REGISTERED COMPANY NUMBER: 4004500 IEnglaDd and Wales) RÉGISTERED CHARITY NUMBER: 1081116 Report of the Trustees and Consolidated Financial Statements for the Year Ended 31st March 2024 for Solent Mlnd Solent Mind Contents of the Financlal Statements for the Year Ended 3tst March 2024 Page Report of the Trustees I to 17 Report of the Independent Auditors 18 to 20 Consolldated Statement of Financlal Actlvltles 21 to 22 Balance Sheet 23 to 24 Cash Flow Statement 25 Notes to the Cash Flow statement 26 Notes to the Financlal Statements 27 to 45 Solent Mlnd Report of the Trustees for the Year Ended 31st March 2024 The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report incorporating a strateEiC review with the consolidated financial statements of the charity for the yearended 31st March 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. STRUCTURE. GOVERNANCE AND MANAGEMENT Governlng document The charity is controlled by its governing document, its Memorandum and Arlicles of Association, being a companv limited by guarantee, as defined by the Companies Act 2006. REFERENCE AND ADMINISTRATIVE DETAILS Reglstered Company number 4004500 IEngland and Wales) Registered Charlty number 1081116 Registered office 15-16 The Avenue Southampton S017 1 XF Trustees Appolnted 06/09/2018 06109/2018 1210612024 1810912019 1810912019 15110/2020 29/01/2020 26105/2021 26/0512021 26/0512021 05110/2022 0711?12022 1210612024 25109/2024 25/09/2024 Reslgned John Wilderspin- Chair Robin Goater- Treasurer Gareth George Ruth Poyner Richard Pullen Haseeb Shakoor Denise Vine Simon Wickes Lucy Robins Helen Fuge Neil Sahota John Carter - Treasurer Claire Lowe (Chair elect) Company Secretary Sally Arscott - appointed 13 June 2022 Senior Statutory Auditor Paul Wright FCA DChA Independent auditors Sheen Stickland Chartered Accountants, Statutory Auditors 7 East Pallant, Chichester West Sussex, P019 1 TR Solent Mlnd Report of the Trustees for the Year Ended 31st March 2024 Adminlstratlon Information Solent Mind is a company limited by guarantee, as well as a registered charity. The charity was created in 1962, and the company was created in 2000. The written constitution and governing document is the Memorandum and Articles of Association, which was last amended in 2023. In February 2009, Solent Mind created a wholly owned subsidiary, Mayfield Nurseries, also a company limited by guarantee16808517} and a registered charity11128592}. Mayfield Nurseries Board approved the transfer of the activities of the charity together with the assets and liabilities to Solent Mind with effect from 31 December 2023. From that date all activities of Mayf ield Nurseries have been incorporated into Solent Mind and Mayfield N urseries has been dormant since that date. In 2012, Solent Mind, together with local children's charity the Rose Road Association, created Solent Support Solutions Ltd1SSS} to manage the finances for both charities. SSS employed the Director of Finance with Solent Mind's Chief ExecutSve and Treasurer both serving as Directors of the Company alongside representatives from Rose Road Association. Following the withdrawal of Rose Road Associatlon f rom the shared service agreement, the remaining Finance staff transferred into Solent Mind with effect f rom l January 2024, SSS no longer provides any shared services beyond thls date. The Board of Trustees are responsible for setting pay and remuneration of senior management personnel, any additional payment5 are based on an agreed set of parameters. Trustees also approve the annual staff pay review. The role of the Board is also to review all major risks and to ensure risk management processes are in place and effective to manage and mitlgate for those rlsks. Recruitment and appolntment of Trustees/ Directors: Periodically the Trustee Board does a skills audit and seeks to address identified skills gaps when appointing to vacancies. Vacancies are published. with applicants asked to describe how their skills and experiences match the person specification and role description. Shortlisted candidates are then interviewed by the Chair and the Chief Executive. Where it is agreed to proceed, they are invited to attend a meeting of the Trustee Board and then to apply to become a member of Solent Mind and being formally co-opted as a trustee and director. During 2023124 two new Trustees were appointed to Solent Mind, 5ub5equent to the end of the f inancial year the Treasurer has resigned and been replaced through an external process and one Trustee has resigned. Following the decision to Transfer Mayfield Nurseries into Solent Mind, all Mayfield Nurseries Trustees resigned from their roles. Additional Informatlon The day-to-day management of the organisation is delegated to the Chief Executive, who is also the designated Company Secretary. Sally Arscott was appointed Chief Executive on 13th June ?022, and ha5 driven the new purpose, values and strategy for Solent Mind which was formally launched in lune 2024. Solent Mlnd Report of the Trustees for the Year Ended 31st March 2024 The Chief Executive is supported by the Senior Management Team and in 2023124, this was as follows.. Debbie Prince: Director of H R (leaver May 20231 Neil Evans: Director of Finance & IT (leaver May 20231 Sue Forber: Director of iTalk (leaver October 2023 Jake Morrison: Director of Services {leaver July 20231 Clare Grant.. Assistant Director of Services Sue Mills.. Interim Director of HR Kevin Jones.. Interim Director of Finance (joined June 2023 and confirmed in role from June 20241 Robert Wayman: Director of Fundraising and External Engagement Sarah Brightwell.. Director of Inclusion and Impact Engagement wlth Employees Solent Mind is committed to good communication so that staff and volunteers are better Informed about the organisation, more involved in shaping future plans and better consulted about proposals and developments, To help us to achieve this, Solent Mind Matters ISMMI staff and volunteer forum meets on a quarterly basis. The CEO and People and Culture Director are in attendance along with staff representatives from across the organisation. Its a ims are as follows: promote good relations between trustees. manaBers, staff and volunteers through improved dialogue engage staff and volunteers in contributing to Solent Mind's plans and policies, including those which d irectly affect all support staff whose jobs are changing 4. jointly solve organisational problems and issues share information about changes in fundin8 and new developments The representatives listen to both positive and constructive feedback from across the organisation and bring issuesthat need addressin8 or discussing tothe quarterly meetings.Theminutesof the meetingsare published for all staff. All staff can attend the "Ask the Directors" meetings and submit questions in advance anonymously or contribute within the session. Solent Mind also has policies and processes to support any issues including mediation, grievances and whistleblowing. The annual staff conference provides a forum for all staff to meet and be involved strategy, operational plans and to share Stories and celebrate successes. Greenhouse Gas Emissions, Energy Consumptlon and Energy Efficiencv Solent Mind's energy consumption is less than 40,000 kwh per annum and theretore detailed disclosures are not provided. Solent Mind is committed to using renewable onergy and to reduce its impact on the environment wherever possible. The followlng provided services to the charitable company durlng 2023/24:_ Bankers: Unity Trust Bank, 4 Brindleyplace, Birmingha m, Bl 2JB. Handelsbanken, Oceana House. 39-49 Commercial Road, Southampton, S015 IGA Solicitors: Shoosmiths.. Forum 5, Parkway, Whiteley, Fareham, P015 7PA Womble Bond Dickinson.. Oceana House, Commercial Road, Southamplon, Harnpshire, S015 IGA Blake Morgan, New Kings Court, Tollgate, Chandler'5 Ford, Eastleigh, Hampshire, S053 3LG Solent Mind Report of theTrustees for the Year Ended 31st March 2024 Strategic Review Structure, Governance and Management Solent Mind is governed by a Trustee Board which meets every two months, with Sub Committees having specified areas of delegated authority; a Finance, Information, Risk & Compliance Subcommittee, the Business Development Subcommittee and People & Quality Subcommittee. The Trustees are also Directors of the Cha rity. The Trustees are ultimately responsible for all the operational activities and developments of the organisation. They have a particular responsibility for setting the strategic direction and agreeing to and monitoring the impact of policies and practice. There are established systems for trustee appraisal and trustees use their expertise to link into each service area. Terrns of Reference for the Board and each Sub Committee are reviewed annually. The responsibilities of managers and staff for day-to-day operations are set out in Solent Mind's Delegated Authority Procedures. The Trustees normally allocate an away day twice a year for their own tralning and development. In 2023124, in the May 2023 meeting included a review of Board Effectiveness Review and Strategy Development session. The November 2023 meetlng included service user stories, a review of the committee structure and a session to discuss scenario and scales of ambition. Our AGM took place in November 2023, and changes were agreed to the Articles of Association to delegate additional decision-making powers to the Board of Trustees who meet more regularly. Solent Mind is committed to being a diverse and inclusive charity. We strongly believe that a diverse board can make better decisions, improve the quality of governance and Sncrease public trust. Board members include both male and female, a range of ages, lived experience of mental health issues and diverse backgrounds including BAME. We strive to represent the communities we exist to serve. A trustee handbook is malntained, covering the role and responsibS1Sties of trustees includlng key organisatlonal docu ments such as risk management, safeguarding, health and safety and fundraising policies. It is provided to each new trustee f ollowing appointment. This handbook is updated annually. Trustees sign a Code of Conduct on joining the board. As part of the induction