THE COMPASSIONATE FRIENDS

ANNUAL REPORT AND FINANCIAL STATEMENTS

31 MARCH 2006

Company Registration Number 04029535

Charity Number 1082335

CONTENTS

Legal and administrative information

Trustees annual report

Independent auditors' report

Statement of financial activities

Balance sheet

Notes to the financial statements

The trustees

Diana Lynette Youdale Chairperson

John Arthur Baldock Network Resources, Vice Chairperson

James Neale Antrobus Policies & Procedures

Linda Jane Hurcombe, Internal Communications (resigned 1 November 2005)

James Frederick Pringle IT Director

Margaret Pringle International Liaison Director

Jillian Valerie Tallon (resigned 5 November 2005)

Jenna Harrison SIBBS

Audrie Norris Public Relations

Marian Venn Events co-ordinator

Nora Riordan (appointed 5 November 2005)

Company secretary

Nora Riordan (appointed 5 November 2005)

Registered office

53 North Street
Bedminster
Bristol
Avon
BS3 1EN

Auditors

Burton Sweet
Chartered Accountants & Registered Auditors
Thornton House
Richmond Hill
Clifton
Bristol
BS8 1AT

Bankers

CAF Bank
PO Box 289
West Malling
Kent
ME19 4TA

Chairman's Review of the Year

Our last year financial year proved to be one of our most exciting years for some time. It has been productive and eventful, and the Board of Trustees is pleased to announce that the charity successfully achieved all of our main aims for the year.

Our aims were:

The development of a TCF web-site for bereaved siblings, targeting new younger users across a range of diverse needs.

To expand the TCF publication programme with the inclusion of a sibling leaflet writing group.

First of all the editorship of TCF News was undertaken by Mick Wilson, who in consultation with Boag Associates, and ATW Print Services, produced a first rate and very professional colour publication. The content of this newsletter was also changed to reflect more adequately the needs of its professional audience by illustrating the valuable work of The Compassionate Friends and the needs of bereaved families.

Whilst our sibling team produced its first leaflet called ‘A Sibling's Grief' for teenagers and young adult siblings, in November 2005. This quickly sold out and has already gone to a second print run.

In addition our leaflet subcommittee provide a valuable and robust service by periodically reviewing, updating, or rewriting where necessary, all of the TCF leaflets, as well as identifying areas where additional leaflets may be needed.

Eve Phillips continues to edit our popular quarterly journal “Compassion” which is eagerly awaited by our families every quarter, and is available free of charge to families during their first year as a user of our support services.

To further develop the promotion of TCF through the media

TCF Public Relations Director, Audrie Norris, has been very actively involved dealing with several TV and Radio enquiries, in addition to many journalists. This included a major programme involving Esther Rantzen, and TCF were also consulted over a proposal for training and an information leaflet for journalists dealing with the bereaved.

One of our biggest successes was securing a slot on the Radio 4 Charity Appeal for Sunday 11 th December 2005, which coincided with the TCF Worldwide Candle Lighting that is held each year in memory of all the children, siblings, and grandchildren that have died. The appeal was read out by our President Countess Mountbatten who herself is a bereaved parent and grandmother, and raised over £4,000.

Then in February this year TCF was able to re-establish a vital, and much needed, service for the Charity and its members with a Legal Helpline, which is manned by solicitor, Sefton Kwasnik, who provides free advice to bereaved families and the charity.

The provision of this service immediately led to live interviews for a programme by Sky TV's new legal channel. Due to the excellent contributions made by TCF a request was made by viewers for a further programme covering the issues related to the death of a child in more depth, which resulted in Sky TV devoting two hours to a programme on the ‘Loss of a Child'. The programme included sound advice from Sefton, and convincing contributions from one of our mums, Rosanne Kay. Viewers messages sent to the programme afterwards included praise for one of our founder members, Joe Lawley, who introduced the programme with a moving 20 minute account of the loss of his son followed by a typically articulate description of the founding of TCF. Recommendations from viewers included a knighthood for Joe.

Helpline

By the middle of 2005 an accumulation of retirements had seriously depleted the Helpline Team to 16 volunteers, and the Helpline Co-ordinator. However, recruitment and training in the later part of the year did provide a boost with the welcome addition of 7 new volunteers.

With rare exception, the dedicated team has managed to man the Helpline every day of the year, and 3,011 calls were responded to during the period April 2005 – March 2006. A significant rise of 17.5 % compared to the previous 12 months period.

