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CONTENTS

ANNUAL REPORT

2016

REPORTOF THE

TRUSTEES

Message from the Chair 4

Report of the Trustees 5 Fundraising 6 Direct Public Support 6 Our Fundraisers 7 Corporate Partnerships 8 BBC Programmes and Events 10 The Difference We Make 12 Grant Making Policy 12 Our Investment in Children 12

3

FINANCIALSTATEMENTS

Financial Review 18

Future Plans 21

Structure, Governance and Management 22

Reference and Administrative Details 24

Statement of Trustees Responsibilities 25

Independent Auditors’ Report to the Trustees 26

Consolidated Statement of Financial Activities 28

Charity Statement of Financial Activities 29

Consolidated and Charity Balance Sheets 30

Consolidated Cash Flow Statement 31

Notes to the Financial Statements 32

4

The year ending June 2016 was a poignant one for the Charity. Whilst we have much to celebrate with a record-breaking total, it was also a very hard year for us as we lost our beloved Life President, Sir Terry Wogan.

Sir Terry was the heart of the Charity raising millions over the years to change the lives of disadvantaged young people. We will miss him terribly. But we are determined to build upon his incredible legacy and will continue to work hard to make a difference. There are children and young people out there who desperately need our help, and together, we can help change their lives.

Again we asked the Public to ‘Be a Hero’ and help raise money. And people came together in their thousands; putting on cake sales, putting on fancy dress, donating and buying Pudsey goodies. The Public’s generosity once again, knew no bounds.

The BBC supported in many wonderful ways; there was Radio 2’s fundraising, The One Show’s Rickshaw Challenge, Sir Tom Jones and Rob Brydon’s ‘One Big Night’ TV Show and the first ever Countryfile Ramble. The stations across the Nations and Regions threw themselves into fundraising and then there was the big show itself. Central to all of this were the stories of the young people. They inspired, motivated and galvanised everyone to support. They were the Heroes.

Our Corporate Partners across the UK once again got their colleagues and staff out in force, all for Pudsey.

And because of all of these thousands of moments of support, together everyone raised a phenomenal £57 million. Our highest ever total: thank you, thank you. Because of you, we are currently funding 2,454 projects to a total value of £130 million throughout the UK. We have continued to support children and families in crisis through our Emergency Essentials Programme and develop and deliver proactive programmes with great impact.

The success of the last year is also remarkable as it was achieved at a time of significant organisational change, with the movement of our Central Office from London to Salford and our Chief Executive of 10 years, David Ramsden making the decision to move on from the Charity.

The move to Salford is now complete and the Charity has a strong platform to pursue its ambitious strategy of increasing the impact on children and young people and putting that at the heart of everything we do. Our new Chief Executive Simon Antrobus joined us in November.

I would like to thank David for all he has done for the Charity in 10 years. Under David’s stewardship the Charity has transformed from a reactive grant-maker into a proactive fund-raiser, grant maker and leader of the children’s sector. He leaves a much strengthened organisation ready for the next phase of its evolution.

So a big thank you to everyone involved, for all that you did and all that you continue to do, we do not take it for granted and it would not be possible without you.

Stevie SpringChair of Trustees

Message from the Chair

5

Split of Income Received

Income analysis

2015 appeal

income £’000

Growth %

2015/16 follow on

£’000

2015/16 final

income £’000

Growth %

2014 appeal

income £’000

2014/15 follow on

£’000

2014/15 final

income £’000

Direct public support 11,105 -8% 14,973 26,078 -5% 12,009 15,328 27,337

Corporate partnerships 13,183 25% 3,450 16,633 64% 10,510 (356) 10,154

BBC programmes & events 12,813 27% 1,357 14,170 22% 10,101 1,539 11,640

Total income 37,101 14% 19,780 56,881 16% 32,620 16,511 49,131

Report of the Trustees

Brief HistoryChristmas Day 1927 saw the first BBC appeal for children. Over time, the Appeal has evolved and 1980 saw the first Children in Need telethon hosted by Terry Wogan, Sue Lawley and Esther Rantzen.

2015 was the telethon’s 36th appeal and has raised, to date, over £850m for disadvantaged children and young people right here in the UK.

Objectives & Activities The principal objective of the Charity as a public benefit entity is to bring about positive change in the lives of disadvantaged children and young people in the UK.

Our long-term vision is that every child has a safe, happy and secure childhood with the chance to reach their potential.

We achieve this vision via the following two core activities:

1 Delivering a fundraising campaign that encourages Public participation through a number of avenues and initiatives.

2 Awarding grants to projects in communities across the UK that are working to make a positive difference to the lives of children and young people.

In addition, we seek to raise awareness of the issues faced by disadvantaged children and young people across the UK, champion good practice in addressing such disadvantage; and seek both formal

and informal collaboration with similar organisations where that strengthens the beneficial impact on children and young people.

In this period there was an additional short-term objective to deliver a successful relocation from London to Salford.

The Trustees confirm that they have referred to the Charity Commission’s guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities and setting policies.

Strategic ReportThe Trustees have approved this strategic report which provides an analysis of the Charity’s performance, its financial position and an insight into the Charity’s objectives and the risks and uncertainties it faces. The report groups the headings of achievements and performance, financial review and future plans.

Achievements and PerformanceEach year, we set ourselves the objective of maximising the amount of income we raise to ensure that we have as much as possible to give to support disadvantaged children and young people in communities across the UK. This was a challenging year for the charity as we also had a significant shift in our key personnel. Our relocation to Salford triggered the departure of a number of long-standing employees (approximately 40% of the total) and we also lost our life president Sir Terry Wogan. This did create some difficulties and

all those affected were encouraged by Trustees to focus on the core deliverables.

As declared on the Appeal show televised in November 2015, we raised an initial amount totalling £37.1m which represented an increase of £4.5m (14%) on the previous year. This increase was driven primarily by increased support from our corporate partners (£2.7m) and from broader support across BBC programmes and events (£2.7m). This has been partically offset by a reduction in donations received directly from the public compared to the prior year reflecting changes in audience viewing patterns and a partial switch of public support into other ways of supporting the Charity. The Appeal night of 13th November 2015 was a challenging one as the tragic events in Paris unfolded during the live show and viewers understandably switched their attention elsewhere.

After the show, significant monies raised through public fundraising continued to flow into the Charity and direct support from the public totalled £26.0m across the year. With follow-on income across both corporate and BBC partners, our income across the remainder of the year totalled £19.8m, representing an increase of £3.3m on the year before.

We publicly announced a total of £55m in July 2016 and since that date recognised additional income bringing our final total to £56.9m. This represents an increase of £7.8m (16%) on 2014/15 and is our highest ever total over the life of the Charity.

The Trustees of BBC Children in Need (who are also the directors for the purposes of the Companies Act 2006) are pleased to present this, their report and accounts for the period ended 30 June 2016, and incorporating the Strategic Report and the Directors’ Report required under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013. The accounts have been prepared in accordance with the Statement of Recommended Practice – Charities SORP (FRS 102) issued by the Charities Commission in January 2015, applicable Accounting Standards in the United Kingdom, Companies Act 2006 and the requirements of the Charities Act 2011.

6

Schools Fundraising Partner Lloyds Banking Group is our unique Schools Fundraising Partner. Last year’s schools fundraising initiative helped children raise money for the Charity while developing new skills with the inaugural Champions of Change. Over 200 Lloyds colleagues supported local schools with their activities, and 15,500 schools and millions of children took part raising in total £5.6m.

One school that threw themselves into fundraising activities was Tarporley CE Primary School. The whole school took part in a sponsored ramble across the Cheshire countryside inspired by the BBC’s Countryfile programme. The classes paired up, got their walking boots on and hiked for roughly 3 miles across fields, over stiles and even managed to pick some juicy blackberries along the way. Teachers also got stuck into the fundraising and held a bake sale in the school playground for parents and pupils to enjoy. On Appeal Day the children also came to school dressed as Superheroes and took their fundraising efforts into the local community with donation buckets. In total, the school raised over £2,000 - an incredible feat!

Direct Public Support

Direct Public Support

BBC Programmes & Events 480,000 lives changed

Corporate Partnerships

22%

24%

48%6%

Legacies

Schools

Public Fundraising

Donations

Fundraising

7

Our fundraisers

Kat Buchanan raised more than £6,000 for BBC Children in Need after living on her roof for a week. Kat Buchanan, a mother of four from Nottinghamshire, tunes in to watch the BBC Children in Need Appeal Show every year. In 2014, she took on her first challenge to fundraise for the Charity and shaved her head, raising just over £1,000.

Then, in 2015, Kat announced that she would live on her roof for a week to raise money whilst shining a light on the plight of homeless children and young people around the UK. Armed with a mobile phone and radio, she stayed on the roof for the full week, braving wintry November nights and gale-force winds of storms Abigail and Barney. The response from family, friends and even some famous neighbours, was incredibly generous, allowing her to raise more than £6,000 for the Charity.

Seven-year-old Seth from Surrey raised over £500 picking litter to raise money.Seven year old Seth likes to pick up litter and recycle. He loves that it keeps his home village looking tidy, but he also finds it genuinely fun. In fact, for his birthday one year, he asked for a litter-pick. Last year, his parents told him he could make his hobby into a fundraiser to help other children and he couldn’t wait to get out and do his part. Dressed in Pudsey cape and mask, and armed with their pincers, Seth and his cousin, Charlie, set out for two hours on two days to do a sponsored street clean-up. The young boys were described as “Litter Heroes” in their local press, which earned them the attention and support of neighbours and helped them beat their original target of £50. Together, the boys raised over £500 to help children and young people around the UK. Speaking about the fundraising, Seth said “I want our world to be litter free and I want all the children in the world to have as much as me and my friends. I want them to have a happy life.”

