The Trustees present their report and financial statements for the year ended 31 December 2023.
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).
Chairman's Review
Our endeavours in 2023 to enable education, provide aid, empower girls, support refugees, and improve mental health, continue to see effective outcomes in 38 nations across the globe. Of the more than £370,000 given to the projects, almost 50% was resourcing education, 14% for mental health, and over 10% to refugee relief.
Twenty-four of those nations are across Africa, Southeast Asia, and South America. Seven are Middle Eastern countries and the remainder are in Eastern or Southern Europe. Local workers and partner organisations in all these projects work diligently to offer practical solutions for children and young people, whether poverty stricken or victims of war and devastation.
As in previous years new projects in other nations were accepted on to the CRY portfolio. Additionally, to combat the inflationary pressures and growing demands, some projects are being given increased amounts and our intention is to continue this trend where it is justified and effective.
Our commitment to the mission God has put on our hearts is key to the favour CRY has experienced over decades now. In Matthew 25:34-40, Jesus says,
For I was hungry, and you gave Me food, I was thirsty, and you gave Me drink, I was a stranger, and you took Me in. I was naked and you clothed Me, I was sick, and you visited Me, I was in prison, and you came to Me.’ ‘Truly I say to you, as you have done it for one of the least of these brothers of Mine, you have done it for Me.’
We continue to be amazed and thankful for the support base, sponsors, volunteers and staff, that makes it possible for CRY to serve vulnerable children. It is a mission of faith and hope. The outworking of faith of those called by Christ to reach out to the lives of everyone loved by God. It is even more a reliance on the God who pours out His love and faithful supply, to birth a hope for a prosperous future in a world struggling to cope and maintain peace in life.
Ian H. Chiddle
Chairman
July 2024
CRY believes in a world where all children and young people can fulfil their God-given potential.
The main activities of the charity in relation to its objects currently include:
- Enabling Education
- Providing Aid
- Empowering Girls
- Supporting Refugees
- Improving Mental Health
Public benefit:-
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
The trustees of CRY are very aware of the aims of the charity and the mechanisms by which the activities employed to achieve those aims are operated. This report highlights the aims, the mechanisms, and the activities.
Apart from the necessary costs of charity staff, the sole beneficiaries of the work of CRY are children, young people, and their immediate families, who do not have the capability or the resources available to them in the normal course of their daily living or situation. They benefit through the sacrificial giving of others who do not need the same level of assistance to relieve what might be a desperate existence.
The benefits are totally free to those who receive them. The trustees strongly support the notion that any individual or organisation should not profit from CRY activities or projects, if they have adequate resources of their own. Equally, the trustees are not aware of any detriment occurring because of the activities performed, and in all situations where CRY has involvement, the beneficiaries benefit within their social and cultural context.
CRY actively works with children, young people and their families and especially through local churches, encouraging them to take responsibility for the care programmes in their own community. CRY encourages liaison with local government and other NGOs, involves and seeks to enhance local communities as well as planning appropriate funding strategies for each programme which will encourage self-sufficiency and discourage long term dependency. Special attention is being given to those groups of people within the wider community which are marginalised or discriminated against.
CRY is currently (2023) working in:
Afghanistan
Albania
Armenia
Bolivia
Bulgaria
Burkina Faso
Cambodia
Egypt
Greece
Guatemala
Guinea
Haiti
Iraq
Kurdistan
Israel
Kenya
Laos
Lebanon
Liberia
Madagascar
Myanmar
Nepal
Nigeria
Pakistan
Peru
Philippines
Romania
Serbia
Sierra Leone
South Sudan
Syria
Tanzania
Togo
Turkey
Uganda
Ukraine
Vietnam
Zimbabwe
Care and Relief for the Young are an international Christian children’s charity with the mission to empower children in the world's most disadvantaged nations to rise beyond poverty under the leadership of local champions.
The particular way in which these objectives and activities are achieved are detailed below:-
- To provide clothing, food, accommodation, education, medical care and any other needs.
