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2021-03-31-accounts

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2021

September 1947 – Arrival of the first post war child migrant boys in Fremantle, Western Australia

Page Contents 2 - 11 Trustees’ annual report 12-15 Auditor’s report 16 Statement of financial activities 17 Balance sheet 18 Statement of cash flows 19 - 25 Notes to the financial statements

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2021

FULL NAME: Child Migrants Trust

CHARITABLE INCORPORATED ORGANISATION NUMBER: 1171479

PRINCIPAL ADDRESS: 124 Musters Road, West Bridgford, Nottingham, NG2 7PW

TRUSTEES:

Hon Alderman Joan Taylor MBE

Anthony Roe Kevin Thomas

Professor Patricia Higham Frances Swaine (appointed 15 August 2021)

SENIOR WORKER:

Dr Margaret Humphreys CBE, AO

GOVERNING DOCUMENT & MANAGEMENT:

The above trustees have been appointed to serve the Trust in its legal status as a Charitable Incorporated Organisation.

PRIMARY BANKERS:

UK: National Westminster Bank plc

52 Rectory Road, West Bridgford, Nottingham, NG2 6FF

Overseas: Westpac

Ringwood Central, Corner Ringwood, VIC 3134, Australia

AUDITORS:

Rogers Spencer, Newstead House, Pelham Road, Nottingham NG5 1AP

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TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2021

September 1947 – Arrival of the first post war child migrant girls in Fremantle, Western Australia

TRUSTEES' RESPONSIBILITIES STATEMENT

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales 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 Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They 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.

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TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2021

OBJECTIVES AND ACTIVITIES

The core objective of the Child Migrants Trust (CMT) is to provide family research and social work services so that former Child Migrants from the United Kingdom can reclaim their personal identity and reunite with their family. In addition, the Trust promotes greater public understanding of the history of child migration and its present implications for former Child Migrants and members of their families.

During much of the twentieth century and only ending in 1970, thousands of British children were sent abroad under the Commonwealth child migration schemes. Whilst early child migration schemes were focussed on Canada until the 1920s, in the post-war years the majority of children were sent to Australia, with smaller numbers migrated to New Zealand, Southern Rhodesia (now Zimbabwe) and Canada.

For over 30 years, CMT has provided specialist, independent social work services to former Child Migrants and their families. The Trust has also supported former Child Migrants in their campaigning activities for recognition with practical measures to manage the adverse consequences of child migration. CMT is the only independent, professional social work agency that works with former child migrants from all migrating agency backgrounds.

By providing social work help with issues such as disrupted family relationships, reclaiming personal identity and coping with the painful legacy of childhood abuse in institutions, CMT works to promote recovery and a better understanding of past practices which resulted in adverse, enduring outcomes for most former Child Migrants.

CMT social workers provide trauma informed services to assist former child migrants address and recover from the painful legacy of historic childhood abuse. Where appropriate, CMT assists former child migrants to participate in historic institutional abuse Inquiries through preparation of detailed written and oral statements of evidence. Support with applications to various redress schemes is now a key feature of CMT’s work with former Child Migrants.

Working closely with its colleagues based in Australia, CMT offers a unique model of social work service to address the needs of former Child Migrants residing overseas whilst also providing counselling and family restoration services to family members living across the United Kingdom.

It is an integrated service model that promotes better reunion casework practice by CMT taking a central coordinating and therapeutic role. This ensures all key family members’ needs and interests are considered in planning the delicate first stages of a family reunion following decades of separation.

PUBLIC BENEFIT

We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

Page 4 of 29

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2021

A YEAR OF COPING DESPITE CORONAVIRUS

This has been another exceptionally busy and difficult year for all the staff and clients of the Child Migrants Trust (CMT). While previous years have featured more positive events like the establishment of national Inquiries or redress schemes, this year has been blighted by the impact of the global pandemic. Every aspect of the Trust’s work has been reduced or revised to cope with the regulations imposed by Governments to preserve public health.

Despite restrictions at all of the Trust’s three offices, each office has remained open with reduced staffing levels to enable safety and effective social distancing. Staff have worked at home where feasible and kept in close contact with their office-based colleagues. At the UK office, three core staff members remained at their desks throughout the year, while five were based at home.

Health and Safety has always been a priority across all the Trust’s offices to ensure that elderly or frail clients, in particular, can access services and feel safe in terms of their physical and mental health while using any of CMT’s services. Each office has increased the frequency and intensity of cleaning and provided all the necessary equipment and supplies like paper towels and sanitisers to ensure a safe and secure environment for both staff and occasional visitors.

