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2023-03-31-accounts

Charity registration number 1079831

Company registration number 03891119 (England and Wales)

DISABILITY DIRECT

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

DISABILITY DIRECT

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees D Moss
R Wood
S Sall
D Rees-Jones
P Taylor
P Cade (Appointed 1 February 2023)
S Aspey (Appointed 20 July 2023)
Secretary Amo Raju
Charity number 1079831
Company number 03891119
Key management personnel
Senior Managers of Disability Direct:
Chief Executive Officer Amo Raju
Director of Operations S Austin
Services Manager N Jacobs
Senior Managers of The Disability Syndicate Limited:
Executive Director Avtar Raju
Executive Director R Johal
Senior Manager of Nimbus:
Managing Director M Austin
Director of Partnerships M Briggs
Registered office The Richard Shaw Centre
20 Royal Scot Road
Pride Park
Derby
DE24 8AJ
Auditor Azets Audit Services
Ruthlyn House
90 Lincoln Road
Peterborough
Cambridgeshire
United Kingdom
PE1 2SP
Bankers Unity Trust Bank Plc
9 Brindley Place
Birmingham
United Kingdom
B1 2HB

DISABILITY DIRECT

LEGAL AND ADMINISTRATIVE INFORMATION

Solicitors

Nelsons Sterne House Lodge Lane Derby DE1 3WD

DISABILITY DIRECT

CONTENTS

Page
Trustees' report 1 - 6
Statement of trustees' responsibilities 7
Independent auditor's report 8 - 10
Statement of financial activities 11
Balance sheets 12 - 13
Statement of cash flows 14
Notes to the financial statements 15 - 26

DISABILITY DIRECT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charity and its subsidiary companies for the year ending 31 March 2023 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "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

The objects of the charity are to provide relief for disabled people and by the provision of, but without limitation:

This is in accordance with the charity's governing document, the Memorandum and Articles of Association as amended on 13 February 2000, 27 July 2000 and 27 April 2007.

Public benefit

The aims of our charity are to support disabled people of all ages in accessing independent living opportunities including signposting, guidance and/or representation. Our aims fully reflect the purposes that the charity was set up to further. Ensuring our work delivers our aims, we review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aim, objectives and activities remained focused on our stated purposes. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

The focus of our work

Our main objectives for the year continued to ensure we met the needs of our service users particularly in light of issues arising from social care and equalities related legislation. However, the COVID 19 pandemic steered the organization into new additional ways of operating to meeting existing objectives as well as the immediate need to ensure no service user went without.

The strategies we used to meet these objectives included:

How our activities deliver public benefit

Our main activities and who we try to help are described below. All our charitable activities focus on the facilitation of independent living for all disabled people and are undertaken to further our charitable purposes for the public benefit.

DISABILITY DIRECT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Who used and benefited from our services?

The last 12 months are quite typical in relation to who used our services i.e. disabled people, older people, carers, statutory bodies and commercial companies. However directly & indirectly all enquiries made benefited disabled people and carers.

Equal access to our services is an important issue for us. Disability Direct continues to monitor the take-up of services from all community groups as well as ensuring we successfully provide an equal and qualitative service to all who approach us. We believe equal access to our services is vital to our success and that successful outcomes must be shared by all communities that use our services.

Our information services are targeted towards disabled people regardless of background, age, gender, sexual orientation, race and religious belief. We are extremely pleased in our ability to reach disabled people from BME Communities who currently make up 18% of our total service user base. Equally important is Disability Direct’s expertise in meeting the needs of many impairment groups i.e. physical, sensory, learning difficulty and mental health problems.

Achievements and performance

This year Disability Direct continued existing projects including:

  1. Personal Budgets Support Service

  2. Welfare Rights Service

  3. National Payroll Service – DD Payroll

  4. PossAbilities – Dance & Fitness For Disabled People

  5. Support Planning Service

  6. Infrastructure support to smaller groups eg Derby Sound Community Radio

  7. Self-help activities e.g. Enabled Centre

  8. Plot To Plate Project – Allotment based activities

  9. Do What You Want Directory – Online

  10. Community Cares Neighbourhood Support

  11. General Information & Advice

  12. Outreach Services

  13. PA Training – Skills For Care

  14. The Access Card – National Membership scheme for disabled people & carers

  15. IT upskilling

  16. Short term support for those being discharged into the community by the NHS

The number of paid staff employed by Disability Direct is now 75, plus a further 31 volunteers.

