**Registered number: 11008658 Charity number: 1176220**
## **HUMAN LOVE**
**(A Company Limited by Guarantee)**
## **UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2022**
**26/6/2019 14:04**
**DRAFT**
## **HUMAN LOVE**
## **(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **CONTENTS**
||Page|
|---|---|
|**Reference and Administrative Details of the Charitable Company, its trustees and**|1|
|**advisers**||
|**Trustees' Report**|2 - 6|
|**Independent Examiner's Report**|7 – 8|
|**Consolidated Statement of Financial Activities**|9|
|**Consolidated Balance Sheet**|10|
|**Charitable Company Balance Sheet**|11|
|**Notes to the Consolidated Financial Statements**|12 - 19|
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**DRAFT**
## **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITABLE COMPANY, ITS TRUSTEES AND ADVISERS**
## **Directors and Trustees**
M H E Quinn M A Hoffman R S Sharp D M Simpson
## **Company registered number**
11008658
## **Charity registered number**
1176220
## **Registered office**
Eighth Floor 6 New Street Square New Fetter Lane London EC4A 3AQ
## **Accountants**
Rawlinson & Hunter LLP Chartered Accountants Eighth Floor 6 New Street Square New Fetter Lane London EC4A 3AQ
## **Bankers**
Coutts & Co 440 Strand London WC2R 0QS
## **Solicitors**
Farrer & Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH
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## **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
**TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022**
The trustees present their annual report, together with the consolidated financial statements, of Human Love ("the Charitable Company") for the year ended 31 March 2022. The trustees confirm that the report and financial statements of the Charitable Company comply with the current statutory requirements, the requirements of the Charitable Company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Since the Charitable Company qualifies as small under section 383 of the Companies Act 2006, the strategic report required of medium and large companies under Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
## **Objectives and Activities**
## **a. POLICIES AND OBJECTIVES**
The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charitable Company's aims and objectives and in planning future activities and providing help in the form of gifts or grants or any combination of these.
## **b. STRATEGIES FOR ACHIEVING OBJECTIVES**
The current principal objective of the Charitable Company is to raise money and awareness of the global refugee crisis to help refugees around the world. Currently it is intended that, this will be achieved through various artworks made in collaboration with refugees, conceived by the artist Marc Quinn, a trustee of the Charitable Company.
The proposed artworks are:
1. _100 Heads_ : a series of 100 portrait busts of refugees which celebrate the sitters’ individualities and stories, in order to challenge the common media presentation of refugees as undifferentiated masses. Initially moved by the stories of refugees crossing the Mediterranean, Quinn felt compelled to make a co-authored artwork series with one hundred resettled refugees from different times and places, to raise awareness and raise funds for refugee causes. With much of his practice rooted in art history, Quinn found inspiration in the history of the Greek Islands, the birthplace of Classical Antiquity, where the genre of portraiture was born. To this day, the portrait bust has been employed continuously to immortalise the individuality, status and memory of sitters. Yet historically, it has been reserved for society’s most powerful, from royalty, religion, and mythology. The _100 Heads_ series leads us to question whom we traditionally choose to celebrate and immortalise within our collective humanity and why. _100 Heads_ are contemporary versions of Greco-Roman sculptures, made from concrete and based on 3D scans of the sitters. To date, Quinn has been making life-size portrait busts of resettled refugees living across Europe and the USA, who have sought refuge from different zones of displacement including Somalia, Syria, Iran, Burundi, Turkey, Rwanda, Burma and Venezuela, and from different humanitarian crises dating back to the Holocaust.
2. _Monumental Lives_ : a 4 metre high selection of the _100 Heads_ sculptures, to be promoted as public artworks to further raise monies and awareness.
3. _Our Blood_ : is to be a singular, monumental sculpture which consists of two substantial, identical cubes of frozen human blood. One is made from donations by about 5,000 resettled refugee volunteers and the other by 5,000 non-refugee volunteers. The sculpture is designed to demonstrate equality and solidarity. The two anonymous cubes will be displayed in bespoke refrigeration units and housed in a pavilion. The pavilion is designed by the renowned architect Norman Foster and the Norman Foster
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# **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
**TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2022**
## **Objectives and Activities (continued)**
## **b. STRATEGIES FOR ACHIEVING OBJECTIVES (continued)**
Foundation. The exhibition will tour the globe and will debut in New York City.
