## ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
**Charity registration number 800248 (England and Wales) Charity registration number SC043878 (Scotland) Company registration number 02301610 (England and Wales)**
## LEGAL AND ADMINISTRATIVE INFORMATION
## **Trustees**
L Gerhardt Dr M Quallo-Wright A D Challis R L Humphrey N Smith P W E Leoni Sceti A M C Vaughan A McColloch N Taqi-Eddin S Linares S A Foster
**Charity registration number (England and Wales) 800248**
**Charity registration number (Scotland) SC043878**
**Company registration number (England and Wales) 02301610**
## **Auditor**
## **Bankers**
## **Solicitors**
Azets Audit Services Limited Ashcombe Court Woolsack Way Godalming Surrey GU7 1LQ Lloyds Bank Plc 5 The Square Petersfield Hampshire United Kingdom GU32 3HL Bates Wells & Braithwaite LLP 2-6 Cannon Street London United Kingdom EC4M 6YH
## Table of Contents
1 Chairman's Foreword 2 Message from the CEO Trustees' report 3 - 16 Dream Stories 17 - 29 30 - 33 Trustees' report continued 34 Statement of Trustees' responsibilities 35 - 38 Independent auditor's report 39 Statement of financial activities 40 Balance sheet 41 Statement of cash flows 43 - 53 Notes to the financial statements
_Note: the financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's memorandum and articles of association, the Companies Act 2006 and "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)"._
Annual Report 2022/23
## CHAIRMAN'S FOREWORD FOR THE YEAR ENDED 31 MARCH 2023
I am very proud of the important work we do to help children who have it tough. This last year I am delighted to announce that we have closed the financial year having delivered more dreams than ever before – reaching 3,253 children with serious illnesses, life-limiting conditions and disabilities who live in the most socially deprived areas of this country. This is what our charity strives to achieve – and to do so, so successfully, is a great stride forward.
We have also closed the financial year in a positive financial position. We have exceeded budgeted net figures and finished the year with a small deficit of £6,265.
This successful close to 2022/ 23 is testament to a brilliant, albeit small team of eleven, working tirelessly and passionately to deliver the best outcomes for Dreams Come True. The board and I were delighted to welcome Lisa King OBE, as our new Chief Executive Officer at the start of quarter two of the financial year and we have been very pleased to see the significant positive changes that have delivered direct outcomes to our work. Lisa’s passion for reaching and supporting children in great need is infectious and I have no doubt that the months and years to come will enable us to reach the ever-increasing number of children in this country who so urgently need our support.
Driving such a lot of change over the last financial year is a team effort. I owe huge thanks to our supporters and donors, the team at Dreams Come True and to my fellow trustees who bring life skill and expertise that has had much impact this last year. But most of all it is the team that I would like to pay thanks to – we would not be in a position to share such a positive report without all your hard work. Thank you.
The trustees and I look forward very much to seeing our charity build from strength to strength. Even though these are tough times for charities – especially small charities – we have the experience, will and determination to achieve yet more. Most importantly we have a hugely deserving cause supporting those children that need our support – now more than ever.
A E Linares
## **Chair of Trustees**
Date: 14 November 2023
Annual Report 2022/23
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## A MESSAGE FROM OUR CHIEF EXECUTIVE LISA KING, OBE
It has been a privilege and an honour to join Dreams Come True as Chief Executive Officer in July 2022. Dreams Come True is an inspiring charity undertaking some vital work – never more than in today’s economically challenging world where the number of children with life-limiting conditions, disabilities, and serious illnesses, who live in the most deprived areas of our country, grow in number.
I have been inspired and humbled by the dreams we have delivered – the stories of the children and the impact we achieve is at the centre of every decision we make.
Our team of dream makers are brilliant. They have achieved more in the last financial year 2022/ 23 than ever before. And they have worked hard to review their programme of dream delivery to learn from the insights, data and feedback to build an enhanced programme of dreams for 2023/ 24.
We have worked hard as a team to build our fundraising strands of work and can see early, but strong shoots of sustainable income growing in multiple channels. As we embark upon the new financial year we have a strong team in place which will achieve the funding we need to see our charity continue to deliver the same volume of dreams, if not grow, into 2023/ 24.
I would like to thank the small but mighty team at Dreams Come True who work tirelessly to support children in great need across our country today. I would also like to thank our chair Simon Linares and the whole board of trustees who have given me such a warm and positive welcome to the charity. The successes we report in this review are in large part thanks to their support. We are also incredibly grateful to our small but growing band of volunteers and to the pro bono agencies and partners who work alongside us to ensure we remain cost efficient but as effective as we can be. Thank you – you stand alongside us as dream makers.
At a time when our economy is falling further into recession and challenge the families Dreams Come True serves need us more than ever. Thanks to the support we have in place at present, and that which I know will grow into next year, we will work our hardest to reach the families and children who need us; they have never needed our support more.
Lisa King, OBE
## **CEO**
Date: 14 November 2023
Annual Report 2022/23
**- 2 -**
## **ABOUT DREAMS COME TRUE**
We make dreams come true for children and young people who are living with a disability, serious illness, or life-limiting condition. We are the only national wish-granting charity that focuses solely on supporting children living in the highest areas of deprivation. We believe every child has the right to dream, no matter who they are or where they live.
## **IN THE UK TODAY**
Right now, there are 3.9 million UK children living in poverty – that’s 27% of all children. With the cost-of-living crisis and soaring inflation, families are struggling to make ends meet. Especially those faced with extra costs due to having a child with additional needs. When a child has additional needs life can be challenging, even for families with strong support systems. Ongoing hospital visits, the inability to join in activities with friends and even physical pain can impact the magic of childhood.
