ANNUAL REPORT & ACCOUNTS 2014/2015

“Our impact and influence is not only reaching more children than ever before but starting to realise lasting sustainable change in the desperate situation children living on the streets face every day.”

Haydn Abbott, Chairman

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I am delighted to present you with the trustee report and accounts for 2014/15. This year marks our 20th Anniversary year and I am especially proud of our achievements over the year. Our impact and influence is not only reaching more children than ever before but starting to realise lasting sustainable change in the desperate situation children living on the streets face every day.

Here in the UK there have been calls for a national safety net for runaways and missing children for many years. Children who find themselves away from their homes or the care system are especially at risk of exploitation and limited services have created a postcode lottery for any child, at a time when they especially need care and protection.

Railway Children is fortunate to have strong links into the UK Rail Industry and we considered carefully how we could utilise this relationship to create a safety net for children at risk. The railway reaches into almost every community and therefore offers real potential in terms of reach.

Over the last year, in partnership with the British Transport Police we have created our Transport and Community Awareness Programme. The Initiative looks to offer training and awareness materials to help rail employees identify and make an intervention if they see a potentially vulnerable child or young person either on or around stations or onboard trains. We are currently in our pilot stage, but will be officially launching the programme alongside a plan for national implementation in the autumn of 2015.

Our work in India faces the constant challenge of reaching high numbers of children living on the streets. Given this challenge it’s important that our work focuses on high impact with a strong emphasis on the implementation of our change agenda. This focus has started to realise impressive results with over 276,000 children this year reached through our initiatives and interventions.

In East Africa children who live on the streets have often experienced high levels of violence in their families and their schools. When we reach them they are often traumatized and need intensive support to enable them to consider an alternative future. Over the year we have been able to help over 2,000 children and youth and for those where returning to their families has been possible, over 80% remain at home and in education 12 months after reintegration. Three years ago, when we piloted our intensive programme this figure was nearer to 50%. Our key learning is that a relational and emotional response, as well as economic support is needed to make a sustainable difference.

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

Haydn Abbott, Chairman

CHAIRMAN’SFOREWORD

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Our charitable spend for the year was £2.29m. Every £1 spent on fundraising produced £4.04 to support our future work.

3,525

1,268vulnerable children provided with safe places to stay

children reintegrated with their families

● Corporates £1,281k● Individuals £1,438k● Grants £823k● Interest £18k

● Fundraising £882k● Outreach £797k● Reintegration £736k● Shelter £555k● Influencing £200k● Governance £84k

Where our money comes from

How our money is spent

OUR FINANCIAL YEAR IN NUMBERS

265,000

29,579

10,490young people supported through our outreach activities

UK children engaged through preventative education

Indicative number of children contacted and protected at Indian railway stations

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INTRODUCTION

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’.

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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 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 BENEFITThe 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.

PRINCIPAL ACTIVITIESIn 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 our activities around:

AIMS & OBJECTIVES

1. ensuring the needs of individual children are met;

2. ensuring communities work to protect children; and

3. 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.

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EAST AFRICAspotlight on:

children and youth have been contacted through street based outreach work, including 72 associations in Nairobi, Kitale and Mwanza each with an average of 20 youth.

2,098

children have accessed shelter facilities, receiving food, medical services and opportunities for family reunification.

684

children accessing shelter facilities have been successfully reunified with their families.

378

families engaged in Bio-Intensive Agriculture and small businesses.

112

families engaged in family therapy to build relationships within the family.

138

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Aims for the future:east africa

Aim 01Enable effective contact, support and protection for children and youth on the streets, ensuring; we increase our ability to contact children on the street effectively across the programme in two, five and ten day time periods; we are also able to support 500 more homeless youth to gain sustainable income.

Aim 02Incidences of children experiencing violence and abuse on the streets are reduced in the bus stands of Mwanza by 10% during the year, from a baseline of 69% and a programme to expand this work into Kitale is developed throughout 15/16.

Aim 03Enable comprehensive family and community support structures for reintegrated children and for those at risk of going to the streets, ensuring that at least 80% of children continue to remain at home and in education 12 months after reintegration; and develop a series of training modules that enables us to encourage others to adopt intensive family support programmes.

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Aim 01Enable 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.

