## WAVE Trust
## **Limited by Guarantee**
## **Annual Report**
for the year ended 31 October 2020
**Registered Charity Number 1080189 & SC044168 Registered Company Number 03863110**
WAVE Trust Annual Report and Accounts to 31st October **2020**
|**Contents**|**page**|
|---|---|
|Goals, Approach and Key Findings|4|
|Letter from our Chairman|5|
|Letter from our CEO|6|
|Our People and Information|7|
|Report of the Trustees|8|
|Governance
|14|
|Statement of Trustees’ Responsibilities|14|
|Structure, Governance and Management|15|
|Independent Auditor’s Report|17|
|Statement of Financial Activities|20|
|Balance Sheet|21|
|Statement of Cash Flows|22|
|General information, scope and basis of the||
|financial statements|23|
|Notes to the Financial Statements|25|
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WAVE Trust Annual Report and Accounts to 31st October **2020**
This Annual Report has multiple references to the work being carried out by WAVE to promote trauma-informed practice in the UK. It is worth seeing some of the results achieved by organisations which have become trauma-informed.
In Washington State, in the USA, where it became embedded in many communities over a 10-year period, there have been striking improvements in community outcomes (e.g. lower offending rates, less youth crime, less family violence, better school behaviour, lower suicides, better health, increased worker satisfaction, fewer teenage pregnancies) and reductions in costs of public services.
In the diagram on the left you can see the impact on a US prison, within one year of shifting to a traumainformed approach.
In the diagram on the right, below, you can see the impacts within one year from a Housing Association in South
Wales, which adopted a Trauma-informed approach in one of its locations. 95% of their tenants had 4 or more Adverse Childhood Experiences (ACE)s. Eviction rates dropped from 50% to zero, recorded incidents from 86 to 4.
We do a lot of work with schools. There is now a mass of evidence of improvements in those when they become trauma-informed. Below are some examples.
In San Francisco, a research study was carried out on a group of schools, five years after they became trauma-informed. Incidents involving physical aggression had dropped 86% in five years (and 43% in one), out-of-school suspensions were down 95%, and student attendance and ability to learn had improved.
The school below on the right not only achieved a large reduction in exclusions, and graduation rates
which rose by over 30%, but transformed student aspirations. Before becoming trauma-informed, only 16% of students planned to move on to college. After, the figure had risen to 84%.
The school on the left cut permanent exclusions from 50 a year to zero after becoming trauma informed. Behaviour
improved dramatically. The changed atmosphere fed through into academic results, graduation rates rising from 44% to 78% in 5 years.
America funds many more research studies than we do in the UK, but we now have multiple UK schools reporting
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WAVE Trust Annual Report and Accounts to 31st October **2020**
similar benefits from becoming trauma-informed. The diagrams below show some examples.
The last example is interesting. The Key Education Centre, a PRU in Hampshire, not only significantly reduced exclusions, but the changed atmosphere where collaboration replaced conflict led to a sharp improvement in staff satisfaction and reduced staff absences.
The last example we give comes from the NHS, from a mental health ward in Cambridgeshire, which adopted a trauma-informed approach.
As in other environments, behaviour significantly improved and need for difficult staff-patient confrontations dropped dramatically, after the switch _._
Put simply, trauma-informed practice works, and WAVE has seen the enthusiasm when we have delivered training on the approach to health visitors, hospitals and other NHS staff, local authorities, local communities, police, prison inmates, safeguarding, social work and third sector staff. In 2021 – after the period of this report – we delivered multiple trainings to university staff as we sought to create the UK’s first trauma-informed university.
It should not be thought, however, that our focus is all on the negative. Far from it. A core element of our trauma training is how to foster resilience in people who have suffered trauma earlier in their lives. The impact of
imparting resilience to people is dramatic, as we have seen from our long-standing prison work. The Public Health Wales chart on the right shows the impact of resilience on lifetime outcomes such as feeling suicidal, self-harming, or suffering mental illness. The ability to give resilience, through imparting self-belief, to damaged young people is a potential gift in the hands of many people who work with them, be they school teachers, police officers, youth workers or university staff.
Finally, trauma training is all about relationships, and being **Healing happens in relationships** empathic with the pain which still lives within the bodies and minds of those who have suffered earlier trauma. In America, the State of Wisconsin has made a commitment to become trauma-informed. We finish, on the left, with their principles for trauma-informed care.
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WAVE Trust Annual Report and Accounts to 31st October **2020**
## **Goals**
- To alleviate suffering and make the world safer by reducing the root causes of violence, including child abuse, neglect and witnessing domestic violence.
- To enable a 70% reduction in child maltreatment in the UK by the year 2030 (70/30).
- o To increase the life potential of children, reduce health and income inequality and improve the economic capability of the United Kingdom by making preventing Adverse Childhood Experiences (ACEs) and other childhood disadvantage a prime objective of communities, elected bodies and policy-makers.
- To promote Trauma-informed Care (TiC), across all services and communities, to deliver effective care to those whose lives have already been blighted by trauma.
## **Approach to achieving our goals**
- Continuously researching to identify current global solutions to stop root causes of child maltreatment and other Adverse Childhood Experiences.
- Producing detailed reports, blueprints and action plans to create preventive solutions; working with policy-makers, practitioners and others to put these solutions into practice.
- Delivering training programmes, workshops and consultancy to assist organisations and communities to prevent Adverse Childhood Experiences, and adopt traumainformed practice
- Designing, and promoting the implementation of, pilot programmes to validate the effectiveness of primary prevention (i.e. preventing harm before it happens).
- Continuing to grow our power base of volunteer Ambassadors and MPs, as a key step to creating support for 70/30, and extending this support to MSPs in the Scottish Parliament, AMs in the Welsh and London Assemblies, and MLAs in Northern Ireland.
## **Key findings**
Child abuse, neglect and children witnessing domestic violence are significant root causes of later violent behaviour. The 10 family ACEs most commonly used in research studies have been demonstrated to create at least 80 forms of poor life outcomes in: physical and mental health; educational performance; and such severe disadvantage as homelessness, unemployment, addiction and criminality. They also contribute significantly to persistent poverty, and health and income inequality. While many people experience the support in childhood that fosters the resilience to overcome these disadvantages, many others suffer emotionally and physically for the rest of their lives.
- While the human brain changes throughout life, the crucial period in the formation of personality is from conception to age 3, with particular emphasis on the period up to age 2 – the prime formative period of the ‘emotional’ part of the brain.
- Children’s behaviour as early as age 3 is predictive of future aggression.
