Annual Report and Accounts 2011-12

600,000
Children and their families reached to date

4,000
Students have raised money for us

2,500
People have climbed Mount Kilimanjaro for us

Contents

Letter from the Chair and CEO.................................... Pg 4 Overview of the year.................................................. Pg 6 Our values..................................................................Pg 9 Our approaches..........................................................Pg 12 Stories........................................................................ Pg 16 Structure, Governance and Legal Details.................... Pg 20 Financial Review......................................................... Pg 26 Trustees Responsibilities.......................................... Pg 28 Independent Auditors Report.................................... Pg 29 Consolidated Statement of Financial Activities........... Pg 31 Balance Sheets........................................................... Pg 32 Notes to the Accounts................................................ Pg 33

Letter from the Chair and CEO

This last year has been one of rapid growth for Childreach International, increasing not only the number of children and families we work with, but also expanding our supporter base here in the UK. Despite the tough economic climate, we have seen our turnover increase from 4m to 4.4m, which has allowed us to reach out to over 300,000 children and families this year alone. However the new year has proved to be much tougher and net income for the year will be lower than in 2012. Our reserves are sufficient to cover the expected shortfall and measures have already been put in place which should result in a surplus in the year to August 2014. This year we have transformed the way we work to the extent that we are now a rights-based organisation, with a focus in every country on working with children to support them in securing their rights. Weve worked with our overseas affiliates and partners to introduce child protection policies in every country, further strengthened by our membership of the Keeping Children Safe coalition. In every country we have increased our engagement with government stakeholders and key decision makers to advocate for the rights of children, and have become a member of the Bond Child Rights Committee to ensure that the voices of children around the world are heard at UK policy level too. We hope to build on this expertise and plan to carry on our community work against child trafficking. We would like to take this opportunity to thank the thousands of supporters who have been part of our journey these past years; our dedicated staff across the globe, our committed Trustees, the Trusts, Institutions and corporates who have continuously supported us. A special thank you to the thousands of students who take on huge challenges such as climbing Mount Kilimanjaro to raise funds for our projects. We couldn't do it without you all. This year, both of us have had the privilege of meeting some of the children and project partners we work with, and are constantly amazed by the resilience and energy of children. In this tough economic climate its more important than ever that governments, charities and individuals do more, stand together, and try to make lasting change for children in the developing world.

Victor Patterson Chair

Firoz Patel CEO

Children from Tanzania learn how to wash their hands properly as part of a health project with project partner PHEDA.

Overview of the year...

unlock a childs potential...
We strongly believe that all children should have the opportunity to unlock their full potential in life. We work in partnership with local communities in the developing world to help improve childrens access to health, education, child rights and protection. To date our projects have reached out to over 600,000 people overseas. We fund all of our work by encouraging people like you to be actively involved in the charity and the projects that you support.

Our vision:
A world where all children have the opportunity to reach their full potential in life.

Health
Since January 2012 we have reached out to approximately 55,400 children through our health projects.

How we work:

Community centred Participatory Holistic Sustainable

Education
Since January 2012 we have reached out to approximately 68,000 children through our education projects.

Child rights and protection

Since January 2012 we have reached out to approximately 37,000 children through our child rights and protection projects.

Our values:

Respect Active Engagement Inclusivity Honesty

Highlights from the year...

A year of awards...
This financial year has seen us win a Third Sector Excellence Award for Best Fundraising team, be voted as one of NESTAs Top 50 Radicals and be nominated for a Charity Times Award for our fundraising and programmatic work.

Institutional funding...
This financial year has seen Childreach International secure funding from several institutions including The Commonwealth Foundation, which saw eight members of our international team visit the UK office for training.

Tanzania:
39,400 children and their families We work through primary schools and communities to improve childrens access to, and quality of, education by addressing causes of absenteeism and by keeping them protected from abuse and ill health both at school and at home.

Nepal:
53,500 children and their families Childreach Nepal have been working in partnerships with grassroots organisations to run diverse projects. Many of our projects focus on improving the lives of children in remote and rural communities of Nepal.

