UAL REPORT
1-2022
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CHAIR’S FOREWORD
CONTENTS
CHAIR’S FOREWoRD 01 OUR COLLABORATION 02 OUR SERVICES 06 OUR PEOPLE 09 OUR QUALITY 12 OUR DIGITAL 14 WHAT’S NEXT? 16
Trustees’ report 17 Legal and administrative information 18 19 Structure, governance and management Financial review 22 Independent auditors’ report 25
Financial statements 29 Consolidated statement of financial activities 30 Consolidated and charity balance sheets 31 Consolidated cash flow 32 Notes to the financial statements 33
2021-22 has been a year where we have continued to successfully apply our learning from the adaptations we made during the pandemic. We have continued to deliver what really matters thanks to the hard work of our staff and volunteers. I therefore once again extend my heartfelt gratitude for the commitment, flexibility and compassion demonstrated by our staff, our volunteers and my fellow members of the Board. I also thank the many partners we work with, especially our commissioners who have worked closely and supportively with us. The challenges we have faced together have at times seemed unrelenting, but they have never been unsurmountable.
At WDP, we are committed to supporting the development of resilient, empowered communities. This year was no exception. We implemented new approaches, built new partnerships and made significant changes in the face of sustained challenges. This Annual Report showcases just a few of many examples of the excellent outcomes and activities delivered by our teams. This includes the important work that we have undertaken on our employment offer, as part of a wider suite of recruitment and retention work which recognises the importance and complexity of the vital work that our diverse and excellent workforce undertake. We are delighted with this work, but it won’t stand still – like everything we do, we will always reflect, review and continue to improve.
As we come towards the end of our third decade, we have taken the time to review and reflect on our journey so far. We have worked with our partners to understand our strengths and to harness these for the future. In 2023 we will launch a new strategy and we will do so with a new brand in place that builds on the success of the organisation to date. We recognise that the breadth and reach of our services and expertise has outgrown our current name and we are excited to be building a new brand that truly reflects who we are and can support us to continue our journey to reach more people through new contracts, partnerships and through expertise and innovation. I thank our service users, staff & volunteers, commissioners and partners for supporting this process and look forward to our continued work together.
Yasmin Batliwala MBE Chair of WDP
01
OUR COLLABORATION
## Working together at WDP
At WDP, we recognise that our service users have unique experiences, skills and abilities that put them in the best possible position to provide expert input and advice into what our services should be like.
## We have been doing this in the following ways:
## During 2021-22, we worked together on a number of projects, including:
- Creating authentic co-production
- Co-producing a new Service User Engagement Strategy
- opportunities across WDP
- Holding regular consultations that have led to significant projects and developments around our premises, peer mentors, home visits and group work.
- Establishing a quality framework and standard approach around service user involvement
- Establishing a Service User Steering Group to increase and grow service user involvement, share best practice, and ensure collaboration and increased joint working.
- Nurturing a culture where service user involvement and co-production are recognised in both words and actions
- Enhancing our digital approach, using our service users’ experiences to make improvements.
- Ensuring a focus on diversity, equity and inclusion at every level of the organisation.
- Creating new and bespoke local initiatives based on feedback, such as Rods to Recovery.
## Review and refresh of what we do
One of our key business objectives in 2021 was to carry out a comprehensive and impartial review of each and every element of how we do things at WDP. This is otherwise known as our core delivery model.
We started with our adult community services, looking at service elements from prevention and early intervention all the way through to post treatment support and opportunities for our service users.
Staff across multiple disciplines worked alongside service users, volunteers, peer mentors and partners to complete the review and inform developments.
This was a valuable opportunity for us to revisit areas of best practice across the organisation but to also see where they may be room for improvement. It has also enabled us to create a consistent and streamlined approach for all WDP-led services going forward.
## What have we been looking at?
- The resources and tools we use
## Rods to Recovery
Funded by a Get Fishing grant from the Angling Trust this project uses the green and blue spaces along the River Wandle in Merton to enhance service user wellbeing.
It is a shared activity that gives service users the space and opportunity to discuss and support their mental health, reduce their social isolation, and help them to develop feelings of self-confidence.
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- Our group work programme
- The support we offer to family and carers
- Our needle exchange provision
- The support we offer those in the criminal justice system
- Our case management system
- The support we offer digitally.
This is a large and important project for the organisation which has benefited significantly from the collaborative approach taken and will help us to continue to reach more people and achieve better outcomes going forward.
100% **[of our] services delivered better outcomes than the national average.**
**We reached over** 12,500 **people through our services.**
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## Opening doors for women in services
## Empowering service users to learn to read
Since 2021, we have been working with leading literacy charity, Shannon Trust to address the low literacy rates that are seen across community drug and alcohol services.
Accessing and using drug and alcohol services can have added complexity and challenges for women, which are not always recognised or addressed.
As part of our membership with Collective Voice, the national alliance of drug and alcohol treatment charities, we were proud to help to form and launch a new Women’s Treatment Working Group, which advocates for improved drug and alcohol support for women.
Together, we launched their Turning Pages programme in our Barking and Dagenham, Greenwich, Islington and Merton services, and over 20 staff, volunteers and peer mentors were trained to become Reading Coaches.
Since the start of the programme, our service users have reported increased confidence, have gained more opportunities, and feel better able to cope with day-to-day tasks.
Together, alongside and in partnership with other service providers, we want to ensure that every woman has access to a service that meets her needs.
_“I used to pretend that I could read all the time and no-one ever really noticed that I struggled. I thought people would just think I was stupid.”_
## nicola
Our brand identity and the future of WDP As we came to the end of our organisational strategy period in 2021-22, we reflected on what comes next for WDP.
We wanted to better understand how our stakeholders see us and also independently review our strengths and where we can improve.
It became very clear that the name ‘Westminster Drug Project’ which we have previously shortened to WDP, does not now reflect our size, scale or the complexity of the work we do as an organisation. We are proud of our development over the years, but recognize that we have now outgrown our original name.
During the early stages of 2022, we met with many of our staff, volunteers, service users, partners and commissioners. In total, over 60 individuals participated in these sessions, which were a mix of one-to-ones and small focus groups.
The range of thought-provoking insight and feedback received has helped to inform our way forward into 2022-23 and we envisage implementing a new brand and name in 2023.
## Raman’s story
While I was engaging with WDP to tackle my substance misuse, I was also put in touch with their IPS Into Work service.
In less than two months, I successfully secured a temporary four-week contract as a PPE Salesperson. The job was in central London and despite the four-week contract not being renewed, being out in the city and entering a corporate work environment improved my self-esteem immensely and left me eager and determined to continue working with WDP.
To start with, I had no concrete idea of which career path I wanted to follow and wasn’t even sure whether I was able to commit to full-time work as the last time I had a job was in 2018 at a pizza restaurant.
We resumed sending out job applications and within three weeks, I had two interviews lined up: one for a sales role in a company selling PPE equipment and another for a Home Customer Service Agent managing different companies’ CRM. I was offered both roles and opted for the latter.
With the help of [my employment specialist], we created a CV and cover letter while exploring my hobbies, interests, and transferable skills. I wanted the CV to communicate my friendly nature and communication skills.
Based on these skills we started applying for sales representative roles. I also practiced mock interviews with [my employment specialist] and this taught me how to effectively search and apply for roles, as I had never formally done this before.
My at ude now has improved leaps and bounds, and this is due to the support I received. Fantastic help from WDP and well worth it to get back on track.
I am now somebody who has stopped using cannabis and this has enabled me to be more independent and be more proactive when looking for jobs.
_My at ude has improved leaps and bounds, this is due to the support I received._
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OUR SERVICES
## Making INROADS
During 2021, we started delivering specialist and intensive street support in Camden and Islington.
_“WDP is an amazing service that truly helps and not just handing out scripts. They supported me into accommodation and encouraged me to progress, I know they really care about me.”_
Our INROADS services work with people aged 18+ who are rough sleeping or are at risk of returning to the street (e.g. in temporary accommodation) and those individuals who are not already engaged in community drug or alcohol treatment.
_“We have been absolutely blown away by the professionalism, commitment, and trauma-informed practice of your team. Since working with WDP we have been able to support two of our clients – both with long histories of entrenched homelessness and chaotic substance use – to access a script. I strongly believe that the is a result of the assertive outreach and in-reach support that your team has offered.”_
chris
’ women s respite centre
## Working in partnership
During 2021-22, we were successful in our bid to work in partnership to deliver drug and alcohol support in Surrey.
## Surrey & Borders Partnership
This new service started on 1 April 2022 as part of the wider NHS service, i-access, which is jointly provided by Surrey and Borders Partnership NHS Foundation Trust and Public Health (Surrey County Council).
The local team deliver one-to-one and group support, as well as harm reduction, alongside providing our award-winning Capital Card scheme and a unique family safeguarding service co-located with children and families’ social services teams.
## Helping people into paid employment
Focusing on people feeling ready to enter work, a rapid job search, and working with employers, our award-winning IPS Into Work team believes that anyone that wants to work can work.
## Since 2019, across eight West London boroughs we have:
Over **270** _“You guys made me not only_ job outcomes _find my path and passions but also made me believe in people and myself again. You are truly_ of clients would _transforming lives.”_
**100%** of clients would recommend IPS Into Work
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mario
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Barnet
Harrow
Brent
Hillingdon Ealing
Hounslow
Westminster
Kensington & Chelsea
Hammersmith & Fulham
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Following this success,
during 2020-21, we
have also had our contract
extended to 2023 and
expanded into a new
area of London,
Hammersmith & Fulham.
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In addition, IPS into Work and the West London Alliance (WLA) won the ‘Transforming Lives’ award at the 2021 MJ Awards. The MJ Awards celebrate local authorities’ delivery of services and showcase the hugely important role they play in communities across the UK.
_“I am delighted that […] IPS into Work won the ‘Transforming Lives’ MJ Award. It recognises the quality service WDP staff have provided to their clients to overcome some of the challenges of the last 18 months. IPS can change lives.”_ kim archer
Programme Lead at West London Alliance
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OUR PEOPLE
## Additional funding to enrich our services
In 2021, the government announced new and additional funding of £80 million for one year to enhance drug treatment across England, focusing on reducing drug-related crime and drug-related deaths.
This was a significant pot of money to bid for and it was really important for us to work quickly and closely with our commissioners, reviewing what was available and how this could best respond to the needs of their local communities.
As a result of this partnership work with our commissioners, we were delighted to be awarded substantial grants for our services in Brent, Cheshire West & Chester, Greenwich, Harrow, Merton, and Redbridge. This new funding has been used to enrich these current WDP services to provide additional drug treatment and harm reduction support during 2021-2022.