Baking Nana, Jackie Heaton, turns home into bake-shop for two weeks.Jackie, a grandmother of two from Manchester, has always loved watching BBC Children in Need. Her family gets together every year and stay up late, the children happily donning their onesies and Pudsey ears for the affair. Although she donates every year, in recent years she has decided to get in on the fundraising action, doing what she loves best; baking! Armed with bowls, pans and mixers, Jackie and her granddaughter turned trusty assistant, eight-year-old Maggie, convert her kitchen into a bakery for nearly two weeks. They post an advert on her Facebook and Twitter page every year, and take orders on everything from cupcakes and cakes, to Pudsey bear shaped chocolates to raise money. The pair make everything from scratch and have so far raised more than £300 for the Charity. “The best part of all is that I get to make wonderful memories with my granddaughter, whilst making a difference to the lives of other children around the UK. My grandson is too small, but in a few years, I hope he’ll join us too,” said Jackie.

Busking for a difference, Epsom teen, Lucas raised £1,000 in one day.15-year-old Lucas from Epsom, has been fundraising for BBC Children in Need ever since he was very young. He has hosted bake sales and even asked for donations in the playground. Three years ago, with help from What’s On and the Realistic Music Academy, he set up “Busking for Children in Need”, so that bands and artists such as himself could use their musical talent to raise money and change young lives. Artists would go to The Ashley Centre in Epsom and play an acoustic set and in the first year, the collaboration raised £900.

Since then, the event has taken on a life of its own, becoming an annual activity and even going on tour. Last year the Busking for Children in Need raised £1,000 in one day for the Charity. Lucas is already planning the 2016 busking event and has already arranged to jam with bands and musicians over three days to reach a target of £3,000.

8

Direct Public Support

BBC Programmes & Events 480,000 lives changed

Corporate Partnerships

27%

7%7%

6%

5%

48%

Lloyds

Post Office

Asda

Boots

Greggs

Other

Lloyds Banking Group - Charity of the YearAs the Charity’s first ever Principal Partner, Lloyds Banking Group’s customers and colleagues raised £5.7m in 2015 becoming our biggest ever annual corporate supporter.

Colleague fundraising activities included “Pedal for Pudsey”, that saw 1,200 colleagues in 190 teams across 120 locations pedal over 61,000 miles in 24 hours, “Peaks for Pudsey” in which 35 colleagues succeeded in their efforts to scale 24 peaks in 24 hours and various bake sales, dress up days and a plethora of activity in branches and offices across the UK.

Not only did the Public buy 58,000 limited edition Pudsey Moneyboxes available exclusively in Lloyds Bank branches across the UK but they also answered the Bank’s calls to donate their pennies for Pudsey.

Bank of Scotland unveiled for the first time a limited edition of just 50 Pudsey Bear themed polymer £5 banknotes, the first polymer notes the Bank has produced and they were designed by 13 year-old Dundee schoolgirl, Kayla Robson. The rarity of the notes meant they raised over £70,000 for us in auction.

Corporate Partnerships

9

Post OfficePost Office asked their staff and customers to ‘Be a Hero’ for us, and they did just that. Hundreds of fundraising events took place up and down the country; customers bought Hero badges and Pudsey goodies and much much more, raising a very heroic £1.1m.

GreggsGreggs was a destination for fundraisers holding their own cake sales at work or home in 2015, selling Pudsey cake stands and sweet treats including Pudsey and Blush biscuits and ring buns. Once again, the team at Greggs showed their fundraising brilliance across the country and raised a staggering £830,000 through a range of activities, including raffles, craft sales and challenges.

BootsBoots once again pulled out all the stops and raised an extraordinary £950,000 through wacky and wonderful in-store fundraising events and selling Pudsey merchandise. Not only did they raise thousands, but Boots colleagues in each region connected with our projects in their communities, sharing their time and skills to make a difference beyond fundraising.

AsdaGeorge at ASDA dressed the nation superhero style in 2015 raising over £1m through the sale of their now iconic Pudsey onesies, as well as a host of other Pudsey inspired products. Their customers and colleagues got into the hero spirit holding dress up days in stores up and down the country. Amazing.

10

Radio 2Radio 2 was our top fundraising broadcasting partner once again undertaking a plethora of activity. Chris Evans led the charge with CarFest kicking off activity in August, Sir Terry hosted a gala lunch, whilst Ken Bruce hosted a live Popmaster quiz and dinner. Chris held his magnificent auctions during Appeal week and Appeal Day saw the first ever Radio Rendezvous. In total, Radio 2, and their wonderful listeners, raised a phenomenal £5.7m.

The One Show Rickshaw ChallengeBack for its 5th year, the Rickshaw Challenge saw Matt Baker and six youngsters from Children in Need funded projects cycle from Land’s End to the East End. Overcoming their own individual challenges on the journey, along with Matt Baker, the young people inspired and motivated the UK to raise a phenomenal £4.1m. To date the Rickshaw has raised over £12m - truly incredible.

CountryfileIn addition to the eye-catching Countryfile calendar, 2015 saw the inaugural ‘Countryfile Ramble’ where the programmes’ presenters embarked upon tough rambles with young people supported by our projects. The Public joined in the various rambles making it a real moment to be a part of. In total Countryfile raised a cool £2.6m.

One Big Night Welsh music legend Tom Jones and fellow countryman Rob Brydon came together for ‘One Big Night’ a spectacular night of music and entertainment, all in aid of the Charity. Viewers were treated to a medley of comedy and entertainment with some very special guests popping up along the way. Not only did they entertain everyone, but they helped raise £1.2m to change lives.

BBC Nations & RegionsBBC stations across the Nations and Regions undertook a range of activity in support of the Charity that got their listeners fundraising and donating, there was a ‘Paddle for Pudsey’, the Pudsey Pilgrimage Marathon, a 24hour radio broadcast and a flash mob to name a few. The support from all the stations was incredible and critically, helped highlight the impact of the Charity in communities across the UK.

BBC Programmes & Events

11

Direct Public Support

BBC Programmes & Events 480,000 lives changed

Corporate Partnerships

19%

29%

9%

40%

Radio 2

The One Show Rickshaw Challenge

One Big Night

Countryfile

BBC Nations & Regions

3%

12

Direct Public Support

BBC Programmes & Events 480,000 lives changed

Corporate Partnerships

55k

20k

100k

59k76k

71k

81k

Central England

London & South East England

North England

South & West England

Northern Ireland

Scotland

Wales

Buttle

18k

The difference we makeGrant-making policy

1 BBC Children in Need funds projects in order to produce positive outcomes for children and young people who are experiencing disadvantage

2 Every project and organisation we fund shall demonstrate comprehensive understanding and application of best practice in safeguarding children

3 We fund projects that are child focussed

4 The organisations we fund will be not-for-profit organisations with appropriate, accountable and proportionate governance

5 The projects we fund should not duplicate or substitute for statutory responsibilities

6 Every project and organisation we fund should encourage and enable participation by children and young people in an appropriate and empowering manner

We award grants to voluntary projects, community groups and registered charities that are working with children and young people, 18 and under, who are affected by a number of issues including homelessness, neglect, abuse, poverty, serious illness and bereavement. We award two types of responsive grants. A Small Grants Programme includes grants up to and including £10,000, which supports projects for one year, while the Main Grants Programme is for grants over £10,000 per year to support projects for up to three years.

Being a responsible grant-maker, we do not hand over the money awarded to a project at the start of a grant; we pay the money over the life of the grant and critically when we have evidence of the positive impact it is having on children and young people.

We also award through the Emergency Essentials programme grants to children and young people in immediate need of assistance. In addition to our responsive grant making, we reserve a small percentage of our grant funds in order to support proactively a small number of programmes which we have identified as priority areas. These programmes will fill gaps in provision and lead to greater understanding of targeted issues or practices.

Our investment in children

In 2015/16 BBC Children in Need helped change the lives of 480,000 disadvantaged children and young people living in the UK.

480,000lives changed

X

£

13

Number of children and young people helped by region

UK: 461,925Buttle: 17,664Other proactive: 250

Total children & young people reached: 479,839

Grants awarded in the year

In 2015/16 we awarded £51.4m in grants of which £48.9m related to responsive funding of 1,342 projects.

Scotland54,982

North England 100,250

Central England 81,258

London & SE England 76,132

South & West England 70,980

Wales19,780

Northern Ireland 58,543

101

149

250

£8

.2m

£1.7m

£2.3m

£178k £260k£183k

£1.

3m

£9

.5m

Central

England NorthernIreland

Scotland Wales UK

London &SE

North South &West

NorthernIreland

Scotland Wales

Grand totals

£9

.8m

£1.

6m

£11

.4m

£9

.6m

£1.

7m

£11

.3m

£4

.3m £0

.7m

£5m

£3

.1m £

0.5

m

£3

.6m

£4

.3m £

0.7

m

£5.

0m

£2

.7m

£0

.4m £

3.1

m

£4

2.0

m

£6

.9m

£4

8.9

m13

3

179

312

109

189

29

8

62

82

144

44

78

122

53

81

134

32

50

82

1,34

2

534

80

8

6,484

8,943

812 695952

101

149

250

£8

.2m

£1.7m

£2.3m

£178k £260k£183k

£1.

3m

£9

.5m

Central

England NorthernIreland

Scotland Wales UK

London &SE

North South &West

NorthernIreland

Scotland Wales

Grand totals

£9

.8m

£1.

6m

£11

.4m

£9

.6m

£1.

7m

£11

.3m

£4

.3m £0

.7m

£5m

£3

.1m £

0.5

m

£3

.6m

£4

.3m £

0.7

m

£5.