Meanwhile another small and dedicated team under the umbrella of the Helpline responded to 321 Email Request Forms for Local Support details during the 12 months from April 2005 – March 2006.

TCF National Website

Our national website www.tcf.org.uk continues to develop and grow at a phenomenal rate, with the number of monthly visits to the site doubling from just over 12,000 in September 2004, to nearly 24,000 by September 2005, and by March 2006 the figure had risen to nearly 40,000 visits for the month.

Additional pages, containing information on the history of TCF, the charity's governing documents, a News page, details of our Legal Helpline, copies of ‘TCF News' (the charity's quarterly newsletter), fundraising events, Ways of Giving, and facilities to apply for Gift Aid.

Other News

The year started with the Annual Gathering which was successfully hosted for the first time in Cirencester at the Royal Agricultural College. Some of our more newly parents who had been accessing our support services via our website came and in the words of one mum:

‘ It was so comforting to meet so many people who knew exactly what pain losing a child causes you. I didn't once hide my tears that weekend. I felt so peaceful when I was there. I would definitely recommend the Gathering to anyone who is sadly in this club that none of us asked to join'.

This was followed in May with the TCF Scottish Forum in Perth, where by a strange coincidence a couple whose son had died as a result of the Tsunami were staying. After reading the TCF notices they quickly asked if they could join in with the workshops and gathering dinners were they were welcomed and supported by TCF members with compassion and warmth throughout the weekend.

In July two of our founder parents, Joe & Iris Lawley, hosted a ‘Walk' around Coventry and we visited the Nurses Home where on the 28 th January 1969 the Society of Compassionate Friends (as it was then called) was founded, in addition to Coventry Hospital where there is a TCF Plaque.

Then in August several TCF Trustees and members attended the TCF 4 th International Gathering and World Gathering on Bereavement Conference in Vancouver BC which was a wonderful opportunity to network with other internationally renowned professionals and TCF groups.

TCF has also been actively involved with the Coroners Reform Programme in consultation meetings throughout the year with the Department of Constitutional Affairs and other voluntary groups. In an address to MP's, Constitutional Affairs Minister, Rt Hon Harriet Harmen QC MP said ‘I'd like to thank the voluntary organisations who have advised me from the viewpoint of Bereaved Families'.

There have been many other significant events throughout the year that helped raise the profile, membership, and funds of TCF, and the Trustees would like to give particular thanks to all the TCF groups and individuals who have worked tirelessly for the charity throughout the year

Diana Youdale

Reserves policy

The trustees have established a policy that sufficient unrestricted funds are not held in fixed assets (free reserves) should be accumulated over a time to enable the activities of TCF to continue for three months, taking into account the liabilities which might arise in the event of TCF wholly or partly ceasing operation, and to provide for funding of anticipated capital expenditure.

As part of this policy the Trustees considered that the appropriate level of free reserves would be represented by between three and four months of resources expended, which equates to between £30,000 and £40,000 in general funds.

At the year end the level of free reserves amounted to £16,544. This is currently below target level. The trustees are currently looking at ways to increase this level.

Investment policy

The Trustees considered the most appropriate policy for investing any available funds. In the light of the moderate values of these funds and the periodic need to draw on the funds, at reasonable short notice, the trustees adopted a policy of placing these on bank deposit where a reasonable interest return is achieved. The deposit interest rates were kept under review and new arrangements were considered where appropriate.

The trustees

The trustees who served the charity during the period were as follows:

Responsibilities of the trustees

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity at the end of the year and of the incoming and outgoing resources for the year then ended.

In preparing those financial statements, the trustees are required to select suitable accounting policies and then apply them consistently, making judgements and estimates that are reasonable and prudent. The trustees must also prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its activities

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 1985. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Risk Assessment policy

In general terms, the Trustees regularly considered any areas of TCF operations where there was a perceived risk to the charity and appropriate action was taken to mitigate any risks that were identified. The Trustees also establish an internal review of the major risks to which the Charity was exposed (as part of the overall Policy & procedure review), in particular those related to the operations and finances of TCF, which were identified by the review.

Auditors

A resolution to re-appoint Burton Sweet as auditors for the ensuing year will be proposed at the annual general meeting in accordance with section 385 of the Companies Act 1985.

Small company provisions

This report has been prepared in accordance with the special provisions for small companies under Part VII of the Companies Act 1985.

