Beruflich Dokumente
Kultur Dokumente
600,000
Children and their families reached to date
4,000
Students have raised money for us
2,500
People have climbed Mount Kilimanjaro for us
Contents
Letter from the Chair and CEO.................................... Pg 4 Overview of the year.................................................. Pg 6 Our values..................................................................Pg 9 Our approaches..........................................................Pg 12 Stories........................................................................ Pg 16 Structure, Governance and Legal Details.................... Pg 20 Financial Review......................................................... Pg 26 Trustees Responsibilities.......................................... Pg 28 Independent Auditors Report.................................... Pg 29 Consolidated Statement of Financial Activities........... Pg 31 Balance Sheets........................................................... Pg 32 Notes to the Accounts................................................ Pg 33
Children from Tanzania learn how to wash their hands properly as part of a health project with project partner PHEDA.
Our vision:
A world where all children have the opportunity to reach their full potential in life.
Health
Since January 2012 we have reached out to approximately 55,400 children through our health projects.
How we work:
Education
Since January 2012 we have reached out to approximately 68,000 children through our education projects.
Our values:
Institutional funding...
This financial year has seen Childreach International secure funding from several institutions including The Commonwealth Foundation, which saw eight members of our international team visit the UK office for training.
Tanzania:
39,400 children and their families We work through primary schools and communities to improve childrens access to, and quality of, education by addressing causes of absenteeism and by keeping them protected from abuse and ill health both at school and at home.
Nepal:
53,500 children and their families Childreach Nepal have been working in partnerships with grassroots organisations to run diverse projects. Many of our projects focus on improving the lives of children in remote and rural communities of Nepal.
India:
110,850 children and their families We ran 11 projects working with project partners who are dedicated to improving childrens access to education, health, child rights and protection, in both urban and rural areas, with a focus on The Right To Education.
Cambodia:
51,000 children and their families Childreach International is working with midwives on the ground in Takeo province. They are working day in, day out to provide essential maternal and child healthcare, ensuring mothers and their infants are safe.
Bangladesh:
140,300 children and their families Childreach International has been working on two projects to reduce the number of children and women trafficked through the Jessore and Shatkhira districts and into India and Nepal.
China:
36 children and their families Childreach International began working in China in 2011, supporting a project that provides life-saving surgery and nurturing pre and post-operative care for infants from Beijing orphanages.
Peru:
140 children and their families Childreach International began working in Peru in 2011 on a project that promotes education and good treatment in a primary school in Lima, reducing the cases of aggression between classmates at school and at home.
Pakistan
3,108 children and their families Childreach International has been working in Sialkot with communities to renovate schools and provide education to children in the region.
Note to reader: As our project cycles fall in-between our financial year, the numbers in this report reflect projected numbers for the end of the 2012 projects cycle.
Achievements...
Goal: Reaching out to a further 100,000 children and their
families
Goal: Developing the expertise of the Board of Trustees Achievement: Success We have appointed five new
members with professional skills that strengthen the organisation
Goal: Become an Associate Member of the Keeping Children Safe Network Achievement: Became a member in August 2012
Going forward...
Expanding our project reach to 1 million children and their families, unlocking the potential of more children across the globe Engaging with more young people working with a school in every region in the country Working with a cross section of British businesses Improving the quality of our project work, striving for best practice and being fully accountable in everything we do Developing relationships with Trusts and Foundations, and securing more Institutional Funding Review of work to date, business plans and strategy for UK and affiliate offices for the next 3 years Focus on funding programmes designed and run by affiliate offices
Our values
Respect
Childreach International does not see children as the product of their suffering but as the sum of their potential. Consequently, Childreach International uses only positive images of children. People are not defined by their economic or social status and every community has strengths and weaknesses. They should not be characterised by poverty. Within all people, especially children there lies ambition and potential and as an organisation it is our privilege to play a small role in helping children unlock their capabilities. At the heart of our organisational values lies the respect between our staff, our offices and between Childreach International and our community partners. Our best measure of whether we are succeeding as an organisation is not how well people respond to our marketing or our message but how children, their communities and our local partners talk about us when asked if the relationship is genuine, equal and respectful.
Inclusivity
Childreach International staff and international programmes are truly diverse and are not selected on the basis of race, religion, gender, sexuality, sexual orientation, caste or age. Whilst Childreach International is very careful to not align with any specific political groups, parties, organisations or philosophies in the countries we work in, we do encourage engagement with local and national governments to promote our work and lobby for the rights of children. Although we recognise and acknowledge that different cultures around the world have different attitudes (both in the workplace and society) towards these issues, we believe as an organisation that all of our internal and external interactions should actively promote inclusion, tolerance, respect and above all equality.