process. an induction checklist is carried out enabling trustees to attend key meetings with directors and programme leads, opportunity to attend Solent Mind Induction online course, provided with information to access Learnzone to attend mandatory training. Solent Mind is affiliated to Mind, the national mental health charity, as a Local Mind Association, the terms of this relationship being set out in the Mind Federation Agreement, signed on 1st April 202 1. The latest Federation Agreement includes an increased emphasis on local collaboration and clarification on working arrangements in overlapping areas among Local Minds. There is no f inancial or managerial connection beyond the payment of the membership fee. As with the Community Partnership Agreement, the Federation Agreement with Mind enables us to determine our own policies and activities locally. Solent Mind shares broadly the same charitable objects as other Local Mind Associations. Further to the provisions in the Federation Agreement, Solent Mind also has a Memorandum of Understanding with its neighbouring Local Minds, Andover Mind and Havant & East Hants Mind and thi5 sets out the shared vision and values for promoting better mental health to the communities of Hampshire. This supplements the ongoing collaboration whereby 5olent Mind, Andover Mind and Havant & East Hants Mind have created a Community Interest Company I" Hampshire M ind CIC'I to jointly deliver mental health services across Hampshire. Solent Mind Report of the Trustees for the Year Ended 31st March 2024 Strategic Review (cont.) Solent Mind takes advantage of Mind publicity, information and training as well as practical measures such as the block insurance policy. More importantly, Solent Mind joins with Mind and its regional network in national campaignin8 events and initiatives to support the charitable aims and promote the benefits of the charitable group. Risk Assessment: Solent Mind's Risk Register is reviewed by the Board every 6 months and the Trustees held a workshop session on risk management in June 2024. This sets out how different initial risks are assessed in terms of probability and impact to generate a risk score to assess risk significance. For each risk, the control measure and remedial action p13ns are used to determine and then mitigate the level of residual risk, and for major decisions to assess risk appetite. Safeguardin8 practice, Data Protection and Public Interest Disclosure Iwhistleblowingl policies are reviewed each year. All staff undertake online safeguardin8 training in their first few days of employment and this is supplemented with in-person training at our Induction days which are held every 6 weeks. Volunteers: We continue to support our volunteer workforce and during 2023124 have developed our volunteer roles in both Peer Support and Mayfield Nurseries and Set up new forums to support listening to the voices of our users and build peer support networks. Over the last year, our volunteers gave around 7,000 hours of volunteering time to support our services and projects. Many of our volunteers are ex-service users and their ability to progress into volunteering is an important next step in their own personal recovery. These volunteers are a150 supported with broader communitv and corporate volunteers, and together, they make a huge impact on the volume and diversity of work we can offer. Wè are proud of our volunteers, and value enormously the support they offer to both our organi5ation and service users. Over 2023124, we have also implemented the changes to our updated volunteer policy as part of the Mind Quality Mark process and are workin8 to develop this further, so we can continue to develop and expand volunteering levels across the organisation. Objectives and Actlvities The Trustees have considered the Charities Commission on Public Benefit and this is al the heart of everything Solent Mind delivers. The objects of Solent Mind as set out in our Memorandum of Association are.. "To promote the preservation OF mental health and to assist in relieving and rehabilitating persons suffering from mental disorders or conditions of emotional or mental distress, reqLJiring advice or treatment principally in Southampton and also in Hampshire, the Channel Islands and bordering areas in association with Mind and in accordance with the aims and objects of Mind" Our new Strategy introduces our purpose, "Supporting everyone to dovelop positive menta I wellbeing, live well and thrive" Solent Mlnd Report of the Trustees for the Year Ended 31st March 2024 Strategic Review (cont.) Significant Activities Solent Mind is an established provider of mental health services, and during 2023124, worked across Hampshire, Southampton and Portsmouth to provide support across the following main groups of services and activities: Location Main impacts and benefits Provided Oulreach Education and Southampton, Portsmouth and Hampshire Targeted work with specific under-represented communities, as well as wider engagement across our communitles Peer Support Southampton, Portsmouth and Hampshlre 'Support with inspiration, provided by people with lived experience of mental health issues, for people referred bv both primary and secondary mental health teams, as well as 5elf-referral in the community. Also targeting some specific communities, such as families of Military Serving Personnel. Employment Support to enable people affected by mental illness retain and / or seek employment. Employment support Hampshire Portsmouth and Talking Therapies Hampshire Low intensity psychological therapies via sub-contract with Southern Health NHS Foundation Trust Wellbein8 Southampton, Portsmouth and Hampshire Support to people with mild to moderate mental illne55 offering practical skills & courses, wellbeing groups, and in Southampton, horticultural therapy, Typically delivered via and focussed around our network of 7 regional Wellbeing centres. Dementia support Portsmouth and Southampton Supporting people affected by dernentia and their carers to manage their condition a nd through provision of cognitive activities and l.'15upport, hopefully slow its decline. Crisis Services Southampton & Portsmouth Face to face, text and telephone support to people feeling they are in crisis. Children and Young People Southampton, Portsmouth and Hampshire Across all our activities we strive to ensure that our services understand and are acces.%ible to Children and Young People. Gambling Support Southampton and Hampshire New service being set up to provide support for those impacted by gambling. Solent Mind works collaboratively with NHS Trusts. local government bodies, other not-for-profit organisations and grass-roots community group5 to ensure we can offer a broad range of mental health support and recovery to people of all ages and backgrounds across our communities. Solent Mlnd Report of the Trustees for the Year Ended 31st March 2024 Strategic Review (cont.1 The Trustees monitor the performance of its services, initially through the People and Quality Subcommittee. This includos both qualitative and quantitative evidence as to the impact that each service is making in support of our Vision includes numbers of people supported, waiting lists lif any), service user satisfaction, complaints and any safeguarding concerns. The Board has adopted a balanced scorecard approach, supplerrenting the service quality information with data relating to financial and HR performance. This gives the Board an overview of organi5ational performance in these key areas. In 2023124, six complaints were received within Solent M i nd and a further forty three complaints received through the Hampshire Talking Therapies service. All were resolved or processed through the Solent Mind's complaints procedure by year end. Solent Mind welcomes supporters of the charity to become members. Membership of Solent Mind allows the community to get more involved with the charity and to receive periodic i nlormation about the charity. As part of our desire to ensure an active membership base, mem bers were asked to confirm they wished to retain thei r membership. As of 31st March 2024, there were 94 members, compared to 91 al the start of the reporting year. Members are not charged a membership fee, they play an important role as ambassadors of the charity and to support our fundraising. All members were invited to attend our AGM in November 2023 and at the meeting the Members approved changes to the Articles of the charity including the responsibilities of the Board of Trustees. Solent Mind continues to maintain a strong presence on social media during theyear and keep our stakeholders up to date via our Annual Review, Solent Mind and Mayfield Nurseries website5, and Facebook, Twitter and Instagram. The Solent Mind website include5 regular updates on news and events and is located at htt www.solentmind.or news-events Solent Mind Report of the Trustees for the Year Ended 31st March 2024 5trateglc Report: Achlevement5 and Performance 2023124 - a year in numbers: Over 48,000 service user interventions in 2023124 Volunteers, excluding trustees gave over 7,000 hours to Solent Mind over the past year including 1,850 across our Wellbeing Centres 303,487 people visited our website,114% decrease against 20231. New users account for 97.3% users lup IS.I%I Our Heads-up and Children and Young People's project Supported over 6,000 young people in schools and colleges Over 1,700 people received employment support through our employment services Our Wellbeing Centres helped over 4,000 people across Hampshire Over 25,900 people were supported through Hampshire Talking Therapies The Lighthouse Crisis project supported over 820 individuals Crisis Services offered support to nearly 4,000 people within the Southampton area Throughout 2023/24 Solent Mind has been working Wlthin its whole communlty to create a new strategy. Thls has included the input of all staff at its annual conferences in both November 2022 and 2023 as well as the guidance and lead f rom the Board of Trustees. The new strategy was completed within the year and formally launched to staff and to our stakeholders in June 2024. Solent Mind Report of the Trustees for the Year Ended 31st March 2024 Reaching