## **WHO WE SUPPORT**
To ensure we reach those who need our attention the most, we work with 5-18 year old children who are living in the most deprived areas of the UK. These children are referred by a professional who is involved in the young person’s care, such as a medical, healthcare, educational or social care professional. We cover a wide range of medical conditions including:
- Children undergoing cancer treatment
- Severe autism, learning difficulties or global development delay
- Heart, lung, bowel and kidney conditions
- Degenerative neurological disorders or brain damage
- Muscular dystrophy
## **DREAMS**
Our dreams are personal to each child with whom we work. Whether that is a specially adapted trike for a child with cerebral palsy, a tablet to help an autistic teenager develop their communication skills, or a seriously ill child’s room makeover.
No matter the dream, our team of dream makers work closely with our dreamers to deliver a unique experience that will provide moments of magic and have a lasting impact long after the dream has come true for the children who face lifelong challenges exacerbated by poverty.
We offer four types of dreams:
- Small Change, Big Impact: improving the daily lives of our children through access to vital equipment and technology
- Re-imagined community spaces: sensory rooms and outdoor playgrounds reimagined for children to access in their community
- Home makeovers: bedrooms or gardens redesigned by our team of dream makers, inspired by each dream child
- Getaways: UK holidays and experience days creating cherished moments and memories
**- 3 -**
## **DREAMS 2022/ 23**
We are delighted to announce that this last year has been our best ever in terms of numbers of children we have positively impacted through our dream delivery programme of work. In 2022/ 23 we had a target to deliver 129 dreams – made up of 114 individual dreams and 15 community dreams. We are delighted to announce that this target was exceeded, and 137 dreams were delivered and impacted 3,253 children.
All our dreams are tailor made to the request for an individual or community dream. All of our dreams are delivered to children who live in the most socially deprived areas of this country. This ensures we deliver the maximum positive difference to a child/ ren and that we create lasting impact through our programme of work.
In comparison with the previous year, we have increased our reach by five times. This is in part thanks to delivering community dreams which, while on average costing more, reaching greater numbers of children.
In other positive news thanks to us streamlining our programme of dream delivery we have been able to open our dream portal for dream referrals every month – although due to demand and number of requests received we have often had to close our portal within the first 24 hours.
We have also delivered the majority of our dreams within or better than the targeted period of time, nine months.
New for this year, to capture longer term impact, was a full-scale review of the individual dreams undertaken in the previous calendar year. This yielded very positive results:
## 100%
of respondents said “the dream made a positive difference to their lives”, and 100% said “the dream felt special” and that they “enjoyed the day the dream came true”.
**- 4 -**
## **DREAMS 2022/ 23 (CONTINUED)**
To allow us to compare our dream feedback year on year, this survey is to be repeated at the end of each financial year.
Community Dream feedback is being collected on a rolling schedule, at both 6 months and 12 months after the dream has completed and will be shared for the first time in our next annual report.
The positive impacts from the families’ perspective, and areas where we can improve, are showcased in this report. We have also worked to develop new partnerships wherever possible, to ensure we maximise gifts in kind and best cost items; and we are particularly proud of the relationships we have in place with Merlin’s Magic Wand and Centre Parcs and look forward to developing these in the year to come.
Our team of dedicated dream makers have also worked hard to build our dream referral network. Dreams referred to our portal need to be submitted by a professional working to support a child/ ren.It is therefore vital that we are connected with as many referral conduits as possible. We have focused this programme of work by looking specifically at the most socially deprived areas of the UK to ensure we are reaching the children who need us most. This work started in earnest this year and will continue with vigour into next.
## **REVIEW OF DEPRIVATION CRITERIA**
As we begin our dream referral outreach into wider geographical areas, we have become aware that some of the families experiencing social deprivation live in postcodes that fall short of our current location criteria. We have positively overcome this challenge, and in our efforts to ensure we are as inclusive as possible reach the children who need us, we have widened our criteria to include families who meet The Income Deprivation Affecting Children Index (2) (IDACI), within deciles 1-3.
2 _The Income Deprivation Affecting Children Index (IDACI) measures the proportion of all children aged 0 to 15 living in income deprived families. It is a subset of the Income Deprivation Domain which measures the proportion of the population in an area experiencing deprivation relating to low income. The IoD2019 (Indices of Deprivation) is comprised of seven distinct domains of deprivation which, when combined and appropriately weighted, form the IMD (2019)._
Annual Report 2022/23
**- 5 -**
## **BUILDING REGIONAL OPPORTUNITIES – FUNDRAISING AND REFERRALS – SPOTLIGHT ON SUSSEX**
One of our strategic aims is to develop funding and referral opportunities in particular locations in the UK, one being Sussex. To build our profile and our work we secured this - coverage in high profile, high circulation title: Platinum Business Magazine issue 108 by Platinum Business - Issue . This work will continue into 2023/ 24.
## **LISTENING TO THE CHILDREN WHO ARE TURNING TO US FOR SUPPORT**
In summer 2022 we analysed the types of dream requests we receive and noted an everincreasing number of tech focused dreams being a priority for families and referrers for children who meet our criteria. We identified the top 10 dreams and created, with a little help from pro bono friends, a tech dreams pack to open new opportunities to reach tech related funders. As we build our asset base into the future, we hope to create more such targeted and relevant documents.
## **IMPACT OF OUR DREAMS IN 2022/ 23**
**100% of families said the dream made a positive difference to their lives in our 2022 survey.**
## **OUR DREAM FAMILIES ALSO SAID THAT:**
- Mental health and well-being improved from 37.5% to 95% Development (communication and physical) improved by 60% Socialisation and inclusion improved by 80%
## **FEEDBACK FROM CHILDREN:**
After the dream 95% of children chose a positive emoji of feeling happy, excited or pleased compared to only 37.5% before receiving the dream
Annual Report 2022/23
**- 6 -**
## SAFEGUARDING
Safeguarding has been a keen area of focus for us throughout the year and we have seen additional training for all staff put in place, revised out of hours safeguarding protocols, and refreshed training for all trustees. A new safeguarding form was implemented to ensure all concerns are captured and recorded in a standardised way, should this information need to be shared elsewhere. We have also linked up with another charity in the wish granting space to build a working relationship which provides safeguarding support and promotes safeguarding best practice through continued learning.