## Examples of this include:
Providing intensive support for people on release from prison to access drug and alcohol treatment and aid reintegration back into their local community.
Building and boosting vital links with local partners and GPs to support those most in need of help.
Providing enhanced and specialised support for rough sleepers, those in unstable housing, and people who may be at risk of homelessness.
Increasing access to the life-saving overdose reversal medication, Naloxone.
Providing additional funding for inpatient detoxification and residential rehabilitation places.
Trialing different channels to reach diverse groups in local communities with harm reduction information and support, e.g. health and wellbeing promotion on online platform Grindr to highlight the support available to men who have sex with men and those who engage in chemsex activities.
## Supporting a happy, healthy and impactful workforce
During 2021, we carried out an ambitious and extensive consultation with our people about what pay and reward looks like at WDP. We wanted our terms, conditions and benefits to reinforce our culture and values, and ultimately, to say who we are.
_“The new pay & reward scheme offered by WDP is a game changer in the sector. I feel valued that the organisation has taken a pro-active approach in supporting staff welfare both inside and outside of work through the benefits they now offer.”_
We felt very strongly that our people needed to have a progressive and supportive package for them, inside and outside of work, which would also help them continue to make a significant and positive difference to the individuals, families, and communities they work with.
As well as gathering feedback from our people, we also undertook significant research and benchmarking work, in our sector and beyond, to ensure that we respond to the diverse and changing needs of our teams.
All of this work resulted in the creation and launch of a sector-leading pay and reward offer which was met with overwhelmingly positive feedback from our staff. Going forward, it will also support us to attract and retain the very best people.
## New benefits include:
**Annual leave Sick leave** for **Additional day’s leave** 30 days, from start of 6 months full pay, important life events: e.g birthday, employment, increasing then 6 months getting married, moving house, to 33 days over time. half pay. and child’s first day of school.
**Support leave** for IVF (both partners eligible), adoption (replicates maternity leave), gender transition, dependents, compassionate, miscarriage (both partners eligible) and domestic abuse.
_“The addition of new benefits has absolutely made my heart sing [...] To have allowances for life events such as miscarriage, fleeing domestic violence and pet bereavement makes me feel privileged to work for such a progressive and empathic organisation.”_
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## Nurturing diversity, equity & inclusion
We want to continually develop WDP as a diverse and inclusive organisation and our diversity, equity and inclusion (DEI) work has grown significantly throughout 2021-22. We have established a DEI Group which includes representatives from across the organisation and is focused on delivering meaningful change.
## Its aims include:
- Planning and developing strong, mutually beneficial, accountable and equitable partnerships with diverse organisations and leaders from communities facing disparities, e.g. Friends, Families and Travellers, a national charity that works on behalf of Gypsies, Travellers and Roma.
- Delivering our DEI strategy for 2022-23
- Improving our approach to and understanding of DEI, e.g. around policy review and development
- Supporting continuous improvement in the recruitment, retention and development of a diverse and inclusive workforce, e.g. recruiting Polish and Tamil speaking roles to respond to local need and working with organisations such as South London Tamil Welfare and Polish Families Association.
- Fostering ongoing DEI training, growth and leadership among management, staff and WDP’s Board of Trustees
- Enabling accountability at every level in the organisation in relation to DEI-related practices
- Providing resources, tools and frameworks that support DEI-related improvements, e.g. around service user involvement and co-production
- Encouraging creative thinking and co-production to support ongoing improvements.
## Anthony’s story
After more than a decade of working hard and playing hard in my spare time, my lifestyle finally caught up with me; I burnt out in spectacular fashion, descending into addiction, losing my job and my home in the process.
Life became a matter of survival until I engaged with WDP and was helped to gradually rebuild from the ground up. I was encouraged to attend training to become a peer mentor by my keyworker.
When the opportunity came up to help welcome new service users in the Induction Group I took it, even though I wasn’t sure sharing my experience of recovery would be relevant to anyone else. The positive response I got from the group members hearing from someone who had been in their position and managed to turn things around made me realise I could have an impact.
The role helped me build my self-esteem back up and I felt like I had some purpose again. With the confidence that brought me, I decided to go back to studying, and enrolled on a counselling course.
Over the three years I have been at college, I have continued to volunteer at WDP in various roles. I recently did some great experiential training with other volunteers that gave me a boost in my skills.
Finally, impossibly, I’ve come full circle and am helping train a brilliant new group of peer mentors. I’d never have believed it if someone had told me that one day I’d be in front of a class teaching, but here I am!
The experience that I’ve had at WDP has been encouragement to challenge myself in a supportive environment. It has allowed me to build skills that have opened up options for me to get back into work and turned what was a very difficult time in my life into something meaningful.
_I’d never have believed it if someone had told me that one day I’d be in front of a class teaching, but here I am!_
## What have we done so far?
Under the three pillars of our DEI work – Services, People, and Voice and Influence – work already in progress during 2021-22 includes: creating a new ‘Welcome Period’ to replace our induction process, introducing designated Mental Health First Aid roles across WDP, launching our (Peri) Menopause at Work Policy, recruiting ‘Connection Champions’ from across our teams to co-produce organisational initiatives, and launching Our People Awards, with categories developed by our Connection Champions, which promote inclusive behaviours.
## Developing a new volunteer approach
Following feedback from our volunteers about how they would like to play a bigger role in supporting our services, we co-produced a new volunteer training programme pilot at our Greenwich service, to help provide the essential training, skills and experience needed to become a Recovery Practitioner.
topics such as care planning, key working and group facilitation skills. A new Experience Passport was also created to showcase the work our volunteer trainees completed and evidence of the skills and experiences they gained.
We plan to collaborate with other WDP services over the next year to share this learning and help develop similar local programmes with them.
This bespoke and intensive training programme took place over 10 weeks and covered a variety of
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OUR QUALITY
## Investing in clinical leadership
## Reframing our audit process
With high-quality service provision and practice standards being at the centre of what we do, our Quality Team, working with frontline and central staff, has been reviewing and reconfiguring our internal audit process for our services and support departments.
As part of our recognition of the importance of clinical leadership at a senior level, we expanded our clinical leadership team structure to include two new specialist roles - Deputy Medical Director and Director of Care Standards and Practice Improvement.
The Director of Clinical Care and Practice Improvement role oversees the organisational leads for nursing, psychology, pharmacy and psychosocial therapy. It will enable us to increase student/trainee clinician roles, ensuring that we are planning ahead and bringing new talent to the sector and to WDP.
All involved wanted to streamline our approach, to further embed audit into everyday practice and maintain a culture which supports continuous improvement across all areas of our work.
The new process is now a quarterly cycle, which aims to better demonstrate how standards are met and exceeded and it is also more aligned with the key lines of enquiry (KLOEs).
The Deputy Medical Director role was designed to support our Executive Medical Director as well as provide senior clinical delivery and development expertise across the organisation.
## Eliminating Hepatitis C by 2023
We have been continuing to work with Gilead Sciences and the Hepatitis C Trust to support sector-wide efforts to eliminate hepatitis C virus (HCV) in drug and alcohol services by the end of 2023.
As of 2021-22, WDP has over 2,500 service users in treatment across the Barts, South Thames, West London and Cheshire & Merseyside Operational Delivery Networks (ODNs). The new Hepatitis C Coordinator role will be liaising with these ODN teams to keep up-to-date with local needs and challenges and to ensure ongoing high-quality partnership work. We will also be working in partnership with the Hepatitis C Trust (HCT) and other organisations to improve pathways
As part of this renewed partnership with Gilead, we recruited a dedicated Hepatitis C Coordinator to help our services achieve this target.
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GET
FREE OF
Hep C
AT WDP
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## Excellence in Cheshire
_“The kindness and compassion shown to clients, working in a person-centred way is incredibly clear and shows the commitment of the skilled staff working in WDP New Beginnings across Cheshire West and Chester. The strong relationship between the commission team, public health and WDP allows for us to work together successfully. Thank you to everyone who works for WDP New Beginnings in Cheshire West and Chester.”_
We were proud and delighted that our Cheshire West & Chester service (known locally as New Beginnings) was rated ‘Good’ by the Care Quality Commission (CQC) following a visit in January 2022.
The CQC inspectors highlighted that staff “treated clients with compassion and kindness” and that the service _“provided a range of treatments suitable to the needs of the clients and in line with national guidance about best practice.”_
The report includes some excellent feedback from service users. The inspectors reported that service users described staff as _“considerate, caring and supportive”_ and they felt staff had _“gone the extra mile to help them”._
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ellesmere port
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## liane goryl
Commissioning Manager Public Health, Cheshire West and Chester Council
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OUR DIGITAL
## moving motivation online
Our highly rated motivational programmes NOVA and Next Steps are designed for service users who would benefit from improving their self-esteem and confidence as well as learning about tools to support their recovery and plan what’s next in their journey.
_“I’ve really enjoyed [Next Steps]. I was nervous as I thought it might be about getting into work, but everything I’ve learned I can apply to my life right now, it’s been so relevant and I’ve used it for my kids as well as myself.”_
Historically these courses have been run as face-to-face groups in our services. However, in response to COVID and the cancellation of in-person groups, we had to pivot quickly and look at how we could provide this type of recovery support virtually during what was an extremely challenging time.
_“I loved the [NOVA] course. It was totally relevant and life changing for me. I entered feeling useless, worthless, unmotivated and feeling like ‘what have I done with my life?’ I came out feeling empowered and like a different person. It has helped me in my everyday life, looking at situations, decisions, my strengths and my worth. It is truly an amazing course and I would say to everyone to give it a go.”_
The online versions of these courses have been hugely successful and beneficial to our service users. Not only has being able to run these courses virtually increased the accessibility of our courses, many service users have enjoyed the online environment more, because of childcare, convenience and personal challenges for them leaving their home or mixing with people.
_“I have been in and out of rehabs, in the programme for 14 years and [NOVA Online] is already by far the most valuable work I have done on myself. It’s incredible.”_
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Peer Mentors Peers engaging, empowering & reaching out. NOVA next steps
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## capital card rewards _at the click of a button!_
Following service user feedback, we launched and rolled out our online Capital Card Reward Finder during 2021-22.
The **Capital Card** is WDP’s award winning contingency management scheme which awards people for their engagement at their local service, through an earn-spend points system. They can earn points by attending appointments and then spend their points on positive activities in their local community, such as the cinema or gym.
Having heard from our service users that they wanted ‘live’ information about what was available for them to spend their points on, the Capital Card Reward Finder was born.
