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2022-03-31-accounts

Registered number: 03920466 Charity number: 1088406

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

UNAUDITED

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2 - 8
Independent examiner's report 9 - 10
Statement of financial activities 11
Balance sheet 12 - 13
Notes to the financial statements 14 - 31

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees

Mr C Allgrove, Chair Mr E G Corrie, Treasurer Mr P A Blacklock Mr E A Martlew Mr H Wilkinson (resigned 31 October 2021) Mrs N G Wilkinson (resigned 31 October 2021) Mr R K Bingham Mr W T Turner Mrs K Goucher (appointed 31 October 2021)

Company registered number

03920466

Charity registered number

1088406

Registered office

5 Castle Street, Kendal, Cumbria, LA9 7AD

Accountants

Armstrong Watson Audit Limited, Fairview House, Victoria Place, Carlisle, Cumbria, CA1 1HP

Bankers

Barclays Bank Plc, 33 English Street, Carlisle, Cumbria, CA3 8JX

Solicitors

Burnetts Solicitors, Victoria House, Wavell Drive, Rosehill, Carlisle, Cumbria, CA1 2ST

Page 1

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their annual report together with the financial statements of the charity for the year 1 April 2021 to 31 March 2022. The Annual report serves the purposes of both a Trustees' report and a Directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the charity qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

Cumbria Deaf Association is the major specialist deaf charity operating throughout Cumbria for all county residents experiencing any degree of hearing or dual sensory loss. This includes Deaf, deafened, hard of hearing and DeafBlind people.

The Charity’s objectives include:

“The educational, physical, social and spiritual wellbeing of Deaf, deafened, hard of hearing and DeafBlind people of all ages and their families mainly but not exclusively in Cumbria”

To do this, we seek to involve people who are deaf, raising awareness of their rights and responsibilities and ensuring access to services by:

Key Activities

Cumbria Deaf Association’s services and projects are provided to benefit Deaf, deafened, hard of hearing and DeafBlind people of all ages as well as their families and carers, work colleagues, service providers, friends, acquaintances and local communities through a number of ways as below:

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'. The Trustees confirm that they adhere to that guidance through the operations and activities of the charity.

Page 2

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance

a. Main achievements of the Charity

In a second difficult year for the world, CDA continued to support service users under the seemingly everchanging restrictions imposed by the Government in mitigation for COVID-19. Staff members once again continued to provide a mix of face-to-face and online services, depending on restrictions and individual needs.

The Board continued to meet regularly throughout the year to ensure that they were appraised of the situation as it changed over the course of the year to ensure that the charity operated within its means. The General Manager continued to raise the profile of the charity within Cumbria and more widely by use of social media and other channels, supported by administrative assistants. Additionally, we provided a placement for a student from Heriott Watt University to assist with their studies and further raise the profile of CDA within the community through engagement events. A second student joined towards the end of the financial year and continues to keep in touch.

Once again, the Trustees would like to acknowledge the efforts of staff in keeping services running throughout ever-changing rules and regulations.

Buildings

We continue to own and operate centres in Kendal and Barrow. Barrow opened when regulations permitted, with Kendal continuing as the administrative hub, and additionally open for group activities.

The previous applications to re-classify both buildings as community centres is ongoing, with a backlog at the Valuations Office cited as the reason for delay. Efforts will continue in this respect to ensure that community funding could be available should the need arise.

In 2023 we will have both the Kendal and Barrow centre surveyed and valued to ensure appropriate figures are reflected in the financial statements, especially in light of the recent property market changes.

Domiciliary Care and Care Packages

Whilst not providing any personal care to service users, we continue to provide Community Support Workers for clients, most of whom are BSL users, who largely require assistance with day to day chores, meals, going out in the community, optician appointments etc.

Children, Young People and Families

CDA has continued to seek additional funding from the Council and other bodies to ensure that the deaf young people in the community can continue to benefit from the very important work we are able to continue to provide.

