## Focus Birmingham
## ANNUAL REPORT AND FINANCIAL STATEMENTS
for the year ended
31 March 2023
.
Charity No. 1065745 Company Registration No. 3353444 Registered in England and Wales
## **CONTENTS PAGE**
||Page|
|---|---|
|Trustees’ Report and Review of the Year|1-14|
|Statement of Trustees’ Responsibilities|15|
|Independent Auditor’s Report|16-18|
|Consolidated Statement of Financial Activities|19|
|Consolidated and Company Balance Sheets|20|
|Consolidated Statement of Cash Flows|21|
|Accounting Policies|22-25|
|Notes to the Financial Statements|26-39|
Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2023
The Trustees, who are also Directors of the Charitable Company, present their annual report and audited financial statements of the Group for the year ended 31 March 2023. As a Small Charitable Group, the Trustees have taken advantage of the exemption of not providing a Strategic Report.
## **TRUSTEES**
The following Trustees have served since 1 April 2022:
Mr C Gascoigne (resigned 3 November 2022) Ms V Griffiths Dr R Hindle Mrs J McDougall Mr J Montgomery (Chairman) (resigned 19 November 2023) Miss Z Allen-Robinson Mr J Feehan (resigned 9 November 2023) 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 and complex needs in Birmingham. There are 28,600 people in Birmingham living with sight loss and a predicted increase of 17% by 2030. One in ten people living with a disability in Birmingham have complex needs.
The charity was founded in 1998, previously operating under the auspices of BRIB (Birmingham Royal Institution for the Blind).
The organisation employed 129 staff on permanent or fixed term contracts at 31 March 2023 and provided support to blind, visually impaired and those with profound disabilities on over 30,499 occasions in 202223
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 2023
## **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.
## **Related Parties**
Focus Care and Support Limited
- The charity has one wholly owned subsidiary, Focus Care and Support Limited. Focus Care and Support Limited was incorporated on 4 August 2021 and its purpose is to operate as the contracting party for local authority and healthcare body funded individuals using the Group’s services. Focus Care and Support Limited started trading in the year ending 31 March2023. The inaugural year of trading has proven to be successful by generating a profit of £66,301, which the subsidiary has gift aided to the charity Focus Birmingham.
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.
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## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2023
## **GOVERNANCE ARRANGEMENTS, BOARD OF TRUSTEES, SENIOR MANAGEMENT TEAM (CONTINUED)**
- 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.
- 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:
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 (2022: £1m) of cover has been purchased at a cost of £3,080.
**Finance and Audit Business Development** Dr R Hindle Mrs J McDougall Ms J McDougall Mr J Feehan Ms V Barker Ms Z Allen-Robinson Mr R Sivaraj
## **Contracts, Performance and Workforce**
Ms V Griffiths Mr M Jandu Ms D Wragg Ms V Barker
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## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2023
## **GOVERNANCE ARRANGEMENTS, BOARD OF TRUSTEES, SENIOR MANAGEMENT TEAM (CONTINUED)**
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 – Kevin Griffiths (until September 2022)
- Acting Chief Executive – Cate Burke (from October to December 2022)
- Chief Executive – Cate Burke (from January 2023)
- Director of Services/Deputy Chief Executive – Cate Burke (until September 2022)
- Director of Services (Maternity Cover) – Bernice Jones (until April 2022)
- Head of Sight Loss Services – Bernice Jones (from April 22 to January 2023)
- Financial Controller – Lucy Smith (until November 2022)
- Financial Controller – Ivy Erhabor (from December 2022 until June 2023)
- Head of Workforce and Human Resources – Marcia 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.
## **FOCUS BIRMINGHAM SERVICES**
During the year 2022/23, 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 65 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 disabilities. 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.
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Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2023
## **FOCUS BIRMINGHAM SERVICES (CONTINUED)**
## **Case Study: Sight Loss Support –S ‘She had no confidence to leave her home alone and was becoming increasingly socially isolated’**
S, a 71-year-old female, diagnosed with wet macular degeneration was referred to Focus Birmingham’s Sight Loss Support Services by her local Eye Clinic Liaison Officer. She was struggling to come to terms with her new situation, describing herself as ‘feeling lonely and sad, and having no one to talk to.’ She was going to bed at 17.00 pm once her family had left and staying there until the next day. She had no confidence to leave her home alone and was becoming increasingly socially isolated and dependent on her family.
Our Enablement worker initially visited S in her home and referred her to our Information Advice and Guidance (IAG) service for support. Our IAG support worker spoke with S about the various social groups at Focus Birmingham and although S expressed her discomfort and reluctance to go out, our IAG worker booked Ring and Ride for her, insisting that she should try to go to the Focus coffee morning at least once.
S attended her first coffee morning in March and appeared anxious and nervous. She was warmly welcomed into the group by volunteers and other attendees. S enjoyed her new social interactions and will now be able to access the opportunity to take part in other coffee morning activities. She feels part of a new sight loss community and told us:
“It’s so difficult to make new friends at my age and especially with the sight loss. I have really enjoyed the coffee morning, and I will definitely be coming back. I hope at some point in the future, I can give a warm welcome to new people to help them feel as comfortable as I have been made to feel. I am really looking forward to our meal out at the pub!!
