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2022-03-31-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 2022

THE ADVOCACY PROJECT

Contents of the Financial Statements for the year ended 31 March 2022

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 10
Report of the Independent Auditors 11 to 13
Statement of Financial Activities 14
Statement of Financial Position 15
Statement of Cash Flows 16
Notes to the Statement of Cash Flows 17
Notes to the Financial Statements 18 to 27

THE ADVOCACY PROJECT

Reference and Administrative Details for the year ended 31 March 2022

Trustees A Antonio
C Starza-Allen (resigned 31/12/2021)
M Hagan
D Olajide
J S Mckinlay (resigned 31/12/2021)
J Davey
J R Ellis
R Skipp
G Bull
L C Baliga (appointed 20/5/2021)
H Richardson (appointed 20/5/2021)
Company secretaries J Davey
M F Pace
Registered office c/o SEIDs Hub
Empire Way
Wembley
London
HA9 0RJ
Registered company number 04018315 (England and Wales)
Registered charity number 1084106
Independent auditors Haines Watts
Chartered Accountants and Statutory Auditor
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 2022

The trustees present their report and accounts for the year ended 31 March 2022.

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 supports people to speak up and to make their own choices about their lives. Our vision is a world in which every person has a voice - including those who are marginalised or vulnerable because of their circumstances. We place a relentless focus on enabling people to have their voice heard, uphold their rights, and make informed choices. We support people to have their say and help improve important services we all need, including health and social care services. 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, personal health budgets and Healthwatch services. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should carry out.

How we work

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

Many staff who work for The Advocacy Project have lived experience of the issues we work on (whether learning disability, mental health or other disabilities). Two of our trustees are service users. Having the voices of lived experience at all levels of the organisation informs our approach to everything we do.

We are also a highly diverse organisation. This inclusivity and diversity helps us develop understanding and trust with service users. Understanding and trust means 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 2022

Objectives and activities

Achievements and performance

Like all organisations across health and social care, we've had to navigate numerous pandemic-related challenges over the past year. During early 2021/22 the country was coming out of lockdown restrictions; we had a phased return to face-to-face working with thorough risk assessments to make sure staff and people we work with were as safe as possible. Throughout the pandemic we adapted our services to respond to people's needs at that time - including through additional welfare checks from our user involvement teams and the 'stay connected' personal health budget service which meant people could more easily get support for their mental health.

In Q2 the government's proposals for mandatory vaccinations came into view, which would firstly affect our staff working within CQC registered care homes and later included the proposal for staff working within NHS settings. We kept staff fully informed and took a measured approach to exploring alternative options for those staff who didn't want to be vaccinated. Through our careful management of this process we did not lose a single member of staff due to the vaccine requirements. Although the legislation was later revoked, it did affect our ability to recruit new advocates during this period and added to Covid-related workload pressures for both advocates and managers.

Advocacy referrals dipped considerably across the country through the pandemic. Our referrals are now returning towards previous levels, and we're continuing to work closely with commissioners to make sure all care groups and communities are being properly referred to advocacy services.

Staffing levels have been challenging. Unsurprisingly, we've experienced increased levels of sickness absence over the past year (both short and long term). In common with organisations across the country, the job market for health and social care was at times completely flat and it was difficult to recruit staff. We addressed any staffing gaps through prioritisation, internal re-deployment, flexible staffing models and secondments.

We're continuing to see the impact of the pandemic on our service users. In recent months our advocates have reported that staffing gaps in other health and social care organisations are having a significant impact on the people we work with. People are not getting the services they need - and advocates are spending more time trying to follow up cases with external professionals. This has meant advocates are encountering blocks to their work; it's taking longer to close cases; and service users' frustration has at times impacted directly on our staff.

Even with the significant challenges above, we've come through the pandemic period a stronger and more resilient organisation. We've learnt from adjusting our working methods, brought new ways of doing things into our working practice, and delivered our projects and services in more creative and flexible ways.

