Annual Report and Financial Statements for the Year Ended 31 December 2022
International China Concern
Charity registration number: 1164736
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF
INTERNATIONAL CHINA CONCERN
CONTENTS
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 15 |
INTERNATIONAL CHINA CONCERN
REFERENCE AND ADMINISTRATIVE DETAILS
Trustees
Simon Gates Juan Long Wanrong Ma (resigned 15 January 2022) Robert Molloy Katharine Simpson Simon Upcott Hannah Lamont (appointed 15 January 2022)
Charity Registration 1164736 Number
Principal Office The Castle Gate Melbourne Street Newcastle upon Tyne NE1 2JQ Independent Examiner G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham Chichester West Sussex PO18 8NF Bankers Barclays Bank Plc Leicester LE87 2BB
Page 1
INTERNATIONAL CHINA CONCERN
TRUSTEES' REPORT
The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2022.
Objectives and activities
Objects and aims
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:
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Innovating projects that provide holistic care and support services to China's vulnerable children and reduce the likelihood of abandonment in China
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Providing training services that address the needs of China's developing social welfare system in the areas of management, support and disability services
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Advocating on behalf of China's vulnerable children to all sectors of government and society
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Empowering Chinese leaders and their communities to respond to the needs of China's abandoned and disabled
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.
Achievements and performance
Review of activites
In 2022, ICC UK saw no changes in board membership The board worked well together throughout the year. 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.
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 planned global campaign.
The board met via Zoom on two occasions and face to face twice. All meetings were minuted. The trustees continued to have individual responsibilities for different areas on the board including finance and human resources.
Throughout 2022, the board worked very closely with the National Office Director, who has continued to ensure the smooth running and development of the UK office.
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INTERNATIONAL CHINA CONCERN
TRUSTEES' REPORT (CONTINUED)
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.
Policy on 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
Nature of governing document
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).
Recruitment and appointment of trustees
The management of the charity is the responsibility of the trustees who are elected by the board of trustees.
Organisational structure
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.
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.
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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.
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 risk
Statement of 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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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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 Charities (Accounts and Reports) Regulations 2008, 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 was approved by the trustees of the charity on 23rd September 2023 and signed on its behalf by:
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INTERNATIONAL CHINA CONCERN
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF INTERNATIONAL CHINA CONCERN
I report to the trustees on my examination of the accounts of International China Concern for the year ended 31 December 2022.
Responsibilities and basis of report
As the charity 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, 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:
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accounting records were not kept in respect of International China Concern as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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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
23 September 2023
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INTERNATIONAL CHINA CONCERN
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| Note Unrestricted funds £ Income and Endowments from: Donations and legacies 2 228,923 Total income 228,923 Expenditure on: Charitable activities 3 212,059 Net income 16,864 Net movement in funds 16,864 Reconciliation of funds Total funds brought forward 90,879 Total funds carried forward 10 107,743 |
Restricted funds £ 177,237 177,237 177,237 - - - - |
Total 2022 £ 406,160 406,160 389,296 16,864 16,864 90,879 107,743 |
Total 2021 £ 371,579 |
|---|---|---|---|
| 371,579 371,216 |
|||
| 363 | |||
| 363 90,519 |
|||
| 90,882 |
The notes on pages 8 to 15 form an integral part of these financial statements. Page 6
INTERNATIONAL CHINA CONCERN
BALANCE SHEET AS AT 31 DECEMBER 2022
| Note Current assets Debtors 7 Cash at bank and in hand Creditors: Amounts falling due within one year 8 Net assets Funds of the charity: Unrestricted income funds Unrestricted funds Total funds 10 |
2022 £ 10,716 171,110 181,826 (74,083) 107,743 107,743 107,743 |
2021 £ 2,472 103,374 |
|
|---|---|---|---|
| 105,846 (14,964) |
|||
| 90,882 | |||
| 90,882 | |||
| 90,882 |
The financial statements on pages 6 to 15 were approved by the trustees, and authorised for issue on 23rd September 2023 and signed on their behalf by:
The notes on pages 8 to 15 form an integral part of these financial statements. Page 7
INTERNATIONAL CHINA CONCERN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
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. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Gift aid
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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 institution with whom the funds are deposited.
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INTERNATIONAL CHINA CONCERN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grant provisions
Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.
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.
Tangible 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.
Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
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.
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INTERNATIONAL CHINA CONCERN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
Liabilities
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
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.