AchievedLast year we contacted 2,098 children and youth on the streets across the region. Getting to children on the streets before the streets get to them and preventing the risks of violence and abuse is not easy to do across an entire city and until now we are only able to measure this progress in Mwanza. Despite a more systematic street work programme across the city and a more pro-active presence at bus stands, our success in reaching children within two days has been reduced to 8%. To understand why this is we will measure a greater range of timespans before contact to understand how quickly contact does take place. We will also carry out baselines of how successful we are in Kitale in Kenya. Of the 1,493 youths from the street that we have supported in the programme this year, approximately 80% have reported improved life skills and 315 now have some secure accommodation and a reliable income.

Aim 02A 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 in to other cities in the region beyond 2014/15.

AchievedThe stakeholder analysis and mapping exercise was carried out in Mwanza. We are now developing an action plan to roll out an influencing and awareness programme in the two bus stations of Mwanza. This work will be repeated in Kitale throughout the coming year.

Aim 03Enable 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.

AchievedLast year we reintegrated 378 children from the streets with their families across the programme, and supported their families to improve the lives of at least another 1,000 children that were living in their homes. We have achieved our target of more than 80% of children remaining at home and in school which is a significant improvement given that just three years ago the figure was nearer 50%. Experience tells us that when a child is compelled to try and survive on the streets of any city it is a strong indication of serious breakdown in the family. Our response is to first understand what the issues are in the family home, then provide the support to address those issues. We have learnt that this often requires a relational and emotional response as well as economic support, even in the most impoverished families in East Africa. This coming year we will continue to develop our intensive family support packages and create a training programme so that we are better placed to influence others and support them to adopt more effective reintegration programmes.

achievements:east africa

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COET, MWANZA, TANZANIATotal support 2014-15 £52,689 Unrestricted designated funds 2015-16 £25,460The programme provides the resources needed to explore possibilities of children returning home to their families and communities. The girls centre has now received registration whilst the boys’ centre is still 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.

UPENDO DAIMA, MWANZA, TANZANIATotal support 2014-15 £16,521 Unrestricted designated funds 2015-16 £8,642Early 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, TANZANIATotal support 2014-15 £131,960 Unrestricted designated funds 2015-16 £35,747Railway 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.

MKOMBOZI, TANZANIATotal support 2014-15 £4,938 Unrestricted designated funds 2014-15 £20,000Provide 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, KENYATotal support 2014-15 £142,861 Unrestricted designated funds 2015-16 £35,000Provide 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, KENYATotal support 2014-15 £150,209 Unrestricted designated funds 2015-16 £20,000 Creating 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 2014/15 WE HAVE ACHIEVED THE FOLLOWING:

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INDIA

children have been successfully reunified with their families; 1,412 children remain at home, of whom 859 are in education and 131 are in employment.

2,811

spotlight on:

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7,897children have been contacted and supported through outreach work at railway stations and at Government Homes across eight states.

540children have been referred to long stay homes.

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Aims for the future:india

Aim 0117 partnerships protect and support 8,300 children as a result of which 3,400 children will be reunified with their families, and a further 1,000, for whom reunification is not a suitable option, will be referred to long-term care.

Aim 01Five 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 01Indian railways and District administration of four districts will be responsive to child protection issues, indirectly supporting 261,750 children by May 2016.

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Aim 0112 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.

Achieved7,897 children were contacted and protected from abuse and exploitation. Of these 5,490 children have accessed the services of drop in centres, an increase of 31% on last year. 2,811 children (36%) have been reunited with their respective families and a further 540 children have been referred to long care home where returning to family was not possible. The gap in planned and achieved numbers for total children contacted is a result of our focus on increasing the quality of work with every child, thereby increasing the possibilities of rehabilitation.

1,721 of 2,811 reunified children were followed up and as a result 1,412 children (82%) were found to be at home, with 859 back in education and 131 in employment. Families of 213 children could not be contacted.

We continued our support of partners through a knowledge sharing workshop on family reunification and reintegration and a forum for outreach workers, designed to support increased efficiency of project worker’s engagement with children. Our work with two new partners in the south commenced in March increasing our local partnerships to 14. We delivered customised training to five partners including child protection, outreach and counselling, advocacy, team building and awareness of the recently revised Standard Operating Procedures approved by Indian Railways.

Aim 02Three 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.

AchievedPosters with child protection messages and contact numbers of police and child care workers have been displayed at three railway stations.

Our advocacy work with the district and railway division in Chandauli, Madurai, Salem, Villupuram, Chennai and Aligarh has been extensively covered by local media.

Our annual report for 2013-14 has been circulated to more than 200 stakeholders in government and non-government organisations.

