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2021-03-31-accounts

The Advocacy People

Financial Statements Year ended 31 March 2021

Charity No: 1080679

Company No: 3963421

Contents

eports Pae
eerence and Administrative etails
eport o the Trstees 21
eport o the Aditors 1620
Financial Statements
Statement o inancial activites 21
alance Sheet 22
Statement o Cash Flos 23
Notes ormin part o the inancial statements 2439

Reference and Administrative Details

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Page 1

Report of the Trustees for the year ended 31 March 2021

Report of the Trustees

for the year ended 31 st March 2021

The Trustees of The Advocacy People present their annual report for the year 1 st April 2020 to 31 st March 2021.

Our vision

The Advocacy People believe in a society where people feel in control of their lives and are confident to speak up, and where people who can't speak up for themselves have someone in their corner to speak for them.

It is our mission to:

Our Values

All of us are aware that there may be difficult times to come, with significant pressure on the public purse and with so many communities already tragically impacted by an unprecedented global pandemic. This is likely to be a world where the needs of many will be acute; a world where there is a growing demand for support on mental health and other issues where our approach can be the right one. The people-centred fundamentals of advocacy and the related services we deliver and manage should be at the heart of how we see the delivery of all public services. This is particularly true when those using the services are vulnerable and is likely to become ever more important as we emerge from the shadow of Covid into unprecedented and uncharted waters

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Report of the Trustees for the year ended 31 March 2021

A drive for collaboration and innovation should be at the heart of future success in

responding to this world because it is in harnessing the energy and ideas of people that we can all be the best that we can be. We therefore want to work in concert with partners who bring expertise about specific things in specific areas; and we all need to work effectively together as colleagues.

We look to invest resources in monitoring, influencing, and responding to key developments and initiatives in the external environment, particularly within the health and social care arena. We work to ensure that client views, concerns and experiences influence service policy, planning, and delivery through our local teams. Those that can flex and adapt will thrive; so, all our delivery models can and should evolve

The Advocacy People therefore work beyond our own direct delivery responsibilities to improve health and social services on both local and national levels through:

To pursue this overall picture, we see some of the priorities for us over the coming years being to:

Scope of Operations

The Advocacy People works across the south of England from Cornwall to Kent, extending up to Milton Keynes. Our head office is in Hastings, East Sussex.

Structure, Governance and Management Governing Documents

The Advocacy People is a charitable company limited by guarantee, incorporated on 3 April 2000, and registered as a charity on 1 1 May 2000. It was established under a Memorandum of Association, which establishes its objects and powers and is governed under its articles of association which were last amended in 2010.

Responsibilities of the Board

The Trustees are responsible for ensuring the financial statements of the charity comply with the Charities Act 201 1, the Companies Act 2006, its Memorandum

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Report of the Trustees for the year ended 31 March 2021

and Articles of Association, and the Accounting and Reporting by Charities: Statement of Recommended Practice, which is applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102).

Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and 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.

Statements as to disclosure of information to auditors

So far as the Trustees are aware at the time the report is approved:

Organisation Structure

The Board of Trustees govern the charity and meet regularly to manage and control the resources administered by the charity. The Board of Trustees now has nine members having recently recruited from a diverse range of applicants. All trustees give their time freely and received no remuneration in the year. The Senior Leadership Team comprises the Chief Executive, Operations Director, Business Development Director, Finance Director, HR Director, and IT Director. The team is responsible for day-to-day policy and decision making as well as overseeing implementation of the business plan. The Senior Leadership Team submit reports on the work of the organisation to the Board and attend relevant Board agenda items. Once a year, the Board meet jointly with the Management Team (senior

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Report of the Trustees for the year ended 31 March 2021

and team managers) to review the organisation's performance and discuss future plans.

The Board has an Audit and Risk Management Sub-Committee which reviews financial and strategic matters in more detail and reviews risks that could prevent the organisation from achieving its strategic objectives. This Committee meets at least three times per year and its membership includes Trustees, the Chief Executive, and the Finance Director.

During the year, the Trustees met (using technology to do so virtually) on four occasions in full Board meetings, and once with the wider management team to discuss The Advocacy People's strategic direction. The Board received and considered regular reports relating to the management, development, and finances of the organisation, including challenging key performance indicators which allow the Board to track progress in delivering its strategic plan.

Separately appointed advisory Boards are in place for Healthwatch Portsmouth and Healthwatch West Berkshire whose staff are managed by The Advocacy People under the auspices of the main The Advocacy People Board.

Recruitment and Appointment of the Board

The Trustees are the directors of the charity for the purposes of the Companies Act and are elected at the Annual General Meeting of the charity. At each such meeting one third of the Trustees are subject to retirement by rotation and are eligible for re-election.