Page 3

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2022

Objectives and activities

Focus on quality

This year has seen a focus on striving for continuous quality improvement across the organisation. We aim for high quality services which can be evidenced and lead to improved outcomes for the people who use our services.

In the earlier part of the year, we reviewed many of our organisational policies including those for safeguarding, confidentiality, equality and diversity, lone working and whistleblowing. We updated advocacy-specific policies on prioritisation, non-instructed advocacy, and engagement protocols. In this period we delivered training in safeguarding and data-protection for the whole organisation, as well as further developing advocates' skills in non-instructed advocacy.

In September 2021 we passed the Quality Performance Mark (QPM) with flying colours. The QPM accreditation is run by the National Development Team for Inclusion (NDTi) (funded by The Department of Health) as a means of assessing advocacy services against a rigorous set of quality standards. In addition to the "deep dive" review of our governance, policies and procedures, there was an intensive three-day on-site assessment including interviews with staff, service users, commissioners and other external stakeholders. We were delighted the quality of our work, our strong governance and our diversity were recognised. We were particularly pleased the assessor recommended many of our policies as exemplars that other organisations could adopt. Our safeguarding policy and practice was particularly commended.

Following on from QPM, our plan for continuous improvement was to focus on excellent quality advocacy practice. To maintain quality service within the constraints of the external environment, we put an emphasis on our prioritisation policy and new methods of tracking casework. We set individual recording targets for each advocate which take into account a range of factors including contracted hours, type of advocacy delivered and any considerations that need to be given for extra time allowances specifically for staff who have disabilities. Commissioners are starting to note the improvements in reporting that the Head of Service Delivery has brought about. For example, Westminster City Council and Royal Borough of Kensington & Chelsea have said our reporting is now "exemplary".

We delivered a series of further safeguarding training sessions for the advocacy teams, and in Q2 we noted an increase in the number of safeguarding concerns raised as a result. Staff across the organisation were now better equipped to identify potential concerns and were clear about our alerting responsibilities. Staff indicated there are sometimes delays in the concerns being accepted by local authorities, which we are continuing to address through our escalation protocol. Our next step is to integrate the safeguarding section of our case management system. This will mean we can use the data to challenge unreasonable delays by safeguarding teams and make sure those in greatest need receive help and support when they need it most.

In Q4 we designed service development planning sessions for all our advocacy, user involvement, personal health budget and Healthwatch services. We planned these to give each team opportunity to focus in on what's needed for their specific service - and opportunity to share best practice across services. For the advocacy teams we designed the sessions to examine strengths, challenges, opportunities, and threats against each advocacy charter domain.

Other activities planned in Q4 for delivery in the new financial year include upgrades to our case management system to help us capture more detailed information and making it more efficient for staff to use. In Q4 we also prepared for the upcoming introduction of Liberty Protection Safeguards (LPS) by planning training for our advocates who work under the Mental Capacity Act.

Staffing and organisational culture

Right across the organisation, our strong focus on staff development has resulted in a number of internal promotions this financial year. This has included senior appointments being filled internally, which has strengthened our management capacity. Seven other members of staff have taken up promotions or secondments - evidencing our commitment to staff professional development. In addition, we've also had a number of staff who had previously worked for The Advocacy Project apply to re-join the organisation - testimony to our positive working environment.

We've mentioned above that Covid has had an impact on recruitment right across the sector. Despite experiencing this ourselves earlier in the financial year, we adapted our recruitment approach with very positive results, and brought in a number of skilled and experienced staff. We were particularly pleased with our recruitment drives in our forensic services which are known in the sector to be more difficult to recruit to.

Page 4

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2022

Objectives and activities

Other organisational news

On 1 April 2021 we began delivering the Healthwatch Brent service, which has gone from strength to strength over the financial year. We've developed strong connections with local communities - particularly those who are seldom heard - and partnered with various agencies in the borough to make sure residents can speak up and help improve local health and social care services. Successes include our Patient Voice and GP Access surveys, and leading on the consultation to refresh the Health & Wellbeing Strategy to make sure it meets the needs of residents and patients. As a result of the GP Access surveys, we submitted recommendations to Brent Primary Care commissioning team and 11 GP practices across the borough to help to improve access to GP appointments for Brent residents. As well as delivering a full Healthwatch service, our track record has meant we've also been commissioned to do specific additional work.