Developed in-house, the Reward Finder is a simple and easy-to-use portal where users of the Capital Card can find up-to-date information about spend partners and events available to them in their local area at the click of a button. This information can also be printed off for service users who don’t have regular access to the internet.
_“Another lovely meal at Nando’s. The points system really is one good addition to work with. Good company, a lovely day out. I look forward to the next treat. Thank you so much.”_
_“The pop-up shops were especially helpful at the beginning of my recovery journey as it provided nappies and essential food for me and my family.”_
## streamlining access into our services
In the autumn of 2021, we began rolling out our digital referral and initial assessment tool to improve access into our WDP- led services.
This updated system enables both individuals and professionals to make referrals for support 24 hours a day, seven days a week and every week of the year.
Having this online option to register for help via our website has also meant that referral information could progress automatically into our case management system, continuing to the initial assessment stage, streamlining and speeding up the process for everyone involved. Ongoing care planning and risk assessment work will also be brought across in the same way.
Our latest IT infrastructure upgrade will also enable us to continue to securely and robustly support and develop this and other digital projects in the pipeline.
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## What’s next?
Looking ahead to next year, we have identified six core business plan focus areas, along side our strategy development and brand identity review work.
## These are:
1. Our core model and how we do thingsimplementing our refreshed adult community services core model and refining our core model for young people’s services.
2. Our workforce excellence- investing in and developing projects that continue to support workforce excellence and our ability to attract and retain the very best people.
3. Our income sustainability and diversificationrecognising the changing external context and embracing opportunities to be creative, augmenting what we think it’s important to do.
4. Our residential services- developing our specialist residential services, in particular our inpatient detoxification care and facilities at Passmores House.
5. Our environmental impact- contributing to projects, enhancing our properties, and building partnerships to further grow the positive environment impact we want to make across the organisation and beyond.
6. Our digital developments- building on the work
completed in 2021-22 to cover enhanced recovery planning and risk assessment, as well as developing digital projects and tools that respond to the needs of and also have a positive impact on our people and service users.
## Trustees’ report
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## Legal & administrative information
## Trustees & Directors
Yasmin Batliwala (Chair)
James Saunders
Gillian Benning Mark Eaton
Mike Walsh
Leckraz Boyjoonauth
Richard Paul
His Honour Graham Boal QC
Chief Executive Anna Whitton Company Secretary Brian McGinn Charity number 1031602 Company number 2807934
Country of incorporation
United Kingdom
Principal address
18 Dartmouth Street London SW1H 9BL
Auditors
Crowe U.K. LLP Statutory Auditors 55 Ludgate Hill London EC4M 7JW
## Bankers
Barclays Bank 1 Churchill Place London E14 5HP
## Structure, Governance & Management
## Our Objectives including Public Benefit
## Governing Document & Constitution
Westminster Drug Project (WDP) is a registered Charity (no. 1031602) and was incorporated on 2 April 1993 as a Company Limited by guarantee.
Our Charity’s purposes as set out in the objects contained in the Company’s memorandum of association are to: benefit the public by providing care, support, education, and training to those in need as a result of multiple and/or particular social and/or personal issues and problems and their affected families, carers and communities, and undertake research into such problems and issues, making the beneficial results publicly available, in particular, to substance misuse related problems and health problems arising from disadvantaged and/ or deprived circumstances.
The Company was constituted under a Memorandum of Association that established the objects and powers of the charitable Company and is governed by its Articles of Association. These were adopted on incorporation and updated by special resolutions on 11 October 1993, 18 March 2008, 28 July 2010, 10 January 2011 and 12 September 2011. Under the Articles the Company is managed by its Board of Directors. In the event of the Company being wound up members are required to contribute an amount not exceeding £1.
The Trustees have referred to the Charity Commission guidance on public benefit when reviewing our aims and objectives and planning our future activities. Trustees consider how planned activities contribute to our aims and objectives. We have developed our services in supporting people, both adults and young people, affected by:
The Board of Directors is charged with the responsibility of strategy and performance monitoring of the Company.
## Recruitment and Appointment of Management Committee
- Drug and Alcohol issues
- Mental Health
- Sexual health
The Directors are the Trustees of the Charity for the purposes of charity law and are also the members of the Management Committee. The Trustees are recruited to ensure a diverse and broad range of relevant experience, knowledge, and business skills. The Chair regularly reviews the membership of the Board to ensure it remains appropriately equipped to meet the strategic needs of the organisation. Should it be identified that additional expertise is needed the Chair will seek to recruit new or additional Trustees utilising recruitment specialists and media as required to attract suitably qualified applicants with a focus on maintaining a diverse and effective Board.
- Employability
- Smoking Cessation
As a charity, we are mostly funded by local authorities who commission us to deliver high quality services to their communities. We also receive donations, grant funding and corporate support. We also advocate for effective policy and funding for health and social care services through parliamentary groups and government consultations. As with our services, our responses are co-produced with individuals, communities, and partner organisations.
## Trustee Induction and Training
Our overarching aim, to reduce drug and alcohol dependency and promote holistic health in the communities we serve, is fully in line with the Charity’s founding objectives.
An induction plan is in place for all new Trustees who join the Board to ensure they are aware of the constitution, their role and responsibilities, organisational activities, strategic plan and financial and governance arrangements. Training needs are reviewed regularly, and appropriate training arranged as required.
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## Organisational Structure
The Charity’s Board meets a minimum of four times a year for board meetings, as well as scheduling regular strategy specific meetings. Board and strategy meetings also involve the attendance of the Chief Executive and members of the Executive Management Team.
In addition, the Trustees participate in working parties and sub committees appointed by the Board when necessary to progress specific issues, during 2021/22 sub committees were formalised for Finance & Resources, Business Development and Service Delivery & Governance. The Board delegates day-to-day operations and service delivery to the Chief Executive, who is supported by the Executive Management Team. The Executive Management is as follows:
Chief Executive Officer (CEO) Anna Whitton Chief Operating Officer (COO) Brian McGinn Executive Medical Director Arun Dhandayudham Executive Director of Quality, Impact & Performance Abi Cooper Executive Director of Services Thomas Sackville Executive Director of Services Craig Middleton Executive Director of Development Graham Howard
A performance management framework is in place throughout the organisation involving annual appraisals and regular staff supervision in which performance issues and development needs are addressed. Remuneration is reviewed by
management and Trustees on an annual basis, a new remuneration policy was implemented in October 2021, and we continue to improve the culture of the Charity to become an employer of choice. A broad range of key performance indicators are monitored in line with a comprehensive business plan against which progress is tracked and reported to the Board at regular intervals. This includes the monitoring and reporting of service user and commissioner feedback, operational KPIs, business risk and financial performance.
## Risk Management
The Trustees review the major risks to which the charitable company is exposed and the systems which have been established to mitigate those risks by the review of WDP’s organisational Risk Register at Board meetings throughout the year. Mitigating actions are identified and implemented and the current position on these is recorded.
A three-year strategic plan that allows for the diversification of funding and activities has been devised and implemented that continues into 21/22. The 3 main strategic objects: - grow & reach more people, influence and strive for improvements in care, directly address the ongoing risks to WDP’s long term prospects. Growth will increase revenue and provide greater central contributions and development funds, influencing will position WDP as a thought leader and naturally drive our ability to shape further commissioning intentions. The continued development of our Innovation and Research Unit (IRU) is supporting our development of an evidence base package of care which further sets WDP apart from many of our competitors. Recent feedback from commissioning panels has highlighted the added value they see from initiatives such as the Capital Card and our links with academic institutions via the IRU. We are also developing a new core model of service delivery that aims to enhance our work and improve the experience and outcome for all service users. Our staff are a vital asset of our organisation and during the year we have instigated a new ‘pay and reward’ policy realigning all salaries and improving all other least, a three yearly basis for all staff with the objective of paying in the upper quartile for all posts. A new strategic plan will be developed in 22/23.
A major risk to the organisation would be loss of confidence of service users and commissioning were WDP to experience a negative Care Quality Commission (CQC) inspection. This has been mitigated by the implementation of quality assurance procedures and processes that audit against national quality standards. These include those of the CQC for the relevant services; an internal audit process that measures all WDP services against CQC standards and the UK Guidelines on Clinical Management (NICE); the Investors in People standards and ISO 9001 accreditation of central support services.
Increasing demands regarding information security, governance, and adherence to General data Protection Regulation (GDPR) presents an ongoing risk. WDP continues to review its internal systems and processes and has installed a new IT infrastructure during 21/22 to assist with this issue.
Changes in public health commissioning continue to result in a far more challenging economic environment than previously encountered.
Contracts are integrated, more complex and often require us to work in partnership with NHS trusts and other charities.
A further risk to the Charity exists in the form of the covid-19 pandemic. As with all organisations we have monitored its effect and have made plans to cope in the future. As the majority of the Charity’s income is funded from government local authority contracts the current income streams are secure however, we are aware that these may come under pressure, and we will continue to monitor the situation. During 2022 we have seen more risks arise in the form of the current economic conditions and their effects on the cost of living and inflation. WDP, similar to other organisations, is not immune to this and the effects on salaries, utility costs and all other goods and services. We continue to monitor this very closely and work with our staff, suppliers, commissioners, partners and service users to ensure we achieve value for money in all that we do through efficient and effective use of our resources. We shall be prudent in our budgets and forecasts in the coming year and acknowledge that these issues may have further effects on our service users, and we will be there to help them.
## Related parties:
## Vale House Stabilisation Services
WDP controls Vale House Stabilisation Services (VHSS) through a formal merger agreement which took effect on 14 April 2011. VHSS is a long established charitable company (company number 3197716 and charity number 1055486) which offers inpatient residential detoxification and rehabilitation services. Operated as part of WDP, VHSS delivers all its work at Passmores House in Harlow, Essex. VHSS results are consolidated into the WDP group results presented in this report.
WDP has the financial capacity and the intention to continue supporting VHSS to the extent it will remain a going concern for the foreseeable future. VHSS was projected to make a small surplus in 2021/22 however this has not happened primarily due to the covid-19 pandemic and the need to social distance and so reduce admittances. Looking further forward, VHSS has plans to expand operations so that additional service users can be cared for as part of an expanded Passmores facility. This expansion would ensure the financial stability and viability of the organisation in the medium to long term. WDP views that supporting VHSS is an investment in an exciting future for VHSS and WDP and that a market leading, innovative and fully utilised facility can be developed.
