NABS (A charilable company limitcd by guarante¢) REPORT AND FINANCIAL STA'I'EMENTS Year ended 31 Deccmbcr 2023 Charity No. 1070556 Company Registration No. 03588945 N A B S (A charitable company limited by guarantee) CONTENTS Page Company Infomiation Trustees, Report 2-11 Statement of Trust¢es' Responsibilities 12 Inde￿ndent Auditor'5 Rcport 13- 15 Consolidated Statement of Financial Aclivilies 16 Balance Sheets - Consolidated and Charity 17 Consolidated Cash Flow Statom¢nl 18 Accounting Policies 19-22 Notes to the Financial Statements 23-34 N A B S (A charitable company limited by guarantee) COMPANY INFORMATION TRUSTEES AND ADVISERS N Patel (Chair) P Hughes J Salinson A Cook J Peppiatt K Smith {Trea5urer) H Nicklin S Daglish N Bell D Carter J Healy COMPANY SECRETARY B Lawson REGISTERED OFfIcE 8 Smarts Place London WC2B 5LW INDF.PENDf.NT AUDITOR RSM UK Audit LLP 25 Farringdon Street London EC4A 4AB BANKF.RS The Royal Bank of Scotland 36 Andrew Square Edinburgh EH2 2YB SOI.ICITORS Womble Bond Dickinson 4 MO￿ London Riverside London SEI 2AU INVESTMENT MANAGERS Pocock Rutherford & Co 111-113 High Street Berkhamsted Hertfordshire HP4 2JF Page I N A B S (A charitable company limited by guarantee) TRUSTEES, REPORT REFERENCE AND ADMINISTRATIVE INFORMATION The Trustees (who are also company d1￿CtorS for the P￿￿OseS of company law) are pleased to present their Report and Accounts for NABS for the year ended 31 December 2023. The financial statements comply with the Charities Act 2011. the Companies Aci 2006. the Memorandum and Articles of Association, and Accounting and R¢wrting by Charilies.. Slalemcnt of RccDmm¢nded Praciice applicable to charities preparing their accounts in a¢¢ordance with the Financial Rcporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l October 2019). NABS is registered with the Charity Commission undcr registration number 1070556 and with Companies House under registration number 03588945. NABS operates across the United Kingdom. Details of NABS, trustees and senior staff who served during thc year and sincc the year end are Set out below. Trustees gnd members of Executive Committee K Fowler K Smiih• J Salinson P Hugh¢s S Daglish N Palcl* M Bush A Cook H Nicklin. N Pertwee J Peppiatt J I Icaly D Carter N Bell RcsiEned 5th May 2024 Treasurer Trustee, Support Services Chairnian Resig)ned 23 Novembcr 2023 Resigncd 24 April 2024 Appointed I 51 June 2024 Senior Slaff S Todd* ChiefExecutive * All 1'rustces and senior staff noted with asterisks arc also members of the Finance and Governance Committces. Page 2 N A B S (A charitable company limited by guarantee) TRUSTEES, REPORT STRUCTURE, GOVERNANCE AND MANAGEMENT NABS was founded in 1913. NABS is a charitable company limited by guarantee incorporated on 26 June 1998 in England and Wales. The charity was established under a memorandum of association which established the objects and ￿werS of the charitable company. NABS has a wholly owned trading subsidiary, NABS Trading Limited incorporated in England and Wales whose principal activity is the rnnning of fundraising events. Part of the surpluses gencrated by NABS Trading Limited are distributed to NABS under the Articles of Association. NABS is governed by its Executive Committee which consists of elected Truslees and key senior management of NABS apwinted as prescribed by the Articles of Association. Executive Committee meetings are held typically 4 tim¢s a year. I"hey are used to review performance over the Cu￿ent year and agrec key objectivcs for the next and longyer tern) depending on the strategic planning cycle. Prescntalions and discussions in each meeting keep the Trustees infonned about the work of NABS and all latcsi dcvelopments. Responsibi lity for r¢vi¢wing key areas of activity dnd policy is delegalcd to sub-committ¢es that report back lo the Executive Commilicc. 'I'he su&committees monitor and 8crntinis¢ the work of NABS. The day-lo-day running ol NABS and NABS Tradin& l.imited and the cxcrcise of ex¢cutive responsibility is dclcgatcd to thc Chicr Executive (CFO). The current sub-cornmittees are: Finance Comm ittee (including inveslments, pension5, audit, and rernuT]eration)- mainlains an overview of the finanLial strategy, perfomiancc and operdlions of NABS to ensure crrc¢tive oversight of NABS, resources. The Committcc rcviews and appraises the managemcnt of NABS, investments with quarterly presenlations from Ihc investment fund manabiers. Thc commilte¢ periodically reviews NABS Support Granls. Govcrnance Committee - ensures NABS is complying with all its lebjal obligations, has comprchcnsive policies in place, monitors risk and commcndations and complaints. Third p4rty indemnity provision for Direelors Qualifying7 third party indemnity provision is in place for thc bcnefil of all direLtors of the company. Trustee Recruitmen( Induction and Training I'ruslccs are sought primarily by way ofcxplorotion ofthe field of potential sultable candidales through discussion by existing Trustee4 other mcmbcrs of the Executive Committcc and cxtcrnal recruitsnent advisors to ensure appropriate representalion across NABS Ben¢ficiary audi¢nccs and increase diversity. Following ihe directives laid down by the Govcrnance Committee, new Trustees have a comprchcnsivc induction, rcccivc a role description and briefing on ihe Charity Commission's "The Essential 'fru.stee: what you need to know, what you need to do" Alongside th¢ Trustee Inductions, Trustccs also receive F¢riodic training, which is carried out by Womble Bond Dickinson. Governance ha8 bccn furthLr reviewed a¥ain5t the latest Charity Governance Code and an action plan drawn up that focuses on regular review and constant improvement is in action. Trust¢es are appointed by the Executive Committee of the Charity. Management In 2023 the shape of the pennanent team 15 structured within four core teams: Culture Change and Wellbeing Services Commercial and Marketing Transforniation Corporate Services In 2024, the Transforniation project is complete bringing the structhre back to three core teams. Each team is led by a director who reports directly into the CEO. NABS, Articles of Association set out the ability of the Trustees to delegate their authority to the CEO and other groups and committee5 as required. The ternis of references for committees and delegated authorities were all reviewed and thoroughty updated during 2020. Page 3 N A B S (A charitable company limited by guarantee) TRUSTEES, REPORT The CEO reports to the Executive Committee. Specifically, the objectives of the CEO are set and monitored by the Finance Committee. The Finance Committee recommends the pay and remuneration for the CEO and oiher key management personnel to the Executive Committee using industry (advertising and media) and charity benchmarks and reviews and monitors the pay of the senior leadership team and other personnel through detailed budget reviews. The CEO and management are in turn supported by opxrational sub-commillees focusing on Finance which typically meets monthly, and a quarterly Governance Committee as noted above. Fundraising NABS is the benevolent society for the advertising, markding and media indusiry and is fundcd primarily by industry organisations who provide the Charity wilh volunlary, annual d()nalions. Alongside corporate fundrdiSing NABS runs a calendar of fundraising events and reccives donations from individutils and 3rd party Lommunity fundraising events and raffle& Alongside voluntary donations NABS boosts its charilablc income ihrough a commcrcial trading arm whiih offers the indusiry paid tor trainin&i including Fast Forward, Advance Training and timeTo. Profits from this commcrcial offer tire gifted back to NABS Charity to support its charitable objectives. We do not approach thc public for donation5 and cU￿entlY do not USC Profcssional partners or commercial fundraisers. Wc havc not reLeived iiny complaints rc8arding our fundraisin8 (2022.. none). We do not ask for donations from vulnerable people, and should we rcceive an unsoliciled donation that we would consider unusual from a bcncficiary we have processes in placc lo assure us of their mental capacity in which to make any such donation. STRATEGIC REPORT, OB.JECTIVES AND ACTIVITIES NABS is ihc supp(rl organisation for the advertising, marketing, and media industry. NABS, vision is to advance the mcntal wcllness of everyone in the UK advertising and media industy. In 2023 we streamlined our communications across 3 main service pillars, to demonstrate our offer in a more accessible way for everyone working in our industry. We conncct ￿Ople and communities across the industy to drive change. We dcvelop skills and mindsets to help pcoplc lo thrive. We support individuals when they nccd assistance and guidance to slay on balance. 