ANNUAL REPORT for the Period Ended 31St March 2018
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ANNUAL REPORT For the period ended 31st March 2018 STREET CHILD COMPANY LIMITED BY GUARANTEE ANNUAL REPORT st For the period ended 31 March 2018 ChArity ReGistrAtion No. 1128536 CompAny ReGistrAtion No. 06749574 (EnGlAnd And WAles) STREET CHILD COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION Trustees A Scott-Barrett Rev D Lloyd E Creasy P Garratt J Axon (Appointed 1 April 2018) B Hibon (Appointed 1 April 2018) N Mason (Appointed 17 June 2017) C Maxey J Streets (Appointed 1 April 2018) G Tetlow (Appointed 15 January 2018) A Wallersteiner (Appointed 1 April 2018) Charity number 1128536 Company number 06749574 Registered office 206-208 Stewart's Road London SW8 4UB Auditor Arram Berlyn Gardner LLP 30 City Road London EC1Y 2AB STREET CHILD COMPANY LIMITED BY GUARANTEE CONTENTS Page Trustees' report 1 - 46 Independent auditor's report 47 - 49 Statement of financial activities 50 Statement of financial position 51 - 52 Statement of cash flows 53 Notes to the accounts 54 - 64 STREET CHILD COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2018 The Trustees present their report and accounts for the year ended 31 March 2018. The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's Memorandum and Articles of Association dated 14 November 2008 , 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) Objectives and activities The charity seeks to support high quality initiatives to improve the lives of some of the poorest and most vulnerable children in the world, in particular their ability to sustainably access a quality basic education. The charity achieves this objective through direct implementation, advice, support and advocacy. The charity works closely with a range of International, Governmental, Non-Governmental and community-based organisations to achieve its goals. There is no private benefit resulting from any of the charity’s activities. Further details on all the charity’s key activities can be found in the Trustee Annual Review . Financial review Total income for the year increased to £4,049,316 (2017 £ 3,854,314 ) . With a balance of unrestricted reserves of £644,921 (2017 £192,468) and restricted reserves £640,328 (2017 £283,110) 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 at least three month’s core expenditure costs and not more than six months. 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. This level of reserves has not yet been achieved but it remains a key objective of the charity to achieve this level and then ensure that it is maintained Investment Policy Over and above achieving and maintaining the targeted levels of reserves, the charity’s financial policy is to expend all funds secured either directly on charitable activities or on fundraising initiatives designed to increase income in subsequent periods. All funds are held in appropriate interest-bearing accounts. Risk Management The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. A risk register and a risk management policy is in place. - 1 - STREET CHILD COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2018 Plans for the Future The charity exists to make the largest difference possible in the lives, and in particular to the educational prospects, of the world’s poorest and most marginalized children. The charity has made remarkable gains since its foundation in 2008 with one project in Sierra Leone for 100 street-connected children to its present point, nine years later, where it can count over 2 00,000 children who have significantly benefitted from the charity’s work, in four countries. Motivated daily by the grim fact that globally 60 million children of primary- school going age alone are out of school, the charity plans to continue the growth of its impact as quickly as funds and sound planning allow. Specifically, the charity foresees no circumstances in which it will not actively seek to grow its work in the long- term in Sierra Leone, the charity’s first project country. Likewise, in the short to medium term, we only foresee the charity seeking to deepen its impact in the other three countries it presently operates in: Liberia, Nepal and Nigeria. In 2017/18 the charity was excited to have opened the door, through organic growth, to work in Uganda, Bangladesh and Sri Lanka – as well as in DR Congo, Afghanistan and Burundi, through Children in Crisis becoming part of Street Child (see below). The charity’s short-term priorities are very much on consolidating and growing its impact in these ten countries. An interest in expanding Street Child’s impact into new locations remains however, if the right circumstances emerge: based on the charity’s potential impact in a new location; and the charity’s ability to fund a new initiative in a way which did not detract from existing country programmes (i.e. the ability to generate ‘fresh funding’ for a new programme). The ability of the charity to achieve its plans depend on the continued growth of strong fundraising and project delivery teams – and the maintenance, and development, of existing supporter and donor relationships and, especially if growth is to be achieved, the nurturing of new relationships, nationally and internationally. Whilst the charity is delighted to be increasingly successful at raising substantial programme funds come from institutional sources, in particular DFID and UN funds, the critical role of trusts, foundations and philanthropy cannot be underestimated – these sources underpin the core of the charity; and provide scope to innovate, establish proof points, conduct research, respond fast and match-fund major institutional grants. The charity is fortunate to possess an excellent senior management team, many of whom, uniquely, have worked with the charity since its early days and have been critical to its development to this point and are personally invested in its future success. With this excellent foundation and an open ethos that embraces hard-workers and high-performers, however experienced or inexperienced they may be, we believe the charity, with the vital support of donors and partners, has the potential to continue to grow and help more and more of the world’s neediest children. Structure, governance and management The charity is a company limited by guarantee and is governed by the governing document; the Memorandum and Articles of Association dated 14 November 2008 and amended by special resolution on 5 March 2009. 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: A Scott-Barrett Rev D Lloyd E Creasy J Britt-Green (Resigned 31 March 2018) M Northcroft (Resigned 15 May 2017) P Garratt J Axon (Appointed 1 April 2018) B Hibon (Appointed 1 April 2018) N Mason (Appointed 17 June 2017) C Maxey J Streets (Appointed 1 April 2018) G Tetlow (Appointed 15 January 2018) A Wallersteiner (Appointed 1 April 2018) - 2 - STREET CHILD COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2018 Recruitment and Appointment of trustees The appointment of the Trustees is carried out having regard to the needs of the organisation, the suitability and skill of the candidate and by interview of interested parties. Organisational Structure The organisation is managed by a Board of Trustees who delegate the day to day running of the charity to the Chief Executive Officer. Induction and training of new trustees New trustees are given the required training to enable them to undertake their roles and to ensure that they act in the best interests of the charity. Fundraising Standards Street Child employs a team a professional fundraisers, all of whom follow the best practice and legal requirements set our in The Code of Fundraising Practice, as well as those required under charity law and wider law. There were no reported failure to comply with The Code of Fundraising Practice. Outside of the team of professional fundraisers, Street Child’s volunteer fundraisers were all provided with relevant training or guidance notes including where relevant links to the necessary legal and best practices from the Institute of Fundraising. Agreed fundraising targets were monitored through reports provided by our online giving platforms and through regular communication and mentoring of volunteer fundraisers. Our commercial partners were all subject to agreeing a Commercial Participators Agreement that set out the terms of the partnership including, but not limited to, payment plans, use of brand, inclusions/exclusions of the partnership and use of the agreed fundraising statement. Our data protection statement and marketing opt-in’s were reviewed and updated to ensure only appropriate and relevant communications were sent to those supporters who had requested said information. Our electronic communications platform also offers the opportunity to opt out at every stage of mass communications. Street Child’s policy has never been to buy or sell supporter data or mailing lists.