21
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## Financial Review
## Financial Performance
A majority of WDP’s funding comes from publicly tendered health and social care contracts. These are usually local authority based partnerships which commission drug and alcohol services, utilising funding streams from the Home Office and Local Authorities.
In the year to 31 March 2022 our total group income was £22.62m (2021: £23.32m) a decrease of 3% on 2021, the main contributing factor to this was the loss of three main contracts, however this has been compensated for by the increase in services for current contract areas and new funding sources from Public Health England (PHE) and its successor the Office for Health Improvement and Disparities (OHID). Expenditure for the year was £21.4m (2021: £23.38m) translating to net income during the year of £1.18m (2021: net expenditure £68k). It must be noted however, that unrestricted surplus for the year was £2.5k and the main increase in net income was due to restricted funds of £1.18m that will be held until expended on the appropriate purpose. At the year-end total reserves were £9.6m (2021: £8.42m).
WDP supports its subsidiary, Vale House Stabilisation Services (VHSS), which provides residential and day care programmes for detoxification and rehabilitation, complementing the services of WDP.
For the year ended 31 March 2022, VHSS recorded an overall deficit of £246k (2021: £167k). Income and expenditure from the Charities activities both increased against the prior year when closure was enforced by the covid-19 pandemic however while closure was not required in 2021/22 social distancing for patients was enforce for long periods of time and therefore admittances and occupancy were reduced. Income increased 81% to £1.28m (2021: £705k) and expenditure 57% to £1.53m (2021: £973k). It is important to note that when VHSS is operating there is a high level of staff required which is independent of occupancy levels and the losses encountered in recent years show our commitment to the service and quality patient care. Leading into 2022/23 we have been able to return to full operation and with careful bed management we hope to continue to increase occupancy and the ability to provide our much needed service to those in need. The Charity continues to develop business plans for expansion of this residential service in the coming
years with the purchase and development of an adjacent site to increase our ability to welcome more patients and attain financial sustainability.
The Charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.
## Investment Policy
The principal funding sources for the Charity are derived from fixed term contracts and future income dependent on winning further contracts from local authorities. Diversification of income is an important matter for the Charity and an investment policy for reserves has been developed and put in practice for 2021/22.
## Reserves Policy
The Trustees regularly review the level of reserves and the extent to which they meet the day-to-day operational requirements of the organisation. The Board’s policy is to retain unrestricted funds in order to meet WDP’s working capital commitments and to provide for continuity of service in the event of late fund allocation or other such situations requiring contingency funding. The policy sets the level of the reserves to be between one and three months running costs, the minimum currently considered to be £1.99m.
## Reserves
At 31 March 2022, the accumulated fund balance of unrestricted and non-designated funds, excluding tangible fixed assets was £2.7m (2021: £2.9m), equating to 1.5 months unrestricted running costs, which just meets these requirements. We anticipate that this will continue to be met throughout the coming financial year.
Total funds which the group holds as at the year-end are £9.61m (2021: £8.42m). Of this total fund balance, £1.98m is restricted funds (2021: £796k), restricted funds being those funds held for the purposes as prescribed by the funder and include both capital and revenue grants.
Total funds also include a balance of £4.49m (2021: £4.22m) which is related to tangible fixed assets and investment properties. These funds could only be released by disposing of these assets.
Designated funds at the year-end amounted to £466k (2021: £508k). These funds are held for necessary improvements on properties and development funds for projects offering strategic improvements in the same time frame. The Trustees believe that development of the Charity requires investment and in order to do so 0.5% of unrestricted turnover is transferred to development funds each year to fund such investment.
## Going concern
The Trustees are content that future budgets and cash flow projections for the Charity mean that there are no material uncertainties regarding the Charity’s ability to continue as a going concern. We have prepared budgets and forecasts which consider our cash position, sources of income and planned expenditure for the year ahead. These forecasts incorporate key challenges surrounding the ongoing pandemic including the reconfiguration of service delivery to ensure staff and beneficiaries remain safe. The forecasts include additional costs and savings arising from our response and have considered sensitivities surrounding our future income. During 2022 we have seen more risks arise in the form of the current economic conditions and their effects on the cost of living and inflation. The Trustees have considered this and, of special note, the effect on salaries and utility. We continue to monitor this very closely and work with our staff, suppliers, commissioners, partners, and service users to ensure we achieve value for money in all that we do through efficient and effective use of our resources. We shall be prudent in our budgets and forecasts in the coming year with the objective to break-even and provide investment funds in the near future. The Trustees have scrutinised the key assumptions within forecasts and are satisfied that the current level of free reserves and cash balances are adequate to meet the group’s obligations as they fall due. Having regard to the above, the Trustees are satisfied that there are no material uncertainties around the decision to adopt the going concern basis of accounting in preparing these financial statements
## Auditors
Crowe U.K. LLP were appointed as the charitable Company’s Auditors and have expressed their willingness to continue in that capacity.
## Directors’ Responsibilities Statement
The Trustees (who are also Directors for the purposes of Company law) 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).
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable group and of the surplus or deficit of the group for that period. In preparing these financial statements, the Directors are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the
- Charities SORP;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in he financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable group will continue in operation.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable Company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
23
22
## Disclosure to Auditors
Insofar as each of the Directors of the charity at the date of approval of this report is aware there is no relevant audit information (information needed by the charity’s auditor in connection with preparing the audit report) of which the charity’s auditor is unaware. Each Director has taken all the steps that they should have taken as a director in order to make themselves aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.
The Trustees’ annual report, including the strategic and impact report, was approved by the Board of Directors on 22nd December 2022 and signed on their behalf by
Yasmin Batliwala – Chair
Independent Auditor’s Report to the Members and the Trustees of Westminster Drug Project
25
24
## Opinion
We have audited the financial statements of Westminster Drug Project (‘the charitable company’) and its subsidiary (‘the group’) for the year ended 31 March 2022 which comprise The Consolidated Statement of Financial Activities, Group and Charity Balance Sheets, Consolidated statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 March 2022 and of the group’s income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## Other information
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## Opinions on other matters prescribed by the Companies Act 2006
In our opinion based on the work undertaken in the course of our audit
- the information given in the trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the trustees’ report have been prepared in accordance with applicable legal requirements.
## Matters on which we are required to report by exception
In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate and proper accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit
## Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## Auditor’s responsibilities for the audit of the financial statements
We have been appointed under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilites This description forms part of our auditor’s report.
27
26
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were, CQC Regulations for service providers and managers, taxation legislation, health and safety legislation, employment legislation and General Data Protection Regulation (GDPR). Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing and recognition of contract income, recording the
impact of CQC regulatory reviews and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading regulatory reports and minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
## Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Tim Redwood
## **senior statutory auditor**
For and on behalf of Crowe U.K. LLP Statutory Auditor
30 January 2023
**london**
## Financial statements
29
28
## **WESTMINSTER DRUG PROJECT**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including Income & Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2022**
|Notes
**Income**
Donations
2
Charitable Activities
2
Other Income
2
**Total Income**
**Expenditure**
Charitable Activities
3
**Total Expenditure**
**Net Income/(Expenditure) before transfers**
**Transfers between Funds**
**Net Income/(Expenditure) for the year**
**Other recognised Gains/(Losses)**
(Losses) on revaluation of freehold property
**Net Movement on Funds**
**Funds at 1 April 2021**
**Funds at 31 March 2022**|Restricted &
Total
General
Designated
Endowment
2022
£
£
£
£
500
-
-
500
18,988,076
-
3,559,435
22,547,512
74,495
-
-
74,495
Unrestricted|_Total_
_2021_
_£_
_16,332_
_23,247,693_
_52,215_|
|---|---|---|
||19,063,072
-
3,559,435
22,622,507|_23,316,239_|
||18,891,718
168,898
2,379,116
21,439,733|_23,384,378_|
||18,891,718
168,898
2,379,116
21,439,733|_23,384,378_|
||171,353
168,898)
(
1,180,320
1,182,775
107,500)
(
107,500
-
-|_68,139)_
_(_
_-_|
||63,853
61,398)
(
1,180,320
1,182,775
-
-
-
-|_68,139)_
_(_
_467,356)_
_(_|
||63,853
61,398)
(
1,180,320
1,182,775
7,118,605
507,719
796,226
8,422,549|_535,495)_
_(_
_8,958,044_|
||7,182,458
446,320
1,976,546
9,605,323|_8,422,549_|
The Statement of Financial Activities includes all gains and losses in the year and therefore a separate statement of total recognised gains and losses was not prepared.
All of the above amounts relate to continuing activities.
## **WESTMINSTER DRUG PROJECT CONSOLIDATED & CHARITY BALANCE SHEETS AS AT 31 MARCH 2021**
|Notes
**Fixed Assets**
Intangible Fixed Assets
6
Tangible Fixed Assets
6
Investments - Property
7
**Current Assets**
Debtors
9
Cash at bank and in hand
**Current Liabilities**
Creditors: Amount falling due within one year
10
**Net Current Assets**
**Total Assets less Current Liabilities**
Creditors: Amount falling due greater
than one year
11
Provisions for Liabilities
13
**Total Net Assets**
**Funds**
Unrestricted Funds
General Funds
Revaluation Reserve
Pension Reserve
Designated Funds
Total Unrestricted Funds
15
Restricted Funds
16
**Total Funds**|2022
_2021_
£
_£_
95,599
_25,166_
3,197,466
_3,002,962_
600,000
_600,000_
Charity|Group
2022
_2021_
£
_£_
95,599
_25,166_
3,796,425
_3,622,414_
600,000
_600,000_
4,492,024
4,222,414
4,530,446
_1,703,699_
4,516,113
_5,780,485_
9,046,559
_7,484,183_
2,955,260)
(
_2,242,048)_
_(_
6,091,300
_5,242,135_
10,583,323
_9,464,549_
478,500)
(
_507,500)_
_(_
499,500)
(
_534,500)_
_(_
9,605,323
8,422,549
4,972,104
_4,837,651_
2,210,353
_2,280,953_
-
_-_
446,320
_507,719_
7,628,777
_7,626,323_
1,976,546
_796,226_
9,605,323
_8,422,549_|Group
2022
_2021_
£
_£_
95,599
_25,166_
3,796,425
_3,622,414_
600,000
_600,000_
4,492,024
4,222,414
4,530,446
_1,703,699_
4,516,113
_5,780,485_
9,046,559
_7,484,183_
2,955,260)
(
_2,242,048)_
_(_
6,091,300
_5,242,135_
10,583,323
_9,464,549_
478,500)
(
_507,500)_
_(_
499,500)
(
_534,500)_
_(_
9,605,323
8,422,549
4,972,104
_4,837,651_
2,210,353
_2,280,953_
-
_-_
446,320
_507,719_
7,628,777
_7,626,323_
1,976,546
_796,226_
9,605,323
_8,422,549_|
|---|---|---|---|
||3,893,065
3,628,128|4,492,024|4,222,414|
||5,731,615
_2,530,608_
4,453,436
_5,761,853_|4,530,446
4,516,113|_1,703,699_
_5,780,485_|
||10,185,051
_8,292,461_
2,868,715)
(
_2,075,517)_
_(_|9,046,559
2,955,260)
(|_7,484,183_
_2,242,048)_
_(_|
||7,316,336
_6,216,944_|6,091,300|_5,242,135_|
||11,209,401
_9,845,073_
478,500)
(
_507,500)_
_(_
499,500)
(
_534,500)_
_(_|10,583,323
478,500)
(
499,500)
(|_9,464,549_
_507,500)_
_(_
_534,500)_
_(_|
||10,231,401
8,803,073|9,605,323|8,422,549|
||5,797,407
5,428,500
2,011,128
2,070,628
-
-
446,320
507,719|4,972,104
2,210,353
-
446,320|_4,837,651_
_2,280,953_
_-_
_507,719_|
||8,254,855
8,006,847
1,976,546
796,226|7,628,777
1,976,546|_7,626,323_
_796,226_|
||10,231,401
8,803,073|9,605,323|_8,422,549_|
The Charity generated a surplus of £1,428,328 for the year (2021: deficit £368,105)
Approved by the Trustees and authorised for issue on 22nd December 2022 and signed on their behalf by:
The notes on pages 33 to 50 form part of these financial statements.
