ACTIVITY REPORT
In 2023 Hope and homes for children – Bulgaria continued its work, following its main mission, vision and goals – supporting the government in the implementation of the reform of the institutionalization of child care in Bulgaria and creating conditions for supporting children and families at risk. The year was marked by serious challenges – after the pandemic of COVID-19 there were severe economic, social and psychological consequences – high unemployment, poverty, limiting opportunities for children and families and increasing vulnerability of risky groups.
During the 2023 reporting year, HHC implemented activities in several areas:
- Direct work with children and families
The organization has a strong practical experience in improving the conditions for raising children in their biological families, as well as in direct support of children and families. The creation of resilience within the family to ensure stability after the organization has withdrawn its direct support is a key part of the work of Hope and homes for children – Bulgaria. In this regard, direct work with all stakeholders and constant contact with the target groups are of great importance, which is why the organization relies heavily on the developed District DI Coordination Mechanisms. They help to support and assist the process as well as the care reform for children aged 0 to 3 years. The Coordination Mechanisms function as an effective tool for inter-institutional interaction with all stakeholders in order to resolve specific cases of children and their families.
Within 2023, initiated by the organization, the District DI Coordination Mechanisms held three sessions in Burgas and Kardzhali, as well as continuous counseling of the members of the DDICMs across the country.
Our organization has considerable experience in working with children, their families and communities, central and local authorities. This experience supports the creation, improvement and dissemination of sustainable models of family care and such close to the family care. Hope and homes for children – Bulgaria has developed a model for closing institutions and replacing them with a specific set of preventive and alternative services, which is recognized by UNICEF and the World Health Organization as best practice in this area.
Within the “Ending the Institutionalization of Children in Bulgaria: 2023-25” project Hope and homes for children actively supported and contributed to the prevention of abandonment of 347 children in the regions of Pleven, Sofia, Sofia region, Burgas, Varna, Vidin, Vratsa, Veliko Tarnovo, Kardzhali, Stara Zagora, Sliven, Haskovo and Yambol in 2023. The organization is also actively working for the reintegration of 14 children from institutions in the regions where we apply our models of work. Support was also provided to 82 children who have been placed in foster families from institutions and from neonatology hospital units. We succeeded in finding the best alternative for them – living in a family environment.
Within the process of closing the specialised institutions – Homes for medical and social care for children (HMSCC), our organisation took the initiative and received the support and together with the Agency for social assistance (ASA) and the national teams on places, a re-assessment of 158 children placed in the last remained two baby homes in Stara Zagora and Kardzhali and in the 8 family-type placement centres for children with disabilities and in need of permanent medical care in Sofia, Pernik, Plovdiv (2), Montana, Gabrovo, Ruse and Targovishte was carried out. After the completion of the reassessment, Hope and homes for children – Bulgaria prepared a report with conclusions and recommendations, which was sent to the Ministry of labour and social policy (MLSP), Agency for social assistance (ASA), Ministry of Health (MH) and State agency for child protection (SACP).
During 2023, the team of Hope and homes for children – Bulgaria managed to take out 6 children from Family Type Placement Centers for Children and Youth with Disabilities (FTPCCYD) and to ensure their return to their biological families and/or their placement in a foster family.
During the year Hope and homes for children – Bulgaria also implemented some fundraising events from corporate and private donors. We implemented a campaign “Coziness at Home” together with Electrohold Bulgaria and provided support for 45 families in the regions of Montana, Pernik, Sofia city, Sofia region, Pleven, Vratsa and Vidin. Our campaign has ranked among the best ones in the category “Investor in Society”. We continued to promote our campaign “Giving hope and a home for every child” on the platform of Support.bg. This year we awarded Lidl Bulgaria with the “Family Benefactor” prize for their support in our activities.
- Strengthening the capacity of the child protection system
One of the key ways in which Hope and homes for children – Bulgaria is changing attitudes and developing the scope of its work is through the provision of expert and specialized support and training for all relevant institutions at district level on topics related to deinstitutionalization, child care, support for families, foster care, multidisciplinary approach and inter-institutional interaction.
The direct work with children and families and the development of various intersectoral partnerships proved again how effective our models of work are – Active Family Support and the District DI Coordination Mechanism, recognized as good practices by UNICEF – Geneva and the Ministry of Labour and Social Policy.
We supported the Child protection departments (CPDs) with 443 consultations on cases of children and families at risk of abandonment and working on reintegration (return to biological or foster family from institutions). During the year we held 35 coordination meetings with Directors of Social Assistance Directorates, Heads of Child Protection Departments, social service providers, local partners.