## MARKETING AND SOCIAL MEDIA
More focus has been placed on branding, marketing, and expansion of our social channels than ever before. We worked hard at the start of the year to craft, focus, and sharpen our key messages to ensure they are seamlessly shared across all channels of our work.
We have been assisted with this work on marketing more than ever before, in numerous ways, by PR agency Team Lewis and would like to thank them for their ongoing support. Early in the year we created a home-grown small leaflet to share our purpose and impact – but most of all powerful stories of the children we support. This has been an essential part of our growing suite of in-house marketing materials.
As part of our branding focus, we have built, sharpened, and diversified our social content, across all platforms; it has been notably more relevant, engaging and multi-message focused. We are increasingly using and sharing cost of living crisis messages to highlight those we are here to support and as a strategy to build our base of social and charitable followers.
Our engagement rate on all social channels is 5.24% organically, which is growing, and higher than the industry average of 5%.
Annual Report 2022/23
**- 7 -**
## FUNDRAISING
We have a five-strand programme of fundraising in place, which we have built steadily throughout the year. We have worked particularly hard to grow our corporate fundraising programme of work which is beginning to pay dividends with some new and exciting charity of the year partnerships in place.
Whilst we have found our trust fundraising programme our greatest challenge, we have reactivated around 190 trusts known to Dreams Come True and seen positive income being generated from a mailout initiative.
When looking across fundraising, thanks to some over-performing strands of activity, namely events, challenges and legacies, we were able to achieve and marginally surpass the 2022/ 23 targets.
We would like to pay particular thanks to long-standing, steadfast supporter The Kentown Wizard Foundation for both the final part of its four-year grant, but also the additional midyear grant to underpin our work. Thanks to your support we have been able to begin to become more sustainable and have started to put the building blocks in place that Dreams Come True needs for striving forward.
Barneswood Trust has been a stalwart supporter of the work of Dreams Come True and we remain indebted to them for the continuation of both financial and wider support for the charity, which they hold dear.
We would also like to thank Patrick Leoni Scetti and family for the very generous philanthropic gift to Dreams Come True. Your support is much appreciated.
There are many other corporates, trusts, and individuals who we would like to thank, but for the sake of brevity we cannot mention them all.
**- 8 -**
## FUNDRAISING HIGHLIGHTS
Our Arctic Trek in February saw 16 trekkers raise a phenomenal £46,546. Barry Carson, an avid supporter of Dreams Come True and Salesforce employee, shares his experience of the Arctic Trek better than any of us could:
_‘I participated in the February 2023 Arctic Trek and it is honestly one of the best things I have ever done. I was apprehensive about the trek and how I would respond to it as the only real training I could do was walking. What is hard to prepare for is the cold which you have to get used to in real time. We all were in the same boat and, as a team, everyone did amazingly well. The whole event was magnificently organised by Dreams Come True and the Breaking Strain team. We could not have asked for better leaders and experts guiding us through an incredible three days. I would encourage anyone with a sense of adventure to sign up for the next Trek. You'll find out how far you can push yourself, and you will be very surprised how far this actually is.’ Barry Carson - Salesforce_
Howden Real Estate, as a first time supporter to Dreams Come True set a target for £10,000 and smashed it raising £20,000. In great news Howden will support Dreams Come True into next year – we are delighted, thanks so much.
Mountain Ash Golf Club in June 2022 raised £9,626.
Dutton Gregory partnership raised £10,536, the most amount of money they have ever raised for a charity, thanks to a plane pull, quiz night, bake sale and book sale.
## **CHRISTMAS GIVING TREE – DREAMS COME TRUE AND KIDSOUT**
For the first time we ran a Christmas Giving Tree initiative with KidsOut - which in simplest terms provides an alternative online version to secret Santa. Alongside the online and email communications we undertook to drive awareness and support for the Giving Tree we also secured two full page pieces of editorial coverage in the Daily Express which not only drove contributions, but which also provided a strong opportunity to raise awareness of our brand and Dreams Come True’s work. This fantastic opportunity would not have been possible without KidsOut – huge thanks to them for this wonderful collaboration.
Annual Report 2022/23
**- 9 -**
## FUNDRAISING HIGHLIGHTS
## (continued)
## **LONDON MARATHONS – TWO OF THEM! OCTOBER ‘22 AND APRIL ’23**
A particular highlight – straddling the end of the year and new financial year – was the London Marathon April 2023. Dreams Come True saw a phenomenal 45 runners take to the streets and accomplish the 26.2 miles whilst raising over £100,000 to support our work. A wonderful achievement all around.
Craig – “What an amazing day and such an incredible experience. It’s been amazing to be a part of your team, such a great charity. Being a #DreamMaker is 1st place, being a London Marathon finisher 2nd.”
- Emma – “It makes all of the pain worthwhile when you hear about the difference the fundraising is making to all of these families. Thank you so much for letting me be a part of the team. Loved it.”
## **RACE NIGHTS**
**Shaun is a long-term volunteer and hosts Race Nights across the South East and in January he reached the milestone of raising £100,000. A huge thanks to Shaun – what an achievement!**
We wish we could recognise all of the individual fundraisers who support us, but alas that is not possible. To mention just a couple in this year’s report we have **Luke Staton** , who raised a wonderful £4,156 for us thanks to **Anya Eames** , who raised £4,946 undertaking her March Lapland Husky Trail. Amazing efforts – and creativity – to raise much needed funds for us. Thank you so much!
## **INDIVIDUAL GIVING PROGRAMME OF WORK - WORLD DREAM DAY 2022**
**25 September marks World Dream Day – this gave us a great opportunity to put an appeal in place to activate our dormant individual giving programme of work, and contact around 6,500 people who sit in our database.**
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Annual Report 2022/23
## **FINANCE**
Over the year we have streamlined our financial processes to ensure we continue to adhere to best financial practice. We undertook a mini audit mid-year from which a ‘processes enhancements’ document arose where all actions arising are now in play.