Each individual blood donor - refugee and non-refugee - is given the opportunity to tell their story, share their experiences and explain how they want to help. _Our Blood_ is not only a sculpture but also a library and video archive of human history and humanitarianism. These videos will be a powerful tool for creating awareness of the issue in an increasingly digital age.
Through personal stories and public advocacy from well-known refugees and non-refugees, including intellectuals and opinion formers, _100 Heads_ , _Monumental Lives_ and _Our Blood_ will harness the power of influence to spread the word and achieve the greatest possible impact.
Each project will raise funds for refugees through the sale of a Marc Quinn artwork and various fundraising initiatives and aims to raise millions of dollars to support refugees.
All profits from the artworks will go to refugee causes selected by the sitters, refugee advisors and trustees.
## **c. ACTIVITIES FOR ACHIEVING OBJECTIVES**
The trustees have a number of powers which are detailed in the Memorandum of Association and which may be exercised in promoting the objectives of the Charitable Company.
The primary activities during the year were development and fundraising activities on the _100 Heads_ , _Monumental Lives_ and _Our Blood_ projects.
## **Achievements and performance**
## **a. REVIEW OF ACTIVITIES**
In the financial period under review, consolidated income receivable totalled £57,244 ( _2021 - £261,793_ ), which included donations (including Gift Aid) and interest receivable. Of this income, £Nil ( _2021 - £39_ ) is restricted.
Consolidated expenditure for the period was £252,296 ( _2021 - £378,055_ ) which includes expenditure on raising funds of £240,583 ( _2021 - £353,223_ ) and governance costs of £11,713 ( _2021 - £24,832_ ).
## **Financial review**
## **a. GOING CONCERN**
After making appropriate enquiries, the trustees have a reasonable expectation that the Charitable Company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
The Covid-19 pandemic, war in Ukraine, inflation and interest rate rises had an effect on all UK companies in a wide ranging manner, potentially affecting their operational capability, liquidity and financial position.
The trustees have considered the implications and have put in place business continuity plans that should allow the Charitable Company to continue in operation.
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**HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
**TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2022**
## **Financial review (continued)**
## **b. RESERVES POLICY**
The cumulative income received by the Charitable Company to date has been higher than the cumulative direct charitable expenditure and governance costs incurred and results in a reserves surplus at the end of the period of £979,561 _(2021 - £954,058)_ of which £7,236 _(2021 - £7,236)_ is restricted.
The trustees have no outstanding commitments or cash demands which are not adequately covered by existing resources. At this stage the trustees feel that it would be inappropriate to adopt a specific reserves policy. The trustees will keep this under review. In future years, a specific reserves policy may be required.
## **Structure, governance and management**
## **a. CONSTITUTION**
The Charitable Company is registered as a Charitable Company limited by guarantee and was set up by a Memorandum of Association on 11 October 2017.
The Charity is registered as a charity with the Charity Commission (charity number 1176220).
The principal object of the Charitable Company is to raise money and awareness of the global refugee crisis including through the Marc Quinn artwork projects _100 Heads_ , _Monumental Lives_ and _Our Blood._
## **b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES**
The management of the Charitable Company is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association.
## **c. POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF TRUSTEES**
As part of their training, trustees are given an information pack which includes the Charitable Company's Memorandum and Articles of Association and Charity Commission guidance on Trustees' Responsibilities. All trustees are kept informed at meetings of their duties and obligations under the law in addition to their proper conduct.
The trustees are aware of their obligations to ensure new trustees are properly versed in their role. A similar induction process will be undertaken for new trustees as the Charitable Company develops and will include providing the trustees with additional documentation such as recent annual reports, grant making policy and relevant minutes. The training of trustees will be kept under review.
## **d. ORGANISATIONAL STRUCTURE AND DECISION MAKING**
The trustees meet regularly and decisions are made at trustees' meetings. The day to day administration of the Charitable Company is undertaken by the trustees.
## **e. RISK MANAGEMENT**
The trustees have assessed the major risks to which the Charitable Company is exposed, in particular those related to the operations and finances of the Charitable Company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
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## **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
**TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2022**
## **Plans for future periods**
## **a. FUTURE DEVELOPMENTS**
The Charitable Company's main objectives for the next financial year are:
- To further increase awareness of the _100 Heads_ , _Monumental Lives_ and _Our Blood_ projects and the refugee crisis through promotional and marketing activities.
- To continue fundraising to help fund the projects and deliver various exhibitions associated with the projects over the next few years.
