The Advocacy People Financial Statements Year ended 31 March 2024 Charity No: 1080679 Company No: 03963421 The Advocacy People. Company Number 0963421 {Limited by Guarantee) Contents Reports Page Reference and Admlnlstratlve Details Report of the Trustees 2-13 Report of the Auditors 14-18 Flnanclal Statements Statement of financial actlvltes 19 Balance Sheet 20 statement of Cash Flows 21 Notes formlng part of the financial statements 22-41 The Advocacy People, Company Number 0963421 (Limited by Guaranteel Reference and Administrative Detalls Trustees J. Dodson l. Bews Chalr Hon. Treasurer T. O'Brien A. Solemani (nee Steel) C. Bates (retired 23 June 20231 S. Gandhi-whitaker (retlred 26January 2024) E. Nistor-Lustermans S. Yang N. Tarblt Uolned 20 September 2024) N. Lennox-chhuganl O'oined 20 September 2024) Chlef Executlve & Company Secretary M. Hllton Reglstered Offlce Rock House 49-51 Cambrid8e Road Hasting5 East Sussex TN34 1 DT Audltors Kreston Reeves LLP 37 St Margareys Street, Canterbury CT12TU Bankers The Co-operatlve Bank p.l.c Head Offlce POBox101 1 Balloon Street Manchester M60 4EP Lloyds Bank 25 Gresham Street London EC2V7HN Sollcltors Sherrards Sollcltors Grosvenor Hall Bolnore Road Haywards Heath West Sussex RH164BX Page I The A(fvocary People, Company Number 0963421 (Limited ty Guarantee) Report of the Trustees for the year ended 31st March 2024 The Trustees of The Advocacy People present their annual report for the year 1st April 2023 to 31 st March 2024. 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 cant speak up for thernselves have someone in their corner to speak for them. It Is our mlsslon to: help anybody that needs Independent SUPPOrt to speak up. deliver quallty and Innovation through our practice. Improve people's Ilves Indlvldually and collectively through putting thelr case to policyrnakers. Ourvalues People are at the heart of what we do. Anyone can feel powerless and unable to speak up when faced with a dlfficult Situation. Anyone Should have access to an advocate. People matter. In an equal socSety. decislons about people's lives must be made falrly, Involvlng the person as far as possible. People make the difference. If our staff are happy at work, they will be effectlve at work. People should be heard at every level of pollcy and declslon-maklng. We work hard to make this happen. We are clear that the people-centred fundamentals of advocacy and the related servlces we deliver and manage should be at the heart of how we think about publlc services. This is partlcularly true when those uslng services are in vulnerable situations. It 15 also through these people-centred values that we can best harne5S the energy and ideas to be the best that we can be. We want to work in concert wlth partners who bring expertlse about speclfic things in speciflc area5; and we all need to work effectlvely tO8ether as colleagues. We look to Snvest resources in monitorlng. influencin& and responding to key developments and initiatives in the external environment, particula rly in the hea Ith 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. Page 2 The Advocacy People, Company Number 0963421 (Limited by Guarantee) The Advocacy People work beyond our own dirett delivery responsibilities to Improve health and soclal services on both local and natlonal levels through strong local relationships. effective collaboration5. and appropriate contributions to wider debates. We will pursue this by seeking to improve and grow the seNices we deliver and manage and by Identlfylng opportunlties for new and better services. Scope of Operations The Advocacy People work mainly across the south of England. with services from Cornwall to Kent, and from Southampton to Milton Keynes. Structure. Governance and Management Governlng Documents The Advocacy People is a charitable company limited by guarantee, Incorporated on 3 Aprll 2000, and registered as a charity on 11 May 2000. It wa5 established under Mernorandum of Assoclatlon, wh5ch establishes its objects and powers and Is governed under Its artlcles of association which were last amended in 2023. Responsibilities of the Board The Trustees are responslble for ensuring the financial statements of the charity comply with the Charities Act 2011, the Companies Act 2006, its Memorandum and Articles of Association. and the Accounting and Reporting by Charities: Statement of Recommended Practice, whlchls applicable to charitles preparlng thelr 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 affair5 of the charity and of the surplus or deficit of the charity for that period. In preparing these financlal statements, the Trustees are required to: select sultable accounting pollcies and then apply them consistently. make Judgements and estlmates that are reasonable and prudent. comply with appllcable accounting standards, subject to any materlal departures disclosed and explained in the financial statements,. and prepare the financlal statements on the going concern basis unless it Is Inappropriate to presume that the charity wlll continue in buslness. The Trustees are responsible for keeplng adequate accountlng records that are sufficient to show and explain the charity's transacLions and disclose wilh reasonable accuracy at any tlme the financial posltion of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responslble for safeguardlng the assets of the charlty and hence for taklng 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.. there is no relevant audit information of which the charity auditors are unaware, and the Trustees have taken all steps to make themselves aware of any relevant audit informatlon and to establlsh that the audltors are aware of that Informatlon. Page 3 The Advocacy People. Company Number 0963421 (Limited by Guarantee) Organisation Structure The Board of Trustees governs the charity and meet regularly to manage and control the resources admlnlstered by the charlty. The Board of Trustees now has eight member5 recruited from a diverse range of applicants. All trustees glve their time freely and receive no remuneration. The Senior Leadership Team comprises the Chief Executive, Chief Operatlng Officer, Business Development Dlrector, Flnance Director and HR Director. The senlor team oversee day-to-day policy and decislon making as well as implementation of the business plan. The Senior Leader5hlp Team submit reports on the work of the organisation to the Board and attend relevant Board agenda items. Durlng the year, the Trustees met on four occaslons In full Board meetings. The Board received and considered regular reports relating to the management, development. and finances of the organisatlon, including challenging key performance indlcators whlch allow the Board to track progre55 in delivering its strategic plan. The Board has an Audlt and Rlsk Management Sub-committee which revlews financial and strateglc matters in more detall and revlews rlsks that could prevent the organlsatlon from achieving its strategic objectives. Thls Commlttee meets at least three tlmes per year and Its membership includes Trustees. the Chief Executlve and the Finance Dlrector. Separately appolnted advisory structures are In place for each of our Healthwatch, whose staff are managed by The Advocacy People under the ausplces of the maln Board of The Advocacy People. Recruitment and Appolntment of the Board The Trustees are the dlrectors of the charity for the purposes of the Companies Act and are elected at the Annual General Meeting of the charlty. At each such meeting one third of the Trustees are subject to retirement by rotation and are eligi ble for re-election. All trustces undergo a DBS check as part ofthe recruitment process and receive a Trustee handbook, and Trustce Code