Charity registration number: 1164736 ## International China Concern Annual Report and Financial Statements for the Year Ended 31 December 2020 ## **International China Concern** ## **Contents** |**International China Concern**
**Contents**|| |---|---| |Reference and Administrative Details|1| |Trustees' Report|2 to 3| |Statement of Trustees' Responsibilities|4| |Independent Examiner's Report|5| |Statement of Financial Activities|6| |Balance Sheet|7| |Cash Flow Statement|8| |Notes to the Financial Statements
9 to 14|| ## **International China Concern Reference and Administrative Details** ## **Trustees** Simon Philip Gates (Board Chair) Philip Richard Hubbard (Retired 28[th] November 2020) Juan Long (Appointed May 16[th] 2020) Wanrong Ma Robert Cathal Molloy Katharine Mary Simpson Simon Christopher Upcott FCA, BFP (appointed May 16[th] 2020) ## **Principal Office** The CastleGate Melbourne Street Newcastle upon Tyne NE1 2JQ ## **Charity Registration Number** 1164736 ## **Independent Examiner** G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham PO18 8NF 1 ## **International China Concern** ## **Trustees' Report** The Trustees have pleasure in presenting their annual report and the financial statements for International China Concern (ICC UK) for the year ended 31 December 2020. ## **Objectives and activities** ## **● Policies and objectives** ICC UK functions to raise awareness, funds, and resources for the work of International China Concern (Childcare) Ltd (ICC International) in China by stewarding and communicating with our growing UK donor base. Fundraising activities include regular giving, special appeals and campaigns, bequests and events. ICC UK makes regular donations to ICC International to support the international operations in China. The Trustees re-affirmed support should be directed to the work of ICC International. ICC International is a Christian development organisation that creates full lives for China's vulnerable children by bringing them love, hope and opportunity through: - Innovating projects that provide holistic care and support services to China's vulnerable children and reduce the likelihood of abandonment in China - Providing training services that address the needs of China's developing social welfare system in the areas of management, support and disability services - Advocating on behalf of China's vulnerable children to all sectors of government and society - Empowering Chinese leaders and their communities to respond to the needs of China's abandoned and disabled ## **Achievements and performance** ## **● Review of activities** In 2020, ICC UK saw two board members join the board of trustees, and one trustee retired. The new board worked well together throughout 2020 adopting to a new way of working due to Covid-19 as all meetings became virtual. All trustees took an active part in the life of ICC UK and the board continued to be involved in the development of the National Office. 2020 saw many challenges due to Covid, however our team worked well achieving above budget income which was a magnificent achievement when many other charities struggled to find funding. We bade farewell to two key members of staff and welcomed and established two new members who have quickly found direction and established themselves. The board continued to be involved with delivering the UK strategy document. It supported the development of the charity in acquiring new donors through a training and coaching partnership with Moceanic. It approved and oversaw the delayed transition from a trust into a CIO. The board met via Zoom on five occasions and all meetings were minuted. The trustees continued to have individual responsibilities for different areas on the board including finance and human resources. Throughout 2020, the board worked very closely with the National Office Director, who has continued to ensure the smooth running and development of the UK office. ## **Financial review** ## **● Going Concern** The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The trustees retain from part of restricted and unrestricted income an appropriate amount to cover their running expenses, which is consistently applied and regularly reviewed. 2 ## **● Reserves** The trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs, taking into account the charity’s size and level of financial commitments held. The trustees aim to ensure the charity will be able to continue to fulfil its charitable objectives even if there is a temporary shortfall in income or unexpected expenditure. The trustees will endeavour not to set aside funds unnecessarily. ## **Structure, governance and management** ## **● Constitution** International China Concern is a registered Charitable Incorporated Organisation, number 1164736, and was originally set up in 2015 as the intended successor to the ICC UK’s activities and assets previously undertaken by International China Concern UK trust, a charitable entity registered with the Charity Commission (“the Trust”, reference number 1069349). The trustees of both the CIO and the Trust have, from the