Fundraising standards

Disability Direct procures grant & bid-writing expertise. Whilst applying for and tendering for grants and contracts, the charity also engages in community fundraising through raffles and sponsored events. However, the trustees have a strict policy prohibiting staff and volunteers from asking the public directly for donations in the form of ‘tinrattling’ or similar approaches. Anyone working on our behalf in a paid or voluntary capacity will wear I.D. badges clearly determining their role. Members of the public are encouraged to contact head office to confirm the identity of fundraisers.

DISABILITY DIRECT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

Total funds at the year end were £1,310,969, of which £397,820 related to restricted funds. The general reserves at 31 March 2023 are £913,149 and comprise £483,783 fixed assets and £429,366 short term working capital.

According to the free reserves policy the charity is required to hold one month of core operating costs which currently equates to £165,000. Our ambition is to have three months running costs within reserves however the total combined reserves including fixed assets amounts to £913,149.

Principal funding sources

Skills For Care - Staff Time + General Running Costs National Lottery Grants Generated income from Trading arms

Investment powers, policy and performance

The charity’s governing document imposes no specific investment power restrictions on the trustees.

Risk management

The trustees have a risk management strategy which comprises:

This work has identified that financial sustainability is the major financial risk for both the charity and its subsidiaries. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison with the bank and active management of trade debtors and creditors balances to ensure sufficient working capital by the Charity and its subsidiary companies.

Impact of COVID 19

Disability Direct has reviewed, adapted and bolstered it’s processes and services in the city and surrounding areas at the onset of the COVID 19 pandemic. Our priority has been to ensure existing services were still delivered alongside new services which would minimise the risk of infection to our users groups as well as ensuring no one went without. New activities included, shopping & prescription support, PPE sourcing and distribution and home-based activities for those unable to access day services.

With the support grants from the Lottery and donations from our trading arms, the group has ensured no jobs were lost and services were delivered. Going forward, the charity has decided to make use of the said grants by weaving the above projects into it’s core offer. Due to a national shifting in priority towards services for disabled people, more grants are announced on a weekly basis which are in the remit of the charity’s purpose. Disability Direct is predicting a fiscally stable 23/24.

DISABILITY DIRECT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Plans for future periods

Disability Direct continues to provide generic information & advice with specialist Welfare Rights advocacy. However, the organisation has noted a drastic increase in the level of hate crime and discrimination/harassment against disabled people in Derby. The board of trustees and the CEO have agreed to increase efforts in supporting anyone in the city who has experienced such behaviour.

Nimbus The Disability Consultancy Service Ltd continues to make great progress in securing itself as the complete solution to helping business make reasonable adjustments for disabled customers through the brand new ‘Access Card’. There is a strong prediction of growth in Access Card sales and increased buy-in from businesses who will equally sign-up to the benefits of the purple pound.

The Disability Syndicate continues to provide payroll, training and HR support to disabled people across the UK. The group is investing in new approaches in terms of streamlining and simplifying data required to process each payroll run. The company is also considering adding products to support social care staff directly.

The charity has weathered the funding cuts from statutory bodies and looks primarily towards the trading arms for sustenance. There will be increased services outside the office with development of the Plot To Plate Service into other parts of the city. The charity has decided one of the projects, Derby Sound Community Radio, will benefit by splitting from the main body as an autonomous organisation. The group will therefore split by the end of August 2021.

Structure, governance and management Governing document

Disability Direct is based at the Enterprise Centre, 20 Royal Scot Road, Pride Park, Derby, DE24 8AJ the company's registered office and the principal address of the charity. Disability Direct is a company limited by guarantee governed by its Memorandum and Articles of Association dated 13 February 2000 and not having a share capital (company registration No. 3891119) and Registered Charity (No. 1079831).

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

D Moss

R Wood S Rigby (Resigned 25 May 2023) E Renshaw (Resigned 1 August 2022) J Smale (Resigned 15 November 2022) B Samra (Resigned 25 September 2023) S Sall M Haye (Resigned 25 September 2023) D Rees-Jones P Taylor N White P Cade (Appointed 1 February 2023) S Aspey (Appointed 20 July 2023)

(Appointed 1 September 2022 and resigned 20 March 2023) (Appointed 1 February 2023) (Appointed 20 July 2023)

DISABILITY DIRECT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Policies and procedures for induction and training of trustees

Disability Direct has a full induction and training policy for all members new to the committee and for continuous development of all existing members.