of Practice outlining their role and responsibilities. As part of their inductlon, 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. Risk Management and Audit The major rlsks to which the charity could be exposed. as identified by the Board and the Audit and Risk Sub Committee. have been reviewed on an ongoing basis. and systems have been established to mitigate those risks. Page 4 The Advocacy People. Company Number 0963421 (Llmited by Guarantee) Senior leadership regularly review and update the charitys risk register, and prioritlse key risks on which to focus, and review and update identified risks and mitigations for thelr specific area5 of responsibility. These risks include the ongoing commissioning environment which makes It challenging to develop innovative seNlce models where costs are severely constrained,. the need to ensure a balanced budget and support enhanced central seNices, and cyber security risks around the threat from phishing or other attacks on our I￿ infrastructure. The key risks facing the organlsation are being mitigated by regular financial and performance reportin& which is reviewed by operatlonal 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 and human resource Issues. Relevant operational procedures detailing expected practice for staff and managers. and pollcles and procedures have been kept under revlew durlngthe year. Compllance and quallty assurance Issues are reported to the Management Team who receive regular reports from each team and review specific areas of work. Reports summarlslng th55 work or highlighting speclfic areas are reported to the Board. The Advocacy People have insurance policies in place to satlsfy contractual requirements and ensure the organlsatlon Is protected against unforeseen events, for example a person being Injured at premises or a clalm In relation to services provided by the charity. Staffing The Advocacy People employed an average of 194 staff (142 FTE) in the year, and an average of 140 volunteers contrlbuted their services to the organlsation. The Organlsation continues to run successfully under the dlrection of Matthew Hilton, Chief Executive Officer. With his Senior Leadership colleagues, wider management team and support and directlon of the Trustees. A new reward package Introduced in 2022. has provided Increased benefit5 through the improved salaries and grade structures and better sick pay under the pay and condltlons revlew. We are a Real Llvlng Wage employer and therefore have been able to ralse the salaries of our staff earning the least amount by 10% or more because of our commitment to thls scheme, In Ilne wlth our values of puttingpeople (rt the heart of what do. The organisation turned in a strong performance th15 year and was able to recognise the efforts of our staff accordlngly through the offer of the higher annual pay award, and an additional in-year bonus payment in January 2024. Our staff have a wlde range of ski115 and experiences which they brlng to their work. We continue to find that there is a need to keep up wlth constant change in the workforce and more use of new and emerglng technology such as Al, and therefore, Pase 5 The Advocacy People. Cownpany Number 0963421 (Limlted by Guarantee) adjusting to these changes has identified that now more than ever. we need to have dSgltal competency as a complementary Skill with other5 in the modern workplace. Last year we employed a Learnlns and Development specialist and In-year we recrulted to new roles in both Advocacy (Business Manager) and Healthwatch (Area Directors) as part of the drive to ensure the organisation is well placed to continue its current and future journey to support clients. We can report the investment in these roles is paying dlvldends through improved processes in our Induction of new staff and the opportunity for delivery of more In- house face-to-face and vlrtual tralning sessions. In Healthwatch services, there is more oversight across the local delivery and more collaborative approaches across our expanded Healthwatch portfolio. The collaboratlon across these roles contlnues at a pace in helping us shape our successlon planning and talent pipellne strategies to deliver agalnst our performance criteria and ensure we have the right skllls for the rlght roles on a consistent basis, There is a range of further work planned for 2024 onwards to drlve through changes to maintain our competltive edge In the marketplace. Remuneration pollcy for senior staff The pay of the senior staff has been set at a specific scale or at a fixed sum benchmarked agalnst slmllar organlsations. Any organ i5atlonal upllft In salarles Is agreed annually by the Board for all staff. Any other substantial changes to remuneratlon wlthln the Senlor Leadershlp are agreed to by the Chief Executlve Qfflcer (CEO). The CEO remuneratlon Is reserved to members of the Board. Objectives and ActivÈties Aims and Objectives The objectlves of the charlty are expressed in the governlng document as follows: "to relleve persons who are In need by reason of their age, youth. disablllty,111-health or soclal or economic circumstances through the provlsion of effectlve advocacy seNicos in the United Kingdom The purpose of the organlsatlon Is to ensure that the vlews. wlshes and feelings of those uslng services. including but not exclusively health and soclal care servlces. are promoted to service providers,. and to provSde advocacy support to indivlduals or groups who wish to resolve specific issues. which may include complaints. We achieve thi5 in various ways: Advocates and others provide Informatlon, support and representation to clients relating to specific difficulties. concerns. or complaints. The organisation works directly with service providers and policy makers at local and national level, aiming to ensure that client experiences are at the heart of policy development and service plannin& implementation. and monitoring. The Advocacy People's delivery of Healthwatch is an integral part of our commitment to ensuring effective, locally accountable health and Social 5eNices. Page 6 The Advocacy People. Company Number 0963421 {Limlted by Guarantee) 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 brln8lng value to our cllents in the changing world in which we Ilve. With the contlnuous reduction in public spendlng. the Boardls committed to dlversifying its funding from statutory advocacy and now host seven local Healthwatch. We also believe that advocacy Is a servlce 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 objectlves are underplnned by operational, business, and financial plan5. The Advocacy People has set hlgh level key performance indicators for the Board to assure themselves that the organisation is travelling in the right dlrection. The Advocacy People's partnershlp strategy is predicated on supporting the sustalnablllty of the advocacy sector and local speclallst providers to extend the reach of servlces Into under-represented communitles. We work wlth a range of partner organlsatlons to dellver statutory and non-statutory advocacy servlces. The partnershlps allow us to tailor our services to meet the needs of a range of cllents and support the diverslty of the voluntary sector. We conduct regular cllent and professionals, surveys to ensure that we meet stakeholder requirements. We work closely with statutory and thlrd sector colleagues to ensure our work priorities are informed by cllent feedback as well as by central and local commi55ioning priorities, and ongoing changes to health, social care, and other core agendas. Our client impact surveys show 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 includlng remote and digital solutlons and developing robust collaboratlon and partnership