Annual Report and Financial Statements for the Year Ended 31 December 2023
## 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 5|
|Independent Examiner's Report|6|
|Statement of Financial Activities|7|
|Balance Sheet|8|
|Notes to the Financial Statements|9 to 16|
## **INTERNATIONAL CHINA CONCERN**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Trustees**
Simon Gates Juan Long Robert Molloy Katharine Simpson Simon Upcott Hannah Lamont Yanping Ye (appointed 23 September 2023)
**Charity Registration** 1164736 **Number Principal Office** The Castle Gate Melbourne Street Newcastle upon Tyne NE1 2JQ **Independent Examiner** G W Schulz FCMA 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 2023.
## **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:
- 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
## _**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 activities**_
In 2023, ICC UK welcomed one new Trustee, Yanping Ye to the board. 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.
Page 2
## **INTERNATIONAL CHINA CONCERN**
## **TRUSTEES' REPORT (CONTINUED)**
One particular topic discussed over the year was the charity’s effectiveness in our own safeguarding and particularly in the work in China. Board members resolved to develop their skills by training with Thirty One: Eight. Through interventions at international level safeguarding was added to key internal documents and now is regularly on the agenda at international board meetings.
Throughout 2023, the board worked very closely with the National Office Director, who has continued to ensure the smooth running and development of the UK office. There were some major improvements to our systems and processes during the year. We migrated our database and payment platform, launched a new website and engaged in our first ever global digital campaign. These projects stretched our thinking, faith, ambition and our staff team.
Our staff team continued ongoing training with Moceanic to great effect and increased their knowledge, skill and confidence in delivering 1st class campaigns and improving our retention of donors.
Despite the economic and operational challenges faced in 2023, we ended the year just 0.4% under our budgeted income figure.
The work in China continued in partnership with the welfare departments, the orphanages in Hengyang and in Changsha. Good contact was maintained throughout the year despite the difficulties of the covid epidemic. The board noted the change in direction the charity’s work in China is taking, as the work in Hengyang ended half way through the year, as the welfare department took over the running of the orphanage, still using our family model of care. However the work in Changsha among families is developing through the families partnership programme whereby teams of professionals visit the homes of children with disabilities to encourage and equip families in their care for their own children. There are approximately 7000 such families. In addition the China team is exploring how to help and improve care in other regional orphanages.
Due to Covid the re-election of trustees was overlooked. In 2023 the Board regularised the position of all trustees and changed the terms of service of trustees.
## **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.
Page 3
## **INTERNATIONAL CHINA CONCERN**
## **TRUSTEES' REPORT (CONTINUED)**
## **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.
Page 4
## **INTERNATIONAL CHINA CONCERN**
## **TRUSTEES' REPORT (CONTINUED)**
## **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:
- 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 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 30 April 2024 and signed on its behalf by:
......................................... Simon Gates Trustee
Page 5
## **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 2023.
## **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:
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 FCMA
Independent Examiners Ltd
30 April 2024
Page 6
## **INTERNATIONAL CHINA CONCERN**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023**
|**Note**
**Unrestricted**
**funds**
**£**
**Income and Endowments from:**
Donations and legacies
2
304,597
Total income
304,597
**Expenditure on:**
Charitable activities
3
314,712
Total expenditure
314,712
Net
(expenditure)/income
(10,115)
Net movement in funds
(10,115)
**Reconciliation of funds**
Total funds brought
forward
107,743
Total funds carried
forward
10
97,628|**Restricted**
**funds**
**£**
170,808
170,808
170,808
170,808
-
-
-
-|**Total**
**2023**
**£**
475,405
475,405
485,520
485,520
(10,115)
(10,115)
107,743
97,628|**Total**
**2022**
**£**
406,160|
|---|---|---|---|
||||406,160|
||||389,296|
||||389,296|
||||16,864|
||||16,864
90,879|
||||107,743|
The notes on pages 9 to 16 form an integral part of these financial statements. Page 7
## **INTERNATIONAL CHINA CONCERN**
## **BALANCE SHEET AS AT 31 DECEMBER 2023**
|**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|**2023**
**£**
2,580
130,876
133,456
(35,828)
97,628
97,628
97,628|**2022**
**£**
10,716
171,110|
|---|---|---|
|||181,826
(74,083)|
|||107,743|
|||107,743|
|||107,743|
The financial statements on pages 7 to 16 were approved by the trustees, and authorised for issue on 30 April 2024 and signed on their behalf by:
......................................... Simon Gates Trustee
The notes on pages 9 to 16 form an integral part of these financial statements. Page 8
## **INTERNATIONAL CHINA CONCERN**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023**
## **1 Accounting policies**
## **Statement of compliance**
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom 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.