India:
110,850 children and their families We ran 11 projects working with project partners who are dedicated to improving childrens access to education, health, child rights and protection, in both urban and rural areas, with a focus on The Right To Education.

Cambodia:
51,000 children and their families Childreach International is working with midwives on the ground in Takeo province. They are working day in, day out to provide essential maternal and child healthcare, ensuring mothers and their infants are safe.

Bangladesh:
140,300 children and their families Childreach International has been working on two projects to reduce the number of children and women trafficked through the Jessore and Shatkhira districts and into India and Nepal.

Occupied Palestinian Territories:

3,750 children and their families Weve been working in the West Bank of Palestine, working directly with three project partners, running projects which aim to help rehabilitate and educate children who have been affected by the occupation.

China:
36 children and their families Childreach International began working in China in 2011, supporting a project that provides life-saving surgery and nurturing pre and post-operative care for infants from Beijing orphanages.

Peru:
140 children and their families Childreach International began working in Peru in 2011 on a project that promotes education and good treatment in a primary school in Lima, reducing the cases of aggression between classmates at school and at home.

Pakistan
3,108 children and their families Childreach International has been working in Sialkot with communities to renovate schools and provide education to children in the region.
Note to reader: As our project cycles fall in-between our financial year, the numbers in this report reflect projected numbers for the end of the 2012 projects cycle.

Achievements...
Goal: Reaching out to a further 100,000 children and their
families

Achievement: Success Last year we reached a further

300,000 children and their families

Goal: Developing the expertise of the Board of Trustees Achievement: Success We have appointed five new
members with professional skills that strengthen the organisation

Goal: Increase corporate engagement Achievement: Despite some corporate engagement, we

struggled to grow this due to the effects of the recession

Goal: Become an Associate Member of the Keeping Children Safe Network Achievement: Became a member in August 2012

Going forward...

Expanding our project reach to 1 million children and their families, unlocking the potential of more children across the globe Engaging with more young people working with a school in every region in the country Working with a cross section of British businesses Improving the quality of our project work, striving for best practice and being fully accountable in everything we do Developing relationships with Trusts and Foundations, and securing more Institutional Funding Review of work to date, business plans and strategy for UK and affiliate offices for the next 3 years Focus on funding programmes designed and run by affiliate offices

Our values
Respect
Childreach International does not see children as the product of their suffering but as the sum of their potential. Consequently, Childreach International uses only positive images of children. People are not defined by their economic or social status and every community has strengths and weaknesses. They should not be characterised by poverty. Within all people, especially children there lies ambition and potential and as an organisation it is our privilege to play a small role in helping children unlock their capabilities. At the heart of our organisational values lies the respect between our staff, our offices and between Childreach International and our community partners. Our best measure of whether we are succeeding as an organisation is not how well people respond to our marketing or our message but how children, their communities and our local partners talk about us when asked if the relationship is genuine, equal and respectful.

Inclusivity
Childreach International staff and international programmes are truly diverse and are not selected on the basis of race, religion, gender, sexuality, sexual orientation, caste or age. Whilst Childreach International is very careful to not align with any specific political groups, parties, organisations or philosophies in the countries we work in, we do encourage engagement with local and national governments to promote our work and lobby for the rights of children. Although we recognise and acknowledge that different cultures around the world have different attitudes (both in the workplace and society) towards these issues, we believe as an organisation that all of our internal and external interactions should actively promote inclusion, tolerance, respect and above all equality.

Active Engagement
Wherever possible we seek to actively engage our donors and supporters to encourage them to gain a deeper understanding of our work and become involved as active stakeholders, rather than passive contributors. As well as creating an energetic and enthused supporter base, this also has the added advantage of turning Childreach International from an NGO into an active global movement. Most of our supporters are young people themselves and, as such, the future decision makers within their societies. Fulfilling roles of advocates during such an informative stage of their lives enables them to develop a broad sense of development awareness and an embedded passion to promote the interests and rights of children around the world. Moreover, we encourage the active engagement of our beneficiaries, communities, project partners and staff. Child participation and community led development is integral to every aspect of our work, from the formation of projects to the assessment of our impact on the ground.