We have also worked hard over the period to reduce our cost base in large part thanks to relinquishing our office and all staff now having work from home contracts. Further cost reduction has been possible due to a review of or a re-negotiating of contracts. We have also worked hard to onboard new pro bono partners and would like to thank Weil, Gotshal and Manges for its support of our work (legal and research based) and helpful introductions.
In partnership with the Board Finance Committee we have undertaken a deep dive into our risk register and revised/ updated it with risks relevant to current legislation, a post-COVID landscape and a work from home staff base. The new risk register received detailed discussion at board and trustee level and is now a live document for the senior leadership team and reported upon quarterly.
## **HR PROCESS AND PRACTICES**
As we professionalise our practice at Dreams Come True we have reviewed and enhanced our induction and exit processes at the charity, ensured that all staff for the new financial year have objective forms in place with quarterly targets and catch ups. All objectives focus on supporting individual development requests, alongside those which are Dreams Come True focused. We have renewed and relaunched our staff and health and safety handbooks and are in the process of undertaking a full policy review and enhancement programme of work. There is more work to take into 2023/ 24 but we have put some strong blocks in place from which to build going forward.
## **SUPPORTING STAFF AND WELL-BEING**
In the latter part of 2022/ 23 we have build a new strand of work which focuses on staff wellbeing, especially given the new work from home contracts that all staff have in play. We were delighted to have been able to award staff a 5% cost of living pay increase across the board and, in recognition of our thanks to staff for all they have achieved, awarded an additional day of holiday – taking our allowance from 25 to 26 days per annum.
Teams within Dreams Come True meet as needed, and as a total organisational team we meet monthly – switching each month between virtual and in person. We would like to thank BIE executive, Weil Gotshal & Manges, LSG holdings and Legal & General for the very kind donations of all day London office space to accommodate our meetings and time together.
As we look ahead to 2023/ 24 we are delighted to have two well-being self elected champions in play who will be building a programme of work to build personal well-being and resilience which will benefit from pro bono external speakers and contributors.
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Annual Report 2022/23
## **PRO BONO AND GIFT IN KIND DONATIONS**
We have reviewed our approach to collating gifts in kind to include donations supporting our charitable purposes to a total value of £57,145 (see note 2).
As noted in this report we have been lucky enough to benefit from support from Weil, Gotshall & Manges, Team Lewis, Fleishman Hillard and GT Law. Gift in kind donations have been sourced across our areas of operation – from dream delivery to office space donations. We closed 2022/ 23 having secured more gifts in kind than ever before – and will be building on this fantastic support into the future.
## **HRH PRINCESS MICHAEL OF KENT, OUR PATRON**
Dreams Come True has been lucky enough to have the support of HRH Princess Michael of Kent for over three decades. Her Royal Highness remains as committed to supporting our work as ever and we are grateful for her willingness to support a wide range of requests we put to her. We look forward very much to working with HRH in the months and years to come. We would like to thank her enormously for her tireless commitment to our work.
## **TRUSTEES**
We have eleven trustees who support the work of Dreams Come True. We are enormously grateful to them all for all the expertise and support they bring to the charity and their continued efforts to always go above and beyond in their support of the children we serve. We owe our trustees, who give their time for free and have limitless passion for our work, a huge amount of gratitude. Thank you all so much.
## **STATEMENT OF PUBLIC BENEFIT**
We work to a set of charitable objectives, agreed with the Charity Commission that comply with section 17 of the Charities Act 2011. These objectives pay due regard to the Charity Commission guidance and as such explain the public benefit of what we do linked to the number of dreams we grant and the positive impact of each dream on the wellbeing of the child and their family.
## **CHARITY FUNDRAISING**
We are registered with the Fundraising Regulator and commit to our fundraising being legal, open, honest and respectful, meeting the standards set in the Fundraising Code of Practice.
Annual Report 2022/23
**- 1 2 -**
## **RISK MANAGEMENT**
The Board of Trustees has delegated responsibility for risk management to the Finance and Risk Committee. The full board reviews the highest standing risks, at every board meeting, along with all strategic risks. The Chief Executive and Director of Resources review monthly, in detail, all financial, operational, regulatory, and reputational risks.
The Board of Trustees have appointed a trustee with oversight for child and vulnerable adult protection and data protection.
Key risks and our plans for mitigation are:
## **DATA PROTECTION**
The charity holds data from a number of different sources and has implemented a detailed plan so as to ensure full compliance with GDPR. There is a data officer who, on all matters pertaining to personal information (collection, use and storage), reports directly to a nominated Trustee who has oversight of all activity.
## **DREAMS DELIVERY**
Responsibility for the operation and delivery of dreams is divested to the Chief Executive, with reporting of progress at each board meeting. The type and value of dreams offered are reviewed by Trustees annually.
## **SAFEGUARDING**
Noted earlier in the report also as it is a key area of dream delivery work. Our work with children and young people suffering from serious and life-limited conditions places on us a particular burden of care to ensure that they are safeguarded through their experience of dream fulfilment. We mitigate risk through: having a Safeguarding Policy (along with other supporting policies) which is reviewed and presented to the board for approval annually; risk assessing all applications to ensure that dreams can be fulfilled safely; Designated Safeguarding Lead and Deputy in place and using only trained professional staff to work with children and families in organising and delivering dreams; along with DBS checking all staff and Trustees.
## **REPUTATIONAL RISK**
Risks associated with adverse publicity involving a service provider, supplier or supporter are ongoing. All our activities and partnerships undergo risk assessment and, where necessary to protect the charity’s good name, relationships are terminated. The Trustees have in place a Crisis Management Plan to ensure that, should a reputational issue arise, our response is timely and appropriate.
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Annual Report 2022/23
## **FINANCIAL RISK**
Successfully growing our income in order to increase the number of dreams we fulfil is a key part of our strategy both now and in the future. At the same time, it is necessary to increase our reserves to ensure we keep six months reserves and mitigate the risk of financial insolvency.