Active Engagement
Wherever possible we seek to actively engage our donors and supporters to encourage them to gain a deeper understanding of our work and become involved as active stakeholders, rather than passive contributors. As well as creating an energetic and enthused supporter base, this also has the added advantage of turning Childreach International from an NGO into an active global movement. Most of our supporters are young people themselves and, as such, the future decision makers within their societies. Fulfilling roles of advocates during such an informative stage of their lives enables them to develop a broad sense of development awareness and an embedded passion to promote the interests and rights of children around the world. Moreover, we encourage the active engagement of our beneficiaries, communities, project partners and staff. Child participation and community led development is integral to every aspect of our work, from the formation of projects to the assessment of our impact on the ground.
Above: A member of staff visits a project in Pakistan and spends time talking to member of the community
10
Honesty
In our role as stewards or custodians of donor funds intended to benefit the lives of children around the world, it is especially important that both the nature of our projects and our financial operations are clearly communicated to our donors, the communities in which we work, the organisations that we support and the wider public. Our reputation for sound financial management is of utmost importance. Furthermore, we have a particular responsibility to be honest and open with the children who participate in our projects and the communities who invite us to work with them. In order to improve our work as an organisation and contribute to progress in the international development sector it is also particularly important as an organisation that we are honest about the mistakes we make and share the lessons we have learnt to enable others to improve their work. Central to this is creating an atmosphere and a culture within Childreach International that avoids blame and encourages a sense of shared responsibility for organisational development. Through acknowledging our weaknesses and failings we can respond constructively and work effectively to enhance our efforts.
11
Our approaches
Community centred
Children are at the heart of everything Childreach International does. We endeavour to promote a child-centred community development approach wherein the children, their families and their communities are owners of the development process. We believe that our legitimacy and authority as an organisation comes from prioritising the children themselves, in the context of their family and their wider community. Our work is underpinned by the principles of the UN Convention on the Rights of the Child; we are guided by the best interests of the child at all times and adopt the non-discriminatory principle that all rights apply to all children without exception. The diagram below is a simple illustration of our perspective.
Childreach International works at a grassroots level, forming genuine partnerships with community based organisations (CBOs). We believe communities have the strength and willingness to overcome their own challenges and that these organisations are best placed to understand the issues existing in their community. We strive to support local heroes passionate about improving the lives of children in their communities. Through our work with these agents of change and CBOs we implement sustainable community led initiatives and support projects which enable community ownership at every stage of the project cycle.
12
Participatory
Fundamentally connected to this community centred approach is the need for respectful and meaningful participation, particularly that which involves children. We aspire to place child participation at the heart of how we operate. Our job is not to dictate to children but to engage young people in designing and participating in projects and programmes that genuinely reflect the needs and aspirations of their generation. We believe children are not passive objects of interventions but should be active agents in their own development. This requires more than just listening to them, it means involving children in decision-making, and encouraging them to take an active role in finding solutions to their problems. Over the coming years we plan to incorporate some form of child participation at all levels and stages of the project management cycle. Closely related to our commitment to child participation is a focus on child protection. Child protection will be prioritised at all times and present in all aspects of our work as an organisation.
Participation of communities is another essential requirement of our projects. By involving the children, their families and the wider community we foster a sense of ownership and encourage them to become stakeholders able to provide sustainable solutions to the poverty cycle and shape their own futures. We will actively pursue a scenario where every project we support actively, ethically and meaningfully involves all relevant actors (including children) in the decision -making process for planning, implementation and evaluation, through which they are empowered to claim their rights and take responsibility for a project and its results.
13
Holistic
Childreach International believes in a holistic approach to development. Through our partnerships, we facilitate simultaneous delivery of numerous discrete initiatives which, when combined, are more effective than when delivered apart. This kind of multi-pronged approach, often sector-wide in scope, increases our impact. These programmes may include aspects from one, two or all three of our development themes of health, education and child rights and protection. By addressing a variety of issues through meaningful lasting partnerships we form synergies, creating a multiplier effect that expands and strengthens the positive effects of our projects. In addition to supporting initiatives which deal with the immediate socio-economic needs of children, we are working to develop a framework in which we also integrate elements of a child rights focussed approach. Our work does not merely respond to identified needs but rather follows the three pillars of child rights programming (engaging with and supporting duty bearers and rights holders and incorporating aspects of advocacy). This involves child rights situational analyses and needs assessments with advocacy and awareness activities which respond to identified challenges. Our programmes will focus on addressing underlying issues of the root causes of poverty, and will work with rights holders and duty bearers on all levels. This is a vital step in ensuring project sustainability and will allow us to bring about lasting change and greater impact in the lives of the children we work with. Our emphasis on the holistic also requires us to recognise the various aspects of child wellbeing, such as material, relational and subjective, and reflect these multi-dimensionally within outcomes. This approach will place greater emphasis on peoples potential to fulfil their ambitions, and not on those areas in which they are deficit. We will focus on self determination and participation rather than exogenously defined well-being.