Our organization is also actively working to improve foster care in respect to disabled children. A training was organized for 107 foster parents from Haskovo and Dimitrovgrad municipalities, 20 motivational and informational meetings were held with foster parents and the Regional Foster Care Teams.
In 2023 our team invested in two trainings on effective communication between individual members and on techniques for achieving results in communication with people who are external to the organization.
Hope and homes for children – Bulgaria continued to promote and disseminate our work through the organization’s website hopeandhomesbg.com and through social media. During the year 39 publications were prepared and uploaded. On social media there was also an exceptional performance with 123 posts on our Facebook page and 157 posts on Twitter, LinkedIn, Instagram.
Two billboards were placed in Sofia for two months and an advertising spot was played 360 times by FM+ radio channel. Three interviews about our work were also broadcast nationally.
In 2023, Hope and homes for children – Bulgaria organized the Regional Conference “Eleven years of support of children and families”.
At the Conference Georgi Simeonov, the Executive Director of Hope and homes for children – Bulgaria shared:
“ We have set ourselves an ambitious goal – that Bulgarian babies do not suffer the harm of institutional care. We found partners and we developed effective tools in the process of deinstitutionalization. We stood close to families in crisis and gave them the confidence to take loving care of their children.”
In 2023, an evaluation of our organization based on our 11 years of work in the country, “11 Years of social work for active families, systems and communities 2011- 2022,” was implemented by external consultants. The evaluation involved 127 participants from 23 districts, 30 cities and 3 villages.
- Advocacy work
Hope and homes for children – Bulgaria is a member of the Childhood 2025 Coalition – an informal structure that works actively for the implementation of the deinstitutionalization reform and the support of children and families in Bulgaria through activities on prevention, reintegration, provision of social services, advocacy, capacity building, etc. In 2023, the Coalition continued to actively implement various initiatives and meetings such as participation in thematic forums and events, as well as to develop texts, statements and official letters aiming at the development of the deinstitutionalization process.
During the reporting period, the Childhood 2025 Coalition held 6 meetings as its representatives participated in 3 meetings at the political level, including those with the Minister of Labour and Social Policy, the Executive Director of the Agency of Social Assistance, the Deputy Minister of Health and others, where the vision for the continuation of the reform until 2025, the development of innovative services, the improvement of the quality of the social services, the social services act and the development of secondary legislation to it, the support of vulnerable groups, taking out of the children from the Homes for medical and social care for children and the protection of their best interests were discussed.
The Childhood 2025 Coalition prepared and sent 4 letters to the MLSP, ASA and MH regarding the implementation of the deinstitutionalization process and the level of success, as well as specific proposals for improvements of the process. The Coalition sent a statement on good practices in the social sphere to the Agency of the quality of social services. The Coalition and its members, including Hope and homes for children, participated in the Council formed for the closure of the last 4 HMSCCs under the MLSP and the working groups established under it. Hope and homes for children was very active and participated in all meetings and sessions of the Council as well as its working groups.
Hope and homes for children – Bulgaria has successfully developed its child participation and advocacy programme. 11 interactive sessions were held during 2023. The topics addressed focused on children’s rights, child participation and advocacy for disadvantaged children, and active learning through action and group work.
Hope and homes for children’s youth program participated in a meeting with the UN.
Victoria and Mihail are part of the Hope and homes for children’s Youth Participation Program in Bulgaria. They are also the advocates and the voice of those children and youth who do not have the opportunity to be heard by state institutions. The right of children to have a family, to learn, to have friends and to develop their potential are part of the rights that must be constantly defended. On the 2nd of May, the 95th session of the United Nations Committee on the Rights of the Child took place in Geneva. At this top-level forum, our young people were invited to present their perspective on Bulgaria’s progress in respecting the rights of the child.
The Convention on the Rights of the Child was adopted in 1989 and ratified by the Grand National Assembly in 1991 and is part of the domestic law of our country. Every 6 years a review of the results achieved is carried out and targets are set to be met. This year, the participants in our program had a chance to be heard and to start working on their priorities.
Here is what they shared with us before the meeting.
Victoria: “My life is great. I have a wonderful family and home, supportive friends and lots of opportunities to make my voice heard. A voice that is heard and respected. Unfortunately many children, teenagers and adults don’t have that chance. And that’s not fair. Because of this, we, the young advocates of Hope and homes for children – Bulgaria will continue to seek change.”