arrangements is likely to become ever more important in the future. The focus of our work Independent advocacy is concerned with ensuring people's voices are heard when decisions are being made about their lives. Our advocates support people with diverse needs to.. understand information- express thelr needs. views, and wishes; secure their rights,. represent their interests,. and obtain the care and support they need. Advocates speak up for people when they are unable to speak up for themselves or empower them to self-advocate. Advocates work in partnership with the people they support in accordance with the advocacy principles of being person-centered, Independent. confidentlal, and empowering. Page 7 The Advocary People. Company Number 0963421 (Limlted by Guarantee) Over the last two years the delivery of local Healthwatch has become an Increasing part of our portfolio of services. Healthwatch is the local health and social care champion for people who use GPS and hospitals. dentists. pharmacies. care homes or other support services in their areas. Healthwatch are Independent and have the power to make Sure NHS leaders and other decision makers listen to local feedback and improve standards of care. Healthwatch a150 helps people find reliable and trustworthy information and advice to help them get the support they need. Staff across all services are required to work to high standards of professionalism wlth both client5 and service providers, building good working relationships with key stakeholders across all sectors whilst malntalnlng the core Independence of the servlce. We work hard to ensure people facing disability, health, transport, rural mobillty, language, or other barriers are never excluded from recelving high-quality advocacy. Embedded In our ethos is responding to feedback, promotlng reflective practlce. and followlng the Advocacy Charter and Equality Act 2010. We work to the principles of the Industry recognlsed NDTI Advocacy Charter and Code of Practice and hold the Advocacy Quality Performance Mark (QPMI, now renewed until May 2026. Healthwatch services are dellvered to the Healthwatch Quality Framework. Servlce users and volunteers We believe that servlce user involvement and volunteerlng are central to our mlsslon and values. Servlce user feedback positlve and negatlve, Is taken serlously at all levels and used to Inform continuous improvement. We continue to develop our volunteerlng offer and, in the year, ahead wlll be fully reviewing where we are and what we could do better. We have a dedicated Volunteer Focus Group whlch meets quarterly to share good practice. Our Healthwatch teams continue to be 5UPPOrted by volunteers in a variety of roles. includlng Advlsory Group activities. research, communlty engagement. recruitment, report writing and Enter and View visits. We continued to work with colleges and universities across our geographical patch to encourage soclal work Student placements with our local advocacy teams. The feedback we receive is that the students take the"advocacy message" back to their peers when they return. promoting the impact of advocacy to those who will likely be the referrer5 of the future. 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 Charlty Commission. In additlon to SUPPOrting client5 to find successful resolutions to their concerr)s. issues. complalnts or statutory rights, clients tell us that receivlng advocacy sUPPOrt Page 8 The Advocacy People. Company Number 0963421 ILlmlted by Guarantee) 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. This feedback is shared with commissioners who can then see the human impact of the advocacy they are cornmissioning in their locality. Taking lessons learned over recent years, we continue to offer flexible solutions to ensure contlnulty of our servlces. whllst ensuring our working practices remain as far as possible inclusive and accessible for our clients. Who used and benefited from our services? The Advocacy People accepted 15,342 (2023 -12,792) new advocacy cases (of which 89% were statutory referrals). as well as deallng wlth a further 6.139 enquiries and signposting requests. Our Contact Centre received 16,135 (2023- 21.068} calls and handled 39,897 (2023- 40,267) emalls. The Advocacy People provlde servlces to a range of people Including: Adults with mental health issues Parents golng through Child Protectlon legal process Adults with learning disabilities Complaints about NHS care or treatment Soclal Care complalnts Gypsy and Traveller Communities Older People People with physlcal dlsablllties andlor sensory Impalrments People with dementia-type conditions and acquired brain injury Prlsoners Chlldren Youn8 People & Families As well as non-statutory advocacy provlslon. eg communlty advocacy, self-advocacy groups, The Advocacy People provides statutory advocacy Includlng: Independent Health Complalnts Advocacy Independent Mental Capacity Advocacy Independent Mental Health Advocacy Deprlvatlon of Llberty Safeguards Independent Care Act Advocacy Statutory Children's Advocacy For Information about Healthwatch activities and impact, please refer to their Annual Reports for the year April 2023 - March 2024: hh hir Page 9 The Advocacy People. Company Number 0963421 (Lltllited by Guarantee) Achievements and Performance Outcomes and impact Overall, 79% {2023 - 85%) of Instructed clients would recommend The Advocacy People to others. Servlces During the year, the following contracts Started: Southampton Adults and Chlldren's Advocacy Services Healthwatch Hampshlre Kent Adult Advocacy Servlces Healthwatch West Berkshlre lincludln& IHCA & LDPB) Mllton Keynes Adult Advocacy SeNices West Sussex- Support to Adults undergolng Child Care proceedlngs During the year, the followlng Contract ended: West Berkshire Adult Advocacy The followlng contratts were secured for start durlng the flnancial year 2024125: Healthwatch Somerset (new) 5outhwark Adult Advocacy Services (new) Windsor & Maidenhead Advocacy SeNlces Plans for the future Bulldlng on our work of recent years, local advocacy and Healthwatch teams continue developing thelr worklng relationships wherever we work, We belleve that the best way of delivering our services to those who need them the most is by working alongside and in partnership with community organisatlons. We welcome working wlth partners where they can bring local or speclfic servlce user expertise that we lack. We want our staff and partner5 to feel empowered to innovate, to feel that The Advocacy People is a place that values thelr creativity. We recognise the importance of local branding for our services, where we work in tandem with partners to provide locallty focused advocacy. What we do Is all about what the cllents need. so we want to be confident and bold In building on our service offering to bring value to those client5. We will explore ways of bullding on our existing skllls to provide additional services to ensure clients get the informatlon they need and can get the support theywant. Financial Review Actual Income Increased by 17% (2022 - 6%) due to additional contract Income from new services primarily relating to additional Healthwatch but also advocacy services such as a new contract in Southampton and particularly increased spot purchase for'out of area worw. Savings from staff vacancles and subcontracted work also contributed to a signiflcant surplus despite payment of a significant additional unconsolidated payment to staff to recogni5e the yearfs achievements. Page 10 The Advocacy People. Company Number 0963421 (Limited by Guarantee) By comparison with 2023 overall staff costs increased by 6% due to Increased staffing from additional services but noting difficulties recruiting on some of the