THE_THEODORA_CHILDREN'S_C - Accounts
THE_THEODORA_CHILDREN'S_C - Accounts
Our mission to improve life for sick and disabled children, and their families, has been at the centre of our work for 28 years, and, despite the continuing impact of the 2020 pandemic, we achieved a great deal in 2022.
We started the year with Covid restrictions still in place. However, we were able to slowly begin returning with Giggle Doctor hospital visits for sick and vulnerable children. We remained vigilant of the need to make sure our visits, adapted where necessary, were safe for everyone, including our Giggle Doctors. This careful approach meant that we returned to our partnerships with NHS teams in 10 hospitals by the end of the year.
The end of 2022 saw a new monarch, a different government and the impact of a severe economic downturn and cost of living crisis for the UK which affected our ability to raise funds.
However, we are pleased with the financial performance for this year, achieved despite the continued operational challenges of restarting the Giggle Doctor programme and supporting Giggle Doctors to return after the 2-year gap. Everyone was delighted and happy to welcome the Giggle Doctors back on the wards to brighten their day.
Towards the end of the year, we were joined by 2 new Trustees, Helen Fentimen, and Janet Lee. Both Trustees bring decades of experience and knowledge of the NHS, and children’s services, to support our charity and the children and families we serve, and we welcome them to the Board. For 2023 we also welcomed back to the Board Sabine Notz Catsiapis who, along with Andre and Jan Poulie, was a founding member of the charity. We said goodbye to Arpad Busson after many years of support and send him thanks for his valued input.
Throughout the year the small Theodora office team, and Board of Trustees, have remained committed and creative and, along with our professional Giggle Doctors, have enabled us to meet our mission to reach the many children who needed us. My thanks go to all of them for their commitment and efforts to our work.
Of course, this year especially, none of this would be possible without our loyal supporters. My greatest thanks to the many people, and organisations, who have supported us through this transitional year. You helped to touch the life of a child and family when they needed it the most with the special play, fun and laughter that only a Giggle Doctor can bring.
I send you all my heartful gratitude for your support and generosity to our wonderful charity.
The trustees present their annual report and financial statements for the year ended 31 December 2022.
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 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).
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, carers, and family for the first time.
Our mission is to help children living with illness, disability and serious health challenges feel better using the proven power of a visit from the Theodora Giggle Doctors. We know from parents the difference a visit can make to a child to help them cope with feeling isolated and anxious, especially for those children with mental health anxiety and challenges.
The Giggle Doctors are professional artistic performers, highly trained by the charity to work in both the hospital and specialist care environments, and with children with disabilities. We know from impact reports that the Giggle Doctor programme improves children’s experience of hospital, reduces stress and anxiety, increases opportunities for play and improves wellbeing.
ACHIEVEMENTS AND PERFORMANCE
The Board of Trustees recognises that it has been another eventful and challenging year for us all. The impact of COVID-19 has continued to be felt throughout much of the year, especially by sick children, young people, and families. Through our work with NHS hospitals, we know that the pandemic has presented continued uncertainty for children, hospitals, and clinical teams, around the country.
Combined with the continuing success of the Giggle Doctor Digital Visits Programme meant that in 2022 4,978 children were able to have fun and laughter shared with them wherever they were, be it hospital. or home.
Throughout 2022, our professional Giggle Doctors met a growing number of children, and young people, experiencing mental health difficulties in hospitals nationwide. We know from our work that a child’s stress and anxiety can worsen still further in hospital, and they are apart from their families, school, and friends.
In response to this, in 2023, our team of Giggle Doctors, will undertake specialist child mental health training, along with skills such as Attention Autism techniques through workshops delivered by the charity. This training will enable them to work with children and their families, alongside the NHS teams, to bring playful interactions that support their mental wellbeing.
While 2022 delivered a mixed scenario of uncertainty in many ways, we are very pleased with our achievements. We started the year with 6 NHS partners having Giggle Doctors returning in person and, as restrictions slowly lifted, we increased to 10 partners by the end of the year.
A visit from Giggle Doctors continues to be completely free of charge and parents, carers and the NHS pay nothing towards our costs.
As always, our fundraising and wider office team were flexible, diverse, and creative in response to the ever-changing challenges to raise funds. Being able to meet in person again meant that supporter events were possible, and we enjoyed talking with people about the work of the Giggle Doctors. Experiencing the UK economic uncertainty, our fundraising strategy has focused on re -starting and building relationships with our donors and supporters, as well as growing our on-line presence.
The passion of our supporters for the work we do and their commitment to our cause allows us to provide playful interactions, fun and giggles for children. We are very grateful to the individuals who give regularly, and at our fundraising events, the companies and Trusts who support our projects, and those who generously support us in other ways.
At the end of 2022 we began the big task of moving the office and team to a new location. The old office had served us well for nearly 20 years, but the Board recognised that particularly with changes in work practices, and mindful of the impact for everyone of the recent lockdown restrictions, new surroundings were needed. From January 2023 we will still be in London but in a smaller space enabling us to achieve value for money, and improved working conditions.
We look forward to welcoming visitors to our new office in 2023, and to a busy and exciting year.
FINANCIAL REVIEW
The attached financial statements summarise The Theodora Children’s Charity transactions from January to December 2022.
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 2022.
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 2022, the charity had what the Charity Commission defines as free reserves of £134,713 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
The Trustees believe the charity has no going concern issues and will continue to evaluate the situation on an ongoing basis.
Small Company Provision
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.
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 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 (FRS102)" (effective 1 January 2019).
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
Trustees
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:
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 Trustees 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.
The fundraising and Communications Manager oversees our fundraising campaigns and communications, along with a Senior Fundraiser and A freelance Trusts fundraiser. The Programme Manager leads on the Giggle Doctor Programme, with the Programme and Quality coordinator. The Senior Finance Officer manages all income reporting, management accounts and statutory reporting.
PLANS FOR THE FUTURE
Fundraising
In 2023, 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.
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 2022.
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.
INCLUDING INCOME AND EXPENDITURE ACCOUNT
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The Theodora Children's Charity is a private company limited by guarantee incorporated in England and Wales. The registered office is Spaces Suite 212, 70 White Lion Street, London, N1 9PP.
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
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 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).
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
Giggle Doctor support costs
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
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 £54,884 (2021: £54,538).
1 January 2021
1 January 2022
31 December 2022
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 £56,501 (2021: £92,993) from Theodora Fondation Switzerland. At the year end Theodora owed Theodora Fondation £12,057. 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 £5,900 (2021: £5,460) from trustees and pro-bono professional services from D Wise, a trustee.
The company is limited by guarantee and has no share capital. The liability of its members is limited to £1 per member.