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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 04018315 (England and Wales) REGISTERED CHARITY NUMBER: 1084106

THE ADVOCACY PROJECT (A COMPANY LIMITED BY GUARANTEE)

Report of the Trustees and Audited Financial Statements

for the Year Ended 31 March 2021

THE ADVOCACY PROJECT

Contents of the Financial Statements for the year ended 31 March 2021

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 8
Report of the Independent Auditors 9 to 11
Statement of Financial Activities 12
Statement of Financial Position 13 to 14
Statement of Cash Flows 15
Notes to the Statement of Cash Flows 16
Notes to the Financial Statements 17 to 27

THE ADVOCACY PROJECT

Reference and Administrative Details for the year ended 31 March 2021

Trustees

Adam Antonio Ms Claire Starza-Allen Michael Hagan Dr Dele Olajide Jacqueline Sheila Mckinlay Judith Davey Jonathan Robert Ellis Roger Skipp Ms Gemma Bull Satish Mathur (resigned 16/4/2020) Ms Lesley Carol Baliga (appointed 20/5/2021) Ms Helen Richardson (appointed 20/5/2021)

Company secretary Judith Davey Registered office Kemp House 152-160 City Road London EC1V 2NX Registered company number 04018315 (England and Wales) Registered charity number 1084106 Independent auditors Haines Watts Chartered Accountants New Derwent House 69-73 Theobalds Road London WC1X 8TA

Page 1

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2021

The trustees present their report and accounts for the year ended 31 March 2021.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities Objectives and aims

The Advocacy Project ensures that the most vulnerable people have meaningful choice and control over what happens in their lives. Our vision is a world in which every person has a voice. We place a relentless focus on enabling people to have their voice heard, uphold their rights, and make informed choices. We also seek to tackle testimonial injustice - this kind of injustice occurs when someone is ignored, or not believed, just because of their circumstances, their gender, race, or disability.

We achieve these aims by delivering a range of projects and services - statutory and non-statutory - including advocacy, user involvement and personal health budgets. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake

How we work

We try hard not to "do things to people" or do things for people. We help people to find their own voices and develop their capacity to do things for themselves - increase their own agency. These principles underpin our approach to evaluating our impact. We know that people feel stronger, safer and more confident after working with us. Click here to read some real stories from real people https://www.advocacyproject.org.uk/news/real-stories-about-real-people/

Just like last year, we are proud that, as of the date of publication, around 40% of staff have lived experience of the issues on which we work (whether learning disability, mental health or other disabilities). Two of our trustees are service users.

We are also a highly diverse organisation. This inclusivity and diversity helps us develop understanding and trust with service users. Understanding and trust means that our work is truly focused on those things that make a real difference to the lives of people who face disadvantage, discrimination and marginalisation.

Page 2

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2021

Objectives and activities

Achievements and performance

The economic climate continues to have been tough and there have been challenging times due to the COVID pandemic. However due to robust planning, strong risk management and a great deal of hard work by staff and trustees, this year has seen strong performance from The Advocacy Project.

It's been an incredibly tough year for the people that we work with, many of whom are no longer with us. We will use our memories of these people to inspire us in the work we do moving forwards, While many people can just about manage in "normal times", the impacts of the COVID pandemic showed how quickly vulnerable people can become desperate. The calls to our single point of access increased by over 50% from March 2020 and the issues are increasing complex. In line with advocacy referrals plummeting nationally, people contacting us felt they had nowhere else to turn for help. We were successful in applying for COVID-19 funding to do deep signposting (so people didn't "fall down the cracks" as we referred them to other agencies).

We undertook proactive wellbeing checks with people whose details we had in our GDPR compliant database - checking in with people to see how they're doing, nipping many issues in the bud and also highlighting systemic issues. It also helped us build people's capacity in terms of keeping themselves safe. The outcomes from this work were strong.

Many people managed to engage digitally (even those traditionally regarded as hard to reach through digital channels). However, digital channels are not appropriate in all cases and the digital divide has clearly deepened. We have felt very viscerally their increase in social isolation and loneliness that this divide is causing.

We have learnt from these experiences and have adapted accordingly. For example, we have now built "surge capacity" into our single point of access so that it's easier to manage sudden increases in contact from the public.