newer services reduced the level of increase. Staff-related costs partlcularly increased due to additional expenditure on training, recruitment and addltional travel costs. with staff prioritising greater face-to-face time with cllents. Further savlngs were achleved on rent and servlce charges with our central services now completely operating on a home working basis with our main office base utilised by our contact centre. However additional Healthwatch offices may See expenditure on office prem15es Increase In future years. There was contlnued investment in new equlpment and software, with contlnued Investment In data securlty. use of Power Bl for Internal dashboards and new staff expenses software purchased. The increase in the threshold for capital items also meant increased revenue expenditure but reduced depreciation charges. Total Income recelved was £6,277.676 (2023 - £5.366,908) and total expendlture incurred during the year was £5,846,845 (2023 - £5,352,905). This resulted In a net Inflow of funds of £430,831 (2023 - £14.003). Thls was split between a net outflow of funds from restricted reserves of £1.931 (2023 - £11,075); and a net inflow on unrestrlcted reserves of £432.762 (2023 - £25.078). Net cash generated by operating activities was £236,401 (2023 - £45,309), and after investing £604,418 (2023 zero) in fixed asset investments (which comprise solely of term deposits), the cash at bank was £880,406 (2023 £1,234,258) at the year-end, Debtors and prepayments at the year-end were £1,097,642 (2023 - £890.582). and creditors and accruals were £519,390 (2023 - £493,893). Looklng forward to 2024125. The Advocacy People wlll contlnue to consolidate its work across advocacy and Healthwatch and ensure It is equipped to deal with the challenges ahead. Principal funding sources The charity Ss primarily funded by contracts wlth statutory bodies, with 80% (2023 - 89%) of Income from charitable activlties relatlng to statutory advocacy services provlded to public authorities, Funding for non-statutory advocacy decreased to 6% of income (2023 - 10%). Healthwatch and other services provided 14% (2023 - 10%) of income. 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. Page 11 The Advocacy People. Company Number 0963421 (Llmited by Guarantee) Restricted reserves of £1,615 (2023 - £3,546) are held, where the purpose of the funding was granted for a specific purpose or objective. and funds remained unspent by the yearend. This will be drawn upon to fund specific work in line with their original purpose. Designated funds of £424.566 {2023- £246.094) have been allocated by the Board for specific purposes such as investment to develop new servlces. Thls includes a Flxed Asset Reserve which is set at a level equlvalent to net fixed assets representing the capltal Investment made in computers, software, furniture, and equlpmenL and a Penslons Reserve to provlde for a contlngent liabilltywhlch would arlse If The Advocacy People were to withdraw from membershlp of the Pensions Trust. At the end of the year the balance of the charity's free reserves was £1,673,504 (2023 - £1,419,215). an Increase for the year of £254.289. Thls Is after a transfer of £11,845 from the pension reserve relatlng to a reduction in the contingent liablllty being reported for the scheme, as well as a net transfer of £1,554 from the flxed asset designated fund. The level of free reserves at 31103124 was equal to 3.4 months {2023 - 3.2 months) of operatlng expenditure. It is the oplnlon of the trustees that the current level of reseNes Is justified glven the slgnlficant 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 organi5ation, Investment Policy The Advocacy People hold any cash in excess of workln8 capital requirement5 on deposlt primarily with the Co-operative Bank but also uses Lloyds Bank for term dep051t5. The amount of interest earned during the year was £31,793 (2023 - £9,252). This equates to a return of 2.3496 based upon the average of the opening and closing bank balances12023- 0.76%). Term deposits whlch are for three months or more are shown under Fixed Asset Investments and are placed for perlods of up to two years. The Advocacy People have an ethlcal Investment policy outlining human rights and environmental criteria with which potential Investment institutions are assessed. To meet these objectlves, The Advocacy People invests only in fixed-term Dr call accounts with Instltutlons that are considered to comply with our ethical crlterla and have a high security rating. Taking Into conslderatlon the overall level of reserves, and the level of reserves whlch are ear-marked for expenditure in the next year, the charlty has a policy of Investing for the short term only. Page 12 The Advocacy People. Company Nvmber 0963421 (Limited by GLiaranteel Going Concern Glven the factors reviewed above and in the light of The Advocacy People's financial position. its current range of activltles Ilnked 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 wlth note 1 (pl to these accounts the Trustee5 have continued to adopt the going concern bas15 In preparing the annual report and accounts. In preparing this report, the Trustees have taken advantage of the small companles, exemptlons provided bysection 415A ofthe Companies Act2006. Jane Dodson Chair 29th November 2024 Page 13 The Advocacy People (A company limited by guarantee) Independent Auditors, Report to the Members of The Advocacy People Opinion We have audiled the financial statements of The Advocacy People (the 'Charily') for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cashflows and the related notes. 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 Charity's affairs as at 31 March 2024 and ofthe Charity's income and application of resources. including its incorne 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 Ihe 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 Ihose standards are further described in the Auditors, responsibilities for the audil 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 United Kingdom, including the Financial Reporting Council'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. Concluslons relatlng to golng 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 Ihat, 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. Page 14 The Advocacy People (A company limited by guarantee) Independent Auditors, Report to the Members of The Advocacy People (continued) Other information The other information comprises the information included in the annual report other than the financial statements and our auditors, report Ihereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extenl otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otheMise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinion on 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 for the financial year for which the financial statements are prepared is consistent with the financial statements. the Trustèes, Report has been prepared in accordance with applicable legal requirements. Matter8 on whlch we are required to report by exception In the light of our knowledge and understanding of the Charity and its environment obtained in the course of the audit. we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if. in our opinion.. adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches nol visited by us; or the financial ststements are not in agreement with the accounting records and returns., or certain disclosures of Trustees, remuneration specified by law are not made; or we have not received all the information and expLqnations 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 Trustees, report and from the requirement to prepare a Strategic report. Page 15 The Advocacy