High Reaching Far, GrowingTogether Our strategy for 24-27 Solent Mind's Purp05e'. "Supportln8 everyone to develop posltive mental wellbelngi Ilve well and thrive" Over the next 3 years, we intend to reach high, reach far and grow together. This will focus on S themes.. Our communltles: We will provide accessible mental health and wellbeing support to anybody who needs it. Our services: We will deliver services that are inclusive, effective and tailored to meet individual needs. Our people and culture: We will develop, support and inspire our staff and volunteers to thrive and deliver the goals of our organisation. Our fundlng: We will actively seek, secure and manage resources to respond to community needs. Our organisation: We will be resilient, effective and sustainable As a result, our ambition is that our "organisational tree" will have deep roots aligned to our values, a stronger trunk able to weather storms, many branches of mental health and wellbeing support, long extending tendrils reaching into our communities, and funding sources that allow5 US to blossom. Our communlties: Strateglc Goal I: We will provlde accessible mental health and wellbelng support to anybody who needs it. We will proactively and appropriately reach out, to ensure people of all backgrounds and needs can easily access the ri8ht support. We will place more emphasis on the people and the places with the greatest needs. We will build trusting relationships with communities, partners and local employers to co-design services, share expertise, remove barriers and encourage access to relevant mental health services. We will have local venues which offer a sense of belonging, Social connectedness and a place of safetv. We will speak up for our communities and service users, challenge inequality and be an active voice for mental health locally, regionally, and also nationally, as part of the M ind Federation. Our services: Strategic Goal 2: We will dellver services that are inclusive, effective and tailored to meet individual needs. We will deliver excellent mental health and wellbeing services through evaluating best practice, measuring our impact and outcomes, and continually improving. We will offer a person-centred approach, using our lived and shared experiences to co-develop clinical and non-clinical sprvices which off or effective, wrap-around support. We will communicate widely a nd accessibly with people to ensure awareness of our services. We will ensure services are delivered within safe, inclusive and welcoming spaces. Report of the Trustees for the Year Ended 31st March 2024 Our people & Culture: Strateglc goal 3: We will develop, support and inspire our staff and volunteers to thrive and deliver the goals of our organisation. We will recruit and retain sufficient staff and volunteers to deliver the calibre, diversity and volume of work required. We will nurture a highly skilled workforce. developing talent through shared learning, effective training and career progression. We will value our people's skills. lived experiences and diversity of perspectives to inspire best practice, continually improve and contribute to the development of our organisation. We will demonstrate best practice in workplace wellbeing to ensure our employees are equipped to thrive in their role. Our fundlng: Strate8lc Goal 4: We wlll actlvely seek, secure and manage resources to respond to community needs. We will use resources effectively, demonstrating transparency and value for money in all we do. 2, We will diversify our funding source5, enabling independence and fina ncial sustainability of services. We will partner with our funders and other organisations, collaboratin8 to share resources and insights to improve our outcomes. Our organlsatlon: StrateElc Goal 5: Our organlsation will be reslllent, effectlve and 5UStalnable. We will have insightful and effective leadership to enable courageous, timely and informed decisions in line with our purpose. We will achieve our purpose through long term plans which are linancially, envlronmentally and operationally sustainable. 3. We will use effective systems, processes and information governance to measure and improve our impact. 10 Solent Mind Report of the Trustees for the Year Ended 31st March 2024 Rlsks and Future Challenges 2023124 has been a year of consolidation following a period of growth. The demand for mental health support and services continues to grow in a period where funding has started to be constrained as funders try to recover the additional costs needed during the COVI D19 crisis. Solent Mind has had to focus on improving its systems and finding ways to improve service efficiencies and support the service user needs a new and more efficient ways. During the year Solent Mind has invested in a new Finance system, upgrades to the HR and Payroll and has an ongoing project to implement a new Customer Relationship Management ICRMI system to improve its delivery and reporting of delivery to service users. The benefits of these system investments will be delivered for many years. A number of contracts to deliver our services have been extended, but this means the servlces will be set for re- tender in the near future, with many service contracts likely to be renewed at the same time. Funding cut5 and changes within our main stakeholders mean that the new services required may be packaged differently from our current contracts. To optimise successful continuation of our services we will need to be flexible and dynamic to secure ongoing funding and to expand into new services, We believe we have built strong relationships with our funders and stakeholders to support our ongoing delivery of services. We continue to work with our funders to ensure our effective delivery of service integrates with the connected services. With our Talking Therapies contract this has included careful workforce planning and the delivery of trained staff with career pathways into related services including the NHS step three services. Our funding for Wellbeing services from Hampshire County Council is expected to reduce and we have worked creatively to identify ways to ensure continuity of the Wellbeing support can continue if possible to support the same volume of demand from service users. Events occurrln8 slnce the year end Our Board of Trustees have benefited from the experienced leadership of the Chair and Treasurer for the past six years. both postholders have now stepped down f rom the Board. This is an exciting opportunity to bring in new knowledge, experience and ideas, but also challenging to lose the knowledge and wisdom that has guided Solent Mind through the challenges and opportunities of the recent years. A new Treasurer, John Carter, has been appointed and the new Chair Claire Lowe will take over in November 2024. Solent Mind Report of the Trustees for the Year Ended 31st March 2024 Financial Review Basis of accounting The annual financial statements of the Solent Mind group are attached to this report. The financial statements of the charitable company, which is a public benefit entity under FRS 102. have been prepared in accordance with the Charities SORP IFRS 102) 'Accounting and Reporting by Charities; Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Fi nancial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} (effective l January 2019),, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The consolidated financial statements of the charitable group and company have been prepared under the historical cost convention, as modified by the revaluation ofcertain assets. The prior year Consolidated financial statements were prepared to Incorporate the results of Mayfield Nurseries - Solent Mind's IOOOA owned subsidiary charitable company. On 31 December 2023, the activities of Mayfield Nurseries was mer8ed into Solent Mind and from l January 2024 the activities of Mayfield Nurseries are incorporated with those of Solent Mind. Revlew of the year Net Incomin Resources before transfers for the. ear The group's yearly Total Net Incoming Resources lincludes investments from reserves) amounted to £128,901122/23 = £960,419}. The net income position before the actuarial adjustment for defined benefit schemes is £132,864 which compares to £965.190 for the prior year. The operating surplus for the year amounted to £128,901, there were no transfers from reserves,. this represents 1.0% of Total Incomlng Resources for the year122123 = £960,419 or 8.5% and included transfers from reserves). The prior year operatin8 surplus also includes release of previously deferred income of £394k as well as including £434k from new contracts based on flat line pricing which generate surpluses in early years to offset inflation in later years. These adjustments led to a significantly higher surplus than the underlying position for the prior year. 2023/24 reflects the actual income position based on in-year charitable activities. Solent Mind has seen income levellingoffforTalkingTherapies and Employment. Wellbeinggrowth is linked to a full year of funding and activitie5. Portsmouth based services and Peer Support services portfolios both show growth as contracts are being fully delivered this combined with increases in trading income ha5 driven the i ncrease in Net Incoming Resources for the year. Donations and legacies are improved as well as trading activities. Fu nding for Therapy linked to the Mayfield Nurseries has reduced, with ong.oing activities being supported from fundraising income. Mayfield Nurseries transferred into Solent Mind as at 31 December 2023. The Solont Mind strategy brings tighter links with Solent Mind's Southa mpton based services and strengthens the site's role a5 a Wellbeing Centre placed in its community. During 23/24, Solent Mind continued to contri bute to clear an actuarial105s on its defined benefit schemes, the accounts include £3,963 Showing as a loss, the balance should be cleared in 2024125 subjected to further actuarial valuations. 