2023 wa5 another challenging year for NABS and the industy as a whole and whilsl UK ad spcnd was reported to have grown by 6.1 % in 2023. This equated io 81.2/0 conlraction in real tcmls afler accounting for high inflation, mcanillg a flat ycar and a cautious one for our induslry. 'll]is was reflected in NABS, income. NABS finished the year with a £669k deficit position (excluding office move costs), against a backdrop of ncreased year-on-year servicc demand, Our Advice Lin¢ has seen a sustained increase in calls in recent years, with a 13 % hike year-on-year following a 530/0 increase the year before, representing 4,500 calls in 2023. In 2023 NABS supported 2￿/0 more people through the dedicated Advice Line. Emotional support was once again the number one reason for calling NABS at one-third of calls. calls specifically around mentsl health represent l in 5. Since 2021, demand for our grants and therapy referral service have doubled, with one-third more people supported in 2023 than 2022 as more people seek out proactive help for their mental and flnancial wellbeing. Our community engaged wilh us over14,500 times through our support service5, events, workshops, and trainin& a 13 % increase from the previous year. Page 4 N A B S (A charitable company limited by guarantee) TRUSTEES, REPORT The Trustees and the Management Team continued to work closely together in 2023 to ensure that NABS could respond to everyone who needed it, ensuring greater accessibility of our service provision, including the creation of two new products, Explore and Connect, to provide wellbeing and mental healih support to individuals and groups in another challenging year. NABS Aims Towards the end of 2022 NABS resel its strategic objectives for 2023, building on its achievements, laying out its overarching aims lo 2025 as follows.. 'I'o achieve financial sustainability and income growth - return the organisation to breakeven by the end of 2025 by diversifying and growing revenue and reducing overheads. 2. To increase market penetration- support ihe UK media and advertising industy's Lommercial successby helping more individuals thrive than cvcr before. 3. To build community culturc across the industry - create & nurturc tru8tcd industry communities which work ￿gether to influence change, g7uide rnanagers, and support all individuals to advanc¢. 4. To slrcngthen NABS, reputation to be rccogni8cd as the essential industry body for advancing mental wellness across our whole communily. NABS, Actlvltles NAII8' principal activities during 2023 to mecl thc nccds ofour audience and deliver public benefit were: Providing a dedicatcd 1:] Advi¢¢ Line service, offering expcrt .8UPPQrt and guidancc, from career transitions lo personal struggles, for example, helping to addrc$8 thc impact of redundancy, 111 mental heallh, and the cost-of-living Lrisis. Providing l..1 coaching for those who arc in or out of work and are facin&, personal or work-relalcd challenges. CoaLhing topics includc work-life imbalanLe, Lareer development, conflict, stress and bumout. Providing, l.. I therapy via a rangc of different therapeutic intcrvcntions, supporting with cmolional distress and mental hcalth challenges includingy anxiety, dcprcssion, trauma, post-tydumalic slrcss dlsorder and personalily disordcrs. Providing 2417 support via our SupportBol, an online service which signposts and provides inforniation acros8 a range of topics, from redundancy io anxiety, and digital guidance and downloadable guidcs on Ihe NABS Knowledge Hub to help pcopl¢ navigate perional and professional challenges. Offering) monthly online Explorc sessions, desigyned to help pcoplc undcr.stand cmersing industry or societal issues through collectiveexploration in a safe space. Coach-led these are practical and infonnalivc scssions, bringing people from across ihc industry on topics including money and mental wclllxing, navigating Lhallenging conversations, supportin&i e￿h other in the workplace, Offering online workshops on topic8 including understdnding resilience and the impact of stress, how to d¢v¢lop s¢lf-confidcnce, how to dcvelop rdPPOrt and influencing skills, how to bc morc inclusiv¢ in the workplace. Offering quarterly Connect sessions, designcd to hclp people navigate indu5ty or societal issues that impact our community's mental wellness. Psycho-cducator led, these are educative and 5UPPOrtive group spaces, woviding people with thc opportunity to slow down, connecl wilh othcrs and leavc with increased self-awareness, acknowlcdgcment of emotions, and meaningful 5clf-care tools. "fhese 5ession5 focus on topics including the impact of global conflict, redundancy & organisational change, anxiety, bcrcavcmenl. Running a serie5 of NABS Talks bringing thc industy community together to inspire and educate on topics affecting rnass part5 of our industry, including managing your money during the cost-of-living crisis and future proofing your finances, parenting, and workllife blend. Rolling out the NABS podcast, an opp)rtunity for people within our industry to hear from leading figures in our community as they reveal how they sUPPOrt their mental wellness and that of those around them. Topics include trans visibility and pride, men's mental health and suicide, building community and finding joy, how to give care and connecL building self-esteem, menopause. Campaigning to end sexual harassment within the industry, in partnership with industry bodies to support and influence a safer environment for all. Page 5 N A B S (A charitable company limited by guarantee) TRUSTEES, REPORT Running NABS, commercial training offer, via the NABS Trading company, included timeTo training and a suite of products under the NABS Training offer. All profits go back to NABS Charity creating an additional income stream and engagcment tool. Promoting NABS work to our donor% supporters, and new sector contacts through l .' I meetings and staff p￿sentationS to ensure awareness of NABS is high, to encourage more people to reach out for our tailored support. Collating feedback from users and industry contacts, alongside wider industry, and organisalional research sources to ensure our activity and producis are continually contextualiscd and developcd through relevant industry insight. Rlsk management Th¢ Governanc¢ Committee of the Charity updales and reviews the risk registcr at regular committec meetings and revicws and forniulates risk mitiLpation plans which il thcn rccommcnd8 lo thc Excculive Committee. All areas of the Charity are covered by a comprehcnsive risk assessmenl. In 2023 we conbid¢r our princip411 risks to be: NABS, ability to shift its income model to new funding sources such as communily-bascd fundraising and commercial training. diversifying income from onc that is heavily rcliant on media donations and their activation. NABS, ability to servicc d¢mand ihrough new and more efficient ways as the mental health crisis conlinucs across the industry seeingi demand for NABS services continue to grow in 2024. NABS, ability to prove ils value and increase ils reputation and reach lo cncourage continucd financial support. eng)agyernent and service take up in a highly compclilivc mcntsl hcalih and mental wellbeing marketplace. Achievement5 8nd Performance The following objcctives. were updated and revised on the previous year's objectives to measure performance and success in 2023, as follows: 20230bjcclives'. To grow top linc incomc by £323.6k in 2023 (total in¢om¢ tar&7d of £2.7rn) through d¢¢p¢r industry engagemenl, knowledge, recognition, and value. To incrcasc service usagye by I l 0/0 Wlth the same cost basc, ensuring advancing th¢ wcllbein8 of our community is at the heart of what we do in a volatile timc. 3. To create sustainable, efficienl, essential communilies which stimulate a culiure of belonging and in turn, brand value & loyalty which drives contribution, donations & collective industry change. 