**REGISTERED COMPANY NUMBER: 03853697 (England and Wales) REGISTERED CHARITY NUMBER: 1077850**
Report of the Trustees and Unaudited Financial Statements for the Year Ended 31 March 2023 for
The Independent Newham Users Forum (Mental Health)
Kreston Reeves LLP Canterbury
The Independent Newham Users Forum (Mental Health)
Contents of the Financial Statements for the Year Ended 31 March 2023
||Page|
|---|---|
|Report of the Trustees|1 to 5|
|Independent Examiner's Report|6|
|Statement of Financial Activities|7|
|Balance Sheet|8 to 9|
|Notes to the Financial Statements|10 to 19|
|Detailed Statement of Financial Activities|20 to 22|
The Independent Newham Users Forum (Mental Health)
## Report of the Trustees for the Year Ended 31 March 2023
The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and aims**
Mission statement: Supporting people with mental health needs in East London.
Our objectives are:
- a) To enable and encourage persons with mental health problems under the care of the East London and City Mental Health NHS Trust, to be involved in all local mental health service design or implementation.
- b) To assist persons with mental health problems to obtain their full rights and privileges as citizens.
- c) To educate the general public in the causes, treatment and consequences of mental health disorders, and raise the public's awareness of the needs of persons with such disorders.
Aims of the charity:
To achieve our aims The Independent Newham Users Forum (Mental Health) ("INUF") will:
- Retain a user-led approach in all its activities and developments.
- Provide access to a safe and supportive environment in which skills can be developed and views shared.
- Provide opportunities for people to develop greater confidence and individual capacity to be involved at a strategic level.
- Support emerging, user-led initiatives by offering access to community facilities.
- Provide access to information related to matters impacting on people’s daily lives and mental health needs.
- Ensure mental health service users are provided with an opportunity to be consulted on local services and developments.
- Maintain an ‘open-door’ policy at all times for mental health service users and members of the charity.
- Celebrate the diversity of cultures in East London, by listening to people’s needs and promoting equality of service provision.
## **Significant activities**
We also managed to obtain 2 small grants. A grant for the football team of £200 and a grant of £1,125 for the Podcast. A donation of £2,250 was received from Primark.
Page 1
The Independent Newham Users Forum (Mental Health)
Report of the Trustees for the Year Ended 31 March 2023
## **OBJECTIVES AND ACTIVITIES**
## **Public benefit**
The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to public benefit guidance published by the Charities Commission in determining the activities undertaken by INUF, which defines the requirement that the charitable purpose of a charity must be “for the public benefit”.
The objectives and activities, and achievement and performance sections of this report clearly set out that the activities which the charity undertakes are for the public benefit.
## **Volunteers**
INUF is highly reliant on and values its volunteers, the majority of whom are service users/survivors. Volunteers assist in many aspects of INUF’s activities, including strategy development, providing peer support, facilitating activities, attending consultation events with the local authority and providing administrative and reception support. INUF currently has around 100 volunteers recorded. A regular core of 40+ volunteers participates in a variety of activities.
Volunteers are included in all strategic planning to ensure they feel valued and play an active role in INUF’s future developments. Each entry point requires the completion of a simple, 4-page membership form, along with two proofs of I.D. for an Enhanced DBS check. An interview takes place which then leads on to training.
Volunteering is a route for many to find employment, both with INUF and also with outside organisations. It also provides an opportunity for volunteers to return to education and explore opportunities available there.
## **ACHIEVEMENT AND PERFORMANCE Charitable activities**
In a normal year there are a number of ongoing objectives that INUF fulfils. These include consultations and user involvement in service planning and development. In the current financial year these activities were on a limited scale.
## **Fundraising activities**
Funding has been difficult in the current economic climate. All community and charity groups are suffering, due to the reduction in the total amount of funding available. Given this situation INUF has been looking at maximising income generated by Ithaca House itself. During the year we were awarded three new grants totalling £3,575 to support our work.