- A key marker for later life dysfunction is Disorganised Attachment in early life; this can be prevented with informed, appropriate parental support. The programme PCPS, described later in this report, delivers this and in studies in Ireland and Spain radically reduced levels of Disorganised Attachment in children.
- As well as risking becoming violent, victims of childhood maltreatment often suffer depression; in turn, this can cause them to neglect their own children.
- Poor mental wellbeing in today’s children – which can later cause an ACE for their own children – can be _**halved**_ by the consistent presence of a supportive adult.
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WAVE Trust Annual Report and Accounts to 31st October **2020**
## **Letter from our Chairman**
History will log 2020 as the year of lockdowns, personal, economic and social trauma. Against this backdrop, WAVE has continued to promote trauma informed practice in the UK, an approach which offers the best chance of achieving improved community outcomes, whilst reducing the costs of public services.
Whilst the Trust’s organisational objectives have remained the same over the last year, we have emphasised the preventative elements contained in our work, much more than we have in the past, through the delivery of training programmes, workshops and consultancy. However, this emphasis has not meant any diminution of our efforts in campaigning, and support for our ‘70/30’ initiative continues to grow through the sterling efforts of our Ambassadors and volunteers.
In our 2019 report, I suggested that it was the most challenging year faced by WAVE thus far. However, none of us could have foreseen the enormity of the challenge presented by the Covid pandemic in 2020! Like many organisations across the globe our work had to be adapted to embrace virtual working, social distancing and financial constraints. We have all had to adjust the way we behave and interact with each other in the world but, by and large, WAVE has done well in response to these agendas. Likewise financial stability has been greatly aided by support from Grant-in-aid schemes at local and national level. These have been augmented by Trustee donations and salary sacrifices on the part of our key staff. Without these we would not have been able to continue to play our part in mitigating the worst impacts Covid has brought. I salute the team and Trustees and thank you all for your continued support. Particular thanks go to David Stead, a stern supporter of our work for many years, who resigned in May 2020.
Having set the context and the background to our work in this report, I commend you to reflect upon the ‘Highlights’ section. Here you will find a substantial range of activities and a clearer picture of what we are about and have achieved during the course of the year. Given the wider operating environment, I believe we can be proud of the progress made, whilst acknowledging that we will face many more organisational and financial challenges in the year ahead.
Once again I thank you for your support and interest.
Derrick Anderson, CBE, Chairman
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WAVE Trust Annual Report and Accounts to 31st October **2020**
## **Letter from our CEO**
Our Trustees wrote last year that 2018-19 was the toughest year, financially, in our history. Writing after we reached our 25[th] Anniversary in April 2021, I can say that (in common with the whole world) 2019-20 was also a highly challenging year for WAVE.
Covid and lockdown brought cancellation and postponement of projects, just as our new strategy of self-funding via consultancy and training was proving successful. We had to switch to home working. Our method of delivering our services ceased to be face-to-face, but had to be adapted to Zoom and Teams, which required radical rethinking and redesign of interactive, and relationship building, aspects of our training. We downsized even further, while the need to put some remaining staff on furlough increased the burden on those who continued working a full month.
Despite these challenges, it was a successful year. We achieved one of our greatest goals of the last four years, which was to bring the brilliant Spanish early years’ prevention programme PCPS to the UK. WAVE has already been instrumental in bringing Family Nurse Partnership and Roots of Empathy to the UK, two excellent prevention programmes which have benefited over 80,000 children and families since 2006. We believe PCPS has greater potential to help children than either of these two programmes. See the section ‘Early Years’ Prevention’ for further detail.
We are hugely encouraged by our work with Dame Andrea Leadsom MP, as part of her Early Years Review Advisory Team, and the fact that her initial recommendations have been accepted by Government. Let us hope this is now backed by hard cash.
We were also delighted to have been able to work with so many different parts of the UK, helping them to implement trauma-informed practice. As the section above demonstrates, this is one of the most effective ways to change practice – in schools, health, police, prisons, housing, universities and elsewhere – to combine helping those who have suffered trauma in their lives, with better outcomes for service providers. After more than a year of Covid, this has never been more badly needed. We are also very pleased that our CPD-certified training has been receiving such excellent feedback.
I must also mention the magnificent work of our 70/30 Ambassador team, under the leadership of our Senior Ambassador, Alex Williamson, in gaining the support of so many MPs, MSPs, MLAs and AMs from all the elected bodies of the United Kingdom, for the 70/30 campaign to cut child abuse, neglect and domestic violence by 70% by 2030. We still have our blueprint to achieve this. Funders, if you choose to back us, we offer a bigger return on your investment than papering over the cracks – as New Philanthropy Capital stated about us, over 10 years ago.
The one disappointment has been that so many funding bids were turned down by funders who prefer to invest in direct delivery of remedial work, instead of repairing the broken system that leads to so much need. The Christie Commission in Scotland wrote about the expensive consequences that result from this failure to invest in prevention, many years ago.
George Hosking, OBE, Chief Executive Officer
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WAVE Trust Annual Report and Accounts to 31st October
**2020**
## **Our People and Information**
## **Patrons**
Baroness Hilary Armstrong The Rt Hon Iain Duncan Smith MP Lord Chris Fox General the Lord Ramsbotham GCB CBE Baroness Joan Walmsley
## **Board of Trustees**
Derrick Anderson, CBE, Chair Dawn Carrington – resigned 10[th] February 2021 Dr Caroline Clark Sue Clifford, MBE Isobel Dawson – appointed 10[th] May 2021 Nick Essex Colin Sarre David Stead – resigned 23[rd] May 2020 Peter Watt – appointed 25[th] May 2021
Dawn Carrington was unable to take up her position during the year due to ill-health. New Trustees were appointed during the first half of 2021.
## **Management**
George Hosking, OBE, CEO and Research Director Anthoulla Koutsoudi, Director of External Relations/Company Secretary Aidan Phillips, Project Manager, Trauma-informed Communities
**Registered office (since Feb 202 Scotland office** The WAVE Centre Windyhill Farm 61 Ballards Way Newmilns South Croydon, East Ayrshire CR2 7JP KA16 9LR 020-8688-3773 Tel: 07714-764370 Website www.wavetrust.org Email office@wavetrust.org
**Registered charity number**
**Registered company number**
**Independent Auditor** Geoffrey Frost BSc (Hons) FCA Blue Spire Limited Cawley Priory South Pallant Chichester West Sussex, PO19 1SY
**Bankers**
Barclays Bank PLC 1 North End Croydon Surrey, CR9 1SX
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WAVE Trust Annual Report and Accounts to 31st October
**2020**
## **Report of the Trustees**
The Trustees have pleasure in presenting their annual report, incorporating the directors’ report, for the purposes of the Charities Act 2011 and Sections 415 to 419 of the Companies Act 2006, together with the accounts for the year ended 31 October 2020. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’, (FRS 102), in preparing the annual report and financial statements of the charity.