Each office manager has played a pivotal role during the pandemic and spent considerable time in keeping up to date with changing guidelines and implementing a range of safety measures in terms of hygiene and social distancing.

CMT’S SOCIAL WORK SERVICE

The major impact of the pandemic has been to reduce personal, face to face contact between all the members of the social work team and former child migrants and their families. Overseas and domestic travel have either been severely curtailed or ceased altogether to comply with government restrictions. This unprecedented and long period without international flights has created several difficulties.

The Trust’s service depends on key staff visiting different offices to ensure good coordination, effective training and induction, and a seamless delivery of services. Obviously, this interchange of staff has proved impossible given the lack of international travel opportunities over the past year.

Coordination has, therefore, relied on video conferencing, telephone calls and email messages. Similarly, these methods have also been used where appropriate and possible in making contact with former child migrants. Telephone calls have been made to particularly vulnerable clients on a regular basis while those with internet access have also received email messages of support and advice. We are aware of thirty-nine clients who died during the last year, but this total is not directly related to the pandemic. Where well known members of the child migrant community are involved, particularly those who have been active in various campaigns, such losses have a ripple effect on dozens of other former child migrants.

A major impact of the pandemic on former child migrants has been the loss of opportunities for meeting their families overseas. This has been a heavy burden both for those who have only recently reunited with their relatives and for those with well established relationships forged over the past thirty years.

There has clearly been much anxiety caused by the uncertainties created by the pandemic about when or even if family relationships can be restored once international flights resume. Sharing and managing these concerns, by keeping hope alive, has been the subject of much activity by the social work team.

Page 5 of 29

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2021

Many former child migrants were very pleased to receive a copy of the Trust’s newsletter in December 2020. About 800 copies were distributed to several countries. This was a larger than usual edition at twenty-four pages with photographs and features included to reflect the need for information during the pandemic.

Recent reunions, redress options, developments in civil litigation and details about access to services were just some of the topics covered. The newsletter gave hope to many who were wondering about the possibility of another visit to relatives given the uncertainties. Many former child migrants gave welcome feedback about the value of this edition and its positive messages at a particularly difficult time in their lives.

FAMILY RESEARCH

This year, family research was developed or resolved for 46 clients. Historical childcare files and vital certificates (births, deaths, and marriages) were obtained for 65 clients. These files and certificates are often essential for a variety of purposes, including counselling and developing an understanding of a parent’s family background and the wider context of an admission to care and subsequent placements. Register offices were also impacted by the pandemic and offered much more limited and slower services.

Several clients needed advice about the risks and benefits of using DNA technology and commercial databases as a way of finding distant relatives. Similarly, advice was also given to several second-generation clients on family history matters where information was needed to resolve issues.

REDRESS AND SOCIAL WORK SUPPORT

Clearly, given the variety of redress schemes with different settlement possibilities, it is essential that former child migrants and their next of kin receive accurate and appropriate advice about their eligibility and support to complete their applications. There were significant developments in redress provision and processes over the past year.

THE NORTHERN IRELAND HIA REDRESS SCHEME :

In respect of the Northern Ireland redress scheme, in April 2020 letters were sent to 70 former child migrants or their next of kin advising them that the Trust was keen to assist them with their applications.

There had already been years of delay in establishing this scheme due to the political uncertainties in Northern Ireland. Consequently, it was imperative that any further delays due to the pandemic were kept to an absolute minimum if applicants were to receive redress in their lifetime and while they were able to put any redress payments to good use. Again, due to the pandemic, it was not possible to conduct interviews in person with those making applications and submissions had to be managed by several telephone conversations.

This seemed the most practical solution. However, it is not necessarily the best medium for this highly sensitive work where painful incidents of childhood abuse need to be recalled, shared, and documented. Each application requires considerable professional and administrative input to ensure that all the supporting documents and statements have been compiled and witnessed in the approved format.

A total of 47 applications were submitted during year, including six applications from the next of kin relating to deceased former child migrants. Each application is subject to a second professional opinion as a form of quality control and to ensure consistency.

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TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2021

Only one application was the subject of an appeal due to a settlement figure which seemed considerably lower than had previously been awarded for similar episodes of ill treatment. Specialist legal advice was sought to support the arguments in favour of reviewing this award. This appeal was successful, and the settlement was substantially increased.

THE UK PAYMENT SCHEME

Unlike the Northern Ireland scheme which requires a detailed statement so that an assessment can be made to devise an appropriate level of redress, the UK scheme usually only requires data to confirm the applicant’s status as an eligible former UK child migrant. Extra documents are required in respect of those claiming on behalf of a former child migrant who has died in recent years.