All induction sessions for new members are run by the Chief Executive and the Chair of the MC. This is an opportunity for the new member to familiarise themselves with certain key working issues of the organisation, structure, ethos and working practice as well as give them a grounding for current and future initiatives goals, and also risks.

In summary:

An induction pack has also been created which will act as a resource for all MC members throughout their time with the company – this outlines most of the issues raised in induction as well as a number of other useful pieces of information.

Organisational structure

The directors of the company, also charity trustees for the purposes of charity law under the company’s Articles, are known as members of the Management Committee. Under the requirements of the Memorandum and Articles of Association the members of the Management Committee must be elected to the post and must be reelected at the next Annual General Meeting.

The build up of the Management Committee must be reflective of the diversity of the community which we serve and therefore a majority of the Committee must be disabled people. A proportion of this committee are also service users who have been actively encouraged to become part of our membership and take an active role in the organisation.

All trustees are required to complete a skills ‘CV’ which highlights what particular attributes they will be able to contribute to the organisation. This enables the organisation to recruit new members to the Committee to fill skills shortages.

Disability Direct’s Management Committee has 10 places filled at present by members with a wide variety of professional and personal backgrounds. Meeting on a bi-monthly basis, the MC is responsible for the strategic direction and policy of the Charity. The company secretary also sits on this committee but, along with two observers, has no voting rights.

Day to day responsibility of the running of the organisation and provision of its services is delegated to the Chief Executive.

The Chief Executive has responsibility for ensuring that the Charity delivers the services specified and that Key Performance Indicators (KPI’s) are achieved.

Pay policy for senior staff

The directors consider the board of directors, who are the Charity’s trustees, and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Charity on a day to day basis. All directors give of their time freely and no director received remuneration in the year. Details of all directors’ expenses and related party transactions are disclosed in notes 12 and 21 to the accounts.

The pay of the senior staff is reviewed annually and normally increased in accordance with average earnings.

DISABILITY DIRECT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Related parties

As well as the mission statement of Disability Direct;

“to facilitate independent living opportunities for disabled people”,

the organisation works towards and in-line with local and national government agendas including:

Implementation of Equality and Human Rights Provision of the Dept of Health Direct Payments & Personal Budgets scheme Personalisation in Derby City & Nottingham City Derby City Carers Awareness Strategy

Additionally, the organisation works with other groups in the city with similar aims including smaller self-help groups.

The charity has two wholly controlled subsidiary companies, The Disability Syndicate Limited and Nimbus: The Disability Consultancy Service Limited. The trading subsidiary companies donate surpluses directly to Disability Direct.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

The trustees' report was approved by the Board of Trustees.

D Moss

Trustee Dated: 20 December 2023

DISABILITY DIRECT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also the directors of Disability Direct for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DISABILITY DIRECT

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF DISABILITY DIRECT

Opinion

We have audited the financial statements of Disability Direct (the ‘charity’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

DISABILITY DIRECT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DISABILITY DIRECT

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

DISABILITY DIRECT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DISABILITY DIRECT

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Mark Jackson FCA DChA (Senior Statutory Auditor) for and on behalf of Azets Audit Services

22 December 2023

Chartered Accountants Statutory Auditor

Ruthlyn House 90 Lincoln Road Peterborough Cambridgeshire United Kingdom PE1 2SP

Azets Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

DISABILITY DIRECT

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and
legacies
3
234,126
80,676
Charitable activities
6
6,178
-
Other trading
activities
4
1,991,921
-
Investments
5
55,054
-
Total income
2,287,279
80,676
Expenditure on:
Raising funds
Commercial trading
operations
7
1,240,078
-
Charitable activities
8
577,672
161,130
Total expenditure
1,817,750
161,130
Net income/(expenditure)
for the year/
Net movement in funds
469,529
(80,454)
Fund balances at 1 April
2022
443,620
478,274
Fund balances at 31
March 2023
913,149
397,820		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
314,802
75,448
104,315
6,178
18,543
-
1,991,921
1,283,331
-
55,054
32,138
-
2,367,955
1,409,460
104,315
1,240,078
778,301
-
738,802
534,803
111,073
1,978,880
1,313,104
111,073
389,075
96,356
(6,758)
921,894
347,264
485,032
1,310,969
443,620
478,274		 Total
2022
£
179,763
18,543
1,283,331
32,138
1,513,775
778,301
645,876
1,424,177
89,598
832,296
921,894