## **FINANCIAL REVIEW Reserves policy**
The trustees have not been able to formulate a consistent reserves policy. The Board are still in discussions as to an appropriate level of Reserves.
Currently our monthly income is approximately £10,000 (excluding any Grant income) expenses each month are £12,500. So INUF needs additional income of £2,500 each month.
Based on the current financial costs we need to have reserves of £32,000 to ensure INUF can continue to operate for a full 12 months on its own resources without requiring additional grants. Currently INUF has no reserves in place.
Where funds can be raised to cover the Core Costs the money generated from the building can be used to build up reserves to this level.
Income from Ithaca House rose this year from £102,697 to £104,373. The building continues to produce regular income for the charity which ensures the centre remains open and functional for our beneficiaries. In addition, INUF have engaged in a process of aged debt recovery, and the Trustees are active in debtor management, to ensure more robust financial management.
Page 2
The Independent Newham Users Forum (Mental Health)
Report of the Trustees for the Year Ended 31 March 2023
## **FINANCIAL REVIEW (continued)**
Many of our costs are linked to the grants we receive. Although we did face increased costs of our Gas and electricity. Our total Health and Education costs have rose this year from £95,527 to £105,596. The deficit this year is due to the depreciation charge on the building improvements and increasing costs of Gas and Electricity coupled with the fact that two major offices had not been let for the year. The Trustees will continue to monitor the financial situation very carefully.
The accounts include the costs incurred in renovating the building as a fixed asset under restricted funds and this is being depreciated. This treatment is used to reflect the usage INUF makes of Ithaca House.
INUF can meet its day-to-day expenses. However, to continue to provide excellent service to its users, the building shall require a restoration project given on going wear and tear reflected in the depreciation charge.
All expenses are monitored and approved before being incurred. All hirers and tenants are followed up promptly to ensure they have paid for the room hire or office rent. A finance report is presented at each Trustees meeting highlighting the financial position of the organisation.
## **FUTURE PLANS**
The Trustees of INUF prepare a Business Plan whilst keeping in mind its financial position and lack of building restoration reserves. The plan directs the future direction of INUF. including whether it retains its current projects or allows them to reach their natural conclusion.
To date INUF has not advertised the centre as widely as it could, and this is one area that will be made a priority to ensure sustainability is not jeopardized.
The year was very difficult for INUF and our reserves all but disappeared. The year to 31 March 2024 has been even more challenging as the spaces have not been let and the costs have continued to rise. To improve cashflow INUF agreed to reduce payments to Electricity, Gas and Water suppliers to a minimum of £5 per month. With effect from 1 January 2024 INUF agreed a 6 month payment holiday on the Bounce back loan which was taken out as part of the COVID support offered by the Government.
With effect from April 2024 the office rents will increase by 5%. The spaces and room hires have been extensively advertised. We have been able to rent out meeting spaces to therapists and to the NHS Newham Recovery College for their training meetings.
The lease with the fast-food takeaway is currently being negotiated and it should be finalised in March to April 2024.The rent being negotiated is between £2,100 and £2,500 per month.
Our largest single expense is the wages bill. We are looking at all options to reduce this bill whilst maintaining our services.
With regards grant funding INUF has secured two grants totalling £11,000 in the first quarter of the 2024 calendar year which will be used to cover the salaries.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document**
The charity is controlled by a deed of its Memorandum and Articles of Association, and constitutes a company, limited by guarantee, as defined by the Companies Act 2006.
## **Recruitment and appointment of new trustees**
The Trustees are democratically elected and/or co-opted under the terms of the Memorandum and Articles of Association by Individual Members and/or Open Members. Trustees serve for a period of one year after which time they may offer themselves for reappointment.
## **Organisational structure**
Its Memorandum of Association sets out the objects and powers of the Charity. The Articles of Association establishes its governance. In the event of INUF being wound up members are required to contribute an amount not exceeding £1. Legal responsibility for the management and stewardship of the charity is vested in the Board of Trustees.
