ANnual RePOrt AcCouNTS - railway children · PDF file · 2014-12-11ANnual RePOrt &...

ANnual RePOrt& AcCouNTS2013/

2014

Railway Children Trading LtdCompany Number: 6533182

DirectorsRupert Brennan BrownChristopher CornthwaiteMichael Holden

Railway Children Africa LtdCompany number: 7769NGO Compliance number: 1381

DirectorsPeter AldridgeJohn KalageTerina KeeneJudith ListerClement MashambaMark Nyungula

Railway ChildrenRegistered Charity 1058991

Registered Office1 The Commons, SandbachCheshire CW11 1EG

Other OfficeFlat No.2, 1st Floor B Wing,Bhagyawan ResidencyPlot 5, Sant Turkaram RoadMulund (East)Mumbai 400 081

Directors and Trustees Haydn Abbott, ChairmanRosemary Day, TreasurerElizabeth Rachel BennettHenry ClarkeDyan CrowtherGopal DutiaTimothy HartleyMichael HoldenJudith ListerTrevor WinterChristian Wolmar (retired 05/12/13)Arun Muttreja (appointed 05/12/13) Andrew Trotter (appointed 05/12/13)

Chief Executive Terina Keene

Company Secretary Ashurst LLPBroadwalk House5 Appold StreetLondon EC2A 2HA

BankRoyal Bank of Scotland12 Pillory StreetNantwich CW5 5BE

AuditorsSayer Vincent8 Angel Gate, City RoadLondon EC1V 2SJ

SolicitorsStone King16 St John’s LaneLondon EC1M 4BS

REFERENCE & ADMINISTRATIVE INFORMATION

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04 Chairman’s Statement06 overview 2013/1408 Introduction10 Our Work—East Africa16 Our Work—India22 Our Work—UK28 Our Work—Communications & Influencing30 Financial Results32 Structure, Governance & Management34 Statement of Trustees’ Responsibilities35 Independent Auditor’s Report36 Statement of Financial Activities37 Consolidated Balance Sheet38 Notes to the Financial Statements

CONTENTS

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I am delighted to present you with the trustee report and accounts for 2013/14. This year has seen some impressive results as our impact and influence continues to grow, enabling us to reach many more children living on the streets.

Fundraising efforts have realised over £3m of funds, with annual events such as the Three Peaks Challenge and The Railway Ball breaking all records. We continue to receive a tremendous amount of goodwill and support from companies and individuals in the rail industry who truly believe in the work we do and want to join us in making the world a better place for vulnerable children. My thanks go to everyone who has contributed over the last year including our dedicated staff and volunteers who give their all to making the charity a success.

Our work in India faces many challenges, the significant numbers of children fighting to survive on the streets being perhaps the biggest. With millions of children in need of protection we need to activate and leverage existing support structures to create widespread impact.

I was encouraged during my visit to the region in November to witness the achievements we have made in training and supporting officers from the Railway Protection Force who are deployed at every station across the country. Working alongside local charities they are ensuring that children receive the ongoing help and protection they need. Our conservative estimate is that each trained officer will support five children a month, with over 1,200 staff trained during 2013/14 our impact is reaching far and beyond the children we could help alone.

In East Africa we continue to focus our work on intensive support for children and families suffering from high levels of violence. One of the realities of working in developing countries is facing significant levels of corruption, alongside endeavouring to deliver transformational work. Over the last year we have expanded our operational model to include a direct delivery project in Mwanza, Tanzania. This opportunity will enable us to compare outputs and impact to our existing partnership model, enabling us in the future to deliver results however difficult the context is we operate in.

Here in the UK we have been exploring the potential of our Reach model to accept referrals from transport terminals, through the development of a pilot in Euston and Kings Cross, London. The need to explore this option came after contact from the British Transport Police who were seeking our advice on a number of runaway children arriving into the capital. The pilot is now operational and will run until the end of 2014, when we will use the data to develop appropriate interventions.

I finish this introduction by thanking you for your interest and support of Railway Children. It is my continuing belief that together we make a very real and lasting change in the lives of some of the world’s most vulnerable children.

Haydn Abbott,Chairman.

CHAIRMAN’SSTATEMENT

WE BELIEVE IN A WORLD WHERE NO CHILD EVER HAS TO LIVE ON THE STREETS

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number ofuk children engaged through preventative education

number ofyoung People supported through our outreach activities

number of children reintegrated with their families

number of vulnerable children provided safe places to stay

48, 454

13, 086

4, 7

89

555

OVERVIEW2013/14

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How our money is spent

Where our money comes from

● Outreach & preventative education £806k

● Reintegration £749k● Fundraising £700k● Shelter £612k● Influencing £178k● Governance £87k

● Corporates £1,163k● Individuals £955k● Grants £860k● Interest £30k

OUR CHARITABLE SPEND HAS INCREASED BY 15% ON THE PREVIOUS FINANCIAL YEAR. 74.9P IN EVERY POUND WAS SPENT ON CHARITABLE WORK, 22.3P WAS SPENT ON FUNDRAISING AND 2.8P ON GOVERNANCE.

Every £1 spent on Fundraising raised £4.30

to support our future work.

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Railway Children was founded in 1995 with one primary objective: ‘The relief of children and young persons under 25 years of age who are in conditions of need, hardship or distress, anywhere in the world and in particular those living on the streets’.

PRINCIPAL ACTIVITIES

In achieving our aims we focus all of our activity on our three stage change agenda. We recognise that to create, enable and sustain change we need to balance activities around:

1. ensuring the needs of children are met;2. ensuring communities work to protect children;

and3. ensuring governments include the needs of our

beneficiaries in both their policies and budgets.

By working at all three levels we ensure lasting change, both in the lives of children currently surviving on the streets and those currently at home but living with neglect, violence and/or abuse where the streets might become their only survival option.

Our activities at stage one of our change agenda are primarily delivered in partnership with grass roots organisations. This method of working ensures contextual understanding of children’s needs, cost effectiveness and a greater ability to influence and mobilise stakeholders and communities.

AIMS & OBJECTIVES

Our work aims to create and enable sustainable change in the lives of individual children, communities and in the wider policy and practice that affects all children living alone on the streets.

Over the years our pioneering work has benefitted hundreds of thousands of children and young people living alone and at risk on the streets.

