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2021-03-31-accounts

Registered Number: 03249335 Charity number: 1059015

HERTS ABILITY

(A Company limited by guarantee)

TRUSTEES’ REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

HERTS ABILITY

CONTENTS

Page
Legal and administrative information 1 - 2
Trustees’ Annual Report 3 - 8
Independent Examiners' Report 9
Statement of financial activities 10
Balance sheet 11
Cash flow statement 12
Notes to the Financial Statements 13 - 20

HERTS ABILITY LEGAL AND ADMINISTRATIVE INFORMATION

Herts Ability is registered as a charity and is a company limited by guarantee governed by its Articles of Association.

Company No. 03249335 Charity No. 1059015

Directors/Trustees

The directors of the Charitable company (the Charity) are its trustees for the purposes of charitable law and, throughout this report, are collectively referred to as the trustees.

The trustees serving during the year and since the year end were as follows:

Trustees Mr N Dotchin (Chair) Mrs P Read Mr D Cocks (Resigned 5 November 2020) Mr K Parker Mr D Kellett Mr A Picken Mrs B McNeil Mrs A Mehmet-Garrison Registered and Principal Office Unit 2 Weltech Business Centre Ridgeway Welwyn Garden City England AL7 2AA

Page 1

HERTS ABILITY LEGAL AND ADMINISTRATIVE INFORMATION (CONT'D)

Independent examiners Moore Kingston Smith LLP 4 Victoria Square Victoria Street St Albans Hertfordshire AL1 3TF Bankers The Co-Operative Bank plc 1 Balloon Street Manchester M60 4EP Fund managers CCLA Fund Managers Limited Senator House 85 Queen Victoria Street London EC4V 4ET Solicitors Ewart Price 16-18 Church Road Welwyn Garden City Herts AL8 6PS

Page 2

HERTS ABILITY

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

Our services during the year

The Covid-19 pandemic had a huge impact on the business of Herts Ability in 2020/21; a great deal of uncertainty resulted from the three periods of lockdown during which we had to stop offering driving assessments and other services. But we can report that Herts Ability has come through all this a changed but stronger organisation.

Our overall strategy for 2020/21, in the face of a very difficult trading environment, was to minimise the financial effects of the pandemic. In particular, this included liaison with funding bodies. During the first lockdown, Driving Mobility provided all of the Driving Centres with PPE, to enable them to restart with maximum efficiency when allowed to do so in July 2020. Similarly, Driving Mobility provided lateral test kits for Centres during March 2021 to enable an efficient re-start on 12 April 2021. Herts Ability is very grateful to Driving Mobility for this initiative.

As well as having to deal with the pandemic during 2020/21, we also had to find new premises. We were therefore grateful for a grant from DfT which enabled us to move, in October 2020, from the Woodside Centre to the Weltech Business Centre in Welwyn Garden City, from where we have been able to meet our objectives (set out in the Annex to this report). By this time, following much debate by the Trustees, it was felt that the Equipment Centre at Woodside was no longer financially sustainable. To save further on costs, it was therefore decided to take the opportunity to close the Equipment Centre, to coincide with the move of the Driving Centre to the new premises. Unfortunately, it was necessary to make the equipment services staff redundant.

During the lockdown periods, most of the staff at the Herts Ability Driving Centre were part of the Government’s furlough scheme. We were unable to reach our 2020/21 target for driving assessments because of the pandemic and subsequent lockdown restrictions. But the fact that we managed to conduct 344 out of 799 assessments is very much a reflection of the dedication and commitment of the staff.

From 12 April 2021, a full programme of driving assessments restarted, with the Driving Centre’s funding from DfT for 2021/22 remaining the same as for 2020/21. We have also decided to re-instate the seating assessment service.

Plans for the future

We can now look forward to the year ahead and plan for future growth. But there remains the uncertainty surrounding the pandemic. Experience in 2020/21 taught us that things can change quickly and that we have to be flexible in dealing with the challenges we might face. With a pandemic exit plan in place, we have taken the opportunity to map out our future aspirations and plan to work towards these as much as we can during 2021/22.