The Finance and Risk Committee scrutinise our financial performance at quarterly meetings to ensure that progress against income and expenditure targets is being met. It makes recommendations to the full Board at their meetings regarding the allocation of surpluses to ensure that the twin targets of financial stability through adequate reserves and charitable impact through increasing our dream delivery are met.
## **FINANCIAL REVIEW**
Dreams Come True ended the year with a small operating deficit of £6,265 (2022: deficit of £10,263). Whilst the charity has continued to focus its activities on increasing the proportion of expenditure on delivering its charitable activities £874,568 (2022: £901,724), the mix of spend going towards the Charity's core activities has remained the same this year as in 2022. We have delivered across our four areas of dream delivery: Small change, Big impact; Reimagined Community Spaces; Home Makeovers and Getaways, with our dreams spending being £668,128 (2022: £646,944).
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Annual Report 2022/23
## **RESERVES**
## **REASONS RESERVES ARE HELD**
The Board of Trustees, Chief Executive and Head of Finance and Resources identify the need for access to reserve funds and confirm that their use is consistent with the purpose of the reserve, as described within the reserves policy, requiring analysis of any shortfall, and looking firstly at the availability of any other source of funds, before using the reserves. An evaluation of the time period that the funds will be required for and when they will be replenished is also undertaken.
## **USE OF RESERVES CAN INCLUDE, BUT IS NOT LIMITED TO THE FOLLOWING**
- The risk of unforeseen emergency or other unexpected need for funds e.g. an unexpected large repair bill or finding ‘seed-funding’ for an urgent project.
- Covering unforeseen day-to-day operational costs e.g. employing temporary staff to cover a long-term sick absence.
- A source of income e.g. a grant not being renewed. Funds might be needed to give the Board of Trustees time to act if income falls below expectations.
- Planned commitments, or designations, that cannot be met by future income alone e.g. plans for a major asset purchase or to a significant project that requires the charity to provide ‘matched funding’.
The need to fund short-term deficits in cash.
## **TARGET RANGE OF RESERVES FOR THE FINANCIAL YEAR**
The level of reserves has been set up to a target of six month's operational costs (to include salary and running costs of the charity). This is reviewed on an annual basis as part of the budget setting process, alongside cashflow requirements and is regarded as part of ongoing management of the charity.
Should the reserves level fall below target, consideration is given to whether this is due to short-term circumstance or longer-term reasons which might trigger a broader review of finances and reserves. This will form part of a wider discussion by the Finance Committee and be reported to the Board of Trustees.
## **LEVEL OF RESERVES AT YEAR END**
Unrestricted reserves stood at £579,271 (2022: £525,647) with a restricted financial position of £357 (2022: £60,246).
In the next financial year 2023/ 24 Dreams Come True will work towards building reserves by increasing fundraising activities and seeking to create new corporate partners and and partnerships with high net worth individuals, particularly those who are willing to provide unrestricted funds, whilst continuing to decrease operational overheads.
The reserves policy is reviewed by the Finance Committee every two years or sooner if warranted by internal or external events or changes, to ensure that the reserves policy continues to be relevant, as the charity develops or changes its strategy and activities. Changes to the policy will be recommended by the Finance Committee to the Board of Trustees.
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## **PLANS FOR OUR FUTURE**
In 2023/24 we are building upon the success of our strong programme of events and challenges as this is a growing area of sustainable income for Dreams Come True. We will also build yet more corporate partnerships and especially those that bring a commitment of two, ideally three, years of funding support to the charity. We hope that the concerted efforts we have taken in recent months to drive applications to an array of trust bodies will begin to show dividends as we work, albeit in challenging economic times, to deliver the same number, if not more, dreams and impact next year.
We have initiated some strong partnerships in 2022/23 and will be strengthening these relationships into 2023/24 to enable us to deliver more dreams, more income and more effective programmes of work resulting in increased impact to ever-increasing numbers of children who need our support.
Our programme of dream makers are building the geographical reach of our dream delivery programme to ensure we reach the children who need us the most.We will maintain our four types of dream delivery into the next financial year as the demand for all four types of dreams remains equitable between the categories. New for 2023/24 we will for the first-time source impact data from the community dreams we have delivered over the last few years.
We made a concerted effort in 2022/23 to build home-grown and pro bono marketing assets to ensure we are increasingly visible in our social media channels and we will continue to set ambitious metrics to achieve as our connections and community continues to grow.
As we move into 2023/24 we remain as committed as ever, if not more so, to reach the children we serve – who, in today’s stringent economic climate – need us more than ever before.
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Annual Report 2022/23
Here are some of the amazing individual and community dreams we delivered during 2022/23 that speak to our charitable achievements more than we ever could...
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## **CHRISTMAS COMES EARLY FOR CALLUM**
Callum, aged 6 is an incredibly strong boy. He loves cars, especially hot wheels, and anything to do with the outdoors. His family call him their “little adventurer”. He loves music and all nursery rhymes. His favourite thing of all is Mr Bean and particular the character ‘Teddy’. He even has his own Teddy which he loves to cuddle!
Callum has respiratory failure and autism, which means he requires constant highflow oxygen and has to spend all his time on a hospital ward. Callum amazes everyone, sitting up and walking about like nothing is wrong. He truly is a little fighter.
The nature of Callum’s condition made celebrating Christmas in December uncertain. Together with the help of his family and his healthcare team (AKA, Santa’s Elves), Dreams Come True have pulled out all the stops to give Callum the Christmas he deserves! Callum and his family enjoyed a morning of gift giving, a festive themed buffet, Christmas decorations and Christmas music. All of the special memories of the day were captured by a professional photographer. The icing on the cake was a personalised message from Callum’s Hero… ‘Santa AKA Mr Bean’!
Callum’s Mum said: The photos are amazing honestly, just perfect. Thanks so much for absolutely everything!