PUBLIC BENEFIT

The Trustees have considered the Charity Commission guidance on public benefit in deciding what activities the Charity should undertake. This report contains an explanation of the significant activities undertaken during the year in order to carry out the charity’s aims for the public benefit and also the achievements measured against the objectives set by the Trustees.

introduction

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EASTAFRICA

impact:

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2,717 children and youth contacted through street based outreach work, including 40 associations in Nairobi, Kitale and Mwanza each with an average of 20 youth. 495 children have accessed shelter facilities, receiving food, medical services and opportunities for family reunification. 476 children accessing shelter facilities have been successfully reunified with their families. 170 families engaged in family therapy to build relationships within the family. 118 families engaged in Bio‑Intensive Agriculture and small businesses.

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aim 01.Enable effective contact, support and protection for children on the streets, ensuring; contact with children in Mwanza is achieved within two days of their arrival on the streets; 80% of children contacted feel they can access a safe space; and children have a safe and trusting relationship with a key worker.

AchievedThe December 2013 headcount exercise in Mwanza found at least 1,526 street connected children and young people in the city. 390 children were sleeping on the streets at night with no safe place to go. Currently we achieve contact within two days for only 12% of children on the streets. Of those contacted that enter in to the programme, 100% feel they can access a safe place and have a trusting relationship with a key worker, however, given the numbers that are not currently contacted, we are amending this objective for the coming year.

aim 02.Enable comprehensive family and community support structures for reintegrated children and for those at risk of going to the streets, ensuring; partners in Mwanza systematically ensure that at least 60% of children remain at home and in education 12 months after reintegration; that 50% of family work cases demonstrate that support is based on robust need assessments; and improved relationships are evident in 80% of the families involved in the Nairobi intensive family work.

AchievedIn Mwanza79 children were reintegrated from the streets and 80% of them are still at home and in school.

In Kitale159 children reintegrated and 64% of these children are still at home.

In NairobiIntensive family work improved relationships in all 12 pilot families and 10 have now graduated from the programme. These needs assessment formats have been introduced across the programme. These are now being applied for 100% of cases before children are reintegrated and any support interventions are given. Analysis as to how ‘robust’ these assessments are is made during ongoing partner support and review visits.

aim 03.Support the development of a co-ordinated city wide response between government departments, CSOs and key actors in Mwanza, ensuring; care plans for children are built across agencies to maximise impact and resources in more than 20% of cases; and all children in case loads have passed through appropriate government approval and referral channels.

AchievedCollaboration took place in 26% of cases in Mwanza in 13/14. One of the successes has been the development of StreetBorn, a project established as a result of collaboration between agencies across the city, which focuses on supporting pregnant girls on the streets or girls with young babies and utilises the services of one of our partners, local clinics and a local baby home. Co-ordinated actions remain part of our strategic focus and we are confident that progress can be made in the coming year increasing collaborative action to 40% of cases.

achievements:east africa

Aims for the future:east africa

aim 01.Enable effective contact, support and protection for children and youth on the streets, ensuring; we are able to increase our ability to contact children within two days of their arrival on the streets from 12% to 25% across the programme; we are also able to support 500 homeless youth to gain sustainable income.

aim 02.A programme is developed in Mwanza that builds on our child friendly station work in India, raising awareness of the issues children face in the streets with key stakeholders in the city and challenging negative perceptions of children alone and at risk on the streets. This will be expanded to other cities in the region beyond 2014/15.

aim 03.Enable comprehensive family and community support structures for reintegrated children and for those at risk of going to the streets, ensuring we can systematically establish that at least 80% of children remain at home and in education 12 months after reintegration; and that improved relationships are evident in 80% of any families involved in intensive support work.

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ADILISHA, MWANZA, TANZANIAFocus on street work and family reintegration. Street children projects have historically spent very little or no time with the families of children that are ready and willing to go home. In this project they are addressing that imbalance and provide more support in the reintegration process. During the year we worked with the organisation to ensure robust reporting and accountability. The Kivuko project developed and will be taking forward the activities as described below.

Total support 2013-14 £81,453

COET, MWANZA, TANZANIAThe programme provides the resources needed to explore possibilities of children returning home to their families and communities. Boys’ and girls’ centres are currently awaiting registration following relocation. Work in the community with families and self-help groups ensures children are able to remain safe in a family environment, and prevented from migrating to the streets.

Total support 2013-14 £108,962Unrestricted designated funds 2014-15 £9,000

TUPENDE WATOTO, MWANZA, TANZANIAEarly intervention for new children on the streets in Mwanza, providing shelter as they work to reintegrate them back home. They provide educational support to children at the centre and reintegrated children.


KIVUKO, MWANZA, TANZANIARailway Children’s first direct delivery project focuses on street work and family reintegration. Youths based on the street are supported to form ‘associations’ and develop life skills, including vocational and business skills to ensure improved opportunities and income generation.

Unrestricted designated funds 2014-15 £8,000

MKOMBOZI, TANZANIAProvide support and friendship to children on the streets of Arusha & Moshi assisting them in moving away from the streets, back home, into work or to Mkombozi’s long term home.


CHILD RESCUE KENYA, KITALE, KENYAProvide food, shelter, friendship & hope for children on the streets in Kitale, focusing on family repatriation, if appropriate, or offering longer term support. Bio-Intensive agriculture forms an important service ensuring families have food and generate an income.


UNDUGU SOCIETY, KENYACreating innovative and pioneering street children associations across Nairobi and Kisumu offering positive opportunities for new & existing street children. Intensive family work ensures relationships in families are improved.


WORKING WITH OUR PARTNERS IN EAST AFRICA DURING 2013/14 WE HAVE ACHIEVED THE FOLLOWING:

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INDIAimpact:

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8,762 children have been contacted and supported through outreach work at railway stations and at Government Homes across eight states. 2,502 children have been successfully reunified with their families. 1,779 children remain at home, of whom 989 are in education. 889 children have been referred to long stay homes. 459 young people have been trained in vocational skills, of which 33 have secured employment or started their own business.

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aim 01.7,500 children will be protected and will develop within a supportive environment, resulting in 2,100 children being reunified with their respective families.

Achieved8,762 children have been contacted and protected from abuse and exploitation. Of these, 2,502 (28.5%) children entered the reunification programme and 1,779 (71%) remain at home with 989 (56%) children going to school. A further 889 children were rehabilitated in long care homes, where returning to their family was not an option. The remaining children contacted required no further intervention.459 youth above 15 years of age acquired employable skills; as a result 20 children secured employment and 13 girls have started their own business.

aim 02.Railway Children will be recognised formally by the Ministries of Railways and Women & Child Development as an expert for strengthening the Special Juvenile Police Unit, implementing the Integrated Child Protection Scheme (ICPS) & developing child protection, evidenced by— Implementation of ICPS in Chandhauli (Uttar Pradesh).— All recruits passing out from the Trichy RPF Training Academy are trained in child protection issues through RC’s training & protocol module.— Child Protection committee is formed at Mughalsarai railway junction of East Central Railway zone.— A reintegration research study report is recognised and launched by the Ministry of Women and Child Development.