## **Objectives and Activities**
The objects for which the charity is established are for the advancement of public education, in particular by undertaking activities intended (I) to reduce all forms of interpersonal violence, (II) to reduce non-accidental harm to children, (III) to promote the social and emotional development of children and the doing of such things as are incidental or conducive to the attainment of those objectives.
The main activities undertaken by the charity in the year under review in furtherance of its objectives to achieve its aims and for the public benefit are set out below. In selecting and planning these activities, the trustees have had regard to the Charity Commission’s guidance on public benefit.
## **Highlights of 2020**
In 2019 the charity moved from a history of being funded by grant-making trusts and philanthropists to seeking to fund ourselves by expanding our traditional consultancy and training work, while maintaining pro bono support.
This change had begun to pay dividends in 2020, when Covid struck, and like many charities we had to go through a major re-adjustment. In particular, we had to adapt rapidly to delivering our consultancy and training online, rather than face-to-face. Some projects were delayed or cancelled; others did not take place as agencies switched priorities to tackling Covid. Fortunately, Government furlough funding helped us through this challenging time, and the charity returned a small profit for the year. Hence our reserves, which had been significantly depleted by the events of 2019, were slightly improved by the end of 2020.
Through this challenging period we have maintained our two main priorities of seeking to improve outcomes for children at risk, promoting and supporting prevention of harm before it happens, and reduction of disadvantage after harm has taken place.
Our achievements during the year included the following:
- Working closely with Camden Council in London, to strengthen its already very good Early Years offer, adding two strong new prevention elements
- Extensive delivery of trauma-informed training for organisations, maintaining last year’s pattern of high feedback scores from participants
- Though stop-start because of Covid, continuing to support creation of traumainformed communities
- Building on last year’s partnership with the World Health Organisation to develop Trauma-informed practice and communities across Europe
- Significant impact on policies towards children, influencing election manifestos and party policy documents in the UK, Scotland, Wales and N Ireland
- Building even stronger support for our 70/30 ‘prevention of harm to children’ project, despite the loss of many MP supporters in the 2019 General Election
- Our continuing role in running All Party and Cross Party Prevention of Adverse Childhood Experiences (ACE) Groups in the UK and Scottish Parliaments
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WAVE Trust Annual Report and Accounts to 31st October **2020**
## **EARLY YEARS PREVENTION**
Late in 2019, the London Borough of Camden asked us to support them in taking their early years offer to a higher level of effectiveness. This was an exceptional opportunity as Camden already had one of the best early years offers that we have seen in the UK. We identified that the main area for potential improvement lay in addressing what was identified in our 2013 report (Conception to age 2 – the age of opportunity) as the prime missing factor in most UK early years services, support to improve attunement between parents and babies in the first 18 months of the babies lives.
We recommended that they introduce 2 new programmes – Brazelton and PCPS. Brazelton is a universal programme to teach new mothers how to recognise and respond to the communications of their babies in the first few weeks after birth. It has been implemented by Camden though with delays caused by the Covid crisis in 2020.
## **PCPS (Parent-Child Psychological Support)**
PCPS is a universal programme delivered to mother and baby (or ideally mother, father and baby) between first contact 6 weeks after birth and when the baby is 18 months of age. During this time the mother visits a Health Centre, Children’s Centre or Family Hub when the baby is 6 weeks, and then at 3,6 9, 12, 15 and 18 months of age.
At each visit the child and mother are seen by three professionals (such as a nurse, health visitor, psychologist or speech and language therapist) who assess the physical and social and emotional development of the child, the infant-caregiver interaction, and the mother’s wellbeing and any need for support. The visit takes an hour approximately. The key element is a video film taken during most visits which captures the mother and child interacting at play. This is then coded to provide specific guidelines to the parent for good quality attunement with their infant. This information is part of a multidimensional assessment including more than 20 measures that allow very personalised support. During each visit, the mother receives highly supportive input, always reflecting her strengths and what she does well, guiding her towards interaction which will be more beneficial both to their relationship and to the child’s development.
This universal service has been designed with a preventive and early detection purpose. Every service day, the team screen all the babies and parents seen. Those cases detected with special needs are discussed in a PCPS monthly meeting and professionals approach the caseload by deciding actions to help the different needs presented that may need referral to other specialised services, such as addiction, depression or domestic violence.
In studies in Spain and Ireland, where the programme has been delivered for 20 years, children show much better physical and social and emotional development, parents experience less stress and the child’s relationship capability at age 15 months shows improvement over the norm for babies of that age. Being specific, whereas in most populations 40% of babies would show insecure attachment at 15 months (an indicator for higher risk for poor relationships and poor mental health later in life) in PCPS babies this had dropped to 20%. Levels of disorganised attachment – typical of children who need to be taken into care or at high risk for mental health problems, aggression and very poor relationship skills through life, compared with a typical 15%, PCPS babies were closer to 7%. If we can replicate these results in the UK the impact would be stunning, potentially saving thousands of children from lives of disadvantage.
During the year we worked with Camden to prepare for the introduction of PCPS in 2021, and at the time of writing this report it has been launched, albeit delayed because of Covid.
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WAVE Trust Annual Report and Accounts to 31st October **2020**
## **Other Local Areas**
During the year we also provided advice and support to other areas which have expressed interest in our ideas for an improved early years offer, but they have not yet committed the resources to follow this in practice. These include Drumchapel (a deprived area in Glasgow), Dundee and West Midlands.
## **PROMOTING TRAUMA-INFORMED PRCTICE IN THE UK**
A major part of WAVE’s work during the year was promoting and supporting the adoption of trauma-informed practice by organisations in the UK. Trauma is widespread in the UK. Even before Covid, studies showed that at least 50% of the UK population had suffered one or more major traumae (i.e. Adverse Childhood Experiences, or ACEs) in childhood, with 15% of the population having suffering at least 4 different types. Trauma is the internal memory of an event, or series of events, which have never been fully processed and which have lasting adverse effects.
A trauma-informed approach **Realises** the widespread impact of trauma and understands the potential paths for recovery; **Recognises** the signs and symptoms of trauma in clients, families, staff and others; **Responds** by fully integrating knowledge about trauma into policies, procedures and practices; and seeks actively to avoid **Re-traumatisation** . (The 4 ‘R’s: US Substance Abuse and Mental Health Services Administration, SAMSHA.)