Communication Support Unit (CSU)

CDA’s Communication Support Unit continued to provide the vital and highly valued communication support service to Deaf people, delivering over 1,000 hours of support and almost 700 assignments throughout the year including in health and education sectors.

Sign Language tuition and Deaf Awareness training

Having been paused for obvious reasons through the pandemic restrictions, we restarted face-to-face provision of deaf awareness training with a number of companies coming forward to request sessions. These were well received and continued to impress upon recipients the benefits of good communication.

Page 3

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance (continued)

Strategic Engagement

The General Manager, as part of raising awareness of CDA, continued to engage with a number of other agencies, charities and local government departments to ensure the voice of the d/Deaf community is acknowledged, understood and acted on. CDA also endeavoured to assist, wherever possible, in ensuring that needs were met by health care providers, services, utilities and local government. Two weeks of community engagement through a “pop-up shop” allowed us to advertise our services and benefits to service users, local businesses, and the wider population of Carlisle. The events were covered by local media, giving further exposure.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

The financial bedrock of the charity is far more stable than a year ago, with reserves on the increase again. Work by the General Manager in promoting the charity and bringing in funds from a number of sources, and other staff delivering more services have meant increased income, which is projected to continue rising.

The d/Deaf and hard of hearing community of Cumbria is well aware of the service that are offered by CDA – and the CSU continues to provide translation services to support health, education and other requests which have grown over the course of the year restrictions have further eased.

Office space on the ground floor of the Kendal building continues to be rented to a local company on an ongoing basis which is further helping with costs.

Since the end of the financial year, the charity has received the balance of a bequest which has further stabilised the financial position.

Impact of COVID-19

As 2021 progressed, previous provision of online services gradually returned to “face to face”, allowing additional work to be done and the improved relationships with the deaf community garnered over the pandemic is again allowing us to offer emotional and practical support.

b. Reserves policy

The Trustees have adopted a Reserve Policy, which is that:

"Cumbria Deaf Association has a reserve fund that can, if desired, be used to make redundancy payments in circumstances where they are necessary and assist in enabling services to be carried out for three months when funding applications for these services have been unsuccessful. This reserve fund should be the equivalent of 15% of the total budgeted expenditure of the current financial year. The Trustees and Finance Sub Committee will monitor and review the position at its meetings."

c. Results for the year

The results for the year show a deficit of (£67,934) before an actuarial gain of £40,000. This deficit is as a result of the timing of legacy monies of £60,000 recognised as a debtor in the previous year, but being received and expended in the current year. At the year end date the charity had funds totalling £282,771, with £4,995 being restricted funds and the remainder £277,776 being unrestricted in nature.

Page 4

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

d. Defined Benefit Pension Scheme

The defined benefit pension scheme showed a surplus at the year end but due to current economic conditions, the charity will see any tangible benefit, but a recalculation in this period means that the risk is somewhat mitigated. There remains one staff member in the scheme to prevent it crystallising with other staff members remaining in the alternative stakeholder pension.

Structure, governance and management

a. Constitution

Cumbria Deaf Association is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association dated 7 February 2000, as amended by special resolutions dated 21 May 2001, 13 October 2007 and 19 October 2013, with a company registration number of 03920466. The company was registered with the Charity Commission on 12 September 2001 with a registration number of 1088406.

b. Methods of appointment or election of Trustees

The Association is run by a Committee of Members. The Committee of Members consists of the officers of the charity (Chair, Vice Chair, Treasurer and Secretary) and at least six other persons up to a maximum of twelve persons. The Committee can appoint anyone to fill a vacancy in the membership of the Committee or can co opt additional Members of the Committee; however, no more than four extra Members can be co opted.

In accordance with the Memorandum and Articles of Association all Members of the Committee must retire at the Annual General Meeting but are eligible for re election.

c. Organisational structure and decision-making policies

The Board of Trustees

The Board of Trustees meets at least quarterly and is responsible for how Cumbria Deaf Association is run. The staff and volunteers are accountable to the Board through the General Manager.