Page 3
The Independent Newham Users Forum (Mental Health)
## Report of the Trustees for the Year Ended 31 March 2023
Normally the Trustees meet every two months. However, during these unprecedented times it has been difficult to find suitable times. So, meetings have been very ad hoc. From time to time the Board of Trustees creates sub-committees, reporting on matters concerned with finance, strategic planning and fundraising. The sub-committees report to the Board of Trustees where decisions are ratified.
The Board of Trustees includes a mix of skilled and knowledgeable individuals that support the charity in its activities. These skills range from business management, mental health, community organisation to IT and teaching. To remain as a user-led charity, INUF feels that it is important to be able to ensure the governing body reflects the community it serves whilst expert assistance is received from skilled non-board volunteers and other training organisations. In an effort to enhance skills, Trustees are encouraged to attend all appropriate training identified.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT Induction and training of new trustees**
Each new Trustee receives an induction pack including key policies and procedures at the first Board meeting they attend. They are also given an overview and introduction to the charity.
Trustees are provided with the following information at their induction:
- Trustee roles and responsibilities;
- Memorandum and Articles of Association;
- Values;
- Annual and Financial Report;
- Key policies and procedures;
- List of training days if available;
- Future plans for the charity.
Although some Trustees are familiar with INUF and have served as Trustees for some years. INUF feels it is beneficial for all Trustees to remind themselves of our mission statement, aims and objectives each year they are elected to maintain focus.
## **Key management remuneration**
The total compensation paid to key management personnel amounted to £32,461 (2022: £30,460 as restated). This includes contributions to a Workplace Pension of £677 (2022: £633).
## **Risk management**
The Trustees conduct an annual review of the major risks to which INUF is exposed through business planning. Where appropriate and identified, systems or procedures will be established to mitigate the risks the charity faces.
Most community groups face external risks to funding which has led INUF towards developing a strategic plan. This will allow for diversification of funding if possible and shape the charity’s future direction. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety, security and other potential risk areas by staff, volunteers, beneficiaries, trustees, occupants and visitors to the centre. There are annual inspections and servicing of the fire alarm systems, security alarms and central heating systems. A Third-Party Company carries out a DBS check for all of our volunteers.
INUF operates a Zero Tolerance policy relating to alcohol and recreational drugs on its premises. This has proved very effective in reducing potential untoward incidents and ensuring safety for all building users.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
03853697 (England and Wales)
## **Registered Charity number**
1077850
Page 4
The Independent Newham Users Forum (Mental Health)
Report of the Trustees for the Year Ended 31 March 2023
## **REFERENCE AND ADMINISTRATIVE DETAILS**
**Registered office** Ithaca House 27 Romford Road Stratford London E15 4LJ
## **Trustees**
J Meek Director V Peters Director Ms S Ruiz Director Ms M Quinlan Director R Sangani Director T Crookes Director Appointed 1 April 2023
## **Independent examiner**
Samantha Rouse FCCA DChA Kreston Reeves LLP 37 St Margaret’s Street Canterbury Kent CT1 2TU
Approved by order of the board of trustees on ...27.March 2024... and signed on its behalf by:
J Meek - Trustee
Page 5
Independent Examiner's Report to the Trustees of The Independent Newham Users Forum (Mental Health)
## **Independent examiner's report to the trustees of The Independent Newham Users Forum (Mental Health) ('the Company')**
I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2023 which are set out on pages 7 to 22.