Mihail: “The whole world is a playground. Children play freely here no matter what color their skin is, where they’re from, where they’re studying, and as our meeting with the UN Committee on the Rights of the Child is approaching, it’s important to remember these things.”
At the very meeting they both put the following highlights:
- The right of children to live in a family. One of the fundamental rights, but in Bulgaria there are still children who are placed in institutions and are deprived of family care. They do not have a personal choice, they do not have the opportunity to develop their full potential and to assert their positions.
- The right to choose and have a voice. Children with disabilities, children in small settlements, children from minority groups are not treated equally and this is not fair and there must be changes in this regard.
- The right to education. In our country, poverty is one of the factors for lack of access to education, social exclusion and migration causes.
- Monitoring of all activities by the children themselves. Any progress towards respect for children’s rights is measured by adults, which is not entirely objective. Our young people suggest that children should also provide an assessment and that they, by their perception of the implementation of legislation, should have an equal voice in reporting on the progress of our country. This means taking responsibility and seeking efficiency from the implementation of legislation.
To enable Bulgarian children to be happy and to work on the development of Bulgaria Victoria and Mihail and their peers from the Youth’s Participation Program suggest:
o Elinimation of the institutional care for children
o Work oriented to the termination of child abandonment. Even small institutions should only place children as a last resort. Put another way, to invest resources into the family so a child does not end up separated from the parents due to poverty.
o Improvement of the quality of care for children in Family-type placement centres and seeking alternatives for those placed there.
o Independent living for young people from the family-type placement centres who are now condemned to spend their whole lives in institutions. Thus they have to constantly adjust to other people and have no sense of closeness and family.
o Monitoring, supervision and active participation of children in the implementation of the European Child Guarantee with regard to the respect of children’s rights in Bulgaria.
The UN Committee on the Rights of the Child has also received specific questions that have yet to be answered. Much has been done for the children in recent years, but much remains to be done, and any time lost is measured in grown-up children who have not fulfilled their potential.
– Why are there still four HMSCCs and what is the plan for them?
– How will the quality of the care for the children in the FTPCs be improved and how will alternatives be sought for them – foster care placements for example?
Victoria and Mihail were pleased to have been able to advocate for the children “without a voice” and they strongly hope to be heard and specific steps to be taken.
The Youth’s participation programme of our organization continued to organize initiatives related to the rights of vulnerable children. At the request of the youth’s participation programme of Hope and homes for children – Bulgaria, a meeting was held on the 7th of November at the Ministry of Labour and Social Policy with Elka Nalbantova, Deputy Minister.
Our Youth Program aims to build young people with a sense and critical thinking on respecting the rights of the child and who can practically become advocates for those children who are deprived of a home, family or those who due to some health and other reasons remain “invisible” to society. In their role as advocates they meet with representatives of the government and the UN. With the help of the responsible institutions, they seek specific solutions to pressing problems.
The meeting requested was to present their views on the policies in place for the development of the children in our country and on how the rights of children are respected. The children outlined their views on any progress our country is making in the areas of education, health and inclusion of children with disabilities in public life. The clear direction that every child should live in a family environment after the closure of the Homes for medical and social care, fills them with optimism, but their concern is the slowdown of these processes in the last three years. Time is the greatest enemy because it does not wait for us as it goes by. Children are growing up and years are counting and having been at the age of 10 before is now 13 years of age so their thinking has changed too. In their families they are already talking about where they are going to study, what sports they are going to play, what profession they are going to choose. This is what the family is – the natural place for every child where they receive love and the opportunity to develop their abilities and can dream.
What happens to children who grow up without a family environment? Is it fair? Why does our society allow hundreds of children in Bulgaria to be deprived of their dreams? What does the Governement do for these children? What will the Governement do for these children?
The participants in our Youth Participation Program, who act as advocates and voices for the institutionalized children, synthesized their inquiry to two questions:
– “Why have the last 4 Homes for medical and social care not been closed and when will this happen?” There are more than 200 children living in them who also suffer from institutional care.
They presented to Deputy Minister Mrs. Nalbantova the world studies how the nervous system of children who are not raised in families changes and what the consequences are for the society. They told her about their encounter with a wooden baby cot taken from a closed baby home that had been gnawed by a little child’s teeth. This cot has been touched by the agony of children in the 21st century in Bulgaria and they are probably now their age. So this is why the question “Why have the last 4 homes for medical and social care not been closed and when will this happen?” is very important.
– The second question, “What are the alternatives for children living in family-type placement centres?” is also on the agenda in our society. Due to the lack of foster families, at this stage these children and young people have no other alternative than being placed in an institution for life.