Above: A member of staff visits a project in Pakistan and spends time talking to member of the community

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Honesty
In our role as stewards or custodians of donor funds intended to benefit the lives of children around the world, it is especially important that both the nature of our projects and our financial operations are clearly communicated to our donors, the communities in which we work, the organisations that we support and the wider public. Our reputation for sound financial management is of utmost importance. Furthermore, we have a particular responsibility to be honest and open with the children who participate in our projects and the communities who invite us to work with them. In order to improve our work as an organisation and contribute to progress in the international development sector it is also particularly important as an organisation that we are honest about the mistakes we make and share the lessons we have learnt to enable others to improve their work. Central to this is creating an atmosphere and a culture within Childreach International that avoids blame and encourages a sense of shared responsibility for organisational development. Through acknowledging our weaknesses and failings we can respond constructively and work effectively to enhance our efforts.

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Our approaches
Community centred
Children are at the heart of everything Childreach International does. We endeavour to promote a child-centred community development approach wherein the children, their families and their communities are owners of the development process. We believe that our legitimacy and authority as an organisation comes from prioritising the children themselves, in the context of their family and their wider community. Our work is underpinned by the principles of the UN Convention on the Rights of the Child; we are guided by the best interests of the child at all times and adopt the non-discriminatory principle that all rights apply to all children without exception. The diagram below is a simple illustration of our perspective.

Childreach International works at a grassroots level, forming genuine partnerships with community based organisations (CBOs). We believe communities have the strength and willingness to overcome their own challenges and that these organisations are best placed to understand the issues existing in their community. We strive to support local heroes passionate about improving the lives of children in their communities. Through our work with these agents of change and CBOs we implement sustainable community led initiatives and support projects which enable community ownership at every stage of the project cycle.

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Participatory
Fundamentally connected to this community centred approach is the need for respectful and meaningful participation, particularly that which involves children. We aspire to place child participation at the heart of how we operate. Our job is not to dictate to children but to engage young people in designing and participating in projects and programmes that genuinely reflect the needs and aspirations of their generation. We believe children are not passive objects of interventions but should be active agents in their own development. This requires more than just listening to them, it means involving children in decision-making, and encouraging them to take an active role in finding solutions to their problems. Over the coming years we plan to incorporate some form of child participation at all levels and stages of the project management cycle. Closely related to our commitment to child participation is a focus on child protection. Child protection will be prioritised at all times and present in all aspects of our work as an organisation.

Participation of communities is another essential requirement of our projects. By involving the children, their families and the wider community we foster a sense of ownership and encourage them to become stakeholders able to provide sustainable solutions to the poverty cycle and shape their own futures. We will actively pursue a scenario where every project we support actively, ethically and meaningfully involves all relevant actors (including children) in the decision -making process for planning, implementation and evaluation, through which they are empowered to claim their rights and take responsibility for a project and its results.

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Holistic
Childreach International believes in a holistic approach to development. Through our partnerships, we facilitate simultaneous delivery of numerous discrete initiatives which, when combined, are more effective than when delivered apart. This kind of multi-pronged approach, often sector-wide in scope, increases our impact. These programmes may include aspects from one, two or all three of our development themes of health, education and child rights and protection. By addressing a variety of issues through meaningful lasting partnerships we form synergies, creating a multiplier effect that expands and strengthens the positive effects of our projects. In addition to supporting initiatives which deal with the immediate socio-economic needs of children, we are working to develop a framework in which we also integrate elements of a child rights focussed approach. Our work does not merely respond to identified needs but rather follows the three pillars of child rights programming (engaging with and supporting duty bearers and rights holders and incorporating aspects of advocacy). This involves child rights situational analyses and needs assessments with advocacy and awareness activities which respond to identified challenges. Our programmes will focus on addressing underlying issues of the root causes of poverty, and will work with rights holders and duty bearers on all levels. This is a vital step in ensuring project sustainability and will allow us to bring about lasting change and greater impact in the lives of the children we work with. Our emphasis on the holistic also requires us to recognise the various aspects of child wellbeing, such as material, relational and subjective, and reflect these multi-dimensionally within outcomes. This approach will place greater emphasis on peoples potential to fulfil their ambitions, and not on those areas in which they are deficit. We will focus on self determination and participation rather than exogenously defined well-being.