14
Sustainable
Sustainability is an integral benchmark by which we evaluate the achievements of our projects and the manner in which we work. The strength of a projects sustainability will often depend on the successful implementation of our three other approaches. We aim to facilitate results which have permanent value for those they aim to affect, the surrounding communities, the institutional capacity of governments, and the environment. As an organisation we cannot talk about environmental sustainability without incorporating awareness of environmental impact and subsequent adaptive and, or mitigating responses into all of our work and projects. The environmental legacy that we leave to the next generation is ultimately as important as the economic or social impact we have through our current initiatives. We will both improve the way we work by minimising our negative impact on the environment and seek to become a model of excellence within the sector.
15
Where: Resettlement colony, South Delhi What: Working in partnership with Nav Srishti to
support the education of deprived children, especially girls, and to generate overall awareness on child rights.
Who: 4,000 children and 8,000 parents Why: Sangam Vihar is a vast unauthorised colony.
Literacy rates among these people are very low and only 30% of women are literate. Violence and abuse are a daily threat and often children are left to deal with issues alone. The lack of awareness on child protection and rights means that children become easy and unwilling victims of circumstances.
Kamlesh visited her 3 children's formal government school. She was shocked to see a student of 7-8 years cleaning the floor instead of attending classes. She decided to raise her concerns. The Principal did not address her concerns and Kamlesh decided to visit the Nav Shrishti officer to share her concerns where the staff helped her file an application under the Right to Information Act. An explanation was sought from the school principal, who invited Kamlesh to his office and invited her to be a part of the School Management Committee. Since joining the committee Kamlesh has mobilized other parents and proactively involved them in the learning process of their children. Last year, the school was awarded best prize for highest academic results in its zone in Delhi. Parents learning about their children rights
16
Why:
17
Where: Bangladesh. Who: 91,027 people What: Working with project partner BISAP to
prevent child trafficking.
Rescue story...
In 2011 a 14 year old girl called Nishat was rescued from a gang of child traffickers who abducted her from her home in the Satkhira District. Having attended an awareness raising session, Nishat remembered the phone number for the abduction helpline and was able to contact the watch committee. The Community Facilitator contacted the police and together they were able to find Nishat and take her back home. Nishat now lives with her grandmother and is back at school. On returning home Nishat said:
I want to continue my studies to become a teacher so that I can educate more children about the real dangers of child and women trafficking.
18
Where: Rural Nepal. Who: 170 students from Yangrima School plus
wider community benefits 1,300 children and 800 households in the region.
Dhulikhel Hospital on safe drinking water, health and sanitation. The children will then pass on what they have learnt through holding monthly meetings with mothers groups, womens groups and general community engagement allowing the projects to be locally owned and sustainable.
How:
Childreach International is providing a health project that will see Dhulikhel Hospital provide healthcare to children in this rural district of Nepal. The Health Clinic provides huge benefits to the rural community, which is located about a five hour walk away from the nearest government health facility. Without adequate healthcare within the community, children are vulnerable to illnesses such as pneumonia, diarrhoea and dysentery, as well as non-infectious diseases. The clinic will not only provide treatment to children and members of the local community, but will also focus on encouraging knowledge and awareness of preventative healthcare. This sustainable project will see at least five teachers at Yangrima School receive training on issues such as health, hygiene and first aid. The students will form health clubs and will also be trained by representatives from
The Health Clinic is a new project with Childreach International at Yangrima School. In communities where governments fail and systems dont work, people suffer a lot and we have to find a solution to that. If we can mobilise people, involve communities and work with good project partners, I believe we can bring about lots of change.
