## Focus Birmingham
## ANNUAL REPORT AND FINANCIAL STATEMENTS
for the year ended
31 March 2022
Charity No. 1065745 Company Registration No. 3353444 Registered in England and Wales
## **CONTENTS PAGE**
||Page|
|---|---|
|Trustees’ Report and Review of the Year|1-13|
|Statement of Trustees’ Responsibilities|14|
|Independent Auditor’s Report|15-17|
|Statement of Financial Activities|18|
|Balance Sheet|19|
|Statement of Cash Flows|20|
|Accounting Policies|21-24|
|Notes to the Financial Statements|25-37|
## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
The Trustees, who are also Directors of the Charitable Company, present their annual report and audited financial statements of the company for the year ended 31 March 2022. As a Small Charitable Company, the Trustees have taken advantage of the exemption of not providing a Strategic Report. The Trustees have also taken advantage of the exemption of not preparing group accounts.
## **TRUSTEES**
The following Trustees have served since 1 April 2021:
Mr C Gascoigne Ms V Griffiths Dr R Hindle Mrs J McDougall Ms M Tsaloumas (resigned 4 November 2021) Mr J Montgomery (Chairman) Ms S Markham (resigned 28 February 2022) Miss Z Allen-Robinson Mr J Feehan Mr M Jandu Mr R Sivaraj (appointed 26 May 2022) Ms D Wragg (appointed 18 August 2022) Ms V Barker (appointed 18 August 2022)
## **REGISTERED OFFICE**
Focus Birmingham 48-62 Woodville Road Harborne Birmingham B17 9AT
## **ABOUT FOCUS BIRMINGHAM**
Focus Birmingham is a registered charity and the biggest provider of care and support services to those with a visual impairment in Birmingham. There are 28,600 people in Birmingham living with sight loss and a predicted increase of 15% by 2030.
The charity was founded in 1998, previously operating under the auspices of BRIB (Birmingham Royal Institution for the Blind).
The organisation employed 130 staff on permanent or fixed term contracts at 31 March 2022 and provided support to blind, visually impaired and those with profound disabilities on over 35,000 occasions in 202122.
The charity’s purpose is to provide high quality, innovative services to blind, visually impaired and those with profound disabilities across the West Midlands. It is rapidly developing its reputation as a centre of excellence, developing its services and working in partnership with others to develop pathways of care and support that achieve the best possible outcomes for people.
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## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **ABOUT FOCUS BIRMINGHAM (CONTINUED)**
Focus Birmingham aims to fulfil this objective by:
- Providing expert care, support, advice and information to people affected by sight loss or profound disability in a number of specialist fields including optometry, rehabilitation, community support and direct care.
- Assisting people in a holistic way to enhance their lives through multi-disciplinary approaches and by involving and supporting their families and carers.
- Raising awareness of the issues people with visual impairment or profound disabilities may face and campaigning for change when appropriate.
Focus Birmingham has a formal relationship with two other organisations:
- Birmingham Royal Institution for the Blind (“BRIB”). Three Focus Birmingham Trustees are entitled to be members of the BRIB Board.
- Three Local Charities (“TLC”) Lottery. Focus Birmingham owns one third of the Lottery alongside Acorns Children’s Hospice and The Hospice Charity Partnership (formerly St Mary’s Hospice). Focus has the right to appoint two members of the TLC Board, including a trustee.
## **GOVERNANCE ARRANGEMENTS, BOARD OF TRUSTEES, SENIOR MANAGEMENT TEAM**
Focus Birmingham is a registered charity (No.1065745) and a company limited by guarantee registered in England and Wales (No. 3353444) with its own constitution - the ‘Memorandum and Articles of Association’ as amended in July 2016 and updated and further amended in July 2021. It is entered in the Central Register of Charities as Focus Birmingham. The company is referred to as such, or as the “charity”, “the charitable company” or “Focus”.
The Trustees of Focus Birmingham are responsible for overseeing the management and administration of the charity and have ultimate responsibility for the charity’s activities. The Trustees are also the Directors of the company.
Trustees join as co-opted members at the invitation of the Board of Trustees. Induction and training is available for all Trustees.
The role of the Board of Trustees is to:
- Ensure that Focus Birmingham acts in accordance with its Memorandum and Articles, charity law, company law, and other relevant legislation or regulations.
- Ensure that Focus Birmingham applies its resources exclusively in pursuance of its objects (“the relief of blind and partially sighted people and those with other disabilities and in particular the promotion of and assistance with services for and with blind and partially sighted people and disabled people to enhance their quality of life”).
- Provide strategic direction to the organisation, setting overall policy, setting targets and evaluating performance against agreed targets.
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## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **GOVERNANCE ARRANGEMENTS, BOARD OF TRUSTEES, SENIOR MANAGEMENT TEAM (CONTINUED)**
- Safeguard the good name and values of the charity.
- Protect and manage the property of the charity and to ensure the proper investment of Focus Birmingham’s funds.
- Oversee the financial affairs of the charity.
The Board are fully aware of the revised Charity Governance Code which was issued in July 2017, and are taking steps to ensure compliance with its requirements where considered appropriate.
During the year the full Board of Trustees met quarterly and all meetings were quorate. The Board also operates three subcommittees, which also meet quarterly, with current membership being:
**Finance and Audit Contracts, Performance and Workforce** Dr R Hindle Mr J Montgomery Mr C Gascoigne Ms V Griffiths Ms J McDougall Mr M Jandu Ms V Barker Mr C Gascoigne Mr J Montgomery Ms D Wragg Ms V Barker
**Business Development** Mrs J McDougall Mr J Feehan Ms Z Allen-Robinson Mr R Sivaraj
All Committees have a nominated Chair, who is the first named Trustee in the above lists; terms of reference for each Committee are in place and were reviewed and updated during the 2019-20 financial year.
Indemnity insurance for Trustees and Officers, providing £1m (2021: £1m) of cover has been purchased at a cost of £2,800 including IPT (2021: £2,182).
The day-to-day management of the charity is delegated to the charity’s paid staff, and in particular to the Senior Management Team, whose members during the year were:
- Chief Executive / Acting Chief Executive – K Griffiths / C Burke
- Director of Services / Deputy Chief Executive – C Burke
- Maternity cover for Director of Services – B Jones
Financial Controller – L Smith Head of Workforce and HR – M Lawrence
The key management remuneration policy is set by the Finance & Audit Committee and is reviewed on an annual basis as part of the budget-setting process.
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## Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **FOCUS BIRMINGHAM SERVICES**
During the year 2021/22, Focus Birmingham provided a wide range of services including:
- **Sight Loss Support services:** Delivering a comprehensive range of support, counselling and clinical services for people with a visual impairment. These services include the provision of low vision assessments, emotional support, counselling, befriending services and also run a comprehensive programme of community and social activities. Our aim is to deliver an extensive, holistic joined up approach to meet the individual’s needs and improve their way of life.