A single payment of £20,000 is awarded to those who qualify. During this year, a total of 81 applications were processed, including fourteen payments to the next of kin of deceased former child migrants.

This is very much the tail end of those eligible as the vast majority were paid during the first year of the scheme. Most of this year’s applicants were based in Australia (45) or New Zealand (24) with five from the UK, four living in Canada and two in the USA.

This scheme is organised as a partnership between the Department of Health and Social Care, the funding and governance agency, the Trust, which manages applications and confirms eligibility, and the NHS Business Services Authority, which makes the payments. Regular telephone conferences, usually on a monthly basis, were held to ensure a consistent approach and effective coordination between the staff and systems at all three organisations.

ADVANCE PAYMENT SCHEME – SCOTLAND

This is also a fairly straightforward redress scheme with a single level of payment set at £10,000 for children previously in care in Scotland.

Altogether assistance has been provided to 45 applicants, nearly all of whom are former child migrants based in Australia.

REDRESS IN AUSTRALIA

There were welcome and positive changes to the redress scheme organised by the Australian government which will benefit those former child migrants who were resident at various institutions, especially those at Fairbridge and Northcote farm schools.

As these are now all eligible, the Trust wrote to 130 of its clients, most in Australia but a minority in the UK, who could now make an application for redress.

Page 7 of 29

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2021

THE FAMILY RESTORATION FUND (FRF)

The Fund is a UK government funded resource, managed by CMT, which enables former child migrants to visit their families of origin by covering the costs of international flights and accommodation for two weeks. The Fund was announced as part of the UK national apology to former child migrants and their families in 2010.

During the past year, the FRF has been suspended as a result of the global pandemic. While it has not been possible to organise any new visits, there has been quite a lot of administrative activity involved in cancelling proposed flights and reclaiming the relevant costs. Similarly, visas and passports have been reviewed and updated where necessary to reduce any further delays when flights resume.

Given the reduction in the Trust’s financial activities after the suspension of the FRF and the uncertainty concerning its future, both the Trust’s Business Managers had tendered their resignations by June 2020.

EDUCATIONAL EVENTS

The Trust has always been keen to share its professional skills and knowledge with other agencies and to promote greater public awareness of the impact of child migration on individuals and families.

This year, two invitations were accepted to discuss the professional issues portrayed in the film ‘Oranges and Sunshine’ which is based on the early years of the Trust’s work.

The first question and answer session in November 2020 was initiated by Associate Professor, Shannon McElroy, of the School of Social Work at the University of Alabama. This lively and enthusiastic videoconference involved a group of social work students.

Many were particularly interested in the relevance of the Trust’s work for current issues in social work. Indeed, the position of today’s child migrants separated from their families in the USA is a cause for much public and political concern.

The second, similar event was instigated by the British Association of Social Workers. This involved a large international audience, of over three hundred social work professionals from many different countries, who were participating in this videoconference event to mark BASW’s 50th anniversary.

After the screening of ‘Oranges and Sunshine’, another Q&A session followed which continued for over an hour.

This invitation was also linked to BASW’s successful nomination in 2020, for her work on behalf of former UK Child Migrants, of the Trust’s Director, Dr Margaret Humphreys, for the highest international honour awarded by the International Federation of Social Workers, the Andrew Mouravieff medal.

Page 8 of 29

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2021

REMEMBERING TRUSTEE MIKE HOARE MBE

In April 2020 everyone familiar with the work of the Trust over the last twenty years was extremely saddened to learn of the passing of Mike Hoare who had been such a strong and consistent supporter of its vital work.

Mike made several different and valuable contributions as a Trustee, particularly in helping with family research, in the organisation of our International Congress and in providing sound strategic advice to senior staff and trustees over many years. He had attended all the major highlights and events of the Trust’s work across the UK from the Health Select Committee inquiry in 1998 to the Museum of Childhood exhibition in 2015.

Although it is intended to appoint another trustee in the near future, it will be very difficult to replace Mike’s long and positive record of service and devotion to so many different aspects of the Trust’s work

Mike Hoare and John Hennessey at the V&A Museum of Childhood, October 2015

FUTURE PLANS

In recent years, the Trust’s work has been heavily influenced by the establishment of national inquiries into different aspects of childhood and institutional abuse in several jurisdictions, including all four of the countries of the United Kingdom. In addition, there is a current inquiry in New Zealand and the Australian redress scheme which both focus on former child migrants.

Various stages have been reached in different countries between hearing evidence and making and implementing recommendations, often in the form of redress schemes. CMT has been involved in a variety of roles at each stage and four of these Inquiries have now produced redress schemes.

The Trust is involved in the final phase of assessing redress payments for the UK government as well as actively assisting with redress statements in Northern Ireland.