- To continue to develop, produce and sell (via the Charitable Company’s subsidiary company) sculptures from the _100 Heads_ and _Monumental Lives_ series for fundraising and awareness purposes.
## **Internal Controls**
The trustees have overall responsibility for ensuring that the Charitable Company has appropriate systems of internal controls. They are also responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements follow best practice. They are also responsible for the Charitable Company safeguarding its assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The system of internal controls is designed to provide reasonable, but not absolute, assurance against material misstatement or loss.
## **TRUSTEES' RESPONSIBILITIES STATEMENT**
The trustees (who are also directors of Human Love for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company 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 judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charitable Company will continue in operation.
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## **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
**TRUSTEES' REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2022**
## **TRUSTEES' RESPONSIBILITIES STATEMENT (continued)**
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable Company's transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of any corporate and financial information included on any website operated by Human Love or its subsidiary. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report was approved by the trustees, and signed on their behalf by:
…………………… **D M Simpson** Trustee
Date: Jan 31, 2023
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**DRAFT**
## **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
**INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2022**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HUMAN LOVE**
I report on the financial statements of Human Love ("the Charitable Company") for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheet and the related notes.
This report is made solely to the Charitable Company's trustees, as a body, in accordance with section 145 of the Charities Act 2011 and regulations made under section 154 of the Act. My work has been undertaken so that I might state to the Charitable Company's trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charitable Company and the Charitable Company's trustees as a body, for my work or for this report.
## **RESPECTIVE RESPONSIBILITIES AND BASIS OF REPORT**
As the trustees of the Charitable Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (“the 2006 Act”).
Having satisfied myself that the accounts of the Charitable Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charitable Company's accounts carried out under section 145 of the Charities Act 2011 (“the 2011 Act”). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **INDEPENDENT EXAMINER'S STATEMENT**
I have completed my examination. I can confirm that no 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 the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act 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; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
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## **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
# **INDEPENDENT EXAMINER'S REPORT (continued) FOR THE YEAR ENDED 31 MARCH 2022**
## **INDEPENDENT EXAMINER'S STATEMENT (continued)**
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.
## D C Davies
D C Davies (Jan 31, 2023 16:31 GMT)
……………………… Signed:
## **David Davies FCA CTA**
Rawlinson & Hunter LLP Chartered Accountant and Independent Examiner Eighth Floor 6 New Street Square New Fetter Lane London EC4A 3AQ
> Dated: Jan 31, 2023
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## **HUMAN LOVE**
## **(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING THE INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2022**
|**Note**
**INCOME FROM:**
Charitable activities
3
Other income
4
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds
5
Governance costs
6
**TOTAL EXPENDITURE**
**NET INCOME BEFORE OTHER**
**RECOGNISED GAINS AND LOSSES**
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|**Unrestricted**
**funds**
**2022**
**£**
**37,516 **
**19,728**|**Unrestricted**
**funds**
**2022**
**£**
**37,516 **
**19,728**|**Unrestricted**
**funds**
**2022**
**£**
**37,516 **
**19,728**|**Restricted**
**funds**
**2022**
**£**
_-_|**Total**
**funds**
**2022**
**£**
**37,516**
**19,728**|_Total_
_funds_
_2021_
_£_
_261,741_
_52_|
|---|---|---|---|---|---|---|
||||**57,244**|**-**|**57,244**|_261,793_|
||||
**240,583**
**11,713**|**-**
**-**
**-**|**240,583**
**11,713**
**252,296**|
_353,223_
_24,832_
_378,055_|
||||
**252,296**||||
||
|
|**(195,052)**
**(195,052)**
**778,792**|-
**-**
**_ 7,236**
**7,236**|**(195,052)**
**(195,052)**
**786,028**
**590,976**|_(116,262)_
_(116,262)_
_902,290_|
||||**583,740**|||_786,028_|
The notes on pages 12 to 19 form part of these financial statements.