People (A company limited by guarantee) Independent Auditors, Report to the Members of The Advocacy People (continued) Responsibilities of trustees As explained more fully in the trustees, resF)onsibilities statement, Ihe Trustees (who are also the Directors of the Charitable Company for the purposes of company law) are responsible for the preparation ofthe financial statements and for being satisfied that they gFve a true and fair view, and for such internal control as the Truslees determine is necessary to enable the preparation of financial statements Ihat 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 company's ability to continue as a going concern. disclosing, as applicable, malters 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 altemative but to do 50, Auditors, responsibilities for the audlt of the flnanclal 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 auditors, 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 misslatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed belcw.. Capability of the audit in detecting irregularities. including fraud Based on our understanding of the Charily and the sector as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of non- compliance with laws and regulations related to safeguarding. health and safety, general data protection regulations and employment law. 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 Charities SORP (FRS 102) Second Edition (released October 2019), the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial slatements (including the risk of override of Gonlrols) and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included= Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations related to safeguarding, health and safety, general data protection regulations and employment law. and Page 16 The Advocacy People (A company limited by guarantee) Independent Auditors. Report to the Members of The Advocacy People (continued) Auditors, responsibilities for the audit of the financial statements (continued) Assessment of identified fraud risk factors; and Review of expenditure to confirm no evidence of personal benefit. and Challenging assumptions and judgements made by management in its significant accounting estimates" and Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, thal may indicate risks of material misstatement due to fraud,. and Confirmation of related parties wilh management, and review of transactions throughout the period to identify any previously undisclosed Iransactions wilh related parties outside the normal course of business: and Reading minutes of meetings of those charged with governance. and Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting transactions: and Identifying and testing journal entries, in particular any manual entries made at the year-end for financial statement preparation. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregu12rities occurring due to fraud ratherthan error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation, As part of an audit in accordance with ISAS (UK), we exercise professional judgement and maintain professional S￿pliCiSM throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding o* internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Charity's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Truslees. Page 17 The Advocacy People (A company limited by guarantee) Independent Auditors. Report to the Members of The Advocacy People {continued) Auditors, responsibllitles for the audit of the financial statements (continued) Conclude on the appropriateness of the Trustees, use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may casl significant doubt on the Charity's ability to continue as a going concern. Ifwe conclude that a material uncertainty exists, we are required to draw attention in our auditors. report to the related disclosures in the financial stalements or, if such disclosures are inadequate, to modify our opinion. Our onclusions are based on the audit evidence obtained up to the date of our auditors, report. However, future events or conditions may cause the Charity to ￿ase to continue as a going concem. Evaluate the overall presentation. structure. and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and liming of the audit and significant audit findings. including any significant deficiencies in internal control that we identify during our audit. Use of our report This report is made solely to the Charity's trustees, as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charity's trustees those matters we are required to state to them in an 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 Charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have fomied. Petèr Manser FCA DChA (Senlor Statutory Audltor) For and on behalf of Kreston Reeves LLP Chartered Accountants Statutory Auditor Chatham Maritime Date.. Page 18 The Advocacy Peopl4 Colnpany Number 0963421 (Limtted by Guarantee) Statement of Flnancial Actlvitie5 (Incorporatlngan Income & ExpendltureAccount) For the Year Ended 31 March 2024 2024 2023 Unrestricted Restricted funds fijnds Total funds Total funds Notes Income from: Donations Charltable actlvltles Investment Income 837 6.219.070 31,793 837 6.245,046 31,793 2,977 5.354,679 9,252 25.976 Total Income 6.251.700 25.976 6.2T7.676 5.366.908 Expendlture on: Charltable actSvltles 5.818.938 27.907 5.846.845 5,352,905 Total expendlture 5.818.938 27.907 5,846,845 5,352,905 Net Income 432,762 {1,931) 430,831 14,003 Funds at 1 Aprll 2023 1,665.308 3.546 1.668.854 1,654,851 Funds at 31 March 2024 2.098.070 1,615 2,099,685 1,668,854 The Statement of Flnancial Activities Includes all gains and losses recognised in the year. The notes on pages 23 to 40 form part of these financial statements. Page 19 The Advocacy People. Company N￿n￿)er 0963421 {Llmlted by C￿￿rantee) Balance Sheet As at 31 March 2024 2024 2023 Notes Flxed A55ets Intanglble Assets Investments 36.833 604,418 641,251 38.387 38,387 Current Assets Debtors and Prepayments Cash ot Bank and in Hand 10 1.097.642 880.406 890,582 1.234,258 1.978,048 2,124,840 Creditors: Amounts falllng due wlthln 1 year 17 {519,390) (493,893) Net Current Assets 1.458,658 1,630,947 Credltors; Amounts falllng due after more than 1 year 12 (224) (4801 Net Assets 2.099.685 1.668,854 Fund5 Restrlcted Funds Unrestricted Funds Deslgnated Funds General Funds 14 1.615 3.546 424.566 1.673.504 246,093 1,419,215 Total Unrestrlrted Funds 2.098.070 1,665,308 Total Funds 2.099,685 1,668,854 The Trustees acknowledge their responsibilities for complying With the requirements of the Companles Attwlth respect to accounting records and preparation of financlal statements. The flnanclal statements have been prepared In accordance wlth the provlslons appllcable to entltles subject to the Small companies regime. The notes on pages 23 to 41 form part of these financlal statements. The flnanclal statements were approved and authorlsed for Issue by the Trustees on 29th November 2024 and signed on their behalf by: l Bews Hon. Treasurer J Dodson Chair Page 20 The A¢fvocacy People. Company Number0963421 (Llmlted by Guarantee) Statement of Cash Flows For the Year Ended 31 March 2024 2024 Total funds 2023 Total funds Cashflows from operatlng actlvltles Net Income Depreclation and amortlsation Investment income {Increasel In debtors Increase In creditors 430.831 19,182 (31,7931 (207.060) 25.241 14,003 70,244 {9,252) 157,157) 27,471 Net cash provlded by operatlng actlvltles 236,401 45,309 Cash flows from Inve5tlng actlvltles: Deposlt Interest received Payments to acquire intangible fixed assets Payments to acquire fixed asset investments Disposals of fixed asset investments at cost 31,793 (17,628) (883.918} 279,500 