4. To be recogniscd as the essential industy body for advancing mental wellness across our whole community and therefore supporting long terni growth. During 2023 we achieved Increased service usage and market penetration across the industry for those in need. Ov¢r l 0.000 people accessed NABS. core services, benefiting from expert guidance, inforniation, and support to improve deal with the challenges facing them and in support of advancing their mental wellness, representing a 580/0 increase in demand on 2022. We've seen a sustained increase in the number of calls to our Advice Line in recent years, with a 13 % hike year-on-year following a 530/0 increase the year before, representing 4,500 calls in 2023. Emotional support remains the top reason that people call our Advice Line, at one-third of calls. calls specifically around mental health represent l in 5. Redundancy and financial assistance remain in the top 3 reasons for contact. We hel￿d 200/0 more people on our Advice Line than in 2022, as awareness of the breadth of ways that we can support people 15 I￿reasIng. Our redundancy guide helped over 4,500 people navigate challenging times last year, seeing a 730/0 increase in access since 2022. as our industry community experiences challenging times. Page 6 N A B S (A charitable company limited by guarantee) TRUSTEES, REPORT We develO￿d a new offer of expert led safe spaces, Explore and Connect sessions, and saw a 58/. increase in access to our group support spaces and workshops. Taking a I.. many approaches where appropriate is helping us to reach more Wffiplc and ai ihc poinl of prevcnlion. Conscquenily, pcoplc can build community and nornialisc some experience% in response to industry, wcietal and global Lhavbyes and challenges. Since 2021. demand for our grants and ihcrapy rcferral scrvice havc doublcd. with one-lhird morc people supportcd in 2023 than 2022 as more people seek out proactive help for their mental and financial wellbeing. In 2023 we awarded 84 granls, hclping people primarily in response to the cost-of-living crisis. We were a partner to Creative Equals progrdmme Disabled Creatives. This programmc offered disabled and neurodivergient creatives in the industry tools. knowled8e. and support of workin8 Wlthin the industry. NABS awarded grants to eligible creatives from the programme, helping lo remove some of the financial barriers in altending the course. 120 ￿ople were supported by l.. I coaching, and each had an averdgc of 2 sessions. this was essential for thosc who need 8omc deeper work in addressing areas such as low confidence, workload pressures, navigating Conflict. Over 1,300 pcoplc attcnded NARS, online workshops Ihis year for SUPPOrt in responding to pressure, and growing LonfidenLe, rapport and influencing skills in ihcir rolcs at work and beyond. We launLhed the NABS podcast, an opportunily for people within our induslry lo hear from leading figures in our community as they rcv¢al how they tsupport iheir mental wellness and that ot'those around them. Topics includc Irans visibility and pride, men's mental health and SUiLide, building community and finding joy, how lo give Cdre and connect, building sclf-eslcem, menopause. Our communiiy engaged with us over14.500 limes through our supporl services, events, workshop4 and Iraining, a 130/0 increase from the previou8 ycar. Feedback on NAFJS services in 2023 rcmained high. Of those who completed feedback fonns: I OOO/o fclt bcltcr infornied by using the Advice Line and 95 % rated il an exLellent safe space to sharc. I OOO/ts would recommend NABS coaching io a friend or colleague. 770/0 said the impact a Support Grant had on thcir CTrcumslanccs was very posilivc and 230/0 said the impact was somewhat posilivc. 85 /0 satd therapy had a high positive irnpath on their abilily to cope with challenges. 93 % of respondcnls who answered ihe question "How likely would you recommend a NABS workshop or Explore session to a friend or collea8ue?" (on a scale of l-l O) rated it 7 or higher. Through NABS, expert facilitation of timeTo training, 2400 pcople werc trained in 2023. This training specifically addresses raising awareness of sexual harassment in the workplace. Increasing NABS funding lo support moro individuals acr055 Ihe industry. In 2023 thc ovcrall income goal was to growtop line income with a total income larget of £2.679m, through dccp¢r industry cngagement, knowledge, recognition, and valuc, with ihe following achievcmcnts and SUCCCSS: We did not meet our incomc targels set for 2023, however we still achieved a 12 % income gyrowth of £244k, which is considered an achievement and a dedicated effort in a tough market, with various wins to c¢l¢brate Ihroughout the year. Donations from media owners in the forni of media donations were grown in 2023 by ovcr £320k due to an active strategy of maximising donor conversions through enhanced media agency ￿latIonS and many stronger direct media owncr rclalionships. In 2023 NABS partnered with the OMG Group to help open more opwrtunitics for NABS to convert its media pledge5 and generate more income. NABS, flagship fundraiser Stranger Than Summer saw both income growth (18 / ), and engagement fmm new companies across th¢ industry. through an enhanced icam of committee members working on our behalf on NABS to help sell tables and increase evcnl profils. A ¢ommcr¢ial training pivot to grow future income through a charity ta5tei strdtegy paid off in 2023 5eein8 commercial training bringing in 15D/D income year on ycar, with all profils helping to ￿rther NABS charitable efforts. More than 2,400 people across the industy came together to rdi5e funds for the charity through its in- person events, ranging from its flagship gala event Stranger than Summer to sporting events and quizzes Page 7 N A B S (A charitable company limited by guarantee) TRUSTEES, REPORT including the Scottish Golf Day and the Manchester Fashion show. These events boosted NABS income and engiigvd industry ernployees across the country with a small increase in tern)s of funding year-on- year of2/0. Building Community Culture In 2023 NABS, strategy d¢velopment looked at joining the dots between businesses. issues, and working cultures. bringing people together to advance the industy. We drove this airn in 2023 through NABS events. discussion foDJms, research. and engagement with various community groups to bring alxTrut enhanced value to our industry. The main driver of our community stralcgy dcvclopmcnl was a cornmunily consuliation piccc of work callcd 'AII Ears. that saw NABS engage wilh ihe industry at every level to ensure we were supportin&, the needs of individuals in the very best ways. The work involved a 6-month consultation where we reached into every part of our community. du8 deeper for better understanding, and committed to advancing what we had learnt. We carried out 67 in-depth conversations, in groups and individually. with p¢ople in every part of our industry and at every stage, also conducting two pulse surveys with a representative sample of1,121 people. In Octob¢r 2023, we 5har¢d Ihc rc5ults and community recommendation5 Wlth groups of senior leaders and FIR professionals, producing a report for 2024 distribution. 