Company no. 04475254 Charity no. 1096449 

# **ECHO for Extra Choices in Herefordshire Limited** 

# **Report and Unaudited Financial Statements 31 March 2021** 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Reference and administrative details** 

|**Reference and administrative details**|**Reference and administrative details**||
|---|---|---|
|**For theyear ended 31 March 2021**|||
|**Company number**|04475254||
|**Charity number**|1096449||
|**Registered office and**|40-42 West Street||
|**operational address**|Leominster||
||Herefordshire||
||HR6 8ES||
|**Secretary**|Mike Cook||
|**Trustees**|Trustees, who are also directors under company law, who served during||
||the year and up to the date|of this report were as follows:|
||Caroline Arthur|Joint chair until December 2020, chair from|
|||December 2020|
||Susan Nash|Joint chair until December 2020|
||Christopher Blum|Appointed 3 December 2020|
||Beverley Davies||
||Amanda Hamblin||
||Joy House||
||Rosemary Hunt||
||Paul Scott|Resigned 23 July 2020|
||Janet Smith||
||Jason Stuchbery||
||Blaise White||
|**Chief executive officer**|Mike Cook||
|**Bankers**|CAF Bank||
||25 Kings Hill Avenue||
||Kings Hill||
||West Malling||
||Kent||
||ME19 4JQ||
|**Independent**|Godfrey Wilson Limited||
|**examiners**|Chartered accountants and|statutory auditors|
||5th Floor Mariner House||
||62 Prince Street||
||Bristol||
||BS1 4QD||



1 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Report of the trustees** 

## **For the year ended 31 March 2021** 

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the financial statements of ECHO for Extra Choices in Herefordshire Limited (the company) for the year ended 31 March 2021. 

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019). 

## **Objectives and activities** 

## Purposes and aims 

Our charity’s purposes as set out in the objects contained in the company’s memorandum of association are: 

- To advance education of persons resident in the County of Herefordshire and the immediate neighbourhood thereof, in particular (but without prejudice to the generality of the foregoing) by: ▪ Enabling adults with learning or physical disabilities or mental health difficulties to attend ordinary educational activities; 

- Organising special mixed ability courses for the benefit of adults with learning or physical disabilities or mental health difficulties; 

- Organising specialist educational or training opportunities for the benefit of adults with learning or physical disabilities or mental health difficulties; 

- To provide or assist in the provision of facilities for recreation or other leisure time occupation in the interests of social welfare with the object of improving the conditions of life for all persons with learning or physical disability or mental health difficulties; and 

- To support adults with learning and physical disabilities or mental health difficulties to access leisure, volunteering and employment opportunities with the object of improving the conditions of their lives and increasing their opportunities for inclusion in the community. 

Our mission is to make a real difference to the lives of disabled people in Herefordshire, supporting them to be valued members of the community. Our aims fully reflect the purposes that the charity was set up to further. 

## Ensuring our work delivers our aims 

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aims, objectives and activities remained focused on our stated purposes. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set. 

## The focus of our work 

ECHO is a dynamic local organisation that promotes and delivers services for disabled people in Herefordshire. To achieve our vision, of a society where all people with disabilities are heard, valued, respected and supported to make choices and flourish, we have identified six strategic aims and in support of these a number of objectives. 

**Choice** : To support our participants to be happy & healthy with a variety of stimulating choices. 

2 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Report of the trustees** 

## **For the year ended 31 March 2021** 

**Support** : To give the right support and encouragement to build confidence and teach skills that enrich our participants’ lives. 

**Community** : To support people to have a good social life, to help them keep in touch with friends and get involved in the community. 

**Involvement** : To give the time, respect and support needed for our participants to be involved in the planning, decision making and the running of ECHO. 

**Quality** : To provide high quality services that are integrated, visible and have value to the community. 

**Collaboration** : To build connections with other organisations and support our participants to join their activities, giving them more opportunities. 

## **How our activities deliver public benefit** 

Our main activities and whom we try to help are described below. All our charitable activities focus on improving the lives of disabled people in Herefordshire and are undertaken to further our charitable purposes for the public benefit. 

## Who used and benefited from our services? 

Our objects and funding limit the services we provide to those resident in Herefordshire and the surrounding area. We currently have 150 members using our services. In addition approximately 150 other people access our services on an ad hoc basis. Demand for our day services is limited by people’s access to funding via the Council’s Adult Social Care service, but some individuals fund their place from their own income. Leisure and social activities are charged on attendance. 

Equal access to our services is an important issue for us. We monitor use of our services by gender, disability, ethnicity and sexual orientation. We believe equal access to our services is vital to our success and that successful outcomes must be shared by all communities that use our 

The main areas of our charitable activity and services are separated into three areas: 

## Contractual services 

Contractual services are those where people are receiving a regular service and have a contract in place. These services are funded through personal budgets and social care spot purchases. 

They continue to be the main area of our business and we run activities 5 days a week. 125 people currently attend our day services, which is the major source of our funding. In total, we provide over 57,000 hours of service over the year. Our contractual services are supported by 40 staff and 150 volunteers. All our day services aim to support participants to learn new skills, grow in selfconfidence and be seen to be actively contributing to the local community. 

## Leisure and social activities 

Leisure, social and other activities are largely drop in, pay as you go activities, which are selffunding or supported by small grants. The majority of ECHO members access our leisure and social activities either on a regular or on an ad hoc basis. Many of these opportunities give people the chance to access ordinary community activities. They also encourage the development of natural relationships and friendships. 

3 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Report of the trustees** 

## **For the year ended 31 March 2021** 

## Community connections 

Community connections supporting individuals to play an active part in their local area; make friends; get involved and positively contribute to local community life. By giving back to their community our participants feel valued and grow in confidence. 

## Volunteer recruitment and support 

Volunteers are a vital part of our organisation. Without them, we would not be able to deliver the range and quality of services that we do. Volunteers allow us to work more flexibly, and bring a depth of experiences and backgrounds, which enrich our organisation. 

The benefits of volunteering are reciprocal. Our participants get to work with a variety of individuals and widen their horizons through the experience and knowledge that the volunteers bring. Volunteers working with ECHO have the opportunity to support others and build their skills and experience, which can be a stepping stone to employment or other opportunities. 