## **Responsibilities and basis of report**
As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for 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)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **Samantha Rouse FCCA DChA**
Kreston Reeves 37 St Margaret’s Street Canterbury Kent CT1 2TU
Date:
Page 6
The Independent Newham Users Forum (Mental Health)
## Statement of Financial Activities for the Year Ended 31 March 2023
|Notes
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**Charitable activities**
Health and Education
Government grant income
Other trading activities
3
Investment income
4
**Total**|Unrestricted
funds
£
6,412
-
-
561
104,448
111,421|Restricted
funds
£
20
1,325
-
740
-
2,085|31.3.23
31.3.22
Total
Total
funds
funds
£
£
6,432
4,825
1,325
1,960
-
28,432
1,301
11,107
104,448
102,720
113,506
149,044|
|---|---|---|---|
|**EXPENDITURE ON**||||
|Raising funds
5|106,325||106,325
77,765|
|**Charitable activities**||||
|Health and Education
Governance
Other
**Total**
**NET INCOME/(EXPENDITURE)**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**TOTAL FUNDS CARRIED FORWARD**|66,997
13,471
1,421
188,214
(76,793)
79,268
2,475|38,599
-
-
38,599
(36,514)
38,599
2,085|105,596
95,527
13,471
8,069
1,421
1,751
226,813
183,112
(113,307)
(34,068)
117,867
151,935
4,560
117,867|
## **CONTINUING OPERATIONS**
All income and expenditure has arisen from continuing activities.
The notes form part of these financial statements
Page 7
The Independent Newham Users Forum (Mental Health) (Registered number: 03853697)
## Balance Sheet At 31 March 2023
|Notes
**FIXED ASSETS**
Tangible assets
11
**CURRENT ASSETS**
Debtors
12
Prepayments and accrued income
Cash at bank and in hand
**CREDITORS**
Amounts falling due within one year
13
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
Amounts falling after more than
one year
14
**NET ASSETS**
**FUNDS**
16
Unrestricted funds
Restricted funds|Unrestricted
funds
£
4,344
15,084
2,055
27,976
45,115
(23,456)
21,659
26,003
(23,527)
2,476|Restricted
funds
£
2,085
-
-
-
-
-
-
2,085
-
2,085|31.3.23
31.3.22
Total
Total
funds
funds
£
£
6,429
43,851
15,084
18,138
2,055
5,525
27,976
106,071
45,115
129,734
(23,456)
(22,345)
21,659
107,389
28,088
151,240
(23,527)
(33,373)
4,561
117,867
2,476
79,268
2,085
38,599
4,561
117,867|
|---|---|---|---|
The notes form part of these financial statements
continued...
Page 8
The Independent Newham Users Forum (Mental Health) (Registered number: 03853697)
## Balance Sheet - continued At 31 March 2023
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
- (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
- (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to charitable small companies.
The financial statements were approved by the Board of Trustees on 27. March 2024 and were signed on its behalf by:
J Meek -Trustee
The notes form part of these financial statements
Page 9
The Independent Newham Users Forum (Mental Health)
Notes to the Financial Statements for the Year Ended 31 March 2023
## **1. ACCOUNTING POLICIES**
## **Charitable activities**
The Independent Newham Users Forum (Mental Health) ("INUF") is a charity, limited by guarantee, incorporated in England and Wales.
The charity's registered office is Ithaca House, 27 Romford Road, Stratford, London, E15 4LJ.
The charitable activities of the charity continues to be:
a) To enable and encourage persons with mental health problems within the London Borough of Newham, and other boroughs under the care of East London and City Mental Health NHS Trust, to be involved in all local mental health service design or implementation and to assist persons with mental health problems to obtain his or her full rights and privileges as citizens.
b) To educate the general public in the causes, treatment and consequences of mental health disorders and raising the publics awareness of the needs of persons with such disorders.
## **Basis of preparing the financial statements**
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The charity's functional and presentational currency is Pound Sterling.
The charity's financial statements are presented to the nearest pound.
## **Going concern**
The charity's main source of income is from the letting of office spaces and room hire of Ithaca House.