Yasmin Batliwala - Director
Charity Registration Number: 1031602 Company Registration Number: 2807934
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30
## **WESTMINSTER DRUG PROJECT CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022**
|Notes
**Reconciliation of Cashflows from Operating Activities**
Net Movement in Funds
Sales of fixed assets
Depreciation of tangible fixed assets
Loss on revaluation of freehold property
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
(Decrease)/Increase in provisions
Net cash (used in)/provided by operating activities
**Cashflows from Investing Activities**
Profit from sale of fixed assets
Purchase of fixed assets
Net cash (used in)/provided by investing activities
**Cashflows from Financing Activities**
(Decrease) in borrowing
Net cash (used in) financing activities
**(Decrease)/Increase in Cash and Cash Equivalents**
**Cash and Cash Equivalents at 1 April**
**Cash and Cash Equivalents at 31 March**
19
**Analysis of Cash and Cash Equivalents**
Cash at bank and in hand|2022
£
1,182,775
-
126,980
-
2,826,747)
(
713,212
34,999)
(|_2021_
_£_
_535,495)_
_(_
_4,701)_
_(_
_166,308_
_467,356_
_768,240_
_754,057)_
_(_
_53,420_|
|---|---|---|
||838,780)
(|_161,071_|
||-
396,590)
(|_4,701_
_-_|
||396,590)
(|_4,701_|
||29,000)
(|_29,000)_
_(_|
||29,000)
(|_29,000)_
_(_|
||1,264,371)
(
5,780,485|_136,772_
_5,643,713_|
||4,516,113|_5,780,485_|
||4,516,113|_5,780,485_|
||4,516,113|_5,780,485_|
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **1** _**Accounting policies**_
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## _**a) Basis of preparation**_
The financial statements have been prepared 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, 2nd edition, effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Charity 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 note(s).
## _**b) Basis of consolidation**_
The financial statements consolidate the accounts of Westminster Drug Project and its controlled entity Vale House Stabilisation Services. The results of these controlled entities are consolidated on a line by line basis for the year.
## _**c) Legal status of the Charity**_
The Charity is a company limited by guarantee incorporated in England and Wales whose registered office is 18 Dartmouth Street, London, SW1H 9BL. Registered number 2807934. The Charity has no share capital. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. There are 7 members of the Charity (2021: 7).
## _**d) Going concern**_
Following a review of current performance, budgets, cash flow forecasts, business plans and risks, there are no material uncertainties surrounding the Charity's ability to continue as a going concern. We have analysed the effects of the covid-19 pandemic and concluded that its effects will not be material on the Charity as a whole but has affected the financial and operational ability of VHSS. We have also very closely reviewed the current economic climate and its effects on costs and inflation, we have budgeted for these in the coming year and will manage our associated risks. We will continue to monitor these issues and their effects on staff, financial performance, future plans and the Charity as a whole. Overall, the Trustees are satisfied there are no material uncertainies surrounding the ability of the group to continue as a going concern and the financial statements have been prepared on that basis.
## _**e) Income**_
Income is credited to the statement of financial activities in the period to which it relates.
Donations and gifts are recognised when the Charity is entitled to the funds, receipt is probable and the amounts can be measured reliably. Gifts are valued by the Trustees on the basis of their worth to the company. Income from charitable activities comprises contracts for treatment services, advice and information, and outreach work. Income from contracts, advice and outreach work is recognised upon successful provision of the service on a receivables basis and is accrued or deferred where when funds are received in advance or arrears of service provision.
Grant income is recognised when the Charity becomes entitled to the funds. Where there are grant conditions, the income is recognised once those conditions have been fulfilled, otherwise it is deferred.
33
32
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## _**Expenditure**_
## _**f)**_
Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Charitable expenditure comprises services identifiable as wholly or mainly in support of the company’s charitable and operational work. These costs are regarded as an integral part of carrying out the direct charitable objectives of the company and include an appropriate proportion of overhead costs. During the year we identified that all such overheads should be apportioned directly to service contracts and subsidiary companies. Comparative information for the prior year remains unchanged as it is impractical to reallocate costs for the prior year.
Governance costs comprise expenditure incurred for constitutional and statutory requirements.
All resources expended are allocated to the particular activity where the cost relates directly to that activity. Indirect costs and overhead expenses are apportioned by the Trustees on a judgemental basis across all service project cost centres in proportion to the turnover or number of staff directly working in each of the service projects.
## _**g) Volunteers**_
The value of the services provided by volunteers is not incorporated into these financial statements.
## _**h) Fixed assets**_
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **j)** _**Investment Properties**_
Investment properties are measured at fair value with any change recognised in the Statement of Financial Activities. The Trustees deem market value to be a fair approximation of fair value for the purpose of obtaining valuations. A full valuation is undertaken every five years.
## _**k) Fund accounting**_
- Unrestricted accumulated funds consist of those funds that the company may use in furtherance of its objectives at the discretion of the Trustees.
Designated funds are those unrestricted funds that have been set aside (designated) for particular use by the Trustees. The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.
## _**Taxation**_
## _**l)**_
- The Charity meets the definition of a charitable company for UK corporation tax purposes.
The Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Expenditure on equipment is only capitalised where the cost of individual items exceeds £2,500.
Depreciation is provided at the following annual rates in order to write off the cost of each asset over its expected useful life:
Furniture and Equipment 25% straight line Fixtures and Fittings Estimated Useful Life, 3-10 years Computer Equipment 25%-33% straight line Leasehold Improvement Term of lease Freehold Property (Buildings) 2% straight line Intangible Fixed Assets - Software 20% straight line
As is common with many charities, assets are purchased for particular projects from the proceeds of funding specifically given for that purpose. In such circumstances the funds specifically given are treated as income in the year of receipt and the cost of purchase is treated as expenditure in the year of acquisition, which are usually the same financial year. The costs of refurbishment of the leasehold premises are being matched with the grants recognised as income over the average terms of the leases in a designated fund.
## _**i) Revaluation of tangible fixed assets**_
The Charity has adopted the revaluation model to revalue items of freehold property whose fair value can be measured reliably. The revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. The fair value of land and buildings is usually determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. A full valuation is undertaken every five years. Revaluation gains and losses are recognised in the Statement of Financial Activities and added to reserves in a separate Revaluation Reserve.
## _**m) Pension Costs**_
- The Charity operates both defined contribution and defined benefit pension schemes for its employees. The assets of both schemes are held separately from those of the charity.
- Defined Contribution Schemes:
- The pension costs of the schemes represent the contributions payable by the Charity during the year and are charged to the Statement of Financial Activities within staff costs.
- Defined Benefit Schemes:
The pension costs of the schemes represent the contributions payable by the Charity during the year together with any provision for WDP's liability in relation to the schemes.
Where the Charity participates in a multi-employer defined benefit scheme it is not always possible to identify on a reasonable and consistent basis the Charity's share of the underlying assets and liabilities as the assets are joined for investment purposes and benefits realised from total assets of any scheme. The accounting charge for the period, under FRS 102 represents the employer's contribution payable. The liability to make payments to fund any deficit relating to past service is recognised where the Charity has entered into an agreement to make those payments. Where notice has been given to exit a scheme then the liability included in the financial statements is the Trustees' best estimate of the liability on withdrawal.
## _**n) Operating leases**_
Rentals applicable to operating leases are charged to the Statement of Financial Activities in the period in which the cost is incurred. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period of the lease.
## _**o) Debtors**_
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.
35
34
## **WESTMINSTER DRUG PROJECT**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## _**p) Creditors**_
Creditors are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.
## _**q) Financial Instruments**_
Financial assets and liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. All financial assets and liabiltities are initially measured at transaction price (including transaction costs). The Charity only has financial assets and financial liabilites 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.
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and cash 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.
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
Concessionary inter company loan was originally recognised at transaction price and subsequently at amortised cost
## _**r)**_ **Country of incorporation and registered office address**
The registered office is situated in England and Wales and its address is 18 Dartmouth Street, London, SW1H 9BL.
## _**s)**_ **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.
## _**t)**_ **Judgements and key sources of estimation uncertainty**
In the application of the Charity’s accounting policies, the Trustees are required to make judgment estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The Trustees have reviewed the current Balance Sheet value of assets and liabilities and in particular property and buildings in the light of the Covid-19 pandemic and believe the values as stated are correct at this time. The estimates and associated assumptions based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2** Income
|2022
£
Donations
Unrestricted - General
500
Restricted
-
500
Charitable Activities
Drug & Alcohol Services incl Integrated, Adult, Young People & Criminal Justice
21,279,824
Residential Detox & Rehab
1,267,688
22,547,512
The Trustees' Report contains information on the local authorities that fund the Charity's services.
There are no unfulfilled conditions or other contingencies attaching to government funding received.