We have a strong commitment to encouraging volunteers who may have their own support needs, and our new National Lottery Community Fund project builds upon previous work to develop this ethos even further. We actively encourage our own participants to volunteer within ECHO activities and with other organisations. We are also working with partner organisations to provide opportunities for others with varied support needs. We recognise that incorporating volunteers with their own support needs is not always easy, but we believe that it is both the right thing to do and, with the correct support, something that can be mutually beneficial. 

## Participant involvement 

ECHO believes that disabled people should be able to play an active part in planning and decisions that affect their lives. We therefore have a strong commitment to participant involvement in all aspects of our work. 

This commitment is demonstrated throughout the organisation: 

- We encourage everyone who accesses our services to become members of ECHO. This gives them rights to vote at our AGM on issues relating to ECHO’s management and to determine the make-up of our trustee board. 

- We ensure that participants are represented on our trustee board. Currently 30% of our board are Participant trustees. These individuals are full board members and have the same legal and other responsibilities as other members. Every week we have a trustee Support meeting to give them the support they need to fulfil their roles. Participant trustees take part in the recruitment process of new staff. They meet as a group and interview and score candidates on the same basis as the interview panel. 

- Our Rep group meets weekly to discuss the work of ECHO and wider issues of national and local interest. The Rep group helps provide a sounding board for new ideas and projects as well as letting us know what they think it is important for ECHO to be aware of. 

- Participants are involved in the planning of the activities that they attend. We also ensure that participants are a key part of the process of evaluating all our activities. 

- We also support our service users to take part in other meetings and consultations both in Herefordshire and further afield. 

4 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Report of the trustees** 

## **For the year ended 31 March 2021** 

## **Financial review** 

## Principal funding sources 

The principal funding sources for the charity are currently grants income (£306,885) and fees income in the form of commissioned funding from Herefordshire Council and direct payments from individual self-funders (£457,011). In anticipation of increasing constraints on local authority expenditure, the charity continues to seek funding from a much wider range of sources including increased income from our commercial activity. To support our fundraising activities we have convened a Marketing and Fundraising sub group of the board. As well as scrutinising the organisation’s fundraising activities the group has also overseen the development of a fundraising plan, which sets out the targets for this piece of work. 

## **Investment policy** 

ECHO has invested £221,468 of its cash assets to provide income for expenditure on our charitable objectives. The trustees are governed by the memorandum, amended on 3rd July 2008, which sets out a general power of investment (section 4(h)). ECHO’s assets are invested in short to medium term deposit accounts. 

ECHO seeks to produce the best financial return within an acceptable level of risk. ECHO's investment objective is to maximise investment income for expenditure on its objectives. 

Any single deposit should not exceed the value covered by the Financial Services Compensation Scheme to mitigate risk. The value and income generated from investments is monitored by the finance officer and reviewed annually by the finance subcommittee of the Board of Trustees. 

## **Reserves policy** 

The Trustees have examined the charity’s requirements for reserves in light of the main risks to the organisation. The Trustees believe ECHO needs reserves to cover setbacks in funding or cash flow due to: 

a) Reliance on short term grant funding; 

b) The uncertainty created by the move to personalised budgets whereby individuals can choose to stop purchasing services at short notice; and 

c) To reduce the impact of risks from the external environment. 

In considering the appropriate level of reserves the Trustees took into account: 

- an analysis of existing funds; 

- a review of future income streams with an assessment of their reliability; 

- a review of committed expenditure and how far this is controllable; and 

- an assessment of the risks facing the charity, and how likely these are to materialise. 

In the light of the above, our target level of reserves is £294,446. This is the amount needed to meet 6 months’ core salaries and running costs plus non-cancellable debt. 

Free reserves stand at £355,757 (2020: £240,320), calculated as the unrestricted funds, less the designated funds. While this exceeds the current target level, the Trustees are conscious that additional expenditure will be necessary as the charity emerges from the pandemic and having set a deficit budget for 2021-22 they anticipate that reserves will reduce to around the target figure over the coming year. 

5 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Report of the trustees** 

## **For the year ended 31 March 2021** 

## **Plans for future periods** 

We are now operating in a world that is still adjusting to the effect of a global pandemic. The market is still adjusting and funding from grant making bodies is in flux, with many trusts and foundations focussing on crisis funding. 

Over the last year ECHO has worked in partnership with other organisations to share information, provide mutual support and avoid unnecessary conflicts for resources. 

Providing evidence of effectiveness, positive outcomes and value for money is increasingly important, in retaining existing contracts and securing new funding. ECHO will take the upheaval that COVID-19 has caused and turn this into a positive opportunity to review what we do. 

## **COVID-19** 

The charity is taking the following steps to mitigate the continuing threats that COVID-19 may pose to the organisation: 

- ECHO will use a risk assessment process to decide when it is appropriate to stop or restart activities. 

The Trustees consider that the charity will continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved for the following reasons: 

- The charity holds unrestricted reserves of £362,271; 

- There are fewer unknowns - we have the processes and COVID precautions in place to deal quickly and effectively with any changes to national guidance; and 

- The National Lottery Community Fund have also confirmed that they will continue to support our existing grant. 

## **Structure, governance and management** Governing document 

The organisation is a charitable company limited by guarantee. The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £10. 

## Recruitment and appointment of board of trustees 

The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as members of the Management Committee. ECHO is required to have a minimum of 3 and a maximum of 15 Trustees. Trustees are elected at the Annual General Meeting. One third of the Trustees retire each year. The Trustees to retire each year are those who have been Trustees the longest (since their last election). If a Trustee retires by rotation, they may be put forward for re-election. 

All Trustees must be members of ECHO. A member may be appointed Trustee if they are an existing Trustee retiring by rotation; or they are recommended by the other Trustees; or they are nominated in writing by another member. The nomination must be sent to ECHO not less than 14 days, nor more than 35 days before the date of the meeting. The nominated Trustee must also sign to say they are willing to be elected. 

The Board seeks to ensure that the participant group is appropriately reflected in the diversity of the Trustee body. The Board actively encourages its participants to consider standing for election and provides a range of advocacy support to meet the needs of individuals putting themselves 

6 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Report of the trustees** 

## **For the year ended 31 March 2021** 

## Trustee induction and training 

All Trustees are given a full induction pack outlining their roles and responsibilities as Trustees and Directors of the company. All Trustees are offered the opportunity to attend external trustee training sessions. Appropriate additional support is provided to beneficiary Trustees or any other Trustees with additional support needs. Feedback from new Trustees about their induction has been very positive. 