AchievedIn DelhiDepartment of Women and Child Development (DWCD) Delhi is appointing 26 social workers in the district Special Juvenile Police Units (SJPU), based on the evidence from our SJPU pilot work which benefitted 1,064 children over two and a half years.

In Chandauli, Uttar Pradesh — 501 of the 604 Child Protection Committees (CPC) are now recognised by the state government. — 410 members of village and block CPCs, police and District Child Protection Units have been trained.— A government ‘sponsorship scheme’ has been activated for vulnerable children.

Training Railway Protection Force— 19 training programmes across 11 stations and in two Railway Protection Force (RPF) institutes; 1,233 RPF officials trained from 7 different railway zones.— Officers able to advocate for the protection of children wherever posted, both on and off duty.— Engagement of officials from other railway zones due to staff transfers.— 80 children protected by recently trained officers seeking guidance on child protection issues, preventing instances of child marriage and children being incriminated over minor offences.

Child Friendly Stations— Railway officials have formed CPCs at 11 stations, implementing their own Standard Operating Procedure (SOP), which we helped to develop.— Activation of five child friendly indicators was an integral part of our strategy 2011-14, with the following results:1. Child assistance booths are now formed at six stations.2. Information of children contacted is recorded by police at eight stations.3. Child Protection Committees are formed in 19 stations.4. Public announcements encourage child protection at four stations.5. Posters advertise services protecting children at three stations.

achievements:india

Aims for the future:india

aim 01.12 partnerships will protect and support 9,000 children, as a result of which 2,600 children will be reunified with their families, and a further 900, for whom reunification is not a suitable option, will be referred to long‑term care.

aim 02.Three communication tools will engage 500 government officials from police, railways and Department of Women and Child Development, and ensure that they efficiently deliver services for the protection of children.

aim 03.Indian railways and District Administration in Chandauli, Hoshangabad, South 24 Parganas and Kaimur are responsive to child protection issues, indirectly supporting over 55k children.

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BAL SAKHA, PATNA, BIHAR— Day care centre and night shelter in Patna— Outreach to street children at Patna station— Home placement programme— Family support (financial or in kind) given mainly towards the education of home placed children.


CHES, TAMIL NADUSupport in Royapuram Government Home for Boys, which houses 125–150 children. Project workers ensure a child friendly environment, boys are reunified with their families where possible.


CINI ASHA, KOLKATA, WEST BENGAL— Drop-in centres and night shelters at Sealdah North & South Stations— Transit home near Sealdah station— Child Assistance Booth at the station— Home placement programme and referrals to other organisations and boarding schools— Networking for a coordinated effort to make Sealdah a child friendly station


CONC’RN, NEW JALPAIGURI, WEST BENGAL— Day care centre and night shelter services— Outreach and home placement programme— Child Assistance booth at the station— Networking for a co-ordinated effort to make New Jalpaiguri a child friendly station


DON BOSCO BAL PRAFULTA, CST, MUMBAI— Outreach and home placement programme— Work at government homes in Mumbai


DON BOSCO, HOWRAH, WEST BENGAL— Outreach and emergency shelters at Howrah station— Child Assistance Booth at station— Advocacy with local government

Total support in 2013-14 £29,180

EHSAAS, LUCKNOW, UTTAR PRADESH— Outreach and emergency shelter at Lucknow station and Kanpur — Home Placement programme— Development of a child protection cell at the railway station


GRASIM, ANDHRA PRADESH— Outreach at Tirupati, Tirumala and Renigunta railway stations— Child Assistance Booth at Tirupati— Reunification programme


JEEVODAYA, ITARSI, MADHYA PRADESH— 24-hour drop-in centres, outreach and residential homes for boys and girls children from Itarsi— Networking to create a child friendly station at Itarsi— Home placement programme


PRAAJAK, WEST BENGAL— Outreach work to platform children on 12 stations on the line from Kolkata to New Jalpaiguri and supporting shelters at 3 of these stations— Home placement programme— Training and sensitisation of RPF at the RPF— Training Institute at Kharagpur


SATHI, DELHI— Identifying and co-ordinating opportunities to reunify children from Government childrens homes with their families


— Working to make Special Juvenile Police Forces more ‘child friendly’ through designated social workers


TISS FIELD ACTION PROGRAMMEField work studying the application of the Juvenile Justice Act and how it impacts children who come into conflict with the law


WORKING WITH OUR PARTNERS IN INDIA DURING 2013/14 WE HAVE ACHIEVED THE FOLLOWING:

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UNITEDKINGDOM

impact:

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1,507 children have been contacted/supported through street‑based outreach work. 160 children have received extensive one‑to‑one support. 378 children have received Return Home Interviews. 100 children contacted local helplines. 60 children have received support through emergency accommodation and safe places. 48,454 children have been engaged through a preventative education project. 49 families received support.

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aim 01.Following the launch of our Reach evaluation we will consolidate our programme of work in three locations to ensure continuing strength of delivery.

AchievedDuring the last year we helped our partners to become more sustainable by creating effective monitoring and evaluation systems and helping them to demonstrate the value of their work. We have amplified their presence in the child services field and have given them access to national platforms to promote their organisations and share best practice.

Services have continued to deliver positive outcomes for young people, as demonstrated by the yearly achievement figures.

Information received during the year led us to explore the efficacy of using rail as an additional access point to further enhance the Reach model. In partnership with British Transport Police we have therefore been running a pilot project in and around Euston and Kings Cross stations.

aim 02.Undertake research 1) Collaborative piece of work with Child Exploitation and Online Protection (CEOP) and partners with regards to new Association of Chief Police Officers (ACPO) processes for missing and absent children. 2) Peer research with regards to young peoples’ understanding of a safe place

AchievedThe Safe Places research has been exploring the journeys young people take when they run away, and what needs to happen to enable those young people to find a safe place. It has been designed to include a strong peer element, with young people from New Horizon Youth Centre being trained to interview other young people who have experienced running away and homelessness. The peer interviewing produced some incredibly engaging and empathetic interviews, and both parties have commented positively on the process.

The research which includes a literature review, scoping of emergency provision, learning sets and a survey of professionals in relevant disciplines, is due to be launched in November 2014.

The planned research with CEOP into young people’s experiences of the new missing and absent categories has been delayed by the slow roll out of the new system. We have however carried out a number of Freedom of Information requests to assist with policy and campaigning activity.

aim 03.Carry out a public affairs campaign to support an Early Day Motion (EDM) currently in front of parliament.