0m

£2

.7m

£0

.4m £

3.1

m

£4

2.0

m

£6

.9m

£4

8.9

m13

3

179

312

109

189

29

8

62

82

144

44

78

122

53

81

134

32

50

82

1,34

2

534

80

8

6,484

8,943

812 695952

Main Grants Small Grants Total

14

Table 1: Portfolio - Distribution of all active grants across the UK (June 2016)

In addition, 8,943 individual grants to a value of £2.3m were awarded to children and young people through the Emergency Essentials programme during the year.

The balance of £0.3m was awarded to proactive programmes.

Portfolio of active grantsThe total number of active grants we are currently managing including Responsive, Emergency Essentials and Proactive grants is 2,454 and equates to a total value of £130m.

Area Number% of total

number Value% of total

value

Central 463 19% £25,113,362 19%

London & South East 564 23% £28,705,458 22%

North 563 23% £29,645,811 23%

South West 249 10% £12,260,718 9%

England 1,839 75% £95,725,349 74%

Northern Ireland 192 8% £8,327,251 6%

Scotland 258 11% £14,239,685 11%

Wales 150 6% £8,452,842 7%

UK total 2,439 99% £126,745,127 98%

ChildLine 1 0% £500,000 0%

Emergency Essentials 1 0% £2,250,000 2%

Development grant 9 0% £14,190 0%

Fun & Friendship 2 0% £321,715 0%

Positive destinations 2 0% £164,288 0%

Portfolio total 2,454 100% £129,995,320 100%

101

149

250

£8

.2m

£1.7m

£2.3m

£178k £260k£183k

£1.

3m

£9

.5m

Central

England NorthernIreland

Scotland Wales UK

London &SE

North South &West

NorthernIreland

Scotland Wales

Grand totals

£9

.8m

£1.

6m

£11

.4m

£9

.6m

£1.

7m

£11

.3m

£4

.3m £0

.7m

£5m

£3

.1m £

0.5

m

£3

.6m

£4

.3m £

0.7

m

£5.

0m

£2

.7m

£0

.4m £

3.1

m

£4

2.0

m

£6

.9m

£4

8.9

m13

3

179

312

109

189

29

8

62

82

144

44

78

122

53

81

134

32

50

82

1,34

2

534

80

8

6,484

8,943

812 695952

15

Table 2: Portfolio - Distribution of active grants by disadvantage (June 2016)

Table 3: Portfolio - Distribution of active grants by project type (June 2016)

Disadvantage Number% of total

number Value% of total

value

Abuse/neglect 143 6% £10,328,807 8%

Behavioural difficulties 72 3% £4,544,930 4%

Disability 550 22% £25,998,396 20%

Distress 254 10% £17,168,526 13%

Illness 189 8% £10,697,602 8%

Marginalised groups 343 14% £18,442,044 14%

Poverty and deprivation 903 37% £42,815,015 33%

Total 2,454 100% £129,995,320 100%

Project type Number% of total

number Value% of total

value

Advocacy 37 2% £3,232,435 2%

Arts/creativity 271 11% £11,428,685 9%

Befriending/mentoring 96 4% £6,017,463 4%

Capital 12 0% £139,279 0%

Counselling 221 9% £15,011,199 11%

Cultural projects 4 0% £98,120 0%

Early years services 118 5% £5,330,012 4%

Family support 168 7% £8,699,482 7%

Holidays 87 4% £2,127,977 2%

Inclusion projects 16 1% £1,083,549 1%

Information and advice 28 1% £2,629,795 2%

Medical 64 3% £3,481,579 3%

Other 1 0% £71,202 0%

Playscheme 124 5% £3,782,594 3%

Refuge 49 2% £4,148,399 3%

School and extended services 206 8% £7,834,387 6%

Sports and health 205 8% £8,691,548 7%

Training and employment opportunities 111 4% £6,472,143 5%

Welfare fund 3 0% £2,264,900 2%

Youth services 633 26% £37,450,572 29%

Total 2,454 100% £129,995,320 100%

16

Emilia & Thomas’ StoryMaggie’s Centres, ScotlandMaggie’s is a group of therapeutic centres built in the grounds of NHS cancer hospital. The centres offer free practical and emotional support to people who are living with the illness. BBC Children in Need awarded £63,000 to Maggie’s to fund family fun days across 8 centres in Scotland for children facing cancer diagnosis within the family.

When Annette was first diagnosed with breast cancer six years ago, her children, Emilia and Thomas, were just 4 and 3 years old and too young to fully understand what was happening to their Mummy. Annette turned to Maggie’s for help and brought the children to a family fun day at Maggie’s Edinburgh where they learnt about Mummy’s illness through specially trained therapists who encouraged them to express their thoughts and feelings.

Since her first diagnosis, Annette’s cancer has spread to other parts of her body and is now incurable. Today, Emilia and Thomas are 11 and 10 years old and they’ve returned to Maggie’s for more support and one-to-one counselling. They’ve visited the cancer ward at Western General Hospital where they’ve learnt about radiology, MRI scans and chemotherapy to ease their fears of Mummy’s illness. At the family fun days, the children have made memory boxes, badges and artwork to help them process their feelings and they regularly talk to Centre Head, Andy Anderson, about their worries and concerns. For Emilia and Thomas, Maggie’s has become a place of safety, reassurance and comfort. Thomas says “It just worries me because I don’t know what is happening next. When I talk about it, I let out my feeling and it makes me feel better.” and Emilia says “He understands. Andrew would explain stuff more. I wouldn’t talk to anyone else I don’t think!”

Harry’s storyDeafness Support Network, Cheshire BBC Children in Need awarded £86,926 to Deafness Support Network in Cheshire to fund 2 part-time specialist Support Workers to help deaf children improve communication with their families.

When twins Harry & Billy were born prematurely at nearly 25 weeks, their chances of survival were very slim and they spent weeks in neo-natal care. Whilst in hospital, Harry became gravely ill with a blood infection. Side effects from his drug treatment left Harry profoundly deaf which was devastating news for the new family.

At two years old, Harry was given cochlear implants so he could hear for the very first time. But even so, Mum and Dad, Evelynn and John, struggled to communicate with their son. Evelynn had deep feelings of guilt because she thought that she was letting Harry down. She felt isolated and helpless and Harry was frustrated and lashing out because he couldn’t communicate his needs.

Dawn Nesbitt from Deafness Support Network visited the family at home. Evelynn explained Harry’s daily routine and Dawn taught her the signs to help her communicate with Harry about that routine. Teaching signs specific to the family has a huge impact because it has meaning and is reinforced by repetition.

Learning how to sign to each other was difficult and took months of work. So the first time Harry signed, “I love you, Mummy”, Evelynn cried. Harry’s now 5 years old and a very different little boy. He’s learning sign language too and he’s made friends at school. Harry loves technology and he’s even made up signs for his favourite Marvel Super Heroes, Spiderman and Thor.

Evelynn says…“Without Dawn’s help, I wouldn’t be sane. But I wouldn’t change things, nothing phases me now, my outlook on life has completely changed”.

The following stories show how children and young people have been helped by some of the voluntary projects, community groups and charities that have been awarded grants.

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Henry & Edward’s StoryKid’s Cancer Charity, SwanseaBBC Children in Need pay for a Play Therapist for 3 years to provide support for children with cancer or have been bereaved due to cancer. Edward experienced it from both sides.

Edward was 6 when his baby brother, Henry, was born. He was overjoyed. But at just 5 months, Henry was diagnosed with a brain tumour and was soon undergoing surgery and chemotherapy. Mum and Dad were constantly in and out of hospital and 6 year old Edward was left with whatever childcare arrangements could be made.

During that time Anne, from Kids Cancer Charity, would come every week to play and listen to Edward and help him cope with his emotions and the fact he was missing his parents and his new baby brother.

Eventually Henry was able to return home and things began to get back to normal. However just as the family were planning their dream holiday, Edward then found a lump on his leg and he too was diagnosed with cancer. Anne was back to support him during this frightening and difficult time.

Edward and Henry’s Mum says, “Anne has been the one consistent person for Edward, she sees us a family as we are at home, not in a hospital, Edward can be himself and she’s been with us through it all.”

After 14 cycles of chemotherapy and 6 weeks of radiotherapy and surgery Edward is now doing really well too.

Kristian’s StoryHaven House, Woodford Green, EssexBBC Children in Need fund a Healthcare Support Worker at Haven House to provide physical and emotional support and improve the child’s quality of life.

Kristian was a healthy baby until 7 months when he began having seizures. Sometimes he’d have as many as 300 per day and his Mum says at that moment he changed beyond recognition. At 18 months old Kristian was diagnosed with Lennox-Gastaut Syndrome, a rare form of epilepsy where seizures can be non-stop.

Although the seizures are now under control it has left him with profound learning difficulties. He’s unaware of danger so has to be constantly watched.

The family were put in touch with Haven House – which not only provides respite for the family but is a very special place where Kristian is free to play.

“No one is telling him don’t do that, don’t touch that. He’s got people saying, ‘Here you go, do whatever you want.’ And for him it must just be paradise.”

The Art House, Newry, Northern Ireland BBC Children In Need pay for the role of a Creative Play Worker for 3 years to provide art based play for children in Newry. This role is currently shared between two wonderful workers Jim and Lia.

Often children don’t have access to these kinds of play opportunities because some live in extreme poverty. And so, the Art House is a creative sanctuary for young minds to let their imagination run wild. When children first come to the centre, they can be withdrawn, quiet and unwilling to leave their parents side. This is because sometimes they simply have not been able to experience playing this way before. Soon, with the help of Jim and Lia - and lots of glitter and glue - children gain the confidence to explore play opportunities and just be kids. Running day-to-day activities like this for children that otherwise cannot access such play opportunities supports crucial development. In addition to this, Jim and Lia work with children on a case by case basis understanding different needs. Youngsters that need one to one support to help them through particularly challenging circumstances are able to receive this time from the workers. The Art House is a magical place filled with fun and laughter but also, lots of support.