All trustees undergo a DBS check as part of the recruitment process and receive a Trustee handbook, and Trustee Code of Practice outlining their role and responsibilities. As part of their induction, Trustees meet with the CEO and other relevant managers.

The names of the Trustees at the date the accounts were signed are set out on the schedule of reference and administrative details on page 1 . The Advocacy People's Board aims to recruit in such a way as to bring expertise in advocacy, governance, specialist client groups, and related areas of expertise that can add value to the charity particularly valuing the role past or present service users bring to this process.

Risk Management and Audit

The major risks to which the charity could be exposed, as identified by the Board and the Risk Sub Committee, have been revIewed on an ongoing basis, and systems have been established to mitigate against those risks.

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Report of the Trustees for the year ended 31 March 2021

Senior management regularly review and update the charity's risk register, and prioritise key risks on which to focus, and review and update identified risks and mitigations for their specific areas of responsibility. The impact of Covid-19 has had an ongoing significant affect both on referrals and how our work is carried out. This has continued to impact on income, but also led to savings from amended working practices, and management has at all stages sought to prioritise the wellbeing of staff and clients. There remain, of course, significant concerns about the detrimental effect of Covid-19 on the economy, and therefore on funding available for advocacy.

Other key risks facing the organisation are being mitigated by regular financial and performance reporting, which is reviewed by operational and senior management, as well as updates reported to each Board meeting.

Risk management practices are in place to manage risks around health and safety such as dealing with Covid-19 related issues, lone working, management of premises, and other risks such as information security. Relevant operational procedures detailing expected practice for staff and managers, and policies and procedures have been kept under review during the year.

Compliance and quality assurance issues are reported to the Management Team who receive regular reports from each team and review specific areas of work. Reports summarising this work or highlighting specific areas are reported to the Board

The Advocacy People has insurance policies in place to satisfy contractual requirements and ensure the organisation is protected against unforeseen events, for example a person being injured at premises or a claim in relation to services provided by the charity.

Staffing

The Advocacy People employed an average of 1 63 staff (121 FTE) in the year, and an average of 55 volunteers contributed their services.

Matthew Hilton, Chief Executive Officer, has led the organisation successfully with the support of his Senior Leadership Team and Trustees through a challenging year with the onset of Covid-1 9 and all the challenges that has brought to the organisation.

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Report of the Trustees for the year ended 31 March 2021

At the end of the previous financial year (March 2020) the development of Covid19 started to impact on the organisation quite significantly. During this year, strong leadership with staff and stakeholder engagement across the organisation at all levels from the outset ensured we were quickly able to produce a range of measures and interventions in support of keeping people safe and healthy. These formed the backbone of a range of strategic and risk-based approaches to keep the organisation in a healthy position as staff, stakeholders, and clients (and the world) started to navigate through this very difficult time.

As the organisation has moved through the new financial year, the Senior Leadership Team has maintained a close watch on the Covid-19 impact at a national and local level and reviewed existing procedures and developed new initiatives to ensure the safety of the workforce. These have been developed in conjunction with feedback from staff and external stakeholders (commissioners, partners, and others) to ensure we continue to operate on a safe, risk aware basis, while meeting contractual obligations.

The Advocacy People has made very limited use of the Furlough Scheme to protect roles, predominantly in Central Services, where work was not available for staff and where a flexible approach was needed to support demand.

There has at the time of writing been only a small number of staff impacted by Covid-19 as an illness, most impact has been indirect through family/friends. However, it cannot be underestimated how difficult the situation has been on people's mental health and for this reason, the Senior Leadership with the wider management team of Team Managers and Supervising Advocates, have taken a careful and considered approach to ensuring people have time to adjust to what is now being called ’the new normal’.

Our staff have a wide range of skills and experiences which they bring to their work. We have found that the ’new normal’ has resulted in more use of technology and therefore, adjusting to these changes has identified that now more than ever, we need to have digital competency as a complementary skill with others in the modern workplace.

As part of the drive to align staff remuneration with career development, and reflecting the skills needed in our staff, a review of the existing qualification, pay and benefits policies will be undertaken in 2021-22 to ensure we are transparent on these areas and staff know what is required to develop in their career from both a performance and skills basis. The organisation’s goals and values continue to see The Advocacy People as the best provider and employer of choice in the sector

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Report of the Trustees for the year ended 31 March 2021

Remuneration policy for senior staff

The pay of the senior staff has been set at a specific scale or at a fixed sum benchmarked against similar organisations. Any uplift for inflation is agreed annually by the Board for all staff. Any substantial changes to remuneration are agreed by an ad hoc Remuneration Subcommittee of the Board.

Objectives and Activities

Aims and Objectives

The objectives of the charity are expressed in the governing document as follows: "to relieve persons who are in need by reason of their age, youth, disability, illhealth or social or economic circumstances through the provision of effective advocacy services in the United Kingdom".