- To provide a safe and secure environment where children and young people can find assistance and develop maturity, social skills and education with particular care for the growth in the love of God.
- The relief of children and young people suffering from poverty. The charity strives to empower, and the future focus will continue to be on assisting in the creation of financially self-supporting communities by advice, resource and vocational training.
- We work in 30+ nations to meet the practical, emotional and spiritual needs of the most vulnerable and marginalised children, to help them grow up in safety, and with the support and resources they need to survive and thrive.
The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Significant activities in 2023 included:
- Providing practical solutions for children in need (prevention, intervention and reintegration).
- Expanding and influencing the provision of childcare.
- Encouraging and supporting families to care for their own children.
- Supporting residential childcare programmes where appropriate.
- Resourcing and supporting schools, preschools, homework clubs etc. which provide education for deprived children and young people.
- Providing life skills and sexual health education.
- Providing and encouraging access to vocational training.
- Providing appropriate medical assistance to deprived children and young people.
- Resourcing and supporting rehabilitation programmes for children and young people with addictions.
- Supporting children, young people and their families who have disabilities and special needs.
- Providing ‘Day Centre’ type activities for children and young people including those with disabilities and special needs.
- Supporting refugees across Europe and the Middle East with shelter, food and medical care.
- Supporting the development of small business ventures with, for example, ‘seed funding’, specialist skills etc. which provided employment for young people and generated income (income generation will help achieve self-sufficiency of the various care programmes).
The charity achieves its objectives by reviewing grant applications from charities and non-governmental organisations (NGOs) in the relevant country. The management team may accept or reject the application subject to conditions. The recipients are selected with great care and the application of the funds is monitored closely by the charity to ensure the optimum achievement of the objectives. An analysis of grants by area is included in the notes to the Statement of Financial Activities.
We collaborate with native initiatives to empower children to rise beyond poverty in over 30 nations, mostly across the Global South. These partnerships encompass a wide array of organisations, including children's homes, schools, churches, children's centres, paediatric clinics, and beyond.
In 2023 we held an Education Forum with our partners in west Africa all whom are educators. This was found to be useful and impacted their work greatly. We plan on broadening this in 2024 for our educational partners across the African continent as a whole and if successful we will consider making this a biennial event.
We have 5 areas of work we support –
Empower Girls
Across the world, girls are frequently overlooked and denied the same opportunities as boys. CRY, in collaboration with its partners, is dedicated to combating gender inequality by providing avenues for higher education, vocational training, and apprenticeships, alongside offering essential aid and hygiene provisions. Through these initiatives, we strive to empower young women and enable them to realize their full potential and rise beyond poverty.
In 2023 CRY gave a total of £24,310 to partners working in Laos, Guatemala, Bolivia and Liberia to empower girls.
Enable Education
We understand the importance of education in helping elevate people from poverty. We work with schools to help with building classrooms, providing furniture and textbooks, paying teachers and providing hot meals for students who can’t afford to pay. With our partners, we empower children and adults with life skills and practical skills such as cooking, sewing, music, and motorbikes to improve their chances of finding employment and increasing their confidence. Through our network of partners, we empower the most vulnerable to access education they might otherwise be deprived of, while also ensuring they receive essential aid and all the basic necessities every child deserves.
In 2023 CRY gave a total of £178,805 to partners working in Albania, Cambodia, Guinea, Kurdistan, Laos, Romania, South Sudan, Togo, Ukraine, Zimbabwe, Pakistan, Vietnam, Uganda, Haiti, Kenya, Sierra Leone, Nepal, Afghanistan and Tanzania to enable education.
Improve Mental Health
Through our partners, we improve children's mental health by helping them process and overcome trauma caused by their personal circumstances, war, natural disasters, or their history. Our efforts include healthy mind-related courses, a discipleship programme that incorporates counselling and trauma-informed therapies, and providing access to sporting, educational, and recreational activities. Additionally, we improve mental health by facilitating access to professionals such as social workers, doctors, psychologists, lawyers, and trained religious leaders.