## **Consultancy support to local areas**
We provided consultancy support to a number of local areas during the year. The Borough of Camden asked us to help them set up trauma-informed communities in 5 different localities within their boundaries. This work began late in 2019 but was paused in Spring 2020 because of Covid and did not restart until late 2020. In Drumchapel (Glasgow) we worked throughout the year with a wide range of local community groups creating an active trauma-informed community in that deprived part of Glasgow. Reading brought us in to work with them in late 2019 to address a number of conferences or workshops on how to embed trauma-informed practice within the town.
## **Trauma Training**
Expressing the policy shift described in last year’s Annual Report, we provided CPD certified trauma training to education, health, local authority, police, social work and third sector staff in a wide range of communities in the UK including Camden, Croydon, Glasgow, Lambeth, Stockport and Warrington. In Croydon, where the local authority asked us to train the staff of 10 different schools or colleges, feedback from Head and Deputy Head teachers on the value the schools obtained from the training included:
• ‘ _The WAVE Trust training was absolutely fabulous. We see the huge value in becoming fully trauma-informed. It would be valuable to develop this across Croydon_ ’ - St. Mary’s Catholic High School
• _‘We cannot recommend this training highly enough. All staff in all schools should receive it to support students and their communities’_ - The Quest Academy
• _‘Our school staff have benefited hugely from the high quality training WAVE Trust have provided’_ - Archbishop Tenison’s Church of England High School
• _‘I cannot imagine how our staff would have coped if they had not been trauma-informed trained with what has been the most unusual academic year’_ - Castle Hill Academy
We ask participants in our trainings to provide feedback on four separate measures of the value and effectiveness of the training. Average scores for the year were over 9 out of 10.
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WAVE Trust Annual Report and Accounts to 31st October **2020**
Covid did prove a significant challenge during the year. Whereas, pre-Covid, all our trainings were delivered face to face, we had to adapt and redesign all our training to be delivered online using Zoom or Teams. This required a very different approach to issues such as participant interaction. Many potential projects were cancelled or postponed during the year as local authority or health staff had to focus their attention entirely on dealing with the consequences of the pandemic.
We were able to carry out development work with a number of areas which were not in a position to begin work with us within this financial year, but which have become clients during 2020-2021.
## **Association of Directors of Public Health (ADPH)**
In 2019, ADPH asked us to conduct a study of good UK trauma-informed practice in the 4 domains of Education, Health, Housing and Police. Aidan Phillips, our Trauma-informed Communities Project Manager, led this project during which he interviewed more than 70 successful and/or pioneering UK trauma-informed practitioners, seeking to find the common threads of learning and good practice from each of these areas. This was all then brought together into a report for the Association, recommending the core messages for any area intending to follow this pathway.
## **PROMOTING TRAUMA-INFORMED PRACTICE ACROSS EUROPE**
In recognition of the leading role WAVE has played in promoting trauma-informed practice in the UK, in 2019 the City of Oslo and the World Health Organisation approached WAVE and asked us to partner with them in creating a European Network of Trauma-Informed Cities and Communities. The three of us then collaborated to arrange the first meeting of this group, in Oslo, on 1st November 2019.
While there were individual representatives from Germany (Dusseldorf), Ireland (Cork), Netherlands (Utrecht), Portugal (Braga), and Norway (Oslo and Bergen), by far the largest attendance came from the UK with participants from Belfast, Gloucestershire, Lancashire, Manchester, Reading, the Scottish Violence Reduction Unit, Public Health Wales and WAVE Trust.
In February 2020, WAVE organised a conference in Bristol of towns, cities and counties seeking to establish trauma-informed communities, many of whom had been unable to attend Oslo for either financial or operational reasons. WAVE co-chaired the conference along with Bristol who provided the accommodation. Participants there included Bristol, Camden, Gloucestershire, Hampshire & Isle of Wight, Lancashire, London, Manchester, North Somerset, Plymouth, Reading, Public Health Wales, and the World Health Organisation.
Sadly, because of the requirement for both UK Public Health and W.H.O staff to focus on Covid responses since March 2020, the project has remained largely in abeyance since then.
The one exception has been that we were approached by the City of Oslo who asked us to design and deliver a half day seminar on trauma-informed practice, with a particular emphasis on prevention and trauma-informed policing. This was delivered in October 2020 and received extremely positive feedback.
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WAVE Trust Annual Report and Accounts to 31st October **2020**
## **E) EDUCATING AND SUPPORTING POLICY MAKERS**
A significant element of WAVE’s work, during our 25-year history, has been to create and maintain an in-depth research based understanding of the root causes of violence, child abuse and dysfunctional lives. We have also identified global best practice in addressing these root causes.
As our commitment is to produce significant reductions in these blights on society, it follows that we need to help policy makers to both understand the causes and the most effective solutions. Hence, educating and supporting policy makers, at both national and local level, has always been an important part of our work.
Since the loss of our philanthropic supporters, who were very happy to fund this type of work, we have not found it possible to replace these with grant making funders. This has meant that this mission has either been funded from our reserves (2018-19), or from surpluses produced from our training and consultancy (2019-20). It has also been strongly sustained by our dedicated volunteer supporters and pro bono input from Cameron Consultants.
## **Election manifestos and party policies**
One form of this work is providing input to election manifestos. Thus in December 2019 the Labour General Election Manifesto included the commitment ‘to reduce the impact of Adverse Childhood Experiences’; the Liberal Democrat Manifesto to ‘reducing Adverse Childhood Experiences by investing further in services during pregnancy and the first two years of a child’s life ’; Plaid Cymru’s Manifesto had over 500 words on ACEs and prevention. All three followed months of engagement between WAVE and key individuals in those parties.
Since then, following engagement with us, Plaid Cymru in Wales, the Alliance Party in Northern Ireland, and the Labour Party in Scotland have all adopted ‘70/30’ as official party policy.
## **All Party Parliamentary Group (APPG) for the Prevention of Adverse Childhood Experiences**
We also educate and support policy makers through the work of the two cross party groups which we run in the UK and Scottish Parliaments. In June 2020, we ran a Zoom meeting of the APPG on the topic of the impact of Covid 19 and lockdown on ACEs and trauma. This was very well attended. We presented the results of a survey we carried out in advance which reported significant increases in levels of mental health problems, loss of employment or work security, domestic violence, bereavement and financial loss. Jim Clifford of Sonnet Impact delivered a very powerful presentation on the large and disturbing impact on levels of child abuse.