AchievedTo promote the interests of our beneficiaries, we have worked hard to develop our profile and access to decision makers over the last year. The Reach model has been acknowledged as good practice through its inclusion in Department for Education guidance and in the Office of the Children’s Commissioner’s latest report into sexual exploitation in gangs and groups.

Our Head of Policy and Public Affairs attended several key national groups and continues to chair the English Coalition for Runaway Children. Evidence related to children who run away using the rail network was presented to the Transport Select Committee who are exploring railway security. It clearly sparked interest and a commitment to explore the issue further.

The UK team has presented at a number of conferences and training events and undertaken around 25 media interviews on the issue of children running away from home or care.

achievements:united kingdom

Aims for the future:united kingdom

aim 01.Develop a viable and replicable Reach project in London that includes a referral route from rail partners.

aim 02.Improve awareness and practical responses to young people who run away and end up in and around transport hubs, by engaging with BTP, transport providers and concourse partners.

aim 03.Use learning from practice and our safe places research finding to articulate the changes needed in both policy and practice to safeguard children and young people who run away.

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WORKING WITH OUR PARTNERS IN THE UNITED KINGDOM DURING 2013/14 WE HAVE ACHIEVED THE FOLLOWING:

MISS U, LONDONConsortium approach to assisting children and young people at risk on the streets of Islington, Camden and Haringey through preventative work, one-to-one work and return home interviews.


NEW HORIZONS, LONDONDetached street work centred on Euston Station, Kings Cross, St Pancras, St Pancras International and the surrounding residential area, to explore and make recommendations on best practice to engage with children and young people at risk on the streets.


SAFE @ LAST, SHEFFIELDREACH model that operates a free-phone helpline, detached street work, missing from home scheme and preventative education sessions alongside a two-bed refuge. Family workers complement the work with young people.


STREETWORK, EDINBURGHExplores the issues of young runaways providing outreach, streetwork, sign-posting and support.


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aim 01. We will continue to develop our brand, clearly positioning Railway Children as the lead organisation working with children living alone and at risk on the streets. We will ensure consistent use amongst all stakeholders across our international operations, introducing staff opinion polls and insight panels with key audiences to track our success

AchievedTo ensure increased awareness of children living alone and at risk on the streets, we continued to develop our brand with new materials, guidelines, assets and a revised web strategy cementing the positioning of Railway Children as a sector leader. The teams in India and East Africa are being supported regularly to meet the expected brand standards, consistently delivering high quality materials. In order to refine and develop our key messaging we conducted insight panels with key audiences to inform our campaign work.

aim 02.Develop two country specific campaigns, enabling us to raise funds in the UK and increase awareness of children alone and at risk on the streets with our key audiences (females age 40+, general public and the rail industry)

AchievedDuring the year we developed two specific country campaigns, focussing on our work in the UK and India. A significant amount of new content was generated for the purposes of direct mail, social media, online advertising, outdoor advertising, government and corporate engagement. During this time we targeted women aged 40+ and our corporate partners in the rail industry to raise awareness and funds. Our social media following has seen a three-fold increase in some cases with over 6000 followers on Facebook and Twitter.

aim 03.Establish and deliver an intelligent marketing and communications plan that facilitates the delivery of our key messages across our key audiences. We will support our programme teams in their delivery of our 3 step change agenda and work alongside the fundraising team to deliver income of £3.1m

AchievedA twelve month communications plan is in place and being updated via regular planning and monitoring with the programme and fundraising teams. This year we produced two films in support of our programme team in India, allowing them to communicate more effectively with their key stakeholders. In East Africa and the UK, the marketing department have facilitated stakeholder analysis and communications workshops with the programme and fundraising teams, which supported delivery of income worth £3.01m during the year.

achievements:communications & influencing

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aim 01.To support our work at stage two and three of our change agenda, we must strengthen the Railway Children brand in our international operations, allowing our programme teams to influence change for our beneficiaries. We will develop communication plans with the programme teams and provide workshops. We will provide templates for internal and external stakeholders, establishing benchmarks to ensure correct adoption of the brand in the future.

aim 02.We will support the fundraising team to achieve their target of £3.4m in 2014/15 by providing multi‑channel marketing support and developing annual integrated plans.

aim 03.We will launch a new responsive website and implement monitoring and performance analytics that will allow us to develop a digital strategy in synergy with our offline and social media channels.

Aims for the Future: communications & influencing

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FINANCIALRESULTS

2013/14

IncomeThe total incoming funds for the year reached £3,008,042; this represents a 0.7% increase on the previous year’s results. Unrestricted income grew by £138,023 (8.8%). The increase was largely attributed to the success of the Railway Ball and Three Peaks Challenge by Rail.

Charitable ActivitiesThe total charitable expenditure delivered in the year increased by £306,163 with charitable expenditure comprising 74.9% (previous year 76.2%) of total expenditure. Our geographically focused charitable activity divided between our Indian programme at 31% (previously 36%); our UK programme at 43% (previously 36%) and our East African programme at 26% (previously 28%). Our work in the year has sought to identify needs and develop best practice so that this can be replicated by other organisations, enabling more children to be helped than our own resources would otherwise permit.

Cost of Generating FundsCost of Generating Funds accounted for 23.3% of our total income compared with 19.1% in the previous year. During the year a Commercial Director was recruited to develop new opportunities for income generation. This will ensure further diversification of our income portfolio and build confidence for the delivery of the programmes in our business plan for 2014-17.

GovernanceGovernance accounts for 2.8% of our total expenditure, a marginal increase on the previous year (2.4%). Expenditure includes our audit and legal fees, and a proportion of our overheads. Included here is a proportion of the salary costs of our Finance and Administration staff and Chief Executive.

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The Railway Children organisation is a charitable company limited by guarantee 3265496, Registered Charity No. 1058991, incorporated on 18 October 1996 and registered as a charity on 5 November 1996.

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. Under those Articles, the Trustees, who form the Board of Trustees, are elected at the Annual General Meeting to serve a period of three years, with one third of their number retiring at each AGM.

The Memorandum and Articles of Railway Children express its objects as “the relief of children and young persons under 25 years of age who are in conditions of need, hardship or distress, anywhere in the world and in particular those who are living on the streets”.

Railway Children Trading Limited is a wholly owned subsidiary company (number 6533182) limited by shares. The company is registered for VAT and is used by Railway Children to conduct its trading activities. All profits are gift aided to the parent charity.

Railway Children Africa is a company limited by guarantee registered in Tanzania (number 7769). The majority of the board consists of Railway Children representatives. The company manages our operations in Tanzania. The results for this company are consolidated into the accounts.