The final report of the Inquiry in Scotland is yet to be published after the hearing on child migration was completed in 2020. This may well have implications for further redress measures beyond the present advance payment scheme.

Although the FRF has been and remains suspended, there should be sufficient funds remaining to meet the demand up to the end of March 2022 if international flights without severe restrictions do not resume before October 2021. This seems a very reasonable prediction at present because the Australian government has placed great emphasis on keeping its borders closed during the pandemic to reduce its national rates of infection to an absolute minimum.

Forecasting the outcomes of policies yet to be made by different governments is clearly a difficult task with few guarantees of even reasonably accurate predictions.

However, there will be another busy year ahead because the workload will still be varied and demanding, new clients have come forward following redress and the restrictions imposed by the pandemic will continue to create extra challenges in delivering services. There is also the consistent pressure, which becomes more urgent every year, of delivering services in a timely manner, given the advanced age of former child migrants.

Page 9 of 29

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2021

FINANCIAL REVIEW

REVIEW OF FINANCIAL POSITION AT THE END OF THE REPORTING PERIOD

Due to the global pandemic, there has been a significant reduction in large items of expenditure, particularly in respect of costs for salaries and overseas travel. Operational funds have been received on time during the year hence liquidity has been stable throughout the year.

RESERVES POLICY AND GOING CONCERN

The Trust has total funds of £335,409, of which £217,560 are restricted funds. The free reserves of the Trust are £116,709 (unrestricted funds less tangible fixed assets). These reserves are sufficient to allow the Trust to maintain its services for about three months. It is still important for the Trust to try to develop its reserves to provide more continuity and scope for delivering its service in a flexible manner. Securing funding beyond this remains a major priority for the Trust.

RISK MANAGEMENT

The Trustees have a risk management strategy which reviews the principal risks and uncertainties faced by CMT and identifies measures, especially key insurance policies, to mitigate risk.

The earlier emphasis on maintaining positive relationships with funders, trying to develop reserves and alternative sources of income is still a priority.

While the major risk for operations this year - the global pandemic - was not anticipated, CMT adapted quickly to the need to suspend the FRF, to reduce staffing at its offices and switch to home working as a new approach to delivering its services.

Recruitment and retention of specialist staff remains a challenge because of the limited numbers of candidates with suitable skill sets. Indeed, the pandemic has made it impossible to recruit new staff during the year. Therefore, CMT will need to continue to pursue a variety of different approaches to tackling both issues and secure effective staffing levels.

THANKS AND ACKNOWLEDGEMENTS

This year thanks must be given to the staff teams at each of the Trust’s offices who worked throughout the pandemic, whether at home or at our offices, to ensure the continuity of our vital services. It has been a very difficult year for both staff and particularly for clients of the Trust.

Recognition and thanks are also very much due to the many individual donors who have helped to develop the reserves and to funding bodies like the Department of Health and Social Care for their vital lifeline of support.

Four Trustees have remained in post and provided a further sense of continuity to staff coping with yet another challenging and busy year.

A wide network of support services, including landlords, printers, cleaners, couriers, utilities and handymen and professional staff, like auditors and lawyers, have also contributed positively to the work of the Trust.

Yet again, the Director, Dr Margaret Humphreys, has kindly donated all the royalties from her best-selling book ‘Oranges and Sunshine.’

Page 10 of 29

TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED 31ST MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

GOVERNING DOCUMENT

Child Migrants Trust is a Charitable Incorporated Organisation, governed by its Constitution dated 13 January 2016, and is registered with the Charity Commission.

POLICY ON APPOINTMENT AND INDUCTION OF TRUSTEES

As set out in the Constitution, every Trustee must be appointed by a resolution passed at a properly convened meeting of the Trustees, and the appointment must be ratified by a simple majority of the Founding Members. The Trustees will make available to each newly appointed Charity Trustee, as a minimum, a copy of the CIO’s constitution.

ORGANISATIONAL STRUCTURE AND DECISION -MAKING

The board of trustees, which can have from 3 to 10 members, manage the affairs of the CIO, and usually meet four times a year. Any decision of the trustees may be taken either at a meeting of the trustees or by resolution in writing or electronic form agreed by the trustees. The trustees delegate the day to day running of the CIO to the Senior Management Group, consisting of the International Director, two Assistant Directors and an Executive Assistant to the International Director.

PAY POLICY FOR SENIOR STAFF

The pay of senior staff is reviewed annually and usually increased in line with inflation. Salaries are set at levels which will attract well-qualified staff, taking into account both voluntary and public sector salaries for similar positions. The Trust does not have any pay gap based on gender.

