Company registration number: 04501827 Charity registration number.. 1094825 Sefton Advocacy IA company limited by guarantee) Annual Report and Financial Statements For the Year Ended 31 March 2024 Sefton Advocacy Contents Reference and Administration Tru5tees' Report 2to3 Statement of Trustees, Responsibilities Independent Examiners Report Statement of Financial Activities 6t07 Balance Sheet Notes to the Financial Statements 9t015 Sefton Advocacy Reference and Administrative Details Secretary A S Ayres Senlor Mana8ernentlLeadershlp Team A Booth, Chief Executive A S Ayres, Deputy Chief Executive Charlty Reglstrallon Nurnber 109482S Company Re8iStratlon Number 04501827 The charity is incorporated in England and Wales Reglstered Offlce 11 Hoghton Street Southport Merseyside PR9 ONS Independent ExamSner IMB Accovntants Limited 5 Wilmcote Grove Southport Merseyside PR8 2SP Bankers HSBC Bank plc Bootle 197 Stanley Road Bootle L20 3DX Page I Sefton Advocacy Trustees, Report The trustees, who are directors for the purposes of company law, present the annual report together with the financial statement of the charitable company for the year ended 31 March 2024. Objectlves and act5vltles Objects and aims The Charity 15 constituted a5 a company limited by 8Ltarantee, and is therefore governed by a memorandum and articles of associats"on. Its objectives are to relieve vulnerable people in the Sefton area who a socially excluded, empowering them to make their own choices and to give them the conlidence to speak out. In order to further these oblect5, the following policie5 have been adopted.. To promote advocacy as a mean5 of safe8uardin8 the interests of vulnerable people and to raise awareness of the need for advocacy within the wider community and services deliverers. bl To deliver the service with help of highly trained and skilled volunteers from the local community who see advocacy as a means of exercising their citizenship. To continue to closely monitor and evaluate the or8anisatton and to develop it to meet the changing nee(5s of vulnerable people. d) To raise funds and to invite and receive contributions provided that in raising funds the charity shall not undertake any substantial permanent tradin8 activitie5 and shall conform to any relevant statutory regulations. Public benefit The Charities objectives are to relieve vulnerable people in the Sefton area who are socially excluded, empowering them to make their own choices and to give them the confidence to Speak out. The trustees confirm that they have complied with the requirement5 of sertfon 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. Flnancial revlew Principal fimding sources The principal fundin8 sources are South Sefton CCG, Southport and Formby CCG and Sefton MBC. Page 2 Sefton Advocacy Trustees, Report Trustees and officers The trustees and officer5 serving during the year and since the year end were as follows.. Trustees: T Cheetham (resigned 12 March 20241 l D Parker T J Clarke (resigned 28 September 20231 H Robir¢s S Bell L S Johnson l Jones Secretary.. A S Ayres Senior ManagementlLeadership Team.. A Booth A S Ayres Flnanclal Instruments Obj'ectives and policies The charity'5 activities expose it to a number of financial risks including credit risk, cash flow rlsk and liquidity risk. The use of financial derivatives is governed by the charity's policies approved by the board of trustees, which provide written principles on the use of linancial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes. The annval report was approved by the trustees of the charity on 31 July 2024 and si8ned on its behalf by: l D Parker Chairman and Trustee Page 3 Sefton Advocacy Statement of Trustees, Responsibilities The trustee5 (who are also the directors of Sefton Advocacy for the purposes of company lawl are responsible for preparing the trustees, report and the financial Statements in accordance with the United Kingdom Accounting Standards (United Kin8dom Generally Accepted Accountin8 Practicel and applicable law and regulations. Company law requires the trustees to prepare financial statements for each financial year. 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 affair5 of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparin8 these financial statements, the trustees are required to.. select suitable accounting policies and apply them consistently,. observe the methods and principles in the Charities SORP. make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial 5tatement5,' and prepare the financial Statements on the 80ing concern basis unle55 It is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate accountTng records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the linancial position of the charitable company and enable them to ensure that the financial statement5 comply with the Companies Act 2006. They are also responsible for safeguarding the 355ets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularitfes. Approved by the trustees of the charity on 31 July 2024 and signed on its behalf by: D Parker Chairman and Trustee Page 4 Sefton Advocacy Independent Examiner's Report of the trustees of Sefton Advocacy {"the Company") I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2024. Respon5ibilitles and basls of report As the Charity's trustees of the Company land also its directors for the PLtrposes of company lawl you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 1.the 2006 Acr'l Having satisfied myself that the accounts of Sefton Advocacy 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 your charity'5 account5 a5 carried out under section 145 of the Charities Act 2011 1"the 2011 Act"). In carrying oijt my examination I have followed the Directions given by the Charity Commission under section 145151 Ibl of the 2011 Act. Independent examlner's statement Slnce the Company's 8ross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member of ICAEW, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination givin8 me cause to believe,. accounting records were not kept in respect of Sefton Advocacy as required by section 386 of the 2006 Act,. or the accounts do not accord with those records,. or the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts 8ive a 'true and fair view, which is not a matter considered as part of an independent examination,. or the account5 have not been prepared in accordance with methods and principles of the Statement of Recommendation Practice for accounting and reporting by charities lopplicable to charities preparin their accounts in accordance with the Financial Reportrng Standard applicable in the UK and Republic of Ireland IFRS 10211. