THE_THEODORA_CHILDREN'S_C - Accounts

Theodora Children's Charity is a national children’s charity that works to reduce the impact of illness, whatever its severity, of hospital admissions for children and young people through our unique Giggle Doctor Programme. Research shows that hospitals can be a frightening and lonely experience for children. It is especially distressing for younger children who may be separated from their parents for the first time.

Theodora Giggle Doctors are professional artistic performers, highly trained by the charity to work in both the hospital and hospice environments, and with children with disabilities. The Giggle Doctor programme improves children’s experience of hospital, reduces stress and anxiety, increases opportunities for play and improves wellbeing.

It was a challenging year for Theodora Children’s Charity, and UK charities in general. We recognised that all of our work happened against a backdrop of national economic pressures, political uncertainty caused by Brexit and an increasingly digital world. The increasing demand for our activities, and its obvious impact on our programme costs, continued to put pressure on the charity to provide our vital service for sick children. As we anticipated, raising funds was our key focus and we looked to diversify our income streams and follow up on opportunities to build strong relationships with supporters. We also ensured our Giggle Doctors and our staff were supported, and that the Programme continued to be not only of the highest quality, but that we could evidence that quality.

There’s no doubt that a highlight of 2019 was celebrating the 25th Anniversary of the Theodora Children’s Charity providing smiles, fun and laughter to children in hospitals, hospices and specialist children’s centre’s throughout England. We have built on our growth since the first Giggle Doctor visit to Great Ormond Street Childrens Hospital in April 1994, and 25 years on from that first visit the charity is supporting more children and families than ever before. We have enlarged our geographical reach, more than doubled our number of Giggle Doctors and significantly increased the opportunity for visits for many more children.

During the year, we welcomed Ken Robertshaw to the Board of Trustees. Ken, along with our 6 other Trustees, bring to the Board a wide range of skills and experience to help us meet the opportunities and challenges ahead.

We invested resources in the training and development of 10 new Giggle Doctors, as well as building up our Fundraising and Programme team. Both of these will enable us to go forward to achieve our potential as a unique charity with a national programme which delivers a positive impact on the lives of thousands of children.

At the start of 2020, having crossed the important landmark of our 25th Anniversary, we have enlarged our team of Giggle Doctors, and staff team, to set the stage to embark on our next period of growth. As the year started we began to hear about the threat of a Coronavirus pandemic and we put our contingency plan in place. The full impact of the pandemic is not yet clear. We feel that our children and their families, and NHS teams, will need a Giggle Doctor visit more than ever and we will do our very best to keep sharing our special fun and laughter with them.

After 25 years of activity, our charity in the UK is well established, the quality of it's service is recognised and much appreciated. I have full confidence that with our very capable and motivated Theodora UK team there will be an increased level of income, a process which was already obvious early in 2020, before the pandemic outbreak.

As Founder and President of the Board of Theodora Children’s Foundation based in Switzerland I am happy to confirm that Theodora Children’s Fondation statutes authorise the charity to use it's funds to support similar activities abroad, when they are undertaken by a sister charity like Theodora Children’s Charity (UK). In addition, The Board of Theodora Children’s Fondation has accepted in its 2020 budget financial support for it's sister charity, Theodora UK with a donation of CHF 60,000. In addition, an exceptional Covid 19 fund of €70,000 is available should the situation not improve.

I send you all my heartful gratitude for your support and generosity to our wonderful charity.

André Poulie,

Founder and Chairman of the Board of Trustees of the Theodora Children’s Charity

OBJECTIVES AND ACTIVITIES

Objectives

A stay in hospital can be an unsettling and daunting time for any of us. For a child however, the full extent of what is happening to them and why, is not always fully understood. They find themselves in a new environment full of different people, strange equipment and tests and procedures that may often be painful or uncomfortable. The usual routine of school, friends and play can be disrupted as the illness becomes the focus. Many of the children we visit spend days and weeks at a time away from home. On a dialysis ward for example, children can be there three times a week for most of their childhood, and on an oncology ward, children may be in and out of hospital for many years.