## Risk management 

The Trustees have conducted a review of the major risks to which the charity is exposed. A risk register has been established and is updated at least annually. Where appropriate, systems or procedures have been established to mitigate the risks the charity faces. 

Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety of staff, volunteers, beneficiaries and visitors. These procedures are periodically reviewed to ensure that they continue to meet the needs of the charity. 

## Organisational structure 

ECHO has a Board of Trustees who meet every at least every 3 months and are responsible for the strategic direction and policy of the charity. At present, the Board has ten members from a variety of backgrounds relevant to the work of the charity. The Chief Officer/ Company Secretary also sits on the Committee but has no voting rights. There are currently 4 sub-groups of the board (Finance, HR, Fundraising and Marketing, and Quality). All have their own terms of reference and delegated powers. 

Day to day responsibility for the running of the charity and its services rests with the Chief Officer and the staff team. The Chief Officer is responsible for ensuring that the charity delivers the services specified and that key outcomes are met. 

## Quality assurance 

ECHO undertook reassessment for the Trusted Charity Mark in 2020 and was pleased to be awarded the highest level 2 award. 

## **Statement of responsibilities of the trustees** 

The trustees (who are also 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, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

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 charity and of the income and expenditure of the charity for that period. In preparing those financial statements the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether applicable UK accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and 

7 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Report of the trustees** 

## **For the year ended 31 March 2021** 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees 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. 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity. 

## **Independent examiners** 

Godfrey Wilson Limited were re-appointed as independent examiners to the charitable company during the year and have expressed their willingness to continue in that capacity. 

Approved by the trustees on 2 September 2021 and signed on their behalf by 

## Blaise White 

Blaise White - Treasurer 

8 



## **Independent examiner's report** 

## **To the trustees of** 

## **ECHO for Extra Choices in Herefordshire Limited** 

I report to the trustees on my examination of the accounts of ECHO for Extra Choices in Herefordshire Limited (the charitable company) for the year ended 31 March 2021, which are set out on pages 10 to 27. 

## **Responsibilities and basis of report** 

As the trustees of the charitable company (and also 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 charitable company 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 charitable company's accounts as 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** 

Since the charitable company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies. 

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 

- (1) accounting records were not kept in respect of the charitable company 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 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 accounts to be reached. 

## Alison Godfrey 

Date: 6 September 2021 **Alison Godfrey FCA Member of the ICAEW** For and on behalf of: **Godfrey Wilson Limited** Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD 

9 



## **ECHO for Extra Choices in Herefordshire Limited** 

**Statement of financial activities** _(incorporating an income and expenditure account)_ 

## **For the year ended 31 March 2021** 

|Restricted Unrestricted<br>Note<br>£<br>£<br>**Income from:**<br>Donations<br>3<br>8,109<br>100,776<br>Charitable activities<br>4<br>209,189<br>584,308<br>Other trading activities<br>5<br>-<br>14,231<br>Investments<br>-<br>4,331<br>**Total income**<br>217,298<br>703,646<br>**Expenditure on:**<br>Raising funds<br>-<br>38,842<br>Charitable activities<br>188,109<br>560,076<br>**Total expenditure**<br>7, 8, 9<br>188,109<br>598,918<br>**Net income / (expenditure)**<br>29,189<br>104,728<br>Transfers between funds<br>2,000<br>(2,000)<br>**Net movement in funds**<br>10<br>31,189<br>102,728<br>**Reconciliation of funds:**<br>Total funds brought forward<br>29,695<br>259,543<br>**Total funds carried forward**<br>60,884<br>362,271|**2021**<br>**Total**<br>**£**<br>**108,885**<br>**793,497**<br>**14,231**<br>**4,331**<br>**920,944**<br>**38,842**<br>**748,185**<br>**787,027**<br>**133,917**<br>**-**<br>**133,917**<br>**289,238**<br>**423,155**|2020<br>Total<br>£<br>58,131<br>643,871<br>53,849<br>2,752|
|---|---|---|
|||758,603|
|||20,959<br>790,077|
|||811,036|
|||(52,433)<br>-|
|||(52,433)<br>341,671|
|||289,238|



All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 18 to the accounts. 

10 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Balance sheet** 

## **As at 31 March 2021** 

|Note<br>**Fixed assets**<br>Tangible assets<br>13<br>**Current assets**<br>Debtors<br>14<br>Current asset investments<br>Cash at bank and in hand<br>**Liabilities**<br>Creditors: amounts falling due within 1 year<br>15<br>**Net current assets**<br>**Net assets**<br>17<br>**Funds**<br>18<br>Restricted funds<br>Unrestricted funds<br>Designated funds<br>General funds<br>**Total charity funds**|**£**<br>**48,141**<br>**221,468**<br>**183,130**<br>**452,739**<br>**(32,583)**|**2021**<br>**£**<br>**2,999**<br>**420,156**<br>**423,155**<br>**60,884**<br>**6,514**<br>**355,757**<br>**423,155**|Restated<br>2020<br>£<br>4,799<br>37,802<br>150,000<br>126,723|
|---|---|---|---|
||||314,525<br>(30,086)|
||||284,439|
||||289,238|
||||29,695<br>19,223<br>240,320|
||||289,238|



The directors are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477(2), and that no member or members have requested an audit pursuant to section 476 of the Act. 

The directors acknowledge their responsibilities for: 

- (i) ensuring that the Company keeps proper accounting records which comply with section 386 of the Act; and 

- (ii) preparing financial statements which give a true and fair view of the state of affairs of the Company as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of section 393, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the company. 

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime. 