18

Financial ReviewThe accounts for the year ended 30 June 2016 covers:

• income from the BBC Children in Need Appeal 2015, televised in November 2015;• follow-on income received in the period to 30 June 2016; and • grants awarded to projects in the period 1 July 2015 to 30 June 2016.

Financial Performance

We measure financial performance based on:• maximising income;• managing costs in line with available funds and at an appropriate level relative to income;• maximising the amount of grants awarded;• managing funds in line with the Charity’s policy.

Our appeal income for the year totalled £56.9m (£49.1m in the prior year) representing 16% growth. This appeal income was allocated to our designated Grant Fund which is used to fund projects working with children and young people across the UK. £51.4m (2015: £55m) was awarded in grants from this fund during the year and after returns netted to £50.0m (2015: £53.7m). In 2015 the net grant award was comparatively high due to changes in the timing of the grant rounds across a 24 month period. The current year represents an increase of 8% on the average across the prior two years.

Other income of £5.8m (£7.9m including gift in kind* of £2.1m) included income from investments, Gift Aid and trading and was allocated to our Non Grant Fund. Investment income is earned from funds that have yet to be paid out. Grants are released across the life of the project (typically 3 years) therefore we will always have some funds that we hold in investments.

To administer the Charity properly, fundraise creatively, manage the funds raised professionally and operate as an effective grant maker we incur direct costs. Total direct costs incurred in the year were £8.6m (£10.7m including gift in kind* of £2.1m) (13.2% of our total income) (2015: 14.6%)). These direct costs are funded from our non-grant fund.

*Gifts in kind including office space, relocation costs and Corporate Partner fundraising support have been excluded because income offsets by an equal amount of cost and nets to zero. Further details are given in note 3 to the financial statements.

Results for Children in Need LimitedChildren in Need Limited is a wholly owned subsidiary and holds the Charity’s trading activities. The results of the company are consolidated into the Charity’s financial statements. During the year ended 30 June 2016, Children in Need Limited made a profit of £1.8m (2015: £1.2m). This was paid in full to BBC Children in Need under Gift Aid provisions.

InvestmentsFunds not required for expenditure in the short term are invested. Investment income for the year (net of revaluation losses) was £0.9m (2015: £1.2m), representing a return of 0.8% on the average investment balance, which was slightly below the relevant benchmark of 0.95% (12m LIBID +0.05%). As a result of long standing depressed interest rates, the Trustees reviewed and updated the investment policy during the year. The revised investment policy stipulates the type and terms of investments that may be purchased and updated investment objectives of:

• retain sufficient liquidity for day-to-day needs; • maintain a measured appetite to risk; and• maximise investment returns within the constraints of the above.

The Charity therefore retains a conservative approach to investing and holds funds not needed for short term use in two types of investments:

a) Core fixed income liquid assets – to provide a return of capital growth and income primarily through investment in a portfolio of short term cash and money market instruments, investment grade bonds and other fixed and floating rate securities. This portfolio is managed on the Charity’s behalf by Schroder Investment Management (UK) Limited.

b) Appropriate income/return generating assets - income generating assets such as property funds and high quality securitised credit (low risk loans).

The balance held within each type of investment is determined by the amount of liquid funds required to meet our grant commitments when they fall due. We do not hold shares directly or through fund managers and social, environmental and ethical considerations are taken into account when making investment decisions.

19

Designated funds £’000Opening

1 Jul 15Incr. in

fundsFunds

utilisedClosing

30 Jun 16

Responsive grants 33,269 54,297 (47,423) 40,143

Emergency grants - 2,250 (2,250) 0

Proactive grants 3,000 334 (334) 3,000

Total grant funds 36,269 56,881 (50,007) 43,143

Short term funding deficit 2,025 5,799 (7,824) -

Continuity fund 1,000 - (825) 175

Investment continuity fund 4,000 - - 4,000

Development fund 1,000 - - 1,000

Non grant fund 8,025 5,799 (8,649) 5,175

Total funds 44,294 62,680 (58,656) 48,318

Funds

At 30 June 2016 the Group had total closing funds of £48.3m representing an increase of £4.0m on the prior year position.

Designated Grant Fund - £43mAt 30 June 2016 the Charity held designated grant funds of £43.1m, representing appeal income received and to be awarded to projects in future grant-making activity. The majority of this fund (£40.1m) relates to our core responsive grant activity.

The Charity allocates grants for periods of one, two or three years but accounts for all grants in full in the year that they are awarded. This means that the primary liabilities of the Charity are £78.0m of grants awarded but not yet paid (30 June 2015: £69.8m).

Designated Non Grant Fund - £5mThe fund reflects income earned from other sources outside of appeal activity. The Charity anticipated a short-term funding deficit and a specific fund was held for this purpose which has now been fully utilised. The Trustees are satisfied that appropriate plans are in place to adequately fund costs in the future, so this fund will no longer be required.

Principal Risks and Uncertainties

A key risk for the charity is the inherent uncertainty of future income related to changing viewing habits and patterns of public fundraising. In recent years the focus has been on achieving more diversity in our income sources and the success of this approach is reflected in the changing balance of income across public donations, corporate and BBC supporters. However, reliance on a small number of core funding streams continues to be a risk that we will aim to mitigate by bringing in a wider range of supporters.

There are risks attached to the levels of unrestricted funds as it is driven primarily by factors outside of the Charity’s control such as Gift aid conversion and investment income. The Investment Continuity Fund was set up to manage the risk of an unexpected drop in the value of or income from our investments. Similarly the Continuity Fund was set up to manage the risk of an unexpected drop in Gift Aid or other sources of income.

20

Adequacy of Assets to Fulfil ObligationsInvestments are held to meet liabilities as they fall due and the Trustees confirm that as at 30 June 2016 the Charity’s assets are available and adequate to fulfil obligations.

The Trustees have taken into account all available information about the future for at least but not limited to 12 months from the date the accounts are approved. There are no material uncertainties about the Charity’s ability to continue.

Non-grant fund £’000Closing

30 Jun 16Long-term

targetCurrent

gap

Continuity fund 175 1,000 (825)

Investment continuity fund 4,000 5,000 (1,000)

Development fund 1,000 1,000 -

Total 5,175 7,000 (1,825)

The Funds Policy for the Charity sets out a long-term target for the Unrestricted Non-Grant Fund of £7m, including an increase in both Continuity Funds as shown in the table below.

21

Future Plans

The relocation to Salford is now complete and the team is in place that will take the Charity forward. Our latest and most significant joiner being our new Chief Executive, Simon Antrobus, who joined 1 November 2016.

Our Appeal night in November 2016 was our best ever, with an “On the Night” total of £46.6m, an increase of 26% (12% on a consistent basis excluding schools income that was included in 2016 for the first time). Our Appeal show also involved new presenters Greg James, Ade Adepitan, Graham Norton and Marvin Hughes who joined the team for the first time.

The key risks that we will continue to face and our approach to mitigation include:

• Potential loss of core funding streams, to be addressed by continued diversification of supporters and sources of income; and

• Exposure to factors outside of the charity’s control e.g. investment returns, addressed by a risk-focused reserves policy.

The Trustees have reflected on the changing balance of income for the charity, both in terms of keeping pace with changes in television viewing habits which have tended to switch from live to on-demand, but also in the significant success of the charity’s new initiatives supported by Lloyds Banking Group and BBC Countryfile. Diversification of income will continue to be a key theme into the future and recent learning has given the Trustees confidence of future success.

We are now in a period of strategic planning during which we will set the course for the Charity for the next three to five years. Core to this strategy is our intent to put children and young people at the heart of everything we do with an ultimate goal of making a step-change in our ability to have a positive impact on the lives of children and young people across the UK.

Key elements of this emerging strategy will be:

• Deepening and diversifying our BBC programme partnerships; • Building on the success of our first principal partnership with Lloyds Banking Group and bringing in new partners; • Building of our proactive funding programmes which are now starting to deliver clear outcomes to benefit children and young people across the UK; • Investing in our operational capabilities to enable future growth (e.g. grant-making resources, systems etc.); and• Reduce the time between income receipt and grant awards; thereby increasing our ability to create positive impact in the short term.

22

Structure, Governance and Management

Formal StructureBBC Children in Need was formed on 25 August 1988, became a registered charity with effect from 1 September 1989 and until 30 September 2003 was an unincorporated body governed by a deed of trust and administered by a board of Trustees.

With effect from the 1 October 2003 the Charity’s assets and activities were transferred to a Company Limited by Guarantee (‘The BBC Children in Need Appeal’) with the existing Trustees being appointed as the Board of Directors and the BBC as the Founder Member of the Company. As part of the process of incorporation, The BBC Children in Need Appeal was effectively re-registered as a Charity on 7 August 2003 but retained the Charity number 802052. The Charity is governed in accordance with its Articles of Association.

In 2012 the name of the Charity was changed from The BBC Children in Need Appeal to BBC Children in Need, to reflect our year round presence and the changing nature of our fundraising. BBC Children in Need is also a registered Charity in Scotland, number SC039557.

BBC Children in Need has one trading subsidiary, Children in Need Limited. Children in Need Limited is a wholly owned subsidiary which primarily exists to license products using the ‘Pudsey Bear’ trade mark and to sell Pudsey merchandise. Children in Need Limited makes a Gift Aid payment of all its taxable profits to BBC Children in Need each year.