12 Solent Mind Report of the Trustees for the Year Ended 31st March 2024 Incoming Resources for the Year Gross income for the group for the year has increased to £12,380,694 cornpared to £11,255,556 in 2022/23. This is an increase of £1,125,138 or IOQ/o. The principal funding source5 are derived from contract and grant income which accounts for90Yo or £11,114,51212022123= £10,506,060or 93Dhl ofsolent Mind group's total income. The majority of funding is through service contracts with NHS and local authorities, which are typically between one and three years. This provides Solent Mind with financial stability over the medium term and allows for greater planning certainty and decision making. This also presents a risk as income is subject to re-tender and this is discussed elsewhere within the report. Resources Expended Resources expended for the year totalled £12,247,830 an Increase of £1,957,464 or 19Yo on last year122123 £10,290,366). Charitable Actlvlties expenditure accounted for £11,591,145 of the Solent Mlnd's total resources expended, this is a small increase in percentage terms at 95% compared to 94% in the prior year. The i ncrease reflects increased investment in systems and IT Inf rastructure which has been apportioned to the projects. These investments will support future efficiencies and reportlng to deliver improved services in the future. Capltal Expendlture Solent Mind's group capital expenditure for the year amounted to £17,598 compared to 22123 of £166,004. Reserves Pollcy Solent Mind is keenly aware of the need to secure its viability beyond the immediate future. To enable the charity to provide reliable services or funding over the longer term, Solent Mind must be able to absorb setbacks and to take advantage of change and opportunitv. The charity provides for thi5 by maintaining adequate levels of reserves. Where the reseNes can be linked to a specific purpose, unrestricted reserves are separated into designated fund5. It 15 prudent to set aside reserves to cover future potentia I liabi lities. As far as possible. the aim is to a Iso have adequate levels of free reserves to be able to underwrite and makefundsavailable totake advantage ofanyopportunitiesthat may come the way of the charitv. Solent M ind's Trustee Board has considered the adequacy of its reserves held on 3 1st March 2024, in line with its policy to do so on an annual basis following detailed scrutiny and recommendations by its Finance. Information, Risk and Compliance Subcomm ittee, wh ich itself is guided by the Charity Commission guidance on charity reserves. The charity needs reserves to enable it to continue as a going concern. The Trustee Board considers the reserves held on the balance sheet to be at an adequate level to meet their responsibilities and commitments, protect and advance it5 cu rrent activitie5 and to enable it to progress its long term ai ms and objectives as outlined in the Strategic Plan. Solent Mind Report of the Trustees for the Year Ended 31st March 2024 Funds Total fur)ds for the Group as at 31st March 2024 are £4,487,369 131 March 2023 = £4,305.9161 of which £3,702,887 relates to unrestricted funds, £ 152,338 relates to restricted funds and £632,144 relates to permanent endowment funds. Unrestricted funds held by Solent Mind total £3,702,887 of which £2,280,138 is held in general reserve and £415,954 in the revaluation reserve. £661,823 has been designated for particular purposes and a further £344,972 is held in the general inf rastructure reserve. The general infrastructure reserve is to be used to cover unforeseen losses in central income used to support Solent Mind's infrastructure. Restricted funds total £ 152,338, of which £49,042, set aside in a Property Maintena nce Reserve, relates to a cash donation from MJ8 Charitable Trust to be used specifically for major repairs and improvements on the properties transferred. £26,748 is held in the Marcella House Legacy Reserve to be used specifically for the Marcella House Project, £33,861 relates to funds from the mergei with Fareham and Gosport Mind and is to be used in the Fareham and Gosport area only. £42,686 Is held for other restricted funded projects in relation to the Wellbeing Centres including Mayfleld Nurseries, Permanent Endowment funds total £632,144 and this relates donations from the MJB Charitable Trust and includes three properties that were transferred. Note 22 to the financial statements gives further detail of these properties and the restrictions and condition. Note 21 to the accounts provides more detail of all the reserves held by Solent Mind and the movements within the year for these reserves. Whilst the accounts show growth in 2023124 compared to 2022123, it is clear that this growth has now levelled out. During 2023124 budgeted growth for Talking Therapies was halted and actions were taken to reduce costs whilst still maintalning long term workforce planning. Funding for Peer Support based in GP surgeries saw growth constrained bv funder decisions. Hampshire County Council also announced plans to cut their funding for Wellbeing Services. In all case5 5olent Mind has worked pro-actively with our funders and creatively to minimise any impact on service users. Solent Mind works with its staff and lived experience networks and NHS colleagues to identify opportunities to improve services and share best practice. Solent Mind continues to adapt its service to meet the needs of its community and the funding opportunities to deliver its charitable aims. The new strategy developed during 2023124 and launched in J une 2024 sets out our aims to deliver our new purpose. Action5 include investing in a CRM system, growing our volunteer networks and increasing our fundraising including gifts in kind from our incredibly supportive network ol corporate supporters. Solent Mind has benefitted from being largely funded by local authority and NHS contracts, with some funders having extended contracts beyond the original tendered contractual periods. This now presents a risk to Solent Mind as these services are re-tendered and the funders are seeking to make cost savings as the economy continues to recover from the impact of Covid and other issues. However, our approach to partnership working and long-term workforce planning to Increase the number of qualified mental health professionals in the region a150 provides career pathways into many N HS roles where there are national labour shortages, should place Solent Mind in a strong posltion to ensure long and flourishing relationships. 14 Solent Mlnd Report of the Trustees for the Year Ended 31st March 2024 Investment Policy The Finance, Information. Risk and Compliance Subcommittee does not consider it prudent at thi5 Stage to invest income for the longer term. Its policy for investment is therefore to retain funds as cash and place them on bank deposit at the best rate obtainable. The Treasury Management policy sets out the board's approach. Going Concern The accounts for 2023124 have continued to show the strong and continued relationships with partner institutions across the Hampshire region. The success of these partnerships is evidenced in the impact that Solent Mind is having on so many lives across our portfolio of services. The accounts demonstrate the ongoing funding relationships for the activities of Solent Mind. The risks relating to future funding of contracts being subjecl to regular tenders with NHS Trusts and local government bodies are understood. As discussed in the earlier section on Risks and future challenges, existing services are expected to be retendered in thls upcoming period. Additional resource has been identified to support the tender process and to consider the potentlal outcomes scenarios and risk mitlgations which may be necessary for a range of funding outcomes. The Trustees believe that Solent Mind can demonstrate its Going Concern status based on the portfolio of ongolng activities and contracts in place and the existing reserves held in the balance sheet backed up by assets including cash funds held in the bank. The ongoing strategy includes ambitious plans to continue lo support the mental health and wellbeing of the Hampshire region as well as actions in place to monitor and control costs to align these with the levels of income generated each year. With continued inflationary pressure on expenditure, Solent Mind is working through a cost improvement plan as well as taking actions to Improve its IT system5 including planned investments in its Finance and CRM systems. These actions have been included In an updated budget for 2024125 and outline budget for 2025126. Fundralslng Standards Informatlon Solent Mind is keen to ensure all its fundraising activities align with relevant fundraisin8 Buidance and regulations including the Charities Commission and the Fundraising Regulator. There is no use of professional fundraisers and no current commercial participators to support our fundraising. The independent Board of Trustees provide support and guidance to ensure our fundraising activities meet the required standards. There have been no incidences in the year where our f undraising has not complied with these requirements and there have been no complaints in relation to fundraising. As a charity committed to supporting mental health our services aim to support and protect vulnerable people and as such there is no active fundraising targeting vulnerable people. There are no telemarketing campaigns nor actions that could intrude on any individual's privacy and we do not employ any persistent approaches to fundraising or place pressures to donate. Disabled Employees Solent Mind is committod to being a fair employer ar)d takes full and fair consideration of the needs of disabled persons. This is considered from the application process which considered aptitudes and abilities through to the employment of disabled persons. Any stafl becoming disabled are supported and their needs responded to in supporting continued employment. 50Sent Mind is a150 committed to the training, career development and promotion of otjr disabled staff. 