challenge, at the time when the participant has raised sufficient costs to cover the costs of their place.

22

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

2. Prior period restatement (continued)

Reconciliation of the charity's funds:

At 30 June 2019
Funds carried forward at 30 June 2019
Challenge event income deferred at 30 June 2019
Challenge event income accrued at 30 June 2019
Restated funds carried forward at 30 June 2019
At 30 June 2020
Net movement in funds for the year ended 30 June 2020
Challenge event income deferred at 30 June 2020
Challenge event costs prepaid at 30 June 2020
Challenge event income deferred at 30 June 2019
Challenge event income accrued at 30 June 2019
Restated funds carried forward at 30 June 2020		 Restricted
£
£
159,903
250,667
-
7,642
-
(22,617)
159,903
235,692
(111,565)
(202,531)
-
203,234
-
(57,200)
-
(7,642)
-
22,617
48,338
194,170
Unrestricted		 Total
£
410,570
7,642
(22,617)
395,595
(314,096)
203,234
(57,200)
(7,642)
22,617
242,508

3. Statement of financial activities: prior year comparatives

Income from:
Donations and legacies
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net expenditure and net movement in funds		 Restricted
£
£
164,345
454,171
-
9,687
-
491
164,345
464,349
-
199,730
275,910
306,141
275,910
505,871
(111,565)
(41,522)
Unrestricted		 Restated
2020
Total
£
618,516
9,687
491
628,694
199,730
582,051
781,781
(153,087)

23

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

4. Donations and legacies

Donations
Legacies
Grants
Challenges
Membership subscriptions
Total donations and legacies
Prior period comparative:
Donations
Gifts in kind
Grants
Challenges
Membership subscriptions
Total donations and legacies		 Restricted
£
£
11,337
206,634
-
82,220
107,310
21,174
-
115,219
-
60
118,647
425,307
Restricted
£
£
25,163
165,033
-
3,150
139,182
17,277
-
268,406
-
305
164,345
454,171
Unrestricted
Unrestricted		 2021
Total
£
217,971
82,220
128,484
115,219
60
543,954
Restated
2020
Total
£
190,196
3,150
156,459
268,406
305
618,516

5. Government grants

The charitable company receives government grants, defined as funding from the Foreign, Commonwealth and Development Office (formerly DFID), Dacorum Borough Council and from HMRC under the Coronavirus Job Retention Scheme to fund charitable activities. The total value of such grants in the period ending 30 June 2021 was £66,536 (2020: £94,884). There are no unfulfilled conditions or contingencies attaching to these grants.

6. Other trading activities

Other trading activities
Total other trading activities
Sale of goods
Fundraising events		 2021
Total
£
-
792
792		 2020
Total
£
8,827
860
9,687

All income from other trading activities in the current and prior year was unrestricted.

24

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

7. Total expenditure

Total expenditure
Staff costs (note 9)
Grants payable (note 10)
Other direct programme costs
Challenge event costs
Fundraising expenses
Printing and stationery
Office premises costs
Insurance
Consultancy
Sundry expenses
Independent examination / audit
Legal and professional fees
Trustee indemnity insurance
Sub-total
Allocation of support costs
Allocation of governance costs
Total expenditure		 Raising funds
£
-
-
-
83,587
6,683
-
-
-
-
-
-
-
-
90,270
68,051
-
158,321		 Charitable
activities
£
-
188,189
7,660
-
-
-
-
-
-
-
-
-
-
195,849
145,744
8,707
350,300		 Governance
costs
£
-
-
-
-
-
-
-
-
-
-
7,634
-
1,073
8,707
-
(8,707)
-		 Support costs
£
140,816
-
-
-
-
7
21,331
1,652
36,455
3,874
-
9,660
-
213,795
(213,795)
-
-		 2021 Total
£
140,816
188,189
7,660
83,587
6,683
7
21,331
1,652
36,455
3,874
7,634
9,660
1,073
508,621
-
-
508,621

25

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

7.
Total expenditure
Prior year comparative - restated
Staff costs (note 9)
Grants payable (note 10)
Other direct programme costs
Challenge event costs
Fundraising expenses
Printing and stationery
Office premises costs
Insurance
Consultancy
Sundry expenses
Independent examination / audit
Legal and professional fees
Trustee indemnity insurance
Sub-total
Allocation of support costs
Allocation of governance costs
Total expenditure		 Raising funds
£
-
-
-
77,362
10,939
-
-
-
-
-
-
-
-
88,301
111,429
-
199,730		 Charitable
activities
£
-
292,267
15,474
-
-
-
-
-
-
-
-
-
-
307,741
260,754
13,556
582,051		 Governance
costs
£
-
-
-
-
-
-
-
-
-
-
9,500
2,580
1,476
13,556
-
(13,556)
-		 Support costs
£
233,833
-
-
-
-
2,862
68,316
960
59,800
6,412
-
-
-
372,183
(372,183)
-
-		 2020 Total
£
233,833
292,267
15,474
77,362
10,939
2,862
68,316
960
59,800
6,412
9,500
2,580
1,476
781,781
-
-
781,781

26

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

8. Net movement in funds

This is stated after charging:

Trustees' remuneration
Trustees' indemnity insurance
Trustees' reimbursed expenses
Independent examiner / auditors' remuneration:
Independent examination (incl VAT)
Statutory audit (incl VAT)
Other services (incl VAT)		 2021
£
Nil
1,073
Nil
4,200
-
-		 2020
£
Nil
1,476
60
-
6,720
2,400

Trustees' reimbursed expenses in the prior year relates to 1 trustee who was reimbursed for travel expenses.

9. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2021
£
131,049
5,915
3,852
140,816		 2020
£
212,636
15,804
5,393
233,833

No employee earned more than £60,000 during the current or prior year.

The key management personnel of the charitable company comprise the Trustees, Chief Executive Officer and Finance Officer / Manager. The total employee benefits of the key management personnel were £92,744 (2020: £110,557).

Total redundancy and termination costs recognised as expenditure during the year were £5,248 (2020: statutory redundancy costs of £22,191 were accrued relating to 4 employees).

Average head count 2021
No.
5		 2020
No.
8

27

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

10. Grants payable

Hope for Children Uganda
RAINS - Ghana
MARI - India
NNED - Ghana
SAI - India
Other recipients of non-material institutional grants		 2021
£
95,828
39,323
44,047
-
-
8,991
188,189		 2020
£
105,741
69,260
62,226
5,852
17,653
31,535
292,267

All grants payable in the current and prior periods were payable to institutions.

11. Taxation

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

12. Debtors

Prepayments
Grants receivable
Accrued income
Other debtors
Creditors : amounts due within 1 year
Accruals
Other taxation and social security
Other creditors		 2021
£
1,547
6,200
15,307
-
23,054
2021
£
47,863
-
504
48,367		 Restated
2020
£
3,077
23,282
1,039
330
27,728
Restated
2020
£
86,091
3,999
3,392
93,482

13. Creditors : amounts due within 1 year

28

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

14. Analysis of net assets between funds

Analysis of net assets between funds
Current assets
Current liabilities
Net assets at 30 June 2021
Prior period comparative - restated
Current assets
Current liabilities
Net assets at 30 June 2020		 £
16,379
(1,000)
15,379
£
63,924
(15,586)
48,338
Restricted
funds
Restricted
funds		 £
310,720
(47,367)
263,353
£
272,066
(77,896)
194,170
Unrestricted
funds
Unrestricted
funds		 Total
funds
£
327,099
(48,367)
278,732
Total funds
£
335,990
(93,482)
242,508

29

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

15. Movements in funds

Restricted funds
Ghana
India
Nepal
Philippines
Sri Lanka
Uganda
UK
Asia
Other countries
Total restricted funds
Unrestricted funds
General funds
Total funds		 At 1 July
2020
£
22,163
4,597
42
122
110
2,768
615
13,493
4,428
48,338
194,170
242,508		 Income
£
55,362
49,948
-
1,400
120
11,817
-
-
-
118,647
426,198
544,845		 £
(77,525)
(47,845)
-
-
(230)
(14,585)
-
(11,421)
-
(151,606)
(357,015)
(508,621)
Expenditure		 £
-
6,700
42
1,522
-
-
615
2,072
4,428
At 30 June
2021
15,379
263,353
278,732

Included within the Ghana fund above is the FCDO (formerly DFID) funded project "Community Action and Support For Education"

Funds brought forward
Income
Expenditure
Funds carried forward		 2021
1,191
45,362
(46,553)
-		 2020
(415)
77,734
(76,128)
1,191

Purposes of restricted funds

Ghana

To support our work in Ghana:

30

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

15. Movements in funds (continued) Purposes of restricted funds

India

To support our work in India:

Nepal

We remain in discussions with our partners in Nepal to re-invigorate our work. We are planning what that next activity will be; specifically mitigating the impact of COVID19.

Philippines

To support our work in the Philippines:

Sri Lanka

To support our work in Sri Lanka:

Uganda

To support our work in Uganda:

UK

We are planning our new project in the UK called CASPeR. This will focus activity in the Merseyside area in the northwest. The project will respond to the increased need for young children to experience focused resource to nurture their communication and language skills. This is an exciting progression for the Hope for Children team.

Asia

To support our programmes in India, Philippines and Sri Lanka as above.

31

Hope For Children

Notes to the financial statements

For the year ended 30 June 2021

15. Movements in funds (continued) Purposes of restricted funds

Other countries

To deliver projects that support our programmatic themes of education, healthcare, child rights and livelihoods.