User involvement successes over the year included working with the Biborough on a housing consultation for people with learning disabilities and their carers as part of the pre-tender exercise for supported housing. The report we co-produced together with people with learning disabilities has been positively received by the Bi-borough. In Q4, the user involvement team carried out a detailed survey in Camden to research equality and diversity in people's experiences of mental health services. In November we were delighted to re-start the contract for Synergy: the experts by experience service for people with learning disabilities in Camden, having previously held this contract for several years. We welcomed the project manager and six people with learning disabilities into our staff team. Synergy's recent projects have included working with Mental Health Voice (MHV) and the National Pledge to Reduce Ethnic Inequalities in Mental Health Systems. Two service users were filmed for a Synergy webinar on their experiences of accessing local mental health services and the support they received from MHV.

Our Personal Health Budgets (PHB) service has grown considerably throughout the year. We were commissioned to work on the new digital platform Patient Knows Best (PKB) and have rolled this out with commissioners and key stakeholders. We secured a new PHB contract for children & young people in Tower Hamlets, an exciting development with an expansion into a new borough and a new client group. We're also working with the North East London Clinical Commissioning Group to offer PHBs for mental health recovery to people in Tower Hamlets and Newham based on the City & Hackney model. This includes access to the 'stay connected' PHB.

Our year-long community radio station project - Speak Up Radio - launched in June 2021 and provided a valuable and easy-to-understand information about access to services, health and wellbeing, and information about access to advocacy and eligibility criteria sprinkled amongst music, interviews with service users and talks.

In Q4 we began mobilisation for Brent ASD care navigation (autism spectrum disorder)- this service will provide support to adults who are waiting for an ASD assessment or have been recently diagnosed as being autistic, in accessing health and social care. As well as providing views and experiences to strategic boards and decision makers on health issues and access to support and services.

Page 5

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2022

Objectives and activities

Looking forward

As we do each year, we've reviewed our strategic plan. This year, as we emerge from the Covid pandemic into a somewhat changed world, we've focused in on what will make most difference for the people we work with given the external environment we face together. We're well aware of the pressures faced by all organisations in the health and social care sector, and the knock-on effect this is having on the people we support. We've prioritised focusing in on delivery a quality service and maintaining our financial sustainability so we can continue to offer a bedrock of support - and change lives for the better - in these challenging times.

Our strategic priorities this year are as follows.

Prioritising those in greatest need

Making sure the voices of people in greatest need are at the heart of all we do

'Getting the basics right'; fine-tuning our operating model to support our ultimate aims

'Getting the basics right' includes a particular focus on supporting our staff team. Covid has taken its toll on workplaces across the sector and country, and The Advocacy Project is no exception. Having prioritised staff safety and mental health at an individual level throughout the pandemic, particularly through periods of remote-working, our focus now is to strengthen our collective spirit. We'll be carrying out a number of initiatives to build the network of strong team relationships that have underpinned our successes as an organisation to date.

Given the many changes we've faced, and continue to face, in the external environment over the last two years, we'll keep the strategic plan, the income diversification plan, and our financial forecast under close review.

Page 6

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2022

Strategic report

Financial review

It was another challenging and a tough financial year, as the impact of Covid and the steep rise in cost of living contributed to a volatile operating environment. It continues to be difficult to bring in new income sources, especially from trust and foundations and donations, whilst recruiting skilled and experienced staff is expensive.

However, despite these challenges we have come through the difficult year in good financial shape, and this is due to tight financial management and, in large part, due to the hard work of our staff who continue to provide the best service we can to the people we support. We showed a solid financial performance throughout the year and closed the year with a surplus of £84k.