Governance ArrangementsAs a registered charity and company limited by guarantee BBC Children in Need is governed by company and charity law and by The Statement of Recommended Practice, The Charities SORP (FRS 102), issued by the Charity Commission in January 2015. The SORP sets out the accounting practices and disclosure required by charities in their annual accounts. The Trustees have followed its recommendations and applicable accounting standards in presenting these financial statements for the first time. There has been no material impact on our accounting policies as a result of adopting the new Charities SORP (FRS102).

Trustee Appointment and ChairThe Trustees are appointed by the Members of the Charity in general meeting and all Trustees are Members of the Company except for the Trustee who formally represents the BBC (as Founder Member). Trustees are appointed for a term of three years. At the end of this term they may be reappointed for a further term of three years. After two consecutive terms, Trustees may then be appointed for additional terms of one year however their total term of office must not exceed nine consecutive years. In addition to the Trustee representing the Founder Member, the Trustees of BBC Children in Need are drawn from the BBC and non-BBC in equivalent numbers.

On appointment all Trustees go through an induction process and are provided with training specific to the tasks that they will be required to undertake (e.g. grant making). In addition Trustees are kept up to date with any changes in governance requirements to ensure they are informed of best practice.

ManagementThe Board of Trustees holds formal meetings up to six times a year (with a minimum of four meetings a year). In between these meetings, matters are progressed through the delegation of actions to Trustees and Officers of the Charity.

Key decisions that Trustees take include principal officer appointments and final decisions on all main grant awards. The Trustees delegate daily management of the Charity to the Chief Executive and the Senior Leaders. Trustees meet regularly for feedback on the Charity’s performance, to approve the awarding of grants and to make recommendations for the direction and expectations of the Charity in the future.

Key Responsibilities of TrusteesThe following points outline the key responsibilities of Trustees.• agree the strategic direction and policy of the Charity;• agree the annual operating and investment budgets;• adopt responsibility for specific initiatives within the Charity; • execute all legal responsibilities in connection with the Charity;• observe the content of the Charity’s Articles of Association in order to comply with the Charity Commission regulations;• support the Chair in ensuring that the Charity is following best practice in terms of its business rigour;• provide expertise and insight into key areas of activity for the Charity; and• represent the Charity when required.

23

Trustee Sub-Committees To support effective governance the Charity has operated with five Trustee Board sub-committees throughout the year:

• Audit – to provide oversight and support on all financial matters and to include oversight of internal and external audit activity;• Grant Making and Policy - to provide oversight and advice on matters such as the Grant Strategy and proactive funding;• Fundraising and Commercial - to provide oversight, advice and support to our fundraising and commercial activity;• Nominations, Remuneration and Development – to provide oversight and support in the recruitment and development of senior staff and the Board of Trustees. Reward and remuneration of senior staff is overseen by benchmarking to the market and ensuring costs are managed in line with budget; and• Investment – to provide oversight and advice on investment decisions.

Risk ManagementThe Trustees are responsible for the Charity’s management of risk. During the year the Trustees actively monitored and discussed risk. This process included:

• identifying the major risks facing the Charity;• assessing the likelihood and severity of the risks;• reviewing the existing controls that the Charity had in place to mitigate the risks; and• identifying and implementing any further actions required to limit risk.

A statement of Trustees’ responsibilities in respect of the Trustees’ Annual Report and Financial Statements is given on page 25.

The Trustees who held office at the date of approval of this Trustees’ report confirm that, so far as they are aware, there is no relevant audit information of which the Charitable Company’s auditors are unaware; and 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 Report of the Trustees, which incorporates the requirements of the Strategic Report and the Directors’ Report as set out in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013, was approved by the Board, in their capacity as Trustees and company directors, and signed on its behalf on 9 February 2017 by:

Stevie Spring, Chair Anne Bulford, Treasurer

24

Reference and Administrative Details

Trustees and Advisors

ChairStevie Spring

Vice ChairRobert ShennanDaniel Cohen (left 28 October 2015)

Other Trustees Matthew Baker Joanna Berry2 Anne Bulford1,3,5

Phil Hodkinson1,3,5

Donalda McKinnon4

Luke Mayhew3

Peter McBride2,4

Charlotte Moore Ralph Rivera (left 24 July 2016) Gillian Sheldon1,5

1Members of Audit Committee 2Members of Grants and Policy Committee3Members of Fundraising and Commercial Committee 4Members of Nominations, Remuneration and Development Committee5Members of Investment Committee

Principal OfficersSimon Antrobus Chief Executive (joined 1 November 2016)David Ramsden Chief Executive (left 1 September 2016)Karen Bass Director of Finance and OperationsGareth Hydes Director of EditorialSheila Jane Malley Director of Grant-Making and Policy (left 23 November 2016)Jonathan Rigby Director of Marketing and Fundraising

Auditors BankersErnst & Young LLP HSBC Bank Plc1 More Place Fenchurch Street BranchLondon 60 Fenchurch StreetSE1 2AF London EC3M 4BAInvestment Managers Schroder Investment Management Limited Solicitors31 Gresham Street Bircham Dyson Bell LLPLondon 50 BroadwayEC2V 7QA London SW1H 0BLRegistered OfficeBridge HouseSalford M50 2BH

25

Statement of responsibilities of the trustees of BBC Children in Need in respect of the trustees’ annual report and the financial statements

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

Company law requires Trustees to prepare financial statements for each financial year. Under that law they are required to prepare the group and parent company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice).

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charitable company and of the group’s excess of expenditure over income for that period. In preparing each of the group and charitable company financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements 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 group and the charitable company will continue its activities.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that its financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

26

Independent auditors’ report to the trustees and members of BBC Children in Need We have audited the financial statements of BBC Children in Need for the year ended 30 June 2016 which comprise the Consolidated Statement of Financial Activities, Charity Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the consolidated Cash Flow Statement and the related notes 1 to 18. 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) including FRS 102 “The Financial Reporting standard applicable in the UK and Republic of Ireland”.

This report is made solely to the company’s trustees and members, as a body, in accordance with our appointment under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the trustees and 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 trustees and members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditorAs explained more fully in the Trustees’ Responsibilities Statement set out on page 25, 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 as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts.Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report 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.

Opinion on financial statementsIn our opinion the financial statements:

• give a true and fair view of the state of the Consolidated and Charity company’s affairs as at 30 June 2016 and of its 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, including FRS 102 “The Financial Reporting standard applicable in the UK and Republic of Ireland”; and

• have been prepared in accordance with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

Opinion on other matter prescribed by the Companies Act 2006In our opinion the information given in the Strategic Report and the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

27

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

• the charitable company has not kept proper and adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or

• the 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.

Michael Rudberg (Senior Statutory Auditor)for and on behalf of Ernst & Young LLP, Statutory AuditorLondon 9 February 2017 Ernst & Young LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Notes:

1. The maintenance and integrity of the BBC Children in Need web site is the responsibility of the trustees; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the web site.

2. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

28

Consolidated statement of financial activities for the year ended 30 June 2016 (Incorporating Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Year to 30 Jun 2016Unrestricted funds 2015

The Group has no recognised gains or losses for the above two financial periods other than the net movement in funds shown above, all of which are derived from continuing operations.

Notes

Designated Grant funds

£’000

Designated Non-grant

funds £’000

Total funds £’000

Total funds £’000

INCOME AND ENDOWMENTS FROM:

Donations and legacies

Donations 2 53,316 - 53,316 46,470

Gift Aid on donations - 3,331 3,331 3,637

Legacies 1,691 - 1,691 1,547

Charitable activities

Trading income 9 1,772 792 2,564 1,964

Investments 11 - 991 991 1,238

Other 2 102 685 787 634

Gifts in kind 3 - 2,149 2,149 556

TOTAL INCOME & ENDOWMENTS 56,881 7,948 64,829 56,046

EXPENDITURE ON:

Raising funds

Cost of generating voluntary income 7 - 5,577 5,577 4,320

Investment management fees 7 - 162 162 107

Trading operating costs 9 - 748 748 753

Exceptional gift in kind 3 - 864 864

- 7,351 7,351 5,180

Charitable activities

England 37,311 - 37,311 38,534

Scotland 5,174 - 5,174 5,851

Wales 3,067 - 3,067 3,661

Northern Ireland 3,645 - 3,645 3,760

UK wide grants 2,250 - 2,250 3,005

Grants awarded in the year 4 51,447 - 51,447 54,811

Training and support for grantees 5 156 - 156 181

Adjustments to grants given 6 (1,596) - (1,596) (1,306)

Grant making and policy 7 - 3,038 3,038 3,071

Governance 7 - 334 334 521

50,007 3,372 53,379 57,278

TOTAL EXPENDITURE 50,007 10,723 60,730 62,458

Net losses on investments 11 - (75) (75) (180)

Net income/(expenditure) for the year 6,874 (2,850) 4,024 (6,592)

RECONCILIATION OF FUNDS

Total funds brought forward 1 July 2015 36,269 8,025 44,294 50,886

Total funds carried forward 30 June 2016 43,143 5,175 48,318 44,294

29

Year to 30 Jun 2016Unrestricted funds 2015

Charity statement of financial activities for the year ended 30 June 2016 (Incorporating Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

The Group has no recognised gains or losses for the above two financial periods other than the net movement in funds shown above, all of which are derived from continuing operations.