In 2023 CRY gave a total of £51,769 to partners working in Albania, Bulgaria, Egypt, Serbia, Madagascar, Peru and Kenya to improve mental health.
Support Refugees
When children become refugees, they frequently lack the physical and emotional support necessary to shield them from harm. Through a variety of partner initiatives worldwide, we offer safe spaces for rest, nourishment, clothing, and play. These projects also provide educational opportunities, life skills training, and spiritual and emotional care for refugee children, helping them rebuild their lives with dignity, and hope to rise beyond poverty.
In 2023 CRY gave a total of £39,328 to partners working in Iraq, Myanmar, Greece, Turkey and Burkina Faso to support refugees.
Provide Aid
Across all our projects, our partners provide aid to children and their families who need it the most. Through them, we are able to offer nutritious meals and food packages to families; access to health care and clean water for those who lack it, and general provision of aid.
Each of the areas of the work we support (improving mental health, supporting refugees, empowering girls and enabling education), is a provision of aid to the children. This varies from project to project, but our heart is to ensure all the children’s needs are met, to see them rise beyond poverty, which includes, but is not limited to, physical aid. For some projects, physical aid provision is one of their primary focuses; for others it encapsulates all that they do.
In 2023 CRY gave a total of £77,378 to partners working in Armenia, Philippines, Israel, Lebanon and Syria to provide aid.
Fundraising activities
Various sponsored events were participated in over the year with staff and supporters alike joining runs and “Tough Mudder” events along with football tournaments to raise funds for CRY.
We have also continued to rely both on the generosity of our regular supporters and the work of the CRY trading team.
CRY Jersey
For many years CRY Jersey has been established as a charity in the Channel Island of Jersey.
The dedicated team of staff and volunteers operate two charity shops in St Helier and engage in fundraising activities. These include events such as “the Apprentice Challenge” based on the long running TV show where two local schools run a shop for a day to see who is the most successful, with all profits going to CRY Jersey. Other events include a sponsored walk and bagging shopping at supermarkets.
CRY Jersey is very much part of the CRY family and the surplus that their activities generate is used to support the work we carry out.
In 2023 CRY Jersey contributed a total of £95,103 (£72,000 general donation and £23,103 to specific projects) to CRY UK’s work for which we are most grateful. They also carry out their own grant funding projects from time to time and in 2023, they raised £3,000 for a special care baby unit in Zambia and £5,000 to pay for some walkways in the Philippines, which will be reported on in their own accounts.
CRY Trading
2023 saw a few changes to the Trading arm of CRY. We made the decision to close our shop in Cosham. We had been on a 6 month notice period with the Landlord, so exiting the shop did not incur additional costs. Additionally, the Manager had resigned, and we were able to move the Deputy Manager to one of our other shops. This meant there was no redundancy. The shop had only returned approx. £5k gross profit each year for some time and was now showing signs of losing that due to reducing sales.
The year ended with our sales and profits exceeding budget returning an additional profit contribution of £60k over budget.
We noticed how the cost-of-living crisis was affecting our sales as the year drew to a close and anticipate this biting harder into 2024.
We continue to roll out CCTV in the shops to offer staff more protection and reduce theft. Shops that have already had this installed have seen tangible improvements.
There are continual issues regards the maintenance and repairs of our shops, finding tradesman to make repairs is proving more difficult as they are in such demand. It’s noticeable how labour and materials have increased in cost.
2024 will be a challenging year but we will be doing our utmost to maximise sales and control costs.
Approximately 70 volunteers work part time for the charity, the majority of these working in CRY’s charity shops. These volunteers carry out various roles for differing periods of time. Typical job functions include working on the tills, customer services, presentation of the shop's retail area and sorting and pricing in the back offices. In addition the Charity provides work experience for many who need it. They are truly a valuable and essential asset to CRY.