Our turnover for 2021/22 was £2.53m which is increase of £274k from 2020/21 when turnover was £2.26m.

During the year we secured new contracts including:

Expenditure during the year was £2.45m which is an increase of £204k from 2020/21, when expenditure was £2.24m.

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.

We were able to give our staff a small pay increases this year to help with the rising costs. We continue to invest in staff training and development. We are introducing a new pay progression framework which will enable staff to progress up salary band in commensurate with their skills, education, and experience. We are also investing more on technology to deliver services innovatively and offer staff flexible working facilities and environment.

Page 7

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2022

Strategic report Financial review

Fundraising

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 continue to invest in seeking funds from trusts and foundations and also private providers over the year. We have diversified 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, initially in Brent in 2021. Since then, we have secured two more Healthwatch services - one in Westminster and one in Royal Borough of Kensington and Chelsea, starting in April 2022, with combined contract value of £1,499,542 over 5 years.

Despite not having a Head of Business Development since Oct 2021, we made strong progress in FY2021/22, successfully winning number of multi-year contracts totalling around £1.2m over five years of which £320k was received in the 2021/22 financial year and exceeding our target of £300k. Our ratio of bids issued to bids won remains high.

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 8

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2022

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 four board committees - Finance, Risk & Audit; HR, Remuneration & Policy; Business Development and Fundraising; and Advocacy & Change (a new committee set up in 2021 to enable us to have greater impact on systemic change)

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 previous financial 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. All recruitment is carried out using an open selection process and competency-based interviews. We're 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've 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 here: www.advocacyproject.org.uk/who-we-are/trustees

Management

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

We're known in the advocacy sector for the strength of our learning and development programme for staff. We support staff to achieve their national advocacy qualification (NAQ) or other professional qualifications. This year we've given staff time off in lieu to attend our new monthly lecture series, which we're running in collaboration with Councillor Ketan Sheth, where national experts discuss topics of interest in the health and social care field.

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.

Page 9

THE ADVOCACY PROJECT

Report of the Trustees for the year ended 31 March 2022

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"

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 ............................................. and signed on the board's behalf by: 27/09/2022

....................................................................

D Olajide - Trustee

Page 10

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

Opinion

We have audited the financial statements of The Advocacy Project (the 'charitable company') for the year ended 31 March 2022 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'.

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.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

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

Matters on which 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 misstatements 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 our opinion:

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

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.

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

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.

Haines Watts

Haines Watts (Sep 27, 2022 18:51 GMT+1)

Jane Wills (Senior Statutory Auditor) for and on behalf of Haines Watts Chartered Accountants and Statutory Auditor New Derwent House 69-73 Theobalds Road London WC1X 8TA 27/09/2022 Date: .............................................

Page 13

THE ADVOCACY PROJECT

Statement of Financial Activities (Incorporating an Income and Expenditure Account) for the year ended 31 March 2022

Unrestricted
Designated
funds
funds
Notes
£
£
Income and endowments from
Donations and legacies
2
-
-
Other trading activities
3
1,927,138
-
Investment income
4
191
-
Other income
69,520
-
Total
1,996,849
-
Expenditure on
Raising funds
5
93
-
Charitable activities
6
Support costs
333,668
-
Governance costs
14,703
-
Staff costs
1,522,146
-
Direct expenditure
54,022
-
Depreciation
6,481
4,542
Total
1,931,113
4,542
NET INCOME/(EXPENDITURE)
65,736
(4,542)
Reconciliation of funds
Total funds brought forward
410,011
11,354
Total funds carried forward
475,747
6,812		 Restricted
funds
£
-
536,525
51
-
536,576
-
254,999
3,944
236,853
14,741
3,006
513,543
23,033
57,364
80,397		 2022
Total
funds
£
-
2,463,663
242
69,520
2,533,425
93
588,667
18,647
1,758,999
68,763
14,029
2,449,198
84,227
478,729
562,956		 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
463,698
478,729

