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2021-12-31-accounts

International China Concern

Charity registration number: 1164736

Annual Report and Financial Statements for the Year Ended 31 December 2021

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
Notes to the Financial Statements 8 to 13

International China Concern

Reference and Administrative Details

Trustees

Simon Philip Gates (Board Chair)

Juan Long Wanrong Ma (Monica Lott) (Resigned January 2022)

Robert Cathal Molloy Katharine Mary Simpson Simon Christopher Upcott FCA, BFP Hannah Lamont (Appointed March 2022)

Principal Office

The CastleGate Melbourne Street Newcastle upon Tyne NEl 2JQ

Charity Registration Number

1164736

Independent Examiner

Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Basham Chichester West Sussex PO18 8NF

1

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 2021.

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:

Achievements and performance

● Review of activities

In 2021, ICC UK saw one board members join the board of trustees, and one trustee retired. The board worked well together throughout 2021 continuing a new way of working due to Covid-19 as all meetings were held virtually. 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.

2021 saw many challenges due to Covid, however our team worked well achieving above 2020 income which was a magnificent achievement when many other charities struggled to find funding.

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.

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 2021, the board worked very closely with the National Office Director, who has continued to ensure the smooth running and development of the UK office.

The CIO 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.

3

The trustees have completed plans to move all remaining income, expenses and assets transacted in the name of the Trust into the CIO as soon as is practicable. The Trust is now closed.

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.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

● 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

Public benefit

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 annual report was approved by the trustees of the charity on 14[t][h ] May 2021 and signed on its behalf by:

4

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:

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.

Approved by the trustees of the charity on 14[th ] May 2022 and signed on its behalf by:

5

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 2021 which are set out on pages 6 to 13.

Respective responsibilities of trustees and examiner

reparation 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

14 May 2022

6

International China Concern

(Registration number: 1164736) Statement of Financial Activities for the Year Ended 31 December 2021

Note Unrestricted Funds Unrestricted Funds Unrestricted Funds Restricted
funds
£		 Total
2021
£		 Total
2020
£
Unrestricted
General
£
Designated
Funds
£		 Total
Unrestricted
£
Income and Endowments from:
Charitable activities
I		 195,381 0 195,381 176,198 371,579 507,066
Expenditure on:
I
I
Charitableactivities
I
 (195,018) (195,018) (176,198) (371,216) (492,740)
Totalexpenditure
~~I~~ I		 (195,018) (195,018) (176,198) (371,216) (492,740)
l
Net(expenditure)/income		 363 363 0 363 14,326
Net movement in funds
i		 363 363 0 363 14,326
i
I
Reconciliation of fund
I
!
Total funds brought forward1		 80,390 10,129 90,519 - 90,519 76,193
Total funds carried forward'
11		 80,753 10,129 90,882 0 90,882 90,519

All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 11.

The notes on pages 7 to 13 form an integral part of these financial statements

6

International China Concern

(Registration number: 1164736) Balance Sheet as at 31 December 2021

Note
Funds of the charity:
Income funds
Unrestricted Funds:
Designatedfunds
Unrestricted General Funds
Total funds
11
Current assets
Debtors
8
Cash at bank and in hand
9
Creditors: Amounts falling due within one year
10
Netassets		 2021
£
2,472
103,374		 2020
£
I
L
10,129
80,390
90,519
-
---
4,050
118,758
122,808
(32,2892
90,519
105,846
(14,9642
90,882
10,129
80,753
90,882

The financial statements on pages 6 to 13 were approved by the trustees, and authorised for issue on 14 May 2022 and signed on their behalf by:

8

The notes on pages 7 to 13 form an integral part of these financial statements

International China Concern

Notes to the Financial Statements for the Year Ended 31 December 2021

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 2015) - (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.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

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 reviewed.

Reserves

The trustees have considered the level of reserves they wish to retain, appropriate to the charity's needs. This is based on the charity's size and the 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.

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.

8

International China Concern

Notes to the Financial Statements for the Year Ended 31 December 2021

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.

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 paid due regard to the Charity Commission guidance on public benefit before deciding what activities the charity should undertake.

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 the projects in China.

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.

9

International China Concern

2 Income from charitable activities

Unrestricted Funds Unrestricted Funds Unrestricted Funds Restricted
Funds
£		 Total 2021 Total2020
Unrestricted
-
Gen-eral
£		 Designated
Funds
£		 Total
Unrestricted
Funds
£
£ £
Administrative support 5,700 - 5,700 - 5,700 5,700
Changsha Child Support - - - 31,888 31,888 32,129
ChangshaNannies - - - 268 268 -
Hengyang Child Support - - - 83,821 83,821 90,128
HengyangGroup Homes - - - 1,483 1,483 -
FPPSupport - - - 33,912 33,912 21,727
Volunteers Support - - - 50 50 360
Exceptionalgift- ICC International - - - - - 85,000
Where Most Needed 170,433 - 170,433 - 170,433 203,723
OtherIncome 4 - 4 - 4 39
SubTotalexcluding Gift Aid 176,137 ~~-~~ 176,137 151,422 327,559 438,156
Gift AidTax Reclaimed ~~19,244~~ ~~-~~ ~~19,244~~ ~~24,776~~ ~~44,020~~ ~~68,910~~
n-otal Income 195,381 - 195,381 176,198 371,579 507,066

Notes to the Financial Statements for the Year Ended 31 December 2021

Donations received towards:

Administrative Support - overheads of ICC UK.