The participants shared their impressions of their visits to the FTPC – beautiful buildings, polite staff, equipped rooms, but something is missing!
Individual approach, dreams and family are missing. You cannot see these children in the streets, parks and gardens. The MLSP should offer a new approach so that those placed in the FTPCs can also move on towards independent living. The solutions are – more staff, alternative care and the right to develop everyone’s individual abilities.
The children and young people emphasized on the importance of all of us to contribute to the better emotional development of those in alternative care and to look for ways to share this with everyone. Mrs. Elka Nalbantova encouraged the participants to pass on their experiences to other children, as well as to look for joint initiatives with schools and to attract new supporters. She said that she will also start reffering the question to ASA about the improving the care in the FTPCs for children with disabilities, who were also part of the meeting.
At the end, the children and youth from the program presented their work – the Alternative Child Report sent to the UN and the Good Child Helper Booklet.
Deputy Minister Elka Nalbantova suggested that the Children’s Participation Programme should be included in the development of a Child Strategy along with answers to several questions. The Ministry wished to meet again in 2024 and see how the issues raised were addressed.
As a branch of the UK charity Hope and homes for children, the Bulgarian organisation participates in a number of forums at European and international level, as well as in the development of significant EU policy documents on children’s rights and protection.
- Fundraising
Eight out of ten of the 5.4 million children living in institutions worldwide have at least one living parent or relative. Contrary to their purpose, institutions harm children, resulting in an average developmental delay of one month for every three months spent in an institution. A disturbing fact is that over 50% of these children are subjected to physical or sexual abuse when separated from their families.
Hope and homes for children – Bulgaria operates in 13 out of 28 Bulgarian districts in 2023. With only four old-style institutions left to be closed, our organization serves as a catalyst for the global elimination of institutional care. We are proving that institutions are an unacceptable way to raise children, and we seek to build a global consensus on this.
Local and international businesses supported our work in Bulgaria. Our largest donors are from Liechtenstein, Denmark and the USA: the Medicor Foundation, the VELUX Foundations and the Eurofins Foundation. We are proud to mention that among our Bulgarian donors there are such as Electrohold Bulgaria EAD, Borika Bank Service AD, Euroins AD, JYSK Bull EOOD, Dundee Precious Metals – Krumovgrad EAD.
We have one network campaign open on Podkrepi.bg and one successfully completed on Bithope.org.
Our campaign “COZINESS AT HOME” with Electrohold Bulgaria EAD was nominated at the 20th Anniversary Awards for Investment in Society of the Bulgarian Business Leaders Forum in March 2023. Our Deinstitutionalization coordination mechanism was nominated for Social Innovation by the Ministry of Labour and Social Policy.
Since its establishment in 2011, Hope and homes for children has been working on the following seven out of the seventeen UN’s global 2030 sustainable development goals, although these were only detailed in 2015: eradicating poverty, ending hunger, good health, quality education, responsible consumption and partnerships for purpose and in the following areas of intervention:
- Prevention of abandonment of babies
- Supporting the return of babies to their biological family
- Placing them with a foster family
- Advocacy, counselling, supervision and transfer of good practices
We gratefully accept your help on: IBAN: BG64STSA93001527795692.