Information and training are provided to ensure that the Trustees are well briefed with the work being undertaken by the organisation and how it is developing.

The Board is advised by Finance and Personnel sub committees. They normally meet quarterly; the former considers in detail the financial health of the Association and advises members on budgetary matters, the Personnel subcommittee considers a wide range of policy and personnel issues and again advises the Board.

In the year to 31 March 2022 the structure was as follows: Personnel Sub Committee: Trustees: Charlie Allgrove Eric Martlew Staff: Caroline Howsley

Finance Sub Committee: Trustees: Roger Bingham Eric Corrie Staff: Caroline Howsley

Management Structure

Caroline Howsley as General Manager oversees the day-to-day operations of CDA including; personnel, finance, health and safety, marketing, overseen by the Board of Trustees

Page 5

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Structure, governance and management (continued)

d. Indemnity insurance

The Association has taken out Professional Indemnity Insurance with Victor Insurance. The policy provides indemnity for claims, including claimants’ costs and expenses, made against Cumbria Deaf Association in respect of any civil liability, negligent act, error or omission incurred in the course of our professional business. The limit of indemnity is £2,000,000.

e. Patrons

We are very grateful indeed to the following Patrons for taking an interest in the work of the Association and supporting us in many ways:

Hal Bagot DL Susie Bagot MBE DL Sir Chris Bonington CVO CBE DL Gavin Borland Lord Bragg of Wigton Russell Brown Lord Campbell Savours of Allerdale Tom Campbell Mrs Olive Clark OBE JP DL The Rt Reverend Graham Dow Rt. Hon. Lord Cunningham of Felling PC DL PhD Sir Tony Cunningham John Dunning CBE JP DL Tim Farron MP Patrick Gordon Duff Pennington OBE DL Rt Hon Lord Hutton of Furness Lord Inglewood, DL Eric Martlew Elaine Murray Ken Pallister Jamie R. Reed John Wills OBE FCA DL

f. Risk Management

CDA has continued to engage with cross sector partners to optimise the potential for service development and related income generation. Dialogues were continued with the County Council, Health Trusts and Department for Works and Pensions, amongst others, to develop a more strategic, cohesive and financially attractive process to maintain and progress the development of community activities and services for Cumbrian residents with any degree of hearing or dual sensory loss.

The Board continued with a program of regular meetings to ensure that the financial position has been closely monitor financial performance.

Page 6

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods

Continued use of social media allows us to keep in touch with the deaf community, raise our profile and promote our services. Increasing networking activity and engagement from other organisations and professionals has resulted in positive partnership activity since this financial reporting period.

Additional community engagement staff will be recruited to allow the General Manager to concentrate on the running of the business. This will further engage the community, providing additional events and interaction and will be funded by grants from a number of sources.

The staff, volunteers and Trustees shared ideas for the future of CDA and an activity wish list, from which 10 objectives were defined for our post-covid emergence into face-to-face activity. Having clearly defined objectives enabled us to utilise existing resources, identify gaps and it meant that it was easier for people to offer help because they knew what we needed. This model will be used each year to ensure CDA as an organisation and the community we support, have shared input and clarity of vision. It also enables us to have defined outcome measurements in the future to provide to grant funders.

The charity continues to look to secure funding to enhance d/Deaf community support and address the apparent growing marginalisation and increased sense of social isolation and exclusion expressed by many deaf community members, exacerbated by the lack of access to mainstream services and support.

Acknowledgements

Cumbria Deaf Association is supported by a significant number of funders and individuals, without which we could not operate effectively. We are also indebted to the people who have generously remembered us in their wills. Our gratitude is extended to all the agencies, organisations and individuals from which we received funding during the year to 31 March 2022.

Page 7

CUMBRIA DEAF ASSOCIATION (A company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on their behalf by:

................................................ Mr C Allgrove Chairman Date:

Page 8

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 MARCH 2022

Independent examiner's report to the Trustees of Cumbria Deaf Association ('the Charity')

I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 March 2022.