'I'hc community consultation ¢nabl¢d NABS to gyet closer to many of our industry community gTOUPS and support th¢ developm¢nt of our future c(Mnmunity slralegy plans. In 2023 our industry community engaged with us ovcr14,500 timcs Ihrou8h our supporf scrviccs, cvents, workshops, and trainin& a 130/0 incrcasc Irom ihc prcvious year. Enhanced focus on NABS'S community stralegy and 3rd party fundraisingy saw an inLr¥ase of over £20k, wilh Ihc AAR holding a Quiz night in aid of NABS and the Tl.A holding both a halfmarathon and a bike ridc lo bring the advertisingy industry cornmunity closer logether whilst fundraising for NABS. NABS encouraged individual companies to Lreate their community fundraising cvenls t(x), which saw a handfvl of cornpanies holding quiz nights, roundcrs gam¢s and fundraiscrs in aid of NAIIS. To further bring the industry community iogcthcr we launched a Walk and Talk evenl which .saw 74 of our industry community comc tOEethcr lo walk across London and talk openingi about their mental health in a supportivc and safc environment accompanied by the NABS team of coaches, staff, and advisors, Thc NABS tcam were busy meeting people across the industy, up and down the country, reaching over 1,500 people in 2023, shuringy NABS, vision and explaining how we can help thc industry community advance their rnental wellness through staff presentalions and I.. I managerncnl mccting. Strengthening NABS Reputation In 2023 NABS set out the 3-year reputation objective to be recognised 85 the essential industry body for advancin8 mcntal wellness across our whole community and therefore supporting long tcnn growih. The following succe55 was achievcd.. A new brand vision of Advancing Mental Wellness was developed providing the industry with a rnore singular foLus around the core of NABS work for greater cul through. The marketing around NABS offcr was 8lrcamlincd into 3 pillars of ConnecL Develop and Support for a much clcarer and consislcnt slory around NABS work. A CRM focused strategy was develO￿d to enable greater levels of segmentation, targeting and relevant messaging, to underpin increased IT]come and service usage. NABS, marketing focus in 2023 was directed towards promoting the newer l.. many offering alongside redundancy advice as we pivoted our offer. The new NABS podcast was also launchcd in 2023 sharing the mental wellness journeys of a diverse range of people in OUT induslry and had 450 lislcns in 2023. The 2023 Community Consultation. All EaT& launched to inforn] products and se￿1¢¢ d¢v¢lopment. to Te-engage donors and Senior leaders and to deepen the understanding of the new NABS vision of advancing mental wellness. Markcling efforts focused on the collsultation launch, drivinL7 sign ups and responses to the surveys as well as sharing the findings with the industry across a range of events, colltent and comms to deep￿n NABS reputstion and consultative approach. Page 8 N A B S (A charitable company limited by guarantee) TRUSTEES, REPORT NABS aptKaTed in over 80 PR pieces in 2023 ensuring NABS profile and refreshcd vision of advancing ental wellness remained high and front of mind for our supporters, donor4 and 8ervice users. NABS digital resuurce5 such as the KT]owledge Hub and the Support Bol continued to provide a dedicated home for digital advice ar]d has supported individuals across many eX￿rienceS such as redundancy, anxiety, stress. and work pressure. A brand film to was priKluced to support NABS increa5¢d market penetration aim and was showcased at the Stranger Than Summer evenl in June 2023, detailing the story of one of NABS bencficiarics, demonslraling fvrther NABS case for support and the many varied ways NABS can help our industry. Partnered with a global advertising agency to produce 'Throwaway Commenls,, a comprehensivc collection of real-life storics of microaggressions in the workplace. Rdisinbi awareness of the lasting ncgalive impact microaggressions has on p¢ople with the aim to establish more underslanding and wareness Taisin8 of the issue in support of creating more inclusive workplaces within our community. All the above is underpinned by our organisation's eulture. NABS quarterly team days launched in 2022, continued in 2023 to ¢nhance cross d¢partmenl Èeamwork knowledge sharing acro88 NABS. NABS furthered its inclusive practices cross-organisalion training rollcd out around inclusive language, rccognising) language's Impact on pcople, and under5tandingy of langyuagv nuances, We aim to continue building inclusive workpla¢c practices where everyone thrives and in ensuring this education is carricd through to our orfcr and support for our beneficiaries. Cultural cvolution of working practices clcar organisational way8 of working principlc8 dcfined and tcsicd in 2023 in preparalion for an officc movc in early 2024. Wc launched monthly get togethers to build cross-team connections and an inlcrnal communications strategy. Ensuringp that NAFIS Lun continue to deliver ils strategic aims and that teams are motivated, have a sense of purpose and autonomy. PLANS FOR FUTURE PERIODS In Q4 2023 thc NABS leadership team and board of trustCC8 scl out focuscd objectlVC8 for 2024 as part ot. the conlinued 3year plan to eradicate the deficit by 2026. Areas of focus for 2024 included growing income by I l 0/0, increasingy serviLe usage gTrowlh at 80/0 and reducing the deficit by a ￿rther 41 0/0 lo reach a 2024 budg7et deficit posttion of £394k. The strategy in 2024 and 2025 will be to focus on incrcascd visibility, undcrstanding & impact, ensuring NABS is Icading and owning the industry mental wellncss conversations as well as innovating its products and services. An investment budget approved by the trustees in 2024 will enable NABS to progress with these marketing and produLt development aims. I"he following areas are considered of critical importance over the coming years: Continuing to manage costs and efficiencies alongside top line income ￿oWth to return the organisalion to break-even, surplus position by end of 2026. NABS, ability to continue to develop its reputation as the firsl placc to go in the industy for advancing mental wellness. NABS'S ability to demonstrate its value and case for support to existing donors and new busincss opportunities in an increasingly competitive ma￿elplace of new mental health and divcrsity initiatives, all fighting for their share of wallet. NABS. abilily to diversify its iTJcome model and shift make up by growing new income areas such as community fundraising and cornmercial training, and therefore balancing out the overreliance on media donation income. To strengthen the indu5ty c¢)mmunity and prove the case for support around increased connectivity and the power of collective responsibility to drive service usage and income. To focus on a Key Account Management and heighiened levels of CRM to enhance stakeholder communications and long tern] more professional and targeted relationships. Page 9 N A B S (A charitable company limited by guarantee) TRUSTEES, REPORT To continue with the 2023 shift from the historic l-l service delivery model to more ' I to many, provisions for greater market penetration. To roll out the new Tnanager5 product range to support the consultation findings delivering products and service5 that have been identified by the industry as being in great need to advanc¢ the industry's mental wellness. rinally, NABS, ability to capitalise on the growth area of our industry, namely digital media owners and social platfomis to