The others on us
-„I have been working with HHC since 2015 and continue to do so in a responsible and fruitful partnership to improve the well-being of children and families in our country. The people from HHC are inspirational and leaders to follow in the DI process.” (Deputy Minister of Labor and Social Policy for 2017-2018)
– „HHC has played a key role in changing child and family care policy, as they helped at one of the most important moments – when solutions for DI were being sought. As partners of the state, the HHC-ers play the role of initiators, advocates, experts, family support specialists, trainers and consultants. Their international experience, available support resources and dedicated team are HHC’s distinctive characteristics” (Chair of the SACP 2009-2012)
– „ As a partner of the state at the national and regional level, HHC has contributed to the development of a system of services to support families with children at risk and to change the policy of care for children and families. The team plays key roles – such as an initiating and advocacy role, a coordinating and communication role, as well as an expert and advisory role.” (Deputy Executive Director of ASA 2009-2011)
-„ We have been collaborating with HHC Bulgaria on childcare reform since 2010. We share experiences and challenges in DI at bilateral meetings, at the platforms of the organizations in the HHC network, during study visits and conferences. We are familiar with HHC’s baby institution closure projects and the actions related – ACTIVE family support, local authority support, service development and capacity building. In Moldova, we are also applying elements of the family support approach as well as partnership with the state to ensure commitment and sustainability of the reforms. Bulgaria has made tremendous progress in DI over the last 10-15 years and HHC has played an important role!“ (Director of HHC–Moldova)
-„We have been working with HHC since the establishment of DDICM in the district of Burgas. This is a team of high professionalism, of dedication to work, of skills for field work and knowledge of how to help families in critical situation. Our successes are the children at risk who stayed with their biological parents and the children who left institutional care.“ (Deputy regional governor – Burgas)
– „It was a long time ago, in 2012. The mother was not well – right after she gave birth to the baby, she neither wanted to feed, nor to look after the child. They were in the hospital because of the child’s kidneys, but the mother had thrown the bottle of milk out the window… she had left the hospital, not knowing where… And the child went to a “home”… Then Kremena came and started helping us to bring the child back – by repairing the room, providing us with firewood, as well as with food, diapers, medication for the child. Every time she reassured me, told me to believe that I would be fine! She gave us a photo album of the child and the family to see how much we had achieved! We made it!“ (a father, village of Kalekovets)
– „My granddaughter was born in 2013, a methadone baby, with a 50% WCAC since birth. Her mother is a drug addict. She could not care for the child. The baby walked late, talked late, we had so many fears! HHC helped us in a difficult time – I was laid off from work and after the unemployment benefits period – left without money, at the age of 60. Kremena helped us with everything we needed: adapted baby formula, clothes, diapers, gas invoices, because we often went to medical exams in Plovdiv. They helped us with the legal support for the adoption. The child’s independence is our biggest success! She goes to school, she is doing great and draws very nicely! Here is a drawing for me. I love you, daddy!” (grandparents-adopters, village of Kaloyanovo)
– „It was 2018. It was a difficult time, my daughter – a minor mother, with a minor child, both at risk! The child could not speak, he was hyperactive, he had a reflux and needed adapted food… My daughter did not care for the child, she treated him as a younger brother… Without Valeria from HHC we would not have survived physically, we needed food for the child, but also for us… They helped us until we got our feet back on the ground. Together we built a network of support – with the CPD, the kindergarten and specialists. A faith that we would make it has awakened. Five years later, here we are – we have a special child in preschool. In the beginning he was a child with special needs, now he is developing in a special, unique way!” (a grandmother in Sofia)
HOPE AND HOMES FOR CHILDREN – BRANCH BULGARIA
ANNEX TO THE ANNUAL FINANCIAL STATEMENT FOR 2023
- INCORPORATION AND REGISTRATION
HOPE AND HOMES FOR CHILDREN – BRANCH BULGARIA is a non-profit organization, registered under the Law on Non-profit Organizations, company case 637/2011110 according to the inventory of the Sofia City Court for 2011, with seat and registered address: city of Sofia, 21, Nikolay Kopernik Str., block 21, entrance B, apt 9. HOPE AND HOMES FOR CHILDREN – BRANCH BULGARIA is a branch of HOPE AND HOMES FOR CHILDREN /Foreign non- profit legal entity “HOPE AND HOMES FOR CHILDREN”/ with seat – Great Britain, Register: Register of Charities at the Charities Commission of England, number of registration in the register: 1089490, legal form: charity organization.
Objectives that will be implemented through the branch of the foreign non-profit legal entity:
Providing loving family homes for children and promoting good practice among childcare professionals
To achieve these objectives, the branch will implement projects and initiatives that support childcare reform towards community-based services for children and families.
HOPE AND HOMES FOR CHILDREN is represented by an executive director who represents the branch before all interested parties, appoints and hires experts, manages and organizes the work of the branch, makes decisions, prepares and submits annual reports on the branch’s activities, prepares the branch’s internal rules, represents the branch before the court and banking institutions.
- ACCOUNTING PRINCIPLES AND BASIS FOR THE PREPARATION OF THE ANNUAL FINANCIAL STATEMENT
2.1. General
HOPE AND HOMES FOR CHILDREN maintains its current accounting and prepares its financial statements in accordance with the requirements of Bulgarian legislation.
The financial report has been compiled in accordance with the National Accounting Standards (NAS) and mainly in accordance with Accounting Standard (AS) No.9 Presentation of the financial statements of non-profit enterprises.
HOPE AND HOMES FOR CHILDREN keeps its accounting records in Bulgarian Lev (BGN), which it accepts as its accounting unit. The data in the financial report are presented in thousands of BGN, in compliance with the historical price principle.