RELATED PARTIES AND CO-OPERATION WITH OTHER ORGA NISATIONS

CMT UK’s Chair of Trustees, and three members of the senior management group, form part of the Board of Australian-based Child Migrants Trust Inc. (CMT Inc.), which has an office in Perth and an office in Melbourne. CMT Inc.’s services mirror those of CMT and are mainly funded by the Australian Government and States to deliver those services. CMT makes a contribution to CMT Inc. for work related to the Family Restoration Fund.

No trustees of either CMT or CMT Inc. receive remuneration or other benefit for their work as trustees.

Signed ______ Dated ________ Hon Alderman Joan Taylor MBE, Chair of Trustees

Page 11 of 29

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF CHILD MIGRANTS TRUST FOR THE YEAR ENDED 31 MARCH 2021

Opinion

We have audited the financial statements of Child Migrants Trust for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw your attention to note 1 in the financial statements which indicates that the charity has not had confirmation that a significant operational grant will be provided for the period from 1 April 2022 to 31 March 2023. This indicates that a material uncertainty exists that may cast doubt on the charity’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF CHILD MIGRANTS TRUST FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 3, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF CHILD MIGRANTS TRUST FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF CHILD MIGRANTS TRUST FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed

Rogers Spencer Chartered Accountants Statutory Auditors

Newstead House Pelham Road Nottingham NG5 1AP

Date

Rogers Spencer is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Page 15 of 29

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Funds
Note
£
Income:
Donations and legacies
3
26,361
Income from charitable activities:
Grants and Contributions
4
-
Other
5
1,285
Total income
27,646
Expenditure:
Charitable activities
6
5,000
Total expenditure
5,000
Net income /(expenditure)
8
22,646
Net movement in funds
22,646
Reconciliation of funds:
Total funds brought forward
95,203
Total funds carried forward
12
117,849		 2021 2020
Restricted
Funds
£
-
549,778
2,710		 Total
Funds
£
26,361
549,778
3,995		 Unrestricted
Funds
£
3,317
-
2,809		 Restricted
Funds
£
-
808,198
7,394		 Total
Funds
£
3,317
808,198
10,203
27,646 552,488 580,134 6,126 815,592 821,718
5,000 556,835 561,835 6,570 1,114,179 1,120,749
5,000 556,835 561,835 6,570 1,114,179 1,120,749
22,646
22,646		 (4,347)
(4,347)		 18,299
18,299		 (444)
(444)		 (298,587)
(298,587)		 (299,031)
(299,031)
95,203 221,907 317,110 95,647 520,494 616,141
117,849 217,560 335,409 95,203 221,907 317,110

All activities undertaken by the Trust during the year relate to continuing operations. There are no acquisitions or discontinued operations during the year.

The notes on pages 19 to 29 form part of these financial statements.

Page 16 of 29

BALANCE SHEET AT 31 MARCH 2021

Note
Fixed assets
Tangible assets
9
Total fixed assets
Current assets
Debtors & prepayments
10
Cash at bank and in hand
Total current assets
Liabilities
Creditors: amounts falling due
within one year
11
Net current assets
Creditors:
amounts falling due after one year
Net assets
The funds of the charity
Unrestricted income funds
12
Restricted income funds
12
Total funds		 £
1,140
190,982
699,637
890,619
556,350		 2021
£
£
-
1,140
7,910
884,594
892,504
575,394
334,269
-
335,409
117,849
217,560
335,409		 2020
£
-
317,110
-
317,110
95,203
221,907
317,110

The financial statements were approved and authorised for issue by the Board on .

Signed on behalf of the charity’s trustees:

Signed _____ Dated ______ Kevin Thomas, Trustee

The notes on pages 19 to 29 form part of these financial statements.

Page 17 of 29

STATEMENT OF CASH FLOWS AT 31 MARCH 20 21

Note
Net cash flow from operating activities
14
Cash flow from investing activities
Interest received
Purchase of tangible fixed assets
Net cash flow from investing actvities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at 1 April 2020
Cash and cash equivalents at 31 March 2021
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 March 2021		 2021
2020
£
£
(186,113)
(510,001)
2,866
7,640
(1,710)
-
1,156
7,640
(184,957)
(502,361)
884,594
1,386,955
699,637
884,594
699,637
884,594
699,637
884,594

The notes on pages 19 to 29 form part of these financial statements.

Page 18 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies

General information and basis of preparation

Child Migrants Trust is a Charitable Incorporated Organisation in the United Kingdom. The address of the registered office is given in the charity information on page 2 of these financial statements.

The charity constitutes a public benefit entity as defined by FRS 102.

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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice.