15 Solent Mind Report of the Trustees for the Year Ended 31st March 2024 Information provlded to Auditors All of the current Directors have taken all the necessary steps that they ought to. in order to make themselves aware of any relevant information las defined by Section 418 of the Companies Act 20061 needed by the charitable company's auditors for the purposes of their audit. The Directors are not aware of any relevant audit information of which the auditors are unaware. l(} Solent Mlnd Report of the Trustees for the Year Ended 31st March 2024 STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustee5 (who are also the directors of Solent Mind for the purposes of company lawl are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustee5 to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements. the trustees are required to.. select suitable accounting policies and then apply them consistently,. observe the methods and principles in the Charity SORP; make jud8ements and estimates that are reasonable and prudent; prepare the financial statements on the 80in8 concern basis unless it is Inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accou nting records which disclose with reasonable accuraty at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities, In so far as the trustees are aware.. there is no relevant audit information of which the charitable company's auditors are unaware,. and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. AUDITORS The auditors, Sheen Stickland, will be proposed for re-a ppointment at the forthcoming Annual General Meeting. This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by order of the Board of Trustees on 2 5, September 2024 and signed on its behalf by.. John Wilderspin - Chairman 17 Report of the Independent Audltors to the Members of Solent Mind Oplnion We have audited the financial statements of Solent Mind (the 'parent charitable company'l and its subsidiary (the 'group'l for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including signif ic3nt accountin8 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 Iunited Kingdom Generally Accepted Accounting Practice}. In our opinion the financial statements.. give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31st March 2024 and of the group's incoming resources and application of resources, including its income and expenditure, for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the group and charitable company in accordance with the ethical requirements that are relevant to our audit of the group financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relatin8 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 relatlng to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charitable company'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 descrlbed in the relevant sections of this report. Other information The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the group financial statements and our Report of the Independent Auditors thereon. Our opinion on the group financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the group financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 thi5 regard. Opinions 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 Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements,. and the Report of the Trustees has been prepared in accordance with applicable legal requirements. 18 Report of the Independent Auditors to the Members of Solent Mind Matters on whlch we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatement5 in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in ouropinion: adequate accounting records have not been kept or returns adequate for our audit have not been received frorn 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 specified by law are not made,. or we have not received all the information and explanations we require for our audit; or the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare Strategic Report or in preparing the Report of the Trustees. Responsibilltles of trustees As explained more fully in the Statement of Trustees Responsibilities set out on page 15, the trustees (who are also the directors of the parent charitable company for the purposes of company lawl are responsible for the preparation of the group financial statements and for beSng 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 group financial statements that are free from material misstatement, whether due to fraud or error. In preparing the group financial statements, the trustees are responsible for assessing the group and parent charitable company's ability to continue as a going concern, disclosing, a5 applicable, mallers related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group and parent charitable company or to cease operations. or have no realistic alternative but to do so. Our responslbllStles for the audlt of the flnancial statements Our objectives are to obtain reasonable assurance about whether the group fina ncial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when It exists. Misstatements can arise from f raud 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 8roup 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 f raud is detailed below.. Enquiry of management, those charged with governance and the entitws solicitors around actual and potential litigation and claims. reviewing minutes of meetings of those charged with governance Receiving financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. A further description of our re_sponsibilitie£ for the audit of tho group f inancial statemènts is locatod on the Financial Reporting Council's web51te at www.frc.org.uk/auditorsresponsibilitie5. This description forms Part of our Report of the Independent Auditors. 19 Report of the Independent Auditors to the Members of Solent Mlnd Use of our report This report Is made solely to the charitable company's members. 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 charitable company's members those matters we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Paul Wright FCA DChA (Senior Statutory Auditorl For and on behalf of Sheen Stickland Chartered Accountants Statutory Auditors 7 East Pallant Chichester West Sussex P019 ITR Date: 20 Solent Mind Consolidated Statement of Flnancial Activities forthe Year Ended 31st March 2024 2024 Total funds 2023 Total funds Unrestricted funds Restricted funds Endowrnent funds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 508,930 141,457 650.387 223,296 Charltable activities Employment & IAPT Wellbeing Other charitable activities Portsmouth Children and Young Persons Peer Support Therapy & Training 5,185,261 2,736,753 459.301 1,423,156 7,040 1,194,547 108,452 5,185,261 2,736,753 459,301 1.423,156 7.040 1,194,547 108,452 5,731,708 2,308,492 66,110 937,752 160,000 966,193 335,805 Other trading activities Investment income 541,778 74,017 541,778 74,017 479,840 46,360 Total 12,239,236 141,457 12,380,694 11,255,556 EXPENDITURE ON Ralslng funds Raising donations and legacies Trading activities 241,665 415,020 241,665 415,020 119,820 297,961 656,685 656,685 417,781 Charltable actlvltles Talking Therapies and Employment Wellbeing Other charitable activities Portsmouth Impact and Inclusion Peer Support Therapy & Training 5,394,960 2.373,662 123,128 1,722,297 211,827 1,263,301 321,547 5,394,960 2,452,368 134,471 1,723,467 234,743 1,268,033 383,103 5,585,633 1,568,724 201,233 988,664 183,308 877,876 467,147 78,706 11,343 1,170 22,916 4,732 61,556 Total 12,067,406 180,423 12,247,830 10,290,366 NET INCOME 171,830 138,9661 132,864 965,190 Actuarial gains/llossesl on defined benefit schemes 13,9631 13,9631 14,7711 NET MOVEMENT IN FUNDS 167,867 138,9661 128,901 960,419 Solent Mind Statement of Financial Actlvltles - contlnued for the Year Ended 31st March 2024 2024 Total funds 2023 Total funds Unrestricted funds Restricted funds Endowment funds Notes RECONCILIATION OF FUNDS Total funds brought forward 3,428,958 241,332 635,626 4,305,916 3,345,497 TOTAL FUNDS CARRIED FORWARD 21 3,702,887 152,338 632,144 4,487,369 4,305,916 CONTINUING OPERATIONS All income and expenditure has arisen from continuing activities. 22 Solent Mind Consolidated Balance Sheet 31st March 2024 2024 Total funds 2023 Total funds Unrestricted funds Restricted funds Endowment funds Notes FIXED ASSETS Tangible assets 13 1,404,998 600,000 2,004,999 2,030.527 CURRENT ASSETS Stock Debtors Cash at bank 14 15 66,410 1,700,172 1,692,456 66,410 1,700,172 1,844,794 65,665 758,794 3,043,952 152,338 3,459,038 152,338 3,611,376 3,868,411 CREDITORS Creditors 16 11,125,533) 11,125,533) 11,585,586) NET CURRENT ASSETS 2,333,505 152,338 2,485,843 2,282,825 TOTAL ASSETS LESS CURRENT LIABILITIES 3,738,504 152,338 600,000 4,490,842 4,313,352 CREDITORS Amounts falling due after more than one year 17 13,4731 13,4731 17,4361 NET ASSETS 3,735,031 152,338 600,000 4,487,369 4,305,916 FUNDS Unrestricted funds,. General fund Designated funds Revaluation reserve 21 2,280,138 1,006,795 415,954 1,369,660 1,738,344 320,954 3,702,887 3,428,958 Restricted f unds Endowment fund5 152,338 632,144 241,332 635,626 TOTAL FUNDS 4,487,369 4,305,916 These financial Statements have been prepared in accordance with the provisions applicable to charitable companies subject to the medium companies regime. The financial stcltements were approved by the Board of Trustees and authtsrised for issue on 25, September 2024 and were signed on it5 behalf bv.. J J wifvfv-- John Wilderspin-chairman John Carter - Treasurer 23 Solent Mind Individual Charity Balance Sheet 31st March 2024 2024 Total funds 2023 Total funds Unrestricted funds Restricted funds Endowment funds Notes FIXED ASSETS Tangible assets 13 1,404,998 600,000 2,004,999 1,972,775 CURRENT ASSETS Stock Debtors Cash at bank 14 15 66,410 1,700,172 1,692,456 66,410 1,700,172 1,844,794 741,882 2,982,419 152,338 3,459,038 152,338 3,514,136 3,724,301 CREDITORS Creditors 16 11,125,133) 11,125, 1331 11,527,069) NET CURRENT ASSETS 2,333,505 152,338 2,485,843 2,197,232 TOTAL ASSETS LESS CURRENT LIABILITIES 3,738,504 152,338 600,000 4,490,842 4,170,007 CREDITORS Amounts falling due after more than one year 17 13,4731 13,4731 17,4361 NET ASSETS 3,735,031 152,338 600,000 4,487,369 3,183,975 FUNDS Unrestricted funds.. General f und Designated f unds Revaluation reserve 21 2,280,138 1,006,795 415,954 1,415,625 1,599,064 320,954 3,702,887 3,335,643 Restricted f unds Endowment funds 152,338 632,144 191,302 635,626 TOTAL FUNDS 4,487,369 4,162,571 These financial statements have been prepared in accordance with the prtsvisions applicable lo charitable companie5 subject to the