As of the date of preparation of the Annual Financial Report, the management has made an assessment of the organization’s ability to continue its activity as a going concern. In forming this judgment, all available information for the foreseeable future, which refers to at least, but is not limited to, twelve months from the date of preparation of the financial statement has been taken into account.
2.2. Comparative data
HOPE AND HOMES FOR CHILDREN presents comparative information in this financial statement for a prior year. The presentation and classification of articles in the financial statements, accounting policies and valuation methods are preserved and applied in subsequent reporting periods in order to achieve comparability between accounting data and indicators in different reporting periods.
2.3. Caution
The management has evaluated the assets and liabilities as of the date of preparation of the financial statements in order to eliminate assumed risks and expected losses.
2.4. Accrual
Revenues and expenses from transactions and events are reflected in accounting at the date of occurrence, regardless of the time of settlement of payments for them.
2.5. Materiality
In its financial statements, the enterprise presents separately each significant group of items of a similar nature.
2.6. Compensation
The enterprise does not make offsets between assets and liabilities or income and expenses and reports separately both assets and liabilities and income and expenses.
2.7. Eminence of content over form
Transactions and events are reflected in accordance with their economic content and nature, regardless of their legal form.
- DEFINITION AND ASSESSMENTS OF THE ELEMENTS OF THE BALANCE SHEET AND INCOME STATEMENT
3.1. NON-CURRENT (FIXED) ASSETS
Initial evaluation
At initial acquisition, tangible and intangible fixed assets are valued at cost, which includes the purchase price, including customs duties and all direct costs necessary to bring the asset into working order. Direct costs are: site preparation costs, initial delivery and handling costs, installation costs, project-related fee costs, non-refundable taxes, and others.
HOPE AND HOMES FOR CHILDREN has determined a value threshold of 1000 BGN below which the acquired long-term tangible and intangible assets, regardless of whether they have the characteristics of a long-term asset, are treated as a current expense at the time of their acquisition.
Subsequent evaluation
After initial recognition, tangible and intangible fixed assets are accounted for at their acquisition cost less accrued depreciation, according to the recommended approach of NAS.
Subsequent expenses
Repairs and maintenance costs are recognized as current in the period in which they are incurred. Subsequent costs incurred related to long-lasting tangible assets, which have the character of replacement of certain nodal parts and aggregates or of remodelling and reconstruction, are capitalized to the book value of the relevant asset and its remaining useful life is reviewed at the date of capitalization. At the same time, the unamortized part of the replaced components is written off from the book value of the assets and recognized in the current costs for the period of the reconstruction.
3.2. CURRENT (SHORT-TERM) ASSETS
3.2.1. Receivables
CURRENT RECEIVABLES could be:
– receivables from customers and suppliers;
– other receivables – receivables from donors under funding agreements, receivables from accountable entities, awarded receivables, tax refunds and others.
Current receivables are initially valued at their nominal value at the time of their occurrence. Current receivables in foreign currency are valued at the time of their occurrence, and their BGN equivalent is formed by the amount of the currency and the central exchange rate of the BNB on the date of the transaction.
Periodically, current receivables in foreign currency, which represent cash positions, are valued at the date of the financial statement, as well as at the date of the interim financial statements at the central rate of the BNB (closing rate).
The resulting differences in valuation at the closing rate at the date of the financial statement are reported as current financial income or current financial expense.
Current receivables are written off when one of the following circumstances occurs:
– expiration of the limitation period for the claim, but no more than 5 years from the moment the claim became due;
– indemnity transfer of the claim;
– the debtor’s bankruptcy proceedings have been terminated with an approved recovery plan, which foresees incomplete satisfaction of the enterprise; only the reduction of the claim is written off;
– with an effective court decision, it has been decided that the claim or part of it is not due; only the non-due part of the claim is written off;
– before the expiration of the limitation period, the receivables have been repaid by virtue of law;
– when obliterating the debtor, when the claim or part of it has become unsatisfied; the unsatisfied part of the claim is written off.
3.2.2. Cash
Cash owned by an organization are such as cash on hand, balances in bank and deposit accounts.
Cash in BGN are valued at their nominal value, and cash in foreign currency is reported at acquisition rate. The reduction of cash in foreign currency is reported at the exchange rate of their sale. The differences are presented as current financial income or financial expenses. Cash in foreign currency as of the date of the financial statement is valued at the closing rate of the BNB as of December 13 of the current year. The resulting differences are reported as current financial income or current financial expenses
3.2.3. Prepaid expenses
These are expenses of the organization, the payments for which were made in one accounting period, but the economic benefit from their expenditure is expected to occur in the next accounting period. Depending on their content, they can be classified as financial and non- financial expenses for future periods, including interest on leasing contracts, prepaid rent, insurance etc.