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## **14:04**
## **HUMAN LOVE**
## **(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022**
|**Note**
**CURRENT ASSETS**
Stocks
8
Debtors
9
Cash at bank and in hand
**CREDITORS:**amounts falling due within
one year
10
**NET CURRENT ASSETS**
**NET ASSETS**
**FUNDS OF THE GROUP**
Restricted funds
11
Unrestricted funds
11
**TOTAL FUNDS**|**£**
**1,026,024**
**9,224**
**19,659**|**2022**
**£**
_£_
_1,026,024_
_18,454_
_31,547_
_1,076,025_
_(289,997)_
**590,976**
**£**
**590,976**
**7,236**
**583,740**
**£**
**590,976**|_2021_
_£_
_786,028_|
|---|---|---|---|
||**1,054,907**
**(463,931)**|||
|||||
||||_£_
_786,028_|
||||
_7,236_
_778,792_|
||||_£_
_786,028_|
For the year ended 31 March 2022 the Charitable Company was entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the 2006 Act") relating to small companies and the members have not required the Charitable Company to obtain an audit for the year in question in accordance with section 476 of the 2006 Act.
The directors acknowledge their responsibilities for complying with the requirements of the 2006 Act with respect to accounting records and the preparation of financial statements.
These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime.
The financial statements were approved and authorised for issue by the trustees and signed on their behalf, by:
## **………………….**
## **D M Simpson**
## Date: Jan 31, 2023
The notes on pages 12 to 19 form part of these financial statements.
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## **HUMAN LOVE**
## **(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **CHARITABLE COMPANY BALANCE SHEET AS AT 31 MARCH 2022**
|**Note**
**FIXED ASSETS**
Investments
7
**CURRENT ASSETS**
Debtors
9
Cash at bank and in hand
**CREDITORS:**amounts falling due within one
year
10
**NET CURRENT ASSETS**
**NET ASSETS**
**FUNDS OF THE CHARITY**
Restricted funds
11
Unrestricted funds
11
**TOTAL FUNDS**|**£**
**989,911**
**609**|**2022**
**£**
_£_
**1**
_971,704_
_2,803_
_974,507_
_(20,450)_
**979,560**
**£**
**979,561**
**7,236**
**972,325**
**£**
**979,561**|_2021_
_£_
_1_
_954,057_|
|---|---|---|---|
||**990,520**
**(10,960)**|||
|||||
||||_£_
_954,058_|
||||
_7,236_
_946,822_|
||||_£_
_954,058_|
For the year ended 31 March 2022 the Charitable Company was entitled to exemption from the requirement to have an audit under the provisions of section 477 of the Companies Act 2006 ("the 2006 Act") relating to small companies and the members have not required the Charitable Company to obtain an audit for the year in question in accordance with section 476 of the 2006 Act.
The directors acknowledge their responsibilities for complying with the requirements of the 2006 Act with respect to accounting records and the preparation of financial statements.
These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime.
The financial statements were approved and authorised for issue by the trustees and signed on their behalf, by:
## ……………………
## **D M Simpson**
> Date: Jan 31, 2023
The notes on pages 12 to 19 form part of these financial statements.
Page | 11
## **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **1. ACCOUNTING POLICIES**
## **1.1 General information**
Human Love ("the Charitable Company") is a registered charity (charity number 1176220) limited by guarantee, whose principal object is to raise money and awareness of the global refugee crisis through the Marc Quinn artworks outlined in the Trustees’ Report (“the Artwork”). The Artwork is being produced by the Charitable Company’s wholly owned subsidiary incorporated in England and Wales, Human Love Worldwide Limited (“the Subsidiary”).
In the event of the Charitable Company being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charitable Company. The address of the registered office is given on page 1 of these financial statements.
## **1.2 Basis of preparation of financial statements**
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 Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice. The Charitable Company constitutes a public benefit entity as defined by Charities SORP FRS 102.
The financial statements are prepared on a going concern basis and under the historical cost convention. The financial statements are prepared in Sterling which is the functional currency of the Charitable Company.
A separate Statement Of Financial Activities and Income and Expenditure account for the Charitable Company has not been presented as it has taken advantage of the exemption allowed under section 408 of Companies Act 2006.
The significant accounting policies applied in the preparation of these financial statements are set out below.
## **1.3 Consolidation**
The consolidated financial statements comprise those of the Charitable Company and the Subsidiary, both made up to 31 March 2022. The financial statements are consolidated on a line-by-line basis and eliminate all intra-group transactions and balances.
## **1.4 Income**
All income is recognised once the Charitable Company has entitlement to the income and it is probable that the funds will be received within the Charitable Company or on behalf of the Charitable Company and the monetary value of incoming resources can be measured with sufficient reliability.
Donations are recognised in the financial statements, within “Donations”, when the Charitable Company acts as principal for these fundraising projects. A corresponding donation expense is recorded in respect of these donations such that there is no net impact on the Statement of Financial Activities (refer to “Expenditure” below for details).