Approved by the trustees on 2 September 2021 and signed on their behalf by Blaise White 

Blaise White - Treasurer 

11 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Statement of cash flows** 

## **For the year ended 31 March 2021** 

|**Cash used in operating activities:**<br>Net movement in funds<br>_Adjustments for:_<br>Depreciation charges<br>Dividends, interest and rents from investments<br>Decrease / (increase) in debtors<br>Increase / (decrease) in creditors<br>**Net cash provided by / (used in) operating activities**<br>**Cash flows from investing activities:**<br>Dividends, interest and rents from investments<br>Purchase of tangible fixed assets<br>**Net cash provided by / (used in) investing activities**<br>**Increase / (decrease) in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**<br>**Represented by:**<br>Current asset investments<br>Cash at bank and in hand|**2021**<br>**£**<br>**133,917**<br>**1,800**<br>**(4,331)**<br>**(10,339)**<br>**2,497**<br>**123,544**<br>**4,331**<br>**-**<br>**4,331**<br>**127,875**<br>**276,723**<br>**404,598**<br>**2021**<br>**£**<br>**221,468**<br>**183,130**<br>**404,598**|2020<br>£<br>(52,433)<br>600<br>(2,752)<br>10,221<br>(16,773)|
|---|---|---|
|||(61,137)|
|||2,752<br>(5,399)|
|||(2,647)|
|||(63,784)<br>340,507|
|||276,723|
|||2020<br>£<br>150,000<br>126,723|
|||276,723|



The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements. 

12 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **1. Accounting policies** 

## **a) Basis of preparation** 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies 

ECHO for Extra Choices in Herefordshire Limited 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 note. 

## **b) Going concern basis of accounting** 

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves and having considered the impact of the ongoing Covid pandemic. There are no material uncertainties about the charity's ability to continue as a going concern. 

## **c) Income** 

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably. 

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. 

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor's intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. 

Income received in advance of events is deferred until criteria for income recognition are met. 

13 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **1. Accounting policies (continued)** 

## **d) Donated services and facilities** 

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised. 

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. 

## **e) Interest receivable** 

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the 

## **f) Funds accounting** 

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity. 

## **g) Expenditure and irrecoverable VAT** 

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. 

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was 

## **h) Allocation of support and governance costs** 

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Governance costs are the costs associated with the governance arrangements of the charity, including the costs of complying with constitutional and statutory requirements and any costs associated with the strategic management of the charity’s activities. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between activities on a basis consistent with the use of resources. This has resulted in the following apportionment during the year: 

||**2021**|2020|
|---|---|---|
|Raising funds|**2.8%**|2.6%|
|Charitable activities|**97.2%**|97.4%|



14 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **1. Accounting policies (continued)** 

## **i) Tangible fixed assets** 

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows: 

Fixtures and fittings 

3 years straight line 

## **j) Debtors** 

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

## **k) Cash at bank and in hand** 

Cash at bank and cash 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. 

## **l) Current asset investments** 

Deposit accounts and other liquid unlisted investments with a maturity date of more than three months from the date of acquisition or opening of the account are deemed to be held for investment and are therefore classified as current asset investments. 

## **m) Creditors** 

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. 

## **n) Financial instruments** 

The charitable company 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 recognised at amortised cost using the effective interest method. 

## **o) Pension costs** 

The company operates a defined contribution pension scheme for its employees. There are no further liabilities other than that already recognised in the SOFA. 

## **p) Foreign currency transactions** 

Transactions in foreign currencies are translated at rates prevailing at the date of the transaction. Balances denominated in foreign currencies are translated at the rate of exchange prevailing at the year end. 

## **q) Accounting estimates and key judgements** 

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

15 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **1. Accounting policies (continued)** 

## **Accounting estimates and key judgements (continued)** 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. 

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. 

## **Depreciation** 

As described in note 1i to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. 

## **2. Prior period comparatives: statement of financial activities** 

|Restricted<br>£<br>£<br>**Income from:**<br>Donations<br>7,341<br>50,790<br>Charitable activities<br>101,552<br>542,319<br>Other trading activities<br>2,744<br>51,105<br>Investments<br>-<br>2,752<br>**Total income**<br>111,637<br>646,966<br>**Expenditure on:**<br>Raising funds<br>-<br>20,959<br>Charitable activities<br>131,358<br>658,719<br>**Total expenditure**<br>131,358<br>679,678<br>**Net expenditure and net movement in funds**<br>(19,721)<br>(32,712)<br> **Income from donations**<br>**2021**<br>Restricted<br>**Total**<br>£<br>£<br>**£**<br>Donations<br>8,109<br>43,601<br>**51,710**<br>Coronavirus Job Retention Scheme<br>-<br>57,175<br>**57,175**<br>**Total income from donations**<br>8,109<br>100,776<br>**108,885**<br>Unrestricted<br>Unrestricted|**2020**<br>**Total**<br>**£**<br>**58,131**<br>**643,871**<br>**53,849**<br>**2,752**|
|---|---|
||**758,603**|
||**20,959**<br>**790,077**|
||**811,036**|
||**(52,433)**|
||2020<br>Total<br>£<br>58,131<br>-|
||58,131|



## **3. Income from donations** 

£7,341 of donations in the prior period were restricted. 

16 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **4. Income from charitable activities** 

|Grants<br>Fees for activities<br>Other income<br>Contracts<br>**Total income from charitable activities**<br>**Prior period comparative**<br>Grants<br>Fees for activities<br>Other income<br>Contracts<br>**Total income from charitable activities**|Restricted<br>£<br>£<br>209,189<br>97,696<br>-<br>457,011<br>-<br>15,416<br>-<br>14,185<br>209,189<br>584,308<br>Restricted<br>£<br>£<br>96,241<br>-<br>-<br>491,933<br>1,060<br>24,386<br>4,251<br>26,000<br>101,552<br>542,319<br>Unrestricted<br>Unrestricted|**2021**<br>**Total**<br>**£**<br>**306,885**<br>**457,011**<br>**15,416**<br>**14,185**|
|---|---|---|
|||**793,497**|
|||2020<br>Total<br>£<br>96,241<br>491,933<br>25,446<br>30,251|
|||643,871|



## **5. Income from other trading activities** 

|**Income from other trading activities**|||
|---|---|---|
|Shop, cafe and theatre sales<br>**Prior period comparative**<br>Shop, cafe and theatre sales|Restricted<br>£<br>£<br>-<br>14,231<br>Restricted<br>£<br>£<br>2,744<br>51,105<br>Unrestricted<br>Unrestricted|**2021**<br>**Total**<br>**£**<br>**14,231**|
|||2020<br>Total<br>£<br>53,849|



## **6. Government grants** 

The charitable company received government grant income in the year under the Coronavirus Job Retention Scheme and from Arts Council England. The total value of such grants in the period ending 31 March 2021 was £78,202 (2020: £5,304). There are no unfulfilled conditions or contingencies attaching to these grants in 2020/21. 