The focus for growing the Driving Centre will be on undertaking assessments and expanding the services of the driving school. The East London Hub’s opening is now expected to take place in mid/late 2021 - later than planned primarily because of the pandemic. Subject to acquiring additional funding, we are also looking to provide powered wheelchair and mobility scooter assessments, and developing a Transport Hub for Hertfordshire. We will also be looking at the provision of advice, which will help deliver improved mobility and independence for disabled and older people. This strategy (which is set out in more detail on our website) will provide opportunities to extend our reach within the community. But we recognise it can only succeed through a successful marketing and communications strategy.

Organisational structure and decision making

A list of the Trustees who served during the year is on page 1. All of the trustees are volunteers, and spent on average 2/3 days per month attending Board and other meetings, and assisting in various aspects of the Charity’s operations, including fundraising and marketing. None of the Trustees were

Page 3

HERTS ABILITY

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

paid any remuneration or received any other benefits. Some took the opportunity to participate in external (online) training on improving the performance of Boards and good governance, as recommended by the Charity Commission. The Board had the support of three ‘Associate Board Members’ during the year.

The Charity’s financial position and funds raised continued to be monitored by the Board of Trustees against targets, as part of the budgeting and monitoring process. The position for 2020/21 is summarised below. In managing the activities of Herts Ability, the Trustees confirm that they have complied with their duty to have due regard to the Charity Commission's public benefit guidance when exercising any powers or duties to which the guidance is relevant.

Financial Review 2020/21

By March 2020, financial illustrations showed a high underlying deficit, even before the onset of the Covid-19 pandemic. To help us maintain the service during the outbreak, a business continuity plan was produced by the (then) COO and agreed by the Trustees,

The Equipment Centre business case scenarios were revisited in April 2020, and it was concluded that the Centre was not able to become self-sustainable. The uncertain economic climate therefore caused us to take the decision to close the Equipment Centre, and it was agreed that this should coincide with the move of the Driving Centre to new premises at the end of October, to save further on costs.

Covid-19 has meant a great deal of uncertainty for Herts Ability in 2020/21. However, with the financial help that has come through the Government’s furloughing scheme and financial support for the move to the Weltech Centre, by the end of the 2020/21 financial year Herts Ability was in a far better financial position than it had been. The small trading surplus of £9k in 2019/20 had increased to £25.4k in 2020/21, so the charity was clearly moving in the right direction.

Other financial considerations

Reserves

It is the policy of the charity to maintain sufficient free reserves to support any shortfall in funding, replacement of capital items, unforeseen expenditure and deficits. Historically, the charity has taken the view that this should ideally be around 6 months of expenditure but, in 2020/21, reserves were 4.7 months (compared with 3.8 months in 2019/20).

The reserves movement of £103.4k included a defined benefit pension gain of £78k, and £25.4k relating to charitable activities surplus and fixed assets disposal gains.

The Board firmly believes that, although the level of financial reserves and the investments are lower than it regards desirable, with the planning and budgeting that is now in place, the reserves will reach a manageable level in the very near future.

Investment policy

The assets of Herts Ability at 31 March 2021 included tangible fixed assets of £12.0k, current assets to the value of £435.8k and a fixed asset investment of £57.1k (compared with £47.3k in 2019/20), held in COIF Charities investment fund–income units. These investments are readily realisable in normal market conditions, and a buffer to cover any further deficits or outflows.

Page 4

HERTS ABILITY TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2021 aJL ility The Investment policy. applied to the fixed 0$set investments, ha5 historically been based on a policy of low risk with a reasonabl8 C8pStal growth in the medium to longer term and Income. Consideration Is 81$0 given lo the ethical nature of the investment. 08fln•d B•n•ff t P•nslon Soh•m• Commltmont The Charfly p8rticipate5 in Ihe Local Government Penslon Stheme, vthlth 18 a multiple employer scheme, in relation to certain emplo￿&9. The mo81 recent FRS 102 valuation provided by Hyman8 Robertson LLP in Aprtl 2021 shows 8 pensions surplus of £623k compared wllh a surplus of £522k Sn 2019120. Following changes in govemment rules, we Were advised Ihat there would be nothlng more to pay Into tha local government pen8ion Bcheme for the next Iwo yeors. However, the charity has had lo Pay A slr8ln cost of £22.Sk for a member vtho was made redundant during the financlal year. Donatlon* and Fundralslng Ouring 2020121, the Equipment Centre and Driving Centre generated thelr own Incom8. but Ihe ¢harlly 8150 conllnued to partly flnanc8 Its actSvlll8s by donatlons. The88 lolalled £15.5k In 2020121, of whlch £10k was a legacy payment. A8 for our fundre5slng prograwnme, Ihls ljroughl an Inslgn111¢8nl amount of money durbng th8 yoar bec8V8e of the curtai1rn8nt ol events due to th8 Covid-19 pandemic. The Board and CEO undertook the development of 8 n8w lundral8lno 8tralegy In 2020121. Sn the conlext ol Ihe move lo new premiBe8 and the Covld-19 pandemic. The focus wll now be on corporate furKlrai&ng. This report has been prepared in accord8nc8 wSlh th• apecial proviBion8 of part 15 of The Compani98 Act 2016 relating to small ¢omp8nles. Tha roport w88 approved by the Tru8tee8 on 02109121 ond 8lgned on their beh8W by.. Nlg•l Dotchln. Chalr, Board of TN•t••• Pag¢ 5