Dr Biraj, Dhulikhel Hospital
19
Professor Victor Patterson (Chair) David Henry Gray (Treasurer) appointed 8th December 2011, appointed Treasurer 9th February 2012 Oneka Baptiste (resigned 25th August 2012) David Durkee Susan Jayne Gilbert (appointed 8th Dec 2011) Said Hafiz (resigned 1st November 2012) Lucretia Hudson-Garber Ross Kemp (appointed 8th December 2011) Felicity McLean (appointed 8th December 2011) Ivor Robin Ramphal (resigned 16th September 2012) Sirmad Shafique (resigned as Treasurer 9th February 2012) Radha Vyas (appointed 8th December 2011)
Auditors:
Crowe Clark Whitehill LLP St Brides House 10 Salisbury Place London EC4Y 8EH
Solicitors:
Bates Wells and Braithwaite 2-6 Cannon Street London EC4M 6YH
Company Secretary:
Katie Ford (resigned 16th March 2012) Firoz Patel
Bankers:
National Westminster Bank 2nd Floor, Argyll House 246 Regent Street London W1B 3PB
20
Structure
Legal structure
The charity was incorporated as a company limited by guarantee on 1st September 2009, receiving the assets and liabilities of an unincorporated trust, Childreach International, on 1st November 2009. The charity is governed by its Memorandum and Articles of Association.
Key personnel
The Chief Executive Officer and senior management are responsible for the day-to-day management of the organisation. The Chief Executive Officer is accountable to the Board of Trustees and oversees the daily activities of senior management, staff and volunteers in the implementation of the policies laid down by the Board of Trustees.
Board of trustees
The governance of Childreach International is the responsibility of the Board of Trustees. The Board of Trustees focus is primarily on strategic planning and governance which includes: measuring strategic results achieved by management, satisfying the regulatory requirements of the charity and fulfilling the Board of Trustees responsibilities to all interested parties.
Trading subsidiaries
Charity Expeditions Limited (formerly known as Childreach International (UK) Limited) is a trading subsidiary of the charity which has not actively traded in the year. In the prior year it supported the fundraising activities of Childreach International through the recruitment of participants for challenge events but this activity has since been transferred to the charity. Climateplus Limited is a wholly owned subsidiary incorporated in February 2011; it was dormant during the year and at the time of signing these financial statements. The charity and its subsidiaries are collectively known as the Group. The assets, liabilities and trading results of the companies are incorporated in the consolidated Financial Statements.
Auditors
Crowe Clark Whitehill were re-appointed auditors during the year.
Organisational structure
Childreach International operates through a global network of implementing partners and locally registered, independent, Childreach International affiliates. They liaise closely with Childreach International in the UK within a formal reporting and monitoring framework that ensures all offices work towards the same core strategic objectives. Our working relationship with affiliates and implementing partners ensures the appropriate utilisation of funds provided for our programmes. As all affiliate offices are separate independent legal entities in their own jurisdictions and regulations, their results are not included within these accounts.
21
How we work
Public benefit
The Trustees confirm that they have referred to the Charity Commissions guidance on public benefit when reviewing Childreach Internationals aims and objectives and in planning activities and setting policies for the year ahead.
Through Childreach Internationals UK programmes, designed to educate young people and connect them with global issues that they can positively change
Using both partner and affiliate organisations helps us utilise local knowledge effectively and assists in our educational work. Cooperation with existing local government agencies and other organisations is essential when implementing efficient development strategies. In Pakistan, Tanzania, India and Nepal, Childreach International affiliates work with local governments in regions and communities which have been overlooked by many of these other organisations.
Our programmes
Our programmes help us realise our vision. Each programme has its own overall objective, realised through pioneering grassroots projects which focus on improving health, education or child rights and protection. Guided by our underlying principle of community based development, they operate using two highly effective approaches; either through implementation by Childreach International, our affiliates, or through strategic partnerships with locally established NGOs and community based organisations.
Our affiliates
The inauguration of our partner international organisations has formed an integral part of our strategy to improve the reach and capacity of our work. The global organisation is represented by offices in Tanzania, Pakistan, India and Nepal that are run by national staff, overseen by Trustees from the local communities and governed by local legislation, so are independent from Childreach International. Childreach International has been able to exercise more precise monitoring and evaluation measures through its international affiliate organisations, ensuring the programmes and projects we support can adapt and develop to better meet the requirements of the local communities. We have been able to improve training and capacity building techniques within each office, extensively developing the skills and technical abilities of the staff in areas including finance, IT and programme management. Co-operation between our UK office and international offices utilises our collective strengths. Local staff speak local languages and dialects, understand the most pressing local needs and remain close to programme and project sites, enabling issues to be dealt with more quickly. UK staff provide assistance and support to local staff, bringing a wealth of policy expertise and international development project management.