To meet its day to day working capital requirements the charity is dependent upon this rental income. The year was very difficult for INUF and our reserves all but disappeared. The year to 31 March 2024 has been even more challenging as the spaces have not been let and the costs have continued to rise. To improve cashflow INUF agreed to reduce payments to Electricity, Gas and Water suppliers to a minimum of £5 per month. Additionally, a 6 month payment holiday was granted on the Bounce Back loan from 1 January 2024. Our largest single expense is the wages bill. We are looking at all options to reduce this bill whilst maintaining our services.
INUF has been able to rent rooms to therapists and the NHS Newham Recovery college since the beginning of 2024. Additionally with effect from April 2024 the office rents will increase by 5%. The lease with the fast-food takeaway is currently being negotiated and it should be finalised in March to April 2024.The rent being negotiated is between £2,100 and £2,500 per month.
With regards grant funding INUF has secured two grants totalling £11,000 in the first quarter of the 2024 calendar year which will be used to cover the salaries.
After making enquires, the Trustees have a reasonable expectation that the Charity will have adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt a going concern basis in preparing the financial statements.
Page 10
The Independent Newham Users Forum (Mental Health)
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **1. ACCOUNTING POLICIES - continued**
## **Income**
All income is recognised once the company has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the company is aware that probate has been granted, the estate has been finalised and notification has been made by the executors to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the company has been notified of the executor's intention to make a distribution. Where legacies have been notified to the company, or the company is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.
Other income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the Bank.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.
## **Tangible fixed assets**
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 5% on cost Fixtures and fittings - 25% on reducing balance
## **Debtors**
Trade debtors are recognised at the settlement amount after any trade discount offered.
## **Cash and cash equivalents**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
## **Taxation**
The charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charitable company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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The Independent Newham Users Forum (Mental Health)
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **1. ACCOUNTING POLICIES – continued**
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Operating leases**
Rentals under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.
## **Financial instruments**
The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an assets carrying amount and the present value of estimated cash flows discounted at the assets original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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The Independent Newham Users Forum (Mental Health)
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **2. JUDGEMENT IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY**
The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the year. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
The following are the company's key sources of estimation uncertainty:
Tangible fixed assets
The charity has recognised tangible fixed assets with a carrying value of £6,429 at the reporting date (see note 10). These assets are stated at their cost less provision for depreciation and impairment. For material assets such as land and buildings the charity determines at acquisition reliable estimates for the useful life of the asset, its residual value and decommissioning costs. These estimates are based upon such factors as the expected use of the acquired asset and market conditions. At subsequent reporting dates the trustees consider whether there are any factors such as technological advancements or changes in market conditions that indicate a need to reconsider the estimates used.
Where there are indicators that the carrying value of tangible assets may be impaired the charity undertakes tests to determine the recoverable amount of assets. These tests require estimates of the fair value of assets less cost to sell and of their value in use. Wherever possible the estimate of the fair value of assets is based upon observable market prices less incremental cost for disposing of the asset. The value in use calculation is based upon a discounted cash flow model, based upon the charity's forecasts for the foreseeable future which do not include any restructuring activities that the charity is not yet committed to or significant future investments that will enhance the asset's performance. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well expected future cash flows and the growth rate used for extrapolation purposes.
## **3. OTHER TRADING ACTIVITIES**
|Photocopy usage
Miscellaneous room hire income
**4.**
**INVESTMENT INCOME**
Rents received
Income from room hire
Deposit account interest|31.3.23
31.3.22
£
£
288
20
1,013
11,087
1,301
11,107
31.3.23
31.3.22
£
£
66,920
73,705
37,453
28,992
75
23
104,448
102,720|
|---|---|
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The Independent Newham Users Forum (Mental Health)
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **5. RAISING FUNDS**
|Staff costs
Administrative expenses
Telephone
Property repairs & maintenance
Accountancy
Council Tax
Heat & light
Cleaning
Insurance
Fire Safety
PRS subscription
Waste Collection
Equipment rental
Expensed equipment
Bank service charge
Travel
Refreshments
Volunteer expenses
Marketing
**6.**
**NET INCOME/(EXPENDITURE)**
Depreciation - owned assets
Independent examination
**7.**
**TRUSTEES' REMUNERATION AND BENEFITS**
Net income/(expenditure) is stated after charging/(crediting):|31.3.23
31.3.22
£
£
59,340
46,438
211
464
1,053
1,290
861
5,315
15,040
6,388
1,574
2,355
15,939
2,541
2,022
1,852
4,367
2,746
828
826
403
583
384
376
261
147
252
514
-
3
10
117
-
1
2,794
1,049
986
4,760
106,325
77,765
31.3.23
31.3.22
£
£
37,935
41,082
2,400
1,762|
|---|---|
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.