- **Complex Needs Service:** Provides personalised support through our day service for people with profound and multiple complex conditions. The focus is on providing expert care, often on a oneto-one basis and an engaging activities programme to improve their independence and wellbeing. The service also operates its own transport fleet and transports over 60 clients per day to and from the centre.
- **Supported living:** Provides personalised support through our specialist 24/7 supported living scheme for visually impaired people and those with complex conditions. The aim is to provide a safe, caring environment encouraging and enabling them to live independent, happy and healthy lives.
The beneficial impact of the wide range of vital services that Focus delivers can be demonstrated by the case studies of clients whom Focus supports.
## **Case Study: Sight Loss Support – ‘The sailing sessions have helped with my confidence'**
SM is just one of many sight impaired individuals taking part in a wide range of Focus Birmingham organised activities. SM, a former nurse, was diagnosed with a progressive disorder, Fuchs Corneal Dystrophy, in 2008. SM has been joining in Focus Birmingham hosted sailing classes with Midlands Sailing Club and Sail Birmingham for around 7 months.
Sailing is now one of SM’s favourite activities. She says, “My initial reaction was that I didn’t know classes like these existed for people with visual impairment. Focus Birmingham co-host, and promote many activities, like sailing, boxing and yoga to the visually impaired community. I did feel quite anxious when I first went out on the water to sail, but fast-forward a few months and I absolutely love it. It’s just an amazing feeling knowing someone like me can take part in these adrenaline-rush activities.”
“The sailing sessions have helped with my confidence and made me see that even though I am visually impaired and have to do things differently, I can still enjoy these sorts of activities. It is a lot of fun and I thoroughly enjoy the sessions. I look forward to trying out the boxing and tennis.”
## **Case Study: Day Services – A “vast amount of on-going activities and specialised support”**
J was a pupil at Victoria School; he started in the nursery and attended right through to the Victoria specialist college and started attending the Focus Birmingham Day Service in 2015 at the age of 28.
His mother S says “We chose Focus Birmingham because of the vast amount of on-going activities and specialised support that is on offer for J’s complex needs. For example, speech and language, physiotherapy and in-house transport, to name a few.”
J has always looked forward to his days at Focus and originally attended 5-days per week. More recently he has had to reduce to 3-days per week due to him receiving dialysis treatment. His mum explained “J has lost his kidney transplant over the last year, Focus have been extremely
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## Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **FOCUS BIRMINGHAM SERVICES (CONTINUED)**
supportive with J and myself. In particular they have helped J understand what’s happening to his failed kidney through social stories and what treatments to expect in the future i.e. dialysis and eventually a new kidney.”
She continued, “J loves attending Focus Birmingham and everything they have on offer. He particularly enjoys the online games they do, especially _Who Wants to be a Millionaire_ . He also enjoys baking, arts & crafts, sing-signing and outdoor visits. J particularly likes going to the pub for lunch.”
## **Case Study: Supported Living – A life changing experience**
For M, moving into Focus Birmingham’s supported living facility, Millward Place, has been a life changing experience.
M, originally from the Marston Green area, was born in 1967, was one of four children and had a happy childhood. He moved into a flat in Stechford in May 2004 and was under the care of a social worker and support worker until 2011 when he was discharged from the service.
M coped until 2019 when he was referred to Focus with cataracts and was supported by a support coordinator from the Focus Sight Loss team. M couldn’t see out of either eye due to the cataracts, he was also deaf in both ears and his teeth were very decayed.
It was also clear that he was becoming a safeguarding issue with evidence of financial abuse from a neighbour.
M moved into Millward Place and the team supported him to hospital for cataract treatment, arranged the necessary tests and supply of hearing aids and also sorted his teeth!
M now really enjoys mixing with his fellow residents, pool and snooker, movies and music and loves shopping!
## **OBJECTIVES, ACTIVITIES AND ACHIEVEMENTS**
Our primary purpose is to continue supporting our service users during these difficult times by providing safe, face-to-face services whilst adapting and developing content to utilise on a variety of platforms that will appeal to wider audience.
Whilst our primary purpose is the continuing support of our service users, the methodology changed significantly during the year as we moved from a restrictive, online based world, gradually transitioning back to more normal operations.
In setting our objectives and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit.
Our mission is to be… “ **a leading charity providing high quality, innovative services to blind, visually impaired and disabled people in Birmingham and the wider area. We are a centre of excellence, working in partnership with others to develop pathways of care and support that achieve the best possible outcomes for people.** ’
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## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **OBJECTIVES, ACTIVITIES AND ACHIEVEMENTS (CONTINUED)**
The strategic objectives agreed by the Board to direct the priorities of the organisation over the next three years remain valid:
**Objective One:** To offer **high quality services** and support to people, based on their needs and planned in partnership with individuals, their families, and carers.
**Objective Two:** To work with colleagues and partners to **improve access to services** : making sure that our service users reflect the communities that we support and extending our reach to meet growing populations of need.
**Objective Three:** To build and maintain an organisation that reflects our values and enables flexibility for growth and change within a **financially sustainable model** .
Notwithstanding the substantial interruptions to the operations of the charity, significant development of services and facilities was achieved and numerous improvements to services and service delivery have been delivered in all areas of the charity. These include:
- Transition of all services back to face-to-face delivery;
- Continual development of digital content for on-line platforms;
- Further phases of refurbishment programme completed;
- New catering provision integrated into daily services;
- ParentPay system completely embedded;
- Automated, telephone befriending platform fully implemented and reaching more people suffering from social isolation;
- Commercial quality e-learning platform embedded;
- In-house e-learning system created to provide high quality training to all staff and volunteers;
- Further phases of safety flooring programme completed;
- 2nd phase of the plant upgrade programme completed;
- Introduction of a digital collection box and management system;
- Further initiatives completed in gaining Cyber Essentials certification;
- The implementation of a cloud-based IP-based telephony system;
- Orders placed for the acquisition of four new buses;
- Introduction of mental health first aiders;
- Creation of a subsidiary company to develop commercial opportunities.
## **FUTURE PLANS**
The recent pandemic and subsequent implications have resulted in greater demand and an increased number of people with multiple and complex disabilities and visual impairments requiring our services and support for them to live independent lives.