In October we ran an APPG on the subject of the government White Paper ‘A Smarter Approach to Sentencing’. Speakers included Supt. Stan Gilmour of Thames Valley Police, Steve Chalk of Oasis Global, who is setting up a secure school for young offenders, and Adrian Crossley, Head of Criminal Justice for the Centre for Social Justice. This led to a commitment for further work on trauma-informed understanding in the legal system.
**Cross Party Group (CPG) for the Prevention and Healing of Adverse Childhood Experiences**
Our Scottish CPG had meetings in November 2019, and by Zoom in June and September 2020. The 2019 meeting was on criminal justice and provided very powerful evidence on
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how Scotland is embedding trauma-informed practice in its criminal justice system. Examples include using screens for some witnesses, allowing others to give evidence remotely, and vulnerable children do not appear in court. More than 14,000 police and support staff have been trauma trained, and training was also provided for judges, sheriffs, solicitors and legal professionals.
The September meeting was on the subject of ‘Children’s mental health in the context of recovering from the pandemic’. Speakers came from the Scottish Government Mental Health Directorate, two NHS Boards and a high school. Attendance was excellent and a very productive debate took place.
## **Andrea Leadsom Early Years’ Review**
WAVE Trust has been working with Andrea Leadsom since 2012, when we set up The Early Years Champions together, the group which worked with us both to produce the ‘Conception to age 2’ report and the Critical 1001 Days Manifesto.
In July 2020, the Prime Minister asked Andrea Leadsom to carry out a review into how to improve outcomes for babies and children from disadvantaged backgrounds.
Andrea set up an expert advisory group to work with her on this project and our CEO George Hosking was invited to be part of this. This work ran through to 2021 and we will report more fully on this next year.
## **Other work on policy**
During the year members of the WAVE team had meetings with The Parliamentary UnderSecretary of State for Safeguarding, The Office of the First Minister of Wales, The Minister for Children and Families in Wales, and the First Minister for Northern Ireland, as well as significant numbers of other policy makers at both national and local level in the UK.
## **The 70/30 ACE Prevention Initiative**
Since 2009, WAVE has been building support for our ‘70/30’ initiative to reduce levels of key ACEs such as abuse, neglect and children witnessing domestic violence, by 70% by the year 2030. Our action plans outlining how to deliver this goal will only be achieved when national and local priority is given to preventing ACEs before they happen.
Prior to the December 2019 General Election, we had built support to 342 MPs (53% of the UK Parliament). Post-election, with many sitting MPs losing their seats, the numbers dropped to 266. Through the hugely impressive and dedicated work of our team of 70/30 Ambassadors, that number had been built to 423 by the end of October 2020.
In Scotland, the number of MSP supporters rose from 69 in November 2019 to 121 at the end of October 2020. In Wales, support rose from 46 to 48 Assembly Members (we already had the support of almost all backbenchers in Wales). In Northern Ireland, from a standing start after the Assembly re-opened, after a 3 year suspension, in January 2020, by the end of October we had the support of 40 Assembly Members.
Tribute must be paid here to our Senior 70/30 Ambassador Alex Williamson who has done a brilliant job of leading our team of Ambassadors to deliver these striking levels of support for our most important objective.
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WAVE Trust Annual Report and Accounts to 31st October **2020**
## **GOVERNANCE AND FINANCE**
## **Governance**
During the year, we lost David Stead as a Trustee. David has been a very active trustee, and a key member of our Development Committee, and we are very sorry to have lost him. In addition Dawn Carrington, newly appointed as a Trustee in July 2019, has been unable to attend meetings because of ill-health, so we have been below normal strength. Three new Trustees were appointed in the first half of 2021.
## **WAVE fundraising**
Our strategic shift of last year, to fund ourselves mainly via income raised from consultancy and training, began to pay off. Money raised in this way significantly exceeded income from grants, even allowing for the very welcome grant contribution from the Government’s furlough scheme. Had Covid not struck, the rewards from earned income would have been significantly higher. We very much appreciate the income received from a grant-making trust which prefers to remain anonymous, and generous donations by our Chair of Trustees, Derrick Anderson.
## **Financial Review**
On a SORP basis, at £399,728, WAVE’s incoming resources were 15% higher than in the previous year; at £390,388, expenditure was 14% lower. The combination of these two shifts turned last year’s deficit of £110,162 into a surplus of Income over Expenditure £9,681. This has been achieved at the cost of significant downsizing and exceptional effort by our remaining staff.
## **Reserves Policy**
The charity’s Reserves Policy is to hold unrestricted reserves at 6 months of planned expenditure. At year end, our total reserves were £146,029. Unrestricted reserves were £114,862. This represented 34 weeks of planned unrestricted expenditure, and so having fallen slightly short of the target last year, this year we exceeded it. In view of the uncertain nature of 2020-21, both due to Covid and the relatively short period of operation of our new financial strategy, we consider this to be prudent.
## **Looking ahead**
We have survived the loss of our major funders in 2017-19, come through both coronavirus and lockdown in 2020 and 2021, and reached our 25[th] Anniversary in April 2021. We have executed a radical change in our financial strategy, so far with success, and – writing in mid2021 - are still standing. We would have wished the last few years to have been plainer sailing, but we remain committed to our ambitious 70/30 goal, and the parallel goal of persuading policy makers to spend more money on primary prevention. We are buoyed by the enthusiasm of our staff, our volunteers and our trustees. A lot of hard work lies ahead of us, but in those 25 years we have never wavered from our goal of protecting vulnerable children from harm – before it happens. We will not cease to be committed now.
## **Statement of Trustees’ Responsibilities**
The Trustees (who are also directors of WAVE Trust for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with the applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the
14
WAVE Trust Annual Report and Accounts to 31st October **2020**
incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles of the Charities SORP (FRS 102);
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware; and
- The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Structure, Governance and Management**
WAVE Trust is a charity limited by guarantee (registered company number: 03863110), incorporated on 21 October 1999 under a memorandum and articles of association (as amended by special resolutions with the latest dated 15 July 2013). WAVE Trust registered as a charity with the Charity Commission for England and Wales (registered charity number: 1083059) on 31 March 2000 and with the Scottish Charity Regulator (OSCR) (registered charity number: SC044168) on 24 July 2013.
New trustees are appointed to the Board by the existing Trustees when a skills or knowledge gap is identified. New trustees are provided with background to the charity and its activities together with guidance on their responsibilities and any further training considered beneficial to their duties.