The purpose of the organisation is to ensure that the views, wishes and feelings of those using services, including but not exclusively health and social care services, are promoted to service providers; and to provide advocacy support to individuals or groups who wish to resolve specific issues, which may include complaints.

We achieve this in various ways:

Ensuring our work delivers our aims

We have reviewed our underlying strategic approach and continue to build on our core strength as an advocacy organisation to find ways of bringing value to our clients in the changing world in which we live.

With the continuous reduction in public spending, the Board is committed to diversifying its funding. We also believe that advocacy is a service that would benefit many more people and that it is a tool to promote social justice and can support vulnerable people towards living more secure, independent, and fulfilled lives. Our objectives are underpinned by operational, business, and financial plans

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Report of the Trustees for the year ended 31 March 2021

The Advocacy People has set high level key performance indicators for the Board to assure themselves that the organisation is travelling in the right direction. Teams and employees have their own individual performance objectives which align to those of the organisation and local contract requirements.

The Advocacy People's partnership strategy is predicated on supporting the sustainability of the advocacy sector and local specialist providers to extend the reach of services into seldom heard or hard to reach communities. We work with a range of partner organisations to deliver statutory and non-statutory advocacy services. The partnerships allow us to tailor our services to meet the needs of a range of clients and support the diversity of the voluntary sector.

We conduct regular client and professionals’ surveys to ensure that we meet stakeholder requirements. We work closely with statutory and third sector colleagues to ensure our work priorities are informed by client feedback as well as by central and local commissioning priorities, and ongoing changes to health, social care, and other core agendas. Our client impact survey shows how advocacy contributes to improving health and wellbeing.

Whilst we have always been focused on outcomes and have looked for savings in how we operate, our need to identify innovative ways of working, including remote and digital solutions and developing robust collaboration and partnership arrangements is likely to become ever more important in the future.

The focus of our work

Independent advocacy is concerned with maximising people’s involvement in decisions made about their lives. Our advocates support with different needs including helping people understand information, express their needs views and wishes, secure their rights, represent their interests and obtain the care and support they need. Advocates work in partnership with the people they support in accordance with the advocacy principles of being person-centred, independent, confidential and empowering.

We work hard to ensure people facing disability, health, transport, rural mobility, language or other barriers are never excluded from receiving high-quality advocacy. Embedded in our ethos is responding to feedback, promoting reflective practice, and following the Advocacy Charter and Equality Act. We work to the principles of the industry recognised NDTI Advocacy Charter and Code of Practice and following on from achieving the Quality Performance Mark (QPM) in 2019 with flying colours for the maximum three years, we are already thinking about preparing for our assessment next year

Staff are required to work to high standards of professionalism with both clients and service providers, building good working relationships with key stakeholders across all sectors whilst maintaining the core independence of the service.

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Report of the Trustees for the year ended 31 March 2021

Service users and volunteers

We believe that Service user involvement and volunteers are central to our mission and values. Service users continue to be involved in recruitment panels and developing new services and we remain committed to ensuring service user membership onto our Board.

We continue to develop support for volunteers including employing specific volunteer coordinator posts. We have a dedicated Volunteer Focus Group which meets quarterly to share good practice. Over this year the Volunteer Focus Group have revised and updated our Volunteer Handbook and developed specific volunteer role descriptions.

Our Healthwatch service in West Berkshire were supported by 22 volunteers last year representing 800 hours or 100 days hours of volunteering time. They utilise volunteers in a variety of roles including research, engagement activities, Enter and View visits and mystery shopping.

We continued to work with colleges and universities across our geographical patch to encourage social work student placements. The feedback we receive is that the students take the “advocacy message" back to their peers when they return.

How our activities deliver public benefit

The Trustees consider that they have complied with their duty under the Charities Act 2011 to have regard to the public benefit guidance issued by the Charity Commission.

We reported last year that, in addition to supporting clients to find successful resolutions to their concerns, issues, complaints or statutory rights, clients tell us that receiving advocacy support enables them to feel more empowered and in control of their lives and leads them to develop self-advocacy skills which assist them (and in some cases, their peers) in the future.

Throughout this most challenging year The Advocacy People continued to work with our commissioners to respond to the challenge of Covid-1 9, offering flexible solutions to issues they may have, and prioritising continuity of our services, whilst ensuring our working practices remain as far as possible inclusive and accessible for our clients.

We were congratulated for adapting our external service delivery model / working practices, to allow where appropriate, for more remote communication techniques. whilst also prioritising direct contact with clients where there was a specific need and could be justified in terms of risk. We maintained a flexible effective and robust Risk Assessment process mirroring the changing Government guidelines.