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

DISABILITY DIRECT

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
14
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
19
Unrestricted funds		 2023
£
£
483,783
392,646
664,808
1,057,454
(230,268)
827,186
1,310,969
397,820
913,149
1,310,969		 2022
£
£
503,913
298,558
287,013
585,571
(167,590)
417,981
921,894
478,274
443,620
921,894		 2022
£
£
503,913
298,558
287,013
585,571
(167,590)
417,981
921,894
478,274
443,620
921,894
921,894
478,274
443,620
921,894

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 20 December 2023

D Moss Trustee

Company Registration No. 03891119

DISABILITY DIRECT

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
14
Current assets
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
19
Unrestricted funds		 2023
£
£
440,209
721,625
192,558
914,183
(44,184)
869,999
1,310,208
397,820
912,388
1,310,208		 2022
£
£
488,153
345,362
141,394
486,756
(53,776)
432,980
921,133
478,274
442,859
921,133		 2022
£
£
488,153
345,362
141,394
486,756
(53,776)
432,980
921,133
478,274
442,859
921,133
921,133
478,274
442,859
921,133

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 20 December 2023

D Moss Trustee

Company Registration No. 03891119

DISABILITY DIRECT

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash generated from operations
23
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
£
(41,688)
55,054		 £
364,429
13,366
-
377,795
287,013
664,808		 2022
£
(15,911)
32,138		 £
62,629
16,227
-
78,856
208,157
287,013

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Disability Direct is a private company limited by guarantee incorporated in England and Wales. The registered office is The Richard Shaw Centre, 20 Royal Scot Road, Pride Park, Derby, DE24 8AJ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The Statement of Financial Activities and Balance Sheet consolidate the financial statements of the charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis. No separate SOFA has been presented for the charity alone as permitted by section 408 of the Companies Act 2006.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the accounts.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Where funds are in deficit they are charged against unrestricted funds.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Income from government and other grants are recognised when the charity has entitlement to the funds, and performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Cash donations are recognised on receipt.

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

All expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measure reliably. Expenditure is classified under headings that aggregate all costs relating to the category as follows:

Cost of raising funds are those incurred in seeking voluntary contributions, organising fund raising events and the costs of running the trading subsidiaries.

Expenditure on charitable activities includes the costs of running the charity to further the purposes of the charity and their support costs.

Irrecoverable VAT is allocated to the cost heading within the Statement of Financial Activities to which it relates.

All costs are directly allocated to either the cost of raising funds, charitable activities or governance costs.

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 25 years
Leasehold land and buildings Term of lease
Equipment & vehicles 4 years
Fixtures and fittings 4 years

Equipment and computer equipment costing more than £500 is capitalised.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Donations and gifts
2,509
-
Grants received
231,617
80,676
234,126
80,676
Grants receivable for
core activities
National Heritage Grant
43,415
-
Community Action Advice
Network
30,000
-
NHS Derby & Derbyshire
29,150
-
DPO COVID-19
Emergency Fund
-
-
Hate Crime
-
-
SCOPE
97,000
-
Garfield Weston
Foundation Grant
-
15,000
Severn Trent Community
Fund
-
-
National Lottery
Community Fund
-
65,676
Coronavirus funding
-
-
Other
32,052
-
231,617
80,676		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
2,509
1,947
-
312,293
73,501
104,315
314,802
75,448
104,315
43,415
-
-
30,000
15,750
-
29,150
-
-
-
-
7,485
-
-
35,417
97,000
-
-
15,000
-
15,000
-
-
3,229
65,676
-
33,484
-
53,751
-
32,052
4,000
9,700
312,293
73,501
104,315		 Total
2022
£
1,947
177,816
179,763
-
15,750
-
7,485
35,417
-
15,000
3,229
33,484
53,751
13,700
177,816

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

4 Other trading activities

Total Total
2023 2022
£ £
Income - Charity 407,515 332,566
Rent 16,399 6,563
Trading income - subsidiaries 1,568,007 944,202
Other trading activities 1,991,921 1,283,331
5 Investments
**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Interest receivable 55,054 32,138
6 Charitable activities
Unrestricted
Unrestricted
funds funds
2023 2022
£ £
Access to Work 6,178 18,543
7 Raising funds
Unrestricted Unrestricted
funds funds
2023 2022
£ £
Commercial trading operations
Trading subsidiaries' cost of sales 17,016 12,441
Other costs 507,041 228,650
Staff costs 706,066 529,758
Depreciation and impairment 9,955 7,452
1,240,078 778,301