Notes

Designated Grant funds

£’000

Designated Non-Grant

funds £’000

Total funds £’000

Total reserves

£’000

INCOME AND ENDOWMENTS FROM:

Donations and legacies

Donations 2 53,316 - 53,316 46,470

Gift Aid on donations - 3,331 3,331 3,637

Legacies 1,691 - 1,691 1,547

Charitable activities

Gift aid payments from Children in Need Limited 9 1,772 45 1,817 1,211

Investments 11 - 991 991 1,238

Other 2 102 685 787 634

Gifts in kind 3 - 2,149 2,149 556

TOTAL INCOME & ENDOWMENTS 56,881 7,201 64,082 55,293

EXPENDITURE ON:

Raising funds

Cost of generating voluntary income 7 - 5,577 5,577 4,320

Investment management fees 7 - 162 162 107

Exceptional gift in kind 3 - 864 864

- 6,603 6,603 4,427

Charitable activities

England 37,311 - 37,311 38,534

Scotland 5,174 - 5,174 5,851

Wales 3,067 - 3,067 3,661

Northern Ireland 3,645 - 3,645 3,760

UK wide grants 2,250 - 2,250 3,005

Grants awarded in the year 4 51,447 - 51,447 54,811

Training and support for grantees 5 156 - 156 181

Adjustments to grants given 6 (1,596) - (1,596) (1,306)

Grant making and policy 7 - 3,038 3,038 3,071

Governance 7 - 334 334 521

50,007 3,372 53,379 57,278

TOTAL EXPENDITURE 50,007 9,975 59,982 61,705

Net losses on investments 11 - (75) (75) (180)

Net income/(expenditure) for the year 6,874 (2,849) 4,025 (6,592)

RECONCILIATION OF FUNDS

Total funds brought forward 1 July 2015 36,269 8,010 44,279 50,871

Total funds carried forward 30 June 2016 43,143 5,161 48,304 44,279

30

Consolidated and Charity Balance Sheets as at 30 June 2016

The financial statements on pages 28 to 43 were approved by the Trustees on 9 February 2017 and signed on their behalf by:

Stevie Spring, Chair Anne Bulford, Treasurer

Notes

Group 30 Jun 16

£’000

Group 30 Jun 15

£’000

Charity 30 Jun 16

£’000

Charity 30 Jun 15

£’000

FIXED ASSETS

Tangible assets 10 55 84 43 60

Investment in subsidiary 9 - - - -

Investments 11 55,037 47,559 55,037 47,559

55,092 47,643 55,080 47,619

CURRENT ASSETS

Investments 11 57,461 59,811 57,461 59,811

Stock 194 251 - -

Debtors 12 8,160 3,516 8,902 6,772

Cash at Bank 7,990 4,909 7,423 1,673

73,805 68,487 73,786 68,256

Creditors: amounts falling due within one year 13 (48,105) (40,710) (48,088) (40,470)

NET CURRENT ASSETS 25,700 27,777 25,698 27,786

TOTAL ASSETS LESS CURRENT LIABILITIES 80,792 75,420 80,778 75,405

Creditors: amounts falling due within one year 13 (32,474) (31,126) (32,474) (31,126)

NET ASSETS 48,318 44,294 48,304 44,279

RESERVES

Grant funds 15 43,143 36,269 43,143 36,269

Other funds 15 5,175 8,025 5,161 8,010

Total designated funds 48,318 44,294 48,304 44,279

TOTAL RESERVES 48,318 44,294 48,304 44,279

31

Schedule

Year to 30 Jun 16

£’000

Year to 30 Jun 15

£’000

Cash flows from operating activities

Net cash provided by operating activities A 7,315 3,910

Cash flows from investing activities:

Interest from investments 991 1,238

Purchase of equipment (22) (80)

Purchase of investments (124,247) (98,662)

Proceeds from sale of investments 119,044 95,372

Net cash used in investing activities (4,234) (2,132)

Change in cash and cash equivalents in the reporting period 3,081 1,778

Cash and cash equivalents at the start of the reporting period B 4,909 3,131

Cash and cash equivalents at the end of the reporting period B 7,990 4,909

Consolidated Cash Flow Statements for year ended 30 June 2016

A. Reconciliation of net income to net cash inflow from operating activities

B. Analysis of cash and cash equivalents

Year to 30 Jun 16

£’000

Year to 30 Jun 15

£’000

Net income for the year 4,024 (6,592)

Depreciation charges 51 46

Investment income (991) (1,238)

Decrease in investment 75 180

Decrease in stock 57 226

Decrease/(increase) in debtors (4,644) 350

Increase in creditors 8,743 10,938

Net cash inflow provided by operating activities 7,315 3,910

At 30 Jun 15 £’000

Cash flows £’000

At 30 Jun 16 £’000

Cash at bank 1,609 3,700 5,309

Money market deposits 3,300 (619) 2,681

Total cash and cash equivalents 4,909 3,081 7,990

32

Notes to the financial statements for the year ended 30 June 2016 1 Principal accounting policies

Statement of complianceBBC Children in Need is a registered charity and a company limited by guarantee incorporated in England. The Registered Office is Bridge House, Media City UK, Salford M50 2BH.

The Company’s financial statements have been prepared in compliance with the Charities SORP (FRS 102) issued in January 2015 as it applies to the financial statements for the year ended 30 June 2016.

The Company transitioned from previously extant SORP 2005 to SORP 2015 (FRS 102) as at 1 July 2014. An explanation of how transition to the Charities SORP 2015 (FRS 102) has affected the reported financial position and financial performance is given in Note 18.

Basis of preparationThe financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The statements have been prepared in accordance with the Statement of Recommended Practice - Charities SORP (FRS 102), issued by the Charity Commission in January 2015, applicable Accounting Standards in the United Kingdom, Companies Act 2006, and the requirements of the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and Charities Act 2011. The adoption of the new Charities SORP (FRS 102) in the current year did not have a material impact on the accounts. The charity is a public benefit entity.

The financial statements are prepared in Sterling which is the functional currency of the Charity and rounded to the nearest £’000. The Charity’s presentational currency is the same as it’s functional currency.

IncomeAll income with the exception of legacy income and gifts in kind is recognised once the Charity has entitlement to it, it is probable that the income will be received and the monetary value of the income can be measured with sufficient reliability.

Legacy income is recognised when the criteria of probability, measurement and entitlement are met. For pecuniary legacies this is considered to be on the granting of probate. For residuary legacies this is considered to be on the earlier of the date cash is received or the date final estate accounts are approved.

Donated services and facilities are treated as gifts in kind and are included as income (with an equivalent amount in resources expended) at the estimated value to the charity. This income has been recognised as the benefit to the charity is reasonably quantifiable, measurable and material, the Charity is entitled to the donation in that control over the expected economic benefit has passed and it will more than likely flow to the charity (further details are given in Note 3).

Grant expenditureGrant expenditure is recognised when grants are approved by staff or Trustees and notified to the organisations concerned, payment is probable, it can be measured reliably and all conditions have been met. Grant expenditure not yet paid is recognised as a liability on the balance sheet. If grants are payable in less than one year they are classified as short term and if payable in more than one year then they are classifed as long term. For grants payable in more than one year discounts for present value have not been applied on the basis of materiality.

Other expenditureExpenditure is accounted for on an accruals basis and is recognised when there is a legal or constructive obligation committing the Charity to the expenditure, payment is probable and it can be measured reliably. Costs have been directly attributed to a particular heading in the Statement of Financial Activities on a headcount basis or on a time basis consistent with the use of the resource. Cost of generating funds consists of costs incurred by the Charity in encouraging organisations and individuals to make voluntary contributions or to organise a fundraising event. This includes all costs of production and distribution of publicity materials, the costs of staff and other expenditure incurred in communicating with fundraisers and donors and the cost of Charity organised events and challenges.

Grant giving costs represent the cost of monitoring and evaluating projects to ensure the money is being used to maximum effect and ensuring that grant making is supported, processed and governed responsibly. This includes costs of staff who support the grant making process, external assessors, regional and national committee meetings and expenditure incurred in this process.

33

Governance costs include all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These include costs of staff, external audit and legal fees along with Trustee expenses and meeting costs.

Further details of other expenditure are shown in Note 7.

Tangible assetsTangible assets costing more than £1,000 are capitalised, included at cost and written off over their useful lives on a straight line basis. Depreciation is provided on all tangible assets at rates calculated to write off the costs of each asset on a straight line basis over its expected useful life as follows:

IT equipment and software 3 years Furniture, fixtures and fittings 3 years Further details of tangible assets are shown in Note 10.

InvestmentsInvestments are included in the Balance Sheet at mid-market value. All gains and losses are shown in the Statement of Financial Activities. They are classified as fixed investments if they represent grants awarded and payable in more than one year (presented as a long term creditor) and grant funds due to be awarded where the payment will be made in more than one year (presented as the grant fund). They are classified as current investments if they represent grants payable in less than one year. Further details of investments are given in Note 11.

StockStock is held by Children in Need Limited. Further details of the accounts of Children in Need Limited are given in Note 9. Stock is stated at the lower of cost and net realisable value. Net realisable value is based on estimated selling price less further costs expected to be incurred to completion and disposal.

Short term debtors and creditorsDebtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of Financial Activity in the cost of generating voluntary income.

Operating leasesOperating lease rentals are charged to the Statement of Financial Activity on a straight line basis over the period of the lease.

Further details of operating leases are given in Note 14.

Pension costs Children in Need staff are eligible to participate in the BBC Pension Scheme (a defined benefit scheme, now closed to new members), LifePlan or Group Personal Pension Scheme (defined contribution schemes). The assets of the BBC’s pension schemes are held in trustee administered funds, separate from those of BBC Children in Need.

The scheme is subject to independent valuation by a professionally qualified actuary at least every three years, on the basis of which the actuary certifies the rate of employer’s contributions. These, together with the specified contributions payable by employees and proceeds from the scheme’s assets, are expected to be sufficient to fund the benefits payable under the scheme. The most recent full actuarial valuation of the scheme was prepared as at 1 April 2013 by Towers Watson, consulting actuaries. At 1 April 2013, the actuarial valuation showed a funding shortfall of £2,054m and the actuarial value of the assets was sufficient to cover 83.4% of the benefits due to members, after allowing for expected future increases in earnings.

