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.

At the beginning of 2020 our strategy recognised that our work would be happening against a backdrop of Brexit, economic uncertainty and an increasingly digital world. No one could have predicted that in March 2020 Covid-19 would raise uncertainty to a much higher level. Despite the challenges Theodora Children’s Charity has had a positive year.

Within a few months of the start of the Pandemic we developed a new strategy and new Digital Giggle Doctor programme for the uncertain year ahead. Our virtual Giggle Doctor visits, Giggle-a-Grams and Yap book stories enabled us to continue to bring Giggle Doctor joy to 10,445 children. The launch of our digital programme gave clinical settings access to virtual Giggle Doctor experiences for their patients, and our visits worked very successfully online. This digital programme allowed us to continue reaching children in our NHS partner hospitals, as well as in new clinical settings and children at home receiving or recovering from treatment.

Throughout the year we reduced expenditure where possible, while changing how we delivered our programme. With good management controls and refined plans in place we are certain that we go forward into 2021 and continue, with your support, to bring our programme to children who need Giggle Doctor fun.

I want to take this opportunity to acknowledge the creative and positive spirit of our team, led by CEO Judi Byrne. Our charity office team and Board of Trustees have demonstrated resilience and flexibility in the most challenging circumstances. Their positive attitude and hard work allowed our charity to keep the Giggle Doctor programme continuing to support children and families despite the Pandemic. Overcoming every hurdle, they have managed to reach out to thousands of children, parents and carer’s. Their work and commitment are outstanding and, along with our Board members, makes me very proud of the whole team.

We are confident that whatever the future holds we will be able to find innovative and sustainable ways to bring a child fun, joy and laughter at any time. Our NHS hospital partners tell us that having free access to our virtual programme and the gallery of You Tube Giggle Doctors are a great resource for interactive play with children. Parents say that, now more than ever, still being able to see and play on line with our Giggle Doctors really matters to the wellbeing of their child.

Thank you from everyone at Theodora Children’s’ Charity for being with us through 2020. You helped touch the life of a child and their family when they needed us the most.

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

With All Best Wishes

André Poulie,

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

FINANCIAL REVIEW

The attached financial statements summarise The Theodora Children’s Charity transactions from January to December 2020.

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 2020.

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 2020, the charity had what the Charity Commission defines as free reserves of £23,839 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

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 2021 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.

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.

PLANS FOR THE FUTURE

Fundraising

In 2021, 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 2021 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' report was approved by the Board of Trustees.

I report to the trustees on my examination of the financial statements of The Theodora Children's Charity (the charity) for the year ended 31 December 2020.

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

the financial statements do not accord with those records; or

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

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 2020.

The director acknowledges his 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.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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.

Income 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.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Grants are included in the statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of meeting any performance-related conditions and there is not unconditional entitlement to the income, its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.

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.

Government grants

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 (2019: £42,334).

During the year under review, company received £27,162 from the Government under the Corona Virus Job Retention Scheme which has been shown under grants in the financial statements.

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 £77,993 (2019: £13,147) 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 £10,000 (2019: £8,000) from trustees.

Creditors includes £Nil (2019: £7,505) 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.