VISION AND BELIEFSAs an organisation Railway Children recognises that the environment in which we operate in is one of uncertainty and constant change. The resources we rely on in order to meet our charitable aims are both competitive and subject to ever changing trends, whilst our beneficiary environment is one that varies frequently.

In response to this we construct our organisation so we can be as flexible and as innovative as possible. We nurture a culture that is both informal and open without compromising on accountability or professionalism.

This culture reflects a commitment to making a lasting change in the lives of children at risk on the streets and is informed by our stated beliefs which work together to underpin all that we do: ‘Our vision is a world where no child ever has to live on the streets’

BELIEFSIntegrity We will always act with integrity towards our supporters, partners and peers, acting in the best interests of our beneficiaries at all times.

Bravery We are not afraid to push the boundaries, try new things or challenge the status quo in order to change the world for children living on the streets.

Innovation We are constantly reviewing our work to find new and improved ways of doing the best for our beneficiaries. We push ourselves to deliver sector leading work in the interests of children living on the streets.

Effectiveness Our work is constantly judged on results and impact and then assessed to ensure maximum return on investment both in our programme outputs and financially. Every penny of donor’s money is invested with care and attention to detail.

GOVERNANCETrustee ResponsibilitiesAs a charity accountable to all our donors, we must meet the requirement that our resources are carefully managed and our legal responsibilities met. Since incorporation the Railway Children Trustees have been the organisation’s governing body. Trustees hold ultimate legal responsibility for the Charity and collectively ensure delivery of our objectives, set our strategic direction and uphold our values as an organisation.

The key responsibilities of the Trustees are:— Development and annual review of the charity’s performance from definition of concepts to approval of the strategic direction.— Setting objectives for the development and review of our year strategic plan, including approval on annual budgets.— Approval of the Annual Report and Audited Accounts.— Identification of and management of risks.— Appointment of Sub-Committees and delegation of powers.— Appointment, terms and conditions and delegated powers of the Chief Executive.— Monitor compliance with both company and charity law.— The stewardship of assets.

Railway Children operates under the guidance of a Board of Trustees and its Governance Sub-Committee. The implementation of the Trustees’ plans and policies, and the responsibility for performance is vested in the Chief Executive.

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 May 2014 was £510 (2013 - £510). The trustees are members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

STRUCTURE, GOVERNANCE & MANAGEMENT

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Trustee Recruitment & AppointmentUnder the requirements of the Articles of Association, all members of the charity are permitted to stand for election as Trustees at the Annual General Meeting. The Trustee body has the necessary powers to appoint a new trustee at any time. Any such appointed Trustee can hold office until the next Annual General Meeting, when they can stand for election.

One third of all, being the longest standing Trustees, retires in rotation and is eligible for re-appointment at the Annual General Meeting. The minimum number of Trustees is set at three and currently there are twelve. There is no set maximum number.

Trustee Induction and Training Members of the charity who are considering standing as a Trustee are invited to attend Trustee meetings, to allow them to get to know the charity and the roles and responsibilities of a charity Trustee. Additionally, new Trustees are encouraged to attend an induction meeting, led by the Chairman and the Chief Executive.

The meeting covers the following aspects:— Background to and history of the charity and the context in which it operates.— The principal responsibilities of a charity trustee. — A summary of the charity’s governing documents.— The charity’s current financial position and forecasts.— The strategic plan and current progress against objectives.

A comprehensive Trustee manual exists to assist both new and existing trustees in the discharge of their responsibilities. The manual, which is reviewed annually includes governance and operational policies, the Memorandum and Articles, role descriptions of officers and current delegations. Trustees are encouraged to keep themselves up to date through appropriate training.

RisksThe Trustees and senior staff have produced a comprehensive strategic plan setting out the major opportunities available to the charity and the risks to which it is exposed. All risks are reviewed and updated annually by the Risk sub-committee and the Board of Trustees. As part of this process, the Trustees have implemented a risk management strategy, which comprises:— an annual review of the risks which the charity may face;— the establishment of systems and procedures to mitigate those risks identified in the plan; and— the implementation of procedures designed to minimise any potential impact on the charity should any of those risks materialise. The key strategic risk for 2013-14 identified by this process was securing sustainable income to maintain our planned programmes.

ReservesThe Board of Trustees reviews the charity’s reserves policy annually at their meeting in July.

The basis of Railway Children’s reserve policy is:— To protect the continuity of our work, including specified liabilities;— To protect the long term commitments made to our partners; and— To provide capacity to invest in innovative programme activities that may initially be difficult to fund.

To achieve the above a minimum reserve is defined as being three months of our core unrestricted expenditure. To this a further amount is added to provide for income volatility and exchange rate variations on our overseas work.

The minimum reserve level is £358,000 with a target reserve after allowing for income volatility and exchange rate variations, of £921,000.

The closing unrestricted reserve for the year was £952,000 which was £31,000 above the target level.

Of the unrestricted reserve £314,000 of this designated for programme work over the next twelve months. This work is outlined in each programme section of this report and a regional breakdown of the designation given in note 16 of the accounts.

3434

The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and charity and the incoming resources and application of resources, including the net income or expenditure, of the group for that period.

In preparing these financial statements, the Trustees are required to:— select suitable accounting policies and then apply them consistently;— make judgments and accounting estimates that are reasonable and prudent;— state whether applicable UK Accounting Standards (United Kingdom Generally Accepted Accounting Practice) 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 group and charity will continue in operation.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the group and charity’s transactions and disclose with reasonable accuracy at any time the financial position of the group and charity 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 group and charity 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 charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

Each of the Trustees confirms that to the best of his/her knowledge there is no information relevant to the audit of which the auditors are unaware. Each of the Trustees also confirms that he/she has taken all necessary steps to ensure that he/she is aware of all relevant audit information and that this information has been communicated to the auditors.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

AUDITORSIn the case of each of the persons who are Trustees of the Company at the date when this report is approved:— So far as each of the Trustees is aware, there is no relevant audit information (as defined in the Companies Act 2006) of which the company’s auditors are unaware; and— Each of the Trustees has taken all the steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information (as defined in the Companies Act 2006) and to establish that the company’s auditors are aware of that information.

A resolution to re-appoint Sayer Vincent LLP as the company’s auditor will be proposed at the forthcoming Annual General Meeting.

The report of the Trustees has been prepared in accordance with the special provisions applicable to the companies subject to the small companies’ regime.

By order of the Trustees:

Haydn Abbott, Chairman of the Board.17th September 2014.