date the CIO was established, acted in a way which is consistent with the activities, income, expenses. assets and liabilities of the Trust having been transferred to the CIO. Consistent with that, certain activities, income and expenses have been transferred to the CIO, commencing in 2017, however, other income and operating expense and principally cash assets have remained with the Trust, pending an orderly formal wind down of the Trust. Having taken independent advice on this matter, and in order to present a more helpful view of the financial position of the ICC’s activities in the UK to all stakeholders, the trustees decided to prepare a single set of accounts for the CIO encompassing all the activities, income, expenses, assets and liabilities of ICC UK for the year ended 31 December 2017 onwards, to include also any transactions or assets in the legal name of the Trust. In so doing, the trustees consider they have acted in the best interests of both organisations. The trustees have put in place plans to complete the process of moving all remaining income, expenses and assets transacted in the name of the Trust into the CIO as soon as is practicable. ## **● Methods of appointment or election of Trustees** The management of the charity is the responsibility of the Trustees who are elected by the board of Trustees. ## **● Organisational structure and decision-making policies** The Trustees conduct quarterly board meetings in person or via Zoom. Day-to-day running of ICC UK’s activities is delegated to its staff team, under the direction of the ICC UK National Director. The Trustees regularly review their performance against agreed targets and objectives. ## **● Related party relationships** ICC UK works intrinsically with other worldwide offices which share the same name and charitable objects, and funds are sent to ICC International to be forwarded to its projects in China. ## **● Financial risk management** The Trustees regularly assess the major risks to which the charity is exposed, and are satisfied that systems and procedures are in place to mitigate those risks. 3 ## **International China Concern Statement of Trustees' Responsibilities** The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The annual report and accounts were approved by the trustees of the charity on 15[th] May 2021 and signed on its behalf by: Simon Philip Gates Board Chair 4 ## **International China Concern** ## **Independent Examiner's Report to the trustees of International China Concern** I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2019 which are set out on pages 6 to 14. ## **Respective responsibilities of trustees and examiner** As the charity’s trustees of International China Concern you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’). I report in respect of my examination of the International China Concern's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner’s statement** Since International China Concern'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 Chartered Institute of Management Accountants UK, 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: 1. accounting records were not kept in respect of International China Concern 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 requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 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 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. G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham PO18 8NF 15[th] May 2021 5 ## **International China Concern** ## **(Registration number: 1164736)** ## **Statement of Financial Activities for the Year Ended 31 December 2020** ||**Unrestricted Funds**
**Restricted**
**Total**
**Total**
**Unrestricted**
**Designated**
**Total**| |---|---| |**Note**|| ||**funds**
**2020**
**2019**
**General**

**Funds**
**Unrestricted**| ||**£**
**£**
**£**
**£**
**£**
**£**| |**Income and Endowments from:**|| |Charitable activities|234,090
21,250
255,340
251,726
507,066
379,230| |**Expenditure on:**|| |Charitable activities|(229,893)
(11,121)
(241,014)
(251,726)
(492,740)
(441,522)| |Total expenditure|(229,893)
(11,121)
(241,014)
(251,726)
(492,740)
(441,522)| |Net(expenditure)/income|4,197
10,129
14,326
-
14,326
(62,292)| |Net movement in funds|4,197
10,129
14,326
-
14,326
(62,292)| |**Reconciliation of fund**|| |Total funds brought forward|76,193
-
76,193
-
76,193
138,485| |Total funds carried forward
11|80,390
10,129
90,519
-
90,519
76,193| All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2019 is shown in note 11. The notes on pages 9 to 14 form an integral part of these financial statements. 6 ## **International China Concern** ## **(Registration number: 1164736)** ## **Balance Sheet as at 31 December 2020** |**International China Concern**
**(Registration number: 1164736)**
**Balance Sheet as at 31 December 2020**|**International China Concern**
**(Registration number: 1164736)**
**Balance Sheet as at 31 December 2020**| |---|---| |**Note**
**2020**
**£**
**2019**
**£**|| |**Current assets**|| |Debtors
8|4,050
1,031| |Cash at bank and in hand
9|118,758