9,252 (9,660) Net cash (used In) Investln8 actlvltles (590.253) 1408} Chanse In cash and cash equlvalents In the year {353,852) 44,901 Cash and cash equlvalents at 1 st Aprll 1,234,258 1,189,357 Cash and cash equlvalents at 31st March 880.406 1,234,258 At 1 Aprll 2023 At 31 March 2024 Cashflows Cash flows from Investlng activitles: Cash at Bank and in Hand 1,234,258 (353.852) 880,406 The notes on pages 23 to 41 form part of these flnanclal statements. Page 21 The Advocacy People. Company Number 0963421 (Llmlted by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2024 1. Accounting Policies a) Basis of preparatlon The financial statements have been prepared in accordance with Accounting and Reportlng by Charltles., Statement of Recommended Practlce appllcable to charities preparlng thelr accounts in accordance with the Flnanclal Reportlng Standards appllcable in the UK and Republic of Ireland (FRS 102) {'Charities SORP FRS 102.) (Second Editlon, effertlve 1 January 20191 and the Companie5 Act 2006. The Charity constitutes a publlc benefit entity as defined by FRS 102. Assets and liabllltles are Inltlally recognlsed at historical cost or transaction value unle55 otherwlse stated In the relevant 3ccountlng pollcy. The flnanclal statements are presented In UK pound sterlln& whlch Is the Charltls functlonal currency. and rounded to the nearest pound. b) Legal status of the charlty The charlty Is a company limited by guarantee and has no share capital. In the event of the charlty belng wound up. the Ilablllty In respect of the guarantee is limited to £10 per member of the charlty. c) Income Income is recognised when the charity ha5 entitletnent to the funds, any performance condltlons attached to the Income have been met. it is probable that the income will be recelved and the amount can be measured rellably. Income from charltable actlvltes Includes grants and contracts for the provlsion of seNices to beneficiaries as specified in contracts and servlce level agreements wlth local authorlties, government bodie5 and other organi5ations. Voluntary income recelved by way of donatlons Is Included In full In the Statement of Flnanclal Actlvltles when Investment income compromises solely of interest on cash deposits. Income from grants, 15 recogn15ed when the charlty has entltlement to the funds, any performance condltions attached to the grants have been meL it Is probable that the Income will be recelved and the amount can be measured reliabEy and is not deferred. Income 15 deferred if any conditions for use Imposed by the donor have not been met. Page22 The Affvocacy People. Company Number 0963421 (Llmited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2024 d) Expenditure Cost of raising funds l.e. those costs Incurred in attracting voluntary income are no longer considered signlficant and there are no costs incurred In tradlng actlvitles that are purely to ralse funds. Cost of charltable attivities comprise costs incurred on the deflned charitsble purposes of the charlty and Include direct costs of the charltable activlties together with those 5UPPOrt costs incurred that enable these activlties to be undertaken. Support costs are those costs tha( whllst necessary to deliver an activity, do not themselves dlrectly produce charltable outputs. These will Include the cost of central servlces such as general management. finance and human resources. Expenditure Is allocated to the particular activity where the cost relates dlrectly to that actlvity. However, the cost of overall dlrectlon and administration of each activity, comprlsing the Salary and overhead costs of the central function, Is apportloned on an estimate of the staff tlme attributable to each activity. Governance costs (see Note 41 are costs associated with meeting the constitutlonal and statutory arrangements of the charity. including internal and external audlt and the cost of preparlng statutory accounts, the cost of Trustees, meetlngs, and other costs involved wlth the charity's strateglc management. e) Penslons The charlty has arranged a deftned contribution scheme that 15 available to all members of staff. The assets of this are held seperately from those of the charity In independently administered funds. The maln provider of these pension funds Is the Pen5ion5 Trust. but other prlvate providers are also used. Pension costs charged In the Statement of Flnanclal Actlvite5 represent the contrlbutlons payable by the diarlty In the year. fj Taxatlon The charitable company Is a registered charlty and Is exempt from the taxation of Income falllng wlthin chapter 3 part 11 of the Corporation Tax Att 2010 and sertion 256 of the Taxatlon of Chargeable Gains Act 1992 to the extent that thls Income Is used to achleve its charitable objectlves. No charge to taxatlon for the year has arlsen as a result of the actlvities of the charity. Value Added Tax is not recoverable by the charitable company and Is included within the relevant costs in the statement of financial activitie5. Page 23 The Advocacy People, Compary Number0963421 lknmited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2024 gl Intangible assets Intanglble asset5 are identifiable non-monetary assets without physical substance but from which future economlc benefits wlll accrue - for The Advocacy People - prlnclpally 50ftware. For intangible assets over £2.000 these are amortised at rates calculated to wrlte off each asset over it5 expected useful life which for software 15 assumed to be 20% unless clrcum5tances Indlcate otherwise. h) Flxed asset Investments Investments are stated at market value as at the balance sheet date. The statement of financlal actlvitles includes the net galns and losses arlslng on revaluatlon and dlsposals throughout the year. Investments are made purely In fixed term deposlts wlth Lloyds BanL there are no investment management costs. l) Debtors Debtors are recognlsed at thelr settlement amount, less any provlslon for non- recoverabillty. Prepayments are valued at the amount prepaid. j) Cash at Bank and in Hand Cash at bank and In hand includes cash and short term hlghly Ilquld Investments wlth a short maturity of three months or less from the date of acqui51tion or opening of the deposlt or slmllar accounL k) Credltor Llabllltles and Provlslons Liabllities are recogni5ed when there15 an obligation at the Balance sheet date as a result of a past event, it Is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Llabillties are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it ha5 recelved as advanced payments for the goods or 5ervice5 it must provlde. Provlslons are measured at the best estlmate of the amounts requlred to settle the obllgatlon. Where the effert of the tlme value of money Is materlal, the provlslon Is based on the present value of those amounts. dlscounted at the pre-tax discount rate that reflects the risks speciflc to the liability. The unwindlng of the discount is recognlsed within Interest payable and slmilar charge5. Page 24 The Advocacy Peopl¢ Company Number 0963421 (Llmited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2024 l) Financial instruments The charity only has financial assets and financial liabilities of a kind that quallfy as basSc flnanclal Instruments. Basic financial Instruments are initially recognlsed at transaction value and subsequently measured at their settlement value wlth the exception of bank loans whlch are subsequently measured at amortlsed cost using the effectlve interest m) Funds accounting General funds consist of unrestricted funds whlch the charlty may use for purposes at Its dlscretion. Designated funds are unrestrlcted funds earmarked by the trustees for a specific purpose. Re5trlcted funds are those where the donor has imposed