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

AchievedTraining Railway Protection Force4,422 officers have been trained in child protection and Indian Railways Standard Operating Procedures, at six Railway Protection Force (RPF) training institutes. Based on the assumption that one trained officer can protect 10 children in a month, these trainees can potentially protect 265,320 children in a six month period. In Chandauli, Uttar Pradesh, 1,609 members of village Child Protection Committees were trained in child rights and protection and as a result 700 sponsorship forms have been submitted to support vulnerable families’ access government welfare schemes.

Child Friendly stations- 22 station-based child protection committees were created, with two Child Assistance Centres activated in the South.

- Railway Children supported UNICEF and the State Commission for the Protection of Child Rights, Assam to sign an agreement for transforming Guwahati station in to a child friendly space, where around 2,500 children arrive every year.

achievements:india

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SARVO PRAYAS, BIHARTotal support 2014-15 £13,003 Unrestricted designated funds 2015-16 £35,294– Outreach at Darbanga station and shelter for rehabilitation of children

– Family reunification and reintegration programme including school enrolment campaign

SATHI, DELHITotal support 2014-15 £30,896 Unrestricted designated funds 2015-16 £18,991Identifying and co-ordinating opportunities to reunify children from Government children’s homes with their families

SCOPE, TAMIL NADUTotal support 2014-15 £12,488 Unrestricted designated funds 2015-16 £32,101– Outreach at Villupuram station and shelter for rehabilitation of children.

– Family reunification and reintegration programme

TISS FIELD ACTION PROGRAMMETotal support 2014-15 £14,662 Unrestricted designated funds 2015-16 £17,699Field work studying the application of the Juvenile Justice Act and how it impacts children who come into conflict with the law

BAL SAKHA, PATNA, BIHARTotal support 2014-15 £11,420– 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 NADUTotal support 2014-15 £14,043Unrestricted designated funds 2015-16 £20,384Support 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 BENGALTotal support 2014-15 £37,319Unrestricted designated funds 2015-16 £18,223– 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 BENGALTotal support 2014-15 £42,635Unrestricted designated funds 2015-16 £24,872– 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, MUMBAITotal support 2014-15 £21,065Unrestricted designated funds 2015-16 £24,274– Outreach and home placement programme

– Work at government homes in Mumbai

DON BOSCO, HOWRAH, WEST BENGALTotal support in 2014-15 £24,580 Unrestricted designated funds 2015-16 £28,755– Outreach and emergency shelters – Child Assistance Booth at station

– Advocacy with local government

EHSAAS, LUCKNOW, UTTAR PRADESHTotal support 2014-15 £39,799 Unrestricted designated funds 2015-16 £43,529– Outreach and emergency shelter at Lucknow station and Kanpur

– Home Placement programme– Development of a child protection cell at the railway station

GRASIM, ANDHRA PRADESHTotal support 2014-15 £19,162 Unrestricted designated funds 2015-16 £22,235– Outreach at Tirupati, Tirumala and Renigunta railway stations

– Child Assistance Booth at Tirupati

– Reunification programme

JEEVODAYA, ITARSI, MADHYA PRADESHTotal support 2014-15 £63,681 Unrestricted designated funds 2015-16 £73,368– 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 BENGALTotal support 2014-15 £27,133 Unrestricted designated funds 2015-16 £25,881– Outreach work to platform children at 12 stations on the line from Kolkata to New Jalpaiguri and supporting shelters at three of these stations

– Home placement programme– Training and sensitisation of RPF at the RPF

– Training Institute at Kharagpur

RSEEDS, TAMIL NADUTotal support 2014-15 £12,454 Unrestricted designated funds 2015-16 £32,101– Outreach at Katpadi station and shelter for rehabilitation of children

– Family reunification and reintegration programme

WORKING WITH OUR PARTNERS IN INDIA DURING 2014/15 WE HAVE ACHIEVED THE FOLLOWING:

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UNITEDKINGDOM

spotlight on:

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children have been engaged through a preventative education project.

29,579

children have been contacted and supported through street based outreach work.

495families have received support.

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children have received support through emergency accommodation and safe places.

44children have received extensive one to one support.

105

children have received Return Home Interviews.

336

children contacted local helplines.

121

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Aims for the future

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Aim 01Through a range of interventions in three regional areas, we will support services before, during and after incidences of running away in order to reduce risk and develop positive solutions to the issues affecting vulnerable children – all initiatives will have referral routes established with the British Transport Police (BTP).