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

8 Charitable activities

Staff costs
Depreciation and impairment
Premises costs
Equipment and maintenance
Telephone
Printing, postage and stationery
Staff expenses and training
Advertising and promotions
Consultancy
Legal and professional fees
Miscellaneous expenses
Bank charges
Supplies
Grant funding of activities
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds
Restricted funds
Support costs
Support
costs
Governance
costs
£
£
Audit fees
-
14,000
-
14,000
Analysed between
Charitable activities
-
14,000		 Total
2023
£
465,032
51,863
91,852
32,815
6,286
14,500
7,263
3,456
4,412
14,119
16,602
6,510
7,931
722,641
2,161
14,000
738,802
577,672
161,130
738,802
2023Support costs Governance
costs
£
£
£
14,000
-
8,850
14,000
-
8,850
14,000
-
8,850		 Total
2022
£
399,245
52,380
89,120
31,098
5,915
3,978
3,731
8,025
3,889
4,772
15,981
2,031
14,022
634,187
2,839
8,850
645,876
534,803
111,073
645,876
2022
£
8,850
8,850
8,850

9 Support costs

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

11 Auditor's remuneration

The analysis of auditor's remuneration is as follows:

Fees payable to the charity's auditor and associates:
Audit of the charity's annual accounts
Other services to the group
- the audit of the charity's subsidiaries
Total audit fees
12
Employees		 2023
£
6,000
8,000
14,000		 2022
£
4,250
4,600
8,850

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was more than £60,000
is as follows:
£60,001 - £70,000		 2023
Number
51
2023
£
1,048,619
76,089
46,390
1,171,098
2023
Number
1		 2022
Number
51
2022
£
840,144
51,575
37,284
929,003
2022
Number
-

13 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

14
Tangible fixed assets
Group
Freehold land
and buildings
Leasehold
land and
buildings
Equipment &
vehicles
Fixtures and
fittings
£
£
£
£
Cost
At 1 April 2022
935,543
14,165
125,298
26,376
Additions
-
-
2,962
38,726
At 31 March 2023
935,543
14,165
128,260
65,102
Depreciation and impairment
At 1 April 2022
476,029
10,624
93,095
17,721
Depreciation charged in the year
37,422
3,541
13,847
7,008
At 31 March 2023
513,451
14,165
106,942
24,729
Carrying amount
At 31 March 2023
422,092
-
21,318
40,373
At 31 March 2022
459,514
3,541
32,204
8,654
Charity
Freehold
land and
buildings
Leasehold
land and
buildings
Equipment
& vehicles
Fixtures and
fittings
£
£
£
£
At 1 April 2022
918,393
31,316
125,048
27,814
Additions
-
-
1,859
2,061
At 31 March 2023
918,393
31,316
126,907
29,875
Depreciation and impairment
At 1 April 2022
473,322
15,351
101,226
24,519
Depreciation charged in the year
37,422
3,541
9,498
1,403
At 31 March 2023
510,744
18,892
110,724
25,922
Carrying amount
At 31 March 2023
407,649
12,424
16,183
3,953
At 31 March 2022
445,071
15,965
23,822
3,295		 Total
£
1,101,382
41,688
1,143,070
597,469
61,818
659,287
483,783
503,913
Total
£
1,102,571
3,920
1,106,491
614,418
51,864
666,282
440,209
488,153

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Debtors

Debtors
Amounts falling due within one year:
Trade debtors
Amounts owed by subsidiary undertakings
Other debtors
Prepayments and accrued income
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2023
£
285,796
-
1,528
105,322
392,646
2023
£
107,144
17,033
10,169
95,922
230,268		 Group
2022
£
237,567
-
232
60,759
298,558
Group
2022
£
37,400
10,344
68,380
51,466
167,590		 Company
2023
2022
£
£
95,267
78,828
594,798
234,824
-
-
31,560
31,710
721,625
345,362
Company
2023
2022
£
£
16,238
6,822
6,061
8,096
5,541
33,998
16,344
4,860
44,184
53,776
53,776

17 Creditors: amounts falling due within one year

The overdraft facility of the charity is secured as a first and only legal charge over the Disability Enterprise Centre, 20 Royal Scot Road, Pride Park, Derby, DE24 8AJ, by the Unity Trust Bank Plc. Unity Trust Bank Plc also has an unlimited cross guarantee between Disability Direct and The Disability Syndicate Limited.