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Report of the Trustees for the year ended 31 March 2021

In addition, this last year, our Focus Groups continued to play their part in national consultations. Our IMHA Focus Group pulled together a very detailed organisational response to the Government’s Consultation on Reforming the Mental Health Act. Several of our other Focus Groups fed into a government call for evidence on the impact of COVI D- 19, which in turn fed into a similar response for NCVO. We are still waiting publication of the Code of Practice for the Liberty Protection Safeguards legislation which will be replacing Deprivation of Liberty Safeguards.

Who used and benefited from our services

In 2020/21 The Advocacy People accepted 1 1,281 (2020 -13,610) new advocacy cases, with Covid-19 having a significant effect on referrals as well as dealing with a further 4,392 enquiries and signposting requests.

During 2021 the Contact Centre handled a total 13,727 (2020 - 21,378) calls and handled 37,236 (2020 - 37,934) emails.

The Advocacy People provides services to a range of people including:

As well as non-statutory advocacy provision, The Advocacy People provides statutory advocacy including:

In 2021 Healthwatch West Berkshire heard from 1,137 people about their experiences of health and social care and provided advice and information to 1,1 15,638 contacts via social media, newsletters, and the website. Additionally, 387,909 contacts were engaged with or supported via digital methods on issues relating to the pandemic.

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Report of the Trustees for the year ended 31 March 2021

Achievements and Performance

Outcomes and impact

Overall, 89% of instructed clients were satisfied or very satisfied with our advocacy services and 68% reported that advocacy had made them feel more positive across the five indictors: feeling listened to, in control and confident to speak up and being treated with respect and kept informed. During a year in which the Coronavirus Pandemic struck this had an impact on these figures as clients focused on wider issues that affected their wellbeing but there were still clear positives for the advocacy provided.

A major piece of independent evaluation on our Veterans' Advocacy People Service carried out by SERIO, an applied research unit at the University of Plymouth, was published in January, and found that the advocacy service had delivered considerable outcomes for its clients and the community, and was doing so in a cost-effective manner, with a social return value indicating that for every £1 spent on delivering The Veterans' Advocacy People, £4.74 in social value is created.

Marketing and the rebrand

Since the launch of our new name on 16 March 2020, our branding and digital communications have gone from strength to strength. We quickly had to adapt many of the previous print-versions of the new resources to digital so they could still be shared during lockdown.

Our website has continued to develop, with the aim of meeting the Web Content Accessibility Guidelines 2.1 AA rating (self-certification) in 2021/22 and maintaining it thereafter.

Our social media presence is unrecognizable from what it was before, we now have clarity of voice, communicating authentic content by 'telling our story' and sharing our expertise across Twitter, Facebook, Linkedln and, more recently, Instagram and collated on our website (theadvocacypeople.org.uk/blog).

We have started producing digital content – webinars and podcasts - and will be adding a series of short videos with British Sign Language translation.

Local authority contracts

Tendering activity was low throughout the year, with contracts being extended rather than retendered due to the impact of Covid-19, including several of our own contracts. Where we have tendered, we have secured the following:

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Report of the Trustees for the year ended 31 March 2021

The Veterans’ Advocacy People evaluation

The online launch event for a three-year evaluation of the Veterans' Advocacy People Service successfully took place online on 28 January 2021. Due to difficulties securing funding, the service has now closed, and we do not intend to actively pursue funding, however, we are open to conversations and exploration of potential future projects with interested parties.

Plans for the future

The uncertainty wreaked by the Covid-19 pandemic has continued to add to the existing background of financial pressure on the delivery of all public services. In this context - even though we are ourselves of course largely reliant on contracts sourced by that public money - we are clear that the need for advocacy is all the more important to protect and promote the rights of those least heard. It is more vital than ever that we continue to review how we deliver services to ensure that we can provide value for money and high-quality services.

Our local advocacy and Healthwatch teams continue developing their working relationships wherever we work. We believe that the best way of delivering our services to those who need them the most is by working alongside and in partnership with community organisations. This seems to us to be truer than ever in the light of the pandemic situation.

We welcome working with partners where they can bring local or specific service user expertise that we lack. We want our staff and partners to feel empowered to innovate, to feel that The Advocacy People is a place that values their creativity. We recognise the importance of local branding for our services, where we work in tandem with partners to provide locality focused advocacy.

What we do is all about what the clients need, so we want to be confident and bold in building on our service offering to bring value to those clients. We will explore ways of building on our existing skills to provide additional services to ensure clients get the information they need and can get the support they want.

Financial Review

Actual income was below budget due to reduced income from spot purchase contracts, however some local authorities provided temporary support funding and for a few projects where income was significantly affected, staff were put on furlough. Overall, the financial year saw a 1.4% reduction in income on the previous year. However, reduced activity levels relating to the Covid-1 9 pandemic and a temporary freeze on recruitment meant actual expenditure was significantly under budget and resulted in a 9.3% net reduction in expenditure compared with the previous year. This was despite significant investment in home working equipment and the new database.