## **Case Study: Day Services – K “** now she feels more in ‘control’ **”**
K has been attending our Complex Needs Day Service since June 2019 after leaving full time education. She is a quiet and gentle person with a cheeky personality that surprises people, she loves to make people laugh and can light up a room with her smile. She can communicate with some non-verbal expressions however, without the support of alternative communication aids, she struggles to fully articulate her wants and needs. Whilst at school she had been provided with a VOCA (Voice Output Communication Aid) mounted on her wheelchair that she used to communicate her needs. However, whilst at the day service, it was identified by our communication support team that her VOCA hadn’t been mounted correctly on her wheelchair. This therefore meant she was often left frustrated and in pain due to the angle that she had to position herself in, to use the device. This position was actually causing physical strain to her spine, adding to the aches and pains she already felt throughout her complex anatomy.
Due to leaving education, and the Covid Pandemic causing a backlog with all services, the position hadn’t been fixed and K become increasingly frustrated and used the VOCA less and less. The day service communication team fought to make sure she wasn’t lost in the system or forgotten about. This year a team member called the providers every single day for 3 months before reaching someone who pushed ‘the powers that be’ to do something about K’s case.
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Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2023
## **FOCUS BIRMINGHAM SERVICES (CONTINUED)**
They came in and got her device mounted. When K was told what was happening, she was visibly elated. Following the mounting of the device, K went home and had the confidence to use her device to request blackcurrant juice instead of Chai tea to her mum, which made mum very emotional as K had previously never wanted to use her device at home. Mum called Focus to say thank you, as she just assumed K had always wanted tea!
K says that now she feels more in ‘control’ as it is her choice whether she wants to use the device or not, now allowing her to be present in conversations both physically and verbally and allowing her more independence. K has come on leaps and bounds this year in terms of her communication, now forming short complex sentences with fluidity
**Case Study: Supported Living – Has much more freedom and feels at home at Millward Place** R moved into our Supported living Scheme, Millward Place, in September 2020, she is 38 years of age and of Black Caribbean and white heritage. She was raised and educated in Hall Green, Birmingham. R has a learning disability, Down syndrome, acquired hypothyroidism, conductive hearing loss and eczema.
At the age of 21 R left college and moved to Outlook House (residential supported living unit). R stayed there until she became 25 and then moved to Sherborne Grange residential home. R moved from there, as she wanted to live with people of a similar age and ability, and moved to Prospect House, a residential care home with 5 flats in 2011.
R has really embraced living independently in her flat at Millward Place and has created a home she is extremely proud of. R is actively involved in all aspects of taking care of her flat, she will carry out the hoovering, dusting, washing up, making her bed and laundering her clothes, R has even managed to work out how to use all of her electrical appliances independently which means she no longer has to rely on staff in this area. R is supported with preparing and cooking her own meals and particularly enjoys baking as she has an extremely sweet tooth, the final product is the reward washed down with a nice cup of tea
Over time R confidence has increased and she has developed positive relationships with her support team and her house mates. R has also developed some strong relationships within her community and is well known in the local shops and post office, R is always open to a chat whilst out and about on her travels. R is actively involved in all of the activities the scheme has to offer. She especially enjoys going swimming, attending the gym, arts and crafts quizzes and Oomph Karaoke night is R’s favourite and she is not shy in “ DOING A TURN “ well several actually. R has much more freedom and feels at home at Millward Place, she has quickly become part of the ‘Millward Family’. She has continued to see both of her parents and sister regularly all play a significant part in her life and provide support in any important decisions when needed.
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## Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2023
## **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.** ’
The strategic objectives agreed by the Board to direct the priorities of the organisation for the year 20222023:
**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:
- Further phases of refurbishment programme completed;
- Further phases of safety flooring programme completed;
- Leased Four new buses
- Introduction of a Purchase to Pay, Purchase Ordering system;
- Significant plant upgrade programme, including new water tanks and boilers;
- Completed the multi-factor authentication initiative;
- Fully embed the cloud-based IP- based telephony system introduced
- Conducted a comprehensive staff survey and develop action plans to address any concerns identified
- Development of the Group Counselling activities;
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## Focus Birmingham
TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2023
## **FUTURE PLANS**
During the coming year, we plan to develop a comprehensive strategy to guide the charity's initiatives and actions over the next three years. This will include the following:
- A comprehensive review of the charities Mission, Vision and values , working with our beneficiaries, staff, volunteers and key stakeholders to develop a clear and shared understanding of our purpose and direction
- Identification of key Strategic Focus Areas for the strategy period to ensure we achieve our mission
- Development of operational plans for each Strategic Focus Area ensuring that we are appropriately resourced to achieve each Focus areas’ objectives
## **CONTRIBUTION OF VOLUNTEERS**
Volunteering remains a key element of our service delivery.