The Senior Management Team is committed to its strategy to expand services and increase access that will have a positive impact for people affected by sight loss and other complex disabilities. This will include:
- An ongoing review of all of our resources to ensure that they are fit for purpose and cost effective, including the front line delivery facilities, transport fleet and equipment;
- Developing capacity to meet the growing demand for our specialist services;
- Continuing development of online content for delivery via our newly created digital channels;
- Continuing the extensive facilities refurbishment programme;
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## Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **FUTURE PLANS (CONTINUED)**
- Completion of the final phase of the safety flooring programme;
- Installation of controlled, automatic doors to enhance security within the site;
- Refurbishment of the client dining facilities to enhance the client dining experience;
- Continuing the significant plant upgrade programme, including new water tanks and boilers;
- Complete the multi-factor authentication initiative to gain our Cyber Essentials certification;
- Fully embed the cloud-based IP- based telephony system introduced;
- Conduct a comprehensive staff survey and develop action plans to address any concerns identified;
- Developing our Learning & Development platform, including authoring courses for commercial exploitation;
- The broadening of our Learning & Development content library to ensure we upskill staff and equip them with the expertise to care for our clients;
- Further development of our Community Services programmes to achieve the prevention outcomes agenda set by commissioners;
- Expansion of our wellbeing offer with specific new posts;
- Building on our partnership working with our other local sight loss support charities championing the creation of a Birmingham Sight Loss Support Partnership;
- Further development of the Group Counselling activities;
- Further development and integration of our website to support our fundraising initiatives and improve engagement with all stakeholders;
- Develop our Equality, Diversity and Inclusivity strategy to ensure we demonstrate a fully inclusive culture and recognise the value and contributions of a diverse workforce;
- Develop the work of the Mental Health champions to ensure our staff are fully supported with any mental health concerns;
- Further develop our fundraising capability with new initiatives and roles to improve unrestricted income;
- Develop commercial activities to augment unrestricted income streams, including the expansion of the services offered by Focus Care and Support Limited, Focus Birmingham’s subsidiary undertaking.
## **CONTRIBUTION OF VOLUNTEERS**
Volunteers are a fundamental element of the delivery of our services and support we offer to vulnerable people. As the aftermath of the pandemic recedes, we are welcoming back many of our dedicated volunteers. We are fortunate to have more than 60 active volunteers who support various activities, events and fulfil a myriad of other support functions. With the new befriending platform we are actively recruiting and training a greater number of volunteers and hope to grow our volunteer cohort significantly in the future.
In addition to these volunteers, we provide support to student placement and work experience schemes throughout the year in all service areas and are working to create opportunities for people to work with us to develop skills to support people with visual impairment and other disabilities.
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## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **GENDER PAY REPORTING**
Focus Birmingham employs less than 250 individuals and consequently does not have to mandatorily comply with the reporting of the Gender Pay gap. However, the Board are committed to equality in every area of the charity, including gender pay equality and can report that the median gender pay gap in favour of females at 31 March 2022 was 1.1% and the mean gender pay gap in favour of males at 31 March 2022 was 5.9%, which compares favourably with published information from other organisations in our sector.
## **FUNDRAISING CODE**
Focus Birmingham is registered with the Fundraising Regulator, and follows the recommendations of the Fundraising Code in all material respects. During the financial year 2021/22, we did not outsource our Trusts and Grants fundraising activities to a 3[rd] party. No formal complaints regarding fundraising were received during the year.
## **RISK MANAGEMENT**
The Trustees have considered risks and risk management throughout the year as part of the business of Board and Committee meetings. The principal area for attention remains the potential reduction of external funding from Local Authorities and the NHS. The Trustees and Board conducted a comprehensive review of key areas of risk during 2021/22 and developed a new regime following Charity Commission guidance, although the following fundamental areas of risk to the charity remain constant:
1. **Risk:** Vulnerability due to reliance on external funding associated with local authority and NHS contracts.
**Mitigation** : Focus Day Centre is positioned as a specialist provider for people who are entitled to social care funding under the Care Act 2014. The service is increasingly providing placements funded by the NHS (under Continuing Healthcare Criteria) or through individual and personal budgets reducing the likelihood and impact of reductions in funding for individuals.
2. **Risk** : Focus holds inadequate reserves to support service delivery when contracts are reduced or withdrawn.
**Mitigation** : Reserves policy is actively reviewed against the risk profile of the organisation’s business.
3. **Risk** : Changes to national or local procurement policies relating to health and social care services may cause either reduced income or mandatory increased costs of delivery.
**Mitigation** : The Trustees and Senior Managers are well informed on existing and proposed arrangements for commissioning and funding health, care and support services and have built good working relationships with commissioners. Focus continues to deliver a respected and valued service to local authority and NHS commissioners.
4. **Risk** : The charity fails to meet its regulatory or contractual obligations (as set out by the Care Quality Commission, the NHS, the General Optical Council and other regulatory bodies) resulting in loss of income and/or reputation damage.
**Mitigation** : The Senior Management Team are suitably qualified and experienced to ensure that services are delivered effectively and fulfil all such obligations. Compliance and performance are monitored monthly by the Senior Leadership Team and on a quarterly basis by Trustees through the Contracting, Performance and Workforce Committee.
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## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **IMPACT OF COVID 19**
Focus Birmingham delivers a variety of services in support of local people affected by sight loss and other complex conditions and its income is therefore diverse, although the majority still emanates either directly or indirectly from statutory bodies. Whilst Focus has been affected by the pandemic, due to its income profile, the rapid realignment of its services to a predominately online delivery model, coupled with the effective management of its cost base, the situation yielded a relatively negligible impact on the organisation as a whole, although clearly it has affected our client base significantly.
Despite the different operating environment, we are still experiencing Covid-related issues and therefore the Trustees have reviewed income and expenditure and cash flow forecasts to ensure that the organisation can continue as a going concern. These forecasts demonstrate that the charity is well placed to weather a longer term impact and the Trustees are also confident that any impact would be able to be mitigated by the Senior Management Team. The accounts have therefore been prepared on the going concern basis.
## **IMPACT OF THE RUSSIAN INVASION OF UKRAINE**
In December 2021 Focus Birmingham fixed its gas and electricity prices for two years and therefore has not been impacted unduly by increases in these energy costs, although the fixed price obtained was higher than the previous contracted amount.
Fuel costs for the transport fleet have been more affected by the global price increases but every effort is made to re-fuel at the cheapest outlets. To this end, additional fuel cards have been obtained to increase the choice of fuel outlets which can be used. However, the current cost of diesel is running at approximately 20% higher than in December 2021. The Senior Management Team are looking at the transport fleet to determine the most efficient routes and use of vehicles to mitigate the costs.
## **PRINCIPAL FUNDING SOURCES**
The principal funding sources during the year have been as follows:
- Specific funding contracts with Birmingham City Council Adults and Communities Department (including ‘spot purchases’ for placements in Day Services and grant aid for the Community Services);
- Specific contracts with NHS bodies (e.g. Clinical Commissioning Groups and NHS England);
- Grants from Charitable Trusts;
- Donations, bequests and money raised through fundraising activities;
- Grants from the Birmingham Royal Institution for the Blind (BRIB);
- Income from Partnerships such as ‘TLC Lottery’;
- Income from service users with Individual Budgets for social care (awarded by their local authority).
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## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **FINANCIAL REVIEW**
Income for the year decreased by £280,494 to £3,234,693 while expenditure increased by £328,876 to £3,265,385. As a result, a deficit on business activities of £30,692 has been made compared to a surplus last year of £578,678.
More detail regarding these headline areas is noted below:
## **Income**
Income from charitable activities increased from £2,763,075 to £2,767,071, an increase of £3,996. This was the net effect of a reduction in multiple disciplinary revenue from service user vacancies which could not be filled during the pandemic closure, together with lost transport revenue, net of additional grant revenue (including the Barclays befriending project).