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Report of the Trustees for the year ended 31 March 2021

Total income received was £4,699,152 (2020 - £4,766,927) and total expenditure incurred during the year was £4,514,025 (2020 - £4,976,207). This resulted in a net inflow of funds of£185,127 (2020 - net outflows of£209,280). This was split between a net outflow of funds from restricted reserves of £45,233 (2020 - outflow of £77,329); and net inflow on free reserves of £230,482 (2020 - outflow £132,041 ).

Cash balances increased by 40% to £1,029,918 (2020 £737,354) at the yearend due to the net inflow of funds and favorable movements in debtors and creditors Debtors and prepayments at the year-end were £61 1,531 (2020 - £806,759), and creditors and accruals were £341 ,227(2020 - £393,327).

Looking forward to 2021/22 a balanced budget was set with a series of targets for new income and measures to reduce expenditure given the uncertain outlook, as well as investing in staff training and development.

Principal funding sources

The charity is primarily funded by contracts with statutory bodies, with 86% (2020 - 80%) of income from charitable activities relating to statutory services provided to public authorities. Funding for non-statutory advocacy decreased to 1 2% of income (2020 - 17%). Healthwatch and other services provided 3% (2020 - 3%). The proportion of grant income fell to 4% (2020 - 5%) of overall funding noting that this included funding relating to Covid-19 of£97,602.

Reserves Policy

The Board have examined the charity's requirement for reserves in the light of the main risks facing the organisation, such as to cover any costs that might arise from the sudden end of a contract, and to ensure sufficient cash flow to finance current operations or meet other contingencies that cannot be met out of current income.

At the end of the year the balance of the charity’s free reserves was £1,040,598 (2020 - £858,820), an increase for the year of£181,778. This is after a transfer for £7,941 from the pension reserve relating to a reduction in the contingent liability being reported for the scheme, as well as a transfer of £20,219 to designated funds to cover future strategic investment in services. The level of free reserves at 31/03/21 was equal to 2.8 months (2020 - 2.1 months) of operating expenditure.

Designated funds of £322,681 (2020- £274,099) have been allocated by the Board for specific purposes such as investment to develop new services. This includes a Fixed Asset Reserve which is set at a level equivalent to net fixed assets representing the capital investment made in computers, software, furniture, and equipment; and a Pensions Reserve to provide for a contingent liability which would arise if The Advocacy People were to withdraw from membership of the Pensions Trust.

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Report of the Trustees for the year ended 31 March 2021

Restricted reserves of £35,540 (2020 - £80,773) are held, where the purpose of the funding was granted for a specific purpose or objective, and funds remained unspent by the yearend. These will be drawn upon to fund specific work in line with their original purpose.

It is the opinion of the trustees that the current level of reserves is justified given the significant uncertainties facing The Advocacy People. The Trustees therefore have taken the level of free reserves into account in their assessment of the risks facing the organIsatIon.

Investment Policy

The Advocacy People holds any cash in excess of working capital requirements on deposit with the Co-operative Bank. The amount of interest earned during the year was £1,347 (2020 - £4,820). This equates to a return of 0.15% based upon the average of the opening and closing bank balances (2020 - 0.5%).

The Advocacy People has an ethical investment policy outlining human rights and environmental criteria with which potential investment institutions are assessed. To meet these objectives, The Advocacy People invests in fixed-term or call accounts with institutions that are considered to comply with our ethical criteria and have a high security rating.

Taking into consideration the overall level of reserves, and the level of reserves which are ear-marked for expenditure in the next year, the charity has a policy of investing for the short term only.

Going Concern

Given the factors reviewed above and in the light of The Advocacy People’s financial position, its current range of activities linked to specific contracts and its track record of obtaining new work, the Trustees believe that The Advocacy People is well placed to manage its business risks successfully despite the current uncertain economic outlook. In line with note 1 (1) to these accounts the Trustees have continued to adopt the going concern basis in preparing the annual report and accounts.

In preparing this report, the Trustees have taken advantage of the small companies’ exemptions provided by section 41 5A ofthe Companies Act 2006.

Jane Dodson 3'd December 2021

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Independent auditor's report to the members of The Advocacy People

Opinion

We have audited the financial statements of The Advocacy People (the ’charity’) for the year ended 31 March 2021 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 FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

•give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its income and expenditure for the year then ended;

•have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

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Independent auditor's report to the members of The Advocacy People (continued)

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 Trustees’ Report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on the other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

•the information given in the Trustees' Report which includes the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

•the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.

