The trustees present their report and financial statements for the year ended 30 September 2020.
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 governing document, 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)” (as amended for accounting periods commencing from 1 January 2016)
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
In November 2019 our Training Co-ordinator Geoff Wright visited Belarus to provide training and support for the final stages of the Unicef funded project to support families with children with disabilities, and for the start of the US Embassy funded project which was based on similar lines, but targeted at new parts of Gomel Region.
In December 2019 Natalia Samoilik, Director of our Partner Organisation in Gomel, ‘Supporting Children Together’ came to the UK to have meetings with Geoff and other trainers in Essex and about the above projects, and the new Unicef funded project due to start in the spring. This aims to remove healthy babies from the Baby Home in Gomel and prevent other young children going into the home, so that it can be repurposed as a Palliative Care Centre. Natasha also met with the Trustees and Management Team to discuss all our projects in Gomel Region.
In January 2020 our Executive Director of the Charity Linda Walker visited Belarus to supervise our projects in Gomel Region.
We have continued to fund “Rodni Kut” our family home for four disabled young people in Rogachev; “Family Home 2000” for adults with physical disabilities at Klimovka; and the Children’s Home Hospice Team in Gomel.
We have also continued to support Zhuravichi Home for Children and Young Adults by employing two part time teachers, and Vikov institution for adults with learning disabilities by employing a teacher.
Godel Technologies continued to support the payment of some of our salaries in Belarus.
Because of Covid restrictions it was not possible to invite children to the UK for recuperative holidays, as we have done every summer for the last twenty five years. It was also not possible to send volunteers out to Belarus.
Volunteers and host families have been very supportive helping to raise funds online whilst our usual fundraising events in the community have not been not possible .
The largest proportion of our income is received through support groups located in various parts of Great Britain. The remainder of our cash income comes from both individual and corporate donors.
The Covid restrictions have meant that the Charity has been unable to arrange holidays in the UK. As a result of this, expenditure has not being incurred and also a reduction in costs elsewhere , the Charity has seen it's bank balances increase by £61,487.
It is not the Charity's policy to invest funds for the long term. The Charity's expenditure is seasonal as the recuperative holidays in the United Kingdom and Belarus are mainly during the months of July and August.
Risk Management
A review of the major risks to which the Charity is exposed, as identified by the Trustees, has been carried out and systems have been established to mitigate those risks. We ensure that all host families are DBS checked and we also have a Child Protection Policy in place which all groups are expected to fully adhere to. Our policies and guidelines are updated annually to improve the operation of the Charity and the safety and security of all concerned .
We intend to continue and develop our objectives and activities with the resources made available to the charity.
The charity is a company limited by guarantee, incorporated on 3 July 1996 and registered as a charity on 17 December 1996. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10.
The trustees, who are also the directors for the purpose of company law, and who served during the year were:
Recruitment and Appointment of Management Committee
The directors of the company are also Charity Trustees for the purposes of Charity Law. The Management Committee consists of the Trustees, the Executive Director and the National Co-ordinator. Under the Memorandum of Association the number of Trustees shall not be less than three. At each Annual General Meeting one third of the Trustees retire by rotation and are eligible for re-election. If the number of Trustees is not three or a multiple of three, the number nearest to one third shall retire from office.
Organi s ational Structure
Chernobyl Children's Project (UK) has a Management Committee consisting of the Trustees, the Executive Director and National Co-ordinator .
A scheme of delegation is in place and day to day responsibility for the running of the Charity rests with the Executive Director .
The trustees r eport was approved by the Board of Trustees.
I report to the trustees on my examination of the financial statements of Chernobyl Children's Project (UK) (the charity) for the year ended 30 September 2020.
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity 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 charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
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:
accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements 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
the financial statements 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).
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 financial statements to be reached.
Fundraising events
Interest received
Other income
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Chernobyl Children's Project (UK) is a private company limited by guarantee incorporated in England and Wales. The registered office is Kinder House, Fitzalan Street, Glosop, SK13 7DL.
The financial statements have been prepared in accordance with the charity's governing document, 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)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates.
Costs of generating funds comprise the costs associated with attracting vouluntary income and the costs of trading for fund raising purposes.
Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for it beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the Charity and include the audit fees and costs linked to the strategic management of the Charity.
All costs are allocated between the expenditure categories of the statement of financial activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, other are apportioned on an apportioned on a appropriate basis.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Fundraising events
Interest received
Other income
Gift aid
Council Grant and CJRS Grant
Fundraising
Fundraising
Activities undertaken directly
Management fees
Belarus premises
UK premises
Communications
Insurance
Other administrative
Accountancy fees
Governance costs includes payments to the independent examiner of £ 1,010 (2019 - £1,010 ) for the examination fees.
The average monthly number of employees during the year was:
There were no employees whose annual remuneration was £60,000 or more.
As a cha r ity, Chernobyl Children's Project (UK) is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the Charity.
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.
Restricted funds represent donations and grants specifically to support organi s ations in Belarus or projects established by the charity in Belarus. These organi s ations and projects have been established to support children and young people who are suffering from a variety of medical conditions.
During the year Kinder Management Services Limited charged £16,000 (2019 - £27,000) for the service provided by L Walker as the Executive Director. L Walker has a material interest in Kinder Management Services Limited