HERTS ABILITY

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

ANNEX

Constitution

Herts Ability is registered as a company limited by guarantee and was set up, under the previous name of Hertfordshire Action on Disability, by a Memorandum of Association on 13 September 1996. The Memorandum and Articles were revised in September 2018.

Trustees’ Responsibilities

The Trustees (who are also directors of Herts Ability for the purposes of company law) are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of its income and expenditure for that period. In preparing these statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

None of the Trustees had any beneficial interest in any contract to which the Organisation was party during the year.

Method of appointment or election of Trustees

The management of the Charity is the responsibility of the Trustees who are elected for a period of three years and co-opted under the terms of the Articles of Association. At the end of the three-year term, the retiring Trustees have the option to stand for re-election. Recruitment of new Trustees is based on an identified skills gap.

Page 6

HERTS ABILITY

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Board has adopted the Good Governance Code for Voluntary and Community Organisations, and new Trustees are duly inducted into the work of the organisation.

Remuneration Policy

The governing principles of Herts Ability’s remuneration policy are as follows:

In deciding remuneration for Herts Ability’s senior management team, the Charity considered the potential impact of remuneration levels and structures of senior executives on the wider Charity workforce, and took account of the following additional principles:

Staff remuneration for the year ended 31 March 2021 comprised salary and pension contributions. The total remuneration of the senior management team was £140,413

Aims and Objectives of Herts Ability

The principal aim of Herts Ability continues to be the provision of services to meet the needs of disabled people in the County of Hertfordshire and surrounding area that currently includes parts of Bedfordshire, Buckinghamshire, Cambridgeshire and North London.

The objectives of the Charity are concerned with “delivering innovative, affordable and practical services to disabled people”. As the population as a whole ages, more and more people will need help to keep mobile and independent, and the charity has an important role to play here as well.

During 2017-18 it was agreed to update the charity’s objectives, to bring greater clarity to the organisation’s role. These were agreed with the Charity Commission, and duly agreed by the Board of Trustees in May 2018. It has been necessary to revise the objectives in light of the pandemic in 2020/21, and the financial circumstances of Hearts Ability identified at the end of that last reporting year. These are:

a) To relieve and assist people with physical and cognitive impairments, in particular those people with impaired mobility, as well as those that may be vulnerable to impaired mobility by reason of age or infirmity, and also anybody who has been referred to the service; this will include:

Page 7

HERTS ABILITY

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

i. offering fitness to drive assessments for the purposes of maintaining mobility and independent living;

ii. providing any other support that may now or hereafter be deemed by law to be charitable.

b) To preserve and protect the health and wellbeing of drivers with physical and cognitive impairments by providing training to improve standards of driving, and to help and encourage them to achieve greater mobility.

c) To provide advice and signposting to clients, which could provide a springboard to other activities, and to promote and organise co-operation with other authorities and voluntary organisations in the achievement of the above purposes.

In updating our objectives (which have yet to be confirmed with the Charity Commission), the Trustees have given due consideration to the Charity Commission’s published guidance on the operation of the Public Benefit requirement.