Aim 02In Partnership with the BTP and other Rail Operators a Safeguarding programme (TCAP) will be created and delivered, to ensure support and safety to children and young people on and around railway stations.

Aim 03We will use the evidence gathered through our portfolio of work to articulate the changes needed in National Guidance, Forums and policies that affect children away from home or the care system.

achievements:united kingdom

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

Achieved:In line with the ‘Reaching Safe Places’ research we have continued to develop work with 16/17 year olds, who are often neglected by the law and slip through the safeguarding net. We have supported New Horizons, our long-term partner, to increase their capacity to provide targeted one-to-one work with vulnerable 16/17 year olds that present or are referred to the project.

New work is being developed in Croydon, an area with a higher proportion of runaways and sexually exploited young people than any London borough, ‘Safer London’ will provide one-to-one work, family intervention for children who run away and are at risk. This work will tie in with initiatives by the local authority, the NSPCC and work we are planning to begin with the British Transport Police (BTP) to increase opportunities to safeguard and protect.All our interventions have referral routes with the BTP linked with an awareness programme which builds upon our initial Reach model that has elements of engagement before, during and after incidents of running, missing or being around the streets.

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.

Achieved:Following evidence given to the Transport Select Committee a meeting took place with the Minister of State for Transport. Three areas of development to safeguard children and young people on the railways were identified: 1) emergency accommodation 2) safeguarding awareness 3) public communications.

We facilitated three themed groups leading to the creation of the Transport Community Awareness Programme (TCAP) in partnership with the police and a number of leading children’s charities. TCAP, which was piloted in July 2015, is a safeguarding package for Train Operating Companies (TOC) and other rail stakeholders which encourages people to respond if they are aware of vulnerable children and youth. Alongside the training package the initiative

will supply materials to use on rail concourses to signpost children and young people to useful helplines. A feasibility study is also underway to develop an emergency accommodation solution for children receiving an intervention.

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.

Achieved:In December 2014 the ‘Reaching Safe Places’ research was launched, which explores the different journeys young people take when running away and the key opportunities for services to intervene effectively. The research called for better safeguarding of older teenagers, effective return home interventions and family support and recognition of the important role of youth services and schools in preventing crises.

The research team included young people with relevant experience of the issue, who designed and delivered the peer element, and subsequently won the Independent Academic Research Studies Youth Research Award. The research has been presented at a number of regional, national and international seminars and conferences to safeguarding professionals, academics and policy-makers.

As part of the TCAP engagement we have been working in partnership with the British Transport Police (BTP) to improve processes. Through engaging a consultant to work with all of the parties we have supported an improvement in data collection, a risk assessment approach when engaging with children and young people and agreed a programme of work for the coming year.

Our engagement continues with the Strategic oversight group which includes representatives of the Home Office and Police, to advocate for children and young people who run away or are at risk and The English Coalition For Runaway Children, bringing together charities and projects to explore practice and develop joint campaigns.

Utilising learning from our partners, both in the North of England and London, we have given evidence on the needs of vulnerable young people at a number of national meetings including The All Parliamentary Group on runaways and missing adults.

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WORKING WITH OUR PARTNERS IN THE UNITED KINGDOM DURING 2014/15 WE HAVE ACHIEVED THE FOLLOWING:

MISS U, LONDONTotal support 2014-15 £41,663Consortium approach to assisting children and young people at risk on the streets of Islington, Camden and Haringey through preventative work, 1-2-1 work and return home interviews.

NEW HORIZONS, LONDONTotal support 2014-15 £52,444Detached 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, SHEFFIELDTotal support 2014-15 £139,577REACH 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.

DEPAUL NIGHTSTOP, NEWCASTLETotal support 2014-15 £9,743 Unrestricted designated funds £50,000Working with DePaul to look at the feasibility of extending the Nightstop service to young people who are under 16. Nightstop provides safe emergency accommodation for young people in the homes of approved volunteer hosts.

ACTION FOR CHILDREN, LIVERPOOLTotal support 2014-15 £52,237 Unrestricted designated funds £150,000Liverpool Young Runaways project developing a response to young people who are missing or running away in the city.

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Aims for the Future: communications & influencing

Aim 01We will equip the marketing department with the in-house skills and capabilities to deliver outstanding marketing materials. Reviewing and developing our tone of voice, we will create a strong point of differentiation which sets us apart from other organisations within the sector and we will ensure our brand values are brought to the fore of our communications with all stakeholders.