How we work
Our charitable aims are put into practice by ensuring that all children in the areas we are working enjoy a minimum standard of nutrition, safe drinking water, sanitation, healthcare and the opportunity to go to school and to acquire the life skills to earn a secure livelihood. Where we work is decided by taking into account the following factors:
Data on relative levels of poverty for countries across the world Information from partners and affiliate organisations about areas not well served by other NGOs and international support Where our input is most effective Availability of local partners and their willingness and capabilities to work with us The degree of stability, safety and security in the area of operation
Through Childreach International affiliates in Tanzania, India, Nepal and Pakistan Through grant organisations making to partner
22
Fundraising
We believe that fundraising is about more than just financial resources. Our revenue streams are designed to create active participation, not just donors. Our supporters are part of the process; from their initial financial input through to the implementation of our programmes. The methods we use are found throughout the charitable sector; however what makes us different is the manner in which we deliver our fundraising models. With Childreach International, fundraisers develop a sense of ownership of the work delivered on the ground. Futurebuilding and challenge events provide an income that is almost entirely comprised of unrestricted funding. Thousands of people participate and raise funds for us. However, effective training, inspiring leaders and life-changing expeditions turn these individuals into more than fundraisers. They also gain a life changing experience which will enable them to have a wider knowledge of the world and become advocates for international development and global change. Furthermore, through our carbon offsetting scheme, we also ensure that our fundraising programmes create responsible travellers and protect the environment. Childreach International is dedicated to accountability, best practice and the belief that fundraising is about engagement and awareness. Our success this year can be attributed not only to those who have given money, but also to those who have given their time.
Volunteers help
The Trustees extend their gratitude to all volunteers who assisted Childreach International in the UK and elsewhere in achieving its goals and objectives. We had over 1,200 (2011 800) fundraising volunteers as well as 20 (2011 20) office volunteers over the space of a year who contributed over 14,100 hours (2011 15,600 hours) of their valuable time. Childreach International considers volunteers as the heart and soul of its operations and relies upon them to be able to deliver its programmes.
23
Safety first
Compliant or exceeding the British Standards for safe overseas adventures (BS8848) Risk management and duty of care are the number one issues to consider when taking groups on adventure challenges. The best practice or kite mark for safety is BS8848.
FRSB compliant
There are many laws and recommendations relating to fundraising. We make sure you know how to adhere to the highest standards of fundraising.
Risk management
The process of identifying risks and developing an ongoing programme to monitor and mitigate against them is undertaken and reviewed by senior management and the Board of Trustees. To fulfil our vision and mission effectively, to safeguard our staff and beneficiaries and to meet our obligation to our donors, risks are managed through the following mechanisms. All risks are recorded in a Risk Register which is presented to the board as a standing item. This ongoing programme incorporates all aspects of risk faced by the organisation relating to governance, operations, finances and external obligations.
Corporate governance
Internal control over all forms of commitment and expenditure continue to be refined to improve efficiency. Processes are in place to ensure that performance is monitored and that appropriate management information is reviewed. The systems of internal control are designed to provide reasonable but not absolute assurance against material mismanagement or loss. They include:
A strategic plan together with the annual operating plan and budgets approved by the Board of Trustees Regular analysis by the Board of Trustees of the results and variances from budgets Segregation of duties The identification and management of risks as outlined above
The current key strategic risks are considered to be: Harm to a young person served by one of our projects or participating in one of our events Damage to reputation and public confidence Sustainability of various income streams in order to deliver our strategic objective. The CEO and senior management are responsible for mitigating against these risks and reporting to the Board on measures taken to reduce exposure to risk.
24
Operating assurance
Assurance is undertaken by in-country external audits, field visits by Childreach International staff and additionally by the finance function of Childreach International whose role it is to carry out a programme of regular risk-based cyclical audits within Childreach Internationals partners and affiliates. All reports are directly addressed to the Chief Executive Officer. These reports are reviewed and then passed onto the Board for inspection. The audit programme includes risk based audits of overseas projects and UK based functions.
Grant-making policies
Childreach International provides grants to organisations which meet the charitable objectives and criteria set by Childreach International. After initial screening, applications are reviewed by senior management. All grants are made on a one year funding cycle with organisations being invited to re-apply. Recipients of funding are subject to quarterly reviews before the next instalment of funding is given. This is to ensure that the agreed objectives have been met and that the finances are being adequately managed and controlled. Childreach International ensures that all grant applications are treated equally and fairly.
UK student fundraisers enjoy the view of the mountains as they cycle across the Himalayas on a Challenge Event.