Other highlights from the year include:

Without exception all our funders and commissioners have worked collaboratively with us through these shared challenges so that we all do our best for the people we serve. We'd like to thank them for this constructive engagement.

Page 3

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2021

Objectives and activities Looking forward

We have reviewed our strategic plan again this year (as we did last year). We have concluded that the strategic plan contains the right goals and objectives, but the timetable for certain activities in the plan should be expedited to enable us to help change more people's lives more profoundly and also ensure that we remain financially sustainable. The pace of change has been slower this year due to the COVID pandemic, but we remain on track.

We also reviewed our income diversification plan, and no substantive changes were made. We continue to prioritise developing income streams from trusts and foundations to fund key projects. We will also target private providers of health and social care as potential funders of our work as the margin is higher in this area.

Given the particularly volatile operating environment at the present time, we will keep the strategic plan, the income diversification plan, and our financial forecast under close review. We are keenly aware that the impact of COVID-19 pandemic related expenditure on already cash strapped budgets is starting to bite, and a number of our public sector commissioners are experiencing financial difficulties. Increasing the funding we get from private health and social care markets, and from trusts and foundations is key to sustainability as the better margin on this work helps to offset the very low margins that we get from public sector funders.

Our plan remains as follows:

Our Delivery & Impact

Our Team

Our Governance

Our Partners & Income Generation

Building Our Profile

Page 4

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2021

Strategic report

Financial review

This financial year has been particularly tough , both in terms of maintaining income level and delivering services, where needed most, and cost effectively. No one could have prepared for the impact of COVID 19 pandemic on service delivery. For a long time, we could not carry out face-to-face advocacy, yet there was growing new demand, such as increase in contacts to our single point of access from people in desperate circumstances. We invested in ICT to provide all staff with necessary equipment such as a laptop and mobile phones so they can work remotely and flexibly. We moved out of St Charles office to save on rent and utilities. The working environment for our staff was difficult but they found innovative ways to deliver services to our vulnerable service users and protect our finances.

Despite the difficulties our turnover for 2020-21 is £2.26m which is an increase of £165k from 2019-20. This is because we secured three new multi years contracts with annual value of nearly £300k. We also received grant funding from the National Lottery to support our work during COVID.

Expenditure during the year was £2.24m (2020 : £2.19m) and we ended the year with a small surplus of £15k.

The outcome was better than expected given the year we had, and this gives us a good platform for the new financial year, 2021-22.

Our policy is that unrestricted funds that have not been designated for a specific use should be maintained at a level equivalent to between three and six months' expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, will enable us to continue current activities while consideration is given to ways in which additional funds may be raised.

In line with our strategic aims, trustees agreed to invest unrestricted reserves in organisational development to support our growth and sustainability. This year we continued to use some reserves to build a robust platform for the future including replacing laptops, mobile phones and further improvements to our case management database system and telephony system to enable flexible working environment.

This has enabled us to extend our reach, particularly during the pandemic so that we can work with more people more cost effectively. This investment in technology and infrastructure has already served us well in that it enabled a very smooth transition to home-based working. We continued to use reserves to invest in business development which is necessary to secure new community grants and ensure sustainability

Page 5

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2021

Strategic report Financial review

Fundraising

A review of our fundraising programme (which started in 2017) shows that we have generated £6.7m in income which represent steady and sustainable growth. Although there is more that we would like to achieve we no longer have "all our eggs in one basket" - we no longer have a dependency on any single source of funding. However please note that as most of the work that we get is multi-year, so it does not all show in the accounts for any individual year.

Like last year, again we have made strong progress; successfully winning grants and contracts totalling around £1m over three years. Our ratio of bids issued to bids won remains high.

The Advocacy Project's approach to growth and income diversification is to extend our core business across London and key national work through a variety of income sources - public sector contracts, private health and social care contracts, and grants from trusts and foundations. We will invest in seeking funds from trusts and foundations and also private providers over the year. We are also seeking to diversify into delivery of Healthwatch - statutory user involvement focused on reducing health inequalities and gathering patient and resident voices to improve delivery of local health and social care services.