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Sustainable
Sustainability is an integral benchmark by which we evaluate the achievements of our projects and the manner in which we work. The strength of a projects sustainability will often depend on the successful implementation of our three other approaches. We aim to facilitate results which have permanent value for those they aim to affect, the surrounding communities, the institutional capacity of governments, and the environment. As an organisation we cannot talk about environmental sustainability without incorporating awareness of environmental impact and subsequent adaptive and, or mitigating responses into all of our work and projects. The environmental legacy that we leave to the next generation is ultimately as important as the economic or social impact we have through our current initiatives. We will both improve the way we work by minimising our negative impact on the environment and seek to become a model of excellence within the sector.

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Improving awareness of child rightsaccess to Improving

Where: Resettlement colony, South Delhi What: Working in partnership with Nav Srishti to
support the education of deprived children, especially girls, and to generate overall awareness on child rights.

Who: 4,000 children and 8,000 parents Why: Sangam Vihar is a vast unauthorised colony.
Literacy rates among these people are very low and only 30% of women are literate. Violence and abuse are a daily threat and often children are left to deal with issues alone. The lack of awareness on child protection and rights means that children become easy and unwilling victims of circumstances.

How: Educating community members on Child Rights.

Girls and mothers will increase their knowledge on the issues surrounding child abuse and gender based abuse, learning how to stay safe. Children and their parents at 7 schools will be sensitised on the provisions set out in the Right to Free and Compulsory Education Act and strengthening school management committees.

Kamlesh visited her 3 children's formal government school. She was shocked to see a student of 7-8 years cleaning the floor instead of attending classes. She decided to raise her concerns. The Principal did not address her concerns and Kamlesh decided to visit the Nav Shrishti officer to share her concerns where the staff helped her file an application under the Right to Information Act. An explanation was sought from the school principal, who invited Kamlesh to his office and invited her to be a part of the School Management Committee. Since joining the committee Kamlesh has mobilized other parents and proactively involved them in the learning process of their children. Last year, the school was awarded best prize for highest academic results in its zone in Delhi. Parents learning about their children rights

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Improving access to education

Where: Ghona Vocational Training Centre for

the Deaf, Moshi Rural, Tanzania

How: The project aims to resolve some of the

issues outlined above by training 20 deaf young people as part of VTCD activities.

Who: Working with VTCD staff, UWAVIKA and

the Woodford Foundation.

What: To enable 65% of all trainees to pass the

exams; for 85% of trainees to rate their understanding of life-skills as a 4 or more on the Likert scale; to facilitate 6 trainees being self-employed in carpentry or tailoring by the end of 2014; and to contribute to the improved health of trainees, emotional wellbeing, and knowledge of how to remain healthy as shown by a decrease in sick days and improved self-rating health scores. Post-primary education in Tanzania is not free. Deaf children who wish to gain further skills and education face extra challenges, tending to come from low-income households and often having little support from their parents in pursuing further education. There are an estimated 25,000 profoundly deaf children in Tanzania, but only 1,500 who are in schools or other educational organisations. Many deaf people in Tanzania experience isolation both socially and economically. Having the requisite skills to partake in the local economy will make a significant difference to the future of young deaf people in Northern Tanzania.

Over the 11 months I have been

here there is a great change in my life. I did not know how to sew clothes and now I can sew various types of cloths like skirts, shirts and trousers and I can help my parents and relatives to repair their clothes. My ambition is to become an expert in tailoring and help more deaf children in the community. So with the changes that I see now my dream is going to become true and I thank God for being at Ghona VTCD, amazing job for the success of our centre.
Jennifer Elias, 20 years old, Ghona trainee

Why:

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Improving access to child rights and protection

Where: Bangladesh. Who: 91,027 people What: Working with project partner BISAP to
prevent child trafficking.