Income from donations and legacies fell by £193,222. Legacies were £40,058 higher in 2021/22 but there were grants of £231,591 for specific capital projects received in 2020/21 compared with £17,500 in 2021/22.
Our lottery joint venture with The Hospice Charity Partnership and Acorns Children’s Hospice, provided distributions to the charity amounting to £57,217, a decrease of £23,543 compared to last year.
## **Expenditure**
Overall expenditure increased by £328,876 compared to last year. £193,703 of this increase was on staff costs (including agency and sessionals) – approximately £43,000 due to a 2% pay rise with the remainder being a result of the service re-opening during 2021/22 and increased staff requirements compared to the previous year.
Transport fleet costs also increased compared to 2020/21 with the re-opening of the service (an increase of £49,131) and utility bills increased by £46,860. Sight Loss costs also increased by £12,957 with the relaxation of restrictions. However there were savings of £32,430 on catering and cleaning by changing supplier and bringing them in-house.
During the year the company formed a new subsidiary, Focus Care and Support Limited, in order to better develop commercial opportunities and improve contract management. This company is registered for VAT. Focus Birmingham is part of a group registration and therefore benefitted from recovering a proportion of the VAT on its costs in 2021/22.
Premises costs remain a significant overhead for the charity and the Trustees once again acknowledge the continuing generous support from Birmingham Royal Institution for the Blind in providing a grant of £164,690 to offset the rental of the charity’s main premises.
## **Reserves**
Total Charity Funds at the year-end amounted to £2,189,916 (2021: £2,220,608). This was made up of £432,289 restricted funds of which £294,473 of grants and donations has been received specifically to fund the purchase of fixed assets, whilst the remaining £137,816 has been received for use in specified projects, such as use by community groups.
Total Charity Funds also includes £677,378 of designated funds which represents the net book value of the tangible fixed assets (other than those represented by the restricted funds). The remaining £1,080,249 are general funds which can be used for the benefit of the charity.
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## Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **FINANCIAL REVIEW (CONTINUED)**
## **Reserves Policy**
The Trustees always give careful consideration to the charity’s reserves policy, and as a result, the policy was amended in 2021 to take account of the risks the charity is facing within the provision of its core services. The Trustees additionally modelled a number of worst-case scenarios based on the Covid situation and possible outcomes and concluded that reserves should be increased to allow for potential risks and expanded services.
The Trustees have considered the risks faced by each of the charity’s core services that could potentially result in Focus not being able to continue to offer those services either partially or wholly in the future. In particular, the Trustees have considered, for each of its core services, the likelihood of funding contracts, grants or funding from service users being withdrawn or reduced.
Based on this review, the Trustees are of the view that two of the charity’s activities, namely Sight Loss Support Service and Complex Needs Service, could potentially face risks to their continued funding. Consequently, in order that the charity can continue to provide these services to its users whilst alternative funding is secured.
In respect of the Sight Loss Support Service, an amount equal to 3 months’ staff costs and an appropriate allocation of overhead costs totalling £185k would be an adequate level of reserves and including an additional £15k against unexpected costs would raise the level of free cash reserves required to cover these costs to £200k.
In respect of the Complex Needs Service, reserves required to fund any shortfall in income have been based on a reduction of 25% attendance for 3 months. The associated costs (staff costs and an appropriate allocation of overhead costs) which would have to be covered whilst new client arrangements are put in place amount to £130k. Trustees consider it prudent to allow an additional £70k to cover unexpected costs or a delay in filling these spaces bringing the reserves required to be maintained for the Complex Needs Service to £200k.
The total reserves required to be maintained for the charity therefore amount to £400k and it is the Trustees opinion that free cash reserves equivalent to this level of reserves should be available at all times. At 31 March 2022 general reserves of £1,080,249 and cash balances of £1,235,602 exceed these minimum requirements.
The Trustees will regularly review the risks faced by the charity and, as such, the level of reserves held by the charity will be subject to regular scrutiny.
## **Investment Policy**
The Trustees continue to consider the return on all cash deposits, and led by the Treasurer, look to continue to effectively manage the charity’s investments during this period of low interest rates for deposits. Consequently, deposits are restricted to UK “high street” banks and short-term time deposits of less than 1 year in duration have been utilised in order to improve the charity’s return on its cash surplus to short-term operational requirements.
## **Events Since the Balance Sheet Date**
There have been no events since the balance sheet date which materially affect the position of the company.
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## Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **ADMINISTRATIVE DETAILS OF THE CHARITY’S ADVISERS**
## **AUDITOR**
Mazars LLP 2 Chamberlain Square Birmingham B3 3AX
## **PENSIONS**
Ascot Lloyd Waterloo Court 31 Waterloo Road Wolverhampton WV1 4DJ
## **BANKERS**
## **SOLICITORS**
Lloyds Bank Plc 114 Colmore Row Birmingham B3 3BD
## **INSURANCE**
Veale, Wasbrough, Vizards LLP 2[nd] Floor 3 Brindley Place Birmingham B1 2JB
Hettle Andrews Eleven Brindley Place 2 Brunswick Square Birmingham B1 2LP
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## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2022
## **STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITOR**
The Trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the Trustees have confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.
## **SMALL COMPANY PROVISIONS**
The Trustees’ report and review of the year have been prepared in accordance with the provisions applicable to companies entitled to the small companies exemptions provided by Part 15 Sections 399(2A) and 414B(b) of the Companies Act 2006.
On behalf of the Board
J Montgomery - Chairman
3 November 2022
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## Focus Birmingham
## STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trustees (who are also Directors of Focus Birmingham 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 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 the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to:
- a select suitable accounting policies and then apply them consistently;
- b observe the methods and principles in the Charities SORP;
- c make judgements and estimates that are reasonable and prudent;
- d state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the company’s charitable transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the requirements of 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.
In so far as the Trustees are aware:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant financial information and to establish that the auditor is aware of that information.
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## Focus Birmingham INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FOCUS BIRMINGHAM
## **Opinion**
We have audited the financial statements of Focus Birmingham (the ‘charity’) for the year ended 31st March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charity’s affairs as at 31st March 2022 and of its 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 and the parent charity 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 group’s and the parent charity’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 other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. 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.
In connection with our audit of the financial statements, 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 course of 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
_Page 15_
Focus Birmingham INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FOCUS BIRMINGHAM
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ Report which includes the Directors’ 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 Trustees’ Report has 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 charity and its environment obtained in the course of the audit, we have not identified material misstatements in 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 returns adequate for our audit have not been received from branches not visited by us; 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.
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the Trustees’ Report and from the requirement to prepare a Strategic Report.
## **Responsibilities of Trustees**
As explained more fully in the Trustees’ responsibilities statement set out on page 14, 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 charity’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 charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
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 the financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to employment regulation, fraud and non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.
_Page 16_
## Focus Birmingham INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FOCUS BIRMINGHAM
We evaluated the Trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, inappropriately shifting the timing and basis of revenue recognition, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to fund accounting, and significant one-off or unusual transactions.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
- Discussing with the Trustees and management their policies and procedures regarding compliance with laws and regulations;
- Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
- Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.