17 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **7. Analysis of expenditure by type** 

|**Analysis of expenditure by type**|||
|---|---|---|
|Raising funds<br>**Total raising funds**<br>Charitable activities before governance costs<br>Governance costs allocated to charitable activities<br>**Total expenditure on charitable activities**<br>**Total expenditure 2021:**|Staff Costs Other Costs<br>£<br>£<br>38,842<br>-<br>38,842<br>-<br>536,470<br>199,935<br>9,278<br>2,502<br>545,748<br>202,437<br>584,590<br>202,437|**2021**<br>**Total**<br>**£**<br>**38,842**|
|||**38,842**<br>**736,405**<br>**11,780**|
|||**748,185**|
|||**787,027**|



|**Prior period comparative**<br>Raising funds<br>**Total raising funds**<br>Charitable activities before governance costs<br>Governance costs allocated to charitable activities<br>**Total expenditure on charitable activities**<br>Total expenditure 2020:|Staff Costs Other Costs<br>£<br>£<br>20,959<br>-<br>20,959<br>-<br>536,979<br>240,537<br>9,030<br>3,531<br>546,009<br>244,068<br>566,968<br>244,068|2020<br>Total<br>£<br>20,959|
|---|---|---|
|||20,959<br>777,516<br>12,561|
|||790,077|
|||811,036|



## **8. Resources expended by activity** 

|Education and training<br>Development and volunteering<br>Sport and leisure<br>Day opportunities<br>General<br>**Total expenditure 2021:**|Direct<br>costs<br>£<br>10,574<br>45,717<br>19,513<br>317,369<br>250,197<br>643,371|Support<br>costs:<br>staff<br>£<br>2,552<br>12,552<br>310<br>86,009<br>9,795<br>111,218|Support<br>costs:<br>office<br>£<br>502<br>2,467<br>61<br>16,904<br>1,925<br>21,858|Support<br>costs:<br>premises<br>£<br>243<br>1,194<br>29<br>8,182<br>932<br>10,581|**2021**<br>**Total**<br>**£**<br>**13,870**<br>**61,930**<br>**19,913**<br>**428,465**<br>**262,849**|
|---|---|---|---|---|---|
||||||**787,027**|



18 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

|**For the year ended 31 March 2021**||||
|---|---|---|---|
|**8. Resources expended by activity (continued)**<br>**Prior period comparative:**<br>Direct<br>costs<br>Support<br>costs:<br>staff<br>£<br>£<br>Education and training<br>19,517<br>10,164<br>Development and volunteering<br>39,485<br>11,746<br>Sport and leisure<br>21,214<br>3,028<br>Day opportunities<br>356,511<br>72,115<br>General<br>238,498<br>9,362<br>Total expenditure 2020:<br>675,225<br>106,415|Support<br>costs:<br>office<br>£<br>1,634<br>1,889<br>487<br>11,596<br>1,505<br>17,111|Support<br>costs:<br>premises<br>£<br>1,173<br>1,356<br>350<br>8,325<br>1,081<br>12,285|2020<br>Total<br>£<br>32,488<br>54,476<br>25,079<br>448,547<br>250,446|
||||811,036|



## **9. Analysis of support and governance costs allocations** 

|Raising<br>funds<br>£<br>Direct costs<br>34,749<br>Reallocation of support costs<br>4,093<br>Reallocation of governance costs<br>-<br>**Total expenditure 2021:**<br>**38,842**<br>Raising<br>funds<br>£<br>Direct costs<br>17,379<br>Reallocation of support costs<br>3,580<br>Reallocation of governance costs<br>-<br>Total expenditure 2020:<br>20,959<br>**Prior period comparative:**|Charitable<br>activities<br>£<br>596,841<br>139,564<br>11,780<br>**748,185**<br>Charitable<br>activities<br>£<br>645,285<br>132,231<br>12,561<br>790,077|Support<br>costs<br>£<br>£<br>143,657<br>11,780<br>(143,657)<br>-<br>-<br>(11,780)<br>**-**<br>**-**<br>Support<br>costs<br>£<br>£<br>135,811<br>12,561<br>(135,811)<br>-<br>-<br>(12,561)<br>-<br>-<br>Governance<br>costs<br>Governance<br>costs|**2021**<br>**Total**<br>**£**<br>**787,027**<br>**-**<br>**-**|
|---|---|---|---|
||||**787,027**|
||||2020<br>Total<br>£<br>811,036<br>-<br>-|
||||811,036|



19 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **10. Net movement in funds** 

This is stated after charging: 

|Depreciation<br>Trustees' remuneration<br>Trustees' reimbursed expenses<br>Independent examiners' remuneration:<br>Independent examination (including VAT)|**2021**<br>**£**<br>**1,800**<br>**Nil**<br>**386**<br>**1,920**|2020<br>£<br>600<br>Nil<br>771<br>1,800|
|---|---|---|



During the year, one trustee had expenses reimbursed relating to postage and stationary and finance training (2020: three, travel). 

## **11. Staff costs and numbers** 

Staff costs were as follows: 

|Salaries and wages<br>Social security costs<br>Pension costs<br>Subtotal: staff costs before relief staff<br>_Add: relief staff_<br>Total staff costs:|**2021**<br>**£**<br>**535,452**<br>**32,248**<br>**16,890**<br>**584,590**<br>**35,828**<br>**620,418**|2020<br>£<br>517,968<br>32,343<br>16,657|
|---|---|---|
|||566,968<br>30,164|
|||597,132|



Relief staff costs are charged to the activity to which they relate. 

No employee earned more than £60,000 during the year. The key management personnel of the charitable company comprise the Trustees and Chief Executive Officer. The total employee benefits of the key management personnel were £43,629 (2020: £42,462). 

|Average head count<br>Full time equivalent|**2021**<br>**No.**<br>**47**<br>**24**|2020<br>No.<br>46|
|---|---|---|
|||24|



## **12. Taxation** 

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. 