Prior period comparative - restated
Restricted funds
Ghana
India
Nepal
Philippines
Sri Lanka
Uganda
UK
Asia
Other countries
Total restricted funds
Unrestricted funds
General funds
Total funds		 At 1 July
2019
£
51,052
6,918
42
240
4,836
16,868
441
74,241
5,265
159,903
235,692
395,595		 Income
£
81,608
51,036
-
1,624
140
28,029
174
-
1,734
164,345
464,349
628,694		 £
(110,497)
(53,357)
-
(1,742)
(4,866)
(42,129)
-
(60,748)
(2,571)
(275,910)
(505,871)
(781,781)
Expenditure		 £
22,163
4,597
42
122
110
2,768
615
13,493
4,428
At 30 June
2020
48,338
194,170
242,508

16. Operating lease commitments

The charity had operating leases at the year end with total future minimum lease payments as follows:

Amount falling due:
Within 1 year		 2021
£
-		 2020
£
6,069

17. Related party transactions

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

32

Alison Godfrey Godfrey Wilson Limited Chartered Accountants & Statutory Auditors 5[th] Floor Mariner House 62 Prince Street Bristol BS1 4QD 14 December 2021

Dear Alison

Letter of Representations on the Financial Statements for the Year Ended 30 June 2021

We confirm that the following representations are made on the basis of enquiries of the trustees, management and staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the following representations to you:

  1. We have fulfilled our responsibilities as trustees, as set out in the terms of your engagement letter dated 8 September 2021, under the Companies Act 2006 for preparing financial statements, in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

We confirm that in our opinion the financial statements give a true and fair view and in particular that where any additional information must be disclosed in order to give a true and fair view that information has in fact been disclosed. We confirm that the selection and application of the accounting policies used in the preparation of the financial statements are appropriate, and we approve these accounts for the year ended 30 June 2021.

  1. We confirm that all accounting records have been made available to you for the purpose of your examination, in accordance with your terms of engagement, and that all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management, trustees’ and members’ meetings, have been made available to you. We have given you unrestricted access to persons within the charity in order to obtain evidence and have provided any additional information that you have requested for the purposes of your examination.

  2. We confirm the charity has satisfactory title to all assets and there are no liens or encumbrances on the assets, except for those disclosed in the financial statements.

  3. We confirm that significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. We confirm that we have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements.

  4. We confirm that the charity has no liabilities or contingent liabilities other than those disclosed in the financial statements.

  5. We confirm that all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to you and accounted for and disclosed in accordance with the applicable financial reporting framework.

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  1. We confirm that there have been no events since the balance sheet date which require disclosing or which would materially affect the amounts in the financial statements, other than those already disclosed or included in the financial statements.

  2. We confirm that we are aware that a related party of the charity is a person or organisation which either (directly or indirectly) controls, has joint control of, or significantly influences the charity or vice versa and as a result will include: trustees/directors, other key management, close family and other business interests of the previous. We confirm that all related party relationships and transactions have been accounted for and disclosed in accordance with the applicable financial reporting framework.

  3. We confirm that the charity neither had, at any time during the year, any arrangement, transaction or agreement to provide credit facilities (including advances and credits granted by the charity) for trustees, nor provided guarantees of any kind on behalf of the trustees except as disclosed in the financial statements.

  4. We confirm that the charity has not contracted for any capital expenditure other than as disclosed in the financial statements.

  5. We confirm that the charity has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance.

  6. We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the charity conducts its activities and which are central to the charity’s ability to conduct its activities, except as explained to you and as disclosed in the financial statements.

  7. We acknowledge our responsibility for the design, implementation and maintenance of internal controls to prevent and detect fraud. We confirm that we have disclosed to you the results of our risk assessment of the risk of fraud in the organisation. There have been no deficiencies in internal control of which we are aware.

  8. We confirm that there have been no actual or suspected instances of fraud involving trustees, management or employees who have a significant role in internal control or that could have a material effect on the financial statements. We also confirm that we are not aware of any allegations of fraud by trustees, former trustees, employees, former employees, regulators or others.

  9. We confirm that, in our opinion, the charity’s financial statements should be prepared on the going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity’s needs. In reaching this conclusion, we have taken into account all relevant matters of which we are aware, and have considered a period of at least one year from the date on which the financial statements will be approved.

  10. We confirm that in our opinion the effects of uncorrected misstatements are immaterial, both individually and in aggregate, to the financial statements as a whole.

  11. We confirm that, in respect of the restatement to correct a material misstatement in prior period financial statements that affects the comparative information (and any other period covered by your work), the adjustment relates to a change in accounting policy as we believe that the new accounting policy is more appropriate, and accordingly, to ensure the consistency of accounting treatment between periods, it is necessary to restate the current and corresponding periods on the basis of the new policy.

  12. We confirm that we are not aware of any matters of material significance that should be reported to regulators. We confirm that all correspondence with the Charity Commission has been made available to you.

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  1. We confirm that all grants, donations and other income, including those subject to special terms or conditions or received for restricted purposes, have been notified to you. There have been no breaches of terms or conditions during the period regarding the application of such income.

Many thanks

Yours sincerely

Helen McMillan

Helen McMillan Chair of Board of Trustees For and on behalf of the trustees of Hope for Children Limited

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