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## **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **1. ACCOUNTING POLICIES (continued)**
## **1.4 Income (continued)**
Donated services and facilities are included at the value to the Charitable Company where this can be quantified.
Donation income is deferred when the donations are received in advance and specified by the donor as relating to specific accounting periods; or alternatively which are subject to conditions which are still to be met and which are outside the control of the Charitable Company; or when it is uncertain whether the conditions can or will be met. These are deferred to the year to which they relate and released to incoming resources in that year.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income from trading activities includes income earned from the sale of the Artwork (an activity carried out by the Subsidiary). Income is recognised when significant risks and rewards of ownership of the Artwork have transferred to the buyer, the amount of income can measured reliably, it is probable that the economic benefits associated with the transaction will flow to the Subsidiary and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
## **1.5 Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to that 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.
Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.
Charitable activities and governance costs are costs incurred on the Charitable Company's operations, including support costs and costs relating to the governance of the company apportioned to charitable activities.
All expenditure is inclusive of irrecoverable VAT.
## **1.6 Investment in subsidiary**
Investment in the Subsidiary is held at cost less provision for impairment, if any.
## **1.7 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.
## **1.8 Stocks**
Stocks and work in progress are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost includes feasibility studies and design costs, together with all direct costs of the manufacture and production of any projects undertaken.
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## **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **1. ACCOUNTING POLICIES (continued)**
## **1.8 Stocks (continued)**
At each balance sheet date, stocks and work in progress are assessed for impairment. If stocks or work in progress are impaired, the carrying amount is reduced to its estimated selling price less costs to complete and sell. The impairment loss is recognised immediately in the Profit and Loss Account.
## **1.9 Cash at Bank and in hand**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1.10 Liabilities and provisions**
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 company 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. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
## **1.11 Tax**
The Charitable company is exempt within the meaning of Schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a Charitable Company for UK corporation tax purposes.
Current tax represents the amount of tax payable or recoverable in respect of the taxable profit or loss for the current or past reporting periods in relation to the commercial trading activity conducted by the Subsidiary. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. The tax amount is shown under other expenditure in the Profit and Loss Account.
## **1.12 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Charitable Company 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 Charitable Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **2. COMMERCIAL TRADING OPERATIONS**
The Charitable Company has appointed the Subsidiary to raise funds through promotional, marketing and fundraising campaigns and to also procure the creation of the Artwork.
Page | 14
## **HUMAN LOVE**
**(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2. COMMERCIAL TRADING OPERATIONS (continued)**
A summary of the Subsidiary’s trading results for the year ended 31 March 2022 and year ended 31 March 2021 are shown below. Unaudited financial statements are filed annually with Companies House.
## **Profit and loss account**
||**Year ended**|**Year ended**||_Year ended_|
|---|---|---|---|---|
||**31 March 2022**||_31_|_March 2021_|
|||**£**||_£_|
|Sales||**57,207**||_240,847_|
|Cost of sales||**(14,451)**||_(44,106)_|
|Media, fundraising and social media awareness expenses||**(161,974)**||_(205,372)_|
|Recharged expenses||**(19,719)**|||
|Administrative expenses||**(50,274)**||_(103,091)_|
|Interest receivable and similar income||**9**||_52_|
|Interest payable and similar expenses||**(31,353)**||_(28,479)_|
|Result for the year|||||
||**£**|**(220,555)**|_£ 140,149_||
|||**2022**||_2021_|
|||**£**||_£_|
|Net liabilities|**£**|**(388,585)**|_£_|
_(168,030)_|
## **3. INCOME FROM CHARITABLE ACTIVITIES**
|Donations
Sale of artworks|**Unrestricted**
**funds**
**2022**
**£**
**28**
**37,488**
**£**
**37,516**|**Restricted**
**funds**
**2022**
**£**
**-**
**-**
**£**
**-**|**Total**
**funds**
**2022**
**£**
**28**
**37,488**
**£**
**37,516**|_Total_
_funds_
_2021_
_£_
_20,894_
_240,847_|
|---|---|---|---|---|
|||||_£_
_261,741_|
Page | 15
## **HUMAN LOVE**
## **(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **4. OTHER INCOMING RESOURCES**
|Bank interest receivable
Recharged expenses
Other interest receivable
**5.**
**COSTS OF RAISING FUNDS**
Cost of sales
Media, fundraising and social media
awareness expense
Recharged expenses
Administrative expenses|**Unrestricted**
**funds**
**2022**
**£**
**-**
**19,719**
**9**
**£**
**19,728**
**Unrestricted**
**funds**
**2022**
**£**
**14,451**
**161,975**
**19,719**
**44,438**
**£ 240,583**||**Restricted**
**funds**
**2022**
**£**
**-**
**-**
**-**||**Total**
**funds**
**2022**
**£**
**-**
**19,719**
**9**
**£**
**19,728**
**Total**
**funds**
**2022**
**£**
**14,451**
**161,975**
**19,719**
**44,438**
**£ 240,583**|_Total_
_funds_
_2021_
_£_
_52_
_-_
_-_|
|---|---|---|---|---|---|---|
||**£**|**£**|
**-**|||_£_
_52_|
|||
|**Restricted**
**funds**
**2022**
**£**
**-**
**-**
**-**
**-**|||_Total_
_funds_
_2021_
_£_
_44,106_
_206,146_
_-_
_102,971_|
||||**£ -**|||_£ 353,223_|
The Charitable Company had no employees during the year under review, excluding directors and trustees. No employee earned in excess of £60,000 during the period.