Changsha Child Support & Changsha Nannies -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, Hengyang Nannies & Hengyang Group Homes- 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 received in 2020 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 received in 2020 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 

10

3 Expenditure on charitable activities

International China Concern

Notes to the Financial Statements for the Year Ended 31 December 2021

UnrestrictedFunds Total Restricted
---
£		 Total2021
-
-
£		 2021 Total2020
--
---
-
£
Unrestricted General
£		 _Developme_nt Fund
£		 Total Unrestricted-
£
ctivities&Events 1,240 1 240 1240
dvertising & Marketing 1,725 1 725 1725 6 530
DevelopmentFund - - - 11,121
Hengyang Therapy Equipment - - - 3,163
BankingCharges andFees 4,617 4,617 4,617 3,725
Wages andsalaries 89,682 89,682 89,682 76,524
Employers National Insurance 1,839 1 839 1,839 1,322
Staff Pensions 3,019 3,019 3 019 2 327
Grants-ICC International 110,829 110,829 130,250 241,079 366,563
Licences &Subscriptions 9,247 9,247 9,247 4,205
Printing,Postage & Stationery 6,528 6,528 6,528 6,616
RecruitmentCosts 730 730 730 -
Rent&Rates 6,572 6,572 6,572 4,101
SundryExpenses 426 426 426 379
rrelephone Costs 747 747 747 854
Training &Development 674 674 674 794
rrravel and Subsistence - - - -
Insurance Costs 1,274 1274 1 274 1 884
Legal&Professional Fees 1 490 1,490 1 490 3 258
rrrusteesExpenses 240 240 240 -
!locationofAdministration Costs -45,948 -45948 45 948 - -
Foreign currency (gains)/losses 88 88 88 (628)
Total Expenditure 195,019 195,019 176,198 371,217 492,740

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. 

11

International China Concern

Notes to the Financial Statements for the Year Ended 31 December 2021

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 4 (2020:3)

Wages and Salaries
Employers NIC
Pension		 2020
2020
£
£
89,682
76,524
1,839
1,322
3,019
2,327


94,540
80,173

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 2021 and 2020.

7. Tangible Fixed Assets

The charity held no fixed assets or fixed asset investments during this or the previous financial year.

12

International China Concern

Notes to the Financial Statements for the Year Ended 31 December 2021

8.Debtors
Gift Aidreceivable
Prepayments
TotalDebtors
9.Cash and cash equivalents
Cashatbank
10. Creditors: amounts falling due within one year
Accruals forICCGrants
Independent examinersfee
OtherAccruals
Total Accruals
11. Funds
Balance at 1
Incoming
January
Resources
2021
£
£
Unrestricted Funds:
DesignatedFunds
10,129
UnrestrictedGeneral Funds
80,390
195,381
Total Unrestricted Funds
90,519
195,381
Restricted Funds
176,198
TotalFunds
90,519
371,579
Balance at 1
January
Incoming
Resources
2020
£
£
Unrestricted Funds
76,193
255,340
Restricted Funds
251,726
Total Funds
76,193
507,066		 8.Debtors
Gift Aidreceivable
Prepayments
TotalDebtors
9.Cash and cash equivalents
Cashatbank
10. Creditors: amounts falling due within one year
Accruals forICCGrants
Independent examinersfee
OtherAccruals
Total Accruals
11. Funds
Balance at 1
Incoming
January
Resources
2021
£
£
Unrestricted Funds:
DesignatedFunds
10,129
UnrestrictedGeneral Funds
80,390
195,381
Total Unrestricted Funds
90,519
195,381
Restricted Funds
176,198
TotalFunds
90,519
371,579
Balance at 1
January
Incoming
Resources
2020
£
£
Unrestricted Funds
76,193
255,340
Restricted Funds
251,726
Total Funds
76,193
507,066		 2020
£
2,472		 2020
£
2,472		 2019
£
4,050
4,050
2020
£
118,758
2020
£
28,793
2,280
2,446

32,289
Balance at
31 December
2021
£
10,129
80,753
90,882
2,472
2021
£
103,374
2021
£
11,069
2,220
1,675
14,964
Resources
Expended
£
(195,0182
90,519
195,381		 (195,0182
176,198 (176,1982
90,519
371,579
Balance at 1
January
Incoming
Resources
2020
£
£
76,193
255,340
251,726		 {371,216) _
Resources
Expended
£
(241,014)
(251,7262		 __90,882
Balance at
31 December
2020
£
90,519
76,193
507,066		 (492,740) 90,519

13