Registered office:

53 North Street
Bedminster
Bristol
Avon
BS3 1EN

Signed by order of the trustees

Diana Lynette Youdale
Chairperson

Approved by the trustees on 18 th August 2006

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF THE COMPASSIONATE FRIENDS

YEAR ENDED 31 MARCH 2006

We have audited the financial statements which have been prepared under the historical cost convention and the accounting policies set out below .

This report is made solely to the charity's members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the trustees and the auditors

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards.

We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the Trustees Annual Report is not consistent with the financial statements, if the charity has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding trustees' remuneration and transactions with the charity is not disclosed.

We are not required to consider whether the statement in the Trustees Annual Report concerning the major risks to which the charity is exposed covers all existing risks and controls, or to form an opinion on the effectiveness of the charity's risk management and control procedures.

We read the Trustees Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it. Our responsibilities do not extend to any other information.

Basis of audit opinion

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion

In our opinion the financial statements give a true and fair view of the charity's state of affairs as at 31 March 2006 and of its incoming resources and application of resources in the year then ended and have been properly prepared in accordance with the Companies Act 1985.

BURTON SWEET
& Registered AuditorsChartered Accountants & Registered Auditors
Thornton House
Richmond Hill
Clifton
Bristol
BS8 1AT

STATEMENT OF FINANCIAL ACTIVITIES - YEAR ENDED 31 MARCH 2006

Incoming resources from generating funds

Income from non-charitable trading activities:

Other incoming resources

Resources expended

Costs of generating funds:

Charitable activities:

The charity has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the charity are classed as continuing.

BALANCE SHEET - 31 MARCH 2006

Fixed assets

Current assets

Funds

These financial statements have been prepared in accordance with the special provisions for small companies under Part VII of the Companies Act 1985.

These financial statements were approved by the trustees on the 18th August 2006 and are signed on their behalf by

DIANA LYNETTE YOUDALE
Chairperson

NORA RIORDAN
Company Secretary

NOTES TO THE FINANCIAL STATEMENTS

1. Accounting policies

Basis of accounting

The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice "Accounting and Reporting by Charities" (SORP 2005) and the Companies Act 1985.

The charity has availed itself of Paragraph 3(3) of Schedule 4 of the Companies Act 1985 and adapted the Companies Act formats to reflect the special nature of the charity's activities.

Cash flow statement

Donations

I. When donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods;

II. When donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred until the pre-conditions have been met.

Grants

Grants, including grants for fixed assets, are recognised within the accounts as they become receivable. Grants received in the accounting period in respect in respect of future accounting periods are deferred until those periods. All material grants are disclosed in accordance with the statement of recommended practice.

Fund accounting

Unrestricted funds

Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds

Designated funds

Resources expended

Resources expended are accounted for on an accruals basis and have been classified under headings that aggregate all costs related to the category. Resources expended include attributable VAT which cannot be recovered.

Where resources expended cannot be directly attributed to particular heading they have been allocated to activities on the basis of estimated aggregated time expended on each activity as follows:

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Management and administration costs are those costs incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements.

Depreciation

Freehold land & building - 2% per annum straight line

Office equipment - 33% per annum reducing balance

Stocks

Stock consists of purchased goods for resale. Stocks are valued at the lower of cost and net realisable value. Items donated for resale or distribution are not included in the financial statements until they are sold or distributed.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

2. Donations

3. Grants receivable

4.Income from activities in furtherance of charity's objects

5. Income from generating funds

6. Interest receivable

7. Fundraising and publicity

8. Costs in furtherance of charitable objects

Provision of charitable services:

Support costs:

9. Governance

10. Taxation

11. Total resources expended

The aggregate payroll costs were:

No employee received emoluments of more than £50,000.

Particulars of employees:

Other costs:

12. Operating surplus/(deficit)

No trustees received any remuneration for their services during the year.

13. Tangible fixed assets

Cost

Depreciation

Net book value

14. Debtors

15. Creditors: Amounts falling due within one year

Other creditors in 2005 of £12,620 relates to the Annual Gathering, this has been paid in full in April 2005.

16. Commitments under operating leases

Land and buildings

Donations
The Compassionate Friends relies heavily on donations to cover the everyday running costs of the organisation in supporting bereaved parents and their families. Every gift towards this is greatly appreciated. If you are liable for UK Income Tax, then if you would kindly complete a Gift Aid form, any donation you make to TCF will be increased by almost one third.

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