No trustee received emoluments in the year under review, nor were any expenses paid to the trustees for attendance at meetings.
## **6. GOVERNANCE COSTS**
|Accountancy
Legal and professional fees|**Unrestricted**
**funds**
**2022**
**£**
**11,713**
**-**
**£**
**11,713**|**Restricted**
**funds**
**2022**
**£**
**-**
**-**
**£ -**|**Total**
**funds**
**2022**
**£**
**11,713**
**-**
**£**
**11,713**|_Total_
_funds_
_2021_
_£_
_22,442_
_2,390_|
|---|---|---|---|---|
|||||_£_
_24,832_|
Page | 16
**1 £ 1**
## **HUMAN LOVE**
## **(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **7. FIXED ASSET INVESTMENTS**
**Shares in group undertakings £**
## **Cost**
At 1 April 2021 At 31 March 2022
## **Subsidiary undertakings**
The following were subsidiary undertakings of the company:
|**Name**
Human Love Worldwide Limited
**8.**
**STOCKS**
Work in progress
**9.**
**DEBTORS**
Amounts owed by group undertakings
Other debtors
Tax recoverable|
**£**|**Group**
**2022**
**£**
**1,026,024**
**Group**
**2022**
**£**
**-**
**9,224**
**_ -**
**£ 9,224**|
**£**|**Holding**
100%
**Charity**
_Group_
**2022**
_2021_
**£**
_£_
**£ -**
_£ 1,026,024_
**Charity**
_Group_
**2022**
_2021_
**£**
_£_
**989,911**
_-_
**-**
_10,728_
**-**
_7,726_
**989,911**
_£ 18,454_|_Charity_
_2021_
_£_
_£ -_
_Charity_
_2021_
_£_
_971,704_
_-_
_-_
_£ 971,704_|
|---|---|---|---|---|---|
||
|
**£**||||
Page | 17
## **HUMAN LOVE**
## **(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **10. CREDITORS: Amounts falling due within one year**
|Bank overdrafts
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income|**Group**
**2022**
**£**
**167**
**167,774**
**1,556**
**268,534**
**25,900**
**£ 463,931**|**Charity**
**2022**
**£**
**87**
**1,986**
**-**
**3,887**
**5,000**
**£ 10,960**|_Group_
_2021_
_£_
-
207,030
1,473
66,494
15,000
£ 289,997|_Charity_
_2021_
_£_
-
6,897
-
5,053
8,500
£ 20,450|
|---|---|---|---|---|
## **11. STATEMENT OF FUNDS**
## **Group**
|**Group**||||||||||
|---|---|---|---|---|---|---|---|---|---|
|**Unrestricted funds**
Other General funds
**Restricted funds**
International Rescue Committee
Total of funds
**Charity**
**Unrestricted funds**
Other General funds
**Restricted funds**
International Rescue Committee
Total of funds|**Balance at**
**1 April 2021**
**£**
**778,792**|||**Income**
**£**
**57,244**|**Expenditure**
**£**
**(252,296)**||
||**Balance at**
**31 March**
**2022**
**£**
**583,740**|
||**7,236**
**£ 786,028**
**Balance at**
**1 April 2021**
**£**
**946,822**
**7,236**|**7,236**
**£ 786,028**|**7,236**|**-**|
**-**
**£ (252,296)**||**£**||**7,236**|
|||||**£**
**57,244**|||||**590,976**|
|||||
**Income**
**£**
**31,381**|
**Expenditure**
**£**
**(5,878) **||
||
**Balance at**
**31 March**
**2022**
**£**
**972,325**|
|||**7,236**||**-**
**£**
**31,381**|**£**|**-**|||**7,236**|
|||**£ 954,058**||||
**(5,878)**|**£**||**979,561**|
The unrestricted funds represent the general reserves of the Charitable Company which are not restricted for particular purposes. The restricted funds represent the proportion of donation income due to the International Rescue Committee, the global charity partner of the _Our Blood_ project.