The Theodora Children's Charity improves children’s experience of being in hospital through visits from our professional performers, called Giggle Doctors. They increase opportunities for play, reduce distress and anxiety and give children back a little control. They do this through improvised, therapeutic play which puts the child at the center of the interaction and by using skills including music, magic, storytelling, comedy and mime. During each four-hour visit, the Giggle Doctors see between 22 and 26 children, in addition to parents and siblings who are with the child at their bedside. The children are not just spectators but participants in the experience and we aim to visit every child who asks to meet a Giggle Doctor. We know that a Giggle Doctors visit:

• Improve children’s experience of the healthcare environment

• Increase opportunities for play

• Reduce distress and anxiety to support recovery

The strategies employed to assist the charity to meet this objective include the following:

• Collaboration with hospital staff and supporting their work with children and families

• Utilising the Giggle Doctor training programme which works in partnership with hospital staff

• For this training to be recognised by hospitals for its professional standards and specialist role

To meet our criteria to be a Giggle Doctor you must possess the ability to listen, be sensitive and be professional at all times. Potential candidates are initially trained over a twelve-month period. Once assessed, they are invited to become Junior Giggle Doctors and attend further training for another year before graduating to be a fully-fledged Giggle Doctor. The charity funds psychological supervision sessions and these sessions are vital to support the Giggle Doctors to deal with the emotional impact and stress that confronts them when working with sick children.

Activities

In 2019 our team of 24 Giggle Doctors and 10 Trainee Giggle Doctors visited children in the following 26 hospitals, hospices and specialist care centers:

• Addenbrooke's Hospital, Cambridge

• Birmingham Children’s Hospital

• Bradford Royal Infirmary

• Broomfield Hospital, Essex

• Chelsea & Westminster Hospital, London

• Demelza Children’s Hospice, London

• Evelina London Children's Hospital

• Great Ormond Street Hospital, London

• Haven House Children’s Hospice, Essex

• Leeds General Infirmary

• North Manchester General Hospital

• Nottingham University Hospitals NHS Trust

• Richard House Children’s Hospice, London

• Royal Alexandra Hospital for Sick Children, Brighton

• Royal Berkshire Hospital, Reading

• Royal Oldham Hospital, Manchester

• Royal Manchester Children's Hospital

• Royal Marsden Hospital, Sutton, Surrey

• Royal United Hospital, Bath

• Sheffield Children's Hospital

• Southampton General Hospital

• St George’s Hospital, London

• St. Mary’s Hospital, London

• The Children's Trust, Tadworth, Surrey

• University Hospital Lewisham, London

• Young Epilepsy, Lingfield, Surrey

FINANCIAL REVIEW

The attached financial statements summarise The Theodora Children’s Charity transactions from January to December 2019.

Funds

The Theodora Children's Charity depends solely on donations and grants from individuals, trusts, hospital charities, schools, clubs and companies. Funds available are sufficient to permit the Theodora Children's Charity to carry on operating in the medium term, thanks to the continued support of its donors.

Donations in Kind

The charity did not receive any gifts in kind in lieu of goods in 2019.

Investment Policy

Under the Memorandum and Articles of Association, the charity has the power to make investments. The Trustees currently hold all of the charity's reserves with the Royal Bank of Scotland.

Reserves Policy

As at 31st December 2019, the charity had what the Charity Commission defines as free reserves of £23,497 to provide for the Charity’s working capital needs. Reserves should provide a sensible contingency against any unexpected shortfall in fundraising income, emergency expenditure or seed money for new projects. The reserves policy to provide security is to hold between three and six months (and no less than three months) of running costs which will ensure the uninterrupted services and delivery of the Charity’s objectives. The Trustees understand that the current level of reserves is lower than they would like but are taking steps to improve this as well as keeping this under review to ensure they are adequate for future operational needs.

Going Concern

Post year end, due to the impact of COVID 19 there has been a significant impact on the activities of the charity. In response, the Board of Trustees are committed to supporting the charity and are of the opinion that The Theodora Children’s Charity has sufficient resources to support the current level of expenditure and continue its operational existence for the foreseeable future. The Trustees believe the charity has no going concern issues and will continue to evaluate the situation on an ongoing basis. A significant amount of restricted income has already been raised for 2020 and there will also be focus on raising more unrestricted income to help build up the reserves of the charity.

Small Company Provision

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Theodora Children's Charity is a charitable company limited by guarantee (no. 4535844), incorporated on 16th September 2002 and registered as a charity on 7th November 2002. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and Appointment of Management Committee

The directors of the company are also charity trustees for the purpose of charity law and under the company's Articles are known as members of the Management Committee. The Management Committee seeks to ensure that the trustee body is experienced in both the business and the charitable sectors, having long-term experience in their own charities and businesses. The trustees of the charity are unpaid volunteers. We are very thankful for their support. New Board members are nominated by existing Trustees and the Board votes to decide if they are to be invited to join. A majority is required, including a vote from the Chairman.