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## **ALFIE’S ALTON TOWERS TRIP**
Alfie suffers from life threatening seizures that require urgent medical treatment, and he also has no awareness of danger in his surroundings. This means he needs constant supervision both at home and while out and about to ensure he doesn’t come to any harm. His condition has been gradually increasing in severity, his mum describes day to day life with Alfie as ‘living on a knife edge’.
Alfie’s favourite CBeebies character is Postman Pat, so for his birthday this year we surprised him with a stay in the Postman Pat Suite in the CBeebiesland Hotel. Alfie’s mum said, ‘The hotel was wonderful, and The Postman Pat Suite was amazing!’ Dreams Come True were delighted to arrange a birthday cake, teddy and balloons to be waiting in the room for Alfie, and the hotel gave him a present too.
‘Alfie particularly liked the lift in the hotel which played music and had different lights when you pressed the button - so he kept wanting to go in it! There was a disco in the evening which he loved, and he kept cuddling the characters he met. The park had a great atmosphere, and the staff made it magical. Alfie was very happy in ‘his world’ (Postman Pat and trains!), especially as there was a train ride which he loved . ‘The trip couldn’t have gone any better!’
## **SMALL CHANGE BIG**
## **IMPACT**
## **JOE , AGE 17**
Joe, 17, lives with muscular dystrophy. His medical condition has had a profound impact as Joe requires intermittent ventilation and is tube-fed. Due to issues with postural management, until recently he has been unable to access education for prolonged periods, he has problems with his wheelchair as it’s very uncomfortable, but the necessary adjustments have been delayed due to COVID backlog, so he spends a lot of time in his room in bed. Joe can’t use his hands, so stimulation is mostly visual and aural.
Joe is a very happy boy, he has a great sense of humour and loves to laugh. He loves music, and watching cartoons, and Mr Bean!
Because Joe spends a lot of time in his room, his dream was to have a wall mounted tv so he can relax in bed and watch his favourite programmes. He also wanted a blade-free fan and heater with a built-in air purifier. He has a fan on 24 hours a day as he has frequent temperatures, and he is prone to allergies and infections so the combined purifier would help his health enormously.
Dreams Come True were very happy to provide and install the tv and purifier fan, and be instrumental in helping Joe have a more comfortable area to relax.
**- 20 -**
## **KAI AND ISSAC’S GARDEN EQUIPMENT**
Young brothers Isaac and Kai are both full of love and are fascinated by the world around them. They especially enjoy spending time outdoors. However, they both live with autism and have very little awareness of danger, which means they require constant supervision and assistance. Kai also prefers the company of his family rather than of children his own age, making trips to the park and other outdoor spaces too stressful and overwhelming to enjoy.
Dreams Come True have arranged for some new garden equipment including a climbing frame and their own water slide. This will mean they have their own safe space to enjoy the outdoors free from the stress of the outside world. It will also make it much easier for the boys’ mum, Rebecca, to look out for the pair, relieving her of a lot of pressure. Rebecca further explains that keeping busy at home would bring Isaac and Kai so much joy and ease a lot of their frustrations, which in turn would make life for the family just that little bit simpler.
Once the boys had their new equipment installed here’s what Mum had to say: ‘They absolutely love all their new garden things, as soon as they get home from school it is the first thing, they ask, we had the slide up over the weekend and it kept them entertained for hours they loved it!
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## **ELLIE MAI’S SENSORY TOYS/EQUIPMENT**
Ellie Mai is 12 years old and lives at home with her Mum and two sisters. Her Mum describes her as cheeky with a great sense of humour.
Ellie Mae has very complex health conditions including Hirschsprung’s and developmental delay. She cannot communicate verbally or walk independently and often uses a wheelchair.
When asked what type of dream Ellie Mae would benefit from Mum told Dreams Come True that she loves lights and anything visually stimulating. Mum believes that some sensory lights would aid her sleep and that something water related could also be very soothing for her.
Dreams Come True arranged for a sensory projector that provides a water like effect onto the wall, and a glitter ball with a colour changing light to be installed in Ellie Mae’s room along with lots of other games for her to play with – attached to the wall so she can get to them independently and still be able to play when she’s resting in bed.
**- 22 -**
## **TAK, AGE 18 DJ FOR THE DAY!**
Tak is 18 years old, and has Spinal Muscular Atrophy Type 1 which is a genetic condition caused by a mutation in the survival motor neuron 1 (SMN1) gene. This makes his muscles particularly weak, causing problems with movement, eating and swallowing. He has all his meals given via a feeding tube and requires continuous assistance at college, which he just started in September. Tak is completely dependent on his parents and carers for meeting his basic needs and for his safety to be maintained.
In his spare time he loves all things music, especially likes the charts. Tak loves sharing his passion for music and playing music to people. He hopes to be a professional radio DJ one day, so his dream was to have a radio DJ experience.
Dreams Come True arranged a studio visit to Hits Radio Manchester, where Tak saw behind the scenes, watched the Hattie Pearson show being produced, and even met Gemma Atkinson and Mike Toolan, two of his favourite DJs! He also recorded a shout-out to all the important people in his life. Tak said he had an amazing time, it was great to gain an insight into what it’s like to work in radio and he’s now keener than ever to pursue a career as a DJ.
A big thank you to all the team at Hits Radio who gave Tak a fantastic experience, and even sent him home with an amazing goody bag full of radio merchandise as a memento of his dream.
**-23 -**
## **DARTS DEVOTEE, JOSH!**
Josh is 12 years old and has just started high school which he seems to love, especially when he is drawing. He loves anything and everything about darts, spending all his free time watching darts matches on TV and YouTube. His favourite player is Michael Van Gerwen – he wears his shirt and even drew a fake MVG tattoo on his arm before school started! He knows the walk-on songs of all the darts players and loves to listen to them on the radio.