Rescue story...
In 2011 a 14 year old girl called Nishat was rescued from a gang of child traffickers who abducted her from her home in the Satkhira District. Having attended an awareness raising session, Nishat remembered the phone number for the abduction helpline and was able to contact the watch committee. The Community Facilitator contacted the police and together they were able to find Nishat and take her back home. Nishat now lives with her grandmother and is back at school. On returning home Nishat said:

How: Local watch committees made up of the

marriage registrar, local journalists, lawyers and police have been established to look out for and respond to potential trafficking activity. A helpline service has been set up for staff and the community to report incidents. So far this has helped rescue 15 missing children. 60 local schools have formed child brigades; a group of children keen to provide support and advice, and to raise awareness for other pupils and their families and children outside of school. They visit houses to pass on information, tips and techniques they have learnt from BISAP meetings. If they hear of anything suspicious, they inform BISAP immediately. They also perform inspiring plays to educate the community about trafficking a method that works well in areas where illiteracy levels are high.

I want to continue my studies to become a teacher so that I can educate more children about the real dangers of child and women trafficking.

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Improving access to healthcare

Where: Rural Nepal. Who: 170 students from Yangrima School plus
wider community benefits 1,300 children and 800 households in the region.

What: Providing teacher training and

establishing a new health clinic for the community.

Dhulikhel Hospital on safe drinking water, health and sanitation. The children will then pass on what they have learnt through holding monthly meetings with mothers groups, womens groups and general community engagement allowing the projects to be locally owned and sustainable.

How:
Childreach International is providing a health project that will see Dhulikhel Hospital provide healthcare to children in this rural district of Nepal. The Health Clinic provides huge benefits to the rural community, which is located about a five hour walk away from the nearest government health facility. Without adequate healthcare within the community, children are vulnerable to illnesses such as pneumonia, diarrhoea and dysentery, as well as non-infectious diseases. The clinic will not only provide treatment to children and members of the local community, but will also focus on encouraging knowledge and awareness of preventative healthcare. This sustainable project will see at least five teachers at Yangrima School receive training on issues such as health, hygiene and first aid. The students will form health clubs and will also be trained by representatives from

The Health Clinic is a new project with Childreach International at Yangrima School. In communities where governments fail and systems dont work, people suffer a lot and we have to find a solution to that. If we can mobilise people, involve communities and work with good project partners, I believe we can bring about lots of change.
Dr Biraj, Dhulikhel Hospital

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Structure, Governance and Legal Details

Legal details
Charity name: Childreach International Charity number: 1132203 Board of Trustees:

Chief Executive Officer: Firoz Patel Registered office address:

23 Hand Court London WC1V 6JF

Professor Victor Patterson (Chair) David Henry Gray (Treasurer) appointed 8th December 2011, appointed Treasurer 9th February 2012 Oneka Baptiste (resigned 25th August 2012) David Durkee Susan Jayne Gilbert (appointed 8th Dec 2011) Said Hafiz (resigned 1st November 2012) Lucretia Hudson-Garber Ross Kemp (appointed 8th December 2011) Felicity McLean (appointed 8th December 2011) Ivor Robin Ramphal (resigned 16th September 2012) Sirmad Shafique (resigned as Treasurer 9th February 2012) Radha Vyas (appointed 8th December 2011)

Company registration number:

7005335

Auditors:
Crowe Clark Whitehill LLP St Brides House 10 Salisbury Place London EC4Y 8EH

Solicitors:
Bates Wells and Braithwaite 2-6 Cannon Street London EC4M 6YH

Company Secretary:
Katie Ford (resigned 16th March 2012) Firoz Patel

Bankers:
National Westminster Bank 2nd Floor, Argyll House 246 Regent Street London W1B 3PB

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Structure
Legal structure
The charity was incorporated as a company limited by guarantee on 1st September 2009, receiving the assets and liabilities of an unincorporated trust, Childreach International, on 1st November 2009. The charity is governed by its Memorandum and Articles of Association.

Key personnel
The Chief Executive Officer and senior management are responsible for the day-to-day management of the organisation. The Chief Executive Officer is accountable to the Board of Trustees and oversees the daily activities of senior management, staff and volunteers in the implementation of the policies laid down by the Board of Trustees.

Board of trustees
The governance of Childreach International is the responsibility of the Board of Trustees. The Board of Trustees focus is primarily on strategic planning and governance which includes: measuring strategic results achieved by management, satisfying the regulatory requirements of the charity and fulfilling the Board of Trustees responsibilities to all interested parties.