2022
£
Investments
Bank Interest
-
-
Other Income
Sundry Income
74,495
74,495
**3** Total Expenditure
Staff
Direct
Support
Total
Costs
Costs
Costs
2022
(Excl staff cost)
£
£
£
£
Drug & Alcohol Services
12,809,349
6,166,886
733,379
19,709,614
Residential Detox & Rehab
721,199
533,224
272,409
1,526,832
Governance Costs
-
-
203,286
203,286
13,530,548
6,700,110
1,209,075
21,439,733|2022
£
Donations
Unrestricted - General
500
Restricted
-
500
Charitable Activities
Drug & Alcohol Services incl Integrated, Adult, Young People & Criminal Justice
21,279,824
Residential Detox & Rehab
1,267,688
22,547,512
The Trustees' Report contains information on the local authorities that fund the Charity's services.
There are no unfulfilled conditions or other contingencies attaching to government funding received.
2022
£
Investments
Bank Interest
-
-
Other Income
Sundry Income
74,495
74,495
**3** Total Expenditure
Staff
Direct
Support
Total
Costs
Costs
Costs
2022
(Excl staff cost)
£
£
£
£
Drug & Alcohol Services
12,809,349
6,166,886
733,379
19,709,614
Residential Detox & Rehab
721,199
533,224
272,409
1,526,832
Governance Costs
-
-
203,286
203,286
13,530,548
6,700,110
1,209,075
21,439,733|2022
£
500
-|_2021_
_£_
_6,332_
_10,000_|
|---|---|---|---|
|||500|_16,332_|
|||21,279,824
1,267,688|_22,542,291_
_705,402_|
|||22,547,512|_23,247,693_|
||||_2021_
_£_
_-_|
|||-|_-_|
|||74,495|_52,215_|
|||74,495|_52,215_|
|||Total
2022
£
19,709,614
1,526,832
203,286|_Total_
_2021_
_£_
_22,060,646_
_973,117_
_350,616_|
||13,530,548
6,700,110
1,209,075|21,439,733|_23,384,378_|
The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the accounting period in which the estimate is reviewed where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Areas of key estimate and judgement include the valuation of land and buildings, the valuation of the defined benefit pension scheme liability and provisions for liabilities including dilapidations and pension scheme exit liabilities.
37
36
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **3** Total Expenditure (Ctd)
Allocation of Support Costs (excl Staff Costs)
|Drug & Alcohol Services
Residential Detox & Rehab
Governance Costs|Executive
Finance &
Business
Quality,
Total
_Total_
& Central
Resources
Development
Data &
Admin
Performance
2022
_2021_
£
£
£
£
£
_£_
330,288
316,077
21,058
65,955
733,379
_1,769,840_
272,409
-
-
-
272,409
_40,153_
173,286
30,000
-
-
203,286
_350,616_
775,984
346,078
21,058
65,955
1,209,075
_2,160,608_|
|---|---|
Property repairs and maintenance, insurance and IT costs (including equipment, maintenance, software and internet and communication costs) are now charged directly to service contracts and therefore no longer attributable to support costs. Comparatives for 20/21 have not been restated and these amounted to £1,121,000 for that period.
|Governance Costs
Legal & Professional
Audit Fees
Head Office Costs|2022
_2021_
£
_£_
35,470
_219,462_
30,000
_29,700_
137,817
_101,453_
203,286
_350,616_|
|---|---|
All governance costs in the current and previous year relate to unrestricted funds. All expenditure within the Financial Statements is inclusive of unrecoverable Vat.
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **5** Analysis of Staff Costs & Key Management Personnel (Ctd)
The number of employees whose emoluments for taxation purposes amounted to over £60,000 in the year was as follows:
|as follows:|||
|---|---|---|
||2022|_2021*_|
|£60,001 - £70,000|5|_5_|
|£70,001 - £80,000|1|_2_|
|£80,001 - £90,000|1|_0_|
|£90,001 - £100,000|1|_1_|
|£100,001 - £110,000|1|_1_|
|£110,001 - £120,000|3|_2_|
|£120,001 - £130,000|1|_1_|
|£130,001 - £140,000|1|_0_|
|£140,001 - £150,000|0|_1_|
|£150,001 - £160,000|1|_0_|
|*2021 restated to include recharged overtime.|||
||£|_£_|
|Pension contributions in respect of the above bandings|37,814|_25,895_|
Trustees are not remunerated for their services and during the year, no Trustee was reimbursed for any travel expenses (2021 - £0)
The average monthly number of employees during the year was as follows:
## **4** Net Income
|Net Income is stated after charging:
Auditors Remuneration: current year (excluding Vat)
Auditors Remuneration: under-accrual prior year (excluding Vat)
Operating Leases
Depreciation
Interest Paid|2022
_2021_
£
_£_
25,000
_24,750_
-
_9,750_
484,953
_745,659_
126,980
_166,307_
11,401
_12,315_
648,334
_958,781_|
|---|---|
|Management, Administration & Support
Drug & Alcohol Services
Residential Detox & Rehab|2022
_2021_
£
_£_
43
_44_
308
_337_
19
_19_
370
_400_|
|---|---|
During the year the total aggregate amount of termination benefits recognised in the year was £19,968 (2021 - £41,262).
Key management personel throughout the year consisted of 10 staff (2021 - 11) whose total remuneration, including pension contribution and social security costs paid by Charity equate to £914,888 (2021 - £792,104).
## **5** Analysis of Staff Costs & Key Management Personnel
|Salaries & Wages
Social Security Costs
Pension Costs
Clinical, Agency Support & Other Staffing Costs|2022
_2021_
£
_£_
11,925,939
_12,334,760_
1,203,729
_1,224,725_
400,880
_444,978_
13,530,548
_14,004,464_
1,450,764
_1,278,370_
14,981,312
_15,282,834_|
|---|---|
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38
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **6** Fixed Assets
|Group
Cost or Valuation
At 1 April 2021
Additions
Revaluations
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for year
Released on revaluation
Disposals
At 31 March 2022
Net Book Value
At 31 March 2022
At 1 April 2021
Charity
Cost or Valuation
At 1 April 2021
Additions
Revaluation
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for year
Released on revaluation
Disposals
At 31 March 2022
Net Book Value
At 31 March 2022
At 1 April 2021|Intangible
Freehold Land
Leasehold
Fixtures,
Software
& Buildings
Improvemts
Fittings & Eq
£
£
£
£
3,530,000
382,756
269,941
112,390
-
251,210
45,316
100,064
-
-
-
-
-
-
-
-
Tangible|Total
2022
£
4,295,087
396,590
-
-|
|---|---|---|
||3,530,000
633,967
315,257
212,454|4,691,678|
||-
348,377
237,073
87,224
70,600
1,721
25,028
29,631
-
-
-
-
-
-
-
-|672,673
126,980
-
-|
||70,600
350,098
262,101
116,855|799,653|
||3,459,400
283,869
53,156
95,599|3,892,024|
||3,530,000
34,379
32,869
25,166|3,622,414|
||2,975,000
215,606
241,453
112,390
-
251,210
24,064
100,064
-
-
-
-
-
-
-
-|3,544,449
375,339
-
-|
||2,975,000
466,816
265,517
212,454|3,919,787|
||-
213,647
215,450
87,224
59,500
605
20,666
29,631
-
-
-
-
-
-
-
-|516,320
110,402
-
-|
||59,500
214,252
236,116
116,855|626,722|
||2,915,500
252,564
29,402
95,599|3,293,065|
||2,975,000
1,959
26,003
25,166|3,028,128|
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **7** Fixed Assets
Investments - Property
Total 2022 Group & Charity £ Market Value At 1 April 2021 600,000 Additions - Revaluations - - Disposals At 31 March 2022 600,000
Freehold Land and Buildings were revalued as at 31 March 2021. The valuation was undertaken by Cluttons Chartered Surveyors. The historical cost of these properties is £494,425 (2021 - £494,425)
## **8** Subsidiary Undertakings
WDP has two wholly owned subsidiaries, Vale House Stabilisation Services (VHSS) and WDP Services Ltd.
## Vale House Stabilisation Services
VHSS is a charitable company limited by guarantee, company number 03197716, charity number 1055486. WDP control the subsidiary by controlling the membership of the Board of Trustees. The activities and results of VHSS are summarised as follows:
|Statement of Financial Activities
Total Income
Total Expenditure
Net (Expenditure)
Gain on revaluation of freehold property
Net Movement on Funds
Balance Sheet
Total Assets
Total Liabilities
Net Liabilities/Funds|2022
_2021_
£
_£_
1,281,279
_705,402_
1,526,832)
(
_973,117)_
_(_
245,554)
(
_267,715)_
_(_
-
_100,325_
245,554)
(
_167,390)_
_(_
987,453
_1,002,527_
1,613,531)
(
_1,383,051)_
_(_
626,078)
(
_380,524)_
_(_|
|---|---|
## WDP Services Ltd
WDP Services Ltd is a trading company limited by guarantee, having no share capital, company number 12362901. WDP control the subsidiary by controlling the membership of the Board.
WDP Services Ltd had no activity in the year and as such is a dormant company.
Freehold Land and Buildings were revalued as at 31 March 2021. The valuation was undertaken by Cluttons Chartered Surveyors. The historical cost of these properties is £1,137,266 (2021 - £1,137,266).
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40
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **12** Deferred Income
## **9** Debtors
|Trade Debtors
Amounts Owed from Group undertakings
Concessionary Loan
Other
Prepayments & Accrued Income
Other debtors|Group
2022
_2021_
2022
_2021_
£
_£_
£
_£_
3,861,291
_1,055,982_
4,185,109
_1,417,674_
1,200,000
_1,200,000_
-
_-_
326,987
_16,520_
-
_-_
337,185
_237,515_
339,185
_265,434_
6,153
_20,591_
6,153
_20,591_
5,731,615
_2,530,608_
4,530,446
_1,703,699_
Charity|
|---|---|
A concessionery loan of £1,200,000 was made from WDP, the parent Charity, to VHSS during the year As the concessionery loan is for charitable purposes it is unsecured, repayable on demand and 0% interest. It is expected that the first repayment will be in 2023/24.