Responsibilities and basis of report

As the Trustees of the Charity (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters, other than those fully detailed below, have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].

I confirm that there are no other matters to which your attention should be drawn to enable a proper understanding of the accounts to be reached.

Page 9

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Matter of concern - Going concern

As disclosed in note 2.2 to the accounts and in the Trustees’ Report on page 4 of the accounts, the Trustees have assessed the going concern of the charity. The charity is developing its services once more after scaling back in recent years due to the loss of a significant contract. The charity is also undertaking a cost reduction exercise to gain a sound cost base moving forward in the future. However until the receipt of further revenue on a consistent basis is coming into the charity to match the planned cost base, a material uncertainty continues to exists that may cast doubt on the charity’s ability to continue as a going concern.

This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.

Signed:

Dated:

Karen Rae FCCA

ARMSTRONG WATSON AUDIT LIMITED Chartered Accountants, Carlisle

Page 10

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Total expenditure
Net movement in funds before other
recognised gains
Other recognised gains:
Actuarial gains on defined benefit
pension schemes
20
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Restricted
funds
2022
£
-
-
-
-
-
-
-
-
-
-
-
4,995
-
4,995		 Unrestricted
funds
2022
£
21,983
68,369
4
5,935
96,291
11,125
153,100
164,225
(67,934)
40,000
(27,934)
305,710
(27,934)
277,776		 Total
funds
2022
£
21,983
68,369
4
5,935
96,291
11,125
153,100
164,225
(67,934)
40,000
(27,934)
310,705
(27,934)
282,771		 Total
funds
2021
£
149,845
190,856
-
10,202
350,903
33,428
211,353
244,781
106,122
161,000
267,122
43,583
267,122
310,705

The Statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 14 to 31 form part of these financial statements.

Page 11

CUMBRIA DEAF ASSOCIATION (A company limited by guarantee) REGISTERED NUMBER: 03920466

BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
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 excluding pension asset /
liability
Defined benefit pension scheme asset /
liability
20
Total net assets
Charity funds
Restricted funds:
Restricted funds
17
Total restricted funds
17
Unrestricted funds
Unrestricted funds excluding pension asset
17
Pension reserve
17
Total unrestricted funds
17
Total funds		 84,597
22,903
107,500
(11,103)
4,995
277,776
-		 2022
£
186,374
186,374
96,397
282,771
282,771
-
282,771
4,995
277,776
282,771		 143,997
22,681
166,678
(17,618)
4,995
344,710
(39,000)		 2021
£
200,645
200,645
149,060
349,705
349,705
(39,000)
310,705
4,995
305,710
310,705

Page 12

CUMBRIA DEAF ASSOCIATION (A company limited by guarantee) REGISTERED NUMBER: 03920466

BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2022

The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.

The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

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

Mr C Allgrove Chairman Date:

The notes on pages 14 to 31 form part of these financial statements.

Page 13

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. General information

The charity is a company limited by guarantee incorporated in England and Wales and a registered charity with charity number 1088406. The registered office address is 5 Castle Street, Kendal, Cumbria, England, LA9 7AD.

The principal activity of the charity is being the major specialist deaf charity operating throughout Cumbria for all county residents experiencing any degree of hearing or dual sensory loss.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Cumbria Deaf Association meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Going concern

On 11th March 2020 the World Health Organisation announced that COVID-19 was a global pandemic which led to enforced restrictions and business closures being introduced by the UK Government. Whilst the UK is now out of lockdown measures, the economic impact of the pandemic is still being felt. At the time of approving the financial statements, the Trustees have considered the ongoing influence on the operations and finances of the charity. New working methods have been successfully implemented which have allowed all services to continue to be delivered to service users.