The charity essentially supports projects based overseas and partnered by associates in those nations. Our support is dependent on our ability to service an agreement with these partners. Each project is reviewed annually and renewed in line with our budget for the next 12 months.
Income is generated through a variety of channels and not dependent on one method or source only. The likelihood of all income channels failing at the same time is not anticipated, and our strategy for balancing these income routes is paramount to our fund-raising policy.
CRY does not hold any assets that can be disposed of to raise new funds.
The Board of Trustees are very satisfied with the performance of the charity during the year and its position at 31 December 2023 and consider that the charity is well placed to continue its activities during the coming year, and that the assets are adequate to fulfil its obligations.
The Statement of Financial Activities show total incoming resources for the year of £1,283,493 (£1,347,153 in 2022) and total resources expended of £1,314,749 (£1,232,139 in 2022), making net outgoing resources of £31,256 (incoming of £115,014 in 2022).
The total reserves at the Year End stand at £582,241 (£613,497 in 2022) of which £552,544 (£588,040 in 2022) are unrestricted and £29,697 (£25,457 in 2022) are restricted.
Reserves policy
The charity needs reserves so that it can continue its operations in the event of an unforeseen shortfall in income or increase in costs. This is important in order that we can continue to support our project partners, whilst also paying all our fixed costs. It is therefore the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between 3 and 6 month’s expenditure (between £310,403 and £620,806). The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities whilst consideration is given to ways in which additional funds may be raised. On 31st December 2023, the charity’s unrestricted funds of £552,544 meets both the notional minimum of three months expenditure as well as our own specifically calculated requirement of £172,000. This figure is reached by taking into consideration our shop rents at £25,121, salaries at £92,146, redundancies at £46,479 and an average of the monthly bills at £8,254. The charity will endeavour to keep the reserves built up to this level over the coming year to meet the requirements of the reserves policy by strengthening and diversifying our donor base and focusing our efforts on the profitability of our retail base.
The principal funding sources in the year were:
- CRY Charity Shops (inc. Jersey) – Most shops performed at expected levels, but are under constant review.
- Project Sponsorship – Projects can be sponsored, allowing donors to target their giving
- Donations and legacies were received amounting to £367,410 (£478,204 in 2022)
- Applications to Grant-making Trusts
CRY supports both medium term and short discrete projects by way of one-off ad-hoc grants, one-off annual grants and on-going funding. To some extent the charity can vary its level of support depending on its level of income, although with the medium-term projects, especially those involving the residential care of children, regular financial support can be quite critical to their continued operation. The charity’s sponsorship programmes and income through shop trading help to provide this stability. Our expenditure in 2023 has met the objects of the charity as set out in the governing document.
The Trustees identify the major risks each financial year through the preparation and update of the strategic plan relating to the operations and resources of the charity, cash flow projections on income and expenditure and in-year budgetary control mechanisms. Risks are identified, prioritised and managed in accordance with current policy, future plans and within available capability and resource constraints.
A principle risk is that trading in our shops suffers due to economic circumstances, although the nature of our business and pricing policy will greatly moderate for this eventuality. CRY has in place a regular news communication to our supporters and sponsors and values all who offer vital support.
Plans for the future
The primary target is to continue to review the needs of funded projects and respond accordingly . We have looked to optimise our support for some of them in 2024 as their needs have been exacerbated by the cost-of-living crisis that has struck worldwide but has hit the most needy the hardest. Of course we will continue to support new initiatives when possible. Many of these are linked strongly to local churches, and yield more efficient returns for the beneficiaries, because the project is essentially owned by the partner on the ground. CRY comes alongside to facilitate the work they do. These project types are also likely to be more sustainable for the longer term than projects that CRY may directly initiate, which is why this is not something that we now do.
CRY’s objectives have been to care for and protect children and young people in greatest need. Many of these have had the opportunity to experience love, affection and security for the first time in their lives and it is this outcome which CRY wishes to continue to provide. Our emphasis on serving the poorest of the poor will remain.