3.2.4. Equity
– registered capital (statutory, founding) – the registered and paid property contributions of the founders according to AS 9;
– other reserves – represent the reserves resulting from the organization’s activity, since by law, it does not form a financial result from its activity.
3.2.5. Liabilities
Liabilities are classified as:
– liabilities to financial institutions;
– advances received;
– obligations to suppliers;
-other liabilities.
Liabilities are valued at the value at which they were incurred. Long-term liabilities with a fixed maturity are subsequently valued at amortized value by applying the effective interest rate method.
Liabilities in foreign currency are valued at the time of their occurrence, and their BGN equivalent is formed by the amount of the currency and the central rate of the BNB on the date of the transaction.
Periodically, liabilities in foreign currency, which represent cash positions, are valued as of the date of drawing up the financial statement as well as the date of the interim financial statements at the BNB central rate (closing rate). The resulting differences in valuation at the closing rate at the date of the financial statement are reported as current financial income or financial expense.
3.2.6. Deferred income and financing
Deferred income and financing are classified on the one hand as
– long-term – with a settlement period exceeding 12 months;
– short-term-with a settlement term of up to 12 months (or the corresponding proportional part of those classified as long-term, which is subject to recognition for the current period).
On the other hand, they are subdivided into:
– revenues for future periods and financing for the current activity and
– revenues for future periods and financing for the acquisition of fixed assets – are recognized in the composition of current revenues up to the amount of the depreciation charged in the current financial year of the respective assets for the acquisition of which they were provided.
- REVENUES
Revenues are classified into:
Income from regulated activity, including income from conditional donations, income from unconditional donations, other income from regulated activity
Income from business activity (Sale of goods or provision of services) – in cases where the organization carries out business activity
HOPE AND HOMES FOR CHILDREN – BRANCH BULGARIA does not carry out business activity.
The following are recognized as revenues from regulated activity: the received financing under condition – in accordance with AS 9 “Presentation of the financial statements of non-profit enterprises”, respectively in accordance with the provisions of AS 20 “Accounting of government donations and disclosure of government aid”; income from unconditional donations; other revenues from regulated activity that are subject to immediate recognition in the result for the period and do not arise from business activity.
- EXPENSES
Expenses are recognized in the Statement of Income and Expenses when there is a reliably estimable decrease in the economic benefit associated with the decrease in assets or the increase in liabilities and in accordance with accounting principles for current accrual and comparability of income and expenses.
Expenses are classified and reported by economic elements as follows:
– expenses for materials;
– expenses for external services;
– depreciation expenses;
– expenses for salaries;
– insurance expenses on employment and civil contract remuneration;
– tax expenses;
– donation expenses;
– other expenses;
– financial expenses.
Subsequently, the expenses are allocated by functional direction in the following categories:
– expenses for the regulated activity;
– administration and management expenses.
Expenditures for regulated activity are analytically organized by projects that the organization implements for the reporting period, so that comparative information can be provided on the amount and type of expenses in accordance with the requirements of the funding organization (donor) and structured adequately of the approved project budget.
Financial expenses are related to the use of resources provided to the enterprise.
Interest is charged regardless of the time of settlement of the debts.
Administrative and financial expenses are reported as current.
- DISCLOSURES IN ACCORDANCE WITH AS1 “PRESENTATION OF FINANCIAL STATEMENTS”
– Exchange rate for recalculation of monetary positions in foreign currency as of the date of the financial statement – the Annual Financial Statement of HOPE AND HOMES FOR CHILDREN – BRANCH BULGARIA as of 31.12.2023 contains only currency exposures in euros, valued according to the fixing of the BNB to the euro, namely 1(one) Euro = BGN 1.95583.
– Enterprises in which the organization owns a 20 percent or more shareholding – HOPE AND HOMES FOR CHILDREN – BRANCH BULGARIA does not own shareholdings in other enterprises.
– Amount of advances and credits provided to administrative staff and management bodies – during the reporting period, the organization did not provide advances or credits to its administrative staff or management bodies.
– Guarantees provided to the administrative staff and the management body by category – there is no information as of the date of the report that the organization provided guarantees in favour of the administrative staff or the management body.
