## **Forever Colours Children's Hospice**
## **Independent examiner's report**
## **For the year ended 31 March 2022**
## **Independent examiner's report to the Trustees of Forever Colours Children's Hospice ('the Charity')**
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2022.
## **Responsibilities and basis of report**
As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
Your attention is drawn to the fact that the Charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.
I have completed my examination. I 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 Charity as required by section 130 of the 2011 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
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. My work has been undertaken so that I might state to the Charity'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 Charity and the Charity's Trustees as a body, for my work or for this report.
Signed:
Dated:
Steve Moss BSc (Hons) ACA
**Kreston Reeves LLP** Chartered Accountants London
Page 19
## **Forever Colours Children's Hospice**
## **Statement of financial activities For the year ended 31 March 2022**
|**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
**Total income**
**Expenditure on:**
Raising funds
5
Charitable activities
6
**Total expenditure**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2022**
**£**
**174,075**
**6,396**
**180,471**
**1,582**
**137,862**
**139,444**
**41,027**
**20,645**
**41,027**
**61,672**|**Total**
**funds**
**2022**
**£**
**174,075**
**6,396**
**180,471**
**1,582**
**137,862**
**139,444**
**41,027**
**20,645**
**41,027**
**61,672**|Total
funds
2021
£
79,015
-
79,015|
|---|---|---|---|
||||2,421
55,949
58,370|
||||20,645|
||||-
20,645
20,645|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 22 to 31 form part of these financial statements.
Page 20
## **Forever Colours Children's Hospice**
## **Balance sheet As at 31 March 2022**
|**Note**
**Fixed assets**
Tangible assets
11
**Current assets**
Cash at bank and in hand
Creditors: amounts falling due within one
year
12
**Net current assets**
**Total net assets**
**Charity funds**
Unrestricted funds
**Total funds**|**64,749**
**(7,103)**|**2022**
**£**
**4,026**
**57,646**
**61,672**
**61,672**
**61,672**|19,431
(3,366)|2021
£
4,580
16,065|
|---|---|---|---|---|
|||||20,645|
|||||20,645|
|||||20,645|
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
## **E B V Charvet**
(Chair of Trustees)
## Date:
The notes on pages 22 to 31 form part of these financial statements.
Page 21
**Forever Colours Children's Hospice**
**Notes to the financial statements For the year ended 31 March 2022**
## **1. General information**
Forever Colours Children's Hospice is a charity registered in England, with registration number 1191073. The charity's registered address is 48 Frobisher Road, London, N8 0QX. The principal activity of the charity is to promote and facilitate the relief, treatment and care of children and young persons living in the UK with life-limiting and/or life-threatening conditions.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Forever Colours Children's Hospice meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **2.2 Going concern**
The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events and conditions that may cast signficant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements, and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future, and there are no material uncertainties about the Charity's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
## **2.3 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Page 22
**Forever Colours Children's Hospice**
**Notes to the financial statements For the year ended 31 March 2022**
## **2. Accounting policies (continued)**
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **2.5 Tangible fixed assets and depreciation**
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
|Fixtures and fittings|-|20%|
|---|---|---|
|Computer equipment|-|20%|
## **2.6 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.
## **2.7 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 Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
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 in the Statement of financial activities as a finance cost.
Page 23
**Forever Colours Children's Hospice**
## **Notes to the financial statements For the year ended 31 March 2022**
## **2. Accounting policies (continued)**
## **2.8 Financial instruments**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.9 Pensions**
The Charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Charity to the fund in respect of the year.
## **2.10 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 Charity and which have not been designated for other purposes.
## **3. Income from donations and legacies**
|Donations
Donations
Other income|**Unrestricted**
**funds**
**2022**
**£**
174,075
Unrestricted
funds
2021
£
78,656
359
79,015|**Total**
**funds**
**2022**
**£**
**174,075**|
|---|---|---|
|||Total
funds
2021
£
78,656
359
79,015|
## **4. Income from charitable activities**
||**Unrestricted**|**Total**|Total|
|---|---|---|---|
||**funds**|**funds**|funds|
||**2022**|**2022**|2021|
||**£**|**£**|£|
|Income from charitable activities|6,396|**6,396**|-|
Page 24
**Forever Colours Children's Hospice**
**Notes to the financial statements For the year ended 31 March 2022**
**5. Expenditure on raising funds**
- **Costs of raising voluntary income**
|**Unrestricted**
**funds**
**2022**
**£**
Fundraising costs
1,582
Unrestricted
funds
2021
£
Fundraising costs
2,421|**Total**
**funds**
**2022**
**£**
**1,582**|
|---|---|
||Total
funds
2021
£