20 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

|**For**|**the year ended 31 March 2021**||
|---|---|---|
|**13. **|**Tangible fixed assets**|**Fixtures and**|
|||**fittings**|
|||**£**|
||**Cost**||
||At 1 April 2020|**5,399**|
||Additions in year|**-**|
||At 31 March 2021|**5,399**|
||**Depreciation**||
||At 1 April 2020|**600**|
||Charge for the year|**1,800**|
||At 31 March 2021|**2,400**|
||**Net book value**||
||**At 31 March 2021**|**2,999**|
||At 31 March 2020|4,799|



|**14. Debtors**<br>Trade debtors<br>Prepayments and accrued income<br>Other debtors<br>**15. Creditors : amounts due within 1 year**<br>Trade creditors<br>Accruals<br>Deferred income (see note 16)<br>Other creditors<br>Other taxation and social security|**2021**<br>**£**<br>**31,683**<br>**16,458**<br>**-**<br>**48,141**<br>**2021**<br>**£**<br>**18,843**<br>**7,741**<br>**3,575**<br>**2,424**<br>**-**<br>**32,583**|2020<br>£<br>28,008<br>9,238<br>556|
|---|---|---|
|||37,802|
|||2020<br>£<br>10,331<br>5,187<br>3,475<br>2,891<br>8,202|
|||30,086|



21 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **16. Deferred income** 

|**Deferred income**|||
|---|---|---|
|At 1 April 2020<br>Deferred during the year<br>Released during the year<br>At 31 March 2021|**2021**<br>**£**<br>**3,475**<br>**100**<br>**-**<br>**3,575**|2020<br>£<br>-<br>3,475<br>-|
|||3,475|



Deferred income relates to income for events invoiced in advance of the event date. 

## **17. Analysis of net assets between funds** 

|**Analysis of net assets between funds**|||||
|---|---|---|---|---|
|Tangible fixed assets<br>Current assets<br>Current liabilities<br>**Net assets at 31 March 2021**<br>**Prior period comparative**<br>Tangible fixed assets<br>Current assets<br>Current liabilities<br>Net assets at 31 March 2020|£<br>2,999<br>57,885<br>-<br>**60,884**<br>£<br>4,799<br>24,896<br>-<br>29,695<br>Restricted<br>funds<br>Restricted<br>funds|£<br>-<br>6,514<br>-<br>**6,514**<br>£<br>-<br>19,223<br>-<br>19,223<br>Designated<br>funds<br>Designated<br>funds|£<br>-<br>388,340<br>(32,583)<br>**355,757**<br>£<br>-<br>270,406<br>(30,086)<br>240,320<br>General<br>funds<br>General<br>funds|**Total**<br>**funds**<br>**£**<br>**2,999**<br>**452,739**<br>**(32,583)**|
|||||**423,155**|
|||||Total<br>funds<br>£<br>4,799<br>314,525<br>(30,086)|
|||||289,238|



22 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **18. Movements in funds** 

|**Movements in funds**|||||
|---|---|---|---|---|
|**Restricted funds**<br>E F Bulmer Benevolent Fund<br>Edward Gosling Foundation<br>Arts Council<br>Eveson Charitable Trust<br>Acheeva Bed<br>About Face<br>Big Lottery (COVID)<br>Screwfix<br>HSBC<br>Friday lifelinks<br>Priory<br>Eaton Barn<br>Saxon Hall café<br>**Total restricted funds**<br>_Designated funds:_<br>About Face Theatre Company<br>Wednesday lifelinks<br>Friday lifelinks<br>Smart Arts storytelling project<br>Clever Betsy crafts and retail<br>Saxon Hall café<br>Craft projects and activities<br>Sport and leisure<br>_Total designated funds_<br>General funds<br>**Total unrestricted funds**<br>**Total funds**<br>Big Lottery Fund (Inclusive<br>Volunteering)<br>**Unrestricted funds**|At 1 April<br>2020<br>£<br>5,497<br>1,883<br>11,219<br>-<br>4,505<br>5,591<br>1,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>29,695<br>7,668<br>1,206<br>2,000<br>2,000<br>2,000<br>3,600<br>(1,966)<br>2,715<br>19,223<br>240,320<br>259,543<br>289,238|Income<br>£<br>£<br>69,366<br>(69,383)<br>-<br>(1,883)<br>-<br>(100)<br>21,027<br>(21,027)<br>15,000<br>(12,005)<br>-<br>(1,800)<br>1,750<br>-<br>83,722<br>(80,795)<br>5,000<br>-<br>15,000<br>-<br>450<br>-<br>2,500<br>(1,116)<br>1,359<br>-<br>2,124<br>-<br>217,298<br>(188,109)<br>66,255<br>(73,923)<br>17,417<br>(16,542)<br>22,679<br>(22,679)<br>10,894<br>(11,133)<br>48,505<br>(50,405)<br>7,104<br>(10,801)<br>52,600<br>(50,178)<br>5,890<br>(8,392)<br>231,344<br>(244,053)<br>472,302<br>(354,865)<br>703,646<br>(598,918)<br>920,944<br>(787,027)<br>Expenditure|£<br>**£**<br>-<br>**5,480**<br>-<br>**-**<br>-<br>**11,119**<br>-<br>**-**<br>-<br>**7,500**<br>-<br>**3,791**<br>-<br>**2,750**<br>-<br>**2,927**<br>-<br>**5,000**<br>-<br>**15,000**<br>-<br>**450**<br>-<br>**1,384**<br>2,000<br>**3,359**<br>-<br>**2,124**<br>2,000<br>**60,884**<br>-<br>**-**<br>-<br>**2,081**<br>-<br>**2,000**<br>-<br>**1,761**<br>-<br>**100**<br>-<br>**(97)**<br>-<br>**456**<br>-<br>**213**<br>-<br>**6,514**<br>(2,000)<br>**355,757**<br>(2,000)<br>**362,271**<br>-<br>**423,155**<br>Transfers<br>between<br>funds<br>**At 31**<br>**March 2021**||
|||||**60,884**|
|||||**-**<br>**2,081**<br>**2,000**<br>**1,761**<br>**100**<br>**(97)**<br>**456**<br>**213**|
|||||**6,514**|
|||||**355,757**|
|||||**362,271**|
|||||**423,155**|



Transfers between funds represent a match funding contribution by Echo from free reserves to restricted funds as part of a fundraiser for a new heating system for Eaton Barn. 

23 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **18. Movements in funds (continued) Purposes of restricted funds** 

## **Big Lottery Fund (Inclusive Volunteering)** 

Year 3 of a 5-year "Inclusive Volunteering" grant for hard to reach groups. A grant to enable people with learning disabilities to contribute as active citizens; and be recognised for the skills, talents, and value they bring to society. This is achieved through a supported volunteering programme and a buddying scheme. 