In contrast to last year, we have seen a slight decrease in gifts and income in kind from corporates, and also legacies (possibly due to the pandemic). We hope to nurture these early signs of new income streams, but this is not an area of investment or particular focus.

Other highlights include:

No complaints have been received about our fundraising practices whether undertaken directly or by agencies acting on our behalf. We are registered with the Fundraising Regulator.

Our governance handbook, our business development procedures, and employee handbook show how we protect vulnerable people and others from unreasonable intrusion of a person's privacy, unreasonably persistent approaches or undue pressure to donate. We do not use direct marketing fundraising techniques. We do not use face-to-face or door-to-door fundraising techniques, nor do we outsource donor relationships to third parties. We do not exchange or sell our donors and supporters personal data.

Page 6

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2021

Structure, governance and management Structure

The Advocacy Project is a charity and a company limited by guarantee. Our objects enable us to have a governance structure with a board of trustees and a user council. We are a unitary board, and have three board committees - Finance, Risk & Audit, HR, Remuneration & Policy, and Business Development and Fundraising Committee.

In line with our values (and with permission from the Charity Commission), we pay service user trustees at London Living Wage for their time as trustees. The board delegates day-to-day management to the Chief Executive who works with and through the Senior Leadership Team.

Governance

Our governance handbook sets out the standards to which trustees must conform, and includes clear policies on managing conflict of interest, duty and loyalty. This handbook, which was reviewed during the year, assisted the charity in passing the rigorous process of accreditation to the Quality Performance Mark (QPM) - the kitemark for advocacy providers. The QPM desktop assessment report from 2021 describes the handbook as a "really excellent document". It also states that "the organisational governance framework is impressive, as is the use of external experts in governance the field as well as lawyers, health & safety and data protection experts to ensure compliance with legislation and best practice. Our safeguarding policies and practice have been assessed through the same process as being "excellent, comprehensive and clear. The 2021 desktop assessment report also states that our governance handbook and many of our policies "could be used as exemplars in other organisations".

Having a diverse board of trustees that reflect the people we support is of great importance to the charity as it demonstrates our values in practice. We have recruited a diverse board; around one third of trustees are service users. All recruitment was carried out using an open selection process and competency-based interviews. We are often asked to write articles for organisations like The Governance Institute (ICSA) and speak at Charity Sector conferences on how we have achieved board diversity in practice, and how we have made our governance processes accessible to everyone using approaches like financial accounts being available in easy read. Detailed information about the trustees can be found at:

http://www.advocacyproject.org.uk/who-we-are/trustees

Management

The Employee Handbook and the Health, Safety & Wellbeing Handbook clearly set our policies and procedures and are reviewed for compliance with legislation and best practice each year. We have improved our staff wellbeing offer still further by providing all staff with access to independent clinical supervision in addition to a 24 hour confidential care service (which provides access to counselling).

Known in the advocacy sector for the strength of our learning & development programme for staff, we support staff to achieve their national advocacy qualification (NAQ) or other professional qualifications. National experts contribute on a pro bono basis to our monthly lecture series, #TAPlectures. Subjects this year include issues facing people at the end of their life, safeguarding, and cuckooing.

The Advocacy Project's policy is to consult and discuss with employees matters likely to affect employees' interests. Information about matters of concern to employees is given through regular staff briefings, information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the organisation's performance.

We have a recognition agreement with UNISON.

We are a Mindful Employer and a Disability Confident Employer. Applications for employment by people with protected characteristics and disabilities are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event that members of staff become disabled, every effort is made to ensure that their employment continues and that the appropriate training is arranged. It is the policy of the charity that training, career development and promotion of disabled people should, as far as possible, be identical to that of other employees. We have developed easy read contracts of employment, appraisal and supervision processes for our staff with learning disabilities.

Trustees' responsibility statement

The trustees (who are also the directors of The Advocacy Project for the purposes of company law) 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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Page 7

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2021

Trustees' responsibility statement - continued

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the 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

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy 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:

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ..21 September 2021.................................. and signed on the board's behalf by:

.................................................................... Dr Dele Olajide - Trustee

Page 8

Report of the Independent Auditors to the Trustees of The Advocacy Project

Opinion

We have audited the financial statements of The Advocacy Project (the 'charitable company') for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 described in the relevant sections of this report.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the charity's ability to continue as a going concern. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the charity's activities and wider economy. The Trustees' view on the impact of COVID-19 is disclosed on page 3 & 4.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Page 9

Report of the Independent Auditors to the Trustees of The Advocacy Project

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Our responsibilities for the audit of the financial statements

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

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

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 below:

We gained an understanding of the legal and regulatory framework applicable to the charity and the area in which it operates, and considered the risk of acts by the charity that were contrary to applicable laws and regulations, including fraud. We discussed with the trustees the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Charities Act 2011. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.