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Independent auditor's report to the members of The Advocacy People (continued)

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

•adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

'the financial statements are not in agreement with the accounting records and returns; or

•certain disclosures of trustees’ remuneration specifiied by law are not made; or

•we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 3-4, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Page 18

Independent auditor's report to the members of The Advocacy People (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-1 9, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and the Charities Statement of Recommended Practice.

We evaluated the trustees' and managemenfs incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to use of restricted and endowment funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including noncompliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

•Discussing with the trustees and management their policies and procedures regarding compliance with laws and regulations;

•Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and

•Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.

Our audit procedures in relation to fraud included but were not limited to:

•Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;

•Gaining an understanding of the internal controls established to mitigate risks related to fraud;

•Discussing amongst the engagement team the risks of fraud; and

•Addressing the risks of fraud through management override of controls by performing journal entry testing.

Page 19

21 December 2021

Statement of Financial Activities (Incorporating an Income & Expenditure Account)

For the Year Ended 31 March 2021

2021 2020
nrestricted estricted Total Total
nds nds nds nds
Notes
ncome rom:
onations 2 448 448 2332
Charitale activities 3 4782 121 77 469737 47977
nvestment income 1 347 1347 4820
Total income 477377 1 2177 469912 4766927
penditre on:
Charitale activities 47 4347017 167008 41402 4976207
Total ependitre 4347017 167008 41402 4976207
Net incomeependitre 230360 4233 18127 209280
Fnds at 1 April 2020 1 132919 80773 1213692 1 422972
Fnds at 31 March 2021 1 363279 340 1398819 1 213692

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 14 to the financial statements.

Page 21

Balance Sheet

As at 31 March 2021

2021 2020
Notes
Fied Assets
ntanile Assets 8 46942 43178
Tanile Assets 9 61046 2807
107988 71 68
Crrent Assets
etors and Prepayments 10 61131 80679
Cash at an and in and 1 029918 73734
1 641449 144 1 13
Creditors: Amonts allin de ithin 1 year 77 341227 393327
Net Crrent Assets 1300222 11 0786
Creditors: Amonts allin de ater more than 1 year 9391
12		 8779
Net Assets 1398819 1213692
Fnds
estricted Fnds 13 340 80773
nrestricted Fnds 14
esinated Fnds 322681 274099
eneral Fnds 104098 88820
Total nrestricted Fnds 1 363279 1132919
Total Fnds 1398819 1 213692

The Charity’s financial statements have been prepared in accordance with the provISIons applicable to the small companies’ regime

Approved by the Trustees and signed on their behalf by:

J&: ®M8a,gPA Irene Bews Jane Dodson 3rd December 2021

Page 22

Statement of Cash Flows

For the Year Ended 31 March 2021

For the Year nded 31 March 2021
2021 2020
Total Total
nds nds
Net ncomependitre 18127 209280
epreciation and amortisation 88744 639
nvestment income 1 347 4820
ecreasencrease in detors 19229 99842
ecrease in creditors 1 488 83244
Net cash provided ysed in operatin activities 41626 331 827
Cash los rom investin activities:
eposit interest received 1 347 4820
Payments to acire tanile and intanile ied assets 12048 30406
Net cash sed in investin activities 123701 286
ncrease in cash in the year 29264 3741 3
Net cash resorces at 1 st April 73734 1 094767
Net cash resorces at 31 st March 1029918 73734

Page 23

Notes to the Financial Statements

For the Year Ended 31 March 2021

1. Accounting Policies

a) Basis of preparation

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 (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 201 1. They are drawn up on the historical cost accounting basis. The charity meets the definition of a public benefit entity under FRS 1 02.

b) Legal status of the charity

The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 0 per member of the charity.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from charitable activites includes grants and contracts for the provision of services to beneficiaries as specified in contracts and service level agreements with local authorities, government bodies and other organisations. Voluntary income received by way of donations is included in full in the Statement of Financial Activities when receivable.

Investment income compromises solely of interest on cash deposits.

Income from grants, is recognised when the charity has entitlemen t o the funds, any 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.

Income is deferred if any conditions for use imposed by the donor have not been met.

Page 24

Notes to the Financial Statements

£QLth£YeaLEndea3LMat£L2a21

d) Expenditure

Cost of raising funds i.e. those costs incurred in attracting voluntary income are no longer considered significant and there are no costs incurred in trading activities that are purely to raise funds.

Cost of charitable activities comprise costs incurred on the defined charitable purposes of the charity and include direct costs of the charitable activities together with those support costs incurred that enable these activities to be undertaken.

Support costs are those costs that, whilst necessary to deliver an activity, do not themselves directly produce charitable outputs. These will include the cost of central services such as general management, finance and human resources.

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on an estimate of the staff time attributable to each activity.