The charity is controlled by the Trustees who provide overall stewardship and guidance on governance matters and future activities, while day to day management is delegated to the management team.
15
WAVE Trust Annual Report and Accounts to 31st October **2020**
Human resources decisions, such as organisation structure and pay of key personnel are determined by the senior management team, and endorsed or amended by the Trustees. The Trustees and management have assessed the major risks to which the charity is exposed, in particular those relating to the specific operational areas of the charity and its finances. The Trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks. Major risks are reviewed at quarterly meetings of Trustees and management.
This report has been prepared having taken advantage of the small companies’ exemption in the Companies Act 2006.
Approved by the Board of Trustees and signed on their behalf
Caroline Clark Date 29 July 2021 Vice-Chair of Trustees
16
WAVE Trust Annual Report and Accounts to 31st October
**2020**
## **Independent Auditor’s Report to the Trustees and Members of WAVE Trust**
## **Opinion**
We have audited the financial statements of WAVE Trust (the ‘charitable company’) for the year ended 31 October 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 October 2020, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The trustees’ are responsible for the other information. The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance or conclusion thereon.
17
WAVE Trust Annual Report and Accounts to 31st October
**2020**
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **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 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Report of the Trustees; or
- the charitable company has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 145 of the Charities Act 2011 and under section 44(1)(c) of the Charities Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under those Acts.
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
18
WAVE Trust Annual Report and Accounts to 31st October
**2020**
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 for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-foraudit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company’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 charitable company’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Cawley Priory South Pallant Chichester West Sussex PO19 1SY
## Blue Spire Limited Statutory Auditor
29 July 2021 Date
Blue Spire Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
19
WAVE Trust Annual Report and Accounts to 31st October **2020**
## **Statement of Financial Activities (including income and expenditure account)**
|**Note**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
**1**
Charitable activities
**2**
Other trading activities
**3**
Investments
**4**
Other income - CJRS claims
**Total**
**EXPENDITURE ON:**
Raising funds
**5**
Charitable activities
**6**
**Total**
Net gains/(losses) on investments
**Net Income/(expenditure)**
**Transfers between funds**
**15**
**Net movement in funds**
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
**15**
**Total funds carried forward**
**15**|**Unrestricted**
**Funds**
**£**
288,513
31,477
21,434
440
19,767
361,631
53,302
267,513
320,815
341
41,157
-
41,157
73,705
114,862|**Restricted**
**Funds**
**£**
38,097
-
-
-
-
38,097
-
69,573
69,573
-
(31,476)
-
(31,476)
62,643
31,167|**2020**
**Total**
**Funds**
**£**
326,610
31,477
21,434
440
19,767
399,728
53,302
337,086
390,388
341
9,681
-
9,681
136,348
146,029|**2019**
**Total**
**Funds**
**£**
334,199
-
11,621
853
-|
|---|---|---|---|---|
|||||346,673|
|||||81,074
374,721|
|||||455,795|
|||||(1,040)|
|||||(110,162)
-|
|||||(110,162)
246,510|
|||||136,348|
The charity has no recognised gains or losses other than those dealt with in the Statement of Financial Activities.
None of the charity's activities were acquired or discontinued during the above financial years.
20
WAVE Trust Annual Report and Accounts to 31st October **2020**
## **Balance Sheet as at 31 October 2020**
|**Note**
**FIXED ASSETS**
Investments
**11**
**CURRENT ASSETS**
Debtors
**12**
Cash at bank and in hand
**Total current assets**
**CURRENT LIABILITIES**
Creditors: amounts falling due within one year
**13**
**Net current assets/(liabilities)**
**Net assets/(liabilities)**
**THE FUNDS OF THE CHARITY**
**Restricted funds**
**15**
Fair value reserve
**15**
General funds
**15**
**Unrestricted funds**
**Total charity funds**|**£**
**£**
21,186
26,536
122,026
148,562
23,719
124,843
146,029
31,167
8,097
106,765
114,862
146,029
**2020**|**£**
**£**
20,845
5,521
135,509
141,030
25,527
115,503
136,348
62,643
7,756
65,949
73,705
136,348
**2019**|**£**
**£**
20,845
5,521
135,509
141,030
25,527
115,503
136,348
62,643
7,756
65,949
73,705
136,348
**2019**|
|---|---|---|---|
||||136,348|
||||62,643
7,756
65,949|
||||73,705|
|||||
||||136,348|
For the year ending 31 October 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors’ responsibilities:
- The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime under the Companies Act 2006.
The accompanying notes form part of these financial statements.
Approved by the trustees and signed on their behalf.
Director: DERRICK ANDERSON
Company Number 3863110
Date 29 July 2021
21
WAVE Trust Annual Report and Accounts to 31st October **2020**
## **Statement of Cash Flows**
|**Note**
**£**
**£**
**Net cash flow from operating activities (see below)**
(13,923)
**Cash flow from investing activities**
Interest received
440
**Net cash flow from investing activities**
440
**Net increase/(decrease) in cash and cash equivalents**
(13,483)
**Cash and cash equivalents at 1 November 2019**
135,509
**Cash and cash equivalents at 31 October 2020**
122,026
**Cash and cash equivalents consist of:**
Cash at bank and in hand
122,026
**Cash and cash equivalents at 31 October 2020**
122,026
**Reconciliation of net income to net cash flow from operating activities**
**£**
**£**
Net income for the year
9,681
Adjusted for:
Interest and dividends
(440)
(Gains)/losses on investments
(341)
Decrease/(increase) in debtors
(21,015)
Increase/(decrease) in creditors
(1,808)
(23,604)
(13,923)
**2020**
**2020**|**£**
**£**
(129,319)
853
853
(128,466)
263,975
135,509
135,509
135,509
**£**
**£**
(110,162)
(853)
1,040
(3,154)
(16,190)
(19,157)
(129,319)
**2019**
**2019**|**£**
**£**
(129,319)
853
853
(128,466)
263,975
135,509
135,509
135,509
**£**
**£**
(110,162)
(853)
1,040
(3,154)
(16,190)
(19,157)
(129,319)
**2019**
**2019**|
|---|---|---|
|||(129,319)|
22
WAVE Trust Annual Report and Accounts to 31st October **2020**
## **Accounting Policies**
## **General information, scope and basis of the financial statements**
WAVE Trust is an incorporated charity, limited by guarantee, incorporated in England with the company number 3863110. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information page of these financial statements. The nature of the charity’s operations and principal activities are outlined in the trustees' report.