18 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31
March 2023 are
represented by:
Tangible assets
94,244
389,539
Current assets/(liabilities)
818,905
8,281
913,149
397,820		 Total Unrestricted
funds
Restricted
funds
2023
2022
2022
£
£
£
483,783
75,062
428,851
827,186
368,558
49,423
1,310,969
443,620
478,274		 Total
2022
£
503,913
417,981
921,894

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 April resources expended 1 April 2022 resources expended 31 March
2021 2023
£ £ £ £ £ £ £
New Building Project 457,713 - (36,325) 421,388 - (36,325) 385,063
Community Transport
Association - Minibus 11,446 - (3,983) 7,463 - (2,987) 4,476
PCC - Hate Crime - 35,417 (27,136) 8,281 - - 8,281
Severn Trent Community
Fund 15,873 3,229 (19,102) - - - -
DPO COVID-19 Emergency
Fund - 7,485 (7,485) - - - -
National Lottery Community
Fund - 33,484 - 33,484 65,676 (99,160) -
Plot to Plate - 9,700 (7,032) 2,668 - (2,668) -
Garfield Weston - 15,000 (10,010) 4,990 15,000 (19,990) -
485,032 104,315 (111,073) 478,274 80,676 (161,130) 397,820

New Building Project

The purchase of the building in Pride Park was financed by East Midlands Development Agency and Derby City Council LPSA2.

Minibus

A one-off grant from Community Transport for the purchase of a new Fiat 17-seater wheelchair accessible minibus for use by projects within the group as well as other community organisations in the city.

Masonic Charitable Foundation (Plot to Plate)

This grant funds a part time member of staff for 2 years to coordinate the Plot to Plate project. The project allows disabled and elderly people to work on a fully accessible safe, supported allotment and provides activities and volunteering opportunities to local communities.

Tesco's Bags of Help (Plot to Plate)

This grant funds 2 experienced horticultor sessional workers (seasonal) to support the P2P coordinator and provides gardening activity based workshops and outreach.

Police and Crime Commissioner for Derbyshire (Hate Crime Project)

The Hate Crime project supports victims of disability related hate crime and provides training and workshops to charities, schools, colleges and community groups across Derbyshire. The grant funds a 25 hour post and covers travel and volunteer expenses.

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

19 Restricted funds

(Continued)

Severn Trent Community Fund (Plot to Plate)

This grant funds the Project Coordinator post, materials, and sessional worker costs to build the second accessible allotment and to run the activities on the existing allotment.

DPO COVID-19 Emergency Fund

This project was set up to provide the Employment advocacy support to disabled people during the COVID pandemic. The grant funds an Employment Advocate for 25 hours per week, specialist welfare rights support and other overhead costs.

Derby Sound Lottery Grant

This grant funded a 6 month project and secured a self-employed Station Manager to run training sessions and outreach through the station. Funds were also used to improve the studio and update IT and broadcasting equipment.

Lottery befriending service

Funds were provided to run a pilot care in the community project 'My Neighbour' supporting those isolated due to the pandemic. The grant paid for a current member of staff to recruit and manage volunteer support workers.

Barclays UK COVID-19 fund

As the lottery funded pilot scheme was coming to an end, we created the 'Community Cares' project to ensure people were still being supported. The project employs a Volunteer Coordinator and Community Engagement Officer, both working 28 hours a week.

DCC - The Enabled Centre

The grant funds the core costs of the Enabled Centre to enable it to continue to function through the period of the pandemic.

20 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2023
£
17,500
10,208
27,708		 2022
£
19,829
27,708
47,537

21 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023 2022
£ £
Aggregate compensation 382,706 310,446

DISABILITY DIRECT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

21 Related party transactions

(Continued)

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

During the year the group was charged consultancy fees totalling £48,218 (2022: £45,348) by A Raju & Associates Limited of whom A Raju, the Chief Executive Officer of Disability Direct, is a director and shareholder. Amounts due to A Raju & Associates Limited at the year end totalled £nil (2022: £nil).

22 Third party cash at bank

At 31 March 2023, the group had cash at bank of £11,142,070 (2022: £10,935,960) which is held on behalf of third party managed account and payroll users and therefore not included in the balance sheet of Disability Direct.

23
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase) in debtors
Increase/(decrease) in creditors
Cash generated from operations		 2023
£
389,075
(55,054)
61,818
(94,088)
62,678
364,429		 2022
£
89,598
(32,138)
59,832
(8,386)
(46,277)
62,629

24 Analysis of changes in net funds

The charity had no debt during the year.