medium companies, regime. The f intincia15tatements were approved by the Board of Trustees and authorised for issue on 25, September 2024 it nd were signed on its behalf by.. John Wilderspin- Chairman John C2rter-Treasurer 24 Solent Mind Consolidated Cash Flow Statement for the Year Ended 31st March 2024 2024 2023 Notes Cash flows from operatlng actlvltles Cash generated from operations 11,186,602) 1,418.115 Net cash provided by operating activities 11,186,6021 1,418,115 Cash flow5 from Investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Interest received 1112,5981 26,024 74,017 1166,0041 19,145 46,360 Net cash used in investing activities 112,5571 1100,4991 Change In cash and cash equlvalents In the reporting perlod Cash and cash equlvalents at the beginnlng of the reportSn8 perlod 11,199,158) 1,317,616 3,043,952 1,726,336 Cash and cash equlvalents at the end of the reporting period 1,844,794 3,043,952 25 Solent Mind Notes to the Consolidated Cash Flow Statement for the Year Ended 31st March 2024 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net income for the reportlng perlod (as perthe Statement of Financlal Activities) Adjustments for: Depreciation charges Movement in Pension Deficit Interest received IGainl/loss on disposals Increasel/Decrease in debtors Ilncre3sel/Decrease in stocks Increase/lDecreasel in creditors 132,864 965,190 160,691 13,9631 174,0171 154,610 {4,7711 146,3601 1941,3791 17451 1460,0531 1,024,593 11,334 1686,4811 Net cash provided by operatlons {1,186,6021 1,418,115 ANALYSIS OF CHANGES IN NET FUNDS At 1.4.23 Cash flow At 31.3.24 Net cash Cash at bank 3,043,952 11,199,158) 1,844,794 Total 3,043,952 11,199,1581 1,844,794 26 Solent Mind Notes to the Flnanclal Statements for the Year Ended 31st March 2024 ACCOUNTING POLICIES Basis of preparing the financial Statements The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP IFRS 1021 '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 IFRS 102) (effective l January 20191,, Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, a5 modified by the revaluation of certain assets. Basls of consolldation The financial statements incorporate the results of Solent Mind and its charitable subsidiary Mayfield Nurseries. Exemption has been taken from including the statement of Financial Activities of Solent Mind on a non- consolidated basis in accordance with section 408 of the Companies Act 2006. Income All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliablv. The specific bases are used as follows.. Voluntary income includes donations on a receivable basis. Fundraislng Income is shown gross. Lease income is accounted for on a receivable basis over the life of the lease. Investment income is accounted for on a receivable basis. Income from government and other grants are recognised at a fair value when the charity has entitlement after any performance conditions have been meet, it is probable the income will be received and the amount can be measured reliably. If entitlement not met, amounts are deferred. Volunteer 5ervlces The value of services rendered by volunteers is not incorporated in these f inancial statements. The number of hours is given elsewhere in this document. It is recognised that the intangible value of Solent Mind volunteers far outstrips any financial worth that may be attributed to their service. Expendlture Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benef ils will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directlv attributed to particular headings they have been allocated to activitie5 on a basis consistent with the use of resources. Expenditure is recognised when it is incurred and is reported gross of related income. It is accounted for on an accruals basis and allocated to the appropriate headings in the financial statements.. Cost of raising funds comprises the costs associated with attracting voluntary income and the costs of other income generation, e.g. costs associated with fundraising. Charitable activities expenditure enables Solent Mind to meet its charitable aims and objectives. This expenditure comprises direct expenditure including direct staff costs attributable to its activities. Where costs cannot be directly attributed, they have boen allocated to activities on a basis consistent with the use of resources as described below. Governance costs are associated with the governance arrangements of the charity and relate to the general running of the charity. These costs include audit, legal advice for Trustees and costs associated with meeting constitutional and statutory requirements such as the cost of Trustee meetings and the preparation of statutory f inancial statements. Support Costs are those costs which enable charitable activilies and governance to be undertaken. These costs include central functions IFinance, IT, Human Resources & Admini51ralion and Function Management). These costs have been allocated to activity cost categories on a basis consistent with the use ol resources. 27 Solent Mind Notes to the Flnancial Statements- contlnued for the Year Ended 31st March 2024 ACCOUNTING POLICIES- continued Tangible flxed asset5 Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Freehold property Long leasehold IT equipment Motor vehicles Capitalised Software Fixtures and fittings Office equipment Building adaptations no depreciation is charged in accordance with the lease 25°A on cost 25% on cost 10 to 20% on cost 20% on cost 20Yo on cost IO°h on cost Where the recoverable amount of a fixed asset is found to be below its net book value, the asset will be written down to the recoverable figure and the loss on impairment is recognised in the SOFA. The f reehold and leasehold property is stated at market value on the basis of the valuations. Capital items purchased with a value below £IOOO and IT Equipment below £350 are not capitalised. Stock The closing stock represents plant and cafe stock held at Mayfield Nurseries. It5 value is deemed to be net selling price less mark up. Related party exemptlon The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, section 33, not lo disclose related party transactions wSth wholly owned subsidiaries within the group. Taxation The charity is exempt from corporation tax on its charitable activlties. Fund accounting Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objecls of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Hire purchase and leasing commitments Rentals paid under oporating leasos are charged to the Statement of Fina ncial Activities on a straight-line ba%is over the period of the lease. Pension costs and other post-retirement benefits The charitable company operate5 a definod contribution pension scheme. Contributions payable to the charitable company's pension Scheme are charged to the Statement of Financial Activities in the period to which they relate. 28 Solent Mind Notes to the Flnancial Statements - contlnued for the Year Ended 31st March 2024 DONATIONS AND LEGACIES 2024 2023 Donations Fundraising events 496,289 154,098 125.340 97,956 650,387 223,296 OTHER TRADING ACTIVITIES 2024 2023 Lease/room hire income Consultancy and training Plant and cafe sales Members Income 16,877 98,387 426,514 24,852 184,510 268,850 1,628 541,778 479,840 INVESTMENT INCOME 2024 2023 Deposit account interest 74,017 46,360 INCOME FROM CHARITABLE ACTIVITIES 2024 2023 Activity Talking Therapies and Employment Wellbeing Other charitable activities Portsmouth Impact and Inclusion Peer Support Therapy & Training Contracts Contracts & Grants Grants Contracts & Grants Contracts & Grants Contracts & Grants Grants 5,185,261 2,736,753 459,301 1,423,106 7,040 1,194,547 108,452 5,731,708 2,308,492 66,110 937,752 160,000 966,193 335,805 11,114,512 10,506,060 2() Solent Mind Notes to the Flnanclal Statements- continued for the Year Ended 31st March 2024 INCOME FROM CHARITABLE AcfiviTIE5 - continued Year ended 31.3.24 Year ended 31.3.23 Southampton City Council Hampshire County Council Southern Health NHS Foundation Trust Portsmouth City Council West Hampshire CCG Department for Work and Pensions Eastleigh He31th Primary Care Network Individual Service Contracts University of Southampton Solent NHS Trust Hampshire Mind CIC Solent Voluntary Services Coastal Primary Care Network Andover Mind Royal Navy and Royal Marines Charlty Other Contracts Southampton City Council SS MJB Zurich Community Fund Dibden Allotment Fund Richard C Hampshire and Isle of Wight Community Foundation Sovereign Housing Association Limited Southampton Voluntary Services Other Grants Contract Contract Contract Contract Contract Contract Contract Contract Contract Contract Contract Contract Contract Contract Contract Contract Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant 94,054 164,636 262,630 5,508,297 269,999 33,536 11,027 8,047 15,601 7,929 1,696,889 1,977,768 60,000 35,000 6,143,905 200,857 301,006 7,040 9,684 1,236,858 2,485,218 35,000 15,703 55,442 99,368 22,642 40,000 36,453 24,206 77,741 22,366 216,284 15,238 46,079 4,569 3,429 2,286 6,050 347,823 14,808 6,103 11,114,512 10,506,060 RAISING DONATIONS AND LEGACIES 2024 2023 Staff costs Governance costs Support costs Other direct costs 153,037 2,533 49,746 36,349 56,073 1,722 35,231 26,794 241,665 119,820 -30 Solent Mind Notes to the Financial Statements- continued for the Year Ended 31st March 2024 TRADING ACTIVITIES 2024 2023 Staff c05t5 Other direct costs Support costs 128,421 243,911 42.688 121,735 131,359 44,867 415,020 297,961 CHARITABLE ACTIVITIES COSTS Support costs Isee note 91 Direct Costs Totals Talking Therapies and Employment Wellbeing Other charitable activities Portsmouth Impact and Inclusion Peer Support Therapy & Training 4,208,974 1,915,167 105,015 1,345,935 183,322 990,266 299,183 1,185,986 537,200 29,456 377,532 51,421 277,768 83,920 5,414,133 2,452,368 134.471 1,723,467 234,743 1,268,033 383,103 9,047,861 2,543,284 11,610,317 io. SUPPORT COSTS Information technology Management Finance Talking Therapies and Employment Wellbeing Other charltable activities Portsmouth Impact and Inclusion Peer Support Therapy & Training 290,901 131,766 7,225 92,602 12,613 68,131 20,584 290,234 131,463 7,209 92,389 12,584 67,975 20,537 338,142 153,164 8,398 107,640 14,661 79,196 23,927 623,822 622,391 725,127 