Our audit procedures in relation to fraud included but were not limited to:
- Making enquiries of the Trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
- Gaining an understanding of the internal controls established to mitigate risks related to fraud;
- Discussing amongst the engagement team the risks of fraud; and
- Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of the audit report**
This report is made solely to the charity’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 charity’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 charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.
David Hoose (Nov 11, 2022 07:23 GMT)
David Hoose (Senior Statutory Auditor)
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
First Floor Two Chamberlain Square Birmingham B3 3AX
Nov 11, 2022
_Page 17_
## Focus Birmingham
## STATEMENT OF FINANCIAL ACTIVITIES
(Incorporating an Income and Expenditure Account) for the year ended 31 March 2022
|**INCOME FROM:**
_Notes_
Donations and legacies
1
Other trading activities:
- fundraising
Investments
2
**Charitable activities:**
- multiple disability
- low vision
- community
**Other income:**
-Profit on sale of fixed assets
-Coronavirus Job Retention Scheme and
Other Grants
-Lease premium
**TOTAL INCOME**
**EXPENDITURE ON:**
**Raising funds:**
-costs of generating voluntary income
3
**Charitable activities:**
- multiple disability
3
- low vision
3
- community
3
- information and advocacy
3
**TOTAL EXPENDITURE**
3
**NET (EXPENDITURE) / INCOME**
**BEING NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
**FUND BALANCES AT 1 APRIL 2021**
**FUND BALANCES AT 31**
**MARCH 2022**
12/13|Unrestricted
funds
2022
£
322,197
1,805
57,352
2,262,928
204,128
300,015
6,100
35,273
14,583
3,204,381
103,678
2,536,260
244,907
317,967
13,385
3,112,519
3,216,197
(11,816)
1,769,443
1,757,627|Restricted
funds
2022
£
30,312
-
-
-
-
-
-
-
-
30,312
-
41,233
7,497
458
-
49,188
49,188
(18,876)
451,165
432,289||Total
funds
2022
£
Total
funds
2021
£
352,509
545,731
1,805
1,293
57,352
82,007
2,262,928
2,272,446
204,128
215,151
300,015
275,478
6,100
35,273
14,583
-
108,498
14,583
3,234,693
3,515,187
103,678
64,227
2,577,493
2,367,525
252,404
224,665
318,425
254,873
13,385
25,219
3,161,707
2,872,282
3,265,385
2,936,509
(30,692)
578,678
2,220,608
1,641,930
2,189,916
2,220,608|
|---|---|---|---|---|
||||||
||||||
||||||
The Statement of Financial Activities includes all gains and losses in the year. All income and expenditure is derived from continuing activities. A breakdown of prior year comparatives is provided in note 22.
_Page 18_
## Focus Birmingham STATEMENT OF CASH FLOWS For the year ended 31 March 2022
|_Note_
FIXED ASSETS
Intangible assets
6
Tangible assets
7
Investments
8
CURRENT ASSETS
Debtors
9
Cash and cash equivalents
15
CREDITORS:
Amounts falling due within one year
10
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS: Amounts falling due after
more than one year
11
NET ASSETS
14
RESERVES AND FUNDS
Restricted funds
12
Unrestricted funds:
Designated funds:
Fixed Asset
13
General fund
13
TOTAL CHARITY FUNDS
14|2022
£
52,479
919,372
5,100
976,951
390,606
1,235,602
1,626,208
(340,324)
1,285,884
2,262,835
(72,919)
2,189,916
432,289
677,378
1,080,249
1,757,627
2,189,916|2021
£
-
877,164
5,000
882,164
585,494
1,122,582
1,708,076
(282,130)
1,425,946
2,308,110
(87,502)
2,220,608
451,165
728,292
1,041,151
1,768,643
2,220,608|
|---|---|---|
The Company’s financial statements have been prepared in accordance with the provisions applicable companies subject to the small companies regime.
The financial statements on pages 18 to 37 were approved by the board on 3 November 2022 and authorised for issue on its behalf by:
J Montgomery - Chairman
_Page 19_
## Focus Birmingham STATEMENT OF CASH FLOWS For the year ended 31 March 2022
|_Note_
CASHFLOWS FROM OPERATING
ACTIVITIES
Net (expenditure) / income for the year
**Adjustments for:**
Depreciation and amortisation
Investment income
(Profit)/loss on disposal of fixed assets
Decrease / (increase) in debtors
Increase in creditors
NET CASH INFLOW FROM
OPERATING ACTIVITIES
CASHFLOWS FROM INVESTING
ACTIVITIES:
Distribution received from joint venture
Interest received
Investment in subsidiary
Purchase of intangible assets
Purchase of tangible assets
Proceeds on sale of tangible assets
NET CASH (SPENT) / RECEIVED ON
INVESTING ACTIVITIES
CHANGE IN CASH,CASH
EQUIVALENTS AND CURRENT
ASSET INVESTMENTS
CASH, CASH EQUIVALENTS AND
CURRENT ASSET INVESTMENTS
AT THE BEGINNING OF THE YEAR
CASH, CASH EQUIVALENTS AND
CURRENT ASSET INVESTMENTS
AT THE END OF THE YEAR
15|2022
2021
£
£
£
£
(30,692)
578,678
137,887
128,005
(57,352)
(82,007)
(6,100)
-
194,888
(226,196)
43,611
87,156
282,242
485,636
57,217
80,760
135
1,247
(100)
-
(59,976)
-
(172,998)
(40,638)
6,500
-
(169,222)
41,369
113,020
527,005
1,122,582
595,577
1,235,602
1,122,582|2022
2021
£
£
£
£
(30,692)
578,678
137,887
128,005
(57,352)
(82,007)
(6,100)
-
194,888
(226,196)
43,611
87,156
282,242
485,636
57,217
80,760
135
1,247
(100)
-
(59,976)
-
(172,998)
(40,638)
6,500
-
(169,222)
41,369
113,020
527,005
1,122,582
595,577
1,235,602
1,122,582|
|---|---|---|
|||485,636
41,369|
|||527,005
595,577|
|||1,122,582|
_Page 20_
## Focus Birmingham ACCOUNTING POLICIES for the year ended 31 March 2022
## **BASIS OF ACCOUNTING**
The financial statements have been prepared under the historical cost convention and in accordance with the Statement of Recommended Practice, “Accounting and Reporting by Charities” preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Focus Birmingham 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 notes.
During the year Focus Birmingham formed a new subsidiary, Focus Care and Support Limited. The results of the subsidiary have been not been consolidated due to the fact that they are not material to the group.
## **GOING CONCERN**
The charity has prepared detailed budgets which indicate that the charity has sufficient resources in order to meet its liabilities as they fall due and on that basis, the Trustees are satisfied that it remains appropriate to prepare the financial statements on the going concern basis.