The financial statements are prepared on a going concern basis under the historical cost convention.

Confirmation of funding via the operational grant has been received from the Department of Health for the financial year ending 31 March 2022. However, the Department of Education will be managing the Trust’s funding from 1 April 2022 and is actively considering its future level of funding. The amount of funding has not been confirmed for the following year to 31 March 2023. There is a balance remaining in the Family Restoration Fund (FRF) and due to Covid 19 very little travel has taken place up to the current date. Consequently, it is anticipated that there will be a significant amount remaining in the FRF at 31 March 2022

As the Charity administers the FRF, it is deemed extremely unlikely that the Government will cease to provide grant funding for the Charity to continue whilst the FRF remains to be spent. In addition, there is further work that the Charity needs to continue with and develop. The Scottish Inquiry was put on hold due to Covid 19 but resumed its work in 2021. One key result of the Inquiry is that a scheme has been introduced which will allow former migrants to claim redress. CMT will have a role to play in enabling former child migrants to access the redress scheme. A similar scheme is in place resulting from the Northern Ireland Inquiry.

As a result of the above, continuing as a going concern is reliant on receipt of the annual operational grant. There is uncertainty related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business. Assurance have been given that the Trust will be funded next year. However, if its grant is reduced or stopped, clearly significant reductions will need to be made both in terms of staffing and service delivery but the use of reserves and volunteers will enable the Trust to continue at a very basic level.

The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Page 19 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

1. Accounting policies (continued)

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably, and it is probable that the income will be received.

Incoming resources from government and other grants, where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.

Donated services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably.

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

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required, and the amount of the obligation can be measured reliably.

It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which the expenditure arose.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities.

Support costs have been allocated to categories on a basis consistent with the use of resources, which are estimated as being direct costs 57% and support 43%.

Foreign currency translation

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the statement of financial activities.

Page 20 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

1. Accounting policies (continued)

Pension costs

The charity is an admitted body of the Nottinghamshire County Council’s Local Government Pension Scheme (LGPS) which is independently administered. This is a defined benefit scheme and is used for the charity’s employees. Pension costs are assessed in accordance with the advice of the Government Actuary.

Tangible fixed assets and depreciation

Tangible fixed assets costing more than £1,000 are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write down the cost or valuation, less estimated residual value, of each asset on a systematic basis over their expected useful lives on a straight-line basis.

The rates applicable are:

IT equipment 33.33% Phone systems 50% General equipment 33.33%

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.

Provision for open travel applications

A provision is made and included within creditors for open travel applications at the year end. This has been calculated by multiplying the number of open applications by the average cost of travel, which is almost £6,000.

Fund’s structure

Unrestricted funds are funds which are available for use at the discretion of the trustees in the furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 21 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

2. Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

3. Income from donations and legacies

Sundry donations Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
funds
funds
£
£
£
£
£
£
26,361
-
26,361
3,317
-
3,317
2021
2020

4. Income from charitable activities

Income from charitable activities
Grants:
DHSC - Section 70 Grant
Services: DHSC - UK Payment Scheme		 2021 2020
Unrestricted
funds
£
-
-		 Restricted
funds
£
549,778
-
549,778		 Total
funds
£
549,778
-		 Unrestricted
funds
£
-
-		 Restricted
Total
funds
funds
£
£
654,000
654,000
154,198
154,198
808,198
808,198
- 549,778 -

5. Other income

Other income
Bank interest
Royalties
Conference fees and expenses
Sale of Equipment		 2021 2020
Unrestricted
funds
£
156
939
-
190
1,285		 Restricted
funds
£
2,710
-
-
-		 Total
funds
£
2,866
939
-
190		 Unrestricted
funds
£
246
1,417
1,146
-		 Restricted
Total
funds
funds
£
£
7,394
7,640
-
1,417
-
1,146
-
-
7,394
10,203
2,710 3,995 2,809