We have seen volunteer numbers increase slightly to 68 from the previous year, enabling us to reach and support more vulnerable people. To continue growing our volunteer numbers, we have worked closer with local community groups and businesses, to widen our reach. Work experience and placement opportunities with schools, colleges and local universities at Focus Birmingham have increased this year. Releasing potential in volunteers and students to develop skills and valuable work experience opportunities, resulting in a talent pipeline stream at Focus for recruitment.
## **GENDER PAY REPORTING**
Focus Birmingham continues to employ a workforce of under 250 staff and consequently does not have to comply with the reporting of the Gender Pay gap mandatorily. However, the Board is committed to equality in every area of the charity, including gender pay equality. It can be reported that the median gender pay gap in favour of males at 31 March 2023 was 1.6%. The mean gender pay gap in favour of males at 31 March 2023 was 2.4%.
## **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 2022/23, 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 2022/23 and are following Charity Commission guidance, although the following fundamental areas of risk to the charity remain constant:
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Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2023
## **RISK MANAGEMENT (CONTINUED)**
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 Contracts and Performance Committee (now the Contracting, Performance and Workforce Committee).
## **EXTERNALITIES**
Like the majority of medium size charities Focus, during 2022/23 has had to weather the impact of:
- The start of the cost-of-living crisis
- Changes in the national living wage
- Rising utilities cost
- The residual impact of Covid-19 pandemic
- The continued volatility of the labour market.
During 2022/23 the Government preferred measure of inflation, the Customer Prices Index (CPI) averaged 9.78%, whist the Retail Prices Index (the RPI) for the same period was on average 2.69% higher, at 12.47%. These rates impacted on (domestic) disposable income and on average (regular) pay growth, which was 6.9% for the private sector (December 2022 to February 2023); for the same period growth in public sector pay 5.3%.
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## Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2023
## **EXTERNALITIES (CONTINUED)**
From April 2022, the National Living Wage rate, which applies to those aged 23+ increased by 6.6% to £9.50 per hour.
World events, particularly the ongoing war in the Ukraine impacted significantly on utility costs (gas and electricity) during 2022/23. During this period Focus was shielded to some degree from these increases by fixed price tariff package, which it entered in 2019. Fuel prices (petrol and diesel) reached a record high in 2022, the average price of petrol hitting £191.53 per litre and diesel reaching £199.05 in July 2022. The impact of the Covid-19 pandemic lessened during 2022/23 following the roll out of the Government vaccination programme.
As many of our service users are prone to respiratory conditions a new Covid strain would represent a significant risk.
The UK labour market continued to be highly volatile during 2022/23, particularly for care staff; during 2022 it was estimated that there were 152,000 vacancies in the care sector. During this period Focus’ turnover rate was 8.08%, its average fill rate was 53.8%.
Focus supports the initiatives as proposed in the Department of Health & Social Care white paper “People at the Heart of Care” and awaits the publication of the next step policy paper in April 2023.
## **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 Sight Loss Support Services );
- Specific contracts with NHS bodies (e.g. Integrated Care Board and Public Health 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 2023
## **FINANCIAL REVIEW OF CONSOLIDATED ACCOUNTS**
Income for the year increased by £59,054 to £3,236,530 while expenditure increased by £302,956 to £3,568,341. As a result, a deficit on activities of £250,092 has been made compared to a deficit last year of £20,839.
More detail regarding these headline areas is noted below:
## **Income**
Income from charitable activities increased from £2,767,071 to £2,909,871. This increase reflected the Day Services returning to near full capacity after the COVID-19 lockdown period and safety measures brought about by the pandemic.
Income from donations and legacies fell by 16%. Although Grants and donations increased by £11,286 during the year, legacies decreased by £36,989.
Bank interest income rose to £2,753 from £153.
Our lottery joint venture with The Hospice Charity Partnership and Acorns Children’s Hospice, provided distributions of profits to the charity amounting to £81,718, an increase of £14,648 compared to last year.
## **Expenditure**
Overall expenditure increased by 9% to £3,568,341.
This increase reflects the increased spend on our charitable activities as these returned to full capacity, including the costs of running our Transport fleet which increased by £42,677 during the year.
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 £1,985,563 (2022: £2,235,654). This was made up of £377,688 restricted funds, £239,406 of which, is represented by grants and donations received specifically to fund the purchase of fixed assets, whilst the remaining £138,282 has been received for use in specified projects, such as use by community groups.
Total Charity Funds also includes £704,056 of designated funds which represents the net book value of the tangible fixed assets (other than those represented by the restricted funds). The remaining £903,817 are general funds which can be used for the benefit of the charity.
## **Reserves Policy**
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.
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Focus Birmingham TRUSTEES’ REPORT AND REVIEW OF THE YEAR for the year ended 31 March 2023
## **FINANCIAL REVIEW OF CONSOLIDATED ACCOUNTS (CONTINUED)**
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, the following reserves have been set aside.