## **CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT**
In applying the accounting policies, the Trustees have made critical accounting judgements, estimates and assumptions about the carrying amount of the assets and liabilities. These estimates and assumptions are based on historical experience and are reviewed on a continual basis. The critical accounting judgements, estimates and assumptions that have a material effect on the amounts recognised in the financial statements for both the current and next financial years are discussed below.
## _**Judgements:**_
The Trustees annually review legacies received and potentially receivable and are firmly of the view that legacies should not be recognised until a clear indication of the amounts to be received is known.
The Trustees have taken the view that a provision is required against the VAT recovered in the event that the partial exemption rate estimated is not achieved.
## _**Estimates:**_
Depreciation and amortisation are estimated to write off the cost of all tangible and intangible fixed assets over their estimated useful lives, as set out in the accounting policies on the following page.
## **INCOME**
All income is accounted for when the charity has entitlement to the funds, the probability of receipt and the amount is measurable.
Income from collection boxes is recognised when it is received from the collection agents.
_Page 21_
## Focus Birmingham ACCOUNTING POLICIES for the year ended 31 March 2022
## **INCOME (CONTINUED)**
Income from legacies is recognised on an accruals basis to the extent that the charity has been notified that it is a beneficiary and that there is a clear indication of the amounts involved. Investment income is accounted for on a receivable basis.
Corona Virus Job Retention Scheme income for staff furloughed during the year is recognised on an accruals basis.
Other income is included in the financial statements on an accruals basis.
## **EXPENDITURE**
Expenditure is accounted for on the accruals basis when a legal or constructive obligation is incurred. The cost of irrecoverable value added tax is included with the item of expense to which it relates.
Costs of raising funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.
Charitable activities include expenditure associated with the charity’s objects including both the direct costs and support costs relating to these activities.
Support costs which include central functions have been allocated to cost categories on a basis consistent with resources employed e.g. staff hours.
## **INTANGIBLE FIXED ASSETS**
Intangible fixed assets are recorded at cost and amortised over the estimated useful life of the asset.
Profits and losses on the sale of intangible assets are included in the Statement of Financial Activities in the year of realisation.
## **AMORTISATION**
Amortisation is estimated to write off the cost of all intangible fixed assets over their estimated useful lives on the following basis:
Software
25% straight line
## **TANGIBLE FIXED ASSETS**
Tangible fixed assets are recorded at cost. Minor expenditure on plant, furniture, fixtures and fittings and computer and technical equipment is charged to revenue in the year of acquisition.
Profits and losses on sales of tangible assets are included in the Statement of Financial Activities in the year of realisation.
## **DEPRECIATION**
Depreciation is estimated to write off the cost of all tangible fixed assets over their estimated useful lives on the following basis:
Leasehold building improvements Over 25 years Plant, furniture, fixtures & fittings 10% - 20% straight line Motor vehicles 20% straight line Computer and technical equipment 25% straight line
_Page 22_
## Focus Birmingham ACCOUNTING POLICIES for the year ended 31 March 2022
## **OPERATING LEASES**
Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the term of the lease.
## **DEBTORS**
Trade and other debtors are recognised at the settlement amount due after any trade discounts offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **CASH AND CASH EQUIVALENTS & CURRENT ASSET INVESTMENTS**
Cash and cash equivalents includes cash and monies on short term deposit. Current asset investments represent deposits with original maturities of less than one year.
## **CREDITORS AND PROVISIONS**
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 allowing for any trade discounts due.
## **FINANCIAL INSTRUMENTS**
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments and are not considered to be of a complex nature. Such financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **PENSION SCHEMES**
Focus Birmingham contributes to two defined contribution group personal pension schemes. Contributions are charged to the Statement of Financial Activities as they become payable. Differences between contributions payable in the year and contributions actually paid are shown in either accruals or prepayments in the Balance Sheet.
## **FUNDS**
## _**Unrestricted funds:**_
## _General fund_
This fund represents accumulated surpluses arising from the charity’s activities and is available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.
## _Designated fund – Fixed asset fund_
This fund, which equates to the net book value of unrestricted tangible fixed assets, has been set aside from the remaining general funds.
## _**Restricted funds:**_
These are funds to be used in accordance with specific restrictions imposed by donors or which have been raised for particular purposes. The costs of raising and administering such funds are charged against the specific fund.
_Page 23_
## Focus Birmingham ACCOUNTING POLICIES for the year ended 31 March 2022
## **VOLUNTARY HELP AND GIFTS IN KIND**
No value has been put on the voluntary help received during the year; various services benefit from the help given by the 60 volunteers who were registered with the organisation at 31 March 2022. Individual gifts in kind of significant value would be valued at estimated cost to the donor and included in the financial statements; however the value of small gifts is not quantifiable.
## **INVESTMENTS**
Fixed asset investments are recorded at cost. The investment in TLC Lotteries is reported at the cost of acquiring one third of the share capital of the joint venture with two unrelated charities. This is a similar value to fair value.
_Page 24_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
|**1**
**DONATIONS AND LEGACIES**
2022
£
Donations and grants
245,555
Legacies
106,954
352,509
**2**
**INVESTMENT INCOME**
2022
£
Short term deposits – interest receivable
135
Income from joint venture
57,217
57,352
**3**
**TOTAL**
**EXPENDITURE**
Staff
costs
£
Other
direct
costs
£
Allocated
costs
£
2022
£
Generating voluntary
income
86,388
14,709
2,581
103,678
Multiple disability
1,861,635
563,517
152,341
2,577,493
Low vision
104,438
128,550
19,416
252,404
Community
263,030
48,124
7,271
318,425
Information and advocacy
-
11,579
1,806
13,385
2,315,491
766,479
183,415
3,265,385|2021
£
478,835
66,896
545,731
2021
£
1,247
80,760
82,007
2021
£
64,227
2,367,525
224,665
254,873
25,219
2,936,509|
|---|---|
_Page 25_
## Focus Birmingham
## NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2022
|**3**
**TOTAL EXPENDITURE**
**(continued)**
Charitable
activities
£
SUPPORT COSTS
General office
199,085
Finance office
142,141
Human Resources
146,823
Information Technology
67,649
Central Resources
290,675
**Total**
846,373
Other direct costs include:
Depreciation and amortisation
Owned assets
Auditor’s remuneration (including
irrecoverable VAT)
For audit services
For other services – Tax
Operating leases
Hire of plant and machinery
Rental of premises||Raising
funds
£
5,188
3,705
3,826
1,763
7,575
22,057|Total
2022
£
204,273
145,846
150,649
69,412
298,250
868,430
2022
£
137,887
14,190
1,950
3,840
164,690|Total
2021
£
211,788
91,493
164,739
64,408
199,791
732,219
2021
£
128,007
12,000
1,320
3,090
164,690|
|---|---|---|---|---|
||||||
Information and advocacy expenditure represents the costs incurred in making the public aware of the needs of blind or partially sighted people and the range of activities and services provided by the charity.
Support costs and administration expenses have been apportioned to services on the basis of staff costs incurred by those services. Support costs include the human resource, finance and information technology departments and general office expenses represent the cost of managing the charity and include the costs of the Chief Executive.