Page 8

Independent Examiner's Report to the Members of Herts Ability I r8POrt to the charlty trust8•s on my 8x8rninab.on of the acctjunts of tha Comp8nyfor th8 year 8nde4J 31 March 2021. R••F)gCtlv• R•8POn8Ibllltl￿ 91 TrY•t￿¥ and examln•r As the charrty's trugteg5 ol the Company lanfj also Its directors for the putposes ol c(Knpany lawl you re$pon$it4e for th8 pr8P8ration of the accounts In accordanch with tha requi¥èment8 of thg Companies Act 2006 Ilhe 20Cf A4t'i, H8ving Satisfied myself Ih81 Ihg accounts of the Company a￿ not required lo be audited under Part 16 01 the 2006 Act and gra 8rigi￿e lor independent examinauon, I report in ￿SpeCI ol my exarninallon of your ch8rllrfs accounts as camed out under section 145 of tho Charitles Act 20111'the 2011 Act'l. In c8rrying out my examin8ts.on I Idlowed th? DIre￿lon5 given by the Ch8dty Comrni¥8ion under section 145151 Ibl ol tha 2011 Act. Indw>ond•nt Examln•rf• 8t•t•mBnt Since the Company's grogs Inctsme exceeded £250.000 your ex8mingr rnu¥l be a rnember of a body listed In sèctlon 145 of thè 2011 Act. I conflrm that l am qualillod lo undertake the 8xamln8llon be¢gu$t l 8rn member of the ICAEW, which is one of the li$1od bodio8. I havo compl8t8d my gx?rnlnatlon. I conflmi thBI no mgllw8 have come to my attentlon In conn8dlon Mth the exarninaQ'on gNing me eaus• to balle￿.. 11 accounting recorés werg not kepl In respecl of the Company 08 rnquired by 8ection 386 of lh8 2￿6 Aet,. or 21 the accounts do rK)t ac￿r￿ wlth those rgcords., or 31 the acc￿)Unts do Th)t comply with the 8c£ounling requiraments of ve¢tK)n 396 of the 20C6 ALI other Ih8n any requirement thBt the acLounls g￿e B'tN¢ and fair wew whkh18 not a matt8r Considered 83 part of an Independent examin81ion', or 41 the accounts havo nol been prepared in accordance with tha method$ gnd pdncipleB of the Statement ol Recurnrnended Practlce for accounting and fèporting by ¢h8rilies. I hava no concem3 and have come across ng Qther m8tters in connecllon wlth thè èX8mlnatic￿ ¢0 whlch attenllon Should b8 drawn In Ihis report in order to 8nable e propar understanding of the acujunts lo be reBthgd. QI., Sll¥la Vltlello For and on b•haW of Moor• Klng•ton Smlth LLP Ch8rt8rwl Accountanls 4 Victoria Square St. Albans Hertlordshire AL1 3TF Dat8.. 0610912021 Page 9

HERTS ABILITY

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

2021 2021 2021 2020 2020 2020
Restricted
Funds
£
156,476
231,293
-
-		 General
Designated
£
£
61,846
-
343,910
-
21,419
-
2,359
-
429,534
-
29,034
-
382,746
-
Unrestricted Funds		 Restricted
Total
Funds
Funds
£
£
-
61,846
302,283
646,193
-
21,419
-
2,359
302,283
731,817
-
29,034
309,343
692,089
144,692
3,934
120,015		 -
-
-		 387,769
-
392,867		 429,534
29,034
382,746		 -
-
-
123,949
20,743
9,789		 -
-
-		 392,867
(5,098)
-		 516,816
15,645
9,789		 411,780
17,754
(1,538)		 -
-
-		 309,343
721,123
(7,060)
10,694
-
(1,538)
30,532
(23,000)		 -
-		 (5,098)
23,000		 16,216
4,000		 -
-
7,532
-
-		 -
-
-		 17,902
-
78,000		 20,216
7,089
-		 -
-
-
7,532
190,885		 -
-		 95,902
529,097		 27,305
163,580		 -
-

The statement of financial activities includes all gains and losses recognised in the year and all income and expenditure derived from continuing activities.