The demand for our project support and expertise continues to grow, and the charity plans to increase support significantly in years to come and provide extra financial stability.
Alongside the direct care of children and their families, recent experience has shown the benefits of providing finance occasionally to enable projects to set up programmes which will provide employment, income and self-sufficiency. CRY’s objective will always be that of discouraging dependency on “aid” and, in this context, development of seed funding/business loans will be considered as viable options in conjunction with our sister microfinance charity, SEED.
The expansion of shops will be pursued when encouraging opportunities present themselves but this is not a priority.
The full name of the charity is Care and Relief for the Young. The charity is also known by the name CRY.
The charity is a company limited by guarantee (incorporated 29 April 1992) and is therefore governed by a Memorandum and Articles of Association.
There are restrictions in the charity’s activities imposed by its Memorandum and Articles.
The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
At the Annual General Meeting one third of trustees retire, but are eligible for reappointment.
Prospective trustees are recommended and interviewed by the current Board to assess their particular interest, skills, experience, area of expertise and their potential contribution. Appointment is approved by the Board of Trustees.
None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The charity has a Board of Trustees and a Senior Management Team. The Senior Management Team is responsible for the day-to-day operation of the charity and making executive decisions within the policy and framework established by the Trustees. The Senior Management Team meets on a monthly basis. The Board of Trustees meets at least quarterly and a member of the Senior Management Team attends if required.
The Board of Trustees is comprised of seven Trustees/Directors who at year end were Ian Chiddle (Chair and Secretary), Katrina Brown, Craig Bousfield, Olanike Bamodu, Mark Scott, Raymond Chow and Jamie Harding. The Trustee/Directors are responsible for establishing the policies, framework and guidelines for the operation and direction of the charity. They are stewards of the Charity and responsible for its governance.
The Senior Management Team comprised of Christopher Tait (Chief Executive Officer), Aimé Gotte (Projects Development Manager), Wendy Clark (Finance Manager), Keziah Brennan (Charity Operations Manager), Jeffrey Moss (Retail Operations Manager). The Senior Management Team meet regularly to discuss and take executive decisions in accordance with the delegated authority given by the Board of Trustees.
New Trustees are encouraged to familiarise themselves with the Memorandum and Articles of Association, the policies, aims and objectives of the charity, the projects and to meet members of the Management Team and the staff of the shops, and to familiarise themselves with the “Hallmarks of an Effective Charity” (CC10 document produced by the Charities Commission), also the “Good Governance” document produced by the NCVO.
Remuneration criteria for key management includes the following –
Salary levels are in excess of the minimum living wage, which is the lowest level that any CRY employee will receive.
Importance is placed on the Chief Executive Officer and the teamwork of the key managers, recognising that each has an equally significant part in the success of CRY.
The Charity also receives funding from Care and Relief for the Young Jersey (CRY Jersey), a charity registered in Jersey. CRY Jersey has separate Trustees and was established to raise additional project and operational funds from the Channel lslands.
King's Community Church (Southampton) offers support through offices, facilities, some occasional funding and volunteers.
Most of the charity’s project partners are registered non-profit organisations.
The Board of Trustees is satisfied that the charity’s assets in each fund are available and adequate to fulfil its obligations in respect of each fund.
The auditor, Sumer Audit (formerly Jones Avens), is deemed to be reappointed under section 487(2) of the Companies Act 2006.
The Trustees' report was approved by the Board of Trustees.
The Trustees, who are also the directors of Care and Relief For the Young 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. 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.
Opinion
We have audited the financial statements of Care and Relief For the Young (the ‘charity’) for the year ended 31 December 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:
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.
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.
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, except to the extent otherwise explicitly stated in our report, 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
the directors' report included within the Trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit; or
the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a strategic report.