realise income for NABS continued top lin¢ growth and financial sustainability. NABS is committed to using its ￿freshed vision, product lines and enhanced reputation lo make an even bigger difference to Ihe UK advertisin& markelin& and media industry in 2024 and beyond. Wilh increased ambitions for both income and service provision wc know wc can continue lo makc a dirrcrcncc lo the mcntal hcalih of everyonc in our induslry. FIIYANCIAL REVIEW The principal fundin&F sources of the organisation are voluntary income and donations (£2. Im (2022: £1.85m)) and charitable trading activitie5 (£0.6m (2022.. £0.6m)). Thc consolidated results for the end of the year produccd income of £2.7m (2022: £2.5m), against expenditure of£3.6m (2022: £3.6m). NABS'I rading Limited, a wholly owncd subsidiary of thc Charily, 18 rcsponsiblc for ihe organisation of the annual Stranger ihan Summ¢r Charity Ball, Fasl Forward Iraining programme, limeTo trainingy and NABS Training) and eamed a profil before laxation of £233,387 (2022: £197,700) and distributed £232,450 to NABS (2022: £195,118). The operating deficit of the consolidated accounts (includinbi unTeali5ed gain from invcslmcnl asscts of £192,886) was £725,451 (2022: £1,665,570 deficit). The year end net a55ets were £2.9 m (2022: £3.6m). GRANT MAKING POLICY It is NABS, aim, Ihroug)h the provision of. tinancial assislance combined wilh practical support, to help improve and champion the wellbeing) of those in our industry, put ils beneficiaries in a better position for the ￿ture, allow its benefiLiaries to lake charge of their lives and enable its bcncficiarics to livc indcpendcntly. Applications for financial support arc madc by completing an application fom and by providing supportlng inf0rn7alion. 'I'hcsc arc rcviewed io asscss thc appliLant'S Lareer history und finanLial Circumstances a&Fainst NABS, cligibiliiy criieria. Those applicants who meet the criteria are agreed by the Support Team within their delegated amounts or referred up (to the Director, CEO or Trustee) as required. The Finance Lommittee receives an overview of NABS grants monthly. INVESTMENT POLICY AND PERFORMANCE The finance Committee manages the Charity's investments together with an appointed professional advisor on behalf of the Charity. The application of the investment assets is reviewed regularly with a desire to achieve improved investment performance without exposing the charity's assets to unreasonable investment risks. In accordance with the investment policy, investments are held in a discretionary managed portfolio. The NABS listed portfolio has decreased from £2,547,517 to r2,118,450 during the year which included a drawdown of £632,185 to aid cashflow. Although the ma￿etS have continued to be volatile in 2023 due to economic factors the portfolio rallied with an increase of £203,118 (10.60/0) in value shown at the year-end. No targets were set for 2023 nor have been for the year ahead but a regular update on cashflow is key to pinpoint if further drawdown is needed to aid cashflow. Page 10 N A B S (A charitable company limited by guarantee) TRUSTEES, REPORT RESERVES POLICY Consideration for the reserves strategy is nomially made in three ways: Working Capital Medium tem) reserves- unforeseen circumstances Long temi reserves- align¢d with our strategic objectives Based on the risks to income as sct out in this report and accounts, ￿SerVeS are held in case of any sudden decline in income and lo ensure that commitments to providing services for financial support and grants lo bcncficiaries can be made with some confidence whilst ensuring reserves are not held at unnecessarily high levels. As at 31 Deccmber 2023, the Group's free reserves (excluding restricled and designated funds, and tangible fixed assets) amountcdto £2.6m (2022- £3.1 m). With estimated annual ncl expcndilure of£2.8 million perthe2024 QI reforecast budg¢l, this m¢ans 11,2 months forward unreslriclcd CXFenditure would be covered at the year-end. The focus conlinucs to be on a sustainable ￿tUre through technology and innovation lo ¢xpand NABS, reach and bring cultural chanbye focusing on diversity and iT]cIu5i0n. Due to Covid-19 the Trusl¢es reviewed th¢ reserves policy in 2021. Ila5cd on the Severity of a significant medium-terni loss like the one experienced due to Covid- 19, the Trustees havc agreed a policy of between 6 to I I months as their longer-temi goal to enable NABS, to increase incom¢ and reduce costs by moving to new offices (rcducing offic¢ cosls by S￿/0) with a vicw lo breaking evcn by 2026. The designated reserves arc currently for ihe use of benefitin¥ NABS, beneficiaries living at Pelerhouse upon request with no current time limil on their use. Two of the three restricted reserves are donations made and spcnt annually with any balance carried forward to the ne￿ year. The David Pilton award is a onc-off donalion that has been reducin8 gradually each year, currently king used to support NABS, Ambassador Pro8rammc. PUBLIC BENFFIT The Trustees havc complied with their duty to have due regard to the guidance on Public Bcnefil published by The Lharity Commission in exercislngy their power or duties. NABS public, is anyone who has spcnl a large proportion of their career working in the Marketing services induslry ('%he industry") and suppliers whose businesses specialise in providing services to thc induslry and any persons who have or have at any time been dcpcndent upon any person engaged in Ihc Industry. I'he 'benefit' offered to this community includes the provision of crisis grants, advice, support, carcer coaching, promotion of physical and mental health and wellbeing, thc advancement of education in the mad(eting, advertising and creative industries and high profcssional slandards and the promolion of equality and diversity in the industry. AUDITOR RSM UK Audit LLP has indicated its willingness to continue in office. Approved by the board oftrustees on 24 July 2024 and signed on its behalf by Karla Smith Trustee Pagell N A B S (A charitable company limited by guarantee) STATEMENT OF TRUSTEES. RESPONSIBILITIES STATEMENT OF TRUSTEES* RESPONSIBILITIES 'I"he l rnstees (who ar¢ also d]r￿lo[S of NABS for the purposes of company law) dre re5ponsiblc for preparing, the Truslcc8' Annual Report (incorporating the Directors, Report) and the financial statemenÉs in accordance with applicable law and United Kingdom Accounting Standards including Financial Reporting Standard 102: Thc Financial Reporting Standard applicable in the UK and Rcpublic of [￿land (Unilcd Kingdom Generally Acccpted Accounting Practice). Company law requires the Trustees tu prepare financial stal¢ments for each financial year. Under company law the Truslecs must not approve the financial statements unless they are salisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure, ofthe charitsble group for that period. In preparing these financial siatcmenl4 ihc tru81cc8 arc rcquired to: select suitable accounting policics and ihen apply them consistently. observe the mcthods and prinLiples in the Charitics SORI). makc judgments and estimates that ar¢ reasonable and prudent. state whether applicable accounling standards have been followed, subject to any material departures disclosed and explain¢d in th¢ financial slatcments: and prepar¢ the financial statcmcnls on the going conccrn basis unless it is inappropriatc to presume that the charitable company will conttnue in business. The'frustces are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of Ihe charilable company and enable them lo ensure that the financial statemcnls comply with the Companies Acl 2006. They are also responsible for safeguarding the assets of the charilable compaTty and the group and hcncc for taking) reasonablc steps for the prevention and delcction of fraud and other ]￿egUlar7t7es. STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR The TNslees (who are also directors for the purw)ses of company law) in office on the date of this report have confimed, as far as thcy arc awarc, that there is no relevant audit infom)ation of which the audilor is unaware. Each of the Truslccs has confirn)ed thal they havc taken all the sleps thal Ihcy ought to have lakcn as'l'rustees in order to make thcmselves aware of any relevanl audit infornialion and to establish that it has been communicated to the auditor. Page 12 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NABS Opinion We have audited the financial statements of NABS (the 'parent charilable company,) and its subsidiary (the 'group') for thc year endcd 31 Deccmber 2023 which comprise the Consolidated Statement of Financial Activitie thc Consolidated and Company BalaT]ce Sheet4 the Consolidated Cash Plow Statement and notes to the financial statements, inLluding significant accounting policies. -I'he financial reporting framewod( that has been applied in their preparation is applicable law and United Kingdom Accounting Siandards. including FRS 102"The Financial Reporting Standard applicable in the UK and Rcpublic of Ireland" (lJnilcd Kingdom Gencrally Acc¢ptcd Accounting Practice). In our opinion the financial slatements.. give a true and fair view of the stalc ofthe group's and the parent chiiritable company's affairs as at 31 Deccmbcr 2023 and ofthc group's incornin&i resources and application of resource4 including ils income and expenditure, for the year then ended. have been properly prepared in accordance with United Kingdom Generdlly Accepted Accounting Practice. and have been prepared in accordance wilh the requiremcnls of the Companies Act 2006 and lh¢ Charilies Act2011. Basis for opinion We have been appointed auditors under thc Companies Act 2006 and section 151 of the Charities Aci 201 l and report in accordance with thosc Acls. We conductcd our audil in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our rcsponsibilities under those standards are ￿rther described in Ihc Auditor's responsibililies for the audit of-the finanLial staternents seLtion of our report. We are indcpcndenl of the group and parcnl charilablc company in accordance with the ethical requirements Ihal arc rclcvant lo our audit of the financial slalements in the UK, includingi the fRC's Ethical Standard and wc have fulfilled our other ethical responsibilities in accordance with these requirements. Wc ￿11cVC Ihal the audit evidence we have obtained is sufficient and appropriale to provide a basis for our opinion. Conelusions relAtin% to going concern In auditing the financial statements, we havc Conc]￿lCd Ih81 ihe trustees, use of the going concern basis of accounting in th¢ pr¢pardtion of the financial stalements is appropriate. Based on the work wc havc pcrfornied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or parent charitable cnmpany's ability io continue as a going concern for a period of at Icast twelve monlhs from whcn the financial statemenls are authorised for issue. Our responsibilities and the responsibilities of ihe trusl¢es wilh respect to going concem are described in th¢ relevant sections of this TCPOrt. Other infornialion The other inforniation comprises the infornialion includcd in ihe Trustees, Report other than the financial statements and our auditor's rcport thcrcon. Thc Irustees are responsible for the other information Lontained within the Trnstees, Report. Our opinion on the financial statements does not cover the other information and, except to thc cxtcnt otherwise explicitly slaled in our report, we do not express any fom) of assurance conclusion thereon. Our ￿SPonsIbl11ty is to read the other infomlation and, in doing so, consider whether the other infom)ation 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 detemiine whether this gives rise to a material misstatement in the financial statements themselve& If. based on the work we have perforn]ed, we conclude thal therc is a material misstatement of this other infomiation. we are required to report that facL We have nothing to report in this ￿gard. Page 13 Opinions on olher matters prescribed by the Companies Act 2(KI6 In our opinion, based on the work undertaken in the course of the audit- the inforniation given in the Trustees, Report, which includes the Directors. Report and the Strategic Report prepared for the purposes ofcompany law, for the financial year for which the financial statements are prepared is consistent with the financial statements. and the Directors, Report and the Strdlegic Rcp)rt included within the Trustees. Report have been prepared in accordance with applicable legal requiremenls. Matters on which we Vdre required to report by exception In th¢ light of the knowledge and understanding of the group and the pa￿nt charitable company and their environment obtained in the course of the audit, we have nol idenlified material misstatements in the D1￿CtOrS, Report or the Strategic Report included within the Trustees, Report. We have nothing to report in respccl of the following matters where the Companies Act 2006 and Ihc Charitics Act 2011 requirc us to rcport to you if, in our opinion- ad¢quat¢ and sufficienl accounting record8 have not been kept by the parent charitable company, or returns adequate for our audii have not been reLeived from branches not visited by us. or the pa￿nl ¢haritablc company financial statements are not in agrccmcnl wilh thc accounting records and returns. or certain disclosures of trustecs, rcmuneration specified by law are not made. or we have not receivcd all the inforniation and explanations we rcquirc for our audit. Responsibilities of trustees As cxplained more fully in the Statcmcnl of 'frustee5' responsibililies sel oul on pag)e I l. the trustCC8 (who arc also ihe direLtors ofthe charitable company for Ihe purpose5 of company law) are responsible for ihc prcparation of-the finarKial statements and for being sutisfied that they give a true and fair view. and for such intemal control as the trustees delerniine is nccessary to enable the preparation of financial slalcmcnls that are free from material m isstatement. whcthcr due to fraud or error. In preparing Ihe financial statements, the trustccs arc rcspon8Tble for 8ssessing the group's and parent charitable company's ability to continue as a going concern, disclosing, as applicable, mutters related to gyoing conccrn and usin8 Ihc goingy conLern basis of accounting unless the trustees either intend to liquidate the group or parent chariiable company or to cease operalions, or have no realistTC alternative but to do so. Audilor's responsibilities for the audit of the financial statements Our objeclivcs are lo obthin reasonable assurance about whether the financial statements as a whole are frec from matcrial misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Rca80nable assurunce is a high Icvcl of assurdnce, but is nol a guaranlc¢ Ihat an audil conduclcd in accordance with ISAS (UK) will always dctecl a mat¢rial misstatement when it cxists. Misslal¢mcnls can arise from fraud or error and are considcrcd material if, individually or in thc aggrcgate, they could reasonably be expecfrd to influence the economic decisions of users taken on the ba8is of these financial statements. The extent to which the audit was considered Capable of detecting Irregularities including fraud Irregularities are instanccs of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulalions that have a direct effcct on the detemiinalion of material amounts and disclosures in the financial statements, to perforni audit priKcdures to help identify instances of non-compliance with other laws and regulations that may have a matcrial effect on the financial staternents, and to respond appropriately to identified or suspected non-complian¢¢ with laws and regulations