Page 10

HERTS ABILITY BALANCE SHEET AT 31 MARCH 2021 2011 2020 NDte Flx•d AM•i T8n9lble fix8d 8&0ts Inv881meni8 11.0 57.070 4.481 47.287 Curfent AM•l• sio¢k8 D8biors Ca8h 8t bank 8nd In h@￿j 305 13.645 421,827 38.897 15.148 174.121 10 Cr•dltor•'. Arnount¥ f•lllnq du• wlthln on• y••i 11 1304,4891 181.9501 Not CuvF•nt 14M•ts Tot•1 A•q•t• l••• Curr•ni Lthbllltl 2M.411 197.982 D•fln•d 8•n•lbt• P•n•l•n $¢h•m• Surylu• 14 623.QOO 522.000 N•tA•••ts 823.416 719,962 Fund• R•strlcleO fund• UnreJtricled lund8 - Gtn8r81 funds D•flned Benèlits Penalon ScTh•m• 12 7,097 12 118,417 82J,000 190.883 522,000 Totil Funds •2).416 719,982 For th¢ fin1￿81 yoar In qU88lbn iho compAnyw•# gnu1￿0 io •x•mptlon und•r ￿et￿n 477ollhe Compan¥ Acl 2006 reWllng lo Bm•ll comp8nl8s. No member8 bave fequlred the comp4ny to obwln an Lttlil of a¢¢4unt• for Ihe ￿1[ In qU•l￿on In •¢¢grd•nc• ih soclion 478 of lh¥ Compwnl•u A¢1 2006. Th8 directurn Ihelf r08pongibilityfof ¢omply4ng ￿1h the r8gulrem•nla of %YMh wpecl lo accounung rewids and lor Ihe pr•paralK)n of llccounls. Th88e Aecounlo hwo been pr•pafed In 4ccordnnc• provl$kins apphcabPe to ¢ompnl¥¥ iublect lo i 8mall companies. reolme Tha fin•M•l ¥t81omenl8 on pAp8 10 to 20 4ppro¥fjd bylhv E¥8cutlwe CommM•• Ind $ned on t•haW N Dotchln ChaitTnan A Pl¢k•n Trustee DAto'. 0210912021 Da￿.. 0210912021 Companynumbvr. 03249335 PagB11

HERTS ABILITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net (Expenditure)/ income for the year
Adjustments for:
Depreciation of tangible fixed assets
(Gains)/losses on investments
(Gains)/losses on fixed assets
Dividends, interest and rents from investments
Decrease/ (increase) in stocks
Decrease/ (increase) in debtors
(Decrease)/ increase in creditors
Defined Benefits Pension Scheme movement
Net cash (used in) / generated by operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Proceeds from the sale of fixed assets
Net cash from investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Analysis of changes in net debt
At start
of year
Cash
174,121
Cash equivalents
47,287
Total
221,408		 Cash flows from operating activities
Net (Expenditure)/ income for the year
Adjustments for:
Depreciation of tangible fixed assets
(Gains)/losses on investments
(Gains)/losses on fixed assets
Dividends, interest and rents from investments
Decrease/ (increase) in stocks
Decrease/ (increase) in debtors
(Decrease)/ increase in creditors
Defined Benefits Pension Scheme movement
Net cash (used in) / generated by operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Proceeds from the sale of fixed assets
Net cash from investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Analysis of changes in net debt
At start
of year
Cash
174,121
Cash equivalents
47,287
Total
221,408		 2021
£
103,434
3,191
(9,789)
-
(1,713)
38,532
1,501
222,539
(101,000)
256,695
1,713
(10,702)
-
(8,989)
247,706
174,121
421,827
Cash
flows
Fair value
movements
247,706
-
-
9,789		 2020
£
380,245
2,218
1,538
(7,089)
(2,359)
3,640
23,909
10,361
(360,000)
52,463
2,359
-
14,389
16,748
69,211
104,910
174,121
At end of
year
421,827
57,076
221,408 247,706
9,789		 478,903

Page 12

HERTS ABILITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting Policies

1.1. Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The company is a public benefit entity for the purposes of FRS102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the Charities SORP FRS 102 (second edition - October 2019) - 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 and the Companies Act 2006 and Charities Act 2011.

1.2. Going Concern

The trustees have assessed whether the use of going concern is appropriate and have considered financial information for the current year to date, projections and possible events, including the impact of Covid-19, or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern and concluded that going concern is an appropriate basis on which to draw up the accounts.