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 £200,000.
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 £130,000. Trustees consider it prudent to allow an additional £70,000 to cover unexpected costs or a delay in filling these spaces bringing the reserves required to be maintained for the Complex Needs Service to £200,000.
The total reserves required to be maintained for these services therefore amount to £400,000 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 2023 general reserves of £903,816 and cash balances of £989,514 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 2023
## **ADMINISTRATIVE DETAILS OF THE CHARITY’S ADVISERS**
## **AUDITOR**
Mazars LLP 2 Chamberlain Square Birmingham B3 3AX
## **SOLICITORS**
Flint Bishop LLP 2 Prospect Place Pride Park Derby DE24 8HG
## **BANKERS**
Lloyds Bank Plc 114 Colmore Row Birmingham B3 3BD
## **INSURANCE**
Hettle Andrews Eleven Brindley Place 2 Brunswick Square Birmingham B1 2LP
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Focus Birn]ingham
TRUSTEES, REPORT AND REVIEW OF THE YEAR
for the year end 31 March 2023
ATmE1 AS TO DISCILKSURE OV INFORMATION TO AIJDITOR
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&s they are aware, that there is rekvant 8udit infomwtion of which the auditr* is unaware. Fxh of the
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to companies entitled to the ]1 wnpanies exemptions Provided by Part 15 Sections 399(2A) ond 414B(b)
of the Companies Act 2(.
On i%half of the Board
R Hindk. Treasurer
I l Lk¢ember2023
Page J4
## 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 ‘parent charity’) for the year ended 31st March 2023 which comprise the Group Statement of Financial Activities, the Group and Company Balance Sheets, the Group 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 group’s and of the parent charity’s affairs as at 31st March 2023 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.
**Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
_Page 16_
## Focus Birmingham
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF FOCUS BIRMINGHAM
- 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 15, 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 group and parent charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to employment regulation and fraud, 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.
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.
_Page 17_
Focus Birn]ingham
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FOCUS BIRMINGHAM
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 w'"iih the Trustees and management their policies and procedures regarding compliance
with laws and regulations.,
Communicating identified laws and regulation5 throughout our engagement tearn 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 proccdures in rclation to fraud included but w¢r¢ not limitcd to..
Making enquiries of the Trustces and manageiiient on whether they had knowledge of any actual,
suspected or alleged fraud.
Gaining an uiid¢rstanding of th¢ internal ¢ontrols ¢stablish¢d t() Initigatc risks related to traud.
Discussing amongst th¢ cngag¢in¢nt t¢ain the risk5 of fraud; and
Addressing the risks of fraud through management override of Controls by perforniing journal
entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibilit) for
the prevention and detectioii of irregiilarities including fraiid rests with nianageinent. As with any audit,
tliere remained a risk of non-detection of irregularilies. as these n)ay involve collusion, forger),, intentional
omissions, misrepresentations or the override of intemal controls.
A further description of our responsibilities for the audit of Ihe financial statements is located on the
Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description forms
part of our auditor s report.
Use of the xudit rep()rt
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 •006. Our audit work has been undertaken so that we might state to the charity s
members those Inatters 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 Hoos¢ (S¢nior Statutory Auditor)
for and on b¢half of Mazars LLP
Chartered Accountants and Statutory Auditor
First Floor
Two Chamberlain Square
Bimiingham B3 3AX
Dec 20, 2023
Page 18
## Focus Birmingham CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an Income and Expenditure Account) for the year ended 31 March 2023
|_Note_
**INCOME FROM:**
Donations and legacies
1
**Other trading activities:**
- fundraising
Investments
2
Share of JV Turnover
**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**
Less Share of JV Turnover
NET INCOME
**EXPENDITURE ON:**
**Raising funds:**
- fundraising
3
**Charitable activities:**
- multiple disability
3
- low vision