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the account5 to reached. lan Burton ICAEW IMB Accountants Limlted 5 Wilmcote Grove Southport Mpr5ey5ide PR8 25P Dote 31 July 2024 Page 5 Sefton Advocacy Statement of Financial Activities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestrlcted funds Restrlcted funds Total 2024 Note Income and Endowments from: Donations and 8ift5 Grants received Investment income 1,509 313,255 1,509 363,255 50,000 Total income Expendlture on: Raising funds Charitable activities 130,0731 130,0731 Total expenditure Net income Transfers between funds 38,993 3,068 42,061 Net movement in funds 38,993 3,068 42,061 Reconciliatlon ot funds Total funds brought forward Total funds carried forward 15 The notes on pages 9 to 15 form an integral part of these financial statements Page 6 Sefton Advocacy Statement of Financial Activities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestrlrted funds Restrirted funds Total 2023 Note Income and Endowments from,. Donations and gifts Grants received 610 610 Total income Expendlture on: Raising funds Charitable acrivitie5 129,3241 129,3241 Total expenditure Net income/lexpenditurel Transfers between funds 73.967 138,3201 35,647 Net movement in funds 35,647 35,647 Reconclllatlon of fvnd5 Total funds brought forward Total funds carried forward 15 All of the charity's activities derive from continuing operations during the above two periods. The fund5 breakdown for 2023 1$ shown in note 15. The notes on pages 9 to 15 form an integrdl part of these flnanclal statements Page 7 Sefton Advocacy (Registration number: 04501827) Balance Sheet as at 31 March 2024 2024 2023 Note Flxed assets Tangible assets io 9,569 8,920 Current assets Debtors Cash at bank and in hand li 12 4,391 3,300 .48 31,781 73,253 Creditors: Amounts falllng due wlthln one year 13 Net current assets / Illablllties) Net assets Funds of the charlty: Unrestrlcted Income funds Restricted funds Unrestricted funds 3,068 Total funds 15 For the financial year endin8 31 March 2023 the charity was entitled to exemption from audit under section 477 of the Companie5 Act 2006 relating to small companies. Directors, responsibilities.. The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476,. and The directors acknowledge their responsibilities for Complying with the requirements of the Act with respect to accounting records and preparation of accounts. The financial statements on pages 6 to 15 were approved by the trustees, and authorised for issue on 31 July 2024 and signed o f by.. ker Chairman and Trustee The notss on pages 9 to 15 form an integral part of these tinancial statements Page 8 Sefton Advocacy Notes to the Financial Statements for the Year Ended 31 March 2024 Charity ststus: The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation. The address of its registered office is.. 11 Houghton Street Southport Merseyside PR9 ONS The fi'nancial statements were authorised for issue by the trustees on 31 July 2024 Accounting pollcles Summary of signlflcant accountlng pollcies and key aceountlng estfmates The principal accounting policies applied in the preparation of these h'nancial statements are set out below. These policies have been consistently applied to all years presented, unle55 Otherwise stated. ststement of compliance The financial statements have been prepared in accordance with Accounting and Reporting bv Charities- Statement of Recommended Practice lapplicable to charities preparin8 their accounts in accordance with the Financial Reporring Standard in the UK and Republic of Ireland IFRS 10211 (issued in October 20191- Icharities SORP IFRS 10211, the Financial Reporthng Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companie5 Act 2006. 8asls of preparatlon Sefton Advocacy 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 accountin8 policy notes. Golng concern The trustees consider that there are no material uncertaint6es about the charity's ability to continue as a going concern nor any significant area5 of uncertainty that affect the carryin8 value of assets held by the charitv. Income and endowments All income 15 recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably. Donatlons and le8acles Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that 8 donation is Subject to conditions that require a level of performance by the charity before the charity Is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfi'lment of those conditions is wholly within the control of the charity and it Is probable that these condition5 will be fulfilled in the reporting period. Page 9 Sefton Advocacy Note5 to the Financial Statements for the Year Ended 31 March 2024 Expenditure All expenditure is recognised once there 15 a legal or constructive obligation to that expenditure, it is probable settlement 15 required and the amount can be measured reliably. All costs allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be (Jirectly attributed to parhcular headings, they have been allocated on a basis conslstent with the use of resources, with central staff costs allocated on the basis of time Spent, and depreciation charges allocated on the porhon of the asset's use. Other support costs are allocated based on the