Josh was diagnosed with autism at the age of two and has limited speech and language. He can’t read and struggles with writing. He finds it difficult to regulate his emotions which can be challenging. Josh struggles to identify and articulate his needs and is dependent on those who know him well to provide him with comfort and reassurance. He uses visual cues and gestures to communicate his needs, and requires constant encouragement and prompting to follow through with a task and cannot be left unattended as he has no concept of risk and danger.
For such a big darts fan, the choice was easy - Josh’s dream was to attend a Premier Darts event and sit right in the thick of it!
Dreams Come True arranged Tickets for Josh and his family to attend the 2023 Cazoo Premier League at The OVO Hydro in Glasgow in February, with most of the world's leading darts players there to compete. Josh was totally surprised to have amazing table seats, but he spent most of his time right at the barrier putting his hand out to high five the players as they walked on, dancing in the aisles, getting photos with players and joining in the chants.
DCT also bought him the 2023 Michael Van Gerwin shirt to wear to the event and money for a souvenir – Josh chose a dartboard headgear which made him easy to spot as his family watching back home saw him on tv!
Mum Kirsty was so grateful Josh could have such a positive experience around something he’s loved for years. She said they “Created some wonderful memories for Josh, he had the most amazing time, an absolute ball. Thank you, he’ll never forget it”
**- 24 -**
## **Aura, age 5**
Aura received a tech bundle from Dreams Come True, including an iPad which she uses to play games. Due to her Type 1 Diabetes, Aura has to take up to 10 injections a day, and her ipad is invaluable as it helps keep her distracted and has made a real difference to her life. As an added bonus, it’s also helping her do her maths homework! This is why every donation matters, big or small.
## **INDIVIDUAL DREAM**
## **SMALL CHANGE BIG IMPACT**
## **AIZ’S MUSIC LESSONS**
Aiz is 18 and is living with cerebral palsy and severe cortical visual impairment. Day to day life can be difficult for Aiz as he faces challenges with speech, language and communication, as well as learning and physical skills. Aiz has increased tone in all four limbs which affects both sides of his body and is unable to change his position independently. Both at home and at school, Aiz requires a host of assistive aids and splints to support him in comfortable positions. He is currently working on feeding himself, either eating finger foods or using an adapted spoon, but relies on adults for all of his care.
Aiz is prone to panic attacks when he is unfamiliar with certain senses, but he really loves music.
His family were keen for Aiz to receive a dream that was ‘just for him’ and something that would give him a feeling of independence, as well as bring him joy. Organising an appropriate hobby that is just for him has been a real difficult challenge for the family financially, so we arranged for him to receive accessible and private music lessons in the familiar environment of his school. His smile really does say it all!
**- 26 -**
## **MORE THAN A MAKEOVER FOR STEVIE - LEIGH**
Stevie-Leigh is an extraordinary young girl who was diagnosed with juvenile arthritis at the age of 11 months, just as she was learning to walk. She also has uveitis- the persistent inflammation of the eyes can mean an increased risk of blindness, and although she’s only just turned 13, she’s already had to have surgery for a cataract.
Despite having to take many medications to manage her juvenile arthritis and uveitis, some of which make her feel very nauseous, she remains incredibly brave. Stevie-Leigh has also recently been experiencing severe anxiety, and this combined with frequent hospital appointments means she’s missing out on school and joining in with activities with her friends.
To help cope with this anxiety, Stevie-Leigh finds sanctuary in her room, where she can play games, write, and just be herself. She has come to DCT with dream of a bedroom makeover, especially a desk space where she can catch up on work she has missed in school and enjoy writing. She wanted a calming sage green colour theme to help her relax. As she enters her teens, a fresh, comforting space would make all the difference for Stevie-Leigh. Since the makeover, Mum Kim said “it's amazing, Stevie-Leigh was overwhelmed when she saw it, she couldn't speak, she just kept laughing”. Kim said she's never seen her like this and she’s been in love with her room having hardly left it since it was decorated! Stevie-Leigh told her mum it was so much more than she expected.
**- 27-**
## **HERE COMES HANNAH!**
Hannah is very social and makes friends wherever she goes, but behind this is a serious medical condition that has prevented her exploring the world and things around her in the way she might like to. She suffers from extreme epilepsy, at times, over 100 episodes a week.
Her dream was to be able to explore different environments and not be confined to the places her current wheelchair can go, so we arranged for Hannah to have a new all-terrain buggy. This will make Hannah safer, give her opportunities to explore new wonderful places and provide her and her family a sense of freedom that they’ve been yearning for. Here she is seen enjoying magical memories on the beach!
Halton Lodge, Runcorn Cheshire, provides a community-based sensory facility for local children and families with additional needs, disabilities and lifelimiting illness. It offers a range of targeted, universal and early intervention services.
The sensory room was a very well-used feature of the centre but it desperately needed modernisation and refurbishment to continue being a valuable resource to local families.
Dreams Come True transformed a tired room into a calm and friendly space benefiting thousands of children and families.
The new improved sensory room has specialist features - such as fiber-optics lights, a UV carpet and interactive technology - providing benefits such as improved cognitive function, stimulation, play, hand-eye coordination, relaxation, sound/ light interaction and many other benefits to the children.
**- 29 -**
## STRUCTURE, GOVERNANCE AND MANAGEMENT
## **GOVERNING DOCUMENTS**
**The charitable company was incorporated on 3 October 1988 and is governed by its Memorandum and Articles of Association. The charitable company is limited by guarantee and has no share capital.**
## **OUR TRUSTEES**
The Trustees who served the Charity during the period (serving for the entire year unless indicated) were:
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||||
|---|---|---|
|ATTENDENCE|OUT OF POSSIBLE|
|A Linares 5|5|
|A McCulloch 2|5|
|A Challis|5|5|
|S Foster 4|5|
|R Humphrey 5|5|
|P Leoni-Sceti 5|5|
|N Smith 5|5|
|N Taqi-Eddin 3|5|
|A Vaughan (3) 4|5|
|L Gerhardt 3|5|
|M Quallo-Wright 4|5|
**----- End of picture text -----**
_(3) Unable to attend one meeting due to maternity leave_
The Board of Trustees meets at least four times a year and its main purpose and activity is focused on the setting of policy, strategic direction and ensuring good stewardship of resources. The work of the Board was supported by the following Board Committees and Sub-groups.