Aim 02Provide creative and professional multi-channel marketing support, to support the fundraising team to achieve their target of £3.2m in 2015/16 and develop annual, integrated plans for each income stream.

Aim 03Provide training and development, to further support our programme teams to influence their key stakeholders. Delivering a strong, consistent and professional brand that reflects a sector leading organisation, we will provide targeted communications and channels to support their operations at all three levels of our change agenda.

achievements:communications & influencing

Aim 01To support our work at stage two and three of our change agenda, we will 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 the correct adoption of the brand in the future.

AchievedFollowing training and brand workshops, the India operation has begun delivering high quality branded literature with support from a local agency appointed in consultation with the UK team. Support will continue to build team capacity and full adoption of the brand.

Work has also begun with the Africa team to construct an annual communications plan and will be followed up with training and communications workshops similar to those undertaken in India.

Communications working groups now meet monthly to maintain and monitor progress and a brand hub has been established to provide staff and external agencies with resources.

Aim 02We 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.

AchievedThe marketing and fundraising teams have established an annual programme of communications. By integrating all marketing channels to broaden reach and concentration, the team raised £3.56m this year.

Aim 03We 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.

AchievedThe new website was introduced providing increased flexibility and impact, removing the need for support from external agencies and providing a cost saving. The digital capabilities have enabled us to support offline marketing activities with more thorough, intelligent online content. The digital development plan is in place and we will continue to refine our online capabilities.

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INCOMEThe total incoming funds for the year reached £3,558,855; this represents an 18% increase on the previous year’s results. Unrestricted income grew by £623,312 (36.6%). The increase was largely attributed to the running of a Steam Special 20th Anniversary Train which raised £404,000 with receipts for this at the end of the financial year.

CHARITABLE ACTIVITIESThe total charitable expenditure delivered in the year decreased by £57,664. However, charitable expenditure still made up 70.3% (previous year 74.9%) of total expenditure. The unrestricted proportion of charitable expenditure rose by 8.7% on last year with restricted falling by 8.4%. Our geographically focused charitable activity divided between our Indian programme at 34% (previously 31%); our UK programme at 24% (previously 43%) and our East African programme at 41% (previously 26%). Our work in the year has focussed on achieving high impact enabling more children to be helped than our own resources would otherwise permit.

COST OF GENERATING FUNDSThe cost of Generating Funds accounted for 24.8% of our total income compared with 23.3% in the previous year. This was largely as a result of costs incurred in delivering the Steam Special.

GOVERNANCEGovernance accounts for 2.5% of our total expenditure, a marginal decrease on the previous year (2.8%). 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. The in kind legal assistance received is also included here.

FINANCIALRESULTS

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2014/15

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TRUSTEE RESPONSIBILITIES

As 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 and reserve levels.

– 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 amount of such guarantees at 31 May 2015 was £510 (2014 - £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.

TRUSTEE RECRUITMENT & APPOINTMENT

Under 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 thirteen. There is no set maximum number.

TRUSTEE INDUCTION & 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.

GOVERNANCE

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 (no. 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.

Railway Children India is a section 25 company registered in India with no transactions in the financial year, operations will begin in FY2015-16.

As 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’.

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

BraveryWe 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.

InnovationWe 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.

EffectivenessOur 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.

STRUCTURE, GOVERNANCE & MANAGEMENT

OUR VISION

OUR BELIEFS

32 3332 33

The Trustees, who are also directors of Railway Children for the purposes of company law, are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law 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 and the incoming resources and application of resources, including the income and expenditure, of the charitable company / 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 SORP;

– make judgments and accounting 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 operation.

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 group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

In so far as the Trustees are aware:

– There is no relevant audit information of which the charitable company’s auditors are unaware;

– The Trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

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.

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 companies subject to the small companies’ regime.

By order of the Trustees:

Haydn Abbott, Chairman of the Board.11th September 2015

AUDITORS

RISKS

The Trustees and senior staff have produced a comprehensive business 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 2014-15 identified by this process was securing sustainable income to maintain our planned programmes.

RESERVES

The Board of Trustees reviews the charity’s reserves policy annually.

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. Our target reserve is based upon the level required to enable the following year’s programme to be funded and close at the guideline reserve level and is expressed as the opening reserve position for the following year’s budget.

The reserve levels for FY2014-15 were a minimum reserve level of £350,000 with a target reserve to fund the FY2015-16 programme of £980,000.