Page 14
The Independent Newham Users Forum (Mental Health)
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **8. STAFF COSTS**
|Wages and salaries
Other pension costs
The average monthly number of employees during the year was as follows:
Administrative|31.3.23
£
87,449
1,152
88,601
31.3.23
9|31.3.22
£
80,495
1,068|
|---|---|---|
|||81,563|
|||31.3.22
8|
No employees received emoluments in excess of £60,000. The total compensation paid to key management personnel amounted to £32,461 (2022: £30,460 as restated). This includes contributions to a Workplace Pension of £677 (2022:£633).
## **9. PENSION COST**
The Charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost represents contributions payable by the Charity to the fund and amount to £1,152 (2022: £1,067). Contributions totalling £256 (2022: £231) were payable to the fund at the balance sheet date.
## **10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
|**INCOME AND ENDOWMENTS FROM**
Donations and legacies
**Charitable activities**
Health and Education
Government grant income
Other trading activities
Investment income
**Total**
**EXPENDITURE ON**
Raising funds
**Charitable activities**
Health and Education
Governance
Other
**Total**
**NET INCOME/(EXPENDITURE)**
**Carried forward**|Unrestricted
funds
£
4,825
-
28,432
11,107
102,720
147,084
77,765
50,424
8,069
1,751
138,009
9,075
**9,075**|Restricted
funds
£
-
1,960
-
-
-
1,960
-
45,103
-
-
45,103
(43,143)
**(43,143)**|Total
funds
£
4,825
1,960
28,432
11,107
102,720|
|---|---|---|---|
||||149,044
77,765
95,527
8,069
1,751|
||||183,112|
||||(34,068)|
||||**(34,068)**|
|||||
Page 15
The Independent Newham Users Forum (Mental Health)
Notes to the Financial Statements - continued for the Year Ended 31 March 2022
|**10.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES continued**
Unrestricted
Restricted
funds
funds
£
£
**RECONCILIATION OF FUNDS**
**Brought forward**
9,075
(43,143)
**Total funds brought forward**
70,193
81,742
**TOTAL FUNDS CARRIED FORWARD**
**79,268**
**38,599**
**11.**
**TANGIBLE FIXED ASSETS**
Improvements
to property
Fixtures and
fittings
£
£
**COST**
As at 1 April 2022
786,605
84,143
Additions
513
as at 31 March 2023
786,605
84,656
**DEPRECIATION**
As at 1 April 2022
748,006
78,891
Charge for the Year
36,514
1,421
As at 31 March 2023
784,520
80,312
**NET BOOK VALUE**
As at 31 March 2023
2,085
4,344
As at 31 March 2022
38,599
5,252
**12.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
31.3.23
£
Trade debtors
14,775
Other debtors
309
15,084
**13.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
31.3.23
£
Bank loan
10,457
Rent deposit
10,423
Tax and social security
520
Workplace Pension Contribution
256
Accrued expenses
1,800
23,456|Total
funds
£
(34,068)
151,935
**117,867**
Totals
£
870,748
513
871,261
826,897
37,935
864,832
6,429
43,851
31.3.22
£
17,829
309
18,138
31.3.22
£
10,269
10,423
-
231
1,422
22,345|
|---|---|
Page 16
The Independent Newham Users Forum (Mental Health)
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **14. CREDITORS: AMOUNTS FALLING AFTER MORE THAN ONE YEAR**
||31.3.23|31.3.22|
|---|---|---|
||£|£|
|Bank loan|23,527|33,373|
The charity received a Coronavirus Bounce Back Loan totalling £50,000 from The Co-operative Bank in 2020. Repayments commenced from August 2021, with interest accruing at a fixed rate of 2.5% per annum.