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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Identification and assessment of irregularities including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We designed procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures were capable of detecting irregularities, including fraud is detailed below:
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including The Companies Act 2006.
we obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework by making appropriate enquiries of management as well as considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
we made enquiries of those charged with governance and management concerning:
the risks of fraud;
instances of non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud is documented during the period;
we allocated an engagement team that we considered collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.
Audit response to the risk of irregularities including fraud
Based on the results of our risk assessment, our procedures included, but were not limited to:
performing analytical procedures to identify any unusual or unexpected relationships.
evaluating whether the selection and application of accounting policies by the entity that may be indicative of fraudulent financial reporting resulting from management’s effort to manage earnings.
assessing whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias.
agreeing financial statement disclosures to underlying supporting documentation.
reading the minutes of meetings of those charged with governance.
testing of journal entries to address the risk of fraud through management override.
incorporating an element of unpredictability in the selection of the nature, timing, and extent of our audit procedures.
Conclusions regarding the risks of irregularities including fraud
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
Use of our report
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
Care and Relief For the Young is a private company limited by guarantee incorporated in England and Wales. The registered office is Kings Community Church, Upper Northam Road, Hedge End, Hampshire, Southampton, SO30 4BZ.
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)” (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. 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. They have considered relevant information such as forecasts, budgets and business plans and they hold monthly management meetings to review financial performance, cash flow and any emerging risks. 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 unless the funds have been designated for other purposes.
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 accounts.
It is the policy of the board of trustees to carefully monitor the application of those funds in accordance with the restrictions placed upon them.
There is no formal policy of transfer between funds or on the allocation of funds to designated funds, other than that described above.
Any other proposed transfer between funds would be considered on the particular circumstances.
Income, including grants, is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
The sale of new and donated goods is recognised as income when sold. The gift aid on the income from donated goods is recognised as income when the goods are sold.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
The policy for including items within the relevant activity categories of resources expended is to apply costs to the appropriate category where identified and to apportion overheads on an appropriate basis.
The costs of raising and generating funds shall include the costs of fundraising events, appropriate proportion of administration salaries and the shop overheads and staffing.
Charitable expenditure shall include all expenditure directly related to the objects of the charity and includes grants. It also includes support costs and governance costs relating to the objects of the charity.
The Charity receives grant applications from a number of client organisations. The board may accept or reject the application or accept the application subject to conditions. Although there is no legal liability to pay any grant to any organisation, and after approval, it is open to the board to withdraw an approval already granted, either before or after payment of a grant the accounting treatment is to create a creditor for grants relating specifically to the clients activities in the current financial year of the trustees immediately upon approval, and to include grants relating to activities in subsequent financial years as financial commitments. At 31 December 2023 there were £nil of such grants approved and unpaid. The comparative figure for 2022 was £nil.
Governance costs shall include all expenditure directly related to the compliance with charitable and statutory requirements.
There are a number of costs, including staffing costs, where it is impracticable to allocate these costs precisely between raising funds, trading and support for charitable activities and the trustees have allocated such costs on the basis of reasonable estimates as follows:-
Staffing costs and related expenses
On the basis of salary costs, and hours spent on different activities.
Premises costs and related expenses
On the trustees estimate of space allocated to different activities.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
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.
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 creditors and bank loans 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts 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 creditors 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.
Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
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.
Grants receivable for core activities
Fundraising activities
Shop income from sale of new and donated goods
Raising funds
Cost of fundraising activities
The charity achieves its objectives by reviewing grant applications from local charities and non governmental organisations in the relevant country. The local recipients are selected with great care and the application of the funds is monitored closely by the charity to ensure the optimum achievement of the objectives. The Trustees' Report has more detail on the projects being supported.
None of the Trustees (or any persons connected with them) received any remuneration or reimbursement of expenses during the year.
The average monthly number of employees during the year was:
Redundancy payments in the year amount to £0 (2022 - £900).
The full time equivalent number of employees is 20 (2022 - 19).
The remuneration of key management personnel is as follows.
