The trustees present their report and financial statements for the year ended 31 May 2024.
Throughout the year, the charitable company's name was The Children's Heart Federation. This was changed to Children's Hearts UK on 22 January 2025.
Children's Hearts UK (CHU) is a leading UK children's heart charity working to meet the needs of children and young people with congenital and acquired heart conditions (CHD) and their families. We are parent-led and pride ourselves on providing expert, direct and empathetic support.
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 charitable company's 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)".
Our core objective is to champion people living with heart conditions, their families and carers and the organisations supporting them, by sharing information and knowledge, providing support, speaking out and working with each other to make a difference.
Public benefit
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake to meet public benefit. The board has considered the criteria laid down within the guidance and believe that in all respects the charity fulfils those criteria in its day-to-day operations.
Our committed team and dedicated volunteers continued to work hard to achieve our vision: that all children with heart conditions have their medical and social needs met so they can live the fullest lives possible. Throughout the past year, the CHU team:
• Continued to support children with heart conditions, and their families and carers with detailed specialist guidance via our information sheets, support telephone service and in person support. Amending these services to best suit the needs of our community, such as providing translations and 24/7 telephone support.
• Hosted an in-person family activity day for children with heart conditions to engage in fun activities with their families and build their peer support network.
• Hosted 3 exercise activity days focused on building confidence with exercise for children with heart conditions and their families and carers.
• Provided specialist equipment including 40 INR machines, which enabled children and young people to safely monitor their health conditions at home, minimising the discomfort and disruption of more frequent hospital visits.
• Attended 11 conferences across the country to ensure we are keeping up to date with latest advances, best practice and changes within the sector and amplifying the voices of the children with heart conditions we support with care professionals.
• Continued to build Pulse Parents, a successful forum of now 300 parents and carers providing online peer support, and arranged monthly interactive question-and-answer sessions with experts on topics relevant to heart families.
• Provided Molly’s Dollies to support 125 children with heart conditions with a friend throughout their heart journey.
• Developed the first national bereavement page to provide remembrance for children we have lost to heart conditions and support for their families.
• Participated as active members of the NHS Congenital Heart Disease Clinical Reference Group and the local Integrated Care Board Patient & Engagement Forum, ensuring the voices of children with heart conditions can contribute to decision making about their care.
• Were nominated for a Charity Film Award for an introductory film about our work, raising public profile and awareness of heart conditions in children.
Aware of increasing support and interest from individual families which complements the ongoing support from parent-led organisations, we have further developed our understanding of the wide range of issues facing thousands of heart families across the UK. We will use this knowledge to further our future strategy.
The majority of our funds came from companies and grant-making trusts and foundations. We were also so grateful to individuals and communities who contributed to our efforts completing fundraising challenges led by CHU and independently. We rely on all of these funders to make a difference to the lives of children with heart conditions and their families and thank them for their generous support.
Reserves policy
It is 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 three months' expenditure. 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 while consideration is given to ways in which additional funds may be raised. Unrestricted reserves at the year ended 31 May 2024 of £123,185 (2023: 176,479) exceeded the reserves policy and the trustees are looking to expand the charity’s capacity to deliver its existing services as well as developing new areas within the scope of its objectives. In addition to the unrestricted reserves, the charity held restricted reserves of £78,600 (2023: £19,296) at the year ended 31 May 2024.
Risk assessment
The trustees have assessed the major financial and non-financial risks to which CHU is exposed, along with the systems, operating procedures and insurances in force, and are satisfied that systems are in place to mitigate exposure to the major risks.
Plans for the future
We will continue to share our knowledge and information with policymakers and service providers as well as parents and patients, and we will also continue providing direct support to heart families. We aim to extend our reach to families from diverse communities, using appropriate and relevant information and communication technologies, and continue to adapt our services so that they are responding to the contemporary and changing needs of heart families.
CHU is a charitable company limited by guarantee. CHU is governed by the Board of Trustees with a broad range of experience and skills as well as knowledge of congenital heart conditions, including accountancy, nursing, diversity and inclusion. The Board is responsible for setting the strategic direction of the charity and the Chair is responsible for operational matters. The Board meets five times per year, with a focus on monitoring outcomes and strategic decision-making. The operational activities are delegated to the Chief Executive. The support given by the members of the Board has been invaluable and is very much appreciated.