## **10** Creditors: amounts falling due within one year
|Bank Loans
Trade Creditors
Accruals & Deferred Income
Taxation & Social Security
Other Creditors|Group
2022
_2021_
2022
_2021_
£
_£_
£
_£_
29,000
_29,000_
29,000
_29,000_
2,281,121
_1,061,381_
2,296,688
_1,104,485_
106,870
_597,584_
151,097
_640,108_
354,315
_287,446_
371,027
_301,412_
97,409
_100,105_
107,447
_167,043_
2,868,715
_2,075,517_
2,955,260
_2,242,048_
Charity|
|---|---|
|**12** Deferred Income||||
|---|---|---|---|
|Unrestricted
Opening: Balance 1 April
Amount released in year
Amounts deferred in year
Closing balance 31 March
**13** Provisions for Liabilities - Group and Charity
Pension Provision
Dilapidations & Repairs|At 1 April
Utilised/
2021
Released
£
£
194,000
-
340,500
70,000)
(|2022
£
11,375)
(
11,375
27,290|_2021_
_£_
_170,259_
_170,259)_
_(_
_11,375_|
|||27,290|_11,375_|
|||Provided
£
-
35,000|At 31 March
2022
£
194,000
305,500|
||534,500
70,000)
(|35,000|499,500|
## Dilapidations & Repairs
Costs that the Charity estimate may be incurred upon vacating properties that are currently occupied for the delivery of services. The provision is split over all properties leased by the Charity. Uncertainy exists regarding both the amount and the timing of these costs.
## Pension Provision
Costs that the Charity estimate may be incurred to exit historic pension arrangements.
## **11** Creditors: amounts falling due after one year
|Bank Loans
Bank loans 2-5 years|Group
2022
_2021_
2022
_2021_
£
_£_
£
_£_
478,500
_507,500_
478,500
_507,500_
478,500
_507,500_
478,500
_507,500_
Charity|
|---|---|
Bank loans are secured on freehold properties.
A Barclays Bank Plc loan for £580,000 was made to WDP on 2 August 2019 for a term of 5 years for the freehold purchase of Kings Acre, Third Avenue, Harlow. Interest is charged at 2.05% over bank base rate.
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42
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **14** Commitments under Operating Leases
At 31 March 2022 the Group and Charity had future minimum lease payments under non-cancellable operating leases as follows:
|leases as follows:|||
|---|---|---|
|Not more than 1 year
More than 1 year and less than 5 years
More than 5 years
Unrestricted Funds
Unrestricted Funds
General Funds
Balance at 1 April
Net Income/(Expenditure) before Transfers
Transfers (to)/from Designated Funds
Other recognised Gains/(Losses)
Balance at 31 March
Designated Funds
Balance at 1 April
Net Income/(Expenditure) before Transfers
Transfers (to)/from General Unrestricted Funds
Balance at 31 March
Total Unrestricted Funds at 31 March 2022|Group
2022
_2021_
2022
_2021_
£
_£_
£
_£_
371,579
_473,987_
371,579
_473,987_
720,920
_437,426_
720,920
_437,426_
-
_-_
-
_-_
1,092,499
_911,413_
1,092,499
_911,413_
Group
2022
_2021_
2022
_2021_
£
_£_
£
_£_
7,499,129
8,481,186
7,118,605
_8,268,052_
416,907
164,377)
(
171,353
_432,092)_
_(_
107,500)
(
250,000)
(
107,500)
(
_250,000)_
_(_
7,808,536
8,066,809
7,182,458
7,585,960
-
567,681)
(
-
_467,356)_
_(_
7,808,536
7,499,129
7,182,458
7,118,605
507,719
461,910
_507,719_
_461,910_
168,898)
(
204,191)
(
_168,898)_
_(_
_204,191)_
_(_
107,500
250,000
_107,500_
_250,000_
_446,320_
_507,719_
_446,320_
_507,719_
_8,254,856_
_8,006,847_
_7,628,778_
_7,626,323_
Charity
Charity||
||7,808,536
8,066,809
7,182,458
-
567,681)
(
-|7,585,960
_467,356)_
_(_|
||7,808,536
7,499,129
7,182,458|7,118,605|
||507,719
461,910
_507,719_
168,898)
(
204,191)
(
_168,898)_
_(_
107,500
250,000
_107,500_|_461,910_
_204,191)_
_(_
_250,000_|
||_446,320_
_507,719_
_446,320_|_507,719_|
||_8,254,856_
_8,006,847_
_7,628,778_|_7,626,323_|
## **15** Unrestricted Funds
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
**16** Analysis of Net Assets between Funds
|Revaluation
Unrestricted
Designated
Restricted
Reserve
Fund
Fund
Fund
£
£
£
£
Fund balances at 31 March 2022
are represented by :
Tangible Fixed Assets
2,104,778
1,691,646
-
-
Intangible Fixed Assets
-
95,599
-
-
Investments - Property
105,575
494,425
-
-
Current Assets
-
6,623,693
446,320
1,976,546
Creditors: falling due within 1 year
-
2,955,260)
(
-
-
Creditors: falling due after 1 year
-
478,500)
(
-
-
Provisions
-
499,500)
(
-
-
Total Net Assets
2,210,353
4,972,104
446,320
1,976,546
Movement in Funds
At 1 April
Income
Expenditure
Transfers
Gains /
2021
(Losses)
£
£
£
£
£
Unrestricted Funds
General Funds
4,837,651
19,063,072
18,821,118)
(
107,500)
(
-
Revaluation Reserve
2,280,953
-
70,600)
(
-
-
_Sub-total_
7,118,604
19,063,072
18,891,718)
(
107,500)
(
-
Designated Funds
Premises Improvement Fund
83,443
-
-
-
-
Development Fund
424,276
-
168,898)
(
107,500
-
_Sub-total_
507,719
-
168,898)
(
107,500
-
Total Unrestricted Funds
7,626,323
19,063,072
19,060,617)
(
-
-
Restricted Funds
Capital Grants
167,694
-
-
-
-
Gilead HepC
10,812
19,248
3,759)
(
-
-
Greenwich Residential Trtmt
121,645
201,300
115,713)
(
-
-
Redbridge Outreach Covid
96,332
-
69,583)
(
-
-
Redbridge Bewize Covid
68,891
-
63,619)
(
-
-
Redbridge Rough Sleepers
108,719
84,245
153,199)
(
-
-
Other Charitable Activities
222,133
3,254,642
1,973,242)
(
-
-
Total Restricted Funds
796,226
3,559,435
2,379,116)
(
-
-
Total Funds
8,422,549
22,622,507
21,439,733)
(
-
-|Revaluation
Unrestricted
Designated
Restricted
Reserve
Fund
Fund
Fund
£
£
£
£
Fund balances at 31 March 2022
are represented by :
Tangible Fixed Assets
2,104,778
1,691,646
-
-
Intangible Fixed Assets
-
95,599
-
-
Investments - Property
105,575
494,425
-
-
Current Assets
-
6,623,693
446,320
1,976,546
Creditors: falling due within 1 year
-
2,955,260)
(
-
-
Creditors: falling due after 1 year
-
478,500)
(
-
-
Provisions
-
499,500)
(
-
-
Total Net Assets
2,210,353
4,972,104
446,320
1,976,546
Movement in Funds
At 1 April
Income
Expenditure
Transfers
Gains /
2021
(Losses)
£
£
£
£
£
Unrestricted Funds
General Funds
4,837,651
19,063,072
18,821,118)
(
107,500)
(
-
Revaluation Reserve
2,280,953
-
70,600)
(
-
-
_Sub-total_
7,118,604
19,063,072
18,891,718)
(
107,500)
(
-
Designated Funds
Premises Improvement Fund
83,443
-
-
-
-
Development Fund
424,276
-
168,898)
(
107,500
-
_Sub-total_
507,719
-
168,898)
(
107,500
-
Total Unrestricted Funds
7,626,323
19,063,072
19,060,617)
(
-
-
Restricted Funds
Capital Grants
167,694
-
-
-
-
Gilead HepC
10,812
19,248
3,759)
(
-
-
Greenwich Residential Trtmt
121,645
201,300
115,713)
(
-
-
Redbridge Outreach Covid
96,332
-
69,583)
(
-
-
Redbridge Bewize Covid
68,891
-
63,619)
(
-
-
Redbridge Rough Sleepers
108,719
84,245
153,199)
(
-
-
Other Charitable Activities
222,133
3,254,642
1,973,242)
(
-
-
Total Restricted Funds
796,226
3,559,435
2,379,116)
(
-
-
Total Funds
8,422,549
22,622,507
21,439,733)
(
-
-|Revaluation
Unrestricted
Designated
Restricted
Reserve
Fund
Fund
Fund
£
£
£
£
2,104,778
1,691,646
-
-
-
95,599
-
-
105,575
494,425
-
-
-
6,623,693
446,320
1,976,546
-
2,955,260)
(
-
-
-
478,500)
(
-
-
-
499,500)
(
-
-|Total
£
3,796,425
95,599
600,000
9,046,559
2,955,260)
(
478,500)
(
499,500)
(|
|---|---|---|---|
|||2,210,353
4,972,104
446,320
1,976,546|9,605,323|
||||At 31 March
2022
£
4,972,104
2,210,353|
||||7,182,458|
||||83,443
362,877|
||507,719
-
168,898)
(
107,500
-||446,320|
||7,626,323
19,063,072
19,060,617)
(
-
-||7,628,778|
||||167,694
26,301
207,232
26,748
5,272
39,765
1,503,534|
||796,226
3,559,435
2,379,116)
(
-
-||1,976,546|
||8,422,549
22,622,507
21,439,733)
(
-
-||9,605,324|
45
44
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
**16** Analysis of Net Assets between Funds (ctd.)
Development funds: funds that have been designated by the Trustee's for future planned expenditure on specific purposes. Total development funds of £362,877 have been created to develop our 'Core Model of Service', quality and breadth of service provision.
Restricted Funds: funds that have been restricted in use or purpose by the funder and include both capital and revenue funds for purposes as noted in description.
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **18** Pension Schemes
The Charity's employees belong to four principal pension schemes. The People's Pension Scheme; the NHS Pension Scheme; the Local Government Pension Scheme and the Prudential Platinum Pension Scheme.
## Peoples Pension Scheme
The Peoples Pension Scheme is a stakholder pension scheme for the majority of the Charity's staff. The contributions payable in the year amounted to £280,840 (2021 - £305,987).