## **E F Bulmer Benevolent Fund (volunteer support)** 

To contribute towards the salary and other costs of our participant involvement work. This work enables people with learning disabilities to take a full and meaningful role I the running of our organisation. 

## **Edward Gosling Foundation** 

To develop sports opportunities for disabled people in Herefordshire. Working alongside Special Olympics GB, becoming the lead body for sports in the county. This fund was carried over due to lack of ability to undertake sports activities during 2020-2021. 

## **Arts Council** 

Support for About Face, our theatre company, to help it through the COVID pandemic and ensure its ongoing sustainability. 

## **Eveson Charitable Trust** 

To part fund the salary and other costs of our Deputy Chief officer, Life Skills and Leisure. Her work enables people with learning disabilities to lead full, inclusive and purposeful lives and to develop community networks and relationships. 

## **Acheeva Bed** 

To raise and spend money on a HI/LOW bed to enable relaxation; and additional sensory items for the room. 

## **About Face** 

Funds raised for the About Face Theatre Company. 

## **Big Lottery (COVID)** 

This was funding to help support ECHO through the COVID pandemic. Funding was used to secure the long-term sustainability of ECHO by supporting key roles and costs of ECHO and to prepare the organisation for re-opening and the additional costs to being COVID compliant. There was also funding (including capital items) to help participants access online services. 

24 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **Screwfix** 

Funding to improve our furniture upcycling project Studio Mirai including the provision of external storage to better manage donations and development of our outdoor space to enable outdoor working. 

## **HSBC** 

Funding to improve facilities at our Clever Betsy project and refurbishment of the ECHO shop space. 

## **Friday lifelinks** 

Funds to support activities of Friday lifelinks, a voluntary community support group, doing shopping for older or housebound people. 

## **Priory** 

Funds raised to support specific activities within the Priory Project. 

## **Eaton Barn** 

Funds to provide Eaton Barn Community Garden, ECHO's horticultural project, with a new heating system. 

## **Saxon Hall café** 

Funding to support the Saxon Hall community café, run by ECHO in partnership with Saxon Hall. 

## **Purposes of designated funds** 

## **About Face Theatre Company** 

The theatre company works with actors with learning disabilities delivering high quality theatre to festivals, community halls and other venues. 

## **Wednesday lifelinks and Friday lifelinks** 

Providing voluntary community support, doing shopping for older or housebound people, arts and craft activities, and cooking and eating together. They are active fundraisers, hosting coffee mornings and market stalls to raise money for their project and ECHO. 

## **Smart Arts storytelling project** 

A storytelling group helping to develop imagination and memory. Discovering hidden talent through song, signing, music and art. 

## **Clever Betsy crafts and retail** 

Making and selling a range of crafts from cards to rugs. The group learn a variety of skills in craft making and sort donated goods to sell in the retail shop. Learning to serve customers and maintaining 

## **Saxon Hall café** 

In partnership with Saxon Hall, the group prepare and offer a small range of cakes, lunches, teas and coffees in their café two days a week. 

## **Craft projects and activities** 

Offering various craft opportunities to adults with learning disabilities based across Hereford and Leominster, including weaving, and developing craft skills with materials. 

25 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **18. Movements in funds (continued)** 

## **Sport and leisure** 

Supporting a range of sport and leisure activities for adults with learning disabilities, football, tennis, yoga, and club nights. 

|**Prior period comparative**<br>At 1 April<br>2019<br>£<br>**Restricted funds**<br>Big Lottery Fund<br>13,101<br>The Croft Trust<br>79<br>E F Bulmer Benevolent Fund<br>1,955<br>Edward Gosling Foundation<br>-<br>Arts Council<br>9,306<br>Elmley Foundation<br>5,000<br>Eveson<br>9,685<br>Marshfields Welfare Fund<br>3,240<br>Bailey Thomas<br>(48)<br>Big Lottery Fund (Building Capabilities)<br>4,373<br>Acheeva Bed<br>-<br>About Face<br>-<br>Royal Horticultural Society<br>2,677<br>**Total restricted funds**<br>49,368<br>_Designated funds:_<br>About Face Theatre Company<br>34,116<br>Wednesday lifelinks<br>2,125<br>Friday lifelinks<br>13,871<br>Smart Arts storytelling project<br>19,338<br>Clever Betsy crafts and retail<br>5,439<br>Saxon Hall café<br>3,552<br>Craft projects and activities<br>(5,220)<br>Sport and leisure<br>5,061<br>Development fund<br>25,000<br>_Total designated funds_<br>103,282<br>General funds<br>189,021<br>**Total unrestricted funds**<br>292,303<br>**Total funds**<br>341,671<br>**Unrestricted funds**|Income<br>£<br>£<br>65,423<br>(73,027)<br>-<br>(79)<br>7,500<br>(7,572)<br>11,219<br>-<br>5,304<br>(14,610)<br>-<br>(5,000)<br>15,000<br>(20,180)<br>-<br>(3,240)<br>-<br>-<br>(4,373)<br>6,191<br>(600)<br>1,000<br>-<br>-<br>(2,677)<br>111,637<br>(131,358)<br>81,970<br>(108,418)<br>15,576<br>(16,495)<br>23,104<br>(34,975)<br>11,193<br>(28,531)<br>65,402<br>(68,841)<br>12,126<br>(12,078)<br>68,424<br>(65,170)<br>18,079<br>(20,425)<br>-<br>(25,000)<br>295,874<br>(379,933)<br>351,092<br>(299,745)<br>646,966<br>(679,678)<br>758,603<br>(811,036)<br>Expenditure|£<br>**£**<br>-<br>**5,497**<br>-<br>**-**<br>-<br>**1,883**<br>-<br>**11,219**<br>-<br>**-**<br>-<br>**-**<br>-<br>**4,505**<br>-<br>**-**<br>48<br>**-**<br>-<br>**-**<br>-<br>**5,591**<br>-<br>**1,000**<br>-<br>**-**<br>48<br>**29,695**<br>-<br>**7,668**<br>-<br>**1,206**<br>-<br>**2,000**<br>-<br>**2,000**<br>-<br>**2,000**<br>-<br>**3,600**<br>-<br>**(1,966)**<br>-<br>**2,715**<br>-<br>**-**<br>-<br>**19,223**<br>(48)<br>**240,320**<br>(48)<br>**259,543**<br>-<br>**289,238**<br>Transfers<br>between<br>**At 31**<br>**March 2020**|£<br>**£**<br>-<br>**5,497**<br>-<br>**-**<br>-<br>**1,883**<br>-<br>**11,219**<br>-<br>**-**<br>-<br>**-**<br>-<br>**4,505**<br>-<br>**-**<br>48<br>**-**<br>-<br>**-**<br>-<br>**5,591**<br>-<br>**1,000**<br>-<br>**-**<br>48<br>**29,695**<br>-<br>**7,668**<br>-<br>**1,206**<br>-<br>**2,000**<br>-<br>**2,000**<br>-<br>**2,000**<br>-<br>**3,600**<br>-<br>**(1,966)**<br>-<br>**2,715**<br>-<br>**-**<br>-<br>**19,223**<br>(48)<br>**240,320**<br>(48)<br>**259,543**<br>-<br>**289,238**<br>Transfers<br>between<br>**At 31**<br>**March 2020**|
|---|---|---|---|
||||**29,695**|
||||**7,668**<br>**1,206**<br>**2,000**<br>**2,000**<br>**2,000**<br>**3,600**<br>**(1,966)**<br>**2,715**<br>**-**|
||||**19,223**|
||||**240,320**|
||||**259,543**|
||||**289,238**|