Costs above include non-recoverable VAT.
_Page 26_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
|**4**
**EMPLOYEES**
Fundraising
Multiple Disability
Low Vision
Community
Departmental Support
Average during year|2022 2021
No.
No.
2
2
89
91
3
3
9
7
24
18
127
121|
|---|---|
Average number of employees includes casual workers whose salary costs are included below.
|**Staff costs**
Wages and salaries
Social security costs
Other pension costs|2022
2021
£
£
2,084,235
1,962,376
144,301
129,549
86,954
85,279
2,315,490
2,177,204|
|---|---|
Unpaid pension contributions as at 31 March 2022 were £12,559 (2021: £11,821). These were paid post year end.
There was 1 employee whose annual earnings (including taxable benefits in kind) exceeded £60,000 (2021: no employees); there were pension contributions of £3,067 for that employee (2021: £nil).
The table below shows the annual earnings of higher paid employees:
|**Annual**|**earnings**|2022|2021|
|---|---|---|---|
|||No.|No.|
|£60,000|- £60,999|1|-|
The key management personnel of the charity are those having authority and responsibility delegated to them by the Trustees, for planning, directing and controlling the activities of the charity. The total employee benefits of key management personnel, including employer’s national insurance contributions and contributions to the pension scheme, were £212,473 (2021: £181,411).
During the year to 31 March 2022 there were no contractual termination payments in respect of redundant roles (2021: £10,726 payments in respect of 8 redundant roles).
_Page 27_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
## **5 TRUSTEES’ EXPENSES**
In accordance with the Articles of Association, the members of the Board of Trustees do not receive any remuneration from the charity. No travel expenses were reimbursed during the period. Indemnity insurance for Trustees and Officers, providing £1m (2021: £1m) of cover has been purchased at a cost of £2,800 including IPT (2021: £2,182).
## **6 INTANGIBLE FIXED ASSETS**
|At 1 April 2021
Additions
Amortisation
At 31 March 2022|£
-
59,976
(7,497)|
|---|---|
||52,479|
Intangible Fixed Assets comprises software developed to deliver the befriending proposition.
## **7 TANGIBLE FIXED ASSETS**
|Short leasehold
Building
improvements
£
Plant,
furniture
fixtures and
fittings
£
Cost:
1 April 2021
1,376,608
461,339
Additions
132,030
22,998
Disposals
-
-
31 March 2022
1,508,638
484,337
Depreciation:
1 April 2021
717,615
355,108
Charge for the year
46,292
38,463
Disposals
-
-
31 March 2022
763,907
393,571
Net book value:
31 March 2022
744,731
90,766
31 March 2021
658,993
106,231||Motor
vehicles
£
Computer
and technical
equipment
£
267,520
124,898
-
17,970
(11,932)
-
255,588
142,868
221,978
58,500
20,305
25,330
(11,532)
-
230,751
83,830
24,837
59,038
45,542
66,398|Total
£
2,230,365
172,998
(11,932)
2,391,431
1,353,201
130,390
(11,532)
1,472,059
919,372
877,164|
|---|---|---|---|
|||||
|||||
Leasehold Building Improvements consists of refurbishment and expansion of the Resource Centre Building and the Elizabeth Gunn Centre.
_Page 28_
Focus Birmingham NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
## **8 INVESTMENTS**
||Investment|||
|---|---|---|---|
||in joint|Investment in|Total|
||venture|subsidiary|investment|
||£|£|£|
|At 1 April 2021|5,000|-|5,000|
|Additions|-|100|100|
|At 31 March 2022|5,000|100|5,100|
|**Investment in joint venture**||**Proportion**|**of**|
|||**Issued ordinary shares held**||
|||**%**||
|TLC Lotteries Limited||33.3||
TLC Lotteries Limited is a trading company incorporated in England and Wales and promotes a commercial lottery game, which aims to generate profits for the benefit of its affiliated charities.
As at 31 March 2022 the charity’s share of the Company’s profit was £57,217 (2021: £80,760) and net assets as at the date of the company’s last audited accounts (31 December 2021) were:
|Represented by:
Share of gross assets
Share of gross liabilities|£
93,691
(42,953)
50,738|
|---|---|
## **Investment in subsidiary**
During the year Focus Birmingham formed a subsidiary, Focus Care and Support Limited, a company incorporated in England and Wales and acquired 100% of its share capital. During the year the subsidiary did not have any trading results but work has been ongoing to transfer local authority and health care contracts into the company.
At 31 March 2022 Focus Care and Support had assets of £70,071 and liabilities of £69,971.
_Page 29_
## Focus Birmingham NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
## **9 DEBTORS: Amounts falling due within one year**
|Fees and grants receivable
Amounts due from subsidiary undertaking
Other debtors
Prepayments and accrued income
**10**
**CREDITORS: Amounts falling due**
**within one year**
Taxation and social security
Amounts owed to subsidiary
undertaking
Other creditors
Accruals
Deferred income
**11**
**CREDITORS: Amounts falling due after more than one**
**year**
Deferred income||2022
£
236,843
69,971
28,709
55,083
390,606
2022
£
32,355
100
80,920
148,206
78,743
340,324
2022
£
72,919|2021
£
377,211
-
-
208,283
585,494
2021
£
31,697
-
78,122
53,690
118,621
282,130|
|---|---|---|---|
|||||
|||||
||||2021
£
87,502|
_Page 30_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
## **11 CREDITORS: Amounts falling due after more than one year (continued)**
|Balance at 1 April 2021
Income deferred in the year
Deferred income released to
SOFA
Balance at 31 March 2022|2022
£
2021
£
206,123
134,290
14,046
104,038
(68,507)
(32,205)
151,662
206,123|
|---|---|
Deferred income includes lease income paid in advance amounting to £87,502 (2021: £102,085) which will be recognised as income in the SOFA over the life of the lease (6 years remaining) of which £14,583 will be recognised in 2022/23.
## **12 RESTRICTED FUNDS**
|1 April 2021
Grants & Donations received
Expenditure before transfers
Transfer
31 March 2022
1 April 2020
Grants & Donations received
Expenditure before transfers
Balance sheet reclassification
Transfer
31 March 2021|Fixed
Assets
£
Other
£
147,912
303,253
-
30,312
(40,623)
(8,565)
187,184
(187,184)
294,473
137,816
Fixed
Assets
£
Other
£
145,169
78,332
-
243,784
(28,451)
(911)
-
13,242
31,194
(31,194)
147,912
303,253|Total
2022
£
451,165
30,312
(49,188)
-
432,289
Total
2021
£
223,501
243,784
(29,362)
13,242
-
451,165|
|---|---|---|
The restricted fixed assets fund comprises grants and donations received specifically to fund the purchase of fixed assets. This fund will be amortised in line with the depreciation of the relevant fixed assets.