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We have audited the financial statements of Railway Children for the year ended 31 May 2014 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the company’s members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the company’s members 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditorsAs explained more fully in the statement of trustees’ responsibilities set out in the report of the trustees, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. In addition, we read all the financial and non-financial information in the report of the trustees to identify material inconsistencies with

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF RAILWAY CHILDREN.

the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statementsIn our opinion the financial statements:— Give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 May 2014, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;— Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and— Have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.

Opinion on other matters prescribed by the Companies Act 2006In our opinion the information given in the report of the trustees for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:The parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; orThe parent charitable company financial statements are not in agreement with the accounting records and returns; orCertain disclosures of trustees’ remuneration specified by law are not made; orWe have not received all the information and explanations we require for our audit; or The trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the report of the trustees’ and take advantage of the small companies exemption from the requirement to prepare a strategic report.

Catherine Sayer, Senior statutory auditor. 17th September 2014.

For and on behalf of Sayer Vincent LLP, Statutory Auditors, 8 Angel Gate, City Road, LONDON EC1V 2SJSayer Vincent LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

3636

Incoming Resources Notes RestrictedFunds2014

£

UnrestrictedFunds2014

£

Total Funds2014

£

Total Funds2013

£

— Incoming resources from generated funds

Voluntary Income 2 467,971 1,202,431 1,670,402 1,685,931

Activities for Generating Funds 7,343 439,761 447,104 375,144

Investment Income 3 6,445 23,445 29,890 13,165

— Incoming Resources from charitable activites

Grants received 824,486 36,160 860,646 914,056

Total Incoming Resources 1,306,245 1,701,797 3,008,042 2,988,296

Resources Expended

Cost of Generating Funds — 699,762 699,762 570,988

Charitable Activities 1,525,091 820,353 2,345,444 2,039,281

Governance Costs — 86,682 86,682 63,903

Total Resources Expended 4 1,525,091 1,606,797 3,131,888 2,674,172

Net Movement of Funds in the year (218,846) 95000 (123,846) 314,124

Funds at the start of the year 16, 19 1,159,270 857,048 2,016,318 1,702,194

Total funds carried forward 940,424 952,048 1,892,472 2,016,318

(incorporating Income & Expenditure Account)For the year ended 31 May 2014

All of the above results are derived from continuing activities.

All recognised gains and losses are included in the Statement of Financial Activities.Accordingly no statement of total recognised gains and losses are given. All restricted funds received and expended relate to income funds.

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

3737

Notes Group2014

£

Group2013

£

Charity2014

£

Charity2013 £

Fixed Assets

Tangible Assets 9 16,312 10,793 16,312 10,793

Investment in Railway Children Trading Limited

— — 100 100

Current Assets

Debtors & Prepayments 14 33,335 33,282 103,234 66,748

Short Term Deposits 1,547,895 1,269,872 1,547,895 1,269,872

Cash at Bank & in Hand 400,612 800,219 330,329 765,903

1,981,842 2,103,373 1,981,458 2,102,523

Current Liabilities

Amounts Falling Due within One Year 15 (105,682) (97,848) (105,398) (97,098)

Net Current Assets 1,876,160 2,005,525 1,876,060 2,005,425

Net Assets 16 1,892,472 2,016,318 1,892,472 2,016,318

Funds

Unrestricted Free Reserve 637,713 550,365 637,713 550,365

Unrestricted Designated Reserve 314,335 306,683 314,335 306,683

Restricted 955,387 1,159,270 955,387 1,159,270

Restricted Funds in Deficit (14,963) — (14,963) —

Total Funds 19 1,892,472 2,016,318 1,892,472 2,016,318

As at 31 May 2014

The financial statement of Railway Children, registered number 03265496, were approved by the Board of Trustees on 17th September 2014 and signed on its behalf by:

Chairman of the Board Haydn Abbott

Rosemary DayHonorary Treasurer

CONSOLIDATED AND PARENT BALANCE SHEET

3838

The financial statements are prepared under the historic cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2005) issued in March 2005 and applicable UK Accounting Standards and the Charities Act 2011 and Companies Act 2006. The accounting policies have been applied consistently with the previous year.

As explained in the Trustees’ Report, after making enquiries, the trustees have a reasonable expectation that Railway Children has adequate financial resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Basis of ConsolidationThe Group financial statements consolidate the financial statements of Railway Children and its wholly owned subsidiary undertakings drawn up to 31st May each year. The results of the charitable company and its wholly-owned subsidiaries Railway Children Trading Limited, Railway Children Africa Limited and the overseas entity over which the charity has control through membership, Railway Children India, are consolidated on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company’s balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006 and paragraph 397 of SORP 2005.

Cash Flow StatementThe charitable company qualifies as a small entity and, as a consequence, it is exempt from the requirement to publish a cash flow statement under Financial Reporting Standard 1 “Cash Flow Statements”.

Incoming ResourcesAll income is recognised in the statement of financial activities when the conditions for receipt have been met and there is reasonable assurance of receipt. Where a claim for Income Tax has or will be made, such income is grossed up for tax recoverable. Deferred income represents amounts received for future periods and is released to incoming resources in the period for which it has been received. The following accounting policies are applied to income:

Gifts in Kind and donated goods & facilitiesAssets given for use by the charity are recognised as incoming resources at their estimated market value when receivable. If they form part of the fixed assets at the year-end they are included in the balance sheet at the value at which the gift was included in incoming resources. Donated facilities are included at their estimated value and the corresponding expenditure included under the appropriate heading. All estimates of value of gifts are estimated as the value to the charity of the service or facility received; being the price the charity estimates it would pay in the open market for a service or facility of equivalent utility to the charity.

DonationsDonations and all other receipts from fundraising are reported gross and the related fundraising costs are reported in other expenditure.

Grants receivedGrants are recognised when the conditions of entitlement are met.

Charitable ExpenditureCharitable expenditure includes expenditure directly related to the objects of the charity and comprises grants payable, accounted for when the trustees have approved such grant and instruction is given to the charity’s bankers. In addition costs incurred in transmitting project grants to those projects, and the cost of visits by trustees and staff to assess, monitor and develop the work of these projects is accounted for on an accruals basis. Salary costs for co-coordinators in India, Programme Development Manager, National Policy and Strategy Officer, National Research & Strategy Manager and a proportion of the CEO salary are included as this work is concerned with the development of the management of and enhancement of capacity of the projects supported are also accounted for on an accruals basis.

