Income from grants and donations rose by £509 to £50,274. Surpluses from our Children's Festivals rose by £11,003 to £25,287. Contributions from schools and groups towards schools tours and out-of-schools work rose by £3,791 to £12,494. Net income from our trading subsidiary Children's World Enterprises Ltd. rose by £11,761 to a surplus of £10,281 (our main trading event is at the Glastonbury Festival of Contemporary Performing Arts, which did not take place in 2001). Despite undertaking an equivalent amount of work to the previous year, costs were reduced and charitable expenditure fell by £14,476 to £118,394.

We entered our new financial year on 1 Sep 2002 with free reserves of £47,751, which represents approximately 7 months unrestricted expenditure, as opposed to 3 months at 1 Sep 2001.

We are most grateful to the many grant-giving trusts who have supported Children's World's work during this period, and would like to offer particular thanks to the Lankelly Foundation, whose further grant of £15,000 per annum from September 2002, to cover the wages of our Chief Playleader, will continue until September 2004, and to the Esmee Fairbairn Foundation, whose grant of £10,000 per annum towards our special needs workshop tours continues until October 2004.

Although our financial position is currently fairly strong, it is essential that Children's World continues developing its primary trading and continues researching and approaching new grant-giving trusts for support, in particular for core costs and specific and vital ongoing wages, if we are to guarantee the survival of the Charity in future years.

The Accounts following are a summary of information extracted from the unqualified annual accounts of Children's World which were approved by the Trustees on 5 November 2002 and which have been submitted to the Charity Commission.

Anne Harris,
Treasurer & Trustee

PROPOSED BUDGET

FOR THE PERIOD 1 SEPTEMBER 2002-31 AUGUST 2003

PROPOSED EXPENDITURE			EXPECTED INCOME
(net rather than gross)			(net rather than gross)
WAGES (including Employers' NI)
DIRECTOR (35 hrs)	£21,500		LANKELLY FOUNDATION Towards Chief Playleaders's wages	£15,000
CHIEF PLAY LEADER (35 hrs)	15,750
			ESMEE FAIRBAIRN FOUNDATION Towards development of C.W.'s Special Needs Workshop Tours	10,000
2ND PLAY LEADER (30 hrs)	11,053

SESSIONAL WORKERS	12,000

ADMINISTRATOR (25 hrs)	8,392
	...................	......£68,695	EXPECTED CONTRIBUTIONS TOWARDS REGULAR TOUR COSTS FROM S. SCHOOLS	4,000
TRANSPORT	6,000
			EXPECTED FEES FROM WORKSHOPS SOLD TO MAINSTREAM SCHOOLS	6,000
INSURANCE	1,800

ACCOUNTANCY	2,880		EXPECTED INCOME FROM OUR CHILDREN'S FESTIVALS	15,000

NEW CAPITAL EQUIPMENT (Additional sound equipment, projector etc.)	4,000		EXPECTED GRANT AID FROM CHILDREN'S WORLD ENTERPRISES LTD.	10,000

CONTINGENCIES	1,175		OUT-OF-SCHOOLS PLAY PACKAGES FEES	3,000

TOTAL PROPOSED EXPENDITURE		£94,000	TOTAL EXPECTED INCOME SO FAR	£63,000

CHILDREN'S WORLD THEREFORE NEEDS TO

RAISE £31,000 FROM GRANT-GIVING TRUSTS