Continuing operations

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 14

THE ADVOCACY PROJECT

Statement of Financial Position 31 March 2022

Notes
Fixed assets
Intangible assets
14
Tangible assets
15
Current assets
Debtors: amounts falling due within one year
16
Debtors: amounts falling due after more than
one year
16
Cash at bank and in hand
Creditors
Amounts falling due within one year
17
Net current assets
Total assets less current liabilities
NET ASSETS
Funds
19
Unrestricted funds:
Unrestricted fund
Designated fund
Restricted funds:
Restricted fund
Total funds		 2022
£
6,813
8,768
15,581
198,556
367
737,003
935,926
(388,551)
547,375
562,956
562,956
475,748
6,813
482,561
80,395
562,956		 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

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 27/09/2022

............................................. D Olajide - Trustee

The notes form part of these financial statements

Page 15

THE ADVOCACY PROJECT

Statement of Cash Flows for the year ended 31 March 2022

2022 2021
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 5,732 332,649
Net cash provided by operating activities 5,732 332,649
Cash flows from investing activities
Purchase of tangible fixed assets (3,505) (9,860)
Interest received 242 106
Net cash used in investing activities (3,263) (9,754)
Change in cash and cash equivalents in
the reporting period 2,469 322,895
Cash and cash equivalents at the
beginning of the reporting period 734,534 411,639
Cash and cash equivalents at the end of
the reporting period 737,003 734,534

The notes form part of these financial statements

Page 16

THE ADVOCACY PROJECT

Notes to the Statement of Cash Flows for the year ended 31 March 2022

1. Reconciliation of net income to net cash flow from operating activities

1. Reconciliation of net income to net cash flow from operating activities
2022 2021
£ £
Net income for the reporting period (as per the Statement of
Financial Activities) 84,227 15,031
Adjustments for:
Depreciation charges 14,028 14,660
Interest received (242) (106)
Decrease in debtors 8,945 51,495
(Decrease)/increase in creditors (101,226) 251,569
Net cash provided by operations 5,732 332,649
2. Analysis of changes in net funds
At 1/4/21 Cash flow At 31/3/22
£ £ £
Net cash
Cash at bank and in hand 734,534 2,469 737,003
734,534 2,469 737,003
Total 734,534 2,469 737,003

The notes form part of these financial statements

Page 17

THE ADVOCACY PROJECT

Notes to the Financial Statements for the year ended 31 March 2022

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.

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

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.

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.

Page 18

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2022

1. Accounting policies - continued

Financial instruments

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
5.
Raising funds
Raising donations and legacies
Postage and stationery		 2022
£
-
2022
£
2,463,663
2022
£
242
2022
£
93		 2021
£
800
2021
£
2,255,622		 2021
£
800
2021
£
106
2021
£
-

Page 19

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2022

6. Charitable activities costs

Support costs
Governance costs
Staff costs
Direct expenditure
Depreciation
7.
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 7)
£
£
(16,105)
604,772
27
18,620
1,758,999
-
68,763
-
14,029
-
1,825,713
623,392
Governance
Other
costs
£
£
604,772
-
-
18,620
604,772
18,620
2022
Support
costs
£
65,329
126,143
413,300
604,772
2022
Governance
costs
£
10,500
1,651
6,443
26
18,620		 Totals
£
588,667
18,647
1,758,999
68,763
14,029		 Totals
£
588,667
18,647
1,758,999
68,763
14,029		 Totals
£
588,667
18,647
1,758,999
68,763
14,029
2,449,105
Totals
£
604,772
18,620
623,392
2021
Total
activities
£
107,510
135,354
343,432
586,296
2021
Total
activities
£
6,110
1,509
979
66
8,664		 Totals
£
604,772
18,620
623,392
8,664

Page 20

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2022

8. Net income/(expenditure)

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

9.

Depreciation - owned assets
Computer software amortisation
Auditors' remuneration
Fees payable to the charity's auditors and their associates for the audit of the
charity's financial statements		 2022
£
9,488
4,541
2022
£
10,500		 2021
£
10,118
4,542
2021
£
6,110

10. Trustees' remuneration and benefits

The trustees were not paid or received any other benefits from employment (2021: 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 £1,650 (2021: £733). This is in accordance with the charity's governing document.