Notes to the financial statements

01. ACCOUNTING POLICIES

3939

Allocation of operating costsThe charity’s operating costs are accounted for on an accruals basis and are allocated between costs of generating funds, charitable expenditure and governance. Wherever possible the costs are positively identified and specific to the activity, in other cases such as office provision and some staff costs a percentage allocation of total cost is made based upon an estimate of staff time attributable to each activity. The allocations for the year were:

Tangible fixed assetsThe fixed assets are limited to equipment, furniture and fittings and are capitalised where the purchase cost exceeds £1,000. Depreciation is provided on these assets in equal annual instalments over the estimated lives of the assets as follows:

Office Equipment - 4 yearsDisplay Equipment - 4 yearsFurniture & fixtures - 5 years

Fund StructuresUnrestricted funds are where funds have been received without any conditions from donors. Some unrestricted funds have subsequently been set aside by Railway Children as designated funds where they have been ear-marked to fund a specific partner from unrestricted funds.

Where funds have been received from donors for particular purposes these are represented as restricted funds. Transfers are made between restricted funds to represent changes agreed with the donor of the funds.

Foreign CurrencyTransactions in foreign currencies are converted at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are converted at the rate of exchange prevailing at the balance sheet date. Exchange rate differences are taken into account in arriving at net incoming resources for the year.

InvestmentsIn the charity balance sheet, investments in the subsidiary are shown at cost less provision for impairments.

PensionsThe charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

Other costs Depreciation

40% 44%

58% 50%

2% 6%

100% 100%

UK support staff percentages

CEO Marketing & Comms

Finance & Admin

Charitable 33% 60% 34%

COGF 33% 40% 44%

Governance 34% - 22%

100% 100% 100%

4040

Restricted Funds 2014

£

Unrestricted Funds 2014

£

Total Funds

2014£

Total Funds

2013£

Individual Donations:

General 76,981 231,382 308,363 281,592

Regular Givers 4,039 195,238 199,277 193,659

Corporate Donations 386,951 695,625 1,082,576 1,151,540

Gifts in Kind — 80,186 80,186 59,140

467,971 1,202,431 1,670,402 1,685,931

03. INVESTMENT INCOME

This represents interest received from the Charity’s accounts with Royal Bank of Scotland, Lloyds TSB, Barclays and Yorkshire Bank.

02. VOLUNTARY INCOME

Charitable expenditure

£

Cost of generating

funds£

Governance

£

Support costs

£

2014Total

£

2013Total

£

Grants paid (see note 5) 1,437,456 — — — 1,437,456 1,131,631

UK Staff (see note 6) 216,388 236,647 — 322,877 775,912 679,727

Overseas Staff (see note 6) 166,675 — — — 166,675 147,905

Office & Supplies 28,803 — — 52,187 80,990 150,860

Services 135,266 133,041 14,195 11,841 294,343 214,719

Travel & Accommodation 63,043 14,467 — 3,725 81,235 118,681

Other 86,656 96,992 — 25,522 209,170 163,985

Depreciation — — — 5,921 5,921 7,524

Gifts in Kind 33,272 24,453 22,461 — 80,186 59,140

Sub total 2,167,559 505,600 36,656 422,073 3,131,888 2,674,172

Support costs 177,885 194,162 50,026 (422,073) — —

Total 2,345,444 699,762 86,682 — 3,131,888 2,674,172

04. TOTAL RESOURCES EXPENDED


4141

05. GRANTS PAID

06. STAFF COSTS

Grants paid by region and country Outreach2014

£

Shelter2014

£

Reintegration2014

£

Funds2014

£

Total2013

£

UK 220,835 107,532 112,877 441,244 436,179

India

North 47,777 58,060 51,231 157,068 135,650

West and Central 39,586 42,971 38,105 120,662 93,898

East 51,368 80,961 35,989 168,318 135,737

South 17,667 11,605 16,432 45,704 30,639

East Africa

Kenya 94,240 90,069 75,013 259,322 124,966

Tanzania 63,413 14,609 167,116 245,138 174,562

534,886 405,807 496,763 1,437,456 1,131,631

Information regarding employees and trustees * The 2014 figure averaged 32 full-time (2013: 29) and six part-time paid (2013: six) staff.* During the year the charity had three volunteers providing regular assistance in the office. * One employee had emoluments in the range of £80,000-£89,999 (2013: one) and one employee had emoluments in the range £60,000-£69,999 (2013: two). Pensions contributions for staff paid £60,000 or more were £7,444 (2013: £7,414).

Outreach work includes streetwork, local helplines, association models and child friendly stations.Shelter includes drop-in centres, night-shelters and refuge.Reintegration work includes return home interviews, intensive family work, work with government homes and bio diverse farming.

2014£

2013£

Wages and salaries 674,241 595,881

National Insurance 71,365 62,437

Pension costs 30,306 21,409

Other — —

775,912 679,727

The total number of UK employees (FTE) was:

2014 2013

Project development 7.0 7.0

Fundraising 6.5 6.0

Support and administration 3.5 3.5

UK staff subtotal 17.0 16.5

East Africa programme staff 4.0 2.0

India programme staff 13.0 13.0

Total staff 34.0 31.5

4242

2014£

2013£

Operating lease rentals

— Property 14,000 14,000

— Other 1,592 1,592

Depreciation 5,921 7,524

Auditors remuneration

— Audit 8,940 9,366

— Audit accrual adjustment 1,060 535

— Audit disbursement 1,500 943

— Other services — —

Trustees remuneration — —

Trustee expenses 1,065 478

Of which Trustees reimbursed expenses 823 478

Trustee expenses represents the reimbursed travel and expenses of one (2013: one) Trustee attending meetings.

07. NET INCOMING RESOURCES FOR THE YEAR

This is stated after charging:

2014£

2013£

Less than one year 14,000 998

1-2 years — 14,000

2-5 years 1,156 1,156

Over 5 years — —

15,156 16,154

08. OPERATING LEASE COMMITMENTS

The charity had annual commitments at the year end under operating leases expiring as follows:


4343

Sales & Promotion Equipment

£

Office Equipment

& Furniture £

India Office

Equipment £

Total

£

Cost

At beginning of year 4,910 58,440 5,753 69,103

Additions in year — 11,440 — 11,440

Disposals (3,741) (8,827) — (12,568)

At close of year 1,169 61,053 5,753 67,975

Depreciation

At beginning of year 4,910 47,647 5,753 58,310

Change for year 5,921 5,921

Disposals (3,741) (8,827) — (12,568)

At close of year 1,169 44,741 5,753 51,663

Net Book Value

Group and charity at close of year — 16,312 — 16,312

Group and charity at beginning of year — 10,793 — 10,793

09. TANGIBLE FIXED ASSETS (GROUP AND CHARITY)

2014£

2013£

Turnover 25,838 30,449

Expenditure (13,221) (20,595)

Use of Railway Children logo (1,000) (1,000)

Use of Railway Children staff (5,000) (5,000)

Trading profit / (loss) 6,617 3,854

Loan interest paid to Railway Children (50) (50)

Profit donated to Railway Children (6,567) (3,804)

Net profit for the year — -

Net assets carried forward at 31 May 100 100

Railway Children Trading Company Limited is a 100% subsidiary of Railway Children and income is derived from the sale of Christmas cards, sale of donated nameplates and licence fees. All the Railway Children Trading Company Limited’s profits for the year are donated to Railway Children. Payments to Railway Children are regarded as a reduction of the charity’s expenditure and cancel out on the consolidated accounts.