As a registered charity, the company is exempt from income and corporation tax to the extent that its income and gains are applicable to charitable purposes only. Value Added Tax is recoverable by the company.
The provision for liabilities and charges is a dilapidations provision for the Eastleigh shop. The work will be done over the new lease term of 10 years and so this provision is being written off over this 10 year period starting in 2015. The original figure of £8,770 is an estimate and some of the dilapidations may be the responsibility of the leaseholder who Care and Relief for the Young sub-lease from.
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.
The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.
The restricted funds represent grants and donations received for specific charitable projects and the related expenditure. Where more has been spent on a project than income received, this is treated as unrestricted income and expenditure apart from appeals, which are always treated as restricted income and expenditure. No grants or donations are received which are conditional on being applied within a specific time period. Many of the projects are long term over a number of years. The closing balance on each fund represents the funds received for each project in excess of the project expenditure incurred prior to the end of the year. All the restricted fund balances are represented by cash at bank.
Cambodia £6,418 – These funds were remaining from a grant awarded in 2014. The original grant was for £36,272 to build a school and this money was not required. JOA the grant funding agency were contacted and they asked us to use the funds within Cambodia for a similar purpose. We will be using these funds in 2024 to hire an extra Support Worker for the children’s home.
Iraq Hope for Communities Children’s Centre £1,949 – We will be sending these funds during 2024 and they will be used to further ensure children have a safe place where they can come, learn, meet and play. They have a community centre that supports approximately 100 children at any one time, and supports a further 40 children in care homes.
Guinea Jubilee International School £1,404 - We will be sending these funds during 2024 to support by paying the fees for children who would otherwise not be able to receive education.
Albania Summer Camp £192 - We will be sending these funds during 2024 to help pay for children to attend the summer camp.
Cambodia Appeal for Village Land £13,887 – These funds were given between 22/12/20 and 12/01/22, but the project is no longer going ahead. £5,000 has already been returned to on donor in 2024. We are waiting on instructions for the remainder of the funds, which came from two other donors.
Egypt Children’s Centre £1,949 - We will be sending these funds during 2024 to help support two education and well-being clubs across Egypt, mostly in rural regions where they have limited access to education. The clubs also provide support to children who have suffered from abuse or violence.
Pakistan School £1,949 – We will be sending these funds during 2024. CRY partners with a primary school in Punjab that are providing a curriculum and the textbooks, stationery, clean drinking water, meals and other necessities to meet the children’s basic and educational needs. They give food packages to families to ensure they eat well, and ensure children’s hygiene and medical needs are being met.
Tanzania pre school £1,949 - We will be sending these funds during 2024 to the Lion of Judah pre-school, who aim to provide education to the vulnerable and marginalised children who lack opportunities for the future, and provide them with some of what they need to reach their full potential
The company is limited by guarantee, not having a share capital and consequently the liability of members is limited, subject to an undertaking by each member to contribute to the net assets or liabilities of the company on winding up such amounts as may be required not exceeding £1.
Operating lease payments represent rentals payable by the company for its charity shops and also for a van on lease rental.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £629,621 (2022 - £736,546) for the shop rents and £15,263 (2022 - £2,277) for the van.
The operating lease payments recognised as an expense in the year are £207,496 (2022 - £187,110) for the shop rents and £4,467 (2022 - £3,416) for the van.
During the year the charity entered into the following transactions with related parties:
Ian Chiddle is also a trustee of King's Community Church (Southampton). During the year there were donations received from King's Community Church (Southampton) of £8,945 (2022 - £9,617) and there were postage and shredding recharges to King's Community Church (Southampton) of £1,120 (2022 - £0). There were also expenses recharged from King's Community Church (Southampton) of £8,850 (2022 - £2,658). This consists of £6,250 (2022 - £0) for office renovations, £2,400 (2022 - £2,333) for stationery and £200 (2022 - £325) for other expenses. Included in Trade creditors is £794 (2022 - £739) due to King's Community Church (Southampton).
The charity had no material debt during the year.