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **Incoming resources**
All incoming resources are included in the Statement of Financial Activities (SoFA) when the Charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
Investment income is earned through holding assets for investment purposes such as shares and cash deposits. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the Charity’s right to receive payment is established.
## **Resources expended**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Expenditure on raising funds; which includes costs incurred to generate income to support the charity's activities
- Expenditure on charitable activities; which includes direct costs incurred in the furtherance of the charity's objects
Expenditure allocated to governance costs comprises the costs of production of statutory accounts and the accountants’ report, together with any costs associated with trustees’ meetings, legal advice for trustees and costs associated with constitutional and statutory requirements.
## _Employee benefits_
When employees have rendered service to the Charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
23
WAVE Trust Annual Report and Accounts to 31st October **2020**
## **VAT**
The Charity registered for VAT with effect from 1 February 2021.
## **Taxation**
The charity is considered to pass the tests set out in sections 466 to 493 Corporation Tax Act 2010 (CTA 2010), as such no income tax is payable on the charity's activities.
## **Fixed asset investments**
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably.
## **Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
## **Going concern**
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
The COVID-19 outbreak was declared a pandemic by the World Health Organisation on 11 March 2020; which may affect the Charity. Although the Trustees recognise that this could bring uncertainty, there is no expectation on the part of the Trustee that the Charity will not remain a going concern for the 12 months subsequent to the signing of these financial statements. Therefore, the financial statements have been prepared on a going concern basis.
24
WAVE Trust Annual Report and Accounts to 31st October **2020**
## **Notes to the Financial Statements**
## **1. Donations and legacies**
|Donations
Donated services*
Grants receivable
**2. Charitable activities**
Funded charitable activities
**3. Other trading activities**
Income from conferences and events|**Unrestricted**
**Restricted**
**Funds**
**Funds**
**£**
**£**
44,779
-
217,667
-
26,067
38,097
288,513
38,097
**Unrestricted**
**Restricted**
**Funds**
**Funds**
**£**
**£**
31,477
-
31,477
-
**Unrestricted**
**Restricted**
**Funds**
**Funds**
**£**
**£**
21,434
-
21,434
-
*Donated services represents the
amounts paid.|**2020**
**Total**
**Unrestricted**
**Restricted**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
44,779
16,932
-
217,667
270,467
-
64,164
1,800
45,000
326,610
289,199
45,000
**2020**
**Total**
**Unrestricted**
**Restricted**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
31,477
-
-
31,477
-
-
**2020**
**Total**
**Unrestricted**
**Restricted**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
21,434
11,621
-
21,434
11,621
-
value of services provided to the charity in exces|**2019**
**Total**
**Funds**
**£**
16,932
270,467
46,800|
|---|---|---|---|
||||334,199|
||||**2019**
**Total**
**Funds**
**£**
-
s of the|
||||-|
||||**2019**
**Total**
**Funds**
**£**
11,621|
||||11,621|
## **4. Income from investments**
|Bank interest
Dividend income|**Unrestricted**
**Funds**
**£**
228
212
440|**Restricted**
**Funds**
**£**
-
-
-|**2020**
**Total**
**Funds**
**£**
228
212
440|**Unrestricted**
**Funds**
**£**
556
297
853|**Restricted**
**Funds**
**£**
-
-
-|**2019**
**Total**
**Funds**
**£**
556
297|
|---|---|---|---|---|---|---|
|||||||853|
## **5. Raising funds**
|**5. Raising funds**||||||
|---|---|---|---|---|---|
|**Unrestricted**
**Funds**
**£**
Donated services - staff costs
36,938
Salaries and wages
14,378
Other costs of generating voluntary incom
1,986
53,302|**Restricted**
**Funds**
**£**
-
-
-
-|**2020**
**Total**
**Funds**
**£**
36,938
14,378
1,986
53,302|**Unrestricted**
**Funds**
**£**
60,055
19,185
1,834
81,074|**Restricted**
**Funds**
**£**
-
-
-
-|**2019**
**Total**
**Funds**
**£**
60,055
19,185
1,834|
||||||81,074|
25
WAVE Trust Annual Report and Accounts to 31st October **2020**
## **6. Charitable Activities**
|Donated services - staff costs
Salaries and wages
Other costs of charitable activities
Governance costs (see note 7)
**7. Governance costs**
Donated services - staff costs
Salaries and wages
Other costs of governance
**8. Auditors' remuneration**
Auditors' remuneration - Audit|**Unrestricted**
**Funds**
**£**
166,114
32,263
27,872
41,264
267,513
**Unrestricted**
**Funds**
**£**
14,615
23,512
3,137
41,264
**Unrestricted**
**Funds**
**£**
3,137|**Restricted**
**Funds**
**£**
-
60,892
8,681
-
69,573
**Restricted**
**Funds**
**£**
-
-
-
-
**Restricted**
**Funds**
**£**
-|**2020**
**Total**
**Funds**
**£**
166,114
93,155
36,553
41,264
337,086
**2020**
**Total**
**Funds**
**£**
14,615
23,512
3,137
41,264
**2020**
**Total**
**Funds**
**£**
3,137|**Unrestricted**
**Funds**
**£**
193,552
4,085
47,964
20,195
265,796
**Unrestricted**
**Funds**
**£**
16,860
-
3,335
20,195
**Unrestricted**
**Funds**
**£**
3,335|**Restricted**
**Funds**
**£**
-
100,643
8,282
-
108,925
**Restricted**
**Funds**
**£**
-
-
-
-
**Restricted**
**Funds**
**£**
-|**2019**
**Total**
**Funds**
**£**
193,552
104,728
56,246
20,195|
|---|---|---|---|---|---|---|
|||||||374,721|
|||||||**2019**
**Total**
**Funds**
**£**
16,860
-
3,335|
|||||||20,195|
|||||||**2019**
**Total**
**Funds**
**£**
3,335|
## **9. Wages and salary cost**
|Gross wages
Employer's national insurance costs (net of employer's allowance)
Employer's pension contributions
The average number of employees, calculated on an average headcount basis, was:|**2020**
**Total**
**Funds**
**£**
118,758
11,147
888
130,793
**2020**
4|**2019**
**Total**
**Funds**
**£**
115,461
7,668
784|
|---|---|---|
|||123,913|
|||**2019**
5|
There are no employees who received total employee benefits (excluding employer pension costs) of more than £60,000
During the year under review the charity's two (2019: three) members of key management personnel received remuneration benefits totalling £80,771 (2019: £50,755) consisting of salaries, employer's national insurance and employer's pension contributions.