spread of staff costs. Ralslng funds These are costs incurred in attracring voluntary income, the mana8ement of investment5 and those incurred in trading activities that raise funds. Charitable activitfes Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It iricludes both costs that can be allocated directly to such activities and those cost5 of an indirect nature necessary to support them. Support costs Support costs include central functions and have been allocated to activity cost categorie5 on a ba515 consistent with the use of resources, for example, allocating property costs by floor area, or per capita, staff costs by the time spent ond other costs by their usage. Governance costs These include the cost5 attributable to the charity's compliance with constitutional and statutory requirements, including audit, Strate8ic management and trustee's meetings and reimbursed expenses. Taxatlon The charity is considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for the UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital 8ains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Tanglble Hxed assets Individual fiKed assets costing £100.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Depreclatlon and amortlsatlon Depreciation is provided on tangible lixed assets so as to write off the c05t or valuation, less any estimated residual value, over their expected useful economic life as follows.. Asset cla55 Fixtures and fittin85 Office equipment Depreciation method and rate 15% reducing balance ba515 25Yo reducing balance basi5 Page 10 Sefton Advocacy Notes to the Financial Statements for the Year Ended 31 March 2024 Cash and cash equfvalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily converhble to a known amount of cash and are subject to an insignificant risk of change in value. Trade credito Trade creditors are obli8ations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period. to defer settlement of the creditor for at least twelve months after the reporhng date. If there is an unconditional right or defef settlement for at least twelve month5 after the reportin8 date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost usin8 the effective interest method. Fund structure Unrestricted income funds are general funds that are available for use at the trustee's discretion in furtherance of the objectives of the charitv. Restricte(i income funds are those donated for use in a particular area or for speciftc purposes, the Ltse of which is restricted to that area or purpose. Penslons and other post-retlrement obllgatlons The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defoned contribution plans are recognised in the Statement of Financial Activitie5 when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a payment. Income from donailons and legacles Unrestrlrted Funds General Total Funds Donations and legacies,. Donotions from individua15 Total for 2024 Totslfor 2023 Page 11 Sefton Advocacy Notes to the Financial Statements for the Year Ended 31 March 2024 Income from charitable actlvltles Unrestrlcted Funds General Restrlrted Funds Totsl Funds Grants Received Totsl for 2024 ooo Total for 2023 Investment income Total Funds Total for 2024 Expenditure on ralsln8 funds Unrertrlrted Funds General Note Total Funds Allocated support Costs Total foi 2024 Total for 2023 314 Page 12 Sefton Advocacy Notes to the Financial Statements for the Year Ended 31 March 2024 Expenditure on charitable artlvltles Unrestricted Funds General Restricted Funds Total Funds Note Staff costs Allocated support costs Governance costs 84,724 32,448 36,938 9,994 121,662 42,442 Totsl for 2024 Total for 2023 Staff Costs The aggregate payroll costs were as follows.. 2024 2023 Staff costs durln8 the year were: Wages and salaries Pension costs 200,109 205,994 The monthly average number of persons lincluding senior management I leadership teaml employed by the charity during the year expressed as full-time equivalents was as follows.. 2024 No 2023 No Employees 912023 - 101 of the above employees partFClPated in the Defined Contribution Pension Schemes. Contributions to the employee pension schemes for the year totalled £35,73812023 - £32,130). No employee received emolument5 of more than £60,000 during the year. Taxat5on The charity is a registered charity and is therefore exempt from taxation. Page 13 Sefton Advocacy Notes to the Financial Statements for the Year Ended 31 March 2024 io Tangible tixed a$5ets Furniture and equipment Total Cost At l April 2023 Additions 51,268 51,268 At 31 March 2024 Depreciatlon At l April 2023 Charge for the year 42,348 42,348 At 31 March 2024 Net book value At 31 March 2024 At 31 March 2023 920 li Debtors 2024 2023 Pfepayments 3Q. 12 Cash and cash equlvalenls 2024 2023 Cash on hand Cash at bank 54 53 13 Credltors: amounts fallSng due wlthln one year 2024 2023 Trade creditors Other creditors Accruals Page 14 Sefton Advocacy Notes to the Financial Statement5 for the Year Ended 31 March 2024 14 Pension and other schemes Deflned contribullon penslon scherne The charity operates a defined contribution pension Scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £26,93712023 - £26,937). IS Funds Balance at 31 March 2024 Balanee at l April 2023 Incomln8 Resources Resources Expended Transfers Unrestrlcted funds General Designated 14,501 314,807 1275,8141 120,0001 33,494 Total unrestrlcted funds Re5trlcted funds Total funds Balance at 31 March 2023 Balance at l Aprll 2022 In¢omln8 Resources Resources Expended Transfers Unrestrlcted fvnds General Designated 3,854 316,545 1242,578) 163,3201 14,501 Total unrestrlcted funds 3,854 316,545 1242,5781 138,3201 39,501 Re5trlrted funds Total funds The specific purposes for which the fund5 are to be applied are as follows.. The designated fund is a contingency fund. It is the aspiration of the board that the fund is build up to a level such that it would meet three months expenses of the charity. Page 15