No trustee received payment for professional or other services supplied to the charity (2021: Nil) except for J Davey, who was paid remuneration of £66,687 (2021: £66,300) in her capacity as the CEO. The charity also paid £4,001 (2021: £3,978) 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, Head of Services and Head of Comms. The total employee benefits of key management personnel of the charity were £267,862 (2021: 258,399).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

11. Staff costs

2021 2020
£ £
Wages and salaries 1,131,102 1,109,740
Social security costs 130,325 90,897
Pension costs 77,658 53,139
1,339,085 1,253,776

The average monthly number of employees during the year was as follows:

Employed staff
Sessional		 2022
60
7
67		 2021
54
5
59

Page 21

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2022

11. Staff costs - continued

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

£60,001 - £70,000
12.
Comparatives for the statement of financial activities
Unrestricted
Designated
funds
funds
£
£
Income and endowments from
Donations and legacies
595
-
Other trading activities
1,667,209
-
Investment income
79
-
Other income
3,336
-
Total
1,671,219
-
Expenditure on
Charitable activities
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
(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		 2022
1
Restricted
funds
£
205
588,413
27
-
588,645
207,689
2,221
255,614
102,677
-
568,201
20,444
27,556
48,000
9,364
57,364		 2021
1
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

13. 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:

Movement in funds Movement in funds Movement in funds
Balance at 1 Incoming Resources Balance at 31
April 2021 Resources expended Transfers March 2022
£ £ £ £ £
PHB - 90,000 (90,000) - -
Professional Advocacy 12,589 79,930 (78,137) - 14,382
Kew Advocacy Training - 6,000 6,068 68 -
Our Choice - 41,056 (40,411) - 645

Page 22

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2022

13. Restricted income - continued

Lottery Community Fund 3,838 - (3,838) - -
Older Adult Advocacy 40,937 191,027 (171,581) - 60,383
RBKC Group Advocacy - 47,104 (47,177) 73 -
Dual Diagnosis - 12,500 (20,165) 7,665 -
Community Speak Up
Radio		 - 28,458 (23,471) - 4,987
User Involvement - 40,500 (40,773) 273 -
57,364 536,575 (540,779) 8,078 80,397

Transfers from unrestricted funds were made at the year end (2021: £8,078) to cover the deficits caused by loss making contracts.

Prior year

Movement in funds Movement in funds Movement in funds
Balance at 1
April 2020		 Incoming
Resources		 Resources
expended		 Transfers Balance at 31
March 2021
£ £ £ £ £
PHB - 90,000 (91,600) - -
Professional Advocacy 3,360 79,930 (70,701) - 12,589
Knew Advocacy Training - 6,000 (6,438) 438 -
Speak Up Speak Out - 12,500 (23,587) 11,087 -
Our Choice - 41,047 (54,380) 13,333 -
Lottery Community Fund - 83,676 (79,838) - 3,838
Dual Diagnosis - - - - -
Older Adult Advocacy - 191,027 (150,090) - 40,937
Big Voice - 47,864 (50,406) 2,542
User Involvement 6,004 35,000 (41,161) 157
9,364 588,644 (568,201) 27,557 57,364

14. Intangible fixed assets

Intangible fixed assets
Computer
software
£
Cost
At 1 April 2021 and 31 March 2022 22,709
Amortisation
At 1 April 2021 11,355
Charge for year 4,541
At 31 March 2022 15,896
Net book value
At 31 March 2022 6,813
At 31 March 2021 11,354