_Page 31_
## Focus Birmingham NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
## **12 RESTRICTED FUNDS**
**(continued)**
Other restricted funds comprise sundry grants, legacies and donations for specific purposes. As at 31 March 2022 the following amounts were held:
|022 the following amounts were held:||
|---|---|
||£|
|**Low Vision Funds**|**41,795**|
|Sutton Site Project|16,394|
|Emotional Support for Children|3,517|
|Low Vision Equipment|12,401|
|Flooring|8,750|
|Other|733|
|**Community Services**|**38,645**|
|Sports and Social Club Development|34,617|
|Other Befriending Projects|4,028|
|**Day Care Services**|**57,376**|
|Building Enhancement|17,344|
|Grounds Enhancement|8,898|
|Hub Connectivity|10,000|
|Group Activity Funds|21,134|
## **13 UNRESTRICTED FUNDS**
|**General fund:**
1 April 2021
Net (expenditure) / income for the
year before transfers
Transfer from
Designated – fixed asset fund
31 March 2022|2022
£
2021
£
1,041,151
599,065
(11,816)
351,014
50,914
91,072
1,080,249
1,041,151|
|---|---|
_Page 32_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
## **13 UNRESTRICTED FUNDS (continued)**
£ £ **Designated fund – Fixed Asset Fund** 1 April 2021 728,292 819,364 Transfer to General fund (50,914) (91,072) 31 March 2022 677,378 728,292
A transfer to the designated fixed asset fund in the charity is made so that the fixed asset fund equals the net book value of its own tangible fixed assets excluding fixed assets represented by the restricted fund.
|**14**
**ANALYSIS OF NET**
**ASSETS BETWEEN**
**FUNDS**
Fixed assets
£
**March 2022**
Restricted funds
294,473
Unrestricted funds
- General fund
5,100
- Designated funds
677,378
976,951
**March 2021**
Restricted funds
147,912
Unrestricted funds
- General fund
5,000
- Designated funds
728,292
881,204|Current
assets
£
137,816
1,488,392
-
1,626,208
303,253
1,405,783
-
1,709,036|Total
liabilities
£
-
(413,243)
-
(413,243)
-
(369,632)
-
(369,632)|Total net
assets
£
432,289
1,080,249
677,378
2,189,916
451,165
1,041,151
728,292
2,220,608|
|---|---|---|---|
|||||
_Page 33_
## Focus Birmingham NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
## **15 ANALYSIS OF CASH AND CASH EQUIVALENTS & CURRENT INVESTMENTS**
|Cash at bank and in hand
32 day notice account
Total cash and cash equivalents|2022
£
2021
£
1,035,602
1,022,582
200,000
100,000
1,235,602
1,122,582|
|---|---|
## **16 LEASING OBLIGATIONS**
The total future minimum lease payments under non-cancellable operating leases for plant and machinery are as follows:
|Amounts due:
Within one year
Between one and five years|2022
£
7,513
10,597
18,110|2021
£
922
-|
|---|---|---|
|||922|
The charity operates from premises in Woodville Road, Harborne, Birmingham. Such premises are rented from BRIB (note 18) under a 75 year lease commencing in 1996. An annual rental of £164,690 is payable, but under the terms of the 1996 transfer agreement BRIB provides grants to the charity to offset this expenditure so the net cost to Focus Birmingham is £nil.
## **17 CAPITAL COMMITMENTS**
At 31 March 2022 the charity had a capital commitments of £23,883 (including irrecoverable VAT) to refurbish Sight Loss Support Services (2021: £147,097 to refurbish Hub A).
## **18 CONNECTED ORGANISATIONS**
The principal connected organisation is as follows:
## **The Birmingham Royal Institution for the Blind (“BRIB”)**
Three members of the Focus Board are also members of the BRIB Board. BRIB is Focus Birmingham’s landlord and provides regular grants at least equal to the annual rent paid for the buildings used at the Harborne site.
Grants received for rent during the year equalled £164,690 (2021: £164,690) and rent paid was £164,690 (2021: £164,690). During the year ended 31 March 2021 BRIB awarded Focus Birmingham £26,000 for the acquisition of the optical coherence tomography machine and £121,097 for refurbishment work.
_Page 34_
Focus Birmingham NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
## **19 RELATED PARTY TRANSACTIONS**
The charity owns a third share of TLC Lotteries Limited, a trading company which is jointly controlled by Focus Birmingham, Acorns Children’s Hospice Trading Limited and The Hospice Charity Partnership (formerly St Mary’s Hospice), under the terms of a joint venture agreement.
|Transactions for the year comprised:|||
|---|---|---|
||2022|2021|
||£|£|
|TLC Lotteries Limited|57,217|80,760|
The charity owns 100% of the share capital of Focus Care and Support limited. During the year the subsidiary received £69,971 from HMRC which is due to Focus Birmingham. There is £100 payable by Focus Birmingham to Focus Care and Support in respect of unpaid share capital.
## **20 LEGAL STATUS OF THE CHARITY**
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
The address of the charity’s registered office and principal place of business is 48-62 Woodville Road, Harborne, Birmingham, B17 9AT.
## **21 FINANCIAL INSTRUMENTS**
|The carrying amount of the group and company’s
financial instruments at 31 March were:
**Financial assets**
Debt instruments measured at amortised cost
**Financial liabilities**
Debt instruments measured at amortised cost|2022
£
234,344
229,127|2021
£
498,308|
|---|---|---|
|||130,612|
_Page 35_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
## **22 PRIOR YEAR FUND ANALYSIS**
|**INCOME FROM:**
Donations and legacies
Other trading activities:
- fundraising
Investments
**Charitable activities:**
- multiple disability
- low vision
- community
Other income
Coronavirus Job Retention Scheme
Lease premium
TOTAL INCOME
**EXPENDITURE ON:**
**Raising funds:**
- costs of generating voluntary income and
fundraising activities
**Charitable activities:**
- multiple disability
- low vision
- community
- information and advocacy
TOTAL EXPENDITURE
NET INCOME BEING NET MOVEMENT IN
FUNDS
RECONCILIATION OF FUNDS:
FUND BALANCES AT 1 APRIL 2020
FUND BALANCES AT 31 MARCH 2021|Unrestricted
funds
2021
£
288,705
1,293
82,007
2,272,446
215,151
275,478
108,498
14,583
3,258,161
64,227
2,339,074
224,511
254,116
25,219
2,842,920
2,907,147
351,014
1,418,429
1,769,443||Restricted
funds
2021
£
257,026
-
-
-
-
-
-
-
257,026
-
28,451
154
757
-
29,362
29,362
227,664
223,501
451,165||Total
funds
2021
£
545,731
1,293
82,007
2,272,446
215,151
275,478
108,498
14,583
3,515,187
64,227
2,367,525
224,665
254,873
25,219
2,872,282
2,936,509
578,678
1,641,930
2,220,608|
|---|---|---|---|---|---|
|||||||
|||||||
|||||||
|||||||
|||||||
_Page 36_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2022
## **23 EVENTS SINCE THE BALANCE SHEET DATE**
There have been no events since the balance sheet date that materially affect the position of the company.
_Page 37_