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 irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 10

Report of the Indep8nd•nt Audllors to the Trustee5 of The AdvocaGy Project Usa of our report Thls report 18 made sdely to the Charitab￿ companys trustees. a5 a body, In accordance with Part 4 of the Charities (Accounts and Reportsl Regulation5 2008. Our audit has been undertaken so that we might siale lo ttE charitable cclnpan￿S trustees those rnatters we are required to state to them in an auditors, report and for no other putpose. To the fullest exlent permitted by law, we do not accept or assume reswnsitility to anyone other than the charitable company and the dwr(table companys trustees as a boty, for our audtt work, for this repor( or fr)r th2 oplrrions w8 have fomied. Haines Watts Ch￿tered Accountants Elw31￿e to act as an auditor in temis of Section 1212 of the Companies Acl 2006 New Derwent House 69-73 Theobalds Road Lc*)don WG1X 8TA Page11

THE ADVOCACY PROJECT

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2021

Unrestricted
Designated
funds
funds
Notes
£
£
Income and endowments from
Donations and legacies
2
594
-
Other trading activities
3
1,667,210
-
Investment income
4
79
-
Other income
3,336
-
Total
1,671,219
-
Expenditure on
Charitable activities
5
Support costs
378,607
-
Governance costs
6,443
-
Staff costs
1,035,638
-
Direct expenditure
241,284
-
Depreciation
10,118
4,542
Total
1,672,090
4,542
NET INCOME/(EXPENDITURE)
(871)
(4,542)
Transfers between funds
19
(27,556)
-
Net movement in funds
(28,427)
(4,542)
Reconciliation of funds
Total funds brought forward
438,438
15,896
Total funds carried forward
410,011
11,354		 Restricted
funds
£
206
588,412
27
-
588,645
207,689
2,221
255,614
102,677
-
568,201
20,444
27,556
48,000
9,364
57,364		 2021
Total
funds
£
800
2,255,622
106
3,336
2,259,864
586,296
8,664
1,291,252
343,961
14,660
2,244,833
15,031
-
15,031
463,698
478,729		 2020
Total
funds
£
3,049
2,090,425
1,477
-
2,094,951
622,018
4,425
1,253,776
305,250
6,437
2,191,906
(96,955)
-
(96,955)
560,653
463,698

Continuing operations

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 12

THE ADVOCACY PROJECT

Statement of Financial Position 31 March 2021

Notes
Fixed assets
Intangible assets
13
Tangible assets
14
Current assets
Debtors: amounts falling due within one year
15
Debtors: amounts falling due after more than one
year
15
Cash at bank and in hand
Creditors
Amounts falling due within one year
16
Net current assets
Total assets less current liabilities
NET ASSETS
Funds
19
Unrestricted funds:
Unrestricted fund
Designated fund
Restricted funds:
Restricted fund
Total funds		 2021
£
11,354
14,750
26,104
199,487
8,382
734,534
942,403
(489,778)
452,625
478,729
478,729
410,011
11,354
421,365
57,364
478,729		 2020
£
15,896
15,008
30,904
245,892
13,472
411,639
671,003
(238,209)
432,794
463,698
463,698
438,438
15,896
454,334
9,364
463,698

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The financial statements were approved by the Board of Trustees and authorised for issue on ..21 Sept 2021........... and were signed on its behalf by:

The notes form part of these financial statements

Page 13

THE ADVOCACY PROJECT

Statement of Financial Position - continued 31 March 2021

............................................. Dele Olajide - Trustee

The notes form part of these financial statements

Page 14

THE ADVOCACY PROJECT

Statement of Cash Flows for the year ended 31 March 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by/(used in) operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2021
£
332,649
332,649
(9,860)
106
(9,754)
322,895
411,639
734,534		 2020
£
(22,274)
(22,274)
(5,638)
1,477
(4,161)
(26,435)
438,074
411,639