The closing unrestricted reserve for the year was £1,419,949 which was £439,949 above the target level. £404,000 of this income was contributed by the running on 4th June 2015 of a special steam train to celebrate the 20th anniversary of Railway Children. As this event carried significant fundraising risk and income receipts were scheduled for the very end of the financial year, it was deemed prudent to only commit expenditure once the success of the event was assured and to keep funds in reserve at the year end. The high closing reserve has therefore been used to underpin our programme of work in FY 2015-16 whilst new grants are sought to replace those that have ended.

Of the unrestricted reserve £762,556 is 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 19 of the accounts.

STRUCTURE, GOVERNANCE & MANAGEMENT CONT.

34 3534 35

OPINION ON FINANCIAL STATEMENTS

In 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 2015, 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.

– 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 2006

In 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 EXCEPTION

We 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; 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; 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 auditor23rd September 2015 For and on behalf of Sayer Vincent LLP, Statutory Auditors

Invicta House, 108-114 Golden Lane London EC1Y 0TL

Sayer Vincent LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

We have audited the financial statements of Railway Children for the year ended 31 May 2015 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES & AUDITORS

As explained more fully in the statement of trustees’ responsibilities set out in the report of the trustees (previous page), 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 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 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. In addition, we read all the financial and non-financial information in the report of the trustees to identify material inconsistencies with the audited 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. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

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

36 3736 37

Notes Group 2015 £

Group 2014 £

Charity 2015 £

Charity 2014 £

Fixed Assets Tangible Assets 9 20,365 16,312 20,365 16,312Investment in Railway Children Trading Limited

– – 100 100

Current Assets Debtors & Prepayments 14 210,270 33,335 452,489 103,234Short Term Deposits 1,546,532 1,547,895 1,549,534 1,547,895Cash at Bank & in Hand 595,893 400,612 296,941 330,329

2,355,695 1,981,842 2,298,964 1,981,458

Current Liabilities Amounts Falling Due within One Year 15 (177,645) (105,682) (121,014) (105,398)

Net Current Assets 2,178,050 1,876,160 2,177,950 1,876,060

Net Assets 16 2,198,415 1,892,472 2,198,415 1,892,472

Funds Unrestricted Free Reserve 657,393 637,713 657,393 637,713Unrestricted Designated Reserve 762,556 314,335 762,556 314,335Restricted 806,726 955,387 86,726 955,387Restricted Funds in Deficit (28,260) (14,963) (28,260) (14,963)

Total Funds 19 2,198,415 1,892,472 2,198,415 1,892,472

As at 31 May 2015

The financial statement of Railway Children, registered number 03265496, were approved by the Board of Trustees on 11th September 2015 and signed on its behalf by:

Haydn AbbottChairman of the Board

Rosemary DayHonorary Treasurer

CONSOLIDATED AND PARENT BALANCE SHEET

Incoming Resources Notes RestrictedFunds 2015

£

UnrestrictedFunds 2015

£

Total Funds 2015

£

Total Funds 2014

£— Incoming resources from generated funds Voluntary Income 2 426,956 1,374,375 1,801,331 1,670,402Activities for Generating Funds 12,376 904,606 916,982 447,104Investment Income 3 5,335 12,578 17,913 29,890

Grants received 789,079 33,550 822,629 860,646

Total Incoming Resources 1,233,746 2,325,109 3,558,855 3,008,042

Resources Expended Cost of Generating Funds 881,519 881,519 699,762Charitable Activities 1,395,704 892,076 2,287,780 2,345,444Governance Costs 83,613 83,613 86,682

Total Resources Expended 4 1,395,704 1,857,208 3,252,912 3,131,888

Net Movement of Funds in the year (161,958) 467,901 305,943 (123,846)

Funds at the start of the year 19 940,424 952,048 1,892,472 2,016,318

Total funds carried forward 778,466 1,419,949 2,198,415 1,892,472

(incorporating Income & Expenditure Account)For the year ended 31 May 2015

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

38 3938 39

CHARITABLE EXPENDITURE

Charitable 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.

ALLOCATION OF OPERATING COSTS

The 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 ASSETS

The 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 STRUCTURES

Unrestricted 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 CURRENCY

Transactions 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.

INVESTMENTS

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

PENSIONS

The 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.

UK support staff percentages

CEO Marketing & Comms

Finance & Admin

Charitable 33% 60% 34%COGF 33% 40% 44%Governance 34% - 22%

100% 100% 100%

Other costs DepreciationCharitable 40% 44%COGF 58% 50%Governance 2% 6%

100% 100%

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 CONSOLIDATION

The 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 STATEMENT

The 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 RESOURCES

All 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 & FACILITIES

Assets 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.