The Trustees have also reviewed the circumstances that led to the significant reduction in incoming resources and subsequent reduction in funds, and the implications on the ongoing viability of the charity's operations. Significant legacy income has been received since the year end and requests for the charity's charitable activities have increased post year end. The charity continues to undertake a cost reduction exercise to minimise costs and for this reason, the Trustees consider the going concern basis to be appropriate, with a full assessment included in the Trustees' Report.

Page 14

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 15

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.5 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property - 2% Straight line Fixtures and fittings - 15% Reducing balance Office equipment - 10% Straight line

2.6 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.7 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.8 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.9 Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.10 Pensions

The charity operates a defined contribution pension scheme and the pension charge represents the amounts payable by the charity to the fund in respect of the year.

The charity also operates a defined benefits pension scheme and the pension charge is based on a full actuarial valuation dated 2 December 2018.

Page 16

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

2. Accounting policies (continued)

2.11 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

3. Income from donations and legacies

Donations
Legacies
Grants
Donations
Legacies
Grants		 Unrestricted
funds
2022
£
6,780
1,123
14,080
21,983
Unrestricted
funds
2021
£
12,375
130,000
7,470
149,845		 Total
funds
2022
£
6,780
1,123
14,080
21,983
Total
funds
2021
£
12,375
130,000
7,470
149,845

4. Income from charitable activities

Income from charitable activities

Unrestricted Total
funds funds
2022 2022
£ £
68,369 68,369

Page 17

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

4. Income from charitable activities (continued)

Income from charitable activities
5.
Investment income
Unrestricted
funds
2022
£
Investment income
4
6.
Other incoming resources
Rental income
Other income
COVID 19 business support grant
Job Retention Scheme income		 Unrestricted
funds
2021
£
190,856
Total
funds
2022
£
4
Unrestricted
funds
2022
£
5,065
870
5,935
Unrestricted
funds
2021
£
9,700
502
10,202		 Total
funds
2021
£
190,856
Total
funds
2021
£
-
Total
funds
2022
£
5,065
870
5,935
Total
funds
2021
£
9,700
502
10,202

Page 18

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

7. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2022
£
Costs of raising voluntary income
11,125
Costs of raising voluntary income (continued)
Unrestricted
funds
2021
£
Costs of raising voluntary income
30,962
Costs of raising voluntary income - wages and salaries
2,466
33,428		 Total
funds
2022
£
11,125
Total
funds
2021
£
30,962
2,466
33,428

Page 19

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

8. Analysis of expenditure on charitable activities

Summary by fund type

Statutory Services
Training Services
Statutory Services
Training Services		 Unrestricted
funds
2022
£
142,987
10,113
153,100
Unrestricted
funds
2021
£
191,364
19,989
211,353		 Total
2022
£
142,987
10,113
153,100
Total
2021
£
191,364
19,989
211,353

9. Analysis of expenditure by activities

Statutory Services
Training Services		 Activities
undertaken
directly
2022
£
60,071
-
60,071		 Support
costs
2022
£
82,916
10,113
93,029		 Total
funds
2022
£
142,987
10,113
153,100

Page 20

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

9. Analysis of expenditure by activities (continued)

Statutory Services
Training Services		 Activities
undertaken
directly
2021
£
128,083
-
128,083		 Support
costs
2021
£
63,281
19,989
83,270		 Total
funds
2021
£
191,364
19,989
211,353

Analysis of direct costs

Staff costs
Stationery, postage, phone & sundries
Consultancy fees
Pension finance costs
Staff costs
Travel costs
Consultancy fees		 Statutory
Services
2022
£
58,791
600
680
60,071
Statutory
Services
2021
£
4,000
120,947
2,280
856
128,083		 Total
funds
2022
£
58,791
600
680
60,071
Total
funds
2021
£
4,000
120,947
2,280
856
128,083

