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2020-11-30-accounts

Charity number: 1000929

THE EAR TRUST

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

THE EAR TRUST

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 3
Independent examiner's report 4
Statement of financial activities 5
Balance sheet 6
Notes to the financial statements 7 - 17

THE EAR TRUST

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 NOVEMBER 2020

Trustees Prof C H Raine MBE BSc MBBS FRCS ChM
C Pratt BA ACA
Dr A Raine MB BS MRCGP
Charity registered number
1000929
Principal office
Yorkshire Auditory Implant Service
Bradford Royal Infirmary
Duckworth Lane
Bradford
BD9 6RJ
Accountants
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
BD19 3QB
Bankers
Yorkshire Bank
Broadway
Bradford
BD1 1EZ
Investment managers
Brewin Dolphin
12 Smithfield Street
London
EC1A 9LA

Page 1

THE EAR TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020

The Trustees present their annual report together with the financial statements of charity for the year 1 December 2019 to 30 November 2020.

Objectives and activities

a. Policies and objectives

When planning our activities for the year, the trustees have considered the Charity Commissioner's guidance on public benefit.

The objectives of The Ear Trust are to support work with profoundly deaf people.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Achievements and performance

a. Review of activities

The number of people to have benefited from a cochlear implant had reached 1,477 by the year end. This work continues.

The trust continues to support staff training, attendance at seminars internationally where various presentations have been made by staff and seminars to promote awareness of cochlear implants to professionals and potential users.

Fund raising continues to be challenging and we thank all individuals and organisations who have given their time and effort during the year.

Financial review

a. Going concern

The Trustees have considered the impact of Covid-19 on the Charity’s income and beneficiaries, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Trustees are confident that they have plans in place to deal with and mitigate any financial losses that may arise. The Trustees therefore consider that the level of reserves for the charity are adequate. The Trustees continue to adopt the going concern basis of preparation for these financial statements.

b. Reserves policy

The policy of the charity is to maintain sufficient working capital to allow the trustees to carry out the objectives of the charity. At the year end the Trust had restricted reserves of £38,281, unrestricted reserves of £830,840 and free reserves of £119,098.

Structure, governance and management

a. Constitution

The Ear Trust is a registered charity, number 1000929, and is constituted under a Trust deed dated 8 October 1990.

Page 2

THE EAR TRUST

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

Structure, governance and management (continued)

b. Methods of appointment or election of Trustees

The management of the charity is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.

c. Management and Governance

Day to day management of the Trust is vested in the Trustees.

Trustees are considered for recruitment on the basis of their skills, experience and interest in the work of The Ear Trust. They are appointed by the existing trustees.

Statement of Trustees' responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial which give a true and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They 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.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Christopher Raine (Jun 13, 2021 21:50 GMT+1)
Christopher Raine		 C Pratt (Jun 11, 2021 15:42 GMT+1)
C Pratt
................................................ ................................................
Prof C H Raine MBE BSc MBBS FRCS ChM C Pratt BA ACA
(Trustee) (Trustee)
Date:
Jun 11, 2021

Page 3

THE EAR TRUST

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020

Independent examiner's report to the Trustees of The Ear Trust ('the charity')

I report to the charity Trustees on my examination of the accounts of the charity for the year ended 30 November 2020.

Responsibilities and basis of report

As the Trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of the charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared the accounts in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed:

Dated: Jun 14, 2021

Lesley Kendrew BSc FCA

Relevant professional body: ICAEW

BHP LLP New Chartford House Centurion Way Cleckheaton BD19 3QB

Page 4

THE EAR TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 NOVEMBER 2020

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
Total expenditure
Net income before net (losses)/gains on
investments
Net gains/(losses) on investments
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2020
£
24,919
6,598
20,261
51,778
6,841
37,511
44,352
7,426
(6,120)
1,306
829,534
1,306
830,840		 Restricted
funds
2020
£
-
-
-
-
-
-
-
-
-
-
38,281
-
38,281		 Total
funds
2020
£
24,919
6,598
20,261
51,778
6,841
37,511
44,352
7,426
(6,120)
1,306
867,815
1,306
869,121		 Total
funds
2019
£
29,617
7,982
26,141
63,740
9,118
41,159
50,277
13,463
37,997
51,460
816,355
51,460
867,815

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 7 to 17 form part of these financial statements.

Page 5

THE EAR TRUST

BALANCE SHEET AS AT 30 NOVEMBER 2020

Note
Fixed assets
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within one year
13
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
14
Unrestricted funds
14
Total funds		 1,068
158,111
159,179
(1,800)		 2020
£
711,742
711,742
157,379
869,121
869,121
38,281
830,840
869,121		 1,933
143,761
145,694
(2,237)		 2019
£
724,358
724,358
143,457
867,815
867,815
38,281
829,534
867,815

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Christopher Raine (Jun 13, 2021 21:50 GMT+1)
Christopher Raine		 C Pratt (Jun 11, 2021 15:42 GMT+1)
C Pratt
................................................ ................................................
Prof C H Raine MBE BSc MBBS FRCS ChM C Pratt BA ACA
(Trustee) (Trustee)
Date:
Jun 11, 2021

The notes on pages 7 to 17 form part of these financial statements.

Page 6

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Ear Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

1.2 Going concern

The Trustees have considered the impact of Covid-19 on the Charity’s income and beneficiaries, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the Trustees are confident that they have plans in place to deal with and mitigate any financial losses that may arise. The Trustees therefore consider that the level of reserves for the charity are adequate. The Trustees continue to adopt the going concern basis of preparation for these financial statements.

Page 7

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

1. Accounting policies (continued)

1.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.

Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the charity's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Page 8

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

1. Accounting policies (continued)

1.4 Expenditure (continued)

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

1.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.6 Taxation

The charity is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charity for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Income Tax Act 2007, Part 10 s521 – s537 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.7 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.

1.8 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.9 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Page 9

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

1. Accounting policies (continued)

1.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.

1.11 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.12 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2. General information

The Ear Trust is an unincorporated association. The trust is a registered charity in England, charity number 1000929. The principal office is Yorkshire Auditory Implant Service, Bradford Royal Infirmary, Duckworth Lane, Bradford, BD9 6RJ.

Page 10

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

3. Income from donations and legacies

Donations from companies
Legacies
Donations from trusts and charities
In lieu of flowers
Personal donations
Total 2020
Total 2019		 Unrestricted
funds
2020
£
266
-
20,915
690
3,048
24,919
29,617		 Total
funds
2020
£
266
-
20,915
690
3,048
24,919
29,617		 Total
funds
2019
£
12
9,018
11,092
1,897
7,598
29,617

4. Income from charitable activities

Sale of Christmas cards
Sponsored events
Other
Sponsor a Stone
Workshops
Weather lottery
Just Giving Events
Total 2020
Total 2019		 Unrestricted
funds
2020
£
181
400
184
22
3,390
218
2,203
6,598
7,982		 Total
funds
2020
£
181
400
184
22
3,390
218
2,203
6,598
7,982		 Total
funds
2019
£
418
292
310
105
6,601
241
15
7,982

Page 11

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

5. Investment income

Investment income - local cash
Dividends receivable
Total 2019		 Unrestricted
funds
2020
£
105
20,156
20,261
26,141		 Total
funds
2020
£
105
20,156
20,261
26,141		 Total
funds
2019
£
326
25,815
26,141

6. Expenditure on raising funds

Fundraising trading expenses

Fundraising events
Investment managers' costs
Total 2019		 Unrestricted
funds
2020
£
344
6,497
6,841
9,118		 Total
funds
2020
£
344
6,497
6,841
9,118		 Total
funds
2019
£
2,365
6,753
9,118

Page 12

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

7. Analysis of expenditure by activities

Activities
undertaken
directly
2020
£
Charitable expenditure
37,511
Charitable expenditure:
Donated equipment
Conference and travel expenses
Gross salaries
Sponsorship of research assistant
Training
Travelling scholarship
Governance
8.
Independent examiner's remuneration
Fees payable to the charity's independent examiner for the independent
examination of the charity's annual accounts		 Total
funds
2020
£
37,511
2020
£
25,334
386
5,232
3,715
44
-
2,800
37,511
2020
£
1,750		 Total
funds
2019
£
41,159
2019
£
21,123
1,793
5,264
5,470
857
4,256
2,396
41,159
2019
£
1,700

Page 13

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

9. Staff costs

The average number of persons employed by the charity during the year was as follows:

2020 2019
1 1

No employee received remuneration amounting to more than £60,000 in either year.

The employee benefits of key management personnel of the Trust for the year was £5,232 (2019 - £5,264)

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL).

During the year ended 30 November 2020, no Trustee expenses have been incurred (2019 - £NIL).

11. Fixed asset investments

UK investments at market value:

Cost or valuation
At 1 December 2019
Additions
Disposals
Revaluations
At 30 November 2020
Net book value
At 30 November 2020
At 30 November 2019		 Quoted
investments
£
717,511
165,824
(169,468)
(6,120)
707,747
707,747
717,511		 Cash
investments
£
6,847
-
-
(2,852)
3,995
3,995
6,847		 Total
£
724,358
165,824
(169,468)
(8,972)
711,742
711,742
724,358

Page 14

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

UK investments at market value comprise:

Investments
Cash held for investment purposes		 2020
£
707,747
3,995
711,742		 2019
£
717,511
6,847
724,358

12. Debtors

Due within one year
Brewin Dolphin income account
Creditors: Amounts falling due within one year
Accruals and deferred income		 2020
£
1,068
1,068
2020
£
1,800		 2019
£
1,933
1,933
2019
£
2,237

13. Creditors: Amounts falling due within one year

Page 15

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

14. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds - all funds
Restricted funds
Restricted Funds - all funds
Total of funds
Statement of funds - prior year
Unrestricted funds
General Funds - all funds
Restricted funds
Restricted Funds - all funds
Total of funds		 Balance at 1
December 2019
£
829,534
38,281
867,815
Balance at
1 December
2018
£
773,818
42,537
816,355		 Income
£
51,778
-
51,778
Income
£
63,740
-
63,740		 Expenditure
£
(44,352)
-
(44,352)
Expenditure
£
(46,021)
(4,256)
(50,277)		 Gains/
(Losses)
£
(6,120)
-
(6,120)
Gains/
(Losses)
£
37,997
-
37,997		 Balance at 30
November
2020
£
830,840
38,281
869,121
Balance at
30 November
2019
£
829,534
38,281
867,815

Restricted funds of £38,281 are for the purpose of sponsoring 2 people per year to attend a particular research conference (which did not happen in 2020 due to Covid-19).

Page 16

THE EAR TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

15. Analysis of net assets between funds

Analysis of net assets between funds - current period

Fixed asset investments
Trade investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
707,747
3,995
120,898
(1,800)
830,840		 Restricted
funds
2020
£
-
-
38,281
-
38,281		 Total
funds
2020
£
707,747
3,995
159,179
(1,800)
869,121

Analysis of net assets between funds - prior period

Fixed asset investments
Trade investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2019
£
717,511
6,847
107,413
(2,237)
829,534		 Restricted
funds
2019
£
-
-
38,281
-
38,281		 Total
funds
2019
£
717,511
6,847
145,694
(2,237)
867,815

16. Related party transactions

During the current year and the preceding year there were no related party transactions.

Page 17