Trading subsidiaries
Charity Expeditions Limited (formerly known as Childreach International (UK) Limited) is a trading subsidiary of the charity which has not actively traded in the year. In the prior year it supported the fundraising activities of Childreach International through the recruitment of participants for challenge events but this activity has since been transferred to the charity. Climateplus Limited is a wholly owned subsidiary incorporated in February 2011; it was dormant during the year and at the time of signing these financial statements. The charity and its subsidiaries are collectively known as the Group. The assets, liabilities and trading results of the companies are incorporated in the consolidated Financial Statements.

Recruitment and appointment of trustees

Members of the Board of Trustees devote their time voluntarily. When appointing Trustees, emphasis is placed on the diversity of skills, knowledge and experience that is required for the Board to be effective given the current operating climate. Nominations for potential Board members come from various sources and the process may include personal approaches to potential candidates. Childreach International has a formal selection process, which is documented in the Trustees handbook.

Auditors
Crowe Clark Whitehill were re-appointed auditors during the year.

Induction and training of trustees

The induction process for new Trustees includes an explanation of the functions of the Board of Trustees and could include appointing a mentor from within the Board for the new member. A full overview of the organisation and its activities is provided and the contributions the new member will be able to make are explored. Trustees are given a welcome pack which includes a copy of the Memorandum and Articles of Association, Financial Statements, copy of board minutes and a copy of the Charity Commission guidance, The Essential Trustee, as well as recent publications. Childreach International encourages ongoing training to fulfil the development needs of the Trustees. This is achieved by encouraging Trustees to identify training needs, and by providing training in new or emerging areas of responsibility. Training is treated as an essential and regular Board activity, ensuring it is professional, appropriate and evaluated.

Organisational structure
Childreach International operates through a global network of implementing partners and locally registered, independent, Childreach International affiliates. They liaise closely with Childreach International in the UK within a formal reporting and monitoring framework that ensures all offices work towards the same core strategic objectives. Our working relationship with affiliates and implementing partners ensures the appropriate utilisation of funds provided for our programmes. As all affiliate offices are separate independent legal entities in their own jurisdictions and regulations, their results are not included within these accounts.

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How we work

Public benefit
The Trustees confirm that they have referred to the Charity Commissions guidance on public benefit when reviewing Childreach Internationals aims and objectives and in planning activities and setting policies for the year ahead.

Through Childreach Internationals UK programmes, designed to educate young people and connect them with global issues that they can positively change

Using both partner and affiliate organisations helps us utilise local knowledge effectively and assists in our educational work. Cooperation with existing local government agencies and other organisations is essential when implementing efficient development strategies. In Pakistan, Tanzania, India and Nepal, Childreach International affiliates work with local governments in regions and communities which have been overlooked by many of these other organisations.

Our programmes
Our programmes help us realise our vision. Each programme has its own overall objective, realised through pioneering grassroots projects which focus on improving health, education or child rights and protection. Guided by our underlying principle of community based development, they operate using two highly effective approaches; either through implementation by Childreach International, our affiliates, or through strategic partnerships with locally established NGOs and community based organisations.

Our affiliates
The inauguration of our partner international organisations has formed an integral part of our strategy to improve the reach and capacity of our work. The global organisation is represented by offices in Tanzania, Pakistan, India and Nepal that are run by national staff, overseen by Trustees from the local communities and governed by local legislation, so are independent from Childreach International. Childreach International has been able to exercise more precise monitoring and evaluation measures through its international affiliate organisations, ensuring the programmes and projects we support can adapt and develop to better meet the requirements of the local communities. We have been able to improve training and capacity building techniques within each office, extensively developing the skills and technical abilities of the staff in areas including finance, IT and programme management. Co-operation between our UK office and international offices utilises our collective strengths. Local staff speak local languages and dialects, understand the most pressing local needs and remain close to programme and project sites, enabling issues to be dealt with more quickly. UK staff provide assistance and support to local staff, bringing a wealth of policy expertise and international development project management.