3
- community
3
- information and advocacy
3
**TOTAL EXPENDITURE**
3
**NET INCOME / (EXPENDITURE)**
**BEFORE SHARE OF JOINT**
**VENTURE PROFITS**
Share of JV profits
**NET INCOME / (EXPENDITURE)**
**AFTER SHARE OF JOINT VENTURE**
**PROFITS**
**RECONCILIATION OF FUNDS:**
**FUND BALANCES AT 1 APRIL 2022**
**FUND BALANCES AT 31 MARCH 2023**
12/13|Unrestricted
Funds
£
275,701
7,503
2,753
181,740
2,466,647
207,308
235,916
5,326
-
14,583
3,397,478
( 181,740 )
3,215,738
95,087
2,892,438
267,539
228,216
9,667
3,397,860
3,492,947
( 277,209 )
81,718
( 195,491 )
1,803,365
1,607,874|Restricted
Funds
£
20,793
-
-
-
-
-
-
-
-
-
20,793
-
20,793
-
49,736
14,994
10,663
-
75,394
75,394
( 54,601 )
-
( 54,601 )
432,289
377,688|Total Funds
2023
£
296,494
7,503
2,753
181,740
2,466,647
207,308
235,916
5,326
-
14,583
3,418,270
( 181,740 )
3,236,530
95,087
2,942,174
282,533
238,879
9,667
3,473,253
3,568,341
( 331,810 )
81,718
( 250,092 )
2,235,654
1,985,562|Total Funds
2022
£
352,509
1,805
135
193,863
2,262,928
204,128
300,015
6,100
35,273
14,583|
|---|---|---|---|---|
|||||3,371,339
( 193,863 )|
|||||3,177,476|
|||||103,678|
|||||2,577,493
252,404
318,425
13,385|
|||||3,161,707|
|||||3,265,385|
|||||( 87,909 )|
|||||67,070
( 20,839 )|
|||||2,256,493
2,235,654|
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 19_
Focus Birniingham
CONSOLIDATED AND COMPANY BALANCE SHEErs
31 March 2023
Compgny Registration No. 3353444
FIXED ASSETS
Intlible ass¢ts
Tlbk 48S¢ts
Investhmits
Inv¢stsnents inioint v•rtw¢s
37.485
4m
514P)
9193T2
37.485
905.979
S.IiK)
Sl479
919J72
5.IiKI
70
CURRENT ASSETS
D¢btor5
Cash and cash eqllivalts
4W45
444.93S
3WJ06
15
1395.759
lJ71671
IM6.1
CREDITORS
Amounts fa]ling dut withiti Lttyear
10
NET CURRENT ETs
973 127
TOTAL A&SETS LESS CURRENT
LIABILITIES
1043
2Jl
1.4x21.691
CREDrfoiLS
19
NET ETs
14
RESERVFS AND FUNDS
12
377.611
377ffi88
432289
Umrestrleted (UDd&'
I)¢5Ignat fjJnd:
Fixed Assrt
iy
701.057
677J78
7Tr1.057
677J78
781
TOTAL CHARITY FUNDS
14 1
2189916
subje¢t ts the S1 mpanI tr8in
on its behalf by:
R Hindle- TTe8surer
Page 20
## Focus Birmingham
CONSILDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2023
|_Note_
CASHFLOWS FROM OPERATING
ACTIVITIES
Net (expenditure) / income for the year
**Adjustments for:**
Depreciation and amortisation
Share of JV profits
Investment income
Decrease / (increase) in debtors
(Decrease) / increase in creditors
(Profit)/loss on disposal of fixed assets
NET CASH INFLOW/(OUTFLOW) FROM
OPERATING ACTIVITIES
CASHFLOWS FROM INVESTING
ACTIVITIES:
Interest received
Income received from JV
Purchase of property, plant & equip
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|2023
£
2,753
71,550
(110,676)
5,326|£
(250,092)
139,064
(81,718)
(2,753)
54,232
(68,447)
(5,326)|2022
£|£
(20,839)
137,887
(67,070)
(135)
125,017
113,382
(6,100)|
|---|---|---|---|---|
|||(215,040)
(31,047)|135
57,217
(232,574)
6,100|282,142
(169,122)|
||||||
|||(246,088)
1,235,602||113,020
1,122,582|
|||989,514||1,235,602|
_Page 21_
## Focus Birmingham ACCOUNTING POLICIES for the year ended 31 March 2023
## **BASIS OF ACCOUNTING**
The financial statements have been prepared in accordance with the Statement of Recommended Practice, “Accounting and Reporting by Charities” applicable to 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. The financial statements are prepared in sterling which is the functional currency of the charity.
## **CONSOLIDATION**
The financial statements consolidate the results of the charity and its wholly owned subsidiary Focus Care and Support Limited. The results of the subsidiary are consolidated within these Group accounts.
Investment in the joint venture TLC Lotteries Limited, where the group holds a significant interest, jointly controlled with Birmingham Hospice and Acorn Children’s Hospice Trust has been included in the group financial statements using the last audited accounts as at 31[st] December 202.
Where the financial period end of the joint venture is not consistent with that of the group, the results of the joint venture are included in the consolidated financial statements using statements prepared no more than three months prior.
## **GOING CONCERN**
The charity has prepared a detailed budget which indicates 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 is estimated to write off the cost of all tangible fixed assets over their estimated useful lives, as set out in the accounting policy on the following page.
_Page 22_
## Focus Birmingham ACCOUNTING POLICIES for the year ended 31 March 2023
## **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.
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.
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 tangible 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.