## **15. LEASING AGREEMENTS**
Minimum lease payments under non-cancellable operating leases fall due as follows:
|Within one year
Between one and five years||31.3.23
£
945
2,834|31.3.22
£
-
-|
|---|---|---|---|
|**16.**
**MOVEMENT IN FUNDS**
At 1.4.22
£
**Unrestricted funds**
General fund
79,268
**Restricted funds**
Improvements to Building
38,599
Mental Health Support Fund
-
**TOTAL FUNDS**
117,867
Incoming
resources
£
**Unrestricted funds**
General fund
111,421
**Restricted funds**
Improvements to Building
-
Mental Health Support Fund
2,085
2,085
**TOTAL FUNDS**
113,506
Net movement in funds, included in the above are as follows:||Net movement
in funds
£
(76,793)
(36,514)
-
(113,307)
Resources
expended
£
(188,214)
(36,514)
(2,085)
(38,599)
(226,813)|At 31.3.23
£
2,475
2,085
-
4,560
Movement
in funds
£
(76,793)
(36,514)
-
(36,514)
(113,307)|
Page 17
The Independent Newham Users Forum (Mental Health)
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **16. MOVEMENT IN FUNDS-continued**
Comparatives for movement in funds
|At 1.4.21
as restated
£
**Unrestricted funds**
General fund
70,193
**Restricted funds**
Improvements to Building
77,930
Mental Health Support Fund
3,812
**TOTAL FUNDS**
151,935
Comparatives net movement in funds, included in the above
Incoming
resources
as restated
£
**Unrestricted funds**
General fund
147,084
**Restricted funds**
Improvements to Building
-
Mental Health Support Fund
1,960
1,960|Net
movement
in funds as
restated
£
9,075
(39,331)
(3,812)
(34,068)
are as follows:
Resources
expended
as restated
£
(138,009)
(39,331)
(5,772)
(45,103)|At 31.3.22
as restated
£
79,268
38,599
-
117,867
Movement
in funds as
restated
£
9,075
(39,331)
(3,812)
(43,143)|
|---|---|---|
|**TOTAL FUNDS**
149,044
(183,112)
Current year 12 months and prior year 12 months combined position is as follows:
At 1.4.21
as restated
Net
movement
in funds as
£
£
**Unrestricted funds**
General fund
70,193
(67,717)
**Restricted funds**
Improvements to Building
77,930
(75,845)
Mental Health Support Fund
3,812
(3,812)
**TOTAL FUNDS**
151,935
(147,374)||(34,068)
At 31.3.23
£
2,476
2,085
-
4,561|
Page 18
The Independent Newham Users Forum (Mental Health)
Notes to the Financial Statements - continued for the Year Ended 31 March 2023
## **16. MOVEMENT IN FUNDS-continued**
|**MOVEMENT IN FUNDS-continued**||||
|---|---|---|---|
|Current year 12 months and prior year 12|months combined net|movement in funds, included in the above||
||Incoming|Resources|Movement|
||resources|expended|in funds as|
||as restated|as restated|restated|
||£|£|£|
|**Unrestricted funds**||||
|General fund|111,421|(326,223)|(214,802)|
|**Restricted funds**||||
|Improvements to Building|-|(75,845)|(75,845)|
|Mental Health Support Fund|4,045|(7,857)|(3,812)|
||4,045|(83,702)|(79,657)|
|**TOTAL FUNDS**|115,466|(409,925)|(294,459)|
Improvements to Building relate to costs incurred in renovating the building from 2002 and are being amortised over 20 years at £39,331 per year.