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## **SUB-COMMITTEES**
## **Finance and Risk Committee**
First line oversight of finance and risk is delegated to the Finance and Risk Committee which meets at least quarterly. Its quarterly meetings are held in advance of the main Board meetings to which it reports its findings and recommendations. The Finance and Risk Committee also has oversight of Audit, Investments, Governance and
Remuneration.
Trustees who serve on the Finance and Risk committee and their attendance is as follows:
||**ATTENDENCE**|**OUT OF POSSIBLE**|
|---|---|---|
||||
|A D Challis|5|5|
|N Smith|5|5|
|P W E Leoni Sceti|5|5|
|N Taqi-Eddin|1|5|
|_(resigned January 2023)_|||
## **Nominations Sub Committee**
The Nominations sub-committee is established for the purpose of leading the process of CEO recruitment, appointments and election to the Board of Trustees and independent members and advisors to its committees, meeting in the reporting cycle as required. Membership consists of the following Trustees:
||**ATTENDENCE**|**OUT OF POSSIBLE**|
|---|---|---|
||||
|A D Challis (Chair)|5|5|
|L Gerhardt|5|5|
|S Linares|5|5|
|R L Humphrey|5|5|
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## **INDUCTION AND TRAINING OF TRUSTEES**
A Trustee skills matrix is maintained to ensure that the Board is aware of skills gaps that might exist and to enable particular skills to be targeted when recruiting new Trustees.
## **CANDIDATES UNDERGO AN APPOINTMENT PROCESS INVOLVING**
- Submission of their details and a review of experience in relation to the Trustees skills matrix.
- Meetings with the Chair, Chief Executive, and other Trustees.
- Attendance as an observer, at a full Board Meeting.
Once this process is concluded, successful candidates will be invited to join the Board of Trustees.
## **INDUCTION FOR NEW TRUSTEES INCLUDES**
- Meeting with the CEO (in person)
- Virtual meetings with SLT and staff
- Join one full in person staff meeting within 12 months of being in post
- Meeting with other Trustees
- Safeguarding training
- Provision of a Governance handbook
- Attendance, depending on previous Trustee experience, on an appropriate external course for new Trustees
Ongoing programme of Trustee training
## **ORGANISATIONAL STRUCTURE AND DECISION MAKING**
All staff working at the Charity have work from home contracts which came into play in October 2022. The Charity's work is carried out by a Chief Executive and 12 staff. They are responsible for good utilisation of resources and the achievement of objectives across the operational areas of:
- Dreams fulfilment
- Marketing and communication
- Fundraising
- Finance and administration
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## **CHIEF EXECUTIVE**
Richard Ashton (left June 2022)
Lisa King, OBE (appointed July 2022)
The Charity has a 100% owned subsidiary, Dreams Come True Services Limited which is dormant
## **AUDITOR**
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
The Trustees' report, including the strategic report, was approved by the Board of Trustees of the charity on 11 October 2023 and signed on its behalf by:
A E Linares
## **Chair of Trustees**
14 November 2023
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## STATEMENT OF TRUSTEES' RESPONSIBILITIES
## FOR THE YEAR ENDED 31 MARCH 2023
The Trustees', who are also the directors of Dreams Come True Charity for the purpose 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 which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the Trustees' are required to:
- Select suitable accounting policies and then apply them consistently; Observe the methods and principles in the Charities SORP;
- Make judgements and estimates that are reasonable and prudent; State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees' are responsible for keeping adequate 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 Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). 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.
The Trustees' are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
**- 34 -**
Annual Report 2022/23
## INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES' OF DREAMS COME TRUE CHARITY
## **OPINION**
We have audited the financial statements of Dreams Come True Charity (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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:
- Give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, for the year then ended; Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- Have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
## **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.
## **CONCLUSIONS RELATING TO GOING CONCERN**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees' with respect to going concern are described in the relevant sections of this report.
**- 35 -**
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## **OTHER INFORMATION**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees' are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
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 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
- The information given in the financial statements is inconsistent in any material respect with the Trustees' report; or
- Sufficient and proper accounting records have not been kept; or The financial statements are not in agreement with the accounting records; or
- We have not received all the information and explanations we require for our audit.
## **RESPONSIBILITIES OF TRUSTEES'**
As explained more fully in the statement of Trustees' responsibilities, the Trustees', who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they 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 charitable company or to cease operations, or have no realistic alternative but to do so.
**- 36 -**
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## **AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL**
## **STATEMENTS**
We have been appointed as auditor under section 144 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor's report.
## **EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF**
## **DETECTING IRREGULARITIES, INCLUDING FRAUD**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
- Reviewing minutes of meetings of those charged with governance; Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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## **EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD (CONTINUED)**
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
## **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 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. 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.
Alex Temlett CA ACA CTA (Senior Statutory Auditor) for and on behalf of Azets Audit Services Limited 14 November 2023
**Chartered Accountants Statutory Auditor**
Azets Audit Services Limited Ashcombe Court Woolsack Way Godalming Surrey GU7 1LQ
**- 38 -**
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## STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
## **FOR THE YEAR ENDED 31 MARCH 2023**
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
**- 39 -**
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## **BALANCE SHEET AS AT 31 MARCH 2023**
The notes on pages 21 to 32 form part of these financial statements.
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023, although an audit has been carried out under section 144 of the Charities Act 2011.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 14th November 2023
A E Linares
## **Chair of Trustees**
**Company registration number 02301610**
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## **STATEMENT OF CASH FLOWS AS AT 31 MARCH 2023**
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**NOTES TO THE FINANCIAL STATEMENTS AS AT 31 MARCH 2023**
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