Page 23

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2022

15. Tangible fixed assets

Cost
At 1 April 2021
Additions
At 31 March 2022
Depreciation
At 1 April 2021
Charge for year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
16.
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
17.
Creditors: amounts falling due within one year
Trade creditors
Social security and other taxes
Other creditors
HMRC Furlough creditor
Accruals and deferred income		 2022
£
144,303
5,653
48,600
198,556
367
198,923
2022
£
2,714
38,016
10,272
-
337,549
388,551		 Fixtures
and
fittings
£
97,820
3,505
101,325
83,069
9,488
92,557
8,768
14,751
2021
£
151,234
4,313
43,940
199,487
8,382
207,869
2021
£
23,610
37,375
9,853
37,063
381,877
489,778

Page 24

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2022

18. Analysis of net assets between funds

18. Analysis of net assets between funds
2022 2021
Unrestricted Designated Restricted Total Total
funds funds funds funds funds
£ £ £ £ £
Fixed assets 8,768 6,813 - 15,581 26,104
Current assets 855,531 - 80,395 935,926 942,403
Current liabilities (388,551) - - (388,551) (489,778)
475,748 6,813 80,395 562,956 478,729
19. Movement in funds
Net
movement
At 1/4/21 in funds At 31/3/22
£ £ £
Unrestricted funds
Unrestricted fund 410,011 65,737 475,748
Designated fund 11,354 (4,541) 6,813
421,365 61,196 482,561
Restricted funds
Restricted fund 57,364 23,031 80,395
TOTAL FUNDS 478,729 84,227 562,956
Net movement in funds, included in the above are as follows:
Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
Unrestricted fund 1,996,849 (1,931,112) 65,737
Designated fund - (4,541) (4,541)
1,996,849 (1,935,653) 61,196
Restricted funds
Restricted fund 536,576 (513,545) 23,031
TOTAL FUNDS 2,533,425 (2,449,198) 84,227

Page 25

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2022

19. Movement in funds - continued

Comparatives for movement in funds

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

Comparative 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

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

Net Transfers
movement between
At 1/4/20 in funds funds At 31/3/22
£ £ £ £
Unrestricted funds
Unrestricted fund 438,438 64,866 (27,556) 475,748
Designated fund 15,896 (9,083) - 6,813
454,334 55,783 (27,556) 482,561
Restricted funds
Restricted fund 9,364 43,475 27,556 80,395
TOTAL FUNDS 463,698 99,258 - 562,956

Page 26

THE ADVOCACY PROJECT

Notes to the Financial Statements - continued for the year ended 31 March 2022

19. Movement in funds - continued

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
£
3,668,068
-
3,668,068
1,125,221
4,793,289		 Resources
expended
£
(3,603,202)
(9,083)
(3,612,285)
(1,081,746)
(4,694,031)		 Movement
in funds
£
64,866
(9,083)
55,783
43,475
99,258

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 £81,116 (2021: £77,869).

21. Related party disclosures

There were no related party transactions for the year ended 31 March 2022.

22. Designated fund

There are funds of £6,813 that have been designated by the Trustees for the purpose of specific purposes included within general funds.

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

Haines Watts

Chartered Accountants And Statutory Auditors New Derwent House 69-73 Theobalds Rd London WC1X 8TA

Dear Sirs

THE ADVOCACY PROJECT YEAR ENDED 31 MARCH 2022

The following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience such as we consider necessary in connection with your audit of the charity’s financial statements for the year ended 31 March 2022. These enquiries have included inspection of supporting documentation where appropriate and are sufficient to satisfy ourselves that we can make each of the following representations. All representations are made to the best of our knowledge and belief.

General

Internal control and fraud

Assets and liabilities

Accounting estimates

Loans and arrangements

Legal claims

Laws and regulations

Related parties

Subsequent events

Going concern

Grants and donations

We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware.

Each trustee has taken all the steps that he ought to have taken as a trustee in order to make themself aware of any relevant audit information and to establish that you are aware of that information.

Yours faithfully

..............................................................................................................................

DELE OLAJIDE

Signed on behalf of the board of trustees

Date: 27/09/2022

Charity No 1084106 Company No 04018315

The Advocacy Project financial accounts for 31 March 2022

Final Audit Report

2022-09-27

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