10. RAILWAY CHILDREN TRADING LIMITED

4444

11. TAXATION

Railway Children Limited is a registered charity and is thus exempt from taxation of its income and gains falling within Section 505 of the Income and Corporation Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that they are applied to its charitable objectives. No tax charge has arisen in the year.

13. RAILWAY CHILDREN PARENT CHARITY

The parent charity gross income for the year is £2,982,206) (2103: £2,957,847) and the net deficit for the year is £123,846 (net retained 2013: £314,128)

2014£

2013£

UK Corporation tax @ 20% (2013: 20%) — —

Railway Children Africa Limited is a 100% subsidiary of Railway Children and income is derived from the restricted income from the parent charity. Railway Children Africa Limited carries out Railway Children’s programme of work in Tanzania.

2014£

2013£

Turnover 310,463 246,798

Expenditure (310,463) (246,798)

Net assets carried forward at May 31st - -

12. RAILWAY CHILDREN AFRICA

Group 2014

£

Group2013

£

Charity 2014

£

Charity2013

£

Debtors — 5,505 — 5,505

Gift aid debtor £15,281 13,700 15,281 13,700

Other debtors 4,675 2,824 4,222 2,824

Prepayments 13,379 11,253 13,379 11,253

Railway Children Africa - owed to charity — — 55,136 22,612

Railway Children Trading Limited - owed to charity

— — 15,216 10,854

Total 33,335 33,282 103,234 66,748

14. DEBTORS AND PREPAYMENTS


4545

Group 2014

£

Group2013

£

Charity 2014

£

Charity2013

£

Creditors 24,631 19,651 24,592 19,651

Tax and national insurance 17,629 15,166 17,629 15,166

Accrued Expenditure 63,422 62,281 63,177 62,281

Railway Children Trading Limited - creditors — 750 — —

Total 105,682 97,848 105,398 97,098

RestrictedFunds

£

DesignatedFunds

£

General Funds

£

TotalFunds

£

Tangible fixed assets — — 16,312 16,312

Net current assets 940,424 314,335 621,401 1,876,160

Net assets at the end of the year 940,424 314,335 637,713 1,892,472

15. LIABILITIES: AMOUNTS FALLING DUE WITHIN ONE YEAR

16. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

17. RELATED PARTIES

During the year there were related party transactions with Railway Children India, Railway Children Africa Limited and Railway Children Ball Limited. Income from Railway Children Ball Limited was £409,628 (2013: 321,162).

Railway Children India is registered as a liaison office in India and manages the delivery of the India programme with funding provided entirely via Railway Children.

The Railway Children Ball Limited has one Trustee in common with Railway Children and runs an annual fundraising ball.

Railway Children Africa Limited is registered as a company in Tanzania and manages the delivery of the Tanzania programme with funding provided entirely via Railway Children. Railway Children representatives make up a majority of the board positions.

18. FUNDS HELD ON BEHALF OF OTHERS

The charity is part of an unincorporated association known as the Partnership for Vulnerable Children, formed with with three other charities: Childhope, Get Connected and ICT. The association operates a payroll giving scheme on behalf of its members. Railway Children peforms the financial administration for the association.

The sole assets of the association are funds collected not yet dispersed which are held in a separate bank account. The balance on the account at 31st May 2014 was £6,508 (2013: £7,621). This bank account does not form part of these consolidated accounts.

4646

Restricted Funds

Balance at Start of

Period £

Movement in Resources Incoming

£

Movement in ResourcesOutgoing

£

Balance at Close of Period

£

Region Funder

East Africa DfID 256 181,100 164,105 17,251

Comic Relief 6 147,008 — 124,804 22,204

Other funders 45,116 190,515 150,782 84,849

India Comic Relief 1 4,146 — — 4,146

Comic Relief 2 1 — — 1

Comic Relief NH & AE 7,245 — — 7,245

Comic Relief Tsunami 10,631 — — 10,631

Comic Relief 3 221,222 186,641 230,687 177,176

Comic Relief 5 63,189 140,000 169,897 33,292

Other funders 93,779 138,065 155,298 76,546

UK Aviva 532,891 353,688 392,451 494,128

Other UK 33,786 29,904 35,772 27,918

Total Restricted Funds 1,159,270 1,219,913 1,423,796 955,387

Restricted Fund in deficit

Big Lottery Fund Grant — 86,332 101,295 (14,963)

Unrestricted Funds

Designated Funds

India 93,891 129,501 42,140 181,252

UK 96,792 71,576 100,285 68,083

East Africa 116,000 49,145 100,145 65,000

Total Designated Funds 306,683 250,222 242,570 314,335

General Funds 550,365 1,451,575 1,364,227 637,713

Total Unrestricted Funds 857,048 1,701,797 1,606,797 952,048

Total Funds 2,016,318 3,008,042 3,131,888 1,892,472

19 MOVEMENT IN FUNDS


4747

Purposes of Restricted Funds

All restricted funds are held for the relief of children and young persons in conditions of hardship and distress who live on the streets or are at risk of running to the streets.

DfID: These funds relate to the assistance of street children in Mwanza in Tanzania.

Comic Relief 1,2, NH & AE and Tsunami: These funds are unspent from previous projects and are under negotiation for redeployment.

Comic Relief 3: Restricted for the assistance of street children in various locations throughout India.

Comic Relief 5: Restricted for the assistance of street children in West Bengal.

Aviva: These funds relate to the assistance of street children in projects in the UK the definitions of which are currently being adjusted to take account of the changing needs of our beneficiaries, as public services are affected by the economic environment.

Big Lottery Fund Grant: These funds relate to the assistance of street children in Kitale in Kenya. The fund is in deficit as grants are recognised on a receipts basis and funds have been advanced to our partner ahead of receiving grant funds. Funds have been received subsequent to the year end and the fund is now in surplus.

Purposes of Designated Funds

These funds are set aside to cover our commitments to partner organisations for the next period to May 2015 made from our unrestricted funds.

T +44 (0)1270 757596 E [email protected] www.railwaychildren.org.uk

Railway ChildrenFirst Floor, 1 The Commons, Sandbach, Cheshire CW11 1EG

Registered charity number 1058991

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