_Page 23_
## Focus Birmingham ACCOUNTING POLICIES for the year ended 31 March 2023
## **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
## **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.
_Page 24_
## Focus Birmingham ACCOUNTING POLICIES for the year ended 31 March 2023
## _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.
## **VOLUNTARY HELP AND GIFTS IN KIND**
No monetary 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 2023. 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**
Investments in the subsidiary and the joint venture TLC Lotteries are recorded at cost in the charity. For the group the joint venture is reported using the ‘equity method. This method reflects our proportionate share of the joint venture's assets, liabilities, revenues, and expenses in the consolidated financial statements
_Page 25_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
|**1**
**DONATIONS AND LEGACIES**
Donations and grants
Legacies
**2**
**INVESTMENT INCOME**
Short term deposits – interest receivable|2023
£
226,529
69,965
296,494
2023
£
2,753
2,753|2022
£
245,555
106,954|
|---|---|---|
|||352,509|
|||2022
£
135|
|||135|
**3 TOTAL EXPENDITURE**
|Generating voluntary income
Multiple disability
Low vision
Community
Information and advocacy|Staff
Costs
£
74,839
2,026,037
85,203
181,484
-
2,367,564|Other
Direct
Costs
£
17,328
761,192
175,997
50,856
8,046
1,013,419|Allocated
Costs
£
2,920
154,945
21,332
6,539
1,621
187,358|Group
Total
2023
£
95,087
2,942,174
282,533
238,879
9,667
3,568,341|Group
Total
2022
£
103,678
2,577,493
252,404
318,425
13,385
3,265,385|
|---|---|---|---|---|---|
_Page 26_
## Focus Birmingham
## NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2023
|**3 TOTAL EXPENDITURE (continued)**
SUPPORT COSTS
General office
Finance office
Human Resources
Information Technology
Central Resources
**Total**
Other direct costs include:
Depreciation and amortisation
Owned assets
Auditor’s remuneration
For audit services
For other services – Tax
Operating leases
Hire of plant and machinery
Rental of premises
Motor Vehicles|Charitable
activities
£
314,745
111,595
196,295
61,752
262,249
946,637|Raising
Funds
£
10,274
3,643
6,407
2,016
8,560
30,900|Group
Total
2023
£
325,019
115,238
202,703
63,767
270,810
977,537
2023
£
139,064
16,000
2,500
6,825
164,690
43,215|Group
Total
2022
£
204,273
145,846
150,649
69,412
298,251|
|---|---|---|---|---|
|||||868,431|
|||||2022
£
137,887
14,190
1,950
3,840
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.
This year we see the introduction of Motor leases. During the year 2020 we anticipated the delivery of several newly adapted vehicles for use of transport within our charitable activities. Unfortunately these are still yet to be delivered. In the meantime four new leases for adapted vehicles were entered into to ensure services could still be carried out at the expected level.
_Page 27_
## Focus Birmingham
## NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2023
|**4**
**EMPLOYEES**
Fundraising
Multiple Disability
Low Vision
Community
Departmental Support
Average during year|2023
No.
2
95
3
5
24
129|2022
No.
2
89
3
9
24
127|
|---|---|---|
Average number of employees includes casual workers whose salary costs are included below.
|**Staff costs**
Wages and salaries
Social security costs
Other pension costs|2023
£
2,111,479
372,545
139,282
2,623,305|2022
£
2,084,235
144,301
86,954
2,315,490|
|---|---|---|
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 £173,665 (2022: £212,473).
During September 2022, the Chief Executive Officer vacated the position and the Director of Services became the interim Chief Executive Officer until January 2023, whereby the role became permanent.
There was 1 employee whose annual earnings (including taxable benefits in kind) fell into the band £60,000 - £60,999 (2022: 1 employee); there were pension contributions of £1,340 for that employee (2022: £3,067).
During the year to 31 March 2023 there was one non contractual payment in respect of a resignation of £31,587. £1,587 of which became a taxable benefit (2022: There were no similar payments).
## **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 (2022: £1m) of cover has been purchased at a cost of £3,080 including IPT (2022: £2,800). An amount of £1,728 including VAT was paid in recruitment fees for two new Trustees, of which both vacancies remain open.
_Page 28_
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
## Focus Birmingham
## **6 INTANGIBLE FIXED ASSETS Group and Charity**
|1 April 2022
Additions
Amortisation
31 March 2023|£
52,479
-
-14,994
37,485|
|---|---|
Intangible Fixed Assets comprises software developed to deliver the befriending proposition.
## **7 TANGIBLE FIXED ASSETS Group and Charity**
|Cost:
1 April 2022
Additions
Disposals
31 March 2023
Depreciation:
1 April 2022
Charge for the
year
Disposals
31 March 2023
Net book value:
31 March 2023
31 March 2022|Short
leasehold
building
improvements
£
1,508,638
37,753
-
1,546,391
763,907
55,892
-
819,800
726,592
744,731|Plant,
furniture,
fixtures
and fittings
£
484,338
70,366
-
554,704
393,571
31,902
-
425,473
129,231
90,766|Motor
vehicles
£
255,588
-
(45,363)
210,225
230,751
12,450
(45,363)
197,838
12,388
24,837|Computer
and
technical
equipment
£
142,868
2,557
-
145,425
83,830
23,826
-
107,656
37,769
59,038|Total
£
2,391,432
110,676
(45,363)|
|---|---|---|---|---|---|
||||||2,456,745|
||||||1,472,060
124,070
(45,363)|
||||||1,550,766|
||||||905,979|
||||||919,372|
Leasehold Building Improvements consists of refurbishment and expansion of the Resource Centre Building and the Elizabeth Gunn Centre.