The notes form part of these financial statements

Page 15

THE ADVOCACY PROJECT

Notes to the Statement of Cash Flows for the year ended 31 March 2021

1. Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Decrease in debtors
Increase in creditors
Net cash provided by/(used in) operations		 2021
£
15,031
14,660
(106)
51,495
251,569
332,649		 2020
£
(96,955)
6,437
(1,477)
47,479
22,242
(22,274)
  1. Analysis of changes in net funds
At 1/4/20 Cash flow At 31/3/21
£ £ £
Net cash
Cash at bank and in hand 411,639 322,895 734,534
411,639 322,895 734,534
Total 411,639 322,895 734,534

The notes form part of these financial statements

Page 16

THE ADVOCACY PROJECT

Notes to the Financial Statements for the year ended 31 March 2021

1. 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 (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', 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.

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have taken into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. In the year the charity has proactively taken steps to ensure current contracts are maintained and found alternative ways of delivering services and keeping in touch with service users. For the future the charity will attempt to continue to improve grow by winning new contracts and increasing income and profitability. Based on these assessments, given the measures that have been and could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

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 reliably.

Expenditure

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 benefits 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 directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Significant judgements and estimates

There are no critical accounting judgements and estimation uncertainty at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the financial year.

Allocation and apportionment of costs

Staff and support costs are allocated to the particular activity where the costs relate to that activity.

Overhead costs are apportioned based on the income of a particular activity.

Intangible assets

Intangible assets comprise primarily computer software and internal database systems. Such assets are defined as having finite useful lives and the costs are amortised on a straight line basis over their estimated useful lives of 5 years. Intangible assets are stated at cost less amortisation and are reviewed for impairment whenever there is an indication that the carrying value may be impaired.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 33% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Page 17

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2021

1. Accounting policies - continued

Fund accounting

Restricted funds can only be used for particular restricted purposes within the objects 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.

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank.

Cash and cash equivalents

These comprise cash at bank and other short-term highly liquid bank deposits with an original maturity of three months or less.

Debtors

Debtors do not carry any interest and are stated at their nominal value. Appropriate allowances for estimated irrecoverable amounts are recognised in the Statement of Financial Activities when there is objective evidence that the asset is impaired.

Trade Creditors

Trade creditors are not interest bearing and are stated at their nominal value.

2. Donations and legacies

Donations and gifts
3.
Other trading activities
Charitable trading activities
4.
Investment income
Interest receivable		 2021
£
800
2021
£
2,255,622
2021
£
106		 2020
£
3,049
2020
£
2,090,425
2020
£
1,477

Page 18

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2021

5. Charitable activities costs

Support costs
Governance costs
Staff costs
Direct expenditure
Depreciation
6.
Support costs
Support costs
Governance costs
Support costs, included in the above, are as follows:
Other
Staff costs
Building and office costs
Support and development costs
Governance costs
Auditors' remuneration
Management fees
Governance support
AGM & Annual report		 Support
Direct
costs (see
Costs
note 6)
£
£
-
586,296
-
8,664
1,291,252
-
343,961
-
14,660
-
1,649,873
594,960
Governance
Other
costs
£
£
586,296
-
-
8,664
586,296
8,664
2021
Support
costs
£
107,510
135,354
343,432
586,296
2021
Governance
costs
£
6,110
1,509
979
66
8,664		 Totals
£
586,296
8,664
1,291,252
343,961
14,660
2,244,833
Totals
£
586,296
8,664
594,960
2020
Total
activities
£
108,380
173,359
340,279
622,018
2020
Total
activities
£
3,095
1,330
-
-
4,425

Page 19

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2021

7. Net income/(expenditure)

Net income/(expenditure) is stated after charging/(crediting):

Depreciation - owned assets
Computer software amortisation
8.
Auditors' remuneration
Fees payable to the charity's auditors and their associates for the audit of the
charity's financial statements		 2021
£
10,118
4,542
2021
£
6,110		 2020
£
6,437
-
2020
£
3,095

9. Trustees' remuneration and benefits

The trustees were not paid or received any other benefits from employment (2020: Nil) except for service users, A Antonio and M Hagan, who have been paid the London Living Wage and the total during the year was £733 (2020: £1,025). This is in accordance with the charity's governing document.