- DISCLOSURES REQUIRED BY APPLICABLE FINANCIAL REPORTING STANDARDS
- Intangible fixed assets: (in thousands BGN)
Category | 31.12.2023 | 31.12.2022 |
Book value of intangible fixed assets with restriction on the right of ownership (pledges) by group of assets | 0 | 0 |
Value of commitments made for the acquisition of intangible fixed assets, including payment of advances | 0 | 0 |
Value of intangible fixed assets used in the activity – property of others | 0 | 0 |
Book value of intangible assets that are temporarily out of use | 0 | 0 |
Book value of fully amortized intangible fixed assets | 0 | 0 |
- Tangible fixed assets: (in thousands BGN)
Category | 31.12.2023 | 31.12.2022 |
Book value of tangible fixed assets with restrictions on the right of ownership (pledges and mortgages) by group of assets | 0 | 0 |
Value of commitments made for the acquisition of intangible fixed assets, including payment of advances | 0 | 0 |
Value of intangible fixed assets used in the activity – property of others | 0 | 0 |
Book value of tangible fixed assets that are temporarily out of use | 0 | 0 |
Book value of fully amortized tangible fixed assets | 58 | 72 |
- Amortization
Amortization is recognized in the statement of income and expenses, based on the straight-line method based on the expected useful life of the assets, and it begins to be charged from the beginning of the month following the month of commissioning.
Land and acquisition costs of tangible fixed assets are not depreciated.
The depreciation rates used are as follows:
Groups of Assets | Annual amortization rate (%) |
Furnishings and other tangible | 15 |
Motor cars | 25 |
Computer equipment, peripherals and software | 50 |
- Long-term financial assets
As of the date of the statement the organization does not own long-term financial assets.
- Deferred taxes
No tax temporary differences have been posted.
- Inventory (in thousands BGN)
Category | 31.12.2023 | 31.12.2022 |
Inventory value at net realizable value | 19 | 0 |
Accounting value of inventories pledged as collateral for liabilities | 0 | 0 |
Amount of reduction in carrying amount to net realizable value( impairment) | 0 | 0 |
Amount of the recovered impairment loss recognized in the current period | 0 | 0 |
Difference between the book value and the market value of the inventory at the date of preparation of the report (when it is material) | 0 | 0 |
- Receivables (in thousands BGN)
Name | 31.12.2023 | 31.12.2022 |
Receivables from customers | 0 | 0 |
Other receivable | 1 | 3 |
In the balance sheet item “Other receivables” the organization mainly presents in the Balance Sheet its receivables from donors under concluded contracts for financing projects, the activities for which have not been completed as of the date of the report or balance payment is expected, as well as receivables from service advances granted to accountable persons.
- Cash (in thousands BGN)
Name | 31.12.2023 | 31.12.2022 |
Cash in BGN | 42 | 59 |
Cash in foreign currency | 1 | 2 |
Blocked cash | 0 | 0 |
Total: | 43 | 61 |
- Prepaid expenses
As of 31.12.2023, the organization has no recorded prepaid expenses.
- Credits received
As of 31.12.2023 the organization does not have any credits for funding the activity granted.
- Obligations under leasing contract
As of the date of preparation of the financial statement, HOPE AND HOMES FOR CHILDREN – BRANCH BULGARIA is not a party to financial leasing contracts.
- Current tax liabilities
HOPE AND HOMES FOR CHILDREN – BRANCH BULGARIA does not perform business activity and has no tax liabilities under the Law on Corporate Income Taxation.
- Deferred income and financing
(in thousands BGN)
Income type | 31.12.2023 | 31.12.2022 |
Financing under projects with a settlement term of up to 1 year | 28 | 33 |
Financing for fixed assets | 104 | 101 |
Total: | 132 | 134 |
- Related party transactions
During the year, the organization did not conduct any transactions with related parties.
- Provisions, contingent assets and contingent liabilities
As of the balance sheet date, no provisions have been accrued.
- Fundamental errors and changes in accounting policy
During the reporting period, no fundamental errors were found and no changes occurred in the adopted and implemented policy of the organization.
- Events occurring after the date of preparation of the Annual Financial Statement
Between the balance sheet date and the date on which these financial statements were approved by management, no circumstances (both favourable and unfavourable) have occurred that require explicit disclosure and adjustment of the statement.
The Annual Financial Statement of HOPE AND HOMES FOR CHILDREN – BRANCH BULGARIA was prepared on 29.05.2024 and was approved by the Executive Director of the organization.
Date: 29.05.2024 Complier: sgd. ill. Manager: sgd. ill.
/Veselina Savova Ivkova/ /Georgi Borisov Simeonov/
Round seal: HOPE AND HOMES FOR CHILDREN – BRANCH BULGARIA