Human Governance costs resources Totals Talking Therapies and Employment Wellbeing Other charitable activities Portsmouth I mpact and Inclusion Peer Support Therapy & Training 252,732 114,477 6,277 80,452 10,958 59,192 17,883 13,977 6,331 347 4,449 606 3,274 989 1,185,986 537,200 29,456 377,532 51,421 277,768 83,920 541,971 29,973 2,543,284 Solent Mind Notes to the Financlal Statements- continued forthe Year Ended 31st March 2024 ii. NET INCOMEI{EXPENDITURE) Net income/lexpenditurel is stated after charging/{creditingl: 2024 2023 Auditors, remuneration Auditors, remuneration - non audit services Depreciation owned assets Other operating leases 20,000 5,500 160,691 57,499 19,671 3,553 154,610 43,935 12. TRUSTEES. REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31st March 2024 nor for the year ended 31st March 2023. Trustees, expenses Solent Mind - No expenses were paid to the trustees during the year12023: no expenses to Trustees). Trustee indemnity insurance cover of £1 milllon is provided for at a cost of £40 per annum, 13. STAFF COSTS 2024 2023 Wages and salaries Social security costs Other pension costs 8,426,005 689,092 248,281 6,912,449 598,834 207,717 9,363,377 7,719,000 The average monthly number of employees during the year was as follows: 2024 351 13 2024 366 13 Charitable activities Governance and support 364 379 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2024 2023 £70,001- £80,000 £ioo,ooi- £iio,000 Employer contributions for the year for the provision of a defined contribution scheme for the employees with emoluments above £60,000 was £4,54112023'. £2,048). Tolal trustee and key management personnel remuneration and benefit5 was £422,240. 12 Solent Mind Notes to the Flnanclal Statements- continued for the Year Ended 31st March 2024 14. TANGIBLE FIXED ASSETS GROUP Freehold property Long leasehold Plantand Machinery Motor vehicles Totals COST At 1st April 2023 Revaluations Additions Disposals 1,235,000 155,000 360,000 160,0001 1,494,924 9,970 3,099,894 95,000 17,598 154,0741 17,598 154.0741 At 31st March 2024 1,390,000 300,000 1,458,447 9,970 3,158,418 DEPRECIATION At 1st April 2023 Charge for year Eliminated on disposal 24,374 124,3741 1,036,945 108,106 8,048 320 1,069,367 84,052 At 31st March 2024 1,145,051 8,368 1,153,419 NET BOOK VALUE At 31st March 2024 1,390,000 300,000 313.397 1,602 2,004,999 At 31st March 2023 1,235,000 335,626 457,979 1,922 2,030,527 CHARITY Freehold property Long leasehold Plantand machinery Motor vehicles Totals COST At 1st April 2023 Revaluations Additions Disposals 1.235,000 155,000 360,000 160,0001 1,392,062 2,987,062 95,000 130,430 154,0741 120,460 154,0741 9,970 At 31st March 2024 1,390,000 300,000 1,458,447 9,970 3,158,418 DEPRECIATION At 1st April 2023 Charge for year Eliminated on disposal 24,374 124,3741 990,054 108,106 1,014,428 84,052 320 At 31st March 2024 1,145,051 8,368 1,153,419 NET BOOK VALUE At 31st March 2024 1,390,000 300,000 313,397 1,602 2,004,999 At 31st March 2023 1,235,000 335,626 457,397 1,922 2,030,527 33 Solent Mind Notes to the Financial Statements - continued for the Year Ended 31st March 2024 14. TANGIBLE FIXED ASSETS- contlnued On a historical cost basis the Freehold Property would be shown as.. Historical cost Depreciation 921,500 1240,0861 Freehold Property historical cost NBV 681,414 On a historical cost basis the Leasehold Property would be shown as.. Historical cost Depreciation 290,000 145,8951 Leasehold Property historical cost NBV 244,105 The freehold and leasehold properties were revalued on an open market basis in March /April 2024 by Ely Langley Greig Chartered Surveyors. 15. STOCK GROUP 2024 CHARITY 2024 2023 2023 Goods for resale 16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR GROUP 2024 CHARITY 2024 2023 2023 Contracts and grant fee5 Amounts owed by related undertakings Other debtors Prepayments Accrued income 1,315,221 57,748 160,089 79,615 87,500 539,678 1,315,221 57,748 160,089 79,615 87,500 538,768 7,369 37,993 127,671 30,081 48,468 128,457 42,191 1,700,172 758,794 1,700,172 741,882 -34 Solent Mlnd Notes to the Financial Statements- contlnued forthe Year Ended 31st March 2024 17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR GROUP CHARITY 2024 2023 2024 2023 Trade creditors Social security and other taxes 269,507 126,356 99,614 129,092 269,507 126,356 90,132 129,092 VAT 3,053 3,769 118,504 50,294 314,649 3,053 Other creditor5 Pension fund Accruals 118,504 48,444 286,480 53,463 54,394 53,463 54,394 Deferred income (see note 191 618,760 869,664 618,760 854,417 1,125,533 1,585,586 1,125,533 1,527,069 18. CREDITORS: AMOUNTS FALLING DUE AFfER MORE THAN ONE YEAR GROUP 2024 CHARITY 2024 2023 2023 Pension scheme liability 3,473 7,436 3,473 7,436 .35 Solent Mlnd Notes to the Financial Statements- contlnued forthe Year Ended 31st March 2024 19. DEFERRED INCOME GROUP Balance at 1.4.23 Balance at 31.3.24 Deferred Released Contract and Grants 869,664 618,760 1869,6641 618,760 Total Deferred Income Balance 869,664 618,760 1869,6641 618,760 Analysis of deferred Income Under one year 869,664 618,760 1869,6641 618,760 Total Deferred Income 869,664 618,760 1869,6641 618,760 CHARITY Balance at 1.4.23 Balance at 31.3.24 Oeferred Released Contract and Grants 854,417 618,760 1854,4171 618,760 Total Deferred Income 854,417 618,760 1854,4171 618,760 Analysls of deferred Income Under oneyear 854,417 618,760 1854,4171 618,760 Total Deferred Income 854,417 618,760 1854,4171 618,760 -36 Solent Mind Notes to the Flnanclal Statements- continued forthe Year Ended 31st March 2024 20. OPERATING LEASE COMMITMENTS The following operating lease payments are committed to be paid: 2024 2023 Land and bulldlngs Expiring= Within one year Between one and five years 39,000 122,075 28,792 43,935 161,075 72,727 21. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2024 2023 Unrestricted Funds Restricted Funds Endowment Funds Total Funds Total Funds Fixed assets Current assets Current liabilities Pension liabilitv 1,372,855 3,459,038 11, 125,5331 13,4731 3,702,887 632,144 2,004,998 3,611,376 11,125,533) 13,4731 4,487,369 2,030,527 3,868,411 11,585,5861 13,4731 4,305,916 152,338 152,338 632,144 -37 Solent Mind Notes to the Financial Statements- continued for the Year Ended 31st March 2024 22. MOVEMENT IN FUNDS-GROVP Net movement in funds Transfers between funds At 31.3.24 At 1.4.23 Unrestrlcted funds General fund Designated reserves General infrastructure reserve Revaluation reserve 1,369,660 1,393,372 344,972 320,954 128,901 781,577 1731,5491 2,280.138 661,823 344,972 415,954 95,000 3,428,958 223,901 50,028 3,702,887 Restricted funds Property maintenance reserve Marcella House legacy reserve Fareham and Gosport reserve Children and Young Persons Peer Support Wellbelng Other charitable actlvlties Mayfield Nurseries reserve 49,043 26,748 33,861 30,882 4,707 34,720 11,343 50,028 49,043 26.748 33,861 122,9161 14,7071 17,9661 7,966 42,686 111,3431 150,0281 241,332 138,9661 150,0281 152,338 Endowment funds Freehold property reserve Leasehold property reserve 300,000 335,626 300,000 332,144 13,4821 635,626 13,4821 632,144 TOTAL FUNDS 4,305,916 181,453 4,487,369 Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Gains and losses Movement in funds Unrestricted funds General fund Revaluation Reserves 12,380,694 112,247,830) 13,9631 95,000 91,037 167,867 95,000 223,901 12,380,694 112,247,830) Restricted funds Children and Young Persons Peer Support Wellbeing Other charitable activities Mayfield Nurseries Reserve 122,9161 14,7071 122,9161 14,7071 111,3431 111,3431 138,9661 138,9661 Endowment fund5 Freehold property reserve Leasehold property reserve {3,4821 13,4821 TOTAL FUNDS 12,380,694 112,290,278) 91,037 181,453 38 Solent Mind Notes to the Financlal Statements- continued for the Year Ended 31st March 2024 22. MOVEMENT IN FUNDS- GROUP- continued Cornparatives for movement in funds Net movement in funds Transfers between funds At 31.3.23 At 1.4.22 Unrestricted funds General fund Designated reserves General infrastructure reserve Revaluation reserve 1,027,671 813,509 344,972 320,954 921,852 1579,8631 579,863 1,369,660 1,393,372 344,972 320,954 2.507,106 921,852 3,428,958 Restrlcted funds Property maintenance reserve Marcella House legacy reserve F3reham and Gosport reserve Children and Young Persons Peer Support Wellbelng Other charitable activities Mayfield Nurseries reserve 49,043 26,748 33,861 26,992 791 39,429 49,(143 26,748 33,861 30,882 4,707 34,720 11,343 50,028 3,890 3,916 (4,7091 11,343 27,609 22,419 199,283 42,049 241,332 Endowment funds Freehold property reserve Leasehold property reserve 300,000 339,108 300,000 335,626 13,4821 639,108 13,4821 635,626 TOTAL FUNDS 3,345,497 960,419 4,305,916 Net movement in funds, included in the above are as follows: Incoming resources Resources expended Gains and 1055es Movement in funds Unrestrlcted funds General fund 11,022,272 110,095,649) 14,7711 921,852 Restricted funds Children and Young Persons Peer Support Wellbeing Other charitable activities Mayf ield Nurseries Reserve 23,160 4,401 77,741 11,343 116,639 119,2701 14851 182,4501 3,890 3,916 14,7091 11,343 27,609 189,0301 233,284 119 1,2351 42,049 Endowment funds Leasehold property reserve {3,4821 13,4821 TOTAL FUNDS 11,255,556 110.290,3661 14,7711 960,419 -39 Solent Mind Notes to the Flnanclal Statements- contlnued forthe Year Ended 31st March 2024 22. MOVEMENT IN FUNDS- CHARITY- contlnued Net movement in funds Transfers between funds At 31.3.24 At 1.4.23 Unrestricted funds General fund Designated reserves General infrastructure reserve Revaluation reserve 1,415,623 1,254,092 344,972 320,955 82,938 139,280 781,577 1731,5491 2,280.138 661,283 344,972 415,954 95,000 3,335,642 317,217 50,028 3,702,887 Restricted funds Property maintenance reserve Marcella House legacy reserve Fareham and Gosport reserve Children and Young Persons Peer Support Wellbeing Other charitable activities Mayf ield Nurseries reserve 49,043 26,748 33,861 30,882 4,707 34,718 11,343 49,043 26,748 33,861 122,9161 (4,7071 17,9661 7,966 42,686 111,3431 50,028 150,0281 191,303 11,065 150,0281 152,338 Endowment funds Freehold property reserve Leasehold property reserve 300,000 335,626 300,000 332, 144 13,4821 635,626 13,4821 632,144 TOTAL FUNDS 4,162,571 324,800 4,487,369 Net movement