## **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.
Page 9
## **INTERNATIONAL CHINA CONCERN**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)**
## _**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.
## **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.
Page 10
## **INTERNATIONAL CHINA CONCERN**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)**
## **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**
**£**
285,013
19,584
304,597|**Restricted**
**funds**
**£**
154,261
16,547
170,808|**Total**
**2023**
**£**
439,274
36,131
475,405|**Total**
**2022**
**£**
363,232
42,928|
|---|---|---|---|---|
|||||406,160|
Page 11
## **INTERNATIONAL CHINA CONCERN**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)**
## **3 Expenditure on charitable activities**
|**Unrestricted**
**funds**
**Note**
**General**
**£**
Activities and events
-
Advertising and marketing
9,536
Hengyang therapy equipment
-
Rent and rates
7,206
Licences and subscriptions
2,633
Printing, posta and stationery
10,635
Recruitment costs
1,389
Telephone
710
Training and development
8,147
Travel and subsistence
1,483
Insurance
-
Legal and professional fees
31,036
Sundry expenses
1,412
Banking charges and fees
5,793
Trustees expenses
2,028
Foreign currency
(gains)/losses
40
Independent examination
1,140
External contractors
862
Grants — ICC International
4
126,905
Staff costs
6
103,757
314,712|**Restricted**
**funds**
**£**
-
-
65
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
170,743
-
170,808|**Total**
**2023**
**£**
-
9,536
65
7,206
2,633
10,635
1,389
710
8,147
1,483
-
31,036
1,412
5,793
2,028
40
1,140
862
297,648
103,757
485,520|**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|
## **4 Grant-making**
## **Analysis of grants**
Grants
|**Grants to **|**institutions**|
|---|---|
|**2023**|**2022**|
|**£**|**£**|
|292,148|245,395|
Page 12
## **INTERNATIONAL CHINA CONCERN**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)**
## **5 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
The only payments made to the trustees, or any person connected with them, consisted of reimbursements of expenditure incurred on behalf of the charity in furthering the charity's objects.
## **6 Staff costs**
The aggregate payroll costs were as follows:
|**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs|**2023**
**£**
96,709
3,663
3,385
103,757|**2022**
**£**
80,365
1,434
2,813|
|---|---|---|
|||84,612|
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|**2023**
**No**
4|**2022**
**No**
4|
|---|---|---|
No employee received emoluments of more than £60,000 during the year
## **7 Debtors**
|**7 Debtors**|||
|---|---|---|
|Prepayments
Accrued income|**2023**
**£**
2,066
514
2,580|**2022**
**£**
966
9,750|
|||10,716|
Page 13
## **INTERNATIONAL CHINA CONCERN**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (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|**2023**
**£**
-
2,143
639
33,046
35,828|**2022**
**£**
8,918
989
459
63,717|
|||74,083|
## **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 - £3,385 (2022 £2,813).
Contributions totalling £639 (2022 - £459) were payable to the scheme at the end of the year and are included in creditors.
Page 14
## **INTERNATIONAL CHINA CONCERN**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (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**
**2023**
**£**
97,614
10,129
107,743
-
-
-
-
107,743|**Incoming**
**resources**
**£**
304,597
-
304,597
80,266
38,481
52,061
170,808
475,405|**Resources**
**expended**
**£**
(314,712)
-
(314,712)
(80,266)
(38,481)
(52,061)
(170,808)
(485,520)|**Balance at**
**31**
**December**
**2023**
**£**
87,499
10,129|
|---|---|---|---|---|
|||||97,628|
|||||-
-
-|
|||||-|
|||||97,628|
**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.
Page 15
## **INTERNATIONAL CHINA CONCERN**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 (CONTINUED)**
|**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|
## **11 Analysis of net assets between funds**
|Current assets
Current liabilities
Total net assets
Current assets
Current liabilities
Total net assets|**Unrestricted funds**
**General**
**£**
**Designated**
**£**
123,327
10,129
(30,328)
-
92,999
10,129
**Unrestricted funds**
**General**
**£**
**Designated**
**£**
171,697
10,129
(74,083)
-
97,614
10,129|**Total funds**
**at 31**
**December**
**2023**
**£**
133,456
(30,328)|
|---|---|---|
|||103,128|
|||**Total funds**
**at 31**
**December**
**2022**
**£**
181,826
(74,083)|
|||107,743|
Page 16