_Page 29_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
## **8 INVESTMENTS**
|At 1 April 2022
Additions
At 31 March 2023|Investment
in joint
venture
£
5,000
0
5,000|Investment
in
subsidiary
£
100
0
100|Total
investment
£
5,100
0
5,100|
|---|---|---|---|
## **Investment in subsidiary**
The group owns the entire share capital (comprising ordinary shares of £1 each) in the following:
|**Subsidiary undertakings**|**Aggregate Capital and Reserves**|
|---|---|
|Focus Care and Support Ltd
(13548211)|100|
The principle activity is the provision of innovative services to blind, visually impaired and those with profound disabilities across the West Midlands. The profits of the subsidiary are gift aided to the charity
|**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 2023 the charity’s share of the Company’s profit was £81,718 (2022: £67,070) and net assets as at the date of the company’s last audited accounts (31 December 2022) were:
|Represented by:
Share of gross assets
Share of gross liabilities|£
92,724
(31,368)|
|---|---|
||60,906|
_Page 30_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
|**9**
**DEBTORS: Amounts falling due within one year**
Group
2023
£
Fees and grants receivable
295,525
Amounts due from subsidiary undertaking
-
Other debtors
9,119
Prepayments and accrued income
101,600
406,245|Group 2022
£
306,814
-
28,709
55,083
390,606|Company
2023
£
216,264
117,952
9,119
101,600
444,935|Company
2022
£
236,843
69,871
28,709
55,083
390,506|
|---|---|---|---|
## **10 CREDITORS: Amounts falling due within one year**
|Taxation and social security
Amounts owed to subsidiary undertaking
Other creditors
Accruals
Deferred income|Group
2023
£
22,086
-
104,050
139,260
90,835
356,230|Group
2022
£
32,355
-
80,920
148,206
78,743
340,224|Company
2023
£
-
-
104,050
104,660
90,835
299,545|Company
2022
£
32,355
-
80,920
148,206
78,743
340,224|
|---|---|---|---|---|
## **11 CREDITORS: Amounts falling due after more than one year**
|Deferred income
Balance at 1 April 2022
Income deferred in the year
Deferred income released to SOFA
Balance at 31 March 2023||Group
2023
£
58,336
Group
2023
£
151,662
26,779
(29,271)
149,171|Group
2022
£
72,919
Group
2022
£
206,123
14,046
(68,507)
151,662||Company
2023
£
58,336
Company
2023
£
151,662
26,779
(29,271)
149,171|Company
2022
£
72,919
Company
2022
£
206,123
14,046
(68,507)
151,662|
|---|---|---|---|---|---|---|
Deferred income includes lease income paid in advance amounting to £58,336 (2022:72,919) which will be recognised as income in the SOFA over the life of the lease (4 years remaining) of which £14,583 will be recognised in 2023/24.
_Page 31_
Focus Birmingham NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
## **12 RESTRICTED FUNDS**
|Fixed
Assets
£
Other
£
1 April 2022
294,473
137,816
Grants & Donations received
-
20,793
Expenditure before transfers
(55,067)
(20,327)
Transfer
-
-
31 March 2023
239,406
138,282
Fixed
Assets
£
Other
£
1 April 2021
147,912
303,253
Grants & Donations received
-
30,312
Expenditure before transfers
(40,623)
(8,565)
Balance sheet reclassification
187,184
(187,184)
Transfer
294,473
137,816
31 March 2022|Total
2023
£
432,289
20,793
(75,394)
-
377,688
Total
2022
£
451,165
30,312
(49,188)
-
432,289|
|---|---|
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 32_
Focus Birmingham NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
## **12 RESTRICTED FUNDS**
Other restricted funds comprise sundry grants, legacies and donations for specific purposes. As at 31 March 2023 the following amounts were held:
|**Low Vision Funds**
Sutton Site Project
Emotional Support for Children
Low Vision Equipment
Flooring
Other
**Community Services**
Sports and Social Club Development
Other Befriending Projects
**Day Care Services**
Building Enhancement
Grounds Enhancement
Hub Connectivity
Group Activity Funds
**13**
**UNRESTRICTED FUNDS**
**General fund:**
Balance b/f
Net (expenditure) / income for the year before transfers
Transfers (to)/from
Designated – fixed asset fund
**Designated fund – Fixed Asset Fund:**
Balance b/f
Transfer from/(to) General
fund||2023
£
1,125,987
(195,491)
(26,679)
903,816
2023
£
677,378
26,679
704,057||£
**39,769**
15,553
355
14,401
8,750
730
**39,695**
35,644
4,052
**58,815**
17,344
8,898
10,000
22,574
2022
£
1,077,036
(1,963)
50,914
1,125,987
2022
£
728,292
(50,914)
677,378|
|---|---|---|---|---|
_Page 33_
Focus Birmingham NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
## **13 UNRESTRICTED FUNDS (CONTINUED)**
Transfers to and from the designated fixed asset fund in the charity are 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**
|
**March 2023**
Restricted funds
Unrestricted funds
- General fund
- Designated funds
**March 2022**
Restricted funds
Unrestricted funds
- General fund
- Designated funds|Fixed assets
£
239,407
60,906
704,057
1,004,370|Current assets
£
138,281
1,257,477
-
1,395,759|Total liabilities
£
-
(414,567)
-
(414,567)|Total Net
Assets
£
377,688
903,816
704,057|
|---|---|---|---|---|
|||||1,985,562|
||294,473
50,738
677,378
1,022,589|137,816
1,488,392
-
1,626,208|-
(413,143)
-
(413,143)|432,289
1,125,987
677,378
2,235,654|
## **15 ANALYSIS OF CASH AND CASH EQUIVALENTS & CURRENT INVESTMENTS**
|**Company**
Cash at bank and in hand
32 day notice account
Total cash and cash equivalents|2023
£
789,514
200,000
989,514|2022
£
1,035,602
200,000
1,235,602|
|---|---|---|
_Page 34_
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
## Focus Birmingham
## **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|2023
£
77,070
207,960
285,030|2022
£
7,513
10,597
18,110|
|---|---|---|
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 2023 the charity had existing capital commitments of £21,151(including irrecoverable VAT) to refurbish Sight Loss Support Services (2022: £23,883 to refurbish Sight Loss Support Services).