The trustees, who were also the directors for the purposes of company law, who served during the year were:
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.
CHU employs a small team of staff to deliver its services supported by a team of skilled and committed volunteers. The Board of Trustees very much appreciates the tremendous work done by our staff and volunteers.
CHU's member groups are:
Barth Syndrome Trust
Cardiomyopathy UK
Children’s Heart Association
Children’s Heart Unit Fund
CRY (Cardiac Risk in the Young)
Downs Heart Group
Heart Children Ireland
Heartbeat Northern Ireland
Heartline Families
Lagans Foundation
Max Appeal
The Brompton Fountain
The Scottish Association for Children with Heart Disorders
Young at Heart
The trustees' report was approved by the Board of Trustees.
The trustees, who are also the directors of Children's Hearts UK 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 charitable company 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 charitable company 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 charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I report to the trustees on my examination of the financial statements of Children's Hearts UK (the charitable company) for the year ended 31 May 2024.
As the trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
Children's Hearts UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 24-28 Brockenhurst Road, Ascot, Berkshire, SL5 9DL.
The financial statements have been prepared in accordance with the charitable company'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 charitable company is a Public Benefit Entity as defined by FRS 102.
The charitable company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £1.
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 charitable company has adequate resources to continue in operational existence for the foreseeable future. The trustees have considered relevant information, including the impact of subsequent events, in making their assessment.
Based on these assessments and having regard to the resources available to the entity, the trustees have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis 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 or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company 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.
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are located on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use.
Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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 charitable company 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).
Cash and cash equivalents include cash in hand and deposits held at call with banks.
The charitable company 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 charitable company's balance sheet when the charitable company 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 charitable company’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charitable company 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.
Grants
Direct costs
Governance costs include payments to the Independent Examiner of £2,982 (2023: £2,712) for the preparation and independent examination of the financial statements.
None of the trustees (or any persons connected with them) received any remuneration or benefits during the year. 7 of the trustees (2023: 5) were reimbursed travel expenses totaling £1,803 (2023: £3,393).
The average monthly number of employees during the year was:
The aggregate remuneration payable to key management personnel during the year was £58,291 (2023: £42,224).
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
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 Sweetpea Charitable Trust
This grant was received to support the 'Molly's Dollies' project. The balance brought forward on this fund has been transferred to the 'Molly's Dollies' fund during the year.
The Mickleham Trust
This grant was received to fund a Norfolk-based activity day. The balance brought forward on this fund has been transferred to the 'Activity Days' fund during the year.
Felicity Wilde Trust
This grant was received to fund the purchase of INR machines. The balance brought forward on this fund has been transferred to the 'INR Machines' fund during the year.
Boost Charitable Trust
This grant was received to fund a pilot exercise programme activity day. The balance brought forward on this fund has been transferred to the 'Activity Days' fund during the year.
The Whitehill Chase Foundation
This grant was received to fund the purchase of INR machines. The balance brought forward on this fund has been transferred to the 'INR Machines' fund during the year.
Birmingham Hospital Saturday Fund
This grant was received to fund the purchase of INR machines. The balance brought forward on this fund has been transferred to the 'INR Machines' fund during the year.
British Humane Association
This grant was received to fund the purchase of INR machines. The balance brought forward on this fund has been transferred to the 'INR Machines' fund during the year.
INR Machines
This fund is restricted for the purpose of funding the purchase of INR machines.
Activity Days
This fund is restricted for the purpose of funding activity days. There has been a transfer of £525 from this fund to unrestricted funds; this related to expenditure that was incurred in the prior year relating to an activity day, which was included within unrestricted expenditure, and has therefore been reclassified to offset restricted income reserves.
Molly's Dollies
This fund is restricted for the purpose of supporting the 'Molly's Dollies' project.
Bereavement Page
This fund is restricted for the purpose of developing an online dedication page. This initiative was to create a shared safe space for loved ones to connect, share stories, and pay tribute to children who have lost their battles with heart conditions.
VR Headsets
This fund is restricted for the purpose of funding the purchase of VR headsets for Level 1 Cardiac Units.
Coffee & Questions
This fund is restricted for the purpose of supporting the 'Coffee & Questions' project.
Information / Books
This fund is restricted for the purpose of funding the creation and publication of information packs and books for families and cardiac wards.
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
There were no disclosable related party transactions during the year (2023 - none).