## _Defined contribution pension schemes_
The charity contributes to a defined contribution pension scheme on behalf of its employees. The total shown in the note above was the total amount payable in the year under review.
26
WAVE Trust Annual Report and Accounts to 31st October **2020**
## **10. Related party transactions**
There were no reimbursements of expenses to trustees in the year under review (2019: none) and no remuneration was paid to trustees in this or the preceding year.
## **11. Investments - listed investments**
|Market value brought forward
Unrealised gains/(losses)|**2020**
**Total**
**Funds**
**£**
20,845
341
21,186|**2019**
**Total**
**Funds**
**£**
21,885
(1,040)|
|---|---|---|
|||20,845|
The Trust holds 200 (2019: 200) Johnson & Johnson common stock.
## **12. Debtors**
|Accrued income
Rent deposits|**2020**
**Total**
**Funds**
**£**
24,534
2,002
26,536|**2019**
**Total**
**Funds**
**£**
5,521
-|
|---|---|---|
|||5,521|
## **13. Creditors: Amounts falling due within one year**
|Trade creditors
Social security and other taxes
Deferred income (see below)
Other creditors|**2020**
**Total**
**Funds**
**£**
3,892
6,464
2,890
10,473
23,719|**2019**
**Total**
**Funds**
**£**
4,620
-
5,700
15,207|
|---|---|---|
|||25,527|
## **13a. Analysis of movement in deferred income**
|Training and visitor projects|**Brought**
**forward**
**£**
5,700
5,700|**Released**
**in year**
**£**
(5,700)
(5,700)|**Deferred**
**in year**
**£**
2,890
2,890|**Carried**
**forward**
**£**
2,890|
|---|---|---|---|---|
|||||2,890|
The above deferred income arises from the conditions of use set by the funder.
## **14. Analysis of net assets between funds**
|Investments
Current assets
Current liabilities|**Unrestricted**
**Funds**
**£**
21,186
114,505
(20,829)
114,862|**Restricted**
**Funds**
**£**
-
34,057
(2,890)
31,167|**2020**
**Total**
**Funds**
**£**
21,186
148,562
(23,719)
146,029|**2019**
**Total**
**Funds**
**£**
20,845
141,030
(25,527)|
|---|---|---|---|---|
|||||136,348|
27
WAVE Trust Annual Report and Accounts to 31st October **2020**
**15. Analysis of net movement in funds**
|_Restricted funds_
70/30 Fund
ADPH
Camden Health Visiting
City of London
Corra Emergency fund
Brighter Futures for Children
_Unrestricted funds_
Fair value reserve
General fund
Total unrestricted funds
Total funds
**Comparative - 2019**
Restricted funds
70/30 Fund
Brighter Futures for Children
Unrestricted funds
Fair value reserve
General fund
Total unrestricted funds
Total funds|**Total funds**
**brought**
**forward**
**£**
65,790
-
-
-
-
(3,147)
62,643
7,756
65,949
73,705
136,348
**Total funds**
**brought**
**forward**
**£**
126,568
-
126,568
8,796
111,146
119,942
246,510|**Total**
**incoming**
**resources**
**£**
9,354
10,585
5,000
2,651
3,200
7,307
38,097
-
361,631
361,631
399,728
**Total**
**incoming**
**resources**
**£**
45,000
-
45,000
-
301,673
301,673
346,673|**Total**
**resources**
**expended**
**£**
(43,977)
(10,585)
(5,000)
(2,651)
(3,200)
(4,160)
(69,573)
-
(320,815)
(320,815)
(390,388)
**Total**
**resources**
**expended**
**£**
(105,778)
(3,147)
(108,925)
-
(346,870)
(346,870)
(455,795)|**Transfers**
**between**
**funds**
**£**
-
-
-
-
-
-
-
-
-
-
-
**Transfers**
**between**
**funds**
**£**
-
-
-
-
-
-
-|**Gains/(losses)**
**on investments**
**£**
-
-
-
-
-
-
-
341
-
341
341
**Gains/(losses)**
**on investments**
**£**
-
-
-
(1,040)
-
(1,040)
(1,040)|**Total funds**
**carried**
**forward**
**£**
31,167
-
-
-
-
-|
|---|---|---|---|---|---|---|
|||||||31,167|
|||||||8,097
106,765|
|||||||114,862|
|||||||146,029|
|||||||**Total funds**
**carried**
**forward**
**£**
65,790
(3,147)|
|||||||62,643|
|||||||7,756
65,949|
|||||||73,705|
|||||||136,348|
## **Description of material restricted funds**
70/30 Fund
Project to reduce child maltreatment in the UK by 70% by 2030.
Brighter Futures for Children
A Project to support the town of Reading to become a Trauma-informed Community.
ADPH
A project to identify UK best practice in trauma-informed Education, Health, Housing and Police
Camden Health Visiting
A project to explore an alternative approach to health visiting in Camden.
City of London Corra Emergency fund
A Covid relief fund for work in London.
A Covid relief fund for work in Scotland.
## **Description of designated funds**
Fair value reserve
Reserve fund representing the excess of asset value over its cost.
28
WAVE Trust Annual Report and Accounts to 31st October **2020**
## **16. Fair value reserve**
|Fair value reserve brought forward
Amount transferred to fair value reserve in year
Fair value reserve carried forward
**17. Financial instruments**
The carrying amounts of the charity's financial instruments are as follows:
_Financial assets_
Measured at fair value through net income/(expenditure):
Fixed asset investments
_Financial liabilities_
Measured at amortised cost:
Trade creditors
Other creditors|**2020**
**Total**
**Funds**
**£**
7,756
341
8,097
**2020**
**Total**
**Funds**
**£**
21,186
21,186
3,892
10,473
14,365|**2019**
**Total**
**Funds**
**£**
8,796
(1,040)|
|---|---|---|
|||7,756|
|||**2019**
**Total**
**Funds**
**£**
20,845|
|||20,845|
|||4,620
15,207|
|||19,827|
The income, expense, net gains and net losses attributable to the charity's financial instruments are summarised as follows:
|_Income and expense_
Financial assets measured at fair value through net income/(expenditure)
Dividend income
_Net gains and losses (including changes In fair value)_
Financial assets measured at fair value through net income/(expenditure)
Unrealised gains/(losses) on investments|**2020**
**Total**
**Funds**
**£**
212
212
341
341|**2019**
**Total**
**Funds**
**£**
297|
|---|---|---|
|||297|
|||(1,040)|
|||(1,040)|
Fixed asset investments are held at fair value with valuations obtained using closing mid-market price.
29