Mental Health Support Fund realted to grants which have been obatined to support the charity's work to support its members. This can be in the form of Advocacy, health and well-being activities and Art therapy.
## **17. RELATED PARTY DISCLOSURES**
There were no other related party transactions for the year ended 31 March 2023 or 31 March 2022.
Page 19
The Independent Newham Users Forum (Mental Health)
## Detailed Statement of Financial Activities
for the Year Ended 31 March 2023
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations
Book sale
**Other trading activities**
Photocopy usage
Miscellaneous room hire income
**Investment income**
Rents received
Income from room hire
Deposit account interest
**Charitable activities**
Grants
**Total incoming resources**
**EXPENDITURE**
**Raising donations and legacies**
Wages
Pensions
Telephone
Printing, postage & stationary
Accountancy
**Other trading activities**
Wages
Office supplies
Printing and reproduction
**Investment management costs**
Wages
Pensions
Carried forward|31.3.23
31.3.22
£
£
5,878
4,815
554
10
6,432
4,825
288
20
1,013
11087
1,301
11,107
66,920
73,705
37,453
28,992
75
23
104,448
102,720
1,325
30,392
113,506
149,044
7,076
7,230
119
143
-
157
-
4
370
360
7,565
7,894
-
183
-
320
53
21
53
524
51,501
38,464
644
418
52,145
38,882|
|---|---|
This page does not form part of the statutory financial statements
Page 20
The Independent Newham Users Forum (Mental Health)
Detailed Statement of Financial Activities for the Year Ended 31 March 2023
|**Investment management costs**
Brought forward
Administrative expenses
Telephone
Property repairs & maintenance
Accountancy
Council Tax
Heat & light
Cleaning
Insurance
Fire Safety
PRS subscription
Waste Collection
Equipment rental
Expensed equipment
Bank service charge
Travel
Refreshments
Volunteer expenses
Consulting
**Charitable activities**
Wages
Pensions
Gifts and donations
Insurance
Telephone
Refreshments
Room hire
Local Council Rates
Heat & light
Office costs
Equipment rental
Staff travel and subsistence
Waste collection
Postage and delivery
Carried forward|31.3.23
£
52,145
158
1,053
861
14,670
1,574
15,939
2,022
4,367
828
403
384
261
252
-
10
-
2,794
986
98,707
28,872
390
-
5,098
1,063
484
-
1,574
15,939
484
980
286
384
43
55,597|31.3.22
£
38,882
119
1,133
5,315
6,028
2,355
2,541
1,852
2,746
826
583
376
147
514
3
117
1
1,049
4,760|
|---|---|---|
|||69,347
33,087
471
150
2,082
1,352
383
2,352
2,355
3,894
21
231
963
376
7|
|||47,724|
This page does not form part of the statutory financial statements
Page 21
The Independent Newham Users Forum (Mental Health)
Detailed Statement of Financial Activities for the Year Ended 31 March 2023
|**Charitiable activities**
Brought forward
Beneficiary equipment
Beneficiary expenses
Accountancy
Cleaning and security
Dues and subscription
Printing and reproduction
Volunteer expenses
Loan interest
Marketing
Depreciation of tangible fixed assets
**Other**
Depreciation of tangible fixed assets
**Support costs**
**Governance costs**
Wages
Pensions
Independent examination
Accountancy fees
Telephone
Equipment rental
Refreshments
Total resources expended
**Net expenditure**|31.3.23
31.3.22
£
£
55,597
47,724
40
473
665
381
10,632
4,161
112
104
925
1108
-
3
120
1,500
991
742
-
-
36,514
39,331
105,596
95,527
1,421
1,751
1,421
1,751
-
1,531
-
36
2,400
1,762
11,002
4,671
-
32
65
37
4
-
13,471
8,069
226,813
183,112
(113,307)
(34,068)|
|---|---|
This page does not form part of the statutory financial statements
Page 22