Page | 18
## **HUMAN LOVE**
## **(A Company Limited by Guarantee) Registered number: 11008658 Charity number: 1176220**
## **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **12. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**Group**
Current assets
Creditors due within one year|**Unrestricted**
**funds**
**2022**
**£**
**1,047,671**
**(463,931)**
**£**
**583,740**|**Restricted**
**funds**
**2022**
**£**
**7,236**
**-**
**£**
**7,236**|**Total**
**funds**
**2022**
**£**
**1,054,907**
**(463,931)**
**£**
**590,976**|_Total_
_funds_
_2021_
_£_
_1,076,025_
_(289,997)_|
|---|---|---|---|---|
|||||_£_
_786,028_|
## **13. LEGAL STATUS**
Human Love is a Charitable Company limited by guarantee with no share capital. In the event of the Charitable Company being wound up, the sole member, Bronze Orchid Limited, has agreed to pay up to £1 towards:
- payment of those debts and liabilities of the Charitable Company incurred before it ceased to be a member;
- payment of the costs, charges and expenses of winding up, and
- the adjustment of rights of contributors among themselves.
## **14. ULTIMATE CONTROLLING PARTY**
The ultimate controlling party is considered to be the Board of Trustees.
## **15. CONTINGENT LIABILITIES**
For certain donations, the Charitable Company has agreed to make onward donations to the IRC, as stipulated to the donors and as reflected in restricted reserves (see Note 11). If and when a formal agreement is in place between the Charitable Company and the IRC, it is intended that the parties will work on the basis that if these Contributions do not exceed the sum of $350,000, IRC will be entitled to receive the difference between the sum of $350,000 and the total value of donations made.
## **16. RELATED PARTY TRANSACTIONS**
The group total within creditors falling due within one year (Note 10) includes an amount of £428,217 _(2021 - £245,925)_ due to Bronze Orchid Limited, an entity which is controlled by M H E Quinn who is a trustee of the Charity. This amount represents funding from Bronze Orchid Limited for the Artwork projects net of payroll recharges and various running costs recharges. It is unsecured, interest free and repayable on demand.
Page | 19
**Human Love Eighth Floor 6 New Street Square New Fetter Lane London EC4A 3AQ Registered Number: 11008658 Charity Number: 1176220**
Rawlinson & Hunter LLP Chartered Accountants Eighth Floor 6 New Street Square New Fetter Lane London EC4A 3AQ
Dear Sirs
We confirm to the best of our knowledge and belief, the following representations which were made to you in connection with the preparation of the unaudited financial statements of Human Love (“the Charitable Company”) for the year ended 31 March 2022. We acknowledge as directors, our responsibility under the Companies Act 2006 for presenting financial statements, which give a true and fair view, and for making accurate representations to you. We also acknowledge our wider responsibilities under the Charities Act 2011 and the new Charities Act 2022.
## **Exemption from audit in the UK**
We confirm that the Charitable Company’s financial statements for the year ended 31 March 2022 do not require a UK statutory audit. In particular, we confirm that the results of the Charitable Company and the group it is a part of, are such that the audit exemption criteria as defined in Companies Act 2006 and Charities Act 2011 have not been breached and the group does not contain any ineligible companies.
## **Accounting policies and estimation techniques**
We confirm that the accounting policies and estimation techniques, including those measured at fair value, adopted for the preparation of the financial statements are the most appropriate to the circumstances in which the Charitable Company operates.