Page 22 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

6. Expenditure on charitable activities

Note
Wages, NI & pension
Payroll service
Governance costs
7
Consultancy
Recruitment
Staff expenses
Training
Payments to beneficiaries
Family research
Memberships & subscriptions
Overseas travel
UK travel
Rent & rates
Utilities
Repairs & renewals
Cleaning & household
Insurance
Website design & maintenance
Postage, printing, stationery & telephone
Conferences & events
Hospitality
Marketing & publicity
Office equipment
Bank charges
(Gain)/loss on currency exchange
Depreciation		 2021 2020
Unrestricted
funds
£
5,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Restricted
funds
£
477,185
1,101
4,977
630
-
371
260
10,569
2,196
1,668
-
70
26,125
3,658
6,940
8,763
2,820
560
14,625
-
1,440
195
9,164
736
(17,786)
570		 Total
funds
£
482,185
1,101
4,977
630
-
371
260
10,569
2,196
1,668
-
70
26,125
3,658
6,940
8,763
2,820
560
14,625
-
1,440
195
9,164
736
(17,786)
570		 Unrestricted
funds
£
-
-
-
-
-
24
37
-
-
-
415
5,855
-
-
-
-
-
-
10
-
227
-
-
2
-		 Restricted
funds
£
517,246
1,178
10,020
11,038
300
86
634
412,038
2,646
1,090
42,781
7,080
26,092
4,536
1,783
5,208
2,310
730
20,190
65
2,482
162
4,965
1,080
38,439		 Total
funds
£
517,246
1,178
10,020
11,038
300
110
671
412,038
2,646
1,090
43,196
12,935
26,092
4,536
1,783
5,208
2,310
730
20,200
65
2,709
162
4,965
1,082
38,439
5,000 556,835 561,835 6,570 1,114,179 1,120,749

Included in expenditure above are support costs totalling £234,540 (2020: £308,283).

Page 23 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

7. Analysis of governance costs

Legal and professional
Audit fees
Consultancy
Governance meetings		 2021 Total
funds
£
96
4,600
-
281
4,977		 2020
Unrestricted
Restricted
funds
funds
£
£
-
96
-
4,600
-
-
-
281		 Unrestricted
funds
£
-
-
-
-		 Restricted
Total
funds
funds
£
£
-
-
4,600
4,600
5,000
5,000
420
420
10,020
10,020
-
4,977		 -

8. Net income / (expenditure) for the year

Net income / (expenditure) is stated after charging / (crediting):

2021 2020
£ £
Operating lease rentals 24,000 24,000
Net (gains) / losses on foreign currency (17,786) 38,439

9. Tangible fixed assets

IT
equipment
Cost
£
At 1 April 2020
8,796
Additions
1,710
At 31 March 2021
10,506
Depreciation
At 1 April 2020
8,796
Depreciation
570
At 31 March 2021
9,366
Net book value
At 1 April 2020
-
At 31 March 2021
1,140		 Phone
system
£
5,418
-
5,418
5,418
-
5,418
-
-		 General
equipment
Total
£
£
719
14,933
-
1,710
719
16,643
719
14,933
-
570
719
15,503
-
-
-
1,140

Page 24 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

10. Debtors
FRF Prepayments
Prepayments & accrued income
11. Creditors
Trade creditors
Other creditors and accruals		 2021
£
-
190,982
190,982
2021
£
725
555,625
556,350		 2020
£
144
7,766
7,910
2020
£
128
575,266
575,394

Included within creditors is £486,500 being the sum of anticipated future commitments.

Page 25 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

12. Fund Reconciliation

Unrestricted fund
General fund
Designated fund - redundancy
Restricted funds
DHSC - section 70 Grant
DHSC - UK Payment Scheme
FRF Beneficiaries		 Opening
balance
Income
Expenditure
Transfers
Closing
balance
£
£
£
£
£
78,600
27,646
(5,000)
16,603
117,849
16,603
-
-
(16,603)
-
95,203
27,646
(5,000)
-
117,849
(16,780)
549,800
(529,691)
-
3,329
83,402
-
(16,575)
-
66,827
155,285
2,688
(10,569)
-
147,404
221,907
552,488
(556,835)
-
217,560

The Department of Health and Social Care (DHSC) provided two types of grant funding to CMT following the UK Government's apology to former Child Migrants in 2010. The £6M Family Restoration Fund was established in 2010 to cover the costs of family reunion travel. A further £2M fund was announced in July 2017. It can only be used by former Child Migrants or their relatives for reunion travel. To provide for all the necessary operational costs, including the social work and business support teams to manage and maintain the FRF, the DHSC allocates a section 70 (formerly section 64) grant each year.

The Former British Child Migrants Payments Scheme provides a payment of £20,000 to former child migrants sent overseas before December 1970. The Child Migrants Trust helps to administer this scheme on behalf of the Department of Health and Social Care by advising applicants and confirming their eligibility but is not involved in making the payments. The scheme is in recognition of the potential risks inherent in sending unaccompanied children abroad.