Governance costs (see Note 4) are costs associated with meeting the constitutional and statutory arrangements of the charity, including internal and external audit and the cost of preparing statutory accounts, the cost of Trustees' meetings, and other costs involved with the charity’s strategic management.

e) Pensions

The charity has arranged a defined contribution scheme that is available to all members of staff. The assets of this are held seperately from those of the charity in independently administered funds. The main provider of these pension funds is the Pensions Trust, but other private providers are also used. Pension costs charged in the Statement of Financial Activites represent the contributions payable by the charity in the year.

Page 25

Notes to the Financial Statements

For the Year Ended 31 March 2021

O Taxation

Value added tax is not recoverable by the charity and as such is included in the relevant costs in the Statement of Financial Activities.

As a charity, The Advocacy People is exempt from tax on income and gains falling within Section 505 of the Taxes Act 1 988 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen as a result of activities by the Charity.

g) Intangible assets

Intangible assets are identifiable non-monetary assets without physical substance but from which future economic benefits will accrue - for The Advocacy People - principally software. For intangible assets over £500 these are amortised at rates calculated to write off each asset over its expected useful life which for software is assumed to be 20% unless circumstances indicate otherwise.

h) Tangible fixed assets

Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life. The depreciation rates in use are as follows:

Leasehold Improvements Over the term of the lease Furniture and equipment 20% per annum straight line Computers and laptops 33% per annum straight line

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

i) Funds accounting

General funds consist of unrestricted funds which the charity may use for purposes at its discretion.

Designated funds are unrestricted funds earmarked by the trustees for a specific purpose.

Restricted funds are those where the donor has imposed restrictions on the use of the funds

Page 26

Notes to the Financial Statements

For the Year Ended 31 March 2021

j) Services provided by volunteers

For the purposes of these accounts no monetary value has been placed on administrative and other services provided by volunteers for the charity.

k) Operating leases

The charity classifies the lease of printing equipment as operating leases; the title to the equipment remains with the lessor and the equipment is replaced at the end of the economic life of such equipment which is normally five years. Operating leases payable for the use of premises are charged on a straight line basis over the term of the lease.

I) Going Concern

The Board of Trustees have taken account of The Advocacy People’s activities and factors that are likely to affect its future development, including its financial position, the management of financial risks, the level of current reserves and its exposures to price and cash flow risks as described in the Report of the Trustees on page 2-15. 1n particular by preparing multi-year budgets and forward looking cashflow analysis and projections.

The Advocacy People has significant financial resources, and has a range of contracts with a mix of expiry dates and a track record of winning new business, and is diversifying into new areas of advocacy and training. As a consequence, the Trustees believe that The Advocacy People is well placed to manage its business risks successfully despite the current uncertain economic outlook. After making enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Accordingly the Trustees have continued to adopt the going concern basis in preparing the annual report and accounts

Page 27

Notes to the Financial Statements

For the Year Ended 31 March 2021

2. Income from donations

2021 2020
nrestricted estricted Total Total
onations 448 448 2332
448 448 2332

3. Income from charitable activities

The income, surplus for the year and net assets are attributable to the principal activity, which is to provide advocacy services for people of all ages throughout the South of England. The charity operates in, and the whole of its income is derived from, the UK.

2021 2020
Total
Total
nrestricted
estricted
Stattory advocacy 401882 401882 378893
Nonstattory advocacy 427139 121 77 48914 827067
ther services 12991 12991 1 44 1 1
Total income 4782 12177 469737 47977

Page 28

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Notes to the Financial Statements

For the Year Ended 31 March 2021

Net (expenditure)/income for the year

Net ependitreincome or the year
This is stated ater charin: 2021 2020
epreciation and amortisation 88744 639
Aditors emneration: Adit 11206 10869
peratin ease entals: Property 30389 4968

6. Trustee Remuneration & Related Party Transactions

No trustees received any remuneration from the charity in their capacity as trustees. Reimbursement of travel and accommodation costs amounting to £0 (2020 - £188) were reimbursed to 0 (2020 - 2) trustees. No trustees received payments in any other capacity. No related party transactions were identified in the year.

Page 30

Notes to the Financial Statements

For the Year Ended 31 March 2021

7. Staff Costs and Numbers

Sta Costs and Nmers
2021 2020
Sta costs ere as ollos:
aes and Salaries 3164168 2994 648
Aency ees 972 8861
Social Secrity Costs 242849 23896
mployer Pension Contritions 8411 79186
34971 40 331891

Employee remuneration for employees earning more than £60,000:

2021 2020
1 1

The key management personnel of the charity, comprise the trustees, the Chief Executive Officer, Operations Director, Business Development Director, Finance Director, HR Director, and ICT Director. The total employee benefits of the key management personnel of the Charity were £296,648 (2020: £355.049).