25
Financial Review
During the year, the Group raised over 4.4 million (2011 4 million) from the general public and grant-making bodies. The sustained rise in income was due to the wider engagement of young people with our overseas projects and events. Almost all of our income was unrestricted. We are very fortunate to be in this position and the Trustees intend to leverage these funds to pursue restricted income streams. The Charitys principal source of income is generated through Challenge Events, such as Climb Kilimanjaro for Kids, in Tanzania. About 45% of funds raised by participants go on the cost of the event, such as climbing the mountain, with all remaining fundraising income available to the charity. From the money available to the Charity from voluntary donations and net of the cost of Challenge Events, expenditure in this financial period was allocated as follows: For each 1 raised:
Reserves policy
Total fund balances were 326,912 at the end of the year (2011 100,002). Unrestricted reserves were 302,665 (2011 74,367). Restricted fund balances were 24,247 (2011 - 25,635).
Previously the Group was holding 50,000 as Designated Reserves, which was set aside from the main Unrestricted Reserves. This position has now been reviewed and agreed that it is more appropriate that the Unrestricted Reserves should be sufficient to cover any committed future project funding and to ensure there is sufficient funds to meet three months operating expenditure. As at 31st August 2012 this sum is 225,000 out of the total unrestricted reserves of 302,000.
Financial Position
Since the end of the financial year we have seen little change in the economic environment and the signs are that the number of fundraising volunteers will be reduced in the 2012/13 financial year, with a corresponding reduction in income. It is likely that there will be a shortfall in net income for the year but the Trustees and senior management are confident that this can be covered by the unrestricted reserves in place. Measures have been taken to reduce expenditure which should result in a surplus again in the following financial year 2013/14.
7p
2 3p
towards governance
26
A mother, Nun, looks on to her healthy one month old baby, after receiving treatment from the maternal health centre in Cambodia.
27
29
Consolidated Statement of Financial Activities (incorporating income and expenditure account) for the year ended 31st August 2012
Note Income and Expenditure Incoming Resources Incoming Resources From Generated Funds: Voluntary Income Activities for Generating Funds Investment Income Incoming Resources from Charitable Activities Other Incoming Resources Total Incoming Resources Resources Expended Costs of Generating Funds Net Incoming Resources Available for Charitable Application Charitable Activities Governance Costs Total Charitable Expenditure 6 7
Unrestricted funds
Restricted funds
Total 2012
Total 2011
2 2 2 3 4
Total Resources Expended Net Income /(Expenditure) for the Year Net Movement in Funds Fund Balances at 1st September 2011 Fund Balances at 31st August 2012
All amounts relate to continuing operations. There were no gains or losses other than the results for the year.
31
Notes to the Accounts for the year ended 31st August 2012
a) Basis of Preparation
The accounts have been prepared under the historical cost convention and in accordance with applicable United Kingdom accounting standards. These accounts have been drawn up in accordance with the Statement of Recommended Practice (SORP) Accounting and Reporting by Charities (revised 2005) and the Companies Act 2006. The company meets the definition of a small company as defined by the Companies Act 2006 and is therefore exempt under Financial Reporting Standard 1 (Revised - 1996) from preparing a cash flow statement.
b) Consolidated Accounts
Group accounts have been prepared for Childreach International, and its wholly owned subsidiary companies, Charity Expeditions Limited and Climateplus Limited, in accordance with the requirements of SORP 2005. Climateplus Limited was dormant during the year. The accounts have been consolidated, on a line by line basis to include the results of Charity Expeditions Limited and Climateplus Limited. The results of Charity Expeditions Limited are shown in Note 18. In accordance with the Companies Act 2006, no individual statement has been prepared for the parent company, Childreach International.
d) Going Concern
After making enquiries, the Trustees have reasonable expectation that the charity has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Financial Review on page 26.
e) Grants Receivable
Grant income is recognised in accordance with the terms of the grant and is included in the accounts when there is demonstrable evidence that Childreach International is entitled to it. In the case of conditional grants, the income is recognised when meeting the conditions is within the control of Childreach International, and there is evidence that the conditions will be met.
c) Affiliates
At the end of the financial year, Childreach International had associations with the following overseas charitable operations. The Trustees consider that Childreach International does not exercise sufficient
33
Notes to the Accounts for the year ended 31st August 2012
events and provision of some support services to the Challenge Event programme.
Charitable Expenditure
These costs include the programmatic costs of all international development work, including grants made to overseas partners and affiliates and the development experience programme. The cost of project management staff in the UK who assess applications for funding and monitor and evaluate charitable spending is also included, as well as a portion of overheads.