1.3. Incoming resources

All income is recognised when there is entitlement to the funds, the receipt is probable and the amount can be measured reliably. Donations and grants, including grants in respect of major items of refurbishment, improvements or the purchase of fixed assets are recognised in the Statement of Financial Activities when receivable. Where income is received in advance of meeting any performance-related conditions, there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met.

1.4. Resources expended

Expenditure is included in the Statement of Financial Activities on accruals basis. Expenditure is recognised once there is a legal or constructive obligation which can be measured reliably.

1.5. Fund Accounting

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

Designated funds are also unrestricted funds, but have been designated by the trustees for a particular purpose.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The surplus of the defined benefit pension scheme is only available to the charity to offset against the schemes' future obligations and recognised as restricted funds.

1.6. Tangible fixed assets and depreciation

Depreciation of tangible fixed assets is calculated to write off their cost or valuation less any residual value over their estimated useful life.06/09/2021069/2021

Leasehold Improvements - 10% straight line
Motor Vehicles - 25% straight line
Fixtures & Fittings - 20% straight line
Computer Equipment - 33.3% straight line

At the end of each reporting period, the residual values and useful lives of assets are reviewed and adjusted if necessary. In addition, if events or change in circumstances indicate that the carrying value may not be recoverable then the carrying values of tangible fixed assets are reviewed for impairment.

Page 13

HERTS ABILITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

1.7. Fixed Assets Investments

Investments are initially measured at their cost and subsequently measured at their fair value at each reporting date. Fair value is based on their quoted price (inclusive of accrued income) at the balance sheet date without deduction of the estimated future selling costs.

Changes in fair value and gains and losses arising on the disposal of investments are credited or charged to the income or expenditure section of the Statement of Financial Activities as ‘gains or losses on revaluation of investment assets’ and are allocated to the appropriate fund holding or disposing of the relevant investment.

1.8. Stocks

Stocks of goods for resale are stated at the lower of cost and net realisable value.

1.9. Pension costs and other post-retirement benefits

The charity operates a defined benefit pension scheme and two defined contribution pension schemes. Contributions payable are charged to the Statement of Financial Activities in the period to which they relate.

The reporting requirements of FRS102 have been applied.

1.10 Significant judgements and estimates

Preparation of the financial statements requires management to make significant judgements and estimates. No items in these financial statements include significant judgements and estimates that management has made in the process of applying these accounting policies or that have a significant risk of causing material adjustment to the carrying amount of assets and liabilities within the next financial year.

1.11 Financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised costs using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured as the present value of the future receipts discounted at a market rate of interest.

1.12 Financial Liabilities

Basic financial liabilities are initially measured at transaction price

Page 14

HERTS ABILITY NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

2 DONATIONS AND LEGACIES

£
Equipment
Services
Other donations & gifts in kind
5,893
Legacies
-
Coronavirus Job Retention Scheme grant
-
Total
5,893
3 INCOME FROM INVESTMENTS
Income from investments
Interest received
Total
4
Equipment Services
Woodside Equipment Centre shop sales
Woodside Equipment Centre grant income
Equipment Centre Online
Wheelchair Hire
High Back Chair Hire
Other equipment services
Equipment Services Total
Transport Services
Driving Centre
OT Services
Other
Total
INCOME FROM CHARITABLE ACTIVITIES		 £
Equipment
Services
5,893
-
-		 £
Transport
Services
-
-
-		 £
Driving
Centre
20
-
-		 £
Other
15,478
-
156,476		 2021
£
Total
21,391
-
156,476		 2020
£
Total
34,734
27,112
0
5,893 - 20 171,954 177,867 61,846
2021
£
1,671
42		 2020
£
1,637
722
1,713 2,359
2021
£
48,811
-
-
999
25
100		 2020
£
232,026
2,000
366
6,781
832
385
49,935
-
253,015
15
49,776		 242,390
12,992
384,621
1,125
5,065
352,741 646,193

The charity received government grants totalling £212k (2020: £288k) from the Department of Transport to fund the provision and development of its Driving Centre.