DONATIONS

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

GRANTS RECEIVED

Grants are recognised when the conditions of entitlement are met.

Notes to the financial statements

01 ACCOUNTING POLICIES

40 4140 41

05. GRANTS PAID

06. STAFF COSTS

Grants paid by region and country Outreach2015

£

Shelter2015

£

Reintegration2015

£

Funds2015

£

Total2014

£UK 124,242 51,891 119,531 295,664 441,244

IndiaNorth 38,105 28,246 28,767 95,118 157,068West and Central 31,874 36,935 30,599 99,408 120,662East 47,926 79,365 34,228 161,519 168,318South 25,050 19,482 13,615 58,147 45,704

East AfricaKenya 109,097 98,909 85,064 293,070 259,322Tanzania 85,268 6,787 114,053 206,108 245,138

461,562 321,615 425,857 1,209,034 1,437,456

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.

2015£

2014£

Wages and salaries 716,996 674,241National Insurance 73,432 71,365Pension costs 31,051 30,306

821,479 775,912

The total number of UK employees (FTE) was: 2015 2014

Project development 7.2 7.0Fundraising 6.2 6.5Support and administration 4.2 3.5UK staff subtotal 17.6 17.0

East Africa programme staff 21.0 4.0India programme staff 11.0 13.0

Total staff 49.6 34.0

Information regarding employees and trustees

– The 2015 figure averaged 47 full-time (2014: 32) and seven part-time paid (2014: 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 (2014: one) and one employee had emoluments in the range £60,000-£69,999 (2014: one). Pensions contributions for staff paid £60,000 or more were £7,666 (2014: £7,444).

Restricted Funds 2015

£

Unrestricted Funds 2015

£

Total Funds2015

£

Total Funds2014

£Individual Donations: General 90,371 230,448 320,819 308,363Regular Givers 4,058 195,773 199,831 199,277Corporate Donations 332,527 843,846 1,176,373 1,082,576Gifts in Kind – 104,308 104,308 80,186

426,956 1,374,375 1,801,331 1,670,402

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

£

2015Total

£

2014Total

£Grants payable (see note 5) 1,209,034 – – – 1,209,034 1,437,456UK Staff 230,963 263,402 – 327,114 821,479 775,912Overseas Staff 191,475 – – – 191,475 166,675Office & Supplies 51,858 – – 70,749 122,607 80,990Services 182,818 283,704 13,780 9,795 490,097 294,343Travel & Accommodation 79,884 13,966 868 2,785 97,503 81,235Other 86,973 91,347 – 30,330 208,650 209,170Depreciation – – – 7,759 7,759 5,921Gifts in Kind 35,008 34,195 35,105 – 104,308 80,186

Sub total 2,068,013 686,614 49,753 448,532 3,252,912 3,131,888

Support costs 219,767 194,905 33,860 (448,532) – –

Total 2,287,780 881,519 83,613 – 3,252,912 3,131,888

04. TOTAL RESOURCES EXPENDED

Notes to the financial statements

42 4342 43

Sales & Promotion Equipment

£

Office Equipment

& Furniture £

India Office

Equipment £

Total

£ Cost At beginning of year 1,169 61,053 5,753 67,975Additions in year – 11,814 – 11,814Disposals – (10,909) – (10,909)

At close of year 1,169 61,958 5,753 68,880

Depreciation At beginning of year 1,169 44,741 5,753 51,663Change for year – 7,761 – 7,761Disposals – (10,909) – (10,909)

At close of year 1,169 41,593 5,753 48,515

Net Book Value Group and charity at close of year – 20,365 – 20,365

Group and charity at beginning of year – 16,312 – 13,312

09. TANGIBLE FIXED ASSETS (Group and Charity)

2015£

2014£

Turnover 430,652 25,838Expenditure (149,740) (13,221)Use of Railway Children logo (1,000) (1,000)Use of Railway Children staff (9,314) (5,000)Trading profit / (loss) 270,598 6,617Loan interest paid to Railway Children (221) (50)Profit donated to Railway Children (270,377) (6,567)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. During the year a ‘Steam Special’ raised £403,000 of income as well as Christmas cards and other activities that contributed £26,952.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