Governance
Governance costs are those associated with the governance arrangements of the Charity. These costs are associated with constitutional and statutory requirements. A proportion of overhead costs are also included.
h) Grants Payable
Direct expenditure in each country is made by way of grants payable to associated overseas operations run by the charitys independent partners and affiliates. Grants are made on the basis of a project proposals adherence to our rigorous selection process. This includes measuring suitability against criteria including, but not limited to, alignment to the key themes of the charitys work, working within target countries, their predicted success, the number of beneficiaries that will be reached and innovative means of assisting children in developing communities.
34
Notes to the Accounts for the year ended 31st August 2012
Grants are only made to recognised institutions within target countries. The progress and success of individual projects is assessed regularly and continued funding is reviewed on a quarterly basis.
Gains or losses resulting from conversion of foreign currencies have been dealt with in the Statement of Financial Activities.
l) Funds structure
General reserves 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. The Trustees have set the reserves policy such that the unrestricted reserves available to the charity should be sufficient to cover future committed project funding and to ensure there is sufficient funds to meet three months operating expenditure. As at 31st August 2012 this sum is 225,000 out of the total unrestricted reserves of 302,000. Restricted funds are grants and donations to be used in accordance with specific restrictions imposed by the donors or those funds raised by the charity for a particular purpose; these may be project specific or more broadly restricted to a specific theme or country. The cost of raising and administering such funds are charged against the specific fund. Details of restricted funds are set out in Note 14.
i) Depreciation
Tangible fixed assets are stated at cost. All assets costing more than 400 are capitalised. All items less than 400 are expensed in the year of purchase. The cost of tangible fixed assets is written off over the estimated useful lives of the assets on a straight line basis as follows: Computer equipment - 25% Fixtures, fittings and equipment - 25%
j) Investments
Investments in subsidiary companies in the balance sheet of Childreach International are stated at cost.
k) Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction.
35
Notes to the Accounts for the year ended 31st August 2012
Restricted funds of 65,438 were generated in the year (2011 - 105,728) and are included in incoming resources above (see Note 14 for details). The charity receives donations from private individuals, corporate entities and charitable trusts and foundations which are included in voluntary income. Donations received from fundraising volunteers who collect donations relating to specific fundraising Challenge events are included under Challenge Event Programmes above. These activities include:
Climb Kili 4 Kids A Great Wall Expedition Everest Cycle India Trek Machu Picchu Atlas Ascent
Restricted funds of 12,598 (2011 - 4,627) were received in Futurebuilding income in relation to the Manikharkha Nepal fund and in My School My Voice income in relation to various school funds (see Note 14 for details).
36
Notes to the Accounts for the year ended 31st August 2012
All expenditure that is wholly and directly related to the raising of funds and considered fundraisingspecific is categorised under costs of generating funds. Additionally, general overheads totalling 18,561 (2011 - 13,972) have been allocated to costs of generating funds as per the accounting policies set out in Note 1. This amount includes depreciation of 1,142.
37
Notes to the Accounts for the year ended 31st August 2012
206,381 178,296 108,939 17,357 17,475 4,727 53,354 3,210 12,868 2,014 2,954 13,444 152,468 1,100,286 12,477 132,603 2,408,468
342,812 22,071 159,921 154,039 12,136 17,653 17,059 314,343 7,852 7,453 8,741 941,934 117,112 2,361,422
Restricted funds of 73,131 (2011 - 91,283) were spent during the year, in relation to the following projects: - Nepal Telemedicine - Nepal AWIH - Edith Wilkins Darjeeling - Centre for Development, India - Vodafone World of Difference - Jipe School - Climate Change Projects - Comic Relief Scoping Grant - Cambodia Midwives - Litre of Light - Ghona Vocational Training Centre - School Farming Tanzania - Gujarat Region Projects - Nepal Projects - BISAP Payroll Giving - Benjamin Williams Books - Phulki - Lotima School Mains Water - Commonwealth Foundation
38
Notes to the Accounts for the year ended 31st August 2012
Grant Awarded To
Childreach International Tanzania
Purpose of Grant
A grant was provided to allow Childreach International Tanzania to support local projects that increase access to appropriate levels of nutrition, child protection, HIV education as well as rebuilding and extending facilities in local schools, increasing base literacy skills, encouraging extended attendance for female pupils as well as funding a centre for street children. In Nepal a grant was provided for a selection of projects to tackle issues including: raising awareness of sexual abuse, health and nutrition training for teachers and caregivers, telemedicine for remote areas, paediatric health camps. A grant was provided to Childreach International India to work with local project partners to improve childrens access to education, health, child rights and protection, in both urban and rural areas tackling important social issues such as gender inequality and community displacement.