26 



## **ECHO for Extra Choices in Herefordshire Limited** 

## **Notes to the financial statements** 

## **For the year ended 31 March 2021** 

## **19. Operating lease commitments** 

The charity had operating leases at the year end with total future minimum lease payments as follows: 

|Amount falling due:<br>Within 1 year<br>Within 1 - 5 years|**2021**<br>**£**<br>**38,228**<br>**18,300**<br>**56,528**|2020<br>£<br>23,762<br>36,600|
|---|---|---|
|||60,362|



## **20. Related party transactions** 

There were no related party transactions during the current or prior year. 

## **21. Prior period restatement** 

The prior period has been restated to reclassify £150,000 held in cash at bank and in hand to current asset investments. 

27 



40 West Street Leominster Herefordshire HR6 8ES 01568 620307 

Alison Godfrey Godfrey Wilson Limited Chartered Accountants & Statutory Auditors 5[th] Floor Mariner House 62 Prince Street Bristol BS1 4QD 

2 September 2021 

Dear Alison 

## **Letter of Representations on the Financial Statements for the Year Ended 31 March 2021** 

We confirm that the following representations are made on the basis of enquiries of the trustees, management and staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the following representations to you: 

1. We have fulfilled our responsibilities as trustees, as set out in the terms of your engagement letter dated 16 April 2020, under the Companies Act 2006 for preparing financial statements, in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

We confirm that in our opinion the financial statements give a true and fair view and in particular that where any additional information must be disclosed in order to give a true and fair view that information has in fact been disclosed. We confirm that the selection and application of the accounting policies used in the preparation of the financial statements are appropriate, and we approve these accounts for the year ended 31 March 2021. 

2. We confirm that all accounting records have been made available to you for the purpose of your examination, in accordance with your terms of engagement, and that all the transactions undertaken by the charity have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management, trustees’ and members’ meetings, have been made available to you.  We have given you unrestricted access to persons within the charity in order to obtain evidence and have provided any additional information that you have requested for the purposes of your examination. 

3. We confirm the charity has satisfactory title to all assets and there are no liens or encumbrances on the assets, except for those disclosed in the financial statements. 

4. We confirm that significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. We confirm that we have no plans or intentions that may materially alter the carrying value and where relevant the fair value measurements or classification of assets and liabilities reflected in the financial statements. 

**01568 620307 / email: echo.info@echoherefordshire.co.uk / www.echoherefordshire.org.uk ECHO, 40 West Street, Leominster, Herefordshire HR6 8ES ECHO (for extra choices in Herefordshire) is a registered charity 1096449** 



5. We confirm that the charity has no liabilities or contingent liabilities other than those disclosed in the financial statements. 

6. We confirm that all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to you and accounted for and disclosed in accordance with the applicable financial reporting framework. 

7. We confirm that there have been no events since the balance sheet date which require disclosing or which would materially affect the amounts in the financial statements, other than those already disclosed or included in the financial statements. 

8. We confirm that we are aware that a related party of the charity is a person or organisation which either (directly or indirectly) controls, has joint control of, or significantly influences the charity or vice versa and as a result will include: trustees/directors, other key management, close family and other business interests of the previous. We confirm that all related party relationships and transactions have been accounted for and disclosed in accordance with the applicable financial reporting framework. 

9. We confirm that the charity neither had, at any time during the year, any arrangement, transaction or agreement to provide credit facilities (including advances and credits granted by the charity) for trustees, nor provided guarantees of any kind on behalf of the trustees except as disclosed in the financial statements. 

10. We confirm that the charity has not contracted for any capital expenditure other than as disclosed in the financial statements. 

11. We confirm that the charity has complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance. 

12. We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the charity conducts its activities and which are central to the charity’s ability to conduct its activities, except as explained to you and as disclosed in the financial statements. 

13. We acknowledge our responsibility for the design, implementation and maintenance of internal controls to prevent and detect fraud. We confirm that we have disclosed to you the results of our risk assessment of the risk of fraud in the organisation. There have been no deficiencies in internal control of which we are aware. 

14. We confirm that there have been no actual or suspected instances of fraud involving trustees, management or employees who have a significant role in internal control or that could have a material effect on the financial statements. We also confirm that we are not aware of any allegations of fraud by trustees, former trustees, employees, former employees, regulators or others. 

15. We confirm that, in our opinion, the charity’s financial statements should be prepared on the going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charity’s needs. In reaching this conclusion, we have taken into account all relevant matters of which we are aware, and have considered a period of at least one year from the date on which the financial statements will be approved. 

16. We confirm that in our opinion the effects of uncorrected misstatements are immaterial, both individually and in aggregate, to the financial statements as a whole. 

17. We confirm that we are not aware of any matters of material significance that should be reported to regulators. We confirm that all correspondence with the Charity Commission has been made available to you. 



18. We confirm that all grants, donations and other income, including those subject to special terms or conditions or received for restricted purposes, have been notified to you. There have been no breaches of terms or conditions during the period regarding the application of such income. 

Yours sincerely 

## Blaise White 

Blaise White – Treasurer 

For and on behalf of the trustees of ECHO for Extra Choices in Herefordshire Limited