How we work
Our charitable aims are put into practice by ensuring that all children in the areas we are working enjoy a minimum standard of nutrition, safe drinking water, sanitation, healthcare and the opportunity to go to school and to acquire the life skills to earn a secure livelihood. Where we work is decided by taking into account the following factors:

Data on relative levels of poverty for countries across the world Information from partners and affiliate organisations about areas not well served by other NGOs and international support Where our input is most effective Availability of local partners and their willingness and capabilities to work with us The degree of stability, safety and security in the area of operation

We deliver our charitable aims in three ways:

Through Childreach International affiliates in Tanzania, India, Nepal and Pakistan Through grant organisations making to partner

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Fundraising
We believe that fundraising is about more than just financial resources. Our revenue streams are designed to create active participation, not just donors. Our supporters are part of the process; from their initial financial input through to the implementation of our programmes. The methods we use are found throughout the charitable sector; however what makes us different is the manner in which we deliver our fundraising models. With Childreach International, fundraisers develop a sense of ownership of the work delivered on the ground. Futurebuilding and challenge events provide an income that is almost entirely comprised of unrestricted funding. Thousands of people participate and raise funds for us. However, effective training, inspiring leaders and life-changing expeditions turn these individuals into more than fundraisers. They also gain a life changing experience which will enable them to have a wider knowledge of the world and become advocates for international development and global change. Furthermore, through our carbon offsetting scheme, we also ensure that our fundraising programmes create responsible travellers and protect the environment. Childreach International is dedicated to accountability, best practice and the belief that fundraising is about engagement and awareness. Our success this year can be attributed not only to those who have given money, but also to those who have given their time.

Volunteers help
The Trustees extend their gratitude to all volunteers who assisted Childreach International in the UK and elsewhere in achieving its goals and objectives. We had over 1,200 (2011 800) fundraising volunteers as well as 20 (2011 20) office volunteers over the space of a year who contributed over 14,100 hours (2011 15,600 hours) of their valuable time. Childreach International considers volunteers as the heart and soul of its operations and relies upon them to be able to deliver its programmes.

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Governance and best practice

ATOL licensed
The Civil Aviation Authority require flight inclusive packages to be made under an Air Tour Operators Licence. All applicable Childreach International events are covered by ATOL bonding.

Safety first
Compliant or exceeding the British Standards for safe overseas adventures (BS8848) Risk management and duty of care are the number one issues to consider when taking groups on adventure challenges. The best practice or kite mark for safety is BS8848.

FRSB compliant
There are many laws and recommendations relating to fundraising. We make sure you know how to adhere to the highest standards of fundraising.

Fully insured for public and professional liability

Should the worst happen, you know we are covered against all eventualities

Risk management
The process of identifying risks and developing an ongoing programme to monitor and mitigate against them is undertaken and reviewed by senior management and the Board of Trustees. To fulfil our vision and mission effectively, to safeguard our staff and beneficiaries and to meet our obligation to our donors, risks are managed through the following mechanisms. All risks are recorded in a Risk Register which is presented to the board as a standing item. This ongoing programme incorporates all aspects of risk faced by the organisation relating to governance, operations, finances and external obligations.

Corporate governance
Internal control over all forms of commitment and expenditure continue to be refined to improve efficiency. Processes are in place to ensure that performance is monitored and that appropriate management information is reviewed. The systems of internal control are designed to provide reasonable but not absolute assurance against material mismanagement or loss. They include:

A strategic plan together with the annual operating plan and budgets approved by the Board of Trustees Regular analysis by the Board of Trustees of the results and variances from budgets Segregation of duties The identification and management of risks as outlined above

The current key strategic risks are considered to be: Harm to a young person served by one of our projects or participating in one of our events Damage to reputation and public confidence Sustainability of various income streams in order to deliver our strategic objective. The CEO and senior management are responsible for mitigating against these risks and reporting to the Board on measures taken to reduce exposure to risk.

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Operating assurance
Assurance is undertaken by in-country external audits, field visits by Childreach International staff and additionally by the finance function of Childreach International whose role it is to carry out a programme of regular risk-based cyclical audits within Childreach Internationals partners and affiliates. All reports are directly addressed to the Chief Executive Officer. These reports are reviewed and then passed onto the Board for inspection. The audit programme includes risk based audits of overseas projects and UK based functions.