identi fied during the audit. In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriale audit evidence regarding the assessed risks of maierial misslatement due to fraud through designing and Implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audil. Page 14 However, it is the primary responsibility of managemenL with the oversight of those charged with governance, to ensure Éhat the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud. In identifying and assessing risks of material misstatement in respecl of irregularities, including fraud, the group audit engagement team: obtained an understanding of the nature of the sector, including the legal 3nd regulatory frameworks that the group and pa￿nt charitable company operate in and how the group and parent charitable company are complying with the legal and regulatory frameworks. inquired of management, and those charged wtth governance, about their own identification and assessment of the risks of I￿egular1tie8, including any known actual, suspected or alleged instances of discussed matters about non-compliance with laws and regulalions and how fraud might occur including assessment of how and where the financial statemcnts may be susceptible to fraud. As a result ofthcse procedures we consider the mosl significant laws and rcgulations that have a dirccl impact on the financial statements are FRS 102, Charities SORP (fRS 102), Companies Act 2006, Charities Act 2011, the parent charitable LOJT)pany's gioverning docurnent, and tax legislation. We performed audit procedures to detect non-compliances which may have a malcrial impacl on the financial statcmcnts which included reviewing ihc financial statements including the'fruste¢s' Report, and rernaininbi alert to any new or unusual iransaclions which may not be in aLcordance with the governing dixuments. I'hc group audit engagement team idenlificd the risk ofmanagemcnt ovcrride of controls and as the area where the financial siatcments were mosl susceptible lo material misslalement due to fraud. Audit procedurcs perfomicd included but were noi limilcd lo testing manual journal entries and other adjuslments, evalualing the business rationale in relation to any significant, unusual Iransactions and iransactions entered into outside the nornial course of business and challenging judgments and estimates. A further description of OUT responsibililics for thc audit of the financial sialcrnents is provided on the Financial Reporting Council's website at hltp:Ilwww.frc.org.uklauditorsresponsibiliti¢s. 'I'his dcscriplion fornis part ofour auditor's report. Use of our report This report is made solely to the charitable company's mcmbcrs, as a body? in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audil work has been undertaken so thal wc might state to the charitablc company's mcmbers thosc mattcrs we are required io stsle to them in an auditor's repori and for no other pury)ose. To thc fullcst exlenl perniitled by law, we do not accept or assume responsibility to anyone othcr than the haritable company and the charitable company's members as a body* for our audit work, for this rcport, or for the opinions we have fornied. LLP NICHOLAS SLADDEN (Senior Statutory Auditor) For and on behalf of RSM UK AUDI'f LLP, Statutory Auditor Chartercd AcC￿ntants 25 Farringdon Street London EC4A 4AB Date 25 July2024 RSM UK Audit LLP is eligible to act as an auditor in tennsof section 1212 of the Companies Act 2006 Page 15 N. A B S (A charitable company limited by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including the Income and Expenditure Account) For the yedr ended 31 Dccembcr 2023 Unrestricted Funds 2023 Restricted Funds 2023 Total Funds 2023 Totsl Funds 2022 Notes Income from: Donalions and legacies Oiher trading activities Investmenls 1.994,639 630,539 18,067 63.243 2.057.882 630.5.39 18,067 1,846.519 634,607 18.909 Total income 2,643,245 63,243 2.706,488 2,500,035 Expendilure on: Raising funds 2,132,450 2.132.450 2.195.525 Charitable activilies: Grant making Car¢¢rs CounsellinglAdvic¢ l.inc 243,066 ,193,595 55,714 298,780 ,193,595 259,821 ,124,831 Total expenditure 3,569,111 55,714 3,624,825 3,580,177 Nei gainl(loss) on inveslments 192,886 192.886 (585,428) Net incomel(cxpcnditurc) (732,980) 7,529 (725,451) (1.665,570) Nel movement in funds Fund balances broughi forward at l January 1732,980) 3.559.395 7,529 84.972 {725,451) (1,665,570) 3,644,367 5,309,937 Fund balances carried forward at 31 Dcccmbcr 14a 2,826,415 92,501 2,918,916 3,644,367 Page 16 N A B S (A charitable company limited by guarantee) BALANCE SHEETS- CONSOLIDATED AND CHARITY At 31 December 2023 Company Registration No: 03588945 Group Charity Noles 2023 2022 2023 2022 FIXED ASSETS Tangible assets Investments 7,332 2,118,450 235,046 2,561,971 7,332 2,118,452 235,046 2,561,973 2,125,782 2,797,017 2,125.784 2,797,019 CURRENT ASSF.TS Debtors Cash at bank and in hand io 662,131 668,922 738,222 577,306 537,522 562,987 633,780 532,658 1,331,053 1,315,528 1,100,509 ,166,438 CREDI'I'ORS: Amounts falling due within one year (537,919) (468,178) (330,688) (341,583) NETCURRF.NT Assf.TS 793,134 847,350 769,821 824,855 'roTAL NET ASSETS 2,918,916 3,644,367 2,895,605 3,621,874 Represented by.. FUNDS Restricted Funds Unrestricted funds: Designated funds General funds 12 92,501 84,972 92.501 84,972 13 14 187,662 2,638,753 197,264 3,362,131 187,662 2,615.442 197,264 3,339,638 TOTAI. FUNDS 2,918,916 3,644,367 2,895,605 3,621,874 The Charity's deficit for the year was £726,269 (2022: £1,667,677 deficit). The financial statements on pages 15 to 33 were approved by the Ix)ard of tNstees and authorised for issue on 24 July 2024 and signed on its behalf by Karla Smith Trustee Page 17 N A B S (A charitable company limited by guarantee) CONSOLIDATED CASH FLOW STATEMENT for the year ended 31 December 2023 Noles 2023 2022 OPERATING ACTIVITIES Cash (used in) operations 15a (556,002) (749,447) Corporation taxes paid (110) (475) Net cash (used in) operating activities (556,112) (749,922) INVES'fiNG ACTIVITIES Purchase of tangible fixed assets Purchase of invesimenls Sale of investments Interest received Dividends received (6.748) (10.232) (13,980) 646,641 514.150 1.097 9,638 6.970 9,271 N¢t cash generdted by invcsling activities 647,728 519,079 Net increasel(decrease) in cash and cash equivalents 91,616 (230,843) Cash and cash equivalcnts ai the Etginning of the year 577,306 808,149 Cash and cash equivalents at the end of ihe year 15b 668,922 577,306 Page 18 N A B S (A charitable company limited by guarantee) ACCOUNTING POLICIES NABS is a charitable company limited by guarantee incorporated in England and Wales. The registered otTice can be found on page l. BASIS OF ACCOUNTING The financial statements have ken prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Prdctice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective l October 2019) (Charities SORP (FRS 102)), Ihc Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and th¢ Cornpani¢s Act 2006. NABS 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 slated in the ￿levant accounting policy note(s). CJROUP FINANCIAL STATEMENTS The financial statements are prepared in sterling. which is the fijnctional currency ofthe group. Monetary amounls in these financial statements are rounded to thc ncarcsi £1. The financial stalcments consolidaie the resulis of the charity and its wholly owncd subsidiary NABS Trading l.imitcd on a linc-by-linc basis. A scparalc Slatement of Financial Aclivities and Income and Expenditure Account for the Lharity has not been presented becausc thc 'l'rusl has taken advantage of the exemption afforded by section 408 of the Companie5 Act 2006. GOIN(i CONCERN 'rhe company's busincss activities, logethcr with the faLtors likely lo affecl ils fulurc developmcnt, pcrformancc and position arc scl out in the Trustees, Report. The Charity continues to have a good level of reserves and some of these are planned to continue being deployed in 2024 to ensure demand for services from our bcncficiarics is met. to ensure the organisalion invest5 in PTojecls thut fucus on its long terni susiainability wilh a view lo breakevcn by 2026. 