in funds, Included in the above are as follows: Incoming resources Resources expended Gains and losses Movement in funds Unrestricted funds General fund Designated Reserves Revaluation Reserves 12,239,236 139,280 95,000 112,152,335) 13,9631 82,938 139,280 95,000 12,473,516 112,152,516) 13,9631 317.218 Restricted funds Children and Young Persons Peer Support Other charitable activities Mayfield Nurseries Reserve 122,9161 14,7071 111,3431 122,9161 14,7071 111,3431 50,028 50,028 50,028 138,9661 11,065 Endowment funds Leasehold property reserve 13,4821 13,482 TOTAL FUNDS 12,523,544 112,194,783) 13,9631 324,800 40 Solent Mind Notes to the Financial Statements- continued forthe Year Ended 31st March 2024 22. MOVEMENT IN FUNDS- CHARITY- continued Comparatives for movements in funds Net movement in funds Transfers between f unds At 31.3.23 At 1.4.22 Unrestrlcted funds General fund Designated reserves General infrastructure reserve Revaluation reserve 1,027,848 674,229 344,972 320,955 967,638 1579,8631 579,863 1.415.623 1,254,092 344,972 320,955 2,368,004 967,638 3,335,642 Restrlcted funds Property maintenance reserve Marcella House legacy reserve Fareham and Gosport reserve Chlldren and Young Persons Other Charitable activities Peer Support Wellbein8 49,042 26,748 33,861 26,992 49,042 26,748 33,861 30,882 11,343 4,707 34,718 3,890 11,343 3,916 {4,7091 791 39,429 176,863 14,440 191,303 Endowment funds Freehold property reserve Leasehold property reserve 300,000 339,108 300,000 335,626 13,4821 639,108 13,4821 635,626 TOTAL FUNDS 3,183,975 978,596 4.162,571 Net movement in funds, included in the above are as follows: Incoming resources Resource5 expended Gains and 1055es Movement In funds Unre5trlcted funds General fund 10,562,788 19,590,379) 14,7711 967,638 Restricted funds Children and Young Persons Peer Support Wellbeing Other charitable activities 23,160 4,401 77,741 11,343 119,2701 14851 182,4501 3,890 3,916 14,7091 11,343 116,645 1102,2051 14,440 Endowment funds Loasehold property reserve {3,4821 13,4821 TOTAL FUNDS 10,679,433 19,696,066) 14,7711 978,596 Solent Mind Notes to the Flnancial Statements- contlnued for the Year Ended 31st March 2024 22. MOVEMENT IN FUNDS-CHARITY- continued Unrestrirted reserves General Reserve - funds that represent the net value of all unrestricted assets held by the charity. Designated reserves represent funds set aside to support charity developments and to manage future uncertainties and potential liabilities. General infrastructure reserve - funds set aside to cover losses in central income used to support Solent Mind's inf rastructure. Revaluation reserve reflects the change in value of buildings based on the most recent professional valuation. Restricted reserves Property maintenance reserve- £49,043 as current assets specifically for major capital repairs and improvements of Solent Mind's Endowment Freehold and Leasehold Property in relation to the MJB Charitable Trust property donations. Marcella House legacy reserve £26,748 as cash received In 2008-09 from a legacy to be used specifically in the Marcella House project. Fareham and Gosport reserve - funds transferred on merger with Mind Fareham and Gosport.. Net Current Assets £33,861. Wellbeing Centres have a historic reserve of £42,866. All other brought forward restricted reserves have now been allocated against actual expendlture In Ilne with the original funding. Permanent Endowment funds Freehold property reserve - £300,000 in relation to "The Hollies" a freehold property donated by MI B Charitable Trust. Current valuation at March 2024 is £400,000. Leasehold property reserve £203,972 (March 2024 valuation is £200,000) in relation to 'Marcella House" leasehold property and £131,654 Imarch 2024 valuation is £IOO,0001 in relation to 'Abbey Close" another leasehold property donated by MJB Charitable Trust. Restrictions and conditlons Solent Mind undertakes to continue to use Marcella House and The Hollies as mental health centres except with the express consent in writin8 of the Transferor or their successors as trustees of the MI B Charitable Trust, such consent not to be unreasonably withheld. In the unlikely event of the sale of the property 10 Abbey Close, any proceeds of sale shall be used for such purposes a5 the Transferors or their successors as trustees of the MJB Charitable Trust may agree in writing, such agreement may not to be unreasonably withheld. Planned use of Designated Funds The Trustees of Solent Mind have approved a list of actions to be funded from a strategic development fund of £IOOk, these are all short term investments to improve our services or f acil ities. Designated funding has also been set aside to support the increased costs for inflatioll of longer term projects which have level funding. The other material designated reserve is to ensure sufficient funding is set aside to invest in IT inf rastructure. 23. PENSION COMMITMENTS Solent Mind operates a defined contribution pension scheme. The assets of the scheme are held separately from those of Solent Mind in a fund independently administered by the Pensions Trust. The total contributions in the year were £248,281 and £53,463 was outstanding at the year end. SCHEME: TPT Retirement Solutlons- The Growth Plan The company participates in the scheme, a multi-employer scheme which provides benefits to some 638 non- associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtairn 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. 42 Solent Mlnd Notes to the Flnancial Statements- continued for the Year Ended 31st March 2024 23. PENSION COMMITMENTS- continued 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 company 15 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 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Trustee has asked the participating employers to pay additional contributions to the scheme as follows.. Deflclt contributlons Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company 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. The present valuè Is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost. PRESENT VALUE OF PROVISION 31 March 2024 31 March 2023 Present value of provision 3,473 7,436 RECONCILIATION OF OPENING AND CLOSING PROVISIONS Period endin8 Period ending 31 March 31 March 2024 2023 Provision at start of period Unwinding of the discount factor (interest expense) Deficit contribution paid Remeasurements - impact of any change in assumptions Remeasurements amendments to the contribution schedule 7,436 283 14,2491 11,664 220 14,2491 11991 Provision at the end of period 3,473 7,436 INCOME AND EXPENDITURE IMPACT Period ending Period ending 31 March 31 March 2024 2023 Interest expense Remeasurements - impact of any change in assumptions Remeasurements amendments to the contribution schedule 283 220 11991 43 Solent Mind Notes to the Financial Statements - continued for the Year Ended 31st March 2024 23. PENSION COMMITMENTS- continued ASSUMPTIONS 31 March 2024 31 March 2023 % per annum 5.31 % per annum 5.52 Rate of discount The discount rates shown above 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. 24. CONTINGENT LIABILITIES As at 31 March 2024 Solent Mind has no contln8ent liabilities (None at 31 March 2023}. 25. RELATED PARTY DISCLOSURES Throughout the period Solent Mind was controlled ultimately by its members who meet annL¢ally at the Annual General Meeting. The Board of Trustees elected by the members governs the affairs of the charity between Annual General Meetings. Mayfield Nurseries merged back into Solent Mind on 31 December 2023 and therefore there was no balance owed to Solent Mind 12023: £8,298) at 31.3.24. Solent Mind therefore also owed no balance to Mayfield Nurseries12023.' £1,283) at 3 1.3.24. On 1st April 2012 the finance and IT and related functions of Solent Mind and Mayfield Nurseries were transferred to Solent Support Solutions Limited a company which is jointly controlled by Solent Mind and Rose Road Assoclation, This arrangement came to an end during 2023/24 with Rose Road Association withdrawing from Soleni Support Solutions as at 31 October 2023 and the remaining services transferring to Solent Mind as at 31 December 2023. The accounts for Solent Support Solution5 Ltd were ongoing as at 31 March 2024 as all accounting i55ue5 were resolved between the three organisations. At 31 March 2024 Solent Support Solutions owed Solent Mind £57,74812023 = £1,792) and Solent Mind did not owe Solent Support Solutions any debt 12023 = £4,3441. This balance wa5 unusually high as it was required to cover for outstanding fund5 due from Rose Road Association late payments. On 18th July 2017, Solent Mind participated in creating a joint venlu re Community Interest Company, named Hampshire Mind CIC, with Havant Mind and Andover Mind and share equal control. Hampshire Mind CIC owed Solent Mind £911,92312023 = £223,177) at 31.3.24 and Solent Mind owed Hampshire Mind CIC £9012023 £901 at 31.03.24. Invoicing was late in year due to the new system go live for both Solent Mind and Hampshire Mind. 44 Solent Mind Notes to the Financial Statements- continued for the Year Ended 31st March 2024 26. NET INCOME FROM TRADING ACTIVITIES OF SUBSIDARY The decision was made by the Trustees of Mayfield Nurseries to transfer back into Solent Mind. The wholly owned subsidiary Mayfield Nurseries contained the trading activities that previouslv Benerated income for Solent Mind. Mayfield Nurseries was set up as a charity incorporated in the UK, and whose principal activity is the operation of Horticultural therapies and Members activities. A summary of the trading results for Mayfield Nurseries is shown below. Audited financial Statements have been filed with the Registrar of Companies. 2024 accounts have now been incorporated into these f inancial statements. The table below includes the Mayfield Nursery accounts up to 31 December 2023 at which date the transactions and balance sheet transferred back into Solent Mind, accounts. 2024 2023 Turnover Cost of sales Gross profit 524,202 678,696 180.9581 1172,1271 443,244 506,569 Operating and adminlstrative expenses Operating profit/llossl 1478,3091 1524,7441 135,0651 118,175 Retained reserves brought forward Retained reserves 143,347 108,282 161,522 143,347 45