## **Completeness of transactions**
All accounting records of the Charitable Company, together with all supporting documentation, information and explanations necessary for an understanding of the transactions entered into, assets owned and liabilities and commitments incurred, have been made available to you. Complete minutes of all meetings of shareholders and directors have been made available to you. We are not aware of any irregularities, defalcations or breaches of internal control involving
**- 2 -**
management or staff which may have an effect on your preparation of the Charitable Company’s unaudited financial statements.
All monies to which the Charitable Company is entitled and all income and expenses of the Charitable Company have been properly recorded in the accounting records of the Charitable Company in line with the revenue recognition and other accounting policies noted in the Charitable Company’s financial statements.
We confirm that the Charitable Company has appointed Human Love Worldwide Limited, its subsidiary company, to raise funds through promotional, marketing and fundraising campaigns. We further confirm that despite Human Love Worldwide Limited’s net liability position, we have considered and concluded that no impairment provision is required to be reflected in the books of the charitable company and that, in the ordinary course of business with completion of the overall project, the amounts due to the charitable company by its subsidiary are recoverable in full.
## **Assets**
All assets of the Charitable Company of which we are aware, are included in the balance sheet at 31 March 2022 and we are not aware of any charge, lien or encumbrance on any of the assets other than those disclosed in the financial statements. On realisation in the ordinary course of the Charitable Company's business, the assets are expected to produce at least the amount at which they are stated in the balance sheet.
## **Liabilities**
All liabilities of the Charitable Company of which we are aware are included in the balance sheet at 31 March 2022. Full provision has been made for all commitments and other events which had occurred by the balance sheet date and are expected to result in a significant loss. We are not aware of any contingent liabilities, pending or threatened litigation or other gain or loss contingencies which require adjustment to or disclosure in the financial statements, other than those disclosed in the financial statements.
## **Post balance sheet events**
We are not aware of any events which have occurred since the balance sheet date which would require adjustment to or disclosure in the financial statements. We have no plans or intentions that may significantly affect the carrying value of any of the assets or liabilities at 31 March 2022.
## **Law and regulations**
We are not aware of any breach in any laws or regulations which are fundamental to the continued trading activity of the Charitable Company and which might result in the Charitable Company suffering significant penalties or other loss.
## **Fraud and error**
We are not aware of any significant facts relating to any frauds or suspected frauds involving management, employees who have significant roles in internal controls or others where the fraud could have a material effect on the financial statements.
**- 3 -**
We have disclosed to you our knowledge of any allegations of fraud, or suspected fraud, affecting the Charitable Company’s financial statements communicated by employees, former employees, analysts, regulators or others.
## **Related party transactions**
There have been no significant transactions with related parties other than those detailed in the financial statements and we are not aware of any other such matters required to be disclosed in the financial statements whether under the Financial Reporting Standard 102 (“FRS 102”) or other requirements.
All transactions with related parties were conducted at "arm’s length" or on normal commercial terms. We have made available to you all relevant information concerning such transactions.
We specifically confirm that the following transactions with Bronze Orchid Limited, an entity which is controlled by M H E Quinn who is a trustee of the Charity, have been undertaken under normal market conditions.
**----- Start of picture text -----**
£
Opening balance as at 1 April 2021 240,872
Advances during the year 205,000
Salary recharges (19,748)
Net expenses paid (1,794)
Accrued expenses 14,400
Closing balance as at 31 March 2022 438,730
**----- End of picture text -----**
## **Going concern**
We consider that, after making due enquiries and specifically considering the implications of the Covid-19 pandemic, war in Ukraine, inflation and interest rate rises, there is a reasonable expectation that the Charitable Company will have adequate resources to continue operations for the foreseeable future. For this reason we continue to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2022.
We have reached this conclusion having regard to circumstances which we consider may occur during a period of at least one year from the date of this letter and in the light of a number of considerations. The key factors are set out below.
- The Charitable Company has a positive cash position.
- The Charitable Company has net asset and net current assets.
- The Charitable Company has business continuity and cash flow contingency plans.
**- 4 -**
## **Approval of Accounts**
We confirm that we have reviewed and approved the unaudited financial statements, comprising the Trustees’ Report, Consolidated Statement of Financial Activities, Consolidated Balance Sheet, Charitable Company Balance Sheet and the related notes, for the year ended 31 March 2022, which have been prepared in accordance with the special provisions relating to entities subject to the small companies regime within Part 15 of the Companies Act 2006, and authorised these for issue and filing at Companies House.
Yours faithfully
……………………………. For and on behalf of Human Love
> Date: Jan 31, 2023