A recovery plan was agreed between the BBC and the pension scheme Trustees which details the contribution amounts to be paid by the BBC over a 12 year period commencing 2014.

The contributions to the scheme by members are paid via a salary sacrifice arrangement. These have been treated as employer contributions.

34

* Excludes the cost effectively paid for by the employee and the salary sacrifice element and includes an allowance for BBC AVC matching contributions of 0.1% (2015: 0.1%).

BBC Children in Need, following the provisions within FRS 17, accounts for the scheme as if it were a defined contribution scheme. This is because it is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The BBC also operates its own defined contribution pension schemes, including those operated in the USA and Australia. The pension cost for these schemes therefore represents contributions payable by the Charity and the costs amounted to £298k in the year (2015: £274k) and have been recognised as an expense in the Statement of Financial Activity.

The actuarial valuation was updated for FRS 17 purposes to 31 March 2016 by Willis Towers Watson, consulting actuaries. This valuation identified a deficit of £1,003.4m in the scheme at 31 March 2016 (2015: £940.7m). Additional disclosure about the scheme and its financial position under IAS 19, which as a result of options taken by the BBC Group is equivalent to FRS 17, is provided in the BBC Annual Report and Accounts that can be obtained from www.bbc.co.uk/annualreport. Structure of reserves

Designated FundsThe Charity holds public donation income in separate funds designated for grantmaking. These balances represent Appeal income, which will be included within BBC Children in Need’s future grant making activity. It is not always possible to forecast accurately the amount allocated in grants to the exact amount of income in any one year however any unspent donation income is always monitored separately to ensure all Appeal income will be applied to grants.

The Charity holds other designated funds made up of interest earned on monies held (less operating costs) in previous years, income from Gift Aid and Trading income and does not include any donation income from the public. It is held for the purposes of continuing the charitable activities of BBC Children in Need should future income levels fall unexpectedly, funding short term deficit on the cost base, to fund activity that supports the growth and development of the Charity and to fund a revision to the investment policy which may generate short term volatility. Other non grant funds also include the net assets of Children in Need Limited.

ConsolidationThese consolidated financial statements incorporate the results of BBC Children in Need and its wholly owned subsidiary undertaking, Children in Need Limited, for the year ended 30 June 2016, on a line by line basis. Children in Need Limited is a company registered in England and Wales and exists primarily to sell Children in Need merchandise and license products using the Pudsey Bear trademark.

Loan to Children in Need LimitedThe interest bearing loan is a basic financial instrument and is recorded at fair value on both initial recognition and subsequent recognition. As the loan is repayable on demand fair value is equal to face value. Interest is charged on the Facility on a daily basis at the rate of 1.5% per annum above the base rate of Royal Bank of Scotland plc.

Judgements and estimatesThe preparation of the financial statements requires management to make judgements, estimates, and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the year.

Judgement has been applied in the consideration of what gifts in kind are included in the Charities financial statements. The gift in kind has been accounted for where the actual expenditure incurred by the BBC or corporate partner can be measured reliably and the charity has received the benefit. Many of the other elements of BBC support are very difficult to quantify as they are not discrete activities but embedded, partly as newsworthy and entertainment content, within the operations and business of the BBC. The Appeal show provides valuable content, which attracts a large audience, and without it the BBC would have to produce alternative content. As such the full value of support provided by the BBC has not been included in the Charity’s Statement of Financial Activities.

Contribution ratesProjection

2017 % 2016 % 2015%

Employer* 16.7 16.7 14.5

Employee (old and new benefits) 7.5 7.5 7.5

Employee (career average benefits 2006) 4.0 4.0 4.0

Employee (career average benefits 2011) 6.0 6.0 6.0

35

2 Income

Grant income from donations totalling £53,316k (2015: £46,410k) is generated from direct public support, our Corporate Partners and BBC Programmes. Together with Legacies and Trading income the total reported is £56,881k (2015: £49,131k).

Non Grant IncomeTotal non grant income of £7,948k (2015: £6,855k) is generated from gift aid of £3,331k (2015: £3,637k) and investment income of £991k (2015: £1,238k) along with £792k of trading income derived from public and school sales (2015: £957k), £685k of other income (2015: £406k) and £2,149k of gifts in kind (2015: £556k) (see note 3).

3 Gifts in kind

BBC Children in Need is the UK corporate Charity of the BBC and as such is supported by the BBC in a number of ways including but not limited to:

• the provision of office space and other services at no charge;

• the preparation and broadcast of the annual television BBC One Appeal Show including national and regional programming content;

• the extensive support of BBC programmes across all platforms both on the day of the Appeal and the campaign build up;

• significant promotional support and coverage of the Appeal across the BBC local television and radio network in the days before the Appeal and on Appeal night; and

• specialist advice and administrative support including the provision and maintenance of the BBC Children in Need pages of the BBC’s website. The costs of support through the provision of office space and other services for the last financial year have been calculated as £548k (2015 - £556k) based on actual office space utilised by BBC Children in Need during the year. This amount has been recorded as income, with an equal amount included in expenditure, in the statement of financial activities as it meets the recognition criteria set out in the Charities SORP 2015.

In 2014, the decision was taken to relocate the majority of the Charity’s headquarter roles from Shepherd’s Bush, London to MediaCity in Salford. The main driver of this decision was, in line with similar decisions taken across the BBC, to reduce the overall accommodation cost. The BBC therefore provided financial support to the Charity in making this change, covering relocation and severance costs totalling £864k of which £519k is severance (£369k expensed in the Statement of Financial Activity and £150k accrued on the Balance Sheet). Due to the one-off nature of this support, it is shown as an exceptional gift in kind.

Grant Income Analysis

Direct Public Support £000

Corporate Partnerships £000

BBC Programmes

and Events £000

Total 2016 £000

Total 2015 £000

Schools 5,646 - - 5,646 5,335

Public Fundraising 6,167 - - 6,167 5,295

Donations 12,472 14,861 14,170 41,503 35,840

Total Donations 24,285 14,861 14,170 53,316 46,470

Legacies 1,691 - - 1,691 1,547

Trading Income - 1,772 - 1,772 1,007

Other 102 - - 102 167

Total Grant Income 26,078 16,633 14,170 56,881 49,191

36

Group 2016 £’000

Group 2015 £’000

Provision of office space 548 556

Corporate partner fundraising support 737 -

Relocation costs 864 -

2,149 556

4 Grant expenditure

The grants given to charities and organisations fall into the bands detailed below:

Gifts in kind (continued)In addition, Lloyds Banking Group, our principal partner supported the cost of School fundraising of £737k. This related to design, artwork and other marketing costs and also staff costs that have been incurred in the support of the schools fundraising initiative.

In the year ended June 2016 £51,447k was awarded to 1,348 projects.

Included in the above figures is a grant to Buttle UK for the BBC Children in Need Emergency Essentials programme. A total of 8,943 grants to a value of £2,250k (2015: £1,900k) were awarded to individual children and young people through this programme during the year.

For further details on the purpose and policy grant making refer to the Trustee Report (page 12).

5 Support, evaluation and training

Some organisations, particularly those where the Charity is funding a staff post, are given training and support in how to measure and report the difference their project is making to the children and young people they work with. The cost in 2016 amounted to a value of £156k (2015: £181k).

6 Adjustments to grants given

An amount of £1,596k (2015: £1,306k) has been written back to the Statement of Financial Activities. This represents adjustments to grants and the full and partial return of grants that have been awarded in the current and the prior year. This amount is added back to the total available for future distribution.

Qty2016

£’000 Qty2015

£’000

£1 - £1,000 2 2 7 6

£1,001 - £5,000 99 367 84 304

£5,001 - £10,000 708 6,532 606 5,527

£10,001 - £25,000 21 381 33 597

£25,001 - £100,000 383 26,706 500 35,392

Over £100,000 135 17,459 91 12,985

1,348 51,447 1,321 54,811

37

7 Operating costs excluding gifts in kind

Specific expenditure items included in the figures above are:

Support costs are broken down as:

Where staff work across more than one area, costs are allocated based on the proportion of time spent on each area. Office & IT costs and Professional fees are allocated based on usage. The BBC Gift in Kind to support the provision of office space together with depreciation is allocated on staff numbers and the gift in kind from corporate partner fundraising support is specific to the area of ‘generating voluntary income’. The relocation costs have not been allocated but shown as a separate exceptional item.

Direct staff costs

£’000

Support costs

£’000

Other direct costs

£’0002016 total

£’0002015 total

£’000

Costs of generating funds

Cost of generating voluntary income 1,891 1,575 2,111 5,577 4,320

Investment management fees - - 162 162 107

Trading operating costs - - 748 748 753

Exceptional item - 864 - 864 -

Charitable activities

Grant giving costs 1,833 767 438 3,038 3,071

Governance 204 127 3 334 521

3,928 3,333 3,462 10,723 8,772

Gifts in kind (2,149) (556)

Operating costs 8,574 8,216

Group 2016

£’000

Group2015

£’000

Charity 2016

£’000

Charity 2015

£’000

Depreciation 51 46 39 31

Operating leases 41 15 41 13

Reimbursement of trustees expenses 3 6 3 6

Auditors’ remuneration:

Audit of these financial statements 20 20 20 20

Audit of the charity’s subsidiary pursuant to the legislation

2 2 - -

Legal fees 14 29 14 29

Staff costs

£’000

Office and IT costs

£’000Depreciation

£’000Professional

fees £’000

Gifts in kind £’000

2016 total

£’000

2015 total

£’000

Costs of generating funds

Cost of generating voluntary income

220 329 19 - 1,007 1,575 790

Exceptional item - - - - 864 864 -

Charitable activities

Grant giving costs 219 185 19 79 265 767 1,162

Governance 35 21 1 57 13 127 220

474 535 39 136 2,149 3,333 2,172

38

8 Employee and pension information

The average number of persons employed during the period split by function is as follows:

The equivalent number of full time staff is 108.