94,918| ||122,808
95,949| |**Creditors: Amounts falling due within oneyear**
10|(32,289)
(19,756)| |**Net assets**|90,519
76,193| |**Funds of the charity:**|| |**Income funds**|| |**Unrestricted Funds:**|| |Designated funds|10,129
-| |Unrestricted General Funds|80,390
76,193| |**Total funds**
11|90,519
76,193| The financial statements on pages 6 to 13 were approved by the trustees, and authorised for issue on 15[th] May 2021 and signed on their behalf by: Simon Philip Gates Board Chair The notes on pages 9 to 14 form an integral part of these financial statements. 7 ## **International China Concern** ## **(Registration number: 1164736)** ## **Cash Flow Statement for the year ended 31 December 2020** |**Note**
**Cash flows from operating activities**
Net Cash (expenditure)/income
**Adjustments to cash flows from non-cash items**
Investment Income
**Working Capital Adjustments**
Decrease/(increase) in debtors
8
(Decrease)/increase in creditors
10
Net cash flows from operating activities
**Cash Flows from investing activities**
Interest receivable and similar income
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December|**2020**
**£**
**2019**
**£**
14,326
(62,292)
-
-
(3,019)
(1,031)
12,533
18,706| |---|---| ||23,840
(44,617)
-
-
23,840
(44,617)
94,918
139,535
118,758
94,918| All of the cash flows are derived from continuing operations during the above two periods. 8 ## **International China Concern** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** ## **1 Accounting policies** ## **Statement of compliance** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (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 Charities Act 2011. ## **Basis of preparation** International China Concern 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 notes. ## **Taxation** The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## **Liability Recognition** Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty. ## **Pensions** The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the year. 9 ## **International China Concern** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** ## **Trade debtors** Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables. ## **Cash and cash equivalents** Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. ## **Fund structure** Unrestricted income funds are general funds that are available for use at the trustees’ discretion in furtherance of the objectives of the charity. Restricted funds are maintained where the donor has specified a purpose for the donation made. These restrictions often arise as a result of the regular appeals for special offerings. Designated funds are monies set aside from the general funds for a specific purpose, as determined by and at the sole discretion of the Trustees. ## **Public Benefit** The charity acknowledges its requirement to demonstrate clearly that it must have charitable purposes or "aims" that are for the public benefit. Details of how the charity has achieved this are provided in the Trustees report. The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. The Trustees have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake. ## **Fixed Assets** Fixed Assets are capitalised if they can be used for more than one year and cost at least £1,500. They are valued at cost or, if gifted, at the value to the charity on receipt. 10 ## **International China Concern** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** ## **2. Income from charitable activities** ||**Unrestricted Funds**
**Restricted**
**Funds**
**Total 2020**
**Total 2019**
**Unrestricted**
**Designated**
**Total**
**Unrestricted**| |---|---| ||| ||**General**

**Funds**
**Funds**| ||**£**
**£**
**£**
**£**
**£**
**£**| |Administrative support|5,700
-
5,700
-
5,700
7,919| |Changsha Child Support|-
-
-
32,129
32,129
47,330| |China Teams Support|-
-
-
-
-
13,352| |Hengyang Child Support|-
-
-
90,128
90,128
104,779| |FPP Support|-
-
-
21,727
21,727
2,631| |Volunteers Support|-
-
-
360
360
-| |Exceptional gift- ICC International|-
-
-
85,000
85,000
-| |Where Most Needed|203,073
-
203,073
-
203,723
161,016| |Other Income|39
-
39
-
39
3,014| |**Sub Total excluding Gift Aid**|**208,812**
**-**
**208,812**
**229,344**
**438,156**
**340,041**| |Gift Aid Tax Reclaimed|25,278
21,250
46,528
22,382
68,910
39,189| |**Total Income**|**234,090**
**21,250**
**255,340**
**251,726**
**507,066**
**379,230**| ## **Donations received towards:** **Administrative Support** - overheads of ICC UK. **Changsha Child Support** - providing residential care for children and young adults in Changsha by ICC International. **China Teams Support** - people joining ICC International Short-Term Teams working in China. **Hengyang Child Support** - providing residential care for children and young adults in Hengyang by ICC International. **FPP Support -** Family Partners Programme in China, providing family support services to many families raising children with disabilities, ran by ICC International. **Volunteer Support** – ICC International volunteers working in China. **Exceptional gift International Reserves -** An exceptional gift of £85,000 from a UK donor to provide financial security and stability for ICC international as a reserve fund in case of any unexpected financial costs that would have an impact on cash flow. This gift has been entrusted to the international leadership spend as appropriate. **Designated Funds (Development Fund)** - Reflecting the intent and generosity of the donor, the Trustees determined that the £21,250 gift aid on the £85,000 exceptional gift should be allocated to the Development Fund, a designated but unrestricted fund to be used to support the development and growth of ICC UK’s operations 11 ## **International China Concern** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** **3. Expenditure on charitable activities** |**3.