2 Income from donations and legacies
| Donations and legacies; Donations Gift aid reclaimed |
Unrestricted funds General £ 203,099 25,824 228,923 |
Restricted funds £ 160,133 17,104 177,237 |
Total 2022 £ 363,232 42,928 406,160 |
Total 2021 £ 327,558 44,021 |
|---|---|---|---|---|
| 371,579 |
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INTERNATIONAL CHINA CONCERN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
3 Expenditure on charitable activities
| Unrestricted funds Note General £ Activities and events 1,508 Advertising and marketing 5,389 Rent and rates 6,572 Licences and subscriptions 2,698 Printing, posta and stationery 12,297 Recruitment costs - Telephone 986 Training and development 2,507 Travel and subsistence 1,261 Insurance 234 Legal and professional fees 2,142 Sundry expenses 2,036 Banking charges and fees 4,796 Trustees expenses 842 Foreign currency (gains)/losses (156) Independent examination 1,110 External contractors 15,067 Grants — ICC International 4 68,158 Staff costs 6 84,612 212,059 |
Restricted funds £ - - - - - - - - - - - - - - - - - 177,237 - 177,237 |
Total 2022 £ 1,508 5,389 6,572 2,698 12,297 - 986 2,507 1,261 234 2,142 2,036 4,796 842 (156) 1,110 15,067 245,395 84,612 389,296 |
Total 2021 £ 1,240 1,725 6,572 9,247 6,527 730 747 674 - 1,274 380 426 4,617 240 88 1,110 - 241,079 94,540 |
|---|---|---|---|
| 371,216 |
4 Grant-making
Analysis of grants
Grants
| **Grants to ** | institutions |
|---|---|
| 2022 | 2021 |
| £ | £ |
| 245,395 | 241,079 |
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INTERNATIONAL CHINA CONCERN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
5 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
Four trustees received reimbursement of travel expenses of £1,630 (2021: £Nil) during the year.
6 Staff costs
The aggregate payroll costs were as follows:
| Staff costs during the year were: Wages and salaries Social security costs Pension costs |
2022 £ 80,365 1,434 2,813 84,612 |
2021 £ 89,682 1,839 3,019 |
|---|---|---|
| 94,540 |
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
| Employees | 2022 No 4 |
2021 No 4 |
|---|---|---|
No employee received emoluments of more than £60,000 during the year
7 Debtors
| Prepayments Accrued income |
2022 £ 966 9,750 10,716 |
2021 £ 2,472 - |
|---|---|---|
| 2,472 |
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INTERNATIONAL CHINA CONCERN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
8 Creditors: amounts falling due within one year
| 8 Creditors: amounts falling due within one year | ||
|---|---|---|
| Trade creditors Other taxation and social security Other creditors Accruals |
2022 £ 8,918 989 459 63,717 74,083 |
2021 £ - 1,275 544 13,145 |
| 14,964 |
9 Pension and other schemes
Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to - £2,813 (2021 £3,019).
Contributions totalling £459 (2021 - £546) were payable to the scheme at the end of the year and are included in creditors.
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INTERNATIONAL CHINA CONCERN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
10 Funds
| Unrestricted funds General General Funds Designated Development fund Total unrestricted funds Restricted funds Changsha Child Support Hengyang Child Support FPP Support Total funds |
Balance at 1 January 2022 £ 80,750 10,129 90,879 - - - - 90,879 |
Incoming resources £ 228,923 - 228,923 41,398 93,417 42,422 177,237 406,160 |
Resources expended £ (212,059) - (212,059) (41,398) (93,417) (42,422) (177,237) (389,296) |
Balance at 31 December 2022 £ 97,614 10,129 |
|---|---|---|---|---|
| 107,743 | ||||
| - - - |
||||
| - | ||||
| 107,743 |
Hengyang Child Support - providing residential care for children and young adults in Hengyang by ICC International.
Changsha Child Support - providing residential care for children and young adults in Changsha 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.
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INTERNATIONAL CHINA CONCERN
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 (CONTINUED)
| Balance at 1 January 2021 £ Unrestricted funds General General Funds 80,390 Designated Development fund 10,129 Total unrestricted funds 90,519 Restricted funds Changsha Child Support - Hengyang Child Support - FPP Support - Volunteer Support - - Total funds 90,519 11 Analysis of net assets between funds Current assets Current liabilities Total net assets Current assets Current liabilities Total net assets |
Incoming resources £ Resources expended £ 195,381 (195,018) - - 195,381 (195,018) 38,209 (38,209) 101,266 (101,266) 36,673 (36,673) 50 (50) 176,198 (176,198) 371,579 (371,216) Unrestricted funds General £ Designated £ 171,697 10,129 (74,083) - 97,614 10,129 Unrestricted funds General £ Designated £ 95,717 10,129 (14,964) - 80,753 10,129 |
Balance at 31 December 2021 £ 80,753 10,129 |
|---|---|---|
| 90,882 | ||
| - - - - |
||
| - | ||
| 90,882 | ||
| Total funds at 31 December 2022 £ 181,826 (74,083) |
||
| 107,743 | ||
| Total funds at 31 December 2021 £ 105,846 (14,964) |
||
| 90,882 |
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