'Ihcsc rcserves are readily realisable via the investmenl portfolio. During 2023 £632,187 was drawn down from ihe portfolio lo aid cashflow. Dcspite an industry that was subytantially hit by the pandemic and affected by the current macro economic challengc4 the ann￿1 commitments from the Marketing, Communications and Advertisingy Sector, who are both the chief source of donations and form our main bencficiary group, remain positive. The annual budgyeting and quarterly reforecasting process are input into a longer tcmi, 5 ycar financial planning model to identify risk points. The ￿ndraising team review and rc8earch the market re media and corporale donalions and hope lo breakeven by 2026 and be in profit thereafter. Cashflow foreLasting (generated from the budgetlreforecasts) ensurc8 funds are available to support NABS as a gyoingy Loncern. Long tenn financial planning scenarios also look at likelihood and impacl of risks and detennine a timeline for key decision makin8 ie stoplstart of investment projects, cost cutting measures and investment drawdown to aid cashflow. Wilh these processes in place the Trustees believe the group is well placed to mana8c ils busincss risk su¢c¢ssfully. Due to the above reasons the Trustees have a reasonable expectation that the group has adequate resources to conlinu¢ in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statemcnts. FUND ACCOUNTING Gcncral funds are unrestricted funds which are available for use at the discretion of the Trustees in the furtherance of the generdl objectives of the charity and have not been designated for other purposes. Designated funds comprise unr¢strid¢d funds that have been s¢t aside by the Tnjstees for particular purposes. Th¢ aim and use of the designat￿ funds is set out in the notes to the financial statements. The funds are us¢d at the discretion of the Executive Committee. Restricted funds comprise of funds that have been given to NABS on condition that they are expended on purposes specified by the donor. Page 19 N A B S (A charitable company limited by guarantee) ACcO[￿TING POLICIES INCOME Voluntary income is included in the accounts on the basis of amounls notified to the charity as a probable receipt or more likely than not to be received for the financial year. The income from activities including fundraising events for generating ￿ndS is included in the accounts on a receivable basis. Investmcnt income is Credited as income on a receivable basis. Media donations are recognised whcn the sale of th¢ advertising space is Lertain. All other income is included on an a￿rualS basis, once there is sufficient certainly over entitlement and measurement and it is probablc that the income will be received. Where income has been received in advance, or conditions for receipt have not been met, this is treated as deferred inci)m¢. LEGACIES Legacies are credited as income on the basis of amounls notified to the charity at the period end as rcceivable. This is on an accruals basis, once there is suffiLient certainty over entitlement and measurement and it is probable that ihe incomc will bc received. LISTED INvf.STMENTS Investmenls are all single priccd funds. Realised and unrealised gains and1055cs on investrnents arc addcd to or dcducted from ihe general unrestricted funds. Realiscd gains and losses in the year rcprc8onl the difference betwccn the disposal proceed5 and in year pu￿has¢ cost or the market value at the beginning of the year. Realised and unrealised biain5 and losses arc dcalt with in the Slatement of Financial Aclivitie5. Investment incomc is treated on initial recognition and subsequent measurement then creditcd lo income on an accruals basis, using dates ofpaymenls for dividends and daily accrual for inlcrcst. Invcstmcnt8 are inilially rccogni8cd al cost and are subsequently measured at fair value at each rcporting dale. VALUE ADDF.D TAX Value udded tax is not recoverable by ihc charity, and as such is included within the Televant costs in the Stalcmcnt of Financial Activities. I7Jc wholly owned subsidiary is registered for VA'I., which is recoveredlaccrucd for as required. OPERATING LbASES Renials applicable to operating leases whcrc substantially all the benefits and risks of ownership remaTn with the le550r are reflected in the Statemenl of Financial Activities on a strdight line basis over the lease terni. Expf.NDITURE The areas in which resources are expended are in Charitablc Activities (as pcr thc charilablc objectives). Fundraising {cxpenditure incurred in inducing people and organisations to contribute financially to the Lharity's work; this includes the Lost of staging of spccial fundraising events). and Governance (all expendilure relating to constitulional and statutory costs, including th¢ cost of ¢xt¢rnal audil). ALLOCATION OF COS'I"S Direct costs arc recorded under the appropriale heading. Indirect support Costs include overhead costs, finance, person￿1. payroll and gyov¢rnan¢e costs allocated on a time apportionment and square footage basis. Governance costs include audit fees and legal and professiontil fees as direct cos15 plus indirect costs on the same basis as support costs. Wages and salaries have been allocated betwe¢n appropriat¢ Cost headings ￿COrding to the duties and responsibilities of the Individual Staff. WELFARE GRANTS AND LOANS Grants and loans arc made by ihe charity in furtherdnce of its aims. Grants are charged as resources expended on an accruals basis. Loans advanced are included as an asset of the charity and included as Programme Related Investments held at cost less accumulated impairnient. Interest receivable on the loans advance4 where appltcable, is credited as incoming resources in the Statement of Financial Activities on an accnjals basis. NABS no longer oifers long or short tenn loan facilities to its beneficiaries. The final loan was repaid in 2023. TANGIBLE FIXED ASSETS Tangible f]xed assets are stated at historical cost less depreciation. Individual fixed assets costing £1,000 or more are capitalised at cost. Page 20 N A B S (A charitable company limited by guarantee) ACCOtfNTING POLICIES Depreciation is provided on all tangible fixed assets other than freehold land at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life. as follows'.- Furniturc and equipment Computer equipment Office fijrniture and equipment 10_20 % straight line , % straight linc 200/0 Straight line PENSION SCHEME ARRANGEMf.NTS The charity operalcs a dcfincd contribution pension scheme which 15 funded by Lontribution5 partly from the employees and partly from the charily. Such contiibutions are held in trustee-administered funds completely independent of the charity's finances. 'I'he amount charged to the Statement of Pinancial Activilies in respect of pension costs is the contributions payablc in ihc pcriod. Unpaid amounts al thc ycar cnd arc includcd in other crcditors. DF,BTORS Trade and other debtors are recogniscd at the settlement amount due after any trade discount offered. Prepayments arc valued ai ihc amount prepaid. CASH AT BANK AND IN HAND Cash at bank and in hand includes cash and shon term highly liquid investments with a short maturity of three months or less from the datc ofacquisilion or opening of the deposit or simildr account. CRbDI'I'ORS AND PROVISIONS Creditors and provision5 are reco￿]sed where ihc charily has a prcscnl obligation rcsultin8 from a pasl cvcnt that will probably result in the transfer of funds Io 8 third party and the arnounl duc lo setlle thc obligation can be measured or estimated reliably. Crcditors and provisions