**
**Expenditure on charitable activit**|**ies**| |---|---| ||**Unrestricted Funds**
**Total**
**Restricted**
**Total 2020**
**Total 2019**
**Unrestricted**
**Development**
**Total**| |**Note**|| ||**General**

**Fund**
**Unrestricted**| ||**£**
**£**
**£**
**£**
**£**
**£**| |Activities & Events|-
-
-
-
-
4,721| |Advertising & Marketing|6,530
-
6,530
-
6,530
773| |Development Fund|-
11,121
11,121
-
11,121
-| |Hengyang Therapy Equipment|-
-
-
3,163
3,163
-| |Banking Charges and Fees|3,725
-
3,725
-
3,725
708| |Staff Costs
5|80,173
-
80,173
-
80,173
94.776| |Grants — ICC International|170,922
-
170,922
195,641
366,563
310,770| |Licences & Subscriptions|4,205
-
4,205-
-
4,205
3,998| |Printing, Postage & Stationery|6,616
-
6,616
-
6,616
8,618| |Recruitment Costs|-
-
-
-
-
855| |Rent & Rates|4,101
-
4,101
-
4,101
3,270| |Sundry Expenses|379
-
379
-
379
482| |Telephone Costs|854
-
854
-
854
455| |Training & Development|794
-
794
-
794
1,261| |Travel and Subsistence|-
-
-
-
-
1,980| |Insurance Costs|1,884
-
1,884
-
1,884
839| |Legal & Professional Fees|3,258
-
3,258
-
3,258
5,871| |Trustees Expenses|-
-
-
-
-
1,423| |Allocation of Administration Costs|(52,922)
-
(52,922)
52,922
-
-| |Foreign currency (gains)/losses|(628)
-
(628)
-
(628)
722| |**Total Expenditure**|**229,893**
**11,121**
**241,014**
**251,726**
**492,740**
**441,522**| **Allocation of Administration Costs** - Administrative costs are allocated to all funds in a manner which takes into account the size, purpose and cost of securing the underlying donation. 12 ## **International China Concern** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** ## **4. Trustees remuneration and expenses** No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. No trustees have received any reimbursed expenses or any other benefits from the charity during the year. ## **5. Staff costs** The monthly average number of persons (including senior management team) employed by the charity during the year expressed as full-time equivalents was 3 (2019:4) ||**2020**
**2019**| |---|---| ||**£**
**£**| |Wages and Salaries|76,524
85,523| |Employers NIC|1,322
3,386| |Pension|2,327
5,867| ||80,173
94,776| No employee received emoluments of more than £60,000 during the year ## **6. Taxation** The charity is a registered charity and is potentially exempt from taxation in respect of income or capital gains received to the extent that such income or gains are applied exclusively to charitable purposes. The trustees consider that the conditions for full exemption have been met such that ICC is exempt from such taxation in the reporting periods 2020 and 2019. ## **7. Tangible Fixed Assets** The charity held no fixed assets or fixed asset investments during this or the previous financial year. 13 ## **International China Concern** ## **Notes to the Financial Statements for the Year Ended 31 December 2020** |**8. Debtors**
Gift Aid
Prepayments
Total Debtors
**9. Cash and cash equivalents**
Cash at bank
**10. Creditors: amounts falling due within one year**
Accruals for ICC Grants
Independent examiners fee
Other Accruals
**Total Accruals**
**11. Funds**|**2020**
**2019**
**£**
**£**
4,050
-
-
1,031| |---|---| ||**4,050**
**1,031**| ||**2020**
**2019**
**£**
**£**
118,758
94,918
**2020**
**2019**
**£**
**£**
28,793
12,717
1,050
2,280
2,446
4,759| ||**32,289**
**19,756**| ||| |**Unrestricted Funds:**
Designated Funds
Unrestricted General Funds
**Total Unrestricted Funds**
**Restricted Funds**
**Total Funds**
**Unrestricted Funds**
**Restricted Funds**
**Total Funds**|**Balance at**
**1 January**
**2020**
**£**
**Incoming**
**Resources**
**£**
**Resources**
**Expended**
**£**
**Balance at**
**31 December**
**2020**
**£**
-
21,250
(11,121)
10,129
76,193
234,090
(229,893)
80,390| |---|---| ||76,193
255,340
(241,014)
90,519| ||-
251,726
(251,726)
-| ||**76,193**
**507,066**
**(492,740)**
**90,519**| ||**Balance at**
**1 January**
**2019**
**£**
**Incoming**
**Resources**
**£**
**Resources**
**Expended**
**£**
**Balance at**
**31 December**
**2019**
**£**
138,485
211,138
(273,430)
76,193
-
168,092
(168,092)
-| ||**138,485**
**379,230**
**(441,522)**
**76,193**| ## **12. Pension commitments** The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £2,327 (2019 - £5,867). £463 (2019 - £998) was payable to the fund at the balance sheet date and is included in creditors. 14