## **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 (2022: £164,690) and rent paid was £164,690 (2022: £164,690).
_Page 35_
Focus Birmingham NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
## **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:
|Balance b/f
Share of Profits
Profits Received|2023
£
45,738
81,718
(71,550)
55,906|2022
£
35,885
67,070
(57,217)
45,738|
|---|---|---|
## **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|2023
£
208,573
208,710|2022
£
234,344|
|---|---|---|
|||229,127|
_Page 36_
## Focus Birmingham
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
## **22 INCOME AND COSTS FROM TRADING ACTIVITIES OF THE SUBSIDARY**
## Focus Care and Support Limited (13548211)
The Charity has a wholly owned subsidiary of Focus Birmingham, incorporated in England and Wales.
The purpose of the company is to operate as the contracting party for local authority and healthcare body funded individuals using the Group’s services.
This company has committed to pay its distributable profits to the Charity by Gift Aid. A summary of results is shown below:
|_Note_
**TURNOVER**
Trading activities
**EXPENDITURE**
Administrative expenses
**PROFIT ON ORDINARY ACTIVITIES BEFORE**
**TAXATION**
6
Taxation
6
**TOTAL COMPREHENSIVE INCOME FOR THE**
**FINANCIAL PERIOD**
**The aggregate of subsidiary’s assets, liabilities**
**and funds is as follows:**
Total Assets
Total Liabilities
Net Funds||**2023**
£
376,872
(310,571)
66,301
-
66,301.00
**2023**
241,040
(174,638)
66,401|**2022**
£
-
-|
|---|---|---|---|
||||-
-
-
**2022**
70,071
(69,971)
100|
_Page 37_
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2023
## Focus Birmingham
## **23 PRIOR YEAR FUND ANALYSIS**
|**INCOME FROM:**
Donations and legacies
**Other trading activities:**
- fundraising
Investments
Share of JV Turnover
**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**
Less Share of JV Turnover
**NET INCOME**
**EXPENDITURE ON:**
Raising funds:
- fundraising
**Charitable activities:**
- multiple disability
- low vision
- community
- information and advocacy
**TOTAL EXPENDITURE**
**NET INCOME / (EXPENDITURE) BEFORE**
**SHARE OF JOINT VENTURE PROFITS**
Share of JV profits
**NET INCOME / (EXPENDITURE) AFTER SHARE**
**OF JOINT VENTURE PROFITS**
**RECONCILIATION OF FUNDS:**
**FUND BALANCES AT 1 APRIL 2022**
**FUND BALANCES AT 31 MARCH 2023**|Unrestricted Funds
£
322,197
1,805
135
193,863
2,262,928
204,128
300,015
6,100
35,273
14,583
3,341,027
(193,863)
3,147,164
103,678
2,536,260
244,907
317,967
13,385
3,112,519
3,216,197
(69,033)
67,070
( 1,963)
1,805,328
1,803,365|Restricted Funds
£
30,312
-
-
-
-
-
-
-
-
-
30,312
-
30,312
-
41,233
7,497
458
-
49,188
49,188
(18,876)
-
(18,876)
451,165
432,289|Total Funds 2022
£
352,509
1,805
135
193,863
2,262,928
204,128
300,015
6,100
35,273
14,583
3,371,339|
|---|---|---|---|
||||(193,863)
3,177,476|
||||103,678|
||||2,577,493
252,404
318,425
13,385|
||||3,161,707|
||||3,265,385|
||||(87,909)|
||||67,070
( 20,839)|
||||2,256,493
2,235,654|
## **24 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 38_