No trustee received payment for professional or other services supplied to the charity (2020: Nil) except for J Davey, who was paid remuneration of £66,300 (2020: £66,400) in her capacity as the CEO. The charity also paid £3,978 (2020: £3,984) towards her pension contributions. She received no employment benefits for her role as a trustee.

The key management personnel of the charity comprise the CEO, Deputy CEO, Head of Finance, Head of Business Development and Head of Services. The total employee benefits of key management personnel of the charity were £258,399 (2020: 273,824).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

10. Staff costs

Wages and salaries
Social security costs
Pension costs
The average monthly number of employees during the year was as follows:
Employed staff
Sessional		 2021
£
1,131,102
130,325
77,658
1,339,085
2021
54
5
59		 2020
£
1,109,740
90,897
53,139
1,253,776
2020
53
7
60

Page 20

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2021

10. Staff costs - continued

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,001 - £70,000
£70,001 - £80,000
11.
Comparatives for the statement of financial activities
Unrestricted
Designated
funds
funds
£
£
Income and endowments from
Donations and legacies
3,049
-
Other trading activities
1,614,552
-
Investment income
1,477
-
Total
1,619,078
-
Expenditure on
Charitable activities
Support costs
502,242
-
Governance costs
3,420
-
Staff costs
944,806
-
Direct expenditure
222,026
-
Depreciation
6,437
-
Total
1,678,931
-
NET INCOME/(EXPENDITURE)
(59,853)
-
Transfers between funds
(23,587)
-
Net movement in funds
(83,440)
-
Reconciliation of funds
Total funds brought forward
521,878
15,896
Total funds carried forward
438,438
15,896		 2021
1
-
1
Restricted
funds
£
-
475,873
-
475,873
119,776
1,005
308,970
83,224
-
512,975
(37,102)
23,587
(13,515)
22,879
9,364		 2020
-
1
1
Total
funds
£
3,049
2,090,425
1,477
2,094,951
622,018
4,425
1,253,776
305,250
6,437
2,191,906
(96,955)
-
(96,955)
560,653
463,698

Page 21

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2021

12. Restricted income

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

PHB
Professional Advocacy
Kew Advocacy Training
Our Choice
Lottery Community Fund
Older Adult Advocacy
Big Voice
Speak Up Speak Out
User Involvement		 Balance at 1
April 2020
£
-
3,360
-
-
-
-
-
-
6,004
9,364		 Movement in funds
Incoming
Resources
Resources
expended
Transfers
£
£
£
91,600
(91,600)
-
79,930
(70,701)
-
6,000
(6,438)
438
41,047
(54,380)
13,333
83,676
(79,838)
-
191,027
(150,090)
-
47,864
(50,406)
2,542
12,500
(23,587)
11,087
35,000
(41,161)
157
588,644
(568,201)
27,557		 Balance at 31
March 2021
£
-
12,589
-
-
3,838
40,937
-
-
-
57,364

Transfers from unrestricted funds were made at the year end (2020: £23,587) to cover the deficits caused by loss making contracts.

Prior year

PHB
Professional Advocacy
RBK&C Group Advocacy
Our Choice
Dual Diagnosis
Older Adult Advocacy
User Involvement		 Balance at 1
April 2019
£
-
10,348
-
-
5,672
6,859
22,879		 Movement in funds
Incoming
Resources
Resources
expended
Transfers
£
£
£
69,255
(69,413)
158
79,930
(86,918)
-
47,104
(52,123)
5,019
41,056
(54,822)
13,766
12,500
(21,486)
3,314
191,028
(192,358)
1,330
35,000
(35,855)
-
475,873
(512,975)
23,587		 Balance at 31
March 2020
£
-
3,360
-
-
-
-
6,004
9,364