0609/202106/2021

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HERTS ABILITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

2021
2020
£
£
5 EXPENDITURE ON CHARITABLE ACTIVITIES
Direct Service Costs
114,083
226,780
Direct Staff Costs
290,893
356,444
Support Costs (see below, including indirect staff costs)
107,906
108,865
Total
512,882
692,089
Support costs are those shared costs which relate to the operation of the organisation and include:
Management
52,684
-
Finance
16,556
37,627
Office Services (including Reception)
6,457
24,028
Human Resources
1,415
3,534
Health & Safety
2,450
2,516
IT
20,447
16,786
Strategic Planning
-
-
Research
-
-
Audit Fees
3,500
1,244
External Consulting
-
-
PR & Marketing
3,681
22,329
Other
716
801
Total
107,906
108,865
6 NET EXPENDITURE
2021
2020
Net (expenditure)/income is stated after charging:
£
£
Depreciation
3,191
2,218
Independent examiner's fees
3,500
1,244
7 STAFF COSTS AND NUMBERS
2021
2020
£
£
Wages and salaries
318,132
382,426
Social security costs
24,205
30,360
Redundancy Cost
29,765
2,228
Pension costs - FRS102 charge
1,000
19,000
Pension costs - Defined contribution scheme
6,108
6,438
379,210
440,452
no.
no.
The average monthly number of staff during the year was as follows:
Employees (full time equivalent)
16
23		 2021
£
114,083
290,893
107,906		 2020
£
226,780
356,444
108,865
512,882 692,089
107,906 108,865
2021
£
3,191
3,500		 2020
£
2,218
1,244
2021
£
318,132
24,205
29,765
1,000
6,108		 2020
£
382,426
30,360
2,228
19,000
6,438
379,210 440,452
no.
16		 no.
23

No employees received employee benefits (excluding employer pension costs) of more than £60,000 in the current or preceding financial period.

Redundancy costs were paid out to personnel as part of a restructuring of the charity in the period.

There are no key personnel, non-executive trustees were used in conjunction with other senior personnel of the organisation

The total employee benefits of the Charity's key management personnel were £140,413 (2020: £145,880)

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HERTS ABILITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

8 TANGIBLE FIXED ASSETS

Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for year
Disposals
At 31 March 2021
Net book value
At 31 March 2021
At 1 April 2020		 Leasehold
Improvements
£
110,797
-
-		 Motor
Vehicles
£
6,001
-
-		 Furniture and
Equipment
£
92,282
10,702
(9,853)		 Total
£
209,080
10,702
(9,853)
110,797 6,001 93,131 209,929
110,797
-
-		 2,500
1,500
-		 91,302
1,691
(9,853)		 204,599
3,191
(9,853)
110,797 4,000 83,140 197,937
- 2,001 9,991 11,992
- 3,501 980 4,481

9 FIXED ASSET INVESTMENTS

Cost
At 1 April 2020
Disposals
At 31 March 2021
Revaluation
At 1 April 2020
Revaluation for the year
Disposals
At 31 March 2021
Net book value
At 31 March 2021
At 1 April 2020		 Investments
£
22,561
-
22,561
24,726
9,789
-
34,515
57,076
47,287

All of the Fixed Asset Investments are held in the UK. The investments are held in the COIF Charities Investment Fund, managed by CCLA Fund Managers Limited.

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HERTS ABILITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

10 DEBTORS
Due within one year
Trade Debtors
Prepayments and accrued income
Other debtors
11 CREDITORS
Amounts falling due within one year
Bank loans
Trade creditors
Accruals and deferred income
Social security and other taxes
Other creditors		 2021
£
420
11,558
1,667		 2020
£
5,032
9,447
667
13,645 15,146
2021
£
50,000
23,206
225,846
3,985
1,452		 2020
£
-
32,660
33,149
9,540
6,601
304,489 81,950

Bank loan relates to Government Bounce Back loan, which is interest free for the period of 12 months.

Deferred income brought forward
Deferred income released
Deferred income charged
Deferred income carried forward		 -
-
222,346		 10,080
(10,080)
-
222,346 -

Deferred income relates to grants received in advance and includes £85,000 relating to a grant received from Department For Transport. It is unlikely that the charity will be able to fulfil the grant criteria and it has been estimated that £85,000 will be fulfilled at the later date.