The charity pays employer contributions to 137 (2020 - 131) staff who are members of a defined contribution pension scheme (see note 1 6).

The average weekly number of employees during the year (head count) was as follows:

2021 2020
Advocacy Services 134 12
ealthatch Trainin and Contact Centre 13 13
Manaement and Administration 16 1
Total 163 13
Flltime eivalent sta 121 117

Page 31

Notes to the Financial Statements

For the Year Ended 31 March 2021

8. Intangible Fixed Assets

ntanile Fied Assets
Total
CST
At 1 April 2020
Additions in Year		 2463 10000
48300		 17463
48300
isposals in Year 10000 10000
At 31 March 2021 2463 48300 7293
AMTSAT N
At 1 April 2020
Additions in Year		 1 1 48
487		 120000
39660		 131 48
443
isposals in Year 10000 10000
At 31 March 2021 16333 9660 2993
NT A
At 31 March 2021 8302 38640 46942
At 1 April 2020 13178 30000 43178

All intangible fixed assets are used for the furtherance of the charity's charitable objectives.

Page 32

Notes to the Financial Statements

For the Year Ended 31 March 2021

9. Tangible Fixed Assets
Tanile Fied Assets Compter ice Total
epment epment
CST
At 1 April 2020
Additions in Year		 83748
76748		 999 93347
76748
isposals in Year 7733 7733
At 31 March 2021 12763 999 162362
PCATN
At 1 April 2020
Additions in Year		 6222
43691		 8618
18		 64840
44209
isposals in Year 7733 7733
At 31 March 2021 92180 9136 101316
NT A
At 31 March 2021 6083 463 61046
At 1 April 2020 2726 981 2807

All tangible fixed assets are used for the furtherance of the charity's charitable objectives.

Page 33

Notes to the Financial Statements

For the Year Ended 31 March 2021

10 etors and Prepayments 2021 2020
etors 466733 407368
Prepayrnents 26087 64369
Accred income 118711 33023
61 131 806760

11. Creditors : Amounts falling due within one year

2021 2020
Taation and Social Secrity 60171 86079
Creditors 438 7949
Accrals 191642 163347
eerred income 306 64406
341 227 393327

12. Creditors : Amounts falling due after more than one year

2021 2020
Pension liaility note 16 2891 3426
ease liaility accral 600 33
9391 8779

Pension liability is to provide for an identified liability relating to a shortfall on the employee pension scheme.

Lease liability accrual is to provide for a liability to redecorate at the end of a lease held by the charity.

Page 34

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Notes to the Financial Statements

For the Year Ended 31 March 2021

14. Movements in Funds (continued) Purposes of Fund balances

Designated funds have been allocated by the Trustees for specific purposes and have been reviewed in line with the strategic priorities of the organisation.

Page 37

Notes to the Financial Statements

For the Year Ended 31 March 2021

15. Operating Lease Commitment

2021 2020

The charity has commitments under operating leases for equipment, land and buildings du

ithin one year 30389 33691
ithin 2 to years 30772 67842
Total operatin lease commitment 61161 101 33

16. Pension liabilities - actual and contingent TPT Retirement Solutions - The Growth Plan

The Advocacy People participates in a multi-employer scheme which provides benefits to some 950 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the charity to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a ’last-man standing arrangement'. Therefore, the charity is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2017. This valuation showed assets of £795m, liabilities of £926m and a deficit of £131 m. To eliminate this funding shortfall, the Trustee of the scheme has asked the participating employers to pay additional contributions to the scheme.

The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Page 38

Notes to the Financial Statements

For the Year Ended 31 March 2021

16. Pension liabilities - actual and contingent (continued)

Where the scheme is in deficit and where the charity has agreed to a deficit funding arrangement, the charity recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. An amount has been recognised in the accounts to provide for this liability (see Note 12).

The Advocacy People recognises a liability measured as the present value of the contributions payable that arise from a deficit recovery agreement and the resulting expense that would be recognised in the income and expenditure account i.e. the unwinding of a discount rate as a finance cost in the period in which it arises. It is these contributions that have been used to derive the charity's balance sheet liability.

2021 2020
Provision at start o period 3426 416
nindin o the discont actor interest epense 76 3
eicit contrition paid 71 0 690
emeasrements impact o any chane in assmptions 99 93
emeasrements amendments to the contrition schedle
Provision at end o period 2891 3426

Assumes discount rates of 0.66% (31/03/21 ) and 2.53% (31/03/1 9) which are the

equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions

The charity has also established a designated reserve to provide for the contingent liability that would arise if The Advocacy People were to decide to withdraw from the Pensions Trust, which is estimated at £105,937. (see Note 14). However, there are no plans currently to exit the scheme.

Page 39