2,421|
## **6. Analysis of expenditure on charitable activities Summary by fund type**
|**Unrestricted**
**funds**
**2022**
**£**
Charitable activities
137,862
Unrestricted
funds
2021
£
Charitable activities
55,949|**Total**
**2022**
**£**
**137,862**|
|---|---|
||Total
2021
£
55,949|
Page 25
**Forever Colours Children's Hospice**
## **Notes to the financial statements For the year ended 31 March 2022**
## **7. Analysis of expenditure by activities**
|Charitable activities
Charitable activities
**Analysis of direct costs**
Staff costs
Depreciation
Equipment
Staff costs
Depreciation|**Activities**
**undertaken**
**directly**
**2022**
**£**
106,143
Activities
undertaken
directly
2021
£
49,761|**Support**
**costs**
**2022**
**£**
31,719
Support
costs
2021
£
6,188
**Activities**
**2022**
**£**
104,760
1,053
330
106,143
Activities
2021
£
49,161
600
49,761|**Total**
**funds**
**2022**
**£**
**137,862**|
|---|---|---|---|
||||Total
funds
2021
£
55,949|
||||**Total**
**funds**
**2022**
**£**
**104,760**
**1,053**
**330**
**106,143**|
||||Total
funds
2021
£
49,161
600
49,761|
Page 26
**Forever Colours Children's Hospice**
## **Notes to the financial statements For the year ended 31 March 2022**
## **7. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Advertising
Family Days/Packs
Entertainment
Computer costs
Travel expenses
Subscriptions
Clothing costs
Printing, postage & stationery
Accountancy
DBS costs
Advertising
Family Days/Packs
Entertainment
Computer costs
Travel expenses
Subscriptions
Clothing costs
Bank charges
Printing, postage and stationery
Accountancy
DBS costs|**Activities**
**2022**
**£**
1,463
16,459
100
4,971
2,555
1,214
226
669
4,032
30
31,719
Activities
2021
£
807
1,275
34
341
305
166
380
12
193
2,400
275
6,188|**Total**
**funds**
**2022**
**£**
**1,463**
**16,459**
**100**
**4,971**
**2,555**
**1,214**
**226**
**669**
**4,032**
**30**
**31,719**|
|---|---|---|
|||Total
funds
2021
£
807
1,275
34
341
305
166
380
12
193
2,400
275
6,188|
Page 27
**Forever Colours Children's Hospice**
## **Notes to the financial statements For the year ended 31 March 2022**
## **8. Independent examiner's remuneration**
||2022|2021|
|---|---|---|
||**£**|£|
|Fees payable to the Charity's independent examiner for the independent|||
|examination of the Charity's annual accounts|**2,400**|2,400|
## **9. Staff costs**
|Wages and salaries
Social security costs
Contribution to defined contribution pension schemes|**2022**
**£**
**98,155**
**4,288**
**2,317**
**104,760**|2021
£
47,778
468
915|
|---|---|---|
|||49,161|
The average number of persons employed by the Charity during the year was as follows:
||**2022**|2021|
|---|---|---|
||**No.**|No.|
|Employees|**6**|6|
No employee received remuneration amounting to more than £60,000 in either year.
Remuneration paid to Key Management Personnel during the period was £75,412 (2021: £43,235).
## **10. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).
During the year ended 31 March 2022, expenses totalling £115 were incurred by 1 Trustee (2021 - £NIL to no Trustee).
Page 28
**Forever Colours Children's Hospice**
## **Notes to the financial statements For the year ended 31 March 2022**
## **11. Tangible fixed assets**
|**Cost**
At 1 April 2021
Additions
At 31 March 2022
**Depreciation**
At 1 April 2021
Charge for the year
At 31 March 2022
**Net book value**
At 31 March 2022
At 31 March 2021
**12.**
**Creditors: Amounts falling due within one year**
Other taxation and social security
Pension fund loan payable
Other creditors
Accruals and deferred income|**Fixtures and**
**fittings**
**£**
**5,180**
**-**
**5,180**
**600**
**1,036**
**1,636**
**3,544**
4,580|**Computer**
**equipment**
**£**
**-**
**499**
**499**
**-**
**17**
**17**
**482**
-
**2022**
**£**
**3,927**
**669**
**107**
**2,400**
**7,103**|**Total**
**£**
**5,180**
**499**
**5,679**|
|---|---|---|---|
||||**600**
**1,053**
**1,653**|
||||**4,026**|
||||4,580|
||||2021
£
236
208
522
2,400
3,366|
Page 29
**Forever Colours Children's Hospice**
## **Notes to the financial statements For the year ended 31 March 2022**
## **13. Summary of funds**
## **Summary of funds - current year**
|**Balance at 1**
**April 2021**
**£**
General funds
**20,645**
**Summary of funds - prior year**
General funds
**14.**
**Analysis of net assets between funds**
**Analysis of net assets between funds - current year**
Tangible fixed assets
Current assets
Creditors due within one year
**Total**
**Analysis of net assets between funds - prior year**
Tangible fixed assets
Current assets
Creditors due within one year
**Total**|**Income**
**£**
**180,471**
Income
£
79,015
|**Expenditure**
**£**
**(139,444)**
Expenditure
£
(58,370)
**Unrestricted**
**funds**
**2022**
**£**
4,026
64,749
(7,103)
61,672
Unrestricted
funds
2021
£
4,580
19,431
(3,366)
20,645|**Balance at**
**31 March**
**2022**
**£**
**61,672**
Balance at
31 March
2021
£
20,645
**Total**
**funds**
**2022**
**£**
**4,026**
**64,749**
**(7,103)**
**61,672**
Total
funds
2021
£
4,580
19,431
(3,366)
20,645|
|---|---|---|---|
Page 30
**Forever Colours Children's Hospice**
## **Notes to the financial statements For the year ended 31 March 2022**
## **15. Pension commitments**
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions paid by the Charity to the fund and amounted to £2,317 (2021: £915). At the period end, an amount of £669 (2021: £208) was payable to the fund and is included in creditors.
## **16. Related party transactions**
The Charity has not entered into any related party transactions beyond the trustee expenses in note 10 during the year, nor are there any outstanding balances owing between related parties and the Charity at 31 March 2022.
Page 31