Page 22

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2021

13. Intangible fixed assets

Cost
At 1 April 2020 and 31 March 2021
Amortisation
At 1 April 2020
Charge for year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
14.
Tangible fixed assets
Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
15.
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
Amounts falling due after more than one year:
Other debtors
Aggregate amounts		 Computer
software
£
22,709
6,813
4,542
11,355
11,354
15,896
Fixtures
and
fittings
£
87,959
9,860
97,819
72,951
10,118
83,069
14,750
15,008
2021
2020
£
£
151,234
192,822
4,313
3,533
43,940
49,537
199,487
245,892
8,382
13,472
207,869
259,364

Page 23

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2021

16. Creditors: amounts falling due within one year

Trade creditors
Social security and other taxes
Other creditors
HMRC Furlough creditor
Accruals and deferred income		 2021
£
23,610
37,375
9,853
37,063
381,877
489,778		 2020
£
617
33,137
9,636
-
194,819
238,209

17. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
18.
Analysis of net assets between funds
Unrestricted
Designated
Restricted
funds
funds
funds
£
£
£
Fixed assets
14,750
11,354
-
Current assets
885,039
-
57,364
Current liabilities
(489,778)
-
-
410,011
11,354
57,364		 2021
£
-
2021
Total
funds
£
26,104
942,403
(489,778)
478,729		 2020
£
33,000
2020
Total
funds
£
30,904
671,003
(238,209)
463,698

19. Movement in funds

Unrestricted funds
Unrestricted fund
Designated fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Net
Transfers
movement
between
At 1/4/20
in funds
funds
At 31/3/21
£
£
£
£
438,438
(871)
(27,556)
410,011
15,896
(4,542)
-
11,354
454,334
(5,413)
(27,556)
421,365
9,364
20,444
27,556
57,364
463,698
15,031
-
478,729

Page 24

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2021

19. Movement in funds - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
Unrestricted fund
Designated fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Incoming
resources
£
1,671,219
-
1,671,219
588,645
2,259,864		 Resources
expended
£
(1,672,090)
(4,542)
(1,676,632)
(568,201)
(2,244,833)		 Movement
in funds
£
(871)
(4,542)
(5,413)
20,444
15,031

Comparatives for movement in funds

Unrestricted funds
Unrestricted fund
Designated fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Net
Transfers
movement
between
At 1/4/19
in funds
funds
At 31/3/20
£
£
£
£
521,878
(59,853)
(23,587)
438,438
15,896
-
-
15,896
537,774
(59,853)
(23,587)
454,334
22,879
(37,102)
23,587
9,364
560,653
(96,955)
-
463,698

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
Unrestricted fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Incoming
resources
£
1,619,078
475,873
2,094,951		 Resources
expended
£
(1,678,931)
(512,975)
(2,191,906)		 Movement
in funds
£
(59,853)
(37,102)
(96,955)

Page 25

Notes to the Financial Statements - continued for the year ended 31 March 2021

THE ADVOCACY PROJECT

19. Movement in funds - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
Unrestricted fund
Designated fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Net
Transfers
movement
between
At 1/4/19
in funds
funds
At 31/3/21
£
£
£
£
521,878
(60,724)
(51,143)
410,011
15,896
(4,542)
-
11,354
537,774
(65,266)
(51,143)
421,365
22,879
(16,658)
51,143
57,364
560,653
(81,924)
-
478,729

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
Unrestricted fund
Designated fund
Restricted funds
Restricted fund
TOTAL FUNDS		 Incoming
resources
£
3,290,297
-
3,290,297
1,064,518
4,354,815		 Resources
expended
£
(3,351,021)
(4,542)
(3,355,563)
(1,081,176)
(4,436,739)		 Movement
in funds
£
(60,724)
(4,542)
(65,266)
(16,658)
(81,924)

20. Employee benefit obligations

The charity operates a defined contribution pension scheme for all qualifying employees. The charge to income and expenditure account in respect of defined contribution schemes was £77,869 (2020: £68,345).

21. Related party disclosures

There were no related party transactions for the year ended 31 March 2021.

22. Designated fund

There are funds of £11,354 that have been designated by the Trustees for the purpose of specific purposes included within general funds.

Page 26

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2021

23. Company limited by guarantee

The company is a private company limited by guarantee and accordingly does not have share capital. The members of the Company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited up to £1 per member of the company. The Company was incorporated in England and Wales and information relating to the registered office can be found on page 1.

Page 27