## **17** Comparative analysis of net assets between funds and movement in funds
|_Fund balances at 31 March 2021_
_are represented by :_
_Fixed Assets_
_Current Assets_
_Creditors: falling due within 1 year_
_Creditors: falling due after 1 year_
_Provisions_
_Total Net Assets_
_Movement in Funds_
_At 1 April_
_2020_
_£_
_Unrestricted Funds_
_Revaluation Reserve_
_2,748,309_
_Pension Reserve_
_-_
_Designated Funds_
_Premises Improvement Fund_
_83,443_
_Development Fund_
_378,467_
_3,210,219_
_General Funds_
_5,519,744_
_8,729,963_
_Restricted Funds_
_Capital Grants_
_183,041_
_Gilead HepC_
_45,041_
_Greenwich Residential Trtmt_
_-_
_Redbridge Outreach Covid_
_-_
_Redbridge Bewize Covid_
_-_
_Redbridge Rough Sleepers_
_-_
Other Charitable Activities
-
228,082
Total Funds
8,958,045|_Fund balances at 31 March 2021_
_are represented by :_
_Fixed Assets_
_Current Assets_
_Creditors: falling due within 1 year_
_Creditors: falling due after 1 year_
_Provisions_
_Total Net Assets_
_Movement in Funds_
_At 1 April_
_2020_
_£_
_Unrestricted Funds_
_Revaluation Reserve_
_2,748,309_
_Pension Reserve_
_-_
_Designated Funds_
_Premises Improvement Fund_
_83,443_
_Development Fund_
_378,467_
_3,210,219_
_General Funds_
_5,519,744_
_8,729,963_
_Restricted Funds_
_Capital Grants_
_183,041_
_Gilead HepC_
_45,041_
_Greenwich Residential Trtmt_
_-_
_Redbridge Outreach Covid_
_-_
_Redbridge Bewize Covid_
_-_
_Redbridge Rough Sleepers_
_-_
Other Charitable Activities
-
228,082
Total Funds
8,958,045|_Revaluation_
_Unrestricted_
_Designated_
_Restricted_
_Reserve_
_Fund_
_Fund_
_Fund_
_£_
_£_
_£_
_£_
_2,280,953_
_1,941,461_
_6,180,239_
_507,719_
_796,226_
_2,242,048)_
_(_
_507,500)_
_(_
_534,500)_
_(_|_Total_
_£_
_4,222,414_
_7,484,183_
_2,242,048)_
_(_
_507,500)_
_(_
_534,500)_
_(_|
|---|---|---|---|
|||_2,280,953_
_4,837,651_
_507,719_
_796,226_|_8,422,549_|
|||_Income_
_Expenditure_
_Transfers_
_Gains /_
_(Losses)_
_£_
_£_
_£_
_£_
_-_
_-_
_-_
_467,356)_
_(_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_204,191)_
_(_
_250,000_
_-_|_At 31 March_
_2021_
_£_
_2,280,953_
_-_
_83,443_
_424,276_|
||_3,210,219_
_5,519,744_|_-_
_204,191)_
_(_
_250,000_
_467,356)_
_(_
_22,468,056_
_22,900,148)_
_(_
_250,000)_
_(_
_-_|_2,788,672_
_4,837,651_|
||_8,729,963_|_22,468,056_
_23,104,339)_
_(_
_-_
_467,356)_
_(_|_7,626,323_|
||_183,041_
_45,041_
_-_
_-_
_-_
_-_
-|_-_
_15,347)_
_(_
_-_
_-_
_-_
_34,229)_
_(_
_-_
_-_
_201,300_
_79,655)_
_(_
_-_
_-_
_120,000_
_23,668)_
_(_
_-_
_-_
_100,000_
_31,109)_
_(_
_-_
_-_
_108,719_
_-_
_-_
_-_
318,165
96,032)
(
-
-|_167,694_
_10,812_
_121,645_
_96,332_
_68,891_
_108,719_
_222,133_|
||228,082|848,184
280,039)
(
-
-|_796,226_|
||8,958,045|23,316,239
23,384,379)
(
-
467,356)
(|_8,422,549_|
## NHS Pension Scheme
Past and present employees are covered by the provisions of NHS Pension Schemes. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. These are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period.
In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”. An outline of these follows:
## a) Accounting valuation
A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous
accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2022, is based on valuation data as 31 March 2021, updated to 31 March 2022 with summary global member and accounting data.
## b) Full actuarial (funding) valuation
The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.
The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019 to 20.6% of pensionable pay. The 2016 funding valuation was also expected to test the cost of the Scheme relative to the employer cost cap that was set following the 2012 valuation. In January 2019, the Government announced a pause to the cost control element of the 2016 valuations, due to the uncertainty around member benefits caused by the discrimination ruling relating to the McCloud case.
The Government subsequently announced in July 2020 that the pause had been lifted, and so the cost control element of the 2016 valuations could be completed. The Government has set out that the costs of remedy of the discrimination will be included in this process. HMT valuation directions will set out the technical detail of how the costs of remedy will be included in the valuation process. The Government has also confirmed that the Government Actuary is reviewing the cost control mechanism (as was originally announced in 2018).
47
46
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **18** Pension Schemes (Ctd)
The review will assess whether the cost control mechanism is working in line with original government objectives and reported to Government in April 2021. The findings of this review will not impact the 2016 valuations, with the aim for any changes to the cost cap mechanism to be made in time for the completion of the 2020 actuarial valuations.
The scheme's Combined Statement of Financial Position to 31 March 2021 show an unfunded liability of £868,972,671,000. The unfunded liability will result in future payments by participating employers. The scheme has approximately 1,749,681 active members, of which 21 (2021 – 24) were employees of Westminster Drug Project as at year end. The expense recognised in the Statement of Financial Activities, which is equal to contributions due for the year, were £90,802 (2021 - £112,685).
## Local Government Pension Scheme
The Charity participates in the Local Government Pension Schemes where appropriate.
The market value of the fund's assets as at 31st March 2021 was £342billion with an overall funding level of 98% of its liabilities. The scheme is a multi-employer defined benefit plan but because the Charity cannot ascertain its share of any underlying assets and liabilities and hence deficit, it is accounted for as a defined contribution scheme. The Charity paid primary and secondary contributions. The amount payable in the year was £13,194 (2021 - £26,306) for 3 active members (2021 - 3). Contribution rates were 5.5% - 12.5%. The next scheme actuarial valuation is due as at 31 March 2022
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **19** Reconciliation of Net Debt
|Cash at Bank and in Hand
Borrowing|2021
Cashflows
2022
£
£
£
5,780,485
1,264,372)
(
4,516,113
536,500)
(
29,000
507,500)
(
5,243,985
1,235,372)
(
4,008,613|
|---|---|
## **20** Related Party Transactions
During the year, there were amounts owed from and to subsidiaries. For the year ended 31st March 2022, £1,526,987 was owed from Vale House Stabilisation Services (2021 : £1,216,520). Of this balance, £1,200,000 is in the form of an unsecured concessionery loan at 0% interest and repayable on demand. The concessionery loan was signed and agreed 31st March 2021 and it is expected that the first repayment will be in 2023/24. Other intercompany transactions included an amount of £174,187 charged to Vale House Stabilisation Services for salary recharges, £155,510 for management support charges and, £23,722 charged by Vale House Stabilisation Services for salary recharges and £73,777 for residential rehabilitation and detoxification services. The Trustees are not remunerated for their services and during there was no reimbursment for travel expenses (2021 - £0).
During the year payments of £25,000 (2021: £25,000) were made to the chair, Ms Yasmin Batliwala, in her capacity for consultancy on communications matters. £12,500 remains outstanding at year end. This arrangement is permitted under clause 6.4.2 of the Charity's Articles of Association.
## Prudential Platinum Pension Scheme
The Charity also funded 4 employees (2021 - 4) who are members of a scheme with Prudential Platinum Pension Scheme, as at 31 March 2021, all 4 members are deferred.
The scheme started on 1 September 2012 and provides retirement and death in service benefits for members and their dependants. It is a defined benefit scheme which means that the benefits are calculated on a pre-determined basis specified in the scheme's rules.
The scheme is a "Registered Pension Scheme" within the meaning given by section 150(2) of the Finance Act 2004. Members of the section are contracted-out of the earnings-related part of the scheme.
Under rule 38.1 of the scheme, WDP gave notice that it was terminating its liability to pay contributions with effect from 1 April 2019. By doing so the winding-up of the WDP section of the scheme was triggered and all remaining liabilities will be discharged. Actuarial valuations will be obtained to allow the scheme to wind up, and as disclosed in Note 13, WDP has provided for the best estimate of settling it's obligations and discharging all liabilities under the scheme. Until the scheme is effectively wound up WDP will be liable for all administration fees, fees in 2022 were £23,081 (2021 - £23,081).
49
48
## **WESTMINSTER DRUG PROJECT NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022**
## **21** Comparative Statement of Financial Activities for the year ended 31 March 2021
|_Notes_
**_Income_**
_Donations_
_2_
_Charitable Activities_
_2_
_Investment Income_
_2_
_Other Income_
_2_
**_Total Income_**
**_Expenditure_**
_Charitable Activities_
_3_
**_Total Expenditure_**
**_Net Income/(Expenditure) before transfers_**
**_Transfers between Funds_**
**_Net Income/(Expenditure) for the year_**
**_Other recognised Gains/(Losses)_**
_(Losses) on revaluation of freehold property_
_Actuarial gains on defined benefit pension_
_scheme_
**_Net Movement on Funds_**
**_Funds at 1 April 2020_**
**_Funds at 31 March 2021_**|_Restricted &_
_Total_
_Total_
_General_
_Designated_
_Endowment_
_2021_
_2020_
_£_
_£_
_£_
_£_
_£_
_6,332_
_-_
_10,000_
_16,332_
_5,224_
_22,409,509_
_-_
_838,184_
_23,247,693_
_26,111,653_
_-_
_-_
_-_
_-_
_1,240_
_52,215_
_-_
_-_
_52,215_
_33,149_
_22,468,056_
_-_
_848,184_
_23,316,240_
_26,151,266_
_22,900,148_
_204,191_
_280,039_
_23,384,378_
_25,502,824_
_22,900,148_
_204,191_
_280,039_
_23,384,378_
_25,502,824_
_432,092)_
_(_
_204,191)_
_(_
_568,144_
_68,139)_
_(_
_648,442_
_250,000)_
_(_
_250,000_
_-_
_-_
_-_
_682,092)_
_(_
_45,809_
_568,144_
_68,139)_
_(_
_648,442_
_467,356)_
_(_
_-_
_-_
_467,356)_
_(_
_-_
_-_
_-_
_-_
_-_
_123,061_
_1,149,448)_
_(_
_45,809_
_568,144_
_535,495)_
_(_
_771,503_
_8,268,052_
_461,910_
_228,082_
_8,958,044_
_8,186,541_
_7,118,604_
_507,719_
_796,226_
_8,422,549_
_8,958,044_
_Unrestricted_|
|---|---|
www.wdp.org.uk
WDP Head Office | 18 Dartmouth Street | London SW1H 9BL Registered charity no 1031602 | Company no 2807934 Limited by guarantee | Registered in England and Wales
50