2012 206,381
2011 342,812
108,939
154,039
178,296
87,677
39
Notes to the Accounts for the year ended 31st August 2012
13,444
7,554
2,014
7,453
Phulki Bangladesh
7,188
6,427
10,287
11,226
All expenditure that is wholly and directly related to charitable activities and considered projectspecific is categorised under costs of charitable activities. Additionally, general overheads totalling 132,603 (2011 - 117,112) have been allocated to costs of charitable activities, based on time spent and resources expended as per the accounting policies set out in Note 1. Other direct expenditure totalling 12,477 includes the cost of needs assessments and the My School My Voice programme. The Development Experience Programme is an integral part of our fundraising model. As well as development awareness training, this programme involves taking young people to the developing world to see and understand the projects and programmes that their fundraising efforts contribute towards. Other expenditure includes depreciation of 4,948 (2011 - 5,729).
40
Notes to the Accounts for the year ended 31st August 2012
Activity Type
Child Rights and Protection Projects Development Experience Programme Education Projects Futurebuilding Projects Health related Projects Other Expenditure Total
Note 7. Governance
All expenditure that is wholly and directly related to governance is categorised under costs of governance. Additionally, some general overhead and staff costs are categorised under costs of governance.
2012
Staff costs: Wages and salaries Social security costs Staff training External audit fees External accountant fees Other professional and legal fees Other governance expenditure
General overheads totalling 21,820 (2011 - 18,953) have been allocated to costs of governance, based on time spent and resources expended as per the accounting policies set out in Note 1. Other expenditure includes depreciation of 1,523 (2011 - 57).
Note 8. Audit
The audit fee for the year was 14,750 (2011 14,250). Additional services received in the year from Crowe Clark Whitehill LLP include 1,970 paid for tax advice and 100 for training.
41
Notes to the Accounts for the year ended 31st August 2012
2011
8 17 1 26
42
Notes to the Accounts for the year ended 31st August 2012
Charity Fixtures, fittings and equipment 2012 27,243 11,661 (1,891) 2011 19,559 7,684 -
31st August Depreciation 1st September Disposals Charge for the year
37,232
27,462
37,013
27,243
9,611 7,668
9,517 7,614
3,788 5,729
17,279
9,611
17,131
9,517
19,953
17,851
19,882
17,726
173,409
257,515
184,796
262,290
43
Notes to the Accounts for the year ended 31st August 2012
Income 4,351,862 -
Expenditure (4,123,564) -
24,367 50,000
Total unrestricted funds Worldwide:Climate Change Projects Commonwealth Foundation Fellowships My School My Voice
74,367
4,351,862
(4,123,564)
302,665
(1,243) (16,616) -
145
40 6,183
(40) (5,455)
728
44
Notes to the Accounts for the year ended 31st August 2012
India:Centre for Development Comic Relief Scoping Grant Edith Wilkins Street Children Gujarat Region Projects My School My Voice
Nepal:AWIH (Learning Difficulties Support) Manikharkha School My School My Voice Nepal Projects Telemedicine Projects
Pakistan:Pakistan Projects Tanzania:Benjamin Williams Books Jipe Primary School Kibo School Litre of Light Project Lotima School Mriti School Mwanda School Fund My School My Voice School Farming Singachini School UWA Primary School Woodford Trust, Ghona VTC
1,800
1,800
45
Notes to the Accounts for the year ended 31st August 2012
During the year, due to a change in reserves policy, the designated reserve was released into the general reserve through a fund transfer of 50,000. Restricted funds with income of less than 20,000 in the year have come about from a combination of donor request and funding applications by the charity aimed at securing funding for specific projects. The two most significant restricted funds in the period were a scoping grant from Comic Relief and funding from the Commonwealth Foundation. The scoping grant from Comic Relief is for the purposes of conducting necessary evaluation relating to potential funding of an India based project in the coming year following an application by the charity to the fund. Due to timing issues the Woodford fund was in deficit at the year end. This is expected to be rectified in the 2013 financial year through the receipt of further income.
Total 2012
19,953 19,953
46
Notes to the Accounts for the year ended 31st August 2012
47
Notes to the Accounts for the year ended 31st August 2012
(440) (834)
(1,274) (80)
245,661 (3,188)
Operating profit
(1,354)
242,473
(Loss)/profit on ordinary activities before taxation Tax on surplus from ordinary activities Net profit gifted to Childreach International (Loss)/profit for the financial year after tax Climateplus Limited was dormant in the year.
(1,354)
242,473
(1,354)
(242,473) -
48