The breakdown of the group’s salary costs is as follows:

Trustees do not receive any remuneration or receive any other benefits for their roles as Trustees. Trustee expenditure includes the reimbursement of expenses incurred by Trustees while carrying out their duties for the Charity, primarily for travel expenses of Trustees not based in London to attend meetings. Expenses were paid in the period to a value of £3,219 to four trustees (2015: £5,678).

Employees’ emoluments fell into the following bands of £10,000:

The emoluments paid to the Chief Executive for the year were £119,934 (2015: £110,826) per annum.

Retirement benefits are accruing under defined benefit schemes for four (2015: four) of the above higher paid members of staff.

Group2016

Group2015

Charity2016

Charity2015

Generating funds 58 44 52 38

Grant giving 49 53 49 53

Governance 3 5 3 5

110 102 104 96

Group 2016

£’000

Group 2015

£’000

Charity 2016

£’000

Charity2015

£’000

Wages and salaries 3,905 3,904 3,733 3,719

Social Security costs 404 379 387 365

Pension costs 286 274 282 267

Other staff costs - 6 - 6

4,595 4,563 4,402 4,357

Group2016

Group2015

£60,000 - £69,999 2 2

£70,000 - £79,999 2 3

£80,000 - £89,999 1 1

£90,000 - £99,999 1 -

£100,000 - £109,999 - -

£110,000 - £119,999 1 1

7 7

39

9 Investment in subsidiary

BBC Children in Need owns 100% of the issued ordinary share capital of £2 of Children in Need Limited (registered company 2461031), a company registered in England and Wales, which licenses products using the Pudsey Bear trademark.

A summary of the trading results and balance sheet of Children in Need Limited is set out below.

Turnover of £792k is derived from the sale of merchandise to the public through our online store and fundraising events (2015: £957k). In addition, Corporate Partners purchase Children in Need product to support their fundraising activities as well as sell their own products licensed by Children in Need Limited, £1,772k (2015: £1,006k).

Year to 30 Jun 16£’000

Year to 30 Jun 15£’000

Turnover 2,564 1,963

Cost of sales (444) (469)

Gross profit 2,120 1,494

Operating expenses (303) (283)

Net profit 1,817 1,211

Gift aid payment to BBC Children in Need Appeal (1,817) (1,211)

Retained in Children in Need Limited - -

Year to 30 Jun 16£’000

Year to 30 Jun 15£’000

Fixed asset

Tangible assets 13 24

Current assets

Stock 194 251

Debtors 1,738 537

Cash at bank and in hand 567 3,236

Total current assets 2,499 4,024

Creditors: amounts falling due within one year (2,497) (3,583)

Net current assets 2 441

Total assets less current liabilities 15 465

Creditors: amounts falling due after more than one year 0 (450)

Net assets 15 15

Share capital - -

Profit and loss account 15 15

Total funds 15 15

40

10 Tangible assets

GroupIT equipment & software £‘000

Furniture, fixtures & fittings £’000 Total £’000

Cost

As at 01 July 2015 405 1 406

Additions 22 - 22

Disposals - - -

As at 30 June 2016 427 1 428

Accumulated depreciation

As at 01 July 2015 321 1 322

Charge for the year 51 - 51

Disposals - - -

As at 30 June 2016 372 1 373

Net book value

As at 30 June 2015 84 - 84

As at 30 June 2016 55 - 55

CharityIT equipment & software £’000

Furniture, fixtures & fittings £’000

Total £’000

Cost

As at 01 July 2015 366 1 367

Additions 22 - 22

Disposals - - -

As at 30 June 2016 388 1 389

Accumulated depreciation

As at 01 July 2015 306 1 307

Charge for the year 39 - 39

Disposals - - -

As at 30 June 2016 345 1 346

Net book value

As at 30 June 2015 60 - 60

As at 30 June 2016 43 - 43

41

Valuation £’000

Cost £’000

Valuation £’000

Cost£’000

Fixed income

-maturing in more than 1 year 53,891 54,000 40,168 40,286

-maturing in less than 1 year 19,067 19,097 22,761 23,023

Corporate Bonds

-maturing in more than 1 year - - - -

-maturing in less than 1 year 34,355 34,282 44,391 44,334

Alternatives

-maturing in more than 1 year 4,972 5,000 - -

-maturing in less than 1 year - - - -

Deposits held with financial institutions 213 213 50 50

112,498 112,592 107,370 107,693

Included as:

Fixed asset investments 55,037 55,037 47,559 47,559

Current investments 57,461 57,555 59,811 60,134

112,498 112,592 107,370 107,693

11 Fixed and current investments

The portion of the Charity’s investment portfolio that is classified as fixed investments relate to grant creditors committed, or grants to be awarded and payable in more than one year. Current investments relate to grant creditors committed, or grants to be awarded and due for payment within one year plus any other short term liabilities.

Investments are analysed below, between Fixed Income - Certificates of Deposit, Floating Rate Notes, Gilts or high quality securitised credit (low risk loans), Corporate Bonds – Bank Deposits and Alternatives - income generating assets such as property funds. Investments are valued at current market value as at 30 June 2016.

Income in the year of £916k relates to interest earned on investments held in the year less revaluation losses (2015: £1,058k).

The investments can be analysed as follows:

2016 2015

2016£’000

2015£’000

Market value at 1 July 2015 107,370 104,260

Add: acquisitions at cost 124,084 98,612

Less: disposals at open book value (119,044) (95,165)

Add: Net losses on revaluation (75) (180)

Market value at 30 June 2016 112,335 107,527

Add: deposits held at financial institutions 213 50

Less: deposits held at 30 June 15 (50) (207)

Total investments at 30 June 2016 112,498 107,370

42

14 Operating leases

Within grants payable £45,521k is due to be paid within one year and £32,474k paid within the next two to three years.

Within accruals and deferred income there is £126k of deferred income which relates to a contribution to salary costs from Lloyds, one of our corporate sponsors which will be expended in the first six months of 2016/17 financial year.

Group 2016

£’000

Group 2015

£’000

Charity 2016

£’000

Charity 2015

£’000

Trade debtors 1,282 945 44 466

Amount owed by subsidiary undertaking 0 0 2,480 3,793

Taxation recoverable 0 45 0 45

Other debtors 2,043 1,071 2,043 1,071

Prepayments and accrued income 4,835 1,455 4,335 1,397

8,160 3,516 8,902 6,772

Group 2016

£’000

Group 2015

£’000

Charity 2016

£’000

Charity2015

£’000

Amounts falling due within one year

Trade creditors 1,669 945 1,660 945

Grants payable 45,521 38,683 45,521 38,683

Accruals and deferred income 764 829 756 823

Taxation 151 253 151 19

48,105 40,710 48,088 40,470

Amounts falling due after more than one year

Grants payable 32,474 31,126 32,474 31,126

32,474 31,126 32,474 31,126

Land & buildings

£’000Other£’000

Land & buildings

£’000

Other £’000

Operating leases which expire:

- within one year - 40 - 25

- later than one year and not later than five years - 38 - 20

0 78 0 45

12 Debtors

13 Creditors

2016 2015

43

15 Designated Funds

The Charity started to award grants a few weeks after Appeal 2015 and has continued that process during the year. As at 30 June 2016, the Charity had awarded £17,456k and was on track to fully allocate the remainder over the coming months. Appeal income is reserved by the Trustees for use in grant making and funds held at the end of June will be awarded as grants over the coming months.

The fund balance, movements and purpose for which funds held is shown in the table on page 19.

Designated Grant Funds - £43.1 million (2015: £36.3m)

At 30 June 2016 the Charity held designated grant funds of £43,143k, representing appeal income to be awarded to projects in future grant-making activity. The majority of this fund (£40,143k) relates to our core responsive grant activity. These balances represent Appeal income, which will be distributed within BBC Children in Need’s future grant making activity.

Designated Non Grant Funds - £5.2 million (2015: £8.0m)

Other designated funds are made up of interest earned on monies held (less operating costs) in previous years and do not include any donation income from the public. They also include the net assets of Children in Need Limited of £15k.

Funds are held for the following purposes:

- The ‘Continuity Fund’ is held to cover uncertainty of income available to fund costs.

- The ‘Development Fund’ of £1m is to allow for future investment and respond to growth opportunities.

- The ‘Investment Continuity Fund of £4m is to manage volatility or offset absolute loss in the value of income generating assets.

16 Taxation

BBC Children in Need, a company limited by guarantee was registered as a Charity on 7 August 2003. The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

17 Related Parties

Subsidiary UndertakingDuring the year the Charity entered into transactions with a related party, in the ordinary course of the charities activity. Trading balances outstanding at 30 June are as follows:

The charity has taken advantage of the exemption under paragraph 33.1a of FRS 102 not to disclose transactions with the subsidiary undertaking as it is wholly owned.

Key Management PersonnelAll principal officers who have authority and responsibility for planning, directing and controlling the activities of the charity are considered to be key management personnel. Total remuneration in respect of these individuals is £466k (2015: £435k).

18 Transition to Charities SORP (FRS 102)

The company transitioned to Charities SORP (FRS 102) from previously extant SORP 2005 as at 1 July 2014. There were no material transition adjustments required to be made following the change.

2016£’000

2015£’000

Subsidiary Undertaking 2,480 3,793