restrlctlons on the use of the funds. n) Services provided by volunteers For the purposes of these accounts no monetary value has been placed on admlnlstratlve and other services provided by volunteers for the charity. o) Operatlng leases The charlty classlfies the lease of prlntlng equlpment as operatlng leases.. the tltle to the equipment remalns wlth the lessor and the equlpment Is replaced at the end of the economlc Ilfe of such equipment whlch Is nomally five years. Operating leases payable for the use of premises are charged on a stralght Ilne basis over the term of the lease. p) 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 flnanclal posltlon, the management of financlal risks, the level of current reseNes and exposure to price and cash flow rlsks as described in the Report of the Trustees Dn page 2-13. In partlcular by preparing multl-year budgets and forward looking cashflow analysls and projections. The Advocacy People has signFficant financlal resource5. and has a range of contracts wlth a mix of expiry date5 and a track record of winnlng new buslness, and is diversifying into new areas such a5 Healthwatch provision. As a consequence, the Tru5tee5 belleve that The Advocacy People is well placed to manage its business risks successfully desplte the current uncertain economlc outlook, After making enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to contlnue In operational exlstence for the foreseeable future. Accordingly the Trustees have continued to adopt the going concern basis In preparlng the annual report and accounts. Page25 The Advocacy People. Company NLEmber 0963421 {Linwted by Guaranceel Notes to the Financial Statements For the Year Ended 31 March 2024 q) Critical accounting estimates and areas of Judgement Preperation of the accounts requires the trustees and management to make slgnlficant judgements and estimates. The items in the accounts where these judgements and estlmates have been made include5: the useful economic lives attribu(ed to the intanglble fixed assets to determine the approprlate depreclatlon and amortisation charges; the basls on whlch support costs have been allocated across expendlture headlng5,' the estlmated value of accrued income and work in progress; the recoverability of trade debtors. 2. Income from donatlons 2024 Total 2023 Total Unrestrlcted Restrlcted Donations 837 837 837 837 2,977 2,977 No restricted income from donatlons was recelved in 2023. 3. Income from charltable actlvltles The Income, surplus for the year and net assets are attributable to the princlpal actlvlty, whlch Is prlmarlly to provlde advocacy serylces and the provlslon of Healthwatcli. The charity operates in. and the whole of Its Income Is derlved from, the Unlted Kingdom. 2024 Total 2023 Total Unrestricted Restricted Statutory advocacy Nonstatutory advocacy Healthwatch Other 5ervlce5 4,968,592 348.581 901,897 4,968,592 4,249,515 374,557 554,585 901,897 530,175 20,404 25.976 Total income 6.219.070 25,976 6.245.046 5,354,679 Restricted income from nonstatutory advocacy was £35.256 In 2023. Page26 The Advocacy People. Company Number 0963421 {Llmlted by Guaranteel Notes to the Flnancial Statements For the Year Ended 31 March 2024 Page 27 TheA(fvoEacyPeoplE.CafflparyNLwnber096Y21 ¢Lk￿ledty&•r￿eej Notes to the Flnanclal Statements For theyear Ended 31 March 2024 {al AnJlysls of Expendlture 2024 Total 2023 Total Current Year Dlrert costs Staff Costs Staff rélated costs Rent and servlce costs Icr and admln15tratlon costs Subcontractor fees Prtsfessltsnal fÈes and 51mllar Depreclatlon Dlrert Dlrert Dlrect Dlre(t Dlrect 3.113,516 222.536 20.714 284.218 47S.508 44,437 220.32S 14.733 S,853 27,473 81,901 1.984 449,326 15,528 17,148 50,500 580 27,957 15,669 629 3.798.836 253,426 43,71S 363,139 557.989 87.698 3,578,624 194,210 21,921 205.497 530.149 51,723 36.864 4.618,988 Dtrect Dlrert 13.320 4.160,929 352.269 561,039 30,566 5.104,803 Support costs Staff Costs Sthff related c95t5 Rent and servlce costs Icr and admlnlstratl. The Charlty pays employer contrlbutlons to 170 (2023- 146) staff who are members of a deflned contribution penslon scheme (see note 17). The average weekly number of employees during the year Ihead count) was as follows.. 2024 2023 146 29 19 Advocacy Servlces Healthwatch and Contact Centre Management and Administration 21 18 Total 194 183 Fulltlme equivalent staff 142 135 Page 33 The Advocacy People, Company Numiw 0963421 (Llmlted byGuaranteel Notes to the Financial Statements For the Year Ended 31 March 2024 Intangible Fixed Assets Software Software purchased developed in house Total COST At 1 April 2023 Additions in Year Disposals in Year 19,729 17.628 11,548) 57,960 77,689 17.628 11,548) At 31 March 2024 35.809 57,960 93,769 AMORTISATION At 1 April 2023 Charge for the Year Dlsposals In Year 8,392 7.590 {1,548) 30,910 11.592 39,302 19.182 (1,548) At 31 March 2024 14,434 42,502 56,936 NET BOOK VALUE At 31 March 2024 21.375 15,458 36,833 At 1 Aprll 2023 11,337 27,050 38,387 Flxed Asset Investments Movement In flxed asset Investments 2024 2023 Market value brought foThvard at 1 Aprll 2023 Add addltlon5 to investment at cost Dlsposals at carrying value Add net galn on revaluatlon 883.918 (283.918) 4,418 Market value as at 31 March 2024 604.418 Investments at market value ComprSsed: Fixed interest securitles 604.418 All investment assets were held In the UK as flxed term deposlts of up to two year5. Page 34 The Advocacy People, Company Number 0963421 (Limited by Guarantee) Notes to the Flnancial Statements For the Year Ended 31 March 2024 10. Debtors and Prepayments 2024 2023 Trade Debtors Prepayments Accrued income 759,978 44.347 293,317 686,095 35,458 169,029 1.097.642 890,582 11. Creditors . Amounts falllng due wlthln one year 2024 2023 Taxatlon and Social Securlty Trade Creditors Accruals Deferred Income (see note 12) 99.382 103.968 253.717 62,323 84.696 77,034 271,754 60,409 519.390 493,893 12. Deferred income 2024 2023 Balance at the beglnnlng of the year Amount released to income in the year Amount deferred In the year 60,409 (60,409) 62.323 38,056 138,0561 60.409 62.323 60.409 13. Creditors . Amounts falling due after more than one year 2024 2023 Penslon Ilablllty (note 171 224 224 480 Pension liabillty is to provlde for an Identlfled liablllty relatlng to a shortfall on the employee pension scheme. Page 35 The Advocacy People. Company Number 0963421 (Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2024 14. Statement of Funds Current year At 1 April 2023 At 31 March 2024 Income Expenditure Transfers Restricted Funds: Berkshlre West CCG West Berkshire Council Heathwatch Portsmouth (d) (e) 24.756 1,220 (24.7561 (1,151) (2,0001 (27.907) 1,546 2,000 3.546 1.615 Total Restrlcted Funds 25.976 1,615 Unrestrlcted Funds: Deslgnated Funds Fixed assets (h) 38,387 53,420 108,755 17,628 (19,182) 36.833 41.575 108.755 64,492 41.915 5,253 35,078 11.158 22,603 12,778 42.962 1.164 424.566 Pension Reserve Strategic Reserve Healthwatch Hampshire Heathwatch Portsmouth Healthwatch Reading Heathwatch Southend Healthwatch West Berkshire (11,845) ti) 64,492 37,248 5,253 13,874 11,158 16.603 12,778 42,962 837 18,000 (13,333) (k) 21,204 Healthwatch Wokingham Readlng Connnectors Berkshire West Donations 6,000 Im) In) 327 Total Deslgnated Funds 246.093 222.833 (32.515) (11.845) General Fund 1,419.215 6.028.867 (5.786.423) 11,845 1.673.504 Total Unrestrlcted Funds 1.665.308 6.251.700 (5.818.938) 2.098.070 Total Funds 1.668.854 6.277.676 (5,846,845) 2,099.685 Page 36 The Advocacy People. Company Number 0963421 (Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2024 14. Statement of Funds (continued) Prior Year At 1 April 2022 At31 March 2023 Income Expenditure Transfers Restrlcted Funds: WEBCAS la) Healthwatch