12 STATEMENT OF FUNDS

Brought
Incoming
Forward
Resources
£
£
UNRESTRICTED FUNDS
General funds
190,885
144,692
Unrestricted funds total
190,885
144,692
RESTRICTED FUNDS
Relocation
-
18,903
Transport and Driving Centre
7,097
368,866
Restricted funds total
7,097
387,769
Total of Funds before DBPS
197,982
532,461
Defined Benefits Pension
Scheme surplus
522,000
-
Total of Funds
719,982
532,461
ANALYSIS OF NET ASSETS BETWEEN FUNDS
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Sub total
Defined Benefits Pension Scheme surplus - see note 14
Total		 Brought
Forward
£
190,885		 Incoming
Resources
£
144,692		 (Resources
Expended)
£
(123,949)		 Gains/
(Losses)
£
9,789		 Reallocation of
movement in
pension fund
£
(23,000)		 Transfers
£
-		 Carried
Forward
2020
£
198,417
190,885 144,692 (123,949) 9,789 (23,000) - 198,417
-
7,097		 18,903
368,866		 (18,903)
(373,964)		 -
-		 -
-		 -
-		 -
1,999
7,097 387,769 (392,867) - - - 1,999
197,982
522,000		 532,461
-		 (516,816)
-		 9,789
78,000		 (23,000)
23,000		 -
-		 200,416
623,000
719,982 532,461 (516,816) 87,789 - - 823,416
Unrestricted
Funds
2020
£
11,992
57,076
433,838
(304,489)		 Designated
Funds
2020
£
-
-
-
-		 Restricted
Funds
2020
£
-
-
1,999
-		 Total
Funds
2021
£
11,992
57,076
435,837
(304,489)		 Total
2020
£
4,481
47,287
228,164
(81,950)
198,417
-		 -
-		 1,999
623,000		 200,416
623,000		 197,982
522,000
198,417 - 624,999 823,416 719,982

13 ANALYSIS OF NET ASSETS BETWEEN FUNDS

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HERTS ABILITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

14 PENSION COMMITMENTS

The Charity is party to a defined benefit scheme in relation to some employees, operates a Stakeholder Pension Scheme for certain employees and participates in the people’s pension for relevant employees. From 1 April 2003 the Charity closed the Defined Benefit Scheme to new entrants. The Charity's contribution to the Stakeholder Pension Scheme is 4% of the employee pensionable salary on a matching basis.

Regarding the defined benefit scheme, the Charity participates in a Local Government Pension Scheme, which is a multiple employer scheme, in relation to certain employees. The most recent FRS 102 valuation provided by Hymans Robertson LLP in April 2021 shows a pensions surplus of £623k compared with a surplus of £522k in 2019/20. The Charity continues to fund the pension commitment by payment of contributions as determined by the actuaries, with the contribution rate during the year at 30.4% of relevant pay.

Amounts recognised in the balance sheet
Fair value of plan assets
Present value of funded liabilities
Amounts recognised in the SOFA
Net Service cost
Net Interest
Employer contributions paid
Actuarial gain/(loss) of Defined Benefit Schemes
Fair Value of Plan Assets
Opening Fair value of Plan Assets
Contributions paid
Benefits paid
Return on assets
Actuarial gains/(losses)
Closing Fair value of Plan Assets
Defined Benefit Obligation
Opening defined benefit obligation
Service cost
Interest
Contributions
Actuarial losses/(gains)
Benefits paid
Closing defined benefit obligation		 2021
2020
£
£
1,722,000
1,435,000
(1,099,000)
(913,000)
623,000
522,000
11,000
(23,000)
12,000
4,000
22,000
15,000
78,000
364,000
1,435,000
1,475,000
24,000
18,000
(33,000)
(34,000)
33,000
35,000
263,000
(59,000)
1,722,000
1,435,000
913,000
1,313,000
11,000
23,000
21,000
31,000
2,000
3,000
185,000
(423,000)
(33,000)
(34,000)
1,099,000
913,000

Pension costs are allocated based on the staff costs of the employees engaged in the relevant activities.

15 RELATED PARTIES

During the year £nil (2020: £172.60) travel expenses were reimbursed to trustees. There are otherwise no related party transactions that require disclosure.

16 SHARE CAPITAL

The Charity is a company limited by guarantee.

Page 19

HERTS ABILITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (CONTINUED)

17 OPERATING LEASES

The total future minimum payments under non cancellable operating leases for the following periods are:

2021 2020
Not later than one year - 1,010
Later than one year but not later than five years - -
- 1,010

Page 20