13. Analysis of net assets by fund

Fixed assets
Net current assets		 2021 2020
Unrestricted
funds
£
-
117,849		 Restricted
funds
£
1,140
216,420		 Total
funds
£
1,140
334,269		 Unrestricted
funds
£
-
95,203		 Restricted
Total
funds
funds
£
£
-
-
221,907
317,110
221,907
317,110
117,849 217,560 335,409 95,203

Page 26 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

14. Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net income / (expenditure) for year
Depreciation charges
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash flow from operating activities
Analysis of net debt
Cash at bank and in hand
Staff costs and numbers
Wages
Social security costs
Pension		 1 April
2020
884,592		 2021
£
15,433
570
(183,072)
(19,044)
(186,113)
Cashflow
(184,955)
2021
£
397,791
32,928
51,466
482,185		 2021
£
15,433
570
(183,072)
(19,044)
(186,113)
Cashflow
(184,955)
2021
£
397,791
32,928
51,466
482,185		 2020
£
(306,671)
-
105,404
(308,734)
(510,001)
31 March
2021
699,637
2020
£
430,595
32,322
54,329
517,246
482,185

15. Staff costs and numbers

The average weekly number of employees during the year was 7 (2020: 9)

The number of employees whose emoluments fell within the following bands:

£ 2021 2020
110,000 - 119,999 1 0
80,000 - 89,999 0 1
60,000 - 69,999 1 0
The remuneration of key management personnel is as follows:
2021 2020
£ £
Aggregate compensation 181,029 159,501

The remuneration of key management personnel is as follows:

Page 27 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

Pensions Disclosure

The CIO participates in the Nottinghamshire County Council Pension Fund (the Fund), which is part of the Local Government Pension Scheme (LGPS). This is a multi-employer defined benefit statutory scheme administered in accordance with the Local Government Pension Scheme Regulations 2013 (the Regulations) as amended, and the share of assets and liabilities applicable to each employer is not identifiable.

The results and assumptions of the most recent valuation of the scheme are as follows:

The valuers report that there are a few important regulatory uncertainties surrounding the 2019 valuation and that, although it is unclear what impact these will have on the future benefits of individual members, they have considered these issues in the assumptions used to set the contribution rates for employers.

The scheme as a whole is in deficit at 31 March 2019 by £405m. As mentioned above The CIO’s share of this cannot be identified and therefore the liability is not included in these financial statements.

In order to reduce the pension scheme deficit, CMT pays additional contributions which for the year ending 31st March 2021 totalled £17,038 (2020: £18,342). The additional contributions for financial year ending 31st March 2022 will be £17,659, and a further increase of 3.65% will be applied for the financial year ending 31st March 2023, when a new triennial valuation report will be produced by Nottinghamshire County Council. It is expected these contributions will restore the pension fund to a funding position of 100% over a recovery period length of no more than 19 years, as of 31st March 2019.

If the CIO left the scheme the regulations require that a cessation valuation be carried out to determine the assets and liabilities at closure. If there was a deficit then this would result in an exit charge

Post valuation events

Since the valuation date there has been some very significant movements in the investment markets and in particular over the three months to 31 March 2020, largely driven by the COVID-19 crisis. However, the funding model is designed to help withstand short-term volatility in markets as it is a longer-term model and the use of smoothed assumptions over a six-month period ultimately aims to set stable contributions for employers.

Page 28 of 29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 ( CONTINUED )

16. Operating leases

The charity has one lease for premises, which has now expired and is paid quarterly in advance at £6,000 per quarter. The total charge for the year is £24,000.

17. Trustees’ remuneration, benefits, and expenses

Trustees received no remuneration or benefits in this period.

Expenses totalling £281 were reimbursed during the year to one trustee (2020: £86 to one trustee).

18. Related party transactions

The Child Migrants Trust is incorporated as a registered charity in Britain and Australia. Although legally these are two separate organisations, their objectives and policies are synchronised to ensure close cooperation between both agencies. As most former child migrants live in Australia, it is essential to provide local services and to ensure that resources like the Family Restoration Fund (FRF) and the U.K. Government Payment Scheme can be accessed in Australia. Consequently, funds are sent from CMT in the U.K. to CMT in Australia to cover the costs of FRF travel and to cover part of the salary costs of the staff delivering these services.

During the year, Child Migrants Trust paid Child Migrants Trust Inc. £50,000 (2020: £59,645) in contribution to salaries and wages.

Child Migrants Trust Inc have assisted with the administration of the Former British Child Migrant Payment Scheme during the year. Salary and administration costs totalling £15,181 (2020: £48,049) have been incurred by Child Migrants Trust Inc and have been accrued in these financial statements.

At 31 March 2021, Child Migrants Trust owed Child Migrants Trust Inc. £54,133 (2020: £38,953).

19. Auditors Remuneration

During the period, the cost of the audit service was estimated at £4,600

20. Control relationships

The ultimate control of the charity lies with the board of trustees who are responsible for the charity’s affairs.

Page 29 of 29