Grant-making policies
Childreach International provides grants to organisations which meet the charitable objectives and criteria set by Childreach International. After initial screening, applications are reviewed by senior management. All grants are made on a one year funding cycle with organisations being invited to re-apply. Recipients of funding are subject to quarterly reviews before the next instalment of funding is given. This is to ensure that the agreed objectives have been met and that the finances are being adequately managed and controlled. Childreach International ensures that all grant applications are treated equally and fairly.

UK student fundraisers enjoy the view of the mountains as they cycle across the Himalayas on a Challenge Event.

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Financial Review
During the year, the Group raised over 4.4 million (2011 4 million) from the general public and grant-making bodies. The sustained rise in income was due to the wider engagement of young people with our overseas projects and events. Almost all of our income was unrestricted. We are very fortunate to be in this position and the Trustees intend to leverage these funds to pursue restricted income streams. The Charitys principal source of income is generated through Challenge Events, such as Climb Kilimanjaro for Kids, in Tanzania. About 45% of funds raised by participants go on the cost of the event, such as climbing the mountain, with all remaining fundraising income available to the charity. From the money available to the Charity from voluntary donations and net of the cost of Challenge Events, expenditure in this financial period was allocated as follows: For each 1 raised:

Reserves policy
Total fund balances were 326,912 at the end of the year (2011 100,002). Unrestricted reserves were 302,665 (2011 74,367). Restricted fund balances were 24,247 (2011 - 25,635).

Previously the Group was holding 50,000 as Designated Reserves, which was set aside from the main Unrestricted Reserves. This position has now been reviewed and agreed that it is more appropriate that the Unrestricted Reserves should be sufficient to cover any committed future project funding and to ensure there is sufficient funds to meet three months operating expenditure. As at 31st August 2012 this sum is 225,000 out of the total unrestricted reserves of 302,000.

Financial Position
Since the end of the financial year we have seen little change in the economic environment and the signs are that the number of fundraising volunteers will be reduced in the 2012/13 financial year, with a corresponding reduction in income. It is likely that there will be a shortfall in net income for the year but the Trustees and senior management are confident that this can be covered by the unrestricted reserves in place. Measures have been taken to reduce expenditure which should result in a surplus again in the following financial year 2013/14.

7p

2 3p

towards charitable activities towards fundraising

7 0p

towards governance

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A mother, Nun, looks on to her healthy one month old baby, after receiving treatment from the maternal health centre in Cambodia.

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Trustees Responsibilities
The Trustees (who are also directors of Childreach International for the purposes of company law) are responsible for preparing the Trustees Annual Report and the Financial Statements in accordance with applicable laws and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group. These statements include the incoming resources and application of resources, including the income and expenditure of the charitable group for that period. In preparing these Financial Statements the Trustees are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities Statement of Recommended Practise (SORP); make judgments and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards 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 charitable company will continue in business The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the Financial Statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors

So far as the Trustees are aware there is no relevant audit information of which the Groups auditors are unaware. Additionally, the Trustees have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the companys auditors are aware of that information. The Trustees declare that they have approved the report and accounts. Signed on behalf of the Charitys Trustees

Victor Patterson Chairman

David Gray Treasurer

Date

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Independent Auditors Report

We have audited the financial statements of Childreach International for the year ended 31st August 2012 set out on pages 31 to 48. 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 charitable companys members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable companys 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 charitable company and the companys members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. 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 statements An 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 company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Trustees Annual Report to identify material inconsistencies with 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 statements In our opinion the financial statements: give a true and fair view of the state of the groups and the charitable companys affairs as at 31st August 2012 and of the groups 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. Opinion on other matters prescribed by the Companies Act 2006 In our opinion the information given in the Trustees Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

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Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: the parent charitable company has not kept adequate accounting records, or returns adequate for our audit have not been received from branches not visited by us; or the parent charitable company financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit

Naziar Hashemi Senior Statutory Auditor For and on behalf of Crowe Clark Whitehill LLP Statutory Auditor London

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