2015£

2014£

Operating lease rentals — Property 14,900 14,000— Other 1,592 1,592

Depreciation 7,761 5,921

Auditors remuneration — Audit 9,000 8,940— Audit accrual adjustment (1,460) 1,060— Audit disbursement 1,500 1,500

Trustees remuneration — —Trustee expenses 4,639 1,065Of which Trustees reimbursed expenses 617 823

07. NET INCOMING RESOURCES FOR THE YEAR

This is stated after charging:

2015£

2013£

Less than one year — 14,0002-5 years 16,356 1,156

16,356 15,156

08. OPERATING LEASE COMMITMENTS

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

Notes to the financial statements

Trustee expenses represents the reimbursed travel and expenses of one (2014:two) Trustee attending meetings.

44 4544 45

Consolidated2015

£

Consolidated2014

£

Charity 2015

£

Charity2013

£ Creditors 104,984 24,631 51,269 24,592Tax and national insurance 15,974 17,629 15,974 17,629Accrued Expenditure 56,687 63,422 53,771 63,177Total 177,645 105,682 121,014 105,398

RestrictedFunds

£

DesignatedFunds

£

General Funds

£

TotalFunds

£Tangible fixed assets – – 20,365 20,365Net current assets 778,466 762,556 637,028 2,178,050

Net assets at the end of the year 778,466 762,556 657,393 2,198,415

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 £410,020 (2014: 409,628).

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 2015 was £5,171 (2014: £6,508). This bank account does not form part of these consolidated accounts.

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 £2,772,847 (2014: £2,982,206) and the net retained income for the year is £39,593 (2014: deficit of £123,846)

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.

2015£

2014£

Turnover 365,892 310,463Expenditure (365,892) (310,463)Net assets carried forward at May 31st - -

12. RAILWAY CHILDREN AFRICA

Consolidated 2015

£

Consolidated2014

£

Charity 2015

£

Charity2014

£

Debtors 175,916 — 29,079 —Gift aid debtor 14,934 £15,281 14,934 15,281Other debtors – 4,675 – 4,222Prepayments 19,399 13,379 19,399 13,379Railway Children Africa - owed to charity 21 — 108,345 55,136Railway Children Trading Ltd - owed to charity – — 280,732 15,216Total 210,270 33,335 452,489 103,234

14. DEBTORS AND PREPAYMENTS

Notes to the financial statements

46 4746 47

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.

DfIDThese funds relate to the assistance of street children in Mwanza in Tanzania

Comic Relief 1, NH & AE and TsunamiThese funds are unspent from previous projects and have now been returned to Comic Relief.

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

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

Comic Relief 6Restricted for the assistance of street children and youth in Nairobi and Kisumu

Comic Relief 7Restricted for the assistance of street children in Murshidabad, West Bengal

AvivaThese 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, KenyaRestricted for the assistance of street children and youth in Kitale, 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.

Restricted Funds

Balance at Start of

Period £

Movement in Resources Incoming

£

Movement in ResourcesOutgoing

£

Balance at Close of

Period £

Region Funder

East Africa DfID 17,251 211,390 228,379 262

Other funders 84,849 82,063 120,666 46,246

India Comic Relief 1 4,146 (4,146) – –

Comic Relief NH & AE 7,245 (7,245) – –

Comic Relief Tsunami 10,631 (10,631) – –

Comic Relief 3 177,176 5,335 182,511 –

Comic Relief 5 33,293 174,353 170,636 37,010

Other funders 76,546 147,036 88,817 134,765

UK Aviva 494,128 329,497 271,516 552,109

Other UK 27,918 35,002 26,586 36,334

Total Restricted Funds 933,183 962,654 1,089,111 806,726

Restricted Fund in deficit

BLF – Kenya (14,963) 117,619 121,210 (18,554)

Comic Relief 7 – India – 30,242 30,702 (460)

Comic Relief 6 – Kenya 22,204 123,231 154,681 (9,246)

7,241 271,092 306,593 28,260

Unrestricted Funds

Designated Funds

India 181,252 417,707 181,252 417,707

UK 65,000 144,849 65,000 144,849

East Africa 68,083 200,000 68,083 200,000

Total Designated Funds 314,335 762,556 314,335 762,556

General Funds 637,713 1,562,553 1,542,873 657,393

Total Unrestricted Funds 952,048 2,325,109 1,857,208 1,419,949

Total Funds 1,892,472 3,558,855 3,252,912 2,198,415

19. MOVEMENT IN FUNDS

Notes to the financial statements

50