Page 21

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

9. Analysis of expenditure by activities (continued)

Analysis of support costs

Staff costs
Depreciation
Stationery, postage, phone & sundries
Light & heat
Repairs and maintenance
Insurance
ICT Support
Marketing
Training and recruitment
Other costs
Governance costs
Staff costs
Depreciation
Light & heat
Insurance
ICT support
Marketing
Other costs
Governance costs		 Statutory
Services
2022
£
41,197
14,271
588
3,135
1,584
2,713
8,274
3,754
413
1,955
5,031
82,915
Statutory
Services
2021
£
559
14,329
836
698
4,326
7,050
20,161
15,322
63,281		 Training
Services
2022
£
-
-
-
-
-
-
-
-
-
10,113
-
10,113
Training
Services
2021
£
-
-
-
-
-
-
19,989
-
19,989		 Total
funds
2022
£
41,197
14,271
588
3,135
1,584
2,713
8,274
3,754
413
12,068
5,031
93,028
Total
funds
2021
£
559
14,329
836
698
4,326
7,050
40,150
15,322
83,270

Page 22

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

10. Independent examiner's remuneration

2022 2021
£ £
Fees payable to the Charity's independent examiner for the independent
examination of the Charity's annual accounts 4,500 4,700

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
Operating costs of defined benefit pension schemes		 2022
£
91,502
1,383
6,103
1,000
99,988		 2021
£
109,360
6,604
7,008
1,000
123,972

The average number of persons employed by the Charity during the year was as follows:

2022 2021
No. No.
Administrative staff 7 6

No employee received remuneration amounting to more than £60,000 in either year.

During the year remuneration amounting to £34,603 (2021 - £9,580) and was payable to 1 member of staff (2021 - 1 member of staff) deemed to be key management.

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL) .

Page 23

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

13. Tangible fixed assets

Cost or valuation
At 1 April 2021
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Freehold
property
£
289,299
289,299
139,110
5,786
144,896
144,403
150,189		 Fixtures and
fittings
£
67,384
67,384
28,577
6,738
35,315
32,069
38,807		 Office
equipment
£
24,994
24,994
13,345
1,747
15,092
9,902
11,649		 Total
£
381,677
381,677
181,032
14,271
195,303
186,374
200,645

14. Fixed asset investments

Cost or valuation
At 1 April 2021
At 31 March 2022
Impairment
At 1 April 2021
At 31 March 2022		 Unlisted
investments
£
10,000
10,000
10,000
10,000

At the previous year end date, the Trustees considered the valuation of the investment in Deaf UK Limited and believed that due to the dormant status of the company's operations the value of the investment was impaired and held a more realistic value of £Nil.

On 5 July 2022, the company was dissolved at Companies House.

Page 24

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

15. Debtors

Due within one year
Trade debtors
Other debtors		 2022
£
13,906
70,691
84,597		 2021
£
13,997
130,000
143,997

16. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2022
£
1,081
4,289
1,033
4,700
11,103		 2021
£
8,960
2,085
1,873
4,700
17,618

Page 25

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds - all funds
Pension reserve
Restricted funds
Smart Energy in Communities
Total of funds		 Balance at 1
April 2021
£
344,710
(39,000)
305,710
4,995
310,705		 Income
£
96,291
-
96,291
-
96,291		 Expenditure
£
(163,225)
(1,000)
(164,225)
-
(164,225)		 Gains/
(Losses)
£
-
40,000
40,000
-
40,000		 Balance at
31 March
2022
£
277,776
-
277,776
4,995
282,771

Smart Energy in Communities - this funding was provided to allow the Charity to support service users during the process of switching to smart energy meters.