Trustee Induction

New Trustees are given a New Trustee Information Pack which contains information relevant to the Theodora Children’s Charity. In addition, a copy of the annual accounts and a copy of the memorandum and articles of association for reference are also provided, along with Charity Commission guidance relating to the role and responsibilities of being a Trustee.

Risk Management

The Board of Directors actively review the major risks which the charitable company faces and a risk register is reviewed every year. Due to the current economic situation we believe that maintaining reserves at the current levels, combined with an annual review of the internal controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The Board has also examined other operational and business risks faced by the charitable company and confirm that they have established systems to mitigate these risks.

The Board of Directors collaborate closely with the staff of The Theodora Children's Charity to provide support in the following areas of expertise: Communication, Fundraising, Human Resources, Legal and Giggle Doctor relations.

Organisational Structure

The Board of Trustees discusses and approves the annual budget and approves the accounts of the charitable company. Further to supporting the charity with their expertise, the Board of Theodora Children’s Charity establishes the general strategy for the charity. It delegates to the Chief Executive to supervise the management of Theodora Children's Charity on a day-to-day basis and to implement Board decisions and strategies.

A Fundraising and Communications Manager oversees our fundraising programme and communications, supported by a Fundraising and Communications Co-ordinator and a Corporate Partnerships Officer. A Programme Manager manages the Giggle Doctor programme. A Finance and Administration Officer administers all income processing and accounting. A qualified Accountant supports this post holder on a monthly basis.

Fundraising

In 2020, the charity will continue to focus on fundraising from Companies, Trusts and individuals. Focus will be given to developing new relationships while also maintaining and growing existing ones. There will be critical focus on raising a diversified combination of both restricted and unrestricted income.

Giggle Doctor Programme

The 10 Junior Doctor trainees will continue with their assisted hospital visits and will receive support from our Artistic Coordinators. Throughout 2020 we will look to develop new ways to collect a wide variety of feedback and improve our method of impact measurement. In addition to the online surveys we plan to conduct more case study interviews with parents to gain their feedback on the programme and explore ways we receive feedback from children directly.

The Trustees (who are also directors of The Theodora Children's Charity for the purposes 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they 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 period. 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 judgments and accounting estimates that are reasonable and prudent;

• 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 are sufficient to show and explain the charitable company's transactions and 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.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

• so far as that Trustee is aware, there is no relevant audit information of which the charitable company's auditors are unaware, and

that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.

The trustees' report was approved by the Board of Trustees.

Opinion

We have audited the financial statements of The Theodora Children's Charity (the ‘charity’) for the year ended 31 December 2019 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the charitable company's affairs as at 31 December 2019 and of its incoming resources and application of resources, for the year then ended;

have been prepared in accordance with the requirements of the Companies Act 2006.

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.

the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustees' report; or

sufficient accounting records have not been kept; or

the financial statements are not in agreement with the accounting records; or

we have not received all the information and explanations we require for our audit.

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.

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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 charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2019, although an audit has been carried out under section 144 of the Charities Act 2011.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The Theodora Children's Charity is a private company limited by guarantee incorporated in England and Wales. The registered office is 40 Pentonville Road, London, N1 9HF.

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Expenditure is recognised 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.

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 net income/(expenditure) for the year.

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).

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including 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.

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.

Fundraising

Commissions

Consultancy

Giggle Doctor fees

Materials for Giggle Doctor

Giggle Doctor travel

Giggle Doctor training scheme

Rent and service

Telephone and Internet

Legal & Professional fees

Office costs

Rates and water

Repairs and Maintenance

Insurance

Travel costs

Bank charges

Computer and website

Accountancy fees

The average monthly number of employees during the year was:

No employee received remuneration amounting to more than £60,000 in either year

The key management personnel of the charity comprise the Trustees and the Chief Executive. The total employee benefits of the key management personnel of the Charity were £42,334 (2018: £53,000).

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The charity received donations of £13,147 (2018: £25,000) from Theodora Fondation Switzerland. Theodora Switzerland was founded in Switzerland by Jan and Andre Poulie in 1993 in memory of their mother, Theodora. The work of The Theodora Children's Charity, the UK charity, is inspired by the philosophy shared by this international network of Giggle Doctor programs.

The charity also received donations of £8,000 (2018: £Nil) from trustees.

Creditors includes £7,505 (2018: £4,098) due to Theodora Fondation Switzerland.

The company is limited by guarantee and has no share capital. The liability of its members is limited to £1 per member.

The charity had no debt during the year.