Southend Ib) Healthwatch West Berkshlre (c) Berkshire West CCG {d> West Berkshire Council {el Portsmouth Heathwatch ifj Healthwatch Database Ig) 9,548 1.200 3,327 (9,548) (1.200) 15.977) (24.756) 2,650 24,756 1,000 2,000 7,500 37.906 546 1.546 2,000 (7,5001 (48,981) Total Restrlcted Funds 14.621 3.546 Unrestrlcted Funds: Deslgnated Fund$ Flxed assets Penslon Reserve Strategic Reserve Heathwatch Portsmouth Heathwatch 5outhend Healthwatch Woklngham Donations Total Deslgnated Funds (h) 98,971 73,114 108.755 22,190 (60.584) (19,694) 38,387 53,420 108,755 18,000 21.204 6.000 327 (5) 5,810 21,204 6.000 327 (10.0001 (kl (n) 303,030 33.341 (10.000} {80,278) 246.093 General Fund 1,337,200 S.295.661 (5.293.924) 80.278 1.419,215 Total Unrestricted Funds 1.640,230 5.329.002 (5.303.924) 1.665.308 Total Funds 1.654.851 5,366.908 (5.352.905) 1.668,854 Page 37 The Advocacy peO￿e, Company Number 0963421 (Llmlted by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2024 14. Statement of Fund5 (contlnued) Purposes of Fund balances {al The WEBCA5 fund related to a grant received for advocacy and related services for people with learning difficulties In West Berkshire. {b} The Healthwatch Southend fund relates to a small grants for its Board development. (c) The Healthwatch West Berkshlre fund relates to grant funding for specific project work durlng the year. (d) The Berkshire West CCG fund relates to grant funding for Learnlng Dlsablllty services. (e) The West Berkshlre Councll fund relates to grant fundlng for Learning Dlsablllty servlces. (f) The Portsmouth Healthwatch fund relates to grant fundlng fordevelopment work. Ig} The Healthwatch Database fund relates to grant funding for a Clvl replacement database. Deslgnated funds have been allocated by the Tru5tee5 for speclflc purposes and have been reviewed in Ilne wlth the strateglc prloritles of the organisation. {h) Fixed Assets represents the book value of flxod assets less depreciation to date - equlvalent to the non cash resources recorded In the balance sheet and unavailable for reallocatlon. They are expended when the relevant flxed assets are fully depreclated. Penslon Reserve- represents the estlmated contlngent Ilablllty that would arlse If The Advocacy People were to wlthdraw from Its current pension scheme due to a net deficlt on the scheme- see note 17 which indudes detalled Informatlon. 01 Strategic development- represents an amount allocated to provide funding to promote the development of The Advocacy People. (k) Designated reserves have been establlshed for each Healthwatch servlce to 5UPPOrt project and development work. (l) Fundlng received for the Core20Plus Connectors Programme carried forward for expendlture In the following financial year. (m) Fundlng received for the three Healthwatch formlng the Berkshlre West element of the Berkshlre, Oxfordshire and Buckinghamshire ICB from funding recelved from that organisation. (n) This represent5 non5peclflc donatlons which have been allocated to organlsatlonal development. Page 38 The Advotacy People, Company Number 0963421 ILlmlted byGuarantee) Notes to the Financial Statements For the Year Ended 31 March 2024 15. Analysis of Net Assets Between Funds Current year Fixed Assets Net Current Asset5 Creditors At31 March 2024 over one year Restrlcted funds 1,615 1.615 Unrestrlcted Funds: Designated Funds General Funds Total Unrestrlcted Funds 36,833 387,733 1.673.728 2,061,461 424.566 1,673.504 2,098,070 (2241 1224) 36,833 Total Funds 36,833 2.063,076 1224) 2,099,685 Prlor year Fixed Assets Net Current Assets Creditors At31 March 2023 over one year Restrlcted Fund5 3,546 3,546 Unrestr5cted Funds Deslgnated Funds General Funds Total Unrestrlcted Funds 38.387 207.706 1.419,695 1.627.401 246,093 1.419.215 1.665.308 (4801 14801 38.387 Total Funds 38.387 1,630,947 (4801 1.668.854 Page 39 The Advocacy Peopk Company Number 0963421 (Llmlted by Guarantee) Notes to the Flnanclal Statements For the Year Ended 31 March 2024 16. Operating Lease Commitment 2024 2023 The charity has commltrnents under operating leases for equipment land and buildlngs due: Withln one year Wlthln 2 to 5 years 21,772 23.603 14.391 32,151 Total operating lease commitment 45.375 46,542 17. Penslon Ilabllltles- actual and contlngent TPT Retlrement Solutlons ~ The Growth Plan The Advocacy People partlclpates Sn a multl-employer scheme whlch provldes benefits to some 638 non-assoclated participating employers. The scheme Is a defined benefit scheme in the UK. It 15 not posslble for the charlty to obtain sufficient Informadon to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scherne. The scheme Is subject to the fijndlng le81slatlon outlined In the Penslons Act 2004 whlch came Into force on 30 December 2005. Thls. together with documents Issued by the Penslons Regulator and Technical Actuarial Standards Issued by the Financial Reportlng Courscil. set out the framework for funding defined benefit occupational penslon schemes in the UK. The scheme Is classlfled as a 'last-man standlng arrangement,. Therefore. the charity is potentlally Ilable for other participating employers, obllgations if those employers are unable to meet thelr Share of the scheme deficit followlng wlthdrawal from the scheme. Partlclpatlng employers are legally required to meet thelr share of the scheme deficit on an annuity purchase basls on withdrawal from the scheme. A full actuarial valuation for the scheme wa5 carrled out at 30 September 2020. Th15 valuatlon showed asset5 of £800,3m. liabilities of £831.9m and a deficlt of £31,6m. To eliminate this funding shortfall. the Trustee of the scheme has asked the participating employer5 to pay additional contributions to the scheme. The recovery plan contrlbutions are allocated to each partlcipating employer in line with their estimated share of the Series 1 and Series 2 scherne liabilities. Page 40 The Advocary People, Company Number 0963421 (Llmtted by Guarantee) Notes to the Financial Statements For the Year Ended 31 March 2024 17. Pension liabllities- actual and contlngent (continued) Where the scheme is in deficit and where the charity has agreed to a deficit funding arrangement. the charity recognises a liablllty for thls obllgatlon. The amount recognlsed Is the net present value of the deficlt reductlon contributlons payable under the agreement that relates to the deficit. An amount has been recognised in the accounts to provide for this liabllity (see Note 14). The Advocacy People recognises a liabilty measured as the present value of the contributlons payable that arlse from a deficlt recovery agreement and the resultlng expense that would be recognlsed In the Income and expendlture account l.e. the unwlndlng of a discount rate as a finance cost In the period In whlch It arises. It Is these contributions that have been used to derive the charlty's balance sheet1Sablllty. 2024 2023 Provision at start of period Unwlndlng of the dlscount factor {Interest expense) Deficlt contributlon pald Remeasurements- impact of any change In assumptions Remea5urements- amendments to the contribution schedule 480 753 18 (274) 14 1274) (13) Provislon at end of perlod 224 480 Assumes discount rates of 5.31% {31103124) and 5.5286131103123) whlch are the equlvalent slngle dlscount rates which. when used to dlscount the future recovery plan contributions due, would give the same re5uIt5 a5 Using a full AA corporate bond yield cuNe to dlscount the same recovery plan contrlbutlons The charlty has also establlshed a deslgnated reserve to provlde for the contingent Ilablllty that would arlse If The Advocacy People were to decide to withdraw from the Pensions Trust, which is estimated at £41,575. {see Note 14(i)). However, there are no plans currently to exlt the scheme. Page 41