Page 26

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Pension reserve
Restricted funds
Smart Energy in Communities
Total of funds		 Balance at
1 April 2020
£
233,588
(195,000)
38,588
4,995
43,583		 Income
£
350,903
-
350,903
-
350,903		 Expenditure
£
(239,781)
(5,000)
(244,781)
-
(244,781)		 Gains/
(Losses)
£
-
161,000
161,000
-
161,000		 Balance at
31 March
2021
£
344,710
(39,000)
305,710
4,995
310,705

Page 27

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

18. Summary of funds

Summary of funds - current year

Balance at
Balance at 1 Gains/ 31 March
April 2021 Income Expenditure (Losses) 2022
£ £ £ £ £
General funds 305,710 96,291 (164,225) 40,000 277,776
Restricted funds 4,995 - - - 4,995
310,705 96,291 (164,225) 40,000 282,771
Summary of funds - prior year
Balance at
Balance at Gains/ 31 March
1 April 2020 Income Expenditure (Losses) 2021
£ £ £ £ £
General funds 38,588 350,903 (244,781) 161,000 305,710
Restricted funds 4,995 - - - 4,995
43,583 350,903 (244,781) 161,000 310,705

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Restricted
funds
2022
Unrestricted
funds
2022
£
£
-
186,374
4,995
102,505
-
(11,103)
4,995
277,776		 Total
funds
2022
£
186,374
107,500
(11,103)
282,771

Page 28

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

19. Analysis of net assets between funds (continued)

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
Total		 Restricted
funds
2021
£
-
4,995
-
-
4,995		 Unrestricted
funds
2021
£
200,645
161,683
(17,618)
(39,000)
305,710		 Total
funds
2021
£
200,645
166,678
(17,618)
(39,000)
310,705

20. Pension commitments

The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.

The Charity operates a defined benefit pension scheme.

The charity contributes to the Cumbria Local Government pension scheme on behalf of some of its employees to provide benefits based on final pensionable pay. Contributions are charged to the income and expenditure account so as to spread the cost of pensions over employees' working lives with the company. The contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method.

At the year end date £1,033 was outstanding in respect of contributions payable to the pension schemes by the charity (2021 - £1,873).

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

At 31 March At 31 March
2022 2021
% %
Discount rate 2.8 2.1
Inflation assumption 3.4 2.7
Future salary increases 4.9 4.2
Future pension increases 3.5 2.8

Page 29

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Pension commitments (continued)

At 31 March At 31 March
2022 2021
Years Years
Mortality rates (in years)
- for a male aged 65 now 22.6 22.7
- at 65 for a male aged 45 now 24.1 24.3
- for a female aged 65 now 25.3 25.3
- at 65 for a female aged 45 now 27.1 27.2

The Charity's share of the assets in the scheme was:

Equities
Corporate bonds
Property
Cash and other liquid assets
Other
Total fair value of assets		 At 31 March
2022
£
1,357,000
653,000
352,000
108,000
1,396,000
3,866,000		 At 31 March
2021
£
1,390,000
637,000
290,000
148,000
1,154,000
3,619,000

The actual return on scheme assets was £348,000 (2021 - £582,000) .

The amounts recognised in the Statement of financial activities are as follows:

Current service cost
Interest income
Interest cost
Total amount recognised in the Statement of financial activities		 2022
£
1,000
(75,000)
75,000
1,000		 2021
£
1,000
(74,000)
78,000
5,000

Page 30

CUMBRIA DEAF ASSOCIATION

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

20. Pension commitments (continued)

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Current service cost
Interest cost
Actuarial (gains)/losses
Benefits paid
Closing defined benefit obligation		 2022
£
3,658,000
1,000
75,000
(16,000)
(101,000)
3,617,000

Movements in the fair value of the Charity's share of scheme assets were as follows:

Opening fair value of scheme assets
Expected return on assets
Actuarial gains
Benefits paid
Closing fair value of scheme assets		 2022
£
3,619,000
75,000
273,000
(101,000)
3,866,000

The actuarial valuation at the year end date resulted in an asset position for the Scheme of £249,000. This is not reflective of the true position given the current economic conditions in place as the charity will not receive any economic benefit or repayment of scheme monies therefore an asset ceiling has been applied to reflect a £nil position on the balance sheet. This asset ceiling has been offset against actuarial gains and losses within the Statement of Financial Activities within the financial statements.

21. Related party transactions

The charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the charity at 31 March 2022.

Page 31